Sustainability reporting & sustainable financing
Puget Energy and its primary operating subsidiary Puget Sound Energy (PSE) are committed to doing what is right by striving to continuously improve our business in the three pillar areas of sustainability: environmental, social and governance (ESG). Key elements of our goals and aspirations are captured in Pathway to Beyond Net Zero Carbon by 2045 document that lays out our plan to help drive Washington State’s transition to clean energy through both goals that we are on a path to meet and aspirational goals that we are working towards. To help achieve these aims with energy equity in mind, our Clean Energy Implementation Plan (CEIP) is a four-year roadmap that will guide PSE’s clean electric energy supply investments for the years 2022-2025.
Consistent with our commitments, our Sustainable Financing Framework defines investment areas aligned to the company’s clean energy strategy and other sustainability objectives (see Sustainable Financing Framework below). Sustainalytics issued its Second Party Opinion that our Sustainable Financing Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023 and the Social Loan Principles 2023.
To transparently communicate our sustainability plans and performance, we report under several industry-standard frameworks. Our annual Environmental, Social and Governance (ESG) report provides an overview of our efforts and provides links to additional information available through our website and other public resources. The Sustainability Accounting Standards Board (SASB) provides guidance to electric and natural gas utilities in disclosing sustainability-related information, forming the basis for our SASB Index. Our TCFD report was prepared in alignment with the Task Force for Climate-Related Financial Disclosures recommendations, and documents both transitional and physical risks and opportunities associated with climate change. Together, our ESG and TCFD reports and SASB Index provide a roadmap to understanding our sustainability efforts across the company. PSE has long participated in the Edison Electric Institute and the American Gas Association joint efforts to establish an industry ESG working group and increase industry transparency by publishing metrics outlined in the EEI / AGA voluntary sustainability reporting templates.
An integral component of sustainability is climate resiliency, or the ability for us to continue providing safe, reliable energy in the face of increasing frequency of extreme weather events; it is critical to our planning for the future and for today’s operations. Key components of our grid resiliency planning are outlined in our Grid Modernization Strategy. A critical consideration in today’s operations is the increasing risk of wildfire; PSE published a Wildfire Mitigation and Response Plan annually, which documents PSE’s wildfire related strategies, operational procedures and system investments. The plan establishes safety as the first priority and outlines methods PSE uses to address situational awareness, notification, preventative measures and response and recovery actions specific to wildfire risks.
Lastly, we annually report our greenhouse gas (GHG) emissions. Trends in GHG emissions and our efforts toward Beyond Net Zero Carbon are discussed in our ESG Report.
Environmental, Social & Governance (ESG) Report
Our Environmental, Social and Governance (ESG) report, provides an overview of our continued progress in the three pillar areas of sustainability:
- Climate Mitigation (transition to cleaner energy, progress toward Beyond Net Zero Carbon goals and aspirations)
- Environmental Compliance (air, waste, and water)
- Biodiversity and Habitat Protection Programs (fish, wildlife, avian, wetlands, vegetation management and cultural resources)
- Our Customers and Communities
- Our Employees
- Our commitment to diversity, equity, and inclusion
- Health and Safety for our Employees, Contractors, and the Public
- Energy Resource Planning
- Our Ethics: Doing the Right Thing
In 2022, we conducted our first assessment to identify and assess our potential climate-related risks and opportunities aligned with the climate-specific recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). An overview of the analysis, including the seven physical and transition scenarios PSE used to identify potential climate-related risks and opportunities and the associated disclosures, is provided in our TCFD Report.
PSE is committed to transparency in reporting and has compiled operating metrics in accordance with the Sustainability Accounting Standards Board voluntary reporting framework for:
- Electric Utilities & Power Generators
- Gas Utilities & Distributors
Our SASB Index provides a roadmap to documents and references across PSE’s website related to its environmental, social, and governance activities and programs.
Sustainable Financing Framework & Second Party Opinion
Our Sustainable Financing Framework (“Framework”) defines investment areas aligned to the company’s clean energy strategy and other sustainability objectives by describing eligible categories for the use of financing proceeds, process for evaluation and selection of projects, management of proceeds, and annual allocation and impact reporting. Under the Framework, we intend to issue sustainability bonds/loans, green bonds/loans, social bonds/loans, or commercial paper (the “Sustainable Financing Instruments”).
Our Framework was reviewed by Sustainalytics, a leading ESG research, ratings and data firm that supports investors around the world with the development and implementation of responsible investment strategies. Sustainalytics issued its Second Party Opinion that our Framework is credible and impactful and aligns with the Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023 and the Social Loan Principles 2023.