Updated: March 2022

With increasing levels of interest from investors, customers, communities and employees, social issues such as environmental justice, diversity, equity and inclusion, social justice, race relations and public safety have risen to the forefront of the national discourse. As a result, corporations are considering whether and how to best engage with stakeholders to help address these important issues.

We have been integrating ESG practices into our core work for almost 30 years. As a business strategy, we seek solutions that provide shared value, meaning solutions that address societal and environmental challenges in a way that also delivers business value. Our commitment extends beyond implementing sustainability practices. We are dedicated to working with our stakeholders to identify and address the sustainability issues that we are uniquely positioned to impact through our business.

Board Oversight: The Human Resources Committee periodically reviews and assesses our strategies and policies related to human capital management, such as diversity, inclusion, pay equity, corporate culture, talent development and retention. The Corporate Governance and Public Responsibility Committee is responsible for monitoring and evaluating significant ESG trends that may impact us; ensuring oversight of relevant ESG issues; and making recommendations to the Board, as appropriate. 

Human Capital: We seek to attract the best employees, to retain those employees and to create a safe, inclusive and productive work environment for all employees. We believe the strength of our employees is one of the significant contributors to our success. Our human capital objectives and metrics focus on safety first, together with career development, diversity, equity and inclusion, succession planning, hiring, voluntary turnover, compensation, benefits, employee experience and engagement.

Diversity, Equity and Inclusion: Diversity, equity and inclusion are core cultural principles because we know that diversity of demographics, experience and cultural perspectives are key drivers of success. While our Executive Diversity & Inclusion Council leads this commitment, our focus extends to individual business units within the organization that report on the diversity of their teams during management review meetings to build awareness and address gaps of workforce diversity.

Social Issues Framework: To help drive the conversation around social issues and to align the discussion to our APS Promise and Priority Sustainability Issues (PSIs), we launched a Social Issues Committee and process, the purpose of which is to provide a framework for considering emergent social issues and for determining whether or how to best engage, based on a set of principles grounded in our Promise and our PSIs.

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