Ameren Corporation · NYSE:AEE
Ameren — ESG Presentation (August 2024)
62 slides from Ameren's sustainability presentation, August 2024
Slide 1: Leading the Way to a Sustainable Energy Future
Leading the Way to a Sustainable Energy Future Sustainability Investor Presentation August 2024 1
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented weather-normalized and core earnings per share, which are non-GAAP financial measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is include
Slide 3: Company Description
Company Description Fully rate-regulated electric and natural gas utility Ameren Businesses 2.4M electric Ameren Missouri customers • Electric transmission, distribution, and generation business and a natural gas distribution business in Missouri regulated by MoPSC 0.9M gas • Serves 1.2 million elec
Slide 4: How We Integrate Sustainability
How We Integrate Sustainability Leading the Way to a Sustainable Energy Future | August 2024 4
Slide 5: How We Think About Sustainability
How We Think About Sustainability ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT Operating to reduce emissions and Placing people at the center of waste and preserving natural everything we do by supporting resources while providing safe, customers, empowering co- Vision: reliable, and affordable electric
Slide 6: Our Strong and Diverse Leadership Team
Our Strong and Diverse Leadership Team Ameren’s Board of Directors Cynthia J. Catherine Ward H. Noelle K. Ellen M. Rafael Kimberly Richard J. Craig S. James C. Steven H. Martin J. Leo S. Brinkley S. Brune Dickson Eder Fitzsimmons Flores J. Harris Harshman Ivey Johnson Lipstein Lyons, Jr. Mackay, Jr.
Slide 7: Our Strong Organizational Focus on Sustainability
Our Strong Organizational Focus on Sustainability Ajay Arora Mark Fronmuller Gwen Mizell Chonda Nwamu John Rhea Eric Seidler Kristol Simms SVP, Chief SVP, Corporate SVP, Chief EVP, General VP, Chief Ethics SVP, Supply VP, Clean Energy Renewable Development, Sustainability, Counsel and and Compliance
Slide 8: How We View Sustainability Pillars and Risks
How We View Sustainability Pillars and Risks SUSTAINABLE PILLARS ENVIRONMENTAL SOCIAL IMPACT GOVERNANCE GROWTH • Board Composition and Committee Oversight • Community Impact • Infrastructure Investment • Incentive Compensation • Climate Change • Diversity, Equity & • Disciplined Cost KEY • Data Priv
Slide 9: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT • Responsibly transitioning to a cleaner and more diverse portfolio • Delivered value to customers in 2023 while focused on safety ‒ Target carbon reductions from 2005 levels: 60% by 2030; 85% by 2040; net ‒ Ameren-supplied
Slide 10: Solid Sustainability Ratings
Solid Sustainability Ratings AAA 0 A Sept. 2023 July 2023 Feb. 2024 A Climate B 27.2 Medium Risk Water B Range: Range: Range: A-F AAA-CCC 0-100 (A is best) (AAA is best) (Lower is better) CCC 100 F Ameren Corp. 98.6 Trendsetter Oct 2023 Leading the Way to a Sustainable Energy Future | August 2024 10
Slide 11: Environmental Stewardship
Environmental Stewardship 11
Slide 12: Our Focus on Delivering a Cleaner Energy Future Responsibly
Our Focus on Delivering a Cleaner Energy Future Responsibly While providing safe, reliable and affordable energy to customers • Climate risk management and mitigation – Targeting significant reductions in greenhouse gases – Implementing robust customer energy efficiency programs – Investing to moder
Slide 13: Missouri Integrated Resource Plan filed with MoPSC Sep. 2023
Missouri Integrated Resource Plan filed with MoPSC Sep. 20233 Least-cost approach to reliably meet customer energy needs in an environmentally responsible manner • Carbon emissions1: Targets substantial reductions; 60% by 2030, 85% by 2040 and net-zero by 2045 • Coal: All energy centers retired by 2
Slide 14: Least-Cost Approach for Reliability, Affordability and the Environment
Least-Cost Approach for Reliability, Affordability and the Environment Sources of Energy • Targets net-zero carbon emissions by 20451 while meeting customers’ rising needs and expectations for reliable, affordable and clean energy sources • Includes balanced mix of energy sources to support continue
Slide 15: Ameren's Pathway to Carbon Emission Reduction Goals
Ameren’s Pathway to Carbon Emission Reduction Goals Science based targets consistent with 1.5°C limit of the Paris Agreement • Ameren’s carbon emission reduction goals1 (60% by 2030, 85% Emission Reduction Pathways by 2040, and net-zero by 2045) are science based and Consistent with Paris Agreement
Slide 16: Ameren Missouri New Generation Projects
Ameren Missouri New Generation Projects Cleaner, More Reliable Energy Through a Balanced Energy Portfolio Simple Solar Cycle Gas Cass Bowling Huck Finn1,2 Boomtown2,3 Vandalia2 Split Rail Castle Bluff County2,3 Green2 Facility size 200-MW 150-MW 150-MW 50-MW 50-MW 300-MW 800-MW Agreement Build- Buil
Slide 17: Robust and Cost-Effective Energy Efficiency and Demand Response Programs
Robust and Cost-Effective Energy Efficiency and Demand Response Programs • Energy efficiency programs generated over $3.2 billion in net benefits for all customers from 2014 to 2023 • Robust energy efficiency programs have helped residential and business customers save more than 6,300,000 MWh in fir
Slide 18: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Ameren Transmission • In Apr. 2021, MISO issued report outlining preliminary long- range transmission planning roadmap through 2039 – Generation resources in MISO states are rapidly evolving – Significant additions of renewable generation are expected –
Slide 19: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Meeting Our Customers’ Needs Through Geographic Energy Diversity and Increased Import Capacity • Captured 100% of Tranche 1 projects in our service territory – Delivering cost-effective, high value projects to our communities – Expect construction to beg
Slide 20: Wildfire Risk
Wildfire Risk • Per the Federal Emergency Management Agency (FEMA), overall wildfire risk remains low in our service territory • Mitigations in place to improve or eliminate triggers for wildfires ‒ Include grid resiliency and hardening programs, aging infrastructure replacement plans, vegetation ma
Slide 21: Callaway Nuclear Operations
Callaway Nuclear Operations • Strong safety performance • Historically strong operating performance – Extended operating license through 2044 and expect to seek an extension beyond 2044 – Replaced major plant components, including steam generators, generator stator and rotor and reactor vessel head
Slide 22: Environmental Stewardship – Coal-Fired Energy Centers
Environmental Stewardship – Coal-Fired Energy Centers CO2 emissions reduction NOx emissions reduction SO2 emissions reduction Mercury emissions (generation): 37%1 (generation): (generation): reduction (generation): 58% below 2005 level1 69% below 2005 level1 91% below 2005 level1 79% below EPA stand
Slide 23: Focusing on Resource Management
Focusing on Resource Management Electrification: Methane Emissions Reduction: Biodiversity: Provides funding to incentivize EV Replacement of 100% of cast, wrought iron and As part of the Biodiversity strategy to charging and eliminate barriers to EV unprotected steel on our natural gas delivery sup
Slide 24: Social Impact
Social Impact 24
Slide 25: Our Focus on Social Responsibility
Our Focus on Social Responsibility • Supporting our co-workers – Focusing on safety first while creating a more equitable, diverse and inclusive workforce – Offering a variety of programs for individual development of co-workers • Delivering value to our customers – Providing safe and reliable elect
Slide 26: Our Workforce at a Glance
Our Workforce at a Glance Diversity Strengthens Us 9,372 Co-Workers Strong1 Senior Leadership3 Total Workforce 46% bargaining Gender 24% female Bargaining Gender 26% female Unit 54% management Diversity 76% male Diversity 74% male Race/Ethnic Diversity2 83% 11% 2% 2% 1% <1% <1% White Black or Africa
Slide 27: Focused on Safety of Our Co-Workers
Focused on Safety of Our Co-Workers • Safety is a core value at Ameren — one that is never compromised • Among the highest-scoring items on 2023 co-worker engagement survey • Ameren is proud the Recordable Incident Rate and Lost-Time Case Rate declined from 2018-2023 • Co-worker to co-worker (c2c) i
Slide 28: Delivering on Our Mission Through Our Values, Our Culture and Our People
Delivering on Our Mission Through Our Values, Our Culture and Our People • Our values and culture, foundational to how we work and make decisions every day, are built around care for one another and that begins with listening • Ameren’s Listening Strategy is designed to gain real-time feedback allow
Slide 29: Creating a More Diverse, Equitable and Inclusive Workplace and Community
Creating a More Diverse, Equitable and Inclusive Workplace and Community • DE&I Governance at Ameren – Executive DE&I Council, composed of Executive Leadership Team, drives DE&I as a core value throughout the organization – Corporate Diversity Council, comprised of cross-functional co-workers at all
Slide 30: Building Diverse Workforce Pipelines
Building Diverse Workforce Pipelines Early-Career Pipeline Initiatives Purpose: Create a diverse talent pipeline for entry-level hiring needs and critical skill (typically skilled craft and STEM) roles – Ameren’s Collegiate Program participants receive hands-on experience, bolster their knowledge of
Slide 31: Results from Our Company-Wide Workforce Development
Results from Our Company-Wide Workforce Development Co-worker Engagement: ConvERGing Program: Safety Engagement: Mentoring (Learning from Others): Over 73% participation in Over 1,000 co-workers Committed to safety observations Over 2,700 co-workers participate 2023 VPQ engagement survey. participat
Slide 32: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation in MO that available to MO residential benefits diverse Neighborhood Community and small business communities with jobs training, solar
Slide 33: Reducing Energy Burden for Income-Eligible Customers
Reducing Energy Burden for Income-Eligible Customers • Invested over $200 million in income-qualified customer programs in 2023 through energy efficiency and energy assistance • Incentivized over 21,000 smart thermostats, providing customers better control over their energy usage in 2023 • Installed
Slide 34: Supporting Our Communities through Corporate Contributions
Supporting Our Communities through Corporate Contributions Economic Empowerment | Critical Needs | Thriving Communities ECONOMIC CRITICAL THRIVING $12 million1 in donations for 2023 EMPOWERMENT NEEDS COMMUNITY Fueling inclusive Helping underserved, Activating vibrant and economic growth through unde
Slide 35: Significantly Supporting Supplier Diversity in 2023
Significantly Supporting Supplier Diversity in 2023 Ameren continues to demonstrate our commitment to engaging with diverse-owned companies and expanding their equitable access to opportunities. Georgina de Regil Randazzo, the leader of Missouri-based corporate furnishing company, Facilitec, has had
Slide 36: Supporting DE&I in Our Company, Communities, Industry and Country
Supporting DE&I in Our Company, Communities, Industry and Country • Committing to country- and industry-wide pledges – Aligned with the Edison Electric Institute Framework for Advancing Racial and Social Justice, Diversity, Equity, and Inclusion – Shared strategies with DE&I professionals at the Out
Slide 37: Recent Recognitions
Recent Recognitions • 2024 EPRI Technology Transfer Awards – Monarch Butterfly Habitat Model and Landholding Assessment – Spent Fuel Pool Criticality Safety Analysis • 2024 Silver Military Friendly and Military Spouse Friendly Employer • 2024 Business Facilities Top Utilities for Economic Developmen
Slide 38: Governance
Governance 38
Slide 39: Our Focus to Maintain Strong Corporate Governance
Our Focus to Maintain Strong Corporate Governance • Sustainability matters managed at all levels – Management-level accountability through Executive Leadership Team, Sustainability Executive Steering Committee and Sustainability, DE&I and Corporate Philanthropy Department – Overseen directly by Boar
Slide 40: Highly Skilled, Diverse Board of Directors
Highly Skilled, Diverse Board of Directors Cynthia J. Catherine S. Ward H. Noelle K. Ellen M. Rafael Kimberly J. Richard J. Craig S. James C. Steven H. Martin J. Leo S. Brinkley Brune Dickson Eder Fitzsimmons Flores Harris Harshman Ivey Johnson Lipstein Lyons, Jr. Mackay, Jr. 1 Board Tenure and Dive
Slide 41: Board of Directors Composition and Leadership Highlights
Board of Directors Composition and Leadership Highlights • 13 members; all independent except for Chairman, President & CEO – Corporate Governance Guidelines require substantial majority of the board to be independent – Only independent directors serve on standing board committees • BOD is focused o
Slide 42: Board of Directors-Level Governance of Sustainability
Board of Directors-Level Governance of Sustainability Strong oversight of sustainability matters Ameren’s Board of Directors oversees all significant enterprise risks, including those related to sustainability matters. It has specifically delegated oversight of certain sustainability matters to seve
Slide 43: Management-Level Governance of Sustainability
Management-Level Governance of Sustainability Management Accountability Organizational Inputs and Interfaces Leads the company’s approach to managing sustainability matters. Senior executives across all business Sustainability, DE&I Responsibilities include leadership of corporate DE&I strategy, seg
Slide 44: Executive Compensation Program – Ties to Sustainability
Executive Compensation Program – Ties to Sustainability The objective of Ameren's executive compensation program is to provide a competitive total compensation program based on the size-adjusted median compared to similar utility companies, adjusted for individual performance. Ameren’s short- and lo
Slide 45: Political Contributions Accountability and Disclosure
Political Contributions Accountability and Disclosure • 2nd highest score overall (98.6%) and ranked 2nd among utilities in the 2023 CPA-Zicklin Index for Corporate Political Disclosure and Accountability • Board of Directors-approved Political Contributions Policy – Annual contribution limit establ
Slide 46: Cybersecurity Risk Management
Cybersecurity Risk Management Robust enterprise-wide security program focused on safety • Robust governance and oversight of cybersecurity matters – The Cybersecurity and Digital Technology Committee of the Board of Directors oversees cybersecurity and technology risks – Key performance metrics and
Slide 47: Sustainable Growth
Sustainable Growth 47
Slide 48: Our Value Proposition for Customers, Shareholders and the Environment
Our Value Proposition for Customers, Shareholders and the Environment Attractive dividend Strong long-term and long-term dividend growth Attractive total growth outlook outlook return potential • Expect 6% to 8% EPS CAGR 2024-20281,2 • Annualized equivalent dividend rate of • Track record of deliver
Slide 49: Strong Track Record of EPS and Dividend Growth
Strong Track Record of EPS and Dividend Growth Weather-Normalized Core Dividends Paid per Share3 Total Earnings per Diluted Share1 and Payout as a % of WN EPS Shareholder Return $4.50 +112% or $2.80 ~+58% 2013 to 2023 $4.62 180% $4.25 ~7.8% CAGR 2013 to 2023 $4.41 $2.60 $2.68 | 58% , 2013 to 2023 17
Slide 50: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it cleaner, safer, more reliable, resilient and secure – Ameren Missouri Smart Energy Plan filed with the MoPSC supporting infrastructure investment to 2023-2028E Regulated modernize the grid Infrastructure Rate Base3 – Expect
Slide 51: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade Modernizing the grid and investing in cleaner generation Investment Plan 2024-2028 $55B+ ($ billions) $21.9 Strong Pipeline of Regulated Infrastructure Investments $4.1 2024-2033 $1.8 • Modernize electric and gas transmission and
Slide 52: Sustainability Financing Framework and Green Bond Issuances
Sustainability Financing Framework and Green Bond Issuances • On June 2, 2021, Ameren published a Sustainability Financing Framework; one of the first utilities in the nation to do so – Framework supports Ameren’s sustainability goals and target of net-zero carbon emissions by 20451, as well as soci
Slide 53: Robust Customer Growth Opportunities
Robust Customer Growth Opportunities Facilitating Growth in our Region While Delivering Value for All Customers • Robust pipeline of potential customers conducting formal engineering reviews Economic Development Pipeline of location in our territory Represents Thousands of MW of Potential New Demand
Slide 54: Additional Growth Initiatives: Economic Development
Additional Growth Initiatives: Economic Development • Ameren’s role in economic development is to support our state, regional and local community partners to bring new capital investment and job creation to the communities we serve • Ameren Missouri – Our economic development strategies focus on ass
Slide 55: Additional Growth Initiatives: Electrification
Additional Growth Initiatives: Electrification Ameren Illinois • ICC approved Beneficial Electrification Plan in Mar. 2023 – Provides $65 million through 2025 for programs, incentives and rates encouraging electric vehicles (EV) adoption and infrastructure development – Expands existing Electric Veh
Slide 56: Appendix
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Slide 57: Additional Sustainability Resources
Additional Sustainability Resources Available at www.amereninvestors.com (hyperlinked below) • 2023 Integrated Resource Plan • Sustainability Financing Framework • Sustainability Accounting Standards Board (SASB) Report • Sustainability Report • EEI and AGA ESG/Sustainability Template • EEO-1 Report
Slide 58: Company-Wide Governance of Sustainability
Company-Wide Governance of Sustainability Current policies available at www.amereninvestors.com (hyperlinked below) Environmental Policy Human Rights Statement Integrate environmental management and Demonstrates respect for human rights in the sustainability principles into our operations, way we co
Slide 59: Ameren's Estimated Coal-Related Revenues in 2023
Ameren’s Estimated Coal-Related Revenues in 2023 Return on Investment Revenues Cost Recovery3 Revenues $1.97B1 x $1.97B1 x ($98M x $466M + 51.9%2 x 48.1% x 25%) / (1 $171M x $131M + 9.59%2 = 3.93% = - 25%) 17%1 = $265M = $98M $37M $33M $29M $862M $7,500M 14% Return on Interest Tax Expense Property F
Slide 60: GAAP to Core Earnings Per Share Reconciliations
GAAP to Core Earnings Per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GAAP Earnings / Diluted EPS $1.18 $2.40 $2.59 $2.68 $2.14 $3.32 $3.35 $3.50 $3.84 $4.14 $4.38 Exclude results from discontinued operations 0.87 — (0.01) — — — — — — — — Less: In
Slide 61: Weather-Normalized Earnings per Share Reconciliations
Weather-Normalized Earnings per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Core1 Diluted EPS $2.10 $2.40 $2.56 $2.68 $2.83 $3.37 $3.35 $3.50 $3.84 $4.14 $4.38 Ameren Missouri weather impact included in margins 0.03 0.05 (0.04) 0.16 (0.07) 0.43 0.
Slide 62: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AGA – American Gas Association EPA – Environmental Protection Agency MISO – Midcontinent Independent System Operator ALT – Ameren Leadership Team EPRI – Electric Power Research Institute MSCI – formerly Morgan Stanley Capital International ATXI – Ameren Transmissi