The U.S. electric and gas utility industries released an updated version of their ESG and sustainability template to help investors track companies' environmental, social and governance initiatives just as the annual reporting season gets under way.
The Edison Electric Institute, or EEI, officially launched the template in August 2018, giving dozens of utilities' a way to report information on their ESG programs in a standardized way. The Excel-based template allows the financial sector to more easily analyze both quantitative data and qualitative information on the programs, as well as to compare progress and priorities among peer companies.
The second version of the template, released Aug. 29, integrates quantitative metrics on ESG for natural gas distribution companies from the American Gas Association, or AGA, which partnered with EEI to develop the template. The spreadsheet on qualitative information was also updated to allow utilities to report on cybersecurity governance and natural gas sustainability.
"Natural gas utilities are making incredible strides reducing emissions and enhancing sustainability, and this new version of our environmental, social, governance and sustainability reporting template is yet another way for our industry to demonstrate this progress," AGA President and CEO Karen Harbert said. "These clear, consistent metrics are tailored to utility operations and provide the information that investors want to see."
EEI, which represents U.S. investor-owned electric utilities, expects nearly all of its member companies to be using the template by the close of 2019. AGA said most of its members would utilize the tool by year end.
Investment firms also had a hand in crafting the template, which allows them to screen companies on metrics such as greenhouse gas emissions, power generation portfolio and workforce diversity.
"As ESG disclosure continues to evolve from a 'nice-to-have' to a 'must-have,' EEI's efforts to create a comprehensive reporting template and methodology that respond to the needs of both members and financial institutions are notable," said Val Smith, global head of corporate sustainability at Citigroup Inc.
ESG reports are beginning to emerge from U.S. electric and gas utilities. EEI maintains a webpage with links to the templates filled out by member companies. Currently, 35 utilities are listed on the site.
