Mission Statement, Vision, & Core Values (2024) of Hawaiian Electric Industries, Inc. (HE).

An Overview of Hawaiian Electric Industries, Inc. (HE)

General Summary of Hawaiian Electric Industries, Inc. (HE)

Hawaiian Electric Industries, Inc. (HE) has its roots dating back to 1891, when it was established as a utility provider in Hawaii. The company primarily operates in the electric utility sector, providing electricity to approximately 95% of Hawaii's population across five main islands, excluding Kauai. HE also has a banking segment through its subsidiary, American Savings Bank (ASB).

As of 2024, Hawaiian Electric Industries focuses on delivering reliable, affordable, and clean energy solutions, aligning with Hawaii's goal of achieving 100% renewable energy by 2045. The company offers a variety of services including electricity generation, transmission, and distribution, alongside renewable energy projects such as solar and wind energy installations.

The current sales for Hawaiian Electric Industries are reported at approximately $1.79 billion for the first six months of 2024, reflecting a slight decrease from $1.82 billion in the same period of 2023.

Company's Financial Performance in the Latest Financial Reports

In the financial reports for the first half of 2024, Hawaiian Electric Industries reported total revenues of $1,794.5 million, a decrease of 2% compared to $1,823.9 million in the first half of 2023. The electric utility segment generated $1,580.9 million, while the bank segment contributed $207.1 million.

Operating losses for the electric utility segment reached $1.58 billion, primarily due to the accrual of $1.71 billion in wildfire tort-related claims associated with the Maui windstorm and wildfires. The net loss for common stock was approximately $1.25 billion for the six months ending June 30, 2024, compared to a net income of $109.3 million in the same period of the previous year.

Key financial metrics include:

Introduction to Company as a Leader in the Industry

Hawaiian Electric Industries stands as a key player in the energy sector, recognized for its commitment to sustainability and innovative energy solutions. The company operates under a performance-based regulation framework that encourages efficiency and customer service, positioning it as a leader in the transition to renewable energy sources in Hawaii.

HE has been actively investing in renewable energy projects and infrastructure improvements to enhance reliability and reduce environmental impact. The company's strategic approach aims to empower communities with clean energy while ensuring compliance with regulatory standards and meeting customer expectations.

For further insights into Hawaiian Electric Industries and its operational strategies, consider exploring the details below to understand the factors contributing to its market leadership.

Mission Statement of Hawaiian Electric Industries, Inc. (HE)

Mission Statement Overview

The mission statement of Hawaiian Electric Industries, Inc. (HE) serves as a foundational guide for the company's strategic direction and long-term goals. It articulates the organization's commitment to providing innovative energy solutions while ensuring the delivery of reliable and sustainable services to its customers and communities.

Core Component 1: Innovative Energy Leadership

A key component of HE's mission statement is its emphasis on innovative energy leadership. This reflects the company's commitment to adopting advanced technologies and practices that enhance energy efficiency and sustainability. For instance, HE aims to facilitate the integration of renewable energy sources into its grid, aligning with Hawaii's goal of achieving 100% renewable energy by 2045.

As of June 30, 2024, Hawaiian Electric's net book value of utility property, plant, and equipment (PPE) reached approximately $5.6 billion, highlighting substantial investments in infrastructure that support renewable energy initiatives.

Core Component 2: Affordable and Reliable Service

HE's mission also emphasizes the provision of affordable and reliable energy services. The company strives to maintain competitive pricing while ensuring consistent service delivery. In the second quarter of 2024, HE reported revenues of $897.4 million, slightly up from $895.7 million in the previous year. This stability in revenue is crucial for maintaining affordability for customers.

Moreover, the company has faced challenges, such as a reported operating loss of $1.6 billion for the first half of 2024, attributed largely to wildfire-related claims. However, HE continues to implement measures to stabilize service and pricing.

Core Component 3: Community Empowerment

The final core component of HE's mission statement centers around community empowerment. HE is dedicated to engaging with local communities to understand their energy needs and expectations. The company actively participates in initiatives aimed at increasing energy efficiency and promoting sustainability among residents.

In light of the challenges posed by the Maui windstorm and wildfires, HE has committed to a comprehensive rebuilding strategy that includes community input. The estimated costs related to these efforts are projected at approximately $1.71 billion. This underscores HE's focus on community resilience and long-term sustainability.

Vision Statement of Hawaiian Electric Industries, Inc. (HE)

Vision Statement Overview

The vision of Hawaiian Electric Industries, Inc. (HE) as of 2024 emphasizes a commitment to providing innovative energy solutions while addressing climate change impacts. The company aims to enhance community resilience and foster sustainable energy practices.

Commitment to Renewable Energy

Hawaiian Electric is dedicated to achieving a 100% renewable energy portfolio by 2045. This goal aligns with state mandates and reflects a proactive approach to reduce greenhouse gas emissions. As of June 30, 2024, the company reported a net book value of utility property, plant, and equipment (PPE) totaling $5.6 billion, with approximately 20% allocated to generation PPE.

Community Empowerment and Engagement

Hawaiian Electric aims to empower communities by providing access to affordable, reliable, and clean energy. The company serves approximately 95% of Hawaii's population across five separate grids. In the first half of 2024, Hawaiian Electric reported revenues of $6.52 million, indicating a focus on enhancing customer engagement and satisfaction.

Resilience and Adaptation Strategies

The vision also includes creating a safe, modern, and resilient electric grid capable of adapting to climate change challenges. In response to recent wildfires, Hawaiian Electric has implemented interim wildfire safety measures, which include enhanced inspection and vegetation management plans. The company accrued estimated wildfire liabilities of approximately $1.71 billion as of June 30, 2024.

Financial Performance and Sustainability Goals

Hawaiian Electric's financial performance reflects the impact of its sustainability goals. The company reported a net loss of $1.29 billion for the second quarter of 2024, primarily due to wildfire-related claims and operational challenges. Despite this, Hawaiian Electric remains committed to its vision of long-term sustainability and environmental stewardship.

Table of Key Financial Metrics

Innovation and Technological Advancement

Hawaiian Electric is focused on integrating advanced technologies to promote sustainability. The company’s initiatives include the deployment of distributed energy resources such as rooftop solar and demand response systems. This strategy is part of an ongoing effort to modernize the grid and enhance energy efficiency.

Conclusion of Vision Statement Components

Through its vision statement, Hawaiian Electric Industries, Inc. aims to lead Hawaii toward a sustainable future by prioritizing renewable energy, community engagement, resilience against climate impacts, and continuous financial and operational improvements.

Core Values of Hawaiian Electric Industries, Inc. (HE)

Core Value: Safety

Safety is a fundamental core value at Hawaiian Electric Industries, Inc. (HE). This principle guides the company’s operations, ensuring that the well-being of employees, customers, and the community is prioritized.

In 2024, Hawaiian Electric has implemented comprehensive safety training programs for its workforce, focusing on emergency preparedness and operational safety. The company has invested over $2 million in safety equipment and training initiatives to enhance workplace safety standards.

Additionally, the company has established a Wildfire Safety Strategy, which includes risk analysis, enhanced inspection protocols, and vegetation management plans aimed at mitigating wildfire risks associated with utility infrastructure.

Core Value: Sustainability

Sustainability reflects Hawaiian Electric’s commitment to environmental stewardship and the transition to renewable energy sources. The company aims to achieve 100% renewable energy by 2045, aligning with Hawaii's statutory goals.

As part of its sustainability initiatives, Hawaiian Electric has invested approximately $500 million in renewable energy projects, including solar and wind energy installations. The company’s current portfolio includes over 1,200 MW of renewable energy capacity, contributing to a significant reduction in carbon emissions.

Core Value: Community Engagement

Community Engagement is central to Hawaiian Electric’s operations. The company actively participates in local initiatives and supports community resilience programs.

In 2024, Hawaiian Electric contributed $1.5 million to community development projects, including disaster recovery efforts following the Maui wildfires. The One ‘Ohana Initiative was launched to support affected families and businesses, providing financial aid and resources.

Moreover, Hawaiian Electric has implemented educational programs aimed at increasing energy efficiency awareness among residents, thereby fostering a culture of sustainability within the community.

Core Value: Integrity

Integrity underpins Hawaiian Electric’s business practices. The company is committed to transparency, ethical conduct, and accountability in all its operations.

In response to recent challenges, including the wildfire tort-related claims, Hawaiian Electric has demonstrated integrity by maintaining open lines of communication with stakeholders and the public. The company has set aside approximately $1.71 billion to address these claims, reflecting its commitment to responsible financial management.

Additionally, Hawaiian Electric has established a robust compliance program to ensure adherence to regulatory standards and ethical guidelines across all business units.

Core Value: Innovation

Innovation is a key driver of Hawaiian Electric’s strategy to enhance operational efficiency and customer service. The company leverages technology to modernize its infrastructure and improve service delivery.

In 2024, Hawaiian Electric invested $100 million in smart grid technologies designed to enhance system reliability and integrate distributed energy resources. This includes the deployment of advanced metering infrastructure (AMI) and demand response programs, which empower customers to manage their energy use more effectively.

The company’s focus on innovation also extends to its commitment to research and development, with ongoing partnerships with local universities and research institutions to explore new energy solutions.