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Greetings from Our President & CEO

We are proud to present you with our 2017–2018 Sustainability Report. Today’s stakeholders expect corporations to provide leadership on environmental, social and governance (ESG) principles and make a positive impact. At American Water, we know that “how” a company operates is just as important as “what” a company does.

We are a leader in integrating ESG principles into our business. We have been recognized for our efforts by our inclusion in the 2019 Bloomberg Gender-Equality Index, the NAACP Equity, Inclusion and Empowerment Index, Barron’s 100 Most Sustainable Companies ranking and as a top-scoring (100%) company on the Disability Equality Index (DEI). It is vitally important that we tell our entire story and fully demonstrate our commitment to these defining principles for outstanding companies.


For some, ESG is a recent development. For American Water, it is an affirmation of the values we have upheld for decades.


However, ESG is much broader than just three words. It includes environmental leadership and sustainability; operational excellence; employee engagement, safety and equality; active community engagement, civic and charitable involvement; and transparency and good governance—all are foundational to our corporate strategy. Stakeholders want to see defined and measured actions and results that are reflective of a company’s commitment to the principles of ESG.

Environmental leadership is one of five values at American Water and we have the responsibility to treat and deliver the most precious of life’s needs—water. Sustaining that critical resource for generations to come through Energy Use, Water Use and Water Policy Leadership is core to who we are. For example, we have a goal of reducing GHG emissions 40% by 2025 from our 2007 baseline, and have already achieved an approximate reduction of 31% through 2018.

We also believe “Social” represents a view of a company’s impact on everyone it touches—our people, customers, communities, investors, regulators, vendors and many more. This is our culture and how we do business. American Water is a values- and purpose-driven company. We are people-powered and our employees represent the communities we are privileged to serve. We are customer obsessed and every day we take pride in delivering the critical services of water, sanitation and fire protection to more than 14 million Americans.

Our 7,100 employees serve over 1,600 communities across the country, and we aspire to make every community better because we are there. We have been in business since 1886, and we are in this business for the long-term. We have a strong commitment to employee and customer safety, as well as to employee inclusion and diversity reflecting the communities we serve.

From a Governance standpoint, we are recognized as being one of 10 S&P 500 companies with at least 50% female Board members. Our commitment to gender parity resulted in our Board being comprised of 50% men/50% women in 2018, and 45.5% men/54.5% women as of July 25, 2019.

A commitment to ESG principles is a priority for our entire company from the Board of Directors to leadership to every employee. As the largest water utility in the U.S., we must be committed to the sustainability of this critical resource for generations to come.

Companies do well by doing good. Values matter. To us, being committed to ESG principles means: keeping employees safe and injury-free, and developing them to their fullest potential; being a leader in environmental sustainability; being obsessed with outstanding water quality and customer service; and being the trusted source of everything water.

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Susan Story

President and Chief Executive Officer

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