Southern Company (the) · NYSE:SO
Southern Company (the) — Investor Presentation (March 2022)
26 slides from Southern Company (the)'s investor presentation, March 2022
Slide 1: Shareholder Update March 2022
Shareholder Update March 2022 Learn more: investor.southerncompany.com and southerncompany.com/sustainability
Slide 2: We provide clean, safe, reliable, affordable energy and customized solutions
We provide clean, safe, reliable, affordable energy and customized solutions Capabilities in 50 States 7 Electric & Natural Gas Utilities 9 Million Customers Approximately 27,300 Employees Approximately 43,000 MW of Generating Capacity In this presentation, the terms we, us and our all refer to Sout
Slide 3: Value Proposition
Value Proposition Southern Company’s strategy is to maximize long-term value to shareholders through a customer-, community- and relationship-focused business model that produces sustainable levels of return on energy infrastructure Key financial objectives Superior risk-adjusted total 74 years Di
Slide 4: Premier State Regulated Electric and Gas Utilities
Premier State Regulated Electric and Gas Utilities Atlanta Gas Light About 90% of Chattanooga Gas earnings and cash Nicor Gas Virginia Natural Gas flow come from our state-regulated Our electric and gas utilities serve customers in 7 states utility operations Electric utilities regulated by stat
Slide 5: Thoughtful scenario planning process guides fleet transition to achieve net zero target
Thoughtful scenario planning process guides fleet transition to achieve net zero target Scenario planning process has been in place since 2008 and Each operating company is committed to reliability serves as basis for integrated resource planning at state- and affordability while adopting new te
Slide 6: 2021 Business Recap
2021 Business Recap Reported as of 4Q21 earnings call on February 17, 2022 Continued to manage through COVID-19 pandemic while prioritizing safety, health and well-being of our workforce Strong financial and operational performance Full year 2021 earnings exceeded the top of our guidance range
Slide 7: Vogtle Units 3 & 4 will provide carbon-free energy to customers for 60-80 years
Vogtle Units 3 & 4 will provide carbon-free energy to customers for 60 - 80 years Plant Vogtle Units 3 and 4 will be the first new nuclear units built in the United States in three decades Mega project in Southeast Georgia with a workforce of 7,000+ people onsite and 800 permanent jobs once comple
Slide 8: Sustainability Highlights
Sustainability Highlights Regular refreshment strengthens our diverse, fit-for- purpose Board that thoughtfully oversees key ESG risks, with independent directors that are committed to regular direct engagement with our largest shareholders – Slides 9-12 Progress toward 2030 and 2050 GHG emissio
Slide 9: Governance
Governance Focus on regular, thoughtful board refreshment Mar 2018 Oct 2021 Recent Independent Director Additions Ernest J. Moniz Janaki Akella Anthony F. Earley Colette Honorable Kristine L. Svinicki Professor, Special Advisor to MIT Digital Transformation Leader, President & CEO, PG&E Corp Partner
Slide 10: Governance
Governance Robust role of the Lead Independent Director and strong independent Directors David J. Grain was elected Lead Independent Director in May 2021 by the independent members of Southern Company’s Board of Directors – Chief Executive Officer and Founder of Grain Management, a private equity
Slide 11: Governance
Governance Collective skills, qualifications, attributes and experience to advance our long-term strategy 11
Slide 12: Governance
Governance Thoughtful Board oversight of key ESG risks and opportunities Full Board regularly discusses key ESG topics as part of its regular agenda, including fleet transition and human capital management Committees take a deeper dive into ESG risks and opportunities and report out to full Board Co
Slide 13: Environmental
Environmental Long-term GHG goal of net zero by 2050 A path to net zero We expect our path to net zero to be achieved through: – Continued transition away from coal – Utilization of natural gas to enable fleet transition – Further growth in portfolio of zero- carbon resources – Enhanced energy eff
Slide 14: Environmental
Environmental We expect to consistently achieve our 50% reduction goal well in advance of 2030, and possibly as early as 2025 Annual energy mix • Energy mix percentages include non-affiliate power purchase agreements. *In 2020, the combination of the COVID-19 pandemic and relatively mild weather • R
Slide 15: Environmental
Environmental Coal retirements since 2007 demonstrate significant fleet transition NUMBER OF COAL UNITS COAL CAPACITY MEGAWATTS 66 88% 78% 20,457 reduction reduction in number of in coal capacity coal units 9,799 18 4,430 8 2007 2020 2028E Proposed* 2007 2020 2028E Proposed* Recently announced 6,370
Slide 16: Environmental
Environmental Strong historical growth in renewables portfolio, with significant future additions expected SOUTHERN COMPANY SYSTEM RENEWABLES GROWTH (MWs) 12,000 10,000 8,000 6,000 4,000 2,000 0 2015 2016 2017 2018 2019 2020 2021 Solar Battery/Other* Wind Hydro *Battery/other also includes landfill
Slide 17: Georgia Power Integrated Resource Plan
Environmental Georgia Power Integrated Resource Plan Transforming the Fleet and Grid GRID • Transmission Strategy – Shift to a more proactive, longer-term approach – develop and execute a STRATEGY comprehensive transition strategy to effectively facilitate the changing generation landscape • New Tec
Slide 18: Environmental
Environmental Focus on investor interest in the full value chain of GHG emissions 2021 2022 and beyond Scopes 1 and 2: Engaged Deloitte (independent auditor) to provide Reporting all material assurance on Scope 1 and 2 emissions for the years 2020 and 2021 emissions Engaged consultant in 2021 to
Slide 19: Environmental
Environmental Policy engagement and advocacy is aligned with our net zero by 2050 goal Our public policy advocacy positions On our website we describe the public policy advocacy ‒ Alignment with the Paris Agreement positions that we express in our engagements with ‒ Effective carbon policy policy
Slide 20: Social
Social Strong commitment to human capital management and addressing systemic racism Enhancing pay equity and workforce diversity Commitment to racial equity transparency – In 2020, we strengthened our holistic approach to DE&I and building a healthy and diverse culture – In 2021, began disclosin
Slide 21: Social
Social Established racial equity framework in 2020 and published our 2021 Transformation Report outlining recent progress Our Framework and Commitments Key 2021 Highlights Our commitment is to increase and improve outreach, recruitment, TALENT Underrepresented groups, including people of color and w
Slide 22: Social
Social Workforce demographics reflect our commitments (2021 highlights) Full EEO-1 Summary for 2020 is available here. 22
Slide 23: Social
Social Working to facilitate a Just Transition as we seek to decarbonize our fleet Employees Robust training programs to enhance Communities Focus on economic development to 73 % of the coal generation units we owned in 2007 have been technical expertise and professional support the continued growth
Slide 24: ESG Leadership
ESG Leadership Third parties continue to rate Southern Company highly for ESG leadership 2022 America’s Best Large 2021 Top 50 2021 Wall Street Employers, Forbes magazine – Companies for Journal’s Management No. 2 overall in U.S. Diversity, DiversityInc 250 List, Drucker Institute 2021 Best Employer
Slide 25: ESG Leadership
ESG Leadership Disclosures responsive to investor interest Enhanced Sustainability Website published in March 2022 Key Data and Reports and Data available here ESG Data Table TCFD and SASB Content Indices EEO-1 EEI ESG Template CDP Climate Reports Corporate Responsibility Transformation Report 25 25
Slide 26: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements Certain information contained in this presentation is forward-looking information based on current expectations and plans that involve risks and uncertainties. Forward-looking information includes, among other things, statements concerning Souther
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