Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Operational Performance
• Customer Satisfaction
• Community Strengthening
• Shareowner Value
• Governance

Environmental Achievements

• Completed construction of Kentucky’s first natural gas combined-cycle generating unit at Cane Run, replacing most of the retired coal-fired generation.
• Reduced sulfur dioxide emissions by 80% from 1997 to 2018 and nitrogen oxide emissions by 69% during the same period.
• Renewable power sources comprised more than 13% of the power PPL Electric purchased for customers.
• U.K. operations connected more than 6,500 megawatts of renewable energy to the power grid.

Social Achievements

• Offered energy efficiency programs that helped customers save nearly 3 billion kilowatt-hours (kWh) of electricity.
• Provided payment assistance programs to help customers in need.
• Maintained strong support for education, community revitalization, and economic development.
• Consistently ranked among the best companies for customer service in the United States and the U.K.

Governance Achievements

• Completed the spinoff of PPL’s competitive generation business.
• Established an important safety advocacy group made up of bargaining unit employees.
• Reorganized safety professionals based upon particular roles they’ll serve rather than on the geographic regions they serve.
• Refined the company’s Safety Strategy, identifying initiatives focused on its mission and core values.

Climate Goals & Targets

Environmental Challenges

• A large portion of the PPL workforce is moving toward retirement.
• The potential physical effects of climate change, such as increased frequency and severity of storms, floods, and other climatic events, could disrupt operations.
• Greenhouse gas regulation could increase the cost of electricity.
• Reduced economic and consumer activity could reduce demand for power.

Mitigation Strategies

• Stepping up recruitment efforts to attract and retain up-and-coming leaders with diverse skill sets.
• Investing in electric infrastructure improvements to deliver power more reliably and efficiently.
• Shifting power generation from coal to lower-emissions sources such as natural gas and solar.
• Offering energy efficiency programs to reduce energy use and its associated carbon emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Safety, environmental, diversity, and standards of conduct requirements incorporated into purchase orders and contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of storms, floods, and other climatic events

Transition Risks

• Greenhouse gas regulation

Opportunities

• Expanding renewable energy sources

Reporting Standards

Frameworks Used: GRI G4 (Core level)

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Top 2015 Utility Environmental Champions (LG&E and PPL Electric)
• Tree Line USA utility (PPL Electric)
• Military Friendly Employer® (PPL)
• Top 100 Call Center (LG&E and KU)

Environmental Metrics

ESG Focus Areas

• Create extraordinary shareowner value
• Drive best-in-sector operational performance
• Advance a cleaner energy future
• Build tomorrow’s energy infrastructure
• Exceed customer expectations
• Foster an exceptional workplace
• Strengthen communities

Environmental Achievements

• Successfully completed a multi-year, $2.8 billion construction project to reduce emissions at four power plants — on time, under budget and with outstanding performance and safety records.
• Reduced sulfur dioxide emissions by 92% from 1998 to 2017, nitrogen oxide emissions by 77%, and particulate matter by 90%.
• 61% less water used per megawatt-hour generated in 2016 than in 2012.
• Increased ash reuse to 49.7% in 2016.
• Implemented a pole recycling program in 2016 to keep about 1,600 tons of wooden material out of landfills each year.

Social Achievements

• Ranked highest for residential customer satisfaction among large utilities in the East region for a fifth consecutive year by J.D. Power.
• Launched the largest electric vehicle trial of its kind in the UK (Electric Nation) to explore the impact on local distribution networks.
• Earned recognition for programs that help vulnerable customers.
• Invested in professional development programs, resulting in a low attrition rate of 6.74% in 2016.
• Spent $151 million with more than 300 diverse businesses.

Governance Achievements

• Received the ATHENA Organizational Leadership Award for support of women leaders.
• Earned the highest score in 2016 Corporate Equality Index.
• Established and maintains Standards of Integrity for all employees and suppliers.

Climate Goals & Targets

Environmental Challenges

• Aging infrastructure
• Climate change
• Increased demand from electric vehicles
• Greenhouse gas emissions
• Potential physical effects of climate change (storms, floods).

Mitigation Strategies

• Invested $3 billion in 2016 to modernize the grid (with plans for $16 billion more through 2021).
• Implemented emissions reduction projects at power plants.
• Launched Electric Nation project to study the impact of electric vehicles.
• Investing in smart grid technology to integrate renewable energy sources.
• Proactive foreign currency hedging to manage risks associated with Brexit.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier compliance with safety, environmental, and diversity commitments
• Standards of Conduct of Integrity for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of storms, floods, and other climatic events

Transition Risks

• Greenhouse gas regulation, market shifts towards energy efficiency and low-carbon power sources

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• ATHENA Organizational Leadership Award
• Highest score in 2016 Corporate Equality Index
• J.D. Power awards for customer satisfaction
• Ofgem awards for stakeholder engagement and customer vulnerability
• Solar Portal Power Clean Energy Award
• Fit-Friendly Worksite Community Innovation Award
• Edison Electric Institute’s Safety Excellence Award
• Site Selection magazine’s Top 10 Utilities for economic development

Environmental Metrics

ESG Focus Areas

• Safety and Health
• Customer Focus
• Diversity and Engagement
• Performance Excellence
• Integrity and Openness
• Corporate Citizenship
• Emissions Reduction
• Environmental Stewardship
• Distributed Energy Resources
• Grid Security
• Infrastructure Investments
• Innovation and Technology
• Affordability
• Customer Satisfaction
• Energy Efficiency
• Diversity and Inclusion
• Employee Engagement
• Workforce Development
• Community Investments
• Emergency Preparedness
• Cybersecurity and information protection
• Economic viability
• Governance, compliance and ethics
• Utility industry transformation
• Operational efficiency
• Reliability
• Supply chain

Environmental Achievements

• Overall CO2e emissions dropped by 52 percent from 2010 to 2018
• Reduced SF6 leakage rate by approximately 95 percent since 2011 (PPL Electric)
• Converted 30 percent of bucket trucks to electric lift bucket trucks (PPL Electric)

Social Achievements

• Employees volunteered more than 78,000 hours
• PPL was recognized by Forbes magazine in its first-ever list of America's Best Employers for Diversity
• PPL's Pennsylvania operations received a score of 100 on the 2018 Corporate Equality Index
• PPL's Pennsylvania operations received a high score of 90 percent on the 2018 Disability Equality Index

Governance Achievements

• Implemented an enterprise-wide Supplier Code of Conduct
• Established a robust enterprise risk management (ERM) process
• Phoebe A. Wood was elected to PPL’s Board

Climate Goals & Targets

Environmental Challenges

• Climate change and the transition to a cleaner energy future
• Decreasing energy sales due to customer efficiency and distributed generation
• Cybersecurity threats

Mitigation Strategies

• Strategic restructuring, investments in renewables and distributed energy resources, and investment in new technologies
• Advocating for regulatory structures that support industry transformation (e.g., Pennsylvania Act 58)
• Significant investments in tools, technology, and people to strengthen defensive capabilities

Supply Chain Management

Responsible Procurement

• Enterprise-wide Supplier Code of Conduct
• Active outreach to diverse businesses

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Growth of distributed energy resources, energy storage, and renewable energy

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (WPD)

Third-party Assurance: Internal review by Corporate Audit and Compliance and Ethics departments

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 8
• Goal 9
• Goal 13

PPL's commitments align with these goals through various initiatives described in the report.

Sustainable Products & Innovation

• Safari Energy solar solutions

Awards & Recognition

• Forbes America’s Best Employers
• Forbes America’s Best Employers for Diversity
• Best Place to Work for Disability Inclusion
• Human Rights Campaign Foundation’s Corporate Equality Index (perfect score)
• J.D. Power awards for customer satisfaction (PPL Electric and KU)
• Ofgem awards for customer satisfaction (WPD)

Environmental Metrics

ESG Focus Areas

• Create extraordinary shareowner value
• Drive best-in-sector operational performance
• Advance a cleaner energy future
• Build tomorrow’s energy infrastructure
• Exceed customer expectations
• Foster an exceptional workplace
• Strengthen communities

Environmental Achievements

• Reduced carbon emissions by 56 percent since 2010
• Retired approximately 1,200 megawatts of coal-fired generation in Kentucky
• Invested more than $27 billion over the past decade to strengthen grid resilience and reduce power plant emissions
• 89% of water recycled and reused
• More than 23 million tons of waste materials beneficially used since 2003

Social Achievements

• Launched PPL Electric’s innovative Distributed Energy Resource Management System
• Became the U.K.’s first network operator to publish an electric vehicle strategy
• Consistently ranks among the best companies for customer service in the United States and United Kingdom
• Expanded family leave program
• Contributed more than $1.6 million to relief efforts in Pennsylvania, Kentucky and the U.K.

Governance Achievements

• Maintained strong transmission and distribution reliability
• Increased dividend for the 17th time in 18 years
• Robust enterprise risk management process
• Strong corporate governance practices
• Established a compliance and ethics program founded upon PPL’s Standards of Integrity

Climate Goals & Targets

Environmental Challenges

• Climate change related risks (transition risks, physical risks)
• Cybersecurity threats
• Maintaining grid reliability with the transition to lower emissions technology
• Impacts to grid reliability due to transition to lower emissions technology

Mitigation Strategies

• Integrated resources planning process and engagement with regulators
• Enterprise-wide, risk-based approach to cybersecurity
• Conducting planning studies based on sensitivity analyses
• Infrastructure investments to modernize and strengthen grid
• Investing in grid assets due to severe weather events and increase in distributed generation

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Change in precipitation patterns

Transition Risks

• Increased pricing of GHG emissions
• Mandates on existing products and services
• Impacts to grid reliability

Opportunities

• Investments in grid assets due to severe weather events
• Investments in grid assets due to increase in distributed generation
• Investments in cleaner generation

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001 (WPD)

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action

PPL's commitments support the UNSDGs in their objective to achieve a better world for all.

Sustainable Products & Innovation

• Distributed Energy Resource Management System
• System to safely and automatically cut power to downed lines

Awards & Recognition

• Forbes Magazine as one of America’s Best Employers 2019
• 100% on the 2019 Disability Equality Index
• 100% on the Human Rights Campaign Foundation’s Corporate Equality Index
• J.D. Power awards for customer satisfaction
• Smart Electric Power Alliance’s Investor-Owned Utility of the Year in 2019
• ReliabilityOne™ Most Improved Utility Award
• Association of Edison Illuminating Companies 2019 Achievement Award
• Electric Power Research Institute Technology Transfer Award
• American Gas Association Accident Prevention Award for Safety Excellence
• U.K.’s Customer Service Excellence Award

Environmental Metrics

ESG Focus Areas

• Safety and Health
• Customer Focus
• Diversity, Equity and Inclusion
• Performance Excellence and Innovation
• Integrity and Openness
• Corporate Citizenship
• Reliability
• Decarbonization
• Research and Development
• Infrastructure Investments
• Environmental Stewardship
• Affordability
• Energy Efficiency
• Workforce Diversity and Inclusion
• Employee Engagement
• Human Capital
• Community Support
• Supplier Diversity
• Emergency Preparedness

Environmental Achievements

• Reduced carbon emissions by nearly 60% since 2010
• Added more than 90 megawatts of new solar generation
• Invested more than $3 billion to improve grid resilience and advance a sustainable energy future
• Achieved 84.32% total volume of water recycled and reused as a percentage of total water withdrawal

Social Achievements

• Contributed more than $12 million to support our communities, including more than $2 million in COVID-19 relief
• Adopted an enterprise-wide diversity, equity and inclusion strategy and commitments
• Achieved award-winning customer satisfaction in each of the regions we serve
• Provided electricity and gas safely and reliably to more than 10 million customers

Governance Achievements

• Maintained a strong financial position to weather COVID-19 economic impact
• Initiated the formal process to sell Western Power Distribution, its U.K. utility business

Climate Goals & Targets

Environmental Challenges

• COVID-19 created a public health and economic crisis
• Racism and injustice spurred social unrest
• Supply chain disruptions

Mitigation Strategies

• Employees rallied to keep each other safe and stay connected, to keep power and gas flowing to the families and businesses counting on us each day, and to do our part to assist our customers and communities through these trying times
• Maintained strong financial position
• Implemented robust enterprise risk management process

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI

UN Sustainable Development Goals

• Goal 7: Affordable and Clean Energy
• Goal 13: Climate Action

PPL's commitments support the UNSDGs in the objective to achieve a better world for all.

Awards & Recognition

• J.D. Power Awards for Customer Satisfaction
• Energy Star® Excellence Award
• Honoring Investments in Recruiting and Employing American Military Veterans (HIRE VETS) Medallion Award

Environmental Metrics

ESG Focus Areas

• Create Extraordinary Shareowner Value
• Drive Best-in-Sector Operational Performance
• Advance a Cleaner Energy Future
• Exceed Customer Expectations
• Foster an Exceptional Workforce
• Strengthen Communities

Environmental Achievements

• Reduced carbon emissions nearly 60% from 2010 levels through 2021.
• 71% of coal combustion residuals beneficially reused.
• 84.89% total volume of water recycled and reused as a percentage of total water withdrawal.
• At least 1,000 megawatts of coal plant retirements expected by 2028 and at least an additional 1,000 megawatts by 2035.

Social Achievements

• Increased racial and ethnic diversity in senior leadership by 5%.
• Increased the number of women on the leadership team by 14%.
• Both PPL Electric Utilities and Kentucky Utilities ranked highest in their respective regions and segments for customer satisfaction.
• Contributed more than $12 million to provide support to hundreds of nonprofit organizations.

Governance Achievements

• Increased the percentage of women on the Board of Directors to 30%.
• Increased diversity based on race, ethnicity and nationality on the board of directors to 44%.
• ESG metrics were added to the long-term incentive mix in 2022.

Climate Goals & Targets

Environmental Challenges

• Record number of storms in Pennsylvania (42) and severe tornadoes in Kentucky impacting reliability.
• Transitioning Kentucky generation fleet to cleaner energy sources while ensuring a just transition for employees, customers, and communities.

Mitigation Strategies

• Significant investments in infrastructure improvements to enhance grid reliability and resiliency.
• Implementing dynamic line rating technology to optimize transmission line performance and reduce costs.
• Developing plans for the replacement generation of retiring coal plants.
• Facilitating a just transition for employees, customers, and communities affected by coal plant retirements.

Supply Chain Management

Supplier Audits: 233 diverse business suppliers

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive level

Third-party Assurance: No third-party assurance

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

PPL's commitments support these goals through various initiatives described in the report.

Awards & Recognition

• Forbes 2021 Green Growth 50 list
• Top 50 Companies for Environmental, Social and Governance by DiversityInc
• Energy Star Partner of the Year
• Association of Edison Illuminating Companies Achievement Award
• AGA Industry Leader Accident Prevention Award
• Escalent 2021 Most Trusted Utility Brand in the Nation
• Escalent 2021 Customer Champion
• Best place to work for disability inclusion by Disability Equality Index
• Top utilities in the nation for workplace diversity by DiversityInc.
• Best Place to Work for LGBTQ equality
• Adoption Advocate by The Dave Thomas Foundation for Adoption
• Fleur de Lis Award from Worksite Wellness Council of Louisville
• Top 50 Companies for Environmental, Social and Governance (ESG) by DiversityInc
• Partner in Philanthropy Award
• Emergency Response Award from Edison Electric Institute

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity & Inclusion
• Governance
• Safety
• Customer Experience
• Community Support
• Reliability & Resiliency
• Supply Chain Management

Environmental Achievements

• Reduced carbon emissions nearly 57% from 2010 levels by 2022.
• Avoided more than 187,000 metric tonnes of CO2e in 2022 through energy efficiency programs.
• 72% of coal combustion residuals generated by LG&E and KU were recycled.

Social Achievements

• KU ranked highest in its segment in independent nationwide surveys of electric residential and business customer satisfaction.
• Contributed more than $9 million to various customer assistance programs.
• Employees devoted more than 29,000 volunteer hours to various organizations.
• Increased the number of women in leadership positions to 35%, up from 23.8% in 2020.
• Increased the number of ethnic and racially diverse employees in leadership positions to 16%, up from 8.6% in 2020.

Governance Achievements

• Transparent reporting and oversight earned a trendsetter ranking by the CPA-Zicklin Index.
• One of PPL’s directors obtained certification in cyber risk oversight.

Climate Goals & Targets

Environmental Challenges

• Retiring aging coal generation while maintaining reliability and affordability.
• Managing climate-related risks and opportunities.
• Ensuring supply chain resilience.
• Cybersecurity threats.
• Extreme weather events impacting operations.

Mitigation Strategies

• Proposed generation replacement plan with a mix of cleaner energy resources (natural gas, solar, battery storage).
• Robust enterprise risk management process, including climate-related risk assessment.
• Active engagement with diverse suppliers and implementation of a Supplier Code of Conduct.
• Comprehensive cybersecurity strategy, including regular monitoring, updates, and training.
• Significant investments in grid modernization and resiliency.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Diversity initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of clean energy technologies

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI)

Awards & Recognition

• J.D. Power awards for customer satisfaction
• Human Rights Campaign Corporate Equality Index 100% score
• Newsweek America’s Most Responsible Companies
• AEIC President’s Award

Environmental Metrics

ESG Focus Areas

• Clean energy transition
• Environmental stewardship
• Safety
• Community support
• Customer experience
• Workforce diversity and inclusion
• Governance
• Cybersecurity and grid protection
• Supply chain management
• Affordability
• Reliability & Resiliency

Environmental Achievements

• Reduced carbon emissions nearly 59% from 2010 levels
• Received regulatory approval to retire 600 MW of aging coal generation and replace with cleaner energy mix in Kentucky
• Over 71.9% of coal combustion residuals beneficially used
• 92.01% of total water volume recycled and reused

Social Achievements

• Achieved top-quartile reliability at each utility
• Record reliability for Kentucky and Rhode Island companies
• Company and affiliated foundations donated more than $13.6 million
• Launched Customer Assistance Expos in Rhode Island
• Women held 36% of leadership positions, ethnic and racially diverse employees held 17%

Governance Achievements

• Completed the transition of more than 40% of Rhode Island Energy’s applications onto PPL systems
• Linda G. Sullivan joined PPL’s Board of Directors
• Christine M. Martin appointed president of PPL Electric Utilities Corporation
• Added environmental, social, and governance component to executive long-term incentives

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (increased storm severity, potential wildfires)
• Greenhouse gas regulation increasing electricity costs
• Reduced demand due to energy efficiency and low-carbon sources
• Maintaining reliability and affordability during clean energy transition

Mitigation Strategies

• Investing in grid modernization and resiliency
• Economically retiring aging coal-fired generation
• Investing in R&D and innovative clean energy technologies
• Implementing advanced metering in Rhode Island
• Developing alternative sourcing strategies

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Diversity initiatives

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of storms, floods, and other climatic events
• Wildfires

Transition Risks

• Greenhouse gas regulation increasing electricity costs
• Reduced demand due to energy efficiency and low-carbon sources

Opportunities

• Grid modernization and resiliency investments
• Clean energy technology development and deployment
• Increased demand for renewable energy

Reporting Standards

Frameworks Used: GRI Standards, GRI Electric Utility Sector Supplement, SASB Electric Utilities and Power Generators and Gas Utilities and Distributors Standards, TCFD

Third-party Assurance: No external audit conducted

UN Sustainable Development Goals

• Goal 6 (Clean water and sanitation)
• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation and infrastructure)
• Goal 13 (Climate action)

PPL's mission and initiatives align with these goals through responsible resource management, clean energy investments, workforce development, grid modernization, and decarbonization efforts.

Awards & Recognition

• Charles Steinmetz Top Innovator Award
• Public Utilities Fortnightly ‘Top 20’ U.S. utility in economic development
• Champion of Board Diversity
• Edison Award
• Edison Electric Institute Emergency Response Awards
• ENERGY STAR® Partner of the Year Award
• America’s Greatest Workplaces for Women
• Platinum Award for worksite wellness
• 100% on the 2023 Disability Equality Index
• Top utilities for workforce diversity
• EPRI Technology Transfer Award