Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Clean Air
• Sustainability
• Safety
• Community Development
• Economic Development
• Education
• Environmental Protection
• Human Welfare
• Renewable Energy
• Electric Vehicles
• Greenhouse Gas Emissions Reduction
• Water Conservation
• Waste Reduction
• Employee Safety and Well-being
• Stakeholder Engagement
• Supply Chain Sustainability
• Governance
• Financial Performance

Environmental Achievements

• Reduced greenhouse gas emissions by 31% since 2000, reaching 57 million metric tons in 2010.
• Avoided emitting another 39,000 metric tons of carbon dioxide equivalent in 2010 through various initiatives.
• Reduced SO2 and NOx emissions by 67% and 61% respectively since 2000.
• Beneficially reused 67% of coal ash, avoiding 700,000 tons of CO2 emissions.
• Saved nearly $1 million due to reduced chemical use and waste.
• Recovered $1.1 million through the sale of obsolete equipment and vehicles.
• Reduced water usage by 80% at Cedar Bayou plant, saving $108,105 in water and associated costs.
• Donated 275,000 plants for wetland restoration in Galveston Bay.

Social Achievements

• Achieved top decile safety performance in the industry with a record low OSHA recordable incident rate.
• Nine NRG plants attained OSHA VPP Star status.
• Reduced recordable incidents by 10% despite a 12% increase in hours worked.
• Donated more than $3.4 million to over 140 charities.
• Reported 13,000 employee volunteer hours.
• Launched the NRG Howard Cosgrove Scholarship Program.
• Implemented various policies to ensure a fair and nondiscriminatory workplace.

Governance Achievements

• Board held five regularly scheduled meetings and five special meetings in 2010.
• All directors attended the 2011 annual meeting of stockholders.
• Board reviewed and approved fundamental financial and business strategies.
• Implemented a dual strategy to optimize core business and establish leadership in sustainable energy.

Climate Goals & Targets

Environmental Challenges

• Sharply declining natural gas commodity prices.
• Need to reduce overall CO2 emissions intensity.
• Setback to nuclear development following the Fukushima disaster.
• Developing economically viable carbon capture and sequestration technologies.
• Meeting the requirements of evolving environmental regulations (e.g., Clean Air Transport Rule, Air Toxics rule, 316(b) rule, Coal Combustion Residue rule).

Mitigation Strategies

• Implementing FORNRG program to exceed cost-saving goals.
• Investing in efficient gas-fueled units, renewables, and repowering/shutting down coal units.
• Exploring post-combustion carbon capture and sequestration technologies.
• Spending $721 million on environmental capital expenditures by 2015.
• Collaborating with regulators to drive sound regulation and ensure compliance.

Supply Chain Management

Responsible Procurement

• Sustainable office supplies
• Chemical management outsourcing
• Contractor safety procedures

Climate-Related Risks & Opportunities

Opportunities

• Development of clean energy technologies
• Meeting market demand for sustainable energy

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Claremont McKenna College

Sustainable Products & Innovation

• e-Sense™ smart energy solutions
• 100% renewable energy options
• eVgo electric vehicle charging ecosystem
• Distributed solar packages

Awards & Recognition

• Ernst & Young Transformational Achievement award for David Crane

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Safety
• Community Engagement
• Human Rights
• Governance

Environmental Achievements

• U.S. GHG emissions were 29% below 2000 levels
• Added 1100 MW of large-scale solar generation (operating or under construction)
• Completed construction of GenConn Middletown gas units (200 MW)
• Completed construction of the Princeton Hospital CHP plant
• Launched Petra Nova carbon capture project (200 MW-equivalent planned)
• Started Avenal and Roadrunner solar projects (45 MW total)
• Started construction on Ivanpah, California Valley Solar Ranch, and Agua Caliente solar projects (1,100 MW gross total)
• Beneficial reuse of fly ash avoided 641,000 metric tons of CO2e
• Purchase of renewable electricity avoided approximately 1,600 metric tons of GHGs
• Offset 5,600 metric tons from business travel

Social Achievements

• Donated $4.6 million to 362 organizations
• Committed $1 million and development capabilities to construct solar arrays in Haiti
• Created 2,400 jobs (directly or indirectly) through solar projects
• Implemented customer effort initiative resulting in a 26% better score than peers
• Lowest rate of safety incidents ever recorded in 2011 (0.77 recordable incident rate)

Governance Achievements

• Annual self-evaluations of the Board and its committees
• Annual Code of Conduct training for all employees (including health and safety, workplace violence prevention, equality of employment and harassment-free workplace)
• No substantiated incidents of illegal discrimination in 2011

Climate Goals & Targets

Environmental Challenges

• Impact from legislation or regulation of GHGs on financial performance
• Water scarcity in Texas
• Maintaining compliance with environmental regulations

Mitigation Strategies

• Compliance with RGGI cap-and-trade program
• Developing and deploying low- and no-carbon technologies
• Reducing water consumption and protecting water availability
• Investing in environmental improvements ($842 million since 2004, including $189 million in 2011, and an additional $553 million planned from 2012-2016)

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Suppliers required to comply with all applicable laws and requirements

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Legislation or regulation of GHGs

Opportunities

• Development and deployment of low- and no-carbon technologies

Reporting Standards

Frameworks Used: GRI

Certifications: LEED (five office buildings)

Third-party Assurance: Select information internally or externally verified; 20% of Scope 1 GHG emissions independently audited; Green Mountain Energy's Scope 1, 2, and 3 GHG emissions independently verified annually

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable energy products (Green Mountain); eVgo electric vehicle charging network; Reliant eSense smart energy solutions

Awards & Recognition

• Numerous awards listed in the report (IABC Silver Quill Awards, Green Office Challenge award, GreenCircle Award, CIO Magazine CIO 100 Winners, American Marketing Association Houston Crystal Awards, Greater Austin Business Award, EPA Green Power Purchaser Awards)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Social Responsibility
• Governance

Environmental Achievements

• Reduced GHG emissions through repowering and renewable energy projects
• Improved water conservation through reuse projects
• Increased renewable energy share to 3% of generation

Social Achievements

• Launched several community investment initiatives, donating $5.4 million
• Improved safety performance with a recordable incident rate of 0.52
• Completed 104 stewardship projects saving over $99,000

Governance Achievements

• Implemented a comprehensive Code of Conduct with annual training for all employees
• Established a strong risk management framework
• Linked executive compensation to company performance

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (financial and operational)
• Meeting increasing demand for sustainable energy
• Managing environmental impacts of traditional power generation

Mitigation Strategies

• Investing in renewable energy projects
• Repowering existing plants with cleaner technologies
• Implementing energy efficiency and conservation measures
• Developing and implementing robust risk management policies

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Opportunities

• Development of renewable energy projects

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Third-party verifiers for 28% of GHG emissions, RECs, and financial data; Internal Audit Department review for RECs, fly ash reuse, and capacity/generation

Sustainable Products & Innovation

• Renewable energy projects (solar)

Awards & Recognition

• Silver Quill Award
• Industry excellence awards for solar projects
• EPRI Technology Transfer Award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 4% of capacity came from renewable sources (solar or wind)
• Completed 205 stewardship projects, including 35 climate change projects
• Corporate headquarters and Houston Pavilions office purchased 6.4 million KWH of renewable energy, avoiding 3,500 metric tons of greenhouse gases
• 60% of 5,841,098 tons of coal ash was recycled
• Ivanpah Concentrating Solar Power Project implemented desert tortoise protection program
• NRG operates the Cedar Bayou EcoCenter for wetland education and restoration

Social Achievements

• Listed for the first time in the Civic 50 for commitment to community improvement
• Four plants received an “American Red Cross Philanthropy Award”
• NRG’s Human Resources department won the Delaware Valley HR Department of the Year award
• Reliant won the “Corporation of the Year” Award
• NRG donated $4.3 million through the Global Giving program

Governance Achievements

• Established annual Code of Conduct training for all employees, emphasizing gifts and business entertainment
• Board held 5 regularly scheduled meetings and 4 special meetings in 2013
• Executive compensation program designed to align with stockholder value creation and long-term business strategy

Climate Goals & Targets

Environmental Challenges

• Financial risks associated with climate change
• Meeting increasing market demand for sustainable and low-carbon energy solutions

Mitigation Strategies

• Substantial investments in the future of the company
• Aggressively positioning the company to meet market demand for sustainable energy

Supply Chain Management

Responsible Procurement

• Standard Terms and Conditions requiring supplier compliance with laws and regulations

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Big Four registered public accounting firm (verification in progress)

Awards & Recognition

• Civic 50
• American Red Cross Philanthropy Award (four plants)
• Power Association of Northern California Award for Achievement
• Delaware Valley HR Department of the Year award
• Intersolar AWARD 2013 finalist
• POWER-GEN International's Projects of the Year awards runner-up
• Reliant's Corporation of the Year Award

Environmental Metrics

ESG Focus Areas

• Carbon Emission Reduction
• Renewable Energy
• Employee Safety and Wellness
• Workforce Diversity
• Community Engagement
• Environmental Stewardship
• Supply Chain Management

Environmental Achievements

• Reduced CO2 emissions by 40% since 2005.
• Broke ground on Petra Nova, one of the world's largest post-combustion carbon capture projects.
• Achieved 95% of plant-specific environmental targets.
• Recycled 17% of general waste, exceeding the 15% goal.
• Repurposed 64% of coal combustion residuals for beneficial use, exceeding the 55% goal.

Social Achievements

• Launched employee engagement survey with a 65% response rate.
• Hosted the first Microgrid Design Competition.
• Launched the Frontline Leadership program.
• Launched The Leader’s Edge leadership development program.
• Donated $40,000 in grants for disaster relief.
• Donated $8.2 million for grant-making in local communities.
• Supported various giving programs (Matching Gifts, Dollars for Hours, Volunteer Days, TEAM NRG).

Governance Achievements

• Established a CEO-led executive steering committee to guide sustainability efforts.
• Conducted a materiality assessment to identify key sustainability issues.
• Engaged a third party for a limited assurance of emissions inventory.

Climate Goals & Targets

Environmental Challenges

• Remaining a major emitter of carbon dioxide despite emission reductions.
• Balancing growth with emission reduction.
• Integrating renewable energy sources into the grid.
• Managing the environmental impact of the supply chain.

Mitigation Strategies

• Set industry-leading carbon reduction targets (50% by 2030, 90% by 2050).
• Investing in carbon capture and sequestration (Petra Nova project).
• Converting coal-fired plants to natural gas.
• Retiring aging coal plants.
• Optimizing plant performance with equipment and efficiency upgrades.
• Developing utility and distributed renewable energy systems.
• Forming partnerships with like-minded companies.
• Implementing energy efficiency initiatives.
• Developing a supply chain sustainability action plan.

Supply Chain Management

Responsible Procurement

• Supplier registration portal for safety prescreening.
• NRG Standard Terms and Conditions and Supplier Code of Conduct.
• Supplier diversity program.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.
• Growth of renewable energy businesses.

Reporting Standards

Frameworks Used: GRI G4 Core framework, GRI Electric Utilities Sector Supplement

Third-party Assurance: KPMG LLP (limited assurance on emissions inventory)

Sustainable Products & Innovation

• Rooftop solar solutions
• Electric vehicle charging infrastructure
• Smart energy products and services

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Energy
• Water
• Biodiversity
• Emissions
• Waste
• Compliance
• Employment
• Occupational Health & Safety
• Training & Education
• Diversity & Equal Opportunity
• Local Communities

Environmental Achievements

• Reduced energy requirements of products and services (details in report)
• Implemented water management and drought contingency plans at all generating facilities
• Implemented Biodiversity program including policy statement, policy within Environmental Policy and Procedures Manual, and Biodiversity Plans for all generating sites.

Social Achievements

• 100% of operations with implemented local community engagement, impact assessments, and development programs
• 100% of full-time employees receive regular performance reviews
• Average of 10 training hours per employee per year (excluding safety, ethics, and company policy training)

Governance Achievements

• Established robust preventive safety practices and programs to ensure employee health and safety
• Details on governance structure, committees, and delegation of authority (refer to Corporate Governance section of report)
• NRG Energy Code of Conduct in place

Climate Goals & Targets

Environmental Challenges

• Significant carbon dioxide and other greenhouse gas emissions from operations
• Water withdrawal impacts
• Potential negative impacts for labor practices in the supply chain

Mitigation Strategies

• Long-term carbon reduction goals announced in 2014
• NRG Water initiative with Program Manager and Operations Steering Committee
• Supplier assessment for labor practices (details in report)

Supply Chain Management

Supplier Audits: Details in report (pgs. 55-57)

Responsible Procurement

• Labor practices criteria used for screening new suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4

Third-party Assurance: Limited assurance on emissions inventory by a nationally recognized and registered public accounting firm

Environmental Metrics

ESG Focus Areas

• Sustainable Business
• Sustainable Operations
• Sustainable Customers
• Sustainable Suppliers
• Sustainable Workplace

Environmental Achievements

• Decreased CO2e emissions by 23 percent from 2015
• Completed coal-to-gas projects totaling 2.2 gigawatts at three power plants
• Completed the Petra Nova project, the world’s largest post-combustion carbon capture facility
• Reduced mercury emissions by 62 percent from 2015 and 80 percent from 2014
• Reduced SOx and NOx emissions by 49 percent and 35 percent, respectively, from 2015
• Reduced water withdrawal by 23 percent from 2015

Social Achievements

• Achieved second-best year-end incident rate (0.62)
• Expanded Power up my life, employee wellness initiative, with 52% participation
• Launched NRG Gives and Reliant Gives crowd-sourced charitable giving programs, donating $460,000
• More than 1,200 employees volunteered nearly 5,000 hours during positiveNRG Week
• Introduced a Flexible Work Policy

Governance Achievements

• Became the first company in the U.S. power sector to report to stakeholders using SASB standards
• Added corporate sustainability to the board’s Governance and Nominating Committee’s oversight
• Became a member of Ceres
• First U.S.-based power producer to participate in CDP’s Supply Chain Engagement Program
• First U.S.-based power producer to join the Global Reporting Initiative (GRI) Gold Community

Climate Goals & Targets

Environmental Challenges

• Political and regulatory uncertainty regarding greenhouse gas emissions regulations
• Changes in weather or other environmental conditions affecting electricity demand and operations
• Rapid growth of renewables and the challenge of integrating them into the power grid
• Rise of sustainable investing and transparency demanding greater disclosure of non-financial data
• Rise of sustainable procurement and supply chain engagement requiring transparent and responsible practices

Mitigation Strategies

• Focusing on sustainability as a business opportunity to meet evolving market demands
• Investing in environmental controls, repowering with cleaner technologies, and carbon capture technologies
• Developing a diversified future energy portfolio including renewables, demand response, energy storage, and natural gas units
• Actively engaging with stakeholders to foster a collaborative dialogue and ensure alignment with expectations
• Initiating a materiality assessment to uncover risks and opportunities within the supply chain and participating in CDP’s supply chain program

Supply Chain Management

Responsible Procurement

• NRG Standard Terms and Conditions
• Supplier Code of Conduct
• Supplier registration portal for prescreening
• Audits of TSD facilities for hazardous waste
• Strategic sourcing for long-term contracts

Climate-Related Risks & Opportunities

Physical Risks

• Storms, floods, and other climatic events disrupting operations

Transition Risks

• Changes in government regulation of environmental emissions

Opportunities

• Growth of renewables and development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards at the Core level, GRI Electric Utilities Sector Supplement, SASB Standards

Third-party Assurance:

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 13: Climate action

NRG's core business aligns with Goal 7 through providing reliable, cleaner power. Initiatives contribute to Goal 13 through GHG emission reduction targets and renewable energy investments.

Sustainable Products & Innovation

• Goal Zero portable power products
• Ice Energy’s Ice Bear technology
• Community solar solutions

Awards & Recognition

• 10 Years of Safety and Environmental Excellence Award from Intelex Technologies Inc.
• Excellence in Greenhouse Gas Management by the EPA’s Climate Leadership Awards
• Customer Engagement Award at the SAP4U Excellence in Utilities Awards
• Highest J.D. Power® customer satisfaction score among retail electric providers

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Water Management
• Waste Management
• Supply Chain Sustainability
• Workforce Diversity
• Community Engagement

Environmental Achievements

• Reduced GHG emissions by 2% from 2016 to 2017 (49 million metric tons to 48 million metric tons)
• Achieved 2030 water reduction goal 13 years early (40% reduction from 2014 baseline)
• Recycled 68% of coal combustion residuals (1.3 million metric tons generated)
• Reduced mercury emissions by 25% from 2016
• Reduced SOx and NOx emissions by 43% and 22% respectively from 2016

Social Achievements

• Second-best safety year in company history (0.57 year-end incident rate)
• Launched Community Supported Agriculture (CSA) program for employees
• Implemented Flexible Work Policy to reduce commute emissions
• Expanded Power up my life wellness initiative (64% employee participation)
• Donated $59,000 and 21,792 volunteer hours during positiveNRG week

Governance Achievements

• Published a Sustainability Accounting Standards Board (SASB) report
• Became a founding member of the SASB Alliance
• Earned an A-rating from CDP for Supply Chain Engagement
• First U.S. power producer to publish a SASB report
• First U.S. energy company to be a signatory to the UN’s Women Empowerment Principles

Climate Goals & Targets

Environmental Challenges

• Political and regulatory uncertainty in the US energy sector
• Climate change impacts (extreme weather events like Hurricane Harvey)
• Rise of sustainable investing and increased transparency expectations
• Technological advances and cybersecurity risks
• Growing demand for renewables and complex procurement processes

Mitigation Strategies

• Developed a company-wide transformation plan
• Built resilience into operations and infrastructure
• Enhanced sustainability disclosure and transparency
• Strengthened cybersecurity measures
• Engaged with suppliers to improve sustainability performance

Supply Chain Management

Supplier Audits: Audits of TSD facilities for hazardous waste disposal

Responsible Procurement

• Supplier Code of Conduct
• Strategic sourcing agreements
• Supplier diversity program
• Natural Gas Supply Collaborative

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Disruptions to operations and supply chain

Transition Risks

• Changes in government regulations
• Increased cost of electricity due to GHG regulation

Opportunities

• Development of energy-efficient products and services
• Expansion of renewable energy

Reporting Standards

Frameworks Used: GRI, SASB, CDP

Third-party Assurance: Nationally recognized and registered public accounting firm (limited assurance on emissions inventory and water)

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 13: Climate action

NRG's business and strategy align with these goals through renewable energy development, GHG emission reduction, and sustainable energy solutions for customers.

Sustainable Products & Innovation

• 100% renewable energy plans
• Community solar
• Energy storage solutions

Awards & Recognition

• CDP A-list for Excellence in Water Leadership
• CDP Supply Chain Engagement A-rating
• Climate Leadership Award from Climate Registry and US EPA
• Forbes Diversity award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Safety
• Community Engagement
• Supply Chain Sustainability

Environmental Achievements

• Reduced total GHG emissions by 41% since 2014
• 83% of the way to 2025 GHG reduction goal
• Petra Nova captured over 4 million tons of CO₂ since operations began
• Reduced NOx emissions by 32%, SOx emissions by 55%, and mercury emissions by 69% since 2014
• 66% of coal combustion residuals recycled
• Reduced water withdrawal by 39% since 2014

Social Achievements

• Improved safety record with a TCIR of 0.49 (best ever)
• Increased diversity on the Board of Directors (30% female, 30% ethnically diverse)
• Launched Power Up My Life employee engagement program
• 50% employee completion rate for annual physicals
• Donated $3.2 million through corporate philanthropy
• 11,273 volunteer hours contributed by employees

Governance Achievements

• Engaged in an ESG-linked loan ($2.6 billion)
• Fourth consecutive year disclosing sustainability data using SASB standards
• Proactive engagement with investors and advocacy organizations on ESG issues
• Sustainability focus supported by Board chair and Governance & Nominating Committee

Climate Goals & Targets

Environmental Challenges

• Complex and fragmented energy regulatory landscape
• Intermittency of renewable energy sources
• Managing risks associated with water scarcity and quality
• Supply chain disruptions

Mitigation Strategies

• Monitoring sector trends and engaging in policy discourse
• Investing in energy storage technologies
• Using non-potable water and implementing water-saving technologies
• Engaging with suppliers on sustainability performance through CDP Supply Chain program
• Developing alternative sourcing strategies

Supply Chain Management

Responsible Procurement

• Social Responsibility Standards for Manufacturers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy markets

Reporting Standards

Frameworks Used: GRI Standards (Core level), SASB Standards, CDP questionnaires

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 5 (Gender Equality)
• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)

NRG's initiatives contribute to these goals through employee well-being programs, diversity and inclusion efforts, renewable energy solutions, and GHG emission reduction targets.

Sustainable Products & Innovation

• Renewable energy plans
• Energy storage solutions
• Smart home technologies

Awards & Recognition

• Ranked 115 of 300 in Newsweek's Most Responsible Companies of 2019
• 2018 Retail Energy Provider of the Year

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Safety
• Customer Focus
• Supplier Engagement

Environmental Achievements

• Reduced greenhouse gas emissions by 55% since 2014, exceeding the 2025 target.
• Achieved 80% recycling rate for coal combustion residuals in 2020.
• First North American power company to receive validation from the Science Based Targets initiative that its climate goals are consistent with reductions needed to limit global warming to 1.5 degrees Celsius.

Social Achievements

• Launched "Workplace 21" initiative to reimagine the workplace of the future.
• Completed a gender and race pay equity study, finding no evidence of discrimination.
• Donated over $2 million to fund relief efforts in connection with COVID-19 and racial injustice.

Governance Achievements

• Issued the first sustainability-linked bond in North America.
• Expanded sustainability disclosures in the 2021 Proxy Statement.
• Board of Directors has 36% gender diversity and 27% ethnic diversity.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and customer needs.
• Winter Storm Uri disrupting the Texas energy system.
• Supply chain disruptions

Mitigation Strategies

• Implemented pandemic plan, supported customers facing hardship, and provided relief efforts.
• Working with stakeholders to ensure resilience in the energy system.
• Engaging with suppliers to improve sustainability practices.

Supply Chain Management

Supplier Audits: Third-party audits conducted annually for contract manufacturers.

Responsible Procurement

• Social Responsibility Standards for Manufacturers
• Participation in CDP Supply Chain engagement program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 13

NRG focuses on SDGs most closely tied to its business: good health and well-being, gender equality, affordable and clean energy, and climate action.

Sustainable Products & Innovation

• 100% renewable electricity plans
• Demand response programs
• Energy efficiency consulting and products
• Carbon offsets

Awards & Recognition

• Forbes Best Employer for Diversity
• Platt's Best-Performing Global Energy Company
• Newsweek America's Most Responsible Company
• ARCET Global North American Customer Centricity Award
• TEPA Supplier of the Year

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Safety
• Community Engagement
• Supply Chain Sustainability

Environmental Achievements

• Reduced CO2e emissions by 44% since 2014 (27 million metric tons)
• 64% decrease in revenue carbon intensity since 2019
• Coal generation represents less than 5% of total revenues
• 72% of coal combustion residuals recycled in 2021
• Achieved 1.5°C-aligned climate goals certified by SBTi

Social Achievements

• Achieved top-decile safety performance (TCIR 0.30)
• Over 750 donations through positiveNRG
• 6,380+ volunteer hours contributed by employees
• Launched initiative with Prairie View A&M to support engineering program
• Partnered with Department of Defense for Patrol to Power program

Governance Achievements

• 64% Board of Directors diversity (gender and ethnic)
• Published inaugural TCFD report
• Issued additional $1.1 billion of sustainability-linked bonds

Climate Goals & Targets

Environmental Challenges

• Winter Storm Uri in Texas
• Increased emissions in 2021 due to higher power demand
• Methane emissions associated with natural gas supply chain

Mitigation Strategies

• $10 million pledged in support of Texas communities after Winter Storm Uri
• Continued efforts to reduce emissions and meet 2025 goal
• Engagement with Natural Gas Supply Collaborative (NGSC) to reduce methane intensity
• Planning to offer responsibly sourced gas (RSG) to customers

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Social Responsibility Standards for Manufacturers Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy

Reporting Standards

Frameworks Used: GRI, SASB (now VRF), TCFD

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 7
• SDG 13

Focus on goals related to health, gender equality, affordable and clean energy, and climate action

Sustainable Products & Innovation

• Renewable electricity plans
• Carbon offsets
• Energy storage solutions
• Demand-side management programs

Awards & Recognition

• Newsweek Most Responsible Companies
• Forbes Green Growth 50
• Climate Leadership Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Safety
• Governance
• Community Engagement

Environmental Achievements

• 42% reduction in greenhouse gas (GHG) emissions since 2014 base year
• Retired or sold roughly 1,400 MW of fossil fuel-fired assets
• Less than 5% of consolidated revenues derived from coal-fired assets in 2022
• 80% of CCRs recycled

Social Achievements

• Record safety performance with a 0.27 TRIR
• Record customer retention
• Donated over $6.5 million to charitable organizations
• 14,000 volunteer hours by employees
• Recognized as a top employer for Latino Leaders, one of America’s Most Responsible Companies, and a Champion of Board Diversity

Governance Achievements

• Added sustainability-related metric to executive compensation
• Updated Code of Conduct
• Incorporated ESG metric into annual cash incentive plan (15% weight for NEOs)

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions in 2022 compared to 2021 due to power market conditions and weather
• Balancing climate goals with reliable and affordable energy for customers

Mitigation Strategies

• Actively monitoring and exploring various options to achieve 2025 GHG emission reduction goals
• Portfolio optimization strategy including retiring fossil fuel plants
• Investing in renewable energy PPAs
• Developing and deploying new EV products and services

Supply Chain Management

Supplier Audits: 76% of NRG suppliers have an active target to reduce their emissions; 88% integrate climate-related issues into their long-term objectives (CDP data)

Responsible Procurement

• NRG Supplier Code of Conduct
• NRG Manufacturers Standards Policy
• NRG supplier diversity standards
• CDP Supply Chain program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy

Reporting Standards

Frameworks Used: GRI, SASB (now part of IFRS Foundation), UN SDGs

UN Sustainable Development Goals

• Goal 3
• Goal 5
• Goal 7
• Goal 13

Initiatives aligned with SDG 3 (health), SDG 5 (gender equality), SDG 7 (affordable and clean energy), and SDG 13 (climate action).

Sustainable Products & Innovation

• Renewable electricity plans
• EV charging plans
• Rooftop solar plans
• Demand Response programs
• Carbon offsets

Awards & Recognition

• CEO Talent Champion, Gartner
• America’s Most Responsible Companies, Newsweek
• Gulf Coast DiversityFirst Awards Organizational Recipient, National Diversity Council
• Top Employer for Latino Leaders, National Diversity Council
• Texan by Nature 20, Texan by Nature
• Corporate Philanthropy Award, NJ Governor’s Award in Arts Education
• NJ State Governor’s Jefferson Award, NJ Department of State Volunteer and National Service
• ESG Integration Awards: Best Board Oversight of ESG, Corporate Secretary
• Champion of Board Diversity, Forum of Executive Women
• Faces of Philanthropy, Philadelphia Business Journal
• Crisis Strategy and Management Award, Customer Centricity World Series
• Best of the Best - Electricity Company, Houston Chronicle
• Innovation Award, Customer Experience Professionals Association
• Outstanding Corporation Award, Association of Fundraising Professionals Dallas
• Fast50, Utah Business Magazine
• Utah 100, MountainWest Capital Network
• Green Business Award Honoree, Utah Business

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DE&I)
• Safety and Well-being
• Community Engagement
• Governance

Environmental Achievements

• 58% reduction in GHG emissions compared to 2014 base year (approximately 58 million metric tons CO2e to approximately 24 million metric tons)
• 30% reduction in Scope 1 emissions in 2023
• 71% decrease in water withdrawal associated with NRG operations compared to 2014 base year
• 68% of coal combustion residuals (CCRs) generated by our facilities were recycled for beneficial reuse in 2023

Social Achievements

• Top decile safety performance
• Approximately 31,100 volunteer service hours across North America
• Approximately $7.2 million donated to charitable organizations
• Integration of NRG and Vivint, enriching offerings and teams

Governance Achievements

• Expanded Board of Directors from 11 to 13 directors
• 54% Board of Directors’ ethnic or gender diversity
• Incorporation of ESG metric (15% weight) into executive compensation

Climate Goals & Targets

Environmental Challenges

• Volatility within power markets driven by market conditions and changes in regulatory policies
• Anticipated power demand increase driven by the technology sector

Mitigation Strategies

• Portfolio optimization strategy (including retiring fossil fuel plants)
• Diversification into low-emissions businesses (renewable electricity, carbon intensity reduction for natural gas)
• Leveraging technology and data analytics for efficient operations and customer engagement

Supply Chain Management

Responsible Procurement

• Promoting environmental disclosure practices
• Developing strong manufacturing standards and internal policies
• CDP Supply Chain engagement program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Renewable energy PPAs

Reporting Standards

Frameworks Used: SASB, UN Sustainable Development Goals (SDGs)

UN Sustainable Development Goals

• Goal 5
• Goal 6
• Goal 7
• Goal 12

See page 52 for details.

Sustainable Products & Innovation

• Demand response programs
• Renewable energy plans
• EV charger plans
• Smart home technologies

Awards & Recognition

• Newsweek’s Most Responsible Companies
• Forbes America’s Best Midsize Employer
• Forbes Best Employer for Diversity
• Forbes America’s Best Employer by State (Texas)