Ameren Corporation · NYSE:AEE
Ameren — ESG Presentation (February 2021)
55 slides from Ameren's sustainability presentation, February 2021
Slide 1: Leading the Way to a Sustainable Energy Future
Leading the Way to a Sustainable Energy Future Environmental, Social & Governance (ESG) Feb. 2021
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented weather-normalized and core earnings per share, which are non-GAAP financial measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is include
Slide 3: Company Description
Company Description Fully rate-regulated electric and natural gas utility Ameren Businesses 2.4M electric Ameren Missouri customers • Electric transmission, distribution, and generation business and a natural gas distribution business in Missouri regulated by MoPSC 0.9M gas • Serves 1.2 million elec
Slide 4: How We Integrate Sustainability
How We Integrate Sustainability Leading the Way to a Sustainable Energy Future | Feb. 2021 4
Slide 5: How We Think About Sustainability
How We Think About Sustainability ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT Operating to reduce emissions and Placing people at the center of waste and preserving natural everything we do by supporting resources while providing safe, Vision: customers, empowering co- reliable, and affordable electric
Slide 6: Strong Organizational Focus on Sustainability
Strong Organizational Focus on Sustainability Gwen Mizell Ajay Arora Sharon Harvey- Chonda Nwamu VP, Sustainability & VP, Chief Renewable Davis SVP, General Counsel Electrification Development Officer VP, DE&I and Chief & Secretary Diversity Officer Leading the Way to a Sustainable Energy Future | F
Slide 7: How We View Sustainability Pillars and Risks
KEY FOCUS PILLARS AREAS OF Climate Change Environmental Justice Environmental Compliance Emissions Reductions Waste Management ENVIRONMENTAL Leading the Way to a Sustainable Energy Future | Feb. 2021 social and governance pillars Water Management Community Impact Diversity, Equity & Inclusion Health
Slide 8: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL SOCIAL GOVERNANCE • Accelerating transition to a cleaner and • Delivering value to our customers in 2020 • Diverse BOD focused on strong oversight more diverse portfolio while focused on safety-first work culture – 57% women or racially/ethnically d
Slide 9: Environmental Stewardship
Environmental Stewardship 9
Slide 10: Our Focus on Delivering a Cleaner Energy Future Responsibly
Our Focus on Delivering a Cleaner Energy Future Responsibly While providing safe, reliable and affordable energy to customers • Climate risk management and mitigation – Targeting significant reductions in greenhouse gases Targeting Net-Zero Carbon – Implementing robust customer energy efficiency pro
Slide 11: Ameren Missouri Generation Transformation
Ameren Missouri Generation Transformation Transition to a cleaner and more diverse portfolio in a responsible fashion 1 50% CARBON EMISSIONS 85% CARBON EMISSIONS NET-ZERO CARBON REDUCTION2 REDUCTION2 EMISSIONS2 • Ameren Missouri filed its preferred Integrated Resource Plan with the MoPSC in Sep. 202
Slide 12: Targeting Net-Zero Carbon Emissions by 2050
Targeting Net-Zero Carbon Emissions by 2050 Executing on transformation that will ultimately replace fossil fuels with clean sources of energy Ameren Missouri's Expected Sources of Energy based on 2020 IRP Current 2030 2040 2050 12% 3% 25% 25% 27% 17% 46% 5% 30% 58% 69% 25% 1% 53% 4% Coal Gas Renewa
Slide 13: Targeting Net-Zero Carbon Emissions by 2050, Cont'd
Targeting Net-Zero Carbon Emissions by 2050, Cont’d Executing on transformation that will ultimately replace fossil fuels with clean sources of energy Ameren Missouri's Expected Sources of Energy to Retail Customers based on 2020 IRP Current 2030 2040 2050 12% 27% 18% 31% 33% 29% 3% 61% 30% 58% 5% 7
Slide 14: Ameren Carbon Emissions Pathways vs. Global Net Carbon Pathways
Ameren Carbon Emissions Pathways vs. Global Net Carbon Pathways1 Our plan is consistent with Paris Agreement 60 Our net-zero carbon emissions goal is consistent with the objectives of Million Metric Tons CO2 50 the Paris Agreement and limiting 40 global temperature rise to 1.5ºC 30 20 10 - 2020 2030
Slide 15: Robust and Cost-Effective Energy Efficiency and Demand Response Programs
Robust and Cost-Effective Energy Efficiency and Demand Response Programs1 • Energy efficiency programs generated over $3.5 billion in net benefits for all customers from 2010 to 2019 • Robust energy efficiency programs have helped residential and business customers save more than 5,700,000 MWh from
Slide 16: Transmission Investment to Support Transition to Clean Energy
Transmission Investment to Support Transition to Clean Energy Ameren Regionally Beneficial Projects • Regionally Beneficial Projects – Illinois Rivers Project – In-service Dec. 2020 • 375 miles of new transmission lines crossing Illinois; 10 new substations • Single largest construction project sinc
Slide 17: Callaway Nuclear Operations
Callaway Nuclear Operations • Strong safety performance • Historically strong operating performance – Extended operating license through 2044 – Replaced major plant components, including steam generators and reactor vessel head – Expect to seek an extension of operating license beyond 2044 • Represe
Slide 18: Environmental Stewardship – Coal-Fired Energy Centers
Environmental Stewardship – Coal-Fired Energy Centers CO2 emissions reduction NOx emissions reduction SO2 emissions reduction Mercury emissions (generation): 28%1,2 (generation): (generation): reduction (generation): 51% below 2005 level1,2 68% below 2005 level1,2 91% below 2005 level1,2 78% below E
Slide 19: Focusing on Resource Management
Focusing on Resource Management Electrification: Methane Leak Reductions: Methane Emissions: Pledged along with four other Midwest Replaced 100% of cast and wrought <0.5% of our carbon energy companies to build a vast iron pipeline on our natural gas delivery emissions in 20191 network of Midwest EV
Slide 20: Social Impact
Social Impact 20
Slide 21: Our Focus on Social Responsibility
Our Focus on Social Responsibility • Delivering value to our customers while focused on safety-first work culture – Providing safe, reliable and affordable electric and natural gas services for customers – Offering customers innovative programs incorporating clean energy • Socially responsible and e
Slide 22: Workforce at a Glance
Workforce at a Glance Our Diversity Strengthens Us 9,200 Co-Workers Strong1 Total Workforce Senior Leadership3 48% 25% 15% 23% 21% Bargaining Race/Ethnic Race/Ethnic Female Female Unit Diversity2 Diversity2 Generations in our Workforce Workforce Tenure Gen-Z/Post Millennial Millennials Gen X Baby Bo
Slide 23: Focused on Safety of Our Co-Workers
Focused on Safety of Our Co-Workers • Safety is a core value at Ameren — one that is never compromised • Highest-scoring item on 2020 co-worker engagement survey • Lost Workday Away are down 24% from 2013 to 2020 • Co-worker to co-worker (c2c) interactions are designed to promote engagement through
Slide 24: Supporting Our Community and Workforce During COVID-19
Supporting Our Community and Workforce During COVID-19 • Delivering safe, reliable and affordable energy – Continued effective execution of work plans in Missouri and Illinois while developing and maintaining robust safety protocols – Modified work practices to keep co-workers and customers safe – T
Slide 25: Delivering Strong Value to our Customers
Delivering Strong Value to our Customers Increased Customer Outage Improved Reliability1 Affordable Rates2 Frequency Satisfaction3 JD Power (per customer per year) +13% ¢/KWh Score +22% 1.00 Better 15 Better 766 750 0.80 0.89 734 13.08 731 12.84 723 0.77 700 0.60 10 10.22 690 10.02 650 663 0.40 651
Slide 26: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation facilities for MO available to MO residential non-residential customer Neighborhood Community and small business parking lots, open lan
Slide 27: Reducing Energy Burden for Income-Eligible Customers
Reducing Energy Burden for Income-Eligible Customers • Invested over $100 million in income-eligible customer programs from 2018-2020 through energy efficiency and energy assistance • Distributed over 12,000 free smart thermostats, providing customers better control over their energy usage, in 2020
Slide 28: Supporting Our Communities through Corporate Contributions
Supporting Our Communities through Corporate Contributions • Nearly $30 million distributed in cash and in-kind donations from 2018-2020 • Over 650 community-based organizations supported in 2020 • Over 850 grants and sponsorships delivered in 2020 • Thousands of hours volunteered annually by co-wor
Slide 29: Significantly Supporting Supplier Diversity in 2020
Significantly Supporting Supplier Diversity in 2020 24% increase over 2019 diverse spend “I am most proud of our work on the Ameren IL Gas Operations building and Ameren providing GIVSCO Construction an opportunity to have a seat at the table – not behind it, not beside it, but at the table.” -Ronal
Slide 30: Supporting DE&I in Our Company, Communities and Country
Supporting DE&I in Our Company, Communities and Country • DE&I is one of our core values – Ameren Executive Leadership Team statement against racial injustice – Co-lead local Inclusion and Diversity Task Force to empower the business community towards inclusive economic growth and prosperity – Proud
Slide 31: Building Diverse Workforce Pipelines
Building Diverse Workforce Pipelines • Early-Career Pipeline Programs – Create strong, diverse pipelines in skilled craft and STEM for middle school, high school and college students – Gas Painter Program and Skilled Craft Education Program leverage high school partnerships to provide students inter
Slide 32: Our Co-Workers Support an All In Culture
Our Co-Workers Support an All In Culture Delivering on our mission through our values, our culture and our people • Our values and All In culture are foundational to how we work and make decisions every day • Annual co-worker engagement surveys for over ALL IN a decade – Understand co-worker experie
Slide 33: Recent ESG Recognitions
Recent ESG Recognitions • 2021 Best Places to Work for LGBTQ Equality by the Human Rights Campaign; 6th consecutive year achieving perfect score • 2020 DiversityInc: In Top 25 of all companies for ESG • 2020 DiversityInc: 2nd in Utilities, 9th for BOD for diversity - all industries; 12th consecutive
Slide 34: Governance
Governance 34
Slide 35: Our Focus to Maintain Strong Corporate Governance
Our Focus to Maintain Strong Corporate Governance Ameren’s 2020 Board of Directors1,2 Ameren’s Executive Leadership Team2 • Diverse, experienced and engaged Board of Directors – Focused on strong oversight, committed to maintaining a diverse set of perspectives, qualifications, qualities and skills
Slide 36: Diverse, Highly Skilled Board of Directors
Diverse, Highly Skilled Board of Directors Leo S. Warner L. Cynthia J. Catherine J. Edward Ward H. Noelle K. Ellen M. Rafael Richard J. Craig S. James C. Steven H. Mackay, Stephen R. Qualifications and Experience Baxter Brinkley S. Brune Coleman Dickson Eder Fitzsimmons Flores Harshman Ivey Johnson
Slide 37: Board of Directors Composition and Leadership Highlights
Board of Directors Composition and Leadership Highlights • 14 members; all independent except for CEO/Chair – Corporate Governance Guidelines require substantial majority of the board to be independent – Only independent directors may serve on standing board committees • BOD is focused on ensuring a
Slide 38: Board of Directors-Level Governance of Sustainability
Board of Directors-Level Governance of Sustainability Strong oversight over sustainability and ESG matters Ameren’s Board of Directors oversees all significant enterprise risks, including sustainability and ESG. It has specifically delegated oversight of certain sustainability/ESG matters to several
Slide 39: Management-Level Governance of Sustainability
Management-Level Governance of Sustainability Senior executives across all business segments that oversee risk management, strategic planning and Executive Leadership Team enterprise performance related to ESG matters. Leads the Company’s A cross-enterprise group approach to managing of leaders that
Slide 40: Executive Compensation Program – Ties to Sustainability
Executive Compensation Program – Ties to Sustainability The objective of Ameren's executive compensation program is to provide a competitive total compensation program based on the size- adjusted median compared to similar utility companies, adjusted for individual performance. Ameren’s short- and l
Slide 41: Political Contributions Accountability and Disclosure
Political Contributions Accountability and Disclosure • 1st among utilities and 2nd highest score overall (97.1%) in the 2020 CPA-Zicklin Index for Corporate Political Disclosure and Accountability • Board of Directors-approved Political Contributions Policy – Annual contribution limit established b
Slide 42: Cybersecurity Risk Management
Cybersecurity Risk Management Robust enterprise-wide security program focused on safety • Robust governance and oversight of cybersecurity matters – Dedicated Cybersecurity sessions established with a subset of Ameren's board that are conducted in addition to the regular Audit and Risk Committee mee
Slide 43: Sustainable Growth
Sustainable Growth 43
Slide 44: Our Value Proposition for Customers, Shareholders and the Environment
Our Value Proposition for Customers, Shareholders and the Environment Attractive dividend Strong long-term and strong long-term dividend Attractive total growth outlook growth outlook return potential • Expect 6% to 8% EPS CAGR 2021-20251 • Annualized equivalent dividend rate of • Track record of de
Slide 45: Strong Track Record of EPS and Dividend Growth
Strong Track Record of EPS and Dividend Growth Weather-Normalized Core Weather-Normalized Dividends Paid per Share3 Earnings per Diluted Share1 Dividend Payout Ratio $3.75 +70% or $2.20 +25% $3.75 $2.20 $3.50 ~8% CAGR 2013 to 2020 $3.54 80% $3.25 2013 to 2020 $2.00 $3.32 $2.00 75% $3.00 $1.92 $3.05
Slide 46: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it safer, more reliable, resilient and secure – Enable two-way energy flows to accommodate more renewable generation, distributed energy resources and innovative products and services 2020-2025E Regulated – Provide customers w
Slide 47: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade Modernizing the grid and investing in cleaner generation for the long-term benefit of customers, shareholders and the environment Additional Investment Investment Plan 2021-2025 Opportunities 2021-2030 $40B+ ($ billions) Strong P
Slide 48: Additional Growth Initiatives
Additional Growth Initiatives Economic Development • Ameren Missouri – In 2020, the Rider Economic Development Incentive, authorized under the Smart Energy Plan, proved an effective tool to support economic growth and customer affordability – In total, 14 new business development projects resulted i
Slide 49: Appendix
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Slide 50: Additional Sustainability Resources
Additional Sustainability Resources Available at www.amereninvestors.com (hyperlinked below) • Integrated Resource Plan 2021 COMMUNICATIONS • Sustainability Report ENHANCEMENTS • Task Force on Climate-Related Financial Disclosures (TCFD) Mapping • SASB Mapping (Q1) • EEI and AGA ESG/Sustainability T
Slide 51: Company-Wide Governance of Sustainability
Company-Wide Governance of Sustainability Current policies available at www.amereninvestors.com (hyperlinked below) Environmental Policy Environmental Justice Policy (In Progress) Integrate environmental management and Engage stakeholders and create proactive sustainability principles into our opera
Slide 52: Ameren's Estimated Coal-Related Revenues in 2020
Ameren’s Estimated Coal-Related Revenues in 2020 Return on Investment Revenues Cost Recovery3 Revenues $2.1B1 x $2.1B1 x ($103M $423M + 52% x 48% x x 25%) / $161M x $147M + 9.53%2 = 4.5% = (1 - 25%) 26%1 = $154M = $103M $45M $34M $42M $724M $5,794M 16% Return on Interest Tax Expense Property Fuel, o
Slide 53: GAAP to Core Earnings Per Share Reconciliations
GAAP to Core Earnings Per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 GAAP Earnings / Diluted EPS $1.18 $2.40 $2.59 $2.68 $2.14 $3.32 $3.35 $3.50 Exclude results from discontinued operations 0.87 — (0.01) — — — — — Less: Income tax benefit / expense 0.05 — (0.20
Slide 54: Weather-Normalized Earnings per Share Reconciliations
Weather-Normalized Earnings per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 Core1 Diluted EPS $2.10 $2.40 $2.56 $2.68 $2.83 $3.37 $3.35 $3.50 Ameren Missouri weather impact included in Electric 0.03 0.05 (0.04) 0.16 (0.07) 0.43 0.04 (0.05) Margins Less: Income t
Slide 55: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AGA – American Gas Association Hg – Mercury ATXI – Ameren Transmission Company of Illinois GAAP – Generally Accepted Accounting Principles BOD – Board of Directors ICC – Illinois Commerce Commission C – Celsius IRP – Integrated Resource Plan C&I – Commercial & Ind