The foundation of AES' environmental management approach is embodied in the following four principles:

1. Meet or exceed the requirements of environmental rules and regulations imposed by local, regional, and national governments and by participating financial institutions.
2. Meet or exceed AES' Environmental Standards.
3. Make decisions on additional expenditures based on a number of factors including an evaluation of the local, regional and global environment where the term "environment" is broadly defined as the external surroundings or conditions within which people live, including ecological, economic, social and all other factors that determine quality of life and standard of living.
4. Seek continual improvement of the environmental performance at every AES business.

AES has established an Environmental Management System (EMS), a series of environmental standards based on industry best practices, which set environmental performance requirements for each AES business worldwide.

View AES’ environmental policy.

The EMS framework requires continuous environmental performance monitoring, environmental risk assessments and periodic integrated environmental, health and safety audits. The EMS framework helps AES ensure that businesses achieve environmental compliance, address significant environmental impacts and strive for continuous performance improvement. Key environmental metrics including air pollutant emissions, environmental non-conformance events and EMS performance parameters are reported to senior management on a set schedule.

Certification and Standards

Many AES businesses have elected to formally certify their Environmental Management System (EMS) to the ISO 14001 international standard. Approximately 50 percent of AES businesses with an EMS framework have formally certified, or are certifying, their programs. More than 75 percent of the AES workforce is located in businesses that operate, or may soon operate, under a certified ISO 14001 EMS.

Compliance with AES' EMS framework is verified internally under the AES integrated Environmental Health and Safety (EHS) audit program. Each audit finding is accompanied by a corrective action plan and an agreed-upon completion date.

For more information about AES' Environmental Risk Management and Metrics, please see Governance and Risk Management - Environmental Risk Management.

Environmental Solutions Highlights

AES businesses take every opportunity to identify and continuously improve beneficial uses for coal combustion byproducts (CCB), to recycle used oil and to engage in water conservation activities wherever practical.

• AES beneficially reuses approximately 28 percent of the 4.3 million short tons of CCB it generates every year.
• We recycle approximately 48 percent of the 1.2 million gallons of used oil generated every year.
• AES fossil fuel facilities report sulfur dioxide (SO2), nitrogen oxides (NOx) and carbon dioxide (CO2) emissions on a monthly basis.

Annual Emission Rates

Emissions Intensity

AES' CO2 emissions from its thermal power generation plants have decreased during each of the last five years. This is the result of using a mix of fuels with lower carbon emissions potential, and improving average operating efficiency across our full fleet of thermal plants.

AES' overall drop in CO2 emissions is the result of economic and other factors, including an increased reliance on renewable energy in our generation mix, which increased to 16.6 percent in 2011, up from 13.6 percent in 2007.

Technology Innovation

We utilize new technologies in the areas of fuel and waste, and we have made investments in complementary innovative technologies to control emissions and minimize water consumption.

Argentina

AES Paraná, an 845 MW combined cycle plant, was the first large thermoelectric power plant in the world to use biodiesel as a fuel source. This allows the plant to reduce emissions, convert soy beans and other vegetables into power and conserve the use of fossil fuels.

Brazil

• AES Eletropaulo is leading the implementation of solar photovoltaic panels in a soccer stadium and a major park in São Paulo.
• AES Eletropaulo and AES Sul implemented a series of efficiency initiatives, which resulted in the savings of 2,000 tons of CO2.
• AES Tiete is developing a project to research alternative technologies for the implementation of geothermal electricity generation from low- temperature sources.

Bulgaria

AES Bulgaria constructed a state-of-the-art waste disposal facility to serve the newly constructed 670 MW Maritza coal-fired power plant.

Cameroon

Engineers at AES Sonel refurbished the Edea hydroelectric facility to increase production capacity while maintaining existing water flows. The project increased generating capacity by applying a zero-emission solution that traditionally would have relied on adding fuel oil capacity.

Chile

In Chile, the AES Nueva Renca plant installed a system to reduce nitrogen oxide emissions (NOx) from its gas turbine and supplementary burners by 60 percent.

Dominican Republic

• AES Andres achieved 34 percent lower water consumption levels compared to 2009 levels by substituting de-mineralized water in the plant’s natural gas combustion system.
• AES Itabo reduced water consumption by approximately 20 percent by reusing treated wastewater for irrigation and cleaning rather than releasing it into the ocean.
• AES Dominicana converts 100 percent of its coal combustion waste into a cement production ingredient, recycling more than 72,000 tons of ash annually.

El Salvador

At AES Nejapa, our landfill gas facility collects methane gas generated in a sanitary landfill that receives approximately 2,000 tons of waste per day, and it converts that gas into electricity with six 1-MW engines.

Jordan

The AES Amman East complex decreased water consumption by six percent through the reuse of evaporated pond water.

Kazakhstan

Ust-Kamenogorsk CHP installed high-efficiency nozzles at two of its coal-fired boilers, yielding a 20 percent reduction in the emission of nitrogen oxides. In addition, new flue gas ash-removal equipment at three other boilers reducing particulate matter emissions by more than two-thirds while also doubling sulfur emission reductions. Ust-Kamenogorsk CHP is expanding these projects to the facility’s other boilers and constructing a new cooling tower to decrease water consumption from the Ulba River by up to 42 percent.

United States

AES Southland installed “Smart Sponge” technology to capture used oil and reduce oil waste by 200,000 gallons per year.

For more information about external recognition from stakeholders for ongoing performance improvements, please see Recognizing and celebrating success in environmental and energy performance support.

AES is continually enhancing and strengthening our EMS process. For example, we are currently extending the scope of the EMS framework to major construction projects. We are also in the process of updating our corporate environmental awareness training courses. In addition, we are developing improved environmental impact assessment tools to help identify potential opportunities for improvement.

Resource Conservation and Protection Highlights

• AES Eletropaulo (Brazil): Leading the installation of solar photovoltaic panels at the New Corinthians Stadium (proposed venue for 2014 FIFA World Cup soccer) and in Rio Lobos Park in the City of São Paulo.
• AES Itabo (Dominican Republic): Decreased water consumption by 20 percent through the reuse of wastewater for irrigation, road cleaning and bottom ash.
• AES Amman East (Jordan): Decreased water consumption by six percent through the reuse of evaporation pond water for blowdown quenching.
• Ust-Kamenogorsk CHP (Kazakhstan): Constructing a new cooling tower to decrease water consumption from the Ulba River by up to 47.9 percent.
• Southland Alamitos (USA): Supports local efforts to clean and restore the Los Cerritos Wetlands in Alamitos Bay using natural tides, currents and a boom installed upstream of plant's intake.

Biodiversity and Archeological Resources Highlights

• AES Electropaulo (Brazil): Works with local institutions to establish indicators of environmental impact on primate populations that inhabit places with potential interference from electrical systems. Findings will be applied to reduce potential impacts and improve both new and existing projects.
• AES Tietê (Brazil): Protects more than 100 archeological sites, and has restored the Pacu fish to native habitats by releasing more than 2.5 million fish per year, allowing the Pacu to be removed from the endangered species list.
• AES Changuinola (Panama): Planting 880,250 trees in the Changuinola river basin to reforest approximately 800 hectares. Trees are supplied by local nurseries created to support this effort.
• EHS Leaders (El Salvador): Built nests for the local sea turtles at beach in El Salvador.
• AES Arlington (USA): Removed invasive species, restored habitat and assembled nesting boxes for bats, ducks and songbirds at a local park.
• IPL (USA): Partners with the Indiana Department of Natural Resources to band and track peregrine falcons in nest box on the roof at AES' Harding Street Station.

Waste Minimization Highlights

• AES Itabo (Dominican Republic): During 2011, our Itabo coal-fired power plant produced 72,817 tons of ash of which 100 percent was recycled for beneficial reuse by the local cement industry.
• AES (Cameroon): Since July 2011, recycled 82,217 pounds of paper, saving 522 trees.
• AES El Salvador: Since 2007, recycled more than 95,063 pounds of paper annually, and donated proceeds to “adopt” and protect 1,069 hectares in local national parks.
• AES Panamá: Works with local schools to recycle solid waste.