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2020 SUSTAINABILITY REPORT NYPA.GOV 03 08 PLANNING FOR A BETTER FUTURE BUILDING A BEST-IN-CLASS SUSTAINABILITY APPROACH 03 Leadership Statements 09 Strategic Alignment 05 Our 2020 ESG Impact “At a Glance” 13 Stakeholder Engagement 06 About Us 13 Materiality Assessment 07 About this Report 14 ESG Focus Areas 15 Sustainability Governance 17 40 63 76 ENVIRONMENTAL SOCIAL GOVERNANCE APPENDIX 18 Climate Change 41 Health & Safety 64 Enterprise Risk 77 Performance Data & GHG Emissions & Resilience 45 Employee 79 GRI Index 25 Renewable 67 Regulatory Development 89 SASB Index: Electric Energy & Management Energy Storage 47 Diversity, Equity & Compliance Utilities Standard & Inclusion 29 Energy 70 Cyber & Physical 94 Glossary Reliability 51 Community Security 97 Forward Looking Engagement 33 Energy 73 Supply Chain Statements Efficiency & 55 Access & & Procurement Electrification Affordability Practices 36 Environmental 60 Economic Stewardship Development SUSTAINABILITY REPORT 2020 NYPA.GOV | 2 A Note From Our Chairman in this time of unprecedented uncertainty and disruption, Environmental, Social and Governance (ESG) issues are central to JOHN R. KOELMEL EUGENE L. NICANDRI Chairman Vice Chairman financial recovery and growth. Individually and collectively, they have a profound impact on all aspects of a business, its people and its operating ecosystem—including the natural environment and the economic infrastructure. In this still new century, sustainability is more than a responsible practice, it is a competitive advantage. It says who we are and what we will achieve going forward. We, therefore, believe it is critically important for ESG to become even more central to NYPA’s strategy and mission, and, consequently, have made it a foundational pillar of VISION2030. Our ESG commitments and MICHAEL BALBONI TRACY B. MCKIBBEN ANTHONY J. PICENTE, JR. DENNIS TRAINOR Trustee Trustee Trustee Trustee investments will enhance engagement with our stakeholders and increase our business resilience. At the Board level, our ESG commitments include: NYPA is playing a key role in transforming how energy is generated > Leading and guiding the management of ESG strategy and goal setting and transmitted in New York State. Our efforts align with the Intergovern- > Supporting our governance of ESG-related issues, including managing mental Panel on Climate Change’s (IPCC) goal to achieve climate committees focused on risk and resilience to further embed ESG into stabilization at 1.5 °C. We are helping to implement the New York State our operations Climate Leadership and Community Protection Act (CLCPA) and facilitate a just transition to a carbon-free, economically vibrant New York State. > Ensuring the achievement of goals identified in the Sustainability Plan > Reinforcing corporate accountability around setting, monitoring, evaluating This Sustainability Report, and NYPA’s 2021-2025 Sustainability Plan, and achieving our sustainability goals are important next steps that demonstrate NYPA’s commitment to building a more sustainable business that will, in turn, support New York Climate change is one of the most important challenges of this era and a strong State’s ambitious climate agenda. ESG foundation will support our efforts to create a new energy future for the people, communities and businesses of New York State. An integral component of this effort is strong governance with well- established policies, practices and controls to guide our sustainability efforts. Our inclusive sustainability governance framework applies to every level of our organization and is designed to ensure accountability for our actions and performance. JOHN R. KOELMEL Chairman SUSTAINABILITY REPORT 2020 NYPA.GOV | 3 Planning for a Better Future new yorkers are tough, innovative and development of our organization. We are commit- ships to build a pipeline of energy workers in thoughtful. We look to the future, dream about ted to using the Global Reporting Initiative (GRI) environmental justice communities what could be and take the steps to make and the Sustainability Accounting Standards Board > Funding a $300 million Reimagine the Canals it happen. (SASB) reporting frameworks to strengthen disclo- initiative to revitalize the Erie Canal corridor as a sures and our accountability to stakeholders. prime tourism and recreation destination, while But don’t take my word for it. boosting economic development and environ- The following pages highlight our sustainability mental resilience A small sample of our state’s inspiring narrative of efforts in 2020 and into 2021, including: leadership over roughly the past 175 years reveals The next decade will be exciting and productive for a series of historical turning points: Elizabeth > Releasing NYPA and Canals’ Sustainability Plan, NYPA and Canals. We will use our innovative talent, Cady Stanton and Lucretia Mott championing the an implementation document complementing this visionary strategies, industry-leading ambition and women’s rights movement in Seneca Falls; Thomas report and providing deeper insight into the “New York Tough” mindset to pursue decarboniza- Edison and Nikola Tesla electrifying the world; actions we are taking to advance sustainability tion, foster economic growth and create an ESG the modernization of labor laws after the Triangle efforts through 2025 blueprint for others to follow. Shirtwaist Factory fire in Manhattan, and the > Announcing a 2035 target for eliminating emergence of the national environmental move- carbon emissions from our natural gas portfolio, Everything we do will be shaped by the sustainabil- ment in the Hudson Valley. a significant step toward meeting the state’s goal ity goals and organization-wide commitments of a carbon-free power system by 2040 detailed here. This will be a collaborative effort, NYPA’s focus on sustainability, or ESG, builds on and we will keep our communities and stakehold- this history of commitment and perseverance. It is a > Financing hundreds of millions of dollars of ers fully updated on our progress as we move foundational pillar of VISION2030, our recently customer energy efficiency and clean forward together toward a cleaner, brighter future. introduced 10-year strategic plan. energy projects > Supporting 400,000 jobs across New York State VISION2030 will enable us to help bring about a through economic development programs, thriving, resilient New York State powered by including a financial relief program introduced at clean energy. To achieve this vision, we are the start of the COVID-19 pandemic advancing the nation’s most ambitious climate targets and setting some of the boldest > Introducing our Ten-Point Diversity, Equity and ESG goals of any U.S. government-owned utility. Inclusion (DEI) Plan to support the development, retention, promotion and engagement of a This Sustainability Report outlines our approach to diverse workforce; empowerment of diverse GIL C. QUINONES ESG, which guides our long-term business invest- suppliers; and forging of science, technology, President and ments and plays a crucial role in the growth and engineering and mathematics (STEM) partner- Chief Executive Officer SUSTAINABILITY REPORT 2020 NYPA.GOV | 4 Our 2020 ESG Impact “At a Glance” ENVIRONMENTAL SOCIAL GOVERNANCE Announced a new $1.2 BILLION collaboration to issued in long-term establish a bonds—including 400,000+ first-of-its-kind nearly $800 million jobs created or retained in New York in Green Bonds— State through economic development programs CYBERSECURITY Advanced construc- for planned capital tion of of CENTER FOR projects 33 MW distributed solar, EXCELLENCE planned to become operational in 2021 Awarded the Forbes Best Mid-Size Deployed an Enter- Employer distinction prise Governance, in 2018, 2019 Risk and Compliance of the electricity NYPA and 2021 System, offering produces is clean 60% ongoing risk >80% renewable hydropower Helped customers monitoring save a total of capabilities Began construction 212,196 MWh Reduction in DART on a transmission in electricity through rate at NYPA energy efficiency sites between 2018 project Launched the $300 measures (2018-2020) and 2020 to supply million Reimagine the The majority of Established target to 900 MW Canals initiative our spend was to adaptively with New York achieve zero carbon of renewable Introduced our repurpose the State suppliers electricity generation energy TEN-POINT DIVERSITY, EQUITY AND by 2035, five years New York Canal ahead of the CLCPA INCLUSION PLAN System target SUSTAINABILITY REPORT 2020 NYPA.GOV | 5 FAST FACTS ABOUT US 2,400+ About the About the employees ➥ 1,973 New York New York State NYPA employees ➥ 463 Power Authority Canal Corporation Canals employees The New York Power Authority (NYPA) has its main administra- The New York State Canal Corporation (Canals) is a tive office in White Plains, New York and is America's largest subsidiary of NYPA.1 1,400+ state-owned electric utility. More than 80% of the electricity customers NYPA produces is clean renewable hydropower. The New York State Canal System includes four historic canals: Erie, Champlain, Oswego and Cayuga-Seneca. NYPA’s power customers include: Spanning 524 miles, the waterway links the Hudson River 16 with the Great Lakes, the Finger Lakes and Lake Champlain. generating facilities > Large and small businesses The canals form the backbone of the Erie Canalway National that produce up to Heritage Corridor and connect hundreds of unique and 25% of New York > Not-for-profit organizations historic communities. State’s power > Community-owned