We use an integrated risk management framework that extends from board oversight to risk identification and assessment at the business unit level. The framework ensures risks are consistently identified, thoroughly assessed and effectively managed throughout our business. The audit committee of the board of directors has primary responsibility for risk management at Entergy at the board level. Our management team provides regular reports to the committee on compliance, significant legal matters, insurance programs, environmental risks, and credit and market risks. Within our utility and EWC businesses, we analyze and monitor a full range of economic, environmental and social risks using our enterprise risk management process.
We use business continuity planning to establish actions that would ensure continuity and eventual full restoration following a business disruption. Continuous operation of our business depends on our ability to maintain the safety and security of all Entergy assets, employees and operations. We continue to take steps to harden assets against security threats and engage with local, state and federal law enforcement agencies on initiatives to share threat information. We have a cyber incident response plan in place to help mitigate threats that place sensitive business and customer information at risk. To mitigate the physical risks associated with extreme weather events, we have a storm hardening process in place to prioritize investments. We also use proven emergency preparedness and response and stakeholder outreach processes.
Our enterprise risk process for major initiatives provides a disciplined approach to the identification, monitoring and mitigation of top-tier risks to achieving our strategic imperatives, as well as the aggregation of these risks at an enterprise level.
Cumulative CO2 Emissions
from Entergy-Owned Plants
and Controllable Purchases
We account for risks related to greenhouse gas emissions in our business planning process, using our expectations on future carbon prices and compliance costs for other potential environmental requirements to test business planning decisions. Since 2001, Entergy has operated under voluntary commitments to stabilize our CO2 emissions as part of our efforts to reduce our environmental footprint, manage the physical risks of climate change and gain valuable experience in carbon accounting in anticipation of federal regulation of carbon emissions. Our current commitment is to maintain CO2 emissions from Entergy-owned power plants and controllable power purchases through 2020 at 20 percent below year 2000 levels. Our greenhouse gas inventory is verified by a third party. Through 2015, our cumulative emissions are more than 9 percent below our 2001–2015 target.
Entergy was named to the 2015 Climate “A” List of S&P 500 leaders in climate performance – the only U.S. utility on the CDP list.