Alignment with a Net Zero Ambition

Our company, state, and communities have much at stake from the effects of climate change. Hawai‘i’s geographic isolation, extreme weather events, and direct exposure to sea level rise keep the climate crisis top of mind for our companies and our stakeholders. That’s why our state and our company have sought to be leaders in setting goals and demonstrating real progress in the near term – not 20 or 30 years from now. Hawai‘i was selected to host one of the UN’s first Local2030 sustainability hubs in 2018, reflecting its suitability as a role model and learning ground for other island communities. Hawai‘i has long been on the forefront of U.S. states in setting ambitious climate goals, with goals to achieve a carbon neutral to carbon negative economy by 2045 and a 100% renewable portfolio standard (RPS) by 2045, with interim RPS milestones of 30% by 2020, 40% by 2030 and 70% by 2040.

At HEI, we recognize the critical role we play in reaching these goals. Our subsidiaries are uniquely positioned to advance statewide climate change mitigation and adaptation efforts. We expect to achieve net zero emissions from power generation by 2045 and have aligned our strategies with this ambition. In its 2021 Climate Change Action Plan, Hawaiian Electric committed to reduce carbon emissions from generation by 70% by 2030 (from 2005 baseline levels). We’re making strong progress. On a preliminary basis, in 2021 we reduced greenhouse gas (GHG) emissions from electricity generation by 22% compared to 2005. We also surpassed an RPS of 38%, well on track to exceed our next state milestone of 40% by 2030. Throughout this report, including on pages 58-69, we describe our progress to date and the many efforts we have underway to reach these important goals.

In 2021, Hawaiian Electric signed the Science Based Target initiative’s (SBTi) Business Ambition for 1.5°C campaign, pledging to validate our goals through the SBTi. We are committed to continuing to work closely and collaboratively with policymakers and our communities to reach our collective goals.

At HEI we believe our goals and plans place us on a strong path to reaching net zero carbon emissions by 2045. Hawaiian Electric’s climate commitment is a significant down payment on the economy-wide emissions reduction that Hawai‘i will have to achieve to be in line with the U.S. emissions reduction commitment of at least 50% by 2030 compared to 2005. With the completion of our first enterprise-wide GHG emissions inventory, we have laid the foundation to further reduce emissions across the rest of the HEI enterprise. We will provide an update on that work in our future reporting.

About HEI

From the time that human beings first landed on Hawai‘i’s shores, a deep sense of obligation to care for and steward these islands has been passed from one generation to the next, developing a culture of sustainability that guides us today.

At HEI, our family of Hawai‘i-based companies provides energy and financial services while advancing our state’s clean energy and sustainability goals.

As a company with a strategy focused on Hawai‘i, and with all of our operations in the state, our ability to deliver long-term value for our stakeholders is tied to the strength and sustainability of Hawai‘i’s communities.