Constellation Energy Corporation · NASDAQ:CEG
Constellation Energy — ESG Presentation (July 2023)
48 slides from Constellation Energy's sustainability presentation, July 2023
Slide 1: Constellation ESG Investor Presentation
Constellation ESG Investor Presentation July 2023
Slide 2: Cautionary Statements Regarding Forward-Looking Information
Cautionary Statements Regarding Forward-Looking Information This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks and uncertainties. Words such as “could,” “may,” “expects,” “anticipates,” “w
Slide 3: Constellation's ESG Principles
Constellation’s ESG Principles Our Value Proposition and ESG Principles Constellation’s Carbon-Free Policy Advocacy Constellation is positioned to deliver long-term value for our shareholders through our enduring businesses that are ready to ESG Principles meet the climate crisis. We are leading the
Slide 4: Constellation Generates Reliable, Resilient, Carbon-Free Electricity
Constellation Generates Reliable, Resilient, Carbon-Free Electricity Nations Largest Producer of Clean, Carbon-Free Generation Largest Fleet ~10% 178 TWhs 2,653 MWs of all carbon- Largest Fleet of competitive of clean, carbon-free of renewable free energy of merchant nuclear in U.S. energy produced
Slide 5: Nearly 90% of Constellation's Generation is Emission Free
Nearly 90% of Constellation’s Generation is Emission Free (1) Total Generation Output by Fuel Type (1) 87% 11% 2% Nuclear Natural Gas/Oil/Other Renewables & Storage Calvert Cliffs Clean Energy Center Note: Reflects Constellation’s ownership share of output as of December 31, 2022; may not sum due to
Slide 6: Constellation's Premier Nuclear Fleet is Fighting the Climate Crisis
Constellation’s Premier Nuclear Fleet is Fighting the Climate Crisis Nuclear Plays a Unique Role in the Fight Against the Constellation’s Nuclear Portfolio Climate Crisis Constellation’s nuclear fleet is the nation’s largest - owning and operating 21 reactors, with ownership Nuclear power provides f
Slide 7: Comprehensive Portfolio of Renewable Generation
Comprehensive Portfolio of Renewable Generation Wind 28 738 MWs wind projects of owned capacity operated Solar 5 268 MWs solar facilities of owned capacity operated Hydroelectric 2 1,642 MWs hydroelectric of owned capacity facilities operated Criterion Wind Project 7 Note: Sum of the renewables will
Slide 8: Constellation's Nuclear Plants are Clean Energy Centers
Constellation’s Nuclear Plants are Clean Energy Centers Hydrogen Data Center Direct Air Capture Flexible Grid Energy and Capacity (24/7) 8
Slide 9: Constellation is the Largest Producer of Carbon-Free Electricity in the United States
Constellation is the Largest Producer of Carbon-Free Electricity in the United States Largest Producers of Carbon-Free Lowest CO2 Emissions Among Major Lowest Carbon Intensity Among Generation (1,2) Investor-Owned Generators (2) Major Investor-Owned Generators (2) million MWh million short tonnes lb
Slide 10: Nuclear is One of the Cleanest and Safest Forms of Power Generation
Nuclear is One of the Cleanest and Safest Forms of Power Generation Nuclear has the Lowest GHG Lifecycle Emissions by Nuclear has One of the Lowest Mortality Rates per TWh Source (1) of Electricity (2) 32.72 1,000 900 Range of Lifecycle GHG Emissions Observed Minimum g CO2 eq. per kWh 800 24.62 g CO
Slide 11: Nuclear is the Most Reliable Form of Generation
Nuclear is the Most Reliable Form of Generation Constellation Nuclear Capacity Factor (1,2,3) Capacity Factors By Generation Type (4) Industry Average (5) 100% 2020 2021 2022 95.7% 95.4% 94.6% 94.5% 94.8% 90% 91.7% Ranking Among Major 90.8% 90.8% 90.9% 90.9% Operators (2-Yr) 80% 2022 1 70% 2021 1 60
Slide 12: Always-on Nuclear Keeps the Lights On, Fossil Fails During Grid Emergency
Always-on Nuclear Keeps the Lights On, Fossil Fails During Grid Emergency Forced Outage vs. Available Capacity Total Forced Outages (5) • Between December 23-25, Winter Storm Elliott Forced 4% 9% brought record-setting low temperatures to the 17% Outage 23% Other (4) PJM region, threatening the reli
Slide 13: Nuclear Fuel is Extremely Energy Dense and Creates Minimal Waste
Nuclear Fuel is Extremely Energy Dense and Creates Minimal Waste Which is Safely Stored Nuclear Fuel is Dense (1) Spent Nuclear Fuel Storage and Oversight • After spent fuel is cooled in pools, it is sealed in a metal or steel cylinder, surrounded by helium gas and then encapsulated in a metal or co
Slide 14: Energy Solutions Enable Customers to Meet their Sustainability Goals
Energy Solutions Enable Customers to Meet their Sustainability Goals Constellation Offsite Renewables (CORe) Hourly Carbon-Free Matching Worked with Microsoft to develop an hourly carbon-free matching Allows customers to transact with utility-scale, carbon-free platform that matches a customer’s ele
Slide 15: Accelerating the Transition to a Carbon-Free Future
Accelerating the Transition to a Carbon-Free Future Constellation Launched Volta partnership separation from Exelon to accelerate the deployment of energy storage technologies to Constellation’s Climate enable electric vehicles and Commitment: 100% complement renewable owned generation energy deploy
Slide 16: Constellation's Climate Commitment
Constellation’s Climate Commitment 100% Of our owned generation will be 100% Reduction of our operations- 100%Of C&I customers provided with carbon-free by 2040 driven emissions by 2040 (1) specific information about how to meet GHG reduction goals Clean Energy Supply: Clean Electricity Supply:
Slide 17: Emissions are Already Significantly Below Paris Climate Agreement Levels
Constellation’s Emissions are Already Significantly Below Paris Climate Agreement Levels 0.700 Below 2 Degrees C National Pledges 1.5 Degrees C Constellation (1) 0.600 0.500 t CO2e/MWh 0.400 0.300 0.200 0.100 0.000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Reflects Transition Pathw
Slide 18: Water Management
Water Management Our Use Our Approach • We use the World Resources Institute Aqueduct tool to aggregate • The Water Resource Management Policy guides our navigation of water stress indicators for the power generation sector water-related risks and opportunities • Constellation’s facilities with the
Slide 19: Diversity, Equity and Inclusion (DEI)
Diversity, Equity and Inclusion (DEI) Strategic Priorities Workforce Diversity (1) White: 79% Strategic Talent Sourcing Black or African American: 6.9% Source talent with an enhanced focus on diverse populations through relationships, technology and intentional practices Hispanic or Latino: 5.2% Asi
Slide 20: Promoting DEI
Promoting DEI Embedding DEI Throughout Our Business Building Trades Diversity Pledge Constellation operates in a world rich in diversity - including race, • To show our commitment to advancing DEI in the energy sector, ethnicity, gender identification, sexual orientation, abilities, experience Const
Slide 21: Health and Safety
Health and Safety We are dedicated to safety and operate all aspects of our businesses in a manner that protects the safety and health of our employees, contractors, customers and the general public Nuclear Plants Have Low Recordable Injury Rates • INPO evaluates plant and industry safety and Incide
Slide 22: Engaging With Our Communities
Engaging With Our Communities Community Engagement 2022 Impact Overview Local stakeholder engagement is particularly important for our nuclear operations. At each of our plants, we conduct outreach through the following mechanisms: $7.9 million 80,000 $4.6 million • Guided Tours • Speaker’s Bureau p
Slide 23: Board of Directors
Board of Directors Technology and Accounting and Transformation Development & Regulatory and Cybersecurity Infrastructure Sustainability Management Management Environment Industry and Governance Safety and Innovation Corporate Executive Business Finance 27% Talent Policy Risk and Female Joseph Domin
Slide 24: Constellation's Board Committees
Constellation’s Board Committees Audit & Risk Committee Compensation Committee • Review matters related to the annual audited financial statements, quarterly financial • Assists Board in establishing performance criteria, evaluation, and compensation for statements, earnings press releases and the a
Slide 25: Executive Compensation Program Structure
Executive Compensation Program Structure CEO Compensation Structure What We Do: Long-Term Incentive Plan Shareholder Alignment • Align pay for performance • Maintain significant stock ownership requirements for Directors and 2023 – 2025 Performance Rewards executives for Executive Officers Shares (6
Slide 26: Constellation's Value Proposition
Constellation’s Value Proposition 26
Slide 27: Other Resources and Links
Other Resources and Links Constellation Sustainability Report: https://www.constellationenergy.com/content/dam/constellationenergy/pdfs/Constellation-2023-Sustainability-Report.pdf ESG Data Index & Factsheet: https://www.constellationenergy.com/content/dam/constellationenergy/pdfs/Constellation-2023
Slide 28: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information General Financial Performance Unit 2021 2022 GRI/SASB Indicator Additional Information Operating revenues Billion USD $19.64 $24.44 GRI 201-1 Net revenues Million USD ($346) $495 GRI 201-1 Market Information Unit 202
Slide 29: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Natural gas and oil GWh 19,960 21,563 Percent of Constellation Share of total Constellation generation 11% 11% generation Renewables and storage GWh 4,627 4,036 Percent of Constellation Share of total Constellation g
Slide 30: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information For more information about the NRC’s Reactor Oversight Process Action Matrix, please visit Regulatory response Number N/R 3 SASB IF-EU-540a.1 https:// www.nrc.gov/reactors/operating/oversight/ro p- description.html U
Slide 31: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Energy/Fuel Consumption Unit 2021 2022 GRI/SASB Indicator Additional Information Total energy/fuel consumed GWh 45,728 46,084 Total non-renewable energy/fuel consumed GWh 44,869 46,040 GRI 302-1 Total renewable energ
Slide 32: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information During verification of our 2022 GHG inventory, we discovered an inadvertent error in the data source utilized Scope 2 (market-based) GHG emissions Thousand metric tons CO2e 56 45 GRI 305-2 for calculating emissions f
Slide 33: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Avoided carbon emissions due to nuclear generation Million metric tons CO2e 124 123 This data only includes GHG emissions avoided as a result GHG emissions reduced as a direct result of reduction Metric tons CO2e 275
Slide 34: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Other Significant Air Emissions Unit 2021 2022 GRI/SASB Indicator Additional Information Nitrogen oxide (NOx) emissions Metric tons 820 938 GRI 305-7 NOx emissions intensity kg/MWh 0.005 0.005 SASB IF-EU-120a.1 Sulfu
Slide 35: ESG Data Index & Factsheet
ESG Data Index & Factsheet GRI/SASB Unit 2021 2022 Additional Information Indicator The total acreage that we have data for is 33,903 acres, and that’s across 41 of the projects (out of 140 total projects). Acreage is irrelevant to some of Acreage of sites certified by the WHC Acres 31,007 More than
Slide 36: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Employees Unit 2021 2022 GRI/SASB Indicator Additional Information Total number of employees Number 11,696 13,408 By employment contract Permanent employees Number 11,696 13,370 Male Number 9,307 10,414 GRI 2-7 Femal
Slide 37: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Diversity, Equity and Inclusion Unit 2021 2022 GRI/SASB Indicator Additional Information Gender identity by career level Total Male Percent of total employees 80% 78% Female Percent of total employees 20% 22% Not dis
Slide 38: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Unit 2021 2022 GRI/SASB Indicator Additional Information Racial or ethnic diversity by career level GRI 405-1 Racial or ethnic diversity by career level GRI 405-1 Total Total American Indian or Alaska Native Percent
Slide 39: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Native Hawaiian or other Pacific Islander Percent of Management N/R 0.04% Not disclosed Percent of Management N/R 1.3% Two or more races Percent of Management N/R 1.8% White Percent of Management N/R 84.6% Executives
Slide 40: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Executives Our 2022 report grouped Management and Executives Aged <30 Percent of Executives N/R 0% as a single category titled “Management”. In this year’s Aged 30-50 Percent of Executives N/R 47% report, we show Man
Slide 41: ESG Data Index & Factsheet
ESG Data Index & Factsheet GRI/SASB Unit 2021 2022 Additional Information Indicator By age group Aged <30 Number N/R 798 Aged 30-50 Number N/R 1,018 Aged >50 Number N/R 230 Collective Bargaining Agreements (CBAs) Unit 2012 2022 GRI/SASB Indicator Additional Information Number 3,274 3,342 Total emplo
Slide 42: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASBAdditional Information GRI/SASB Indicator Unit 2021 2022 Additional Information Indicator Employee engagement survey results Employee engagement survey results Response rate Percent of employees N/R 74% - Response rate Percent of employees N/R 74% -
Slide 43: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Health and safety-related rates are Health and Safety Metrics Unit 2021 2022 GRI/SASB Indicator calculated based on 200,000 hours worked We expect all contractors to follow Employees and relevant contractors covered
Slide 44: ESG Data Index & Factsheet
ESG Data Index & Factsheet GRI/SASB Unit 2021 2022 Additional Information Indicator Contractor health and safety incidents Number N/R 0 GRI 403-9 Fatalities Rate N/R 0 SASB IF-EU-320a.1 Number N/R 0 GRI 403-9 High-consequence work-related injuries (excluding fatalities) Rate N/R 0 SASB IF-EU-320a.1
Slide 45: ESG Data Index & Factsheet
ESG Data Index & Factsheet GRI/SASB Unit 2021 2022 Additional Information Indicator Constellation’s Ethics and Compliance Office and business unit compliance departments oversee our Executive level responsibility for ethics issues adherence to regulatory obligations and conduct various annual risk a
Slide 46: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Board Member Diversity Unit 2021 2022 GRI/SASB Indicator Additional Information Constellation added a new Board member Total number of Board members Number N/R 10 GRI 405-1 in May 2023 which brings the total count to
Slide 47: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Non-represented employees and Board members are also required to complete a certification of compliance Employees who completed required Code of Conduct questionnaire annually to disclose potential conflicts of Perce
Slide 48: ESG Data Index & Factsheet
ESG Data Index & Factsheet Unit 2021 2022 GRI/SASB Indicator Additional Information Constellation uses a standardized supplier-scorecard template for all suppliers that go through our Managed Supply Process that participate in an RFP. Any scope of work that is over $1,000,000 in total spend must go