Statement of AEP's Board of Directors
AEP’s Board of Directors demonstrates its commitment to accountability, sustainability and transparency by issuing a statement each year, expressing its support of the company’s annual Corporate Accountability Report and its intent to hold management accountable. The Board began issuing this statement in 2007, when AEP issued its first sustainability report.
The AEP Board of Directors has assigned responsibility for monitoring and overseeing the company’s sustainability initiatives to the Board’s Committee on Directors and Corporate Governance. This is the sixth year AEP has integrated its sustainability reporting with financial reporting. The Committee fully supports this approach. Stakeholders have expressed approval and appreciation for AEP’s leadership with this integrated approach to corporate reporting.
Throughout the year, the Committee and company management reviewed the company’s sustainability objectives, challenges, targets and progress. The Committee reviewed and discussed the final text of this report before its adoption of a formal resolution approving the report.
The AEP Board of Directors receives frequent reports both from management and from the Committee on Directors and Corporate Governance about the company’s sustainability initiatives and from management and Board committees about the company’s financial reporting and economic performance. Topics in this report, including the ongoing transition of the company’s business model, the obligation to provide reliable, affordable service while understanding the need to address climate change in a thoughtful, cost-effective way, the importance of investment in the grid and technology and innovation in meeting our customers’ expectations, understanding that a culture involving engaged employees that maintain the highest level of ethical behavior is a key to the company’s success, having a diverse, balanced generation portfolio, the need to be a good corporate citizen and environmental steward, the prioritization of safety and health, as well as a keen focus on cyber and physical security, have been the subject of active discussion at the Board meetings.
The Committee believes this document is a reasonable and transparent presentation of the company’s plans and of its environmental, social and financial performance. The Board has emphasized to management that it will continue to be evaluated by its success in executing the company’s strategic plan to meet stakeholders’ and the Board’s expectations, including being agile in responding to changing circumstances while respecting the commitments in this report.
Thomas E, Hoaglin
Lead Director of the AEP Board of Directors
April 8, 2015