governance

Updated: February 2022

As stewards, we do what is right to create a sustainable energy future for Arizona through our APS promise, which guides our sustainability initiatives. To ensure our success, we maintain a strong corporate governance structure and practices that support the execution of our strategic priorities to achieve our mission, including those focused on our customers, communities, employees and stakeholders.

Read our Executive Letter and learn more about Public Policy, Business Framework, Corporate Governance, Recognitions and ESG Reporting.

ESG Governance

Organizational changes at multiple leadership levels have recently been made to strengthen our ESG governance structure and drive change within the organization to guide and achieve our ESG and sustainability priorities. These changes will play a critical role in supporting and evolving our efforts to design for tomorrow, empower each other, and succeed together.  

Board of Directors 
To demonstrate heightened attention on ESG, our Board of Directors amended the charter of the Corporate Governance Committee, now the Corporate Governance and Public Responsibility Committee, to add the responsibility to review ESG trends that may impact the company, ensure oversight of ESG issues by the board and its committees and make recommendations to the Board, as appropriate. We also amended the charter of the Human Resources Committee to include a requirement to periodically review and assess the company’s strategies and policies related to human capital management, such as diversity, inclusion, pay equity, corporate culture, talent development and retention.

ESG Executive Council  
Chaired by the Vice President of Sustainability of APS and sponsored by the Senior Vice President of Public Policy of APS,  our ESG Executive Council is comprised of senior executives and other stakeholders who guide us in developing a common, cross-functional ESG vision and shared value across all business units; align and integrate ESG strategies with the overall corporate strategic direction; develop and maintain a common, cross-functional oversight of ESG reporting and implementation; and measure and report on activities to reach our Clean Energy Commitment, internally and externally.

One strategic deliverable of the ESG Executive Council was the development of our Priority Sustainability Issues that we use to inform our strategic direction, create a framework for identifying and incorporating best practices and drive enterprise-wide alignment and accountability.  

Learn more about our Priority Sustainability Issues

 

Social Issues Committee Framework 

In 2021, we focused on strengthening our governance and consideration of social issues through the establishment of our Social Issues Committee Framework. The purpose of the framework is to provide a process for considering emergent social issues, and for determining whether or how to best engage on issues based on a set of principles grounded in our Promise and our PSIs.

 

Learn more about our focus on social issues.


Organizational Structure  

We have a Sustainability department, which reports directly to the Vice President of Sustainability, dedicated to integrating environmental, social and governance best practices into the everyday work of APS. Its fundamental purpose is to drive our performance and enhance our reputation as a responsible corporate citizen. In addition, this team has oversight and responsibility for the Corporate Responsibility Report.   

 
Our Culture and Inclusion team, led by the Manager of Culture, Learning and Inclusion, is focused on developing, strengthening and implementing diversity, equity and inclusion strategies. The team works closely with the Sustainability department at all levels of the organization to create a culture of trust that allows us to embrace diverse perspectives, create psychological safety for challenging respectfully, and unite as a team. Our revitalized Inclusion Council includes a Steering Committee and Executive Advocate group. In 2021, we added an Employee DEI Advisory Council to expand stakeholder representation and ensure that employees across the organization can add their voices and opinions to our DEI work.

Our Sustainability History

APS has a long history of integrating sustainability into the way we do business. Our reporting started in 1995 when we issued our first Environmental, Health and Safety Report. Over the years this evolved into our Corporate Social Responsibility Report in 2004. In addition to our reporting, we have received awards for implementing sustainable practices based on environmental, social, and governance considerations, worked to implement new and innovative technologies, and we continue to seek opportunities to create shared value as we work to build a clean and sustainable future for all Arizonans.

 

Learn more about our sustainability history.

 

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