What does sustainability mean to Central Hudson?

Delivering sustainable, reliable and affordable services to our customers while reducing our carbon footprint, empowering the communities we serve and advancing a workforce for the future while maintaining a strong and transparent corporate governance structure. 

Corporate Sustainability Reporting

Central Hudson is voluntarily providing sustainability performance information to customers, investors, and other stakeholders. As part of a family of utilities owned by Fortis Inc., with current operations in Canada, the United States and the Caribbean, Central Hudson also contributes to Fortis’ transparent, relevant and timely sustainability reporting to stakeholders. 

Reporting Initiatives 

Central Hudson worked with Edison Electric Institute (EEI), the American Gas Association (AGA), investors and other member utilities to develop a voluntary reporting framework for investors and stakeholders. Quantitative metrics provided in the EEI and AGA templates help provide insight into the Company’s focus on environmental, social and governance activities. The quantitative templates are available here: Related to electricity  |  Related to natural gas 

New York State (NYS) has set forth an ambitious climate agenda that calls for a sustainable transition to a clean energy economy. The climate goals are among the most ambitious in the nation and require a reduction in economy-wide greenhouse gas (GHG) emissions of 40% by 2030 and no less than 85% by 2050 from 1990 levels. In 2022, Fortis Inc. adopted a corporate-wide 2050 net-zero direct emissions goal, with interim targets to reduce direct greenhouse gas emissions 50% by 2030 and 75% by 2035. Central Hudson is taking a leading role in reducing emissions in its mid-Hudson Valley service territory through investments in programs like beneficial electrification (e.g., investments in electric vehicles and infrastructure and heat pump installations), grid modernization and reinforced infrastructure in support of renewables, energy efficiency and battery energy storage system interconnections. We continue to seek innovative solutions to modernize our operations and are focused on helping New York meet its economy-wide carbon goals while building towards a more equitable and sustainable future.

Central Hudson is committed to responsibly supporting CLCPA policies and expect to face challenges such as maintaining energy affordability and reliability while modernizing our infrastructure.  Central Hudson has developed four principles as a guide to an orderly transition to maintain energy affordability, support economic growth, and retain a dependable and reliable energy system. These principles are:

1. The electric power grid must meet Customer’s energy needs at all times;
2. Customer’s livelihoods must be enhanced, not harmed by this transition;
3. We must reduce emissions at the lowest-possible cost; and
4. All emission reduction solutions should be considered.

Decarbonization efforts require partnerships and collaborations of all industry sectors to ensure all communities are included in the transition. Central Hudson is making investments in infrastructure, technologies, and programs that cost-effectively reduce carbon emissions by: 

• Upgrading electric transmission and distribution lines, including support for statewide transmission upgrades to deliver renewable energy sources to areas of high electric demand including the Hudson Valley and metropolitan area, and investments in the regional electric distribution system to facilitate greater levels of locally sited renewable generation; 
• Pursuing the lowest cost approach to emission reduction by examining current incentives to determine which offer the highest value in lowering emissions; 
• Integrating natural gas benefits, utilized for fast-start electric generation, to complement intermittent renewable resources and as a lower-carbon alternative to petroleum-derived fuels used in heating and manufacturing to reduce overall carbon emissions;
• Expanding energy efficiency programs, the most cost-effective method to reduce emissions; and 
• Advancing environmentally beneficial electrification, for example, promoting electric vehicles and heat pumps to lower emissions from the transportation and building heating sectors.

Equitable Transition

The concept of “Equitable Transition” refers to the inclusion of communities, workers and social groups during the Company’s efforts to decarbonize and meet climate change goals. As Central Hudson continues to innovate, deploy new technologies and launch new programs, our efforts aim to support the development and design of strong and resilient communities while ensuring racial justice and social equity. 

Energy Affordability and Assistance Programs

The past couple of years have presented numerous challenges such as customer experience, an increase in the cost of living, including basic necessities such as housing, food and utilities, and utility companies facing inflation issues resulting in an increase in energy resources and utility bills for customers. Central Hudson offers several Energy and Money Savings Programs for customers seeking ways to reduce their utility bills and Affordable Energy Programs for customers experiencing financial difficulties or need special assistance.

Increase of Scope 1 GHG emissions between 2022 and 2023 was due to an unexpected failure of T&D equipment. The equipment is scheduled to be replaced and emissions are expected to continue its downward trend.

As a utility, we are required to abide by various federal, state and local regulations. We strive for continuous outstanding environmental performance and have a goal of zero violations and fines. The evolving regulatory environment creates unique challenges that requires us to be adaptable and continuing to seek innovative solutions. Central Hudson has worked hard to earn its reputation as a champion of renewable energy and a dedicated steward of the environment. Our employees, customers and stakeholders work, play and live in the beautiful Hudson Valley region. It is more important than ever that we integrate sustainable strategies and seek innovative solutions to protect our natural landscapes and biodiversity habitats. 

Central Hudson continually seeks ways to reduce its operational greenhouse gas (GHG) emissions and has developed a direct emissions (Scope 1) reduction goal. While the initial focus is on direct emissions reductions, indirect emission sources are being analyzed to identify actions and goals in the future. The path to meeting NYS’s progressive climate goals requires the Company to seek innovative solutions through leveraging the insights and expertise of industry peers, industry analysts and knowledgeable employees. An example of an emissions reduction effort is the investment in Sulfur Hexafluoride equipment alternatives.

The pace and scope of our actions are influenced by multiple factors, including customer needs, regulatory and policy decisions, technological advancements, and stakeholder input. Central Hudson supports and advances the State’s climate and environmental justice goals and is committed to working with our customers, regulators, investors, employees and other stakeholders to ensure a sustainable and equitable energy transition. 

Central Hudson's website provides more information about Environmental Responsibility. 

Social Impacts

Central Hudson’s responsibilities go beyond providing, safe, affordable and reliable electric and gas services to our customers; we provide opportunities and connections for our customers and the communities we serve. We continue to work with the customers to identify ways to reduce electricity usage, advancing environmental and climate efforts and identifying local economic development opportunities. We recognize that our responsibilities go beyond the role of a traditional utility company, and we are in a position to connect our customer and the communities together to advance these social impact goals.

Investing in Our Employees

• Workforce Development
  Central Hudson is dedicated to workforce development, focusing on enhancing technical skills and meeting evolving employee expectations. We prioritize safety and training in collaboration with IBEW Local 320, which is crucial for navigating industry shifts and customer demands. We further bolster this with a successful internship program, offering many full-time positions post-graduation. Our recruitment and community outreach initiatives demonstrate our commitment to diverse hiring practices. This approach aims to cultivate an inclusive culture that not only embraces diversity but also enhances organizational success.
• Workplace Diversity, Equity and Inclusion
  Central Hudson is committed to fostering a diverse, equitable, and inclusive workplace and community. We are dedicated to creating an environment where all individuals are valued and empowered to contribute their unique perspectives. Through accessible education and training, we ensure fair opportunities for career growth and development. We actively participate in working groups with the Joint Utilities (JU) to identify and develop best practices in diversity and inclusion. A focus on employee engagement drives positive organizational outcomes, and enhances collaboration and innovation. Together, we build a culture of respect and inclusivity that strengthens our business and enriches our community partnerships.

In the Community

In the Hudson Valley, Central Hudson is deeply integrated into the communities we serve and live in. The economic vitality of the communities we serve is an important aspect in how we do business which is why we are continually seeking ways to create long-term sustainable value for our customers, communities and organization.  Our commitments to local organizations, like United Way, demonstrate our pride in taking an active role in making the world a better place for the people we serve. 

Central Hudson’s employees take pride in serving the communities where we live and work. The Company is proud to support local non-profit groups and provide opportunities for creating community partnerships through several Community Outreach programs.

• Community Investment and Economic Development
  1. Charitable giving (includes employee gift matching program, scholarship/corporate contributions, and Central Hudson’s United Way Campaign match) in 2023: $307,678
  2. Economic Development Grants (small businesses) paid in 2023: $200,000

Safety and Health Culture​

Part of Central Hudson's core responsibilities is keeping our employees and customers safe. The Company’s commitment to safety is woven into its culture. As part of that culture, Central Hudson is dedicated to facilitating both (a) an increased focus and awareness of safety, health and wellness through the Company and (b) the safe and responsible use of electricity and natural gas by our customers. The Company seeks to identify and implement best industry practices, procedures and standards related to all aspects of safety. The safety performance of our employees and contractor workforce is continually monitored and evaluated.

Central Hudson’s website provides several Safety resources for customers to encourage the safe and responsible use of electricity and natural gas as well as general safety tips and guidelines.  

Central Hudson is committed to maintaining an effective corporate governance structure that operates with integrity, accountability and transparency. Central Hudson’s executive team plans and executes strategies designed to achieve our priorities which, includes sustainability related initiatives and issues. Throughout the year, our management team reports regularly to the Board and its committees on the status of our business plans, important projects and initiatives and on existing or potential risks the Company may be facing.

The majority of our Board is made up of independent directors from our local communities. Their relevant skills and professional experience make them highly qualified to oversee the Company's planning and response to ESG issues that could impact Central Hudson's operations and strategy, such as climate change, human capital management, diversity, equity and inclusion and cyber and physical security.

Public Policy and Industry Groups

New York State maintains one of the most progressive legislative programs and policies in the country. We work with stakeholders including federal, state and local regulators, customers, financial institutions and others to ensure their interests and concerns are being addressed. Additionally, Central Hudson participates on several utility working groups like the Edison Electric Institute (EEI), Electric Power Research Institute (EPRI) and American Gas Association (AGA) to ensure the best industry methods are integrated into Central Hudson’s operations.