Leading international firm names Pinnacle West tops for environmental management & performance
An international investment advisory firm has recognized Pinnacle West Capital Corp. as one of the nation's top utilities in demonstrating superior environmental and social performance characteristics.
PHOENIX, April 16, 2004 -- An international investment advisory firm has recognized Pinnacle West Capital Corp. as one of the nation's top utilities in demonstrating superior environmental and social performance characteristics.
Innovest Strategic Value Advisors Inc., of New York (www.innovestgroup.com), assigned Pinnacle West its top rating ('AAA'), and ranked the Company second out of 26 electric companies listed on the Standard & Poor's 500 for environmental performance. Pinnacle West also earned the 'AAA' rating in Innovest's previous two studies, in 2002 and 2000.
"Pinnacle West has once again demonstrated that it is an industry leader in managing environmental and social performance," said Carla Tabossi, senior analyst for Innovest. "These characteristics are important because companies that have a strong focus on environmental stewardship and community leadership tend to build competitive advantages that enhance shareholder value.
"As a result, it's likely Pinnacle West will out-perform the market and its peers going forward."
In addition to its overall 'AAA' rating, Pinnacle West was the top-ranked utility by Innovest's Intangible Value Assessment (IVA). The IVA is designed to uncover hidden value potential for investors and paint an all-encompassing picture of the companies it surveys by measuring such factors as corporate governance, community outreach, labor relations and regulatory relations, Tabossi said.
Innovest develops industry sector annual reports to help investors identify companies with excellent environmental performance records. The research firm has found a positive correlation between stock price and environmental performance mainly because environmental performance turns out to be an excellent proxy for management quality, the primary determinant of stock returns. Innovest's environmental ratings (ranging from 'AAA' to 'CCC') identify environmental risks, management quality and profit opportunity differentials typically not identified by traditional equity analysis.
"The Pinnacle West family of companies and our employees take environmental performance seriously," said Ed Fox, Vice President of Communications, Environment and Safety for Pinnacle West and its subsidiary, Arizona Public Service. "To have a third party without a vested interest in our organization tell us we're performing at such a high level is important because it indicates we are doing the right thing for the communities in which we work and live -- and we're doing right by our employees and shareholders."
In 1994, Pinnacle West's subsidiary Arizona Public Service became the first electric utility in the world to endorse the 10-point Code of Conduct adopted by the Coalition for Environmentally Responsible Economies (CERES). These CERES principles require public reporting of specific environmental achievements and goals.
Pinnacle West is a Phoenix-based company with consolidated assets of approximately $9.5 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.