Southern Company continues to receive high marks for environmental transparency

Rhea-AI Summary

Southern Company has earned an A- for the third consecutive year in the 2022 CDP Climate Change Disclosure, showcasing leadership in environmental transparency in North America. This score, indicative of best practices in climate strategy, underscores the company's commitment to reducing greenhouse gas emissions, aiming for net zero by 2050. Key highlights include expanded reporting on Scope 3 emissions, third-party assurances on emissions data, and comprehensive risk analyses related to climate impacts. The company emphasizes ongoing stakeholder engagement through transparent disclosure.

Positive

• Achieved an A- score in the 2022 CDP Climate Change Disclosure for the third consecutive year.
• Demonstrated leadership in environmental transparency, relevant to the thermal power generation sector.
• Expanded Scope 3 emissions reporting to include additional categories and contributions.
• Provided third-party assurance for Scope 1 and Scope 2 emissions data.
• Included analysis of physical and transition-related climate risks in planning.

Negative

• None.

Company earns third consecutive score of A- for CDP Climate Change Disclosure

ATLANTA, Dec. 19, 2022 /PRNewswire/ -- For the third consecutive year, Southern Company earned a score of A- for its 2022 CDP Climate Change Disclosure, demonstrating leadership for the North American region and thermal power generation sector. The score is at the Leadership level, recognizing the company demonstrates "best practice in strategy and action" relative to key disclosure frameworks.  

CDP, a global nonprofit, manages an environmental disclosure system for companies and municipalities. Southern Company values the CDP Climate Change Disclosure as one avenue for engaging with stakeholders, providing transparency around the Company's strategy and progress toward its greenhouse gas reduction goal of net zero emissions by 2050. By completing CDP's annual request for climate change disclosure, Southern Company is demonstrating the accountability vital to tracking progress toward a thriving, sustainable future. 

"Southern Company consistently demonstrates its commitment to stakeholder engagement through comprehensive data disclosure, in-depth reports and direct communication through a variety of formats," said Tom Fanning, chairman, president and CEO of Southern Company.  "Our A- score from CDP, particularly considering enhanced disclosure requirements by CDP this year, is indicative of this commitment."

Highlights of Southern Company's 2022 CDP Climate Change Disclosure, which is based on 2021 data, include: 

• Reporting all major sources of greenhouse emissions for Scope 1, Scope 2 and Scope 3 emissions. The Company's Scope 3 emissions reporting was expanded in 2022 to include additional categories and contributions to previously reported categories, such that all relevant Scope 3 emissions are now disclosed.  
• Third-party limited assurance of the 2020 and 2021 Scope 1 and Scope 2 emissions data.   
• Disclosure of revenue share associated with no- and low-carbon generation for electric operations.  
• Description of analysis of physical and transition-related climate risks included in ongoing planning processes as part of Southern Company's net zero transition plan.  
• Response to CDP's new module on biodiversity, reflecting the company's commitment to natural resources stewardship and conservation efforts.   

Please visit the Southern Company's website for additional sustainability data, downloads and reports.  

About Southern Company 
Southern Company (NYSE: SO) is a leading energy provider serving 9 million residential and commercial customers across the Southeast and beyond through its family of companies. Providing clean, safe, reliable and affordable energy with excellent service is our mission. The company has electric operating companies in three states, natural gas distribution companies in four states, a competitive generation company, a leading distributed energy infrastructure company with national capabilities, a fiber optics network, and telecommunications services. Through an industry-leading commitment to innovation, resilience, and sustainability, we are taking action to meet our customers' and communities' needs while advancing our commitment to net zero emissions by 2050. Our uncompromising values ensure we put the needs of those we serve at the center of everything we do and are the key to our sustained success. We are transforming energy into economic, environmental and social progress for tomorrow. Our corporate culture and hiring practices have earned the company national awards and recognition from numerous organizations, including Forbes, Military Times, DiversityInc, Black Enterprise, J.D. Power, Fortune, Human Rights Campaign and more. To learn more, visit www.southerncompany.com.

About CDP  
CDP is a global environmental impact non-profit, providing a platform for companies, cities, states and regions to report information on their climate, deforestation and water security impacts. CDP was founded in 2000 with the ambition of transforming capital markets by making environmental reporting and risk management a new business norm. When CDP launched the concept of environmental disclosure in 2002, it had just 35 investors signing its request for climate information, and 245 companies responding. Today more than 18,700 of the world's largest companies, representing half of global market capitalization, disclose information on climate change, deforestation and water security through CDP. They do so at the request of over 680 financial institutions with over US$130 trillion in assets, and over 280 major purchasers with over US$6.4 trillion in procurement spend.  Visit www.cdp.net to find out more. 

Cautionary Note Regarding Forward-Looking Statements 
Certain information contained in this presentation is forward–looking information based on current expectations and plans that involve risks and uncertainties. Forward–looking information includes, among other things, statements concerning expected achievement of emission reduction goals. Southern Company cautions that there are certain factors that can cause actual results to differ materially from the forward–looking information that has been provided. The reader is cautioned not to put undue reliance on this forward–looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of Southern Company and its subsidiaries; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Southern Company's Annual Report on Form 10–K for the year ended December 31, 2021, Quarterly Reports on Form 10-Q for the quarters ended March 31, 2022, June 30, 2022 and September 30, 2022 and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward–looking information: the impact of recent and future federal and state regulatory changes, including tax, environmental and  other laws and regulations to which Southern Company and its subsidiaries are subject, as well as changes in application of existing laws and regulations; the potential effects of the continued COVID-19 pandemic; the extent and timing of costs and legal requirements related to coal combustion residuals; current and future litigation or regulatory investigations, proceedings, or inquiries, including litigation and other disputes related to the Kemper County energy facility and Plant Vogtle Units 3 and 4; the effects, extent, and timing of the entry of additional competition in the markets in which Southern Company's subsidiaries operate, including from the development and deployment of alternative energy sources; variations in demand for electricity and natural gas; available sources and costs of natural gas and other fuels and commodities; the ability to complete necessary or desirable pipeline expansion or infrastructure projects, limits on pipeline capacity, and operational interruptions to natural gas distribution and transmission activities; transmission constraints; effects of inflation; the ability to control costs and avoid cost and schedule overruns during the development, construction, and operation of facilities or other projects; legal proceedings and regulatory approvals and actions related to construction projects, such as Plant Vogtle Units 3 and 4 and Plant Barry Unit 8, including Public Service Commission approvals and Federal Energy Regulatory Commission and Nuclear Regulatory Commission actions; under certain specified circumstances, a decision by holders of more than 10% of the ownership interests of Plant Vogtle Units 3 and 4 not to proceed with construction, and the ability of other Vogtle owners to tender a portion of their ownership interests to Georgia Power following certain construction cost increases; in the event Georgia Power becomes obligated to provide funding to Municipal Electric Authority of Georgia ("MEAG") with respect to the portion of MEAG's ownership interest in Plant Vogtle Units 3 and 4 involving Jacksonville Electric Authority, any inability of Georgia Power to receive repayment of such funding; the ability to construct facilities in accordance with the requirements of permits and licenses (including satisfaction of NRC requirements), to satisfy any environmental performance standards and the requirements of tax credits and other incentives, and to integrate facilities into the Southern Company system upon completion of construction; advances in technology, including the pace and extent of development of low- to no-carbon energy technologies and negative carbon concepts; performance of counterparties under ongoing renewable energy partnerships and development agreements; state and federal rate regulations and the impact of pending and future rate cases and negotiations, including rate actions relating to return on equity, equity ratios, additional generating capacity and fuel and other cost recovery mechanisms; the ability to successfully operate the electric utilities' generating, transmission, and distribution facilities and Southern Company Gas' natural gas distribution and storage facilities and the successful performance of necessary corporate functions; the inherent risks involved in operating and constructing nuclear generating facilities; the inherent risks involved in transporting and storing natural gas; the performance of projects undertaken by the non-utility businesses and the success of efforts to invest in and develop new opportunities; internal restructuring or other restructuring options that may be pursued; potential business strategies, including acquisitions or dispositions of assets or businesses, which cannot be assured to be completed or beneficial to Southern Company or its subsidiaries; the ability of counterparties of Southern Company and its subsidiaries to make payments as and when due and to perform as required; the ability to obtain new short- and long-term contracts with wholesale customers; the direct or indirect effect on the Southern Company system's business resulting from cyber intrusion or physical attack and the threat of physical attacks; interest rate fluctuations and financial market conditions and the results of financing efforts; access to capital markets and other financing sources; changes in Southern Company's and any of its subsidiaries' credit ratings; changes in the method of determining LIBOR or the replacement of LIBOR with an alternative reference rate; the ability of Southern Company's electric utilities to obtain additional generating capacity (or sell excess generating capacity) at competitive prices; catastrophic events such as fires, earthquakes, explosions, floods, tornadoes, hurricanes and other storms, droughts, pandemic health events, political unrest, wars or other similar occurrences; the direct or indirect effects on the Southern Company system's business resulting from incidents affecting the U.S. electric grid, natural gas pipeline infrastructure, or operation of generating or storage resources; impairments of goodwill or long-lived assets; and the effect of accounting pronouncements issued periodically by standard-setting bodies. Southern Company expressly disclaims any obligation to update any forward–looking information.

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SOURCE Southern Company

FAQ

What score did Southern Company receive in the CDP Climate Change Disclosure for 2022?

Southern Company received an A- score in the 2022 CDP Climate Change Disclosure.

How many years has Southern Company earned an A- score in CDP disclosures?

Southern Company has earned an A- score for three consecutive years.

What is Southern Company's target for greenhouse gas emissions by 2050?

Southern Company aims for net zero emissions by 2050.

What significant updates were made in Southern Company's 2022 CDP Climate Change Disclosure?

The 2022 disclosure included expanded Scope 3 emissions reporting and a detailed analysis of climate risks.

What does the A- score in the CDP Climate Change Disclosure indicate?

An A- score indicates best practices in strategy and action regarding climate change disclosures.