Westar Energy powers lives with sustainable energy.

Transcription

1 2016 EEI ESG / Sustainability Report Westar Energy powers lives with sustainable energy. Westar Energy is powering lives one home, one business, one community at a time - with safe, clean, reliable electricity and the highest dedication to customer care. With that mission in mind, we re working every day to make our operations cleaner and more sustainable. In fact, by the end of 2017, we expect a nearly 39% reduction in carbon emissions from 2005 levels. To track our progress, Westar Energy is participating with other energy companies in the Edison Electric Institute (EEI) pilot program to share Environmental, Sustainability and Governance (ESG) data. This report shares our progress. Creating a lower carbon future. Reductions expected by the end of 2017 in comparison to CO2 SO2 NOX Lowering Carbon Dioxide Lowering Sulfur Dioxide Lowering Nitrogen Oxide Down by 39% Down by 98% Down by 84% p1

2 ENVIRONMENTAL SUSTAINABILITY WESTAR ENERGY 2016 EEI ESG / SUSTAINABILITY REPORT RENEWABLE ENERGY Westar has quietly become a renewable energy leader, increasing generation of renewables by more than 1,250% in the past decade and, as the top renewable energy provider in Kansas, propelling the state to third in the nation for wind generation and fifth in renewables generation.* 25 solar projects 1,750 megawatts of wind capacity, which contributes to Kansas #3 ranking nationally for wind generation as a percentage of total generation. That wind capacity represents a capital investment in clean energy of about $ 2.5 billion we own or fund, with 6.6 megawatts of total combined capacity. We launched our first utility-scale, community solar project in July 2017 in Hutchinson, Kansas. That project, at capacity, can provide 1,200 kilowatts of electricity. 4.2 billion gallons of water saved annually. Enough to supply whole state of Kansas for about two weeks. LOWER CARBON FUTURE We now produce 32 percent of our customers power annually from renewable sources. When combined with our production at our Wolf Creek nuclear facility, more than half the power to homes and businesses we serve comes from emission-free sources. Westar Energy began addressing carbon issues long before regulatory mandates. We employed a forward-thinking strategy to ensure we had no regrets as we changed our electricity sources from largely carbon-based to 50% emission-free, while balancing our customers needs for cost-effective, reliable power. During the past 10 years, we ve made major gains in renewable energy. Today, the air in Kansas is cleaner, our energy production is greener, and Westar is leading the way toward a lower carbon future for our state. By the end of 2017, we expect a 39% reduction in carbon emissions from 2005 levels and also expect sulfur dioxide emissions to be down by 98%, while nitrogen oxide emissions will be cut by 84%. Nearly $1.8 billion Invested in environmental improvements. For more info, visit CleanEnergyKansas.com *As a percentage of generation of the total electric power generated in Figure excludes hydro production. Source: U.S. Energy Information Administration, p2

3 SOCIAL SUSTAINABILITY WESTAR ENERGY 2016 EEI ESG / SUSTAINABILITY REPORT GREEN TEAM 3, volunteer hours projects major projects of more than 100 hours Westar Energy s Green Team is a group of employee and retiree volunteers who tackle environmental projects across Kansas. WESTAR FOUNDATION Since 1990, the Westar Energy Foundation has awarded more than $22 million to civic and charitable organizations. In 2016 alone, the Foundation granted $2 million to 250 non-profit organizations. $22 million to civic and charitable organizations VOLUNTEERISM 330 Employees donated more than 16,000 volunteer hours $2 million Westar provided funding to community organizations 67% of employees contributed to the company s annual giving campaign p3

4 WESTAR ENERGY 2016 EEI ESG / SUSTAINABILITY REPORT ECONOMIC SUSTAINABILITY 2016 STATEWIDE FIGURES TAXES PAID $300,000,000 PAYROLL $193,000,000 CAPITAL INVESTMENT $1 billion NUMBER OF EMPLOYEES 2200 GOVERNANCE Westar Energy has adopted a management approach to governance that engages all levels of the company from the Board of Directors to our employees. Integrity and accountability are two of our core values. We respect each other and those we serve by choosing the hard right over the easy wrong. We take responsibility for our actions, decisions and commitments. Our Integrity Hotline provides employees, vendors and others an avenue to raise concerns, report suspected dishonest or improper conduct and take initiative to maintain the ethical culture at the heart of our business. To reach the Integrity Hotline, call Westar Energy is recognized for board diversity, particularly women board members All board members except the CEO are independent CEO role and Board Chair role are separate and Chair is independent p4

5 WESTAR ENERGY 2016 EEI ESG / SUSTAINABILITY REPORT PEOPLE DIVERSITY We want to draw talent from every community we have the privilege of serving. Through proactive recruiting and outreach, we re working to fully engage a diverse workforce, where differences are welcomed, valued and appreciated for the strength they add to our organization % 25% 40% of the corporate workforce and 25% of the overall workforce are women Westar encourages minority and women-owned businesses to register as potential suppliers at WestarEnergy.com WORKFORCE DEVELOPMENT Building the workforce of the future Westar fosters an award-winning internship program, recognized nationally as a top energy internship. Hundreds of students participate in Westar s Electrify Your Future program and other STEM education programs. p5

6 ESG/Sustainability Report Quantitative Information Parent Company: Westar Energy, Inc. Operating Company(s): Westar Energy, Inc. Business Type(s): Vertically Integrated State(s) of Operation: Kansas and Oklahoma State(s) with RPS Programs: Kansas and Oklahoma Regulatory Environment: Regulated Report Date: 12/12/2017 Utility Portfolio Baseline Total Available Nameplate Generation Capacity at end of year (MW) Coal 3,564 3,365 3,366 Natural Gas 2,491 2,645 2,637 Nuclear Petroleum Total Renewable Energy Resources Biomass/Biogas 6 6 Wind 2 1,063 1,063 Net Generation for the data year (MWh) Coal 21,939, ,352, ,902,924.0 Natural Gas 1,764, ,301, ,724,231.0 Nuclear 4,145, ,056, ,875,637.0 Petroleum Total Renewable Energy Resources Biomass/Biogas 46, ,868.1 Wind ,435, ,831,183.4 Investing in the Future: Capital Expenditures, Energy Efficiency (EE), and Smart Meters Total Annual Capital Expenditures (nominal dollars) $ 212,814,000 $ 700,228,000 $ 1,086,970,000 Incremental Annual Savings from EE Measures (MWh, at end of year) 56 Cumulative Investment in EE Programs (nominal dollars, at end of year) $ 1,051,000 Percent of Total Electric Customers with Smart Meters (at end of year) 35.22% 58.28% Retail Customer Count (at end of year) Commercial 77,948 85,504 85,678 Industrial 4,665 4,717 4,671 Residential 577, , ,265 GHG : Carbon Dioxide (CO2) and Carbon Dioxide Equivalent (CO2e) Owned Generation Carbon Dioxide (CO2) Total Owned Generation CO2 (MT) 28,546,320 19,684,071 18,026,085 Total Owned Generation CO2 Intensity (MT/Net MWh) Carbon Dioxide Equivalent (CO2e) Total Owned Generation CO2e (MT) 28,664,582 19,824,513 18,117,252 Total Owned Generation CO2e Intensity (MT/Net MWh) Non-Generation CO2e Fugitive CO2e emissions of sulfur hexafluoride (MT)(6) 59, , , Nitrogen Oxide (NOx), Sulfur Dioxide (SO2), Mercury (Hg) Total Nitrogen Oxide (NOx) Total NOx (MT) 51,349 9,796 8, Total NOx Intensity (MT/Net MWh) Sulfur Dioxide (SO2) Total SO2 (MT) 88,845 5,903 2,682 Total SO2 Intensity (MT/Net MWh) Mercury (Hg) Total Hg (kg) Total Hg Intensity (kg/net MWh)

7 Resources Human Resources Total Number of Employees 2,213 2,403 2,373 Total Women in Workforce Total Women on Board of Directors/Trustees Total Minorities in Workforce Total Minorities on Board of Directors/Trustees Employee Safety Metrics Recordable Incident Rate Lost-time Case Rate Days Away, Restricted, and Transfer (DART) Rate Work-related Fatalities Fresh Water Resources Water Withdrawals - Total (millions of gallons/mwh) Water Withdrawals - Consumptive (millions of gallons/mwh) Water Withdrawals - Non-consumptive discharge (millions of gallons/mwh) Waste Products Hazardous Waste Disposal (short tons) Coal Combustion Products Beneficially Used (short tons) 329, ,900