A trade group for electric utility companies has released recommended guidance for how electricity companies should report their progress on sustainability issues.
The Edison Electric Institute (EEI) launched an ESG sustainability template for electric utility companies in a bid to make it easier for investors to scrutinise the environmental, social and governance credentials of the companies in which they invest.
In an announcement on Tuesday, the EEI – a trade group of investor-owned electric companies – claimed that the new investor-driven ESG reporting framework will be the “first and only” such template specifically designed to compare ESG metrics of electric utility companies.
Marisa Buchanan, deputy global head of Sustainable Finance for JP Morgan Chase, said the template marked an exciting development for investors in the sector.
She said: “As ESG goes mainstream, the disclosure template will help lenders, investors, and EEI member companies engage on the most important ESG and sustainability matters for the electric power industry.”
In the announcement, EEI said it compiled the template by working with stakeholder working groups over a two-year period. The result was a template that encourages closer engagement with investors and the voluntary reporting of ESG information in quantitative and qualitative formats.
The template encourages electric utility companies to report specific information on corporate portfolios, emissions, capital expenditure and resources.
Tom Kuhn, president of the EEI, said the industry has reduced carbon dioxide emissions nearly 27% below 2005 levels as of the end of 2017, according to the trade group’s calculations.
He added: “EEI’s pilot ESG/sustainability reporting template had a high level of member participation and was well-received by investors, key stakeholders, and customers.
“The updated template will allow electric companies to present their ESG and sustainability-related efforts in an accurate, timely, and concise manner that is favoured by investors.”
European members of the EEI include EDF, the National Grid, and UK Power Networks. A full list of the US and international members is available here.