WEC Energy Group's Corporate Responsibility Report highlights sustainable progress for an enduring enterprise

Rhea-AI Summary

WEC Energy Group (NYSE: WEC) has released its 2023 Corporate Responsibility Report, highlighting progress in environmental, social, and governance (ESG) performance. Key achievements include:

- 54% reduction in carbon emissions from generation below 2005 levels by end of 2023
- Targeting 60% reduction by 2025 and 80% reduction by 2030
- Plan to eliminate coal as an energy source by 2032
- Aim for carbon-neutral electric generation by 2050
- Goal to achieve net-zero methane emissions in natural gas distribution by 2030

The company's $23.7 billion capital plan includes $7 billion for renewable energy capacity, aiming to quadruple carbon-free generation. WEC Energy Group received awards for its hydrogen pilot project and veteran support, spent $333 million with diverse suppliers, and provided $20.7 million in charitable contributions in 2023.

Positive

• 54% reduction in carbon emissions from generation below 2005 levels by end of 2023
• Targeting 60% reduction in carbon emissions by 2025 and 80% by 2030
• Plan to eliminate coal as an energy source by 2032
• $23.7 billion capital plan includes $7 billion for renewable energy capacity
• Received awards for hydrogen pilot project and veteran support
• Spent $333 million with diverse suppliers in 2023
• Provided $20.7 million in charitable contributions in 2023

Negative

• None.

Insights

Financial Analyst

WEC Energy Group's 2023 Corporate Responsibility Report showcases solid progress towards its ESG goals, particularly in carbon and methane emission reduction. The company's $23.7 billion capital plan, including $7 billion for renewable energy capacity, signals a strong commitment to sustainability. This aligns with industry trends and may positively impact long-term investor sentiment.

However, the report lacks specific financial metrics, making it challenging to assess immediate stock implications. The planned coal exit by 2032 and ambitious emission reduction targets could potentially impact short-term profitability, but may enhance long-term value proposition. Investors should monitor how these initiatives affect the company's financial performance and regulatory relationships in the coming years.

Environmental Policy Expert

WEC Energy Group's accelerated timeline for coal exit by 2032 and aggressive emission reduction goals are commendable. The 54% reduction in carbon emissions from 2005 levels demonstrates tangible progress. The company's targets of 60% reduction by 2025 and 80% by 2030 are ambitious yet achievable given their current trajectory.

The focus on emerging technologies like renewable natural gas, hydrogen power and long-duration battery storage shows foresight. However, the success of these initiatives will depend on technological advancements and regulatory support. Investors should pay attention to the company's ability to balance reliability and affordability while transitioning to cleaner energy sources.

Corporate Governance Analyst

WEC Energy Group's comprehensive ESG reporting demonstrates strong corporate governance and transparency. The company's inclusion in the S&P's High Yield Dividend Aristocrats Index suggests consistent financial performance and shareholder returns. Their commitment to diversity, evidenced by $333 million spent with diverse suppliers, aligns with growing investor focus on social responsibility.

The $20.7 million in charitable contributions and recognition for veteran support enhance the company's social license to operate. However, investors should monitor how these initiatives impact operational efficiency and profitability. The report's emphasis on talent pipeline development through partnerships is a positive sign for long-term human capital management, important in a rapidly evolving energy sector.

MILWAUKEE, Aug. 12, 2024 /PRNewswire/ -- WEC Energy Group (NYSE: WEC) today released its 2023 Corporate Responsibility Report. The report provides a comprehensive overview of the company's environmental, social and governance (ESG) performance. The report outlines the progress made by WEC Energy Group and its family of companies on major projects and the company's mission to deliver affordable, reliable and clean energy across the Midwest.

The report also examines the company's climate strategy and the research and development of emerging technologies such as renewable natural gas, hydrogen power and long-duration battery storage.

"We're pleased to report that we continued to make solid progress on our industry-leading targets for reducing carbon and methane emissions. We recently retired additional coal generation, and moved up our timeline for a complete exit from coal — now planned by the end of 2032 — while adding renewable power and efficient natural gas to reliably serve our customers," said Scott Lauber, president and CEO. "We have served the people of the Midwest for more than a century. The future is bright, and we are dedicated to powering our communities now and for many years to come."

Report highlights

The report highlights how WEC Energy Group's investments in sustainable technology — including zero-carbon energy and renewable natural gas — are helping the company meet its aggressive carbon and methane reduction goals.

At the end of 2023, the company reduced carbon emissions from generation 54 percent below 2005 levels. The company is targeting a 60 percent reduction in carbon emissions from electric generation by the end of 2025 and an 80 percent reduction by the end of 2030, both below 2005 levels. The company is also planning to eliminate coal as an energy source by the end of 2032 and have a carbon-neutral electric generation fleet by 2050.

WEC Energy Group also has a goal to achieve net-zero methane emissions across its natural gas distribution operations by the end of 2030.

The report details the company's $23.7 billion capital plan to invest in efficiency, sustainability and growth. The five-year capital plan includes $7 billion to build and own approximately 3,800 megawatts of additional renewable energy capacity for the company's regulated utilities — more than quadrupling its carbon-free generation.

Additional highlights in the report:

• Received a 2023 EPRI Technology Transfer Award and named the 2023 Top Hydrogen Plan Award winner by POWER magazine's selection committee for the company's successful pilot project to test hydrogen as a fuel source for power generation.
• Received the Wisconsin Department of Workforce Development's Vets Ready Award for outstanding support of military veterans. This is the fourth consecutive year the company has been honored with this award.
• Spent more than $333 million in 2023 with diverse suppliers.
• Provided $20.7 million in charitable grants and contributions to nonprofit organizations, with a focus on the well-being of the communities it serves and the preservation of the natural world.
• Added to S&P's High Yield Dividend Aristocrats Index.
• Strengthened the company's talent pipeline through innovative programs and partnerships, including with Milwaukee Public Schools and the Chicago Urban League.

The 2023 Corporate Responsibility Report and additional information on WEC Energy Group's ESG efforts can be found online at www.wecenergygroup.com/csr/.

WEC Energy Group (NYSE: WEC), based in Milwaukee, is one of the nation's premier energy companies, serving 4.7 million customers in Wisconsin, Illinois, Michigan and Minnesota. 

The company's principal utilities are We Energies, Wisconsin Public Service, Peoples Gas, North Shore Gas, Michigan Gas Utilities, Minnesota Energy Resources and Upper Michigan Energy Resources. Another major subsidiary, We Power, designs, builds and owns electric generating plants. In addition, WEC Infrastructure LLC owns a growing fleet of renewable generation facilities in states ranging from South Dakota to Texas.

WEC Energy Group (wecenergygroup.com) is a Fortune 500 company and a component of the S&P 500. The company has approximately 35,000 stockholders of record, 7,000 employees and more than $44 billion of assets.

Forward-looking statements

Certain statements contained in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based upon management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in the statements. Readers are cautioned not to place undue reliance on these statements. Forward-looking statements include, among other things, statements concerning management's expectations and projections regarding capital plans and emission reduction goals. In some cases, forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as "anticipates," "believes," "estimates," "expects," "forecasts," "intends," "may," "objectives," "plans," "possible," "potential," "projects," "should," "targets," "will" or similar terms or variations of these terms. 

Factors that could cause actual results to differ materially from those contemplated in any forward- looking statements include, but are not limited to: general economic conditions, including business and competitive conditions in the company's service territories; timing, resolution and impact of rate cases and other regulatory decisions, including rider reconciliations; the company's ability to continue to successfully integrate the operations of its subsidiaries; availability of the company's generating facilities and/or distribution systems; unanticipated changes in fuel and purchased power costs; key personnel changes; unusual, varying or severe weather conditions; continued industry restructuring and consolidation; continued advances in, and adoption of, new technologies that produce power or reduce power consumption; energy and environmental conservation efforts; electrification initiatives, mandates and other efforts to reduce the use of natural gas; the company's ability to successfully acquire and/or dispose of assets and projects and to execute on its capital plan; terrorist, physical or cyber-security threats or attacks and data security breaches; construction risks; labor disruptions; equity and bond market fluctuations; changes in the company's and its subsidiaries' ability to access the capital markets; changes in tax legislation or our ability to use certain tax benefits and carryforwards; federal, state, and local legislative and regulatory changes, including changes in rate-setting policies or procedures and environmental standards, the enforcement of these laws and regulations or permit conditions and changes in the interpretation of regulations by regulatory agencies; supply chain disruptions; inflation; political or geopolitical developments, including impacts on the global economy, supply chain and fuel prices, generally, from ongoing, escalating, or expanding regional conflicts; the impact from any health crises, including epidemics and pandemics; current and future litigation and regulatory investigations, proceedings or inquiries; changes in accounting standards; the financial performance of American Transmission Company as well as projects in which the company's energy infrastructure business invests; the ability of the company to obtain additional generating capacity at competitive prices; goodwill and its possible impairment; and other factors described under the heading "Factors Affecting Results, Liquidity and Capital Resources" in Management's Discussion and Analysis of Financial Condition and Results of Operations and under the headings "Cautionary Statement Regarding Forward-Looking Information" and "Risk Factors" contained in the company's Form 10-K for the year ended December 31, 2023, and in subsequent reports filed with the Securities and Exchange Commission. Except as may be required by law, the company expressly disclaims any obligation to publicly update or revise any forward-looking information.

 

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SOURCE WEC Energy Group

FAQ

What are WEC Energy Group's carbon emission reduction targets for 2025 and 2030?

WEC Energy Group (NYSE: WEC) is targeting a 60% reduction in carbon emissions from electric generation by the end of 2025 and an 80% reduction by the end of 2030, both below 2005 levels.

When does WEC Energy Group plan to eliminate coal as an energy source?

WEC Energy Group (NYSE: WEC) plans to eliminate coal as an energy source by the end of 2032.

How much is WEC Energy Group investing in renewable energy capacity?

WEC Energy Group (NYSE: WEC) is investing $7 billion to build and own approximately 3,800 megawatts of additional renewable energy capacity for its regulated utilities, as part of its $23.7 billion capital plan.

What is WEC Energy Group's goal for methane emissions in its natural gas distribution operations?

WEC Energy Group (NYSE: WEC) aims to achieve net-zero methane emissions across its natural gas distribution operations by the end of 2030.