American Water Works Company, Inc. · NYSE:AWK
American Water Works — ESG Presentation (July 2023)
26 slides from American Water Works's sustainability presentation, July 2023
Slide 1: American Water's Compelling Sustainability Story
American Water’s Compelling Sustainability Story July 2023
Slide 2: American Water Overview
American Water Overview American Water is the largest and most geographically diverse publicly traded water and wastewater utility in the United States Strengthening the Communities We Serve • Provides safe, affordable and reliable drinking water and wastewater services to over 14 million people wit
Slide 3: Our Strengths
Our Strengths Safety Performance People Solutions ESG Provider Safety is both a Going beyond the Inclusion & Growth enables ESG affirms the strategy & core minimum requirement empowerment pave a investment in training, values we have company value. to solidify our position path for employee & cyber
Slide 4: Sustainability at American Water
Sustainability at American Water Material Topics Stakeholders In 2022, we completed a detailed Materiality Assessment aligned with the GRI Global Reporting Standards, based on internal and external Activists/ Advocacy Groups Investors stakeholder input and written sources Industry Associations Emplo
Slide 5: Operational Goals & Strategies
Operational Goals & Strategies Water Use & Efficiency Resiliency Greenhouse Gas (GHG) Emissions • By 2035, continue to meet customer needs • By 2030, increase our water system resiliency • Reduce absolute scope 1 and 2 GHG while saving 15% in water delivered per to respond to more extreme events by
Slide 6: ESG Alignment with Annual Performance Plan
ESG Alignment with Annual Performance Plan Sustainability is embedded in our Annual Performance Plan Our Annual Performance Plan (APP), which provides for at-risk cash compensation to be paid to Company employees upon the achievement of stated short-term annual business objectives, is aligned with o
Slide 7: Supporting Governance Structure
Supporting Governance Structure Committees of the Board of Directors Our corporate governance structure promotes accountability and integrity across the organization. Our Board of Directors have the following standing committees which provide oversight to the below sustainability topics: Safety, Env
Slide 8: Widely Recognized Sustainability Program Aligned with Best Practices
Widely Recognized Sustainability Program Aligned with Best Practices 8
Slide 9: Leading Sustainable Water Utility
Leading Sustainable Water Utility S&P Global Ratings ESG Evaluation Barron’s 100 Most Sustainable U.S. Companies Newsweek’s List of America’s Highest Score Given to a U.S. Utility; Most Trusted Companies 3rd Highest Globally Highest Ranked Utility; 19th Overall U.S. Department of Homeland Security J
Slide 10: Key Ratings
Key Ratings Agency Rating Type Scale Performance (Best to Worst) AA MSCI ESG Rating AAA – CCC Upgraded in 2023 Sustainalytics ESG Risk Rating 0 – 100 21.9 87 S&P Global ESG Evaluation 100 – 0 Highest ESG Score for U.S. Water Utility B CDP Climate Change Questionnaire A–D Highest ESG Score for U.S. W
Slide 11: Reporting & Disclosures
Reporting & Disclosures Frameworks & Standards American Water Reports & Sustainability Report & Inclusion, Diversity & Charitable Foundation Equity Website / Report Political Contributions CDP Disclosures Data Summary DiversityatAW.com Community Impact Reports Insider Trading and Anti-Corruption & E
Slide 12: Recent Disclosures
Recent Disclosures Commitment to data transparency and sharing timely information on key sustainability and diversity metrics Environmental Social Governance - Two science-based GHG - Maintain two people-related - Board individual diversity and emissions goals aligned with the goals in Annual Perfor
Slide 13: Investor Relations Contacts
Investor Relations Contacts Aaron Musgrave, CPA Jack Quinn, CPA Vice President, Investor Relations Senior Manager, Investor Relations aaron.musgrave@amwater.com jack.quinn@amwater.com Janelle McNally Kelley Uyeda Senior Manager, Investor Relations & ESG Analyst, Investor Relations & ESG janelle.mcna
Slide 14: Appendix
Appendix 14
Slide 15: American Water's GHG Emissions Profile
American Water’s GHG Emissions Profile Providing Services to 14M People with a Light GHG Footprint American Water Co. A 83M Co. B 78M • Stationary Co. C 57M Scope 1: • Fleet Vehicles 73,000 MT Direct Emissions Co. D 43M • Refrigerants Co. E 40M Scope 2: • Purchased Power from Electric 461,000 MT Co.
Slide 16: New, Science-Based Goals for Scope 1 and 2 GHG Emissions Reductions
New, Science-Based Goals for Scope 1 and 2 GHG Emissions Reductions - Aligned with Paris Agreement Medium-term: By 2035, reduce absolute Scope 1 and 2 emissions by 50% (2020 baseline1, 2) Long-term: Achieve Net Zero Scope 1 and 2 emissions by 2050 • Medium- and long-term goals are science-based and
Slide 17: Water Use & Efficiency Goal
Water Use & Efficiency Goal By 2035, American Water commits to meet customer needs while saving BENEFITS 15% in water delivered per customer compared to a 2015 baseline 2015 2022 2035 › Environment › Energy Savings 3.6% reduction gained since 2015 › Avoided Capital › Reduce Non-Revenue Water 3.6% 3
Slide 18: Water Supply Resilience Goal
Water Supply Resilience Goal By 2030, increase our water system resiliency to respond 2022 Performance: to more extreme events by increasing URI* weighted average by 10% from 2020 baseline 68.8% BENEFITS › Availability and reliability of service › Customer, employee and public safety › Robust, compr
Slide 19: United Nations SDGs
United Nations SDGs Supportive of United Nations Sustainable Development Goals As the largest publicly traded water and wastewater utility in the United States, we have a great opportunity to contribute to the following UN SDGs through alignment with our business strategy and our management of mater
Slide 20: American Water Earns DHS SAFETY Act Designation
American Water Earns U.S. Department of Homeland Security (DHS) SAFETY Act Designation • American Water is the first U.S. water and wastewater company and third utility to earn the Support Anti-Terrorism by Fostering Effective Technologies (SAFETY) Act designation • Serves as one of the highest leve
Slide 21: New Jersey American Water Partnering on the Largest U.S. Floating Solar Array
New Jersey American Water Partnering on the Largest U.S. Floating Solar Array ESG at AWK Impact Story New Jersey American Water is partnering with NJR Clean Energy Ventures to construct this solar array, which will help offset power costs at the Canoe Brook Water Treatment Plant • 8.9 megawatt solar
Slide 22: MSG Constructs Net Zero Operations Center
MSG Constructs Net Zero Operations Center AWK Impact Our Military Services Group constructed a net zero operations center at Hill Air Force Base to enhance energy efficiency and reduce emissions that contribute to climate variability. • Reduced energy usage through decentralized heating and cooling
Slide 23: Our Acquisition Pipeline: Continued Growth and Community Impact
Our Acquisition Pipeline: Continued Growth and Community Impact for Decades to Come Sheridan, IN Prior to Acquisition • Environmental compliance challenges with the U.S. EPA • Consistent sewer overflow events during wet weather • Community growth restrictions stemming from non-compliance Post Acquis
Slide 24: Value of American Water's Resiliency Investments Demonstrated During Hurricane Ida
Value of American Water’s Resiliency Investments Demonstrated During Hurricane Ida • The river outside our Raritan-Millstone Plant in New Jersey crested at record height of 44.87’, three feet below the top of the recently heightened flood wall • Flood doors at our Norristown Water Treatment Plant in
Slide 25: Scranton Wastewater: An American Water Success Story
Scranton Wastewater: An American Water Success Story Prior to Acquisition • Consent Order and Long-Term Control Plan with the U.S. EPA • $140M in required upgrades • Significant financial penalties • ~700M gallons of sewer overflow discharge annually Post-Acquisition Accomplishments • Maintained rea
Slide 26: ESG at American Water | Annual Compensation Alignment
ESG at American Water | Annual Compensation Alignment Annual Performance Plan (APP) Measures and Required Training Environmental • We are committed to protecting the environment and maintaining our history of materially complying with, Drinking Water Program Compliance and in many cases, surpassing,
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