| 4.1 - Environmental Commitment Statement 4.2 - Sustainability Strategy 4.3 - Materiality 4.4 - Challenges |
4.1 Environmental Commitment Statement
As a company, we pledge to:
- Be a leader in our industry in providing clean, renewable energy resources;
- Develop products and services that help our customers protect the environment;
- Improve our environmental performance continuously;
- Prepare periodic reports to assess our environmental programs;
- Meet or exceed the requirements of all environmental laws, regulations and permits;
- Promote the efficient use of energy and other resources in the workplace and in homes;
- Inform ourselves about our suppliers and products we buy and whether they protect the environment, public health and public safety;
- Educate employees and our customers about environmentally sound practices;
- Manage company-owned lands and natural resources through sustainable practices;
- Ensure that each employee recognizes his or her responsibility to our overall environmental performance; and
- Help each employee consider the environmental impact of his or her everyday business decisions.
We continuously strive to apply this environmental commitment statement across the entire company. SD 4.8
4.2 Sustainability Strategy
Our sustainability strategy is closely intertwined with the material issues facing our Company. We know that climate change is an important issue for our stakeholders; therefore, our chosen power mix reflects this. Also, our commitment to our communities is reflected in the way we structure our corporate giving, community outreach programs, and educational programs. Green Mountain Power’s long-term goals of reliability, customer service, environmental stewardship, and social responsibility shape our strategic plans and are reflected in our day-to-day actions. This entire report reflects our sustainability strategy, how this strategy has been successful, where it needs improvement, and how our strategy has changed over time.
SD 1.1.2 and 1.1.3
4.3 Materiality
One of the new aspects to our sustainability reporting is a renewed focus on materiality. In preparation of this year’s report, we went through a rigorous process to identify and prioritize material issues that may impact the sustainability of Green Mountain Power, including significant economic, environmental, and social impacts. These material issues also represent the key risks and opportunities of sustainability for our Company. SD 1.2.5 In this year’s report, the “top ten” material issues that we identified are included, as well as further descriptions of the top three issues. A variety of data points and information were used to determine Green Mountain Power’s material issues, including various GRI indicator metrics, stakeholder engagement, and the overall strategic plan for the Company. SD 3.5
4.3.1 Top 10 Material Issues
Based on the materiality assessment, we have identified the following “Top 10” material issues facing the organization (note these are not listed in order of materiality or importance). SD 1.2.6
- Climate Change Risk Issue A: greenhouse gas emissions from operations, transportation, and other activities at Green Mountain Power; Green Mountain Power signed the Climate Call to Action 2007 and is expected to respond to climate change risks in a manner consistent with the Call’s goals and targets.
- Climate Change Risk Issue B: How will Green Mountain Power maintain its renewable-rich power mix when the Vermont Yankee and Hydro-Québec contracts expire?
- Contracting and Supply Chain Practices: a need exists to formalize sustainable purchasing policies and assess environmental and/or sustainability performance of suppliers and subcontractors (e.g., power contracts).
- Potential environmental impacts from nuclear power.
- Merger with Gaz Métro: potential future risks if Gaz Métro purchases other utilities; current employee concerns about merger.
- Potential financial risk if key customers move out of the area.
- Maintain core competencies of organization (e.g., reliable power, exemplary customer service, and financial strength) while maintaining the current level of employee satisfaction.
- Routine operational risks associated with power generation; regulatory risks, spills, injuries, etc.
- Manage the effect on electric system reliability cause by extreme weather conditions associated with climate change.
- Reduce use of resources such as paper and water.
Please note that some of these material issues have shorter time frames (e.g., Gaz Métro merger), while others are more long-term (expiration of power contracts).
SD 1.2.5
Of the issues listed above, the following three represent the most materiality, or significance, based on the materiality guidelines specified in the G3 guidelines:
- Climate Change Risk[1]
- Contracting and Supply Chain Practices
- Merger with Gaz Métro
Please note that, due to their importance, these issues are addressed in detail in Section 1 of this report, including any goals that Green Mountain Power has established relative to these issues.
4.4 Challenges
Our stakeholders told us that we should include a candid discussion of our challenges in this year’s sustainability report. It is not surprising that many of the challenges we face as a company are closely intertwined with our top material issues – climate change and our power contracts. Green Mountain Power continuously reviews its energy policy, including some of the most pressing challenges, including the following:
- The State of Vermont has a small carbon footprint, due to reliance on nuclear and hydro power. However, Green Mountain Power’s contracts with the nuclear supplier and the major hydro supplier are due to expire in 5-8 years.
- Vermont generates less electricity than it consumes and nationally, we are dependent on foreign oil.
- When Green Mountain Power built the Searsburg wind facility in 1997, Vermont was leading the nation. Now, Vermont lags behind the rest of the country with respect to development of new wind facilities. Wind development costs in Vermont are estimated to be five times higher than the national average, and new resource development in Vermont and New England is very slow.
- How do we achieve environmental goals without creating a competitive disadvantage? Energy prices differ by region. Where there is coal or large subsidized hydropower, electricity is cheaper. Energy prices in Vermont and New England create a competitive disadvantage for energy-intensive businesses, offsetting other regional advantages.
SD 1.1.4
