Sustainability Reporting in the Electric Utility Sector - Connecting leading reporting indicators with risks – Using Idaho Power Company as an example

Abstract: The author of thesis investigated the potential benefits of using of leading indicators in sustainability reporting as a means to reduce risk in the electric utility sector. Leading indicators describe the processes that help to achieve desired results (lagging indicators). The main argument for considering leading indicators built around the concept that sustainability is, to a large extent, about continuous improvement and that leading indicators drive sustainability performance of organizations. Electric utilities have significant impacts on the environment and our society and therefore, have a responsibility to reduce their impacts and guide the industry to more sustainable practices. Idaho Power, the largest electric utility company in the State of Idaho (USA), served as an example to show what set of leading indicators is most suitable to address risks within their sustainability reporting efforts. Examples were provided on what information could be disclosed under selected leading indicators that could contribute to mitigate risks. This thesis contributes to a better understanding of the importance and applicability of leading indicators and their potential role in addressing and mitigating risks of organizations in connection to sustainability reporting and sustainability performance.