Southern Company (the) · NYSE:SO
Southern Company (the) — ESG Presentation (February 2024)
30 slides from Southern Company (the)'s sustainability presentation, February 2024
Slide 1: Shareholder Sustainability Update
Shareholder Sustainability Update February 2024
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 More than 28,000 Employees Approximately 44,000 MW of Generating Capacity In this presentation, the terms “we”, “us” and “our” all refer to So
Slide 3: Southern Company Value Proposition
Southern Company Value Proposition Strategy: Maximize long-term value to shareholders through a customer-, community-, and relationship-focused business model that produces sustainable levels of return for investors Key financial objectives ✓ Superior risk-adjusted total shareholder return 76 years
Slide 4: Premier State Regulated Electric and Gas Utilities
Premier State Regulated Electric and Gas Utilities About 90% of Atlanta Gas Light Chattanooga Gas earnings and cash Nicor Gas flow come from Virginia Natural Gas our state-regulated ▪ Our electric and gas utilities serve customers in 6 states* utility operations ▪ Electric utilities regulated by sta
Slide 5: ESG Highlights
ESG Highlights Governance (Slides 6-11) ▪ Southern Company’s leadership changes reflects thoughtful succession planning ▪ Regular refreshment strengthens our diverse, fit-for-purpose Board ▪ Corporate governance standards designed to create long-term value Environmental (Slides 12-19) ▪ Progress tow
Slide 6: Governance
Governance Thoughtful succession planning is a strategic priority for Southern Company – Named Southern Company’s President effective March 2023 and CEO effective May 2023; Board elected Chris to the role of Chairman effective December 31, 2023 – Served as President of Georgia Power, Southern Compan
Slide 7: 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 8: Governance
Governance Focus on regular, thoughtful board refreshment Jan 2019 October 2023 Director Additions Past 5 Years Janaki Akella Anthony F. Earley Kristine L. Svinicki Chris Womack David E. Meador Lizanne Thomas Shantella E. Cooper Former Digital President & CEO, PG&E Adjunct Professor of Chairman, Pre
Slide 9: Governance
Governance Independent, diverse and experienced Board Southern Company’s Directors possess a range and depth of expertise and experience to effectively oversee the Company’s operations, risks and long-term strategy. Public Company Business Nuclear CEO Experience Integration Audit Committee Governmen
Slide 10: 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 11: Governance
Governance Corporate governance standards and practices designed to create long-term value for our stockholders ▪ Annual election of Directors ▪ 100% independent Board committees ▪ Executive session on agenda at every regular Board ▪ Majority voting standard for Director election and committee meeti
Slide 12: Environmental
Environmental Medium-term GHG Goal: 50% reduction by 2030 Long-term GHG Goal: Net zero by 2050 Annual energy mix Total Scope 1 GHG emissions (based on equity share) 1% 14% 15% 15% 14% 157 49% Metric tons of C02e (millions) Renewables/Other 16% 16% 15% 17% Nuclear 82 85 80 48% 50% 52% 69% Natural Gas
Slide 13: Achieving our path to net zero
Environmental Achieving our path to net zero A path to net zero ▪ We expect our path to net zero to be achieved through: – Continued coal fleet transition – Utilization of natural gas to enable fleet transition – Further growth in portfolio of zero- carbon resources – Enhanced energy efficiency init
Slide 14: Thoughtful scenario planning process guides fleet transition
Environmental Thoughtful scenario planning process guides fleet transition to achieve GHG reduction targets ▪ Scenario planning process has been in place since 2008 and ▪ Each operating company is committed to reliability and serves as basis for integrated resource planning at state- affordability w
Slide 15: Georgia Power 2023 Integrated Resource Plan (IRP) Update
Georgia Power 2023 Integrated Resource Plan (IRP) Update IRP Update filed in support of Georgia’s extraordinary projected economic growth and increased energy demand Since the approval of Georgia Power’s 2022 IRP, Georgia’s economic development efforts have added $24B+ in projected capital investmen
Slide 16: Coal retirements since 2007 demonstrate significant fleet transition
Environmental Coal retirements since 2007 demonstrate significant fleet transition Number of Coal Units Coal Capacity Megawatts (MW) (Nameplate) 66 91% 20,457 87% reduction reduction in the in coal number of capacity* coal units* 9,799 8,523 18 15 2,670 6 2007 2020 2022 Mid-2030s E* 2007 2020 2022 M
Slide 17: Strong historical growth in renewables and storage portfolio
Environmental Strong historical growth in renewables and storage portfolio, with significant future additions expected ~20,000 MWs Over 4X increase in renewable and storage resources <5,000 MWs 2015 2016 2017 2018 2019 2020 2021 2022 2023 2030E* Solar Wind Hydro Storage Other Includes owned and cont
Slide 18: Vogtle Units 3 & 4 will provide reliable, emissions-free energy
Environmental Vogtle Units 3 & 4 will provide reliable, emissions-free energy to customers for 60 - 80 years Plant Vogtle Unit 3 has entered commercial operation July 2023 and is now serving customers and the State of Georgia; Unit 4 projected in-service date 2Q24 ▪ Unit 3 is the first new nuclear u
Slide 19: Focusing on the full value chain of GHG emissions
Environmental Focusing on the full value chain of GHG emissions In addition to reducing emissions from operations (Scope 1 & 2), we are committed to driving upstream and downstream emission reductions (Scope 3). Scopes 1 & 2 Highlights 2022 GHG Emissions by Scope ✓ Continued to enhance reporting in
Slide 20: Strong commitment to human capital management
Social Strong commitment to human capital management and addressing systemic racism ▪ Committed to Moving to Equity Pillars Key 2023 Highlights – Building a healthy and diverse culture TALENT – Committed to be a role model among – Increased representation for people of color in the workforce and for
Slide 21: Workforce demographics reflect our commitments
Social Workforce demographics reflect our commitments (2023 highlights) Aggregated workforce EEO-1 data is available here. 21
Slide 22: We are committed to a Just Transition for our stakeholders
Social We are committed to a Just Transition for our stakeholders ▪ As Southern Company transitions to a clean Our Just Transition Principles foster: energy future, we understand there will be potential opportunities and challenges for our Strong governance workforce, communities and customers Effec
Slide 23: Disclosures responsive to investor interest
Transparency Disclosures responsive to investor interest Sustainability Website available here Key Data and Reports available here Supplier Code of Conduct available here ESG Data Table CDP Climate Reports Sustainability Summary Frameworks & Other • TCFD Report • SASB Report • GRI Report • EEI ESG/
Slide 24: Appendix
Appendix Environmental Transparency 24
Slide 25: Southern Company seeks transformational technologies for carbon-free energy
Appendix – Environmental Southern Company seeks transformational technologies needed to facilitate the transition to carbon-free energy Southern Company has undertaken a systematic, comprehensive review of its R&D plan, including the identification of long-term objectives and aspirations and develop
Slide 26: Ratings and rankings demonstrate commitment and progress
Appendix - Transparency Ratings and rankings demonstrate commitment and progress Scale Rating Letter grade CCC – AAA (best) A MSCI (2023) Score 0-10 (best) 5.9 Sustainalytics ESG Risk Rating (2023) 0 (best) – 100 29.1 ISS Governance Score (2024) 1 (best) – 10 1 CDP Climate (2021 & 2022) Letter grade
Slide 27: Policy engagement and advocacy aligned with net zero by 2050 goal
Appendix – Transparency Policy engagement and advocacy is aligned with our net zero by 2050 goal ▪ On our website we describe the public policy advocacy Published 2021 Trade Association and positions that we express in our engagements with policy Climate Engagement Report in November makers 2022 to
Slide 28: Corporate Sustainability Goals Aligned with UN SDGs
Appendix - Transparency Corporate Sustainability Goals Aligned with UN SDGs Southern Company has mapped our five corporate sustainability priorities to the United Nations’ Sustainable Development Goals framework, indicating our alignment with a sustainable future. 28
Slide 29: Third parties rate Southern Company highly for ESG leadership
Appendix – Transparency Third parties continue to rate Southern Company highly for its ESG leadership and transparency 2023 Top 50 Companies for 2023 America’s Best Large 2022 Wall Street Diversity, DiversityInc (8th Employers (No. 15 overall Journal’s consecutive year) in U.S.), Forbes Magazine Man
Slide 30: 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