Consolidated Edison, Inc. · NYSE:ED
Consolidated Edison — ESG Presentation (November 2022)
56 slides from Consolidated Edison's sustainability presentation, Nov 29, 2022
Slide 1: Environmental, Social & Governance Presentation
Consolidated Edison, Inc. Environmental, Social & Governance Presentation November 29, 2022 1
Slide 2: Available Information and Forward-Looking Statements
Investor Relations Available Information On November 3, 2022, Consolidated Edison, Inc. issued a press release reporting its third quarter 2022 earnings and filed with the Securities and Exchange Commission the company’s third quarter 2022 Form 10-Q. This presentation should be read together with, a
Slide 3: Tim Cawley
Tim Cawley Chairman of the Board & Chief Executive Officer Consolidated Edison, Inc. 3
Slide 4: We deliver electricity, gas, and steam to 10 million people
We deliver electricity, gas, and steam to 10 million people. • That’s about 44% of New York State’s electricity needs. • Our electric system is the most reliable in the U.S. • We provide natural gas to 1.2 million customers. • We operate the largest steam distribution system in the U.S. • We reporte
Slide 5: We provide the most reliable electric service in the U.S.
We provide the most reliable electric service in the U.S. Our system reliability exceeds national and New York averages. Customer Interruption Rate 2021 Customers Interrupted per 1,000 Customers Served 1200 1050 1000 961 800 600 488 400 200 139 17 0 National New York Con Edison Con Edison Con Edison
Slide 6: What We Value
What We Value • Safety of our employees and our customers • Operational excellence throughout our systems • Delivering the best possible customer experience 6
Slide 7: Delivering for Those We Serve and Advancing Diversity, Equity and Inclusion for All
Delivering for Those We Serve and Advancing Diversity, Equity and Inclusion for All • Our communities • Our employees • Our shareholders 7
Slide 8: Our Clean Energy Commitment: 5 Pillars
Our Clean Energy Commitment: 5 Pillars • Build the grid of the future. • Empower all of our customers to meet their climate goals. • Reimagine the gas system. • Lead by reducing our company’s carbon footprint. • Partner with our stakeholders. 8
Slide 9: Jen Hensley
Jen Hensley Senior Vice President, Corporate Affairs Consolidated Edison, Inc. 9
Slide 10: Electric Power Industry in New York
Electric Power Industry in New York • In 1994, the New York Public Service Commission (NYPSC) deregulated the public energy sector to promote competitive opportunities in the electric supply industry. • Today, Con Edison procures power for its customers from the NYISO energy markets. • Transmission
Slide 11: New York State's Climate Leadership & Community Protection Act
New York State’s Climate Leadership & Community Protection Act leads the country in clean energy policy: • 2025 6 GW of distributed solar deployment • 2030 70% renewable electricity, 40% carbon emissions reductions, 6 GW of energy storage • 2035 9 GW of offshore wind • 2040 100% carbon-free power •
Slide 12: New York City Greenhouse Gas Emissions Reduction Laws
New York City Greenhouse Gas Emissions Reduction Laws • NYC natural gas ban for new buildings (by 2024 for smaller buildings, by 2027 for large buildings) • Energy efficiency and greenhouse gas emissions limits – Reduce the emissions from the city’s largest buildings 40% by 2030 and 80% by 2050 from
Slide 13: Con Edison's Clean Energy Commitment
Con Edison’s Clean Energy Commitment By 2025 we will: • Invest $300+ million in EV Make-Ready Program • Invest $1.5 billion in energy efficiency programs • Reduce methane emissions from natural gas delivery system to ≤1% 13
Slide 14: Our Clean Energy Commitment: 2030 Goals
Our Clean Energy Commitment 2030 Clean Energy Goals • 1,000 MW Energy Storage • Electrify space or water heating for 150,000 buildings • Electrify 80% of our light duty fleet • Power Con Edison facilities with 100% clean energy • Invest ˃$1 billion in electric transmission for renewable energy • Inv
Slide 15: Our Clean Energy Commitment: 2035-2050 Goals
Our Clean Energy Commitment 2035 Clean Energy Goals • Support installation of 400,000 EV charging plugs • Electrify 100% of our light duty fleet 2040 Clean Energy Goals • Reduce methane emissions from natural gas delivery system to net zero 2050 Clean Energy Goals • Support installation of 1 million
Slide 16: Build the Grid of the Future
Build the Grid of the Future Matthew Ketschke President Consolidated Edison Company of New York, Inc. 16
Slide 17: Targeting Local Greenhouse Gas Emissions
Targeting Local Greenhouse Gas Emissions New York City and Westchester County Source GHG Emissions (2019) Other Fugitive Industrial 5% 4% emissions 2% Buildings 39% Transportation 25% Electricity 25% 17
Slide 18: No single solution exists to address all sources of GHG emissions
No single solution exists to address all sources of GHG emissions. We’ll leverage each of our commodity services to achieve these goals: Potential Implications of Pathways on Our Systems Electric Gas Steam End-Use Sales Increases by Decreases by Decreases by in 2050 more than 40% 60% or more 20%-40%
Slide 19: Summer & Winter System Peaks Will Shift
Summer & Winter System Peaks Will Shift • The summer peak demand for 2023 is forecasted around 13,000 MW. • The winter peak demand for 2022/2023 is forecasted around 8,700 MW. • We expect the summer and winter electric peaks to both grow due to electrification of heat, hot water, stove tops/ovens, d
Slide 20: Climate Change, Unchecked
Climate Change, Unchecked • We partnered with Columbia University on a climate change study to assess our vulnerabilities, modeling scenarios for sea-level rise, heat waves, and other hazards. • We’ll invest an additional $2 billion in climate resiliency and adaptation by 2030. Climate variables Cur
Slide 21: Build the Grid of the Future: Bob Sanchez
Build the Grid of the Future Bob Sanchez President Orange & Rockland 21
Slide 22: Delivering CLCPA Goals
Delivering CLCPA Goals • Reliable Clean Cities transmission projects • Brooklyn Clean Energy Hub • Additional infrastructure to support renewables 22
Slide 23: Utility-owned Energy Storage Projects
Utility-owned Energy Storage Projects • Pomona (Rockland County) • Ozone Park (Queens) • Fox Hills (Staten Island) – 3 MW/12 MWh – 2 MW/10 MWh (under construction) – 13.2 KV Interconnection – 4 KV Interconnection – 7.5 MW/30 MWh – NYISO Participation – NYISO participation – 33 KV Interconnection 23
Slide 24: The Case for Utility-owned Renewable Generation in New York State
The Case for Utility-owned Renewable Generation in New York State • Utilities can provide renewables at lower cost than the private development model. • Utilities have a long-term interest in the state. • The Public Service Commission is reexamining restrictions on utility ownership of renewable gen
Slide 25: Con Edison Transmission Pursuing Regional Clean Energy Opportunities
Con Edison Transmission Pursuing Regional Clean Energy Opportunities Focused on electric transmission development to bring clean energy to customers in Northeast, Mid-Atlantic and MISO regions • New York Energy Solution (NY Transco Partnership) – NYISO selected project to connect upstate renewable e
Slide 26: Enhancing Reliability Through Cyber Security
Enhancing Reliability Through Cyber Security • Aligned with the National Institute of Standards and Technology Cybersecurity Framework and embedded in all technology initiatives. • Identify and employ the latest technological tools to protect our customers and our equipment. • Make annual presentati
Slide 27: Enhancing Reliability Through Data Privacy
Enhancing Reliability Through Data Privacy • Chief privacy officer focuses on both compliance and education. • Regular training across the organization maintains awareness and careful attention to protective measures. • Focus on the evolving data privacy regulatory landscape and taking proactive mea
Slide 28: Empower All of Our Customers to Meet Their Climate Goals
Empower All of Our Customers to Meet Their Climate Goals Vicki Kuo Senior Vice President, Customer Energy Solutions Consolidated Edison Company of New York, Inc. 28
Slide 29: Empowering Customers with Energy Efficiency Upgrades
Empowering Customers with Energy Efficiency Upgrades Since 2009, our programs have empowered more than 2.5 million customers to upgrade their homes and businesses to be more efficient. • The work has saved 11 million metric tons of carbon and assisted over 2,000 affordable housing buildings. • Aim t
Slide 30: Investing in the Electrification Building Heating
Investing in the Electrification Building Heating • Con Edison’s building efficiency programs are investing $1.8 billion from 2020 through 2025 in energy efficiency and clean heating. • Have upgraded ~1% of building space to clean, high-efficiency heat pump heating. • Will need to electrify 10% of s
Slide 31: All-in on Electric Vehicles
All-in on Electric Vehicles • Our PowerReady initiative is supporting installation of 20,000 charging plugs, including 2,500 plugs near disadvantaged communities. • More than one-quarter of electric cars and 25 transit buses in NYC participate in our SmartCharge New York program that rewards drivers
Slide 32: Reimagine the Gas System
Reimagine the Gas System Kathy Boden Senior Vice President, Gas Operations Consolidated Edison Company of New York, Inc. 32
Slide 33: Developing a Long-term Gas Strategy
Developing a Long-term Gas Strategy Enable a cost-effective clean energy transition by reducing sales and delivering low-carbon fuels. • Prepare customers for clean energy transition • Focus on economic viability – Drive growth in energy efficiency and heating electrification – Leverage non-pipeline
Slide 34: Emissions Reductions for Gas Customers
Emissions Reductions for Gas Customers Deliver net-zero greenhouse gas emissions through energy efficiency, electrification, and low-carbon fuel. 100% 100% 75% 50% 40% 60% 25% 15% 25% 0% 2020 emissions Demand reduction 2050 emissions Clean supply Remaining 2050 emissions Electrification Energy effic
Slide 35: Transform Gas Demand and Supply
Transform Gas Demand and Supply Reduce overall gas demand and adopt 100% low-carbon fuels to achieve net-zero greenhouse gas emissions by 2050. Utility Gas Supply (Distribution System) 100% 2020 2030 2040 2050 Fossil gas Renewable natural gas Synthetic natural gas Green hydrogen 35
Slide 36: The Low Carbon Resources Initiative
The Low Carbon Resources Initiative Con Edison is an anchor sponsor of this five-year R&D initiative led by EPRI and GTI Energy to study low-carbon technologies for large-scale deployment by 2030. Comprehensive scope: from production to delivery and storage to end uses • Exploring low-carbon and gre
Slide 37: Developing a Long-term Strategy for Steam
Developing a Long-term Strategy for Steam Our steam system provides low-carbon energy solutions for customers, including opportunities for buildings that will have the most difficulty electrifying. • Maintain or reduce current peak loads • Optimize existing steam system – Design steam-specific energ
Slide 38: Lead by Reducing Our Company's Carbon Footprint
Lead by Reducing Our Company’s Carbon Footprint Venetia Lannon Vice President, Environment, Health & Safety Consolidated Edison Company of New York, Inc. 38
Slide 39: Greening Our Business
Greening Our Business • Since 2005, Con Edison has reduced our carbon footprint by 50%. • Reduce methane emissions from our gas system to net zero by 2040. • Power company facilities with 100% clean energy by 2030. • Reduce greenhouse gas emissions from our steam system to net zero by 2040. 39
Slide 40: Electrifying Our Fleet
Electrifying Our Fleet • We’re committed to electrifying our fleet of light-duty vehicles by 2035 with an interim goal of 80% by 2030. • Our R&D teams are evaluating solutions for medium- and heavy-duty fleet vehicles, including innovative EV bucket truck prototypes. Class 8 Prototype due Q2 2023 40
Slide 41: Partner with Our Stakeholders
Partner with Our Stakeholders Mary Kelly Senior Vice President, Corporate Shared Services Consolidated Edison, Inc. 41
Slide 42: Investing in Communities, Delivering Environmental Justice
Investing in Communities, Delivering Environmental Justice Increasing access to clean energy benefits underserved communities: • Community Power Program • Electric vehicle charging superhub in Bedford-Stuyvesant • Outreach and communication 42
Slide 43: Our Communities
Our Communities We support local nonprofits that maintain and enhance the social, cultural and economic vitality of our communities. • Over 600 local partners work in nearly every neighborhood in our service territory. • We support nonprofit groups dedicated to environmental stewardship, sustainable
Slide 44: Diversity and Sustainability Through our Supply Chain
Diversity and Sustainability Through our Supply Chain Our supply chain strategy is embedding diversity and sustainability in all phases of our procurement and contracting processes. • Purchased $362 million from women- and minority-owned businesses in 2021. • Purchased $582 million from small busine
Slide 45: Focusing on a Diverse Workforce
Focusing on a Diverse Workforce • 52% of employees are people of color • 22% of employees are women • 39% of executives are women • 45% of executives are people of color 45
Slide 46: Advancing an Equitable & Inclusive Culture
Advancing an Equitable & Inclusive Culture • A 14-point action plan outlines concrete ways to drive improvements with a focus on metric-driven changes and cultural transformation. • DE&I metric tied to executive compensation. • Employee forums encourage open dialogue about social issues. • 10 active
Slide 47: Robert Hoglund
Robert Hoglund Senior Vice President & Chief Financial Officer Consolidated Edison, Inc. Chairman Con Edison Clean Energy Business Chairman Con Edison Transmission 47
Slide 48: Long-range Plans for Electric, Gas and Steam
Long-range Plans for Electric, Gas and Steam Our long-range plans guide our programs and investments through 2050. We envision $72 billion in investments over the next 10 years to achieve goals. 2022 - 2024 Forecasted Capital Investment ~$15.7 billion $4.7 billion in green projects $4.7 billion $11
Slide 49: Refocusing Our Business: Clean Energy Business Sale
Refocusing Our Business: Clean Energy Business Sale We reached an agreement to sell Con Edison Clean Energy Businesses to a subsidiary of RWE Aktiengesellschaft for $6.8 billion. • As a strategic buyer, RWE will invest in the growth of the business, resulting in more renewable generation. • Con Edis
Slide 50: Strong Financials Underpin Our Clean Energy Transition
Strong Financials Underpin Our Clean Energy Transition • Scale: $30 billion market cap provides scale as we transition. • Growing asset base: 7.1% three-year rate base CAGR reflects infrastructure investment needed for the clean energy future. • Solid credit ratings: strong balance sheet and financi
Slide 51: Focusing on Affordability
Focusing on Affordability Compared to the national average, our rates are high but total customer bills are below or near average, due to lower than average consumption. 51
Slide 52: Focusing on Affordability
Focusing on Affordability • Costs are a small share of New York’s economy: 0.6–0.7% of GSP in 2030 and 1.4% in 2050. • Mitigation cases show positive net benefits ($90-$120 billion) when considering the value of avoided greenhouse gas emissions and resulting health benefits, in addition to cost savi
Slide 53: Tim Cawley
Tim Cawley Chairman Of The Board & Chief Executive Officer Consolidated Edison, Inc. 53
Slide 54: Adopting Governance Best Practices
Adopting Governance Best Practices Our Board has a strong blend of diversity, tenure, and skills. Board Diversity Board Tenure 54
Slide 55: Recognition and Accolades
Recognition and Accolades • New York Times July 29, 2021, called our resiliency study “the gold standard” • As You Sow Racial Justice Report 2022 • Smart Electric Power Alliance Award April 2021 • 2022 Human Rights Campaign Corporate Equality Index • Energy Star Partner of the Year 2022 • Forbes Bes
Slide 56: Consolidated Edison, Inc.
Consolidated Edison, Inc. Environmental, Social & Governance Presentation November 29, 2022 56
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