American Electric Power Commits to Sustainable Growth with New Corporate Sustainability Report

Strategic Insights -

American Electric Power (AEP) has issued its 2023 Corporate Sustainability Report, marking the company's 17th year of environmental, social, and governance (ESG) disclosure. The report highlights AEP's commitment to a sustainable energy future, with a focus on clean and just transition, environmental compliance, employee well-being, social justice, and strong corporate governance. AEP aims to achieve net zero greenhouse gas emissions by 2045 through investments in renewable energy, energy storage, and grid development.

Key Takeaways:

  • AEP has adjusted its carbon dioxide emission reduction target from a 2000 baseline to a 2005 baseline and upgraded its 80% reduction by 2030 target to include full Scope 1 emissions.
  • The company plans to reach net zero emissions by investing in renewable generation, energy storage, and grid development, and reducing emissions over time.
  • AEP has achieved a 66% reduction in Scope 1 GHG emissions since 2005 and retired or sold nearly 13,500 megawatts of coal-fueled generation over the past decade.
  • The company is capitalizing on federal support for clean energy investments, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
  • AEP has helped attract 101 new customer projects and $28 billion in capital investment across its 11-state service territory in 2022.
  • Normalized industrial sales were up 4.5% in 2022, largely due to AEP's economic development program.
  • AEP is committed to capacity building and economic diversification to create long-term sustainable growth for its customers, communities, and the company.

Statistics:

  • AEP has reduced Scope 1 GHG emissions by 66% since 2005.
  • The company has retired or sold nearly 13,500 megawatts of coal-fueled generation over the past decade.
  • AEP helped attract 101 new customer projects and $28 billion in capital investment across its 11-state service territory in 2022.
  • Normalized industrial sales were up 4.5% in 2022.
  • AEP aims to grow its renewable generation portfolio to approximately 50% of total capacity by 2032.

Sources:

  • American Electric Power. (2023). 2023 Corporate Sustainability Report.
  • American Electric Power. (2023). Press Release.
  • American Electric Power. (2023). aep.com.