AVANGRID Sets Industry-Leading 2030 Carbon Neutrality Targets for Scopes 1 And 2

Rhea-AI Summary

AVANGRID, Inc. (NYSE: AGR) has announced its enhanced Net Zero Strategy, aiming for carbon neutrality in scopes 1 and 2 by 2030. This solidifies its position as one of the few U.S. energy companies committed to significant carbon reduction targets. Key initiatives include a 190% increase in renewable capacity and $1.8 billion investment through 2025. AVANGRID also aims for 100% renewable energy in corporate buildings and a 35% reduction in emissions intensity by 2025. The company is expanding its gender diversity goals, targeting 50% women in leadership by 2030.

Positive

• Targeting carbon neutrality in scopes 1 and 2 by 2030.
• Plans to increase renewable installed capacity by 190% by 2030.
• Investing $1.8 billion in renewables through 2025.
• Aiming for 100% renewable energy in corporate buildings by 2030.
• Goals for gender diversity in leadership roles.

Negative

• None.

AVANGRID’s Net Zero Strategy reflects strong commitment to carbon neutrality and support for the energy transition

ORANGE, Conn.--(BUSINESS WIRE)-- AVANGRID, Inc. (NYSE: AGR), a leading sustainable energy company and member of the group of companies controlled by Iberdrola, S.A., is furthering its industry-leading Environment, Social and Governance (ESG) commitments by expanding its carbon neutrality targets. The company is now targeting to reach carbon neutrality in scopes 1 and 2 by 2030 and is developing a strategy to address scope 3 emissions. AVANGRID is one of only three U.S. energy company peers to set 2030 carbon neutrality goals and is one of the few major U.S. utilities to align with the country’s target to decarbonize the U.S. power sector by 2035.

AVANGRID’s announcement comes on the heels of Iberdrola reaffirming last week its target to become carbon neutral by 2030 in scopes 1 and 2 and reaching Net Zero in all 3 scopes by 2040. Iberdrola also announced that it has approved near and long-term science-based emissions reduction targets with the Science-Based Targets initiative (SBTi) and SBTi has verified Iberdrola’s net-zero science-based target by 2039. As a member of the Iberdrola Group, AVANGRID’s scopes 1 and 2 carbon neutrality targets are a critical part of Iberdrola’s Climate Action Plan.

“As one of America’s most sustainable energy companies, our commitment to our ESG+F principles serves as the backbone of our business and puts us in the right place to address the need for more clean energy,” said Pedro Azagra, CEO of AVANGRID. “We also benefit from the expertise of the Iberdrola Group, who is a global leader in ESG and whose targets have been verified by SBTi, and we are following in their footsteps. Our sustainability goals have continued to evolve since 2017, when we became the first U.S. utility to commit to carbon-neutral goals and set our target to reach generation carbon neutrality by 2035. We’ve strengthened our emissions goals and social commitments, laid the groundwork to transition our fleet to cleaner energy vehicles, committed to increasing our purchases with diverse suppliers and more. We not only continue to evolve and accelerate our commitments, but also have innovative initiatives underway to meet our goals.”

ESG factors have been an integral part of the Iberdrola strategy for the last two decades, to the extent that it has now become an established leader in ESG+F, supporting environmental, social and governance aspects and financial strength. Likewise, AVANGRID has a forward-looking ESG+F strategy that informs the company’s business decisions, helps further its sustainability commitments, and creates long-term, sustainable value for its shareholders.

AVANGRID’s Net Zero Strategy reflects its strong commitment to carbon neutrality and support for the energy transition. In line with its recent announcement, the company’s immediate focus is on reducing emissions from scopes 1 and 2. Scope 1 emissions include all direct greenhouse emissions from sources that are owned or controlled by AVANGRID, including power generation facilities, offices and other facilities, and fleet vehicles. Scope 2 emissions include indirect greenhouse emissions associated with the generation of purchased energy consumed by the AVANGRID.

To reach carbon neutrality in scopes 1 and 2 by 2030, AVANGRID plans to:

• Increase renewable installed capacity by 190% by 2030 versus 2015, supported by investing $1.8 billion in its renewables business through 2025. In addition, AVANGRID is exploring new technology solutions such as hydrogen and storage (scope 1).
• Decrease greenhouse gas emissions intensity from generation sources by 35% by 2025 and 70% by 2030 versus 2015 (scope 1).
• Green its buildings by committing to 100% renewable energy in its corporate buildings by 2030 (scope 2).
• Convert 100% percent of its light duty vehicles to cleaner energy by 2030 (scope 1).
• Continue to develop a plan for the company’s one thermal unit, its Klamath gas generation facility. As part of this process, AVANGRID is currently exploring technologies and other options to reduce gas generation emissions while using this highly efficient unit for managing the company’s growing renewable fleet (scope 1).
• Continue investing in gas leak prevention with pipeline replacements to reach 100% leak prone pipe replacement (scope 1).

In addition to announcing its industry-leading carbon neutrality targets, AVANGRID also expanded its commitment to gender diversity. In 2021, the company signed on to the Paradigm for Parity, which has a goal of achieving 50% women in senior leadership positions by 2030. AVANGRID has set an additional goal of having 35% women in executive positions by 2025.

“AVANGRID has and continues to demonstrate leadership in all aspects of ESG,” said Laney Brown, Vice President of Sustainability at AVANGRID. “We analyzed a select number of our ESG goals against our peer’s, and the breadth and depth of our ESG commitments in comparison demonstrates our ESG leadership and reflects our unique ESG position. We are demonstrating that clean energy is not just a beneficial outcome for the environment and society, but an opportunity to help people and communities participate in the clean energy transition through new jobs, and for leading companies like ours to make critical and strategic investments.”

AVANGRID has earned numerous recognitions for its ESG efforts, including being named among the world’s most sustainable companies by S&P Global for two consecutive years, being recognized by JUST Capital in 2021 and 2022 as one of the JUST 100 companies, being named among the World’s Most Ethical Companies for four consecutive years and being included in the FTSE4Good Index Series for five consecutive years.

About AVANGRID: AVANGRID, Inc. (NYSE: AGR) aspires to be the leading sustainable energy company in the United States. Headquartered in Orange, CT with approximately $40 billion in assets and operations in 24 U.S. states, AVANGRID has two primary lines of business: Avangrid Networks and Avangrid Renewables. Avangrid Networks owns and operates eight electric and natural gas utilities, serving more than 3.3 million customers in New York and New England. Avangrid Renewables owns and operates a portfolio of renewable energy generation facilities across the United States. AVANGRID employs more than 7,000 people and has been recognized by JUST Capital in 2021 and 2022 as one of the JUST 100 companies – a ranking of America’s best corporate citizens. In 2022, AVANGRID ranked second within the utility sector for its commitment to the environment and the communities it serves. The company supports the U.N.’s Sustainable Development Goals and was named among the World’s Most Ethical Companies in 2022 for the fourth consecutive year by the Ethisphere Institute. AVANGRID is a member of the group of companies controlled by Iberdrola, S.A. For more information, visit www.avangrid.com.

About Iberdrola: Iberdrola is one of the world's biggest energy companies and a leader in renewables, spearheading the energy transition to a low carbon economy. The group supplies energy to almost 100 million people in dozens of countries. With a focus on renewable energy, smart networks and smart solutions for customers, Iberdrola’s main markets include Europe (Spain, the United Kingdom, Portugal, France, Germany, Italy and Greece), the United States, Brazil, Mexico and Australia. The company is also present in growth markets such as Japan, Taiwan, Ireland, Sweden and Poland, among others.
With a workforce of nearly 40,000 and assets in excess of €141.7 billion, across the world, Iberdrola helps to support 400,000 jobs across its supply chain, with annual procurement of €12.2 billion. A benchmark in the fight against climate change, Iberdrola has invested more than €130 billion over the past two decades to help build a sustainable energy model, based on sound environmental, social and governance (ESG) principles.

Forward Looking Statements
Certain statements in this release may relate to our future business and financial performance and future events or developments involving us and our subsidiaries that are not purely historical and may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of forward-looking terms such as “may,” “will,” “should,” “would,” “could,” “can,” “expect(s),” “believe(s),” “anticipate(s),” “intend(s),” “plan(s),” “estimate(s),” “project(s),” “assume(s),” “guide(s),” “target(s),” “forecast(s),” “are (is) confident that” and “seek(s)” or the negative of such terms or other variations on such terms or comparable terminology. Such forward-looking statements include, but are not limited to, statements about our plans, objectives and intentions, outlooks or expectations for earnings, revenues, expenses or other future financial or business performance, strategies or expectations, or the impact of legal or regulatory matters on business, results of operations or financial condition of the business and other statements that are not historical facts. Such statements are based upon the current reasonable beliefs, expectations, and assumptions of our management and are subject to significant risks and uncertainties that could cause actual outcomes and results to differ materially. Important factors are discussed and should be reviewed in our Form 10-K and other subsequent filings with the SEC. Specifically, forward-looking statements include, without limitation:

• the future financial performance, anticipated liquidity and capital expenditures;
• actions or inactions of local, state or federal regulatory agencies;
• the ability to recruit and retain a highly qualified and diverse workforce in the competitive labor market;
• changes in amount, timing or ability to complete capital projects;
• adverse developments in general market, business, economic, labor, regulatory and political conditions including, without limitation, the impacts of inflation, deflation, supply-chain interruptions and changing prices and labor costs, including the Department of Commerce's anti-circumvention petition that could adversely impact renewable solar energy projects;
• the impacts of climate change, fluctuations in weather patterns and extreme weather events;
• technological developments;
• the impact of extraordinary external events, such as any cyber breaches or other incidents, grid disturbances, acts of war or terrorism, civil or social unrest, natural disasters, pandemic health events or other similar occurrences, including the ongoing geopolitical conflict with Russia and Ukraine;
• the impact of any change to applicable laws and regulations, including those subject to referendums and legal challenges, affecting the ownership and operations of electric and gas utilities and renewable energy generation facilities, respectively, including, without limitation, those relating to the environment and climate change, taxes, price controls, regulatory approval and permitting;
• our ability to close the proposed Merger, the anticipated timing and terms of the proposed Merger, our ability to realize the anticipated benefits of the proposed Merger and our ability to manage the risks of the proposed Merger;
• the COVID-19 pandemic, its impact on business and economic conditions, including but not limited to impacts from consumer payment behavior and supply chain delays, and the pace of recovery from the pandemic;
• the implementation of changes in accounting standards;
• adverse publicity or other reputational harm; and
• other presently unknown unforeseen factors.

Should one or more of these risks or uncertainties materialize, or should any of the underlying assumptions prove incorrect, actual results may vary in material respects from those expressed or implied by these forward-looking statements. You should not place undue reliance on these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements to reflect events or circumstances after the date of this report, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Other risk factors are detailed from time to time in our reports filed with the SEC, and we encourage you to consult such disclosures.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221116005183/en/

Sarah Warren

sarah.warren@avangrid.com

585-794-9253

Source: AVANGRID, Inc.

FAQ

What are AVANGRID's carbon neutrality targets?

AVANGRID aims to achieve carbon neutrality in scopes 1 and 2 by 2030.

How much is AVANGRID investing in renewable energy?

AVANGRID is investing $1.8 billion in its renewables business through 2025.

What is AVANGRID's goal for gender diversity in leadership?

AVANGRID targets 50% women in senior leadership positions by 2030.

What is AVANGRID's plan for reducing emissions intensity?

AVANGRID plans to decrease greenhouse gas emissions intensity by 35% by 2025.

When did AVANGRID become the first U.S. utility to commit to carbon-neutral goals?

AVANGRID became the first U.S. utility to commit to carbon-neutral goals in 2017.