Green Rankings 2012: Utilities

Some of the largest utilities are addressing their environmental impact by deploying company-wide energy-efficiency programs, adopting alternative energy and clean-technology solutions and helping their customers reduce energy purchases. In the face of water scarcity and rising costs, leading companies are not only responding with comprehensive water-management systems but are also disclosing related risks and opportunities in their financial filings. Despite these efforts, the industry remains a major emitter of harmful pollutants such as carbon dioxide, sulfur dioxide, nitrous oxide and mercury. Few companies in the industry have long-term reduction plans that extend beyond a compliance-based approach.

Key Industry Impacts

• Water use, greenhouse gas emissions, general waste generation and disposal combined account for more than 88 percent of the total environmental footprint of Utility companies.

• The industry accounts for 17 percent of the total greenhouse emissions, and 14 percent of all natural-resource use among all of the companies ranked.

• About 16 percent of the total environmental impact of companies ranked comes from this industry.

Critical Issue: Climate Change

Fuel combustion for power generation releases air emissions associated with climate change. In the United States alone, the power industry accounts for more than one-third of total greenhouse gas emissions. As such, utilities are increasingly subject to stringent national and international regulations, protocols and trading schemes aimed at mitigating climate change. These constraints are part of a new energy era that demands a reduced dependence on fossil fuels and subsequent provision of a low-carbon energy supply. Many utilities are evolving toward this new business model, yet the pace of adaptation—whether through capital investments or technological innovations—remains too slow.

Industry Ranking: How U.S. Utilities Companies Stack Up