Sustainability Strategy
Sustainability Strategy
Our Mission
Con Edison’s mission is to provide energy services to our customers safely, reliably, efficiently and in keeping with our vision for a clean energy future; to provide a workplace that embraces diversity and inclusion and allows employees to realize their full potential; to provide a fair return to our investors; and to improve the quality of life in the communities we serve. The company has ongoing programs designed to support each component of its mission, including initiatives focused on safety, operational excellence and the customer experience.
This mission guides us as we celebrate 200 years in business and look forward to future centuries of service with new challenges operating in a dense, urban service territory that is susceptible to climate change. Safety and reliability are of utmost importance to us and our customers, and to operate our critical energy systems, we rely on our diverse workforce, which is reflective of the communities we serve. Central to our mission is the clean energy transition, guided by our clean energy commitment, which is consistent with New York State’s clean energy agenda.
Executing our mission enables us to continue to provide steady, predictable earnings, maintain balance sheet stability, and pay attractive dividends for our shareholders – in 2024, we raised our annualized dividend for the 50th consecutive year.
Dowload ReportOur Approach to Sustainability
Our strategy stems from our mission to operate sustainably as we aim to address the growing global threat of climate change and meet the requests of our customers and the public to have an increasing influence over how their energy is produced and used.
We are serving an essential role in the delivery of a clean energy future for our customers. by investing in, building, and operating reliable, resilient, and innovative energy infrastructure, supporting electrification of heating and transportation, and transitioning away from fossil fuels to support New York State’s goals for a net-zero economy by 2050.
Using the robust knowledge and skillset of our employees, enabling the development and implementation of technologies needed to support our mission, supporting the voice of our customers, we believe we’ll be able to carry out our vision and continue to deliver service that our customers, employees, and all stakeholders are proud to support.
As we embark on this clean energy transition, we’re also mindful of the impact we’re having on natural resources to sustain environmental viability for future generations. Our sustainability priorities are integrated in all our plans such as our Climate Change Implementation Plan and our commodity Long-Range Plans for our electric, gas, and steam businesses, which are designed to help us navigate today’s challenges while preparing for changes in the energy landscape.
We are serving an essential role in enabling the delivery of a clean energy future for our customers. We are facilitating this future by investing in, building, and operating reliable, resilient, and innovative energy infrastructure, supporting electrification of heating and transportation, and transitioning away from fossil fuels to support New York State’s goals for a net-zero economy by 2050.
Sustainability Priority Assessment
In 2023, Con Edison conducted a comprehensive sustainability priority assessment with a leading consulting firm to gain a deeper understanding of our focus areas for Environmental, Social, and Governance (ESG). This assessment involved extensive research on industry peers, sustainability reporting frameworks, ESG rating agencies, and ESG-related regulations to identify the most relevant ESG topics for Con Edison. A major component of this assessment was conducting a robust stakeholder engagement exercise to collect input and feedback from more than 20 unique internal and external stakeholder groups. These groups were engaged in interview, focus group, and survey to inform the assessment. From this research 29 ESG topics were presented throughout the assessment which were ranked by stakeholders based on the potential scale of impact.
Con Edison is using the results from this assessment to inform its sustainability strategy and priorities as we move forward. We will continue to engage with our stakeholders so that their feedback informs and inspires the continued sustainability of our operations.
We also performed an assessment in reference to key frameworks like the United Nations Sustainable Development Goals to measure alignment with global standards and how the goals align to our business model. Below are six global goals most relevant to Con Edison’s business operations to support the health and prosperity for people and the planet. Con Edison is committed to serving an essential role in delivering the transition to the clean energy future that our customers deserve and expect. We will accomplish this by delivering affordable and reliable energy through resilient and innovative grid infrastructure that can withstand the present and currently projected impacts of climate change.
Clean Energy Future: Policy and Commitment
New York has long been a leader in progressive climate policies. In 2019, the State signed into law groundbreaking legislation called the Climate Leadership and Community Protection Act (CLCPA), which established ambitious new greenhouse gas emissions reductions aimed at achieving the broad goals of a zero-emissions electricity sector by 2040 and economy-wide carbon neutrality by 2050. The CLCPA also requires that between 35% and 40% of the benefits of State spending on clean energy or efficiency programs flow to newly defined disadvantaged communities, and it mandates an air monitoring program in at least four such communities. These are among the most ambitious goals in the country and political leadership throughout the state remains strongly committed to realizing them.
Even within the context of these statewide goals, New York City, which accounts for 78% of Con Edison’s customer base, has one of the most ambitious plans for reducing emissions in the nation. Local Law 97 was included in the Climate Mobilization Act, passed by the City Council in April 2019 as part of the New York City Green New Deal. Local Law 97 requires most buildings over 25,000 square feet to meet new energy efficiency and greenhouse gas emissions limits by 2024 with stricter limits coming into effect in 2030.
Since the enactment of Local Law 97, New York City has through Local Law 154 banned the use of fossil fuels in new buildings of less than seven stories height beginning in 2024 and for new buildings seven stories and over beginning in 2027. These laws further the City’s goal of reducing the emissions produced by the largest buildings by 40% by 2030 and 80% by 2050.
Our Approach to ESG
We have adopted our Environment, Social, and Governance (ESG) framework to round out our business models and assess the impacts that our decisions have not only on our operations, but also on our stakeholders and the environment. Our approach to responsible business includes identifying our key stakeholders and understanding the issues that are most relevant to them, prioritizing those issues, and responding to the priorities in a consistent and transparent way.
Our commitment to ESG matters provides a structure that supports our sustainability strategy. You will see our commitment to ESG highlighted in this year’s Sustainability Report, which summarizes our efforts in each of these areas. We continue to increase transparency and improve our processes, including considering ways to enhance our disclosures procedures and increase standardization. Some important elements of our ESG strategy are summarized below. We also provide reporting information in industry-standardized formats, that can be found on our ESG Reporting Standards page.
Environment: Our Clean Energy Commitment
Con Edison is well positioned to support the ambitious New York State and City goals through new investments in our electric grid and by partnering with our customers to support their efficiency goals and infrastructure upgrades that may be required for transitions from natural gas to electricity.
A major articulation of our strategy is our Clean Energy Commitment. Our commitment to a clean energy future is supported by five pillars, detailed below. Each pillar describes various company initiatives. To help meet the ambitious and necessary climate goals in New York State and New York City, urgency must underpin everything we do. Our work is expansive, from energy efficiency programs to supporting the electrification of buildings and homes to facilitating electric vehicle charging infrastructure. We work so that green energy can meet the needs of our diverse service territory.
Our Clean Energy Commitment is available on our website at the following link: Our Clean Energy Commitment | Con Edison
Social: Diversity, Equity & Inclusion
Con Edison is committed to attracting, developing, and retaining a talented, diverse workforce that reflects the great metropolitan area we serve. We value and support a wide range of employee needs and interests. The company’s skilled and experienced workforce enables the company to maintain best-in-class reliability and work to achieve a clean energy future. The human capital measures we take focus on employee safety, hiring the right talent, employee development and retention, and diversity, equity and inclusion.
Con Edison strives for a diverse and inclusive workforce. A comprehensive Diversity, Equity and Inclusion (DEI) strategy underlies the corporate culture; informing how its employees engage with one another, and setting the foundation for a respectful and inclusive environment.
Our corporate Diversity, Equity, & Inclusion (DEI) program is comprised of four key elements – ongoing learning and competency building; inclusive and visible leadership support; reviewing our systems, policies, and procedures to eliminate potential barriers to inclusion; and celebrating and acknowledging the diversity of our workforce.
Con Edison employee with family.
The Corporate Diversity, Equity & Inclusion Action Plan has two-prongs: data-driven change and culture transformation. The 14-point plan is being implemented through the work of our Diversity Equity & Inclusion Task Force. The focus of this cross-functional team of employees is to closely examine metrics to truly understand the representation of our workforce and identify areas of opportunity as well as areas where we have made solid progress. It will also enable cultural transformation by challenging us to look at how we administer our systems, policies, and procedures—addressing any barriers that prevent diversity, equity and inclusion.
Our commitment to diversity and Human Rights also extends to our supply chain. Our effort in this area helps us to increase competition within our vendor base, create millions of dollars of opportunities for minority-owned and women-owned businesses, and contribute to the economic vitality of the communities we serve.
Our people will always be our greatest strength—and the incredible range of culture, experience, and perspective makes the company stronger.
Governance: Maintaining Sound Governance Practices
As disclosed in our Proxy Statement, the Company is firmly committed to sustainability, which is broadly overseen by the Board. The Board reviews and discusses sustainability throughout the year and routinely reviews environmental topics, including climate change, biodiversity, environmental justice and their impact on the Company’s operations, strategies, and risk profile.
In addition, the Board has delegated to the appropriate committees, responsibility for the specific sustainability categories relating to the oversight with which such committees are charged, such as the Safety, Environment, Operations and Sustainability Committee (see chart for detail).
Committees not specifically tasked with oversight of sustainability also periodically review matters related to sustainability. For instance, as part of its review of strategy and financial plans, the Finance Committee considers the financial sustainability of the Company.
Management’s oversight of the Company’s ESG strategy is the responsibility of the Vice President for Strategic Planning who chairs an ESG Committee, comprised of Vice Presidents and other senior staff from key areas such as Environment, Health and Safety, Supply Chain, Learning and Inclusion, Corporate Affairs, Human Resources and Law. The ESG Committee meets monthly, reviews relevant internal and external developments and advises on strategy. The Vice President for Strategic Planning reports to the CFO ensuring integration of ESG matters across the corporation.
Safety, Environment, Operations, and Sustainability Committee of the Board
Oversees sustainability matters relating to safety and the environment and reviews the Company’s Annual Sustainability Report prior to its publication. At each of its meetings, the Safety, Environment, Operations and Sustainability Committee reviews certain key performance indicators relating to climate risk
Corporate Governance and Nominating Committee of the Board
Charged with sustainability matters relating to governance, including overseeing the Company’s approach to political and lobbying activities and receiving periodic reports about the Company’s political contributions, lobbying, and trade association activities
Management Development and Compensation Committee of the Board
Responsibilities include oversight of sustainability topics relating to human capital management. The Management, Development, and Compensation Committee annually reviews performance results as well as proposed performance indicators for the following year
Vice President-level Environmental, Social, and Governance Committee
Supports and advances the Company’s on-going commitment to environmental, health and safety, corporate social responsibility, corporate governance, sustainability, and other public policy matters relevant to the Company (collectively “ESG Matters”)