The Edison Electric Institute (EEI) is launching a template for environmental, social, governance, and sustainability-related reporting. It is the first industry-focused and investor-driven ESG reporting framework of its kind. Richard McMahon, Vice President of Energy Supply and Finance at the Edison Electric Institute, answered some questions about it for CleanTechnica.
1. Why was the template created?
EEI’s environmental, social, governance, and sustainability-related (ESG/sustainability) reporting template was created to benefit electricity customers and to help EEI’s member electric companies provide the financial sector with more uniform and consistent ESG/sustainability data and information.
2. Why will it be beneficial?
In recent years, the assessment of ESG factors has grown in significance for investors and other key stakeholders. The electric power industry is leading the way to a clean energy future, having reduced carbon dioxide emissions nearly 27% below 2005 levels as of the end of 2017. EEI’s ESG Template was developed with the goal of providing investors with information that is consistent across the electric power industry in terms of accessibility, content, timing, and presentation.
3. Why do investors want to see the ESG information?
The electric power industry is the most capital-intensive industry, with $113.6 billion of capital expenditures invested by EEI members in 2017. Investors and stakeholders require ESG data that is accurate, specific, and timely. The EEI ESG Template is a tool that allows EEI members to present their ESG and sustainability-related efforts comprehensively, in the concise manner favored by investors.
4. How often is ESG info reported and to whom?
EEI member companies choose if and how they want to incorporate the voluntary template into their current reporting. Companies typically will post the information on the investor relations or sustainability sections of their websites.
5. How much weight does it carry for investors?
The EEI ESG Template has enabled EEI members to better tell their forward strategy for ESG in a more focused manner.
6. Does reporting this information help anyone other than investors?
The reporting template is a benefit to electricity customers, EEI member companies, and analysts in the financial sector.
7. Who is using the template if it is in use, or who will use it immediately?
The EEI ESG Template is the first and only industry-focused and investor-driven ESG reporting framework. Electric companies participating in Version 1 of the EEI ESG template will publish their 2017 data in the coming weeks. EEI launched a pilot ESG/sustainability reporting template in December 2017.
8. Do you have other versions planned or is there a plan for the template over the next several years?
Yes, it will continuously be updated.
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