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Sustainability Plan 2021-25 Advancing the ESG Foundational Pillar of VISION2030 03 11 28 50 63 INTRODUCTION ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX

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Sustainability Plan 2021-25 Advancing the ESG Foundational Pillar of VISION2030 03 11 28 50 63 INTRODUCTION ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX Sustainability Plan 2021-25 Advancing the ESG Foundational Pillar of VISION2030 03 11 28 50 63 INTRODUCTION ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 04 About this 12 Climate Change 29 Health & Safety 51 Enterprise Risk 65 2020 Sustainability Plan & GHG Emissions & Resilience Sustainability 32 Employee Report Metrics 06 Sustainability 15 Renewable Development 54 Regulatory Governance Energy & Management 66 Glossary Energy Storage 35 Diversity, Equity & Compliance 08 VISION2030 & Inclusion 18 Energy 58 Cyber & Physical 09 Materiality Reliability 37 Community Security Assessment Engagement 20 Energy 61 Supply Chain 09 ESG Focus Areas Efficiency & 42 Access & & Procurement Electrification Affordability Practices 23 Environmental 46 Economic Stewardship Development NYPA.GOV | 2 Introduction NYPA.GOV | 3 About this Sustainability Plan OVERVIEW AND SCOPE to meet the present and future The New York Power Authority’s needs of our stakeholders and (NYPA) mission is to lead the enhance long-term environmental, transition to a carbon-free, social, governance and economic economically vibrant New York performance. through customer partnerships, innovative energy solutions, and the This 2021-2025 Sustainability responsible supply of affordable, Plan serves as a road map to help clean and reliable electricity. bring this ambition to life. The Plan outlines the steps NYPA and our VISION2030, NYPA’s ten-year subsidiary, the New York State Canal strategic plan approved in Corporation (Canals), are committed December 2020, identifies five to taking to advance sustainability key strategic priorities we must act efforts across 15 material ESG focus on to realize our ambition. As a areas over 2021-2025. foundational pillar of VISION2030, ESG (Environmental, Social, PURPOSE Governance) is viewed as an This plan describes the goals and enterprise-wide effort that is critical strategies that we have identified to accomplish our mission. for each of our 15 material ESG topics, in alignment with VISION2030, NYPA’s ESG ambition is to deliver on industry leading practices and a best-in-class sustainability strategy New York State policy. SUSTAINABILITY PLAN | INTRODUCTION NYPA.GOV | 4 CLCPA TARGETS 70% 100% RENEWABLE ZERO CARBON ENERGY ELECTRICITY BY 2030 BY 2040 40% 85% REDUCTION IN REDUCTION IN GHG EMISSIONS GHG EMISSIONS BY 2030 BY 2050 35% 6 GW BENEFITS TO DISTRIBUTED DISADVANTAGED SOLAR COMMUNITIES BY 2025 The strategies contained in this plan reflect numer- and department leaders across the organization, ous inputs, including the Intergovernmental Panel including the Sustainability Advisory Council 3 GW 9 GW on Climate Change’s (IPCC) Special Report on (SAC), subject matter experts and other key ENERGY OFFSHORE Global Warming of 1.5° C and the United Nations stakeholders. It is a living document that will STORAGE WIND Sustainable Development Goals (UN SDGs). evolve as necessary to align with VISION2030 BY 2030 BY 2035 Further, we recognize NYPA’s pivotal role in implementation. achieving the state’s bold sustainability agenda, and have aligned our ambitions to New York State’s Beginning in 2021, NYPA will publish an annual Climate Leadership and Community Protection Sustainability Report to communicate our Act (CLCPA). progress, highlighting key ESG achievements and transparently disclosing performance The Sustainability Plan has been developed metrics in alignment with leading ESG reporting with guidance and input from business units and disclosure frameworks and standards. SUSTAINABILITY PLAN | INTRODUCTION NYPA.GOV | 5 Sustainability Governance ENSURING EFFECTIVE, > Board of Trustees: provides the IMPACT-DRIVEN MANAGEMENT vision and oversight on strategic AND OVERSIGHT ESG priorities and oversees policies, programs and perfor- NYPA and Canals recognize the mance related to sustainability. importance of strong governance to achieving our sustainability > Chief Executive Officer (CEO) goals and rely on clear policies, and Executive Management practices and controls to guide Committee (EMC): lead and guide our sustainability efforts. the management of ESG strategy and goal setting, supporting the Our Sustainability Policy defines board’s governance of ESG-related responsibilities for ESG planning, issues and ensuring the achieve- executing, monitoring and reporting, ment of goals identified in the and calls for the creation of Sustainability Plan. long-term and annual action plans for program implementation. > EMC’s ESG Sponsors: support the board’s governance of ESG-related NYPA and Canals’ inclusive sustain- issues and work directly with the ability governance framework Sustainability Department to applies to leadership at the highest provide guidance on sustainability levels of the organization and spans strategy, goal setting and reporting. across all key business units to ensure accountability for our actions > Sustainability Department: and performance. provides strategic direction, oversight and reporting for ESG Key stakeholders in this evolving issues, including spearheading the oversight and management struc- development of the Sustainability ture include, but are not limited to: Plan. Sustainability engages with SUSTAINABILITY PLAN | INTRODUCTION NYPA.GOV | 6 the EMC, to which it reports, and reporting cycle, NYPA and Canals the SAC on plan development are committed to publishing an and implementation and provides annual Sustainability Report, support to business units on in alignment with the reporting day-to-day execution. requirements of the Global Reporting Initiative (GRI) and > Sustainability Advisory Sustainability Accounting Council (SAC): serves as the Standards Board (SASB). We cross-functional collaborative have also included our approach body to manage ESG-related to integrating the Task Force efforts and ensure successful on Climate-Related Financial implementation of the goals, Disclosures (TCFD), and plan to targets and strategies outlined further expand our disclosures in the Sustainability Plan. The in future years as our reporting SAC consists of heads of all journey progresses—with the relevant departments. ambition to become among the first U.S. utilities and REPORTING AND DISCLOSURE government entities to issue To ensure accountability and trans- an integrated report for the parency, NYPA and Canals will 2022 reporting cycle. report and disclose comprehensive data related to the implementation NYPA and Canals will also expand of sustainability goals. voluntary data disclosure efforts to share ESG progress, such as This approach to sustainability through The Climate Registry (TCR). performance management and reporting will evolve to ensure the most relevant data is accurately NYPA and Canals aspire to and consistently captured and become among the first leveraged for decision-making U.S. utilities and government across the organization. NYPA entities to issue an is developing a robust data integrated report for the management system to support 2022 reporting cycle. this effort. Central to our ESG disclosure efforts is the annual Sustainability Report. Starting with the 2020 SUSTAINABILITY PLAN | INTRODUCTION NYPA.GOV | 7 VISION2030 VISION A thriving, resilient New York State powered by clean energy NYPA and Canals’ 10-year strategic plan provides a roadmap to bring about our vision of a thriving, resilient New York State powered by clean energy. ESG is embedded as an essential element of the strategy. MISSION Lead the transition to a carbon-free, economically vibrant New York through customer partnerships, VISION2030 details NYPA and Canals’ plans to: innovative energy solutions and the responsible supply of affordable, clean and reliable electricity. > Preserve and enhance the value of our hydro- power assets as a core source of carbon-free power and of flexibility and resilience as the STRATEGIC PRIORITIES state’s grid evolves > Pioneer the path to decarbonization by acting Preserve and Pioneer the path Be the leading Partner with our Reimagine the New as a test-bed for innovation enhance the value to decarbonize transmission customers and the York State Canal > Be the leading transmission developer, of hydropower natural gas plants developer, owner state to meet their System for econom- and operator for energy goals ic and recreational owner and operator for New York State and New York State benefit its changing needs > Partner with our customers and the state to meet their energy goals > Repurpose the New York Canal System for the FOUNDATIONAL PILLARS economic and recreational benefit of New Yorkers while driving operational efficiency Environmental, Social & Diversity, Equity Resource Digitization Governance & Inclusion Resilience Alignment ESG is recognized as a foundational pillar in VISION2030, reflecting its role as a central element of our strategy. Other foundational pillars include Diversity, Equity & Inclusion (DEI), Enterprise Resilience, Digitization and Resource Alignment. SUSTAINABILITY PLAN | INTRODUCTION NYPA.GOV | 8 Materiality Assessment ESG Focus Areas In accordance with GRI Reporting Principles and the AA1000 AccountAbility The Sustainability Plan addresses each of the 15 material ESG areas in detail. Principles, development of this Sustainability Plan began with a review of Topic sections are grouped into the categories Environmental, Social and NYPA and Canals’ material ESG topics. This assessment included an analysis Governance and each section follows a similar structure. of peer practices, industry trends and priorities, regulations, and sustainability and industry frameworks and standards–bolstered
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