Better Health for All

Southern Company faces significant health risks from coal ash, with residents near dumps having a 1 in 50 chance of developing cancer from contaminated drinking water

, and at least 15 coal ash units potentially contacting groundwater . The company also extended the life of three coal plants , impacting health due to prolonged coal usage . However, Southern Company has made substantial efforts to mitigate other environmental health impacts, including reducing nitrogen emissions by 91% and sulfur emissions by 99% since 1996 . It invested over $3.9 billion in green bonds for projects that offset nearly 36.1 million metric tons of CO₂ , and decreased surface water withdrawal by 70% and consumption by 40% from 2007 to 2022 , returning 93% of water to its source . The company's core business does not involve health-related products, patents, nutrition, addiction, or clinical trials, rendering several KPIs not applicable.

Fair Money & Economic Opportunity

Southern Company is an energy provider, not a financial institution offering consumer lending, deposit, or other financial products. Consequently, KPIs related to financial services, such as underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives (loan/insurance book), data accessibility (open banking), fair lending compliance, wealth building outcomes, financial literacy initiatives, debt burden ratio, geographic inclusion (banking deserts), and product simplicity, are not applicable to its core business model. While the company engages in significant community investments and supplier diversity programs, including a $225 million commitment to racial equity and social justice by 2025 (with $201 million allocated by 2023)

and a target of 30% spending with diverse suppliers by 2025 (29.1% in 2023) , these actions do not directly align with the specific financial product definitions of the KPIs in this rubric. For the 'profit_reinvestment' KPI, specific data on the percentage of annual pre-tax profit reinvested in community finance was not provided, only absolute dollar amounts, preventing a score.

Fair Pay & Worker Respect

Approximately one-third of Southern Company's employees are union members.

The company states it emphasizes competitive salaries, comprehensive benefits, and union collaboration, and has human rights policies. However, a subsidiary, Atlanta Gas Light, is currently under investigation by the National Labor Relations Board for alleged unfair labor practices, including changes in employment terms, retaliation, and coercion.

Fair Trade & Ethical Sourcing

Southern Company has detailed efforts to comply with conflict mineral disclosure rules for its subsidiary, PowerSecure, Inc., which manufactures products potentially containing conflict minerals. The company conducted a reasonable country of origin inquiry and due diligence but was unable to conclusively determine the origin of all necessary conflict minerals used in its products during the reporting period.

Southern Company Gas has invested $3 billion in minority, women, and veteran-owned businesses. The company requires suppliers to adhere to compliance, equal employment, and environmental standards.

Honest & Fair Business

In 2024, 92% of Southern Company's board members were independent directors.

The company maintains a zero-tolerance policy for corruption. , requiring compliance with anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act from its suppliers. Southern Company also has a Concerns Program with a confidential hotline, online, email, and mail channels for reporting ethical issues, and explicitly prohibits retaliation against individuals who file concerns, complying with whistleblower laws from the Securities and Exchange Commission and Commodities Futures Trading Commission.

Kind to Animals

Southern Company paid over $60 million to groups involved in climate disinformation campaigns between 1993 and 2004.

It was a leading member of the Global Climate Coalition from 1989 to 2000, which lobbied against regulations on greenhouse gas emissions. Between 2014 and 2020, the company contributed over $550,000 to the Republican Attorneys General Association to oppose EPA limits on CO2 emissions, actions that indirectly impact animal welfare by hindering climate change mitigation and habitat protection. Conversely, Southern Company has a 20-year partnership with the National Fish and Wildlife Foundation, supporting over 400 conservation projects and restoring more than 3.7 million acres of wildlife habitat , including over 1.9 million acres of longleaf pine. Southern Power set aside 2,409 acres for endangered species habitat, supporting species like the gopher tortoise , and was recognized for wildlife stewardship, including retrofitting fences for pronghorns and implementing buffers around swift fox dens. The Renew Our Rivers program has removed 8,351 tons of trash from waterways since 2000. Alabama Power enhanced marine habitats , and Mississippi Power supports oyster restoration. The company also manages over 200,000 acres of lakes and 5,000 miles of shoreline.

No War, No Weapons

Southern Company's core business does not involve arms manufacturing or sales.

However, its subsidiary, Georgia Power, signed a $72 million Utility Energy Service Contract with the U.S. Army Garrison Fort Eisenhower, and Southern Company signed an MOU to provide carbon-free electricity to federal facilities, including military installations. These are considered minor defense contracts, representing less than 5% of revenue. The company has no indication of investing in dual-use technologies with military applications, nor evidence of sales to embargoed or sanctioned regimes. Its Supplier Code of Conduct, implemented in 2023, includes human rights, prohibiting forced/child labor and human trafficking, and requires anti-corruption compliance, exceeding humanitarian procurement standards. For conflict minerals, the company conducts an annual Reasonable Country of Origin Inquiry using the OECD Due Diligence Guidance. As of April 16, 2025, 232 of 368 known smelters or refineries (63.04%) received a "conformant" designation. Certain suppliers reported the presence of sanctioned entities, including African Gold Refinery (Uganda) and JSC Uralelectromed (Russia), indicating formal annual partner reviews identify top-risk ties. The company assessed approximately 160 suppliers, representing over 50% of its supply managed spend, for human rights policies in 2024, indicating annual human-rights due diligence in high-risk regions. With 36.96% of known smelters not conformant, the company has significant procurement from conflict-affected regions, despite enhanced due diligence. The company's human rights commitment and Supplier Code of Conduct align with UN Guiding Principles, with an ethics program for adherence. Annual war-risk audits are conducted with detailed public reports on conflict minerals.

Planet-Friendly Business

Southern Company's total Scope 1, 2, and 3 greenhouse gas emissions were approximately 119.9 million tCO₂e in 2021-2022

, with Scope 1 emissions alone at 84.8 million tCO₂e in 2022. The company considers its GHG emission reduction goals (50% reduction from 2007 levels by 2030 , net zero by 2050 ) as science-based and aligned with 1.5°C pathways, but has not committed to seek validation by the Science Based Targets initiative. In 2022, 15% of the company's energy mix was sourced from renewables. Southern Company has faced multiple environmental compliance violations, with 6 records in both 2018 and 2019 , and 2 in 2023 and 2024 , incurring over $207 million in environment-related penalties since 2000. The company aligns its disclosures with the TCFD framework and includes climate scenario analysis , considering different climate-related scenarios, including a 2°C or lower scenario , to inform resource planning decisions. For just transition, the company has retained all employees from retired units who desired to stay , offers on-the-job training and tuition reimbursement , and invested $620,000 in workforce development in Virginia.

Respect for Cultures & Communities

Southern Company has established over 600 formal partnerships with nonprofit organizations, which received financial gifts in the last year.

The company also engaged 94 new diverse suppliers. In terms of internal development, 81% of employees participated in Diversity, Equity, and Inclusion (DEI) training in 2022.

Safe & Smart Tech

Southern Company demonstrates a strong commitment to cybersecurity and compliance. It holds a U.S. Department of Homeland Security (DHS) SAFETY Act Certification for its internal cybersecurity risk management program, notably the first such certification granted by DHS.

The company maintains a robust Insider Threat Protection Program and Fusion Center, with no documented incidents of unauthorized data use. Its vulnerability management is exemplary, employing a risk-based, defense-in-depth approach, regularly tested through auditing and penetration testing. Southern Company also initiated a Software Bill of Materials (SBOM) project for a critical substation, identifying exploitable vulnerabilities and planning to operationalize the program. Security testing coverage is comprehensive, including regular auditing, penetration testing, and independent vulnerability testers for critical systems. The company conducts regular training exercises to test the effectiveness of its plans and has normal security awareness training. It explicitly complies with government regulations and industry standards, including the Critical Infrastructure Protection (NERC CIP) cybersecurity reliability standards.

Zero Waste & Sustainable Products

Southern Company faces significant challenges in hazardous waste management and has a poor record of waste disposal compliance. Georgia Power is under scrutiny for potentially violating federal coal ash rules by seeking to leave 48 million tons of coal ash buried in unlined ponds, despite evidence of contaminants like boron, calcium, sulfate, and hexavalent chromium leaking into groundwater

. As recently as October 2024, Alabama Power reported arsenic levels forty times the legal standard in groundwater near its coal ash ponds . The EPA has rejected the premise that groundwater can legally remain in contact with dry ash . The company and its subsidiaries have incurred numerous waste disposal and environmental violations, including at least five environmental, water, or air pollution violations in the past three years (2022-2024) , with total environment-related penalties exceeding $207 million since 2000 . In 2024, the company diverted 29.42% of its non-hazardous solid waste from disposal . Southern Company has implemented waste reduction initiatives, notably achieving a 93-94% beneficial use rate for Coal Combustion Residual (CCR) products from 2022-2024 , and Southern Company Gas reduced active leaks by over 75% since 2018 . Other initiatives include Mississippi Power's oyster restoration project and employees recycling over 1,500 pounds of hard-to-recycle materials in Atlanta .