- Growing Value through Sustainable Business
- Exelon is working to grow business value through our sustainability efforts. Find out more in our 2012 Exelon Corporate Sustainability Report.
Transitioning the nation's energy supply system to one that minimizes environmental impacts will require profound changes. Exelon’s efforts to supply clean energy and promote market-driven solutions support America’s efforts to make this transformation as efficient and effective as possible.
Since 2004, Exelon has pursued an environmental strategy that builds on four fundamental elements: regulatory compliance, risk management, resource stewardship and leadership. We continuously assess our strategic options as we better understand the complex environmental, social and economic linkages that challenge our society; we adapt and refine our business strategy to build shareholder value.
Exelon placed an early focus on carbon emissions because we see our opportunity and responsibility to make a real impact on this mitigating factor of the climate change issue.
Exelon 2020, our industry leading GHG abatement program, has served to guide our investment decisions to identify reliable, lower cost electricity supply options and to provide a framework for our public policy advocacy on climate change.
- Learn more about our performance
At the end of 2012, we achieved over 89% of our goal, having abated 14 million tonnes of GHG emissions; a reduction equivalent to removing over 2.3 million cars off the road every year. As summarized in the chart, Exelon 2020 performance is expressed as a measure of total annual GHG emissions.
In support of the program's objectives, we have invested billions in cost-effective, clean energy projects and customer energy efficiency programs. Our GHG abatement efforts include:
Exelon 2020: Program Update Fact Sheet [PDF | 110 KB]At the end of 2012, Exelon updated its leading Exelon 2020 GHG program to cover Constellation operations and incorporate two GHG commitments made by Constellation prior to the merger. The updated Exelon 2020 goal is to abate 17.5 million metric tons of GHG emissions annually by 2020.
- Exelon joined The Climate Registry in 2011 and is Climate Registered with completed verification and posting of our 2011 and 2012 inventories within their system. The Climate Registry establishes consistent, transparent standards for carbon footprint reporting throughout North America.
Measuring Progress and Improvement
As GHG emissions accounting evolves, Exelon makes every effort to respond by updating and expanding its GHG inventory accordingly.
With the EPA's phase-out of the Climate Leaders program in 2011, Exelon has realigned its Inventory Management Plan to conform to the accounting guidance outlined by The Climate Registry (TCR). TCR’s protocols embody GHG accounting best practices and build upon the framework established by the Climate Leaders program.
With the Exelon 2020 program, we have integrated performance monitoring of our GHG inventory and Exelon 2020 efforts into Exelon’s quarterly management reporting process. Each of the operating companies currently participating in Exelon 2020 documents its progress and results as part of the overall quarterly operational and financial review with the company’s senior leadership. Exelon verifies its corporate inventory each year to the TCR standards protocol, having integrated all Constellation's assets as acquired in 2012.
- Competition and climate solutions go hand in hand. Over the last decade, organized competitive markets have been instrumental in improving the operating performance of the electricity sector, including the performance of the nation’s fleet of nuclear power plants and new investment in environmentally-preferred generation assets, including gas, wind and solar.
Climate Leadership and Recognition
Because appropriate public policies are crucial to addressing climate change in a meaningful way, Exelon has continued engagement with policymakers and key stakeholders to communicate the necessity of ultimately enacting market-based policies for addressing GHG emissions.
Competitive Markets. We believe that properly designed competitive markets are the best mechanism to ensure cost-effective, reliable power supplies and that such markets have also demonstrated the ability to reduce GHG and air emissions in the most efficient way.
Clean Energy. Exelon has supported development of a number of key environmental rulemakings, under the Clean Air Act including the Mercury and Air Toxics Rule (MATS), the Cross-State Air Pollution Rule (CSAPR), and provided input on the development of the New Source Performance Standards (NSPS) for new and existing power plants.
Nuclear Energy. As the largest nuclear fleet operator in the nation, Exelon believes nuclear power is a clean, safe, affordable way to meet energy demands in the United States with minimal direct GHG emissions. We support national policies that will encourage the extended and expanded operation of existing plants. We also support the establishment of an effective approach to spent nuclear fuel management.
CDP. In 2013, Exelon was the only U.S.-based utility company to appear on CDP’s Global 500 Climate Disclosure Leadership Index (CDLI) and Climate Performance Leadership Index (CPLI) for leadership in reducing carbon emissions and addressing climate change. Exelon was one of only two utilities named to the S&P 500 CDLI and CPLI.
- More than 5,000 public companies are asked to disclose their carbon emissions and climate change strategies trough CDP.
- Exelon has participated in the CDP since 2005 and qualified for the Carbon Disclosure Leadership Index (CDLI) in six of the eight years we have participated. Our responses document the maturity of our climate change initiatives and achievement of related objectives.
- In 2013, Exelon also completed the CDP Water and Supply Chain Surveys, which are newer initiatives within the CDP to further expand the importance of environmental performance disclosure. These surveys are not yet scored by the CDP at this time.