From:                              Suggett, Gaye L  Sent:                               Monday, March 04, 2019 11:14 AM To:                                   Coleman, Maida; Ketchum, Charlene Cc:                                   Hogue, Donna Subject:                          ESG Attachments:                 Richard McMahon ‐ ESG presentation.pdf   Happy Monday Commissioner Coleman and Charlene,   I was telling Michael about your great panel on ESG at NARUC, and he thought you might be interested in seeing the attached presentation.  This presentation was given to Ameren's Board of Directors by Richard McMahon from EEI at the February meeting. It is all public information.   How did CCIF go last week? I heard there was some great discussion.  I guess New Orleans is later this month. Will you attend that one as well?   Thanks much!   Gaye Suggett, Manager Regulatory Affairs Ameren Missouri 573‐681‐7202 573‐690‐0338   This communication and any attachments may be privileged and/or confidential and protected from disclosure, and are otherwise the exclusive property of Ameren Corporation and its affiliates (Ameren) or the intended recipient. If you are not the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. Note that any views or opinions presented in this message do not necessarily represent those of Ameren. All e-mails are subject to Ameren policies. If you have received this in error, please notify the sender immediately by replying to the message and deleting the material from any computer. Sunshine #882 - Tait - 03-28-2019 - 000179 Director Development Session - 217MB - Richard McMahon ESG Deck - 2l7l19 Edison Electric 1 TIT ESG/Sustainability Ameren Board of Directors Meeting Thursday, February 7, 2019 Richard McMahon, Senior Vice President, EEI 1 Sunshine #882 Tait 03?28?2019 000180 Director Development Session - 2i7i19 - Richard McMahon ESG Deck - 2i7/19 ESG Discussion Topics Why Does ESG Matter? Key ESG issues Facing the industry Actions Taken by the industry EEI 2 2 Sunshine #882 Tait 03?28?2019 000181 Director Development Session - 2l7/19 - Richard McMahon ESG Deck - 2/7l19 ESG is Relevant to Our Investors Customers - estimates that a $30 trillion wealth transfer from Baby Boomers to Generation and Millennials will occur over the next several decades. 83% of millennials believe a successful business should be measured in more than just financial performance. - 86% of millennials are interested in socially responsible investments (SRIs), and 90% desire sustainable investing options in their 401 plans. - Investors are focused on ESG risks and have a lack confidence in ESG reporting from corporates. - A 2016 survey shows that 63% of equity investors are interested in ESG screens to reduce portfolio risk. Survey results also indicate that only 29% of investors are confident in the ESG information they receive from companies. Sources: Deloitte, Morgan Stanley, Institute for Sustainable Investing, Sustainable Signals. 2016 investor survey ESG Pulse. I 3 3 Sunshine #882 - Tait - 03-28-2019 - 000182 Director Development Session - 2/7/19 Richard McMahon ESG Deck 2/7f19 Why Does ESG Matter to Investors? - ESG factors can influence long-term strategic value - Good governance practices are systemically important - Investors are increasingly interested in the risks and opportunities associated with climate change EEI 4 4 Sunshine #882 - Tait - 03-28-2019 - 000183 Director Development Session - 217/19 - Richard McMahon ESG Deck - 217! 19 Continued Growth of ESG/Proxy Voting Teams $9 t?i't?t?t't't't'l?i'12 Vanguard mm rm gum? 4 mm Source: Lazard, Shareholder websites, public information and observations. I 5 5 Sunshine #882 - Tait - 03-28-2019 - 000184 Director Development Session - 2!?!19 Richard McMahon ESG Deck 2mm Shareholder Letters Documents INSURANCE NEW YORK CITY COMPTROLLER Vanguard: scor'r M. STRINGER EEI 6 6 Sunshine #882 - Tait - 03-28-2019 - 000185 Director Development Session - 2l7l19 - Richard McMahon ESG Deck 2l7l19 ESG Evaluators Credit Rating Agencies - Moody?s Investors Service General Principles forAssessing ESG Risks (September 2018) - Global Ratings Proposal For ESG Evaluations (September 2018) - Fitch Ratings Approach to Capturing ESG Risk in Credit Ratings (November 2017) January 2019 Launch of ESG Relevance Scores to show impact of ESG on credit ratings. The standardized scoring system is sector-based and entity-specific. Proxy Advisory Service - Institutional Shareholder Services (ISS), Glass, Lewis Co, Egan-Jones Proxy Services, etc. ESG Data Providers - Sustainalytics, MSCI, Bloomberg, RobecoSAM, Global, IHS Markit, etc. EEI 7 7 Sunshine #882 - Tait - 03-28-2019 - 000186 Director Development Session 2/7l19 Richard McMahon ESG Deck - 2/7l19 Overview of ESG/Sustainability Environmental Social - GHG energy use Community impacts - Air quality - Economic contributions Coal ash Health Safety Water stewardship Grid reliability Energy efficiency - Lobbying Governance - Board diversity - Board experience - independence - Incentives compensation - Tax strategy - Culture EEI 8 Sunshine #882 - Tait - 03-28-2019 - 000187 Director Development Session - 217/19 - Richard McMahon ESG Deck 217] 19 Shareholder Activism Results of Shareholder Proposals in 2017 80Proxy Emissions Renewables Two Degree Political Other Access Reporting (2) Scenario Spending (shareholder proposals were related to Two Degree reporting. Despite being the ?rst year many were introduced, the Two Degree proposals received significant votes in favor and was accepted by shareholders of one member company. Notes: ?Only four results charted because one proposal was withdrawn prior to shareholder meeting after discussion with company. "ExxonMobil and Occidental Petroleum had Two Degree shareholder proposals pass in 2017. XOM and OXY are shown for information only and not included otherwise. 9 Source: Member Company Survey, Proxy Monitor, SEC. 9 Sunshine #882 - Tait - 03-28-2019 - 000188 Director Development Session 217/19 - Richard McMahon ESG Deck 2i7/19 Shareholder Activism Results of Shareholder Proposals in 2018 80CMS 40% NEE :13? oux 30% HR Six withdrawn 20% proposals at: 10% was? Mam?mum mam?.? . DTE 0% arr-:4 Methane Proxy Special Renewables Two Degree Political Other Emissions Access Meeting (2) Scenario Spending (5) (3) - (4) (2) (4) Proposals related to reporting on methane emissions include energy companies in the oil and gas sector, as well as regulated electric companies in the electric utility sector. The remaining categories in this chart include shareholder proposals at regulated electric companies only. 1 Note: The passing resolution at Ameren Corporation was related to reporting on coai combustion residuals and waterimpacts. I 10 Source: EEI and 2018 company SEC ?lings. 10 Sunshine #882 - Tait - 03-28-2019 - 000189 Director Development Session 217/19 - Richard McMahon ESG Deck - 2ITI19 Withdrawn Proxy Proposals in 2018 EEI Member Company ESG Activist Type of Proposal AEP New York State Comptroller GHG Reduction Targets AES Mercy Investment Services 2D Scenario Analysis AES New York State Comptroller GHG Reduction Targets Ameren Mercy investment Services 2D Scenario Analysis CMS Energy Seventh Generation Interfaith 2D Scenario Analysis ConEd Friends Fiduciary Corporation Report on Lobbying Dominion Energy As You Sow Methane Reduction Targets Dominion Energy New York State Comptroller 2D Scenario Analysis DTE Energy As You Sow Methane Reduction Targets DTE Energy New York State Comptroller ZD Scenario Analysis Duke Energy As You Sow Report on Coal Risks Duke Energy Mercy Investment Services Report on Lobbying Exelon As You Sow Methane Reduction Targets FirstEnergy As You Sow 2D Scenario Analysis FirstEnergy The Nathan Cummings Foundation Report on Lobbying SCANA Friends Fiduciary Corporation Report on Lobbying WEC Energy Group Seventh Generation Interfaith ZD Scenario Analysis EEI 11 11 Sunshine #882 - Tait - 03-28-2019 - 000190 Director Development Session - 21?71?19 - Richard McMahon ESG Deck - 2/71/19 Investor Engagement Stakeholder Outreach Investors Related Trade Groups Continue to ex and AGA, EPRI, APPA, NRECA API, IPIECA, INGAA, IPAA Proxy Services Credlt Rat'ng AgenCIes Megdbers Institutional Shareholder Services Moody?s, Ratings, Fitch (ISS), Glass, Lewis Co, Ega n?Jones EEI Proxy Services, etc. . ESG Data Provrders Interest Groups MSCI, Bloomberg, Cer SASB RobecoSAM, Global, etc. 95' 'e EEI 12 12 Sunshine #882 - Tait - 03?28?2019 - 000191 Director Development Session - 217/19 - Richard McMahon ESG Deck - 212119 U.S. Power Sector Carbon Dioxide Emissions Declining - More than 1/3 of U.S. power generation comes from zero-emissions sources - As of 2017. industry emissions were 28 percent below 2005 levels - Trajectory is expected to continue based on current trends Million Metric Tons 2.500 2.400 2.300 2.200 2.100 2.000 1.900 1.800 1700 2005 2005 200? 2008 2009 2010 2011 2012 2013 2014 2015 2015 2017 00m month/'1, E'o'n slut-J l? {6 . Err,? 0.1.0" 2211 El 13 Sunshine #882 - Tait - 03?28?2019 - 000192 Director Development Session - 2/7119 - Richard McMahon ESG Deck - 2t?! 19 EEI Member Company GHG Reduction Goals COMPANY (February 2018) - (November 2018) Albant (August 2018) Ameren (September 2017) AVANGRID (2016} CMS Energy (February 2018) Dominion (December 2018) DTE Energy (May 2017} Duke Energy (March 2017) Enters! (2018) FirstEnergy Green Mountain Power (January 2018) Idaho Power (May 2017) Madison Gas 8 Electric (November 2015) Minnesota Power Montana-Dakota Utilities (2017) National QM (June 2010) 60% below 2000 levels by 2030 80% below 2000 levels by 2050 Reduce carbon intensity 70% from 2016 to 2030 40% below 2005 by 2030 80% below 2005 by 2050 35% below 2005 levels by 2030 50% below 2005 levels by 2040 80% below 2005 levels by 2050 Reduce CO2 intensity 25% below 2015 levels by 2020 100% carbon neutral by 2035 80% below 2005 levels by 2040 Reduce carbon intensity 60% below 2000 levels by 2030 Reduce methane intensity 50% below 2010 levels by 2030 30% below 2005 levels by the early 20205 45% below 2005 levels by 2030 below 2005 levels by 2040 More than 80% below 2005 levels by 2050 40% below 2005 levels by 2030 20% below 2000 levels through 2020 Additional 15% below 2015 levels by 2022 (operations-driven emissions) 90% below 2005 levels by 2045 Eliminate >8,000 metric tons of Gog/year for next 20 years Reduce 002 intensity 15%-20% below 2005 levels through 2020 40% below 2005 levels by 2030 80% below 2005 levels by 2050 30% below 2005 levels by 2025 Reduce GHG intensity 45% below 2005 levels by 2030 45% below 1990 levels by 2020 70% below 1990 levels by 2030 80% below 1990 levels by 2050 14 COMPANY NiSource - NextEra (September 2018) 50% below 2005 levels by 2025 - Reduce CO2 emissions rate >65% below 2001 levels by 2021 November 2018) Ma 2017) - Reduce CO emissions >90% by 2028 2 gigmber 2018) 40% below 2005 levels by 2019 - Reduce 1 million tons of GHGs from company operations ttlr0ugh 2022 (ll?0173018) 40% below 1990 levels by 2030 - 00% below 1990 levels by 2050 - Reduce CO2 emissions rate to <600 by 2032 - 40% below 2012 levels by 2018 - 60% below 2012 levels by 2030 87% below 2012 levels by 2040 MM (April 2017) - More than 80% below 2010 levels by 2050 (February 2018) a (January 2013) - 70 in below 2010 levels by 2050 PSEG I1 lo 20300 2005i (February 2018) - 3 tons 02?e by om eve - Reduce carbon footprint 50% by 2040 Southern California Edison - 40% below 1990 levels by 2030 (October 2017) - 80% below 1990 levels by 2050 MW - 50% below 2007 levels by 2030 (April 2018) - Low- to no-carbon Operations by 2050 TVA - 80% below 2005 levels by 2020 - 75% below 2005 levels by 2030 5.0% - ~eo% below 2005 levels by 2024 WEC Energy Group - 40% below 2005 levels by 2030 {August 2018) - 80% below 2005 by 2050 Xcel Energy - 80% below 2005 levels by 2030 (December 2018) - Carbon-free electricity by 2050 As of 201?. company had reduced 002 emissions rate to EEI 14 Sunshine #882 Tait 03?28?2019 000193 Director Development Session - 2!?!19 - Richard McMahon ESG Deck - 217119 First and Only Investor-Driven and Sector-Specific ESG Template EEl?s ESG/Sustainability Steering Committee has identified 5 areas of focus based on discussions with investors to include in the Version 1 Template Version 2 - LDC Metrics Qualitative ESG/Sustainability . - EEI and AGA are currently Governance Management and overSight of ESG/Sustainability engaging investors to seek . .. . . . . . . 'dance on relevant ESG ESG/Sustainability Practices, programs, and Initiatives deSIgned to support the company?s EnJetrics for LDCs Strategy tran5ition to a lower carbon and sustainable energy future A group of AGA pilot companies are currently publishing gas LDC metrics Quantitative with the Version 1 template. Portfolio An Excel?based data reporting template that is customized for electric . These LDC metrics will be Emissions companies to include metrics on owned and/or purchased generation fully incorporated into data by technology/resource type, as well as other metrics related to Version 2 to report 2018 data Resources capital investments, emissions, and natural and human resources later this year. Note: data for these areas should include as much historical, current, and forward?looking information as is appropriate. EEI 15 15 Sunshine #882 Tait 03?28?2019 000194 Director Development Session - 2!?!19 - Richard McMahon ESG Deck 19 Natural Gas Sustainability Initiative (NGSI) Recognizing voluntary actions and sustainability commitments from industry leaders across the natural gas value chain Upstream Midstream a I 9 Transmission 9 Next Steps Engage stakeholders Incorporate feedback into NGSI design EEI 16 16 Sunshine #882 - Tait - 03?28?2019 - 000195 Director Development Session - 2i?7i?19 - Richard McMahon ESG Deck Appendix 17 Sunshine #882 - Tait - 03?28?2019 - 000196 Director Development Session - 2!?!19 - Richard McMahon ESG Deck 2i7119 EEI Member Company Ticker Symbols Company Name Ticker ompany Name Ticker ALLETE, Inc. ALE IDACORP, Inc. IDA Alliant Energy Corporation LNT MDU Resources Group, Inc. Ameren Corporation AEE MGE Energy, Inc. American Electric Power Company, Inc. AEP NextEra Energy, Inc. NEE AVANGRID, Inc. AGR NiSource Inc. NI Avista Corporation AVA NorthWestern Corporation NWE Black Hills Corporation BKH OGE Energy Corp. OGE CenterPoint Energy, Inc. CNP Otter Tail Corporation CMS Energy Corporation CMS Corporation PCG Consolidated Edison, Inc. ED Pinnacle West Capital Corporation PNW Dominion Energy, Inc. PNM Resources, Inc. PNM DTE Energy Company DTE Portland General Electric Company PDR Duke Energy Corporation DUK PPL Corporation PPL Edison International EIX Public Service Enterprise Group Incorporated PEG El Paso Electric Company EE SCANA Corporation SCG Entergy Corporation ETR Sempra Energy SRE Evergy, Inc. EVRG Southern Company SO Eversource Energy ES Unitil Corporation UTL Exelon Corporation EXC Vectren Corporation WC FirstEnergy Corp. FE WEC Energy Group, Inc. WEC Hawaiian Electric Industries, Inc. HE Xcel Energy Inc. XEL El 18 13 Sunshine #882 - Tait - 03?28?2019 - 000197 Director Development Session - 2i7i?19 Richard McMahon ESG Deck - 2l7119 Richard F. McMahon, Jr. Senior Vice President, Energy Supply Finance Edison Electric Institute 701 Ave., NW Washington, DC 20004 202-508-5571 (Phone) 571?314-3120 (Cell) RMcMahon@eei.org EEI 19 Sunshine #882 Tait 03?28?2019 000198