Destination2050
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CORPORATE Destination RESPONSIBILITY Building the Future 2050 REPORT Forward-looking Statements Except for the historical statements contained in this report, the matters discussed herein are forward-looking statements that are subject to certain risks, uncertainties and assumptions. Such forward-looking statements, including the 2019 EPS guidance, long-term EPS and dividend growth rate, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “project,” “possible,” “potential,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed elsewhere in this Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2018 (including the items described under Factors Affecting Results of Operations; and the other risk factors listed from time to time by Xcel Energy Inc. in reports filed with the SEC, including “Risk Factors” in Item 1A of this Annual Report on Form 10-K hereto), could cause actual results to differ materially from management expectations as suggested by such forward-looking information: changes in environmental laws and regulations; climate change and other weather, natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; ability of subsidiaries to recover costs from customers; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Xcel Energy Inc. and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; our subsidiaries’ ability to make dividend payments; tax laws; operational safety, including our nuclear generation facilities; successful long-term operational planning; commodity risks associated with energy markets and production; rising energy prices; costs of potential regulatory penalties; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; fuel costs; and employee work force and third party contractor factors. Destination 2 Building the Future 2050 Table of Contents Who We Are ........................................................................................................................................................................ 4 Message from the CEO ..................................................................................................................................................... 6 Corporate Responsibility Governance .......................................................................................................................... 9 • Defining Corporate Responsibility ................................................................................................................................. 9 • Aligning with Corporate Strategic Priorities............................................................................................................... 10 • Corporate Responsibility Governance ......................................................................................................................... 11 • Stakeholder Engagement ............................................................................................................................................ 13 • Identifying Areas of Focus for Corporate Responsibility ............................................................................................ 15 About this Report ............................................................................................................................................................. 19 Customers and Communities ........................................................................................................................................21 • Earning Customer Satisfaction and Trust ...................................................................................................................22 • Raising Safety Awareness ..........................................................................................................................................27 • Partnering with Communities ...................................................................................................................................... 31 • Corporate Citizenship ..................................................................................................................................................36 • Energy Innovation ........................................................................................................................................................ 41 • Renewable Energy .......................................................................................................................................................46 • Encouraging Efficient Energy Use ...............................................................................................................................53 Company and Workplace ...............................................................................................................................................59 • Corporate Compliance and Business Conduct ............................................................................................................60 • Our People and Culture ................................................................................................................................................63 • Our Journey to Zero .....................................................................................................................................................69 • Total Rewards for Employees ......................................................................................................................................73 • Providing Reliable and Secure Energy .........................................................................................................................78 • Public Policy .................................................................................................................................................................85 • Supply Chain Management .........................................................................................................................................89 Environment ......................................................................................................................................................................93 • Environmental Management .......................................................................................................................................94 • A Carbon-free Future ...................................................................................................................................................99 • Reducing Air and Other Emissions ............................................................................................................................ 105 • Managing Water Use .................................................................................................................................................111 • Preventing and Managing Waste ...............................................................................................................................116 • Managing Wildlife and Habitat ................................................................................................................................. 122 Destination 3 Building the Future 2050 Who we are Every day we power millions of homes and businesses across eight Western and Midwestern states. Our customers can count on us to be there 24/7 with safe, reliable energy. But, what we provide goes much deeper than that. Based in Minneapolis, we are a recognized industry leader in delivering renewable energy and in reducing carbon and other emissions, efforts that have put us on a path to a more sustainable energy future. Through a growing range of innovative solutions, we continue to empower customers with energy options and alternatives to support their goals and objectives. Destination 2050 is all about delivering on our bold vision for a carbon-free future. We are the first major U.S. energy provider to announce an aspiration to serve customers with 100% carbon-free electricity by 2050. In a rapidly changing industry, we are taking a smart and thoughtful approach to how we produce and deliver energy, looking for better ways to serve our customers and anticipate their needs and expectations. Through our efforts, we are not just preparing for the future we are building it, today. Our Vision We will be the preferred and trusted provider of the energy our customers need. Our Mission We provide our customers the safe, clean, reliable energy services they want and value at a competitive price. Our Values Our values reflect our core beliefs — who we are, how we conduct our business and the importance of our customers. They guide us