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OUR SOCIAL APPROACH

Our social approach is grounded in our belief that not only our products, but our people, are key to a better business and a better society.

Energy is essential to modern living, We seek a workforce that is comprised reduced poverty, longer lives and of diverse backgrounds, thoughts and powerful economies. Within the energy experiences. Our company strives to mix, fossil fuels satisfy approximately attract and retain the best people, 80 percent of the world’s primary develop their potential and align energy demand. Thermal coal fuels their skills to important initiatives more of the world’s electricity than and activities. We believe in fostering any other source with advantages in an inclusive work environment cost, scale and reliability. Thermal coal built on mutual trust, respect and is also an important source of energy engagement. And we invest in our for the global production of cement employees through health and wellness used in concrete, and metallurgical programs, competitive total rewards coal is a required component in new and development opportunities. The steel production. Together, steel and company’s inclusion programs are concrete provide key construction formalized in policy and practice materials for building resilient and are embedded in our Equal infrastructure including skyscrapers Employment Opportunity policy and communications and transportation and our Code of Business Conduct systems that support industrialization and Ethics. and urbanization. Simply put, we Empowered employees have the believe our product is beneficial to ability to empower others. Across our society, and our company is valuable to global platform, we work to improve our many stakeholders. lives through economic benefits, At Peabody, we begin by creating targeted corporate giving and valuable a strong, united workforce with a volunteer hours in support of energy, commitment to safety as a way of life. the environment and those causes most Safety is our first value and leading significant to the communities in which measure of excellence, and our we operate. governing Safety Principles apply to our employees, contractors, visitors and vendors at our sites, and to any location where an employee is engaged in work activities. We approach safety with both vigilance and humility, understanding Target #4 that incident-free workplaces can be Protect against achieved only by accountability and work‑related continuous improvement at all levels fatalities. North Antelope Rochelle Mine of our organization.

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Global Safety Results Peabody Global TRIFR Compared to In 2018, Peabody reported a global Other U.S. Industries Total Recordable Injury Frequency Rate (TRIFR) of 1.45 per 200,000 hours worked. This compares favorably to 3.70 coal mining industry averages in both the U.S. and Australia, which totaled 3.7 and 3.2, respectively.25,26

Globally, Peabody decreased its TRIFR 1.45 for surface operations to 0.84 per 200,000 hours worked in 2018, an improvement from the 0.94 recorded for 2017. The global underground incidence rate for 2018 was 3.35 versus Financial Information Professional Peabody Utilities Providing Service Trade Wholesale Construction Retail Trade Leisure/Hospitality Manufacturing Mining Coal Services Educational/Healthcare Transportation/Warehousing State and Local Government Agriculture/Forestry/Fishing/Hunting Administration Public 2.88 in 2017.

Our U.S.-based operations improved specifications for hydraulic hoses and 12 percent from 2017 levels with a improving fire suppression systems in TRIFR of 1.42. Our Australian operations haul trucks, among others. reported a 2018 incidence rate of 1.59 compared to 1.19 in the prior year. We continue to take actions across the enterprise that go beyond federal Several Peabody mines achieved requirements in order to ensure the outstanding safety results in 2018. In safety of our employees. the U.S., the North Complex, which includes the Caballo and Rawhide mines in Wyoming, had only one reportable Safety a Way of Life injury in 2018. In addition, the North President Australia George J. Schuller Jr. delivers safety presentation at Metropolitan Mine. Antelope Rochelle Mine in Wyoming, Peabody believes all team members which is the world’s largest coal mine must be empowered with the resources, and employs a workforce of more than skills and authority to perform their 1,200 employees, had a 2018 TRIFR of jobs safely. Peabody’s Safety a Way ROLLOUT OF SAFESTART PROGRAM just 0.5. of Life (SAWOL) management system sets out a risk-based framework that In Australia, the Middlemount and Our vision is to operate safe and healthy workplaces that are incident free, and a relentless pursuit of is the basis for continuous safety and Millennium mines had a 2018 TRIFR this goal continues to fuel improvements across our safety systems, standards and practices. health improvement. SAWOL, which below 1.0, and the Wilpinjong Mine had is independently certified under the a rate of 1.03 for the year. In 2018, we completed the comprehensive roll out of the SafeStart program at all our U.S. mines. The U.S. National Mining Association’s Target #5 program, which is already in place at many of our Australia operations, encourages greater ongoing In 2018, a team member at the Bear Run CORESafety® framework, sets clear personal awareness of potential safety risks and the development of consistent safety habits. Improve company’s Mine in Indiana was involved in a truck expectations for work activity at global TRIFR. SafeStart complements Peabody’s existing safety management system and offers practical techniques fire, and five days after the incident, he operations and is designed to foster to help employees remain alert to risk both while on the job and when away from the workplace. The tragically suffered cardiac arrest and a safety culture that promotes program encourages team members to establish self-triggers that will prompt them to stop and think passed away. participation and accountability among when faced with situations that include potential risks. employees, contractors, visitors and The incident was thoroughly vendors at sites. investigated to identify the root The SafeStart program also challenges employees to analyze close calls and small errors to avoid causes and pass on findings across larger incidents, look for patterns that can increase the risk of injury, and then develop habits that the operations. Additional safety promote safety. actions being implemented at Bear Run and other mines include upgrading

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Also in 2018, Peabody’s Kayenta Mine in Arizona was Employee Value Proposition honored with a Sentinels of Safety Award from the U.S. National Mining Association for recording the At Peabody, we offer challenging and meaningful work. most hours without a lost-time incident in the coal- We encourage a supportive and inclusive environment processing facility category. In addition, Peabody was where employees are collaborative, knowledgeable, recognized with a Communitas Award in the Ethical engaged and know that they can count on one another. and Environmental Responsibility category for our Creating this type of environment is at the heart of our focus on safety. Employee Value Proposition, or EVP, which helps define why talented, accomplished individuals are attracted Each year, Peabody recognizes top safety to Peabody and why our more than 7,400 employees performance across our mines with our annual continue to stay with the company. President’s Awards, which honor operations with the lowest TRIFR. We also encourage our employees to We believe retaining a high-quality workforce brings develop creative solutions to help make the company’s continuity and sustainability to our operations. The mines safer through our annual Safety and Health typical Peabody employee has nearly 10 years of Innovation Awards. experience with the company, and approximately two‑thirds of all Peabody employees remain employed Now in its eighth year, these awards recognize smart with the company for more than five years. inventions, big and small, that improve safety and often introduce cost and time efficiencies, increase About 95 percent of our team members work for productivity and may be mirrored across the company mine operations in the U.S. or Australia or for regional — and potentially across the industry. The program is offices in Brisbane, London and Beijing, while the another example of Peabody’s commitment to safety remaining are employed at our global headquarters and to fostering the sharing of best practices. in St. Louis.

In 2018, Peabody completed SAWOL outlines the requirements to Mine safety reporting is included in the acquisition of the Shoal safely manage potential hazards and Peabody’s financial regulatory reports Creek seaborne metallurgical covers topics ranging from training as specified by the Dodd-Frank coal mine in Alabama. and emergency management to work Wall Street Reform and Consumer As we integrate the operation into our portfolio, procedures and permits. Ultimately, Protection Act, and Peabody complies Peabody’s safety leaders SAWOL details the requirements that with Securities and Exchange are working alongside our Peabody holds itself accountable to Commission disclosures. new Shoal Creek team as validated through external audits members to bring the mine’s and assurance programs. The program operations into alignment includes performance expectations and Safety Accomplishments with Peabody’s standards for safety. timelines to ensure steady progress Team members from across Peabody’s toward the goal of achieving incident- operations continue to illustrate safety free workplaces. practices that earned global and national recognition in both the U.S. Compliance and Regulation and Australia. The Mines Rescue Team from our Wambo Mine in New South Target #6 In the U.S., Peabody incurred 2,778 Wales represented Peabody at the 2018 MSHA inspection days across our International Mines Rescue Competition Successfully integrate mines, preparation plants and former held in Ekaterinburg, Russia. The team, Shoal Creek Mine into active mining sites in 2018. The which previously took first place at portfolio, including violation rate per day of inspection the Australian National Mines Rescue aligning the operation was 0.47 in 2018, a 16 percent Competition, placed among the top with Peabody’s safety decrease from 2017. The significant 10 at the international competition. standards. and substantial violation rate per This is the second time in three years

100 inspection hours was 1.63, down that the team has competed in the Peabody’s Kayenta Mine was honored with a prestigious Sentinels of Safety Award from the National Mining Association in 2018. 32 percent from last year. international event.

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By signing the pledge, we committed to Women in Mining Health and Wellness Coppabella Mine focus on three specific goals: continuing to make our workplaces trusting Recruiting and retaining women to roles in mining, Peabody’s emphasis on healthy living is a natural environments for open exchange and an industry that has predominantly and historically complement to our safety culture. We provide complex conversations about diversity employed men, is a focus across Peabody’s our employees with health care benefits that are and inclusion; implementing and operations. For instance, at our Wambo Mine competitive within the industry and among the expanding unconscious bias education; in Australia, 40 percent of open-cut operators majority of large employers. and sharing diversity and inclusion onboarded during two 2018 hiring events were In the U.S., we offer a medical plan that can be paired with practices with other companies, with female. With those additions, the number of females a health savings account to more fully engage employees the goal of continuous improvement. on Wambo’s open-cut operator team increased from in their own health and wellness decisions. Peabody also 20 to 27 percent. As part of this effort, all Peabody provides advocacy services and tools to help employees employees at the vice president level navigate their health care choices and become educated and above complete an Inclusive healthcare consumers. In addition, Peabody introduced Leadership workshop, with a focus Women represent 20 percent of our in 2018 telemedicine services for employees enrolled on managing more effectively in board of directors and 29 percent of in our medical plans. In Australia, employees’ universal today’s workplace. Moving forward, all our executive leadership team. health care coverage is supplemented with Peabody’s employees will participate in diversity “whole approach” remuneration package. training, an initiative that is part of a Globally, Peabody provides a variety of health and three-year roadmap we are developing In the U.S., the Caballo Mine in Wyoming increased wellness programs including annual preventive care to outline inclusion and diversity goals the percentage of its female workforce by 3 percent incentives, on-site flu vaccinations, mammography across the company. in 2018. The mine also increased its percentage screenings, tobacco cessation coaching, weight loss These development programs are in of minority employees, as well as its number of support, nutritional counseling and a wide variety of addition to the ongoing initiatives led employees who are veterans and disabled. In addition tools for other life management issues through our by the three Inclusion and Diversity to Caballo, four other Peabody U.S. mines increased Employee Assistance Program. Advisory Boards (IDAB) at Peabody. their percentage of female employees in 2018. These boards — representing the Target #7 Women represent 20 percent of board of directors Learning and Development U.S. operations, Australia operations and 29 percent of our executive leadership team. In Actively support and St. Louis corporate headquarters addition, women comprise 13 percent of vice president Peabody offers a variety of learning events, including inclusion and — champion inclusion and diversity and above roles and nearly 10 percent of our total mentoring and development programs to aid our diversity initiatives. Inclusion and Diversity efforts and introduce culture-enhancing workforce globally. employees in their career growth. During the past five activities across the company. Peabody is committed to creating years, 22 percent of open positions and 83 percent an inclusive work environment with a In 2018, nearly 17 percent of Peabody’s of director and above positions have been filled by global workforce that is representative U.S. workforce was racially or ethnically Total Rewards internal candidates through promotions and lateral of many backgrounds. diverse, a number that we are career development opportunities. Peabody employees are rewarded through a variety continually working to improve at our Peabody was particularly focused of programs, including a competitive salary, benefits Peabody has offered development programs for mines. Within our U.S. operations, the El on inclusion and diversity efforts package and results-based incentives. In addition, managers and supervisors since 2012. These programs Segundo Mine in New Mexico increased in 2018, with President and Chief the company offers savings and retirement benefits, are sponsored and facilitated by company leaders, its number of minority employees by Executive Officer Glenn Kellow in May paid time off and work flexibility and participants are trained on skills and tools that can 6 percent over 2017 levels, and the signing the CEO Action for Diversity options. In December 2018, be applied immediately in the workplace. Since the Gateway North Mine in Illinois increased & Inclusion™ pledge on our behalf. Peabody launched a Total launch, 766 employees have completed the program its minority employees by 2 percent. The pledge has been recognized Target #8 Rewards website to with 69 percent of these participants still actively In addition, three other U.S. mines also as the largest CEO-driven business provide employees with employed by Peabody. increased their number of minority Advance employee commitment for inclusive workplaces, an up-to-date look at their employees in 2018. capabilities through In 2017, we added a Leader Development Program with participation from more than benefits offerings and leader development for directors and above, focused on areas such as 600 executives globally.27 various resources to assist programs and other increasing strategic leadership skills, building business employees in understanding opportunities. acumen, improving communication skills and putting and maximizing their rewards. the Peabody values into action.

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The program also helps leaders create Benefiting our Communities cross-functional relationships with team members from across Peabody’s At Peabody, we provide an essential operations, which promotes diversity of product that enables economic thought, increases knowledge sharing prosperity and a better quality of and collaboration across boundaries life for individuals and communities and enhances innovation. Since worldwide. We also are providing the launch, 38 team members have employment opportunities, payroll completed the Leader Development taxes, coal royalties and charitable Program, with 25 more invited to contributions for the local communities participate in 2019. where our employees live and work. Together, with economic activity To provide additional development generated throughout the value chain, support for all employees, Peabody we injected $11.5 billion in direct and in July 2018 launched an employee- indirect economic benefits into the focused initiative, called #DevelopYou, Target #9 communities where we operated in to encourage team members to Expand company and 2018. This consists of $4.4 billion take advantage of the development employee engagement in direct contributions that create resources available to them as Peabody in the communities in jobs and fuel prosperity, including employees. A range of tools and which we operate. wages, taxes, capital investments and resources were highlighted, including vendor contracts. workshops and webinars on creating meaningful development plans, In 2018, we distributed $1.4 million in EVP and CFO Amy Schwetz speaks at the American Heart Association’s 2019 St. Louis Go Red for Women Luncheon. The luncheon serves as the cornerstone event for the Go Red for Women movement in local communities. and employees were encouraged philanthropic funding and scholarships. to commit to engage in at least one Our giving is amplified by the donations development activity. and volunteer hours generously contributed by our workforce, which EMPOWERING WOMEN IN OUR COMMUNITIES are eligible for our charitable match Award-Winning Employer program, allowing us to support the organizations and causes that are Peabody’s legacy of giving back to communities also includes participation in various organizations Peabody’s commitment to being important to our employees. and causes. Members of our executive leadership team are active board members of organizations an employer of choice received focused on empowering women in our communities. recognition from global organizations In 2018, Peabody continued a legacy of in 2018. We were named “Employer of supporting the United Way of Greater Amy Schwetz, Peabody’s Executive Vice President and Chief Financial Officer, took on the role of the Year — Energy & Natural Resources” St. Louis. Employees volunteered Science, Technology, Engineering and Math (STEM) Chair of the American Heart Association’s St. Louis by United Kingdom-based Corporate nearly 250 hours to United Way- Go Red for Women initiative, a program designed to increase women’s heart health awareness and LiveWire, which recognized employers supported agencies and pledged funds serve as a catalyst for change to improve the lives of women around the globe. for their use of technology, sustainable that surpassed the 2017 United Way The STEM event is about empowering young women to take control of their health, career and development and ethical practice. campaign by more than $24,000. The United Way of Greater St. Louis funds business choices and to consider a STEM career that could impact the health of all Americans. Peabody’s Human Resources team more than 160 partner agencies that Verona Dorch, Peabody’s Executive Vice President, Chief Legal Officer, Government Affairs and and their business partners received a provide one in three area people with Corporate Secretary, serves as a member of the board of directors for Girls Inc. of St. Louis, an BEST Award from the Association for critical services. organization that provides educational and cultural programs in safe environments for girls that enable Talent Development for the use of talent them to realize their potential. Nationwide, Girls Inc. affects the lives of approximately 500,000 girls in development as a strategic business tool more than 100 cities annually and has provided educational programs to millions of girls, particularly to get results and achieve enterprise- those in high-risk and under-served areas.28 wide success. In addition, Peabody’s Australia Human Resources team won In addition, Verona serves on the board of the United Way of Greater St. Louis, an organization that the Workplace Relations Award from the Peabody has long supported. Australian HR Institute for the Moorvale Mine Direct Engagement Model.

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Supporting Indigenous Communities Community Recognition

Peabody also is a proud supporter of Indigenous Our support of local communities in both the U.S. communities where we operate. In the U.S., Peabody’s and Australia earned third-party recognition and Kayenta Mine in Arizona continued to provide Navajo honors in 2018. Our long­standing involvement with Nation and Hopi Tribe youth with scholarships totaling the United Way of Greater St. Louis earned Peabody more than $225,000 in 2018. a Communitas Award for Excellence in Community Service-Community Partnerships. In addition, our In addition, Peabody led a coalition to keep the Bear Run Mine in Indiana was honored in 2018 by the Navajo Generating Station (NGS) and Kayenta Mine National Mining Association with a Good Neighbor operating beyond 2019. Fueled by Peabody’s Kayenta Award, recognizing the mine’s high level Mine, the Navajo Generating Station (NGS) began of community engagement. operating in 1974. The mine and the power plant are an economic engine, supporting 825 jobs and In Australia, the Wilpinjong Mine won a Supportive providing approximately 85 percent of the Hopi Tribe’s Employer Award for its aid of the Rural Fire Service annual operating budget and 22 percent of the Navajo during bush fires that devastated Nation’s annual general budget. the mid-western region of New South Wales in February Despite aggressive efforts by an unprecedented 2017. Peabody volunteers group of stakeholders including the Navajo Nation, operated fire trucks and Hopi Tribe, union members, state and federal Target #10 provided on-the-ground government officials, regulators and business groups, coordination throughout Report on Peabody’s NGS was unable to transition to new ownership. The the fires. continuous improvement power plant is expected to close at the end of 2019, plan as part of our actions and a sustainability plan is in place to manage the to support the UN Employees gather outside Peabody corporate headquarters in St. Louis to support President and CEO Glenn Kellow Kayenta Mine closure and reclamation. Global Compact. in the Fit2Be Cancer Free 2018 CEO Fitness Challenge. In Australia, we have developed programs in consultation with our Traditional Owners to give back to those communities and support economic and PEABODY TAKES STEPS TOWARD community development. We believe the best way we can make a difference is through start-up business Peabody Charitable Contributions CANCER PREVENTION development support, traineeships and job placements, (Dollars in Thousands) apprenticeships and work experience. Art and Culture $120 Peabody President and Chief Executive Officer Glenn Kellow is uniting with other executives from In 2017, we signed two agreements with Traditional Civic and Public Affairs $90 across the U.S. to encourage colleagues, friends and the community to get active. Owners which provided benefits to groups of Community and Economic Development $136 In 2018, Glenn took part in the American Cancer Society’s Fit2Be Cancer Free 2018 CEOs Challenge, Indigenous Australians that included trainee operator Disaster Relief $43 and apprentice positions as well as access to business a virtual step-tracking challenge that pits executives from across the country against each other in Education: K-12 $49 opportunities with our company. Trainees were based a friendly competition focused on motivating employees to embrace healthier lifestyles. More than at our Moorvale Mine with a cohort successfully Employee Matching Gift Programs $286 100 Peabody employees joined Glenn in a walk around downtown St. Louis. graduating to fully-qualified operators in late 2018. Energy and Mining Education $22 Glenn participated in the challenge once again in 2019, and joined the board of the Missouri-St. Louis Environmental $34 chapter of CEOs Against Cancer, an organization that brings together the most influential chief Health and Social Services $89 executives with the resources of the American Cancer Society to build public awareness around cancer Higher Education $26 and empower employees to join the fight against cancer.

Scholarships $242 CEOs Against Cancer is made up of executives from Fortune 1000 companies as well as other $1.4M Technology Research $250 corporations with large national employee bases, an elite group that represents millions of working Total Charitable Other $27 professionals from diverse industries nationwide.29 Contributions GRAND TOTAL $1,414

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