Puget Energy, Inc. and Puget Sound Energy, Inc.

Climate Impact & Sustainability Data (2022, 2023, 2023 YTD (as of September 30, 2023))

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

Decarbonization
Clean Energy Transition
Sustainability

Environmental Achievements

Signed agreement to transfer Colstrip coal assets by 12/31/2025
Tacoma LNG became operational in February 2022
Acquired 567MW of renewable resources (Clearwater wind, Golden Hills wind, SPI biomass)
Extended hydro generation contract with Chelan, starting 2031

Social Achievements

MSCI ESG rating upgraded to 'AA' from 'BBB' in May 2022
Release of comprehensive ESG report with increased disclosures (Q1 2023)

Governance Achievements

WUTC approval of settlement on two-year multiyear rate plan
Filed first Clean Energy Implementation Plan

Climate Goals & Targets

Long-term Goals:

Beyond Net Zero commitment

Medium-term Goals:

Meet 2030 renewable and capacity needs (6,700 MW nameplate capacity, nearly 6.3 TWh renewable energy)
Achieve 80% CETA qualifying generation by 2030

Short-term Goals:

WUTC ruling on Clean Energy Implementation Plan by H2 2023
Release comprehensive ESG report (Q1 2023)

Environmental Challenges

Regulatory lag
Increased capital expenditures
Cost of compliance with regulatory and environmental laws
Changes in capital market conditions
Reduction in demand
Low wholesale prices
Operational risks
Hydro and wind conditions
Disruption in fuel supply
Unscheduled power outages

Mitigation Strategies

Implementation of multi-year rate plan
Securing new five-year credit facilities totaling up to $1.6B
Acquisition of renewable resources
Working with Washington Commission to establish cost recovery mechanism for cap and invest program

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

Development of renewable generation and storage

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:63% (target by end of 2025)

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Renewable Energy
Climate Change Mitigation
Clean Transportation
Energy Efficiency
Socio-economic Advancement

Environmental Achievements

Obtained nearly 2300 MW of clean energy resources since 2021.
Targeting 63% renewable energy in its portfolio by the end of 2025 (nearly double its 2020 percentage).

Social Achievements

Partnering with customers through programs like demand response and Community Solar, expanding access to clean energy.
Not disclosed

Governance Achievements

Established a Sustainable Financing Framework in 2023 to guide green bond issuance and allocation.

Climate Goals & Targets

Long-term Goals:

Beyond Net Zero Carbon energy company by 2045.

Medium-term Goals:

Not disclosed

Short-term Goals:

Achieve 63% renewable energy in its portfolio by the end of 2025.

Environmental Challenges

Meeting Washington state's ambitious clean energy laws while maintaining affordability and reliability.

Mitigation Strategies

Aggressively pursuing renewable energy resources and partnering with customers through demand response and Community Solar programs.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

Not disclosed

Transition Risks

Not disclosed

Opportunities

Not disclosed

Reporting Standards

Frameworks Used: Sustainability Bond Guidelines 2021, Green Bond Principles 2021, Social Bond Principles 2021, Green Loan Principles 2023, Social Loan Principles 2023

Certifications: Null

Third-party Assurance: Sustainalytics (second-party opinion)

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

Not disclosed

Reporting Period: 2023 YTD (as of September 30, 2023)

Environmental Metrics

Renewable Energy Share:773 MW of wind resources (2022); 25% of output from Chelan PUD’s Rock Island and Rocky Reach hydropower projects (until 2031), extending to 2051.

ESG Focus Areas

Clean Energy
Climate Change
Wildfire Risk Mitigation
Sustainable Financing

Environmental Achievements

Issued inaugural green bond in May 2023 to fund eligible projects.
Implementing Clean Energy Implementation Plan (CEIP) to meet clean energy goals.
Securing new clean energy resources (wind, solar, hydro).
Progressing towards goals set in the Clean Energy Implementation Plan (CEIP).

Social Achievements

Enhanced ESG report issued in March 2023.
Updated Electric Progress Report and Gas Integrated Resource Plan in March 2023.
Community engagement to educate and inform on Public Safety Power Shutoff (PSPS) planning.
Partnerships with local emergency management and response agencies.

Governance Achievements

Published Sustainable Financing Framework in May 2023.
Credit ratings affirmed by S&P and Moody’s in Q2/Q3 2023.
Successfully settled Transportation Electrification Plan and CEIP tariffs.
Secured tariff for CCA cost recovery.

Climate Goals & Targets

Medium-term Goals:

Achieve 63% renewable energy (CEIP target, uncertainty noted).

Short-term Goals:

Meet or surpass annual goals in 3 out of 4 years in CEIP.

Environmental Challenges

Wildfire risk in service territory.
Climate Commitment Act (CCA) compliance costs.
Managing capital spending and rate base growth.
Potential for litigation related to wildfires.

Mitigation Strategies

Implementing Wildfire Mitigation and Response Plan.
Investing in enhanced vegetation management, system hardening, and fault protection.
Developing PSPS tool and improving situational awareness.
Consigning GHG emission allowances for auction and recovering CCA costs through tariffs.
Actively mitigating risks associated with new legislation.