Transparency & Progress: 2016 NRG Sustainability Report

Today we publish our 2016 Sustainability report and mark another year filled with firsts for NRG in the U.S. power industry. As corporations and states continue to demand lower-carbon energy – facilitated by rapid technology advancements – the 2016 NRG Sustainability report showcases our commitment to transparency while highlighting the milestones we achieved as we continue to deliver value to our stakeholders.

In our seventh annual Sustainability report, we track and report against key indicators that we believe will make us more competitive, resilient and attractive to investors and talent in the near and long-term.

In this year’s report, we are pleased to share that NRG is:

• 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 and Standards Pioneers Program
• First U.S.-based power producer to publish a Sustainability Accounting Standards Board (SASB) table along with the sustainability report
• First U.S.-based power producer to sign on to the United Nations Women’s Empowerment Principles

Beyond reporting for transparency, sustainability and sustainable business practices make good business sense. According to Bloomberg New Energy Finance, seven out of the ten largest quoted companies in the world have targets to source 100 percent of their electricity from renewables. As NRG Vice President of Sustainability Bruno Sarda puts it, “it’s time to take the sustainability conversation beyond environmental consequences and begin focusing on the economic opportunity.”

In 2014, we set industry-leading, science-based, absolute greenhouse gas reduction goals including to cut emissions 50 percent by 2030 and 90 percent by 2050 from a 2014 baseline.

Today we are pleased to announce additional sustainability goals, which will help us better track and communicate our progress with customers, investors and other stakeholders.

Our new, additional goals include to:

• Reduce water use 40% by 2030⁽¹⁾
• Increase recycling rate of coal combustion residuals 30% by 2022⁽²⁾
• Help customers avoid 120 Million Mt CO2e emissions by 2020⁽³⁾
• Reduce supply chain carbon and water intensity 25% by 2025⁽⁴⁾

Sustainability at NRG is a business opportunity to meet evolving market demands in a rapidly changing industry. These new goals are expected to improve operations both up and downstream, fostering the beneficial use of waste and water and holding suppliers to the same standards that our customers ask of us.

Follow us on this journey to a clean energy future. To download the complete 2016 NRG Sustainability report, go to nrg.com/sustainability.

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⁽¹⁾ Reduce water use 40% by 2030 from a 2014 baseline. Water use is defined as water withdrawal by our power-generation assets for the purpose of electricity production and consumption of potable and municipal water at our offices and small plants.

⁽²⁾ Baseline will be established in 2017. Coal combustion residuals include a number of byproducts produced from burning coal for electricity, including fly ash and bottom ash.

⁽³⁾ This is a cumulative absolute number based on the total renewable megawatt-hours generated by our Renewables, Business Solutions and Green Mountain Energy businesses.

⁽⁴⁾ Baseline development is under way.