Corporate Sustainability Report
“Transparency and accountability, along with a close working relationship with our stakeholders, will grow our business, serve our shareholders’ interests and create a better world for our children and grandchildren. That’s what sustainability means to AEP.”
Michael G. Morris
Chairman, President & Chief Executive Officer
American Electric Power
This is American Electric Power’s second Corporate Responsibility Report containing information about the company’s economic, environmental and social policies and performance. It is a comprehensive report offering frank discussion about our performance and our strategies for sustainability. It is supported by substantive information that identifies our challenges, risks and opportunities. In preparing this report, we identified seven issues that we believe are most critical to our sustainability and we have structured our report to reflect them.
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. This is the second time AEP has reported on economic, environmental and social performance in one report. Previously, the company issued a 2006 Corporate Responsibility Report.
For more information about this report, including our GRI information, or the company’s sustainability initiative, please contact Sandy Nessing at smnessing@aep.com.
From our Board of Directors
The AEP Board of Directors has assigned the responsibility for monitoring and overseeing the company’s sustainability initiatives to the Board’s Committee on Directors and Corporate Governance. That Committee met twice in the past year with company management to review the company’s sustainability objectives, challenges, targets and progress. That Committee gave management input and guidance for the proposed approach to this report, and then reviewed and discussed the final text of this report before recommending its approval by the full Board of Directors.
The AEP Board of Directors has received periodic reports both from management and from the Committee on Directors and Corporate Governance about the company’s sustainability initiatives. Many of the topics in this report have been the subject of active discussion at Board and Committee meetings. Members of the Board all received copies of this report before it was published and several directors made suggestions that have been incorporated into this report. Following its review, and upon recommendation of the Committee, the Board of Directors adopted a formal resolution approving this report.
The Board believes this report is a reasonable and transparent presentation of the company’s plans and performance and their environmental, social and financial impacts. While pleased with progress to date, the Board expects and requires higher performance in the future. The Board has emphasized to management that it will be evaluated by its success in executing the company’s strategic plan to meet stakeholders’ and the Board’s expectations, including specifically the commitments in this report.
Lester A Hudson, Jr.
Presiding Director of the AEP Board of Directors
