Clean Energy
Tracked: The U.S. Utilities ESG Report Card
The following content is sponsored by the National Public Utilities Council
Tracked: The U.S. Utilities ESG Report Card
This was originally posted on July 15, 2021, on Visual Capitalist.
As emissions reductions and sustainable practices become more important for electrical utilities, environmental, social, and governance (ESG) reporting is coming under increased scrutiny.
Once seen as optional by most companies, ESG reports and sustainability plans have become commonplace in the power industry. In addition to reporting what’s needed by regulatory state laws, many utilities utilize reporting frameworks like the Edison Electric Institute’s (EEI) ESG Initiative or the Global Reporting Initiative (GRI) Standards.
But inconsistent regulations, mixed definitions, and perceived importance levels have led some utilities to report significantly more environmental metrics than others.
How do U.S. utilities’ ESG reports stack up? This infographic from the National Public Utilities Council tracks the ESG metrics reported by 50 different U.S. based investor-owned utilities (IOUs).
What’s Consistent Across ESG Reports
To complete the assessment of U.S. utilities, ESG reports, sustainability plans, and company websites were examined. A metric was considered tracked if it had concrete numbers provided, so vague wording or non-detailed projections weren’t included.
Of the 50 IOU parent companies analyzed, 46 have headquarters in the U.S. while four are foreign-owned, but all are regulated by the states in which they operate.
For a few of the most agreed-upon and regulated measures, U.S. utilities tracked them almost across the board. These included direct scope 1 emissions from generated electricity, the utility’s current fuel mix, and water and waste treatment.
Another commonly reported metric was scope 2 emissions, which include electricity emissions purchased by the utility companies for company consumption. However, a majority of the reporting utilities labeled all purchased electricity emissions as scope 2, even though purchased electricity for downstream consumers are traditionally considered scope 3 or value-chain emissions:
- Scope 1: Direct (owned) emissions.
- Scope 2: Indirect electricity emissions from internal electricity consumption. Includes purchased power for internal company usage (heat, electrical).
- Scope 3: Indirect value-chain emissions, including purchased goods/services (including electricity for non-internal use), business travel, and waste.
ESG Inconsistencies, Confusion, and Unimportance
Even putting aside mixed definitions and labeling, there were many inconsistencies and question marks arising from utility ESG reports.
For example, some utilities reported scope 3 emissions as business travel only, without including other value chain emissions. Others included future energy mixes that weren’t separated by fuel and instead grouped into “renewable” and “non-renewable.”
The biggest discrepancies, however, were between what each utility is required to report, as well as what they choose to. That means that metrics like internal energy consumption didn’t need to be reported by the vast majority.
Likewise, some companies didn’t need to report waste generation or emissions because of “minimal hazardous waste generation” that fell under a certain threshold. Other metrics like internal vehicle electrification were only checked if the company decided to make a detailed commitment and unveil its plans.
As pressure for the electricity sector to decarbonize continues to increase at the federal level, however, many of these inconsistencies are roadblocks to clear and direct measurements and reduction strategies.
The National Public Utilities Council is a collaborative body of industry experts coming together to solve decarbonization challenges in the power sector and the proud sponsor of the Decarbonization Channel.
Clean Energy
Which U.S. Utilities Are Investing in Clean Energy the Most?
In this graphic, we show which U.S investor-owned utilities have allocated the most capital expenditure toward clean energy.
Which U.S. Utilities Are Investing in Clean Energy the Most?
Decarbonizing the power sector will require significant investments in clean energy as utilities replace existing fossil fuel infrastructure.
In this graphic, we show which U.S investor-owned utilities (IOUs) have allocated the most capital expenditure (CAPEX) toward carbon-free sources of electricity.
The data comes from the latest edition of the Annual Utility Decarbonization Index, created in partnership with the National Public Utilities Council, which quantifies and compares the status of decarbonization among the largest U.S. IOUs.
The Carbon-Free Investment Ranking
The Utility Decarbonization Index ranks companies on six metrics based on the latest available data, specifically those that pertain to their fuel mix, carbon emissions, and decarbonization goals.
The sixth and final metric measures the share of each utility’s planned CAPEX for carbon-free electricity generation, such as nuclear power and renewables.
Here are the top scorers out of the 47 IOUs included in the report.
| Rank | Company | Share of Planned Generation CAPEX Allocated To Nuclear & Renewables |
|---|---|---|
| #1 | NextEra Energy | 100% |
| #2 | Public Service Enterprise Group | 100% |
| #3 | Avangrid | 100% |
| #4 | Pacific Gas and Electric* | 96% |
| #5 | Alliant Energy | 94% |
| #6 | National Grid | 93% |
| #7 | AES Corporation | 92% |
| #8 | Constellation Energy | 90% |
| #9 | WEC Energy | 90% |
| #10 | Emera | 86% |
| #11 | Dominion Energy* | 84% |
| #12 | American Electric Power | 83% |
| #13 | TransAlta | 81% |
| #14 | MGE Energy | 78% |
| #15 | Duke Energy | 68% |
| #16 | Evergy | 68% |
| #17 | DTE Energy Company | 67% |
| #18 | Fortis Inc. | 67% |
| #19 | Consumers Energy | 66% |
| #20 | Southern Company | 63% |
*Planned CAPEX unreported, shows 2022 realized CAPEX
Avangrid climbed to first place in 2022, tying with NextEra and PSEG, who both maintained their 100% carbon-free investment plans from 2021. This marks an improvement from Avangrid’s 98% the year prior.
Meanwhile, National Grid pulled off the most significant percentage increase, from 3% to 93% from 2021 to 2022.
Overall, carbon-free investment is up 3 percentage points year-over-year from 63% to 66% for the top 47 IOUs.
Which Utilities Are Included in the Decarbonization Index?
The IOUs ranked in this year’s Utility Decarbonization Index are the 47 largest in the U.S. by their 2022 net owned and purchased electricity generations.
U.S. IOUs that had fewer than 2 million megawatt-hours (MWh) of owned generation were excluded from the report.
The 47 IOUs featured in the Index accounted for over two-thirds of the nation’s electricity generation in 2022. As a result, these utilities’ decarbonization efforts will significantly impact the 33% of U.S. emissions that come from the power sector.
Download the 2024 Annual Utility Decarbonization Report
In addition to the Decarbonization Index, there’s much more to explore in the 2024 report, including:
- Inflation Reduction Act impacts
- Market trends
- Year-to-year progressions
- Fuel mix rankings for the largest public utilities
- Gas utility emissions rankings
Are you interested in seeing the rest of the rankings? Download the 2024 NPUC Annual Utility Decarbonization Report now.
Clean Energy
Visualized: Renewable Energy Capacity Through Time (2000–2023)
This streamgraph shows the growth in renewable energy capacity by country and region since 2000.
Visualized: Renewable Energy Capacity Through Time (2000–2023)
Global renewable energy capacity has grown by 415% since 2000, or a compound annual growth rate (CAGR) of 7.4%.
However, many large and wealthy regions, including the United States and Europe, maintain a lower average annual renewable capacity growth.
This chart, created in partnership with the National Public Utilities Council, shows how each world region has contributed to the growth in renewable energy capacity since 2000, using the latest data release from the International Renewable Energy Agency (IRENA).
Renewable Energy Trends in Developed Economies
Between 2000 and 2023, global renewable capacity increased from 0.8 to 3.9 TW. This was led by China, which added 1.4 TW, more than Africa, Europe, and North America combined. Renewable energy here includes solar, wind, hydro (excluding pumped storage), bioenergy, geothermal, and marine energy.
During this period, capacity growth in the U.S. has been slightly faster than what’s been seen in Europe, but much slower than in China. However, U.S. renewable growth is expected to accelerate due to the recent implementation of the Inflation Reduction Act.
Overall, Asia has shown the greatest regional growth, with China being the standout country in the continent.
| Region | 2000–2023 Growth | 10-Year Growth (2013–2023) | 1-Year Growth (2022–2023) |
|---|---|---|---|
| Europe | 313% | 88% | 10% |
| China | 1,817% | 304% | 26% |
| United States | 322% | 126% | 9% |
| Canada | 57% | 25% | 2% |
It’s worth noting that Canada has fared significantly worse than the rest of the developed world since 2000 when it comes to renewable capacity additions. Between 2000 and 2023, the country’s renewable capacity grew only by 57%.
Trends in Developing Economies
Africa’s renewable capacity has grown by 184% since 2000 with a CAGR of 4%.
India is now the most populous country on the planet, and its renewable capacity is also rapidly growing. From 2000–2023, it grew by 604%, or a CAGR of 8%.
It is worth remembering that energy capacity is not always equivalent to power generation. This is especially the case for intermittent sources of energy, such as solar and wind, which depend on natural phenomena.
Despite the widespread growth of renewable energy worldwide, IRENA emphasizes that global renewable generation capacity must triple from its 2023 levels by 2030 to meet the ambitious targets set by the Paris Agreement.
Learn how the National Public Utilities Council is working toward the future of sustainable electricity.
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