Chapter 15, Problem 15.46ACT

FirstEnergy and its sustainability report (Learning Objectives 1, 2, & 3)

REAL LIFE

FirstEnergy is an electric utility serving markets in the Midwest and Mid-Atlantic regions. It operates an infrastructure of nearly 269,000 miles of distribution lines stretching from the Ohio-Indiana border to the New Jersey shore.

FirstEnergy issued a sustainability report in 2016 entitled “Sustainability report 2016: Focusing our energy on the future.” While the report is lengthy (72 pages), FirstEnergy does not indicate the use of GRI reporting guidelines or any other sustainability reporting standards.

Although topics may be listed in FirstEnergy’s sustainability report, few actual metrics/data are provided in the report. For example, a core GRI G4 performance indicator, G4-EN3, Energy Consumption within the Organization, is not reported. Dollars invested in selected projects are reported in the sustainability reports, but few other data are provided. Goals for the future are listed in the report, but few current measures are provided. The sustainability report also does not include mention of any independent-party assurance of the report.

Questions

1. 1. What reasons could FirstEnergy have for not using GRI reporting standards (or any other sustainability reporting standards) for its sustainability reporting?
2. 2. What potential issues does a sustainability report prepared without using a standard framework such as GRI raise for stakeholders? Is such a report useful in your opinion? Explain.
3. 3. Do you think that independent-party assurance of a sustainability report is important? Why or why not?
4. 4. What reasons could FirstEnergy have for issuing a sustainability report?