AES

Independent Power Producers & Energy Traders

AES

$ 16 (2.3)%

Share price

$ 11 bn

Market Cap

$ 40 bn

Enterprise Value

Carbon footprint

GHG emissions per $ 1 mln investment

31x the weighted average for S&P 500

FY2021

Primary Climate Goal

Proj. YOY change in GHG emissions (Scope 1 + 2)

Weaker than the -8% weighted average for S&P 500

FY2022

AES aims to achieve net zero for Scope 1 + 2 by 2040

This target has not been verified as science based according to SBTi

Secondary Climate Goal

Proj. YOY change in GHG emissions (all Scopes)

Weaker than the -6.5% weighted average for S&P 500

FY2022

AES aims to achieve carbon neutrality for all Scopes by 2050

This target has not been verified as science based according to SBTi

GHG emissions and Carbon intensity

AES reported Total CO2e Emissions - Market-Based Scope 1 + Scope 2 for the twelve months ending 31 December 2021 at 41,456 Kt (-1,761 /-4.1% y-o-y). Also positively, carbon intensity decreased to 3,721 t (-753 /-16.8% y-o-y).

AES's Scope 3 emissions increased to 7,351 Kt (+82/+1.1% y-o-y). The parameter has been fairly volatile.

The company is committed to achieving net zero for Scope 1 + 2 by 2040, which translates into the estimated reduction of -2,182 Kt per annum over the period of FY2022 - FY2040. This target, however, has not been recognised as science-based (and as aligned with Paris Agreement) by the SBTi.

Also, the company commits to achieving carbon neutrality for all Scopes by 2050, which translates into the estimated reduction of -1,683 Kt per annum over the period of FY2022 - FY2050. This target, however, has not been recognised as science-based (and as aligned with Paris Agreement) by the SBTi.

AES aims to achive carbon neutrality across its entire value chain (all Scopes) in 2050. Companies normally become carbon neutral with the help of the acquisition of carbon offsets rather than absolute reductions in their own greenhouse emissions. Also, carbon neutrality does not include non-CO2 GHG emissions.

Date	Total CO2e emissions (market-based Scope 1 & 2) (Kt)	Scope 1	Scope 2	Scope 3	Revenue (USDm)	Carbon intensity (tons of CO2e) / (USDm)
2021Q4	41,456	41,202	253	7,351	11,141	3,721
2020Q4	43,217	42,961	256	7,269	9,660	4,474
2019Q4	49,452	49,092	328	9,973	10,189	4,854
2018Q4	50,609	50,291	318	10,071	10,736	4,714
2017Q4	60,032	59,804	228	13,872	10,530	5,701
2016Q4	70,766	70,457	309	5,866	10,281	6,883
2015Q4	70,707	70,339	368	6,241	14,155	4,995

AES