Environmental, Social and Governance
About Alliant Energy Alliant Energy Corporation (NASDAQ: LNT) is a Performance Midwest U.S. energy company with annual operating revenues of more than $3.6 billion. Our company is primarily engaged in electric generation and the distribution of electricity and natural gas. We serve approximately 970,000 electric and 420,000 natural gas customers through our two public utility subsidiaries, Interstate Power and Light (IPL) and Wisconsin Power and Light (WPL). IPL provides retail electric and gas service in Iowa, and sells electricity to wholesale customers in Minnesota, Illinois and Iowa. WPL provides retail and wholesale electric and retail gas service in Wisconsin. Headquartered in Madison, Wisconsin, Alliant Energy Forward-looking Statements has approximately 3,600 This material includes forward-looking statements. These statements can be identified because they include words such as “expect,” “may,” “believe,” “anticipate,” “intend,” employees and more “plan,” “project,” “will,” “projections,” “forecast,” “outlook,” “estimate,” “target,” “goal,” or other words or expressions of similar import. Similarly, statements that describe than 24,000 shareowners future plans or strategies, our clean energy vision, transitioning our energy resources, planned resource additions, and future emissions reductions are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. of record. Based on Actual results could be materially affected by the following factors, among others: regulatory approvals; unanticipated construction issues, delays or expenditures; failure of electric sales, the largest equipment and technology to perform as expected; political conditions in Alliant Energy’s service territories; changes to Alliant Energy’s access to capital markets; economic cities served in Iowa and conditions in Alliant Energy’s service territory; and other risk factors discussed to Alliant Energy’s most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”), including the section therein titled “Risk Factors,” and its other filings with the SEC. Alliant Energy undertakes no obligation to update publicly Wisconsin are Cedar Rapids such forward-looking statements to reflect subsequent events or circumstances. and Beloit, respectively.
Alliant Energy | Environmental, Social and Governance Performance 1 Contents
A note from our CEO 3 Environmental management 23 Cyber and physical security 40 Incident monitoring process Security programs Sustainability strategy 5 Environmental management program Business continuity Our sustainability pillars Assessment program Electric system reliability 43 Sustainability priorities 6 Compliance results Natural gas system performance 44 Stakeholder outreach 7 Greenhouse gases 26 Employee and contractor safety 45 Environmental, Social Scope 1 emissions Our safety commitment and Governance Oversight 8 Scope 2 emissions Programs and management Energy and climate 9 Customer electric system greenhouse gas emission rate Our Clean Energy Vision Supplier programs 48 Task Force on Climate-Related Financial Disclosures Thermal emissions 29 Workforce culture and engagement 49 Reductions achieved Carbon and Climate Change Governance Diversity, Equity and Inclusion Strategy Water management 31 Development and engagement Planning process Reductions achieved Health and wellness Strategic initiatives Clean energy transition Planning, risks and resilience Future workforce Integrated grid Collective bargaining and labor relations Waste management 33 Customer energy solutions Metrics and vendor audits Electrification adoption Economic development 51 Long-term climate outlook Recycling excellence recognition Community involvement 51 Research and development Coal combustion residuals 35 Risk management Facility closure 52 Management and compliance Identification and reporting Customer relations 52 Assessment and response Beneficial use highlights Metrics and targets Surface impoundments Community giving 53 Emissions reduction goals and progress Ecosystem and habitat 37 Regulatory alignment 54 Net-zero global carbon Initiatives and support Corporate governance 55 Energy efficiency 19 Avian Protection Plan Board of Directors Iowa programs Minimizing construction impacts Skills and qualifications Wisconsin programs Community tree programs Board diversity, age and tenure Renewable energy 21 Key compensation governance and pay practices Envision recognition 39 Customer renewable programs United Nations Sustainable Development Goals 57 Renewable portfolio standards Sustainability Accounting Standards Board 58
Alliant Energy | Environmental, Social and Governance Performance 2 A note from our CEO Our world has changed. Our commitment remains.
Dear Colleagues, We are beginning the next chapter of our Customers and Friends, sustainability story by accelerating our path to eliminating all coal from our energy mix t Alliant Energy, our purpose and establishing new carbon dioxide (CO ) is to serve customers and 2 A emissions goals for energy generation. build strong communities. But the power of a purpose goes Achieving a 50% reduction in CO2 beyond what we say – it’s about emissions by 2030 (up from our prior what we do. John Larsen goal of 40%) Eliminating all coal from our generation How we deliver on our purpose fleet by 2040 (10 years faster than our reflects our broader responsibility – to our previous target) customers and the communities we serve. Last year, in our report, we highlighted the many And a new aspirational goal that achieves ways we are improving our environment – and net-zero CO2 emissions from the how we are acting for a better tomorrow. electricity we generate by 2050 This year, we are pleased to showcase The key to achieving these goals is even more examples of our environmental expanding our use of clean energy stewardship – as well as our efforts to address sources, like wind and solar. In May 2020, the important social needs of the communities we announced plans to retire one of our we proudly serve. We believe transparency Wisconsin coal-fired generating facilities and in sharing the results of our efforts benefits the first phase of construction that puts us all stakeholders. We are making progress. on a path to add 1,000 megawatts of solar We recently achieved one of our goals – to in Wisconsin by 2023. It’s all part of our have 30% of our energy mix come from Wisconsin Clean Energy Blueprint. Our Iowa carbon-free renewable resources – 10 years blueprint will be completed later this year. ahead of schedule. While I’m proud of this accomplishment, we cannot, and will not, rest (Continued) there.
Alliant Energy | Environmental, Social and Governance Performance 3 To create even greater reliability for our customers, we are also Sustainability Highlights investing in battery storage and moving our power lines underground. Expanded our utility-owned wind farms in 2019 and 2020 Collectively, it’s a cost-effective way to deliver sustainable benefits with an additional 1,150 megawatts - making Alliant while creating new jobs, providing tax revenues and generating Energy the 3rd largest utility owner-operator of regulated economic development opportunities. I firmly believe this approach wind in the U.S. not only strengthens the communities we serve, it also improves our customers’ lives and creates a cleaner environment – for everyone to Achieved our goal that 30% of our energy mix come from enjoy. carbon-free renewable resources, ten years early, and we’re not going to stop there! As important as our efforts are to improve the environment – it’s Planned investments of $780 million to build solar equally important that we thoughtfully address the social needs of our projects totaling 1,000 megawatts by 2023 – enough to communities. Building stronger communities requires creating a more power 260,000 homes a year. diverse workforce. We strive to create a work culture that encourages employees to use their unique backgrounds, talents and perspectives $2.2+ billion planned investments to build smarter and to their fullest potential. We take actions to build unity and trust. We more resilient energy infrastructure. are passionate about and support programs that focus on social justice, Received Envision® Platinum rating for the West education and housing. We believe these actions help build equitable, Riverside Energy Center by the Institute for Sustainable respectful and resilient communities that are filled with opportunity. Infrastructure – this is in addition to our recent wind and solar facilities. As I look ahead, I’m consistently reminded that we’re all facing a new normal, as a result of the COVID-19 pandemic. At the same time, this Successfully achieved our air emissions performance health crisis has reaffirmed how essential energy services are to the metric one year ahead of schedule reducing sulfur country – and are a reminder of just how critical our purpose is to our dioxide (SO2) by 90%, nitrogen oxides (NOx) by 82%, employees, our customers and the communities we serve. and mercury by 95%. 35% reduction in fossil fuel generation carbon dioxide I hope you find the stories in this year’s report bring to life the many ways (CO ) emissions from 2005 levels. we work to Make things better and Do the right thing – for our employees, 2 customers and the communities we are so privileged to serve. Because, 65% reduction in fossil fuel generation water supply when communities thrive and grow, we build a better world – for our from 2005 levels. children and many generations to come. 88% annual landfill diversion rate achieved for large construction projects.
92,000+ volunteer hours by employees and retirees to various charity organizations. 16 Alliant Energy Growth Sites ready to support new and expanding business growth in our communities. John Larsen Chairman and CEO $2 million in corporate giving to Hometown Care for electric and heating bill assistance to families in need. Received a perfect score of 100 on the Corporate Equality Index administered by the Human Rights Campaign Foundation. Alliant Energy | Environmental, Social and Governance Performance 4 Sustainability strategy Our sustainability pillars Sustainability means doing the right thing, with an Alliant Energy’s purpose is to serve customers and build stronger eye toward the long run. Our sustainability strategy communities. Our mission is to deliver the energy solutions and looks to the future, promoting responsible company exceptional service that our customers and communities count on – growth through the economic, social and environmental safely, efficiently and responsibly. decisions we make today. Because it touches on all six of Six Values shape everything we do. our Values, sustainability factors into every one of those major decisions. Live safety. Everyone. Always. Our first priority is that nobody gets hurt. That’s why sustainability is built into how we provide energy. Our long-term strategic plan includes emissions Do the right thing. reductions and the expansion of renewable energy. But We keep our promises and conduct our business we also recognize that our company’s growth depends openly and honestly. on the support of the strong, thriving communities in which we serve. Care for others. And we know that investing in the personal development and Together we create a workplace where people feel like well-being of our employees they belong and can use their unique backgrounds, brings value many times talents and perspectives to their fullest potential. over.
Make things better. Achieving balance has always been integral We partner with our customers and communities to our company’s to solve problems, create opportunities and help make operations. Our life better. energy vision and strategy embrace four Act for tomorrow. guiding principles that are We use resources wisely, care for the environment grounded in sustainability: and continuously improve ourselves and our company. Implementing innovative customer solutions Think beyond. Be bold. Advancing clean energy We create and embrace change, innovate beyond Building a smarter, stronger power grid current practices and use our curiosity to find new solutions. Serving customers and strengthening our communities All these sustainable principles are part of Powering All of our employees are trained on and expected to What’s Next, our purpose-driven approach to grow, adhere to our company’s Code of Conduct. optimize and transform our business well into the future.
Alliant Energy | Environmental, Social and Governance Performance 5 Sustainability priorities Located in the Midwest, our customers reside in mid-size cities, smaller towns or villages, and rural areas. Our company’s sustainability priorities are to provide energy that is safe, reliable and affordable. We protect natural resources through environmental stewardship, remain flexible to adopt emerging technologies, support growth in the communities we serve, pursue solutions to enhance our customers’ experience and meet evolving stakeholder expectations. Alliant Energy participates in the Electric Power Research Institute (EPRI) programs on Strategic Sustainability Science to proactively advance our industry’s knowledge, collaborate on best and next practices, and benchmark performance with peer companies. Our sustainability framework is built upon EPRI’s research that establishes twenty priority issues of sustainability for the electric utility industry. These priority sustainability issues are presented below alphabetically.
EPRI priority sustainability issues for the North American Electric Power Industry1
Air emissions Greenhouse gas emissions Assets and operations Habitat and biodiversity Business model Job satisfaction Climate change Labor relations Community vitality Public policy relations Customer relations Safety and health Cyber and physical security Skilled workforce availability Diversity Supply chain Energy affordability Waste management Energy reliability and Water management resiliency
1) Reference: Priority Sustainability Issues for the North American Electric Power Industry: Results of Research with Electric Power Companies and Stakeholders in the United States and Canada (October 2017)
Alliant Energy | Environmental, Social and Governance Performance 6 Stakeholder outreach Communication and Engagement Outreach Alliant Energy’s communications and engagement with our external stakeholders External interest group Examples occurs on many levels both in-person and virtually. This ongoing dialogue gives us the Key account management and business resource center opportunity to learn what they consider to for commercial and industrial customers be important sustainability issues. These Power Thinkers online residential advisory panel discussions also help us to identify key Market research priorities, find common ground and discuss potential collaboration opportunities. Focus groups Energy efficiency surveys In addition to these voluntary outreach Customers efforts, Alliant Energy also engages with Social media our stakeholders through formal regulatory Mobile applications proceedings and public comment hearings. Monthly newsletter In Iowa, our company is conducting an Bill messaging engagement plan with stakeholders on various Local media and news distribution energy-related issues and sharing outcomes with the Iowa Utilities Board. As part of our Energy summit for business customers WPL Clean Energy Blueprint development, our company conducted broader outreach and Foundation grants and corporate giving stakeholder meetings in Wisconsin to discuss Employee volunteering and obtain input on our resource planning Event support efforts. Similar outreach is occurring for the Communities Group and association memberships IPL Clean Energy Blueprint efforts currently Community conversation events underway. Facility decommissioning project updates Company executive visits and forums
Future facility Project update meetings neighbors Letters and newsletter
Investors Periodic individual touch-base meetings
Non-Governmental Periodic individual touch-base meetings and broader Organizations and other coordinated group discussions stakeholders
Alliant Energy | Environmental, Social and Governance Performance 7 Environmental, Social and Board of Directors Governance Oversight Responsible for overseeing our vision and mission, strategic plan and overall corporate risk profile – including the impact climate and carbon risks and environmental policy have on We engage in sustainability at all levels and in these matters. all departments of the company because of Consists of experienced and diverse members. its importance to our company, our Values and our strategy. Our system of environmental, Consists of independent directors other than the Chief Executive Officer. social and governance (ESG) oversight Nominating and Governance Committee of the Board of Directors helps us effectively integrate sustainability Responsible for overseeing environmental, social and governance (ESG) issues. throughout the organization. Reviews and approves the Corporate Responsibility Report. Consists solely of independent directors.
Compensation and Personnel Committee of the Board of Directors Reviews and approves ESG performance metrics as part of executive compensation oversight. Oversight of issues related to our workforce environment. Consists solely of independent directors.
Operations Committee of the Board of Directors Reviews and oversees environmental and safety issues. Consists solely of independent directors.
Environmental Services and Corporate Sustainability Department Responsible for coordinating company sustainability initiatives and reporting. Reports to Vice President of Business Planning and Executive Vice President, General Counsel & Corporate Secretary.
Sustainability Leadership Team Responsible for aligning and advancing sustainability throughout the company. Representation includes various cross-functional departments throughout the company.
Alliant Energy | Environmental, Social and Governance Performance 8 Energy and climate Our Clean Carbon and Climate Change Governance Energy Vision: The Board of Directors has appropriate oversight of the Company’s key sustainability initiatives. The Nominating and Governance Committee is Successful execution of our responsible for general oversight of ESG issues, including review and strategy will enable us to achieve
approval of carbon dioxide (CO2) reduction goals. This Committee oversees our clean energy initiatives. the development of an ESG program that identifies successful outcomes and defines plans to achieve those goals. The Nominating and Governance Committee will work with By 2030: other Board Committees to ensure that the expertise of those Committees is brought to bear Reduce our fossil fuel generation on oversight of various issues, such as employee issues, having oversight from the Compensation carbon dioxide (CO ) emissions by and Personnel Committee, and issues involving operations is overseen by the Operations 2 50% from 2005 levels Committee. Alliant Energy’s Chief Executive Officer (CEO), along with other company executives, have overarching responsibility for company strategy, compliance and operations, including climate Reduce our fossil fuel generation change and carbon emissions. water supply by 75% from 2005 levels Strategy Alliant Energy embraces advancing clean energy. This aligns with our Value to By 2040: Act for tomorrow – we use resources wisely, care for the environment and Eliminate all coal from our continuously improve ourselves and our company. To accomplish this means finding generation fleet innovative ways to address environmental challenges, operate more efficiently and provide flexible energy resources. By 2050: Climate change risks and opportunities to meet this challenge are considered as part of the broader process that supports development of the company’s business strategy and associated plans. Alliant Aspire to achieve net-zero CO2 Energy executives annually present to the Board a strategic business plan. Alliant Energy strives emissions from the electricity we to accelerate emissions reductions as part of its Clean Energy Vision to implement a strategy to generate affordably meet the energy needs of customers and recognize the importance of using resources in efficient and environmentally responsible ways. In addition, focusing on clean energy will help We will continue to review and make our communities more competitive for economic development. Our strategy will continue to update our Sustainable Energy adapt based on future economic developments and evolving energy technologies and trends in the strategy and Clean Energy communities we serve. Vision, based on future economic developments, evolving energy technologies and emerging trends in The Task Force on Climate-Related Financial Disclosures (TCFD) was established in 2015 by the Financial Stability Board (FSB) to the communities we serve. develop voluntary, consistent climate-related disclosures for use by companies. Information on our company’s energy and climate actions is organized using the following TCFD framework: Governance, Strategy, Risk Management, Metrics and Targets. In addition, information related to our strategic plan investments and risk factors is provided in our annual Form 10-K report to the U.S. Securities and Exchange Commission.
Alliant Energy | Environmental, Social and Governance Sustainability Performance 9 Planning process Alliant Energy’s Clean Energy Blueprint and sustainable energy plan guides our long-term transition to meet customers’ future energy needs by Powering What’s Next. Our company’s approach to assess future scenarios for our transition is supported by an integrated resource planning process.
Integrated resource planning is a nte rated re o rce lannin projections for model inputs including fuel technical process that uses computer prices, capacity prices, and emissions costs models to examine the potential E E (such as carbon pricing), consistent with the impacts of different operational range of scenarios. decisions. The models assess the We use energy-market modeling to consider performance of various energy oad foreca t forecasts over both the short and long term, resource alternatives over a planning Ele tri ale re a t re i ential er ial while regional energy resource characteristics horizon that often covers 15 to 40 in trial an le ale and transmission-constraints are factored into years. This includes evaluation of how r ali e r te erat re simulations that assess economic dispatch energy and capacity needs balance Energy e i ien y i tri te generati n of electric generation into those energy with supply, for example by using markets. This supports portfolio optimization a year-by-year load forecast of both and risk analyses across planning scenarios. the energy required at the time of emand ide and l ide anal i maximum consumption and the total Alliant Energy uses an integrated resource E i ting an ne il ele generating a ilitie planning process to: amount of energy consumed over time. E i ting an ne rene a le a ilitie Energy supply alternatives are then enerating a ility retire ent 1) Assess future energy and capacity needs modeled using expected performance under a variety of possible future scenarios characteristics, operating and capital with varying economic and regulatory Scenario anal i costs. policy outlooks. ran rtati n ele tri i ati n Alliant Energy also uses integrated En ir n ental t an li it 2) Evaluate potential performance of various resource planning to help assess and el t energy supply resources and mixes under refine resource strategy by examining a ar et energy a range of future scenarios. wide range of future planning scenarios reflecting various changes that could 3) Inform development of an action plan e o rce lan o timi ation affect the electrical industry, such as projected to satisfy energy and capacity policy mandates and regulations or needs safely, efficiently and responsibly. other initiatives to reduce greenhouse ecommended re o rce lan gas emissions. We utilize economic (Continued)
Alliant Energy | Environmental, Social and Governance Performance 10 Our electric utility subsidiaries, IPL Strategic initiatives and WPL, are market participants We are transitioning our energy to a cleaner mix and expanding cost-effective renewable in the Midcontinent Independent resources and implementing alternative energy resources. We’re also investing in our electric and System Operator, Inc. (MISO) gas distribution infrastructure, making it stronger, smarter and more adaptable to support evolving Regional Transmission Organization. energy technologies. By participating in MISO’s wholesale electricity markets, we provide Clean energy transition customers in our service area In 2020, we achieved our goal that 30% of our energy mix come from carbon-free renewable with reliable and affordable power. resources, ten years early. Going forward, our plans include clean energy projects to build upon Through technical analysis, MISO this success. establishes requirements for the Planned re o rce addition long-term efficiency and reliability of the electrical system. Adequate generation supply, including a reserve Planned resource additions* Wisconsin solar margin, is a key component to planning a reliable electric network, Wisconsin solar and we are obligated to satisfy those supply requirements. Wind Natural gas Solar Battery Ultimately, the results from the integrated resource planning process are further assessed considering our West Riverside Energy Center strategy and non-quantifiable risks Kossuth Richland Decorah that cannot be adequately considered West Riverside Energy Center Marshalltown Generating Station Golden Plains in a resource planning computer Sauk City Whispering Willow North model. This guides our decisions on Wellman the best future energy resources Marshalltown Generating Station to meet our customers’ electricity Upland Prairie English Farms needs. We are focused on managing energy costs for customers while being environmentally responsible, including preparing for a carbon-constrained future. Dubuque Marshalltown Generating Station
Alliant Energy | Environmental, Social and Governance Performance 11 ran itionin Transitioning o rour energy ener resources* re o rce
Renewables Renewables Renewables 5% Gas 34% 44% 37%
Coal 44% Coal 25% 2005 2020 Coal 17% 2030 41% Gas 39% Gas 9% 5% Energy Storage <1% Oil Oil <1% Nuclear
Alliant Energy’s capital investments directly As a regulated utility company, our financial reflect our strategic plan opportunities. We earnings are driven by the allowed specified have issued $1.1 billion in green bonds to rate of return on rate base. Our reliance on finance affordable renewable energy projects. fossil-fueled generation to produce electricity for our customers, in particular coal, continues to decline as a percentage of our total rate ca ital e endit re base.
Electric oal a a ercenta e of otal tilit ate a e t er di tri tion eneration illion ene a le 15% 17% ro ect Ga di tri tion IPL WPL
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Alliant Energy | Environmental, Social and Governance Performance 12 raditional rid t re rid
dro at ral a oal Solar dro ind at ral a atter oal Integrated grid raditional rid t re rid Our integrated grid strategic initiatives will transform our distribution system into a continuous two-way flow of dro at ral a oal Solar dro ind at ral a atter oal electricity and digital information. The tomer tomer tomer projects leverage new technologies and tools in order to satisfy emerging customer requirements. tomer
Solar ind tomer tomer tomer Electric atter e icle
Periodic tomer information Po er flo ontin o information
Solar ind Electric atter e icle Integrated Grid Strategy Periodic information Po er flo ontin o information Initiative Customer Benefits Employee Benefits
Smart meters installed providing customers with advanced metering Reliability – fewer and Greater Safety – many infrastructure (AMI) shorter outages with former higher-risk field better power quality activities will be safer Upgrading to higher 25-KV voltage Affordability – provides Capability more accurate and timely Development – learn new Undergrounding electric distribution lines (new and replacement) information to help skills and work with the customers manage energy latest technology Fiber-optic cable installation to enhance our telecommunications network usage Innovation – fewer Updating our control center by implementing an Advanced Distribution Sustainability – broader manual processes and Management System access to clean energy improved tools to help and energy-efficiency solve customer problems Conducting pilot projects to test new digital technologies and energy storage options
Alliant Energy | Environmental, Social and Governance Performance 13 Customer energy solutions Our growing portfolio of customer-focused energy solutions includes programs and products that support reductions in CO2 emissions. This includes our energy efficiency programs that help customers reduce their energy usage and related costs. In addition to our Second NatureTM program, we offer various renewable energy options for customers. We enable even more renewable energy growth by connecting customer-owned and Independent Power Producer (IPP) projects.
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2019 117 MW iodi e ter
2018 105 MW ind dro t er 2017 86 MW Solar ind 2016 69 MW Solar
2015 58 MW dro
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Electrification adoption Alliant Energy’s 2019 customer electrification results included: We are also working to increase business 143 residential customer rebates toward Level 2 EV charging stations adoption of electric forklifts, electric 7 non-residential customer rebates resulting in 12 additional Level 2 truck refrigeration units, and replacing EV charging ports commercial transportation and delivery Rebates supporting electrification for 84 forklifts and 2 transport fleets with electric vehicles (EVs). Our refrigeration units company also supports residential adoption by sponsoring various Estimated annual load growth of 1.7 million kilowatt-hours from non- rebates and educational events. Through electrification, we believe road electrification that electricity can enable broader economy-wide carbon reductions.
Alliant Energy | Environmental, Social and Governance Performance 14 Long-term climate outlook Research and development
There are many perspectives on the impacts of climate change We support research and development (R&D) projects to better understand and the future path to decarbonization of the global energy long-term planning to reduce CO2 emissions. In 2019, Alliant Energy system. Our Clean Energy Vision is dependent on broader invested $3.4 million in various R&D programs. This amount includes both changes in the energy sector. Our pathway will be multi-faceted discretionary research funds and funds collected from customer billings as we strive toward our aspirational goal of net-zero CO2 as mandated by state regulations. R&D investments provide valuable emissions by 2050 from the electricity we generate. insights to plan for evolving innovations and technology development in the We will consider: energy industry. This includes projects to expand knowledge on our clean energy transition, such as analyzing the impacts of emerging technologies, Ensuring our energy remains affordable, safe and reliable strategies for electric vehicles and customer electrification, and integration Enabling public policies and support by our regulators and of distributed renewables and energy storage. other stakeholders In 2017, we joined Energy Impact Partners (EIP). EIP brings together Two-way flow of energy using smaller and decentralized leading innovators with energy companies to create a cleaner, more secure energy resources and resilient future. This unique partnership is funded through our non- Broad adoption of electric end-use technologies, including utility affiliate, Alliant Energy Finance, LLC. Leveraging the resources from transportation EIP supports our company’s strategy to provide sustainable solutions Increased use of renewable energy and battery-storage for our customers, such as providing digital tools to help them better systems understand and manage their real-time energy use and maximize the Leveraging data systems to build smart and efficient benefits of smart home technologies. It also supports our deployment of infrastructure data analytics to manage energy flow as the grid evolves with increasing Evolution of clean energy technologies and offsets to enable adoption of distributed generation and electrification. Additional information carbon emission elimination or mitigation beyond current on sustainability progress through this partnership is available in EIP’s capabilities Environmental Metrics Report.
Alliant Energy | Environmental, Social and Governance Performance 15 Risk management Alliant Energy responses to climate-related risks Identification and reporting Grid infrastructure design and investments We evaluate and report on potential risk factors, including risks that may be climate- Outage center and power restoration process related or carbon-related, in our company’s Emergency planning and preparedness drills annual Form 10-K report to the U.S. Securities Physical Physical security design and prevention measures and Exchange Commission. Risks that may be Advanced metering and communications technologies associated with climate or carbon concerns Site-specific risk assessments and adaptation plans can be physical risks associated with extreme weather events, regulatory risks associated Industry collaboration with changing regulatory requirements and rate recoveries, and economic risks associated Routine communication with regulators with additional required capital expenditures. Innovative rate design structures Regulatory Responses to identified climate-related risks Technical and policy committee participation are implemented as part of the company’s Public comment submissions broader strategy Assessment and response Fossil-fueled generation retirements Wind and solar renewables expansion We have an enterprise risk management program to assess, communicate and manage Economic Innovation investments and partnerships significant risks in a structured framework. Technology research and pilot studies The risk assessment process identifies Customer engagement and solutions key themes and trends, quantifies our key risks, and develops management plans and strategies. The Board of Directors is responsible for overseeing management of our overall risk profile. Programs, plans and actions are put in place to respond to risks that may be associated with climate or carbon concerns.
Alliant Energy | Environmental, Social and Governance Performance 16 Metrics and targets Alliant Energy has a long history of Emissions reduction goals and progress ed cin o r electric environmental stewardship focused on In 2019, our company successfully achieved eneration emi ion meeting customers’ energy needs in an our air emissions performance metric one 0% economical, efficient and sustainable manner. year ahead of schedule. We are continuing We proactively consider future environmental efforts to reach our CO emissions and water -20% -35% compliance requirements and proposed 2 withdrawal reduction goals for the electricity -50% regulations in our planning, decision-making, -40% we generate. construction and ongoing operations -60% activities. Metrics and targets guide our future Reductions Eliminate coal ed cin o r electric eneration achieved environmental plans. Adopting a long-term -80% since 2005
air emi ion ed cin o r emi ion Aspire for net-zero strategy prepares us to achieve environmental 2030 Goal - Achieve Sulfur dioxide (SO2) Nitrogen oxides (NOX) Mercury -100% CO reduction of 50% compliance requirements. It also provides 0% 0% 2 flexibility to adjust our plans if needed. 2040 Goal - Eliminate all coal from our generation fleet -20% -20% -35% -40% Additional information on Alliant Energy’s 2050 Goal - Aspire to achieve net-zero -40% -40% CO for the-50% electricity we generate Scope 1 and Scope 2 greenhouse gases, 2 *Owned fossil-fueled generation thermal emissions and water management is -60% -60% -82% -80% Reductions -80% summarized below. -90% -90% achieved -80% -90% -95% -80% since 2005 2025 Target -100% -100% -100% ed cin 2030 Target o r electric 2020 goal Reductions achieved since 2005 eneration2040 Target ater l 2050 Target (Net Zero) 0%
-20% We have already retired over 30% of our fossil-fueled generation capacity since 2005. This includes over 1,100 megawatts (MW) of retired coal-fired generation. In addition, -40% our company plans to retire another 414 MW of coal generation by the end of 2022. We continue to operate air quality control systems to reduce emissions from our remaining coal- -65% fired generation units as plans are developed to phase these units out of service based on -60% -75% customer affordability and energy reliability needs. Alliant Energy’s water withdrawals have also decreased due to retirement of fossil-fueled -80% Reductions achieved generating facilities. We are implementing water conservation measures and adding since 2005 renewable resources to further reduce water use from our electric operations. -100% 2030 goal
*Owned fossil-fueled generation
Alliant Energy | Environmental, Social and Governance Performance 17 Net-zero global carbon Alliant Energy’s plans for a clean energy future are expected to be EPRI’s updated evaluation Review of 1.5°C and Other Newer Global consistent with the carbon reductions and climate goals pledged Emissions Scenarios provides additional insights when considering how originally by the U.S. under the voluntary United Nations Paris Accord. to attain a net-zero goal. This includes finding that significant additional The Paris Accord’s central aim is to strengthen the global response electrification and continued fossil energy use could be consistent with to the threat of climate change. This would be done by keeping a limiting warming to 2°C and even 1.5˚ by 2050. Alliant Energy believes global temperature rise this century well below 2 degrees Celsius that our aspirational goal to reach net-zero CO2 emissions by 2050 for (2°C) above pre-industrial levels and to pursue efforts to limit the the electricity we generate is within the range of plausible scenarios temperature increase even further to 1.5 degrees Celsius (1.5˚C). The shown in the EPRI technical study to limit global warming. As the Special Report on Global Warming of 1.5˚C, issued in 2019 from the future pathway to net-zero global carbon unfolds, our company will Intergovernmental Panel on Climate Change (IPCC), asserts that global remain flexible and adapt our strategic plans to play a supporting role in net human-caused emissions of CO2 need to reach “net-zero” around this endeavor. 2050. This means that any remaining emissions would need to be balanced by removing CO2 from the air. Alliant Energy is participating in an EPRI technical study assessing the relationship between company-specific carbon transition scenarios Alliant Energy aspires to reach net-zero carbon dioxide (CO2) and scientific research on the projected emission reductions derived emissions by 2050 for the electricity we generate. In addition, we from global climate warming models. Key insights from the published plan to continue exploring opportunities to eliminate and fully study found that there is significant uncertainty between modeled remove our CO2 emissions from the environment. Our path will be predictions for achieving a global temperature goal and an individual guided by future policies, economic developments, evolving energy company’s emission pathway. The EPRI study concludes that applying technologies and emerging trends in the communities we serve. uniform carbon transition goals across companies is unlikely to be cost- effective. As we move forward, we will maintain sight of the fact that the energy we generate must remain affordable, safe and reliable. Due to various uncertainties, robust scenario methodologies should Through continued partnerships with customers, communities, consider multiple emissions pathways consistent with limiting regulators and stakeholders, we will successfully progress toward warming to a broad range of global average temperature outcomes. achieving our goals – and creating clean energy. Company-specific carbon transition scenario evaluations need to assess uncertainties such as: feasibility of evolving technologies (e.g., availability and cost); regional influences (e.g., geographic location and local economic growth); and how public policies affect emission levels (e.g., energy efficiency mandates or renewable energy standards).
Alliant Energy | Environmental, Social and Governance Performance 18 Energy efficiency Total energy saved was equivalent Energy efficiency is a significant part of Alliant Energy’s strategy because it represents an to greenhouse gas emissions from: important way for our company to reduce environmental impacts associated with energy production and use. Our company’s energy efficiency portfolio includes a mix of products 310 thousand homes’ energy and programs targeted at reducing peak use for one year demand and total energy usage.
Alliant Energy’s customers benefit from our energy efficiency programs as an option to conserve energy, reduce costs and help the environment. 6,663 million miles driven by an 2019 energy savings results: average passenger vehicle Electricity – 291 million kilowatt-hours Gas – 3.5 million therms Cumulative lifetime* energy savings results: Electricity – 3,487 million kilowatt-hours Source: Environmental Protection Agency Greenhouse Gas – 41 million therms Gas Equivalencies Calculator
*Assumes 12-year average lifespan based on Department of Energy reporting.
Alliant Energy | Environmental, Social and Governance Performance 19 Iowa programs In March 2019, IPL received 1 regulatory approval of its First Year Annual Savings – Electric (Megawatt-hours) 2019-2023 Energy Efficiency Year 2015 2016 2017 2018 2019 Plan (EEP). This EEP includes 2 savings targets of 610.8 Gigawatt-hours IPL 174,851 141,819 174,743 180,344 174,813 and 2.5 million therms over five years. The WPL 88,621 71,098 82,568 114,895 115,803 spending target of $233.11 million reflects the 2018 energy law that capped spending. Alliant Energy 263,472 212,917 257,311 295,239 290,616 Annual EEP reports are filed under docket 1 EEP-2018-0003. In 2019, IPL introduced First Year Annual Savings – Natural Gas (Therms) an online home energy assessment Year 2015 2016 2017 2018 2019 helping customers identify energy-saving opportunities for their homes. IPL also rolled IPL2 3,067,830 2,107,839 1,956,048 2,235,909 1,471,841 out our Energy Edge program to business WPL 3,057,607 2,254,264 1,352,078 3,322,470 1,982,758 customers. This new offering provides an online platform allowing them to benchmark Alliant Energy 6,125,437 4,362,103 3,308,126 5,558,379 3,487,391 their energy usage and set sustainability goals 1) Energy efficiency data provided in the table are based on incremental annual electricity savings for the reporting year as as well as providing deeper analytics including reported for Energy Information Administration Form 861. For the Iowa EEP regulatory filing, metrics specifically include cost comparisons, weather impacts and energy efficiency measures considered toward the revised program goals beginning in April and for comparison the actual achieved savings in 2019 were 112,462 megawatt-hours and 393,744 therms. details on their usage. 2) Data shown include Minnesota energy efficiency program results through 2015, when IPL sold these electric distribution assets and ended retail sales to these customers. Wisconsin programs Since 2001, the energy savings for Wisconsin residential and some business programs have been part of the consolidated Focus on Energy program. This program is managed by the state of Wisconsin. WPL contributes 1.2% of its annual retail utility revenues to help fund Focus on Energy. Program goals and initiatives are established on a statewide basis working with all participating utilities and publicly reported on the Focus on Energy website. In 2019, WPL continued to promote the new Energy Edge program that was introduced to business customers in 2018.
Alliant Energy | Environmental, Social and Governance Performance 20 Renewable energy
Customer renewable programs
Second Nature™ The Second Nature program allows our residential and non-residential customers to support electricity generated from wind and solar resources located in Iowa and Wisconsin. There is no special equipment to buy and no lifestyle changes needed. Residential customers can choose from three participation levels: 25%, 50% or 100% of their annual usage. All other customers can elect a flat monthly amount. At the end of 2019, more than 8,000 customers were participating in Wisconsin and 5,600 customers in Iowa. A third party verifies annually that all electricity purchased on behalf of Second Nature participants comes from qualified renewable resources.
New customer renewable options We are expanding renewable options for our Wisconsin and Iowa customers with three new voluntary programs. These offerings include: A community solar program that allows customers to subscribe to energy from a centralized solar garden in a nearby community, establishing a long-term customer connection. This provides another option for customers to participate in solar energy as a renewable alternative who may not choose or be able to host solar power on their home or business. A customer-hosted renewables program that allows Alliant Energy to partner with commercial and industrial customers who desire on-site renewable energy resources, in exchange for a lease payment to the customer. Individualized renewable energy contracts tailored to the needs of commercial and industrial customers and that are tied to dedicated renewable resources. Customers with multiple accounts would be able to aggregate their service under a single renewable energy contract. Customers can meet their sustainability goals in receiving renewable energy credits associated with the renewable resource.
Alliant Energy | Environmental, Social and Governance Performance 21 Renewable portfolio standards Alliant Energy is subject to Renewable Renewable energy credits (RECs) E from Prod ced and P rc a ed Portfolio Standards (RPS) in Wisconsin and represent proof that 1 megawatt- ene a le e o rce Iowa. These standards establish the amount hour (MWh) of electricity was 7,000 of energy electric utilities must supply from generated from an eligible renewable resources to their retail electric renewable energy resource. Alliant 6,000 customers. Our company continues to exceed Energy’s RECs are tracked in 5,000 5,756 its RPS requirements through company-owned the Midwest Renewable Energy 4,000 renewables and purchase power agreements Tracking System (M-RETS). RECs 3,000 3,447 (PPAs). can be sold and traded, giving 3,225 3,185 3,187 2,000 IPL is required to have at least 49.8 MW the purchaser of the RECs claim 1,000 nameplate capacity from a renewable energy to the renewable energy and E S S environmental attributes. The 0 resource. In 2019, IPL had 1,529.8 MW of renewable nameplate capacity. RECs generated by Alliant Energy may be sold or exchanged on WPL is required to have at least 9.28% of the the renewable energy market, energy provided to its retail electric customers including to buyers not located in from renewable energy on an annual basis. the states served with energy from In 2019, WPL provided 13.50% renewable IPL or WPL. energy based on retail sales.
Alliant Energy REC transactions Percentage of renewable energy supplied to customers based on retail sales1 Year REC was generated 2015 2016 2017 2018 2019 Year 2015 2016 2017 2018 2019 RECs retired, or those to be retired, IPL 1.02% 8.11% 9.92% 9.94% 26.52% 989,304 2,416,164 2,861,810 2,819,830 5,247,057 for our customers’ 1 WPL 7.89% 11.36% 13.28% 12.28% 13.50% environmental benefit Alliant RECs sold, transferred, 3.88% 9.50% 11.36% 10.94% 20.82% Energy held or retired for other 2,235,400 768,984 584,985 367,210 509,318 purposes 2 1) All RECs supporting these numbers have been or will be retired. RECs sold, transferred, held or retired for other purposes, as shown in the prior table, have not 1) Alliant Energy maintains the renewable energy and environmental attributes associated with these RECs on behalf of its retail been included in the calculation of these numbers. electric customers. This includes RECs retired for RPS compliance and extra RECs retired for our customers’ environmental benefit. IPL retires all of these extra RECs, whereas WPL may only retire a portion and plans to retire them at a future time in accordance with its ability to bank RECs up to four years for Wisconsin RPS compliance purposes. 2) Alliant Energy no longer holds the renewable energy or environmental attributes associated with these RECs. This includes RECs sold on the REC market, transferred for wholesale agreements or PPAs, RECs from non-regulated assets, or retired for Alliant Energy’s Second Nature program.
Alliant Energy | Environmental, Social and Governance Performance 22 Environmental management The Board of Directors has delegated to the Operations Committee oversight of all environmental management including compliance, Alliant Energy’s Environmental Commitment Statement provides business plans, and capital investments for large strategic projects. the guiding principles for employees to demonstrate our Value to This includes air emissions, greenhouse gases, water, waste, coal Act for tomorrow. Furthermore, our company monitors environmental combustion residuals, ecosystem and habitat support related matters. incidents, provides an Environmental Management Program and The Operations Committee reviews and advises the Board of Directors conducts formal assessments. which has final approval authority.
OUR ENVIRONMENTAL COMMITMENT – ACTING FOR TOMORROW
The way we do business at Alliant Energy reflects our commitment to a clean, safe and healthy environment. Alliant Energy is committed to complying with all environmental laws and regulations. We integrate environmental requirements into planning, decision-making, construction, operating and maintenance activities that we perform. Employees conduct work in a manner demonstrating Alliant Energy’s concern for preserving natural resources and protecting wildlife – acting in accordance with our Value to Act for tomorrow. We use resources wisely, care for the environment and continuously improve ourselves and our company. Alliant Energy is committed to environmental stewardship and the following principles to guide our actions:
Ensure that the entire organization Strive for performance beyond Preserve natural resources, safeguard is accountable for environmental environmental compliance through ecosystems and promote biodiversity performance. operational efficiencies, technologies, through hazard reduction measures and Achieve our company’s vision for a clean recycling, reuse, materials and product enhanced land management. energy future. substitution. Participate in environmental policy Advance our sustainability framework Integrate a comprehensive environmental development in order to support through the company’s mission, culture management approach into our responsible, fair and flexible regulatory and values. overall business and mitigate adverse outcomes. environmental impacts caused by our Comply fully with all applicable Engage in open relationships, operations. environmental laws and regulations and communication and education with company procedures. Provide employees with job-specific our customers, regulators and other training to properly execute environmental stakeholders on environmental matters. Monitor Alliant Energy’s environmental requirements and procedures. programs systematically to reduce risk Transparently report our environmental and liability through Enterprise Risk Pursue cost-effective energy efficiency performance and sustainability progress. improvements in our operations and Management. Approved by Alliant Energy’s Executive promote conservation practices and Review and Risk Committee and the investments in energy saving technologies Operations Committee of the Board of by our customers. Directors.
Alliant Energy | Environmental, Social and Governance Performance 23 Incident monitoring process Environmental management program
Our company goal is to meet all of our To continuously improve our environmental performance, Alliant Energy environmental requirements – all the utilizes an Environmental Management Program (EMP). The program time. We maintain an Environmental partners environmental subject matter experts with operational Information Management System personnel to identify best practices and improve environmental (EIMS) to manage and track over performance. 1,000 environmental tasks to ensure The main components of compliance. the EMP are to: Occasionally, environmental incidents Identify gaps in occur for a variety of reasons including, existing processes but not limited to, mechanical failures, human performance, wildlife that may impede the and extreme weather. We define environmental incidents as a non- successful completion of routine occurrence that has the potential to directly or indirectly result environmental obligations in an impact to the environment and involves an actual consequence for our operations or potential risk to our company, including risk to company reputation. Develop or refine Environmental incidents have the potential to result in an official notice processes in order of non-compliance (NOC) from a regulatory agency and are treated very to ensure continued seriously. compliance with When environmental incidents do occur, we learn from them to prevent all environmental them from occurring again. We conduct a root cause analysis within requirements, regulations 20 working days of any environmental incident. The outcome of this and responsibilities analysis is an action plan which describes the corrective actions and Achieve zero timelines that will be implemented to proactively develop targeted environmental incidents processes and programs to prevent reoccurrence. All corrective actions are reported to the appropriate regulatory agencies and implementation Utilizing the EMP, Alliant Energy reviews historical trends in is tracked through completion. Relevant information is shared on a environmental incidents and provides a framework for prioritizing the monthly basis with pertinent employees, business unit management, development of processes and tools to proactively address them. senior management, and the Operations Committee of the Board of Directors.
Alliant Energy | Environmental, Social and Governance Performance 24 Assessment program Compliance results
The purpose of Alliant Energy’s Environmental Assessment program is Alliant Energy operates in to identify and assess any reasonably foreseeable risks associated with compliance with environmental environmental conditions attributable to our company’s operations and requirements. However, there to eliminate or mitigate such risk. In addition to verifying compliance are occasions when the company with applicable requirements, our company’s program promotes does receive a NOC from a educational awareness and acknowledges areas of exemplary regulatory agency, which can performance. Environmental Assessments provide senior management result in fines or penalties. In and the Board of Directors evidence that environmental affairs are 2019, Alliant Energy was issued being effectively managed, and that the company’s exposure, including five NOCs. One historical NOC the exposure of responsible company officials, to compliance-related related to wastewater monitoring issues and identified hazards are minimized. procedures; one NOC cited for a missing construction storm water discharge permit; one NOC related Facilities with operations that are subject to environmental regulatory to a site’s air permitting requirements; and two NOCs related to facility requirements are eligible for Environmental Assessments and are tank inspections. There were no fines or penalties imposed for any of selected using a risk-based approach. This process provides for a these NOCs. more objective, consistent means to select facilities and decide which facilities may be assessed more frequently than others. During 2019, Alliant Energy conducted environmental assessments on approximately 30% of eligible facilities. Environmental notice of non com liance Our leadership team endorses these compliance reviews, approves the assessment plans, and monitors the assessment outcomes 6 and resolutions through a monthly Environmental Assessment Aging Scorecard report that lists the number of items resolved and 5 unresolved per facility. The results of each assessment are discussed 4 with facility managers and site personnel. The resolution of each issue that is identified is tracked to completion in our EIMS. Assessment 3 reports are shared with business unit management and other facilities. 2
The overall assessment outcomes are used to plan and implement E S training programs as well as improve practices and procedures to 1 ensure compliance. 0
Alliant Energy | Environmental, Social and Governance Performance 25 Greenhouse gases Sco e direct reen o e a emi ion Scope 1 emissions IPL WPL Scope 1 greenhouse gas (GHG) emissions are direct emissions from owned or controlled sources. The primary GHG source from Alliant Energy’s utility subsidiaries are the direct 8.5 8.5 8.1 6.5 emissions of carbon dioxide (CO2) from fossil-fueled generation. In addition, combustion 7.1 emissions occur from operation of our company’s vehicle fleet and there are fugitive emissions that occur from natural gas distribution operations. These GHG emissions 8.2 7.4 8.4 9.1 7.8 comprise the company’s Scope 1 footprint which totaled 14.3 million metric tons of Millions of metric tons CO2e CO2-equivalent (CO2e) for 2019 based on equity-share.
3 Scope 1 Direct Greenhouse Gas Emissions (metric tons of CO2e) Year 2015 2016 2017 2018 2019 Electric Generation Facilities1 8,138,001 7,369,712 8,352,853 9,071,481 7,743,090 IPL Vehicle Fleet2 14,662 14,228 14,747 14,284 13,325 Natural Gas Distribution1 22,221 21,093 21,159 21,422 21,551 Total 8,174,884 7,405,033 8,388,758 9,107,187 7,777,966
Year 2015 2016 2017 2018 2019 Electric Generation Facilities1 8,504,613 7,045,168 8,032,254 8,489,255 6,487,633 WPL Vehicle Fleet2 8,626 9,053 9,582 9,498 9,454 Natural Gas Distribution1 19,264 19,572 19,805 20,269 21,428 Total 8,532,504 7,073,793 8,061,641 8,519,022 6,518,515
Year 2015 2016 2017 2018 2019 Electric Generation Facilities1 16,642,614 14,414,880 16,385,107 17,560,736 14,230,723 Alliant Energy Vehicle Fleet2 23,289 23,281 24,328 23,782 22,779 Natural Gas Distribution1 41,486 40,665 40,964 41,691 42,979 Total 16,707,388 14,478,826 16,450,399 17,626,209 14,296,481
1) Based on data collected for Environmental Protection Agency Annual Mandatory GHG Reports based on protocols issued at 40 CFR Part 98 for Subparts C, D and W. Direct CO2e emissions are adjusted for equity share of joint-owned electric generating units. Emissions include all fossil-fueled generation and auxiliary combustion sources including those facilities below the Environmental Protection Agency reporting thresholds. 2) Fleet vehicle emissions based on internal records for fuel usage or mileage and Environmental Protection Agency published GHG emission factors.
3) Total CO2e was calculated with global warming potentials (GWP) as follows: CO2 = 1, methane (CH4) = 25, nitrous oxide (N2O) = 298.
Alliant Energy | Environmental, Social and Governance Performance 26 Scope 2 emissions
Scope 2 emissions are indirect GHG emissions from the generation of purchased energy. At some facilities, IPL and WPL need to purchase power for business operations outside of the Alliant Energy service area. The Scope 2 GHG emissions estimated for this purchased energy in 2019 was approximately 4,910 metric tons of CO2e.
1 Scope 2 Indirect Market-Based Greenhouse Gas Emissions (metric tons of CO2e) Year 2015 2016 2017 2018 2019 IPL 1,995 1,832 1,960 2,654 2,654 WPL 2,088 2,004 2,061 2,157 2,256 Alliant Energy 4,082 3,836 4,021 4,811 4,910
1) Based on internal records for energy usage and Environmental Protection Agency published eGRID emission factors.
Sco e indirect reen o e a emi ion
IPL WPL
,
, , 2,157 2,256 , 2,088 2,004 2,061 ,
Metric tons CO2e 2,654 , 1,995 1,832 1,960 2,654
Alliant Energy | Environmental, Social and Governance Performance 27 Customer Electric System Greenhouse Gas Emission Rate
1) Alliant Energy Corporation makes 2019 Energy resources no assurances regarding use of this IPL WPL Alliant Energy and CO e emission rate1,2,3 information by external parties in relation to 2 any marketing or other sustainability claims, Owned generation (net MWh) or the validity of this information as pertains to the U.S. Federal Trade Commission (FTC) Coal 4,469,836 23.81% 4,173,186 31.00% 8,643,022 26.81% Green Guides under 16 CFR Part 260. 2) Energy resources as provided in our annual Natural Gas 6,361,993 33.89% 4,697,573 34.90% 11,059,566 34.31% Form 10-K report to the U.S. Securities and Exchange Commission. Alliant Energy Oil 4,958 0.03% - 0.00% 4,958 0.02% Corporation reserves the right to use all or some of the renewable energy attributes Hydroelectric - 0.00% 227,622 1.69% 227,622 0.71% associated with generation from renewable energy sources in future years to comply Solar 6,349 0.03% - 0.00% 6,349 0.02% with renewable energy standards or other regulatory requirements or to sell the Wind 2,067,059 11.01% 828,786 6.16% 2,895,846 8.98% renewable energy attributes to third parties in the form of RECs or other environmental Purchased power (net MWh) commodities.
3) The system CO2e rate represents the CO2e Natural Gas - 0.00% 11,224 0.08% 11,224 0.03% emissions attributable to the retail portion of electric energy sales for retail customers.
Nuclear 3,747,846 19.97% - 0.00% 3,747,846 11.63% Fossil fuel combustion CO2e emissions are calculated in accordance with the U.S. Biomass 4,184 0.02% 58,714 0.44% 62,898 0.20% Environmental Protection Agency (EPA) mandatory Greenhouse Gas Reporting Hydroelectric 18,781 0.10% 155,256 1.15% 174,037 0.54% Program (GHGRP) regulations under 40 CFR Part 98. The CO2e system emission rate Solar 2,111 0.01% 7,416 0.06% 9,527 0.03% has been adjusted to reflect Alliant Energy’s annual share of emissions and generation Wind 1,762,630 9.39% 566,464 4.21% 2,329,095 7.23% from jointly owned electric generation units. In addition, the CO2e system emission rate Other (market) 300,872 1.60% 2,706,569 20.11% 3,007,440 9.33% has been adjusted for residual emissions from null power and market energy Second Nature 25,391 0.14% 28,198 0.21% 53,588 0.17% purchases. Null power includes sales of renewable energy credits (RECs), RECs Total sources of energy (net MWh) retired for Alliant Energy’s Green Pricing Program – Second Nature, and renewable Owned generation plus 18,772,011 100.00% 13,461,008 100.00% 32,233,018 100.00% energy agreements with outside parties. Total CO2e was calculated with global purchased power warming potentials (GWP) as follows: Adjustments for REC sales, transfers and retirements CO2 = 1, methane (CH4) = 25, nitrous oxide (N2O) = 298. Null Power (net MWh) 27,245 - 35,353 - 62,598 - System emission rate adjusted for null power
CO2e (grams/kWh) 423.14 639.98 517.99
CO2e (lbs/MWh) 932.87 1,410.91 1,141.97
Alliant Energy | Environmental, Social and Governance Performance 28 Thermal emissions
Thermal emissions represent the releases to air from producing electrical energy at fossil-fueled Coal-fired air quality generation facilities. The thermal emissions provided include the total mass emissions and the control systems emissions rate per MWh. All information is provided on a heat input basis adjusting for the IPL and WPL generation share of joint-owned facilities for SO , NO , mercury (Hg) and CO . Alliant Energy’s installation of 2 X 2 air quality control systems at Reductions achieved coal-fired electric generating units have resulted in Alliant Energy continues to track progress on reduction goals for thermal emissions. In 2019, we significant emissions successfully achieved our 90% SO2, 80% NOX and 90% Hg reduction goals one year ahead of reductions. The types of schedule. technologies installed include: Electrostatic precipitator Baghouse/fabric filter red ction in S emi ion ac ieved Activated carbon injection red ction in emi ion ac ieved Dry flue gas desulfurization
Low NOX burners Over-fired air Selective catalytic reduction SS S S S SS S S S
red ction in erc r emi ion ac ieved red ction in emi ion ac ieved , ,
, , SS P S SS S S
Alliant Energy | Environmental, Social and Governance Performance 29 Thermal Emissions – Mass1 Thermal Emissions – Rate1
SO (thousands SO Rate - 2 2015 2016 2017 2018 2019 2 2015 2016 2017 2018 2019 of tons) Gross (lbs/MWh)
IPL 12.6 7.9 8.4 8.4 6.7 IPL 2.86 1.95 1.69 1.36 1.16
WPL 13.5 5.7 4.3 3.7 1.2 WPL 2.62 1.32 0.94 0.69 0.26
Alliant Energy 26.2 13.6 12.7 12.2 7.9 Alliant Energy 2.73 1.62 1.33 1.05 0.76
NO (thousands NO Rate - x 2015 2016 2017 2018 2019 x 2015 2016 2017 2018 2019 of tons) Gross (lbs/MWh)
IPL 6.4 5.2 5.7 5.4 4.0 IPL 1.45 1.29 1.15 0.88 0.70
WPL 4.7 3.0 3.8 3.1 1.9 WPL 0.90 0.69 0.84 0.57 0.41
Alliant Energy 11.1 8.2 9.5 8.5 6.0 Alliant Energy 1.15 0.98 1.00 0.73 0.57
Hg Rate - Hg (pounds) 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Gross (lbs/MWh) IPL 156 30 40 46 35 IPL 0.000018 0.000004 0.000004 0.000004 0.000003 WPL 94 25 36 42 23 WPL 0.000009 0.000003 0.000004 0.000004 0.000002 Alliant Energy 250 55 76 87 58
Alliant Energy 0.000013 0.000003 0.000004 0.000004 0.000003
CO2 (millions 2015 2016 2017 2018 2019 CO Rate - of tons) 2 2015 2016 2017 2018 2019 Gross (lbs/MWh) IPL 8.9 8.1 9.1 9.9 8.5 IPL 2,017 1,994 1,829 1,605 1,478 WPL 9.3 7.7 8.8 9.3 7.1 WPL 1,806 1,790 1,921 1,713 1,516 Alliant Energy 18.2 15.8 17.9 19.2 15.6 Alliant Energy 1,904 1,889 1,873 1,655 1,495 1) Based on continuous emissions monitoring systems (CEMS) and other air compliance data accepted by the Environmental Protection Agency, Iowa 1) Based on continuous emissions monitoring systems (CEMS) and other air compliance data accepted Department of Natural Resources, and Wisconsin Department of Natural by the Environmental Protection Agency, Iowa Department of Natural Resources, and Wisconsin Resources. Department of Natural Resources.
Alliant Energy | Environmental, Social and Governance Performance 30 Water management
For electricity production, we predominantly use water to make steam In addition, our company has general water use at our office buildings and cool equipment at fossil-fueled facilities. Most of this is non-contact and other facilities that provide operational support, such as garages, cooling water that is pumped through the generating facility in piping warehouses and equipment maintenance. This water use includes systems where water cools process equipment indirectly. Therefore, potable drinking water, sanitary and various ancillary uses. This general our actual water consumption is very low, with 96% returned overall for water use represents less than 1% of our total water consumption. subsequent reuse. Primary watersheds for regulated utility operations include the Great Lakes and Upper Mississippi River drainage basins of the United States.
Generating Cooling 2 Groundwater from on-site wells and municipal water systems are Utility 1 Primary water source facility technology additional sources of water supply. All water discharges meet federal WPL Columbia Recirculating Wisconsin River and state regulations for quality to protect receiving water bodies. WPL Edgewater Once-through Lake Michigan Reductions achieved WPL Riverside Recirculating Groundwater Alliant Energy continues to track progress on its 75% reduction goal for IPL Burlington Once-through Mississippi River freshwater withdrawals from its owned fossil fuel electric generation. In 2019, we successfully achieved 65% reduction compared to 2005 Groundwater and IPL Emery Recirculating Clear Lake Sanitary District levels. Alliant Energy’s water withdrawals have decreased significantly due to retirement of fossil-fueled generating facilities. Negligible water IPL Lansing Once-through Mississippi River use will be necessary for our new wind farms and solar facilities. IPL Marshalltown Recirculating Marshalltown Water Works IPL Ottumwa Recirculating Des Moines River red ction in fre ater it dra al ac ieved IPL Prairie Creek Once-through Cedar River , 1) Generating facilities listed above include the coal-fired and natural gas combined cycle plants that are the primary users of water for our company’s electricity production. , 2) Non-contact cooling water is returned to the river or lake that is the primary source of water, , except as noted below. , Columbia Energy Center uses surface water from the Wisconsin River and discharges to an on-site cooling pond in accordance with a Wisconsin Pollutant Discharge Elimination , System (WPDES) permit.
Riverside Energy Center uses groundwater as the main supply and discharges to the Rock S G S , , River. Emery Generating Station uses groundwater and treated sanitary water, also called “gray water,” that is returned to the local Publicly Owned Treatment Works (POTW). Marshalltown Generating Station went into service in April 2017 and uses city water supply that is discharged to the city sewer.
Alliant Energy | Environmental, Social and Governance Performance 31 Planning, risks and resilience Freshwater withdrawal based on total generation1,2 (million gallons) Water reduction and re-use are always Year 2015 2016 2017 2018 2019 considered when designing new projects. For example, the West Riverside Energy Center IPL 148,871 155,288 143,886 122,080 88,112 includes systems such as lime softening, WPL 140,036 84,037 85,658 78,408 48,458 cooling towers and a wastewater treatment Alliant Energy 288,908 239,325 229,544 200,488 136,570 system that results in approximately 35% less water use. The design of the facility also 1) Fresh water withdrawal volumes are adjusted for equity share of jointly-owned fossil-fueled generation units. incorporated stormwater re-use by diverting 2) Based on Alliant Energy records and EPRI 2015 Technical Report, Evaluation of Freshwater Withdrawal and Consumption in Electricity Generation Based on Future Projections to 2030. roof drains of a building for process make-up water, which should reduce groundwater use 1, 2 Freshwater consumption based on total generation (million gallons) by approximately 70,000 gallons per year. The Emery Generating Station was designed to Year 2015 2016 2017 2018 2019 utilize Clear Lake Sanitary District gray water as IPL 1,730 1,595 1,920 2,139 2,105 cooling tower make-up. In 2019, approximately 298 million gallons of gray water was used WPL 3,708 3,631 3,660 4,353 3,773 that otherwise would have come from another Alliant Energy 5,438 5,226 5,580 6,492 5,878 source (e.g., groundwater). 1) Fresh water consumption volumes are adjusted for equity share of jointly-owned fossil-fueled generation units. At existing facilities efforts are also made to 2) Based on Alliant Energy records and EPRI 2015 Technical Report, Evaluation of Freshwater Withdrawal and Consumption in conserve water. For example, at the Edgewater Electricity Generation Based on Future Projections to 2030. Generating Station several projects have been completed to reduce overall water use including the installation of a dry bottom ash handling system on Being located in the Midwest, Alliant Energy historically has not been Unit 5, re-use of wastewater as make-up water in the air quality directly impacted by droughts or water scarcity issues that have caused control system, and retirements of Unit 3 and Unit 4 that employed operational slow-downs or temporary shortages as has been experienced once-through cooling water. In addition, several units within Alliant by utilities located in water-stressed regions of the United States. Energy have been converted to dry ash handling systems, which However, our company proactively considers both water availability and further reduces water use and discharges. quality in our planning and ongoing operations. Alliant Energy is also a participant in an ongoing EPRI technical workgroup that is specifically focused on improving the quality and quantity of water available in the Great Lakes region. We also proactively take steps to protect our facilities in the event of increased precipitation by developing Flood Plans. These plans consider that the key to successful flood preparations is advanced planning, careful monitoring of predicted water levels, early preparation and training.
Alliant Energy | Environmental, Social and Governance Performance 32 Waste management
Metrics and vendor audits
Alliant Energy continues to focus on improving how we manage waste in our daily operations Collaborating to support as well as when our company retrofits, expands and decommissions our facilities. Our large a sustainable waste vendor construction projects require the contractors to divert at least 75% of construction waste from audit process landfills. In 2019, we exceeded this goal achieving 88% by diverting over 14,000 tons of metal, wood, concrete asphalt and other waste materials from landfills. In 2019, Alliant Energy joined CHWMEG, Inc., which is a non-profit organization
1 comprised of companies interested in 2019 Waste management collaborating to efficiently conduct waste Quantity generated Recycled Disposed Waste type % Recycled vendor audits. Routine audits assess a (tons) (tons) (tons) waste disposal company against industry Hazardous 22.3 4.0 18.3 18% standards and applicable regulatory compliance requirements. This helps to Non-hazardous 26,737 18,522 8,215 69% ensure our contracted waste vendors Universal 22.3 21.5 0.7 97% are performing work in a safe and environmentally responsible manner. Construction 15,828 14,003 1,825 88% and demolition Our company’s participation provides
1) Based on internal records and compliance data accepted by the Environmental Protection Agency, Iowa Department of Natural comprehensive, independent audits of Resources, and Wisconsin Department of Natural Resources. commercial waste companies that we may hire to treat, store, dispose, recycle/ regenerate, or transport waste and spent materials. Our membership offers Alliant Energy an opportunity to complement our current waste management program.
Alliant Energy | Environmental, Social and Governance Performance 33 Recycling excellence recognition In May 2020, our 730 MW In addition, outreach to local farmers West Riverside Energy facilitated reuse of additional wood Center (WREC) natural waste and strengthened our relationship gas-fired generation with neighboring communities. Finally, facility located near Beloit, over one ton of wood was donated to Wisconsin commenced Wisconsin Wild Care in Lodi, Wisconsin commercial operation. This project and Torstenson Youth Conservation covers a 90-acre site and created over 1,000 Education Center in Northern Illinois. construction jobs between 2017 and 2020. These facilities used the materials for A waste management and recycling program their environmental rescue, rehabilitation and education endeavors. was put in place with a goal to salvage and recycle 75% of all material generated. This project was recognized by the Wisconsin Department of Natural Training, recordkeeping and purchasing Resources with a Recycling Excellence Award in 2019. materials with recycled content were all integrated into this program. A sorting area was dedicated to the recycling effort with customized signs for each of the receptacles. West Riverside Energy Center Although the rigid specifications for a new power plant can be a barrier to purchasing certain items, approximately 11% of all materials for the project contained recycled content. Notably, nearly 92% of the steel purchased for WREC contained recycled material, as well as 53% of the glass fiber insulation, 85% of metal gates, and 70% of fence fabric. Upon completion, over 93% of waste generated from the WREC project site was diverted from landfills.
Alliant Energy | Environmental, Social and Governance Performance 34 Coal combustion residuals
Management and compliance There are different types of CCR: Fly ash is a very fine powder-like particle that is collected by emission Coal combustion residuals (CCR) are what remain after the direct controls. combustion of coal at generating stations and include residuals from air Bottom ash is a coarse, granular sand-like material collected from the quality control systems. Alliant Energy’s goal is to manage CCR safely bottom of the boilers. and responsibly to protect both the environment and the public while assuring compliance with state and federal regulations. Scrubber solids consist of lime that is reacted in air quality control systems to reduce SO2 emissions. The Environmental Protection Agency (EPA) CCR rule is designed to protect human health and the environment by establishing a In 2019, we were able to beneficially use 60% of the CCR generated. comprehensive set of requirements for the safe disposal of coal ash. Nearly all (97%) of the beneficially used material went to encapsulated We are complying with the EPA’s regulations for CCR management applications such as use in cement readymix, cement raw feed, and disposal, including elimination of wet ash handling processes subbase under hard surfaces, or asphalt. and closure of our coal ash ponds. Our CCR website shares required compliance information and monitoring data. It can be directly accessed at ccr.alliantenergy.com. 2019 CCR management1 IPL WPL Alliant Energy Alliant Energy works with state regulatory agencies to identify CCR product use (tons) 91,505 125,470 216,975 approved beneficial uses for CCR. Material that cannot be beneficially % CCR product use 59% 61% 60% reused is placed in state-permitted landfills that include engineering design and controls that meet or exceed applicable federal, state and 1) Based on internal records and compliance data accepted by the Environmental Protection Agency, Iowa Department of Natural Resources, and Wisconsin Department of Natural local requirements. Resources.
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Alliant Energy | Environmental, Social and Governance Performance 35 Beneficial use highlights
Our goal is to beneficially use our CCR reserves in existing and new markets, in lieu of landfilling. To meet this goal, Alliant Energy works closely with universities and EPRI on research to develop new, responsible beneficial uses that reduce disposal while protecting public health and the environment. 2019 highlights include: Sold 100% of the Class C fly ash to be used as a replacement for cement in concrete production. Class C fly ash has cement properties preferred to enhance concrete strength. Also sold bottom ash into cement markets. Continued to utilize scrubber solids to improve agricultural soil conditions, resulting in reduced landfilling and lower customer costs.
Surface impoundments Recycling benefits Our CCR surface impoundments include coal ash ponds that have completed third- Using fly ash to replace cement provides party engineering studies and are inspected by third-party engineers every year. The several environmental benefits. This studies required by the rule classify each pond into a “hazard potential” category and includes eliminating the need to mine assess structural integrity. Based on those classifications, six of our remaining coal virgin materials, conserving land otherwise ash surface impoundments have been rated as Low Hazard Potential, and seven are used for disposal, and avoiding impacts rated as Significant Hazard Potential. Ponds are given a rating of Significant Hazard associated with cement manufacturing Potential if a failure could cause economic or environmental damage. Importantly, all processes including energy, water and our ash ponds meet structural integrity and safety requirements in the CCR rule. Of emissions. the ponds with a Significant Hazard Potential rating, four will close in 2020 and the It is estimated* that for every ton of fly remainder are expected to close by 2022. ash used to replace traditional cement In addition, we have an ash management program in place that does not necessitate a ton of carbon dioxide (CO2) is saved. the raising of embankments to allow for increased ash storage. Further decreasing risk Thus, preventing this greenhouse gas factors is that our coal ash ponds are significantly smaller than the industry average from entering the Earth’s atmosphere. and we beneficially use more than half of our coal ash. *American Coal Ash Association
Alliant Energy | Environmental, Social and Governance Performance 36 Ecosystem and habitat
Initiatives and support Ecosystem and habitat support Alliant Energy’s environmental stewardship includes a longstanding tradition of ecosystem Native prairie and pollinator habitat 2,516 acres and habitat support. We work diligently to avoid or minimize impacts, protect and enhance natural areas to support various species, including those that are or may become threatened or Karner Blue Butterfly 11,123 acres endangered. Our company’s efforts include the following: conservation plan
Early supporter of the nationwide Candidate Avian Protection Plan Conservation Agreement with Assurances Our voluntary Avian Protection Plan (APP) (CCAA) for preservation of the monarch formalizes and enhances our past practices butterfly. Through this initiative, we continue of avian protection and incorporates industry to evaluate management of our rights-of- best management practices for new way and to create or enhance habitat with construction or rebuilds of our distribution and consideration for the monarch. wind generation facilities. There are two main Partner in the Karner Blue Butterfly Habitat Founding member of the Power- categories for the best practices included in Conservation Plan since 1999 in Wisconsin. in-Pollinators Initiative, the APP – reporting and design. Collaboration with the Wisconsin which is a collaborative Reporting best practices include procedures Department of Natural Resources (WDNR) conservation effort through on recording incidents and what actions to increase lake sturgeon populations in the EPRI. were taken to minimize the risk in those Wisconsin River since 1997. Support of EPRI-sponsored locations. Partner with Trees Forever planting more research aimed at protecting bat species Design-based best practices include various than 1.6 million trees and seedlings and employing voluntary seasonal best retrofits such as increased spacing between throughout communities in Iowa since 1989. practices for wind generation operations. energized and grounding equipment, bird The Branching Out program encourages Member of the Avian Power Line Interaction diverters on electrical lines and covering energy efficiency, environmental awareness Committee (APLIC), the leader in the electric certain electrical parts. and community stewardship while funding utility industry in protecting avian resources and implementing tree-planting projects, while enhancing reliable energy delivery. including 39 such projects in 2019. Assist with installing artificial nesting Support research and other efforts for platforms to deter ospreys from nesting on preservation of the Monarch butterfly, utility poles. including the Iowa Monarch Conservation Consortium, Wisconsin Monarch Collaborative and the Energy Resources Center’s Right-of-Way as Habitat Working Group.
Alliant Energy | Environmental, Social and Governance Performance 37 As our company’s owned wind production increases, the APP also Community tree programs covers best management practices to reduce impacts to birds as well The Arbor Day Foundation named Alliant Energy a 2020 Tree Line USA as bats. At night in the summer and fall during the primary bat migration award recipient in honor of its commitment to protecting and enhancing season, turbines are “feathered” so that the blades are pitched parallel urban trees. This is the 22nd year Alliant Energy has received distinction to the wind and reduce their revolution speed. from Tree Line USA, a partnership between the Arbor Day Foundation Beginning in mid-2020, Alliant Energy is partnering with the Department and the National Association of State Foresters that recognizes utilities of Energy and Natural Power LLC to advance the use of a “Smart Bat for their efforts. Alliant Energy preserves the quality and health of Curtailment” system at its English Farms Wind project. The system trees with proper trimming, pruning, planting, care and underground is being tested to help us avoid impact to bat species, including the utility construction. Employees are trained annually in best tree-care endangered Indiana Bat. practices. Minimizing construction impacts The Alliant Energy Foundation is supporting Alliant Energy uses Horizontal Directional Drilling (HDD) for various Trees Forever’s Growing infrastructure construction projects , such as underground power Futures program this year. lines. HDD is used to This new program hires minimize impacts to local teens to plant and wetlands, waterways, care for trees in under- endangered resourced neighborhoods. species and/or well- The benefits of trees are established native many! landscapes. This construction method Provides shade and can is recognized by Underground wiring is five times more reliable help to lower energy the WDNR and U.S. Fewer outages costs and reduce carbon Increased performance emissions Fish and Wildlife Safer for people and wildlife No tree trimming costs Supports biodiversity Service as a way to More visibly appealing reduce impacts to the and limits impacts from Karner blue butterfly, pests like the Emerald More than 20% of our electric lines are now under- wetlands and other ground rather than overhead. We plan to install Ash Borer environmentally most of our new electric lines underground as well Trees planted in 2019 represent an energy savings of over 14 million sensitive areas. as those that need replacement or upgrade. When kilowatt-hours. considering the full life cycle cost of burying lines versus putting them overhead, the cost is about the That’s equal to reducing approximately 11,000 tons of carbon dioxide same. Construction of underground infrastructure equivalent or roughly 2,100 passenger vehicles driven for one year. will reduce land and vegetation impacts and also protects birds from powerline interactions. Source: Environmental Protection Agency Greenhouse Gas Equivalencies Calculator
Alliant Energy | Environmental, Social and Governance Performance 38 Envision recognition
The EnvisionTM system rates the sustainability of infrastructure projects across the full range of environmental, social and economic impacts. The process measures sustainable efforts using a scorecard that applies credits/points that are subject to verification by an independent third party providing a final overall project score and achievement level. Envision Version 2 focuses on five key categories of sustainability for its framework including: Quality of Life, Leadership, Resource Allocation, Natural World, and Climate and Risk. These five categories encompass 60 credits, resulting in four levels of achievement: Bronze (20%), Silver (30%), Gold (40%) and Platinum (50%). Envision provides an opportunity to enhance our sustainability by providing a formal process with external benchmarks and best practices to implement into our company’s infrastructure projects. The Envision Review Board provides independent verification to show that we’re doing what’s right for our stakeholders and the community. Envision projects use the framework to plan, design and construct with a long-term vision for the future.
Envision status and Project achievement level Marshalltown Generating Station Platinum - April 2017 (Marshalltown, Iowa) ISI Award Article
Dubuque Solar Platinum - April 2018 (Dubuque, Iowa) ISI award article
English Farms Wind Farm Platinum - June 2019 (Montezuma, Iowa) ISI Award Article
Upland Prairie Wind Farm Platinum - June 2019 (Everly, Iowa) ISI Award Article
West Riverside Energy Center Platinum – March 2020 (Beloit, Wisconsin) ISI Award Article
Marshalltown Generating Station
Alliant Energy | Environmental, Social and Governance Performance 39 Cyber and physical security
As cyber and physical threats grow, Alliant Energy remains focused on the security, reliability and resiliency of the energy grid and our data systems. Our programs are routinely reviewed and updated to improve performance with results reported to the Board of Directors. Our cyber security team regularly assesses our processes and procedures against industry standards such as the National Institute of Standard and Technology (NIST) Cybersecurity Framework. This effort includes annually reviewing technology investments to improve our cybersecurity posture as well as ensuring the appropriate level of training to educate Alliant Energy continues to evolve our Alliant Energy works with numerous local, cybersecurity staff. programs and response strategies to improve regional and national stakeholders as part our situational awareness, proactively of its security program and adheres to all reduce risks and ensure that we are ready applicable compliance requirements, protocols to respond to events beyond our control. and reporting. These include: An integral part to our programs includes North American Electric Reliability having protocols in place to address cyber Corporation Critical Infrastructure Protection and physical breaches and threats. These Standards protocols are drilled routinely and are handled Transportation Security Administration Gas according to our Incident Response Plans. In Pipeline Security Guidelines 2019 we participated in an elective tabletop Federal and State Information Privacy Laws exercise conducted by EPRI, which will aid and Regulations in understanding the interactions between operating and information technologies during Our company is also a member of the Edison incident response. Electric Institute’s Mutual Assistance Program and the Electricity Information Sharing and Analysis Center (E-ISAC) collaborative network for rapid sharing of security information.
Alliant Energy | Environmental, Social and Governance Performance 40 Security programs
Board of Directors Chairman and Chief Executive Officer Oversight Executive Vice President and Chief Financial Officer Vice President of Customer and Information Technology Operations Director of Business Services and Information Technology Operations
Integrated Security Operations Centers (ISOC) staffed 24/7/365, Crisis Management Team (CMT), Rapid Response Team (RRT) and Incident Response Team (IRT) with access to dedicated Emergency Operations Management and Center (EOC) collaboration Government partnerships to understand potential threats and develop response strategies Participation in GridEx exercises which are national utility industry incident response drills. Edison Electric Institute mutual assistance network member to speed recovery from significant energy grid damage events
Review of third-party relationships by our legal, sourcing and cybersecurity teams to identify potential risks introduced Risk identification, by vendors, software and hardware manufacturers or professional services providers prevention, Drills and exercises to address physical risks and prepare for extraordinary scenarios, such as cyber attack or extreme preparation and weather response guidelines Regular security assessments of threats and vulnerabilities that lead to the strengthening of cyber and physical security measures at our operating facilities to deter malicious attacks
Annual employee security awareness training Training, education, Company-wide ongoing phishing training and testing program and awareness Education via blog posts, email blasts, and lunch-and-learn events Workplace Violence employee training exercises
EOC Incident Command Center for communication and coordination with local and regional stakeholders Communication Company-wide employee emergency mass notification system protocols and Employee reporting of potential threats or suspicious activity via email, phone, and to security guards internal reporting Company-wide security policies and procedures covering physical, cyber, and critical infrastructure protection Standardized incident command structure with unified language and reporting regardless of incident type
Alliant Energy | Environmental, Social and Governance Performance 41 Business continuity
The energy services provided by our company are essential to the health, safety and well-being of our customers and economically critical to businesses located in the communities we serve. Therefore, Alliant Energy is vigilant in our planning to ensure the continuity of operations. We assess and prepare for potential risks impacting the reliability and resiliency of our operations. We have an established organizational support structure and strategic framework for our company’s Continuity of Operations, Disaster Recovery and Emergency Planning efforts. Specifically, Emergency Preparedness and Response is responsible for the management and implementation of these programs; integrating all levels of planning for events across the enterprise in one place.
Continuity of Operation Plans consist of establishing redundant communication paths, implementing redundant systems, training on alternative methods of operations, or any quickly established form of recovery to minimize disruptions. The plans define Mission Essential, Recovery Essential and Business Essential workers to aid in response and recovery decision-making. The concentration of Continuity of Operations Plans is mitigation and resiliency.
Disaster Recovery Plans focus on immediate intervention taken by an organization to minimize further losses brought on by a disaster and to begin the process of recovery, including activities and programs designed to restore critical business functions and return the organization to an acceptable condition. Disaster Recovery will focus on the loss of facilities or equipment that affect the ability of Alliant Energy to provide essential services expected by our customers, employees and shareholders.
Emergency Planning Program is the continual cycle of planning, training, exercising and revision. Our Training and Exercise Plan (TEP) is designed to routinely conduct a variety of tabletop exercise drills, functional drills and full-scale drills increasing the level of emergency preparedness.
Alliant Energy’s Crisis Management Team (CMT) is orchestrated under the direction of an Incident Commander, who ensures the team is directed by the concepts of Incident Command Structure (ICS). The CMT members are subject matter experts responsible for gathering information from affected departments/business entities and communicating with the CMT providing appropriate information updates. The CMT members are then responsible for relaying information from the CMT back to their appropriate work group.
Alliant Energy | Environmental, Social and Governance Performance 42 Electric system reliability Alliant Energy is continually working to improve our electric system reliability; however, some Alliant Energy is focused on power outages still occur. Many are the result of weather-related events, trees and wildlife. As providing our customers with preventive measures, we conduct tree trimming near our distribution lines and install animal reliable electricity and restoring guards on pole-top transformers. Other events such as digging, construction or auto accidents power quickly. can damage lines, poles or other equipment and cause service interruptions. An electrical 49% of our customers experienced zero overload may also cause the equipment to fail. Regardless of the reason for an outage, Alliant power outages in 2019 Energy works to restore power as quickly, efficiently and safely as possible. 75% of outage events in 2019 restored Year 2015 2016 2017 2018 2019 power within two hours or less System Average Interruption Duration Index (SAIDI)1,4 The average U.S. electricity customer has at least one power outage lasting about IPL 96.1 98.1 94.0 94.2 100.1 two hours based on the latest comparable WPL 69.5 87.2 111.2 68.7 97.8 data from the U.S. Energy Information Alliant Energy 83.6 92.7 102.5 81.6 98.9 Administration. System Average Interruption Frequency Index (SAIFI)2,4
IPL 1.07 1.03 0.97 0.96 1.01 ildlife E i ment WPL 0.66 0.77 0.84 0.65 0.82 Alliant Energy 0.88 0.90 0.91 0.81 0.92
3,4 eat er Customer Average Interruption Duration Index (CAIDI) Po er P lic IPL 89.6 95.3 96.5 98.3 99.2 o ta e ca e WPL 104.8 112.9 132.8 105.8 118.7 Alliant Energy 95.5 102.8 113.2 101.3 107.9 t er 1) SAIDI: the average length of an interruption experienced by the average customer measured in minutes. It is the annual sum of all customer interruption durations over the year divided by the total number of customers served during the year. ree 2) SAIFI: the number of sustained interruptions the average customer experiences. It is the total annual number of customer interruptions divided by the total number of customers served during the year. 3) CAIDI: the average length of an interruption experienced by an interrupted customer measured in minutes. In this index, a customer can be counted as many times as they experience an outage. 4) Based on Alliant Energy outage management system records. In 2015, IPL closed the sale of its electric distribution assets in Minnesota and no longer provides retail sales to customers in this service territory. Data shown reflect IPL system through the closing date in 2015. Metrics are reported excluding planned and major events according to the guidance set forth by applicable regulatory agencies. Major event will be declared whenever extensive physical damage to transmission and distribution facilities has occurred within an electric utility’s operating area due to unusually severe and abnormal weather or event and: wind speed exceeds 90 mph for the affected area; or one-half of one inch ice is present and wind speed exceeds 40 mph for the affected area; or 20% of the affected area total customer count is incurring a loss of service for a length of time to exceed five hours, or; 20,000 customers in a metropolitan area are incurring a loss of service for a length of time to exceed five hours.
Alliant Energy | Environmental, Social and Governance Performance 43 Natural gas system performance
Alliant Energy natural gas transmission pipelines deliver gas directly to some large industrial customers and to our company’s gate stations, where pressure is lowered for final distribution to utility customers. The distribution systems consist of mains, which are usually located along or under city streets, and smaller service lines that branch off the mains and distribute natural gas service to homes and businesses. None of these pipeline systems are constructed of potentially high-risk materials, such as cast and wrought iron or unprotected bare steel.
Alliant Energy is dedicated to keeping its 1 employees, customers, and communities safe System miles IPL WPL Alliant Energy through training, education, and awareness. Gas transmission pipeline 789 38 827 All Alliant Energy journeymen crews and Distribution gas mains 4,359 4,730 9,089 service responders are trained on emergency response and are available 24 hours a day, 1 Gas Distribution Main Material IPL WPL Alliant Energy seven days a week. In addition, our company’s (% based on miles) Transmission and Distribution Integrity Plastic 60% 69% 65% Management Programs provide a process for inspecting and assessing the condition of Cathodically Protected Coated Steel 40% 31% 35% Alliant Energy-owned natural gas pipelines and Gas Distribution Services Material1 IPL WPL Alliant Energy establishing a maintenance program based (% based on number of services) on regulatory requirements and best industry Plastic 70% 84% 76% practices. Cathodically Protected Coated Steel 30% 16% 24% 1) Based on internal data and regulatory filings. Ga emer enc re on e rate
100% 99.6 99.6 99.7 99.7 99.7 98%
96%
94%
92% E ES 90% 2015 2016 2017 2018 2019
% Responses within 60 minutes Target (98%)
Alliant Energy | Environmental, Social and Governance Performance 44 Employee and contractor safety
Our company is focused on the proactive Our Safety Commitment: Live safety. Everyone. Always. management of our safety performance. We are doing this by holding regular safety conversations Live safety. Everyone. Always. Alliant Energy is committed to providing a safe with our workers in addition to conducting safety environment for our employees, visitors, customers, contractors, vendors observations of their behaviors. This will move our and the communities in which we live and work. Our first priority is that safety culture toward measuring the presence of nobody gets hurt. It is critical that we all promote an environment in which safety versus the absence of injuries. Our strategy we do not knowingly violate safety laws, rules, regulations or policies, or implements this through the increased use of create conditions that are unsafe physically and emotionally. Each of us has the leading indicators – such as “good catches” and responsibility to report a workplace condition that may be unsafe and has the right “near misses” – to help us recognize, remedy and – at any time – to shut down an unsafe job or report a safety concern in good faith. reduce our safety risks before a problem occurs. Annual Safety Management Plans are developed that focus on targeting and reducing specific risks or incidents from the previous year.
Safety is integral to our company’s culture. We are proud of our strong safety culture, which stems from our executive and local safety leadership teams. Working together, these teams establish the company’s safety vision, strategy and priorities as well as ensure education and recognition of employee actions that improve our safety culture. This leadership provides strong support for sustained growth of both employee and public safety programs and initiatives at Alliant Energy. Results are reported quarterly to the Operations Committee of the Board of Directors, which provides oversight of the company’s safety programs.
Alliant Energy | Environmental, Social and Governance Performance 45 Programs and management Employee safety performance is tracked according to Occupational Safety and Health Administration (OSHA) requirements. Our company’s comprehensive program includes leading indicators such as tracking and reporting for near misses and unsafe conditions. This prevents similar incidents from occurring elsewhere and helps to identify and correct potential hazards to reduce risk to our employees. Internal safety assessments are conducted to audit our generation facilities on a three-year rotational schedule. These assessments include wall-to-wall inspections and program safety reviews. All findings are entered into our safety management system and tracked until completion.
Alliant Energy is committed to hiring safe Alliant Energy’s safety management program Public safety is equally important as we contractors. We have partnered with focuses on proactive safety measures to interact with our customers to provide energy ISNetworld to provide a consistent process prevent incidents from occurring, however our to their homes and businesses. In addition to for prequalification, selection, performance company still tracks reactive safety measures. awareness campaigns, we offer natural gas monitoring, and review of safety, health, To further guide improvement efforts, and electric public safety presentations at and environmental aspects of contractor Alliant Energy uses benchmarking data from no cost to the communities we serve. Other management. Our contractors are required to industry groups to learn from our peers and tools include our free online resources and have a passing grade in ISNetworld. We have sets internal targets such as total recordable training programs and guidance to assist local an established process reviewing contractor incident rate (TRIR). In 2020, we have set a emergency responders. safety and health management programs, plus goal of a 15% reduction from our three-year track the total recordable incident rate which TRIR average. was 1.03 in 2019. Furthermore, our contracts have comprehensive minimum safety requirements that establish clear expectations to help us monitor and correct any safety issues or concerns that might occur during completion of a project. Our contractors are also required to complete Alliant Energy’s safety orientation training before performing work at our sites. These measures are put in place to reduce risk and increase the safety and health not only for the contractors, but also for Alliant Energy’s employees and the public.
Alliant Energy | Environmental, Social and Governance Performance 46 Alliant Energy’s safety programs and management Leadership Executive Safety Leadership Team Local Safety Leadership Teams Safety Perception Surveys Industrial Athlete and Ergonomics Employee Programs Training SafeStart Training Union Blue Hat Program Safety Management Plans On-site Safety Compliance Assessments Management Systems Online Safety Management System Safety Program Compliance Assessments Safety Conversations Project Design Reviews Preventative Measures Leading Metrics Pre-Job Safety Briefing Process ISNetworld System for Safety Performance Contractor Safety Safety Program and Regulatory Compliance Reviews Community Safety Resources and Public Presentations Public Safety Ergonomics Consulting for our Customers Web-based Safety Educational and Training Programs
Alliant Energy - Employee Safety 2015 2016 2017 2018 2019
Recordable Incident Rate1 2.87 2.35 2.39 2.20 2.73
Lost-time Incident Rate2 0.52 0.57 0.33 0.32 0.46
Severity Rate3 16.0 14.9 6.9 6.6 12.43
Near Miss Frequency Rate4 NA NA NA 16.81 15.04
Employee Fatalities 0 0 0 0 0
Alliant Energy - Contractor Safety 2015 2016 2017 2018 2019
Contractor Recordable Incident Rate5 1.20 1.21 1.16 1.08 1.03
Contractor Fatalities 0 1 0 0 0
1) The number of work-related injuries or illnesses requiring more than first-aid treatment, per 100 employees. 2) The number of lost workdays per 100 employees from a recordable incident resulting in an employee’s inability to work the next full work day. 3) The number of days away from work per 100 employees as a result of work-related injuries or illnesses. 4) The number of near misses reported per 100 employees. 5) The number of work-related injuries or illnesses requiring more than first-aid treatment, per 100 contract employees from ISNetworld.
Alliant Energy | Environmental, Social and Governance Performance 47 Supplier programs
Alliant Energy approaches relationships with Conduct and ethics: All suppliers are expected to adhere to the Alliant Energy suppliers the way we approach everything Code of Conduct. In particular, that our suppliers will participate in bid processes else we do: focused on delivering energy and and procurement practices in accordance with best practices. Best practices include exceptional service that our customers and communicating only with the named Alliant Energy representatives during contract communities can count on – safely, efficiently negotiations or bid evaluation, refraining from “back door selling,” and attempts to and responsibly. influence Alliant Energy employees or senior management in order to obtain work. Anti-bribery and anti-corruption: Alliant Energy will not tolerate any kind of corrupt activity. We comply with all anti-corruption laws. That means we do not pay bribes – providing anything of value to illegally influence business decisions, obtain illegal advantages over other parties, or reward another party for past illegal actions. We do not pay kickbacks – illegal compensation for favorable treatment in business relationships or improper services. And we do not make facilitation payments – illegal payments to “grease the skids” to expedite services of governments or government officials. Supplier and contractor safety requirements: Since 2013, our company has partnered with ISNetworld to monitor safety performance of contractors performing physical work, such as repairing equipment and building new facilities. This comprehensive process examines key leading and lagging safety performance indicators. In addition, some contractors have on-site safety evaluations conducted in the field. The program enables our company to objectively manage contractor safety prequalification requirements. Additional information and metrics are provided above in the Employee and Contractor Safety section. Supplier diversity: Alliant Energy partners with small businesses and those held by minorities, women, service-disabled veterans and LGBTQ owners so that our suppliers reflect the diversity of our communities. We work with numerous certifying agencies to qualify our diverse suppliers. Alliant Energy provides equal access for all qualified businesses, including both direct Tier 1 diverse suppliers and also Tier 2 suppliers that report on diverse spend. To promote the use of diverse suppliers, all bids over $100,000 are required to consider a diverse supplier. Digital initiatives: In 2019, our company started implementation of a new electronic document processing system to replace manual invoice and purchase order processes with over 300 suppliers. By going digital, our new supplier portal is now more sustainable providing many benefits including: improved operational efficiency; providing flexible virtual access; streamlining processes eliminating costs; and, reducing environmental impacts.
Alliant Energy | Environmental, Social and Governance Performance 48 Workforce culture and engagement
Alliant Energy is continuing to embed a culture of speed, fresh thinking and stronger teams among our employees. A key part Alliant Energy’s of this effort is continuing our Grow-Optimize-Transform Energy Employee Resource culture-shaping initiatives. By strengthening our culture, our Groups employees can all work together differently to benefit customers. Evolving Professionals Connection Diversity, Equity and Inclusion Alliant Energy is one of 230 companies worldwide selected Equality Alliance Diversity, Equity and Inclusion for the 2020 Bloomberg Gender- Multicultural Network (DE&I) plays a key role in Equality Index (GEI), which Sustainability Squad supporting our Care for distinguishes companies committed others Value. Our vision is to Women’s Network to transparency in gender reporting be recognized as a leader for our inclusive Veterans’ Alliance and advancing women’s equality. culture and practices that benefit co-workers, customers and communities. We provide Our Employee Resource Groups give resources to our employees that foster our all employees an opportunity to grow DE&I vision. professionally, network, build community relationships and socialize with other In 2019 and 2020, our company received employees. a perfect score of 100 on the Corporate Equality Index (CEI) administered by the We are also reaching out to our stakeholders to Human Rights Campaign Foundation to share their perspectives by joining conversation benchmark LGBTQ+ rights, policies and at #iamenergy. practices.
In October 2019, Alliant Energy Chairman, 1 Workforce Data 2015 2016 2017 2018 2019 President and CEO John Larsen signed a shared Pledge to Diversity and Inclusion at Minority (% of total employees) 5.4% 5.2% 5.3% 5.1% 5.0% the 2019 Wisconsin Governor’s CEO Round Female (% of total employees) 26.1% 25.2% 25.8% 26.1% 25.8% Table. Voluntary employee turnover rate 3.0% 3.5% 2.5% 4.0% 5.0% In February 2020, we held a Day of (excluding retirements) Understanding where executives met with approximately 400 employees throughout 1) Data based on Alliant Energy internal records. our service territory and held conversations about unconscious bias.
Alliant Energy | Environmental, Social and Governance Performance 49 Development and engagement Health and wellness Collective bargaining
Our employees are encouraged to take Alliant Energy cares about the wellness of our and labor relations advantage of available opportunities that employees and their families. The company Alliant Energy is committed to constructive foster their continued growth. We offer provides a comprehensive Power Your Health dialogue and good faith negotiations with resources and opportunities such as on-the- program to support all employees wherever legally recognized unions. As of the end job training, in-person and virtual courses, they are in their health journey. On an annual of 2019, 54% of Alliant Energy employees on-line self-paced training, cohort programs, basis, we offer on-site health screenings along were covered under collective bargaining assessments and micro-learning related to job with a wellness assessment and consultation agreements. Alliant Energy respects the skills and leadership development. We have with a health coach. Alliant Energy also right of our employees to join, form or not a Talent Development Team that collaborates rewards employees’ efforts (and those of their to join a labor union without fear of reprisal, with leaders to provide customized learning spouses) for making healthy lifestyle changes intimidation or harassment. opportunities for their teams. Employees through the Virgin Pulse platform. We partner with our unions as they serve are also eligible for tuition reimbursement Alliant Energy also provides paid time-off to an important role in developing our talent of up to 70%, which can be used to further care for and bond with a new child. These pipeline and training our employees. In our their education. Our programs to identify and benefits were expanded in 2020. This includes quest for an injury-free workplace, our union coach future leaders include extensive use 10-12 weeks maternity leave, 4-6 weeks partnerships include safety goals to ensure of 360-degree feedback surveys and external adoption leave, and up to 2 weeks parental all workers are engaged. The Union Blue Hat assessments. leave. Program includes six full time union safety In our efforts to re-deploy our workforce positions reporting directly to the presidents when needed, we look to help coordinate of our Iowa and Wisconsin utilities. employee interests, skills and abilities with internal opportunities. Supporting activities include résumé development and interview Future workforce assistance, access to apprenticeship modules The workforce skill sets required in the energy industry are changing at a faster pace than and job shadowing, and career days to explore ever. We leverage partnerships to recruit interns and apprentices to successfully fill our future other jobs in the company. employee needs. Our DE&I initiatives include programs to encourage diverse employees in our technical and field operations. We make sure our interns take on challenging and meaningful projects. In 2019, our company hired 65 interns from 22 colleges and universities. The class was made up of 53% men and 46% women. More than a quarter were diverse. Our Apprenticeship Program offers paid training combining on-the-job and classroom study. Completing the program achieves journeyperson status and fulfills up to 60 credits toward an associate’s or bachelor’s degree. Through 2019, our company had over 200 apprentices.
Alliant Energy | Environmental, Social and Governance Performance 50 Economic development Community involvement
Alliant Energy is focused on providing Our operations organization works closely Under the leadership of the presidents of our sustainable energy solutions for existing and with the local communities we serve. Key Iowa and Wisconsin utilities, our company has new businesses in our service area. In 2019, account managers and managers within a long-standing history of hosting conversation there were 44 new industrial projects across our local operations teams are assigned to events within the communities we serve. For our service area. These projects generated specific communities in our service area. Our example, in our Iowa service area, events nearly $1.2 billion in new capital investment community contacts visit and communicate are held regionally across the state to allow and created more than 2,600 new jobs. with their communities at least twice each interested community leaders to attend and Our key account managers and economic year, while most interact several more times interact in a small group setting with our development team had a hand in the planning annually. Additionally, we offer a quarterly executives. and implementation of these projects. newsletter to community representatives with company information, examples of successes Alliant Energy Community Outreach Events Our company also supports future in other communities and news about our Year Events Participants Cities community expansion efforts by offering programs and services. 2019 10 112 51 16 growth sites in Iowa and Wisconsin. These sites have completed key reviews 2018 6 66 35 and assessments typically needed to make 2017 7 65 32 properties development-ready including for 22 different communities have hosted the event environmental clearance, critical habitat, Frequent dialogue provides direct feedback wetlands, archaeological surveys, local zoning, while providing another way for our company title work, utility infrastructure and preliminary to collect, record and address any customer engineering plans. concerns in a timely manner. In addition, our Alliant Energy’s State-certified Development Sites company has an internal team focused on responding to and resolving complaints as a Site Location Acres key part of our customer-focused strategy. Beaver Dam Commerce Park Beaver Dam, 520 Wisconsin Alliant Energy’s Iowa utility president, Terry Kouba, Big Cedar Industrial Center Cedar Rapids, 1,391 is seen at the head of the table meeting with Mega Site Iowa community leaders at one of our 10 roundtable Helgerson Flats Industrial Ottumwa, 64 events in 2019. Center Iowa Prairie View Industrial Center Ames, Iowa 730
Alliant Energy | Environmental, Social and Governance Performance 51 Customer relations
We gain new insights when customers rate their experience. We strive to deliver essential services, restore power, trim trees and install meters in a way that requires no effort from our customers. Ongoing surveys ask them to tell us how we did. In 2019, three-fourths of our customers said they found it easy to work with us. This rich data source gives us concrete actions to improve customer service. Effortless experiences create customer loyalty, an important performance metric on our corporate scorecard. This holistic measure The Powerhouse is a $38 million project that repurposed the decommissioned Blackhawk Generating Station on reflects the views of residential and business the Rock River into a 120,000-square-foot student center customer groups so we can understand at Beloit College. the strength of our relationship with each important segment. In addition, Power Thinkers is our voluntary Facility closure online community consisting of over 3,200 residential customers from Iowa and Our company has retired several fossil-fueled Once a generating station is retired, we work Wisconsin. This interactive resource allows us electric generating stations as we continue to to decommission it and redevelop as much to hear directly from customers to provide fast transition toward cleaner energy. These facility of the site as possible. We work closely with and actionable feedback. closures directly impact the communities they local officials as well as state and federal are located in. Our goal is to provide as much regulatory agencies to meet all environmental, lead time as possible to employees and the health and safety requirements to properly community regarding a facility retirement. reclaim the land. Remaining plant assets This allows us to do everything we can to and demolition materials are repurposed or assist the impacted employees, keep regular recycled whenever feasible. Our goal is to communications with the community and leave the site safe and environmentally sound work to support the transition throughout and to be ready for future economic development after the facility closure. by the community.
Alliant Energy | Environmental, Social and Governance Performance 52 Community giving
Alliant Energy and its employees support the communities in which we live and work. These efforts take place through a combination of Foundation, corporate and employee giving and More than $7.2 million volunteerism. The Foundation focuses on four main areas: Hunger and Housing; Workforce in 2019 and over $36 million Readiness; Environmental Stewardship; and Diversity, Safety and Well-being. It also matches each qualifying donation of $50 or more (up to an individual maximum of $3,500 per year) to any given in the past five years. qualifying 501(c)3 charitable organization. Learn more about Alliant In 2019, through the giving spirit of our employees and retirees, this program matched donations Energy’s community of approximately $682,000. Our corporate giving includes Hometown Care electric and heating giving efforts at bill assistance, United Way, safety, community support, and diversity and inclusion programs. Employee donations support our company’s United Way campaign and individually selected alliantenergy.com/seethegood. nonprofit causes. Plus, our employees also donate their valuable time in local communities. In 2019, nearly 93,000 volunteer hours were logged for various initiatives, including Days of Caring, Habitat for Humanity, food drives, tree planting and many other charity events.
rive t n er
or orate Givin Em lo ee etiree ro
o ndation
$7.25M 1.85M 140+ 1,000+ 92,701 total charitable meals generated scholarships community volunteer hours giving partnerships
Alliant Energy | Environmental, Social and Governance Performance 53 Regulatory alignment
Alliant Energy’s Values drive our political engagement philosophy. Strategic legislative and regulatory alignment is crucial to our ability to deliver the energy solutions and exceptional service that our customers and communities count on in a rapidly evolving energy industry. Alliant Energy advocates at the federal, state and local levels for improved policy outcomes enabling our company to provide reliable, affordable and clean energy to our customers and further the growth of our communities.
Our key advocacy areas include electrification, wind and solar tax credits, renewable cost reforms, economic development, grid infrastructure modernization, improving regulatory efficiency, broadband deployment, telecommunications and transmission policies, and supporting energy assistance programs for low income households. Our company’s political engagement policy, spending and lobbying activities are disclosed online.
Our advocacy and political activities are governed by our Political Engagement Guidelines. The Nominating and Governance Committee of the Board of Directors provides oversight and regularly reviews our company’s participation in the political process. We comply with all laws, including those surrounding disclosure, lobbying activities, and political contributions or expenditures and we provide full transparency. The company is prohibited from making direct contributions to candidates for political office. However, our employees have the opportunity to engage with elected officials through Alliant Energy’s voluntary, nonpartisan political action program.
Alliant Energy | Environmental, Social and Governance Performance 54 Corporate governance S ill Skills and and qualifications alification Corporate governance plays an important role in sustainability at Alliant Energy. Strong corporate governance starts with a strong, diverse and independent Board of Directors Strate ic eader i Men 60% Gender 40% Women providing oversight over management and the company. diversity inancial c men Our Board consists of directors who have a diversity of skills, backgrounds, age, tenure and gender. All members, except our Chairman and CEO, are independent. Sustainability eration is overseen by the Board’s Nominating and Governance Committee, consisting of solely independent directors. Below is a summary of our Board of Directors. Additional information tomer Per ective can be found on the Board and corporate governance website. 20% e al and e lator Board of Directors Ethnic Men 60% Gender 40% Women Nine out of ten current directors are independent diversity mandiversity e o rce E ec om Lead independent director with clearly defined and robust responsibilities Executive sessions of independent directors held at each regularly scheduled board i ana ement meeting ec S tem er ec rit Annual board and committee self-assessments Under 55 Share ownership guidelines based on total annual retainer 20% Environment Safet 20% Director resignation policy for directors in uncontested elections that do not receive Average majority “for” vote Men 60% Gender 40% Women Ethnic iver it 40% 55-59 diversity diversity Over 65 20% age 58
20% Board diversity, age and tenure 60-65
Under 55 20% 20%
Gender Ethnic Average Average Men 60% 40% Women 40% 55-59 Over 7 40% tenure 60% 7 years diversity diversity age 58 years or less Over 65 20% 7.4 years
20% 60-65
Under 55 20% 20%
Ethnic Average 40% 55-59 Average Over 7 40% tenure 60% 7 years diversity age 58 years or less Alliant Energy | Environmental, Social and GovernanceOver 65 20% Performance 7.4 years55
20% 60-65
Under 55 20%
Average Average 40% 55-59Over 7 40% 60% 7 years age 58 tenure Over 65 20% years 7.4 years or less
20% 60-65
Average Over 7 40% tenure 60% 7 years years 7.4 years or less
Base salary Alliant Energy’s executive compensation program is designed to promote our strategic plan. The Compensation20% and Personnel Committee of the Board of Directors approves performance compensationCurrent goals that include ESG metrics. The annual performance pay plan rewards financial Long-termperformance,60% CEO target as well as operational performance that aligns with our sustainability goals and values includingpay mix customer20% Short-term experience, diversity and environmental performance. The use of financial and operational metrics avoids risks associated with excessive focus on a single financial performance measure. Alliant Energy’s long-term equity incentive pay rewards long-term absolute growth through Base salary performance-restricted stock units and relative growth through performance shares and aligns management’s20% interests withBase thosesalary of our shareowners. Customer Current 20% The following are key compensation highlights. More information15% can Experience be found in the CEO target Annual Long-term 60% Current Compensationpay mix Discussion and Analysis of EPSour 70%2019performance proxy statement. CEO20% targetShort-term Long-term 60% pay 10% pay mix 20% Short-term Environmental 5% Diversity Base salary Key Compensation Governance and Pay Practices Base salary Regular reviews of the program by the Compensation and 20% 38% Customer Personnel Committee Current 15% Experience Annual Customer Double-trigger change-in-control provisions in our Long-termOther60% CEO target EPS 70% performance Experience Annual 15% severance agreements and long-term awards NEO target pay mix 20% Short-term pay performance10% pay mix EPS 70% Environmental Stock ownership guidelines for executive officers increased Long-term 42% 20% Short-term 5% pay 10% Environmental in 2019 Diversity 5% Stock ownership guidelines for directors Diversity Base salary Dividends paid on equity awards only if performance 38% Base salary targets are met or vesting is completed Performance Customer Shares Experience Performance metrics encourage achievement of absolute 38% Annual 15% Other 35% growth, relative growth, financial goals and operational EPS 70% performance NEO target goals Other pay Performance10% pay mix Long-term Environmental Long-term 42% NEO20% targetShort-term 35% Restricted No hedging and pledging of company stock incentives Stock5% Units pay mix 20% Short-term Long-term 42% Diversity Clawback language in our annual performance pay plan 30% Restricted No Section 280G tax gross-up provisions in our change-in- Base salary Stock Units control agreements 38% Performance No severance payment multiplier exceeds 2.0 Shares 35%Performance Limited perquisites for our executive officers Other Shares 35% NEO target Performance Alliant Energy | Environmental, Social and Governance Performance Long-term Restricted56 pay mix 20% Short-term 35% Long-term 42% incentives Stock Units Performance Long-term 35% Restricted incentives Stock Units Restricted 30% Stock Units Restricted 30% Stock Units Performance Shares 35%
Performance Long-term 35% Restricted incentives Stock Units
Restricted 30% Stock Units United Nations Sustainable Development Goals Alliant Energy Sustainable Development Goal Alignment
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Alliant Energy | Environmental, Social and Governance Performance 57 Sustainability Accounting Standards Board
The Sustainability Accounting Standards Board (SASB) is a voluntary reporting framework for ESG metrics. SASB provides proposed metrics for electric utilities as part of the infrastructure sector. The summary below aligns with the SASB framework including Alliant Energy’s 2019 performance data and mapping to other sections of this performance report or other relevant public disclosures. The information may be provided using different reporting protocols or methodologies to be consistent with our company’s various regulatory submissions or accepted industry practices.
SASB Summary – Electric Utilities & Power Generators Standard (Version 2018-10) Topic SASB Metric Alliant Energy Information
(1) Gross global Scope 1 (1) Scope 1 – 14,296,481 Metric tons CO2e emissions (2) 35% (The Ottumwa Generating Station and Columbia Energy Center are subject to air permit (2) % covered under emissions- requirements) limiting regulations, and (3) 100% (3) % covered under emissions- reporting regulations
Greenhouse gas (GHG) 13,052,905 Metric tons CO2e emissions associated with power Greenhouse deliveries Gas Emissions & Discussion of long-term and Refer to Energy and Climate section of this document. Energy Resource short-term strategy or plan to manage Scope 1 emissions, Planning emissions reduction targets, and an analysis of performance against those targets
(1) Number of customers (1) 971,301 served in markets subject to (2) 100% renewable portfolio standards (RPS) (2) % fulfillment of RPS target by market
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Alliant Energy | Environmental, Social and Governance Performance 58 SASB Summary – Electric Utilities & Power Generators Standard (Version 2018-10)
Air emissions of the following (1) NOx – 5,422 Metric tons pollutants: (2) SO2 – 7,184 Metric tons
(1) NOx (excluding N2O), (3) PM10 – 504 Metric tons (2) SOx, (4) Pb – 0.18 Metric tons (3) Particulate matter (PM ), Air Quality 10 (5) Hg – 0.03 Metric tons (4) Lead (Pb), and % of each in or near areas of dense population – Our company operations are not located in or near (5) Mercury (Hg); any large urban areas or cities. In addition, Alliant Energy’s electric generation emissions have been % of each in or near areas of significantly reduced by air quality control systems. Our company has achieved our air emissions
dense population performance metric for NOx, SO2, and Hg one year early respectively achieving over 80%, 90%, and 90%
reductions. Co-benefit reductions of PM10 and Pb also result from our air quality control systems.
(1) Total water withdrawn (1) Total water withdrawn – 516,974 thousand cubic meters (2) Total water consumed (2) Total water consumed – 22,247 thousand cubic meters % of each in regions with High % of each in regions with High or Extremely High Baseline Water Stress – Being located in the Midwest, or Extremely High Baseline Alliant Energy historically has not been directly impacted by droughts or water scarcity issues that have Water Stress caused operational slow-downs or temporary shortages as has been experienced by utilities located in water-stressed regions of the United States. Water Number of incidents of non- In 2019, Alliant Energy received one notice of non-compliance for a missing construction storm water Management compliance associated with discharge permit at a wind farm. There was no fine or penalty imposed for this incident. water quantity and/or quality permits, standards, and regulations
Description of water Refer to Water Management section of this document. management risks and discussion of strategies and practices to mitigate those risks
Amount of coal combustion CCR generated – 313,049 Metric tons residuals (CCR) generated CCR recycled – 60% % recycled Coal Ash Management Total number of CCR Refer to Coal combustion residuals section of this document. impoundments, broken down by hazard potential classification and structural integrity assessment
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Alliant Energy | Environmental, Social and Governance Performance 59 SASB Summary – Electric Utilities & Power Generators Standard (Version 2018-10)
Average retail electric rate for The following Alliant Energy rates are based on 2019 revenue and sales to retail customers from the electric operating information in the annual Form 10-K report to the U.S. Securities and Exchange (1) residential, Commission. (2) commercial, and Residential 15.16 cents/kilowatt-hour (3) industrial customers Commercial 11.90 cents/kilowatt-hour Industrial 7.77 cents/kilowatt-hour Total retail 10.95 cents/kilowatt-hour Additional information on the current status of our rate schedules and regulatory filings is available at the following: IPL – Iowa Utilities Board website: https://iub.iowa.gov/ Energy WPL – Wisconsin Public Service Commission website Affordability https://psc.wi.gov/Pages/Home.aspx Number of residential customer Disconnections – 53,095 electric disconnections for Reconnected in 30 days – 76% non-payment, percentage In response to the COVID-19 pandemic, Alliant Energy suspended electric disconnections and provided reconnected within 30 days resources to help our customers. We continue to work closely with our state regulatory agencies to manage the transition during the economic recovery including offering flexible payment plans and other measures.
Discussion of impact of external See Risk Factors section of Alliant Energy’s annual Form 10-K report to the U.S. Securities and Exchange factors on customer affordability Commission of electricity, including the economic conditions of the service territory
(1) Total recordable incident rate (1) TRIR – 2.73 (TRIR) Workforce Health (2) Fatality rate – 0 (2) Fatality rate & Safety (3) NMFR – 15.04 (3) Near miss frequency rate (NMFR)
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Alliant Energy | Environmental, Social and Governance Performance 60 SASB Summary – Electric Utilities & Power Generators Standard (Version 2018-10)
% of electric load served by % customer meters served by Advanced Metering Infrastructure based on EIA 861 report: smart grid technology IPL – 99% End-Use WPL – 99% Efficiency & Customer electricity savings Lifetime electricity savings for 2019 measures based on 12-year average lifespan: Demand from efficiency measures, by IPL – 2,097,755 MWh market WPL – 1,389,636 MWh
Number of incidents of non- Refer to Cyber and physical security section of this document. Alliant Energy’s security program adheres compliance with physical and/ to all applicable compliance requirements, protocols and reporting. There were no material incidents in or cybersecurity standards or 2019. regulations
(1) System Average Interruption (1) SAIDI – 98.9 minutes Grid Resiliency Duration Index (SAIDI) (2) SAIFI – 0.92 (2) System Average Interruption (3) CAIDI – 107.9 minutes Frequency Index (SAIFI) (3) Customer Average Interruption Duration Index (CAIDI)
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Alliant Energy | Environmental, Social and Governance Performance 61 SASB Summary – Electric Utilities & Power Generators Standard (Version 2018-10)
Number of customers served: Number of customers based on EIA 861 report: (1) residential (1) residential – 819,473 (2) commercial (2) commercial – 145,246 (3) industrial (3) industrial customers – 2,517
Total electricity delivered to: Total electricity delivered based on Alliant Energy’s annual Form 10-K report: (1) residential (1) residential – 7,207,000 MWh (2) commercial (2) commercial – 6,466,000 MWh (3) industrial (3) industrial – 11,448,000 MWh (4) all other retail customers (4) all other retail customers – 79,000 MWh (5) wholesale customers (5) wholesale customers – 2,641,000 MWh
Length of transmission and Electric lines 70,650 km General distribution lines Total electricity generated, 2019 Electricity Production MWh % percentage by major energy Coal 8,643,022 37.84% source, % in regulated markets Natural Gas 11,059,566 48.43%
Oil 4,958 0.02%
Hydroelectric 227,622 1.00%
Solar 6,349 0.03%
Wind 2,895,846 12.68%
Total 22,837,363 100%
Total wholesale electricity 3,007,440 MWh wholesale power purchased from the Midcontinent Independent System Operator, Inc. purchased (MISO) Regional Transmission Organization.
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