Ameren Corporation · NYSE:AEE
Ameren — ESG Presentation (May 2022)
61 slides from Ameren's sustainability presentation, May 2022
Slide 1: Leading the Way to a Sustainable Energy Future
Leading the Way to a Sustainable Energy Future Environmental, Social & Governance (ESG) May 2022
Slide 2: Cautionary Statements
Cautionary Statements Use of Non-GAAP Financial Measures In this presentation, Ameren has presented weather-normalized and core earnings per share, which are non-GAAP financial measures and may not be comparable to those of other companies. A reconciliation of GAAP to non-GAAP information is include
Slide 3: Company Description
Company Description Fully rate-regulated electric and natural gas utility Ameren Businesses 2.4M electric Ameren Missouri customers • Electric transmission, distribution, and generation business and a natural gas distribution business in Missouri regulated by MoPSC 0.9M gas • Serves 1.2 million elec
Slide 4: How We Integrate Sustainability
How We Integrate Sustainability Leading the Way to a Sustainable Energy Future | May 2022 4
Slide 5: How We Think About Sustainability
How We Think About Sustainability ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT Operating to reduce emissions and Placing people at the center of waste and preserving natural everything we do by supporting resources while providing safe, Vision: customers, empowering co- reliable, and affordable electric
Slide 6: Strong Organizational Focus on Sustainability
Strong Organizational Focus on Sustainability Gwen Mizell Ajay Arora Chonda Nwamu Mark Fronmueller Eric Seidler Chief Sustainability VP, Chief Renewable SVP, General SVP, Strategy, Innovation, SVP, Supply Chain, and Diversity Officer Development Officer Counsel & Secretary Sustainability & Risk Corp
Slide 7: How We View Sustainability Pillars and Risks
How We View Sustainability Pillars and Risks SUSTAINABLE PILLARS ENVIRONMENTAL SOCIAL IMPACT GOVERNANCE GROWTH • Board Composition and Committee Oversight • Infrastructure Investment • Climate Change • Incentive Compensation • Community Impact • Disciplined Cost KEY • Emissions Reductions • Data Pri
Slide 8: Our Sustainability Value Proposition
Our Sustainability Value Proposition ENVIRONMENTAL STEWARDSHIP SOCIAL IMPACT • Accelerating transition to a cleaner and more diverse portfolio1 • Delivered value to customers in 2021 while focused on safety ‒ Target carbon reductions from 2005 levels: 50% by 2030; 85% by 2040; net- ‒ Improved reliab
Slide 9: Solid ESG Ratings
Solid ESG Ratings A AAA 0 Dec. 2021 Dec. 2021 May 2021 A- Water 29.1 A Medium Risk Climate B Range: A-F Range: Range: (A is best) AAA-CCC 0-100 (AAA is best) (Lower is better) F CCC 100 Leading the Way to a Sustainable Energy Future | May 2022 9
Slide 10: Environmental Stewardship
Environmental Stewardship 10
Slide 11: Our Focus on Delivering a Cleaner Energy Future Responsibly
Our Focus on Delivering a Cleaner Energy Future Responsibly1 While providing safe, reliable and affordable energy to customers • Climate risk management and mitigation – Targeting significant reductions in greenhouse gases 2 – Implementing robust customer energy efficiency programs – Investing to mo
Slide 12: Ameren Missouri Generation Transformation
Ameren Missouri Generation Transformation1 Transition to a cleaner and more diverse portfolio in a responsible fashion 2 50% CARBON EMISSIONS 85% CARBON EMISSIONS NET-ZERO CARBON REDUCTION3,4 REDUCTION3,4 EMISSIONS3,4 • Ameren Missouri filed its preferred Integrated Resource Plan with the MoPSC in S
Slide 13: Targeting Net-Zero Carbon Emissions by 2050
Targeting Net-Zero Carbon Emissions by 20501 Executing on transformation that will ultimately replace fossil fuels with clean sources of energy Ameren Missouri's Expected Sources of Energy based on 2020 IRP2 Current 2030 2040 2050 12% 3% 25% 25% 27% 17% 46% 5% 30% 58% 69% 25% 1% 53% 4% Coal Gas Rene
Slide 14: Targeting Net-Zero Carbon Emissions by 2050, Cont'd
Targeting Net-Zero Carbon Emissions by 20501, Cont’d Executing on transformation that will ultimately replace fossil fuels with clean sources of energy Ameren Missouri's Expected Sources of Energy to Retail Customers based on 2020 IRP2 Current 2030 2040 2050 12% 27% 18% 3% 31% 33% 29% 61% 30% 58% 5%
Slide 15: Ameren Carbon Emissions Pathways vs. Global Net Carbon Pathways
Ameren Carbon Emissions Pathways vs. Global Net Carbon Pathways1 Our plan is consistent with Paris Agreement2 60 Our net-zero carbon emissions3 goal is consistent with the objectives of Million Metric Tons CO2 50 the Paris Agreement and limiting 40 global temperature rise to 1.5ºC 30 20 10 - 2020 20
Slide 16: Missouri Renewable Energy Investments
Missouri Renewable Energy Investments Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment 300 MW Atchison Renewable Energy 400 MW High Prairie Renewable Energy Center located in northwest Missouri Center located in northeast Mi
Slide 17: Robust and Cost-Effective Energy Efficiency and Demand Response Programs
Robust and Cost-Effective Energy Efficiency and Demand Response Programs1 • Energy efficiency programs generated over $4 billion in net benefits for all customers from 2011 to 2020 • Robust energy efficiency programs have helped residential and business customers save more than 5,800,000 MWh from 20
Slide 18: Transmission Investment to Support Transition to Clean Energy
Transmission Investment to Support Transition to Clean Energy Ameren Regionally Beneficial Projects • Regionally Beneficial Projects – Illinois Rivers Project – In-service Dec. 2020 • 375 miles of new transmission lines crossing Illinois; 10 new substations • Single largest construction project sinc
Slide 19: MISO Long-Range Transmission Planning Roadmap
MISO Long-Range Transmission Planning Roadmap Creating and capitalizing on opportunities for investment for the benefit of our customers, shareholders and the environment Ameren Transmission • In Apr. 2021, MISO issued report outlining preliminary long- range transmission planning roadmap through 20
Slide 20: Callaway Nuclear Operations
Callaway Nuclear Operations • Strong safety performance • Historically strong operating performance – Extended operating license through 2044 – Replaced major plant components, including steam generators, generator stator and rotor and reactor vessel head – Expect to seek an extension of operating l
Slide 21: Environmental Stewardship – Coal-Fired Energy Centers
Environmental Stewardship – Coal-Fired Energy Centers CO2 emissions reduction NOx emissions reduction SO2 emissions reduction Mercury emissions (generation): 32%1 (generation): (generation): reduction (generation): 55% below 2005 level1 67% below 2005 level1 91% below 2005 level1 77% below EPA stand
Slide 22: Focusing on Resource Management
Focusing on Resource Management Electrification: Methane Emissions Reduction: Biodiversity: Founding members of the National Replacement of 100% of cast, wrought iron and Manage thousands of acres of land to Electric Highway Coalition, supporting unprotected steel on our natural gas delivery system
Slide 23: Social Impact
Social Impact 23
Slide 24: Our Focus on Social Responsibility
Our Focus on Social Responsibility • Supporting an All In Culture for co-workers – Focusing on safety first while creating a more equitable, diverse and inclusive workforce – Offering a variety of programs for individual development of co-workers • Delivering value to our customers – Providing safe,
Slide 25: Workforce at a Glance
Workforce at a Glance Our Diversity Strengthens Us 9,100 Co-Workers Strong1 Senior Leadership3 Total Workforce 48% bargaining Gender 24% female Bargaining Gender 22% female Unit 52% management Diversity 76% male Diversity 78% male Race/Ethnic Diversity2 84% 11% 2% 1% 1% <1% <1% White Black or Africa
Slide 26: Focused on Safety of Our Co-Workers
Focused on Safety of Our Co-Workers • Safety is a core value at Ameren — one that is never compromised • Among the highest-scoring items on 2021 co-worker engagement survey • The number of days lost due to injuries is down 21% from 2016 to 2021 • Co-worker to co-worker (c2c) interactions are designe
Slide 27: Our Co-Workers Support an All In Culture
Our Co-Workers Support an All In Culture Delivering on our mission through our values, our culture and our people • Our values and All In culture, foundational to how we work and make decisions every day, are built around care for one another and that begins with listening • Ameren’s Listening Strat
Slide 28: Creating a More Diverse, Equitable and Inclusive Workplace
Creating a More Diverse, Equitable and Inclusive Workplace / Advancing Co-Worker Competencies • DE&I is one of our core values – Executive DE&I Council, led by Executive Leadership Team, drives DE&I as a core value throughout the organization – Created DE&I Executive Steering Committee comprised of
Slide 29: Building Diverse Workforce Pipelines
Building Diverse Workforce Pipelines Early-Career Pipeline Initiatives Purpose: Create a diverse talent pipeline for entry-level hiring needs and critical skill (typically skilled craft and STEM) roles – Ameren’s Collegiate Program participants receive hands-on experience, bolster their knowledge of
Slide 30: Results from Our Company-Wide Workforce Development
Results from Our Company-Wide Workforce Development Co-worker Engagement: ConvERGing Program: McKinsey Management Mentoring (Learning from Others) Over 64% participation in Over 1,600 co-workers Accelerator: Over 2,000 co-workers participate 2021VPQ engagement survey participated and committed Proud
Slide 31: Delivering Strong Value to our Customers
Delivering Strong Value to our Customers Achieving top quartile performance in reliability, affordability and satisfaction Increased Customer Outage Improved Reliability1 Affordable Rates2 Frequency Satisfaction3 JD Power (per customer per year) +12% ¢/KWh Score +23% 1.00 Better 15 Better 773 766 75
Slide 32: Building a Brighter and Cleaner Energy Future
Building a Brighter and Cleaner Energy Future Innovative Programs to Meet Customer Needs and Rising Expectations Utility-owned solar Subscription program generation facilities for MO available to MO residential non-residential customer Neighborhood Community and small business parking lots, open lan
Slide 33: Reducing Energy Burden for Income-Eligible Customers
Reducing Energy Burden for Income-Eligible Customers • Invested over $110 million in income-eligible customer programs from 2019-2021 through energy efficiency and energy assistance • Incentivized over 43,000 free smart thermostats, providing customers better control over their energy usage, in 2021
Slide 34: Supporting Our Communities through Corporate Contributions
Supporting Our Communities through Corporate Contributions • More than $30 million distributed in cash and in- kind donations from 2019-2021 • 5% of total philanthropic outlay in 2021 dedicated to environment, biodiversity and conservation- focused organizations • Over 35 United Way organizations ac
Slide 35: Significantly Supporting Supplier Diversity in 2021
Significantly Supporting Supplier Diversity in 2021 11% increase over 2020 diverse spend Ameren invests in diverse suppliers who provide high quality products and services, including professional services. Penserra is a growing broker-dealer and investment banking firm serving institutional investor
Slide 36: Supporting DE&I in Our Company, Communities, Industry and Country
Supporting DE&I in Our Company, Communities, Industry and Country • Committing to country- and industry-wide pledges – Aligned with the Edison Electric Institute Framework for Advancing Racial and Social Justice, Diversity, Equity, and Inclusion – Signed to CEO Action for Diversity and Inclusion to
Slide 37: Recent ESG Recognitions
Recent ESG Recognitions • 2022 Best Places to Work for LGBTQ Equality by the Human Rights Campaign; 6th consecutive year achieving perfect score • 2022 DiversityInc: A Top Company for ESG for 3rd consecutive year; A Top Company for Veterans and A Top Company for Black Executives • 2022 DiversityInc:
Slide 38: Governance
Governance 38
Slide 39: Our Focus to Maintain Strong Corporate Governance
Our Focus to Maintain Strong Corporate Governance • ESG matters managed at all levels Ameren’s Executive Leadership Team – Management-level accountability through Executive Leadership Team, Sustainability Executive Steering Committee and Sustainability, DE&I and Corporate Philanthropy Department – O
Slide 40: Diverse, Highly Skilled Board of Directors
Diverse, Highly Skilled Board of Directors Warner L. Cynthia J. Catherine S. J. Edward Ward H. Noelle K. Ellen M. Rafael Richard J. James C. Steven H. Martin J. Leo S. Qualifications and Experiences Baxter Brinkley Brune Coleman Dickson Eder Fitzsimmons Flores Harshman Craig S. Ivey Johnson Lipstein
Slide 41: Board of Directors Composition and Leadership Highlights
Board of Directors Composition and Leadership Highlights • 14 members; all independent except for Executive Chairman and President & CEO – Corporate Governance Guidelines require substantial majority of the board to be independent – Only independent directors serve on standing board committees • BOD
Slide 42: Board of Directors-Level Governance of Sustainability
Board of Directors-Level Governance of Sustainability Strong oversight of sustainability and ESG matters Ameren’s Board of Directors oversees all significant enterprise risks, including those related to sustainability and ESG matters. It has specifically delegated oversight of certain sustainability
Slide 43: Management-Level Governance of Sustainability
Management-Level Governance of Sustainability Management Accountability Organizational Inputs and Interfaces Leads the company’s approach to managing ESG matters. Responsibilities Senior executives across all business Sustainability, DE&I include leadership of corporate DE&I strategy, identification
Slide 44: Executive Compensation Program – Ties to Sustainability
Executive Compensation Program – Ties to Sustainability The objective of Ameren's executive compensation program is to provide a competitive total compensation program based on the size- adjusted median compared to similar utility companies, adjusted for individual performance. Ameren’s short- and l
Slide 45: Political Contributions Accountability and Disclosure
Political Contributions Accountability and Disclosure • 2nd among utilities and 2nd highest score overall (97.1%) in the 2021 CPA-Zicklin Index for Corporate Political Disclosure and Accountability • Board of Directors-approved Political Contributions Policy – Annual contribution limit established b
Slide 46: Cybersecurity Risk Management
Cybersecurity Risk Management Robust enterprise-wide security program focused on safety • Robust governance and oversight of cybersecurity matters – Dedicated cybersecurity sessions with the Audit and Risk Committee of Ameren’s Board of Directors multiple times a year – Key performance metrics and c
Slide 47: Sustainable Growth
Sustainable Growth 47
Slide 48: Our Value Proposition for Customers, Shareholders and the Environment
Our Value Proposition for Customers, Shareholders and the Environment Attractive dividend Strong long-term and long-term dividend growth Attractive total growth outlook outlook return potential • Expect 6% to 8% EPS CAGR 2022-20261,2 • Annualized equivalent dividend rate of • Track record of deliver
Slide 49: Strong Track Record of EPS and Dividend Growth
Strong Track Record of EPS and Dividend Growth Weather-Normalized Core Dividends Paid per Share3 Total Shareholder Earnings per Diluted Share1 and Payout as a % of WN EPS Return $4.25 +84% or $2.40 ~+38% 2013 to 2021 $4.00 $2.36 | 58% ~8% CAGR $4.05 2013 to 2021 $3.75 $2.20 220% 2013 to 2021 $3.82 2
Slide 50: Investing in the Energy Grid
Investing in the Energy Grid • Investing to modernize energy grid, making it cleaner, safer, more reliable, resilient and secure – Expect greater transmission investments to support additional renewable generation – Provide customers with new and improved tools to manage energy usage 2021-2026E Regu
Slide 51: Robust Investment Opportunities Across All Businesses Over Next Decade
Robust Investment Opportunities Across All Businesses Over Next Decade Modernizing the grid and investing in cleaner generation Investment Plan 2022-2026 ($ billions) $45B+ $17.3 Strong Pipeline of Regulated Infrastructure Investments $3.5 2022-2031 $1.8 Additional Investment $3.1 Opportunities • Mo
Slide 52: Sustainability Financing Framework and Green Bond Issuances
Sustainability Financing Framework and Green Bond Issuances • On June 2, 2021, Ameren published a Sustainability Financing Framework; one of the first utilities in the nation to do so – Framework supports Ameren’s sustainability goals and target of net-zero carbon emissions by 20501, as well as soci
Slide 53: Additional Growth Initiatives: Economic Development
Additional Growth Initiatives: Economic Development • Ameren’s role in economic development is to support our state, regional and local community partners to bring new capital investment and job creation to the communities we serve – Ameren has been ranked as a top utility in economic development in
Slide 54: Additional Growth Initiatives: Electrification
Additional Growth Initiatives: Electrification • Ameren Missouri and Ameren Illinois pledged to support the development of an EV fast charging network along major transportation corridors – Founding members of the National Electric Highway Coalition, a group of over 50 electric utilities pledged to
Slide 55: Appendix
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Slide 56: Additional Sustainability Resources
Additional Sustainability Resources Available at www.amereninvestors.com (hyperlinked below) • 2020 Integrated Resource Plan • Sustainability Financing Framework • Sustainability Accounting Standards Board (SASB) Report 2022 COMMUNICATIONS • Task Force on Climate-Related Financial Disclosures (TCFD)
Slide 57: Company-Wide Governance of Sustainability
Company-Wide Governance of Sustainability Current policies available at www.amereninvestors.com (hyperlinked below) Environmental Policy Human Rights Policy Statement Integrate environmental management and Demonstrates respect for human rights in the sustainability principles into our operations, wa
Slide 58: Ameren's Estimated Coal-Related Revenues in 2021
Ameren’s Estimated Coal-Related Revenues in 2021 Return on Investment Revenues Cost Recovery3 Revenues $2.1B1 x $2.1B1 x ($103M $423M + 52% x 48% x x 25%) / $161M x $147M + 9.53%2 = 4.5% = (1 - 25%) 26%1 = $154M = $103M $45M $34M $42M $724M $6,394M 15% Return on Interest Tax Expense Property Fuel, o
Slide 59: GAAP to Core Earnings Per Share Reconciliations
GAAP to Core Earnings Per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 GAAP Earnings / Diluted EPS $1.18 $2.40 $2.59 $2.68 $2.14 $3.32 $3.35 $3.50 $3.84 Exclude results from discontinued operations 0.87 — (0.01) — — — — — — Less: Income tax benefit / expense
Slide 60: Weather-Normalized Earnings per Share Reconciliations
Weather-Normalized Earnings per Share Reconciliations Year Ended Dec. 31, 2013 2014 2015 2016 2017 2018 2019 2020 2021 Core1 Diluted EPS $2.10 $2.40 $2.56 $2.68 $2.83 $3.37 $3.35 $3.50 $3.84 Ameren Missouri weather impact included in margins 0.03 0.05 (0.04) 0.16 (0.07) 0.43 0.04 (0.05) 0.02 Less: I
Slide 61: Glossary of Terms and Abbreviations
Glossary of Terms and Abbreviations AGA – American Gas Association Hg – Mercury ATXI – Ameren Transmission Company of Illinois GAAP – Generally Accepted Accounting Principles BOD – Board of Directors ICC – Illinois Commerce Commission C – Celsius IRP – Integrated Resource Plan C&I – Commercial & Ind