Statement of AEP’s Board of Directors
The AEP Board of Directors receives frequent reports from management about the company’s sustainability initiatives and financial reporting, policy matters, and environment, social and governance (ESG) performance. These issues are the subject of active discussion at Board meetings and Board committee meetings.
The AEP Board of Directors has assigned responsibility for overseeing the company’s ESG/sustainability initiatives to the Board’s Committee on Directors and Corporate Governance (the Committee). This report provides a comprehensive account of AEP’s performance, integrating financial with ESG/sustainability reporting. Stakeholders have expressed approval and appreciation for AEP’s leadership with this integrated approach to corporate reporting, as well as the company’s commitment to transparency and engagement. The Committee fully supports this approach.
The Committee and company management regularly review and discuss AEP’s ESG/sustainability initiatives and performance. Management and the Board recognize the role of ESG performance in creating long-term value for our shareholders and our disclosure reflects our commitment to transparency of these issues. With this year’s report, the company is launching a new ESG Data Center to facilitate easier access to this information for investors and other stakeholders.
The 2020 Corporate Accountability Report provides robust disclosure about AEP’s 2019 performance, as well as a forward look of the company’s strategy. The report describes AEP’s ongoing transition to a clean energy future, including progress toward achieving carbon dioxide emissions reduction goals. The report also expresses the company’s intent to update its clean energy report later this year. In addition, the report provides information about the company’s efforts to support its employees, customers and communities as the COVID-19 pandemic continues to unfold.
The Committee believes this document provides a clear presentation of AEP’s strategy and its ESG performance. The Board has emphasized that management will continue to be evaluated by its success in executing the company’s strategic plan, including its ability to respond to changing circumstances like the one we are seeing with the current public health crisis.
Thomas E. Hoaglin
Lead Director of the AEP Board of Directors and Chairman of the Committee on Directors and Corporate Governance