Forward TOGETHER
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Forward TOGETHER 2020 INTEGRATED REPORT In a year defined by forces and events that threatened to divide us, Entergy’s 13,400 employees came together. One Entergy team, indivisible, united around a common purpose to Power Life and build the Premier Utility. Table of Contents Letter to Stakeholders 2 Prepared for the Extraordinary 7 Our Leadership 14 Our Company 20 Our Utility 29 Our Workplace 53 ICONS TO NOTE Environmental, Social, and Governance 73 In this report, the following icons indicate examples of economic, 2020 Financial Highlights 117 environmental, and social performance that demonstrate the progress we’ve made on 2020 Key Performance Indicators 131 our journey. About This Report 138 Forward-Looking Information and Regulation G Compliance 140 ECONOMIC ENVIRONMENTAL SOCIAL Investor Information 146 1 Forward Together // 2020 Integrated Report LETTER TO STAKEHOLDERS To all our stakeholders: While preparing to write this letter, I was acutely to protect our physical, emotional, and spiritual aware that 2020 would be one of the most wellbeing was to stay apart, hunker down, and analyzed and scrutinized years in modern hope for the best. history, the subject of countless books, essays, films, debates, dissertations, and conversations Thankfully, this mindset did not take hold at for decades to come. Entergy. For a company whose purpose is serving others, it became apparent early on that the The task of describing a year like no other seemed only response to division was unity. Our ability to a bit overwhelming at first. From a personal stay connected and united around a common and professional standpoint, I had never seen purpose, grounded in our core values, helped anything like it in my more than six decades on us stay true to ourselves and our legacy of service. the planet, and in many ways, I’m still processing United by our vision to power the lives of those the experience. we serve, we focused relentlessly on our mission — creating sustainable value for customers, Telling Entergy’s 2020 story is a responsibility I communities, employees, and owners. am humbled by, and thankful for, because I am speaking on behalf of a team of employees who To those who say there was no way to prepare for managed to make extraordinary things happen. 2020, all I can tell you is that the 13,400 women and men of Entergy were prepared. Whatever In my efforts to sum up the year, I find myself 2020 threw at us, we didn’t back down. Whenever looking at it through two lenses: the first is how we encountered obstacles, we stuck together the year tried to divide us, and the second is how and worked through each day as one team. By we chose to respond. choosing unity over division and estrangement, we delivered on our strategic, operational, and As for division, beyond any measure it was a year financial commitments, despite the challenges. defined by forces and events that threatened to pull us apart: That’s what our stakeholders expect from us. And that’s what it takes to be the premier utility. • A frightening pandemic separated us from our families, friends, and co-workers; “To those who say there was • Social and political unrest polarized our Prepared for the no way to prepare for 2020, nation; and all I can tell you is that the • Catastrophic storms disrupted lives and COVID-19 Pandemic devastated communities. 13,400 women and men of Preparing for the unexpected has long been a Entergy were prepared.” hallmark of Entergy’s success. Well before the These challenges took a profound toll on our lives — Leo P. Denault, Chairman of the novel coronavirus was an actuality, we had a and introduced new fears and uncertainties about Board and Chief Executive Officer the future. At times, it seemed like the best way detailed pandemic response plan in place. 2 Forward Together // 2020 Integrated Report LETTER TO STAKEHOLDERS In January of 2020, we activated our plan and and employee volunteerism provided relief for mobilized teams with four primary objectives: families in crisis. Through grants to more than 80 In 2020, our employees also (1) ensuring the safety and wellness of our nonprofits, we provided food, rent and mortgage demonstrated once again employees; (2) maintaining safe, reliable service assistance, utility assistance, emergency grants, for our customers; (3) supporting our communities and workforce training for those who were laid off why Entergy is best-in- through volunteerism and financial resources; as a result of the pandemic. class in storm response. and (4) mitigating financial impacts to the company. Entergy’s extensive preparations allowed us to Prepared for a Record-Breaking quickly adapt to new working arrangements, with much of our workforce telecommuting. For field Storm Season employees and others for whom telecommuting was not an option, we made sure they were In 2020, our employees also demonstrated once equipped with tools and resources to ensure their again why Entergy is best-in-class in storm safety on and off the job while keeping the lights response. During a storm season unlike any on and the gas flowing for our customers. other in our history, their commitment to health, safety, and preparedness was one of our During uncertain times, our unity and continuity proudest achievements. mattered more than ever. When five named storms devastated portions of our service area — including Hurricane Laura, The energy we supplied in 2020 was an essential, the strongest storm to hit Louisiana in over 160 stabilizing necessity that made it possible for years — our storm-response teams worked hospitals, nursing homes, healthcare clinics, and a around the clock to safely restore service, rebuild broad range of medical providers to carry out their infrastructure, and help our communities recover, lifesaving mission in communities throughout our all while following virus-prevention protocols. service area. To ensure our communities had access to critical Our energy kept the supply chain in motion, resources after hurricanes Laura, Delta, and Zeta, making it possible for grocery stores, pharmacies, we deployed 82 generators — equal to more than relief agencies, emergency responders, and other 43 MW of power — across the region, including critical entities to provide vital supplies and services underserved areas. to keep our communities moving forward. When Hurricane Zeta struck the Gulf Coast in With many families homebound during the late October, we faced an additional challenge pandemic, our energy powered remote offices of ensuring that polling places had power by and classrooms while helping our customers stay Election Day. Partnering with state and local connected to one another and the outside world. governments, we deployed more than 200 power pods across six Louisiana parishes to ensure When the pandemic created economic hardships every polling place was operational. in our communities, our philanthropic support 3 Forward Together // 2020 Integrated Report LETTER TO STAKEHOLDERS Widespread storm damage deepened the crisis to renewable energy across our service area for many communities already struggling from under a framework that balances reliability, impacts of the pandemic. In addition to restoring affordability, and environmental stewardship. power and rebuilding infrastructure, Entergy led economic recovery efforts through charitable We’re also exploring emerging technologies and donations and volunteer support that helped innovative partnerships to accelerate our net-zero our communities build back. carbon emissions actions, most recently through a partnership with Mitsubishi Power. We are focused on advancing technologies and expertise Leading on Environmental to co-fire our generation with hydrogen. Stewardship We are working today to make this a reality. With the selection of the Orange County Power Station, Entergy’s environmental leadership is well- a self-build project in Southeast Texas, we will established, and 2020 was another milestone develop a state-of-the-art generation facility year in our efforts to combat climate change. with the option to be powered partially or fully After more than two decades of setting and with hydrogen. Additionally, we’re exploring the achieving voluntary emission-reduction targets, potential use of carbon capture and sequestration we intensified our commitment to achieve once that technology is economically available. net-zero carbon emissions by 2050. Being a premier utility means doing our part Our longstanding commitment to sustainability to create a more sustainable future for our has led to measurable, undeniable results: customers, communities, and the world — a goal we are continuously striving for in all aspects of • For the past two decades, our emission rate our operations. has been well below the sector average, • Our utility CO2 emission rate has decreased approximately 37% since 2000, and Championing Diversity, Inclusion, • Today we operate one of the cleanest large- and Belonging After more than two decades scale power generating fleets in the nation. of setting and achieving For Entergy, keeping the power on and gas voluntary emission-reduction We know that creating a carbon-free future calls flowing is just part of what we do. Our focus on for more investments in renewables. Entergy is diversity, inclusion, and belonging is also a critical targets, we intensified our already the largest utility provider of renewable business imperative, and our ability to deliver commitment to achieve energy in Arkansas and Louisiana, and we’re sustainable value to our stakeholders now and in building the largest utility-owned solar facility in the future depends on it. net-zero carbon emissions Mississippi. We’re working with our regulators by 2050. and stakeholders to responsibly expand access 4 Forward Together // 2020 Integrated Report LETTER TO STAKEHOLDERS We strategically elevated diversity, inclusion, Challenges and headwinds are a natural part of and belonging as one of our corporate priorities doing business. No company is immune, no utility in 2018. As part of our efforts, we’ve delivered is immune, and Entergy is no exception.