Corporate Citizenship & ESG

Our Focus on ESG

Hannon Armstrong is focused on achieving a high level of environmental and social responsibility and strong corporate governance. We seek to harness the power of capital to effect positive change in our communities and for our clients, partners, shareholders, and stakeholders at large. Our Board of Directors is focused on integrating ESG matters into our strategies, activities, policies, and communications.

Sustainable Yield® | Offering Investment Vehicles with Measurable Impact

HASI
Carbon Count®

0.42 total metric tons of CO2 offset annually per $1,000 invested in 20181
 

HASI
Sustainable Yield® Bonds

0.27 metric tons of CO2 emissions offset annually per $1,000 invested in March 2017 Sustainable Yield® Bonds issuance

ESG Highlights

ESG Reporting and Corporate Responsibility photo

Environmental Highlights

In 2013, we became the first U.S. public company exclusively focused on financing solutions to climate change.
As such, we are committed to environmental sustainability both through our investments as well as in our own business operations.

  • We define sustainability as positively impacting the environmental while being neutral or negative on GHG emissions.
  • We evaluate the carbon impact of all projects using a CarbonCount score. We also evaluate the projects for other environmental benefits such as water use reduction.
  • Our corporate electricity is obtained from carbon free sources.
  • We are the first U.S. public company to commit to the Climate Disclosure Standards Board initiative to implement the recommendations of the Task Force on Climate Related Financial Disclosure (TCFD).

2018 Hannon Armstrong Emissions Data

The table below Illustrates our goals and performance for 2018 in metric tons (MT)

ESG Reporting and Corporate Responsibility - emissions data chart
ESG Reporting and Community Impact photo

Social Responsibility Highlights

Our organization recognizes the impact both our external and internal practices have on society. Our focus areas include but are not limited to social responsibility, diversity and inclusion, and employee engagement, development and total rewards, including:

  • Corporate sponsorships for non-profit events and organizations aligned with our core values, such as Carbon Neutral corporate sponsorship for the Chesapeake Bay Foundation’s annual event.
  • Employee volunteerism often aligned with our core values, including rooftop solar installations for low-income households
  • A focus on hiring and retaining diverse and highly talented employees and empowering them to create value for our stockholders
  • Our workforce is ~40% female and ~20% minority
  • Regular employee meetings on sustainability and corporate performance with our CEO
  • Encouraging our employees to continue to develop in their careers, including by obtaining advanced degrees or professional certifications
  • Employees generally receive a portion of their compensation in the form of stock grants tied to performance
ESG Reporting HASI Board of Directors photo

Corporate Governance Highlights

Hannon Armstrong’s corporate governance is focused on being closely aligned with the interests of our stockholders.  Notable features, which are described in more details in our proxy statement, include:

  • Our Board of Directors is focused on integrating ESG matters into our strategies, activities, policies and communications.
  • Annual re-election of each of our directors
  • Six of our seven directors are independents
  • Two directors each qualify as an “audit committee financial expert”
  • Two of our Six independent directors are women, in furtherance of our board diversity policy
  • Majority vote policy for the election of directors
  • Targeted director retirement age of 75
  • Active stockholder outreach program
  • Annual vote on executive compensation
  • Formal Code of Business Conduct and Ethics and Whistleblower policies
  • Formal clawback policy

Our Impact by the Numbers

Jobs

Our investments create over 95,000 highly skilled and high-wage jobs in over 40 states.

Education

Our investments provided energy efficiency upgrades to educational facilities that support over 170,000 school children annually.

Veterans

Our investments provided energy efficiency upgrades to hospitals and other facilities that serve over 1 million U.S. military veterans annually.

Emissions

Our investments reduce 2.8 million cumulative metric tons of carbon dioxide (CO2) annually, the equivalent to eliminating emissions from over 330,000 average U.S. homes every year.

Water

Our investments save 1.6 billion cumulative gallons of water annually, the equivalent to eliminating water consumption in 14,000 U.S. households each year.

Sustainable Impact Since Our IPO

ESG Reporting / CO2 Reduced photo
ESG Reporting / Water Saved photo

Embracing Environmental Accountability & Transparency

We quantify, rank and disclose the impact of all investments in our annual Sustainability Report Card. Below are the 2018 results for GHG emissions offset per $1,000 invested.

ESG Reporting / Sustainability Report card chart

Estimated carbon savings are calculated using the estimated kilowatt hours (“kWh”), gallons of fuel oil, million British thermal units (“MMBtus”) of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of CO2 equivalent emissions based upon the project’s location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis.

CarbonCount® is a third-party scoring tool offered by The Alliance to Save Energy that evaluates investments in U.S.-based, energy efficiency and renewable energy projects to determine how effectively they can be expected to reduce CO2 emissions per $1,000 of investment.

*Investments in seismic retrofits provide resiliency in the event of an earthquake. A secondary benefit of such retrofits includes the preservation of carbon embedded in the built environment.

Supporting Leading Climate Action & Sustainability Initiatives

We actively partner with a number of campaigns and coalitions that reflect our commitment to the climate action, corporate sustainability progress, and clean energy expansion necessary to advance the goal of the Paris Agreement.
That is, limiting global temperature rises to no more than 2 degrees, and ideally 1.5 degrees.

$1T 2030: The American Renewable Investment Goal logo
Climate Action 100+ logo
Sustainable Development Goals logo
Sustainable Development Goals logo
Task Force on Climate-related Financial Disclosures logo
We Are Still In logo

Hannon Armstrong is committed to the UN Global Compact corporate responsibility initiative and its principles in the areas of human rights, labour, the environment and anti-corruption.
www.unglobalcompact.org

ESG Reporting and Corporate Responsibility video link

Watch a powerful documentary about the reality of climate change, sea level rise and erosion in one of the Chesapeake Bay’s most beautiful yet most vulnerable areas. A film by Tom Horton, Dave Harp and Sandy Cannon-Brown.