Corporate Responsibility and Sustainability Report - MGE Energy, Inc. - Madison, Wisconsin

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 2023 report features information about MGE's corporate strategy and climate-related matters; safety and operations; customer and employee engagement; risk management; and governance and oversight. Highlights include: 

  • MGE’s plans and strategies to reduce carbon at least 80% by 2030 as it works with customers toward achieving net-zero carbon electricity by 2050.
  • MGE’s goal and plans to achieve net-zero methane emissions from its natural gas distribution system by 2035.
  • MGE’s ongoing transition away from coal-fired generation and plans to eliminate it from the company's portfolio by the end of 2032. By the end of 2030, MGE expects coal to be used only as a backup fuel at the Elm Road Generating Station, which plans to transition to natural gas.   
  • An estimated billion dollars in clean energy investment expected from 2015 through 2028. Since fall 2015, when our Energy 2030 framework was announced and through year-end 2022, MGE has announced clean energy projects that we expect will increase our owned renewable capacity by more than nine times upon completion. 
  • MGE is partnering on an innovative, first-of-its-kind in the United States long-duration energy storage system that would be capable of providing more than 10 hours of energy storage, if approved by state regulators. Known as the Columbia Energy Storage Project, the 20-megawatt project was selected in 2023 to receive a federal grant.  
  • The company’s Statement on Human Rights adopted in 2022 by the Board of Directors.  
  • Industry leadership. MGE continues to be top-ranked for electric reliability, placing second for the fewest number of electric outages per customer, according to the most recent results from an annual industry survey including more than 75 electric utilities nationwide. MGE crews also continue to earn high marks when notified of a potential natural gas emergency with MGE’s total response time ranking in the top 12% of a nationwide industry survey, based on 2022 data.
  • MGE’s Occupational Health and Safety Policy. Introduced in 2022, the policy recognizes the risks inherent to occupational health and safety and embraces safe work practices and environments as fundamental values at MGE.
  • The company’s charitable giving benefiting local communities. In the last five years, the company’s philanthropic arm, the MGE Foundation, has given more than $8.3 million to more than 400 nonprofit organizations.

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. We’ve said since introducing our clean energy and carbon reduction goals—if we can go further faster, we will.  

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 also have a goal to reduce carbon emissions at least 80% by 2030, based on 2005 levels. By 2030, we expect every MGE electric customer will have 80% fewer carbon emissions from their electricity use simply by being an MGE customer. 

"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 electricity 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 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. 
 

ESG Data Center

Our commitment to transparency and disclosure 
MGE is committed to helping investors, customers and other stakeholders better understand the company's goals, long-term strategies and progress toward achieving our goals. Our ESG Data Center has data, reports, including our Task Force on Climate-Related Financial Disclosures Report, and other environmental, social and governance (ESG) related information.  

CDP (Carbon Disclosure Project)

Disclosure Insight Action logo Edison Electric Institute logo

MGE submits data to the global environmental impact disclosure platform, CDP. MGE’s climate change questionnaire is available here.

EEI-AGA ESG/sustainability reporting templates
MGE also continues to participate in the Edison Electric Institute's (EEI) and American Gas Association’s (AGA) environmental, social, governance (ESG)/sustainability-related reporting templates. EEI members represent U.S. investor-owned electric companies. AGA members represent U.S. natural gas utility companies. 

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’s Commitment to Diversity, Equity and Inclusion and our EEO-1 Report
As part of our commitment to transparency and disclosure, we provide MGE’s EEO-1 data, which serves as a snapshot in time of the organization’s workforce demographic data provided annually to the U.S. Equal Employment Opportunity Commission.