Global Reporting Initiative (GRI)

Corporate Citizenship / Corporate Sustainability Report / GRI - The Global Reporting Initiative

Leadership, Management & Strategy
Environmental Performance
Work Force Issues
Public Policy Strategy
Climate Change
Energy Security, Reliability & Growth
Stakeholder Engagement
GRI - The Global Reporting Initiative

This report was developed according to the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines Version 3.0 (G3) and meets the content requirements of Application Level B. Our GRI elements were reviewed by and our Application Level B was affirmed by GRI.

The GRI guidelines provide a voluntary reporting framework used by organizations around the world as the basis for sustainability reporting. We are using the new G3 standards, as well as some indicators being developed for the new Electric Utility Sector Supplement, which is still in draft form. We have marked these indicators with a [U] in the listing below. We have also listed page numbers for indicators discussed in our printed 2007 Corporate Responsibility Report.

		Report Page #
1	Strategy & Profile
1.1	Statement by the CEO 2007 Annual Report	2-3
	Statement by Executive Vice President, Environmental Safety & Health and Facilities	4-5
1.2	Description of key impacts, risks, and opportunities 2007 10K (see page 23)	7

		Report Page #
2	Organizational Profile
2.1	Name of the organization	cover/ TOC
2.2	Primary brands, products, and/or services	inside back cover
2.3	Operational structure of the organization, including main divisions, operating companies, subsidiaries and joint ventures.
2.4	Location of organization’s headquarters About AEP Facts at a Glance	inside back cover
2.5	Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report. - United States	inside back cover
2.6	Nature of ownership and legal form
2.7	Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). - [U]	inside back cover
2.8	Scale of the reporting organization - [U]
2.9	Significant changes during the reporting period regarding size, structure, or ownership including: The location of, or changes in operations, including facility openings, closings, and expansions. Pages 11-12 of Appendix A to the 2007 Annual Report
2.10	Awards received in the reporting period
EU1	Installed capacity (MW), broken down by energy source and by country or regulatory regime	inside back cover
EU2	Number of residential, industrial and commercial customer accounts
EU3	Length of transmission and distribution lines by voltage

		Report Page #
3	Report Parameters
3.1	Reporting Period	7
3.2	Date of most recent previous report
3.3	Reporting cycle	7
3.4	Contact point for questions regarding the report or its contents	8
3.5	Process for defining report content, including: Determining materiality; Prioritizing topics within the report; and Identifying stakeholders the organization expects to use the report.	6-9
3.6	Boundary of the report (e.g., countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance	6-9
3.7	State any specific limitations on the scope or boundary of the report
3.8	Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations. - See 3.6
3.9	Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report	6-9
3.10	Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, measurement methods).	7
3.11	Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.	7
	GRI Content Index
3.12	Table identifying the location of the Standard Disclosures in the report.	63-64
3.13	Policy and current practice with regard to seeking external assurance for the report.	7-8

		Report Page #
4	Governance
4.1	Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.
4.2	Indicate whether the Chair of the highest governance body is also an executive officer (and, if so, their function within the organization’s management and the reasons for this arrangement).
4.3	For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.
4.4	Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.
4.5	Linkage between compensation for members of the highest governance body, senior managers, and executives (including departure arrangements), and the organization’s performance (including social and environmental performance).
4.6	Processes in place for the highest governance body to ensure conflicts of interest are avoided.
4.7	Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organization’s strategy on economic, environmental, and social topics. Principles of Corporate Governance Corporate Governance Charter
4.8	Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.
4.9	Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance, including relevant risks and opportunities, and adherence or compliance with internationally agreed standards, codes of conduct, and principles.	6-9
4.10	Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.
4.11	Explanation of whether and how the precautionary approach or principle is addressed by the organization.	2-3
4.12	Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses .
4.13	Memberships in associations Has positions in governance bodies; Participates in projects or committees; Provides substantive funding beyond routine membership dues; or Views membership as strategic. Also See:Partnerships	16-17/43
4.14	List of stakeholder groups engaged by the organization.	57-61
4.15	Basis for identification and selection of stakeholders with whom to engage.	57
4.16	Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.	57-61
4.17	Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.	57-61

Management Approach and Performance Indicators

		Report Page #
	Economic Performance Indicators (EC)
	Disclosure on Management Approach 2007 Annual Report	2-5 29-35
EU5	Planning to ensure short and long-term electricity availability and reliability
EU6	Demand-side management programs including residential, commercial and industrial programs	31-32 42-43
EU7	Research and development activity aimed at providing reliable and affordable electricity and promoting sustainable development	31-32 47-55
EU8	Provisions for decommissioning of nuclear power sites See pages A-105 - A106 of AEP's 2007 10K.pdf	16
EC1	Economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings, and payments to capital providers and governments. (Core)
EC2	Financial implications and other risks and opportunities for the organization's activities due to climate change. (Core) AEP and Climate Change Presentation	37-45
EC3	Coverage of the organization's defined benefit plan obligations. (Core)
EC4	Significant financial assistance received from government. (Core) See the Income Taxes section of AEP's 2007 10-K, pages A-113 through A-117
	Aspect: Market Presence
EC5	Range of ratios of standard entry-level wage compared to local minimum wage at significant locations of operation 168% - 266% response is based on a range of lowest AEP rate vs. highest mandated minimum wage AND highest AEP rate vs. lowest mandated minimum wage.
EC6	Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. (Core)
	Aspect: Indirect Economic Impacts
EC8	Development and impact of infrastructure investments and services provided primarily of public benefit through commercial, in-kind, or pro bono engagement (Core)
	Aspect: Availability and Reliablity
EU9	Planned capacity (MW) against projected electricity demand over the long term, broken down by energy source and country or regulatory regime	51-52
	Aspect: Demand-Side Management
EU10	Estimated capacity (MW) saved through demand-side management programs	35
EU11	Estimated energy (MWh) saved through demand-side management programs, broken down by residential, commercial and industrial customers	35
EU12	Average generation efficiency by energy source and by country or regulatory regime	52
EU13	Transmission and distribution efficiency Additionally, AEP and EPRI are beginning an initiative to study line loss. The project is titled "Green Circuits".	47-51

		Report Page #
	Environmental
	Disclosure on Management Approach	11-19
EN1	Materials used by weight or volume. (Core) –AEP consumes approximately 76 million tons of coal annually
EU	Commentary on EN1 – Report in-use inventory of solid and liquid high and low level PCBs	15
EN3	Direct energy consumption by primary energy source. (Core)	38
EN5	Energy saved due to conservation and efficiency improvements	18-19
EN6	Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.	31-32 42-43
EN8	Total water withdrawal by source.(Core) - [U]	13
EN9	Water sources significantly affected by withdrawal of water.	11
EN10	Percentage and total volume of water recycled and reused. AEP does not measure total recycling and use of water. See EN8 for additional information regarding the recycling of water for cooling purposes
EN11	Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. (Core)	16
EU14	Biodiversity of replacement habitats compared to the biodiversity of the areas that are being replaced (Core)
EN12	Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas. (Core)	16
EN13	Habitats protected or restored. - [U]	16
EN14	Strategies, current actions, and future plans for managing impacts on biodiversity. - [U]	16-17
EN15	Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
EN16	Total direct and indirect greenhouse gas emissions by weight. (Core)	12
EN17	Other relevant indirect greenhouse gas emissions by weight. (Core)	12
EN18	Initiatives to reduce greenhouse gas emissions and reductions achieved.	37-45
EN19	Emissions of ozone-depleting substances by weight. (Core)
EN20	NOx, SOx, and other significant air emissions by type and weight. (Core)	12
EN21	Total water discharge by quality and destination. (Core) - [U]
EN22	Total weight of waste by type and disposal method. (Core)
EU21	Long-term strategy fo PCBS - [U]
EN23	Total number and volume of significant spills. (Core)	15
EN24	Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally - - Also see: Managing waste
EN25	Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization's discharges of water and runoff.
EN26	Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. (Core)	11-19
EN27	Percentage of products sold and their packaging materials that are reclaimed by category. (Core)	14
EN28	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations. (Core)	11
EN29	Significant environmental impacts of transporting products used for organization’s operations	41
EN30	Total environmental protection expenditures and investments by type.

		Report Page #
	Product Responsibility Performance Indicators (PR)
	Disclosure on Management Approach	33-37
PR8	Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
PR9	Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. (Core)	21,44
EU3	Description of how long term reliability, as well as social, economic and environmental performance criteria are used in investment decisions - [U]	27-31
EU4	Process and methodologies used to assess existing and future demand, such as integrated resource planning - [U]	31

		Report Page #
	Labor Practices and Decent Work Performance Indicators (LA)
	Disclosure on Management Approach	21-27
EU15	Processes to ensure retention and renewal of skilled workforce	24-25
LA1	Total work force by employment type, employment contract, and region. (Core)
EU16	Total subcontracted workforce 1,248
EU17	Percentage of contractors and subcontractors that have undergone relevant health and safety training	23
LA2	Total number and rate of employee turnover by age group, gender, and region.(Core)
LA3	Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.
LA4	Percentage of employees covered by collective bargaining agreements (Core)	25
LA5	Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements. (Core)
	Aspect: Occupational Health and Safety
LA6	Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs	25-26
LA7	Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region. (Core)	21-22
LA8	Education, training, counseling, prevention, and risk-control programs in place to assist work force members, their families, or community members regarding serious diseases.	25-26
LA9	Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases	25-26
LA11	Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
LA12	Percentage of employees receiving regular performance and career development reviews.
LA13	Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity. (Core)	24-26
LA14	Ratio of basic salary of men to women by employee category. (Core)

		Report Page #
	Human Rights Performance Indicators (HR)
	Disclosure on Management Approach	21-27
HR4	Total number of incidents of discrimination and actions taken. (Core)
	Aspect: Freedom of Association and Collective Bargaining
HR5	Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights
	Aspect: Security Practices
HR8	Percentage of security personnel trained in the organization’s policies or procedures concerning the aspects of human rights that are relevant to operations
HR9	Total number of incidents of violations involving rights of indigenous people and actions taken. - None

		Report Page #
	Society Performance Indicators (SO)
	Disclosure on Management Approach	57
EU18	Participatory decision making processes with stakeholders and outcomes of engagement	57-61
EU19	Approach to managing the impacts of involuntary displacement
EU20	Contingency planning measures and disaster/emergency management plan and training programs, and recovery/restoration plans Human Resources does maintain a Business Continuity Plan and Disaster Recovery Plan (subset of AEP Plan) as well as a Pandemic plan
S01	Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating, and exiting
EU21	Number of people displaced by new or expansion projects related to generation facilities and transmission lines, broken down by physical and economic displacement
	Aspect: Corruption
S02	Percentage and total number of business units analyzed for risks related to corruption
S03	Percentage of employees trained in organizaton’s anti-corruption policies and procedures
S04	Actions taken in response to incidents of corruption
SO5	Public policy positions and participation in public policy development and lobbying. (Core)	29-35
SO6	Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.	32-33
SO7	Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes.
SO8	Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations. (Core)	21
	Disclosure on Management Approach	47
	Aspect: Access
EU22	Programs, including those in partnership with government, to improve or maintain access to electricity services
	Aspect: Provision of Information
EU23	Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity services
	Aspect: Customer Health and Safety
PR2	Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes	21
EU24	Number of injuries and fatalities to the public involving company assets, including legal judgments, and settlements and pending legal cases of diseases	23
	Aspect: Product and Service Labeling
PR3	Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements
PR4	Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes
PR5	Practices related to customer satisfaction, including results of surveys measuring customer satisfaction	52-53
	Aspect: Marketing Communications
PR6	Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship
PR7	Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes -There were no incidents of non-compliance in 2007
	Aspect: Customer Privacy
PR8	Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
	Aspect: Compliance
PR9	Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services. (Core).	21, 27
	Aspect: Access
EU25	Percentage of population unserved in licensed distribution areas, broken down by population in rural areas and urban areas -AEP is unable to respond to this question.
EU26	Number of residential disconnections for non-payment, broken by duration of disconnection
EU27	Power outage frequency	48
EU28	Average power outage duration	48