32
CONTENTS EEI ESG and Sustainability qualitative template 2 Research and development 6 Stakeholder outreach 7 Cyber and physical security 8 Electric system reliability 9 Natural gas system performance 10 Employee safety performance 11 Workforce 12 Supplier programs 13 Community giving 14 Energy efficiency 15 Renewable energy 16 Environmental management 17 Thermal emissions 19 Greenhouse gases 21 Water management 23 Waste management 25 Coal combustion residuals 26 Ecosystem and habitat support 27 LEED certification 28 Envision TM recognition 28 Corporate governance 31 Executive compensation 32 About Alliant Energy Alliant Energy Corporation (NASDAQ: LNT) is a Midwest U.S. energy company with annual operating revenues of more than $3.5 billion. Our company is primarily engaged in electric generation and the distribution of electricity and natural gas. We serve approximately 965,000 electric and 415,000 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 WPL provides retail and wholesale electric and retail gas service in Wisconsin. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa. Headquartered in Madison, Wisconsin, Alliant Energy has approximately 4,000 employees and more than 25,000 shareowners of record. Based on electric sales, the largest cities served in Iowa and Wisconsin are Cedar Rapids and Beloit, respectively. Environmental, Social and Governance Sustainability Performance 1 Alliant Energy Environmental, Social and Governance Sustainability Performance

Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

  • Upload
    others

  • View
    1

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

C O N T E N T S

EEI ESG and Sustainability qualitative template . . . . 2

Research and development . . . . . . . . . . . . . . . . . . . . . . . 6

Stakeholder outreach . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Cyber and physical security . . . . . . . . . . . . . . . . . . . . . . 8

Electric system reliability . . . . . . . . . . . . . . . . . . . . . . . . 9

Natural gas system performance . . . . . . . . . . . . . . . . . 10

Employee safety performance . . . . . . . . . . . . . . . . . . . 11

Workforce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Supplier programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Community giving . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Energy efficiency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Renewable energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Environmental management . . . . . . . . . . . . . . . . . . . . . 17

Thermal emissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Greenhouse gases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Water management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Waste management . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Coal combustion residuals . . . . . . . . . . . . . . . . . . . . . . 26

Ecosystem and habitat support . . . . . . . . . . . . . . . . . . 27

LEED certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

EnvisionTM recognition . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Corporate governance . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Executive compensation . . . . . . . . . . . . . . . . . . . . . . . . 32

About Alliant Energy

Alliant Energy Corporation (NASDAQ: LNT) is a Midwest U.S. energy company with annual operating revenues of more than $3.5 billion. Our company is primarily engaged in electric generation and the distribution of electricity and natural gas. We serve approximately 965,000 electric and 415,000 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 WPL provides retail and wholesale electric and retail gas service in Wisconsin. IPL also sells electricity to wholesale customers in Minnesota, Illinois and Iowa. Headquartered in Madison, Wisconsin, Alliant Energy has approximately 4,000 employees and more than 25,000 shareowners of record. Based on electric sales, the largest cities served in Iowa and Wisconsin are Cedar Rapids and Beloit, respectively.

Environmental, Social and Governance Sustainability

Performance

1Alliant Energy Environmental, Social and Governance Sustainability Performance

Page 2: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Sustainability oversightWe engage in sustainability at all levels and in all departments of the company because of its importance to our company, our values and our strategy. Our system of governance helps us most effectively integrate sustainability throughout the organization.

Board of Directors

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 these matters

Consists of experienced and diverse members Consists of independent directors other than the Chief Executive Officer

Operations Committee of the Board of Directors

Responsible for overseeing environmental strategy and policy, including climate and carbon issues

Reviews and approves the Corporate Sustainability Report 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

Sustainability Leadership Team

Responsible for aligning and advancing sustainability throughout the company Provides guidance on meaningful sustainability goals, fosters cross-functional

collaboration, identifies innovative approaches and evaluates strategic sustainability opportunities, champions our sustainability priorities to enable integration throughout the company

Consists of decision-makers from throughout all departments in the company

Our sustainability pillars and strategySustainability means doing the right thing, with an eye toward the long run. Our sustainability strategy looks into the future, promoting responsible company growth through the economic, social and environmental decisions we make today. Because it touches on all six of our Values, sustainability factors into every one of those major decisions.

That’s why sustainability is built into how we provide energy. Our long-term strategic plan includes carbon reductions and the expansion of renewable energy. But we also recognize that our company’s growth depends on the support of strong, thriving communities in which we serve. And we know that investing in the personal development and well-being of our employees brings value many times over.

Achieving balance has always been integral to our company’s operations. Our energy vision and strategy embraces four guiding principles that are grounded in sustainability:

Implementing innovative customer solutions

Advancing clean energy

Building a smarter, stronger power grid

Strengthening our communities

All of these sustainable principles are part of “powering beyond,” which will grow, optimize and transform our business well into the future.

EEI ESG and Sustainabi l i ty qual itat ive template

Alliant Energy Environmental, Social and Governance Sustainability Performance 2

Page 3: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Sustainability plans and progressLocated in the Midwest, our customers reside in mid-size cities, smaller towns or villages, and rural areas. Our strategic plan aims to expand the portfolio of cleaner and renewable resources while accelerating energy growth to help minimize individual customer prices. We are also modernizing the power grid and gas distribution system to enhance safety, reliability and be more price-competitive and market-responsive for customers.

Coal Coal Coal

Natural gas

Natural gas

Naturalgas

Nuclear NuclearOil OilOil

Renewables RenewablesRenewables

2005 20242018

Transitioning our energy resources*

*Based on approximate capacity in megawatts As of December 2019

44% 37%

5%9%

5%

31%

6%

42% 23%

33%

43%

20%

1%1%

Transitioning our energy resources*

Cleaner energy

Advancing clean energy is a guiding principle to our company’s future sustainability .

By 2030:

Renewables will be over 30% of our energy mix

Carbon dioxide (CO2) emissions from fossil-fueled generation will be reduced by 40%

Water supply needs from fossil-fueled generation will be decreased by 75%

By 2050:

We will eliminate all existing coal from our energy mix

CO2 emissions from fossil-fueled generation will be reduced by 80%

Our strategy will continue to adapt based on future economic developments and evolving energy technologies and trends in the communities we serve.

Oil1%

IPL2024Coal Natural

gas

Renewables

42%

21% 36%WPL2024

Coal Naturalgas

Renewables

22%

26% 52%

*Based on approximate capacity in megawatts. As of August 2019.

This report includes forward-looking statements which include future plans or strategies, our clean energy vision, transitioning our energy resources, planned resource additions, and future emissions reductions. Actual results could differ materially from those currently anticipated due to, among other things, regulatory approvals, construction issues and costs, and other factors discussed in our filings with the Securities and Exchange Commission. Alliant Energy disclaims all obligation to update these forward-looking statements.

3Alliant Energy Environmental, Social and Governance Sustainability Performance

Page 4: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

2017 2018 2019 2020

Marshalltown Generating Station (630 MW)

Marshalltown Generating

Station (3.4 MW)Dubuque Solar (6.2 MW)

Upland Prairie(300 MW)

English Farms(170 MW)

WhisperingWillow North(Up to 200 MW)

Wind Solar Natural gas

*Approximate megawatts (MW) in direct current. As of August 2019.

Kossuth (150 MW)

Golden Plains(200 MW)

Richland(130 MW)

West RiversideEnergy Center(5 MW)

West RiversideEnergy Center(730 MW)

Planned resource additions*

Coal as a percentage of Total Utility Rate Base**

IPL

Coal as a percentage of Total Utility Rate Base

19% WPL16%

** As of year-end 2018.

$2 billion in projects completed or underway to add 1,150 megawatts of new owned wind generation by the end of 2020.

$2.2+ billion planned investments to build smarter and more resilient energy infrastructure.

50% drop in fresh water withdrawals from 2005 levels.

19% reduction in carbon dioxide (CO2) emissions from 2005 levels.

82% annual landfill diversion rate achieved for large construction projects.

89,000+ volunteer hours by employees and retirees to various charity organizations.

15 Alliant Energy Growth Sites ready to support new and expanding business growth in our communities.

45% of the Alliant Energy Board of Directors are women.

$2 million in corporate giving to Hometown Care for electric and heating bill assistance to families in need.

by the numbersRecent actions

Alliant Energy Environmental, Social and Governance Sustainability Performance 4

Page 5: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Corporate Sustainability Report sitemap

Our Sustainable Developments

Energy and Climate*

Operations and Environment

Customers and Community

Culture and People

Governance and Performance

Sustainable Development Goals (SDGs) – our support for the United Nations SDGs and various stories providing examples of how our actions align with the SDGs

Stories: Grow, Optimize and Transform

Stories: Innovate, Take Action and Serve

Cleaner Energy

Transition

Targets

Planning

Implementation

Working Sustainably

New Technologies

Electrification

Security

Regulatory Alignment

Renewable Programs

Saving Energy

Economic Development

Community Support

Customer Relations

Our Values

Workplace Culture

Safety

Suppliers

Employees

Innovation

Sustainable Energy

Responsibility

Environmental Commitment

Performance

Recognition

* Please refer to this section for information relevant to the Task Force on Climate-related Financial Disclosures (TCFD) guidance. 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.

Our online corporate sustainability report provides additional details on our

practices, programs and initiatives designed to support the company’s transition

to a lower carbon and increasingly sustainable energy future. The sitemap

below provides a summary of where to find this information.

2 0 1 9 Corporate

Sustainability Report

Our Sustainable Developments

Energy and Climate

Operations and Environment

Customers and Community

Culture and People

Governance and Performance

Powering what’s next

Alliant Energy Environmental, Social and Governance Sustainability Performance 5

Page 6: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

EPRI priority sustainability issues for the North American Electric Power IndustryPriority issue Description

Air emissions Reductions of air emissions (not including greenhouse gases) produced by electric power companies, including NOX, SO2, mercury, and particulate emissions

Assets and operations Efficiency and effectiveness of electric power infrastructure and operational processes

Business model Long-term viability of the electric power company business model considering evolving risks, opportunities, and technology innovations

Climate change Operational response of electric power companies to climate change

Community vitality Efforts by electric power companies to provide community support and economic development including through procurement decisions, philanthropy, and volunteerism

Customer relations Electric power company relations with all customers

Cyber and physical security Vulnerability of electric power company facilities, systems and infrastructure with respect to digital and physical threats

Diversity Workforce diversity, inclusion and equal opportunities for all electric power company employees

Energy affordability Affordability of electricity bills across all customers and access to assistance programs for low income classes

Energy reliability and resiliency

Rapid resolution of outages when interruptions occur and long-term planning to integrate measures into designs and operations to ensure consistent power delivery

Greenhouse gas emissions Reduction of greenhouse gas emissions produced or used by electric power companies

Habitat and biodiversity Preservation and development of natural habitats and the species that depend on them

Job satisfaction Level of engagement and motivation of electric power company employees with their work

Labor relations Strength of electric power company relationship with union workers to ensure a productive and healthy work environment

Public policy relations Transparency and effectiveness of electric power company relations with regulators and legislators to advance sustainable energy development

Safety and health Safety and health of employees, contractors and the public with respect to interaction with electric power company owned or managed assets (generation, transmission and distribution)

Skilled workforce availability Hiring and retention of appropriately skilled and educated workers for electric power companies

Supply chain Activities and impacts of suppliers doing business with or providing materials to electric power companies that enhance upstream and downstream sustainability

Waste management Avoidance and minimization of waste generation including recycling and reuse by electric power companies

Water management Minimizing the impact of electricity production on the quality and availability of water resources for all users

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) https://www.epri.com/#/pages/product/3002011444/?lang=en-US

Research and development In 2018, Alliant Energy invested $3.5 million in various research and development (R&D) programs. This amount includes both discretionary research funds and funds collected from customer billings as mandated by state regulations. Studies were conducted through the Electric Power Research Institute (EPRI), Iowa Energy Center, Iowa State University – Electric Power Research Center, University of Iowa Center for Global and Regional Environmental Research, Seventhwave (formerly Energy Center of Wisconsin) and University of Wisconsin - Platteville. Alliant Energy’s participation targets a diverse range of R&D areas related to improving sustainability performance. This information is valuable for new innovations and technology development.

Source: Federal Energy Regulatory Commission (FERC) Form 1 Filings

0

1

2

3

4

20182017201620152014

External research and development dollars spent

MIL

LIO

NS

OF

DO

LLA

RS

Source: Federal Energy Regulatory Commission (FERC) Form 1 filings

$3.7 $3.5$3.6 $3.5 $3.6

Alliant Energy participates in EPRI’s Strategic Sustainability Science programs 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.

Alliant Energy Environmental, Social and Governance Sustainability Performance 6

Page 7: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Stakeholder outreachAlliant Energy’s communications and engagement with our external stakeholders occurs on many levels. This ongoing dialogue gives us the opportunity to learn what they consider to be important sustainability issues. These discussions also help us to identify key priorities, find common ground and discuss potential collaboration opportunities. We value stakeholder feedback as it supports our company’s mission to deliver energy solutions and exceptional service that our customers and communities count on – safely, efficiently and responsibly.

In addition to these voluntary outreach efforts, Alliant Energy also engages with our stakeholders through formal regulatory proceedings and public comment hearings.

Communication and engagement outreach

External interest group Examples

Customers

Key account management, business resource center

Power Thinkers online residential advisory panel

Market research

Focus groups

Energy efficiency surveys

Social media

Mobile applications

Monthly newsletter

Bill messaging

Local media and news distribution

Energy summit for business customers

Communities

Foundation grants and corporate giving

Employee volunteering

Event support

Group and association memberships

Community conversation events

Facility decommissioning project updates

Company executive visits and forums

Future facility neighbors

Project update meetings

Letters and newsletters

Alliant Energy Environmental, Social and Governance Sustainability Performance 7

Page 8: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Cyber and physical securityAs 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 Operations Committee of 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 educated cybersecurity staff.

Alliant Energy continues to evolve our programs and response strategies to improve our situational awareness, proactively reduce risks and ensure that we are ready to respond to events beyond our control. An integral part to our programs includes having protocols in place to address cyber and physical breaches and threats. These protocols are drilled routinely and are handled according to our Incident Response Plans. We are also participating in an elective tabletop exercise conducted by EPRI, which will aid in understanding the interactions between operating and information technologies during incident response.

Alliant Energy works with numerous local, regional and national stakeholders as part of its security program and adheres to all applicable compliance requirements, protocols and reporting. These include:

North American Electric Reliability Corporation Critical Infrastructure Protection Standards

Federal Energy Regulatory Commission Licensing Standards

Transportation Security Administration Gas Pipeline Security Guidelines

Federal and State Information Privacy Laws and Regulations

Department of Homeland Security

Our organization is also strongly involved with the Edison Electric Institute’s Mutual Assistance Program.

Cyber and physical security programs

Oversight Board of Directors

Chairman and Chief Executive Officer

Director of Business Services

Management and

collaboration

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 Center (EOC)

Government partnerships to understand potential threats and develop response strategies

Participation in bi-annual 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

Risk identification,

prevention, preparation

and response guidelines

Review of third-party relationships by our legal, sourcing, and cybersecurity teams to identify potential risks introduced by vendors, software and hardware manufacturers or professional services providers

Drills and exercises to address physical risks and prepare for extraordinary scenarios, such as extreme weather

Regular security assessments of threats and vulnerabilities that lead to the strengthening of physical security measures at our operating facilities (ex. fencing) to deter malicious attacks

Work with local communities to maintain sufficient spare equipment to address various incidents and emergencies

Training, education,

and awareness

Annual employee security awareness training

Company-wide ongoing phishing training and testing program

Education via blog posts, email blasts, and lunch-and-learn events

Workplace Violence table top employee training exercises

Communication protocols and

reporting

EOC Incident Command Center for communication and coordination with local and regional stakeholders

Company-wide employee emergency mass notification system

Employee reporting of potential threats or suspicious activity via email, phone, and to security guards

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 Sustainability Performance 8

Page 9: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Electric system reliability Alliant Energy is continually working to improve our electric system reliability; however, some power outages still occur. The majority are the result of weather-related events, trees and wildlife. As preventive measures, we conduct tree trimming near our distribution lines and install animal guards on pole-top transformers. Other events such as digging, construction or auto accidents can damage lines, poles or other equipment and cause service interruptions. An electrical overload may also cause the equipment to fail. Regardless of the reason for an outage, Alliant Energy works to restore power as quickly, efficiently and safely as possible.

Alliant Energy is focused on providing our customers with reliable electricity and restoring power quickly* .

52% of our customers experienced zero power outages in 2018

76% of outage events in 2018 restored power within two hours or less

The average U.S. electricity customer has at least one power outage lasting about two hours based on the latest comparable data from the U.S. Energy Information Administration.*Data provided excludes planned and major weather-related events.

EquipmentWildlife

PublicWeather

Other Trees

Power outages by

cause

23%

6%

29%16%

19%

7%

System Average Interruption Duration Index (SAIDI) is the average length of an interruption experienced by the average customer. It is the annual sum of all customer interruption durations over the year divided by the total number of customers served during the year (even if they don’t experience an outage).

0

20

40

60

80

100

120

20182017201620152014

System average interruption duration index excluding major events (minutes)

MIN

UT

ES 81.684.6 83.6

92.7102.5

System Average Interruption Frequency Index (SAIFI) is defined as 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.

Customer Average Interruption Duration Index (CAIDI) is the average length of an interruption experienced by an interrupted customer. In this index, a customer can be counted as many times as they experience an outage.

Source: Alliant Energy outage management system records. Metrics are reported excluding major events according to the guidance set forth by applicable regulatory agencies. 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.

0.74

0.77

0.80

0.83

0.86

0.89

0.92

20182017201620152014

System average interruption frequency index excluding major events (number of interruptions)

INT

ER

RU

PT

ION

S 0.90 0.91

0.81

0.88 0.88

0

20

40

60

80

100

120

20182017201620152014

Customer average interruption duration index excluding major events (minutes)

MIN

UT

ES

113.2101.396.2 95.5

102.8

Alliant Energy Environmental, Social and Governance Sustainability Performance 9

Page 10: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Natural gas system performanceAlliant Energy natural gas transmission pipelines deliver gas directly to some large industrial customers and to Alliant Energy 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 non-protected bare steel.

Alliant Energy is dedicated to keeping its employees, customers, and communities safe through training, education, and awareness. All Alliant Energy journeymen crews and service responders are trained on emergency response and are available 24 hours a day, seven days a week. In addition, our company’s Transmission and Distribution Integrity Management Programs provide a process for inspecting and assessing the condition of Alliant Energy-owned natural gas pipelines and establishing a maintenance program based on regulatory requirements and best industry practices.

Source: Alliant Energy records.

90%

92%

94%

96%

98%

100%

20182017201620152014

% U

ND

ER

60

MU

NU

TE

S

Gas emergency response rate

99.7 99.799.6 99.6 99.6

% Responses within 60 minutes Target (98%)

Cathodicallyprotected

coated steel

PlasticNatural gasdistribution

main(miles)36%

64% Cathodicallyprotected

coated steel

PlasticNatural gasdistribution(number ofservices)

25% 75%

System miles IPL WPL

Gas transmission pipeline 803 38

Distribution gas mains 4,333 4,610

Alliant Energy Environmental, Social and Governance Sustainability Performance 10

Page 11: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Employee safety performance Live safety . Everyone . Always . is a Core Value at Alliant Energy: Our first priority is that nobody gets hurt. Employee safety performance is tracked according to Occupational Safety and Health Administration (OSHA) requirements. In addition, our company’s comprehensive program includes 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.

Alliant Energy’s safety programs and management

Leadership Executive Safety Leadership Team Local Safety Leadership Teams

Employee Programs Safety Perception Surveys Industrial Athlete and Ergonomics Training

SafeStart Training Union Blue Hat Program

Management Systems Safety Management Plans On-site Safety Compliance Assessments

Online Safety Management System Pre-Job Safety Briefing Process

Preventative Measures Safety Conversations Project Design Reviews

Leading Metrics Supply Chain Monitoring

Contractor Safety ISNetworld System for Safety Performance

Safety Program and Regulatory Compliance Reviews

Public Safety Community Safety Resources and Public Presentations

Ergonomics Consulting for our Customers

Web-based Safety Educational and Training Programs

Number of employee and contractor fatalities

2014 2015 2016 2017 2018

Employee 0 0 0 0 0

Contractor 0 0 1 0 0

Recordable incident rate

The number of work-related injuries or illnesses requiring more than first-aid treatment, per 100 employees.

Lost-time incident rate

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.

Severity rate

The number of days away from work per 100 employees as a result of work-related injuries or illnesses.

0.00

0.25

0.50

0.75

20182017201620152014

LOS

T D

AY

S P

ER

100

EM

PLO

YE

ES

Lost time incident rate

0.570.52

0.33 0.32

0.59

0

1

2

3

20182017201620152014

INC

IDE

NT

S P

ER

100

EM

PLO

YE

ES

Recordable Incident Rate

2.87

2.35 2.39 2.202.36

0

5

10

15

20

20182017201620152014

DA

YS

AW

AY

PE

R 1

00 E

MP

LOY

EE

S

Severity Rate

16.014.9

6.9 6.6

11.1

Source: Alliant Energy records.

Alliant Energy Environmental, Social and Governance Sustainability Performance 11

Page 12: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Workforce Care for others is a Core Value at Alliant Energy: Together we create a workplace where people feel like they belong and can use their unique backgrounds, talents and perspectives to their fullest potential. Diversity includes a rich mixture of attributes that make each of us unique. Our company treats all employees with respect and supports a diverse and inclusive workplace. This environment contributes to our ability to provide safe, reliable power and excellent customer service.

Diversity is more than just the visible: races, ethnicities and genders. It includes education, cultural experiences, religion, sexual orientation, gender identity and many other invisible differences that make each of us unique. Our goal is to promote inclusion so that each employee feels free to contribute to their fullest potential.

We provide resources to our employees that foster inclusion and a better understanding about diversity. Our Employee Resource Groups give all employees an opportunity to grow professionally, network, build community relationships and socialize with other employees.

2018 Diversity Workforce Executive* Board**

Minority 5.1% 14.9% 20%

Female 26.1% 31.3% 50%

*Executive includes managing directors, vice presidents, and direct reports to the Chief Executive Officer.

**Values in table represent 2018 data. Current values are 45% female and 11% minority reflecting recent changes to Board of Director members occurring in 2019.

Voluntary employee turnover rate (excluding retirements)

2014 2015 2016 2017 2018

2.4% 3.0% 3.5% 2.5% 4.0%Source: Alliant Energy records.

Age 29 or younger

Age 30-50

Age 51and over*

2018Employee

age

*38% are over age 55 and eligible to retire within 5 years

48%

12%

40%

Alliant Energy’s Employee Resource Groups

Evolving Professionals Connection

Equality Alliance

Multicultural Network

Sustainability Squad

Women’s Network

Veterans’ Alliance

Collective Bargaining . Maintaining strong labor relations is integral to our company’s success. As of the end of 2018, 55% of Alliant Energy employees were covered under collective bargaining agreements. And, we partner with our unions as they serve an important role in developing our talent pipeline and training our employees. Alliant Energy respects the right of our employees to join, form or not to join a labor union without fear of reprisal, intimidation or harassment. Alliant Energy is committed to constructive dialogue and good faith negotiations with legally recognized unions.

Alliant Energy Environmental, Social and Governance Sustainability Performance 12

Page 13: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Supplier programsAlliant Energy approaches relationships with suppliers the way we approach everything else we do: focused on delivering energy and exceptional service that our customers and communities can count on – safely, efficiently and responsibly.

Conduct and ethics: All suppliers are expected to adhere to the Alliant Energy Code of Conduct. In particular, that our suppliers will participate in bid processes and procurement practices in accordance with best practices. Best practices include communicating only with the named Alliant Energy representatives during contract negotiations or bid evaluation, refraining from “back door selling,” and attempts to 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 improve safety performance of contractors performing physical work, such as repairing equipment and building new facilities. The program enables our company to objectively manage contractor safety prequalification requirements.

Supplier sustainability qualifications: Alliant Energy is a member of the Electric Utility Industry Sustainable Supply Chain Alliance. Through participation in this organization, our company conducts supplier surveys designed to benchmark sustainability performance and educate on best practices. We also track progress through a supply chain sustainability maturity assessment to support future improvements.

Supplier diversity: Alliant Energy provides equal access for all qualified businesses, including those owned by women, minorities, LGBT, service-disabled veterans and small-business designations. Tracking includes 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. Beginning 2015, we increased our company target for total annual spend from diverse suppliers from 10% to 15%. Our 2018 results were 8.6%. This amount was influenced by our large capital spend on wind turbines, that was procured from large, publicly-traded corporations and diluted our diverse supplier spending.

Source: Alliant Energy records.

0%

5%

10%

15%

20%

2018201720162015

Diverse supplier spend

PE

RC

EN

TA

GE

OF

TO

TA

L S

PE

ND

% Diverse spend Target (15%)

17.4%12.1% 13.9%

8.6%

Minority

Women

Small business

Tier 2

2018Supplier diversity

42%14%

31%13%

Alliant Energy Environmental, Social and Governance Sustainability Performance 13

Page 14: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

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 volunteerism. The Alliant Energy Foundation focuses on four main areas: helping families, education, the environment and safety initiatives. In 2018, the Foundation matched qualifying employee philanthropic gifts of $50 or more, up to $2,500 per year, to qualifying 501(c)3 charitable organizations. For 2019, the matching gift amount is raised to up to $3,500.

In 2018, through the giving spirit of our employees and retirees, this program matched donations of approximately $547,000. Our corporate giving includes Hometown Care electric and heating bill assistance, United Way, safety, community support, and diversity and inclusion programs. Employee donations support our company’s United Way campaign and individually selected nonprofit causes. Plus, our employees also donate their valuable time in local communities. In 2018, nearly 90,000 volunteer hours were logged for various initiatives, including Days of Caring, Habitat for Humanity, food drives, tree planting and many other charity events.

Employee/Retiree

Drive Out Hunger*

Corporate

Foundation

2018 Giving

by group

7%

58%

16%

19%

2018 Giving by program

Foundation community grants

Tree planting program

Hometown CareEnergy Fund

Corporate giving

United Way, corporate

& employee

Drive Out Hunger

Employee gifts with Foundation match

Scholarships

1%

16%

27%

7%13%

13%

16%

7%

0123456789

Drive Out HungerEmployee/RetireeFoundationCorporate

20182017201620152014

Giving by year and group

MIL

LIO

NS

OF

DO

LL

AR

S

Source: Alliant Energy records

More than $7 million in 2018 and over

$37 million given in the past five years.

* Drive Out Hunger is an annual golf event produced by the Alliant Energy Foundation and supported by our corporate partners in an effort to fight hunger. Proceeds are managed by Second Harvest Foodbank of Southern Wisconsin and distributed to Feeding America member food banks in the Alliant Energy service area.

Learn more about Alliant Energy’s community giving efforts at alliantenergy.com/seethegood.

Alliant Energy Environmental, Social and Governance Sustainability Performance 14

Page 15: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Energy efficiency Energy efficiency is a significant part of Alliant Energy’s strategy because it represents an important means for our company to reduce environmental impacts inherently associated with energy production and use. Our company’s energy efficiency portfolio includes a mix of products and programs targeted at reducing peak demand and total energy usage.

Source: Alliant Energy records and regulatory filings. Data shown include Minnesota energy efficiency program results through 2015, when IPL sold these electric distribution assets and ended retail sales to these customers.

Alliant Energy’s customers benefit from our energy efficiency programs as an option to conserve energy, reduce costs, and help the environment* .

2018 energy savings results:

Electricity – 295 million kilowatt-hours Gas – 5.6 million therms

0

50

100

150

200

250

300

350

20182017201620152014

ME

GA

WA

TT

HO

UR

S I

N T

HO

US

AN

DS

Annual incremental electricity saved

IPL WPL

228175 142

175 180

11583

7189

80

TH

ER

MS

IN

MIL

LIO

NS

0

1

2

3

4

5

6

7

20182017201620152014

Annual incremental natural gas saved

IPL WPL

2.3 3.1 2.1 2.0 2.2

3.3

1.42.3

3.13.3

In Wisconsin

Since 2001, the energy savings for Wisconsin residential and some business programs have been part of the consolidated Focus on Energy (FoE) program. This program is managed by the state of Wisconsin. WPL contributes 1.2% of its annual retail utility revenues to help fund FoE. Program goals and initiatives for FoE are established on a statewide basis working with all participating utilities and updates are reported publicly at https://focusonenergy.com/about/participating-utilities/utility-resources.

In 2018, WPL introduced the Energy Edge program to provide an online platform that empowers our Wisconsin commercial and industrial customers to benchmark their energy usage and set sustainability goals to improve performance. This digital tool provides deeper analytics including cost comparisons over time, weather impacts, and usage breakdowns. Wisconsin residential customers can also sign-up for our Energy Advisor program to get free, personalized advice on how to save energy and money. This online program engages customers by regularly delivering customized actions that appeal to their personal motivations for saving energy.

In Iowa

IPL’s Energy Efficiency Plan (EEP) is reviewed and approved by the Iowa Utilities Board. Results for IPL’s 2014-2018 EEP included achieving savings of 889.4 Gigawatt-hours (over 100% of goal) and 11.4 million therms (96% of goal). Spending was approximately $391.2 million (94% of allowable). In March 2019, IPL received regulatory approval of its 2019-2023 EEP. The new EEP includes savings targets of 610.8 Gigawatt-hours and 2.5 million therms. The spending target of $232.9 million reflects recently passed state laws that cap spending. Annual EEP reports are filed under docket EEP-2018-0003 at https://efs.iowa.gov/.

In 2018, IPL launched a Strategic Energy Management (SEM) Program to assist Iowa commercial and industrial customers develop energy action plans. SEM promotes behavior-based energy savings and investment in energy-efficient capital improvements. IPL provides customers with education, technical support, a baseline energy management assessment, benchmarking tools and energy usage data. The platform allows our customers to incorporate energy reduction strategies, sustainability goals and energy management into daily operations.

Cumulative 10-year energy savings results:

Electricity – 2,859 million kilowatt-hours Gas – 63 million therms

*Data provided based on first year annual incremental savings. This includes estimated savings in Wisconsin through the Focus on Energy (FoE) program and actual savings from the program in Iowa.

Alliant Energy Environmental, Social and Governance Sustainability Performance 15

Page 16: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Renewable energyAlliant Energy is subject to Renewable Portfolio Standards (RPS) in Wisconsin and Iowa. These standards establish the amount of energy electric utilities must supply from renewable resources to their retail electric customers. Our company continues to exceed its RPS requirements through company-owned renewables and purchase power agreements (PPAs), primarily from wind generation.

0

500

1000

1500

2000

2500

3000

3500

20182017201620152014

RECS

IN T

HO

USA

ND

S O

F M

WH

RECs from produced and purchased renewable resources

3,4443,1873,232 3,225 3,185

0

200

400

600

800

1,000

1,200

WPL WisconsinIPL IowaIPL Minnesota

WPL WisconsinIPL IowaIPL Minnesota

20162015201420132012

RECs surrendered for RPS compliance

RECs retired for RPS compliance

RECS

IN T

HO

USA

ND

S O

F M

WH

RECS

IN T

HO

USA

ND

S O

F M

WH

0

200

400

600

800

1000

1200

20182017201620152014

Renewable energy credits (RECs) represent proof that 1 MWh of electricity was generated from an eligible renewable energy resource. Alliant Energy’s RECs are tracked in the Midwest Renewable Energy Tracking System (M-RETS). RECs can be sold and traded, giving the purchaser of the RECs claim to the renewable energy and environmental attributes. The RECs generated by Alliant Energy may be sold or exchanged on the renewable energy market, including to buyers not located in the states served with energy from IPL or WPL.

Source: Alliant Energy records and Federal Energy Regulatory Commission (FERC) Form 1. 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. Compliance data shown includes REC retirements for IPL’s retail sales in Minnesota to meet the existing RPS requirements through the closing date in 2015. The number of RECs retired in a given RPS compliance year does not necessarily mean those RECs were all generated that year due to the allowed use of banked RECs in Minnesota and Wisconsin.

Alliant Energy REC transactions

Year REC was generated 2014 2015 2016 2017 2018

RECs retired, or those to be retired, for our customers’ environmental benefit 1 1,132,403 989,304 2,416,132 2,861,810 2,819,830

RECs sold, transferred, held or retired for other purposes 2 2,099,816 2,235,400 768,984 582,293 367,210

1 Alliant Energy maintains the renewable energy and environmental attributes associated with these RECs on behalf of its retail 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.

The table below provides a summary of Alliant Energy’s REC transactions over the past five years up until the time of publication of this report. These transactions could include RECs originating from company-produced and/or purchased renewable energy sources.

Percentage of energy supplied from renewable energy based on retail sales*

Year 2014 2015 2016 2017 2018IPL – Iowa 1.31% 1.02% 8.11% 9.92% 9.94%

WPL – Wisconsin 8.74% 7.89% 11.36% 13.28% 12.28%

Alliant Energy 4.34% 3.88% 9.50% 11.36% 10.94%* 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 been included in the calculation of these numbers.

Based on these RECs transactions, Alliant Energy has supplied its customers with the following amounts of renewable energy annually.

Alliant Energy Environmental, Social and Governance Sustainability Performance 16

Page 17: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

O U R E N V I R O N M E N TA L C O M M I T M E N T

Acting for tomorrowThe 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 Core 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 is accountable for environmental performance.

Achieve our company’s vision for a clean energy future.

Advance our sustainability framework through the company’s mission, culture and values.

Comply fully with all applicable environmental laws and regulations and company procedures.

Monitor Alliant Energy’s environmental programs systematically to reduce risk and liability through Enterprise Risk Management.

Strive for performance beyond environmental compliance through operational efficiencies, technologies, recycling, reuse, materials and product substitution.

Integrate a comprehensive environmental management approach into our overall business and mitigate adverse environmental impacts caused by our operations.

Provide employees with job-specific training to properly execute environmental requirements and procedures.

Pursue cost-effective energy efficiency improvements in our operations and promote conservation practices and investments in energy saving technologies by our customers.

Preserve natural resources, safeguard ecosystems and promote biodiversity through hazard reduction measures and enhanced land management.

Participate in environmental policy development in order to support responsible, fair and flexible regulatory outcomes.

Engage in open relationships, communication and education with our customers, regulators and other stakeholders on environmental matters.

Transparently report our environmental performance and sustainability progress.

Approved by Alliant Energy’s Executive Review and Risk Committee and the Operations Committee of the Board of Directors.

Environmental managementAlliant Energy’s Environmental Commitment Statement provides the guiding principles for employees to demonstrate our core value to Act for Tomorrow. Furthermore, our company monitors environmental incidents, provides an Environmental Management Program and conducts formal assessments.

Our company has supported efforts to protect the endangered Karner Blue butterfly since 1999 .

Alliant Energy Environmental, Social and Governance Sustainability Performance 17

Page 18: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Environmental Incident Monitoring Process

Our company goal is to meet all of our environmental requirements – all the time. We maintain an Environmental Information Management System (EIMS) to manage and track approximately 4,000 environmental tasks to ensure compliance.

Occasionally, environmental incidents occur for a variety of reasons, including, but not limited to, mechanical failures, human performance, wildlife, and extreme weather. We define environmental incidents as a non-routine occurrence that has the potential to directly or indirectly result in an impact to the environment and involves an actual consequence or potential risk to our company, including risk to company reputation. Environmental incidents have the potential to result in an official notice of non-compliance (NOC) from a regulatory agency and are treated very seriously.

When environmental incidents do occur, we strive to learn from them and prevent them from occurring again. The Environmental Services and Corporate Sustainability department tracks incidents on a monthly basis and shares relevant information with others throughout the company. We also conduct a root cause analysis within 20 working days of the incident. The outcome is an action plan that is approved by management. In addition, results are used to proactively develop targeted processes and programs to prevent reoccurrence.

Environmental Management Program

In 2017, Alliant Energy also created a new Environmental Management Program (EMP) that focuses on our electric generation facilities, because these operations are subject to the most environmental compliance requirements. The program partners environmental subject matter experts with plant operational personnel to improve our environmental performance.

The main components of the EMP are to: identify gaps in existing processes that may impede the successful completion of environmental obligations for our operations; develop or refine processes in order to ensure continued compliance with all environmental requirements, regulations and responsibilities; and achieve zero environmental incidents. Annually, the EMP reviews historical trends in environmental incidents and provides a framework for prioritizing the development of processes and tools to proactively address them.

Environmental Assessment Program

The purpose of Alliant Energy’s Environmental Assessment program is to identify and assess any reasonably foreseeable risks associated with environmental conditions attributable to our company’s operations and eliminate or mitigate such risk. In addition to verifying compliance with applicable requirements, our company’s program promotes educational awareness and acknowledges areas of exemplary performance.

Our leadership team endorses these compliance reviews, approves the assessment plans, and monitors the assessment outcomes and resolutions through a monthly Environmental Assessment Aging Scorecard. The results of each assessment are discussed with facility managers and site personnel. The resolution of each

issue that is identified is tracked to completion in our EIMS. The overall assessment outcomes are used to plan and implement training programs, as well as, improve practices and procedures used to ensure compliance.

During 2018, Alliant Energy conducted environmental assessments on approximately 30% of eligible facilities, all of which includes those with operations that are subject to environmental regulatory requirements.

2018 Environmental Compliance Results

Alliant Energy operates in compliance with environmental requirements. However, there are occasions when the company does receive a NOC from a regulatory agency, which can result in fines or penalties. In 2018, Alliant Energy was issued one NOC related to wastewater monitoring procedures for an exceeded Total Suspended Solids permit limit. There was no fine or penalty imposed for this incident.

0

1

2

3

4

5

6

20182017201620152014

NU

MB

ER

OF

NO

CS

Notices of non-compliance (NOC)*

34

6

4

1

*Refer to Alliant Energy’s annual Form 10-K report for disclosure of environmental fines and penalties.

Alliant Energy Environmental, Social and Governance Sustainability Performance 18

Page 19: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Alliant Energy

Mass (tons) Mass (tons) % Reduction

Gross Rate (lbs/MWh)

Gross Rate (lbs/MWh)

Net Rate (lbs/MWh)

Net Rate (lbs/MWh)

2005 2018 2005 2018 2005 2018

SO2 81,997 12,126 85% 7.64 1.04 8.14 1.10

NOx 33,930 8,979 74% 3.16 0.77 3.37 0.82

Mercury** 1,137 87 92% 0.066 0.004 0.070 0.004

CO2 23,806,798 19,202,611 19% 2,217 1,653 2,363 1,747

IPL

Mass (tons) Mass (tons) % Reduction

Gross Rate (lbs/MWh)

Gross Rate (lbs/MWh)

Net Rate (lbs/MWh)

Net Rate (lbs/MWh)

2005 2018 2005 2018 2005 2018

SO2 42,775 8,384 80% 6.82 1.35 7.31 1.43

NOx 23,141 5,905 74% 3.69 0.95 3.95 1.01

Mercury** 672 45 93% 0.070 0.004 0.075 0.004

CO2 14,123,172 9,921,320 30% 2,253 1,601 2,413 1,697

WPL

Mass (tons) Mass (tons) % Reduction

Gross Rate (lbs/MWh)

Gross Rate (lbs/MWh)

Net Rate (lbs/MWh)

Net Rate (lbs/MWh)

2005 2018 2005 2018 2005 2018

SO2 39,222 3,742 90% 8.78 0.69 9.29 0.73

NOx 10,789 3,074 72% 2.42 0.57 2.56 0.60

Mercury** 465 42 91% 0.060 0.004 0.064 0.004

CO2 9,683,626 9,281,291 4% 2,168 1,713 2,294 1,805

** Mercury mass in pounds (lbs) and rate in lbs/gigawatt-hour (GWh). Mercury data provided for 2009 when Continuous Emissions Monitoring Systems (CEMS) were first certified.

Source: CEMS and other air compliance data accepted by the U.S. Environmental Protection Agency, Iowa Department of Natural Resources, and Wisconsin Department of Natural Resources.

Thermal emissionsThermal emissions represent the releases to air from producing electrical energy at fossil-fueled generation facilities. The thermal emissions figures provided include the total mass emissions and the emissions rate per megawatt-hour (MWh). Detailed information for 2018 is provided in the table at right for each of Alliant Energy’s regulated utilities, IPL and WPL. All information is provided on a heat input basis adjusting for the IPL and WPL generation share of joint-owned facilities.

Thermal emissions from fossil-fueled electric generation

Alliant Energy has set future targets to significantly reduce our thermal emissions

Reducing our CO2 emissions

Reductions achieved since 20052030 Target

2050 Target-100%

-80%

-60%

-40%

-20%

0%Sulfur dioxide (SO2) Nitrogen oxides (NOX) Mercury

Reductions achieved since 2005

- 85% -90%

-74%- 80%

-92% -90%

2020 Target

Reducing our air emissions*

*Owned fossil-fueled generation

-100%

-80%

-60%

-40%

-20%

0%-19%

-40%

- 80%

Reducing our CO2 emissions

Reductions achieved since 20052030 Target

2050 Target-100%

-80%

-60%

-40%

-20%

0%Sulfur dioxide (SO2) Nitrogen oxides (NOX) Mercury

Reductions achieved since 2005

- 85% -90%

-74%- 80%

-92% -90%

2020 Target

Reducing our air emissions*

*Owned fossil-fueled generation

-100%

-80%

-60%

-40%

-20%

0%-19%

-40%

- 80%

Reducing our air emissions*

Reducing our carbon dioxide (CO2) emissions*

*Owned fossil-fueled generation

*Owned fossil-fueled generation

Alliant Energy Environmental, Social and Governance Sustainability Performance 19

Page 20: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

0

5

10

15

20

25

201820172016201520142005

Thermal emissions – CO2

MA

SS

IN

MIL

LIO

NS

OF

TO

NS

0

500

1,000

1,500

2,000

2,500

RA

TE

IN

LB

S /

ME

GA

WA

TT

HO

UR

NE

T

0

200

400

600

800

1,000

1,200

201820172016201520142009

Thermal emissions – Mercury*

MA

SS

IN

PO

UN

DS

RA

TE

IN

LB

S /

GIG

AW

AT

T H

OU

R N

ET

0

.02

.04

.06

.08

0

10

20

30

40

201820172016201520142005

Thermal emissions – NOX

MA

SS

IN

TH

OU

SA

ND

S O

F T

ON

S

0

1

2

3

4

RA

TE

IN

LB

S /

ME

GA

WA

TT

HO

UR

NE

T

010

20

30

40

50

60

70

80

90

201820172016201520142005

Thermal emissions – SO2M

AS

S I

N T

HO

US

AN

DS

OF

TO

NS

0

2

4

6

8

RA

TE

IN

LB

S /

ME

GA

WA

TT

HO

UR

NE

T

Coal-fired air quality control systems

Alliant Energy’s installation of air quality control systems (AQCS) at coal-fired electric generating units have resulted in significant emissions reductions of particulate matter (PM), mercury (Hg), SO2 and NOX. Current status of existing AQCS are provided in the table below.

The types of AQCS technologies installed include: Electrostatic precipitator (ESP) Baghouse/fabric filter (BG/FF) Calcium bromide (CaBr) Activated carbon injection (ACI) Dry flue gas desulfurization (DFGD) Low NOX burners (LNB) Over-fired air (OFA) Selective catalytic reduction (SCR)

Technology ESPBG/FF

CaBr ACI DFGDLNB or

OFASCR

Emissions controlled

Hg/PM

Hg/PM

Hg Hg SO2 NOX NOX

Columbia Unit 1

Columbia Unit 2

Edgewater Unit 5

Burlington Unit 1

Lansing Unit 4

Ottumwa Unit 1

Prairie Creek Unit 3

Source: Alliant Energy records. Excludes coal units that primarily provide industrial process steam.

Thermal emissions - mass 2005 2014 2015 2016 2017 2018

SO2 (thousands of tons) 82.0 40.0 26.2 13.6 12.7 12.1

NOx (thousands of tons) 33.9 12.8 11.0 8.2 9.5 9.0

Mercury (pounds)* 1,137 666 250 55 76 87

CO2 (millions of tons) 23.8 18.6 18.2 15.8 17.9 19.2

Thermal emissions - rate** 2005 2014 2015 2016 2017 2018

SO2 (lbs/MWh) 7.86 4.36 2.73 1.48 1.20 0.96

NOx (lbs/MWh) 3.25 1.40 1.15 0.89 0.90 0.71

Mercury Rate (lbs/GWh)* 0.067 0.036 0.013 0.003 0.004 0.003

CO2 Rate (lbs/MWh) 2,282 2,029 1,904 1,721 1,690 1,523

*Mercury mass in pounds (lbs) and rate in lbs/gigawatt-hour (GWh). Mercury data provided for 2009 when CEMS were first certified.

** Emission rate is based on Alliant Energy’s total owned generation production plus renewable purchase power agreements (PPAs) adjusted for any sales of renewable energy credits (RECs) and excludes nuclear PPA energy.

Alliant Energy Environmental, Social and Governance Sustainability Performance 20

Page 21: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

0

5

10

15

20

WPLIPL

20182017201620152014

Direct CO2e emissions from fossil-fueled generation and fleet operations

7.95

8.85

8.41

8.01

7.24

7.17

8.13

8.23

8.50

8.94

MIL

LIO

NS

OF

MET

RIC

TO

NS

0

10

20

30

40

50

WPLIPL

20182017201620152014

Direct CO2e emissions from gas distribution systems

17.64

22.21

19.26

22.22

19.57

21.09

19.81

21.16

20.18

21.42

THO

US

AN

DS

OF

MET

RIC

TO

NS

0

5

10

15

20

WPLIPL

20182017201620152014

Total direct CO2e emissions (Scope 1)

7.96

8.87

8.43

8.03

7.26

7.19

8.15

8.25

8.52

8.96

MIL

LIO

NS

OF

MET

RIC

TO

NS

0

2

4

6

WPLIPL

20182017201620152014

Total indirect CO2e emissions (Scope 2)

2.59

3.17

2.09

2.19

2.00

1.97

2.21

2.01

2.59

2.60

THO

US

AN

DS

OF

MET

RIC

TO

NS

Greenhouse gasesScope 1 greenhouse gas (GHG) emissions are direct emissions from owned or controlled sources. The primary GHG source from Alliant Energy and its utility subsidiaries (IPL and WPL) are the direct emissions of carbon dioxide (CO2) from fossil-fueled generation. In addition, combustion emissions occur from operation of our company’s vehicle fleet and there are also fugitive emissions that occur from natural gas distribution operations. These GHG emissions comprise the company’s Scope 1 footprint which totaled 17.5 million metric tons of CO2-equivalent (CO2e) for 2018 based on equity-share.

The CO2e is a measure used to compare the emissions from various greenhouse gases based on their Global Warming Potential (GWP). The CO2e for a gas is derived by multiplying the mass of the gas by the associated GWP and is determined as follows:

Total CO2e = Carbon dioxide (CO2) x 1 + methane (CH4) x 25 + nitrous oxide (N2O) x 298

The CO2 emissions from fossil-fueled electric generation represented the majority of our total annual CO2e at over 97%.

The EPA Mandatory Greenhouse Gas Reporting Rule protocols apply to the monitoring and reporting of our CO2e emissions. More specifically, this includes fossil-fueled generation facilities (Subpart D) and auxiliary combustion equipment (Subpart C). In addition, indirect GHG emissions from the combustion of the natural gas supplied to customers (Subpart NN) and fugitive losses from natural gas distribution operations (Subpart W).

Source: Data collected for EPA 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 EPA reporting thresholds. Fleet vehicle emissions based on fuel usage or mileage and EPA published GHG emission factors.

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 2018 was approximately 5,200 metric tons of CO2e.

Source: Facility energy usage records or utility bills and EPA protocols from the Center for Corporate Climate Leadership: Indirect Emissions from Purchased Electricity (January 2016).

Alliant Energy Environmental, Social and Governance Sustainability Performance 21

Page 22: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

The system CO2e emission rate represents the CO2e emission rate attributable to the retail portion of electric energy sales for retail customers (not including Second Nature), as reported in Alliant Energy Corporation’s annual Form 10-K to the U.S. Securities and Exchange Commission (SEC). Fossil fuel combustion CO2e emissions are calculated in accordance with the U.S. Environmental Protection Agency (EPA) mandatory Greenhouse Gas Reporting Program (GHGRP) regulations under 40 CFR Part 98. The CO2e system emission rate has been adjusted to reflect Alliant Energy’s annual share of emissions and generation from jointly owned electric generation units. In addition, the CO2e system emission rate has been adjusted for null power and includes emissions and generation attributable to Alliant Energy’s market energy purchases. Null power includes sales of renewable energy credits (RECs), RECs retired for Alliant Energy’s Green Pricing Program – Second Nature, and renewable energy agreements with outside parties.

Null power and market energy purchase CO2 emissions have been calculated using the Green-e® residual emission rate factor for the North American Electric Reliability Corporation (NERC) Midwest Reliability Organization (MRO) Region. The residual emission rate factor is available at: www.green-e.org. The EPA’s Emissions and Generation Resource Integrated Database (eGRID) emission factors have been used for null power and market energy purchase methane (CH4) and nitrous oxide (N2O) emissions. The eGRID emission factors are available at: www.epa.gov/energy/egrid. Total CO2e was calculated with global warming potentials (GWP) as follows: CO2 = 1, CH4 = 25, N2O = 298.

Alliant Energy Corporation makes no assurances regarding use of this information by external parties in relation to any marketing or other sustainability claims, or the validity of this information as pertains to the U.S. Federal Trade Commission (FTC) Green Guides under 16 CFR Part 260.

Alliant Energy Corporation reserves the right to use all or some of the renewable energy attributes associated with generation from renewable energy sources in future years to comply with renewable energy standards or other regulatory requirements or to sell the renewable energy attributes to third parties in the form of RECs or other environmental commodities.

2018 Energy resources and emission rate IPL (Iowa) WPL (Wisconsin) Alliant Energy

Owned generation (net MWh)

Coal 5,690,200 31.42% 6,422,625 44.98% 12,112,825 37.40%

Natural Gas 5,930,096 32.75% 3,800,809 26.62% 9,730,905 30.05%

Oil 35,784 0.20% – – 35,784 0.11%

Hydroelectric – – 200,052 1.40% 200,052 0.62%

Solar 3,905 0.02% – – 3,905 0.01%

Wind 889,792 4.91% 712,975 4.99% 1,602,768 4.95%

Purchased power (net MWh)

Natural Gas – – 32,977 0.23% 32,977 0.10%

Nuclear 3,537,625 19.54% – – 3,537,625 10.92%

Biomass 6,039 0.03% 63,282 0.44% 69,321 0.21%

Hydroelectric 18,160 0.10% 164,510 1.15% 182,671 0.56%

Solar 1,329 0.01% 7,402 0.05% 8,731 0.03%

Wind 753,470 4.16% 516,908 3.62% 1,270,378 3.92%

Other (market) 1,218,742 6.73% 2,335,935 16.36% 3,554,677 10.98%

Second Nature 23,853 0.13% 20,672 0.14% 44,526 0.14%

Total sources of energy (net MWh)

18,108,996 100 .00% 14,278,148 100 .00% 32,387,145 100 .00%

Adjustments for REC sales, transfers and retirements

Null Power - Indian Creek/Second Nature (Net MWh)

21,558 – 20,906 – 42,464 –

System emission rate adjusted for null power

CO2e (grams/kWh) 533 694 602

CO2e (lbs/MWh) 1,175 1,530 1,327

The electric system emission rate for WPL and IPL is determined based on the 2018 EPA-reported GHG data. The system emission rate represents the CO2e after adjustments for renewable energy credit (REC) transactions.

Alliant Energy Environmental, Social and Governance Sustainability Performance 22

Page 23: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Water management

Utility Generating facility*

Cooling technology

Primary water source**

WPL Columbia Recirculating Wisconsin River

WPL Edgewater Once-through Lake Michigan

WPL Riverside Recirculating Groundwater

IPL Burlington Once-through Mississippi River

IPL Emery RecirculatingGroundwater and

Clear Lake Sanitary District

IPL Lansing Once-through Mississippi River

IPL Marshalltown RecirculatingMarshalltown Water

Works

IPL Ottumwa Recirculating Des Moines River

IPL Prairie Creek Once-through Cedar River

Notes:

* 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.

** 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 their Wisconsin Pollutant Discharge Elimination System (WPDES) permit.

Riverside Energy Center uses groundwater as the main supply and discharges to the Rock 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.

The company’s generating facilities may supplement water use with well water and city water.

For electricity production, we predominantly use water to make steam and cool equipment. Most of this is “non-contact” cooling water that is pumped through the generating facility in piping systems where water cools process equipment indirectly. Therefore, our actual water consumption is very low, with 97% returned overall for subsequent reuse. All water discharges meet federal and state regulations for freshwater quality.

In addition, our company has general water use at our office buildings and other facilities that provide operational support, such as garages, warehouses, and equipment maintenance. This water use includes potable drinking water, sanitary, and various ancillary uses. The source of this water is largely from municipal water systems and in some cases groundwater from on-site wells. This general water use represents less than 1% of our total water consumption when combined with electrical production.

Being located in the Midwest, Alliant Energy historically has not been directly impacted by droughts or water scarcity issues that have caused operational slow-downs or temporary shortages as has been experienced by utilities located in water-stressed regions of the United States. However, our company proactively considers both water availability and quality in our planning and ongoing operations. Our new natural gas-fired power plants are designed with cooling tower technology that minimizes water use. Negligible water will be necessary for our new wind farms and solar facilities.

Alliant Energy’s water withdrawals have decreased significantly due to retirement of fossil-fueled generating facilities. In addition, our company is continuing to implement initiatives to reduce water use at our remaining fossil-fueled generating facilities such as use of variable speed pumps to increase efficiency and best

management practices to conserve plant operational water use. We expect to modify our remaining coal-fired facilities to eliminate wet ash handling processes and install dry ash handling equipment.

Our fossil-fueled generating facilities monitor parameters to ensure proper water quality for plant use, as well as adherence to discharge permitting requirements, which protect receiving water bodies. 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. In February 2019, our company received an EPRI Technology Transfer Award for a demonstration project that used aerial drones to measure water temperatures of cooling water thermal plumes in support of regulatory permit renewals. The tests from this project resulted in a proof-of-concept in using drones to replace boat surveys in gathering data.

We also proactively take steps to protect our facilities in the event of increased precipitation by developing Flood Plans. The plans take into account that the key to successful flood preparations is advanced planning, careful monitoring of predicted water levels, early preparation and training.

The Board of Directors has delegated to the Operations Committee oversight of water management related matters including policy, compliance, business plans, and capital investments for large strategic projects . The Operations Committee reviews and advises the Board of Directors which has final approval authority .

Primary watersheds for Alliant Energy’s regulated utilities, IPL and WPL, operations include the Great Lakes and Upper Mississippi River drainage basins of the United States. Cooling water technologies used at our fossil-fueled facilities include once-through and recirculating with cooling towers.

Alliant Energy Environmental, Social and Governance Sustainability Performance 23

Page 24: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Reducing our watersupply needs*

Reductions achieved since 2005

2030 target -100

-80

-60

-40

-20

0

-50%

-75%

*Owned fossil-fuel generation

2018 Water management

IPL WPL Alliant Energy

Consumption (million gallons)

2,170 3,997 6,167

Fresh water withdrawal (million gallons)

122,080 78,408 200,488

Fresh water return rate

98% 95% 97%

Consumption rate (gallons/MWh)

199 359 280

Fresh water withdrawal rate (gallons/MWh)

11,220 7,041 9,106

By 2030, Alliant Energy’s water supply needs from fossil-fueled generation will be decreased by 75%

** Fresh water withdrawal and consumption rates are based on operational control adjusted for equity share of jointly-owned fossil-fueled generation units.

Source: Alliant Energy records and EPRI 2015 Technical Report, Evaluation of Freshwater Withdrawal and Consumption in Electricity Generation Based on Future Projections to 2030.

0

100

200

300

400

20182017201620152014

GA

LL

ON

S/

MW

H

Fresh water consumption rate –Electric generation plus facility operations**

318 310334

311280

0

2,000

4,000

6,000

8,000

20182017201620152014

MIL

LIO

N G

ALL

ON

S

Fresh water consumption –Electric generation plus facility operations**

5,238 5,479 5,266 5,6226,167

0

5000

10,000

15,000

20,000

20182017201620152014

GA

LL

ON

S/

MW

H

Fresh water withdrawal rate –Electric generation plus facility operations**

19,342

16,350

15,17212,681

9,106

0,000

100,000

200,000

300,000

400,000

20182017201620152014

MIL

LIO

N G

ALL

ON

S

Fresh water withdrawal –Electric generation plus facility operations**

318,812288,908

239,325 229,544200,488

Reducing our water supply needs*

Alliant Energy Environmental, Social and Governance Sustainability Performance 24

Page 25: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

2018 Waste management

Waste type Quantity generated (tons) Recycled (tons) Disposed (tons) % Recycled

Hazardous 49 7 42 14%

Non-hazardous 14,998 10,785 4,213 72%

Universal 22 22 – 100%

Construction and demolition

17,524 14,402 3,123 82%

Waste managementAlliant Energy continues to focus on improving how we manage waste in our daily operations as well as when our company retrofits, expands and decommissions our facilities. Our large construction contracts require contractors to reduce landfill waste by 75%. In 2018, for all large projects, we achieved 82% by diverting over 14,000 tons of metal, wood, concrete asphalt and other waste materials from landfills.

Collaborating to support a sustainable waste vendor audit process

In 2019, Alliant Energy joined CHWMEG, Inc., which is a non-profit organization comprised of companies interested in collaborating to efficiently conduct waste vendor audits. Routine audits assess a waste disposal company against industry standards and applicable regulatory compliance requirements. This helps to ensure our contracted waste vendors are performing work in a safe and environmentally responsible manner. Our company’s participation provides comprehensive, independent audits of 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.

Dumpster dive helps improve our recycling practices

In April 2019, our Iowa Sustainability Squad members and Facilities Department worked in collaboration with the Iowa Waste Exchange to conduct a thorough waste audit at the Cedar Rapids General Office. The Iowa Waste Exchange is a program housed within the Iowa Department of Natural Resources that provides assistance to assess waste streams in order to help identify reuse and recycling opportunities.

Volunteers sorted a day’s worth of garbage (recycling, compost, trash, etc.), which were individually weighed. The data was used by Iowa Waste Exchange to issue a report that provides confirmation of good practices and recommendations for future waste management improvements. Outcomes from this report will be used to enhance existing practices at all of our facilities.

Alliant Energy Environmental, Social and Governance Sustainability Performance 25

Page 26: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

CCRproductmanagement

Encapsulated use*

Storage onsite

Unencapsulated use**

Disposal

7%50%

9%

34%

* Encapsulated uses: Cement Readymix, cement raw feed, subbase under hard surfaces, asphalt uses.**Unencapsulated uses: Cattle feed lots, storage pads, agricultural use, grit blasting.

0,000

100,000

200,000

300,000

400,000

500,000

DisposalOnsite storageProduct use

20182017201620152014

CCR product use

57% 57%61% 60% 56%

TO

NS

2018 CCR management IPL WPL Alliant Energy

CCR product use (tons) 81,694 163,032 244,726

% CCR product use 50% 62% 57%

Coal combustion residualsCoal combustion residuals (CCR) are what remain after the direct combustion of coal at generating stations and include residuals from air quality control systems. Alliant Energy’s goal is to manage CCR safely and responsibly to protect both the environment and the public while assuring compliance with state and federal regulations.

We are complying with the EPA’s regulations for CCR management and disposal, including elimination of wet ash handling processes 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.

Alliant Energy works with state regulatory agencies to identify approved beneficial uses for CCR. Material that cannot be beneficially reused is placed in landfills that are permitted and include engineering design and controls that meet or exceed applicable federal, state and local requirements.

There are different types of CCR:

Fly ash is a very fine powder-like particle that is collected by emission controls.

Bottom ash is a coarse, granular sand-like material collected from the bottom of the boilers.

Scrubber solids consist of lime that is reacted in air quality control systems to reduce SO2 emissions. These solids are light in color, contain small amounts of fly ash and are typically collected in a baghouse.

In 2018, we were able to beneficially use 57% of the CCR generated.

2018 beneficial use program 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.

Sold 100% of the Class C fly ash to the cement industry. Class C fly ash has cement properties preferered 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.

* Encapsulated uses: Cement Readymix, cement raw feed, subbase under hard surfaces, asphalt uses.

**Unencapsulated uses: Cattle feed lots, storage pads, agricultural use, grit blasting.

Alliant Energy Environmental, Social and Governance Sustainability Performance 26

Page 27: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Ecosystem and habitat supportAlliant Energy’s environmental stewardship includes a longstanding tradition of ecosystem and habitat support. We work diligently to minimize impacts, protect and enhance natural areas to support various species, including those that are or may become threatened or endangered.

Our company has been a full partner in the Karner Blue Butterfly Habitat Conservation Plan since 1999 in Wisconsin.

We have collaborated with the Wisconsin Department of Natural Resources (WDNR) to increase lake sturgeon populations in the Wisconsin River since 1997.

Our company supports research and other efforts for preservation of the Monarch butterfly, including the Iowa Monarch Conservation Consortium, Wisconsin Monarch Collaborative and the Energy Resources Center’s Right-of-Way as Habitat Working Group.

We are a founding member of the Power-in-Pollinators Initiative, which is a collaborative conservation effort through EPRI.

For our growing wind turbine fleet, we have also supported EPRI-sponsored research aimed at protecting bat species and employing voluntary seasonal best practices for wind generation operations.

Ecosystem and habitat support

Native prairie and pollinator habitat 2,516 acres

Karner Blue Butterfly 275,635 acres

Our voluntary Avian Protection Plan (APP) formalizes and enhances our past practices of avian protection and incorporates industry best management practices for new construction or rebuilds of our distribution and wind generation facilities. There are two main categories for the best practices included in the APP – reporting and design.

Reporting best practices include procedures on recording incidents and what actions were taken to minimize the risk in those locations.

Design-based best practices include various retrofits such as increased spacing between energized and grounding equipment, bird diverters on electrical lines and covering certain electrical parts.

As our company’s owned wind production increases, the APP also covers best management practices to reduce impacts to birds as well as bats. At night in the fall during the primary bat migration season, turbines are “feathered” so that the blades are pitched parallel to the wind and reduce their revolution speed.

Alliant Energy uses Horizontal Directional Drilling (HDD) for various infrastructure construction projects to decrease impacts to the environment. Directional drilling is used to minimize impact on a wetland, waterway, endangered habitat and/or well established native landscape that conventional trenching would cause. This construction method is recognized by the WDNR and the U.S. Fish and Wildlife Service as a way to reduce the impact to the Karner Blue Butterfly, wetlands and many other environmentally sensitive areas.

Nesting platforms provide a safe refuge for ospreyOspreys are large birds that can have a wingspan of up to six feet. Their diet is primarily fish, and they prefer to build their nests up high so they can get a good view of the landscape around them. Unfortunately, this makes our utility poles an inviting place for ospreys to nest. Nesting spots on top of our poles can be a safety issue for osprey, as well as for our employees when they need to access the equipment a nest is sitting on.

Our company works with the Iowa and Wisconsin Departments of Natural Resources and area raptor projects to install nesting platforms for the ospreys. This gives the birds a place to nest that is both elevated and safe. Nesting platforms installed by our company and other organizations across the country are partly why the osprey population has grown significantly over the last several years.

Alliant Energy Environmental, Social and Governance Sustainability Performance 27

Page 28: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Envision recognitionThe 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%).

Why does Alliant Energy use Envision?

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.

What projects are using Envision?

Project Envision status and achievement level

Marshalltown Generating Station Complete - Envision Platinum

Dubuque Solar Complete - Envision Platinum

English Farms Complete - Envision Platinum

Upland Prairie Complete - Envision Platinum

West Riverside Energy Center In submittal process

LEED certificationLeadership in Energy and Environmental Design (LEED®) certification has been obtained for several of Alliant Energy's facility building construction projects. The LEED program was created by the U.S. Green Building Council (USGBC). It is a nationally accepted benchmark for the design, construction and operation of high performance “green” buildings. LEED promotes a whole-building approach to sustainability by looking at five key areas: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality.

Site Location LEED status

Cedar Ridge Wind Farm Operations Center

Eden, Wisconsin Gold

Iowa Technical Training Center Marshalltown, Iowa Gold

Prairie du Chien Operations Center Prairie du Chien, Wisconsin Gold

Sheboygan Operations Center Sheboygan, Wisconsin Gold

Whispering Willow Wind Farm Operations Center

Iowa Falls, Iowa Gold

Baraboo Operations Center Baraboo, Wisconsin Silver

Ottumwa Operations Center Ottumwa, Iowa Silver

Bent Tree Wind Farm Operations Center

Hartland, Minnesota Certified

Osceola Operations Center Osceola, Iowa Certified

Ottumwa Generating Station Administration Building

Chillicothe, Iowa Certified

Alliant Energy Environmental, Social and Governance Sustainability Performance 28

Page 29: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Project description

Marshalltown Generating Station – Marshalltown, IowaEnvision Platinum, April 2017 ISI award article

Dubuque Solar – Dubuque, Iowa Envision Platinum, April 2018 ISI award article

Quality of life

650 construction and 20 permanent jobs created

Plant feasibility study facilitated improvements to Marshalltown’s existing water and wastewater systems

Expands the City of Dubuque’s walking and bike paths encouraging multi-modal transportation

Port of Dubuque Site features an Energy Lab for the public to learn about solar generation

Close collaboration to integrate this renewable energy project into the City of Dubuque’s sustainability goals

Leadership Improved natural gas distribution capacity and infrastructure for the city reducing costs to businesses and residents

Utilized a community liaison to facilitate stakeholder feedback and online submission form for efficient communication

Provided training to support local emergency responders that benefits other local businesses

Conducted stakeholder analysis and community impact assessment that included follow-up to ensure feedback was evaluated through post-construction to support maximum community satisfaction

Software used to continuously monitored site performance and recommend preventative maintenance

Resource allocation

Site orientation designed for structural integrity while minimizing soil replacement

Monitoring systems designed with preventative maintenance and routine checkpoints to operate plant efficiently

Increased cycling capability of cooling water minimizes overall site water needs

Sustainable procurement program was used to maximize local sourcing for materials and labor

Solar requires no on-site water supply and does not generate operational waste

All of the soil excavated on-site was reused for the project with none taken off-site

Natural world

Site plan avoided wetlands disturbance and facility design increased storm water capacity post-development

Created nature trails with opportunities to learn about pollinator habitats and natural prairie which are 67% of the site footprint

Both solar sites improve local land use conditions by revitalizing a former brownfield site and row crop farmland to support native prairie plants

Beehives will be introduced to increase biodiversity after sufficient prairie habitat is established

Climate and risk

Site-specific climate change risk assessment and adaptation plan completed as part of the project design

Site-specific climate change risk assessment and adaptation plan completed as part of the project design

Envision project highlights

Alliant Energy Environmental, Social and Governance Sustainability Performance 29

Page 30: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

*These two projects received separate awards, but have similar project attributes. This table shows their most sustainable similarities.

Project description

Upland Prairie Wind Farm – Everly, IowaEnvision Platinum, June 2019 ISI Award Article

English Farms Wind Farm – Montezuma, IowaEnvision Platinum, June 2019 ISI Award Article

Quality of life

Noise and vibration studies were done at the site and Low Noise Trailing Edge turbines were used for best noise and vibration quality

Road improvements were made to help with the project construction and to better the community

Leadership Landowners were actively engaged in the project and had the ability to voice their concerns

There are many preventative maintenance techniques that will be used at the site to increase the longevity of the wind turbines

Alliant Energy’s Public Affairs staff worked with Iowa’s policymakers to ensure that renewable energy is a favorable, long-term resource

Resource allocation

Sustainable procurement program was used to maximize local sourcing for materials and labor

All of the soil excavated on-site was reused for the project with none taken off-site

Natural world

Native Prairie was planted at the operations centers that were built to support the wind farms

Stormwater infiltration was increased at the facilities resulting in a more natural hydrologic function

Climate and risk

Site-specific climate risk assessment plan completed as part of the project design

Envision project highlights

Alliant Energy Environmental, Social and Governance Sustainability Performance 30

Page 31: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Corporate governanceCorporate governance plays an important role in sustainability at Alliant Energy. Strong corporate governance starts with a strong, diverse and independent Board of Directors providing oversight over management and the company.

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 is overseen by the Board’s Operations Committee, consisting of solely independent directors. Below is a summary of our Board of Directors. Additional information on the Board and corporate governance can be found our website at https://alliantenergy.gcs-web.com/corporate-governance/highlights.

Skills and qualifications

7

9

6

8

8

7

7

7

4

6

Strategic leadership

Financial acumen

Operations

Customer perspective

Legal and regulatory

Humanresources/exec comp

Risk management

Technical/cybersecurity

Environment/Safety

Diversity

MenWomenBoardgender

diversity55%45%

Boardethnic

diversity

11%

60-65

Over 65

55-59

Under55

45%

22%

11%

22%

7 years or lessOver 7 years 45% 55%

Averageage 57

Averagetenure

7.2 years

MenWomenBoardgender

diversity55%45%

Boardethnic

diversity

11%

60-65

Over 65

55-59

Under55

45%

22%

11%

22%

7 years or lessOver 7 years 45% 55%

Averageage 57

Averagetenure

7.2 years

Eight out of nine current directors are independent

Lead independent director with clearly defined and robust responsibilities

Executive sessions of independent directors held at each regularly scheduled board meeting

Annual board and committee self-assessments

Share ownership guidelines based on total annual retainer

Director resignation policy for directors in uncontested elections that do not receive majority “for” vote

Skills and qualifications

Alliant Energy Environmental, Social and Governance Sustainability Performance 31

Page 32: Environmental, Social and Governance Sustainability ......2019/08/01  · Business model Long-term viability of the electric power company business model considering evolving risks,

Executive compensationAlliant Energy’s executive compensation program is designed to promote our strategic plan. The annual performance pay plan rewards financial performance, as well as customer experience, diversity and environmental performance. The use of financial and operational metrics avoids risks associated with excessive focus on a single financial performance measure.

Key compensation governance and pay practices

Regular reviews of the program by the Compensation and Personnel Committee

Double-trigger change-in-control provisions in our severance agreements and long-term awards

Stock ownership guidelines for executive officers increased in 2019

Stock ownership guidelines for directors

Dividends paid on equity awards only if performance targets are met or vesting is completed

Performance metrics encourage achievement of absolute growth, relative growth, financial goals and operational goals

No hedging and pledging of company stock

No stock options

Clawback language in our annual performance pay plan

No Section 280G tax gross-up provisions in our change-in-control agreements

Limited perquisites for our executive officers

Restrictedstock units

Performanceshares

Performance restricted stock units Long-term

incentives

35%

35%

30%

Customerexperience*

Environmental

Diversity

EPS

Annualperformance

pay

70%

5%

10%

15%

The following are key compensation considerations. More information can be found in the Compensation Discussion and Analysis of our 2019 proxy statement at https://alliantenergy.gcs-web.com/financial-information/proxy-statement-archive.

* Customer experience is calculated based on the reliability measures of SAIDI and SAIFI and customer interaction survey results.

Alliant Energy’s long-term equity incentive pay rewards long-term absolute growth through performance restricted stock units, and relative growth, and align management’s interests with those of our shareowners.

Alliant Energy’s annual performance pay metrics are the same at all levels of our organization .

© 2019 Alliant Energy 6657504 8/19 JS

Alliant Energy Environmental, Social and Governance Sustainability Performance 32