Energy & Emissions
Why It Matters
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We require energy to extract and deliver clean and safe
water and wastewater services to our customers. Fossil
fuel-based energy sources can contribute to climate
change through the emission of GHGs. Climate change,
especially without mitigation, will likely have implications
on our business and our customers through extreme
weather impacts that threaten the availability of water
supplies and resilience of our infrastructure.
As indicated in a report titled, “Energy-Water Nexus:
The Water Sector’s Energy Use”, the treatment and
transportation of water represents approximately
4% of all electricity use in the U.S. Most of the energy
that water utilities consume is used to pump water.
At American Water, approximately 90% of our electricity
consumption and more than 80% of our GHG emissions,
are related to pumping water. As an energy-intensive
utility, it is our job to take responsibility for our energy
use and minimize our GHG emissions. The biggest
opportunities to reduce our GHG emissions across
our business include energy efficiency and responsible
vehicle and equipment usage.
Our Approach
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We focus our energy use and GHG emissions reduction
initiatives on water efficiency across our business.
Improving water efficiency can also help reduce energy
cost burdens on our customers. We consider renewable
energy sources when negotiating power purchase
agreements, recognizing that doing so can help to
reduce our own costs and contribute to lower global
carbon emissions. The nature of our business
underscores that long-term environmental benefits
often outweigh short-term cost reductions. Therefore,
we still consider projects that may have higher costs
but provide additional environmental benefits. We also
participate in and support energy efficiency and rebate
DOWNLOADS programs, such as the EPA’s WaterSense program.
Our strategy towards operational efficiency includes
five key components: plan, design, construct, operate
and maintain.
- Plan for efficiency: We consider opportunities to improve energy and water efficiency in our Comprehensive Master Planning process.
- Design for efficiency: We employ enhanced pump, pressure management, lighting and process design standards.
- Construct for efficiency: We follow sustainable construction standards and methods.
- Operate for efficiency: We use enhanced best operating practices, leak detection and repair procedures.
- Maintain for efficiency: We utilize computerized maintenance management systems and advanced preventative maintenance strategies to optimize performance and reliability of our equipment.
Our Performance
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In 2021, American Water refined the existing energy
and emissions goal to reduce our absolute scope 1 and
scope 2 GHG emissions by more than 40% by 2025 (from
a 2007 baseline). Our refinement clarifies our goal to
include absolute scope 1 and 2 reduction of more than
40%. We have already achieved an approximate 36%
reduction in GHG emissions through December 2020.
We discuss our efforts to minimize our energy use
and emissions in more detail in our annual CDP Climate
Change Report. In 2019 and 2020, we received a
B score for our performance.