Lightning Round on Power's Future

Deck: 

Guidehouse

Fortnightly Magazine - June 8 2021
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What impact will ESG have on the utility enterprise over the next decade? How can the industry more effectively meet evolving societal, shareholder, and board expectations? What tangible steps can utilities take today?

Ted Walker: Utilities can leverage ESG to evolve in two different but related ways:

As strong ESG-focused enterprises to investors and regulators, and as ESG partners to meet the changing demands of their customers and communities.

Shareholders and company boards are demanding that utilities adopt strong ESG positioning across the organization. Guidehouse research has shown that investor-owned utilities with strong ESG plans and roadmaps have higher, and in some cases more stable, valuations than those that do not. An ESG strategy will need to build tangible enterprise value; utilities with ESG plans that are merely window dressing will be highly discounted.

Utilities are trailing commercial and industrial as well as municipality, university, school, and hospital customers in developing ESG plans. By positioning themselves as partners in ESG, utilities can work with these customers to develop and provide more optimized solutions.

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