2018 SUSTAINABILITY REPORT CONTENTS Solutions for a Sustainable 03 Executive Summary 51 Energy Future 05 CEO Letter 53 Business Solutions 07 Purpose Statement and Values 59 Residential Solutions 09 Sustainability Performance Values for a Sustainable 15 Sustainability Context 65 Energy Future 17 Megatrends of the Power Sector 67 Safety 22 Role of Electrification 69 Diversity and Inclusion 71 Community 75 Wellness 75 Employee Engagement Commitments to a Sustainable 23 Energy Future 77 Appendix 27 U.N. Sustainable Development Goals 79 Feedback 29 Governance 79 Safe Harbor 33 Generation 81 Sustainability Reporting 37 Environmental Performance 81 Key Material Issues 45 Suppliers 83 SASB Report EXECUTIVE SUMMARY SUSTAINABILITY CONTEXT FUTURE COMMITMENT FUTURE SOLUTIONS FUTURE VALUES APPENDIX CEO Letter CSO Letter NRG at a Glance Sustainability Context Executive Summary 1 3 2018 | SUSTAINABILITY HIGHLIGHTS 4 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX EXECUTIVE SUMMARY CEO LETTER | PURPOSE STATEMENT/VALUES | PERFORMANCE At NRG, our comprehensive sustainability available frameworks and standards, such as For example, in 2018, we expanded our retail I am proud of the goals we set for ourselves framework provides a solid foundation for SASB and TCFD. This level of accountability presence to enhance our customer value and the way we have achieved strong financial operating our business at the highest standard. creates trust and invites stakeholder dialogue. proposition. We also divested our in-house and operational performance while exceeding We believe that building a more sustainable We will also continue to boldly advocate for renewables development platform, allowing our sustainability ambitions. As you read customer choice by seeking to open markets us to work with a broader set of developers through our 2018 Sustainability Report, I trust business creates a stronger company and to competition, which allows market-based and find the lowest cost and most flexible you will share my pride as well as my excitement greater value for all our stakeholders. And as a mechanisms to drive down emissions and solution for our customers. Innovation for our path ahead. stronger company, we are well-positioned to costs for the benefit of consumers, within our business solutions space continued lead the way in redefining what power can be. communities and the environment. as we introduced our Renewable Select In 2018, we achieved outstanding financial and concept, a unique product that greatly In addition to our sustainability framework, operational performance, meeting the goals we simplifies how corporate and industrial clients the values that hold us together are building Mauricio Gutierrez set forth in our multi-year transformation plan, buy renewable energy. By placing customers a better NRG. We have long maintained a President and Chief Executive Officer while focusing on our employees, customers, at the center of our business, we are taking the dedicated safety culture and, last year, achieved and communities. As we transform our actionable steps to reimagine, reinvent, and the best safety record in company history. company, our people power what is possible. reshape how electricity is produced, delivered, While safety and employee well-being continue With their robust industry expertise, market and experienced. to be a topmost priority, we evolved our intelligence, creativity, get-it-done mentality, purpose and modernized our values to better and spirit of philanthropy, they are moving us reflect who we are today, and they serve as a toward a more sustainable energy future. guidepost for bringing the power of energy to Throughout our transformation, our our customers. commitment to environmental stewardship The power industry is more dynamic than ever, and transparency has accelerated. We have with the next generation of sustainable thinking reduced our carbon emissions 37% since 2014 pushing both government and companies to while creating tremendous business value. take action. Electricity is rapidly becoming the We are nearly three quarters of the way to fuel that will power a low carbon economy. achieving our science-based 2030 goal, which Climate change and the need to decarbonize we expect to meet years early. I am also proud has transcended policy and is now a priority to say that for the 2018 reporting year, we for many businesses, families, and individuals. reached CDP’s Climate Leadership level for the As electric cars, connected devices, and first time in NRG’s history — one of three U.S. renewable generation continue to enter the electric utilities and the only U.S. integrated market, we shifted our business to meet the power company to do so. needs of customers not only with reliable and We will continue to set clear and measurable affordable electricity, but also with cleaner sustainability goals and communicate our and more tailored solutions to meet their progress with transparency, using the best specific needs. 5 2018 | SUSTAINABILITY HIGHLIGHTS 6 001 004 005 008 009 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTER/PHONE FREEDOM/CUSTOMIZATION AROUND THE CLOCK SERVICE KNOWLEDGE ONLINE EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX EXECUTIVE SUMMARY CEO LETTER | PURPOSE STATEMENT/VALUES | PERFORMANCE 012 013 016 017 020 021 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEXIBILITY ARROWS SUSTAINABLE POLICY & REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN 001 004 005 008 009 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTER/PHONE FREEDOM/CUSTOMIZATION AROUND THE CLOCK SERVICE Our PurposeKNOWLEDGE Statement ONLINE Our Values 024 028 032 023 025 026 027 029 030 031 033 WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE SOLARSafety PANEL ENVIRONMENTCustomer-FocusCOST/MONEY Collaboration OUTLET BATTERY GRID POWER LINES FACILITY TOOLS/SERVICE WORKFORCE HOUSE WIND FARM and Well-Being POWER 012 013 016 017 020 021 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE We are an energy companyFLEXIBILITY ARROWS SUSTAINABLE POLICY & REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN powered by people and built on dynamic retail brands with 001 001 004 005 004 005 008 009 007 008 009 011 002036 003037 002 003 040006 041007 006 010 011 010 034 CUSTOMER035 CUSTOMER CALENDAR038 PARTNERSHIP039 CALENDAR PARTNERSHIP COMPUTER042 ONLINE CARBON REDUCTION COMPUTER/PHONETECH COMPUTER ONLINE CARBON REDUCTION TECH AROUND THE CLOCK SAFETYMARKET QUALITY ACHIEVEMENTEYE WITH GEAR TARGET MARKET EYE WITH GEAR CONSULTINBUSINESS G COMPUTER/PHONEMARKET STOCKS CONSULTING FREEDOM/CUSTOMIZATION AROUND THE CLOCK FREEDOM/CUSTOMIZATION POWER LOWSERVICE RISK SERVICE GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK ONLINE KNOWLEDGEHARD HAT KNOWLEDGE BUILDING ONLINE diverse generation resources. LIGHT BULB 024 028 032 023 025 026 027 029 030 031 033 WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE SOLAR PANEL ENVIRONMENT COST/MONEY OUTLET BATTERY GRID POWER LINES FACILITY TOOLS/SERVICE WIND FARM WORKFORCE POWERAccountability Inclusion HOUSE and Diversity ING PLAT RAT FO E RM P 012 013 016 017 020 021 O 012 013 015 016 014 017 015 019 020 018 021 019 022 014 CARBON REDUCTION TECHNOLOGY 018 RENEWABLE SUSTAINABLE 022 RENEWABLE GROWTH SUSTAINABILITY BADGE CARBON REDUCTION TECHNOLOGY SUSTAINABLE RENEWABLE FLEXIBILITY ARROWS SUSTAINABLE SUSTAINABLE SUSTAINABLE RENEWABLE GROWTHPOLICY & REGULATIONSUSTAINABILITY BADGESUSTAINABLE SUSTAINABLE PLANT ETAIL FLEXIBILITY ARROWS ADVANCES POLICY & REGULATIONENERGY CREDITS COMMITMENTS SUSTAINABLE PLANT R ADVANCES INVESTING ENERGY CREDITS COMMITMENTS INVESTING SUPPLY CHAIN SUPPLY CHAIN 036 037 040 041 034 035 038 039 042 SAFETY QUALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB 024 025 028 029 032 033 023 024 025 023 027 028 026 029 027 031 032 030 033 031 026 WIND TURBINES SOLAR PANEL 030 FUTURE OUTLET BATTERY RESIDENTIAL TOOLS/SERVICE CUSTOMER SUSTAINABLE WIND TURBINES SOLAR PANEL SUSTAINABLE COST/MONEY FUTURE ENVIRONMENT OUTLET BATTERY COST/MONEY FACILITY RESIDENTIAL GRID POWER LINESTOOLS/SERVICE FACILITY ENVIRONMENT GRID POWER LINES WORKFORCE POWER HOUSE WIND FARM WIND FARM WORKFORCE POWER HOUSE G N NRG: At a Glance ENERATIO 036 037 035 036 037 040 041 039 040 041 034 035 034 038 039 038 042 042 SAFETY QUALITY ACHIEVEMENT TARGET LOW RISK SAFETY QUALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKSACHIEVEMENT PEAK BUSINESS MARKET STOCKS POWER LOW RISK POWER GOALS TROPHY67 ACHIEVEMENT PEAK GOALS TROPHY BALANCED RISK BALANCED RISK 0 HARD HAT HARD HAT BUILDING BUILDING LIGHT BULB LIGHT BULB TWhs We bring the power Stat 00 wher company yees etail of energy to people and organizations. Approximately Over T 3.1 Leading customers es evenue integrat pow ator 7 2018 | SUSTAINABILITY HIGHLIGHTS 8 001 004 005 007 008 009 011 002 003 006 010 001 004 005 008 009 CUSTOMER CALENDAR PARTNERSHIP COMPUTERPHONE COMPUTER ONLINE CARBON REDUCTION TECH AROUND THE CLOCK 002 003 006 007 010 011 MARKET EYE WITH GEAR CONSULTING FREEDOMCUSTOMIZATION CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH SERVICE ONLINE MARKET EYE WITH GEAR CONSULTING