Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced air emissions significantly from 2006 to 2017 (-48.3% SO2, -73.7% NOx, -17% CO2, -60% Hg)
• Closed three coal-fired power plants, reducing future emissions
• Purchased and constructed Upton 2 Solar Facility (Texas' largest operating solar facility)
• Reclaimed over 80,000 acres of land for various uses
• Planted over 41 million native trees as part of reclamation program

Social Achievements

• Raised over $1.5 million for United Way and TXU Energy AidSM campaign in 2017
• Employees volunteered over 5,000 hours through Energy in Action program
• Awarded the Spirit of Caring Award from the United Way of Metropolitan Dallas
• Supported veterans through American Corporate Partners and a mentoring program
• Implemented employee wellness initiatives, including a fitness center and participation in running events

Governance Achievements

• Implemented three additional standing committees: Management Committee, Commitments Committee, and Risk Management Committee
• Board of Directors with diverse experience providing guidance and governance
• Established Board Committees: Audit, Compensation, and Nominating and Governance Committees

Climate Goals & Targets

Environmental Challenges

• Transitioning generation fleet from coal to more efficient and lower-emitting sources (natural gas, renewables)
• Balancing economic viability with environmental responsibility
• Managing the impact of changing environmental regulations

Mitigation Strategies

• Investing billions of dollars to control emissions and improve efficiency
• Disciplined investments in new technologies (renewables, batteries)
• Strategic acquisitions to diversify generation portfolio
• Closing older, less efficient coal plants

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Changing environmental regulations
• Market shifts towards renewable energy

Opportunities

• Development of renewable energy projects and battery storage

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Vistra's efforts to provide affordable and reliable power, invest in renewable energy, and reduce emissions align with these goals.

Sustainable Products & Innovation

• TXU Energy Free Nights & Solar Days
• TXU Energy Free Nights
• TXU Solar Club
• TXU Solar from SunPower
• TXU Energy Renewables Buybacks
• TXU Energy GreenUp

Awards & Recognition

• Spirit of Caring Award from the United Way of Metropolitan Dallas
• Over 90 awards for reclamation excellence from Luminant

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Renewable Energy
• Community Relations
• Employee Well-being

Environmental Achievements

• Achieved a 39% reduction in greenhouse gas emissions since 2010 (78% of its target to reduce Scope 1 CO2 equivalent emissions by more than 50% by 2030).
• Retired four coal plants totaling approximately 2,000 MWs in Illinois and announced plans to retire a fifth coal plant of 585 MWs by year-end 2022.
• Retired nearly 13,000 MWs of coal-fueled plants since 2010 and plans to retire an additional approximately 7,000 MWs before 2030.
• Continuing development of nearly 450 MWs of battery storage and with a pipeline of approximately 3,000 MWs of additional solar and battery storage projects in Texas and California.

Social Achievements

• Introduced a new safety mindset: 'Best Defense'.
• Implemented new procedures to keep employees and contractors safe during COVID-19 (no infections reported after 86 maintenance outages).
• Supported local communities across 11 states with more than $3.5 million in charitable giving in 2019.
• Donated $2 million to communities in need in 2020 due to COVID-19.

Governance Achievements

• Joined the Climate Leadership Council (CLC).

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: SASB, GRI

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

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

Environmental Achievements

• 45% reduction in CO2e emissions since 2010 (76% of 2030 target achieved)
• Accelerated GHG emissions reduction targets: 60% reduction by 2030, net-zero by 2050
• Retired over 12,000 MW of coal and gas plants by year-end 2020, with plans to retire nearly 8,000 MW more by 2027
• Launched Vistra Zero, a portfolio of ~4,000 MW of zero-carbon generation online or under development
• Developed nearly 600 MW of solar generation facilities in Texas (expected to begin commercial operations during 2021-2022)
• Announced the planned development of ~440 MW/1760 MWh of various energy storage systems (ESS) in California
• Moss Landing Energy Storage Facility (largest ESS of its kind in the world) connected to the power grid and began operating

Social Achievements

• Enhanced Diversity, Equity, and Inclusion (DEI) program, including appointing a chief diversity officer and creating a DEI advisory council
• Declassified board of directors
• Implemented procedures to protect employees and mitigate impacts of COVID-19 on business
• Committed $2 million in COVID-19 relief, $10 million for organizations working for social justice and equity, and $5 million for Texas communities and customers impacted by Winter Storm Uri
• Increased board diversity (3/10 women, 2/10 ethnically diverse)
• Launched several initiatives to enhance diversity, equity, and inclusion
• Launched a formal mentoring program
• Maintained customer service levels at all-time highs during the COVID-19 pandemic
• Provided flexible payment options for customers impacted by COVID-19

Governance Achievements

• Adopted a sustainability governance framework with Board oversight
• Obtained stockholder approval and amended company’s charter to declassify the board and adopt annual elections for directors
• Implemented a new ESG Index as part of Vistra’s 2021 Executive Annual Incentive Plan (10% weighting)
• Provided more transparency to ESG disclosures by adopting SASB and GRI frameworks and completing CDP’s climate change questionnaire

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Winter Storm Uri
• Supply chain disruptions
• Climate-related risks (physical and transition risks)

Mitigation Strategies

• Created a COVID-19 taskforce and implemented preventive measures (temperature testing, PPE, social distancing, work-from-home policy)
• Maintained power generation during Winter Storm Uri and donated $5 million to support communities and customers
• Secured critical PPE and supplies during the COVID-19 pandemic
• Developed alternative sourcing strategies
• Robust enterprise risk management framework to manage climate-related risks

Supply Chain Management

Supplier Audits: ~36% of spend in 2021

Responsible Procurement

• Supplier code of conduct
• Traceability for raw materials (batteries and solar panels)
• Recycling requirements for batteries and solar panels

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy and energy storage

Reporting Standards

Frameworks Used: GRI Standards, Core Option, SASB disclosures for Electric Utilities and Power Generators, TCFD

Certifications: Energy Star (corporate headquarters and regional offices), LEED (some facilities), BOMA 360 (some facilities), IREM CSP (some facilities), American Tree Farm System (Luminant operations)

Third-party Assurance: Deloitte & Touche LLP (limited assurance on Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 8 (Decent Work and Economic Growth)
• 11 (Sustainable Cities and Communities)
• 15 (Life on Land)

Vistra's business activities align with these SDGs through renewable energy investments, employee development programs, sustainable facilities, and land reclamation efforts.

Sustainable Products & Innovation

• Renewable energy plans (TXU Energy)
• Energy efficiency products and services (TXU Energy)
• EV charging plan (TXU Energy)
• HVAC services (TXU Energy)
• Smart meter and disaggregation (TXU Energy)
• TXU iTHERMOSTAT™ (TXU Energy)
• MyEnergy Dashboard (TXU Energy)
• Greenback program (Vistra Retail)
• TXU Reduction Rewards (TXU Energy)
• Digital dashboards (Vistra Retail)

Awards & Recognition

• Energy Star
• LEED
• BOMA 360
• IREM CSP
• American Tree Farm System
• Texan by Nature 20
• Sentinels of Safety Award (Kosse Mine)
• Various supplier diversity awards

Environmental Metrics

ESG Focus Areas

• Emissions
• Water
• Waste and Coal Ash Management
• Energy Management
• Environmental Compliance
• Climate Change
• Diversity, Equity, and Inclusion
• Development and Training
• Employee Engagement
• Workforce Safety
• Nuclear Safety and Emergency Management
• Customer Experience
• Community Giving
• Just Transition
• Corporate Governance
• Economic Performance
• Cybersecurity
• Supply Chain Management
• Public Policy

Environmental Achievements

• 60% reduction in Scope 1 and Scope 2 CO2 equivalent (CO2e) emissions by 2030, as compared to a 2010 baseline (72% of goal achieved through 2021)
• 43% reduction in GHG emissions since 2010
• Reduced carbon emissions by 1.6 million tons per year through AI-powered Heat Rate Optimizer
• Nearly 3 million tons of coal combustion byproducts beneficially reused
• 86,000 acres of land reclaimed

Social Achievements

• 100% completion of annual Code of Conduct training in 2021
• Launched numerous DEI programs based on employee feedback from listening sessions
• Increased diversity in hiring through skills-based hiring, diverse interview panels, and hiring manager training
• Donated nearly $2.4 million to non-profit organizations
• Provided $4.5 million in funds through Energy Aid programs

Governance Achievements

• Incorporated an ESG Index (10% weighting) into executive compensation scorecard
• Established oversight of DEI by the Social Responsibility and Compensation Committee of the board of directors
• Resumed membership with the Electric Utility Industry Sustainable Supply Chain Alliance (EUISSCA)

Climate Goals & Targets

Environmental Challenges

• Higher 2021 emissions than 2020 due to increased electricity demand post-COVID
• Water scarcity in some operating regions
• Impacts of Winter Storm Uri on supply chain

Mitigation Strategies

• Announced coal plant retirements to achieve 2030 emissions reduction goal
• Investment in innovation and operational improvements
• Site-specific water conservation measures at power plants
• Collaboration with TxDOT and diverse suppliers to address Winter Storm Uri challenges

Supply Chain Management

Supplier Audits: 67 suppliers reporting ESG performance (23% of spend)

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Opportunities

• Growth of zero-carbon generation portfolio

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Third-party Assurance: Deloitte & Touche LLP (limited assurance for Scope 1 and 2 GHG emissions)

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 11
• SDG 15

Alignment with UN SDGs is described in the report.

Sustainable Products & Innovation

• Renewable electricity plans
• Rooftop solar and home batteries
• EV charging stations

Awards & Recognition

• Texan by Nature 20 honoree
• Excellence in Surface Coal Mining Reclamation Award
• Best Corporation for Veteran Business Enterprise
• Platinum Top Corporation Award from WBENC

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Safety
• Community Investment
• Responsible Business Practices

Environmental Achievements

• Achieved 75% of the 2030 target of reducing Scope 1 and Scope 2 GHG emissions by 60% (compared to a 2010 baseline); expect to achieve 80% by year-end 2023
• Continued focus on water conservation and recycling at power plants, achieving target to consume less than 2% of withdrawn water
• Retirement of three coal plants totaling 2,887 MW; decommissioned more than 15,000 MW of coal and gas plants since 2010
• Brought online more than 400 megawatts of solar and energy storage in Texas and announced expansion of Moss Landing Energy Storage Facility

Social Achievements

• Launched an online Learning Management System with courses on diversity, leadership development, etc.
• Continued development of inclusive leaders through mentoring program and external diversity training
• Maintained 13 Employee Resource Groups (ERGs)
• Centralized internship program within DEI to ensure a diverse pool of interns
• Operated for a third year without any serious injuries to employees or contractors
• Completed nearly 46,000 safety training courses and 52,000 proactive safety engagements

Governance Achievements

• Increased the number of suppliers reporting their ESG performance from 67 to 109 (48% of Vistra's spend)
• Named a Forefront 50 Top Corporation by the National Minority Development Council
• Ranked #1 for shareholders and governance in the utilities industry by JUST Capital and CNBC
• Received a perfect score on Disability:IN's Disability Equality Index
• Advanced partnership with Department of Defense Skillbridge

Climate Goals & Targets

Supply Chain Management

Supplier Audits: Increased number of suppliers reporting ESG performance from 67 to 109

Responsible Procurement

• Increased supplier ESG reporting

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Sustainable Products & Innovation

• TXU Energy Free EV Miles

Awards & Recognition

• Texan by Nature 20 designation (3 years in a row)
• Forefront 50 Top Corporation by the National Minority Development Council
• Ranked #1 for shareholders and governance in utilities by JUST Capital and CNBC
• Perfect score on Disability:IN's Disability Equality Index

Environmental Metrics

ESG Focus Areas

• Emissions
• Water
• Waste and Coal Ash Management
• Energy Management
• Environmental Compliance
• Climate Change
• Biodiversity
• Diversity, Equity, and Inclusion
• Development and Training
• Employee Engagement
• Workforce Safety
• Nuclear Safety and Emergency Management
• Reliable Power
• Affordable Power
• Customer Experience
• Community Giving
• Just Transition
• Corporate Governance
• Economic Performance
• Cybersecurity
• Supply Chain Management
• Public Policy

Environmental Achievements

• Overall CO2e emissions decreased year-over-year, achieving 50% reduction from a 2010 base year by the end of 2023. This is 80% of the way to achieving the 2030 emissions targets.
• Nitrogen oxide (NOx) emissions are down more than 60% compared to 2010, including an 18% reduction year-over-year.
• Sulfur dioxide (SO2) emissions have plunged more than 90% since 2010, including a 44% decrease from 2022 levels.
• Nearly 3 million tons of coal combustion byproducts beneficially reused.
• 90% average recycling rate for wastes such as metals, universal waste, e-waste, and used oils.
• Significant reductions in nearly all categories of waste from 2022 to 2023.

Social Achievements

• Donated $10 million to non-profits supporting community needs, local economies, education, and energy bill payment assistance.
• Employees contributed thousands of volunteer hours.
• Employees and the company raised over $1.8 million for the 2023 United Way campaign.
• Expanded suite of green products and services to support customer sustainability goals.
• Implemented updated recruiting and hiring practices, DEI training and reporting enhancements, and supplier diversity expansion.

Governance Achievements

• Incorporated ESG metrics into corporate scorecard, aligning executive and employee compensation with ESG and DEI goals (10% weighting).
• Published a TCFD-aligned Climate Report.
• Completed first materiality assessment, aligning stakeholder priorities with current sustainability strategy.

Climate Goals & Targets

Environmental Challenges

• Balancing reliability and affordability with sustainability goals.
• Supply chain disruptions.
• Managing climate-related risks (physical and transition).

Mitigation Strategies

• Investing in efficient natural gas, solar, nuclear, and battery energy storage assets.
• Developing alternative sourcing strategies.
• Implementing a robust risk management process, including climate scenario analysis.
• Developing actionable plans to renew retired coal plant sites by installing zero-carbon, utility-scale renewable generation assets (Retire and Renew initiative).

Supply Chain Management

Supplier Audits: 81% of suppliers (by spend) audited by third-party.

Responsible Procurement

• Supplier Code of Conduct
• Ethical supply chain contract language
• ESG data collection from suppliers
• Collaboration with Sustainable Supply Chain Alliance (SSCA)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in zero-carbon generation
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Third-party Assurance: Third-party review engagement (limited assurance) on Scope 1 and Scope 2 GHG emissions.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 15 (Life on land)

Vistra's initiatives contribute to these goals through renewable energy development, job creation, community investment, and land reclamation.

Sustainable Products & Innovation

• Green retail products and services
• Rooftop solar systems and batteries

Awards & Recognition

• Time Magazine's Best Companies for Future Leaders
• NaVOBA Best Corporation for Veteran Business Enterprise
• NMSDC Forefront 25 Top Corporation
• WBENC Top Corporation Award
• DFWMSDC Buy Those That Buy Us Corporation
• NTX Disability Corporate Partner of the Year