Corporate Responsibility and Sustainability Report
Madison Gas and Electric (MGE) publishes an annual Corporate Responsibility and Sustainability Report. MGE is committed to helping customers, investors and other stakeholders better understand our strategies, risks, challenges and opportunities as we transition to a more sustainable future. The 2021 report features information about MGE's corporate strategy and climate-related matters; safety and operations; metrics and targets; customer and employee engagement; risk management; and governance and oversight. Highlights include:
- MGE expects to achieve carbon reductions of at least 65% by 2030, consistent with global climate science. MGE already has reduced carbon emissions 30% from 2005 levels.
- MGE is decarbonizing its electricity generation, projecting an estimated total of $565 million in nearly 400 megawatts (MW) of wind, solar and battery storage between 2015 and 2024.
- As a minority owner, MGE is working with the co-owners of the Columbia Energy Center to retire the coal-fired plant by the end of 2024. By 2030, MGE’s remaining use of coal is expected to be reduced substantially. We expect to eliminate coal as an energy source by 2035 when the Elm Road Generating Station stops using coal. MGE is a minority owner of Elm Road.
- MGE employees achieved historic safety results in 2020. Despite working through a global pandemic, we recorded our lowest-ever recordable incident rate.
- MGE’s electric service reliability is ranked number one in the country for both the fewest number of outages and shortest duration of outages per customer in 2020, according to an annual industry survey.
- MGE earned the Green Master designation in 2021 for the eighth consecutive year from the Wisconsin Sustainable Business Council. Only the top 20% of applying companies receive the Green Master designation.
- MGE’s philanthropic arm, the MGE Foundation, has given more than $6.7 million to more than 400 community organizations in the last five years.
- MGE is advancing electric transportation with a robust customer education program, a home charging program and a public charging network. MGE also has an electric vehicle (EV) fleet goal of 100% all-electric or plug-in hybrid light-duty vehicles by 2030.
Targeting Net-Zero Carbon Electricity
MGE is working to achieve deep decarbonization, consistent with current climate science, as quickly and as cost-effectively as we can. Our carbon reduction goals reflect our vision and signal our direction but do not determine our pace. We’ve said since introducing our clean energy and carbon reduction goals—if we can go further faster, we will.
Consistent with the Paris Agreement on climate change, we committed in November 2015 to reducing carbon at least 40% by 2030 (from 2005 levels). In May 2019, MGE announced a goal of net-zero carbon electricity by 2050, which aligns with the Intergovernmental Panel on Climate Change (IPCC) and its assessment of limiting global temperature increases to 1.5 degrees Celsius. Consistent with climate science, we expect to achieve carbon reductions of at least 65% by 2030.
"MGE is committed to corporate responsibility, to environmental leadership and to a more sustainable energy future for the benefit of our customers, investors and the broader community," said Chairman, President and CEO Jeff Keebler. "By working with customers to decarbonize our energy supply, advance energy efficiency and electrify transportation, we can meet our goal of net-zero carbon by 2050. If we can go further faster through the use of new technologies and partnerships with our customers and communities, we will.”
MGE's commitment aligns with the goals of the U.S. Mid-Century Strategy (MCS) for Deep Decarbonization. The MCS is the U.S. strategy for meeting the goals of the Paris Agreement. Both the Intergovernmental Panel on Climate Change (IPCC) and the MCS rely on:
- Decarbonizing electric generation
- Using energy efficiently
- Electrifying other energy uses, including transportation.
These are the strategies MGE is pursuing and will continue to pursue to achieve deep decarbonization.
EEI ESG/Sustainability Reporting Templates
To advance further transparency and disclosure in company operations and governance, MGE is participating in the Edison Electric Institute's (EEI) environmental, social, governance and sustainability-related reporting templates. The quantitative template
includes data related to MGE's energy portfolio (generation and capacity), emissions, capital expenditures, and human and natural resources. The qualitative template
includes information related to our company's management and oversight of and strategies for transitioning toward deep decarbonization and greater sustainability. These templates are voluntary and industry-specific.
"MGE has ambitious carbon reduction goals and is advancing a more sustainable future through renewable generation, the electrification of transportation and increased engagement with our customers around energy efficiency. These reporting templates offer one more way for us to share relevant information with our investors," Keebler said.
EEI members represent U.S. investor-owned electric companies.
MGE Energy is committed to transparency. The company has reviewed the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), performed an analysis of its disclosures relative to the TCFD recommendations and determined that MGEE's disclosures are consistent with and responsive to the TCFD guidance and recommendations.
Green Masters Program
MGE voluntarily participates in two statewide benchmarking programs, achieving the highest designations from both programs.
In 2021, MGE earned the Green Master designation from the Wisconsin Sustainable Business Council for the eighth consecutive year. This voluntary, independent benchmarking program, which evaluates sustainability actions in nine key areas, recognizes the top 20% of participants as a Green Master.
In 2017, MGE expanded the scope of its renewed five-year contract with the Wisconsin Department of Natural Resources for its Green Tier certification, which recognizes environmental leadership. MGE's primary goal in the expanded contract is to cover all MGE operations under the company's Environmental Management System, or EMS. An EMS is a continuous improvement process that evaluates, prioritizes and manages environmental risks.
MGE was the first electric utility to take part in the Green Tier pilot program and remains the only electric utility to be certified at the highest level of Green Tier.