Hoosier Energy is one of the first electric cooperatives to incorporate an environmental, social and governance (ESG) framework into all elements of our operations and strategy

At Hoosier Energy, we have always prioritized environmental stewardship, social responsibility and sound governance practices in our daily operations.

Hoosier Energy recognizes the benefits of ESG as a risk mitigation tool to our employees and our members. As the organization matures, the seven cooperative principles will continue to guide our operations. Our updated strategic priorities reflect our increasing emphasis on ESG. We are creating flexibility for our members by expanding the benefits of a cleaner electric grid with more intentional focus on innovative and efficient energy solutions. In addition, more effective collaboration is ramping up across our organization from our workforce throughout our footprint. Today, we’re building a scalable ESG framework that enables better visibility around key issues across the organization. Together, we are powering a better tomorrow.

OUR ENVIRONMENTAL FOCUS

As a community-built organization, we are committed to being good stewards of the environment. We’re protecting our natural resources and the environment by investing in low- and zero-emission generation initiatives. Since 2005, Hoosier Energy reduced carbon emissions by more than 47%. We made these reductions by safely transitioning our generation fleet to more diverse resources. As we navigate this transition, we are taking steps to ensure we don’t make compromises on reliability, sustainability and innovation. We remain committed to balancing the pace of our transition to more renewable resources while keeping costs stable for our member systems.

Hoosier Energy is also engaging with environmental and government agencies and local stakeholders. We closely adhere to the environmental policy implemented by our Board of Directors, which includes comprehensive strategies to prevent pollution, minimize waste and conserve the natural resources and habitats in the communities we serve. Our efforts to minimize our environmental footprint are incorporated across all levels of Hoosier Energy, from the low- and carbon-free energy solutions we offer to beneficial electrification programs as well as waste and water resource management initiatives.

Waste Management

Minimizing our waste footprint is one of the most important elements of our environmental stewardship efforts. We routinely provide comprehensive training to employees to ensure all hazardous waste is properly identified, processed and disposed of or recycled. All aspects of our waste management processes are routinely audited through records review, personnel interviews and site inspections.

Waste management processes are overseen by Hoosier Energy’s environmental services department, which also manages our Resource Conservation and Recovery Act (RCRA) program and HAZMAT requirements. The environmental services team organizes annual trainings for staff, submissions of annual reports, on-site audits, spill responses and mitigation.

Water Resource Management

Water resources are an essential component of maintaining the reliable operation of our generation resources, and we use a range of water conservation strategies to ensure sustainable access to this critical resource. Hoosier Energy is steadfast in our commitment to managing water resources in compliance with all local, state and federal laws and regulations. These efforts include proactively sourcing and using and managing water resources throughout the communities in which we operate. As a rule, we never withdraw or consume water within a high baseline water stress area. In low to moderate stress areas, water consumption is maintained at or below a one-to-one rate.

To provide educational support for local students and residents, we also launched the Environmental Education Center. The facility, which is situated on the grounds of Turtle Creek Reservoir, has a large lab and classroom available to educators, scouting groups and other community members.

Biodiversity

Our commitment to environmental stewardship includes habitat and wildlife protection. Before we plan to build any operating or transmission facility, we make sure we are well educated on the local ecosystem and what needs to be done to ensure its preservation. We carefully consider the presence of any endangered or threatened species and wildlife corridors, wetlands or other ecologically sensitive areas. We take proactive steps to mitigate and minimize the impact of our projects.

In addition to following all federal and state regulations, Hoosier Energy also voluntarily adheres to several policies and programs to protect both threatened and endangered species. We maintain an operations and maintenance agreement with the U.S. Forest Service on the permitted right of way in Hoosier National Forest. We also participate in the U.S. Fish and Wildlife Service Nationwide Candidate Conservation Agreement with Assurances (CCAA) for the monarch butterfly. Through this agreement, we have a unique opportunity to play a vital role in efforts to protect the monarch.

Beneficial Electrification

In recent years, new technologies have emerged that have the potential to dramatically reduce our environmental impact while benefiting consumers. As the electricity provider for more than 760,000 consumers across central and southern Indiana and southeastern Illinois, Hoosier Energy is identifying ways to incorporate these technologies in homes and businesses throughout our service area. Beneficial electrification refers to the application of electricity to achieve a range of the goals:

  • Saving consumers money over time
  • Benefiting the environment, reducing greenhouse emissions and improving product quality or consumer quality of life
  • Fostering a more resilient electrical grid

Hoosier Energy has identified many opportunities in which residential and commercial users can utilize emerging technologies to achieve beneficial electrification. Our beneficial electrification pilots have evolved into wide-reaching programs that are providing clean, affordable electric alternatives that benefit consumers while helping us learn how these technologies work in our system. We’ve also launched Why Electrify, a new website designed to serve as a one-stop resource for comprehensive information about beneficial electrification and other renewable energy technologies.

SOCIAL RESPONSIBILITY

As a cooperative, our commitment to our employees, member systems and the communities we serve is woven into our fabric. Our people have always been our greatest asset, and we prioritize the health and well-being of our employees across all aspects of our operations. We strive to build an inclusive and collaborative workforce that reflects the seven cooperative principles. We recognize that, for employees to feel empowered, they need to feel safe and respected across all levels of the organization.

Investing in Our Employees

Hoosier Energy takes steps to ensure our employees have consistent opportunities for growth. We support lifelong learning and provide regular opportunities for employees to expand their expertise and capabilities through a range of trainings, events and development programs. These initiatives are supported through tuition assistance, including full reimbursement for university courses and skill development programs. We’ve also partnered with Indiana State University to develop the Certificate in Emerging Energy Technology program, which is designed to retrain Hoosier Energy employees who are interested in pursuing new roles in the electric transmission and distribution field.

Building a Culture of Safety

Responsibility for employee safety is shared through all lines of our operation. Our approach to workplace safety is founded upon industry best practices. We ensure our employees are aware of all risks associated with their specific tasks through regular training and communications, including our company-wide initiative. We pinpoint all potential hazards through job safety analyses and assessments at each work location. These inspections ensure the safety of our people. We also work closely with safety committees comprised of a diverse subset of our employees.

Our decades-long record of safe operations is directly attributable to the proactive steps we take to educate our staff. Since 2018, we’ve seen a 50% improvement in safety performance, and we’re committed to continuing to improve our record.

Commitment to Community

As a cooperative, Hoosier Energy is deeply integrated in the communities we serve. We do this through outreach and by seeking out opportunities to serve local needs. Our community involvement is structured around four primary pillars:

  • Education and workforce opportunities
  • Health and well-being
  • Community quality of life
  • Employee philanthropic initiatives

In addition to serving our member communities, Hoosier Energy has banded together with other Indiana electric co-ops to bring electricity to remote villages in Guatemala. Through this effort, dubbed , we are bringing power to these underdeveloped areas and, by extension, delivering hope, progress and opportunity to these villages. As part of the COVID-19 pandemic, we also partnered with CoBank and the One Southern Indiana Cares program to generate funds on behalf of the Small Business Emergency Forgivable Loan Program, an initiative aimed at providing relief to struggling businesses.

OUR GOVERNANCE AND LEADERSHIP

One of the inherent strengths of the cooperative model is its democratic structure. Hoosier Energy is grounded in the democratic process. Our members all have equal influence over our direction. Hoosier Energy is owned by 18 member systems, and our Board of Directors is directly appointed by our members. Unlike privately owned electric utilities, our members are the driving force behind our strategy and business, not distant shareholders who are removed from the day-to-day impact of their decisions.

A Democratic History

Our democratic structure ensures members have regular opportunities to engage with Hoosier Energy leaders, regardless of the member’s size or location. Members also have a voice in shaping the future of our cooperative through our three standing committees: Finance & Audit, Employee Relations and Operations. Beyond our board committees, an association of member managers and leaders also have routine opportunities to review and provide input on our performance while voicing their priorities. All members have a voice in shaping the direction of Hoosier Energy to ensure the needs of their communities are being met.

Financial Integrity & Strength

As a result of Hoosier Energy’s strategies and operations, we maintain a healthy financial posture that is on par with other highly rated peer generation and transmission (G&Ts) cooperatives. By developing an affordable and reliable resource portfolio, wholesale rates are projected to decrease over the next five years. We also maintain A credit ratings, ensuring we have the ability to continue making decisions that help us secure reliable, affordable and responsible energy.

Putting Annual Earnings to Use

As part of our cooperative model, Hoosier Energy provides at-cost service to our member systems. Any earnings after operating costs, also called margins, are used to ensure we have adequate funds to operate the business. In some cases, our board may approve returning margins, which are also called capital credits, to our member systems. This practice is called patronage. Since 2000, Hoosier Energy has distributed capital credits to eligible member systems every year. Patronage represents our financial stewardship and serves as tangible evidence of the cooperative model.

Public Policy

Legislative and regulatory matters regularly impact our business, especially in the areas of portfolio transition and environment management. We closely collaborate with the Indiana Electric Cooperatives, the Association of Illinois Electric Cooperatives and the National Rural Electric Cooperative Association to safeguard our members’ interests when addressing public policy.

We also maintain a robust network of relationships with stakeholders across local, state and federal levels. These relationships ensure we can advocate for our members and raise awareness of issues impacting rural electric cooperatives.

OUR ESG JOURNEY

As Hoosier Energy continues to develop new programs and priorities as part of our emphasis on environmental, social and governance framework, we plan to publish routine data on our progress. Below is a snapshot of current data.

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