ASSESSING & ENCOURAGING ELECTRIC SECTOR SUSTAINABILITY AS BUSINESS STRATEGY: INVESTOR & ANALYST PERSPECTIVES

Abstract

The electric power sector represents the largest contributing source of greenhouse gas (GHG) emissions in the U.S. and faces significant risk associated with climate change, extreme weather and other environmental factors (EPA, 2014). As such, this study seeks to identify the ways in which investors are seeking to minimize the risk associated with power sector investments and in doing so provide an illustrative business case for power companies to improve their sustainability performance. Sustainable investors, in particular, view investment decisions through a solid understanding of not only financial metrics but environmental, social and governance (ESG) factors that capture sustainability risks associated with GHG emissions, energy, water, supply chains, and human rights among other factors.