AES Announces Carbon Intensity Reduction of 70 Percent by 2030; Publishes Climate Scenario Report
November 13 2018 - 6:00AM
Business Wire
First U.S.-based energy company to issue report adopting the
Task Force on Climate-related Financial Disclosures’ (TCFD)
recommendations
The AES Corporation (NYSE:AES) today announced a goal to reduce
its carbon intensity by 70 percent by 2030 as a result of its
stated renewable growth plans. The new goal, measured in tons of
carbon dioxide per megawatt-hour from a 2016 baseline is an
improvement on its prior goal of a 50 percent reduction over the
same time period. The Company also published the AES Climate
Scenario Report, which includes an impact analysis of a 2° Celsius
scenario on the Company’s strategy and business, fulfilling its
April 2018 commitment to adopt the recommendations of the TCFD.
AES is the first publicly-traded owner of utilities and power
companies based in the U.S. to disclose its portfolio’s resilience
consistent with the TCFD recommendations and third-party scenarios.
The report shows AES’ portfolio is resilient against the assessed
climate scenarios and demonstrates significant upside for the
Company in a lower carbon future.
“We are pleased to be the first publicly-traded U.S.-based
energy company to issue a report adopting the TCFD
recommendations,” said Andrés Gluski, AES President and Chief
Executive Officer. “We are even more pleased to see that the
results show our actions make us a more resilient company across
various climate scenarios. Working with our customers, we are
helping the world transition to a lower carbon energy future by
accelerating the acceptance and use of energy storage, energy
management and renewables, and extending the use of natural gas to
provide a cleaner alternative to other fossil fuels. As a result,
we believe AES is climate transition-ready.”
AES’ clean energy growth platforms of renewable energy, energy
storage, LNG and smart, efficient grids position the Company for
continued growth across multiple scenarios modeled in the Report.
Through 2020, AES expects to add two to three gigawatts of new
capacity in renewables annually. These growth expectations are
bolstered by AES’ recently introduced green blend and extend
offering, which systematically replaces coal with lower cost
renewables over time. The win-win offering accelerates access to
low-cost solar and wind for existing customers, while maintaining
the reliability offered by the thermal assets.
AES used TCFD recommendations for multiple scenarios to conduct
its analysis, incorporating third-party inputs from the
International Energy Agency (IEA) and the Intergovernmental Panel
on Climate Change (IPCC), including the 1.5-2° Celsius scenario
outlined in the Paris Agreement. The Company is among the first to
include these widely-accepted inputs in its analysis, which makes
it easier for investors to evaluate and compare companies.
The resulting analysis highlighted the resiliency of AES’
strategy across all assessed scenarios based on the actions the
Company has taken to date and continues to take to shift its
portfolio to long-term contracts and clean energy solutions.
About AES
The AES Corporation (NYSE: AES) is a Fortune 500 global power
company. We provide affordable, sustainable energy to 15 countries
through our diverse portfolio of distribution businesses as well as
thermal and renewable generation facilities. Our workforce is
committed to operational excellence and meeting the world’s
changing power needs. Our 2017 revenues were $11 billion, and we
own and manage $33 billion in total assets. To learn more, please
visit www.aes.com. Follow AES on Twitter @TheAESCorp.
AES Safe Harbor Disclosure
This news release contains forward-looking statements within the
meaning of the Securities Act of 1933 and of the Securities
Exchange Act of 1934. Such forward-looking statements include, but
are not limited to, those related to future earnings, growth and
financial and operating performance. Forward-looking statements are
not intended to be a guarantee of future results, but instead
constitute AES’ current expectations based on reasonable
assumptions. Forecasted financial information is based on certain
material assumptions. These assumptions include, but are not
limited to, our accurate projections of future interest rates,
commodity price and foreign currency pricing, continued normal
levels of operating performance and electricity volume at our
distribution companies and operational performance at our
generation businesses consistent with historical levels, as well as
achievements of planned productivity improvements and incremental
growth investments at normalized investment levels and rates of
return consistent with prior experience.
Actual results could differ materially from those projected in
our forward-looking statements due to risks, uncertainties and
other factors. Important factors that could affect actual results
are discussed in AES’ filings with the Securities and Exchange
Commission (the “SEC”), including, but not limited to, the risks
discussed under Item 1A “Risk Factors” and Item 7: Management’s
Discussion & Analysis in AES’ 2017 Annual Report on Form 10-K
and in subsequent reports filed with the SEC. Readers are
encouraged to read AES’ filings to learn more about the risk
factors associated with AES’ business. AES undertakes no obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
Any Stockholder who desires a copy of the Company’s 2017 Annual
Report on Form 10-K dated on or about February 26, 2018 with the
SEC may obtain a copy (excluding Exhibits) without charge by
addressing a request to the Office of the Corporate Secretary, The
AES Corporation, 4300 Wilson Boulevard, Arlington, Virginia 22203.
Exhibits also may be requested, but a charge equal to the
reproduction cost thereof will be made. A copy of the Form 10-K may
be obtained by visiting the Company’s website at www.aes.com.
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The AES CorporationInvestor Contact:Ahmed Pasha,
703-682-6451orMedia Contact:Amy Ackerman, 703-682-6399
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