Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Responsibility
• Social Responsibility
• Operational Responsibility
• Environmental Responsibility

Environmental Achievements

• Reduced CO2 emissions by a cumulative 26 million tons since 2003.
• Ranked No. 1 wind energy provider in the nation by the American Wind Energy Association.
• Ranked No. 5 among U.S. utilities for solar capacity by the Solar Electric Power Association.
• Completed 100-MW Grand Meadow Wind Farm in Minnesota.
• Announced plans for construction of a biomass gasifier at Bay Front Generating Station, making it the largest biomass plant in the Midwest.
• Completed repowering of High Bridge Generating Station to a combined-cycle natural gas plant, significantly reducing emissions.
• Installed a 10-kW solar photovoltaic system at High Bridge Generating Station.
• Helped install nearly 18 MW of on-site solar energy through Solar*Rewards program.
• Reduced energy consumption at Xcel Energy facilities by 2 million kilowatt-hours.

Social Achievements

• Achieved 90% positive residential satisfaction with Xcel Energy.
• Achieved OSHA recordable incident rate of 2.42 (improved from 2.61 in 2007).
• Achieved DART rate of 1.41 (improved from 1.42 in 2007).
• Met overall 2008 targets of 30% female applicants and 27% minority applicants.
• Increased United Way giving to $2.6 million (matched by the company for a total of $5.2 million).
• Launched Power of You breakfast program to gather employee feedback.
• Implemented Brand Champion program to engage employees with the new brand.
• Received a score of 95 out of 100 on the Human Rights Campaign Foundation’s Corporate Equality Index.

Governance Achievements

• Board of directors composed of 13 directors, 12 of whom were classified independent.
• Redesigned Code of Conduct in 2008 to enhance understanding.
• Implemented a new safety governance structure with Corporate and Executive Safety Committees.

Climate Goals & Targets

Environmental Challenges

• Global financial crisis and economic downturn.
• Higher-than-normal system interruptions in Wisconsin due to transmission, substation, and tree-related outages.
• Unplanned Outage Rate (UOR) higher than target.
• Projected increase in CO2 emissions due to Comanche 3.
• Workforce planning challenges due to employee retirements and increasing energy demand.

Mitigation Strategies

• Successfully managed credit and liquidity crisis by issuing more than $2 billion of debt and equity.
• Implemented reliability management programs focusing on infrastructure replacement, tree trimming, and investments to improve feeder performance.
• Implemented aggressive clean energy and conservation initiatives to offset CO2 emissions from Comanche 3.
• Redesigned workforce planning process to better evaluate risks and develop solutions for workforce gaps.

Supply Chain Management

Responsible Procurement

• 47% of supply-chain spending was within local communities.
• 7.15% of total supply chain spending was with diverse suppliers.

Climate-Related Risks & Opportunities

Transition Risks

• Potential GHG regulation at state or federal level.

Opportunities

• Development and deployment of clean energy technologies.

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines (B application level), Electric Utilities Sector Supplement (pilot version)

Sustainable Products & Innovation

• Smart grid technologies
• Renewable energy sources (wind, solar, biomass)
• Energy-efficient products and services

Awards & Recognition

• Dow Jones Sustainability Index (3rd consecutive year)
• ENERGY STAR® Partner of the Year Award
• Energy Central/EnergyBiz magazine “Utility of the Year” Award
• Edison Electric Institute’s “Emergency Assistance Award”

Environmental Metrics

ESG Focus Areas

• Governance
• People (Customers, Employees, Community)
• Clean Energy Future (Climate Policy, Advanced Technology, Business Innovation, Energy Efficiency)

Environmental Achievements

• 38.3-million-ton reduction in carbon dioxide (CO2) emissions since 2003
• 30-percent reduction in nitrogen oxide (NOx) and sulfur dioxide (SO2) emissions since 2003
• Completed a major emissions-reduction project in Minnesota in 2009 that included converting two coal-fired plants to natural gas facilities and completely refurbishing a coal-fired plant
• Exceeded conservation goals in Minnesota and Colorado

Social Achievements

• Residential customer satisfaction of 92% positive
• Best reliability results in five years
• Significantly reduced employee safety incidents
• Employees and retirees pledged $2.6 million to United Way organizations, matched by the company for a total of $5.2 million
• Employees increased volunteer paid-time hours by more than 70 percent

Governance Achievements

• Met the mid-point of earnings guidance despite economic challenges
• Received the highest rating from GovernanceMetrics International (GMI) for corporate governance standards
• Received a GMI Pay Alignment Ranking (PAR) of 94.4 percent

Climate Goals & Targets

Environmental Challenges

• Difficult economy and cooler summer weather reduced overall sales
• Higher purchased capacity power costs
• Higher effective tax rate
• Issues in PSCo impacting Unplanned Outage Rate (UOR)

Mitigation Strategies

• Reduced travel expenses
• Reviewed consulting and contracting needs
• Froze all executive pay
• Constructive rate-case outcomes
• Developed and implemented new turbine maintenance guidelines and initiated work on a quality assurance procedure to minimize reoccurrence of unplanned outages

Supply Chain Management

Responsible Procurement

• Supply chain unit partnerships to save $80 million

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory risk related to pending rate cases
• Impact of economic downturn on sales growth and costs
• Risk of inflation

Opportunities

• Renewable opportunities based on geographic service territory
• Established position as an environmental leader

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines

Third-party Assurance: None

Awards & Recognition

• Fortune magazine’s 2009 World’s Most Admired Companies listing
• Corporate Responsibility Officer magazine’s 100 Best Corporate Citizens list
• American Wind Energy Association “investor-owned utility of the year”
• Automotive Fleet’s top 50 “green fleets”
• Carbon Disclosure Project’s leadership index
• Energy Star Partner of the Year Award
• EEI Advocacy Excellence Award

Environmental Metrics

ESG Focus Areas

• Environmental Leadership
• Operational Excellence
• Customer Value
• Community Investment
• Employee Well-being
• Clean Energy
• Safety
• Diversity and Inclusion
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions almost 10 percent from 2005 levels
• 10 percent of power supply came from wind, solar and biomass sources
• Completed four identified projects associated with CO2 emission reductions
• Achieved energy savings of 773 GWh for customers

Social Achievements

• Residential customer satisfaction rating of 92 percent
• Increased employee volunteerism by 15%
• Employees pledged nearly $2.7 million to United Way
• Maintained internal employee promotions of 67%

Governance Achievements

• Named to the 2010-2011 Dow Jones Sustainability Index for North America
• Received a credit ratings upgrade from Standard and Poor’s from BBB+ to A-
• Named “Power Company of the Year” at the Platts Global Energy Awards
• Named to Corporate Responsibility Magazine’s “100 Best Corporate Citizens” list

Climate Goals & Targets

Environmental Challenges

• Regulatory uncertainty, especially around climate policy and the Clean Air Act
• Level of investment required to meet environmental requirements and maintain reliability
• Uncertain national policy regulating carbon and other greenhouse gas emissions

Mitigation Strategies

• Designed a strategy to ensure a diverse, balanced energy portfolio
• Supported flexible, cost-effective, and certain environmental policies
• Promoted development of clean technologies

Supply Chain Management

Responsible Procurement

• Supplier diversity program

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory uncertainty
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy expansion

Reporting Standards

Frameworks Used: GRI G3 Sustainability Reporting Guidelines, GRI’s Electric Utilities Sector Supplement 3 indicators

Third-party Assurance: None

Awards & Recognition

• Dow Jones Sustainability Index
• American Wind Energy Association ranking
• Solar Electric Power Association ranking
• Corporate Responsibility Magazine’s “100 Best Corporate Citizens” list
• Platts Global Energy Awards
• Minnesota Environmental Initiative’s “Partnership of the Year” award

Environmental Metrics

ESG Focus Areas

• Renewable Energy
• Environmental Benefits
• Economic Benefits

Environmental Achievements

• 91,173 MWh of electricity generated from renewable sources during the biennium, resulting in significant reductions in CO2, SO2, NOx, VOCs, Hg, and Pb emissions compared to coal.
• 146,059 Renewable Energy Credits (RECs) generated.

Social Achievements

• Creation or retention of 350 to 500 construction jobs and 70 research jobs.
• Community investment through various projects and programs.

Governance Achievements

• Improved transparency and reporting through online publication of project reports and financial information.
• Amendments to Minn. Stat. §116C.779 to improve program administration and oversight.

Climate Goals & Targets

Environmental Challenges

• Project completion schedules exceeding expectations.
• Co-applicant conflicts in grant contracts.
• Fluctuations in power purchase agreement (PPA) energy prices.
• Potential project impediments (authorizations, permits, etc.).

Mitigation Strategies

• Contract language with termination options for projects failing to meet milestones.
• Clarification of applicant responsibilities and liabilities.
• Revised grant contract language to address PPA price changes.
• Grant contract language to address potential project impediments.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Economic Development
• Customer Value
• Safety
• Workforce Development

Environmental Achievements

• Reduced carbon dioxide emissions by 18 percent from 2005 levels in 2012, on track for 27% reduction by 2020.
• Named the nation’s No. 1 wind energy provider for the ninth consecutive year.
• Reduced SO2 and NOx emissions by half since 2005.
• Used more than five billion gallons of recycled municipal wastewater annually for cooling equipment at power plants in Colorado and Texas.
• About half of the coal ash produced at generating plants is used for beneficial purposes.

Social Achievements

• Achieved a new high for customer satisfaction with 95 percent positive results.
• Contributed $17.1 million in energy assistance to customers.
• Employees, contractors, and retirees pledged $2.8 million to United Way (resulting in over $5.7 million investment in communities).
• More than 1,250 employees, customers, and families helped 41 nonprofit agencies in Colorado during the Day of Service.
• Held the first Day of Caring in the Upper Midwest with about 450 volunteers participating.

Governance Achievements

• Included in the 2012–2013 Dow Jones Sustainability Index for North America for the sixth year.
• Included in the 2013 Sustainability Yearbook, published by Robeco-SAM.
• Included in the Carbon Disclosure Leadership Index within the S&P 500 for the fifth consecutive year.
• Three women on the 12-member board in 2012, one of whom is African American, and one Latino board member.

Climate Goals & Targets

Environmental Challenges

• Aging infrastructure needing replacement.
• Growing pressure to reduce emissions and preserve natural resources.
• New requirements to protect operations from cyberattacks, ensure customer data privacy, and safeguard nuclear assets.
• Aging workforce requiring preparation for a new generation of employees and leaders.

Mitigation Strategies

• Proactive investments in infrastructure upgrades and replacements (>$13 billion through 2017).
• Balanced strategy of power plant improvements, customer energy efficiency programs, and wind and solar energy projects.
• Rigorous Corporate Compliance and Business Conduct (CCBC) program.
• Succession planning and employee development programs.

Supply Chain Management

Responsible Procurement

• 59% of suppliers have a presence or are headquartered within the company’s service territory.
• 56% of $3 billion in supplier spending is invested with companies in Xcel Energy’s service territory.

Climate-Related Risks & Opportunities

Opportunities

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

Reporting Standards

Frameworks Used: GRI G3.1 Sustainability Reporting Guidelines, Electric Utilities Sector Supplement

Awards & Recognition

• Dow Jones Sustainability Index for North America
• Sustainability Yearbook
• Carbon Disclosure Leadership Index
• No. 1 wind power provider in the US
• No. 5 among U.S. utilities for solar capacity
• Annual Achievement Award from the Utility Variable-Generation Integration Group
• Generation Technology Transfer Award from EPRI
• Tree Line USA utility
• Edison Electric Institute Emergency Assistance Award

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Reduced carbon dioxide emissions by 22 percent since 2005; projected 30 percent reduction by 2020.
• Ranked No. 1 utility provider of wind energy in the US for over a decade.
• Wind energy comprised 16% of total energy mix in 2014.

Social Achievements

• 94% of customers surveyed were satisfied with Xcel Energy.
• 52% employee participation in the annual United Way campaign.
• Consistently ranked among G.I. Job’s Top 100 Military Friendly Employers.

Governance Achievements

• 10 of 11 board directors classified as independent.
• Rigorous Corporate Compliance and Business Conduct (CCBC) program in place.
• Met or exceeded earnings guidance for the tenth consecutive year.

Climate Goals & Targets

Environmental Challenges

• Managing workforce transition with nearly half of the workforce eligible for retirement in the next 10 years.
• Meeting growing customer interest in cleaner energy options and more control over energy use.
• Addressing increasing scam activity targeting customers.

Mitigation Strategies

• Strategic action plan focusing on improving operating company performance, expanding customer options, growing the business, and ensuring technological and human resources.
• Investing over $3 billion in 2014 to maintain system safety and reliability, and $14.5 billion over the next five years.
• Launched awareness campaign and implemented technology changes to combat customer scams, resulting in a 60% reduction in impacted customers by year-end.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 60% of supply chain spending went to local suppliers (2014); 60% of suppliers are locally based.
• Supplier Qualification program monitors suppliers for OFAC, EPLS, OSHA, and EPA violations.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting system reliability.

Transition Risks

• Regulatory changes impacting power plant operations; market shifts affecting energy prices.

Opportunities

• Expansion of renewable energy portfolio; development of energy-efficient products.

Reporting Standards

Frameworks Used: GRI G4 guidelines, Electric Utilities sector specific supplement

Certifications: Green-e Energy Program (Windsource)

Third-party Assurance: The Climate Registry (TCR)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Windsource program; Solar*Rewards program; Solar*Rewards Community program; energy efficiency programs.

Awards & Recognition

• U.S. Green Building Council's Best Energy Service Provider/Utility; E Source's Top Technologies and Trends of 2014; Colorado Governor’s Award; Civilian Jobs’ Most Valuable Employer award.

Environmental Metrics

ESG Focus Areas

• Economic
• Environmental
• Social

Environmental Achievements

• Reduced carbon emissions by 24 percent since 2005 and on pace to reduce these emissions 30 percent by 2020.
• Added four new wind farms and increased wind power capacity by 15 percent in 2015.
• Reduced sulfur dioxide and nitrogen oxide emissions by 67 percent since 2005.

Social Achievements

• Helped facilitate $45.7 million in customer energy assistance to more than 100,000 families.
• More than 10 percent of new hires came from a military background.
• Xcel Energy Foundation awarded $3.8 million in grants to 400 non-profit organizations.

Governance Achievements

• Included in Fortune magazine’s list of the World’s Most Admired Companies.
• Scored 90 percent on the Human Rights Campaign Foundation’s Corporate Equality Index.
• Named one of Forbes magazine’s 100 Most Trustworthy Companies in America.

Climate Goals & Targets

Environmental Challenges

• Workforce transition as thousands of long-tenured employees are eligible to retire in the next five to 10 years.
• Meeting growing customer interest in more complex energy solutions and emerging technologies.
• Addressing the challenges and opportunities facing the energy industry while meeting fundamental customer requirements for reliable, affordable energy.

Mitigation Strategies

• Intentional hiring strategies, including partnerships with technical schools and veteran outreach.
• Investing in renewables, natural gas, and transmission to grow the business while keeping prices affordable.
• Developing a stronger strategic workforce planning process and model to support leaders in using the opportunities that arise as a result of turnover.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Qualification program using Dunn & Bradstreet services.
• Assessment of suppliers’ financial health and safety.
• Data security review for suppliers with access to confidential data.

Climate-Related Risks & Opportunities

Physical Risks

• Unusual weather

Transition Risks

• EPA or other regulatory organizations' future emission requirements.

Opportunities

• Development of energy-efficient products
• Adding more renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 guidelines (Core option and Electric Utilities Sector Specific Supplement)

Certifications: Null

Third-party Assurance: The Climate Registry

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Smart thermostats
• Renewable energy programs (Windsource, Solar*Rewards, Solar*Rewards Community)

Awards & Recognition

• Fortune magazine’s World’s Most Admired Companies
• Forbes magazine’s 100 Most Trustworthy Companies in America
• Edison Electric Institute’s Emergency Recovery Award
• EPA’s Climate Leadership Award
• 2015 EV Wired Workplace award from Charge Ahead Colorado

Environmental Metrics

ESG Focus Areas

• Affordable Energy
• Reliable Energy
• Employee Safety
• Renewable and Advanced Clean Technologies
• Greenhouse Gas Emissions and Air Quality
• Public Safety
• Local Economic Development
• Energy Efficiency
• Corporate Governance

Environmental Achievements

• Reduced carbon emissions by 30 percent since 2005
• Cut air emissions (nitrogen oxides) by approximately 70 percent since 2005
• Reduced water consumption by 35 percent since 2005
• Recycled more than 270 tons of material from replaced streetlights
• Recycled about 53 tons of plastic pipe into lumber

Social Achievements

• Employees contributed at least 50,000 volunteer hours
• Pledged more than $3 million in a United Way campaign (matched by the Xcel Energy Foundation)
• Xcel Energy Foundation awarded $3.9 million in grants
• Launched an effort to strengthen partnerships with local economic development authorities
• Increased veteran hires to 14.2 percent

Governance Achievements

• Established a Corporate Compliance and Business Conduct program
• Executive compensation tied to reliability, cost management, customer loyalty, public and employee safety, carbon emission reduction goals, and financial performance
• Implemented a new performance management approach (Connect 4 Performance)

Climate Goals & Targets

Environmental Challenges

• Aging grid infrastructure
• Integrating increasing distributed energy resources
• Changes in customer expectations
• Maintaining affordability while transitioning to cleaner energy
• Managing risks associated with grid security and cyberattacks
• Addressing regional haze requirements in Texas
• Managing water resources in arid regions
• Balancing wildlife protection with energy production

Mitigation Strategies

• Investing $18.4 billion in projects over five years to improve energy production, strengthen the grid, and offer customers more options
• Implementing a “steel for fuel” strategy to offset construction costs of wind farms with fuel savings
• Developing advanced grid intelligence and security initiatives
• Hardening systems to limit opportunities for cyberattacks and deploying enhanced monitoring systems
• Engaging in litigation to challenge regional haze rules in Texas
• Implementing strategic water resource plans and pursuing diverse water supply options
• Developing avian protection plans and implementing mitigation measures at wind farms

Supply Chain Management

Responsible Procurement

• Supplier Qualification program using Dunn & Bradstreet services
• Assessment of suppliers’ financial health and safety performance
• Inclusion of equal employment opportunity clauses in contracts
• Compliance with Xcel Energy’s Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Major storms

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

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

Reporting Standards

Frameworks Used: GRI G4 guidelines (Core option and Electric Utilities Sector Specific Supplement)

Sustainable Products & Innovation

• Renewable*Connect
• Solar*Rewards
• Solar*Rewards Community
• Windsource

Awards & Recognition

• 2017 Progress Minnesota award
• 2017 Inspiring Efficiency Award
• Better Buildings Alliance, Advanced Rooftop Unit Campaign recognition
• 2016 Climate Leadership Award
• Best Places to Work for LGBT Equality
• Best for Vets employer
• Military Friendly Employer
• 2016 Climate Leadership Award (EPA, Center for Climate and Energy Solutions, The Climate Registry)
• Better Buildings® award (U.S. Department of Energy)
• 2016 Climate Leadership award (U.S. Environmental Protection Agency)

Environmental Metrics

ESG Focus Areas

• Climate Change and Greenhouse Gas Emissions
• Energy Affordability
• Energy Reliability and Emergency Preparedness
• Renewable and Advanced Clean Energy Technologies
• Energy Efficiency
• Public Safety
• Employee Safety
• Community Giving and Volunteerism
• Corporate Governance, Ethics and Compliance
• Workforce Development

Environmental Achievements

• Reduced carbon emissions by 38% since 2005
• Reduced water consumption by 20% since 2005
• Reduced coal ash production by 28% compared to 2005
• Reused approximately 19% of coal ash produced
• Recycled nearly 23,000 tons of material

Social Achievements

• Provided $51.9 million to customer energy assistance programs
• Xcel Energy employees volunteered more than 90,000 hours
• Xcel Energy Foundation contributed $63.1 million in total community investment
• Improved outage communications, moving ahead of 12 utilities in peer set

Governance Achievements

• Revised corporate values
• Updated company policies
• Completed 100% Code of Conduct training for employees
• Refreshed allegation of wrongdoing case management system

Climate Goals & Targets

Environmental Challenges

• Maintaining affordability and reliability while transitioning to clean energy
• Meeting ambitious carbon reduction goals
• Managing the impact of coal plant closures on employees and communities
• Addressing supply chain disruptions

Mitigation Strategies

• Steel for Fuel strategy (adding renewables at a net savings)
• Economic development assistance to communities affected by coal plant closures
• Developing alternative sourcing strategies
• Investing in grid modernization and advanced technologies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• 12.4% of spending with diverse suppliers
• 70% of spending with local businesses
• Supplier Qualification program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Third-party verification by The Climate Registry

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable*Connect program
• Energy efficiency programs
• Electric vehicles

Awards & Recognition

• American Council for an Energy-Efficient Economy Exemplary Program Award
• AGA Safety Achievement Award
• Colorado Department of Public Health and Environment Gold Leader Award

Environmental Metrics

ESG Focus Areas

• Clean Energy Transition
• Customer Commitment
• Community Relations and Economic Development
• Workforce Management
• Safety
• Diversity, Equity and Inclusion
• Ethics and Compliance
• Supply Chain
• Public Policy
• Reliability, Resiliency and Security
• Energy Affordability
• Environmental Management
• Greenhouse Gas Emissions
• Air Emissions
• Water
• Waste

Environmental Achievements

• Reduced carbon emissions 50% from 2005 through 2021.
• Reduced sulfur dioxide and nitrogen oxides by 82%, mercury by 91%, lead by 77%, and particulate matter by 75% since 2005.
• Reduced releases under the EPA’s Toxics Release Inventory program more than 50% from 2005 levels.
• Produced 55% less coal ash in 2021 compared to 2005.
• Reused approximately 17% of coal ash produced in 2021.
• Recycled almost 23,000 tons of material in 2021.

Social Achievements

• Kept average residential electricity and natural gas bill increases below 1% annually since 2013.
• Distributed more than $145 million in energy and bill payment assistance to nearly 150,000 individuals and families in 2021.
• Improved emergency response time to calls involving a suspected natural gas leak, arriving at the scene within one hour 96% of the time in 2021.
• Employees volunteered nearly 70,000 hours with local nonprofits in 2021.
• Invested $14.9 million in communities through donations and volunteer time in 2021.

Governance Achievements

• Achieved all diversity, equity and inclusion metric targets set for 2021.
• 100% of active employees completed annual Code of Conduct training in 2021.
• Developed the company’s first stand-alone Supplier Code of Conduct.

Climate Goals & Targets

Environmental Challenges

• Rising energy prices and fuel costs.
• Supply chain constraints.
• Uncertainty around the impacts and duration of the COVID-19 pandemic.
• Climate change and extreme weather events.
• Water resource stress in arid regions.
• Wildfires.
• Cybersecurity threats.

Mitigation Strategies

• Landmark clean energy plans for Colorado and the Upper Midwest.
• Wildfire mitigation programs.
• Strategic water plans.
• Investments in grid resiliency and security.
• Comprehensive safety programs.
• Energy efficiency programs.
• Customer assistance programs.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Wildfires
• Drought

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Clean energy development
• Energy efficiency
• Electric vehicle adoption

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Awards & Recognition

• World’s Most Ethical Companies®
• Fortune magazine’s World’s Most Admired Companies
• Climate Leadership Award's Hall of Fame
• Best Places to Work for LGBTQ Equality
• Military Times’ Best for Vets employer

Environmental Metrics

ESG Focus Areas

• Reach Net Zero Responsibly
• Strengthen Communities
• Value People
• Operate with Integrity

Environmental Achievements

• Lowered carbon emissions from electricity serving customers by 53% from 2005 levels
• More than half the power generated comes from carbon-free sources
• Reduced air emissions by about 80% from power plants
• Cut water consumption from owned and purchased generation by 39% compared to 2005 levels
• Successfully recycled over 600 turbine blades, reused as alternative fuel in cement production

Social Achievements

• Increased female representation on the Xcel Energy Board of Directors and senior executive leadership to more than 30%
• Increased racial or ethnic diversity of leaders
• Expanded outreach encouraging customers to arrange payment plans and connected more than 190,000 customers to assistance programs
• Company and Xcel Energy Foundation donated more than $10 million
• 5,600 individuals donated their time, volunteering more than 74,000 hours

Governance Achievements

• 30% of executives’ incentive pay is tied to achieving short-term carbon reduction goals
• 99% of employment offers were extended to candidates interviewed by diverse panels
• Named one of the World’s Most Ethical Companies for the fourth year in a row

Climate Goals & Targets

Environmental Challenges

• High energy bills in winter 2023 due to extraordinary increases in natural gas prices
• Attracting and retaining top talent
• Increasing spending with diverse suppliers

Mitigation Strategies

• Expanded outreach to connect customers to assistance programs
• Developing key connections and pipelines to ensure workforce for the future
• Set a new goal to increase spending with diverse suppliers to 25% by 2025

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Focus on local and diverse suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Wildfires
• Droughts

Transition Risks

• Regulatory changes
• Market shifts
• Supply chain disruptions

Opportunities

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

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

Xcel Energy's initiatives contribute to these goals through its clean energy transition, community engagement, and sustainable business practices.

Sustainable Products & Innovation

• Smart meters
• Heat pumps
• Electric vehicles

Awards & Recognition

• Climate Leadership Hall of Fame
• World’s Most Ethical Companies
• Fortune’s World’s Most Admired Companies

Environmental Metrics

ESG Focus Areas

• Reach Net Zero Responsibly
• Value People
• Strengthen Communities
• Operate with Integrity

Environmental Achievements

• Reduced carbon emissions from generation serving customers by an estimated 54% from 2005 levels
• Retired Sherco 2 coal unit and simultaneously built the largest solar facility in the Midwest at the same site
• Reduced water consumption by 27% since 2005
• Reduced coal ash production by 58% since 2005
• 26% of coal ash beneficially reused in 2023

Social Achievements

• Increased female representation among senior leaders by 5% in 2023
• Granted $4.4 million to 409 nonprofits
• Employees volunteered 93,000 hours, making a $2.9 million economic impact
• Spent $1.3 billion with small and diverse suppliers (63% local)
• Provided $187 million in energy and affordability assistance to 188,000 families

Governance Achievements

• Tied carbon reduction to executive compensation
• Provided a third-party verified annual greenhouse gas disclosure since 2005
• Received awards from Fortune World’s Most Admired Companies, Military Times Best for Vets, Human Rights Best Places to Work for LGBTQ+ Equality, and Ethisphere World’s Most Ethical Companies®

Climate Goals & Targets

Environmental Challenges

• Achieving net-zero natural gas emissions by 2050 requires significant market and policy changes and customer action
• Managing water supply and discharges in water-stressed regions
• Groundwater exceedances of protection standards at several coal ash facilities
• Supply chain disruptions
• Wildfires

Mitigation Strategies

• Developing clean heat plans and investing in emissions reduction efforts
• Implementing advanced water treatment technologies and drought response plans
• Conducting investigations and implementing corrective actions at coal ash facilities
• Implementing a robust supplier qualification and risk management program
• Investing over $500 million in wildfire mitigation activities in Colorado since 2020 and expanding early wildfire detection cameras

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of clean energy technologies

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Third-party Assurance: Third-party verification through The Climate Registry

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

See report for details on how initiatives contribute to SDGs

Sustainable Products & Innovation

• Smart meters
• Renewable energy programs

Awards & Recognition

• Fortune World’s Most Admired Companies
• Military Times Best for Vets
• Human Rights Best Places to Work for LGBTQ+ Equality
• Ethisphere World’s Most Ethical Companies®