Better Health for All

Pinnacle West's core business, electricity generation, has a mixed health impact. As of 2023, 49% of its energy supply comes from non-clean sources (coal, gas, oil), which contribute to air pollution and negative health outcomes.

This means approximately 49% of its revenue is from activities with established negative health impacts. However, the company is actively transitioning to cleaner energy, with 51% of its energy supply from clean resources in 2023 and a goal for 100% clean, carbon-free electricity by 2050. The company has achieved a 52% reduction in carbon emissions by 2022 from 2005 levels and aims for an 80% reduction by 2050. These substantial remediation efforts, along with a 37% reduction in non-renewable water use compared to a 2014 baseline and recycling approximately 70% of non-hazardous waste, contribute to reducing environmental pollution and improving public health outcomes. The company also supports community health through initiatives like contributing $250,000 to Title I schools and organizing food drives collecting over 2,110 pounds of food in 2023.

Fair Money & Economic Opportunity

Pinnacle West Capital Corp. (PNW) operates primarily as an electric utility, focusing on electricity generation, transmission, and distribution.

The 'Fair Money & Economic Opportunity' value assesses activities related to lending, insuring, moving, or storing money, and how financial institutions democratize access to fair financial services. As PNW is not a financial institution, its core business does not involve offering consumer credit products, deposit services, or other direct financial services. While its subsidiary, Arizona Public Service (APS), provided over $69 million in funding and discounts to limited-income customers for utility bills and expanded payment options, these initiatives are related to energy affordability and access, not direct financial services or financial products like loans, savings accounts, or financial literacy programs. Therefore, the company's operations do not directly align with the specific financial product and service metrics outlined in the rubric for this value.

Fair Pay & Worker Respect

Pinnacle West successfully concluded labor negotiations with the International Brotherhood of Electrical Workers (IBEW) in 2023, resulting in a newly ratified agreement.

This underscores the company's dedication to fostering collaborative relationships with its unionized workforce. As of December 31, 2019, approximately 1,329 employees were represented by the IBEW. and the company has consistently engaged in collective bargaining agreements to ensure wage increases and other benefits for these members.

Fair Trade & Ethical Sourcing

Pinnacle West Capital Corp. (PNW) has a Supplier Code of Ethical Conduct and Human Rights Policy.

In 2023, its Supplier Diversity and Development Program facilitated approximately $453 million in spending with diverse suppliers. The company engages in regular supplier assessments and distributes an annual sustainability survey to its suppliers. PNW is also a co-founder of the Sustainable Supply Chain Alliance (SSCA) and hosted a Key Supplier Forum and Awards event in 2023 to recognize supplier performance.

Honest & Fair Business

Pinnacle West Capital Corporation maintains a comprehensive Code of Ethical Conduct, applicable to all employees and directors, which emphasizes integrity and compliance with laws and regulations.

This code is reinforced through annual online training, mandatory for all active employees and directors, covering ethical standards and reporting procedures. A Code of Ethics for Financial Executives promotes honest conduct related to financial records and public disclosures. The company also has a Political Participation Policy with Board oversight and annual reporting of contributions.

Kind to Animals

Pinnacle West Capital Corporation, as an electric utility, does not engage in activities such as product manufacturing, animal testing, or animal agriculture, rendering most animal welfare KPIs not applicable. While the company implements an Avian and Wildlife Protection Program to prevent wildlife electrocution

and partners with wildlife organizations for nest relocation and species protection , and uses Integrated Vegetation Management to enhance pollinator habitats , the provided articles do not offer measurable biodiversity impact metrics (e.g., population increases, biodiversity indices, or percentage of revenue invested) or explicit evidence of advocacy for animal welfare policy improvement, which are required for scoring relevant KPIs.

No War, No Weapons

Pinnacle West's primary business is electricity generation and distribution, and it does not manufacture weapons.

However, it has provided energy solutions to military installations, such as a microgrid at Marine Corps Air Station Yuma, and a subsidiary secured a $750 million contract for military housing in 2007. The company does not actively participate in peacebuilding or disarmament initiatives. In terms of lobbying, Pinnacle West spent $480,000 in Q1 2025 on issues including cybersecurity intersecting with national defense considerations, but did not report any lobbying activities related to arms control legislation in Q4 2024.

Planet-Friendly Business

Pinnacle West Capital Corporation sources 30% of its total energy generation from renewable sources.

The company has a commitment to achieving 100% clean, carbon-free electricity by 2050 but has faced criticism for not establishing specific decarbonization goals for 2030. There is no evidence of SBTi-validated targets.

Respect for Cultures & Communities

Pinnacle West Capital Corp's subsidiary, APS, actively protects cultural sites through its IVM and Avian and Wildlife Protection Programs.

As part of a Coal Community Transition Plan, APS collaborated with the Navajo Nation, providing $10 million over three years to the Navajo Nation, $1 million to the Hopi Tribe, and $500,000 to Navajo County communities. Additionally, up to $1.25 million has been allocated for electrifying homes and businesses on reservations, and $250,000 provided to teachers through the Supply My Class program.

Safe & Smart Tech

The company has established a cross-functional governance structure with leadership and experts from various teams, including ethics, to address artificial intelligence technology risks and opportunities.

It demonstrates good regulatory compliance, including a California Privacy Notice, compliance with legal processes, and acknowledgment of NERC, NRC, and FERC rules. Users have good control over their data, with options to opt-out of marketing emails, correct contact information, manage social media data sharing, and access external opt-out resources for interest-based advertising. The company implements an information security program that includes data encryption as part of a multilayered defense strategy and uses HTTPS for its website. All employees and contractors undergo annual cybersecurity training and annual training on ethical principles and compliance. The company engages third parties for periodic assessments and audits of its systems, including pre-production evaluation of technologies.

Zero Waste & Sustainable Products

Pinnacle West Capital Corporation (PNW) recycled approximately 70% of its non-hazardous waste tracked through its Investment Recovery team in 2023.

The company has implemented several waste reduction initiatives, including specialized recycling streams for scrap metal and electronics, single-stream recycling of common materials, support for smaller Arizona communities with recycling bins and collection, a wood spools recycling program, and selling 28% of coal ash for beneficial use. PNW aims to reduce hazardous waste to less than 14.5 tons per year, a 94% reduction from its 2001 baseline, and in 2023, routine hazardous waste generation was approximately 5.24 tons, which is 71% below this target. The company has a zero waste initiative targeting 90% waste diversion by 2030.