Better Health for All
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AEP has a history of significant negative health externalities, including a federal lawsuit in 2005 for over 2,000 Clean Air Act violations.
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However, the company has made substantial mitigation efforts, achieving a 64-66% reduction in Scope 1 greenhouse gas emissions since 2005
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and 95-98% reductions in SO2, NOx, and Mercury emissions between 1990-2022.
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AEP has retired or sold nearly 13,500 megawatts of coal-fueled generation
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and plans further reductions, aiming for an 80% reduction in Scope 1 GHG emissions by 2030
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and net-zero by 2045.
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Regarding health equity programs, AEP and its Foundation provided $35.1 million in grants to nonprofit organizations in 2021, some targeting public health and food insecurity.
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In 2024, an additional $6.2 million in grants were awarded to over 300 nonprofit partners addressing basic needs like hunger.
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The AEP Foundation also awarded a $10,000 grant to Baptist Health Foundation for community outreach, health education, and home monitoring supplies in specific counties.
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AEP employees dedicated over 700 hours to sorting food and stocking shelves at the Mid-Ohio Food Collective in 2024.
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These grants represent a minimal percentage of AEP's $16,792 million revenue.
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Fair Money & Economic Opportunity
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American Electric Power (AEP) is an electric utility and does not offer consumer lending, deposit services, or other financial products. Therefore, all KPIs related to financial services, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility, fair lending compliance, wealth building outcomes, profit reinvestment in community finance, financial literacy initiatives, debt burden ratio, geographic inclusion for financial services, and product simplicity for financial products, are not applicable. In 2023, AEP's economic development initiatives generated over $35 billion in investment and more than 10,400 new jobs.
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The company also provided a $200,000 grant to Zora's House and invested over $2 million in education.
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AEP introduced a Sustainable Finance Framework to support projects like expanding broadband to underserved areas and empowering minority-owned businesses.
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However, a lawsuit claims AEP marketed 'valueless electrical line service plans' to financially vulnerable West Virginians.
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Additionally, the SEC charged AEP with fraudulent disclosures related to a non-profit, resulting in a $19 million penalty.
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Fair Pay & Worker Respect
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American Electric Power (AEP) reported a Total Employee Recordable Incident Rate (TRIR) of 0.913 in 2024
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, with zero employee fatalities in the same year
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. The company's CEO-to-median employee pay ratio was 105:1 for the fiscal year ending 2024
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. In 2024, 25% of AEP's total employees were represented by collective bargaining agreements
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. The combined voluntary and involuntary employee turnover rate was 15% in 2024
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. AEP conducts annual employee voice surveys
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and pay equity studies
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to identify and address pay variances for female and minority employees. The company was recognized as one of America’s Best Employers for Diversity in 2024
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and achieved a maximum score in employee wellness and training and development on the JUST Jobs Scorecard
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. In 2024, AEP invested over $2.3 million in employee education
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, supporting more than 570 employees through its educational assistance program
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Fair Trade & Ethical Sourcing
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In 2024, AEP directed 12% of its total managed spend to diverse suppliers.
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This follows 13% in 2023
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, which amounted to over $1 billion in procurement spend with diverse suppliers
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out of a total corporate spend of $7.9 billion on goods and services.
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AEP's Procurement Policy requires soliciting qualified diverse suppliers for acquisitions above a minimum competitive bidding threshold
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, and the company aims to achieve 15% diverse spend by 2025.
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Honest & Fair Business
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AEP was implicated in a scheme involving secret contributions to support Ohio House Bill 6, with court records indicating a donation of at least $500,000 to a group associated with the bill's passage
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. A shareholder lawsuit further alleged that the company engaged in bribery by funneling $900,000 through a nonprofit for the same bill
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. These incidents suggest potential lapses in corporate ethics and anti-corruption measures, including a possible violation of internal policies regarding political contributions
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Kind to Animals
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AEP, as an electric utility, does not engage in activities such as animal testing, animal agriculture, or the sourcing of animal-derived products, making several animal welfare KPIs not applicable to its operations. For wildlife conservation, AEP demonstrates significant impact. The company has set aside nearly 100,000 acres for corporate stewardship.
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, including 4,113 acres added to the Catahoula National Wildlife Refuge in 2019
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and 60,000 acres transferred to the Ohio Department of Natural Resources.
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AEP has planted approximately 63 million trees
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and enhanced over 6,300 acres of company-managed reservoirs.
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It implements Habitat Conservation Plans (HCPs) and Incidental Take Permits (ITPs) for over 10 endangered or threatened species
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, including the American burying beetle
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and multiple bat species.
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AEP's Flint Creek Power Plant holds Wildlife Habitat Council Conservation Certification (Certified Silver)
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and is designated an Important Bird Area
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, with over 180 bird species identified.
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The company received the Pollinator Electric Power Award in 2020
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for its pollinator conservation efforts, including using native seed mixes.
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AEP supports the Lesser Prairie-Chicken Range-wide Conservation Plan with a $21 million contribution.
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In public policy engagement, AEP collaborates with regulators to ensure programs protect wildlife and habitats.
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It submits comments to the U.S. Fish and Wildlife Service on species listings
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, develops HCPs for endangered species
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, and supports multi-company conservation plans.
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No War, No Weapons
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AEP received a $12.9 million contract from the U.S. Army Corps of Engineers for power infrastructure upgrades, set for completion by April 2024.
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The company was also issued a notice of intent for a sole-source contract to construct power and communication lines for government facilities.
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AEP lobbied on the FY26 National Defense Authorization Act and Homeland Security issues, including the Department of Defense.
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Furthermore, AEP partnered with the U.S. Army's PaYS program in 2017
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and the Troops to Energy Jobs pilot program in 2011
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to recruit veterans, and has been recognized as a military-friendly employer for multiple years.
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Planet-Friendly Business
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AEP has set a goal to achieve net-zero greenhouse gas emissions by 2045
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. The company has already reduced its Scope 1 emissions by 66% since 2005
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and has retired nearly 13,500 MW of coal-fueled generation in the last decade
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. As of September 30, 2024, AEP received regulatory approval for a $6 billion investment to acquire 2,505 MW of owned renewable generation facilities
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. The company plans to invest $9.9 billion in renewable energy expansion between 2025 and 2029
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. Overall, AEP plans to invest $40 billion from 2023 through 2027 in renewable energy and grid modernization
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, with $26 billion earmarked for transmission and distribution operations
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and $9 billion for regulated renewable generation
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. In February 2023, AEP sold 1,365 MW of its unregulated wind and solar projects for $1.5 billion
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to focus on regulated renewable growth
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Respect for Cultures & Communities
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AEP faced a lawsuit by Native American tribes regarding the SunZia transmission project, which was revived by the court.
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The tribes alleged a failure to properly consult them about the historical significance of Arizona's San Pedro Valley.
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This indicates a failure in Free, Prior, and Informed Consent (FPIC) processes and constitutes an incident disrupting a cultural or heritage site, suggesting reactive responses to cultural incidents. While AEP has a protocol to consider cultural heritage in Environmental and Social Impact Assessments (ESIAs) and requires specialist assessments if Indigenous Peoples are present, the lawsuit implies inconsistent implementation.
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On the positive side, AEP directs 52% of its procurement spending to locally based suppliers.
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The company also demonstrates language inclusivity by communicating training in workers' languages and disclosing project information in English and other relevant languages.
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Additionally, AEP has 14 formal partnerships with local community groups and universities, including Texas A&M International University
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and several Historically Black Colleges and Universities.
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Safe & Smart Tech
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AEP demonstrates a strong commitment to safe and smart technology. Its 2024 Annual Report noted no material impact on business from phishing or unauthorized access incidents, indicating no significant data breaches or unauthorized data use incidents.
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The company requires all employees and contractors to complete annual Security Awareness Training
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and NERC CIP Cyber Security Training.
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An ongoing Phishing Awareness Program includes regular tests for all staff, tracking failure rates, and providing escalating training for those who fail.
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AEP's December 2025 privacy notice provides comprehensive user data control, including rights to access, opt-out of sale/sharing, correct, delete, and data portability, exercisable via multiple channels including a global privacy control signal.
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AEP manages vulnerabilities through its comprehensive VulNEXT program
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and requires contractors to remediate critical vulnerabilities within 7 days.
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The company maintains exemplary regulatory compliance, successfully passing five external OFCCP audits with zero violations in 2022
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and undergoing regular NERC CIP compliance audits.
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Zero Waste & Sustainable Products
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AEP has faced significant waste disposal violations, including an analysis indicating that its bottom ash pond is causing lithium levels in groundwater to rise above EPA standards.
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Additionally, in 2023, there were five transmission and distribution equipment oil spills containing PCBs above regulated levels.
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This reflects poor hazardous waste management. Despite these issues, the company has several waste reduction initiatives. In 2023, AEP beneficially reused 45% of its 2.28 million U.S. Tons of Coal Combustion Residuals (CCRs), avoiding over $17 million in disposal costs.
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Other recycling efforts in 2023 included 53.4 million lbs of scrap metal, 1.16 million gallons of used oil, and approximately 250,000 lbs of electronic equipment.
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Since its launch in 2009, AEP Ohio's appliance recycling program has recycled 72,000 refrigerators and freezers, reclaiming 95% of materials for reuse.
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