2017 SUSTAINABILITY REPORT PPL 2017 SUSTAINABILITY REPORT Girls Intrade Fair

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2017 SUSTAINABILITY REPORT PPL 2017 SUSTAINABILITY REPORT Girls Intrade Fair Delivering today for a brighter tomorrow PPL CORPORATION 2017 SUSTAINABILITY REPORT Sustainability SUSTAINABILITY REPORT SUSTAINABILITY commitments PPL 2017 PPL 2017 The following sustainability commitments provide a framework for PPL to grow and innovate in a responsible, reliable way that benefits customers, shareowners, employees and society as a whole. Create extraordinary shareowner value Create long-term value for shareowners through fiscal discipline, continuous improvement, environmental stewardship and enduring strategic investments Drive best-in-sector operational performance Excel in safety, reliability, customer responsiveness and energy efficiency while maintaining a culture that fosters innovation Advance a cleaner energy future Encourage responsible stewardship in partnership with our customers and stakeholders to have a sustainable environmental impact Build tomorrow’s energy infrastructure Invest in tomorrow’s energy infrastructure by developing a more reliable, resilient and efficient grid that fosters continued progress and a cleaner energy future Exceed customer expectations Provide safe, reliable and environmentally responsible energy at the lowest reasonable cost Foster an exceptional workplace Cultivate success by energizing an inclusive, respectful and diverse workplace that rewards performance, enables professional development, encourages employee engagement and enables employees to achieve their full potential (Front cover) Ashley Harris, a lineworker for PPL Electric, speaks to Strengthen communities high school students about career opportunities for women in technical Empower the success of future generations by helping to build strong communities today fields during the company’s annual Girls in Trade Fair. DELIVERING TODAY FOR A BRIGHTER TOMORROW FOR TODAY DELIVERING TABLE OF CONTENTS Message from our Chairman, President and CEO ........................2 About our company ........................................................................3 Performance data ..........................................................................5 Sustainability commitments and priorities .................................8 About this report ............................................................................9 Create extraordinary shareowner value ...................................... 11 Drive best-in-sector operational performance ..........................21 Advance a cleaner energy future ................................................27 Build tomorrow’s energy infrastructure .....................................40 Exceed customer expectations ..................................................43 Foster an exceptional workplace ................................................52 Strengthen communities .............................................................59 Global Reporting Initiative index .................................................63 1 Message from our Chairman, SUSTAINABILITY REPORT SUSTAINABILITY President and CEO PPL 2017 PPL 2017 At PPL, we take pride in powering everyday life. energy resources, including energy storage and electric vehicles, to seamlessly connect to the grid going forward. We recognize that so much of what we do and enjoy as a society is made possible by electricity. That’s as true today as it Supporting a Lower Carbon Future has ever been. Creating a smarter and more flexible grid will help support a As such, we have a tremendous responsibility to provide power lower carbon future. But we realize that enhanced grid safely, reliably and affordably. As we make new investments, we capabilities, alone, are not enough. As the world confronts also have a great opportunity to shape our energy future for climate change, it’s important that companies like PPL identify generations to come. opportunities to reduce their carbon footprint. Our long-term strategy to fulfill this responsibility, to make the As we look to the future, we’re committed to doing just that by most of this opportunity, and to grow responsibly, is simple and replacing our Kentucky coal-fired generation over time with a clear. We will deliver best-in-sector operational performance, mix of renewables and natural gas while continuing to meet invest responsibly in a sustainable energy future, maintain a our obligations to provide reliable service at the lowest WILLIAM H. SPENCE strong financial foundation, and engage and develop our people. reasonable cost to customers. In addition, we will improve energy CHAIRMAN, PRESIDENT AND CHIEF EXECUTIVE OFFICER efficiency across our U.S. and U.K. operations, cut greenhouse As we pursue this strategy, informed by feedback from gas emissions from our substations and reduce fleet emissions. stakeholders, we will stay true to the sustainability commitments In addition, we continue to support community programs that outlined in this report (page 8). In January 2018, we set a goal to cut the company’s carbon strengthen education, expand opportunities for those less dioxide emissions 70 percent from 2010 levels by 2050. We believe fortunate and help those in need in our local communities. In Delivering Today for a Brighter Tomorrow this goal, informed by a scenario-based climate assessment we 2017, PPL and its foundations contributed more than $10 million to support community initiatives. Over the past five years, PPL has invested more than $16 billion to conducted in 2017, is not only achievable, but in the best interest modernize the grid, advance a cleaner energy future and meet of our customers, shareowners and society as a whole. In closing, the pages that follow provide a detailed look at rising customer expectations. From 2018 through 2022, we will Making a Positive Impact on Our Communities what’s important to us as we focus on creating value for our invest another $15 billion. shareowners, growing in a sustainable way and making a positive Beyond our efforts to prepare for the future and to reliably impact on society. As we look to the future, we’re proud of the We’re making the grid stronger and more resilient by replacing deliver a service that is essential to the quality of life in the progress we’ve made, and we’re committed to continuous power lines and substations and building new ones to improve communities we serve, we’re committed to remaining a force for improvement. flexibility. We’re making the grid smarter by incorporating good in other ways. technology and automation that allow us to prevent outages in We welcome your feedback, and we appreciate your interest some cases, and respond more quickly in others. We’re enhancing We’re investing in the dedicated and talented workforce that fuels in PPL. security, both physical and cyber, to protect against a new our success. We’re providing family-sustaining jobs to more than generation of threats. 12,500 PPL employees across the communities we serve. We’re increasing spending with minority-owned businesses, reflecting In addition, we’re connecting more renewables to the grid – our commitment to supplier diversity. We’re creating additional 2 gigawatts of private solar in the U.K. alone in 2017. We’re also Sincerely jobs through major investments in infrastructure improvements. advancing research and development to enable more distributed William H. Spence 2 DELIVERING TODAY FOR A BRIGHTER TOMORROW FOR TODAY DELIVERING About our company PPL Electric Utilities Headquartered in Allentown, Pa., PPL Corporation. (NYSE: PPL) is one of the largest companies in the U.S. utility sector. The company serves more than PPL Electric Utilities Corporation 10 million customers in the United States and United Kingdom and employs more than 12,500 people. PPL Electric Utilities Corporation (PPL Electric) provides electricity Our mission is to provide gas and electricity safely, distribution and transmission services WPD reliably and at a reasonable cost to our customers and to about 1.4 million customers in eastern best-in-sector returns to our shareowners. We believe and central Pennsylvania and consistently our competitive earnings, growing dividend, solid ranks among the best companies in management and high-quality assets represent an the U.S. for customer service. attractive low-risk opportunity for those looking to Western Power Distribution invest in the utility sector. Western Power Distribution (WPD) is the Our vision is to empower economic vitality and quality LG&E and KU electricity distribution network operator in of life. We are a positive force in the communities the U.K. for the East and West Midlands, where we do business. We support human services, South West England and South Wales, serving education, arts and culture, and environmental 7.9 million end-use customers. Operating the stewardship. In addition, our companies work closely Louisville Gas and U.K.’s largest distribution network by with local and state officials to foster economic Electric Company and geographical area, WPD covers densely development that creates jobs throughout the Kentucky Utilities Company populated residential areas and widely territories we serve. dispersed rural communities. WPD has been Louisville Gas and Electric Company (LG&E) recognized consistently as the leading and Kentucky Utilities Company (KU) are PPL Corporation’s operating companies are located in electricity distribution network operator regulated utilities that are engaged three primary jurisdictions: Kentucky, Pennsylvania and group in the U.K. by the Office of Gas and in the generation, transmission, distribution the United Kingdom. Each of these jurisdictions
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