PSEG announced today that it has joined the Business Ambition for 1.5°C and the Race to Zero campaigns and commits to developing science-based targets. The Race to Zero and Business Ambition for 1.5°C campaigns are designed to help mobilize support from businesses, cities, regions and investors for a healthy and resilient zero-carbon economy in line with global efforts to limit warming to 1.5°C.
“Climate change is one of the preeminent challenges of our time, and PSEG has an obligation to help address climate change and its effect on our environment, our customers and communities around the world,” PSEG Chairman, President and CEO Ralph Izzo said. “As part of our vision of achieving net-zero emissions by 2030, PSEG has already made significant emissions reductions in our operations. Today, we are taking the next step by joining the Race to Zero and committing to develop science-based targets to help address the worst effects of climate change, particularly for vulnerable populations.”
Also today, PSEG launched its combined 2021 Sustainability and Climate Report, available here, with updates on the company’s achievements and goals for a wide range of topics including air emissions, energy efficiency, transportation and waste minimization. In 2020, PSEG’s generation portfolio emission rates for NOx and SO2 were down year-over-year by 58% and 77% respectively, reflecting emission rates that are significantly below industry averagesi. The report also includes updates on biodiversity commitments and support for environmental justice and diversity, equity and inclusion across PSEG’s many diverse stakeholder groups and communities.
Climate change and the transition to a low-carbon economy present opportunities and risks for PSEG. As a combined 2021 Sustainability and Climate Report, this document also dives into the potential physical and transitional risks of climate change to help PSEG better plan and prepare for the changes ahead, including actions taken to achieve the company’s recently announced net-zero climate vision for 2030.
“Year after year, we are experiencing new weather extremes as the evidence of climate change around us grows. Reducing the most devastating impacts of climate change while increasing resiliency will require a concerted effort by all sectors of the economy,” Izzo said. “At PSEG, our value creation process combines the responsible use of natural resources, technology and our workforce to deliver the energy that sustains the modern economy. Our combined 2021 Sustainability and Climate Report contains our progress to date, commitments for the future and the changes that will be needed to meet our goals.”
The report provides updates on PSEG’s progress across a range of sustainability categories.
Targets and commitments
PSEG remains focused on value creation and long-term growth for all stakeholders, including shareholders, employees, customers and the communities in which it operates. PSEG’s financial strength enhances its ability to sustain excellence in operations, deploy capital effectively and deliver value to our customers and shareholders.
Supporting the regional economy
PSEG’s investments in critical energy infrastructure serve as an important economic engine. In 2020, PSEG invested nearly $2 billion with other New Jersey-based firms, driving the regional economy as those businesses and suppliers provide additional jobs in the region. PSEG’s nuclear plants in South Jersey contribute $1.2 billion to New Jersey’s annual GDP.
In April 2021, PSEG completed its acquisition of a 25% ownership interest in Ocean Wind 1. The 1,100-megawatt offshore wind farm is New Jersey’s first and part of the state’s goal to develop 7,500 megawatts of offshore wind energy by 2035. Ocean Wind 1 is expected to power roughly 500,000 homes, generate $1.17 billion in economic benefits and create more than 300 direct jobs annually, or an estimated 15,000 jobs over its lifetime.