What ESG means at RWE

What ESG means at RWEAs of May 2021

2May 2021 ESG presentation

Seite 3May 2021 ESG presentation

Paris aligned climate goals

30+

May 2021 ESG presentation


Climate Change: B

65 (in the top 6% of assessed companies)

Eurozone 120 Index constituentA

33.4 (216 out of 595 in the industry)

63 (12th out of 71 in the industry)

C+

62

Bloomberg Gender Equality Index 2021

Workforce Disclosure initiative participant

ESG Ratings

More ESG rating results and further informationon our Sustainability websites on RWE.com

https://www.rwe.com/en/responsibility-and-sustainability/corporate-governance/ratings-and-rankings/?


Core Coal/Nuclear

Supply& Trading

OnshoreWind/Solar

• Global trading• Commodity

solutions• Gas & LNG • Gas storage

• Onshore and solar operations in • Europe & APAC• Americas

OffshoreWind

• Global offshore activities

• Floating wind pilot projects

Hydro/Biomass/Gas

• German coal and nuclear activities

• Focus on responsible andsocially accept-able phaseoutand secure and efficient dismantling

1 Pro rata installed capacity of core business. | 2 Calculated for generation portfolio of core business. | Note: Figures for FY 2020.

Share of coal inGroup revenues

GW

Installed capacity1 Carbon factor2

g/kWh

• Flexible hydro, biomass and gas plants in • Germany• UK• Netherlands


1 Climate targets and strategy approved by Executive Board; regular information on progress; CEO is responsible for climate-related issues and reporting. I 2 Capex decision-making aligned to RWE’s long-term GHG reduction target. 3 Financing and investment activities that support/accelerate low-carbon energy transition (e.g. wind/solar technology, battery storage, green hydrogen), also includes M&A or R&D activities; full exit from all coal-related investments.

Paris-aligned

Climate protection targets

Climate change considerations integrated into our capex processes2

Carbon neutrality target

Low-carbon investing

Climate protection targets in line with goals of the Paris Agreement

Disclosure alignment and transparency

Net CAPEX ‘20-22

Regular reporting on climate metrics and progress to provide transparency

Ambitious targetsset for reducing RWE’s GHG emissions on a clearly defined scope of emissions Validated and

confirmed by renowned initiatives (SBTi, TPI)

Finance flows consistent with a pathway towards low-carbon energy future3

€ bn

High level of alignment of RWE’s capex with the proposed EU Taxonomy criteria

Climate governance a Board responsibility1 fully comply with EU Taxonomy

capex


RWE is founding member of UN Global Compact CFO Taskforce

• Bringing together a multi-sector group of corporate finance leaders to develop innovative strategies to mobilise finance towards sustainable development

The CFO Taskforce in Numbers

Members Industries Regions Collective market cap(US$ trillion)

T

• Joint development of four CFO Principles to integrate Sustainable Development in Corporate Investments and Finance supplementing the UN Global Compact’s Ten Principles to support companies in the transition

• CFOs are committed to implement the CFO Principles inside their organisation and to share their experience and learnings in the community of Global Compact companies.

1 Sustainable Development Goals.


Seven SDGs were defined as material in relation to the business activities of RWE

• Recultivation programme with focus on biodiversity

• Increase in ecology in renaturalised mining areas

• 38% women on management boards1

• 5th place in Women Career Index 2020

• Part of 2021 Bloomberg Gender Equality Index; with above average rating for inclusive culture

• Leading operator of wind and solar with >9 GW installed capacity

• Highly efficient and flexible power plant portfolio

• Strong employer with workforce of ~20,000 people

• Regional support for structural change and energy transition

• CO2 reduction by 62% since 2012

• 2030 emissions targets recognised by the Science Based Targets initiative

• Target to be carbon neutral by 2040

• Focus on hydrogenand storage technologies to support a carbon-neutral transition for the future

• Strict compliance requirements with RWE’s Code of Conduct

• Member of Bettercoal to promote standards in supply chain

1 From May 1, 2021.


EU Taxonomy: share of RWE’s eligible business activities (2020)

Sustainability-Linked Financing Instruments, Frameworks and Policies:

20%

Revenues

84%

Capex

16%

Opex

50%

Adj. EBITDA

1

• Taxonomy-aligned KPIs integrated into RWE’s Revolving Credit Facility

• RWE Green Bond Framework • ESG criteria integrated into third-party processes and in financial investments

EU Taxonomy aligned

1 Following activities included: Offshore Wind, Onshore Wind, Solar, Hydro (run-of-river, pumped storage); all values calculated according to the latest iteration of the draft EU Taxonomy for Sustainable Finance.


under construction

by development pipeline

carbon emission reduction since 2012

GW installed wind and solar

of specific emissions from Scope 1 and 2 by 20301

fully comply with EU Taxonomy

In line with Paris agreement2

capacity and patent applications

based on

1 RWE Science-based Target; from a 2019 base year. I 2 Recognized by the Science Based Targets Initiative and Transition Pathway Initiative.


Biodiversity

plant and

Environmental compliance

environmental management coverage

hectars

billion animal

of renaturalised afforested or agricultural landscape

expenses in environmental protection in 2020

Sophisticated biodiversity policy

Own internal wastewater treatment system & focus on circular economy / closed loop recycling

species identified over the entire recultivation process

Diversity of species comparable to high valuereference habitat

since 2015


Target to achieve net zero by 2040 includes all direct and indirect GHG emissions (Scope 1, 2 and 3)

Fully supportive and aligned1 withParis Climate Agreement

1 Validated and confirmed by the investor initiative Transition Pathway Initiative (TPI), https://www.transitionpathwayinitiative.org/companies/rwe as well as by the Science Based Targets Initiative (SBTi), https://sciencebasedtargets.org/companies-taking-action.

2012 2020 2030 2040

million tonnes CO2

Proven track record of carbonemission reductions with clear coal phaseout roadmap

2012 2020 2023 2030 2038

(GW)23.2

10.8 ~8 <40.0

coal capacity

NetZero

Power Generation

https://www.transitionpathwayinitiative.org/companies/rwe

https://sciencebasedtargets.org/companies-taking-action


-50%

From a 2019 base year RWE commits to reduce until 2030..

° C

-30% ° C

We take action.This includes:

• Clear decarbonisationroadmap with further closures of coal activities

• Ongoing expansion of our renewablesportfolio

• Driving forward green hydrogen

• Improving efficiency

(in m t CO2e)

89.870.4

ca. -22%

2019 2020

0.6 2.62019 2020

Scope 1 Scope 2 Scope 3

22.3 18.9

2019 2020

CO2e per kWh

Note: RWE Science-based Targets covering all direct and indirect GHG emissions are consitent with reductions required to keep global warming to well-below 2 °C. I 1 Operation-related direct and indirect GHG emissions. I 2 Upstream and downstream indirect GHG emissions.

http://www.rwe.com/emissions


Coal capacity (pro rata) Coal production

in GW (in % on total)

2019 2020

12.8 GW

(26%)

(30%)10.8 GW

ca. -15%

23% share of coal in Group revenues 2020 (2019: 23%)

2019 2020

62 TWh

(30%)

(38%)44 TWh

ca. -30%

Coal-based C02 emissions

in TWh (in % on total)

Hard coal:

• Last two German hard coal power plants (in total 1.6 GW) successful in closing auction; moved into grid security reserve until final shut down in summer 2021

• RWE will no longer run any own hard coal plants in Germany

Lignite:

• Public-law contract regarding German coal exit signed

• First lignite power plant (300 MW) in accordance with the contract closed, followed by further ~900 MW end of 2021

61.8 Mt

47.7 Mt

ca. -23%

in million metric tons

2019 2020

20%


Capacity development Wind/Solar, as of 31 Mar 2021

Net changesInstalled capacity

31 Dec 20

-0.5

Installed capacity

31 Mar 21

0.4

COD2022

2.01.7

COD2021

-0.19.4

Changes from transactions

Residual target

Target2022

1.4

COD after 2022

8.9

13.0

Projects under construction/FID

1.5 Onshore0.5 Solar0.05 Battery

0.8 Offshore0.1 Onshore0.5 Solar0.2 Battery

GW pro rata

Note: Information is in pro rata. As of 31 Mar 2021. | Rounding differences may occur.

• 0.5 GW of capacity reductions due to 75% farm-down at Stella, Cranell and Raymond East onshore wind farms. Closing and farm-down at Raymond West is expected in Q2

• FID’s of ~0.7 GW in solar with co-located storage and onshore wind taken, mainly in the US • Integration of remaining 20% stake in the UK offshore wind farm Rampion with closing as of 1 Apr 2021

>

• Addition: Rampion stake of 80 MW• Farm-down: Raymond West

1.4 Offshore

Projects under construction/FID

Sofia


Note: Development pipeline of 34 GW excluding central tender/lease auctions. Figures as of 31 Dec 2020. Events after this date, namely the 3GW award from UKR4 leases is reflected in the numbers. | Rounding differences may occur.

Development pipeline per technology and region, GW pro rata

~8.0

Onshore/SolarEurope/APAC

Onshore/SolarAmericas

2.86.1

6.8 ~15.6

Americas APAC

Additional central tender/

lease auctionEurope

Delta Nordsee 1&2

Nordsee Two&Three 0.1 GW

UKR4 lease projects 3.0 GW

Sofia 1.4 GW

Rampion 2 0.6 GW

Awel y Môr 0.3 GW

North Falls 0.3 GW

Five Estuaries 0.1 GW

Dublin Array 0.5 GW

Sharco II & V 1.0 GW

FEW Baltic II 0.4 GW

Södra Midsjöbanken 1.6 GW

Dunkerque 0.2 GW

Chu Feng 0.4 GW

10.2 GW

Offshore

7.0

0.9 0.1

>20GW

10.2

13.1

7.6

2.9

~34 GW

Offshore

Onshore Storage

Solar


Fit forthe future

• Co-located energy storage system coupled with solar

Innovative methods of storing electricity

• Redox flow technology

• StoreToPower

Offshore wind expansion

Rhenish area, GER)

Hickory Park, USA)

RWE Campus, GER; salt caverns)

Vanadium batteries & Large-scale organic flow batteries

• Floating offshore wind

• 30+ projects along the entire value chain

TetraSpar, SATH, Maine Aqua Ventus)

Demonstration projects for different types of floating foundations

See next slide

Hydrogen

)

Circular energy / reuse and recycling

Thermal energy storage power station

• Multi-fuel conversion / Closed loop recycling • 2nd life for electric car batteries

Conversion of waste into base chemicalsRecycling of sewage sludge incl. recovery of phosphorus

Reuse in stationary battery storage systems


Together with partners, we are active in >30 projects and along the entire renewables and H2 value chain

AquaVentusHeligoland

South Wales Industrial ClusterMilford Haven

Eemshydrogen

Eemshaven

NortH2

North of the Netherlands

FUREC

Prov. Limburg

GET H2

Lingen

H2 BrunsbüttelBrunsbuettel

RostockRostock

HySupplyBerlin

Find out more here:H2• Dedicated Board member for

H2 at RWE Generation defining and implementing RWE’sH2 strategy

• Clean H2 is key to the energy transition achieving national and European climate targets by 2050

• Creating an H2 economy is a long-term endeavour and requires regulatory and financial support. We actively participate in the discussion

• Demand for green H2 will drive global growth of renewables

http://www.rwe.com/hydrogen

20ESG presentationMay 2021

Social Performance - Highlights

Health & Safety Diversity Support of local communities

of local suppliers

LTIF1

womenon management boards3

different employee nationalities

1 Lost Time Incident Frequency. I 2 Company Healthcare Management. I 3 From May 1, 2021.

High Data Protection & Cyber Security standards

health quote

& sickness rate

Corporate Health Award in energy sector for excellent CHM2

High above average score in Inclusive Culture at Bloomberg GEI

‘

million into localcommunities hosting wind farmprojects in UK & IRE

Development of business and industrial parks for SMEs with local districts in former mining areas

with orders worth €0.5bn in mining regions in GER


Diversity is key to master the transformation process and we are well aware of that

Gender & Equalityof opportunity The energy transition is neither female nor male and concerns all of us. This is why we promote equality between men and women at all levels.

Age

We create a lively mix of young and older employees. In this way we are combining years of experience with forward-looking perspectives and innovative ideas.

Country of origin

RWE employees comefrom 66 countries in total. Founded 1898 in Essen (Germany), today'sglobal RWE networkcomprises subsidiaries in Europe, Asia, Australiaand the U.S.

Disability & InclusionAt RWE, people with andwithout disabilities worktogether as a matter ofcourse. We actively supportthe training of disabledyoung people and offerinternships for second levelstudents with disabilities.

Sexual orientation & identityAt RWE, we want everyoneto be themselves, withouthaving to change who theyare. We believe that this isthe only way for employeesto reach their fullpotential.

Our ratings:

Overall rating:54.9% (from 100%)

Overall ranking: Rank 12

Overall ranking:Rank 5(amongst the 10 best companies)

Disclosure score:76%

Overall ranking:Rank 3 in utility sector


Group-wide external and internal initiatives and networks toenhance the focus on diversity topics

• Initiative Chefsache promotes equal opportunities for women and men in top managerial positions

• Aimed at achieving fundamental changes in the world of work

• Charta der Vielfalt promotes diversity in Germany

• RWE is a founding member of this diversity charter and regularly takes part in conferences

• Employers Network for Equality and Inclusion in the UK promotes diversity worldwide

• RWE engages in discussion forums and in knowledge transfer on a variety of diversity topics

• TOTAL E-QUALITY evaluates equality with regard to all aspects of diversity

• RWE has been awarded certification for the company’s commitment to equal opportunities in day-to-day work and employee development

• The Women in STEM Jobs network supports all female employees with a relevant educational background in developing their careers

• Female students and employees develop their knowledge of STEM subjects in regular workshops

• The Group’s representative body for disabled people @RWE ensures full inclusion of severely disabled colleagues at the company

• There are representatives for disabled employees in all operational companies

• The Women’s Network brings together female employees at all levels

• Once a year, the network organisesa business conference, providing networking opportunities as well as insights into cross-company business topics



•

• Funding decisions made by local people, who know their community best• Bringing communities together• Supporting the most vulnerable• Tackling fuel poverty and isolation• Retaining rural services• Increasing tourism opportunities• Creating and sustaining local employment• Providing education and training opportunities• Supporting young people• Supporting community facilities and local transport

Find out more here:

https://uk-ireland.rwe.com/in-your-community/community-funding-in-action


Mastering the COVID-19 challenge together

• RWE encouraged and empowered wind farm community funds to take flexible approach to supporting what needed most in local response to COVID-19

• Some wind farm funds opened COVID-19 immediate response funds to meet urgent requests for funding and are now supporting projects that will help communities recover

• Projects supported included: Distillery funded to start making hand sanitizer, local school 3D printing Personal Protective Equipment (PPE), project delivering healthy hot meals to National Health Service (NHS) staff and food banks

• COVID-19 related volunteering and donationse.g. volunteering for the NHS or PPE donations for hospitals and care homes


Advocating for industry-wide ESG standards and


Gender

shareholder representatives elected by the Annual General Meeting

employee representatives elected by the employees of RWE AG & its group companies

20 Board Members

Male 65% 35% Female

Board Tenure in Years

Age

65+ 25% 75% <65

< 6 years 6 - 12 years >12 years

14

5

1


New executive remuneration system aligned with strategic goals and shareholder interests

Strategic Performance Plan (Cap: 200%)

• Share-based linked to 3 equally weighted KPIs− Adjusted net income− Relative Total Shareholder Return− CO2 emissions factor

Bonus (Cap: 180%)

• Economic performance• Collective and individually achieved goals incl. ESG criteria

Fixed• Annual base salary (25%) + pension instalments (10%)

Minimum remuneration

Budget remuneration

Maximum remuneration

1 Ordinary Board Members. I For more information visit our website rwe/corporate-governance and our

Remunerationcomponents

Share Ownership Guidelines (SOG)

• CEO: 200%

• OBM1: 100%

• Shareholding during service period plus 2 more years

Malus / Clawback

• Up to 100%

• For all variable pay elements

Maximum remuneration

• CEO: €9.3m

• OBM: €4.8m

Furthercomponents

https://www.group.rwe/en/investor-relations/corporate-governance/

http://www.rwe.com/ir/presentations


2019 2020ENVIRONMENTGHG emissions (Scope 1) million mt CO2e 89.9 70.4GHG emissions (Scope 2) million mt CO2e 0.6 2.6GHG emissions (Scope 3) million mt CO2e 22.3 18.9Carbon intensity (EU ETS) mt CO2/MWh 0.569 0.459Carbon intensity (GHG Scope1+2) mt CO2e/MWh - 0.497Carbon strategy Yes

SOCIALTotal number of employees # 19,792 19,498Diversity policy YesWomen on 1st management level1 % 27 27Women on 2nd management level1 % 19 22Female Executive Board members % - 33Female Supervisory Board members % 30 30Lost time injury frequency (LTIF) 2.1 1.5

GOVERNANCESupervisory Board independence % 100 100ESG Linked Compensation Yes

30% for 1st management 20% for 2nd management

2022 target:

2030 Scope 1 +2 intensity target: -50% vs 2019

1 Below the Executive Board of RWE AG.

More ESG key data on: http://rwe-datatool.com/

2030 Scope 3 target: -30% vs 2019

2040 target: Carbon neutral

http://rwe-datatool.com/

Seite 30May 2021 ESG presentation

Financial CalendarImportant Links

Contacts for Investors & Analysts

•

•

•

•

• Thomas Denny ( Head of IR )

• Dr. Burkhard Pahnke

• Lenka Zikmundova

• Jérôme Hördemann

• Susanne Lange

• Dr. Jens Wiggershaus ( Head of CR )

•

•

•

•

•

• Charline Heßling

• Dr. Holger Perlwitz

• 12 August 2021Interim report on the first half of 2021

• 11 November 2021Interim statement on the first three quarters of 2021

• 15 March 2022Annual Report for fiscal 2021

• 28 April 2022Annual General Meeting

http://www.rwe.com/ir/reports

http://www.rwe.com/ir/investor-and-analyst-conferences

http://www.rwe.com/ir/presentations

http://www.rwe.com/ir/videos

mailto:[email protected]






https://www.group.rwe/en/responsibility-and-sustainability

https://www.group.rwe/en/responsibility-and-sustainability/cr-report-archive

https://www.group.rwe/en/investor-relations/corporate-governance/

https://www.group.rwe/en/responsibility-and-sustainability/social-affairs-and-society/sustainable-supply-chain

https://www.group.rwe/en/the-group/diversity



Documents

What ESG means at RWE