Hubbell Incorporated (HUBB): PESTLE Analysis [Nov-2025 Updated]

You want to know where Hubbell Incorporated (HUBB) is going, and the answer is straight into a massive, but complicated, infrastructure boom. The core takeaway is that Washington's spending and the utility grid modernization cycle are creating a huge demand pull, but rising interest rates and supply chain snags are the real speed bumps. Utility capital expenditure (CapEx) for grid work is defintely forecast to jump by $15 billion in 2025, which is a powerful tailwind for Hubbell's utility solutions, but you need to understand the political and technological currents that could shift that opportunity overnight.

Hubbell Incorporated (HUBB) - PESTLE Analysis: Political factors

Federal infrastructure spending (e.g., IIJA) drives demand for utility products.

The single most powerful political tailwind for Hubbell Incorporated in 2025 is the federal commitment to infrastructure modernization, largely channeled through the Infrastructure Investment and Jobs Act (IIJA). This isn't abstract spending; it's a direct driver of utility capital expenditure (CapEx) for Hubbell's core customers.

The projected 2025 CapEx for US investor-owned energy utilities is forecast to exceed $212 billion, representing a significant jump of about 22% to 24% compared to the $173 billion spent in 2024. This massive investment wave, which is partially IIJA-fueled, translates directly into demand for Hubbell's Grid Infrastructure products-think transmission, distribution, and substation equipment. The company's Utility Solutions segment saw its Grid Infrastructure net sales grow by 9% in the third quarter of 2025, with organic growth hitting 8%, a clear sign the federal money is flowing into projects.

Here's the quick math: more federal support for grid hardening and electrification means utilities have the capital and regulatory incentive to buy more of what Hubbell sells. Strong orders were up 'high teens year-over-year' in the first half of 2025, supporting confidence in continued strong organic growth for the second half. This is a multi-year investment cycle, not a one-off spike.

US-China trade tensions impact supply chain costs and raw material sourcing.

Trade policy remains a near-term risk, specifically the ongoing US-China trade tensions, which continue to inject volatility into raw material costs and supply chain planning. While Hubbell has significantly reduced its direct exposure to China over the last few years through strategic divestitures, the macro impact of tariffs is still felt.

In the first quarter of 2025, management noted that operating profit margins were partially offset by 'raw material cost increases and tariffs,' a challenge that persisted into the third quarter. To be fair, Hubbell has successfully neutralized much of this cost pressure through price realization and productivity improvements across both the Electrical Solutions and Utility Solutions segments. They are actively pursuing a 'China+1 strategy' (diversifying sourcing away from China) and relying on price adjustments to 'make us whole' against tariff and commodity cost increases.

The political environment in 2025, marked by a fresh wave of US-China tensions and tariff hikes on key sectors like steel and semiconductors, accelerates the need for this supply chain realignment.

Stability of energy regulatory commissions affects utility capital expenditure (CapEx) planning.

The stability and supportiveness of state-level Public Utility Commissions (PUCs) are critical, even more so than the federal funding itself. Federal money is a catalyst, but state regulators approve the rate cases that allow utilities to recover CapEx costs, which is what ultimately funds their purchases from companies like Hubbell.

The utility CapEx 'super-cycle' is fundamentally contingent on 'supportive regulatory commissions' that minimize regulatory lag and approve higher rate bases. If a PUC delays a rate case or denies a utility the ability to earn its authorized return on equity (ROE), the utility will slow down its infrastructure investment. This regulatory risk is a constant factor, but the current political and economic climate-driven by grid resilience needs, electrification, and massive data center load growth-is generally compelling commissions to be more constructive. For example, some electric utilities are now targeting annual Earnings Per Share (EPS) growth in the 6-8% or even 7-9% range, levels far exceeding historical norms, which is only possible with supportive regulatory frameworks.

Tax policy changes, like corporate tax rate adjustments, directly affect net income.

Tax policy changes in 2025 have provided a clear, measurable benefit to Hubbell's bottom line. The most significant development was the passage of the 'One Big Beautiful Bill Act (OBBBA)' in July 2025. This legislation, which is highly favorable to US manufacturing, permanently restored key business tax provisions:

• Permanent restoration of 100% bonus depreciation for short-lived investments.
• Immediate expensing of domestic Research and Development (R&D) costs.

These changes directly reduce the company's tax liability, encouraging capital investment in its US-centric manufacturing footprint. Furthermore, Hubbell's full-year 2025 adjusted tax rate is now anticipated to be in the range of 20.5% to 21.0%, a reduction from the prior guidance of 22.0% to 22.5%. This lower rate, partly due to an international restructuring benefit, was a key driver in the company's Q3 2025 double-digit adjusted EPS growth.

The lower tax rate and favorable depreciation rules definitely create a stronger incentive for domestic CapEx.

Hubbell Incorporated (HUBB) - PESTLE Analysis: Economic factors

Utility CapEx spending is forecast to increase by $15 billion in 2025 for grid modernization.

The single most powerful economic tailwind for Hubbell is the massive, non-cyclical capital expenditure (CapEx) cycle underway in the US utility sector. This isn't a guess; it's a funded reality driven by aging infrastructure and the huge demand from data centers and electrification.

For 2025, the aggregated CapEx for US investor-owned energy utilities is projected to reach over $214.70 billion, a jump of about 24% from the $173 billion spent in 2024. This spending is concentrated in grid hardening, transmission expansion, and integrating new generation sources like renewables. The Edison Electric Institute (EEI) echoes this, projecting member companies will invest nearly $208 billion in 2025 to strengthen the grid. This is a multi-year investment super-cycle, with Morningstar DBRS estimating total utility spending will hit $1.4 trillion from 2025 to 2030.

Here's the quick math: Hubbell's Utility Solutions segment, which includes Grid Infrastructure, is directly positioned to capture a significant share of this spending, which is why the company is anticipating total sales growth of 3-4% for the full year 2025.

High interest rates increase borrowing costs for utilities, potentially slowing new projects.

Still, this massive CapEx is not without friction. Persistent high interest rates create a real headwind, especially for large, long-term projects that rely on debt financing. For utilities, 'higher for longer' rates directly increase their cost of capital, which can put pressure on project viability and slow the pipeline.

The elevated cost of capital tightens debt service coverage ratios, which are essential for lenders, and can reduce the net present value (NPV) of new energy projects. For example, several major offshore wind projects have already faced delays in 2025 due to high financing costs. To offset this, utilities are increasingly filing for rate cases with regulators to recover their higher capital costs. In the first quarter of 2025, the median authorized Return on Equity (ROE) in electric utility rate cases rose to 9.75%, up from 9.70% in 2024, reflecting the need to justify these higher costs.

High rates make a $200 billion CapEx plan more expensive for everyone involved.

Residential and commercial construction starts dictate demand for non-utility products.

Hubbell's Electrical Solutions segment, which covers residential, commercial, and industrial markets, faces a more mixed economic picture in 2025. Demand is highly segmented.

While total US construction starts are forecast to contract by about 1.8% in 2025, the underlying segments are moving in different directions. Residential construction, particularly single-family, struggled in early 2025, with Q1 starts falling by 18.4% year-over-year, weighed down by high mortgage rates and consumer hesitancy. Conversely, the commercial and industrial side has bright spots.

The company's Q3 2025 results showed 8% organic growth in its Electrical Solutions segment, driven by strength in two key areas: datacenter and light industrial markets. The relentless build-out of data centers and advanced manufacturing facilities continues to be a massive source of demand for Hubbell's products, offsetting weakness in traditional office or retail construction.

Inflationary pressure on input costs (copper, steel) compresses gross margins.

The cost of raw materials remains a constant battle. Hubbell relies heavily on commodities like copper and steel, and price volatility directly impacts gross margins unless the company can pass on the costs through pricing power.

The outlook for copper in 2025 is bullish due to structural demand from electrification, EVs, and grid modernization. Bank of America analysts project copper prices will exceed $10,000/t by 2025, and prices recently hit $11,200 per tonne in November 2025. Similarly, US steel prices for hot-rolled coil surged in early 2025, reaching around $960 per ton. This volatility demands constant price management.

Hubbell's operational strength, however, is evident in its ability to manage this. In their Q3 2025 results, management stated that 'price and productivity exceeded cost inflation across both segments,' which is a defintely positive sign for maintaining the adjusted operating margin of 23.9%.

A strong US dollar makes international sales less competitive.

As a US-centric manufacturer, a strong US dollar (USD) presents a competitive disadvantage and a foreign exchange translation risk. When the USD strengthens, Hubbell's products become more expensive for international buyers, and the revenue earned in local currencies translates into fewer USD on the income statement.

The impact of 'foreign exchange' was cited as one of the factors contributing to a decrease in net sales in the company's Q1 2025 report. Given the continued global economic uncertainty, the USD's strength against major currencies remains a risk, especially as the Federal Reserve maintains a cautious stance on rate cuts.

To mitigate this, Hubbell needs to continue focusing on its pricing power and operational efficiency to maintain its adjusted diluted EPS guidance of $18.10-$18.30 for the full year 2025, regardless of currency fluctuations.

Hubbell Incorporated (HUBB) - PESTLE Analysis: Social factors

Growing public demand for energy resilience and grid hardening after extreme weather events.

You are seeing a massive public and regulatory push for a more resilient power grid, and it's a direct response to increasingly severe weather. This isn't just about avoiding blackouts; it's a social necessity now. Utility companies, which are Hubbell Incorporated's primary customers, are responding with unprecedented capital expenditure (CapEx) plans. For 2025 alone, investor-owned electric companies in the U.S. are projected to invest nearly $208 billion to strengthen the grid, making it smarter, stronger, and more secure. Here's the quick math: the total investment in U.S. electricity infrastructure is projected to hit $1.4 trillion from 2025 to 2030, doubling the amount invested in the prior decade. That's a huge tailwind for Hubbell's utility solutions, which focus on transmission and distribution equipment, especially those products designed for hardening and automation.

The social demand translates into clear spending priorities. In 2022, resilience and hardening measures already accounted for 34% of transmission investments and 37% of distribution investments by investor-owned utilities. This trend is accelerating, meaning demand for undergrounding components, advanced protective relays, and smart grid devices-all core Hubbell offerings-is defintely going to stay high.

Increased urbanization requires denser, more complex electrical infrastructure solutions.

The U.S. is experiencing a surge in electricity demand after decades of stagnation, and urbanization is a key driver. Think of the explosion of data centers, electric vehicle (EV) charging infrastructure, and building electrification in metropolitan areas. This dense growth requires complex, high-capacity electrical solutions. U.S. electricity demand is expected to grow at a 2.5% compound annual growth rate (CAGR) through 2035, a five-fold increase over the 0.5% CAGR seen in the previous decade.

A significant portion of this growth comes from the sheer density of new loads in urban and suburban hubs. Data centers alone are projected to demand 35 GW of electricity by 2030, growing about 10% per year from 17 GW in 2022. This means Hubbell's products must not only be reliable but also highly compact and capable of managing two-way power flow for distributed energy resources (DERs) like solar and storage, which are often integrated into dense urban grids. The challenge is that 46% of existing distribution infrastructure is already near (less than five years) or beyond its useful life, so utilities are forced to replace and upgrade with more advanced, higher-density equipment.

Labor shortages in skilled trades (electricians, utility workers) challenge installation timelines.

The biggest near-term risk to capitalizing on the grid investment boom is the human capital gap. Hubbell sells the hardware, but skilled electricians and utility workers install it. A persistent labor shortage in these trades is slowing down project completion and driving up installation costs for utilities. This will inevitably impact the pace at which Hubbell's products are deployed.

The numbers are stark:

• The shortage of qualified candidates was cited as the top challenge by 50% of skilled tradespeople in 2024.
• The Bureau of Labor Statistics projects a need for approximately 80,400 new electrician positions nationally each year through 2032.
• The electrical workforce is projected to shrink by 14% by 2030, even as demand could rise by 25%.
• Nearly 30% of union electricians are nearing retirement age, which will exacerbate the knowledge and skills gap.

This reality means Hubbell needs to focus its product innovation on solutions that are faster, easier, and safer to install, effectively reducing the reliance on highly specialized labor and speeding up utility CapEx deployment.

Focus on corporate Environmental, Social, and Governance (ESG) performance influences investor sentiment.

ESG is no longer a niche consideration; it's a central factor in capital allocation, especially for large institutional investors. By 2025, ESG-mandated assets are projected to represent half of all professionally managed investments globally, totaling around $35 trillion. This means Hubbell's ESG profile directly impacts its cost of capital and its valuation multiple.

Hubbell has performed well in this area, which is a significant social opportunity. The company was named one of the 2025 World's Most Ethical Companies by Ethisphere, and its S&P Global ESG Score was 58 as of August 29, 2025, relative to its peers in the Electrical Components & Equipment industry. This strong social and governance performance is a competitive advantage, as 50.1% of investors believe companies with higher ESG scores experience lower capital costs.

The company's alignment with sustainability megatrends-providing solutions for a Reliable, Resilient, and Renewable energy infrastructure-is a core part of its value proposition to socially conscious investors.

Hubbell Incorporated (HUBB) - PESTLE Analysis: Technological factors

The technological landscape for Hubbell Incorporated is defined by the massive, non-negotiable shift toward a modernized, decentralized, and highly digitized electric grid. This isn't just about new products; it's about integrating complex software and hardware to manage power flow in two directions, which changes the entire risk-reward profile for a company like Hubbell.

The key takeaway here is that Hubbell's core business is moving from selling discrete components to selling integrated, secure, and intelligent systems. The company's strategic alignment with grid modernization and data center growth, evidenced by its strong Electrical Solutions segment performance, positions it well, but the R&D and cybersecurity demands are relentless.

Smart grid (Advanced Metering Infrastructure or AMI) adoption drives demand for connected devices.

The global push for smart grid infrastructure is a primary demand driver for Hubbell's Utility Solutions segment, particularly through its Aclara business. The Advanced Metering Infrastructure (AMI) market, which includes smart meters and the underlying communications networks, is projected to be valued between $19.69 billion and $33.38 billion globally in the 2025 fiscal year, with a compound annual growth rate (CAGR) expected to be in the 11.7% to 15.9% range through the end of the decade. This represents a huge, sustained capital expenditure cycle from utilities.

Aclara's solutions are designed to leverage this AMI investment, moving beyond simple meter reading to provide real-time data for distribution automation, fault detection, and load monitoring. This shift means the utility buys a comprehensive data-driven solution, not just a physical component. Honestly, this is where the margin expansion is.

The core technological opportunity for Hubbell is to supply the critical hardware and software that forms the 'Edge' of the grid, as outlined in their strategy:

• Smart Meters and Sensors: Two-way communication devices for real-time data.
• Communication Systems: Networks that connect the meters to the utility's control center.
• Data Management Platforms: Secure software programs that process the massive influx of AMI data.

Cybersecurity threats to critical infrastructure necessitate new product security features.

As the grid gets smarter, it becomes a significantly larger and more attractive target for cyberattacks. The energy sector is currently ranked as the 4th most attacked industry globally in 2025, according to industry analysis. This isn't theoretical risk; it's a clear and present danger that mandates a new layer of technology in every product Hubbell sells to critical infrastructure clients.

Utilities must comply with stringent security frameworks like NERC CIP (North American Electric Reliability Corporation Critical Infrastructure Protection) and NIST (National Institute of Standards and Technology). This regulatory pressure forces them to demand security features built directly into the hardware and software they purchase. Hubbell addresses this with its focus on 'secure software programs' and 'end-to-end smart infrastructure solutions' within its Aclara platform, ensuring that their connected devices don't become the weak link that allows a system breach.

Development of solid-state transformers and advanced power electronics improves efficiency.

Traditional, heavy, oil-filled transformers are being challenged by next-generation power electronics, which offer higher efficiency, smaller size, and bidirectional power flow-essential for integrating solar and battery storage. The global Solid State Transformer (SST) market is a niche but rapidly expanding area, projected to grow at a CAGR of approximately 32.0% from 2025 to 2030, indicating a major technological pivot is underway.

While Hubbell's primary transformer business remains conventional, its core competence in advanced power electronics is clear in its Grid Automation offerings. For instance, the company produces Solid State Motor Operators-devices like the FlexMO and HubMO SS-used for substation and distribution switch applications. These components use solid-state technology to deliver:

• Higher Reliability: Fewer mechanical parts mean less failure.
• Faster Operation: Operating speeds of 4-6 seconds or 8-10 seconds for critical switching.
• Improved Efficiency: Generating up to 20,000 pounds of operating torque with a solid-state design.

This solid-state capability is a clear technological bridge to the future of power electronics, even if they are not yet selling full-scale SSTs.

Automation in manufacturing reduces production costs and improves quality control.

To maintain competitive pricing and high quality, especially in a tight labor market, continuous investment in manufacturing automation is non-negotiable. Hubbell is actively pursuing this, having invested $180 million in capital expenditures in 2024 to drive future growth and enhance productivity across its facilities. This is a direct investment in technology to lower the cost-to-serve.

The result is 'accelerated productivity through lean and procurement initiatives,' which directly impacts the bottom line. This focus on operational technology (OT) ensures that the physical products supporting the smart grid are produced efficiently and consistently. The table below illustrates the dual-focus of Hubbell's technological investment, mapping capital spending to the expected financial and operational outcomes:

Hubbell Incorporated (HUBB) - PESTLE Analysis: Legal factors

Compliance with Evolving Product Safety Standards (e.g., UL, ANSI) is Mandatory for Market Access

For a company like Hubbell, which provides critical electrical and utility infrastructure, regulatory compliance isn't just a cost of doing business; it's the price of admission. You simply cannot sell a connector or a switchgear assembly in the US without meeting the rigorous standards set by bodies like UL Solutions (formerly Underwriters Laboratories) and the American National Standards Institute (ANSI). Hubbell manages this risk by maintaining internal, certified testing laboratories, which helps them bring new products to market faster than relying solely on external agencies.

The real pressure point is the continuous evolution of these standards, driven by new technologies like smart grid components and increased electrification. For example, Hubbell's Connector Manufacturing Company brand is certified to conduct electrical evaluations under standards like UL486A&B and ANSI C119.1/C119.4 for secondary underground compliance. This deep involvement means Hubbell must constantly invest in re-certifications. They were recognized by Ethisphere as one of the 2025 World's Most Ethical Companies®, which signals a strong internal compliance culture, defintely a key differentiator in a regulated industry.

Changes to Intellectual Property (IP) Laws Affect Patent Protection for New Technologies

Hubbell's future growth is tied directly to its innovation in grid modernization and electrification, so its intellectual property (IP) portfolio is a core asset. Changes in US patent law, particularly from the Federal Circuit Court of Appeals, can shift the ground beneath their feet. For instance, the 2024 overruling of the Rosen-Durling test for design patents in favor of a more flexible obviousness standard means design patents-common in their electrical solutions segment-will face a broader, more rigorous review in 2025. This makes securing and defending new design patents more complex and costly.

The bigger opportunity and risk lies in protecting the software and communications technologies that make the grid smarter. With the rise of Artificial Intelligence (AI) in product design and manufacturing, legal debates over whether and how AI-generated inventions qualify for patent protection are intensifying in 2025. Hubbell must ensure its R&D investments, which support its 2025 Adjusted EPS guidance of $18.10 to $18.30, are backed by enforceable patents. It's a constant legal battle to keep up with the pace of innovation.

Strict Environmental Permitting Processes for New Transmission and Distribution Projects

The Utility Solutions segment relies heavily on the build-out of new transmission and distribution (T&D) infrastructure. Historically, the federal permitting process for a major transmission line has averaged around four years, creating a massive bottleneck for Hubbell's utility customers. That's a huge drag on sales velocity.

However, 2025 brings a major legal tailwind: the Department of Energy (DOE) finalized its Coordinated Interagency Transmission Authorizations and Permits (CITAP) Program. This rule aims to cut the federal permitting timeline for qualifying transmission projects in half, down to a standard two-year deadline. This regulatory streamlining is a direct, positive catalyst for Hubbell, accelerating the deployment of their T&D products. Plus, Congress is actively considering the Streamlining Powerlines Essential to Electric Demand (SPEED) and Reliability Act to further expedite approvals, showing a strong governmental focus on grid buildout.

Antitrust Scrutiny on Mergers and Acquisitions (M&A) in the Electrical Sector

Like any market leader, Hubbell uses strategic M&A to manage its portfolio, such as the successful integration of the Systems Control acquisition in 2024 and the divestiture of the Residential Lighting business. In 2025, the M&A landscape is characterized by shifting antitrust enforcement. While a potential change in the US administration might suggest a more restrained federal approach to M&A generally, the scrutiny on 'roll-up' or 'aggregator' strategies remains high, especially at the state level.

Given Hubbell's market capitalization of approximately $21.6 billion as of late 2025, any significant acquisition will draw attention. The electrical equipment sector is considered strategically important, and antitrust regulators will continue to assess deals based on market concentration, particularly in niche areas like utility components. This means Hubbell's legal team must be prepared for more rigorous, potentially longer, and more costly pre-merger reviews (Hart-Scott-Rodino filings) to justify any future consolidation. Energy M&A is still expected to be active, so Hubbell's next move will be closely watched.

Here's the quick math on the regulatory impact on project timelines:

The key takeaway is that the legal environment is a mixed bag: major tailwinds from streamlined T&D permitting, but rising complexity and cost in IP protection and M&A antitrust review. Finance: Keep a close eye on legal spend allocated to patent defense and new acquisition due diligence.

Hubbell Incorporated (HUBB) - PESTLE Analysis: Environmental factors

You're looking at the environmental landscape for Hubbell Incorporated (HUBB) and the takeaway is clear: the market-pull from massive utility capital expenditure and corporate sustainability goals is a much stronger driver than federal regulation right now. This is a massive tailwind for Hubbell's Utility Solutions segment, but it still requires disciplined execution on their internal emissions targets.

Government mandates for energy efficiency push demand for high-efficiency electrical components.

The regulatory environment for efficiency is a mixed bag in 2025, but the financial incentives are still driving demand. On one hand, the U.S. Department of Energy (DOE) officially withdrew or postponed several appliance energy efficiency standards in March 2025, including rules for electric motors and external power supplies. This softens the regulatory 'push' for some electrical components. To be fair, this is a political shift, not a market one.

Still, the market 'pull' for efficiency remains strong, especially in construction and residential upgrades. For instance, the Energy Efficient Home Improvement Credit offers a tax credit up to $3,200 for eligible home improvements through December 31, 2025, which includes electrical components like panelboards and feeders with a capacity of 200 amps or more to support energy property. This tax incentive directly supports demand for the kind of high-capacity, efficient components Hubbell manufactures. Hubbell's product portfolio is aligned with this trend, as their 'Products with Impact' category-which covers resource efficiency-represented approximately 66% of total sales in 2024.

Utility decarbonization goals accelerate the transition to renewable energy integration products.

This is the biggest opportunity for Hubbell, full stop. The need to integrate massive new renewable capacity and harden the grid against severe weather is driving a capital expenditure super-cycle among U.S. utilities. Investor-owned energy utilities are projected to invest over $212 billion in 2025, a significant increase from the $173 billion spent in 2024. Morningstar DBRS projects a total of $1.4 trillion in investment from 2025 to 2030 for grid modernization, which is double the amount invested in the prior decade.

Hubbell's Utility Solutions segment is directly capitalizing on this. The Grid Infrastructure segment, which supplies components for transmission and distribution, achieved 8% organic growth in Q3 2025. This growth is a direct result of utilities investing to interconnect new sources of load and generation, plus the ongoing hardening and resilience activity. Investment in renewables alone is projected to exceed $25 billion in 2025 for a sample of utilities, creating sustained demand for Hubbell's specialized components that manage two-way power flow and grid stability.

Increased scrutiny on Scope 1 and 2 emissions reporting for manufacturing operations.

While the market is pushing for Hubbell's products, investors and regulators are scrutinizing their own manufacturing footprint. Hubbell Incorporated has set an ambitious goal to reduce its absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 30% by 2030, using a 2022 baseline. This is a serious commitment that requires capital investment.

Here's the quick math on their recent performance:

The company is making progress, showing a slight decrease in total emissions from 2023 to 2024. Their Sustainability Impact Program (SIP) is the vehicle for this, funding capital projects like solar-panel installations and equipment upgrades to improve energy defintely efficiency across their facilities. What this estimate hides is the significant investment required to maintain this pace as production volumes rise with the utility super-cycle.

Waste reduction and circular economy initiatives in product design and packaging.

Hubbell is actively moving toward a circular economy (keeping materials in use longer), which is a key expectation for large-scale manufacturers today. Their focus is on both operational waste and product end-of-life management.

The company has a goal to reduce hazardous waste by 30% by 2030 compared to a 2022 baseline. This is a crucial operational metric for a manufacturing business. Their actions show a clear commitment to closing the material loop:

• Recycle: 781,200 electric and water meters were recycled in 2023 via their smart meter recycling program.
• Recover: This recycling effort recovered 2.15 million pounds of scrap metal in 2023.
• Recycled Content: 89% of their corrugated cardboard, plastic, and other packaging supplies were made of recycled material in 2023.

They are using a combination of efficient production processes, like additive manufacturing, and sourcing recycled content to design out waste. This focus reduces material costs over time and mitigates the risk of supply chain disruptions for raw materials.

Next Step: Finance: Model the long-term ROI of the Sustainability Impact Program (SIP) capital investments against projected utility capex growth by the end of Q4 2025.