In 2021, Essential set a company-wide greenhouse gas (GHG) emissions reduction commitment to guide our efforts in mitigating the impacts of climate change. By 2035, the company will reduce Scope 1 and Scope 2 GHG emissions by 60% from a 2019 baseline. Through 2023, Essential has already achieved a 25% reduction, primarily through replacement of leak-prone gas main and increasing consumption of renewable electricity. Essential’s commitment is both ambitious, with an uncommonly recent baseline year, and realistic, as it is built upon planned and tangible initiatives that reflect present-day technology and capabilities.
In 2021, Essential set an employee diversity commitment with the recognition that a utility’s workforce ought to reflect the demographics of the community it serves. A company-wide goal of 17% employees of color was announced following a study of each community served in the Essential operating footprint. Through June of 2024, Essential has reached 17.6% employees of color and achieved its goal. It is important to note that, due to normal changes in workforce staffing, this figure may slightly shift in either direction, particularly in the near term. However, Essential remains committed to building an equitable and inclusive culture where all can thrive.
In 2021, Essential set a supplier diversity commitment to enrich our local economy, increase sourcing options, foster collaboration and innovation, and partner with businesses that are reflective of the communities it serves. A company-wide goal was set to increase diverse supplier spend to 15% of controllable spend. Certified suppliers with diverse ownership meeting Essential’s program guidelines are qualified as contributing towards diverse spend. Through June of 2024, Essential has reached over 17% supplier diversity and achieved its goal. The company looks to continue expanding opportunities for partnerships with businesses reflective of the communities it serves.
This 2023 ESG Reporting Update provides our continued progress towards our ESG programs and strategy and covers metrics for the 2023 fiscal year. For more information about Essential ESG practices and initiatives, please see our 2022 ESG Report.
Measuring Progress Towards Our Targets 2023 SASB/ESG Metrics Index 2023 TCFD REPORT 2024 CDP Response 2023 AGA Sustainability Template