HEI Releases First Consolidated Environmental, Social and Governance (ESG) Report New data provides insights into company's commitment to sustainable operations, diversity, community focus and progress to-date
HONOLULU, Sept. 15, 2020 /PRNewswire/ -- Hawaiian Electric Industries, Inc. (HEI) (NYSE: HE) today released its first consolidated report describing its policies, actions and performance data with respect to environmental, social and governance and sustainability-related matters. Such reports are frequently referred to as "ESG" reports and are becoming increasingly common as investors seek to understand how public companies are impacting the environment and society, as well as potential opportunities and risks to companies' long-term financial and operational strength.
"We're proud to issue our first consolidated HEI ESG report to help customers, employees, investors and other stakeholders understand how HEI's strategies and operations advance ESG outcomes and create long-term value for all stakeholders," said Connie Lau, HEI president and CEO.
"While this is our first consolidated HEI ESG report, ESG principles and sustainability have long been fundamental values of HEI, so much so that we've often said that ESG is in our DNA. With all of our operations in the middle of the Pacific Ocean, we know that our company's long-term health is inextricably linked with the strength of the economy, communities, and environment of the Hawaiian Islands. This linkage is all the more clear in the context of the COVID-19 pandemic, and we're working hard to help our customers, employees and communities through this period and to help our economy recover," said Lau.
The new report is aligned with Sustainability Accounting Standards Board (SASB) disclosure standards relevant to HEI's utility and bank subsidiaries. The report reflects HEI's commitment to transparency and the growing emphasis that investors, credit rating agencies, individual shareholders and community organizations are placing on ESG performance data. In future reports, as HEI continues to evolve its ESG reporting, the company plans to incorporate disclosures aligned with Task Force on Climate-related Financial Disclosures (TCFD) guidance.
The report describes HEI's efforts to strengthen and diversify Hawaii's economy, help develop the kind of workforce HEI and Hawaii will need to meet future challenges and ensure that the benefits of renewable energy are shared by all.
Highlights in HEI's first consolidated ESG report include:
Comprehensive and continuing COVID-19 response. Throughout the pandemic we have worked to ensure uninterrupted essential services, protect employee and customer safety, offer solutions to assist customers experiencing financial hardship, and support our communities. These efforts, among many others, include our utility's suspensions of electricity disconnections for nonpayment, our bank's deployment of more than $370 million in Paycheck Protection Program loans for approximately 4,100 small businesses representing an estimated 40,000+ jobs, and our companies' and employees' collective contribution of $1 million to community groups assisting individuals and families who have been negatively impacted by the pandemic.
Advancing among the nation's most ambitious renewable energy goals. Our utility, Hawaiian Electric, is at the center of efforts to achieve Hawaii's 100% renewable energy and carbon neutral economy goals by 2045. Hawaiian Electric is on track to meet or exceed the state's 30% renewable portfolio standard (RPS) goal for 2020. For the 2020-22 period, executive compensation is linked to achieving 40-50% RPS well ahead of the next state goal of 40% by 2030.
Building resilience and managing climate change risk. We're focused on managing and mitigating resilience risks presented by climate change. Our efforts include our utility's use of state-of-the-art climate analytics to inform its infrastructure plans and our bank's underwriting practices and ongoing monitoring of its loan portfolio with respect to sea level rise and flood-related risk. We're also working to engage our communities in critical discussions about resilience needs and emergency preparedness.
Diverse workforce across utility and bank. Our talented and highly diverse workforce reflects the unique diversity of Hawaii and is crucial to our long-term success. At our utility, 89% of all employees and almost 69% of executives are racially diverse, and 29% of employees and nearly 38% of executives are female. At our bank, nearly 88% of our teammates and 70% of executives are racially diverse, and almost 70% of teammates and 40% of executives are female. We're committed to continuing to strengthen our practices to ensure a diverse and inclusive culture throughout the HEI family of companies.
To review the HEI ESG report in its entirety, go to hei.com/esg.
HEI supplies power to approximately 95% of Hawaii's population through its electric utility, Hawaiian Electric; provides a wide array of banking and other financial services to consumers and businesses through American Savings Bank, one of Hawaii's largest financial institutions; and helps advance Hawaii's clean energy and sustainability goals through investments by its non-regulated subsidiary, Pacific Current, LLC.