Operational Excellence

Governance

Experience has taught us that the combination of a solid financial foundation, operational excellence, the highest ethical standards, and the utmost regard for our employees and the people and communities we serve are the bedrock qualities of a successful company.

With that in mind, the company’s board of directors establishes committees to oversee various aspects of the company’s operations. Currently, the board of directors has six standing committees: (i) the audit committee, (ii) the corporate governance and nominating committee, (iii) the executive committee, (iv) the finance committee, (v) the management, development and compensation committee, and (vi) the safety, environment, operations and sustainability committee (SEOS committee), further information about each of which can be found here: https://www.conedison.com/en/about-us/corporate-governance/board-of-directors.

A standing committee of the company’s board of directors, referred to as the planning and environmental committee, existed as early as 1973. In 1995, this committee became the company’s environment, health and safety committee (EH&S committee), whose primary responsibility was to oversee the company’s efforts relating to the protection of the environment, sustainability, and the health and safety of company employees and the public. At the end of 2018, the EH&S committee was dissolved and as of January 1, 2019, the company established a newly constituted SEOS committee. The primary responsibility of the SEOS committee is to oversee our efforts relating to corporate responsibility and sustainability, which includes operating in a safe, environmentally sensitive and socially responsible manner, guarding the health and safety of company employees and the public, supporting the development and success of company employees, delivering value to customers and fostering growth to meet the expectations of investors. The SEOS committee, which meets at least four times a year, reviews at each of its meetings certain key performance indicators relating to climate risk, including energy efficiency, dielectric fluid management, SF6 gas emissions, and environmental beneficial electrification. In 2020, the company’s board of directors also received presentations that covered climate-related issues such as the company’s transition to a clean energy future, its strategy for achieving New York and New Jersey’s clean energy goals, and the company’s role in the evolving renewables market.

At the management level, the company’s EH&S vice president, together with senior management, is responsible for developing strategic goals and programs to promote compliance and support the company’s commitment and continued work to achieve EH&S goals and operational excellence. As detailed in our Sustainability Strategy, the company’s environment, social, and governance committee works to strengthen sustainability across all aspects of the company.

Part of senior management’s commitment to safety, the environment, operational excellence and sustainability includes independent oversight. The corporate ombudsman’s office, reporting directly to the CEO, provides employees with an independent office to which they may confidentially report suspected violations of our Standards of Business Conduct, including ethical, legal, sustainability or EH&S concerns.

Our environment and safety review board consists of an attorney who reports directly to the CEO. The role of the environment and safety review board is to review the company’s management of both regulatory and internal requirements and assess whether such implementation is consistent with the company’s commitment to safety and environmental excellence.

Public policy decisions can have significant implications for our customers, the energy systems we manage, and the future direction of our company. That’s why we participate in the political process, adhering to all the national, state, and local laws and regulations. Our engagement in the political process is grounded in and guided by our commitment to our Standards of Business Conduct.

For further details: https://www.conedison.com/en/about-us/corporate-governance/political-engagement