This is American Electric Power's second Corporate Sustainability Report containing
information about the company's economic, environmental and social policies and
performance. It is a comprehensive report offering frank discussion about our performance
and our strategies for sustainability. It is supported by substantive information
that identifies our challenges, risks and opportunities. In preparing this report,
we identified seven issues that we believe are most critical to our sustainability
and we have structured our report to reflect them.
This report was developed according to the Global Reporting Initiative (GRI)Sustainability Reporting Guidelines
Version 3.0 (G3) and meets the content requirements of Application
Level B. Our GRI elements were reviewed by and our Application Level B was affirmed
by GRI. The GRI guidelines provide a voluntary reporting framework used by organizations
around the world as the basis for sustainability reporting. We are using the
new G3 standards, as well as some indicators being developed for the new Electric
Utility Sector Supplement, which is still in draft form. This is the second time
AEP has reported on economic, environmental and social performance in one report.
Previously, the company issued a 2006 Corporate Responsibility Report.
For more information about this report, including our GRI information, or the company's
sustainability initiative, please contact Sandy Nessing at
smnessing@aep.com.
The AEP Board of Directors has assigned the responsibility for monitoring and overseeing
the company's sustainability initiatives to the Board's Committee on Directors and
Corporate Governance. That Committee met twice in the past year with company management
to review the company's sustainability objectives, challenges, targets and progress.
That Committee gave management input and guidance for the proposed approach to this
report, and then reviewed and discussed the final text of this report before recommending
its approval by the full Board of Directors.
The AEP Board of Directors has received periodic reports both from management and
from the Committee on Directors and Corporate Governance about the company's sustainability
initiatives. Many of the topics in this report have been the subject of active discussion
at Board and Committee meetings. Members of the Board all received copies of this
report before it was published and several directors made suggestions that have
been incorporated into this report. Following its review, and upon recommendation
of the Committee, the Board of Directors adopted a formal resolution approving this
report.
The Board believes this report is a reasonable and transparent presentation of the
company's plans and performance and their environmental, social and financial impacts.
While pleased with progress to date, the Board expects and requires higher performance
in the future. The Board has emphasized to management that it will be evaluated
by its success in executing the company's strategic plan to meet stakeholders' and
the Board's expectations, including specifically the commitments in this report.
Lester A Hudson, Jr.
Presiding Director of the AEP Board of Directors
