Firstenergy Corp. · NYSE:FE
Firstenergy — ESG Presentation (May 2021)
30 slides from Firstenergy's sustainability presentation, May 7, 2021
Slide 1: Environmental Social Corporate Governance May 2021
Corporate Governance Shareholder Outreach & Engagement Environmental Social Corporate Governance May 2021
Slide 2: Cautionary Statement: Forward-looking Statements
Cautionary Statement Forward-looking Statements Corporate Governance Shareholder Outreach & Engagement This presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 based on information currently available to management. Such stateme
Slide 3: Our Mission
We are a forward-thinking electric utility powered by a diverse team of employees committed to making customers’ lives brighter, the environment better and our communities stronger. Customers Environment Diverse Team Forward-Thinking Communities Our Mission Corporate Governance Shareholder Outreach
Slide 4: Forward-thinking electric utility key facts
We are a forward-thinking electric utility powered by a diverse team of employees committed to making customers’ lives brighter, the environment better and our communities stronger Total Assets 44B Total Customers in Six States Transmission Miles Square Miles of Service Territory 2021F Rate Base Emp
Slide 5: FE's Value Proposition
A premier customer-focused, pure-play all electric regulated utility Driving sustainable, regulated earnings growth and a competitive dividend Committed to the strengthening balance sheet and enhancing flexibility 3 regulated transmission utilities 10 distribution utilities, 6M+ customers, 6 states
Slide 6: Putting FirstEnergy on the Right Path Forward
Putting FirstEnergy on the Right Path Forward Corporate Governance Shareholder Outreach & Engagement
Slide 7: Selecting the Right Team to Best Position FirstEnergy
Selecting the Right Team to Best Position FirstEnergy Appointed John W. Somerhalder as vice chairman of the Board, as of March 1, 2021 Well-respected, 40-year energy industry executive with extensive experience navigating complex challenges and driving strong corporate governance Also serves as exec
Slide 8: 1Q21 Accomplishments
1Q21 Accomplishments Added a new Ethics and Compliance component to our KPIs and a new cascading priority for every employee Appointed strong leaders at the executive management and Board levels to create a culture where compliance is ingrained Limiting participation in the political process Paused
Slide 9: Taking Steps to Reduce Regulatory Uncertainty
Continuing to fully cooperate with the government investigations Taking proactive steps to remove regulatory uncertainty in Ohio and resolve a range of proceedings affecting the company’s Ohio utilities Pursuing an open and comprehensive dialogue with the Staff of the Public Utilities Commission of
Slide 10: Board and Corporate Governance Practices
Board and Corporate Governance Practices Corporate Governance Shareholder Outreach & Engagement
Slide 11: Highly Skilled & Diverse Board
Highly Skilled & Diverse Board We seek to maintain a well-rounded and diverse Board representing a wide breadth of experience and perspectives that balances the institutional knowledge of longer-tenured directors with the fresh perspectives brought by newer directors. Below are highlights regarding
Slide 12: Board Skills Matrix
Board Skills Matrix Corporate Governance Shareholder Outreach & Engagement This overview depicts certain attributes, experiences, qualifications and skills of our director nominees. Additional biographical information and qualifications for each director is provided in our proxy statement. The above
Slide 13: Corporate Responsibility/ESG
Corporate Responsibility/ESG Corporate Governance Shareholder Outreach & Engagement
Slide 14: Corporate Responsibility/ESG
Corporate Responsibility/ESG Our ESG story is focused on living our mission by staying true to our core values and behaviors while pursuing objectives and initiatives that positively impact our employees, customers, communities and the environment. Target Carbon neutral $11.5B 28 % Environmental by
Slide 15: Corporate Responsibility / ESG Timeline
Corporate Responsibility / ESG Timeline 2015 2025 2019 2020 2030 2050 2018 Corporate Governance Shareholder Outreach & Engagement Formed Corporate Responsibility Team Set CO2 emissions goal of 90% reduction by 2045 Published Climate Report Published Climate Story Published Corporate Responsibility w
Slide 16: ESG: Climate Story
ESG: Climate Story Corporate Governance Shareholder Outreach & Engagement Protecting and enhancing our transmission system to enable a clean-energy and carbon-neutral future Building a technologically advanced distribution platform that improves grid reliability and resiliency, while also enabling o
Slide 17: FirstEnergy's Carbon Reduction Goals – Past & Future
FirstEnergy’s Carbon Reduction Goals – Past & Future Corporate Governance Shareholder Outreach & Engagement Enhanced GHG Goals (set 2020) New goals represent a significant expansion of prior CO2 goal 2019 baseline reflects FE’s transformation to a fully regulated utility In alignment with Paris Agre
Slide 18: ESG: Greenhouse Gas Reduction Goal
ESG: Greenhouse Gas Reduction Goal Scope 1 emissions Corporate Governance Shareholder Outreach & Engagement In alignment with the Paris Agreement Explore operational flexibilities with WV coal fleet Continue to replace aging SF6 transmission breakers Targeting 100% of new purchases for light-duty an
Slide 19: Peer Climate Related Goals
AEP 80% reduction by 2030, net zero by 2050 Ameren Net zero by 2050 Dominion Net zero by 2050 DTE 50% reduction by 2030, 80% by 2040, net zero by 2050 Duke 50% reduction by 2030, net zero by 2050 Entergy 50% reduction by 2030, net zero by 2050 PPL 70% reduction by 2040, 80% reduction by 2050 Souther
Slide 20: ESG: Environmental Highlights
ESG: Environmental Highlights Targeting 100% of new purchases for light-duty and aerial truck fleet to be electric or hybrid vehicles 100% of aerial trucks replacements ordered are hybrid with anticipated delivery to begin at the end of 2Q21 Continue to implement Integrated Vegetation Management pra
Slide 21: ESG: Social Highlights
ESG: Social Highlights Employee-Focused Continue to focus on safety as an unwavering core value, proactively identifying and mitigating life-changing events and exposure Experienced zero systemwide “Life-Changing Events” in 2020 and year-to-date in 2021 Widening mindset beyond physical safety to inc
Slide 22: ESG: Governance Highlights
ESG: Governance Highlights Our Board of Directors and executive leadership is committed to strong company performance built upon a foundation of ethics and integrity The Compliance Oversight Subcommittee of the Audit Committee assesses the current compliance program, makes recommendations for improv
Slide 23: Build a Diverse Workforce for the Future
Build a Diverse Workforce for the Future Announced our aspiration to increase the racial and ethnic diversity of our workforce and leadership by 30% by 2025 Hiring process improvements and unconscious bias training being implemented FE Ambassador network to build/strengthen relationships to expand d
Slide 24: Executive Compensation
Executive Compensation Corporate Governance Shareholder Outreach & Engagement
Slide 25: Key Executive Compensation Highlights
Key Executive Compensation Highlights In 2018, we made substantial changes to our compensation program as a result of shareholder feedback and maintained the same general structure and design. These changes helped to drive strong Say-on-Pay votes. Corporate Governance Shareholder Outreach & Engageme
Slide 26: Performance Metrics Align With Company Strategy and Long-Term Shareholder Value
Performance Metrics Align With Company Strategy and Long-Term Shareholder Value 2020 Performance Metrics How Our Metrics Support Long-Term Growth Initiatives Short-Term Incentive Program Long-Term Incentive Program Operating Earnings Operations and Maintenance (O&M) Operations Index Safety Days Away
Slide 27: Corporate Governance Shareholder Outreach & Engagement
Corporate Governance Shareholder Outreach & Engagement
Slide 28: Appendix
Appendix Corporate Governance Shareholder Outreach & Engagement
Slide 29: Compliance Focus Areas
Compliance Focus Areas Appointed new senior leaders with unwavering commitment to integrity: CEO, Chief Legal Officer, Chief Ethics and Compliance Officer (CECO), and Vice Chair of the Board and Executive Director Established the Compliance Oversight Subcommittee of the Audit Committee to oversee, w
Slide 30: Compliance Focus Areas
Compliance Focus Areas Held event where Board Chair and Subcommittee Chair addressed FE’s top 140 leaders specifically on expectations to act with integrity in everything we do Conducted up-the-ladder training of the Legal Department Addition of the Code of Business Conduct training to the new emplo