- Since 2004 Exelon has pursued an environmental strategy that builds on four fundamental elements:
- Regulatory Compliance
- Risk Management
- Resource Stewardship
- Leadership
Transitioning the energy supply system to one that minimizes environmental impacts will require profound changes, and Exelon’s efforts to supply clean energy and promote market-driven solutions supports America’s efforts to make this transformation as efficiently and effectively as possible.
Exelon 2020, which serves as our business strategy guide for investment decisions and as a framework for our public policy advocacy on climate change, is evolving to identify reliable, lower cost electricity supply options that can also achieve other key environmental objectives. From 2010 through 2015, we are investing nearly $5 billion in cost-effective, clean energy projects, which will reduce the atmospheric impacts of our fleet and those of our customers and the markets in which we operate. As we continue to assess strategic options and better understand the complex environmental and social linkages, we will continue to adapt and refine our business strategy to most cost-effectively meet these needs.
Low-carbon performance
As reported by the National Academy of Sciences in May 2011, evidence of global climate change is compelling. Its potential impacts and the need for action through carbon emissions reductions present an enormous challenge to our industrial society. Exelon has placed early focus on carbon emissions because we recognized our opportunity to make a real impact on this pressing issue. We hold an influential role as one of the largest electric wholesale and retail power generation companies in the US, as well as through our utility companies with over 5.4 million retail electricity customers.
In 2008, Exelon launched Exelon 2020, an ambitious strategy to reduce, offset or displace more than 15 million metric tons of greenhouse gas (GHG) emissions per year by 2020. As of May 2011, we are more than halfway to our goal having abated 8.9 million tonnes of GHG emissions; a reduction equivalent to taking more than 1.5 million cars off the road every year.
As summarized in the chart above, Exelon 2020 performance is expressed as a measure of total annual GHG emissions abated through the following combination of ongoing initiatives:
Exelon 2020: 2011 Update [PDF | 8 MB]In 2011, Exelon made significant strides towards our goal to abate 15.7 million metric tonnes of GHG emissions per year, projecting reaching 75% by year end.
- Exelon joined The Climate Registry in 2011. The Climate Registry establishes consistent, transparent standards throughout North America for businesses and governments to calculate, verify and publicly report their carbon footprints in a single, unified registry.
Measuring Progress and Improvement
As GHG emissions accounting evolves, Exelon makes every effort to respond by updating and expanding its GHG inventory accordingly. With EPAs phase-out of the Climate Leaders program in 2011, Exelon is realigning its Inventory Management Plan to incorporate the equally robust accounting guidance outlined by The Climate Registry (TCR). TCR’s protocols embody GHG accounting best practices as drawn from The World Resources Institute and the World Business Council for Sustainable Development (WRI/WBCSD) GHG Protocol and the International Organization for Standardization (ISO) 14064 standards, and builds upon the framework established by the Climate Leaders 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 documents their progress and results as part of the overall quarterly operational and financial review with the company’s senior leadership. Exelon plans to complete its transition to TCRs reporting protocols and verify its 2011 GHG inventory in 2012.
GHG Summary Form [PDF | 33KB]Through the 2009 reporting year, Exelon has publicly reported our GHG inventory through the EPA Climate Leaders program. As that is no longer an option, Exelon is posting our 2010 GHG inventory summary following that same format on this web site to maintain transparency.
Climate Leadership Recognition
Climate Leaders Program.
In 2009, the U.S. EPA’s Climate Leaders program accepted Exelon’s emissions reduction of more than 38% from 2001 levels, far surpassing the company’s voluntary goal of 8% set in 2005. 
Carbon Disclosure Project
In 2011, Exelon again participated in the Carbon Disclosure Project (CDP), scoring among the top 10 top utilities in the S&P 500. The CDP collects data from more than 2,500 major corporations on their carbon emissions and climate change strategies. Exelon has participated in the CDP since 2005 and qualified for the Carbon Disclosure Leadership Index (CDLI) in four of the six years we have participated. Our responses document the maturity of Exelon’s climate change initiatives and achievement of related objectives. In 2011, 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.
“We committed to GHG reduction under the EPA Climate Leaders program to demonstrate that we could achieve meaningful carbon reductions. We expanded that goal with Exelon 2020, which will drive our transition to a low-carbon future.”
Market Solutions
- 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 Policy Engagement
Because appropriate public policies are crucial to addressing climate change in a meaningful way, Exelon has been an early and vocal advocate for mandatory, economy-wide climate regulation.
- United States Climate Action Partnership (USCAP). As a member of USCAP, we have joined a group of businesses and leading environmental organizations to collectively call on the federal government to quickly enact strong national legislation to require significant reductions of greenhouse gas emissions.
- Blue Ribbon Commission on America's Nuclear Future. Our CEO & Chairman, John W. Rowe serves serves on the Secretary of Energy’s BRC on America’s Nuclear Future, a panel to provide recommendations on managing used nuclear fuel and waste.
- World Resource Institute (WRI) GHG New Source Performance Standard (NSPS) Dialogue. Exelon participated in the WRI GHG NSPS Dialogue, along with other clean energy companies, national environmental organizations, state government agencies and other advisory organizations and think tanks, to develop a set of comments and recommendations related to issues and regulatory approaches that EPA should consider as it develops its upcoming proposed rulemaking to establish GHG NSPS requirements for existing fossil steam power plants by July 26, 2011. Exelon also advocates for sound policies at the local, state, regional and federal levels that help promote competition, protect our customers, and consistently provide incentives for effective and economically sensible climate change solutions. Most recently Exelon submitted its own GHG NSPS pre-proposal comments to U.S. EPA on March 18, 2011 and participated in the February 4, 2011 EPA-sponsored Electric Power Industry Listening session on this issue.
Environmental Performance Report [PDF | 2.6 MB] The purpose of this 2010 Exelon Corporation Environmental Performance Report is to provide our stakeholders with additional information regarding Exelon’s environmental metrics and performance in 2010 (and for significant events in the first quarter of 2011).