2018 Sustainability Report Contents

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 TROPHY ACHIEVEMENT PEAK GOALS TROPHY BALANCED RISK BALANCED RISK 0 HARD HAT HARD HAT BUILDING BUILDING LIGHT BULB LIGHT BULB We bring the power 00 of energy to people and organizations.

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 COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK KNOWLEDGE SERVICE KNOWLEDGE ONLINE

012 013 015 016 017 019 020 021 014 018 022 012 013 016 017 020 021 CARBON REDUCTION TECHNOLOGY SUSTAINABLE RENEWABLE SUSTAINABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE 014 015 018 019 022 FLEIBILITY ARROWS POLICY REGULATION SUSTAINABLE PLANTCARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN

EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX EXECUTIVE SUMMARY CEO LETTER | PURPOSE STATEMENT/VALUES | PERFORMANCE

001 004 005 024 008 009 028 001 032 004 005 008 009 002 003 023 006 007 025 026 027 010 011 029 030 031 002 033 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP WIND TURBINES COMPUTER ONLINE CARBON REDUCTION TECH FUTURE CUSTOMER RESIDENTIAL CALENDAR 024 PARTNERSHIP025 COMPUTER ONLINE028 CARBON REDUCTION029 TECH 032 033 MARKET EYE WITH GEAR SUSTAINABLE CONSULTING COMPUTERPHONE SOLAR PANEL ENVIRONMENT COSTMONEYFREEDOMCUSTOMIZATION AROUND THE CLOCK OUTLET BATTERY GRID POWER LINES FACILITY MARKET TOOLSSERVICEEYE WITH GEAR023 CONSULTING026 COMPUTERPHONE027 FREEDOMCUSTOMIZATION030 AROUND THE CLOCK031 SERVICE WORKFORCE SERVICE WIND TURBINES SOLAR PANEL FUTURE OUTLET BATTERY RESIDENTIAL TOOLSSERVICE KNOWLEDGE WIND FARM ONLINE POWER HOUSEKNOWLEDGE SUSTAINABLE ENVIRONMENT ONLINECOSTMONEY GRID POWER LINES FACILITY WIND FARM WORKFORCE POWER HOUSE

012 013 016 017 036 037 020 021 040 041 012 013 016 017 020 021 014 015 034 035 018 019 038 039 022 042 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE SAFETY UALITY RENEWABLE GROWTH SUSTAINABILITY BADGE BUSINESS MARKET STOCKS CARBON REDUCTION TECHNOLOGY RENEWABLE036 SUSTAINABLE037 RENEWABLE GROWTH040 SUSTAINABILITY BADGE041 FLEIBILITY ARROWS SUSTAINABLE POWER LOW RISKPOLICY REGULATION SUSTAINABLE ACHIEVEMENT TARGET ACHIEVEMENTSUSTAINABLE PEAK PLANT FLEIBILITY ARROWS034 SUSTAINABLE035 POLICY REGULATION038 SUSTAINABLE039 SUSTAINABLE PLANT042 ADVANCES ENERGY CREDITS COMMITMENTS GOALS TROPHY BALANCED RISK ENERGYSAFETY CREDITS UALITY ACHIEVEMENT* TARGET BUSINESS MARKET STOCKS INVESTING HARD HAT SUPPLY CHAIN BUILDING ADVANCES POWER INVESTINGLOW RISK COMMITMENTS GOALS TROPHY SUPPLYACHIEVEMENT CHAIN PEAK BALANCED RISK LIGHT BULB % % % HARD HAT BUILDING 73 74 million 7 30LIGHT BULB 0.51 TCIR of the way to tons customer revenue carbon intensity water withdrawal best ever our 2030 greenhouse gas avoided emissions decrease since 2014 decrease since 2014 safety record (GHG) reduction goal

024 025 028 029 032 033 024 028 032 023 026 027 030 031 023 025 026 027 029 030 031 033 WIND TURBINES SOLAR PANEL FUTURE OUTLET BATTERY RESIDENTIAL TOOLSSERVICE WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE ENVIRONMENT COSTMONEY GRID POWER LINES FACILITY SUSTAINABLE SOLAR PANEL ENVIRONMENT COSTMONEY OUTLET BATTERY GRID POWER LINES FACILITY TOOLSSERVICE WIND FARM WORKFORCE POWER HOUSE WIND FARM WORKFORCE POWER HOUSE A Sustainable Energy Future Throughout a year of substantial change, we remained committed to our comprehensive sustainability framework. While we’ve already made significant 036 037 040 041 036 037 040 041 034 035 038 039 042 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK progressBALANCED in transforming RISK our business, our work to POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING HARD HAT BUILDING LIGHT BULB LIGHT BULB redefine power is just beginning. Our industry continues to evolve and create actionable opportunities for NRG.

Tackling the impacts of climate change and the decarbonization of our economy is transcending federal 001 004 005 008 009 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR policy, as businesses and individuals are taking moreCONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE ONLINE KNOWLEDGE decisive action. Technological advances have been 001 004 005 008 009 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE accelerating and enabling new ways for consumers to KNOWLEDGE ONLINE interact with electricity, from real-time data apps to smart appliances. Our energy system is going to be more connected, smarter, and more reliable than ever. 012 013 016 017 020 021 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT ENERGY CREDITS 012 013 016 017 020 021 ADVANCES INVESTING COMMITMENTS SUPPLY CHAIN 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN

024 028 032 024 025 028 029 023 025 032 026 033027 029 030 031 033 023 026 027 030 WIND TURBINES 031 SOLAR PANEL FUTURE OUTLET BATTERY RESIDENTIAL TOOLSSERVICE WIND TURBINES SOLAR PANEL001 FUTURE004 OUTLET BATTERY005 SUSTAINABLE RESIDENTIAL008ENVIRONMENT TOOLSSERVICECOSTMONEY009 GRID POWER LINES FACILITY SUSTAINABLE ENVIRONMENT002 COSTMONEY003 GRID POWER006 LINES FACILITY007 WORKFORCE010 POWER 011 HOUSE CUSTOMER WORKFORCECALENDAR POWERPARTNERSHIP WIND FARM COMPUTERHOUSE ONLINE CARBON REDUCTION TECH WIND FARM MARKET EYE WITH GEAR % CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE 7 KNOWLEDGE <25 ~23,000ONLINE MW $3.1M 16,046 facilities coal revenue generation capacity donations volunteer hours with VPP in our generation in our North America given through corporate contributed by Star rating portfolio portfolio philanthropy NRG employees

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB 036 037 040 041 034 035 038 039 042 SAFETY UALITY012 ACHIEVEMENT013 TARGET BUSINESS016 MARKET STOCKS017 020 021 POWER LOW RISK GOALS TROPHY014 ACHIEVEMENT015 PEAK BALANCED018 RISK 019 022 CARBONHARD HAT REDUCTION TECHNOLOGY BUILDINGRENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE LIGHT BULB FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN

9 2018 | SUSTAINABILITY HIGHLIGHTS *Total Case Incident Rate 10

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB 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 012 013 016 017 021 014 015 001 004 019005 020 008 009 002 003 018 EXECUTIVE SUMMARY 006 007 022 010 011 CEO LETTER | PURPOSE STATEMENT/VALUES | PERFORMANCE CARBON REDUCTION TECHNOLOGY SUSTAINABLECUSTOMER RENEWABLE SUSTAINABLE CALENDAR SUSTAINABLEPARTNERSHIP RENEWABLE GROWTH SUSTAINABILITY BADGE COMPUTER ONLINE CARBON REDUCTION TECH FLEXIBILITY ARROWS MARKET EYE WITH GEAR POLICY & REGULATION CONSULTING COMPUTER/PHONE SUSTAINABLE PLANT FREEDOM/CUSTOMIZATION AROUND THE CLOCK ADVANCES INVESTINSERVICEG ENERGY CREDITS COMMITMENTS SUPPLY CHAIN KNOWLEDGE ONLINE

Sustainability at NRG Notable accomplishments We have a broad sustainability strategy, aimed at embedding sustainability into the culture and 024 025 012 013 028 029 016 017 032 033 020 021 fabric of the organization and ensuring that sustainability023 becomes a core function that touches all 026 027 014 015 030 031 018 019 022 WIND TURBINES CARBON REDUCTION TECHNOLOGY FUTURE RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE SUSTAINABLE SOLAR PANEL COST/MONEY FLEXIBILITY ARROWS OUTLETSUSTAINABLE BATTERY FACILITY POLICYRESIDENTIAL & REGULATION TOOLS/SERVICESUSTAINABLE SUSTAINABLE PLANT ENVIRONMENT GRIDENERGY POWER CREDITS LINES aspects of our business. Our sustainability effortsWIND FARM closely align with our business and are organized ADVANCES WORKFORCE POWERINVESTING COMMITMENTS HOUSE SUPPLY CHAIN with cross-functional engagement and strong governance. To help create a sustainable energy future, we prioritize our work into five key pillars. Each pillar comprises business activities that

create value for NRG and its stakeholders. 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

024 025 028 029 032 033 036 037 023 040 026 041027 030 031 034 035 038WIND TURBINES 039SOLAR PANEL FUTURE042 OUTLET BATTERY RESIDENTIAL TOOLS/SERVICE SAFETY QUALITY ACHIEVEMENTSUSTAINABLE TARGET BUSINESENVIRONMENTS MARKETCOST/MONEY STOCKS GRID POWER LINES FACILITY POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCEDWORKFORC RISKE POWER HOUSE HARD HAT WIND FARM BUILDING LIGHT BULB Reached leadership One of the first companies Sustainable business Sustainable operations level of A- in to publicly commit to SustainableS ustBusinaineasbles Business SustainableS ustCusatinomableer sCustomers SustainableS ustSuppainliaeblers Suppliers SustainableS ustOpeainraationble sOperations SustainableS ustWorkainpalbleace Workplace The Sustainable Business pillar guides our Our commitment to sustainable operations CDP Climate scoring the Task Force on 012 013 016 017 020 021 company in the foundational pieces of strong includes strong goals in reducing greenhouse 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEXIBILITY ARROWS SUSTAINABLE Climate-related Financial POLICY & REGULATION SUSTAINABLE SUSTAINABLE PLANT sustainability leadership including governance, gas emissions and water use, and increasing ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN Disclosures (TCFD) 036 037 040 041 transparency, sustainability reporting, and recycling rates of coal combustion residuals 034 035 038 039 042 SAFETY QUALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING stakeholder engagement. across all facilities. LIGHT BULB

001 023 004 024 005 025 027 008 028 009 029 031 032 033 002 003 006 026 007 010 030 011 CUSTOMER SUSTAINABLE CALENDARWIND TURBINES PARTNERSHIPSOLAR PANEL COST/MONEY COMPUTERFUTURE ONLINE CARBON REDUCTIONOUTLET BATTERY TECH FACILITY RESIDENTIAL TOOLS/SERVICE MARKET EYE WITH GEAR CONSULTINENVIRONMENTG COMPUTER/PHONE FREEDOM/CUSTOMIZATIONGRID POWER LINES AROUND THE CLOCK SERVICE WIND FARM WORKFORCE POWER HOUSE Sustainable customers Sustainable suppliersKNOWLEDGE ONLINE Sustainable Business ASust keyainable Cusaspecttomers of Sourustaina blesustainabilityS ustBusinaineasbles Suppliers strategySustainableS Cususta tisinomable ers Operations ItSust isain alsoableSust Suppain liimportantaeblers Workplace forSustain acompaniesble Operations to addressSustainable Work place providing sustainable solutions for our customers sustainability in their entire value chain. We have and helping to lead in the transition to a more established ambitious goals and started to put sustainable future. Our goals are to continue systems in place to measure and ultimately to provide more clean energy choices and help reduce the impacts in our supply chain. 036 037 040 041 012 013 034 015 035 016 017 038 019 039 020 021 042 reduce the overall environmental impacts. 014 SAFETY QUALITY ACHIEVEMENT TARGET 018 BUSINESS MARKET STOCKS 022 CARBON REDUCTION TECHNOLOGY POWER SUSTAINABLELOW RISK RENEWABLE SUSTAINABLE GOALS TROPHY SUSTAINABLEACHIEVEMENT PEAK RENEWABLE GROWTH SUSTAINABILITY BADGE BALANCED RISK FLEXIBILITY ARROWS HARD HAT POLICY & REGULATION BUILDING SUSTAINABLE PLANT ADVANCES LIGHT BULB INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN Only company in our sector Named to report using the CDP Supplier Sustainability Accounting Engagement Leader Standards Board (SASB) for second year in a row Sustainable workplace

Sustainable Business Sustainable Customers Sustainable Suppliers Sustainable Operations Sustainable Workplace standards since 2016 Our commitment to a sustainable workforce at NRG 024 028 032 023 025 026 027 029 030 031 033 WIND TURBINES FUTURE RESIDENTIAL includes a focus on worker safety, health and SUSTAINABLEwellness, SOLAR PANEL ENVIRONMENT COST/MONEY OUTLET BATTERY GRID POWER LINES FACILITY TOOLS/SERVICE WORKFORCE POWER HOUSE equality, diversity, and employee engagement,WIND as well FARM as environmentally conscious workplaces.

11 2018 | SUSTAINABILITY HIGHLIGHTS 12 036 037 040 041 034 035 038 039 042 SAFETY QUALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB ANYI 68% 12% 11% 8%

AT 53% 21% 15% 10%

70% 1% 6%

81% 10% 6%

TAIL SLUTINS 6% 22% 21% 8%

EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX 73% 10% EXECUTIVE% 7% SUMMARY CEO LETTER | PURPOSE STATEMENT/VALUES | PERFORMANCE 100%

GNATIN 2018 Performance Highlights 81% % 8%

Environmental Snapshot Diversity at NRG** 73% of the way to our 2030 goal 0% 5% Companywide employees ANYI Tracking toward our GHG Scope 1 emissions* 46 million mT CO2e 68% 12% 11% 8% reduction goals 3% 7% T * (NRG U.S.NG CO US2e emissions scopes 1, 2, & 3 ) mTCO2e Scope 2 emissions* 189,000 mT CO2e AT WHITE BLAC OR AFRICAN AMERICAN HISPANIC OR LATINO ASIAN (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO) 100 53%TWO OR MORE AMERICAN INDIAN OR ALASAN NATIE 21% NO ELECTION 15%NATIE HAWAIIAN OR10% OTHER PACIFIC Scope 3 emissions* 13,000 mT CO2 (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO) ISLANDER (NOT HISPANIC OR LATINO) (business travel) 80 % 72 70% 1% 6% decrease Revenue carbon intensity 4,628 tCO2e 62 from 201 60 /$M revenue 81% 10% 6% 7 7 6 Generation emissions .68 mT/MWh 0 37 TAILBoard diversity SLUTINS intensity Gender Diversity Ethnic Diversity Independence 6% 22% 21% 8% 20 Water usage intensity .05 megaliters/MWh 7 73% 10% % 7% 0 Water consumption* 185 million m3 201 2015 2016 2017 2018 2030 2050 2 2 2 2 2 2 100% of 10 Directorsof 10 Directorsof 10 Directors of 10 Directorsof 10 Directorsof 10 Directors of 10 Directorsof 10 Directorsof 10 Directors To ensure consistency and relevance, NRG’s base year emissions Coal Combustion Residuals 63% have been recalculated according to GHG Protocol: A Corporate (CCR) recycling rate Accounting and Reporting Standard, Revised Edition following GNATIN generation asset portfolio changes. This revised base year has been verified by a third party. SOx 60 million kg 81% % 8% 2 Women 2 Ethnically Diverse NOx 22 million kg 0% 5%

3% 7%

WHITE ASIAN BLAC OR AFRICAN AMERICAN HISPANIC OR LATINO (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO)

NO ELECTION NATIE HAWAIIAN OR OTHER PACIFIC TWO OR MORE AMERICAN INDIAN OR ALASAN NATIE ISLANDER (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO)

13 2018 | SUSTAINABILITY HIGHLIGHTS *Third-party verified **Self-selected 14 EXECUTIVE SUMMARY SUSTAINABILITY CONTEXT FUTURE COMMITMENT FUTURE SOLUTIONS FUTURE VALUES APPENDIX

CEO Letter CSO Letter NRG at a Glance Sustainability Context

Sustainability Context 2

15 2018 | SUSTAINABILITY HIGHLIGHTS 16 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABILITY CONTEXT OVERVIEW | MEGATRENDS | ROLE OF ELECTRIFICATION

Overview Summit in September, hosted by the State the greatest opportunity for our sector to In the U.S., the approach to climate-centric of California, numerous new commitments transform relies on our ability to respond to policy continues to be fragmented. In 2018, In 2018, events like the record- and coalitions — from renewable energy to these megatrends, which are largely driven not the Environmental Protection Agency (EPA) setting Hurricane Florence and the electrification of transportation — were made by policymakers or electrical engineers, but by introduced the Affordable Clean Energy (ACE) devastating California wildfires across business, finance, and both national and needs and expectations of energy consumers. rule to replace the Clean Power Plan (CPP), an served as stark reminders that sub-national governments. Further, at the 24th In 2018, NRG’s President and CEO Mauricio Obama administration-era rule which sought climate change is no longer a distant Conference of the Parties to the United Nations Gutierrez gave remarks at a Chief Executives to require emissions reduction across the 001 004 005 008 009 threat but an increasing reality. 002 003 006 007 010 011 Framework Convention on Climate Change for Corporate PurposeCUSTOMER (CECP) meeting and power sector. The proposed ACE rule seeks CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE (COP24) in December, held in Poland, the spoke to the following trends: KNOWLEDGEto establish guidelines for state-level GHG ONLINE And in 2018, two significant reports reinforced global community agreed on a “rulebook” emission mitigation for existing coal-fired the scope and urgency of addressing to guide the implementation of the Paris power plants, but no longer requires specific greenhouse gas (GHG) emissions. Agreement at COP21. commitments or a timeline for achievement. In October, the Intergovernmental Panel on In a similar vein, the current administration also Climate Change (IPCC) issued a comprehensive Megatrends of the Power rolled back vehicle fuel efficiency standards. 012 013 016 017 020 021 report detailing the importance of limiting 014 015 018 019 022 CARBON REDUCTION TECHNOLOGYIn both cases, these regulatory moves are RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE Sector decarbonization FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT global warming to no more than 1.5˚Celcius ADVANCESoccurring as the power and transportation INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN Technologically speaking, we are living in of our economy; (2˚ Fahrenheit) above current levels by the end sectors are investing heavily in decarbonization, electricity’s most advanced era. Today’s of this century to prevent the most significant in large part to meet market demand. electricity solutions have the potential impacts of climate change. It further pressed to address some of our society’s largest Debate as to the best path to address that in order to achieve this, “global net human- challenges, including climate change, but we climate change was present across the 2018 caused emissions of CO2 would need to fall by still face both political and cultural disparity 024midterm elections. 028 032 023 025 026 027 029 030 031 033 001 about 45 percent004 from 2010 levels by005 2030, and 008 009 WIND TURBINES SOLAR PANEL FUTURE OUTLET BATTERY RESIDENTIAL TOOLSSERVICE 002 003 toward the006 application of these solutions.007 digitizationSUSTAINABLE of 010 011 ENVIRONMENT COSTMONEY GRID POWER LINES FACILITY CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH WORKFORCE POWER HOUSE MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE WIND FARM FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE achieve ‘net zero’ around 2050,” leaving us with Several successful midterm campaigns KNOWLEDGE ONLINE just about everything; only 12 years to make significant improvement To understand how the broader power leveraged a clean energy platform, including against today’s estimated 3.1-3.5˚ trajectory. sector is changing and the opportunities this many new House members and new and transformation is unlocking, we have identified re-elected governors in Illinois, Colorado, and In November, the U.S. Federal Government three megatrends of the power sector, that are Pennsylvania. Still, voter sentiment as to the released its Fourth U.S. National Climate key to the role of electrification in advancing best path forward remains mixed. Washington Assessment. The core findings conclude that 036 037 040 041 more sustainable energy solutions. 034 035 state voters rejected a carbon tax proposal, 038 039 042 012 013 015 016 017 019 020 021 SAFETY UALITY ACHIEVEMENT TARGET ACHIEVEMENT PEAK BUSINESS MARKET STOCKS 001 004 014 “climate005 change will affect all regions and all 007 008018 009 era of customizationPOWER . LOW011 RISK 022 GOALS TROPHY BALANCED RISK 002 CARBON REDUCTION 003 TECHNOLOGY SUSTAINABLE 006RENEWABLE SUSTAINABLE SUSTAINABLE RENEWABLE010 GROWTH SUSTAINABILITY BADGE HARD HAT BUILDING CUSTOMER CALENDARFLEIBILITY ARROWS PARTNERSHIP COMPUTERPHONE COMPUTERPOLICY REGULATIONONLINE CARBON REDUCTION TECH LIGHT BULB AROUND THE CLOCK SUSTAINABLE PLANT MARKET EYE WITH GEARADVANCES INVESTING CONSULTINGENERGY CREDITS COMMITMENTS SUPPLY CHAIN FREEDOMCUSTOMIZATION while Arizona voters rejected a constitutional SERVICE sectors of the U.S. economy,” reinforcing the FromONLINE the ways power is generated to how it’s KNOWLEDGE amendment that would have mandated 50% scientific consensus that action is needed to distributed and consumed, the entire electricity renewables by 2030. Nevada voters approved reduce GHG emissions across the economy, value chain is in the midst of transformation. Decarbonization a 50% clean energy standard, but rejected and the economy must also prepare and invest At NRG, we are in our own transformation, The need to decarbonize our industry and retail electricity competition, which would have to adapt to our changing climate. working to redefine how power is produced, the economy is an imperative that is driving allowed consumers and businesses to select consumed, and experienced. And while our significant innovation and shift in customer 024 The good news is that the global community 028 032 their electricity provider. 023 025 026 027 industry is largely influenced by technology,029 030 031 033 012 013 SUSTAINABLE WIND TURBINES SOLAR PANEL 016 017COSTMONEY FUTURE OUTLET BATTERY 020 demand across the powerFACILITY021 sector. RESIDENTIAL TOOLSSERVICE 014 015 collectivelyENVIRONMENT rallied around this urgent call to 018 019 GRID POWER LINES 022 CARBON REDUCTION TECHNOLOGY WIND FARM RENEWABLE SUSTAINABLE WORKFORCE POWER RENEWABLE GROWTH SUSTAINABILITY BADGE HOUSE FLEIBILITY ARROWS SUSTAINABLE POLICYmarket REGULATION design, and the policy SUSTAINABLElandscape, SUSTAINABLE PLANT ADVANCES INVESTING ENERGYaction. CREDITS At the inaugural GlobalCOMMITMENTS Climate Action SUPPLY CHAIN

17 2018 | SUSTAINABILITY HIGHLIGHTS 18

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK 024 025 HARD HAT 028 029 BUILDING 032 033 023 LIGHT BULB 026 027 030 031 WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE SOLAR PANEL ENVIRONMENT COSTMONEY OUTLET BATTERY GRID POWER LINES FACILITY TOOLSSERVICE WIND FARM WORKFORCE POWER HOUSE

Corporate buyers who have the option keep The financial community is also increasingly Digitization These technologies allow even residential voting with their feet. Bloomberg New Energy weighing in when it comes to the potential risks Much like in every other part of our modern customers to participate in programs such Finance reported that corporate procurement and costs associated with climate change. economy, digitization is revolutionizing the as demand response, which were formerly deals for renewable energy more than doubled Investor coalitions such as the Climate Action power sector — from connected and smart reserved for big business. Armed with deeper in 2018, narrowly approaching 15 gigawatts. 100+ and Global Investor Coalition on Climate devices to big data. As the internet of electricity insights and information when it comes to Change are encouraging enhanced reporting becomes a reality, data and electrons move their energy consumption habits, today’s ultra- Corporate clean-power deals last year more than and governance around climate matters. together, unlocking more potential than informed consumers are better able to shop doubled the 2017 record Big banks introduced new frameworks, such ever before. and evaluate all of the energy solutions in the as the Principles for Responsible Banking in market to find the plans and products that are 15 GW November 2018 and the Responsible Energy Yesterday’s electric grid is shifting from a best suited for their families. Lending. By encouraging companies to evaluate centralized, analog system (where power is As the desire to have a more hands-on and report on their climate-related risks and generated from limited sources and flows in 10 GW approach to their energy spend has increased, opportunities, these financial institutions are only one direction) to a decentralized, digital, so have the technologies and digital tools we enhancing their ability to make informed long- and multi-directional grid (where power can can provide for both residential and commercial 5 GW term decisions. be generated from a number of distributed resources and stored or dispatched on an consumers. As customers receive more All of these factors, along with the abundance as-needed basis). information about their power use, they are 0 of low-cost natural gas, contribute to the rapidly able to make smarter and more sustainable 2012 2013 201 2015 2016 2017 2018 changing makeup of our nation’s electric grid. Today’s digitization is also enabling real-time choices about electricity spend. This can Source: BloombergNEF In 2018, an Institute for Energy Economics control while making demand much smarter. include smart devices to report on energy and Financial Analysis (IEEFA) report touted On the heels of several base-load retirements spend and also leaning on robust energy and increased renewables penetration, ERCOT In the wake of strong 2018 performance a “record year” for coal retirements, with a efficiency audits to pinpoint appliances or projected record peak demand and tight % with respect to corporate renewable energy substantial 15.4 gigawatts of capacity coming systems that need to be updated. Greater reserve margins for the 2018 summer. Demand 65 contracts, the U.S. renewable energy sector is offline, and the IEEFA expects this trend to information, available in real-time, enables all response programs played an important role expected to see its value to not only the grid, continue. In Texas, ERCOT says that carbon- power consumers to think more critically about A 2018 survey by free resources made up more than 30% of its in managing load by allowing consumers to their power and become aware of the financial research firm Quadrant but companies and consumers alike, grow in reduce demand during peak conditions, saving showed that 65% of 2019. Consulting firm Deloitte explains in a 2018 energy consumption, and a slightly larger and ecological costs associated with their them money in the process. This step toward U.S. respondents would recent outlook that renewables-friendly, state- percentage of its 2019 generation capacity. home or business’ electricity. choose to buy their a “smart grid” is also enabling the advent of power from a renewable level policy and plummeting costs will carry As a result of these trends, the carbon plans and solutions that are as customer- To learn more about how digital options source, if they had positive renewables momentum into 2020. As intensity of the U.S. power sector decreased friendly as they are grid-friendly, reinforcing the are changing the way we power homes and the option. business and consumer interest in renewables 30% over the past 15 years. Independent importance of choice and competition in the organizations, please visit our Solutions for a continues to grow, innovation will bring about of recent political actions, we at NRG stand power market. Sustainable Future section. new products and services to meet their among over 3,500 organizations — including

demand for cleaner power in simplified and businesses, cities, states, and universities — Consumers are also seeking new ways to unexpected ways. that are committed to meeting the goals of engage with their power. Technologies such as the Paris Agreement through implementation smart thermostats, smart appliances, and even of alternative energy sources and extended electric vehicles are giving individuals more decarbonization efforts. choices and control than ever before.

19 2018 | SUSTAINABILITY HIGHLIGHTS 20 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABILITY CONTEXT OVERVIEW | MEGATRENDS | ROLE OF ELECTRIFICATION

Customization Unfortunately, only 13 states and the District The Role of Electrification In 2018, electric vehicle (EV) advocacy We’ve entered the era of customer-centric of Columbia have active, statewide residential reached new heights. Organizations across Released in 2018, the Electric Power Research power. Consumers today expect a range of retail choice programs. These competitive the power value chain announced time-bound Institute’s (EPRI) U.S. National Electrification choices and the ability to personalize their markets account for about one-third of U.S. commitments to increase the deployment Assessment predicted that even modest experience with nearly everything they power consumption. We hope to see the of charging infrastructure, while companies electrification of transportation and consume, and electricity is no different. In benefits and value open in more states, as with large commercial vehicle fleets made households could yield a 20% reduction in markets with retail electricity choice, gone the competitive environment encourages commitments as part of the EV100 to electrify total U.S. emissions with the grid resources of are the days where the average customer innovative, differentiated offerings. and make it easier for their customers and today — and this will only improve as the grid considers electricity a commodity with little employees to do so as well. As businesses pursue renewable power, further decarbonizes. It is expected that by differentiation. From 100% renewable energy % they will not compromise on reliability or 2050, nearly 50% of all energy in the U.S. may We expect this momentum to continue into to free power at night or on weekends, or cost—and in most cases they have no 2019. With more solutions for EV integration, 001 004 005 007 008 009 011 50 002 003 006 come from electricity — up from about 20% 010 CUSTOMER Want to learn about CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET earningEYE WITH GEARairline miles every time you pay your CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE interest in becoming energy market experts EV ownership will become more convenient. customerKNOWLEDGE choice? ONLINE today. In order to achieve the IPCC’s 1.5˚ C It is expected that bill, customers are choosing the plans and Read more from either. It will be important to further innovate scenario with little or no overshoot and avoid Additionally, the deployment of new types of by 2050, nearly 50% our experts. solutions that fit their objectives or lifestyles. and simplify procuring renewable products EVs — from small SUVs to sedans, trucks, and of all energy in the the worst impacts of climate change, the U.S. may come from and solutions for large buyers on the path economy must accelerate the electrification buses —will attract new EV drivers with familiar electricity — up from toward decarbonization. of all energy end use. and convenient options. about 20% today.*

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB

Source: National Renewable Energy Laboratory

21 2018 | SUSTAINABILITY HIGHLIGHTS *Source: The U.S. National Electrification Assessment. 22 EXECUTIVE SUMMARY SUSTAINABILITY CONTEXT FUTURE COMMITMENT FUTURE SOLUTIONS FUTURE VALUES APPENDIX

CEO Letter CSO Letter NRG at a Glance Sustainability Context

Commitment to a 3 Sustainable Energy Future

23 2018 | SUSTAINABILITY HIGHLIGHTS 24 001 004 005 008 009 001 004 005 002 007 003 008 009 006 011 007 010 011 002 003 CUSTOMER006 CALENDAR PARTNERSHIP010 COMPUTER ONLINE CARBON REDUCTION TECH CUSTOMER EXECUTIVE SUMMARYCALENDAR CONTEXT PARTNERSHIPCOMMITMENT SOLUTIONS VALUESMARKET COMPUTERPHONE APPENDIX EYE WITHCOMPUTER GEAR ONLINE CARBON REDUCTION TECH CONSULTINGAROUND THE CLOCK COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK MARKET EYE WITH GEAR SERVICECONSULTING FREEDOMCUSTOMIZATION 001 001004 005 SERVICE 004 005008 009 KNOWLEDGEONLINE 008 009 ONLINE 002 003 002 003006 007KNOWLEDGE 006 007010 011 010 011 SUSTAINABLE COMMITMENT CUSTOMER CUSTOMERCALENDAR PARTNERSHIP CALENDAR COMPUTERPARTNERSHIPOVERVIEW ONLINE | U.N. SUSTAINABLECARBON GOALS REDUCTION | GOVERNANCE TECH | GENERATION | PERFORMANCE | COMPUTER SUPPLIERS ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR MARKET EYECONSULTING WITH GEAR COMPUTERPHONE CONSULTING FREEDOMCUSTOMIZATIONCOMPUTERPHONE AROUND THE CLOCK FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE SERVICE KNOWLEDGE KNOWLEDGE ONLINE ONLINE

012 013 016 017 020 021 012 013 015 016 017 014 019 015 020 021 018 019 022 014 CARBON REDUCTION TECHNOLOGY018 RENEWABLE SUSTAINABLE022 RENEWABLE GROWTH SUSTAINABILITY BADGE CARBON REDUCTION TECHNOLOGY SUSTAINABLE RENEWABLE SUSTAINABLE FLEIBILITYSUSTAINABLE ARROWS SUSTAINABLERENEWABLE GROWTH SUSTAINABILITY BADGE Our five sustainabilityPOLICY REGULATION pillars SUSTAINABLE SUSTAINABLE PLANT FLEIBILITY ARROWS Overview ADVANCESPOLICY REGULATION ENERGY CREDITS COMMITMENTSSUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN INVESTING SUPPLY CHAIN Our comprehensive approach to sustainability is one of five primary focuses of the NRG has a broad sustainability strategy aimed at embedding sustainability into the culture NRG business strategy, further reinforcing the commitment to integration across and fabric of the organization and ensuring that sustainability becomes a core function that 012 013 012 013016 017 016 017020 021 020 021 014 015 014 015018 019 018 019022 touches all aspects of our business.022 To help create a sustainable energy future, we prioritize CARBON REDUCTION TECHNOLOGY CARBON REDUCTION TECHNOLOGYRENEWABLE SUSTAINABLE RENEWABLE RENEWABLESUSTAINABLE GROWTH SUSTAINABILITY BADGE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE FLEIBILITY ARROWS POLICYSUSTAINABLE REGULATION SUSTAINABLE all business functions.POLICY REGULATION SUSTAINABLESUSTAINABLE PLANT SUSTAINABLE PLANT ADVANCES INVESTING ENERGYADVANCES CREDITS COMMITMENTS INVESTING ENERGYSUPPLY CREDITS CHAIN COMMITMENTS SUPPLY CHAIN our work into five key pillars:

001 004 001 005 004 008 005 009 008 024 009 025 011 028 029 032 033 002 003 002 023 006 003 024 007 025 006 027 010 007 023 028 011 029 010 026 031 027 032 033 030 031 CUSTOMER CALENDARCUSTOMER PARTNERSHIP CALENDAR COMPUTER ONLINEPARTNERSHIP CARBON026 REDUCTION TECH COMPUTERWIND ONLINE TURBINES CARBON REDUCTIONSOLAR TECHPANEL030 FUTURE OUTLET BATTERY RESIDENTIAL TOOLSSERVICE MARKET EYE WITH GEAR MARKET SUSTAINABLECONSULTINGEYE WITH GEARWIND TURBINESCOMPUTERPHONE SOLAR PANEL CONSULTING COSTMONEYFREEDOMCUSTOMIZATIONCOMPUTERPHONESUSTAINABLE FUTUREAROUND THE CLOCK OUTLET BATTERY FREEDOMCUSTOMIZATIONENVIRONMENT AROUND THECOSTMONEY CLOCKRESIDENTIAL TOOLSSERVICE GRID POWER LINES FACILITY SERVICE ENVIRONMENT GRID POWER LINES FACILITY WORKFORCE SERVICE KNOWLEDGE ONLINE ONLINEWIND FARMWORKFORCE POWER HOUSE POWER HOUSE KNOWLEDGE WIND FARM Sustainable business Sustainable operations The Sustainable Business pillar guides our Our commitment to sustainable operations company in the foundational pieces of strong includes strong goals in reducing greenhouse sustainability leadership including governance, gas emissions and water use, and increasing

012 013 012 016 013 017 016 020 017 021 020 036 021 037 040 041 014 015 014 018 015 036 019 037 018 034 019 035 040 041 022 transparency,039 sustainability reporting, and recycling rates042 of coal combustion residuals CARBON REDUCTION TECHNOLOGY 034 035 RENEWABLE SUSTAINABLE 038 039 022 SUSTAINABILITY BADGE 042 038 CARBON REDUCTION TECHNOLOGY SUSTAINABLE RENEWABLE SUSTAINABLEFLEIBILITY ARROWS SUSTAINABLESAFETY UALITYSUSTAINABLE ACHIEVEMENTRENEWABLE TARGET GROWTH SUSTAINABILITY BADGE SUSTAINABLELOW RISKBUSINESS RENEWABLESAFETY GROWTHMARKET UALITY STOCKS ACHIEVEMENT TARGET ACHIEVEMENT PEAK BUSINESS MARKET STOCKS 024 025 FLEIBILITY ARROWS 024 025028 POWER 029LOWPOLICY RISK REGULATION 028 GOALSLeading TROPHY POLICY REGULATIONPOWERACHIEVEMENTSUSTAINABLEPurposeful029 PEAK032 PLANT Predictable033 earnings DisciplinedBALANCED capital RISK SUSTAINABLE GOALS PLANT TROPHY 032 033 BALANCED RISK 023 ADVANCES023026 027 INVESTING ENERGY CREDITSADVANCES COMMITMENTS 026 INVESTING HARD HATSUPPLY027030 CHAINENERGY CREDITS COMMITMENTS031 SUPPLY CHAIN BUILDING 030HARD HAT 031 BUILDING WIND TURBINES WIND TURBINES FUTURE LIGHT BULB FUTURE LIGHT BULBRESIDENTIAL RESIDENTIAL SUSTAINABLE SOLAR PANEL SUSTAINABLEENVIRONMENT COSTMONEY SOLAR PANEL ENVIRONMENTOUTLET BATTERY GRIDCOSTMONEY POWER LINES FACILITYretail brands OUTLETgeneration BATTERY + GRIDstrongTOOLSSERVICE POWER FCFbG LINES allocationFACILITY stakeholder engagement.TOOLSSERVICE across all facilities. WIND FARM WIND FARM WORKFORCE POWER WORKFORCE POWERHOUSE HOUSE

Sustainable customers Sustainable suppliers A key aspect of our sustainability strategy is It is also important for companies to address 024 024 028 025 028 032 029 032 033 023 025 026 023 027 029 026 030 027 031 Comprehensive033 030 sustainability031 WIND TURBINES WIND TURBINES FUTURESOLAR PANEL FUTURE RESIDENTIALOUTLET BATTERY RESIDENTIAL TOOLSSERVICE SUSTAINABLE SOLAR PANEL ENVIRONMENTSUSTAINABLE COSTMONEY OUTLET BATTERYENVIRONMENT GRID POWERCOSTMONEY LINES FACILITY TOOLSSERVICEGRID POWER LINES FACILITY providing sustainable solutions for our customers sustainability in their entire value chain. We have WIND FARM WIND FARM WORKFORCE POWER WORKFORCE HOUSE POWER HOUSE + strong governance and helping to lead in the transition to a more established ambitious goals and started to put sustainable future. Our goals are to continue systems in place to measure and ultimately 036 037 036 037040 041 040 041 034 035 034 035038 039 038 039042 042 SAFETY UALITY ACHIEVEMENT TARGET SAFETY UALITY ACHIEVEMENTBUSINESS TARGET MARKET STOCKS BUSINESS MARKET STOCKS to provide more clean energy choices and help reduce the impacts in our supply chain. POWER LOW RISK POWER GOALSLOW RISK TROPHY ACHIEVEMENT PEAK GOALS TROPHY ACHIEVEMENTBALANCED PEAKRISK BALANCED RISK HARD HAT HARD HAT BUILDING BUILDING LIGHT BULB LIGHT BULB reduce the overall environmental impacts.

036 037 036 040 037 041 040 041 034 035 034 038 035 039 038 042 039 042 SAFETY UALITY ACHIEVEMENT TARGET SAFETY UALITY BUSINESSACHIEVEMENT TARGET MARKET STOCKS So, what do we meanBUSINESS when we say comprehensiveMARKET STOCKS sustainability? POWER LOW RISK POWER GOALS TROPHYLOW RISK ACHIEVEMENT PEAK GOALS TROPHY BALANCEDACHIEVEMENT RISK PEAK BALANCED RISK HARD HAT HARD HAT BUILDING BUILDING LIGHT BULB LIGHT BULB We aim to embed sustainability into the culture and fabric of the organization and work to ensure Sustainable workplace this value becomes a core function of our company. That equates to reducing risk (and ensuring Our commitment to a sustainable workforce at continuity), continuing to enhance brand value, and driving business results. As such, we’ve NRG includes a focus on worker safety, health categorized the five segments of the business that directly tie to relevant goals. and wellness, equality, diversity, and employee engagement, as well as environmentally conscious workplaces.

United Nations Sustainable According to a report by KPMG, four in 10 of toward the SDGs. Our core business strategy efficient practices, and adopting clean energy Development Goals the world’s largest companies are already and vision most directly aligns with SDG 7, technologies and infrastructure. In 2018, referencing the SDGs in their corporate designed to “Ensure access to affordable, NRG introduced Renewable Select to make The 17 Sustainable Development Goals (SDGs) sustainability reporting, which suggests that reliable, sustainable, and modern energy for all.” procuring renewable energy simple, flexible, and are a global set of goals, targets, and indicators the interest in the SDGs from the business convenient for business customers — unlike developed by the United Nations to guide We deliver against this goal in multiple ways, sector has been growing considerably since most renewable contracts in force today. countries, communities, and organizations including promoting competitive energy choice they were launched in 2015. in their work to create a more sustainable and offering renewable energy plans in all the Our activities at NRG also directly support future. These goals are intended to address Aligning with the SDGs retail markets in which we operate. Further, SDG 13 - Climate Action, through our all aspects of sustainable development businesses can accelerate the transition commitments to combat the negative effects Though there is not yet a standardized process spanning a wide range of environmental and to an affordable, reliable, and sustainable of climate change, as well as several other for corporate reporting on SDGs, we continually social initiatives. Achieving the SDGs will require energy system by investing in renewable SDGs, including SDG 5 - Gender Equality, and assess our business strategy and operations to significant contributions from both the public energy resources, prioritizing energy- SDG 11 - Sustainable Cities and Communities. identify opportunities for a greater contribution and private sectors.

Ensure access to affordable, reliable, Take urgent action to combat climate sustainable, and modern energy for all change and its negative impacts

Empowered Customers Customer Solutions • State-of-the-art retail platform • Lower GHG emissions • Plans and solutions for all needs and budgets • Added resilience • Advocate for competitive markets • Sustainable energy consulting • Champion of customer choice • Customer emissions avoidance goal

Sustainable Products Company Actions • Flexible generation • Reduced GHG fleet emissions • Energy storage • Science-based target • 100% renewable plans offered in all our retail markets • Commitment to sustainable supply chain • Demand response • Carbon-capture innovation • Climate-change principles

The Sustainable Development Goals

Governance our customer-centric business strategy, while to manage the company’s environmental, sector analysts to meetings, resulting in our enhancing gender and ethnic diversity. economic, and social impacts, including ability to address and unify these topics and Strong governance is a foundation of our environmental, climate change, and demonstrate their importance to the overall decision making. In 2018, the size of our Board In addition to our board chair who is a Ph.D. sustainability policies and programs.” company strategy. As further demonstration of Directors was reduced from 12 to 10, with scientist and strong supporter of sustainability, of our commitment to transparency, we posted several directors retiring and two new directors the board committee directly responsible for Investor engagement and our ESG investor presentation online. joining the board. This strengthened the skills sustainability oversight is the Governance & discourse and experience consistent with the direction of Nominating Committee, whose risk oversight In 2017, the Financial Stability Board’s Task We engage with our investors on focus areas include: “Strategies and efforts Force on Climate-related Financial Disclosures environmental, social, and governance (ESG) (TCFD) issued recommendations for issues in a proactive, holistic, and integrated Board diversity companies to help them inform their investors, manner. In 2018, we organized investor lenders, and insurance underwriters on Gender Diversity Ethnic Diversity Independence meetings with NRG leadership, including climate-related risks. This included information Investor Relations, Sustainability, and our to identify material risks and opportunities to Corporate Secretary. This allowed us to which companies are exposed. Investors and share and discuss key ESG issues, including 2 2 2 2 2 2 stakeholders are asking for climate scenario governance, executive compensation, and of 10 Directorsof 10 Directorsof 10 Directors of 10 Directorsof 10 Directorsof 10 Directors of 10 Directorsof 10 Directorsof 10 Directors analysis as part of the TCFD framework. board composition, as well as sustainability as However, rapid and complex change is it pertains to our overall company strategy and disrupting the operating context for the energy transformation plan. This approach encouraged business beyond merely climate impacts. 2 Women 2 Ethnically Diverse 90% Independent (All Except CEO) our investors to bring ESG analysts, proxy 90% Meet Heightened Committee and governance experts, and sometimes Independent Standards

In 2018, we began work with Business for conditions under different warming levels Approach to stakeholder We were also a member of several Social Responsibility (BSR), a global nonprofit and climate impact projections in line with engagement sustainability-focused organizations, including business network dedicated to sustainability, the recommendations of the TCFD. the following: Beyond investors, we actively seek to undertake climate scenario analysis. BSR Anticipated outcomes of this work, which we opportunities to engage with stakeholders • BSR helped NRG begin to test potential futures for will conclude in 2019, include: and foster a collaborative dialogue. In support • Ceres the business, using multidimensional qualitative of this effort, NRG is a member of Ceres, a scenarios with extensive climate input, and • Improved futures thinking capability of • Corporate Eco Forum NRG and a more holistic understanding nonprofit organization whose mission is to including other future factors that can create • Corporate Responsibility Association of emerging issues that will confront “mobilize investor and business leadership to risks or opportunities. These scenarios will the business. build a thriving, sustainable, global economy.” • Electric Power Research Institute’s Energy enable NRG to examine how our strategy would With Ceres, we’ve set up a formal Stakeholder Sustainability Interest Group perform under different conditions and develop • Creation of a shared perspective on key risks, opportunities, and options to Advisory body, which includes some of our key • GreenBiz Executive Network options to make it more robust and resilient. enhance resilience. investors, customers, leading NGOs, policy The scenarios have a strong climate dimension • Rocky Mountain Institute Business groups, and energy experts. We constructively and will also be used to explore business • Climate scenario analysis in line with the Renewables Center TCFD recommendations. engage with the Stakeholder Advisory • Sustainability Leadership Forum group, as they provide us useful feedback on Climate scenarios how to ensure alignment with stakeholder • Sustainable Brands expectations, both commercial and otherwise. • Natural Gas Supply Collaborative SCENARIO ONE SCENARIO TWO In 2017, the Ceres Stakeholder Advisory Throughout 2018, we continued to engage Ambitious decarbonization policy Ambitious decarbonization policy group formally convened for the first time + commoditized energy + customized energy with policymakers in Washington, D.C., and and met with key NRG leaders in person at our at the state level. We also maintained our headquarters in Princeton, New Jersey, and held relationships with groups such as the National ˚ ˚ several subsequent meetings conducted via 1.5 C 2C Climate Coalition, the Electric Power Supply teleconference. We remained in dialogue with Association, and various informal organizations. Emissions Reductions: Emissions Reductions: the Advisory group in 2018 and are scheduled to • IPCC Special Report on 1.5C • U.S. Mid-Century Strategy for Deep Decarbonization When possible, we collaborate with major (reference scenario) meet again in 2019. Climate Impacts: environmental groups on clean energy access • IPCC Special Report on 1.5C Climate Impacts: • U.S. Fourth National Climate Assessment • U.S. Fourth National Climate Assessment (“lower Additionally, we proactively engage with other and climate solutions. Typically, we engage on scenario”) leading companies and organizations to help legislative and regulatory actions designed to advance standards, share best practices, mitigate GHG emissions, as well as policies SCENARIO THREE SCENARIO FOUR activate stakeholders, and create action toward that foster the development and deployment Limited decarbonization policy Limited decarbonization policy a sustainable economy. To that end, in 2018 + customized energy + commoditized energy of competitive low-carbon power generation NRG worked with leading disclosure-focused technologies. We are most active in the ˚ ˚ organizations including: debate aimed at protecting and expanding ~3 C ~4 C • Sustainability Accounting Standards competitive power markets and consumer Board Alliance choice, both of which we believe are critical Emissions Reductions: Emissions Reductions: enablers of achieving cost-competitive low- • IEA 2018 New Policies Scenario • U.S. EIA Annual Energy Outlook 2018 Reference Case • CDP Climate Impacts: Climate Impacts: carbon outcomes. Learn more about our policy • U.S. Fourth National Climate Assessment • U.S. Fourth National Climate Assessment • GRI GOLD Community engagement efforts here. (“higher scenario”) • BSR Future of Reporting

Generation Customer focus and the Texas Commission on Environmental station. Encina took roughly 12 hours to start Quality near the Elbow Creek wind farm up and would frequently operate overnight We have made significant progress in The history of electrification is marked by continues to provide valuable data on energy (even if not needed), just to be ready to meet rebalancing our generation fleet in terms of technological advancements connecting storage and impact on the grid. demand the next day, while using substantial scale, fuel type, and location to better serve power generation systems with consumers ocean water for cooling purposes and potable our residential, commercial, and industrial of electricity to raise the quality of life for all. In states such as California, there is a growing water in its steam cycle. By contrast, CEC does customers. We know that our customers At times, this requires reevaluating what part need for fast-ramping resources when solar not use ocean water for cooling and eliminates increasingly want sustainable energy solutions of the market we can best address and serve. power drops off at night. In 2018, we developed the use of potable water in its generation to reduce risk and enhance value. Today, we proudly serve our customers in our the Carlsbad Energy Center (CEC) to meet this processes. Finally, CEC uses approximately digital society where reliable electricity is critical emergent need*. CEC consists of five fast- 30% less natural gas and emits at least 50% Rebalanced and better-matched to our lifestyles. Just as important as reliability, start, natural gas-fueled combustion turbines less criteria pollutants than Encina, all for the portfolio our customers want affordable power. Further, that can come online in 10 minutes and ramp same amount of energy produced. (in TWh) today’s customers also want electricity from down as demand subsides. CEC effectively increasingly cleaner sources. replaced our recently retired Encina power A customer-focused future to match peaks in customer demand with the power that 123 customers want brings the opportunity to be creative in meeting this need. Sometimes, it

67 may mean owning generating units, but it also 5 means renting them or buying power from plants owned by others.

Reliability 2015 2018 2018 Generation Generation Retail We invest millions annually in maintenance to ensure generating units are available when customers need power — especially on the As part of this rebalancing, in August 2018, hottest (and coldest) days of the year, when we completed the sale of our renewables demand is at its highest. platform, causing some to wonder about NRG’s commitment to renewables. Our decision While renewable generation brings tremendous was to cease being an owner and developer of benefits in the form of increasingly competitive, renewables projects, while remaining steadfast clean energy, its intermittent nature presents in our commitment to bring renewable energy challenges for grid integration. solutions and plans to customers of all sizes. We are responding to this need, supporting the The sale of the renewables platform does not advancement of battery technology as well as in any way impact our commitment to provide flexible, fast-start generation able to activate comprehensive energy solutions for corporate in minutes. Our battery project with Toshiba and residential customers.

Resilience during extreme rain events like we saw during Carbon reduction Resilience includes the ability to generate Hurricane Harvey). Likewise, when a natural It is widely agreed among the scientific community that the only way to meet the goals of the

001 004 005 disaster such as flooding impacts plants in one 008 009 002 003 power during and after extreme weather 006 007 Paris Agreement is to reduce the carbon 010output of existing thermal plants,011 in addition to CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE area, plants in different areas can take over and KNOWLEDGE events. Our fleet utilizes a diverse mix of fuels, ONLINE investing in new carbon-free renewable generation, scaling battery storage, and enhancing the which has proven to be highly beneficial in keep the power flowing. controllability of demand through digitization. In 2018, our Petra Nova carbon capture system extreme weather events and has contributed Resilience also means making sure that we reached a milestone of 2 million tons of CO2 captured and sequestered underground. In 2017, to the resilience of the electric power system. harden our physical assets to stay operational our Joliet, Illinois plant was converted to run on gas instead of coal. As a result, the CO2 output of 2.3M When one particular fuel supply becomes both plants was greatly reduced. 001 004 005 008 in the face of climate 009impacts. One example 002 003 006 007 010 011 Milestone of 2.3 million CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING curtailed orCOMPUTERPHONE constrained, the ability of a power FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE is the NRG Cottonwood plant in East Texas, tons of CO2 captured KNOWLEDGE ONLINE We are often asked how we will meet our GHG reduction goals, especially following the plant to rely on multiple fuel sources enables downstream from a flood control dam. since inception as 012 013 016 017 announcement020 that we were divesting our021 renewables platform. There are four levers to reduce 014 015 018 019 022 of the end of 2018 at CARBON REDUCTION TECHNOLOGY grid operatorsRENEWABLE to maintain reliable electricity.SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE Due to its locationPOLICY and REGULATION increase in extreme SUSTAINABLE our GHG emissions and meet our science-based climate targets:SUSTAINABLE PLANT Petra Nova. ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN Fuel diversity means that oil and coal, with weather, the Cottonwood plant flooded in on-site fuel storage, can take over for natural 2016 and again in 2017. To prevent future gas when gas supplies are interrupted (such as prolonged outages, in 2018, we built a flood during freeze events as we saw with the Polar protection system at the plant to reduce 1. Retiring uneconomic units. By retiring units, total emissions from 012 013 016 017 Vortex of 2014) and natural gas can take over 020 021 014 015 018 019 the likelihood that future floods will force 022 those units go to zero and contribute to our GHG goal. CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE for coal whenPOLICY coal REGULATION delivery is impacted (suchSUSTAINABLE as SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAINthe plant to cease operating.

024 028 032 023 025 026 027 029 030 031 033 WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE SOLAR PANEL ENVIRONMENT COSTMONEY OUTLET BATTERY GRID POWER LINES FACILITY TOOLSSERVICE WIND FARM WORKFORCE POWER HOUSE 2. Switching from coal to gas. By implementing this change, these plants will burn more than 50% cleaner once switched.

036 037 040 041 3. Running existing plants less often. By running plants less 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING 001 frequently, total emissions will decrease. 004 005 008 009 LIGHT BULB 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE KNOWLEDGE ONLINE

001 004 005 008 009 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE ONLINE KNOWLEDGE 4. Carbon capture and sequestration (CCS), similar to our 036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS Petra Nova plant, which now captures more than 1 million tons POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB a year on average.

012 013 016 017 020 021 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT When it comes to carbon reduction, weADVANCES are building on our core strength of diverse power INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN generation to transform and increasingly build a cleaner portfolio. 012 013 016 017 020 021 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN

35 2018 | SUSTAINABILITY HIGHLIGHTS 36 024 028 032 023 025 026 027 029 030 031 033 WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE SOLAR PANEL ENVIRONMENT COSTMONEY OUTLET BATTERY GRID POWER LINES FACILITY TOOLSSERVICE WIND FARM WORKFORCE POWER HOUSE

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE COMMITMENT OVERVIEW | U.N. SUSTAINABLE GOALS | GOVERNANCE | GENERATION | PERFORMANCE | SUPPLIERS

Environmental Performance and we are on track to meet our science-based Resources Institute, the World Wildlife Fund, emissions reductions goal years ahead of plan. and the U.N. Global Compact. The initiative At NRG, sustainability is about much more than works with companies and approves only environmental responsibility, as demonstrated We have also helped customers avoid nearly corporate targets that align with a 2°C by our comprehensive five-pillar approach. Still, 74 million metric tons CO2e through the sale of limit to global warming. as an energy company, managing and reducing carbon-free power. We anticipate continuing to our environmental footprint is certainly a build our capacity to serve our customers with To enable companies to set targets that centerpiece of our overall program. innovative renewable energy solutions. are aligned with climate change scenarios published as part of the 2018 IPCC Special As such, we’ve outlined the key data that Science-based GHG emission Report, in 2019, SBTi will be reviewing its showcases our environmental performance reduction targets target validation protocols to incorporate in 2018. These metrics help us understand In 2015, we became one of the first companies updates and provide guidance. After the where we’ve been successful in our efforts to set science-based GHG emission reduction updated guidance is published, we will review and where we can improve. In a year where the targets and to have them validated and and evaluate whether we need to reframe U.S. power sector increased slightly in overall approved by the Science Based Targets our science-based targets in line with evolving GHG emissions, ours decreased by about 2% initiative (SBTi), a joint effort of CDP, the World SBTi protocol. 2 2 73% of the way to our 2030 goal 2 2 NRG’s Revenue Carbon Intensity Tracking toward100 our GHG Avoided customer GHG emissions reduction goals (mTCO2e) 2 (NRG U.S. CO2e emissions scopes 1, 2, & 3*) mTCO2e 10 6000 2 2 80 2 %120 7 120 5012 62 100 100 5000 628 decrease 63 100 from 201 80 % 77% 80 7 000 72 60 COAL decrease 80 22% RGGI 62 from 201 7 71 NATURAL GAS 63 60 60 56 3000 8 RGGI 57 AB32 7 7 60 8 6 6 RGGI RGGI 0 5 0 2000 0 37 37 OTHER OTHER OTHER OTHER OTHER 0 33 1% OIL 20 20 1000 20 20 7 0 0 0 0 201 2015 2016 2017 2016 2017 2018 201 2015 2016 2017 2018 2030 2050 201 2015 2016 2017 2018 2020E NRG GHG7 emissions by fuel type 2018

U.S. CO e EMISSIONS (MILLION METRIC TONS) mTCO e M revenue To ensure consistency and relevance, NRG’s base year emissions have This is a cumulative absolute number based on carbon offsets sold and total 2 2 been recalculated according0 to GHG Protocol: A Corporate Accounting and renewable megawatt-hours, including renewable energy credits, generated U.S. GENERATION FROM FOSSIL FUELS (MILLION MWh) Historical values have been adjusted for U.S. asset sales. Reporting Standard, Revised Edition following generation asset portfolio and sold by NRG brands. changes. This revised base year has been verified201 by a third party. 2015 2016 2017 2030 2050

Air emissions NRG Annual U.S. SO emissions NRG Annual U.S. NO emissions NRG Annual U.S. mercury emissions (EMISSIONS U.S. TONS) (EMISSIONS MILLION ILOGRAMS) (EMISSIONS U.S. TONS) (EMISSIONS MILLION ILOGRAMS)x (EMISSIONS MILLION ILOGRAMS)x (EMISSIONS U.S. TONS) (EMISSIONS MILLION ILOGRAMS) (EMISSIONS MILLION ILOGRAMS) (EMISSIONS MILLION ILOGRAMS) The charts to the right include (Emissions million kilograms) (Emissions million kilograms) (Emissions in U.S. tons)

emissions from NRG-owned 160 160 160 generation. Our SOx and NOx 10 10 10 70 emissions declined 3% and 4%, 10 70 (THE HIGHER THE PERCENTAGE THE BETTER) 10 70 (THE HIGHER THE PERCENTAGE THE BETTER) 10 (THE HIGHER THE PERCENTAGE THE BETTER) respectively, from 2017. Factors 2 60 leading to the decreases include2 120 60 2 120 60 120 80 80 80 reductions in fleet-wide annual 103 103 103 50 100 50 70 66 100 50 70 66 100 70 66 net generation and improved % 6 % 6 % 6 decrease 60 decrease 60 decrease 60 environmental controls. In 2018, since 201 60 since 201 60 since 201 60 0 38 80 78 0 38 80 78 0 38 80 78 1.2 our% mercury emissions decreased 1.2 % 1.2 % decrease 50 decrease 50 decrease 50 2 since 201approximately 7% from 20171. The 61 60 2 since 201 61 60 2 since 201 61 60 1 30 1 60 30 1 60 30 60 0 0 0 23 23 reduction was driven by the slight 23 23 23 23 22 22 22 % decrease in coal-fired generation. % 30 % 30 30 0.57 20 0.57 0 20 0.57 0 20 0 decrease decrease decrease since 201 since 201 20 since 201 20 20 10 20 10 20 10 20 0.21 0.21 0.21 0.15 0.1 0.15 0.1 10 0.15 0.1 10 10

0 0 0 0 0 0 0 0 0 0 0 0 201 2015 2016 2017 2018 201 2015 2016 2017 2018 201 2015 2016 2012017 20152018 2016 2017 2018 201 2015 2016 2017201 2018 2015 2016 2017 201 2015 2016 2012017 20152018 2016 2017 2018 201 2015 2016 2017201 2018 2015 2016 2017 201 2015 2016 2017 2018 201 2015 2016 2017

In the above charts all assets sold as of Dec. 31, 2018 have been Recycling rate (%) Recycling rate (%) Recycling rate (%) removed from inventories.

1In the case of mercury emissions, volumes are estimated for some facilities 39 2018 | SUSTAINABILITY HIGHLIGHTS due to incomplete data at time of publication. 40 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE COMMITMENT OVERVIEW | U.N. SUSTAINABLE GOALS | GOVERNANCE | GENERATION | PERFORMANCE | SUPPLIERS

Water Climate change could affect the availability Operating some of our power generation of a secure and economical supply of water facilities depends on sufficient amounts in some locations, which is essential to NRG of available fresh water, as well as recycled, generation plants. brackish, and ocean water. The primary direct use of this water is cooling of Water effluents and waste condensers during power generation. Reducing effluents and waste is important to us We have designed our approach to water as stewards of the environment. For example, management with the understanding that in completing the annual CDP Water Security water issues (usage, scarcity, quality, and questionnaire we use tools such as state water biodiversity) are site-specific. quality studies and designations and the World Resources Institute’s Aqueduct tool to evaluate We have invested in water-saving technologies water sustainability impacts. at our generating stations where cost-effective. We also reduce the water required to produce In 2018, we continued to enhance the current electricity by using non-potable water such waste diversion program by evaluating waste as brackish ocean water or grey water from generated and identifying recycling opportunities. sewage treatment plants, and by reusing water We worked with business partners to implement in plant cooling and boiler systems. waste reduction and recycling plans.

2017 NRG Water Withdrawal and Discharge* Water withdrawal by source

201 WATER TO OTHERS 108 2351 (MILL M3) 23% 335 232 OCEAN

TOTAL FRESH WATER 2015 356 2528 (MILL M3) Water 53% 36 283 FRESH WATER TOTAL NON-FRESH WATER withdrawal (MILL M3) 2016 2652 1878 24% 2538 1863 NON-FRESH WATER

2017 1703 213 15 20 %

2018 withdrawal 23 211 decrease Water withdrawal by source from 201 226 2126 2018 2030 3880

0 1000 2000 3000 000 5000 6000 7000

Coal combustion residuals excavation, or diked area formed primarily • Promote stewardship and conserve Environmental performance metric* In 2018, NRG facilities generated 1.3 million of earthen materials. biodiversity at our facilities and in our % of baseline (lower is better) communities. metric tons of coal combustion residuals BASELINE (CCR), more than 873,000 metric tons (63%) Environmental compliance • Seek constructive engagement in the statement of which were recycled. Coal combustion legislative and regulatory process, as 91% 90% We are committed to creating value for well as with environmental stakeholders, residuals are used in industrial applications such our owners by managing our business in through honest, respectful, and 74% as on- and-off-plant road construction, as well economically and environmentally responsible responsible dialogue. as in materials such as cement. This practice 57% ways that focus on continual improvement. • Measure the effectiveness of our reduces the need for mining of virgin resources XX% To succeed, we must: environmental program by tracking such as gravel and gypsum. environmental performance and • Meet or exceed applicable environmental On April 17, 2015, the EPA promulgated a rule communicating our performance laws and instill environmental responsibility internally and externally. which regulates the disposal of CCRs. We in our employees. maintain a CCR Rule Compliance Data and • Reduce our environmental impacts (including Information page on nrg.com as required. NRG climate) by integrating environmental 2014 2015 2016 2017 2018 2019 has 14 surface impoundments defined by 40 considerations into business operations * Our environmental performance metric counts environmental incidents such as reportable spills, permit deviations and receipt of Notices of Violation. Fewer CFR 257.2 as a facility or part of a facility that is a and strategy, operating more efficiently, and incidents means a lower score. The chart shows the company’s EKPI score per year as a percentage of the baseline year of 2014. *Baselines have been natural topographic depression, human-made using cleaner, cost-effective technologies. recalculated to reflect the composition of the NRG generation fleet. In some cases, that has resulted in differences from percentages previously reported.

Coal(THE combustion HIGHER THE PERCENTAGE residual THE BETTER) recycling rate (%)*

100

70 62 63 6 63 60 57

0 201 2015 2016 2017 2018

Recycling rate (%) * Baselines have been recalculated to reflect the composition of the NRG generation fleet. In some cases, that has resulted in differences from beneficial use percentages previously reported.

Sustainable Suppliers increase over 2017. We are also honored to be of any manufacturing agreement put forth management shall foster understanding named a CDP Supplier Engagement Leader for by NRG. To manage compliance with these of manufacturers’ management systems. In 2018, we made progress against all three 2018, the second consecutive year. standards, manufacturers are encouraged to Should non-compliance with the Standards of our goals to enhance the social and establish policies and performance objectives be determined, manufacturers shall engage environmental performance of the NRG Manufacturing Standards related to labor, grievances, health and safety, in corrective action. Long-term corrective supply chain. We continued to invest in and NRG requires all contract manufacturers environmental responsibility and ethics, and action involves identification of root causes and enhance the way we select suppliers, relying on (including subcontractors) to adhere to business integrity. implementation of management systems environmental, social, and governance factors our Social Responsibility Standards for to ensure compliance in the future. NRG Third-party supplier audits are conducted to create a sustainability ranking. Ongoing Manufacturers which, at minimum, requires reserves the right to suspend any agreements on a regular basis, depending on our total amendments to our standard agreements and compliance with applicable laws and with the manufacturer until corrective supplier portfolio and other administrative internal policies ensure these sustainability regulations, industry best practices, and actions are implemented, or to terminate considerations. All new suppliers are audited requirements are incorporated. the International Labour Organization (ILO) its relationship with the manufacturer. NRG as soon as is practical upon engagement with Declaration on Fundamental Principles and reports manufacturing audits to the Board’s Additionally, leveraging the world-leading CDP NRG. Depending on a facility’s operational Rights at Work. Manufacturers who employ Audit Committee. Supply Chain engagement program, we asked environment, confidential employee subcontractors shall verify that these standards our top suppliers to disclose information about interviews may also be conducted with are upheld by their subcontractors. These their climate change and water performance employees indirectly involved in facility standards are referenced and made part and 39% of them submitted a response, an operations. In addition, interviews with

001 004 005 008 009 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE KNOWLEDGE Supply chain performance goals ONLINE 80% 25% Achieve GHG and water disclosures Reduce supply chain carbon and Develop and implement responsible 012 013 016 017 020 021 014 015 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE from 80%FLEIBILITY of major ARROWS suppliers by 2020SUSTAINABLEwater intensity 25% by 2025 sourcing principles POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES INVESTING ENERGY CREDITS COMMITMENTS SUPPLY CHAIN

2018 supplier response highlights*

** 023 024 %025 % 027 028 029 032 033 026 030 031 WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE SOLAR PANEL ENVIRONMENT COSTMONEY OUTLET BATTERY GRID POWER LINES FACILITY TOOLSSERVICE WIND FARM 39 74 WORKFORCE POWER HOUSE 2018 response rate, improved from of NRG’s suppliers have an active SUPPLIER 34% in 2017 target to reduce their emissions ENGAGEMENT LEADER 2019 % %

92 036 23 040 041 037 034 035 038 039 042 of our respondingSAFETY UALITY suppliers ACHIEVEMENT haveTARGET a specific renewable energy BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB measured and reported their target, and 13% are committed GHG emissions to RE1001

*Data sourced from CDP. ** 45 2018 | SUSTAINABILITY HIGHLIGHTS CDP average of 67% 46 1RE100 is an initiative where organizations commit to sourcing 100% of their electricity from renewable power EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE COMMITMENT OVERVIEW | U.N. SUSTAINABLE GOALS | GOVERNANCE | GENERATION | PERFORMANCE | SUPPLIERS

Natural Gas Supply Collaborative producers. Operating at the intersection of Collectively, NGSC participants purchase The indicators cover: methane and air Analysis of carbon and water in our supply chain the natural gas supply chain and end-use gas equivalent to more than 13% of U.S. emissions; water; chemical use; and revealed that most of our impacts occur in a customers, NGSC participants are increasingly marketed natural gas, and, as part of a community impacts and workforce safety. concentrated area of our supply chain: natural being asked to address questions concerning portfolio of resources, generate enough This type of voluntary reporting goes beyond 001 004 005 008 009 002 003 natural gas production. 006 007 electricity from natural gas to power almost demonstrating compliance010 with regulations011 CUSTOMER Take an extended gas. That enables us to craftCALENDAR strategies that PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE lookKNOWLEDGE at our work with ONLINE 17 million households. and helps a company communicate directly address our most significant areas of impact NGSC membership grew to 12 of the largest the NGSC. with its stakeholders. and the vendors that comprise the largest natural gas purchasers in North America in NGSC members encourage natural gas % portion of our supply chain footprint. 2018; participants are Austin Energy, Calpine producers to build on recent progress and 13 In 2018, we continued our work within the Corporation, Consolidated Edison Company of continue to improve transparency and Natural Gas Supply Collaborative (NGSC), New York, CPS Energy, Énergir, National Grid, voluntarily report on the collaborative’s Collectively, NGSC participants purchase 012 013 New 016York Power Authority, NRG,017 NW Natural, previously published 14 social and 020 021 a voluntary014 collaborative of natural015 gas 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE gas equivalent to FLEIBILITY ARROWS SUSTAINABLE Pacific Gas and Electric Company, Vermont POLICY REGULATIONenvironmentalSUSTAINABLE performance indicators. SUSTAINABLE PLANT ADVANCES purchasers promoting increasedINVESTING transparency ENERGY CREDITS COMMITMENTS SUPPLY CHAIN more than 13% of U.S. through voluntary reporting by natural gas Gas, and Xcel Energy. marketed natural gas.

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB

Conflict minerals conflict minerals. Conflict minerals are tin, that they will inform all of their own suppliers In addition, in May 2016, NRG adopted In September 2014, NRG acquired Goal Zero, tantalum, tungsten, and gold, and are referred of this policy and ensure that it is complied manufacturing standards with which all a provider of portable solar power and battery to as 3TGs. with throughout the supply chain. Goal Zero Goal Zero suppliers are required to comply. reserves the right, in its contracts, to audit (For more information, see ‘Manufacturing pack products and accessories. In our first Goal Zero’s supply contracts require suppliers its suppliers’ compliance at any time and to Standards’ section). The standards also conflict minerals filing in 2016, Goal Zero to represent and ensure that they supply Goal terminate supply agreements if there is a set requirements based on industry best analyzed the materials used in the production Zero with only 3TGs that are “conflict-free” material breach of the agreement. practices and international conventions, of its products and determined that unless otherwise agreed to by Goal Zero. Goal including those related to 3TGs. substantially all of its products may contain Zero also requires that its suppliers agree

49 2018 | SUSTAINABILITY HIGHLIGHTS 50 EXECUTIVE SUMMARY SUSTAINABILITY CONTEXT FUTURE COMMITMENT FUTURE SOLUTIONS FUTURE VALUES APPENDIX

CEO Letter CSO Letter NRG at a Glance Sustainability Context

Solutions for a Sustainable 4 Energy Future

51 2018 | SUSTAINABILITY HIGHLIGHTS 52 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE SOLUTIONS OVERVIEW | BUSINESS SOLUTIONS | RESIDENTIAL SOLUTIONS

Overview technology and knowledge in a customized services is important when choosing a provider. customers. These new tools support bigger, approach, we can bring multiple benefits and Satisfaction with the availability of sustainability more integrated energy systems with natural In this section, we dive into the more impactful energy options to enterprise products in our portfolio remained high, and gas back-up generators, alternative energy sustainable solutions we bring to customers. This includes developing rose slightly from 2017. In addition, customers sources, and battery storage systems, customers through our residential and comprehensive digital tools that better track indicated interest in sustainability-oriented known as asset-backed demand response. business teams. These include ongoing and report on power and giving customers products and services such as energy These solutions can all be housed on-site initiatives and plans, as well as specific access to our team of energy experts. Our efficiency and off-site renewable energy, as and coordinated by intelligent management projects and goals we achieved in 2018. experts help them plan for shifts in the market well as sustainable energy advising. Research systems. So if the grid becomes less stable and provide education on emerging energy in progress will shed light on how customers or grid prices go up, these resources can be Business Solutions technologies. prioritize action on reliability and resiliency, instantly activated. This provides enhanced as well as how NRG products and services resiliency, greater reliability, and added control For commercial and industrial clients, our In 2018, we sought feedback from our Business can support our customers to advance their over outside costs. Business Solutions team delivers energy Solutions customers about the value of energy goals. Ultimately, these solutions are solutions that meet renewable energy goals NRG sustainability leadership in our sector. A Our Network Operations Center, also known as designed to drive impact in an increasingly — while also expanding the definition of customer survey indicated that while economic the NOC, located in Buffalo, New York, serves environmentally aware market. sustainability to include resiliency, reliability, value is paramount, 70% of customers said as the home base for our demand response control, and cost savings. By integrating having a choice of sustainable products and Our digital evolution business. We constantly monitor energy conditions as they are evolving so customers We see our customers searching for more can respond in real time to curtail power use decarbonized, customizable, and digitally based and stabilize the grid. This real time curtailment programs, and our Business Solutions team prevents higher-cost plants from being brought has created tools and solutions to meet their online and even allows us to use existing needs. Our demand response programs start generation rather than building new plants to with a simple premise: use less energy at times meet energy needs. But our digital options of peak grid usage and get paid for doing so. also extend beyond demand response. For Now, digitization is making it even better by example, when we enacted the Online Account bringing a highly advanced metering platform Management platform, its initial function was to every demand response solution we develop. to provide current customers access to billing Our real-time energy monitoring, available information. However, it quickly became an through NRG’s Active Management Platform opportunity for customers to view market (AMP), brings a deeper knowledge of how and trends and energy use to assess their spend when energy is used. From here, it becomes and make smarter energy choices. Both these possible to reduce demand from more carbon- See how the NOC digital tools offer a broader view of energy and intensive resources. When the time comes to helps us manage empower customers to view their own data in a demand response. curtail, reduction measures take place with little way that makes sense to them. or no impact on daily operations.

In 2018, we began implementing even more advanced digital tools for demand response

53 2018 | SUSTAINABILITY HIGHLIGHTS 54 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE SOLUTIONS OVERVIEW | BUSINESS SOLUTIONS | RESIDENTIAL SOLUTIONS

Team of energy experts energy supply assessments, energy resilience negotiations and no on-site infrastructure. For a a decarbonized energy future, this power Our team of experts helps find tangible master planning, and demand-side energy company without an energy procurement team, program drives momentum for additional efficiency solutions, focused on a customer’s solutions, we help our customers thrive in or any organization with a business to run, our renewable energy in the marketplace. unique energy usage and profile. In fact, energy complex energy markets. team of market experts provides a real-world solution that grants 100% renewable energy Renewable Select for Sysco efficiency is the first fuel of a sustainable We can also help prepare customers to keep without the pain of a complex financial product The value of our Renewable Select plan energy system. It can mitigate risks from the lights on during an outage, match them with or the hassle of traditional renewable energy became clear with the first customer to sign 37K climate change, improve energy security, and tailored clean energy opportunities, and help in procurement. Renewable Select makes the up — global food service distribution company grow economies while delivering environmental sourcing for their energy procurement needs. tons of CO2 emissions procurement process: Sysco. The company had set ambitious reduced annually and societal benefits — but customers often Our market expertise drives our ability to deliver sustainability goals for itself and was looking for Sysco through don’t have the insight to know what would make on nuanced customer sustainability goals, • Simple: A standard electricity confirmation Renewable Select for the means to get there. Our solution was their operations more efficient1. Our energy backed by the latest regulatory and reporting replaces a complex, lengthy power purchase agreement (PPA). a natural fit. efficiency engagements vary from preliminary trends — and it keeps us looking ahead to usage assessments and on-site energy tomorrow’s solutions. • Easy: An on-site investment is replaced In one concise contract, we put them halfway audits to a fully installed solution that includes with a flexible contract, no installation, and toward their stated goal of powering their renewable energy in the exact amount measurement, verification, and service. Cost-efficient, simplified facilities with 20% renewable energy. This renewables desired. We’ve taken what we’ve learned as a straight-forward solution allows them to We heard from businesses that the traditional • Fast: A typical renewable contract can sustainability trailblazer and turned it into a embrace renewables without taking their eye path to buying renewable energy was too long take 18 months to negotiate. This solution sustainable energy advisory service to guide off their core mission of food distribution. The and arduous. The Renewable Select plan is our takes as little as 60 days to complete. businesses, institutions, and municipalities to plan provides 25 MW of clean energy, spread solution. Launched in 2018, it delivers renewable achieve sustainability and energy objectives With Renewable Select, there are larger across three Texas solar sites, and reduces energy through a simple contract with no lengthy more quickly and cost-effectively. Through benefits at play than the contract form. As approximately 37,000 tons of CO2 emissions, more businesses are looking to be part of equivalent to taking 7,000 cars off the road2.

Discover more about Renewable Select.

2Estimated based on applicable C02 emission rate from the EPA and eGRID. 1U.S. Energy Information Administration (EIA) Estimates include emissions avoided due to electricity not used. Estimates do not 55 2018 | SUSTAINABILITY HIGHLIGHTS include manufacturing, shipping, or end-of-life impacts of wind energy assets. 56 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE SOLUTIONS OVERVIEW | BUSINESS SOLUTIONS | RESIDENTIAL SOLUTIONS

Sustainable solutions for Houston In working with the City of Houston, we created the City’s electricity demands and remain a 20-year PPA, and renewable energy credits Sustainability takes many forms, as evidenced a solution that incorporates a large-scale stable — from both a financial and reliability (RECs). And we finished all projects on time and by the comprehensive solution we created for emergency backup network with a 20-year standpoint. within budget: large-scale emergency backup service agreement. The resiliency of this generation; three-electricity plan enabling the City of Houston. We also facilitated the decarbonization of system was tested in 2017 with Hurricane the expansion of REC purchases from 37% to the City’s electricity use while securing its Resilience in extreme weather Harvey — the power stayed on and the water 50%; and the establishment of a public-private leadership position as the nation’s largest system remained operational throughout the partnership that resulted in the city’s first public For the City of Houston, 2008’s Hurricane Ike municipal purchaser of renewable power storm, a monumental feat considering the electric vehicle infrastructure. Across the highlighted the importance of energy resilience, with 85% renewable annual power for City impact of previous storms. Through our work board, our customized solutions have turned when power to the entire water supply was cut operations. Our solutions for Houston included together, Houston was fully prepared to meet energy goals into realities, helping the City off for several days. solar power allocated across multiple locations, secure a #1 EPA clean energy ranking.

57 2018 | SUSTAINABILITY HIGHLIGHTS 58 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE SOLUTIONS OVERVIEW | BUSINESS SOLUTIONS | RESIDENTIAL SOLUTIONS

Residential Solutions As demonstrated by our Sustainable Business Eco products Eco-focused rebates and incentives and Sustainable Customers pillars, we actively Our residential and small business brands — Where applicable, our renewable solutions Our residential solutions often include either take opportunities to incorporate a more NRG, Reliant, and Green Mountain Energy — extend to tangible products that customers rebates available for customers to become eco-conscious perspective into our product provide electricity packaged in ways that meet can install in their homes or use in their travels. more sustainable energy users or incentives offerings and brand operations for both 2018 the needs and lifestyles of our customers. With portable solar-powered products from for those who are already environmentally and beyond. Increasingly, these solutions are becoming Goal Zero, we have accounted for roughly conscious. GME has thousands of customers sustainable solutions. Renewable energy plans 66,000 solar panels sold to customers. Both on solar products nationwide. This includes Renewable energy are the most direct example, but we are also during and after Hurricane Harvey, Reliant saw solar REC-based products, buy back products, % We continued to bring renewable energy thinking more critically about more in-depth firsthand the need to keep our customers and rooftop installations. GME also helps Texas 41 to customers in 2018 — through an ever- sustainability opportunities. powered during extreme weather events. customers to have solar panels installed on Reliant increased e-bill increasing range of energy plans, designed to Following the storm, we partnered with Goal their roof by offering them a solar buyback customers from 29.8% We’ve seen that better understanding of energy optimize sustainability even for customers who Zero to bring solar-charged, battery-powered plan that provides a bill credit for 100% of their to 41% in 2018 usage, combined with the tools to adjust and might not be environmentally focused. Green products to customers most impacted by solar outflow to the electric grid. Additionally, save power, provides a clear path to sustainable Mountain Energy (GME) expands on its 20-year the storms. In the year following, we continued the GME Texas driver program allows energy consumption. Taking this a step further, mission of 100% renewable energy plans with those efforts by offering Reliant customers customers to neutralize the carbon footprint we have incorporated energy preparedness into options like Go Local Solar, which taps into solar 15% off any Goal Zero purchase, including related to their driving through the purchase our power programs. In an era of more frequent fields across Texas and accounts for 15 MW products like the Home Integration Kit, of a corresponding level of carbon offsets. extreme weather events, it takes sustainability of power2. GME’s commitment to renewable which allows customers to use their Yeti Additionally, NRG connects qualified customers to a higher level for customers living in both hot energy accounts for 9.9 billion pounds of CO2 Portable Power Station to keep essential with solar installers and grants $300 cash back and cold weather climates. emissions avoided in 2018, which is equivalent home circuits running. when installation is completed; this program to taking 1 million cars off the road for a year. Waste reduction and operational efficiency has created 200 leads in 2018. The drive to offer more renewable plans means also improved through measures in e-billing offerings like our Reliant 100% solar plan, which and enrollments, e-disclosures, and providing includes fixed-price solar for 12 months, no residential sales representatives with tablets panels needed. Additionally, Reliant offers a to make sales outreach more efficient. Our power plan that discounts energy charges at Goal Zero brand, which provides customers night, when EV vehicles are typically recharging, with portable, solar-powered products, is making it ideal for EV users. On the east coast, even utilizing sustainable packaging with low NRG, which supports customers in the region, environmental impact. In addition, carbon offers electric and natural gas plan options with offsets are received for every product imported renewable energy components, namely wind via a selected freight-forwarding supplier. and carbon offsets, to help customers make a And looking beyond our business offerings, greener choice. community outreach is also an important and impactful aspect of our residential brands1.

1This is shared between GME and Reliant. 59 2018 | SUSTAINABILITY HIGHLIGHTS 2Specifics on how this commitment was implemented in 2018 can be found in the Community section of this report. 60 001 004 005 008 009 002 003 006 007 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE KNOWLEDGE ONLINE

EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX 012 013 001 016 001 017 004 005 004 020 005 021 008 009 008 009 014 015 002 003 002 018 003 019 006 007 006 022 007 010 011 010 011 CARBON REDUCTION TECHNOLOGY CUSTOMER RENEWABLE CUSTOMERSUSTAINABLE CALENDAR PARTNERSHIP CALENDARRENEWABLE GROWTH PARTNERSHIPSUSTAINABILITY BADGECOMPUTER ONLINE CARBON REDUCTION TECH COMPUTER ONLINE CARBON REDUCTION TECH SUSTAINABLE SOLUTIONS FLEIBILITY ARROWS SUSTAINABLE MARKET EYE WITH GEAR POLICYMARKET REGULATION EYE WITHSUSTAINABLE GEAR CONSULTING COMPUTERPHONE CONSULTINGSUSTAINABLE PLANT COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK FREEDOMCUSTOMIZATION AROUND THE CLOCK ADVANCES SERVICE OVERVIEW | BUSINESSENERGY CREDITS SOLUTIONS | SERVICERESIDENTIALCOMMITMENTS SOLUTIONS INVESTING KNOWLEDGE KNOWLEDGE SUPPLY CHAIN ONLINE ONLINE

Sustainable retail partnerships Digitization and technology

024 025 012 013 We work with012 small028 businesses and013 organizations029 016 to provide sustainable017 energy solutions at 016 032 As previously017 033 mentioned020 in the Sustainability021 Context section, digitization020 is one of the 021 023 026 027 014 015 014 030 015 031 018 019 018 019 022 022 WIND TURBINES SOLAR PANEL CARBON REDUCTION TECHNOLOGY CARBON REDUCTIONFUTURE TECHNOLOGYOUTLET BATTERY RENEWABLE SUSTAINABLE RENEWABLERESIDENTIAL SUSTAINABLETOOLSSERVICERENEWABLE GROWTH SUSTAINABILITY BADGE RENEWABLE GROWTH SUSTAINABILITY BADGE SUSTAINABLE ENVIRONMENT COSTMONEY FLEIBILITY ARROWS SUSTAINABLE FLEIBILITYGRID ARROWS POWER LINES SUSTAINABLEFACILITY POLICY REGULATION SUSTAINABLE POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT SUSTAINABLE PLANT WIND FARM ADVANCES scale. BelowWORKFORCE are some ofINVESTING our notableADVANCESPOWER commitmentsENERGY CREDITS and partnershipsCOMMITMENTS fromINVESTING 2018. ENERGY CREDITSHOUSE SUPPLYthree CHAINCOMMITMENTS megatrends we see revolutionizing the powerSUPPLY CHAINsector. In 2018, we launched an exclusive partnership with best-in-class leading tech companies to bring innovative energy management solutions to customers. Our goal is to provide them with the latest smart home devices and make it easy for them to understand their energy usage, manage their accounts, and become a more sustainable group of energy consumers.

036 037 024 025 024 040 025 041 028 029 028 029 032 033 032 033 034 035 023 038 023 039 026 027 026 042 027 030 031 030 031 SAFETY UALITY ACHIEVEMENT TARGETWIND TURBINES RenewablesSOLAR PANEL for Small WIND TURBINESAMLIBUSINESS Residential SOLARMARKET PANEL STOCKS FUTUREDiscovery GreenOUTLET BATTERY ThisFUTURE includes smart devicesOUTLET like BATTERY the Nest RESIDENTIALthermostat and GoogleTOOLSSERVICE Home Hub that empower RESIDENTIAL TOOLSSERVICE POWER LOW RISK SUSTAINABLE GOALS TROPHY SUSTAINABLEACHIEVEMENT PEAK ENVIRONMENT COSTMONEY ENVIRONMENTBALANCED RISK COSTMONEY GRID POWER LINES FACILITY GRID POWER LINES FACILITY HARD HAT WIND FARM WIND FARM BUILDING WORKFORCE POWER WORKFORCE POWER HOUSE HOUSE LIGHT BULB Businesses users to monitor their energy use and to even scale back when they are not at home. We also Residential community developer 12-acre downtown developed the Reliant app to showcase customer energy spend and help customers view GME now offers only Houston park 330 kW solar panel installations their billing data. 100% renewable plans for at four Dallas locations Powered by 100% commercial customers Looking forward, we hope to gain additional data about how smart technology integration renewable energy from 100% renewable energy powers 036 037 036 037 040 041contributes to customers’ adjusting040 or modifying their041 energy spend, and begin reporting 034 035 034 035 038 039 038 039 042 042 SAFETY UALITY ACHIEVEMENT TARGET SAFETY UALITY ACHIEVEMENTGME for TARGET 10 years BUSINESS MARKET STOCKS BUSINESS MARKET STOCKS POWER LOW RISK POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK BALANCED RISK HARD HAT common areas at apartmentsHARD HAT in BUILDING BUILDING LIGHT BULB LIGHT BULB on overall energy saved as a result. Dallas and Houston

Renewable energy at Houston’s Discovery Green park

61 2018 | SUSTAINABILITY HIGHLIGHTS 62 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE SOLUTIONS OVERVIEW | BUSINESS SOLUTIONS | RESIDENTIAL SOLUTIONS

Smarter homes with robust data Energy apps uses up to 80% less energy than traditional • As record-breaking temperatures hit, conservation requests were sent via account In our partnerships with both Google and Our apps, offered to both Reliant and NRG incandescent lightbulbs. The LEDs in smart alerts, texts, call center messaging, emails, Nest, customers are able to see their energy customers, allow for easy and remote access to lights can last up to 15 years. and app push notifications. use in near-real-time through voice-activated energy data and customer account information. 001 004 005 008 009 Want002 to learn more 003 006 007 Energy preparedness 010 011 CUSTOMER CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECHEnergy usage in the face of extreme weather MARKET technologyEYE WITH GEAR and intelligent connectivity. In 2018, In 2018, specific voice-activatedCONSULTING commands COMPUTERPHONE FREEDOMCUSTOMIZATION AROUND THE CLOCK SERVICE about smart home KNOWLEDGE ONLINE The Texas summer energy market forecast presents an opportunity to elevate our value integrations? several electricity plans were launched with a were developed for both Google Home and See plan options here. Google Home device and/or Nest thermostat Amazon Alexa devices to help customers for 2018 was a daunting one for customers. as an electricity provider by helping customers included at no additional cost, to incentivize quickly understand and monitor their energy High temperatures coupled with low supply and communities become more resilient customers to take control of their energy use. spend, allowing customers to adjust their HVAC set the stage for challenging outcomes — and more sustainable when it matters most. units directly from the Reliant app. GME is including high prices and the threat of rolling Our 2018 summer campaign, along with a As customers learn more about usage both positioned to launch their own app in 2019. This outages. In response, all of our Texas retail similar one in place for an extreme cold 012 013 016 017 020 021 through014 their smart devices and015 in marketing 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE brands implemented a multi-facetedRENEWABLE GROWTH scenario SUSTAINABILITYin the northeast, BADGE puts us and our FLEIBILITY ARROWS SUSTAINABLE smart device integration is an ongoing initiative POLICY REGULATION SUSTAINABLE SUSTAINABLE PLANT ADVANCES initiatives like opt-in communicationsINVESTING and ENERGY CREDITS COMMITMENTS SUPPLY CHAIN that we will expand upon in the coming years as campaign, designed to prepare them with customers in a better position to face the SMS alerts, they can make more informed we continue to promote consumer education advance knowledge and action steps to worst of nature’s storms — and educates choices about their usage. For example, and access to energy data. guide them through a stressful energy them as to what steps can be taken in future time-of-use plans from Reliant and NRG season. This summer conservation extreme weather situations. provide lower rates during off-peak periods, Phillips Hue messaging campaign included: like nights and weekends. When coupled This partnership enabled GME customers to 024 028 • Proactive communications with summer 032 023 with remote025 tools and access, customers026 027 029 030 031 033 WIND TURBINES FUTURE RESIDENTIAL SUSTAINABLE SOLAR PANEL ENVIRONMENT embraceCOSTMONEY smarter LED lighting through Phillips OUTLET BATTERY energy savingsGRID POWER tips LINES delivered via bill FACILITY TOOLSSERVICE WIND FARM are empowered to easily switch usage to WORKFORCE POWER HOUSE Hue. As a central offering in the Pollution Free™ messages, account alerts, social posts, more economical periods. with Smart Lighting Kit plan, GME customers and website content. receive a smart lighting kit at no charge that

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING 64 LIGHT BULB 63 2018 | SUSTAINABILITY HIGHLIGHTS EXECUTIVE SUMMARY SUSTAINABILITY CONTEXT FUTURE COMMITMENT FUTURE SOLUTIONS FUTURE VALUES APPENDIX

CEO Letter CSO Letter NRG at a Glance Sustainability Context

Values for a Sustainable 5 Energy Future

Overview Safety NRG fleet facilities with OSHA Voluntary Protection Program (VPP) Star status1 We have evolved our purpose and A key metric of our workplace is safety. • Cedar Bayou • San Jacinto • TH Wharton modernized our values to better 2018 encouraged our business to rededicate • Central Repair Shop • Seward • WA Parish 0.51 reflect who we are today and serve as itself to safety and embrace new opportunities to focus on safety. This year, we honored our • Limestone TCIR, our best ever. a guidepost for bringing the power of safety commitment to stay well below the energy to our customers. The values industry average Total Case Incident Rate that hold us together are building a (TCIR) by registering 0.51 TCIR, which is within better NRG. While our emphasis on the top decile. safety, equality, and community are still vital to our success as a company, Keeping contractors safe we brought on new initiatives, causes, Our comprehensive safety program includes and projects in 2018 that expand on everyone who works within an NRG facility: our promise of a sustainable workforce employees, contractors, vendors, and and workplace. visitors. We screen contractors and assign them on-site coordinators to monitor their safety performance. Additionally, we audit 7 NRG INDUSTR * Recordable incident rates our contractors to ensure they meet all Facilities with VPP NRG Industry Star Rating1 safety expectations.

2.5 2. Safety training numbers for 2018 2.2 2.1 2.0 2 We are committed to providing valuable resources and training to help our workforce

1.5 understand what it takes to stay safe. Over the course of the year, we had 48,733 total hours of Plants with zero recordables in 20181 1 safety training completed, with a total of 4,923 .76 .7 .7 .70 .60 .70 employees and 1,028 contractors completing .57 .57 .62 • Arthur Kill • Greens Bayou • Plum Point .51 0.5 safety courses in 2018. • Astoria • Gregory • San Jacinto

0 • Carlsbad Energy Center • Indian River • Seward 201 2015 2016 2017 2018 • Connecticut Jets • Joliet • Sunrise

BLS INDUSTR AERAGE NRG TARGET NRG ACTUAL • Cottonwood • Long Beach • Vienna

* NRG rates do not include NRG New Businesses sector • Devon • Middletown • Waukegan • Doga • Midway Sunset • Will County • Energy Srvcs. - Central Repair • Montville Shop

1 67 2018 | SUSTAINABILITY HIGHLIGHTS *NRG rates do not include non-plants and supporting entities. Owned or operated facilities as of December 31, 2018 68 EXECUTIVE SUMMARY CONTEXT COMMITMENT SOLUTIONS VALUES APPENDIX SUSTAINABLE VALUES OVERVIEW | SAFETY | DIVERSITY | COMMUNITY | WELLNESS | EMPLOYEE ENGAGEMENT

Diversity and Inclusion our Plant Operations. We also received distinct Diversity at NRG* recognition as the “Best of the Best” from Diversity in talent, gender, ethnicity, sexual ANYI both the Black Employment and Entrepreneur orientation, cultural perspectives, and 68% 12% 11% 8% Journal and Professional Woman’s Magazine, experiences is a cornerstone of a productive which will be awarded in spring 2019. We have AT workplace. We aspire to create a culture increased the NRG Board diversity, and use 53% 21% 15% 10% that fosters inclusion, inspires innovation, our membership in the Gartner Diversity & encourages respect, and promotes unlimited Inclusion Leadership Council to gain access to 70% 1% 6% success for everyone as we create a suitable research from Fortune 500 companies on best energy future. We also recognize that the 81% 10% 6% practices in diversity. power generation sector, including NRG, has TAIL SLUTINS room for improvement. Additionally, we continually foster our recruiting relationships with Recruit Military, IvyQ, NAACP, 6% 22% 21% 8% In 2018, Forbes recognized NRG as one ProWomen, American Association of Blacks of the Best Employers for Diversity. As a in Energy, Black Data Processing Associates, 73% 10% % 7% signatory to the U.N.’s Women Empowerment and Professional Diversity Network to ensure Principles, NRG has an active Women in Power 100% a diverse slate of qualified candidates for our program that focuses on mentorship and external hiring needs. GNATIN development of females in technical roles in 81% % 8%

0% 5%

3% 7%

WHITE ASIAN BLAC OR AFRICAN AMERICAN HISPANIC OR LATINO (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO)

NO ELECTION NATIE HAWAIIAN OR OTHER PACIFIC TWO OR MORE AMERICAN INDIAN OR ALASAN NATIE ISLANDER (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO) (NOT HISPANIC OR LATINO)

NRG gender breakdown*

M 73% F 27% M 56% F % M 5% F 55% M % F 6% M 65% F 35%

M 5% F 1% M 8% F 11% M 68% F 32% M 71% F 2% M 87% F 13%

Community March of Dimes by participating in a variety of activities, from 10% corporate. In addition to the 36 riders, bowling tournaments and food drives to raffles 28 volunteers supported the team along the The mission of our giving programs, including Since 2002, NRG has been supporting March and bake sales. journey into Austin. NRG Gives and Reliant Gives, is to support of Dimes, raising more than $2.4 million dollars causes that are important to our employees for their cause. In 2018, NRG employees in the MS 150 positiveNRG and communities. Through this crowd-sourced Houston, Princeton, and Philadelphia areas The MS 150 is a fundraising challenge and Our corporate philanthropy program, 001 004 raised005 nearly $125,000 dollars. An outstanding 008 009 002 charitable003 giving program, employees nominate 006 007 010 011 CUSTOMER Learn more about our CALENDAR PARTNERSHIP COMPUTER ONLINE CARBON REDUCTION TECH MARKET EYE WITH GEAR CONSULTING COMPUTERPHONE 150-mile cycling race from Houston to also knownFREEDOMCUSTOMIZATION as positiveNRG, enrichesAROUND the THE CLOCK SERVICE employee in Philadelphia raised over $2,000, corporateKNOWLEDGE giving here. nonprofits, narrow the list of potential recipients ONLINE Austin. Since 2005, the NRG cycling team has communities we serve by supporting initiatives down to three, and then the public at large ranking him in the March of Dimes Circle raised over $1 million for multiple sclerosis by that address education, human welfare, the votes for the organizations to receive up to a of Champions. NRG employees also serve participating in this event. For 2018, 40% of environment, and health and wellness. This $100,000 donation. Since the programs began on the Philadelphia Market March of Dimes cycling team members came from outside includes our corporate giving efforts and in 2016, the NRG Retail Charitable Foundation Board. In Houston, over 100 employees, family of Texas, with participants representing eight special projects, like our wetland restoration donated $1,230,000 to 38 charities in the members, and friends participated in the different states across the NRG footprint, in Galveston Bay and nonprofit partnerships 012 013 March016 for Babies. Employees rally017 around the 020 021 communities014 that Reliant and NRG015 serve. 018 019 022 CARBON REDUCTION TECHNOLOGY RENEWABLE SUSTAINABLE RENEWABLE GROWTH SUSTAINABILITY BADGE FLEIBILITY ARROWS SUSTAINABLE POLICY REGULATIONas well as a representativeSUSTAINABLE mix of core job through GME’s Sun Club. SUSTAINABLE PLANT ADVANCES INVESTING ENERGYcompany CREDITS to raise funds forCOMMITMENTS March of Dimes SUPPLY CHAIN functions — 57% retail, 33% generation, and

036 037 040 041 034 035 038 039 042 SAFETY UALITY ACHIEVEMENT TARGET BUSINESS MARKET STOCKS POWER LOW RISK GOALS TROPHY ACHIEVEMENT PEAK BALANCED RISK HARD HAT BUILDING LIGHT BULB

PositiveNRG Week ecoNRG® • Climate change: seven projects including several aimed at reducing the consumption PositiveNRG Week is our annual week-long philanthropic initiative where companywide volunteer ecoNRG promotes ecological stewardship of natural resources by installing LED lighting opportunities are available for employees. For the 11th year, NRG employees dedicated a week among our plant employees with initiatives and high-efficiency system upgrades as well to making a positive impact in their communities. During positiveNRG Week, 952 NRG employees aimed at improving environmental awareness as increasing planted areas. in 16 states volunteered at more than 70 nonprofit organizations and donated $36,500 to and education. In 2018, NRG plant employees • Community: 26 projects including charitable causes. participated in 61 voluntary ecoNRG projects educational outreach to local schools, and NRG facilities donated more than $25,000 beach cleanups, and public space invasive 2018 positiveNRG impact to benefit the environment and provided species removal. $24,000 in scholarships to students expressing • Resource reduction, reuse, and recycling: interest in environmental studies. 17 projects including chemical use reduction • Biodiversity: nine projects including invasive initiatives, energy savings projects, and 157,113 species removal, stocking native fish in local paper cup elimination. 16,046 42 STATES 1,238 rivers, building osprey nesting platforms, VOLUNTEER HOURS THAT RECEIVED A DONATION* EMPLOYEES PARTICIPATED DONATED TO SUPPORT • Water conservation: two projects including 2018 DISASTER RELIEF EFFORTS supporting butterfly survey activities, bee xeriscaping (landscaping in a way that rescue, and tree planting. requires little or no irrigation) and a water savings garden for the Boys and Girls Club.

3.1 M 229,500 324 AWARD IN TOTAL DONATIONS GIVEN TO SCHOLARSHIPS NONPROFITS SERVED BIG BROTHERS BIG SISTERS BY NRG VOLUNTEERS CORPORATE PARTNER

Wellness Up My Life are offered free membership in We also brought the company’s sustainability At NRG, supporting a more sustainable three different weight management programs: story on the road, visiting four company future goes beyond our own emission The sustainable energy future we envision Omada, Naturally Slim, and Weight Watchers. locations and hosting a webinar for plant reduction goals. There are many ways the requires involvement from all of our employees. Power Up My Life continues to be one of our employees, with additional engagement concept is taking hold at our company and in Providing a productive work environment helps strongest employee initiatives with increased planned for 2019. The Sustainability team the communities we serve — one example is us to align our actions with our core values, engagement year after year. provided detailed insight into our company’s through our Community Supported Agriculture vision, and mission. sustainability strategy and answered questions (CSA) program. To keep our employees healthy, happy, and from across the business. This also marked Employee Engagement For the second year in a row, employees operating at their best, NRG provides several the relaunch of NRG’s Green Ambassadors Holistic sustainability at NRG means equipping who take part in the CSA program agree to wellness benefits. We offer full- and part-time program, where employees are equipped to our most valuable asset — our people — with purchase a “share” of locally grown produce. In employees scheduled to work 20 or more spearhead location-specific sustainability the resources to bring sustainability to life return, we provide each of them with an annual hours per week benefits that include: health, initiatives in their office and communities. at work, at home, and in their communities. reimbursement for a portion of their costs. dental, and vision insurance; mental health In 2018, we launched the NRG Sustainability Our web-based and mobile platform, Through the CSA program, our employees assistance; a non-tobacco user discount; Academy to bring employees a self-paced InspireMeNRG, continues to be a tool for connect with those growing their food and adoption assistance; parental leave; and tuition online certificate course designed in NRG employees to take actions that reflect handling crop management and production, reimbursement. Additionally in 2018, we partnership with Arizona State University’s sustainable choices at work and at home. which also represents a healthier choice for sponsored more than a dozen runs, walks, and School of Sustainability. This course is available In 2018, the platform received a makeover. them and their families. bike rides to promote healthy behavior, and to all employees and contractors. More than In partnership with positiveNRG, employees hosted more than a dozen employee health 150 employees have completed the course and can access both NRG’s giving and sustainability fairs. Since the introduction of the Power Up earned their sustainability certificate. programs in one location. nutrition platform, members enrolled in Power

Power Up My Life NRG employees enrolled

100

80 7% 6% 60 51%

0 2016 2017 2018

75 2018 | SUSTAINABILITY HIGHLIGHTS 76 EXECUTIVE SUMMARY SUSTAINABILITY CONTEXT FUTURE COMMITMENT FUTURE SOLUTIONS FUTURE VALUES APPENDIX

Appendix 6

Feedback Safe Harbor words such as “will,” “expect,” “estimate,” on Form 10-K, quarterly and other periodic “anticipate,” “forecast,” “plan,” “believe” and reports, current reports and other filings with If you have any comments or questions about Forward-looking statements similar terms. Although NRG believes that its the Securities and Exchange Commission at this report, or would like more information on The 2018 Sustainability Report contains expectations are reasonable, it can give no www.sec.gov. NRG undertakes no obligation our sustainability efforts, please visit nrg.com forward-looking statements that may state assurance that these expectations will prove to update or revise any forward-looking or email [email protected]. NRG’s or its management’s intentions, beliefs, to have been correct, and actual results may statements, whether as a result of new expectations or predictions for the future. Such vary materially. Factors that could cause actual information, future events or otherwise, forward-looking statements are subject to results to differ from those implied by the except as required by law. certain risks, uncertainties and assumptions, forward-looking statements are set forth in and typically can be identified by the use of the Company’s most recent Annual Report

Our Approach to disclosure in financial filings to the Securities assessment provides a foundation of topics with some of these issues, can be found in Sustainability Reporting and Exchange Commission, they have not from which to prioritize our sustainability goals Part 1, Item 1A in our 2018 Form 10-K. yet been formally adopted for such use. The and initiatives, build our annual sustainability Additional financial statements or equivalent This sustainability report is based on NRG financial sector welcomes such disclosures, report, as well as provide insight into emerging documents can be found here. corporate performance for all operations and as such we have included a table as part issues that our stakeholders care about. in calendar year 2018 and, where stated, of our sustainability reporting. After reviewing Key issues assessment “NRG” refers to NRG Energy, Inc., as well as its For the purposes of sustainability reporting, the guidance at the beginning of each of Our key issues list identifies sustainability issues affiliates. This is our ninth annual sustainability NRG follows the GRI framework to report the standards and the indicators for each of that are relevant to NRG’s current business report and was developed with guidance from on issues of importance to the company and the sectors, we identified the Infrastructure and operating environment. In 2018, we the GRI Standards at the Core level, as well as its stakeholders. Key sustainability issues Sector — Electric Utilities & Power Generators comprehensively assessed key issues, pending the GRI Electric Utilities Sector Supplement. for NRG as delineated by the GRI Standards — as most applicable given the nature of our completion of the NRG Transformation In 2018, NRG was a member of the GRI GOLD for 2018 include: business. Click to access the 2018 SASB table. Plan elements and divestitures. To support Community, which supports our commitment In 2017, NRG became a founding member of • Compliance this project, NRG engaged with Datamaran, to embed sustainability into our strategic the SASB Alliance and provided feedback to • Economic performance a business intelligence tool using big data decision-making. The report includes topics codify the final standards. and artificial intelligence, to help us identify from the GRI framework for our sector that • Effluents and waste and prioritize key issues by scanning the are priority issues to the company. See the • Emissions competitive, regulatory, and media landscape. GRI Standards table for a full list. Key Material Issues Overview NRG strives to report decision-useful • Employment Additionally, a group of internal stakeholders The scope of this report is primarily contained information to our stakeholders in an efficient • Energy reviewed the universe of issues and shared their within the calendar year 2018, but some long- perspective on importance to NRG. and concise manner. We recognize that we • Occupational health and safety term projects and goals are discussed. The have many different stakeholder groups which For the purpose of the Sustainability Report, NRG website also provides visitors the latest • Procurement practices (supply chain) may require information presented in a variety these findings were also compared with news and events around the company’s social, • Supplier environmental performance of ways and on numerous topics. We work external best practice publications on metrics, economic, and environmental initiatives. diligently with our key stakeholders to seek • Water such as the EPRI, Metrics for the Electricity out the type of information they are looking NRG is committed to leading its sector in • Water and effluents Producers Industry, the Financial Stability sustainability transparency and disclosure. for and evaluate the processes to deliver Board’s (FSB), TCFD, and the SASB. These topics aim to cover all NRG brands and NRG’s sector is defined as electric utility or this data to them. However, given the rapidly businesses. We do recognize, however, that We use this independent analysis to better power producer. Achievement will be measured growing landscape of voluntary reporting some of these topics are more relevant to inform business decisions and shape our according to stakeholder feedback, including this past decade, we must also determine certain parts of the organization than others. voluntary reporting process. through investor relations and participation in what is the most relevant material to collect For example, most of the environmental engagement and disclosure organizations such on NRG operations while achieving greater disclosure is focused on our power-generating as GRI, Ceres, and SASB. transparency year over year. fleet since that is where we have the ability to Part of this process is conducting a key issues 2018 marked the third year NRG disclosed make the most impact, with respect to climate assessment periodically to ensure the topics sustainability data using the SASB standards, change, through carbon-emission reduction. we focus on help us identify potential strategic now final and no longer provisional. Although Relevant financial implications, as well as a and operational risks and opportunities. This these standards were originally designed for discussion of risk and opportunities associated

SASB code Accounting metric 2018

Air quality

SASB Standards Table Percentage from production facilities Air emissions source Air emissions (metric tons) The Sustainability Accounting Standards Board’s (SASB) mission is to develop sustainability metrics within urbanized areas for public corporations to disclose material, decision-useful information to investors. We support NOx 22,510 7%

work that contributes directly to generating comparable and consistent data. The nature of our SOx 61,430 35% business directs us to consult the Infrastructure Sector – Electric Utilities & Power Generators. ALLIANCE PM10* 2,300 67% Below is a table which contains those topics we have identified as key issues and against which we ORGANIZATIONAL IF0101-04 Pb** .24 22% MEMBER are able to report on as a publicly traded company. Activity metrics that may assist in the accurate Hg*** .14 8% evaluation and comparability of disclosure may be found in NRG’s 2018 Form 10-K and in NRG’s 2018 Sustainability Report. Quantitative data may be followed by narrative information that Discussion of accounting, estimations and uncertainty for air emissions: *The requirement to report PM10 emissions in annual emissions inventories or emissions statements varies between states. In addition, the contextualizes the data table and is also responsive to any qualitative metrics. For more details on earliest reporting deadline for a reporting year is April 1st of the following year. For sites in NRG’s fleet that have not yet or are not required to our report process please visit Our approach to sustainability reporting on page 81. report PM10 emissions at the time of submittal to SASB, NRG has used USEPA’s AP-42 emission factors to estimate emissions. ** In the case of lead emissions, volumes are estimated for some facilities due to incomplete data at time of publication. ***In the case of mercury emissions, volumes are estimated for some facilities due to incomplete data at time of publication.

Sustainability Disclosure Topics and Accounting Metrics Water management

(1) Total water withdrawn 4,575,000 SASB code Accounting metric 2018 (thousands of cubic meters) Greenhouse gas emissions and energy resource planning 2018 NRG water withdraw by source (1) Gross global scope 1 emissions 46,000,000* Water source Total (thousands of cubic meters) Percent (million metric tons) *Rounded to nearest million. Includes 37.5% ownership of 144MW capacity natural gas plant in Turkey and 80% of a 605MW capacity coal plant in Australia. Generation includes equity-owned Fresh water 2,434,000 53% plants as of Dec. 31, 2018. Non-fresh water 1,092,000 24% (2) Percentage covered under 8% emissions-limiting regulations, and Ocean 1,049,000 23%

(3) Percentage covered under 99.99% Total 4,575,000 100% emissions-reporting regulations (2) Total water consumed 185,000 Clarification of percentage covered under emissions-limiting and emissions-reporting regulations: (thousands of cubic meters) A significant majority (>99%) of NRG’s emission sources are subject to mandatory federal (USEPA) greenhouse gas reporting regulations. IF0101-01 Percentage of each in regions Baseline water stress Withdrawal from areas with Consumption from areas In addition, some of these emission sources (18% specified under IF0101-01(2) above) also report to regional and state CO2e reporting with high or extremely high high (40-80%) high or extremely high with high or extremely high programs that are disclosed annually as part of NRG’s financial reporting data (RGGI, AB32). baseline water stress extremely high (>80%) baseline water stress baseline water stress IF0101-05 Discussion of accounting, estimations and uncertainty for scope 1 emissions: Percent of total water 39% 45% Scope 1 includes only direct GHG emissions associated with fuel combustion in boilers, turbines and engines used for the production of wholesale electric power. The Scope 1 GHG emissions were determined by using methods specified within Title 40, Chapter I, Subchapter C, Percent that is non-fresh* 18% .04% Part 98, Subparts A, C and D of the Code of Federal Regulations. The determination of the equity share of GHG emissions is consistent with equity share methodologies for equity share accounting for greenhouse gas emissions as described in GHG Protocol: A Corporate Accounting *Non-fresh water has a total dissolved solids greater than 1000 mg/l and is not used for agriculture or and Reporting Standard, Revised Edition. municipal water supply. GHG emissions from combustion of fossil fuels used for other activities or equipment, such as auxiliary boilers, starter engines, mobile NRG uses the WRI Aqueduct and the WWF Water Risk Tool to model and help assess water basin risks in sources and offices is not included and was estimated to represent under 0.25% of the reported Scope 1 emissions. The Scope 1 emissions combination with regional internal expertise. do not include emissions from fugitive sources such as hydro fluorocarbon releases from use of refrigeration and/or air conditioning equipment, sulfur hexafluoride (SF6) from electrical equipment and methane releases from natural gas transport. Type of generating facility in baseline water stress area Number

Description of long-term and There are four levers within our control to reduce our GHG emissions and meet our science- Fossil fuel (natural gas, coal, oil) 13 short-term strategy or plan to based climate targets: 1) Retiring uneconomic units 2) Switching from coal to gas 3) Running Renewable (solar and wind) 0 manage scope 1 emissions, existing plants less often 4) Carbon capture and sequestration. NRG’s goal is to reduce its total emission-reduction targets, and U.S. Scope 1, 2 and 3 (business travel) CO2e emissions 50% by 2030, and 90% by 2050, using TA11-06-01 Nuclear 1 an analysis of performance v. 2014 as a baseline. From 2017 to 2018, NRG’s CO2e emissions decreased from 47 million those targets metric tons to approximately 46 million metric tons, representing a 2% reduction year over year Thermal (district heating and cooling) 0 and 73% of the way to our 2030 goal. This puts us on track to meet our science-based targets ahead of schedule. Total 14

SASB code Accounting metric 2018 SASB code Accounting metric 2018

Water management (continued) Workforce health and safety

Number of incidents of non- 9 (1) Total recordable injury rate 0.51 compliance with water-quality TA11-02-01 and/or quantity permits, standards (2) Fatality rate 0 and regulations (3) Near miss frequency rate 39.07 Discussion of water management risks: Process for classifying, recording and reporting: NRG’s definition of substantive risk from water is the possibility that an event will occur and significantly affect the achievement of NRG’s # of near misses reported / total hours worked X 1,000,000 = near miss frequency rate business goals. Risk identification and assessment process applies to both direct operations and supply chain. NRG uses the measures, The National Safety Agency defined near misses as “an unplanned event that did not result in injury, IF0101-12 metrics and indicators for water risk assessment leveraging the management and professional judgment from the following perspectives: illness, or damage, but had the potential to do so.” NRG utilizes an electronic Incident Management • Financial impact System to document, communicate, track, and trend specific factors about each event including o Corporate earnings causal factors and corrective actions; this system provides automated fleet-wide notifications. The o Capital expenditure on technologies to reduce water consumption and withdrawal number of near misses was derived from a report pulled from the incident management system. • Plant operation NRG’s OHS management system applies to 100% of U.S. operations. The system also includes o Operation disruption due to water shortage notifications to executive management when significant safety events occur that meet the defined o Increase in costs of water usage criteria for a Significant Event notification. The system also generates weekly reports to communicate o Supply chain risk previous weeks’ event to NRG personnel. • Environmental impact Nuclear safety and emergency management o Water availability IF0101-07 o Water quality of river basins Total number of nuclear power NRG South Texas LP is a 44% owner of a joint undivided interest in STP. o Regulations that impact supply and/or management of water units, broken down by nuclear regulatory commission action Reactor unit Action matrix column Current regulatory oversight Discussion of strategies and practices to mitigate risks: matrix column Water risk is monitored by the risk owners (individual plant operators) and reported to management upon material changes with a threshold South Texas 1 Licensee Response Baseline inspection of 20% in water consumption and withdrawal levels. If determined that a water supply risk exists that could impact projected generation levels at any plant within a two-year time frame, risk mitigation efforts are identified and economically evaluated for implementation. NRG Plant Ops reviews modelling scenarios generated. Plant water usage is reviewed annually. Analysis is reviewed by the senior leaders of NRG Operations, IF0101-15 Engineering and Commercial Operations. WRI Aqueduct tool is used annually to develop a high-level view of basin level risk that informs South Texas 2 Licensee Response Baseline inspection strategic decision-making and the setting of goals and targets. This tool was chosen because of its open source nature and ease of use. Each generating facility is unique. The water risk approach identifies and addresses risks for each covering: •Availability •Quality •Regulatory •Stakeholders •Supply chain impacts •Financial •Operational •Environmental. Risk response decisions are primarily made and executed by managing plant operations to maintain compliance with all regulations. NRG identifies, assesses, and responds to supply chain water risk through CDP Water. Table source: https://www.nrc.gov/reactors/operating/oversight/actionmatrix-summary.html#r_4 as of March 2019 Coal ash management Discussion of efforts to manage As a holder of an ownership interest in STP, NRG South Texas LP is an NRC licensee and is subject Amount of coal combustion 1,300,000 nuclear safety and emergency to NRC regulation. The NRC license gives NRG the right only to possess an interest in STP but not residuals generated (metric tons) preparedness to operate it. As a possession-only licensee, i.e., non-operating co-owner, the NRC’s regulation of IF0101-08 IF0101-16 NRG South Texas LP is primarily focused on NRG’s ability to meet its financial and decommissioning Percentage recycled (metric tons) 63% (875,000) funding assurance obligations. In connection with the NRC license, NRG and its subsidiaries have a support agreement to provide up to $120 million to support operations at STP. Total number of coal combustion 14 surface impoundments as defined by 40 CFR 257.2. residuals impoundments

Number by EPA hazard potential NRG impoundment structural integrity rating and hazard potential classification classification, broken down by EPA structural integrity assessment Less than Low Significant High Incised** low

Satisfactory 0 4 5 0 0

Fair 0 0 0 0 0 IF0101-09 Poor 0 0 0 0 0

Unsatisfactory 0 0 0 0 0

Not applicable 0 1 2 0 2

*The safety factor assessment was not performed for the Former Ash Pond at Powerton due to lack of necessary information because of the construction age of the impoundment. The inactive impoundment will be closed in accordance with 40 CFR 257.101 and 257.102. **To align with EPA reporting we have added a column for ‘Incised’ and a row ‘Not applicable’ to account for all impoundments as defined by the EPA.

85 2018 | SUSTAINABILITY HIGHLIGHTS 86