It is a business' responsibility to increase profits and provide economic return to its shareholders.  Some believe that efforts such as environmental stewardship and other sustainability efforts, while perhaps necessary to a degree in todays business climate, are costs to the organization and they are treated as such.  At Pinnacle West, we believe that effective sustainability governance is a competitive business strategy that will lead to increased profitability and business success. 

Benefits to our company from our sustainability programs include:

• risk reduction
• operating efficiencies
• early identification of emerging opportunities and issues
• waste and emissions reductions
• enhanced corporate reputation
• human capital - enhanced recruitment and retention
• enhanced interactions with our critical stakeholders, and
• compliance benefits

These allow our company to be more innovative and effective in our operations over time, which is a competitive advantage that results in improved shareholder value, not just over a quarter but long term.

Our financial performance in 2007 is discussed in great detail in our 2007 Pinnacle West Annual Report.