2014 nrg sustainability report

2014 NRG Sustainability ReportSustainability in Action

Table of ContentsNRG SUSTAINABILITY VISION 01

Chief Executive Officer Letter 01

Chief Sustainability Officer Letter 03

Our Vision 05

Our Carbon Emission Goals 06

NRG’s Green Headquarters 07

NRG SUSTAINABILITY STRATEGY 08

Go Green 08

• Solar 08

• Wind 10

• MicroGrid 11

• NRGEVgo® 12

Expand Retail 13

• NRGHomeRetail 13

• TexasLeadership 13

• GreenMountainEnergy 13

• NRGHomeSolar 14

• GoalZero® 14

• NestLabsPartnership 14

Enhance Generation 15

• NaturalGas 15

• Coal 16

• NRGCarbon360 17

• DistributedGeneration 18

NRG SUSTAINABILITY FOCUS AREAS 19

Employees 19

• SafetyandWellness 19

• EmployeeEngagement 20

• WorkforceDiversity 21

Community 24

• GlobalGiving 24

• GlobalOutreach 29

• PublicPartnerships 31

Environmental 33

• NRGEnvironmentalPolicyStatement 33

• Management 34

• econrg® 35

• SystemsEco-Efficiency 35

• Emissions 35

• Water 36

• Waste 37

• BiodiversityandConservation 38

Supply Chain 43

• Management 43

• Priorities 43

• SupplierSelection 44

• StandardsandPolicies 45

GOVERNANCE 46

Corporate Sustainability Governance Structure 46

Stakeholder Priorities 46

Impact Analysis 46

• LifecycleAssessment 47

• MaterialityMatrix 48

REPORTING 49

Safe Harbor Disclosure 50

2014 NRG Sustainability Report | 01NRGSustainabilityVision

CHIEFEXECUTIVEOFFICERLETTER

David Crane ChiefExecutiveOfficer

It’saninevitable,stress-inducingcallonanyroadtrip.Usually,thetypicalfirstansweris“soon.”Butastimeintheboringconfinesofanautomobiledragson,andpatiencewearsthin,theanswerinvariablydevolvesintosomethinglike,“We’llgettherewhenwegetthere,trytoenjoytheride.”Whilehardlyasatisfyinganswerfortheincessantlyquizzical,it’susuallyenoughtogetthroughthelastleg ofthedrive.

Wehavenosuchsimplequipsoreasyrebuttalsfor ourcurrentglobalclimatechangeroadtrip.Butasyou willseeinthisyear’s2014SustainabilityReport,NRGismakingsignificantstridestowardacleaner,moresustainabledestination.

We’vegotavisionofwherewewanttogetto—where wehave togettoaccordingtotheworld’sclimate experts—andaformingstrategyonhowtoget there.Butthereremaingapstofill,partnershipstobeformedandresistancetobeovercomeontheroadto thecleanenergyfuture.

So,arewemovingfastenough?“Arewethereyet?”No.Clearlynot.

TodayNRGisthenation’ssecond-largestconventionalpowergenerationcompany,and,asaresult,stillamajoremitterofcarbondioxide.However,weareheadedintherightdirection,havingachievedsignificantreductionsinCO2emissionsinrecentyears.Yetthepastisthepastandwe,whenwefocusonsustainabilityinparticular,areentirelyfocusedonwherewegofromhere.

Lastyear,wemadeourintentionsclearwithaplantoreduceourcarbondioxideemissionsby50%by2030,andby90%by2050belowa2014baseline.It’sauniqueanduniquelyimportantgoal.Almostunprecedentedforacorporation,itisparticularlysoforanenergycompany,

whichhistoricallyhasbeenalmost100%dependentonfossilfuels.Ifwecanshowthewayonthisandotherenergycompaniesthenfollow—voluntarilyorasaresultofcustomerdemandorpeergrouppressure—thenwewillhavesuccessfullytackledthesinglebiggestsourceofgreenhousegasemissions.

NRGalone,becauseofoursize,canhavearealimpact.Onceachieved,ourCO2reductiongoalswillbetheequivalentofavoidingthedeforestationof18,000squaremilesofAmazonianrainforest.That’sasprawlingchunkoflandthesizeofVermontandNewHampshirecombined.

Alargepartofourlong-termcarbonreductionstrategyispredicatedontheembraceofemergingtechnologiestoallowustoachieveourcarbongoalswhilecontinuingtofulfillour“sacred”missionofkeepingourcustomersandthecommunitiesweserveenergizedwithsafe,affordableandreliablepower.

Wehavealreadystarted.In2014,webrokegroundonourbilliondollarPetraNovaProject,oneoftheworld’slargestpost-combustioncarboncaptureprojectsnowunderconstructionatWAParish,alargecoalplantsouthofHouston.Thiscommercial-scale,economicallyviableapproachtocarboncapturewillgoonlinenextyearandredirect90%oftheCO2fromtheprocessedfluegas(which,tobeclear,isnotalloftheplant’sfluegas),thenreuseitforenhancedoilrecovery(EOR),thusstoringitdeepunderground.

NRGitselfcanmakeasignificantdifferenceonthisissue,butifsolvingmostsocietalissues“takesavillage,”winningthefightagainstglobalwarming“takesaglobalvillage”;notjustsovereignnations,butalsosub-sovereignentitieslikecitiesandmunicipalities,eNGOs,andpurposefulenergyconsumers.EvenourmostprominentspiritualleaderslikethepopeandtheDalaiLamahaveacriticalroleto

“Are we there yet?”


play.Yetthekeyplayersweknowbest,whocanmakeabigdifferencewiththeircombinedaccesstotechnology,consumeroutreach,financialandhumanresourcesandtheirsingularityofpurpose,arethemajorcorporationswhofeellikewedoregardingthemoralimperativeofclimatechange.

In2014,weannouncedastrategicpartnershipwithUnileverthatalignswiththatcompany’sSustainableLivingPlan.It’saforward-thinkingglobalblueprintforsustainablegrowththataimstodoublethesizeofUnilever’sbusinesswhilereducingitsenvironmentalfootprintandincreasingitspositivesocialimpact.

UnileverU.S.alreadypurchasesallofitselectricityfromrenewablesourcesthroughrenewableenergycertificates(RECs).Throughthisnovelpartnership,NRGishelpingUnileverdeviseinnovativesolutionsforonsiteandoffsiterenewablegeneration,resultingin100%cleanenergyforallenergyuseatUnileverU.S.sitesby2020.

OurpartnershipwithUnileverhasbeenfollowedwithotherssuchascorporatethoughtleadersfromKaiserPermanenteinthehealthcarefieldandStarwoodinhospitality.Andmoretocome.Manymore.Hopefully, fortheplanet,many,manymore.

Ifwecanalignwithothercompaniestoestablishcarbonreductiongoals,engagetheiremployees,reachbackintotheirsupplychainsand,mostofall,galvanizetheircustomerbase,thenwewillhavethemomentumwe needtowinthis.

Itistheyoungergenerationswhohavetherighttodemandleadershipfromusonthistranscendentissueofourtime.Certainly,speakingonbehalfofNRG,wewilllead.Butinsodoing,wedon’tstandalone.Fromthefullrangeofpublicandprivateinstitutions,intoeveryhomeandintheheartsandmindsofeveryenergyconsumer,weallneedtostandupandbecounted—notjustwithourwords,butthroughouractions.Whenitcomestoclimatechange,thecausticbarbsofdenialfromthechildrenofdarknessareoflittleconsequence;whatisimportantisallayingthefearsandconvertingtheapathyofthechildrenoflightsotheystandtogether.

Withus.

Andwithyou.

David Crane ChiefExecutiveOfficer

2014 NRG Sustainability Report | 03

AsIthinkbacktothistimelastyear,NRGwasinthemidstofestablishingourfirstlong-termcarbon-reductiongoals.Sixmonthslater,inNovember,weannouncedourgoaltocutCO2emissionsby50%by2030and90%by2050.Thismaynotseemlikeabigdealintheworldofcorporatesustainability—wherebig,hairy,audaciousgoalsareadimeadozen—buttheNRGgoalsare,infact,significantinthebiggerpicture.Thisannouncementmarkedthefirsttimeamajorelectricitygeneratorand,asaresult,majorcontributortogreenhousegas(GHG)emissionsputactualdatesandquantitiesarounditstransitiontoa low-carbonenergyfuture.

I’moftenaskedbyouremployees,partnersandcompetitorswhatittookforacompanylikeNRGto putapublicstakeinthegroundandsetfirmtargetsforCO2reduction.Whattheyreallywanttoknowiswhat ourprocesswas,howwereachedagreement,whattheriskswereandwhethertherewasanybenefittogoingpublic.Inresponse,I’dliketousethisintroductionofour2014SustainabilityReporttoprovidesomeinsightinto ourjourney.

Therewerefourstagestosettingourgoals:

1. Set the Targets

2. Vet the Targets

3. Go Public

4. Get to Work

Eachstagepresentsitsownuniquelearningopportunitiesandchallenges.

Step 1: Set the TargetsThefirststep,andinourcasetheeasiest,wasidentifyingtherighttargets.Thiswastheresultofstrongleadershipfromthetop.WhenIjoinedNRGalittlemorethantwo

yearsago,IjoinedacompanywhoseCEOhadacceptedthesciencebehindclimatechangeandbelievedwehadaresponsibilitytoprovidepowertoourcustomerswhileensuringlong-termsecurityandresourcesforfuturegenerations.DavidCranerecognizedthatourindustrywasabouttobedisruptedbyaninfluxofinnovationlargelydrivenbytheneedtosevertherelationshipbetweenGHGemissionsandenergyproduction.Asaresult,we’dbeguntoinvestincleanenergysourcessuchassolar,wind,microgriddevelopmentandelectricvehicles.Atthesametime,wewerealsoalmostdoublingourcarbonfootprintwithacquisitionsoftraditionalpowergeneratingfacilities.Giventhisdichotomy,werecognizedthatweneededtotellourstakeholdersthedirectionwewereheading;thatwhilewehavearesponsibilitytoourcustomerstoprovidereliable,affordableelectricityandtoourinvestorstogrowaprofitablebusiness,wealsoneedtoleadthewaytoafuturewhereourbusinessisdecoupledfromclimate-changingemissions.

Oneofourfirstactionswastoestablishacorporatesustainabilitysteeringcommitteecomprisingseniorleadersacrossthecompany.Overthecourseofseveralmonths,webroughtinoutsidespeakerswhohelpedusfocusonwherewewantedtobeintenyearsandin30years.Duringthisprocesswegainedalignmentonourlong-termvisionandbeganthinkingthroughtargetsthatwouldensurewewereontherightpath.Firstweidentifiedaplethoraoftargetsacrossfivemajorcategories.Asweflippedthroughthe10pagesofgoals,weagreedthattheywereallnecessaryaims.Setting50publicgoalsatonce,however,wouldaffectourabilitytoachievethem.Whatweneededwasabiggoaltofocusoureffortson,andweneededtoaddresstheelephantintheroom:carbon.Thenextstepwaspickingtheexactnumberandtiming.WhatdidNRGneedtodotoensurewewereputtinglesscarbonintheatmosphere?Couldwegetbehindameaningful

CHIEFSUSTAINABILITY OFFICERLETTER

Leah Seligmann, ChiefSustainabilityOfficer

NRGSustainabilityVision


carbongoal?Asub-groupofthesteeringcommittee,ledbyChiefOperatingOfficerMauricioGutierrez,workedtogethertoidentifyprofitablepathstoascientificallycrediblegoal.Withinacoupleofmonthsthegroupalignedona50%reductionby2030anda90%reductionby2050.ThisgoalwasthenpresentedtoCEO,DavidCraneandtherestofoursteeringcommitteeforapproval.Withthesupportofourkeybusinessleaderswemadethedecisiontomoveforward.

Step 2: Vet the Targets Oncewehadagoal,webegantheprocessofvettingthegoals.Weneededtounderstandthesensitivitybehindsettingabsolutegoals.WhatwouldthismeanforeachgroupofstakeholdersinsideandoutsideofNRG?Whatwouldbeourroadmapforreachingourgoals?Couldweeffectivelymanagechangingourbusinessmodeltoensurewewerepreparedfortheenergysystemofthefuture?Togetanswerstothesequestions,wehadconversationswithmorethan200subject-matterexpertsacrossNRGtoensureweconsideredeveryangle.Ultimately,wesoughtourboard’sguidancebeforewewerefinallyreadyandcomfortabletoannounceourgoal.Thisofcoursewasnotthetypicaldecision-makingprocessforanimblecompanylikeNRG,butinthisinstancewerealizedhowimportantitwastotakethis stepasOneNRG.

Aswevettedourgoalsandourstrategywithbusinesspartners,customers,nongovernmentalorganizations andinvestors,webegantosensetremendoussupport forourplan.Whileaggressive,thiswasdoableandhadhugepotentialtodriveshareholdervalue.Ourgoals haveprovidedthecompanyaNorthStaronwhichtofocusourinnovation.

Step 3: Go Public Lookingbackonourcarbon-reductionannouncementandthegroundbreakingofoursustainableheadquarterslastNovember,Icansaythattheresultshaveexceededexpectations.Thedecisiontogopublicwasbasedontheunderstandingthatwewouldneedfocus,pressureandsupporttoachieveourgoals.Successwillrequireustoworkwithadiverserangeofinternalandexternalstakeholdersandapublicgoalprovidesarallyingpointforourcollectiveaction. Beforewecouldgopublicweneededtoensurewecouldaddressallofthequestionsraisedduringthevettingphase.Asmallcross-functionalteamwasassembledtodevelopandexecutetheannouncementstrategy.Theprocessoffiguringoutwhatwewantedtosayprovedespeciallyenlighteningandforcedanumberoftoughinternalconversationsabouthowwewouldexplainwhatweweredoingtodifferentstakeholdersbutultimately leadtoamessagethatourentirecompanycanproudlystandbehind. Sincetheannouncementwehavefoundthatputtingastakeinthegroundpublicallyhascrystalizedourfocusandprovidedusaccesstoabroadnetworkofpeopleandentitieswithacommongoal.

Step 4: Get to WorkThisisbyfarthehardeststep.Ourgoalsareaudaciousandlong-term,butinanindustrywithassetsthatstayaroundfor60,70yearsitiscriticalwebeginourjourneytoday.Inthetimeleadinguptotheannouncementandthemonthsafter,wehaveputcriticalthoughtintohowweachieveourgoals,whattoolsandprocesseswecanputinplacetoensurecarbonisfactoredintoourbusiness.Inthisreport,you’llseeexamplesofthevariousactionswetookin2014tostartreducingemissionsinourfleetandgrowingournewlowcarbonbusinesses.

Theseincluded:

Carboncaptureandsequestrationsuchasour PetraNovafacility

Plantequipmentupgradeslikethoseatour Waukeganlocation

Naturalattritionofagingplants

Thedevelopmentofutilityscaleanddistributedrenewableenergyresources

Formingunlikelyallianceswithlike-mindedpartners

2014wasapivotalyearforsustainabilityatNRG,layingthefoundationforthefutureofourcompany.Iamimmenselyproudtohavebeenpartofit.

Leah Seligmann, ChiefSustainabilityOfficer


NRGSustainabilityVision

AtNRG,ourvisionforasustainableenergyfuturedriveseverythingwedo.Ourgoalstoprotecttheenvironmentandreduceourcarbonfootprintinformandstrengthenoureffortstogrowasacompany.

Our visionWhiletheNRGSustainabilityvisionisbroad,boldandtransformational,it’salsoquitesimpleand,asyouwillsee,fullyembeddedintoourfundamentalbusinessstrategy.Wewillgrowanddiversifyourbusinesseswhiledramaticallyreducingourcarbonfootprint.

Wearedeeplycommittedtohelpingcreateatrulysustainableenergyfutureinthelongtermwithoutsacrificingconsumersatisfactionorshareholdervalue intheprocess.Thismeansprovidingaffordable,safe,cleanandreliableenergythatisproducedinwaysthatliberate—notlimit—ouroptionsasbusinesses,consumersandcitizens.

AtNRG,webelievesustainableenergy:

Iscompatiblewithhealthyecosystems andcommunities

DeliversanetpositiveimpactforNRG

Canbemadeaffordable,reliableandsafefor ourcustomers

Supportsmaximumvaluecreationandgrowthforcustomers,shareholders,employees,suppliers,communitiesandotherstakeholders

Together,we’rebuildingasustainableenergyfuture—notjustforourselves,butforourchildren,grandchildren,andtheirchildrenandgrandchildren.

Tomakethisfutureareality,wewillleverageanincreasinglydiversesuiteofenergysources,empowerconsumerswithrealchoicesandvalue,andstreamlineusagebydevelopingandimplementingcutting-edgeefficiency andconvenientdemand-responseinitiatives.


Leading by example, our carbon emission goalsAtNRG,weseektoprovideaffordable,safe,cleanandreliableenergyproducedinawaythatdoesnotlimitthepossibilitiesoftomorrow.Weseeclimatechangeasoneofthebiggestthreatstothefuture,andasthesecondlargestelectricitygeneratorintheUnitedStates,wehave auniqueopportunitytoleadbyexample.

NRG’sfocusistodecoupleourgrowthfromemissions,whilemaintainingthereliabilityandfueldiversitythatoureconomyandconsumersdependon.Ourroleincombattingclimatechangeistwofold:reduceemissionsofourexistingfleetanddevelopanew,low-carbon energysystem.

Businessasusualinourindustryisnotalong-termoption,andweplantodoourparttoreduceourcarbonemissionswhilefacilitatingglobalprogresstowardacleanenergyfuture.InNovember2014,wesetindustry-leading carbonreductiontargetsbyannouncingagoaltocut CO2emissions50%by2030and90%by2050whilecontinuingtosignificantlygrowourbusiness.Thisgoalisthefirsttimeanypowerproducerhasputastakeinthegroundwithconcretedatestotransitiontoalow-carboneconomy,consistentwithwhatclimatologistssayisnecessarytolimitthemostdangerousconsequences ofclimatechange.

Weintendtotakethefollowingactionstoachieveourgoalswhilegrowingourbusinessandcreatingvaluefor ourshareholders:

Convertcoal-firedpowerplantstonaturalgas

Graduallyretireagingcoalplants

Captureandsequestercarbonemissionsforfossil- firedpowerplants

Optimizeplantperformancewithequipmentandefficiencyupgrades

Developutilitydistributedrenewableenergysystems

Drivethecleanenergyfuturewithlike-mindedindividualsandcompanies

Ifwearesuccessful,theseactionswillachievetheavoidanceofapproximatelythreebilliontonsofCO2 emissionsby2050,theequivalentof:

Avoidingthedeforestationof18,000squaremilesofAmazonrainforest(roughlythecombinedlandmass ofVermontandNewHampshire)

AvoidingallofNewYorkCity’sCO2emissions,at2005levels,for65years

Avoidingthecarbonemissionsfromfuelandelectricityofsevenmillionhomeseveryyearbetweennow and2050

NRGhasalreadyrealizedsignificantreductionsinCO2 emissionsinrecentyears—40%since2005—whileconsistentlyachievingastrongperformanceresultinginnearly$3billioninadjustedEBITDA.Additionally,wearelayingthegroundworkfortheenergysystemofthefuturewithsignificantinvestmentsininnovations—suchasthoseatPetraNova,thelargestcarboncaptureprojectonanexistingplantintheU.S.—thatwillhelpcleanupourfleet.We’realsogrowingourconsumerandbusinessrenewables,anddevelopingthelargestnetworkofelectricvehicleDCfastchargingstationsfromCaliforniatoWashington,D.C.Thissetsthestageforlong-termbusinessgrowthandenvironmentalreinvention.

WA Parish Generating station in Texas, home of the groundbreaking Petra Nova carbon capture system.

NRG’s green headquartersIn2014,webrokegroundonournewheadquartersinPrinceton,NJ.Ournewhomeisdesignedtoincorporatethelatesttechnologicalinnovationsincleanenergyand,uponcompletion,willdemonstratethatclean,sustainable,cutting-edgedesignisachievabletoday.Expectedtoopenin2016,thethree-floor,130,000sq.ft.“ultra-green”headquartersisbeingbuiltaroundahostofrenewableandhigh-efficiencytechnologies.Thiswillmakeitoneoftheleadingcommercialsustainabilitysitesinthecountry.

Thebuildingwillfeature:

Solarinstallationstotaling600kWontheroof, parkinglotandtwocustompergolas.Thesolarsystemsreducethesolarheatsinkthatanuncoveredparkinglotandrooftopgenerateduringsun-intensedays.

14NRGEVgo®chargingstationswillbealongthe frontparkingspacestoencouragezeroemissionselectricvehicles,withroomtoexpandwhenneeded. ItwillalsohaveEV-to-grid“back-feed”capabilityas wellasFastChargers

TwoverticalWindTurbineModelswillmarktheentrancetotheparkinglotaswellasanNRGFreedomStationthatconsistsofaFastChargeralongwithaLevel2Charger

Gridpower,totheextentitisused,willbe 100%renewableenergythroughanNRGgreen retailsubsidiary

Off-gridcapabilitiesandsignificantadditionalenergyefficiencyprovidedthroughdual-fuelgeneratorsand a250kWcombinedheatandpowerplantwiththeheatrejectionbeingutilizedtooperateanabsorberfor‘Free’A/C.

Twoseparateunderground6,000galloncisternsforanon-sitestorageof12,000gallonsofrainwaterharvestinganestimated30,000gallonsperyearcapacitythatwillberecycledforallofthebuilding’splumbingneedsandreducecitywateruseby80%

High-efficiencyLEDlightingcombinedwithdaylightharvestingtoreduceindoorlightingneedsandenergyusebyroughlyone-third

Asasafetyfeature,theremainingportionoftheheatrejectionfluidcanbedivertedtoanadditionalplateheatexchangertobesentthroughtubingburiedintheconcreteofthefrontentrancewalkwaystopreventbuildupoficeorsnow

Anonsite500kWbatterystoragesystemtohelpwhenthePVsolarpowerhasacloudortwogoby,willreducetheneedtopullpowerfromthegridaswellashelpreducegriddependenceduringpeakhours

SolarThermalpanelsontherooftohelpprovideheatedwaterfortheshowersandbaseboardheating

GreenRooftohelppromoteacoolerroofinthesummerandawarmerbuildinginthewinterasitactsasanadditionallayerofinsulationbesidesthebenefitsofgrowing‘Green’

StateoftheartBuildingAutomationSystemthatwillcontrolallaspectsofthebuildingfrompowergenerationtopersonalcomforttoincludetemperatures,lighting,shading,etc.

Heightadjustableworkstationswillbeavailabletohelppromoteahealthierworkenvironmentandexperience.”

Theheadquarterswillbebuiltusingsustainablematerials,includingzincontheexteriorandrecycledwoodontheinterior.Insidethebuilding,a“livingwall”withavarietyofplantswillprovideairpurification,andacontrolledlightingsystemthatrespondstotheamountofnatural/ambientlightwillreduceenergyneeds.

Inadditiontothefinancialandenvironmentalbenefitsthatcomefromresourceefficiency,thesetechnologieswillprovideaneducationalandinspiringworkplaceformorethan500on-siteemployees.


Interior and exterior renderings of the new NRG headquarters in Princeton, NJ (also seen on the cover of this report).

GOGREENBydevelopingrenewablegenerationandtheunderlyinginfrastructuretosupportthetransitiontoalow-carboneconomy,we’vepropelledourcompanyintothethird-largestrenewableenergygeneratorintheU.S.

Solar2014wasabanneryearforNRGintermsofsolardevelopment,growth,newimplementationsandplans. Inadditionto33MWofsolarphotovoltaic(PV)generationcurrentlyunderconstructioninGuam,theCaribbean,LasVegasandScottsdale,AZ,oursolarportfolionowincludes13utility-scalesolarPVfacilitiesandnumerousdistributedgenerationprojectsforcustomersandcommunities.Withmorethan1,200grossMWofsolarpowerundermanagement,NRGRenewproducesenoughelectricity tosupportapproximately200,000averageU.S.homes.

HighlightsofNRGsolarmilestonesin2014include:

MGM Resorts International: It’sshowtimeintheentertainmentcapitaloftheworld.MGMResortsInternationalandNRGhavecompletedworkononeofthecountry’slargestrooftopsolarPVarraysattheMandalayBayResortConventionCenterinLasVegas.The6.4MWinstallationisanticipatedtogenerateenoughelectricitytopowertheequivalentof1,000homes.MGMandNRGarealsoworkingonanadditionaldevelopmentproject,tobecompletedin2015,thatwilladdanother2MWofcapacityatMandalayBay.

Community 1 Solar:Thisunique6MWcommunitysolarfacilitycoversnearly37acresoflandownedbySanDiegoStateUniversityandhasmorethan25,000modulesthatwillgenerateenoughemission-freeelectricitytopowerapproximately2,200homesforcustomersoftheImperialIrrigationDistrictwhochoosetooptintothiscommunitysolarproject.Additionally,itwillreduceemissionsandlowerthedemandontheSouthernCaliforniaelectricitygrid.

Starwood Hotels & Resorts:A568kWsolarinstallationatThePhoenicianinScottsdale,AZ,isonlythefirstofthreeprojectsNRGishelpingStarwoodwithtolowerelectricityconsumptionby30%acrossitsholdingsby2020.We’reintheplanningstagesofbuildinganaestheticallyintegrated1MWcleanpowersolutionatTheWestinSt.JohnResortintheU.S.VirginIslandsandanother450kWprojectatTheWestinMauiResort&SpainKaanapali,HI.Forallthreeprojects,NRGwillbuild,ownandoperatetheprojectwhilethehotelwillpurchasethecleanpowerproducedbythesolararraysoverthecourseofamulti-yearagreement.

2014 NRG Sustainability Report | 08NRGSustainabilityStrategy

NRGSustainabilityStrategy

Our sustainability strategy is built on several key principles and goals. Focusing on these essential parts of our strategy enables us to serve our customers, investors, key stakeholders, employees and the environment.


Higher-energy learningSustainabilityisasimportanttoArizonaStateUniversity(ASU)asitistous,whichmakesourpartnershipanaturalone.Our12.9MWportfolioisanintegralpartofoneoftheuniversity’smajorgoals:toreachanet-zerocarbonfootprintby2025.

AtASU’sTempecampus,morethan7,500photovoltaic(PV)solarpanelsmakeuptheNRGPowerParasol®parkingstructure.Generatingmorethan2MWofelectricity,thePowerParasolalsoprovidesshadefromthedesertsunfor800parkingspacesadjacenttoSunDevilStadiumandWellsFargoArena.

Actively under construction or development: Dandansolarproject(Inarajan,Guam):25.7MW

MandalayBayResortConventionCenter (PhaseII):2MW

SpanishTownEstateSolarfacility(St.Croix):4MW

NeckerIslandmicrogrid:approximately1MW

Phoenician:568kW

KaiserPermanenteportfolio:70MW

ColoradoSharedSolar:8.2MW

LenapeII:4MW

SanDiegoInternationalAirport:2.6MW

SteelBridgeSolar(Oregon):2.5MW

A real game changerFootballcaptivatesAmericansunlikeanyothersport,makingittheperfectstageforacompanychampioningthepushforacleanenergyfuture.NRGisusingitsrelationshipswithvariousprofessionalteamstospotlightsustainableconstructionandpowergeneration.

NRGnowhassolarinstallationsatsixprofootballvenues,includingFedExFieldinLandover,MD;MetLife StadiuminEastRutherford,NJ;Lincoln Financial Field inPhiladelphia,PA;NRG StadiuminHouston,TX;andPatriot Place at Gillette StadiuminFoxborough,MA.

OurnewestprojectisatLevi’s® StadiuminSantaClara,CA.

Levi’s®StadiumwascompletedinJuly2014andisthefirstvenueofitskindintheU.S.toachieveLEEDGoldcertification.The$1.2billionproject,convenientlynestledinSiliconValley,thecountry’smostinnovativecommunity,wasbuiltwithsustainabilityinmind.

NRG’sfoursprawlingsolarinstallationsandhalf-dozeneVgo®chargingstationsareperfectcomplementstoabuildingthatrepresentsthenextgenerationofstadiumdesign.Theyalsoshowcaseyetanothersuccessfulcollaborationwithaprofootballteam.

FansenterandexitthestadiumgroundsviathreeNRGEnergyBridges,whicharetoppedwith640PVpanelsandpepperedwithmulticoloredNRGplussigns.Atnight,dynamicLEDstriplightsilluminatethebridgeswithinfinitecolorcapabilities.TheNRGSolarTerrace,whichcoincidentallyincludes49setsofPVpanels,sitsatopthestadium’ssuitetoweronthe20,000sq.ft.GreenRoofnexttoagardenof16drought-tolerantplantspecies.

Alltold,theNRGsolararraysgenerate375kWatpeakcapacity,enoughtooffsettheenergyneedsofall10oftheteam’shomegames.Theinstallationsareasleekwaytoshowcaserenewableenergyinacommercialapplicationwhilealsoraisingawarenesswithresidentialconsumers.

One of three NRG Energy Bridges leading to Levi’s® Stadium in Santa Clara, CA.

Under the NRG Power Parasol® parking structure at Arizona State University’s Tempe campus.

NRGSustainabilityStrategy

WindNRG’scommitmenttoleveragingsmartenergygenerationtechnologyisnomoreclearlydemonstrated thanbyourownershipof33windfarmsin11states.

AfterfinalizingtheacquisitionofEdison Mission Energy inApril2014,thenumberofNRGwindfarmsincreasedeightfold,makingourcompanythenation’sfifth-largestwindgenerator.

Additionally,theacquisitionofAlta Windandits947MWofgenerationcapacitybringsthelargestoperatingwindfarminNorthAmericaintothefold.AltaWindpowerstensofthousandsofhomesacrossSouthernCaliforniawithaminimalcarbonfootprint—andwillfordecadestocome.

Lone Star state of mindNRGhasownershipinsevenwindfarmsinTexas:

South Trent:This101MWwindfarmlocatednearSweetwaterconsistsof44Siemens2.3MWwindturbinescapableofpoweringmorethan80,000homesatmaximumcapacity

Sherbino I Wind Farm:LocatedinPecosCounty,thisproject(anNRG/BPWindEnergypartnership)cangenerate150MWofpowerandconsistsof50Vestaswindturbinegenerators,eachcapableofgeneratingupto3MWofpower;thewindfarm,whichBPoperatesanddispatches,islocatedapproximately40mileseastofFortStocktononapproximately10,000acres

Elbow Creek:LocatedinHowardCountynearBigSpring,this122MWprojectconsistsof53Siemenswindturbinegenerators,eachabletogenerateupto2.3MWofpower

Langford Wind Farm:This150MWprojectislocated25milessouthofSanAngelo;ituses100GeneralElectric1.5MWwindturbinegeneratorsonapproximately35,000acresofland

Wildorado:LocatedinOldham,PotterandRandallcountiesnearthehistoricRoute66highway,this161MWprojectfeatures70Siemenswindturbinegenerators

Goat Mountain:This150MWprojectislocatedinCokeandSterlingcountiesnorthofSanAngelo;itincludes80Mitsubishi1MWand29Mitsubishi2.4MWwindturbines

Cedro Hill:LocatedeastofLaredoinWebbCounty,this150MWprojectfeatures100GE1.5MWwindturbines

The Alta Wind Energy Center, in Kern County, CA, has a combined installed capacity of 947 MW.


The Langford Wind Farm has a combined capacity of 150 MW, and sits on almost 35,000 acres of land.


MicrogridNRGunderstandstheneedforanenergyfuturewithanintelligent,distributedinfrastructurethatprovidesreliablepowerandconsumerchoice.Onewaytodeliverthisvisionisthroughthecreationofmicrogrids.

Microgridsarenetworksofdistributedenergyresources,suchassolar,wind,batteryandthermal,thatcaneitherbetiedtoorindependentoftheconventionalelectricitygrid.Microgridsallowahome,building,municipalityor anyothersmallgroupingorgeographicareatocreateanintegratedenergysystemforprovidingclean,reliable andhigh-qualitypower.

Agents of changeNRGisacceleratingthedeploymentoffuturemicrogridsfromanumberofbusinessunitswithinthecompany.

OurStationAinnovationteamisdesigningcost-effective,highlyrenewabledistributedenergysystemsforcustomerswithcriticalneeds.NeckerIsland,nestledintheBritishVirginIslands,isonesuchproject.

Imaginelivinginaregionwithoutanelectricgrid.Instead,yourelyonweeklyshipmentsofdieseltoprovidepowerthatcost25-30%ofyourhouseholdincomeandhamperyoureconomicopportunitiesandqualityoflife.

Uponprojectcompletionin2015,theNeckerIslandsolar-wind-batterymicrogridisexpectedtoslashdieselconsumptionbyatleast75%.Thiswillsave2.1milliongallonsofdieseland21,400metrictonsofCO2

overthenext20yearsofoperation,improvingtheisland’seconomicefficiencyandansweringsomeofitsinfrastructuralchallenges.

ThelessonslearnedonNeckerIslandarealreadyinformingourcommercialprojectsandstrategyinavarietyofdomesticmarkets.Thisyear,we’llbeginleveragingthisworkatotherislandlocalesabroadandstatesideinplaceslikeournewheadquartersinPrinceton,NJ,atStationAitself,atElbowCreekandinRutland,VT.

Necker Island, nestled in the British Virgin Islands.


WelcometoRutland,Vermont

The energy city of the futureNestledinnorthernVermont,Rutlandisatownofroughly16,000peoplethat’sclearlypavingthewayincommunitythoughtleadershipandaction,andisamodelforbuilding abrightertomorrow.It’sagatewayforcommunities whereresidents’homes,businesses,electricvehicles andlifeonthegowillbepoweredbyanarrayofsustainableenergysources.

TheRutlandprojectwillintegratevariousenergymanagementandrenewabletechnologies,suchassolararrays,windturbinesandbatterystoragesystems,withVermont’selectricalgridthatwillprovidebenefitstothedistributionsystem,thewholesalepowermarketandmostimportantlythecustomer.

NRG EVgo®

TheNRGEVgonetworkoffast-charging,convenientlylocatedstationsgiveselectricvehicle(EV)ownersnewfreedomandagreaterconfidenceintheirabilitytostaychargedontheroad.ServiceplansprovideEVownerswithat-homeorworkplacechargers,plususeofEVgoFreedomStation®chargingsites.Locatedalongmajortransportationcorridorsin14markets,NRGchargingstationshavepoweredalmost9millionelectricmiles.

ThroughtheEVgonetwork,whichcurrentlyincludesmorethan250DCfast-chargingstations,NRGprovidesaccesstopublicchargingsitesacrosstheUnitedStates.Thenetworkcontinuestoexpand,drivenbyagrowingnumberofcustomersanda250%increaseincardealerparticipation.

An NRG EVgo Freedom Station.


EXPANDRETAILOurcustomerswanttohaveapositiveeffectontheenvironment.Withplans,productsandservicestailored tofittheirlifestylesandhelpthemreachtheirgoals,ourretailelectricityprovidershaveproventhemselvestonearly3million(andcounting)recurringcustomers acrossthecountry.

NRGcontinuestoexpandourproductandserviceofferings,sellingrenewableslikerooftopsolar,homeservices,portablepowerandcustomizedenergysolutionstocustomersindiversemarkets.Throughourmulti-brandretailbusiness,we’veprovenourselvesabletoprovidecustomerswithabroadrangeofenergyservicesandproducts,includingsystempower,smartenergyandenergy-efficiencyservices,solarandwindproducts,electricvehicleservices,protectionproducts,distributedgenerationandspecialtyservices.

NRG Home Retail NRGHomeRetailoffersavarietyofelectricityplanstoresidentsinthenortheasternUnitedStates.Customershavetheoptionofchoosingtheenergy-efficientLearn&ConserveSMplanfeaturingtheNestLearningThermostat™,selectingasports-centricplanfeaturingteamcollectibles,ordesigningtheirownplanbychoosingthetermlength,theamountofrenewablepowertheywantandtherewardsthatworkbestforthem.InSeptember2013,NRGHomebeganofferingplansinPhiladelphiaandthesurroundingareas.Sincethen,thereachofNRGHomehasexpandedtoMaryland,Massachusetts,NewJersey,NewYorkandWashington,D.C.

Texas leadership NRGhome’sTexas-basedcompanieshavethelargestretailmarketshareintheElectricReliabilityCouncilofTexas(ERCOT),whichoperatestheelectricgridandderegulatedmarketfor75%ofthestate(basedonvolumeofsales).Reliant,anNRGcompany,hasbeenrecognizedmanytimesforitsexemplarycustomerserviceaswellasitsinnovativesmartenergyproductofferingsandhomeenergyservices.

Green Mountain Energy GreenMountainEnergy(GME),oneoftheNRGretailcompanieswithagrowingmulti-statepresence,continuestobeamongthenation’smosttrustednamesinrenewableenergy,workingtochangethewaypowerismadeandhelppeoplelivemoresustainablelifestyles.GMEservescustomersinIllinois,Maryland,NewJersey,NewYork,Pennsylvania,OregonandTexasandcontinuestoenternewcompetitivemarkets.In2014,thebusinessearnedhighesthonorsforcustomersatisfactionasreportedinJ.D. Power 2014 Retail Electric Provider Residential Customer Satisfaction StudySM.Outof apossible1,000points,GMEscoreda762,topsamongthe18retailelectricprovidersincludedinthestudy.


NRG Home Solar In2014,NRGHomeSolarbecameoneofthecountry’stopresidentialsolarprovidersandannouncedagoaltobringcumulativemegawattsinoperationto280MWin2015.NRGHomeSolarcurrentlyoperatesinArizona,California,Connecticut,Hawaii,Maryland,Massachusetts,NewJersey,NewYork,NorthCarolina,Texas,andVermont,withplanstoexpandintoadditionalstates.

Goal Zero InSeptember2014,NRGacquiredGoalZero®,aportablesolarpowerhousededicatedtoempoweringpeoplearoundtheworldwithproductsthatgivethemthefreedomtogoanywhere,regardlessofbatterylife.We’retakingsolarbeyondtheroofandputtingitinpeople’shandssotheycanpowertheirsmartphonesandlaptops,aswellascriticalsystemsincaseofemergency.Now,withNRG,consumerscangofartheranddomorewithsolarthantheyeverthoughtpossible.

Nest Labs partnership In2014,wecontinuedouralliancewithNestLabs,Inc.,offeringtheNestLearningThermostat™toReliant andGreenMountainEnergycustomersineightstates.TheNestThermostat,whichlearnsyourpreferencesandprogramsitselfwhileallowingyoutoadjustthetemperaturefromyoursmartphone,playedavitalroleinprovidingcustomersbetterwaystounderstandtheirenergyusageandsavemoney.

Fromrenewableenergytoelectricvehiclestorooftopsolartosmarthomes,NRGishelpingourcustomerslivemoresustainablelives.

NRG continues to expand our offerings to provide customers with a broad range of cleaner, smarter energy services and products.


EnhancinggenerationatNRGmeansrepoweringandrefuelingourfleetandreducingourcarbonfootprint—allwhilegrowingthenumberofpeopleweserve.Workhasbeguntoreduceemissionsfromourexistingpower-generatingfacilitiesviatheinstallationofmoreenvironmentalcontrolsandbyaddingnaturalgascapabilitytoexistingplants.

Natural gasNaturalgascontinuestoplayacriticalpartinthetransitiontoarenewable-basedenergysystemintheU.S.It’sareliable,lower-carbonfuelthat’sproduceddomesticallyandcanbepairedwithrenewablestoensureareliableandmuchmoresustainablegrid.

InCalifornia,whererenewablesourcesarepoisedtoaccountforone-thirdoftheelectricityproduced,NRGisleadingeffortstotransitionolder,lessefficientplantsintoflexible,fast-rampingnaturalgasfacilitiesthatcansupportgridreliabilityasmoreandmorerenewableoperationsandpreferredresourcessuchasstoragecomeonline.

FollowingsuccessfulrepoweringeffortsatMarshLanding,ElSegundoandWalnutCreek,NRGisnowturningtotheCarlsbadEnergyCenterforSanDiegoGas&ElectricandPuentePowerProjectforSouthernCaliforniaEdison.Thesetwofacilities,bothinthepermittingstage,areanticipatedtobecommerciallyoperationalin2017and2020,respectively.Ifapproved,bothwillrepurposeexistinginfrastructureandreplacemultipleolderunitsatourEncinaPowerStationandMandalayGeneratingStation.

InourEastRegion,whichconstitutes47percentofourtotalnetgeneration,NRGwillinvestuptoabilliondollarsby2016tomodernizeourconventionalgenerationfleetthroughrepoweringandrefueling.We’ve beguntheengineeringworkin2014forconvertingfiveunits—includingourJolietandDunkirkfacilities—fromcoaltonaturalgas,whichvirtuallyeliminatessulfurandmercuryfromtheiremissionsandsignificantlylowerscarbonemissions.

WealsobeganconstructiononanewnaturalgaspeakingplantnearHouston,TX.Thefacilitywillbelocatedona230-acresitethatwasoncepartoftheformerP.H.Robinsonpowerplantandwillusenaturalgastopowersixeconomical,fast-startGE7Ecombustionturbines.Theunitsrequirenowaterforcooling,makingthemwell-suitedtooperateinwater-constrainedTexas.Withtheirfast-startcapability,thepeakingunitshavethepotentialtohelpintegraterenewablepowerfromintermittentwindandsolargenerationintothegrid.

Theseprojectsmoveusclosertooursustainabilitygoalstoreduceemissionswhilecreatingbusinessvalueforourshareholders.

Total Generation Capacity by Fuel Type Renewable FacilitiesNorth America Portfolio

Total

53,478 MW1

Total

4,259MW

11% 6,008 MWOil

31% 16,734 MWCoal

48% 25,301 MWNatural Gas

2% 1,176 MWNuclear

8% 4,259 MWRenewables

Wind 3,012 MW

Utility Scale Solar1,150 MW

Distributed Solar47 MW

NRG Home Solar50 MW2

1-Before non-controlling interest

2-Aggregate production capacity of installed and

activated residential solar energy systems

3-Includes 2 TWh for NRG Yield’s thermal steam

and chilled water facilities

Wholesale Generation

Total

130 TWhTotal

63 TWh

Retail LoadNorth America Portfolio

2014 TWh Generated

7 TWh3

NRG Yield

7 TWhNRG Renew

5 TWhWest

60 TWhGulf Coast

51 TWhEast 8 TWh

Northeast Mass

33 TWhTexas Mass

18 TWhTexas C&I

4 TWhNortheast C&I

2014 TWh Sold

Customers NRG Home Retail

Total Customers

3,238,390

Total Customers

2,844,000

(Recurring 4)

NRG Home RetailNortheast - 809,000

NRG Home RetailTexas - 2,035,000

NRG Home Retail (Discrete5)299,000

NRG Home Retail (Recurring4)2,844,000

NRG BusinessRetail 82,000

NRG Home Solar 6

13,390

4-Recurring includes customers that subscribe to one or

more recurring services. Includes 540,000

customers acquired from Dominion.

5-Discrete includes one-time or other unit sales

6-Residential customers that have installed or contracted

to install a residential solar energy system

References

Total generation capacity by fuel type

Renewable facilities


Total

53,478 MW1

Total

4,259MW

11% 6,008 MWOil

31% 16,734 MWCoal


2% 1,176 MWNuclear


Wind 3,012 MW










Total

130 TWhTotal

63 TWh


2014 TWh Generated

7 TWh3

NRG Yield

7 TWhNRG Renew

5 TWhWest

60 TWhGulf Coast

51 TWhEast 8 TWh

Northeast Mass

33 TWhTexas Mass

18 TWhTexas C&I

4 TWhNortheast C&I

2014 TWh Sold


Total Customers

3,238,390

Total Customers

2,844,000

(Recurring 4)






NRG Home Solar 6

13,390







References



Total

53,478 MW1

Total

4,259MW

11% 6,008 MWOil

31% 16,734 MWCoal


2% 1,176 MWNuclear


Wind 3,012 MW










Total

130 TWhTotal

63 TWh


2014 TWh Generated

7 TWh3

NRG Yield

7 TWhNRG Renew

5 TWhWest

60 TWhGulf Coast

51 TWhEast 8 TWh

Northeast Mass

33 TWhTexas Mass

18 TWhTexas C&I

4 TWhNortheast C&I

2014 TWh Sold


Total Customers

3,238,390

Total Customers

2,844,000

(Recurring 4)






NRG Home Solar 6

13,390







References

Wholesale generation Retail load

ENHANCEGENERATION

CoalEmissionreductions,reliabilityandincreasedfueldiversityarecentraltoourvisionforasustainablefutureandarecriticaltoournationalsecurity.Overthecourseofthenextdecade,newpowergenerationintheUnitedStateswillrapidlyshifttowardrenewablesandnaturalgas.Coal,however,willremainpartofthemixasasignificantpartoftheelectricitygenerationportfolioaroundtheworld.NRGbelievestakingcarbonoutofexistingplantsisthebestwaytomaintainbase-loadfueldiversityoverthelongterm.

We’vealreadymadesignificantprogressincleaningupourexistingpower-generatingfacilities,andwewillfurtherreduceoverallemissionsandenhanceshareholdervalueby:

Takingcarbonoutofkeyexistingcoalplantspostcombustion

Continuingtoinstallenvironmentalcontrolsat our plants

Repoweringinefficientolderplantswithgas

Ofallofthese,post-combustioncarboncaptureismostcriticaltothecontinueduseofcoal.ThisisatechnologyNRGiscurrentlydeveloping.Webelievethatearlyinnovationandinvestmentcanbroadentheapplicabilityofcarboncapturetechnologies.

OneexampleofhowNRGissupportingadvancementsinthisareaisthroughourPetraNovacarboncapturetoenhancedoilrecoveryprojectatourWAParishcoalplantoutsideHouston.ThePetraNovaprojectbrokeground inJuly2014andisprojectedtoeffectivelysequester 1.6milliontonsperyearofCO2inanearbyoilfield,increasingthefield’soilproductionandprovidingrevenuetopayforthecarboncapturesystem,evenwithouta priceoncarbon.

AnotherexampleofhowNRGismodernizingolderplantsiswithbackendemissioncontrols(BECs),whicharepost-

combustionemissionreductiontechnologies—suchasscrubbersordesulfurizationequipment—thateliminatethemajorityofseveralcontaminants,includingSO2,NOx,mercuryandparticulatematter.

BECsarebeinginstalledatseveralofourlocations,includingour689MWcoal-firedWaukeganGeneratingStationinnortheasternIllinoisandourPowertonplantinPekin,IL.In2014,teamsatbothlocationssuccessfullyinstalledproprietarytrisodiumhydrogendicarbonatedihydrate,orTRONA,injectiontechnologyonsomeunits.TRONAisanaturallyoccurringmineralsimilartobakingsodathatisusedinaprocesstoremovethemajorityoftheSO2producedfromcoalcombustion.AtWaukegan,forexample,thetechnologyhelpsreduceitsSO2 emissionsbyupto90%.

Moreover,modernizationsacrossourIllinoisfleetwillreducethestate’scarbonemissionsby16milliontonsannuallyby2020—equivalenttotaking4millioncarsofftheroad.Thesedramaticreductionsshowtheimmediatevalueofrethinkingthewayweuseconventionalfuelsources.

Finally,attheNRGBigCajunIIfacilityinLouisiana,we’veinstalledselectivenon-catalyticreductiontechnologytocontrolnitrogenoxides,activatedcarboninjectiontoreducemercuryemissions,andTRONAtechnologytoremoveSO2.Thisisallinadditiontoconvertingoneoftheplant’sthreecoalunitstonaturalgas.

We’reproudofhowwe’veimprovedourcoalfleetsofarandareexcitedabouthowwearegoingtocontinuetoimproveitinthefuture.


TRONA tower at the Waukegan Generating Station, IL.


NRG Carbon 360Astechnologiescontinuetomigratetowardsustainabilityandcleanerenergy,sodowe.NRGisbalancingefficientenergyproductionwithcleanerenergyproduction.Throughourcarboncaptureandenhancedoilrecovery(EOR)processes,we’realigningenvironmentalandbusinessgoalssowedon’thavetocompromisehealthorsafetyforthesakeofenergygeneration.

Tomakeourcoalfleetapartofthelow-carbonfutureandremainattheforefrontofdrivingchangefromwithintheindustry,NRGhasformedateamfocusedonchangingcarbondioxide—akeyfactorinclimatechange—fromoneoftheenergyindustry’sgreatestliabilitiesintoasourceoffutureearningsgrowth.

NRGCarbon360™isweavingtherawpoweroftraditionalgenerationintothefabricofthesustainableenergyfuturebyimprovingtheenvironmentalperformanceofexistingfossil-firedplants.TheirfirstprojectwasPetraNova,a50/50jointventurebetweenNRGandJXNipponOil&GasExploration,whichbeganconstructioninJuly2014withthemissionofreducingthecarbonfootprintofthenation’slargestfossilfueledplant,theWAParishGeneratingStationsouthwestofHouston.AtthegroundbreakinginSeptemberof2014,industryandgovernment,includingtheDeputySecretaryofEnergyandtheLieutenantGovernorofTexas,cametogethertomarkthisinnovativeandforwardthinkingproject.

BypartneringwithHilcorpEnergyCompany,NRGandJXacquiredaworkinginterestinWestRanchoilfield.Together,thetwocompanieswillinjectcapturedCO2fromWAParishintotheoilfield,permanentlystoringitawayfromtheatmosphere,safelyincreasingdomesticcrudeoilproductionandprovidingrevenuetopayforthecarboncapturesystem.

BetweentheexpectedoilproductionfromEORandelectricitysalesfromacogenerationunitconstructedatWAParishaspartoftheproject,theendeavorisslatedtoproducerobustpeakearningsby2020.ThePetraNovaprojectisexpectedtobetheworld’slargestpost-combustioncarboncapturefacilityonanexistingcoalplant.


NRGdGenownsandoperatesagrowingvarietyofefficientandreliabledistributedenergyfacilities.Forexample,NRGEnergyCenters,whicharedistrictenergysystems,andcombinedheatandpower(CHP)plantsthatuseenergytypicallylost,tocreatesteam.Allhaveastrongtrackrecordofsuccess,yeteachisuniqueinitsconfigurationandservicesoffered.Someheat,somecool,somedoboth;othersprovidesteamforindustrialprocesses.Severalsystemsserveoneortwolargeusers,whileothersservehundredsofcustomersofalltypesandsizeswithinmajorU.S.cities.

Districtenergysystemsareenergy-efficient,highlyreliableandenvironmentallysoundmethodsofheatingandcoolingbuildings.Thesesystemsemployemissioncontrolsthathelpimproveairquality.Withnoneedtostorefuels,chemicalsorrefrigerantson-site.Infact,buildingslocatedondistrictenergysystemsaresafer fortheenvironment.Ourmissionistofreeevenmorecustomersfromtheburdensofenergyoperationssothattheycanfocusontheircorebusiness.

EnergycentersoperatedbyNRGEnergy,Inc.,inDover,Harrisburg,Minneapolis,Omaha,Phoenix,Pittsburgh,Princeton,SanDiego,SanFrancisco,Smyrna*,andTucsontogetherprovidedistrictheatingand/orcoolingtomorethan10millionsquarefeetofbuildingspace,includinghospitals,hotels,commercialofficebuildingsandsportsarenas.

NRGDistributedGenerationisoneofthelargestthird-partysteamprovidersintheU.S.Formorethan30years,thecompanyhascontinuedtogrow,provingtimeandagaintobeasafe,high-qualityandenvironmentallysoundserviceprovider.

Ourmissionistofreeevenmorecustomersfromtheburdensofenergyoperationssothattheycanfocusontheircorebusinesses.

Highly efficient energy generationCHP,alsoknownascogeneration,capturestheheatinwasteexhaustgasandturnsitintousefulenergybyconvertingitintosteam,hotwaterorevenchilledwaterthatcanthenbedistributedtousersbasedontheirneeds.

NRGhasanetworkofCHPfacilitiesoperatedbyprofessionalteamswhoareavailable24hoursaday.TheCHPprocessisinherentlymoreefficientandalmosthalfasfuel-intensiveastraditionalgenerationtechnologies,reducingenergycosts,minimizingthecustomer’scarbonfootprintandenablingreal-timesalesofexcesspowerbacktotheelectricgrid(inmanyjurisdictions).

ExamplesofsomeofourCHPplantscurrentlyinoperationinclude:

Arizona State University:WemaintainaCHPplantthatprovidesheating,coolingandelectricityto88buildingsonASU’sTempecampusandachilled-waterplantthatservesfivebuildingsontheASUPolytechniccampusinMesa.

Dover:OurDoverplantsellselectricitytothemid-Atlanticregion,whichfeedsintothecityofDover’stransmission/distributionsystem.ThenewlyrepoweredfacilityalsoprovidessteamtothelocalKraftFoodsplant,theProcter&GambleplantandthecityofDover.

FuelCell Energy:NRGteamedupwithFuelCellEnergy,Inc.,toofferefficient,low-emissionfuelcellpowerplantsthatcanprovidebase-loadpowerandheat24/7.FuelCellEnergyplantsgeneratereliablepoweron-siteforCHPapplicationswhileproducingalmostzeropollutionorparticulatematter.

University Medical Center of Princeton (UMCPP), Plainsboro, NJ:NRGdesignedamicrogridsolutionthatprovidesreliabilitywithmultiplelevelsofprotectionandislandingcapabilities.Thisstate-of-the-artCHPplantcanoperatecontinuously,evenintheeventofatotallocalgridoutage,andgeneratessufficientamountsofsteamforheatingandchilledwaterforairconditioningthehospitalyear-round.Thissolutioncutsenergybillsdramatically,reducesemissionsandincreasesreliability.

Theintegratedsystemsconsistofa4.6MWgasturbine-poweredCHPplusacogenerationplantthatwillserveasthehospital’sprimaryenergyresource,meeting100%ofitsheating,coolingandsterilizationneeds.Thisplantisbackedupby6-MWdiesel-firedgeneratorsinanN+1schemethatcanbesupplementedbyaninterconnectiontothelocalutility’spowergrid,iftheneedarises.

NRG’senergy-efficiencysolutionalsouseselectricityfroma1million-gallonchilledwaterthermal-energystoragetank—literallyathermal“battery”thatcanbechargedduringoff-peakhoursanddischargedduringpeak-demandperiods—plusa200kWsolararraywithpanelsdistributedovertheparkinglot.

Thissolutionenhancesthehospital’senergyreliabilityatanoverallcostthatissignificantlylessthanthecostsneededtoprovideandimplementtheseenergysourcesindividually.Itdramaticallyreducesthefacility’smonthlyelectricbillsandharmfulemissions.Anditprovidestheinstitutionwiththeflexibilitytoexportpowertothelocalgridwhenratesarehighorquicklydrawpowerfromthegridasneeded.

NRG Distributed Generation (dGen)

*Noownershipinterest.

NRGistotallycommittedtothisbroadscopeofsustainabilityandisalwaysapproachingnewwaystoencourageandpromoteamoresustainableenvironment.

Everysingleoneofournearly10,000employeesisvaluedandvaluable.Weallhavearoletoplayincreatingadifferentkindofenergycompany.Makingsureeachemployeehasasafeworkplaceandanempowering,diverseworkexperienceisanimportantelementofourcorporatephilosophyandoursustainabilityefforts.

Safety and wellnessSafetyisparamountatNRG—it’sthefirstofourcorevalues.Ourgoalistoattainarecordofzeroinjuriesinanygivenyearandachievetop-decileperformanceforOSHArecordableinjuries.Wecontinuouslyupdate,implementandenforcerobustpreventivesafetypracticesandprogramstoensureouremployeesremainsafe,healthyandhappyonthejob.

We’reproudofour2014safetyrecord;itmarkedoursecond-bestyear-endincidentrate(0.73)since2006.EveninthemidstofoursuccessfulEdisonMissionEnergyintegration,NRGheldtruetooursafetycommitmenttoremainbelowtheindustryaverageincidentrate.

Andthishardworkispayingoff:OSHA’sVoluntaryProtectionProgramStarstatusisthehighestlevelofrecognitionafacilitycanacquireforexemplaryworkplacehealthandsafety.TenNRGfleetfacilitieswererecognizedwiththishonorin2014:

BigCajunII

CedarBayou

CentralRepairShop

CabrilloI(Encina)

GreensBayou

AtNRG,webelieveaproductiveworkforceisahealthyworkforce.That’swhyNRGprovidesseveralwellnessbenefitstoaidinthepreventionandriskofseriousillnesses.Amongotherbenefits,full-timeemployeesareofferedhealth,dental,visionandlifeinsurance,mentalhealthassistance,anon-tobaccouserdiscount,(formoreinformationpleasevisitnrgpowerup.com/2013),adoptionassistance,parentalleaveandtuitionreimbursement.

NRGalsosponsorsandencouragesemployeestoparticipateinavarietyofruns,walksandbikestopromotehealthybehavior.Localeventswehavesponsoredinclude:MercerCountyAmericanHeartAssociationWalk,PrincetonHalfMarathon,Casa,HomeFrontandCarnegieCenter5Ks.

2014 NRG Sustainability Report | 19NRGSustainabilityMission

NRGSustainabilityFocusAreas

1.01

3.3

3.1

3.5

2.8

2.1

.73.77

.52

.77.81

NRG Industry Average

NRG IndustryRecordableIncidentRates

Dat

a N

ot Y

et A

vaila

ble

2009 2010 2011 2012 2013 2014

OrmondBeach

SanJacinto

Seward

THWharton

WAParish

Sustainabilityisaboutmorethanstewardshipoftheenvironment.Oureffortsspanavastrangeofnetworksandorganizationsandhelpimproveair,waterandecosystems,allwhilesupportingthecommunityandpromotingthehighestethicalbusinessstandards.

EMPLOYEES


Employee engagementNRGisrecognizedasaleadingemployerinourbusinesssector.Attractingandretainingthebesttalenttohelptransformtheenergyindustryisamongourtoppriorities.Weengagethecreativityandexpertiseofournearly10,000employeesandapplytheirconsiderableknowledgeandtalenttoempoweringworkandactivities.

Onehundredpercentofnon-bargainingemployeesreceiveannualperformancereviewswithsemiannualformalcheck-insontheirprogress.In2014,NRGhadanaverageheadcountof8,205witha10%turnoverrate(5%voluntary,4%involuntary,1%retiree).

Withinarapidlychangingindustry,we’realsocommittedtogivingouremployeesthetoolstheyneedtothriveduringthetransitiontoagreenenergyeconomy.Thisincludesprovidinghigh-leveltraining,innovationchallengesandemployeeengagementeffortsthatexplorenewtechniquesandinvestmentinsystemstoachievenewsuccess.OurInnovationCo-Labcompetition,forexample,givesemployeestheopportunitytocompeteinself-selectedteamstocomeupwithournext“bigidea.”

NRGemployeesalsoengageinactivitiesthatprotectandpreservetheenvironment—aligningourdailybusinessactionswithoursustainabilitygoalsandvalues—andparticipateinvolunteerwork,witheachregionimplementingprogramstoencourageemployeeempowermentinourcommunities.We’reespeciallyproudofthesuccessofandemployeeparticipationinourannualNRGGlobalGiving®DayheldeachMay.

InJune2014,NRGlauncheditsfirstengagement surveyinseveralyears.Surveyquestionsfocusedon thefollowingareas:

Safety

Teamwork

Roleclarity

Customerorientation

FeelingstowardNRG

Corporatesocialresponsibility

Wehada65%responserateandhavesinceworkedtounderstandandprioritizetheissues,sharetheresultswiththecompany,anddevelopandimplementplanstoaddressareasofopportunityandincreasebusinessperformance.Acrossallofourbusinessunitsandcorporatedepartmentswenowhave245actionplans,withapproximatelyaquarterofthemcompleted.

In2014,NRGhostedourfirstMicrogridDesignCompetition,invitingmorethan4,000plantoperationsemployeesnationwidetogetinontheaction.Thegoalofthecompetitionwastwofold:tokick-startinnovationatNRGandtohelpemployeesdevelopskillsfortheemergingcleanenergyeconomy.

Projectdesignideasincludedsolar,smallwind,energyefficiency,loadcontrol,thermalstorage,batterystorage,micro-hydro,fuelcellsanddistributedgeneratorsystems.Participantsweretrainedonmicrogridmodelingandpresentedonallaspectsoftheirdesigns,includingvalueproposition,projectobjectives,systemarchitecture,technicaldesignandprojectexecutionstrategy.Thewinningteamwillbuildoutitsdesignedmicrogridatitspowerplantsite.


futurenrgfuturenrgisourcompany’sintegratedpeoplestrategy. Wewhollyrecognizethatourdeterminedsuccessdependsonhavingtherightpeoplewiththerightskills attherighttimetosupportourfuturegrowth.

futurenrghasthreecomponents:

Employee development—Individualdevelopmentplansarepartofourannualperformancereviewprocessandhelpensurethatouremployeesarepreparedtofacenewandongoingchallengesasourcompanygrows.NRGUniversity,aprogramoffutureNRG,isouronlineandin-persontrainingcenterforemployees.

Workforce planning—Everyyear,wereview staffingrequirementsbasedoncurrentandfuturebusinessneedsbyplantandbyfunction,andupdatethemquarterly

Succession planning—Weconsistentlyreviewpositionscriticaltoourbusinessandidentifypotentialsuccessorsaswellasemployeeswhohavethepotentialtoassumerolesofincreasedresponsibility

Someofour2014employeeengagementprogramhighlightsinclude:

TherolloutofourFrontlineLeadershipprogram,whichfocusesonsoftskillsforplantoperationsleadership;initialdatashowsincreasesinleadershipresponsibilityandperformance,aswellasquantityandqualityofworkperformed

ThelaunchofTheLeader’sEdge,whichistheleadershipdevelopmentprogramforour‘midmanagement’leaders.ThisistosupplementourSeniorLeaderProgramwhichinalreadyinplace.In2015weplantorolloutthelastpieceofthisleadershipcurriculumwhichisthe‘LeadingforSuccess’programaimedatourfront-lineleaders.

Werecognizethevalueofdevelopingleaderswithinourcompanyandexpandingourstrongmanagementteam.Weofferahighlycompetitivesalaryandbenefitspackagetoprofessionalsinawiderangeofcareerareaswhowillhelpcontributetoourlong-termsuccess.

We’reproudofourpast,butwe’reevenmoreexcitedforwhatthefuturehasinstore.Thingsarelookingbright.

Workforce diversityNRGseesdiversityoftalents,gender,ethnicity,sexualorientation,culturalperspectivesandexperiencesas acriticalcomponentforhowweachieveourvisiontochangethewaypeoplethinkaboutanduseenergy.Asacompany,weaimtocreateaculturethatfostersinclusion,inspiresinnovation,encouragesrespectandpromotesunlimitedsuccessforeveryoneaswecreateasustainableenergyfuture.

Eachyear,weanalyzeourdiversity-focusedrecruitingeffortsandinternalactivitiesinordertodevelopamorediverseworkforce.Wealsopaycarefulattentiontoourterminationratesandhiringpractices,documentinganyimpactstodiversitygroupsandimplementingremediationplansasneeded.

Employee and recruitment resourcesNRGemployeeshaveaccesstoanumberofgroupsandprogramsthatprovidesupportfordiversity-relatedissues.

WomeninPoweroffersmentoringopportunities forwomeninleadershippositionstoencourage morefemaleparticipationinthemale-dominatedoperationsenvironment.

Diversity,Inc.,isaleadingbenchmarking/consultingpublication.Oursubscriptionallowsustoaccessreportsandbestpracticestousethroughout thecompany.

IvyQ,aconsortiumofIvyLeagueschools, sponsorsLGBTcareerdevelopmentand recruitingeventsannually.

WeparticipateintheHistoricallyBlackCollegesandUniversities(HCBU)CareerFairandconference eachyear.

WesubscribetotheProfessionalDiversityNetwork,anonlineplatformthathelpsemployersreachethnic,gender,disabledandveteran-basedaudiences.

Forveteransandothermilitaryrecruitment,we workwithworld-classnationalveteransearchfirmsandattendcareerfairsthattargetmilitarypersonnelwhoaretransitioningfromactivedutytothecivilianworkforce,particularlyinTexasandtheNortheast. Ourjobpostingsareautomaticallypromotedon stateworkforcecommissionandveteranoutplacementwebsites.

Corporate Demographics: EthnicityNRG’soverallethniccompositionreflectsthemakeupandavailabilityofqualifiedworkersinourtraditionalgeneratingplantlocations.

OurgeneratingplantsareincludedinourNRGBusinessstatistics,whichreflectdemographicsinourtraditionalgenerationindustry.Ourotherbusinessareas,particularlycorporateandNRGHome,aremorediverse.ThestatisticsinNRGHomearereflectiveofourvariedcustomerbase.NRGRenewisamuchsmaller,newerorganization,sowewillcontinuetoreviewitsdiversitymetricsasthatorganizationgrows.

75% 6%10%

Overall NRG Ethnicity White

Asian

African American

Hispanic/Latino

Two or More Races

8%

1%

NRG Renew

2%12%

6%

80%White/Caucasian

Asian

African American

Hispanic/Latino

Corporate & All Other6%

9%

20%

65%White/Caucasian

Asian

African American

Hispanic/Latino


NRG Business

2%

7%

6%

85%

White/Caucasian

Asian

African American

Hispanic/Latino

NRG Home

46%

9%24%

21%

White/Caucasian

Asian

African American

Hispanic/Latino

NRG Business NRG Home NRG Renew Corporate & All Other

75% 6%10%

Overall NRG Ethnicity White

Asian

African American

Hispanic/Latino

Two or More Races

8%

1%Overall NRG Ethnicity

NRG Business

85%

2%

7%

6%

White / Caucasian

Asian

African American/Black

Hispanic/Latino

NRG Home

46%

9%

24%

21%

White / Caucasian

Asian


Hispanic/Latino

NRG Business

85%

2%

7%

6%

White / Caucasian

Asian


Hispanic/Latino

NRG Home

46%

9%

24%

21%

White / Caucasian

Asian


Hispanic/Latino

NRG Business

85%

2%

7%

6%

White / Caucasian

Asian


Hispanic/Latino

NRG Home

46%

9%

24%

21%

White / Caucasian

Asian


Hispanic/Latino


Corporate Demographics: GenderOurgenderbalancealsoreflectsthepredominanceofmaleworkersinthetraditionalpowergenerationenvironment.Werecognizethisimbalanceandhavelaunchedour flagshipgenderengagementprogram,WomeninPower,topromotementoringand leadershipdevelopmentforwomeninourtraditionalgenerationoperations.

Again,NRGBusinessincludesourtraditionalgeneratingfacilities,whicharepredominantlymale.NRGHomeandCorporatehaveamoreequaldistribution.NRGRenewstatisticswillcontinuetobereviewedastheorganizationgrows.

Overall NRG Gender Male

Female

79%

21%

79%

Overall NRG Gender Male

Female

21%

Overall NRG Gender

NRG Renew

14%

86%

Male

Female

Male

Female

Corporate & Other

59%

41%

NRG Business

9%

91%

Male

Female

Male

Female

NRG Home

44%

56%

NRG Business NRG Home NRG Renew Corporate & All OtherNRG Business

91% 9%

Males

Females

Males

Females

NRG Home

56%44%


COMMUNITYOurcultureofgivingsupportsmanylocalcharities,communitiesandecosystems.Whetherit’sourdedicatedcorporateNRGGlobalGivingumbrellaprogramorindividualofficessupportingtheircommunitiesbasedonneed,we’reproudtobeacaringneighbor.

Global GivingNRGsupportslocalcommunitiesinmanyways,includingvolunteerefforts,charitablegivingandpartnershipswithorganizationsaroundtheworld.OurinvolvementpromotesacultureofgivingthatstrivestopositivelyaffecteachandeverycommunityandpersonthatisapartofourGlobalGivingstory.

Charitable givingRespectforourcommunitiesandforeachotherisacorevalueatNRG,andweempowerouremployeestocarryoutthesevaluesinalltheydo.NRGhasconsistentlydemonstratedahighlevelofcommitmenttocharitablegivingintermsofcashcontributions,resourcereductioneffortsandvolunteerism.

In2014,NRGcorporatedonated$40,000ingrants fordisasterrelief.Thisincludedreachingouttoassist

low-incomerenterswhowerelefthomelessfollowinga600-acrewildfireinCarlsbad,CA.NRGprovidedagranttohelpthemgetbackontheirfeet.Eachregionofthecompanyalsohasitsownbudgettotaling$8.2millionforgrant-makingintheirlocalcommunities.

Inadditiontofacilitatingstaffvolunteertimeforcommunityprojects,NRGinitiativesalsoseektoconnectpeoplewiththeeventswesponsor,suchastheHoustonLivestockShowandRodeoandNFLfootballgames,inthemostenvironmentallyresponsiblewaypossible.Bygivingmasstransitridestoparticipants,we’rehelpingtotakethousandsofcarsofftheroad.

NRGisveryproudofouremployeeswhoserveasoutstandingleadersandambassadorsinthecommunitieswhereweliveandwork.Atourofficesandpowerplantsacrossthecountry,NRGemployeesdedicatetime,expertiseandfinancialsupporttohelpthoseinneed.Toencourageandreinforcethesecontributions,NRGsupportsavarietyofgivingprogramsyear-round:

NRG Matching Gifts:Wematcheachemployee’sdonationstoqualifyingorganizations,upto$1,400annually

NRG Dollars for Hours:Tosupplementemployeevolunteerismatqualifyingorganizations,wecontribute$2perhourofvolunteerservice,withaminimumof25hoursandupto50hoursannually;thisprogramismanagedthroughamobileapp

NRG Volunteer Days:Teamsofemployeesareencouragedtovolunteerduringworkhoursfornonprofitorganizationssupportedbythecompany

TEAM NRG:NRGprovidesa$2,000granttoanyqualifyingorganizationforwhichanemployeeteamofsixormoreparticipatesinavolunteeractivityoutsideoftheirnormalworkday

Wearedeeplycommittedtoimprovingthequalityof lifeinthecommunitiesweserve.NRGhasdonatedmillionsofdollarstononprofitorganizationsthataddressvitalcommunityneedsthroughtargetedandsustainableserviceprograms.Webelievethattobeatrueleader andindustryinnovator,wefirstmustbealeaderin ourcommunities.

IN

37STATES

BY

2,629EMPLOYEES

13,580VOLUNTEER HOURS

$429,000RAISED TO BENEFIT STEM

EDUCATIONAL PROGRAMS($100,000 GOING TO NRG FIRST TEAMS)

+D.C.


HomeFrontNRGhasteamedupwithHomeFront,anationallyrecognizedorganizationthathasfoughtandissucceedinginhelpingendthecycleofpovertyamongthehomelessinMercerCounty,NJ,forovertwodecades.NRGprovidedfundingtosupportarecyclingprogramofgentlyusedfurnitureandappliances.

TheskilledstaffatHomeFrontprovidesprogramsthatfocusoneducationandemployment,breakthecycleofpovertyandrestorehopeforthefuture.

Community and economic developmentNRGGlobalGivingidentifiesnonprofitorganizations andsupportscommunityprogramsandinitiativesconsistentwithourfourfocusareas:communityandeconomic development,education,environment andhuman welfare.

Green Mountain Energy Sun Club®

NRGjoinedwiththeGreenMountainEnergySunClubtodonatea280-panelsolarinstallationtotheHoustonFoodBank.Theinstallationnotonlyreducesenergycostsanddecreasesthecarbonfootprintofthelargestfoodbankinthecountry,butthroughthosecostsavings,providesanothertwomealsperhouror17,000mealsperyear.Throughcrowdfunding(GreenMountainEnergy,itscustomers,employeesandothersupporters),theSunClubbuildsandpromotessolarpowerwhilehelpingnonprofitorganizationswithasociallyresponsiblefocusreducetheirelectricitycosts.Sincebeingfoundedin2002,theSunClubhasprovidedmorethan900kWofsolarpowerthrough75uniqueprojectssupportingmorethan70nonprofitorganizations.

PinnacleHealthNRGprovideda$25,000granttothenonprofitPinnacleHealthHarrisburgHospitalinHarrisburg,PA,toestablishaclinicalcarecenterattheOrtenzioCancerCenter.Learningthat50percentofitshigh-riskcancerpatientshavelimitedornofamilysupport,theNRGgrantwillfundatrainingprogramforhospitalstafftoprovidethesupportandnurturingneededbythepatientsandfamiliesexperiencingthedifficultiesofterminalillness.Caregiversarepreparedtoimpartclinicalknowledge,healingtherapeuticsandhope.

GRID AlternativesThroughanNRGgranttosupporttheSolarAffordableHousingProgram,GRIDAlternativestrainedandledteamsofNRGemployeevolunteersastheyinstalledsolarpanelsonthehomesofsomelow-incomefamilies,manyofwhomwerestillrecoveringfromthedevastationofHurricaneSandy.Whileeliminatinggreenhousegasemissions,theseprojectsprovideresidentsthebenefitoflong-termelectricitysavings.

NRG employees volunteer for Interfaith Ministries for Greater Houston on Global Giving Day.

NRG employees team up with GRID Alternatives to install solar panels on a New Jersey home.

NRGSustainabilityMission

EducationWe’recreatingwaystohelpeducateyoungmindsandgivechildrenthetoolstheyneedtosucceed.

ScholarshipsNRGprovidesincreasededucationalopportunitiestostudentsincommunitiesacrossthenationthroughscholarships(upto$60,000each),mentoringprograms.Participatingstudentsarechildrenofemployeesfromourdivisionsandlocationsacrossthecountryandareselectedbyanindependentcommittee.

NEED workshopsNRGinvestsinfutureenergyleadersthroughitssponsorshipoftheNationalEnergyEducationDevelopment(NEED)ScienceofEnergyworkshopsforeducatorsatselectedenergyplants.NEEDstudentsandteachersareactivelyengagedindiscussingandstudyingnewenergytechnologies,andtheseinvaluableworkshopsprovidemind-openingenergycurriculathatengagestudentswhileencouraginghands-onlearning.

Young AudiencesNRGhaspartneredwithYoungAudiencesNewJersey andEasternPennsylvaniatosponsorNRGCreativelyGreenfestivalsinNewJersey,Pennsylvaniaandnownationallytoencourageschoolstopromotesustainability.Schoolscompetetohostthefestivals,whichincludehands-onenvironmentallearningworkstationsandaschool-widesustainabilityproject.Thefestivalsarewidelyattendedbystudentsandtheirfamilieswiththegoalofdrivingsustainabilityawarenessandeducationthroughcreativearts.

FIRSTNRGisproudtopartnerwithFIRST(ForInspirationandRecognitionofScienceandTechnology),anonprofitorganizationfoundedin1989byDeanKamen,toinspireyoungpeople’sinterestandparticipationinscienceandtechnology.ThroughanNRGmentorshipprogram,employeesacrossthecountryworkwithlocalstudentteamswhoarepreparingforFIRSTprograms.Theseprogramsencourageinterestinscience,technology,engineeringandmaththroughcompetitiveactivitiesthatmakelearningfun.NRGhasbeenamajorsponsoroftheFIRSTRoboticsCompetitionforthepasttwoyears.Inadditiontofosteringafutureworkforcethatcansupport ahighlytechnicalandrapidlychanginginfrastructure,FIRSTstudentsareeligibleformorethan$16millionincollegescholarshipsfrommorethan150colleges anduniversities.

Big Brothers Big SistersNRGemployeesvolunteertomentorhighschoolstudentsthroughaBigBrothersBigSistersmentoringprogram.Mentorsandstudentscommittomeettwiceamonthduringtheschoolyear.StudentsarebusedfromtheirschooltotheNRGheadquartersinPrinceton,NJ.NRGmentorssharetheirpersonalexperiencesandSTRIVEvalues.Asnackandafeaturedspeakerareusuallypartofthevisit.Speakersemphasizetheimportanceofsettinggoalsanddemonstratewhatthesekidsarecapableofiftheysetgoalsandworkhard.Lastyear,100%ofthestudentswhoparticipatedinthisprogramsaidtheyhavesetgoalsandnowhaveagreaterunderstandingofhowtoachievethem.

NRG employees partner with Junior Achievement USA to mentor students.



EnvironmentAtNRG,wehavearesponsibilitytotheenvironment andtothecommunitieswhereweliveandwork.Inadditiontospendingsignificantresourcesonemissionscontrolsandupgradestoimprovetheenvironmentalperformanceofourpowerplants,wearecommittedtobeingapositiveforceforconservationwithinourlocalcommunities.

Growing “Generation Green”NRGpartneredwiththeStudentConservationAssociationtosupportitssummerstudentinternprogram,whichisdesignedtofosterthenextgenerationofconservationists.StudentslearnedaboutcleanenergyjobsbyvisitingourArthurKillgeneratingstationinStatenIsland,NY,andouremployeesworkedalongsidestudentsatHouston’sHermannParktoremovenonnativeplants.

NRGhashelpedfundtheprogramandparticipatedinakickoffeventattheStamfordMuseumNatureCenterin

ConnecticuttoinstallhandrailsandmakeimprovementstoitsuniversallyaccessibleWheelsintheWoodsTrail.RepresentativesandclientsfromRichmondCommunityServices,alocalorganizationservingthosewithphysicaldisabilities,alsoattendedtheeventtounveilthenewlyimprovedtrail.

Galveston Bay projectsNRGisalong-standingcontributortoanumberofGalvestonBayeducationalprogramsandhabitatrestorationprojects.NRGprovidedagrantandvolunteersforthecleanupandrestorationeffortsneededafteraMarch2014collisionbetweentwoshipsresultedinoilspillingintothebay.NRGalsodonatesmarshvegetationfromitsEcoCenterfacilityinBaytown,TX,tothemarshrestorationprojectsundertakenbytheGalvestonBayFoundation(GBF)andotherlocalconservationpartners.In2014alone,NRGdonatedmorethan30,000plugsof

smoothcordgrassvaluedatmorethan$46,000toGBFprogramssuchasMarshManiaandGetHiptoHabitat.Thisallowstheprogramstoextendtheirbudgets,drawinmorefederalandstatefunding,andexpandtheirimpactonGalvestonBay.NRGalsoregularlyprovidescorporatevolunteersforGBF’scommunity-basedenvironmentaleducationandoutreacheventssuchasBayDayandBikeAroundtheBay.ForitsstrongcommitmenttoenvironmentalinitiativesaroundGalvestonBayandpartnershipswithlocalconservationentities,NRGanditsemployeeshavebeenrecognizedwithprestigiousnationalawardssuchastheWhiteHouseCoastalAmericaPartnershipAward,U.S.DepartmentoftheInteriorCooperativeConservationAwardandU.S.EnvironmentalProtectionAgencyGulfGuardianPartnershipAward.

Galveston Bay, TX.


RecyclingNRGstrivestobemindfuloftheeffectsofouractionsontheenvironment.Toreducetheamountofwasteenteringourlandfills,recyclingprogramsthatincludeelectronics,glassandplasticswereinitiatedbyourplantsandoffices.Recyclingelectronicswillreducetheneedforadditionalnaturalresourcesandwillsaveenergyintheproductionofnewappliances.Overallrecyclinginthefirstninemonthsatlimitedsitesreducedlandfillwastebynearly20tons.(Formoreinformationabouttheseprogramspleasesee‘WasteManagement’.)

Sustainable land managementNRGownsmorethan18,000acresofundevelopedland.Weworkwithlocalcommunitiestoleasethislandtofarmersandranchersatfavorablerentalrates.Inreturn,thesefarmersandranchersworktoregeneratenutrientsinthesoilandpreservethenaturalbeautyofthearea.Ourgoalistoworkwithneighborstomanageourlandsustainablywhilesupportingthelocaleconomiesandcommunitieswhereweoperate.ThesearrangementsarenotcoretoNRGbusinessbutarearesultoftheongoingconservancyandrelationshipswecultivatewithlocalstakeholders.InTexasalone,weprovidemorethan 12,000acresofgrazingrightstocattleranchers.InCarlsbad,CA,NRGallowsharvestingofoystersandsupportsahatcheryforSeaWorld.WhenNRGsoldan oldcoalplant,weconveyed220acresofriparianandwaterrightstothetownofSwansea,MA,foranominalprice,anditconvertedtheprivatelandintoaseriesofparkstobeenjoyedbythecommunity.OnplantlandintheEast,NRGallowsfarmerstogrowrotationalcropsadjacenttoourfacilities.It’sthiskindofengagementwithourneighborsandthecommunitythatmakesNRGadifferentkindofenergycompany.

Human welfareWe’reworkingtomakeapositiveimpactbysupportinggroupsandinitiativesthatprovidehelpforpeoplewithdisabilitiesandhumanitarianassistanceintimesofneed.

NRG in motionTeamNRGisanall-regiontravelingcyclingteamwhoseannualflagshipeventistheNationalMultipleSclerosisSociety’sBPMS150charityridefromHoustontoAustin.NRGcoverstravelcostsforourriders,whotrainthroughouttheyear,anddozensofNRGvolunteersassistalongtheirroutes.TeamNRGcyclistsalsoparticipateinregionaleventssuchastheLanceArmstrongFoundation’sLIVESTRONGChallengeinPhiladelphiaandAustin.Todate,theteamhasraisedmorethan$785,000fornationallyrecognizedcharitableorganizations.

Where Hope LivesNRGsupportstheWhereHopeLivesprogram,whichrescuesvictimsofhumantraffickingandprovidesthemshelterandassistanceintheirrecoverywhileworkingtopreventhumantraffickingthroughawareness,advocacyandtraining.

Ice Bucket ChallengeInSeptember2014,CEODavidCraneandCFOKirkAndrewstooktheIceBucketChallengeandencouragedNRGemployeestochoosewhichnationalcharitywouldreceivea$100,000donation.Offivepossibleorganizations,theAmericanCancerSocietywasvoted astherecipient.

Top: Team NRG cycling participated in the MS 150.

Bottom: NRG employees understand the importance of recycling programs.


Global outreachTheglobalcommunityisanincreasinglyinterconnectedneighborhood.Issuessuchasclimatechange,viraloutbreaks,oceanfishingandInternetaccessrequirethepeopleofthisplanettotalktoeachotherandworktogethertosolveproblemsthataffectusall.

NRGhasbeenactiveinourglobalphilanthropyoutreachformorethanadecade,raisingmillionsofdollarsindisasterreliefdonationstohelpthoseinneed.Assolaranddistributedgenerationtechnologydevelops,weseeopportunitiestohelpthedevelopingworld—notjustwithdonations,butwithexcitingandinnovativetechnologiesthatstimulateeconomicprosperitybysatisfyingtheneedforenergy

Workingwithindustrypartners,NGOsandlocalorganizations,wecancontinuetoreachbeyondourmarketboundariesandcreatepositiveoutcomesinourglobalcommunity.

HaitiIn2014,NRGreachedbeyondourmarketboundariestoassistwiththeneedsofourglobalcommunity.PartneringwiththeClintonFoundation,employeevolunteers,andcommunitymembers,wepassionatelyworktogethertobrightenthenationandrevealthebenefitsofsolarpowerinHaiti.

IMUA

social enterprise

zone

CLEAN WATER& SANITATION

SECURITY

JOB TRAINING

AGRI-BUSINESS

PLAYGROUNDS

Life skills education

Drinking fountains and latrines

VEGETABLE GARDEN

Tree planting

Solar for schoolsWorkinginwhatisknownastheworstslumintheWesternHemisphere,NRG,alongsidepartnersProdev,HappyHeartsandUrbanZen,hastakentheInstitutionMixteUnionDesApotres(IMUA)schoolfromaplacewherestudentswereeatingmudcookiestoathrivinginstitutionwithacaféthatservesdailyschoollunches,aschoolgardenthatisusednotonlyasaneducationtool,butaplacetogrowfreshnutritiousvegetables,aplaygroundmadeentirelyofsustainableandupcycledmaterials,andfacilitiesrunentirelyonsolarpower.ItisnotonlythebeaconofCitiSoleil,butamodelforwhatschoolsaroundtheworldcanbecome.

WiththeIMUAprojectandotherslikeit,NRGisnurturinglearningandsupportingentrepreneurialbusinessesinHaiti,whichwillhelpbuildavibrantandsustainablecommunity.

NRG employees continue to travel to Haiti to volunteer alongside community members to assist in the development of the country.


12 teachers

1 principal

1 assistant

2 gardeners

1 secretary

2 security

3 cooks

1 logistics

3 cleaners

IMUA by the numbers

Bechtel

Digicel

Happy Hearts

Lurie Foundation

NRG

Prodev

Urban Zen

100% passing rate on student state exam results

Founded in 2005

200 total

60% boys 40% girls

STUDENTS

DEVELOPMENT PARTNERSHIPS STAFF

SUCCESS

LUNCHES SUPPLIES TUITION

+ + + + +BOOKSELECTRICITY

SMALL RURAL HOUSE

transformed

SOLAR PANELS

MIXED UNION DES APORTES

school created

IMUA project

100% funded in 10 months

Bèl RèvAtNRG,weareconstantlylookingforwaystobothpowertheworldandempoweritspeople,especiallyinHaiti. Thisyear,togetherwithpartnersBlueMarbleDreams andHaiti155,NRGwillhelplaunchBèlRèv(“SweetDreams”inEnglish),auniqueicecreamstorethatwillinspireanddrivechange.

Withthebeliefthatentrepreneurshipcanhelpliftboththespiritandtheeconomyofacommunity,BèlRèvwillempowerlocalwomenrecoveringfromtraumaticcircumstanceswiththebusinesstrainingandemploymenttheyneedtosucceednowandinthefuture.

TheprojectalsopursuessoundsolutionsmorebroadlybybuildingasustainablefoodbusinessthatsourcesproductsfromHaitianfarmersandproducers,engagesareatradespeopleandoverallservestosupportthelocaleconomy.Onthewhole,BèlRèviscreatinganattractivesolutionthataspiringentrepreneurscanconsiderwhenwantingtorevitalizetheirowncommunities.

Thestorewillincludeasolarinstallationandproduceenoughpowertooffsettheentireicecreamoperation.TheBèlRèvshopisbeingdesignedinasustainableandcutting-edgemannerusingrepurposedshippingcontainersdonatedbyMalarkanddesignedbyMetalabStudioandMobileGrid.NRGisfundingcontainermodificationsthatincludethesolarandmicrogridinstallation.

Theon-sitemicrogridwillbemadeupof9kWofsolarpanels,10kWofbatteries,invertersanda10kWgenerator.Withthisinfrastructure,BèlRèvwillstill beabletofunctionintheabsenceofgridpower,therebypreventinganycostlydisruptionstoitsoperations andservice.


Public partnershipsOurpublicpartnershipprogramsrangeinvarietyfromnaturepreservationeffortstodeliveringmealstothoseinneed.NRGmakesgreateffortstoincreasecommunityinvolvementandpreserveoursurroundings.NRGprojectsandprogramsarespecifictotheregionandcommunitytheyserve.

East RegionAtseveralNewYorkplants,includingArthurKill,AstoriaandDunkirk,NRGhaspartneredwithanddonatedfundstoenvironmentalprojectssuchasrestoringpublicspacesonStatenIslandandconductingenvironmentalstudiesintheLongIslandSound.AlsoinNewYork,theOswegoplantparticipatesintheSoles4Soulsprogram,whichcollectsnewandslightlyusedshoesforvictimsofnaturaldisastersorpeoplewholiveinextremepoverty.TheDunkirkandHuntleyplantspartneredwiththeNiagaraFrontierSectionoftheAirandWasteManagementAssociationtosponsorEnvirun2014,a5KruninhonorofEarthDay.Proceedssupportlocalenvironmentalprogramsandeducation.

InMassachusetts,theCanalGeneratingPlantboughtbiodegradabletrashbagstobeusedoverthesummerof2014duringeventscelebratingthe375thanniversaryofthecityofSandwich.

NRGisaleadsponsor($10,000level)oftheannualSourcetoSeacleanupproject,amassivetwo-dayeventthatspansfourstatesandcovers138milesofConnecticutRivershoreline.Aspartofthe2014event,ateamofNRGemployeesspentaworkdaycleaningupafewthousandfeetofshorelineonDartIslandStatePark.AlsoinConnecticut,DevonStationdonated$2,000toEarthplace’sHarborWatchwaterqualitymonitoringprogram,acommunity-basedenvironmentaleducationprogramthattrainsandengagesvolunteers,manyofthemhighschoolandcollegestudents,inthescienceofwaterqualityresearch.

InDelaware,NRGhelpedfinancetheDelmarvaOdysseyproject,acollaborationbetweentheDelawareMuseumofNaturalHistoryandenvironmentalscientistJohnWik.OurDoverplantcontributedfundingtotheDelawareAssociationofConservationDistrictstohelpwithsponsorshipoftheDelawareEnvirothon,aproblem-solvingnaturalresourceeducationprogramforhighschoolstudents.Theprogramprovidesstudentsanintegratedapproachtoexploringsixnaturalresourcecategories,anditteststheircreativity,analyticalthinkingandteam-buildingskillsinacompetitiveformat.Additionally,Delaware’sIndianRiverfacilitycontributedfourobsoletecondenserwaterboxesforanartificialreefprojectledbytheOceanCityReefFoundation.

InPennsylvania,NRGEnergyCenterPittsburghsupportstheNorthsideLeadershipConference’sAlleghenyCommonsRestorationProject,whichworkstopreserveandprotecttreesnativetotheCommons.Andsince2010,NRGhasprovidedsignificantoperationalfundingtotheEnvironmentalLearningCenterinArmstrongCounty,PA.Thiscenterisakeycomponentintheenvironmentaleducationofahostofgroupsinthesurroundingarea.

NRGhasalsobeenasponsoroftheSpaceCoastBirding&WildlifeFestivalinFloridasince2002.Thiseventoffersawidevarietyofopportunitiesforlocalresidentsandout-of-statevisitorstoparticipateinoutdoorenvironmentalactivities.


Gulf Coast RegionLouisiana’sBigCajunIIplantteamedupwithwithlocalgovernmentofficesandgroupstodevelopcommunitygardensonsmallareasofpublicpropertyforindividualstogrowtheirownvegetables.Individualsplant,maintainandharvesttheirgarden,andNRGevenbuiltanon-sitegreenhousetogrowplantsduringthewinter.

WealsoworkwiththeOceanTrust,theU.S.FishandWildlifeServiceandahostoflocalstakeholderstorestoretidalflowandnativevegetationtotheBahiaGrandetidalbasinnearBrownsville,TX.The6,500-acresiteisnowpartoftheLagunaAtascosaNationalWildlifeRefuge.NRGalsoprovidesnativevegetationforreplantingeffortsandfundingfortheconstructionofcriticalconnectionchannelsthroughoutthesystem.

Additionally,we’vepartneredwiththeGulfCoastBirdObservatoryinahostofhabitatrestoration,preservationandeducationprojectsfor10years.TheGulfCoastBirdObservatoryistheprimaryorganizeroftheGreatTexasBirdingClassic,thenation’smostcomprehensivebirdwatchingcontest.NRGhasbeenabletodirectmorethan$140,000tohabitatconservationprojectsalongtheTexascoastthroughthecontest.

Andtotopitoff,NRGemployeeshelpedtheHoustonZooretrofit13electricgolfcartstorunsolelyonsolarpowerbyreplacingtheexistingroofswithsolarpanels.

West Region NRGhasjoinedwithDucksUnlimitedonavarietyofinnovativehabitatrestorationandwaterqualityimprovementprojectsacrosstheU.S.formorethan10years.AkeyelementinthiscollaborationhasbeentherestorationofcriticalwaterfowlhabitatontheDelevanNationalWildlifeRefugeinCalifornia’sSacramentoValley.

Additionally,NRGhasprovidedfundingsupporttoSeaLab,adivisionoftheLAConservationCorpsthatoffersat-riskyouthopportunitiestosucceed.SeaLabfocusesonenvironmentalandserviceprojectsthatbenefitthecommunity.

NRGsupportstheChannelIslandsMarineResourceInstitute(CIMRI)ontheSouthernCaliforniacoastinanefforttosavestrandedmarinemammals.CIMRIrecentlyestablishedamarinemammalrehabilitationcenterinGaviota,justnorthofSantaBarbara.NRGprovidedfundingtothegrouptohelpitmaintainsustainablefoodsuppliestoallanimalsbeinghousedatthefacility.OurlatesteffortistoproducenativedunevegetationforrestorationactivitiesattheOrmondBeachGeneratingStation.DuringEarthDay2014,NRGvolunteershelpedkidsandparentsplantmorethan1,500sunflowers,tomatoes,onionsandjalapenosinbiodegradablepots.

ThecompanyalsoispartneringwiththeNatureConservancyinalong-termefforttoprotectandrestoretheSantaClaraRiverWatershed,whichfeaturesSouthernCalifornia’slastlarge,relativelyfree-flowingriverandishometodozensofthreatenedorendangeredspecies.

Australia

NRGwasasponsorofthe2014EcoFestinthehomeofourGladstoneplant.Theeventhighlightslocalenvironmentalinitiatives,andthethemewas“CleanandHealthyWaterways.”Weprovidedandstaffedaninteractivestallthatenabledchildrentointeractwithalandscapeandseetheeffectsofpollutionandrunoffonlocalriversystems.

2014 EcoFest event, held in Gladstone, Australia.


Today,consumersandbusinessesaredrivingthetrendtowardsustainabilitythroughtheirdemandformoreinnovativeenergychoices.NRGistakingtheleadbyopeningnewavenuesforpeopletoimprovetheirlives withcleanenergyinwaystheydidn’tknowwerepossible.

Tobecometheenvironmentalleaderinourindustry, we’veadoptedatwo-prongedapproach:

Leadthecleanenergyrevolution

Minimizetheimpactfromconventionalgenerationbyrepoweringourgenerationfleetwithcleanertechnologiesandoperatingourexistingplantsatorabovestandardssetbyenvironmentalregulations

Everyday,NRGisdeliveringonourpromisetoprovideenergysustainablybyinstallinginnovativerooftopsolarsolutionsforhomesandbusinesses,buildingapubliclyavailableelectricvehiclecharginginfrastructure,repoweringourtraditionalgenerationfleettomakeitmoreefficient,andcreatingnewsmartenergyproductsandservicesthatgivecustomersthepowertomanagetheirenergyuseoruseonlycleanenergy.

NRG Environmental Policy StatementAtNRG,wearecommittedtocreatingvalueforourownersbymanagingourbusinessinanenvironmentallyresponsiblemannerthatfocusesoncontinualimprovement.Tosucceedinourmission,westriveto:

Meetorexceedapplicableenvironmentallawsandinstillenvironmentalresponsibilityinouremployees

Reduceourenvironmentalimpacts(includingclimate)byintegratingenvironmentalconsiderationsintobusinessoperationsandstrategy,operatingmoreefficientlyandusingcleaner,cost-effectivetechnologies

Promotestewardshipandconservebiodiversityatourfacilitiesandinourcommunities

Seekconstructiveengagementinthelegislativeandregulatoryprocess,aswellaswithenvironmentalstakeholders,throughhonest,respectfulandresponsibledialogue

Measuretheeffectivenessofourenvironmentalprogrambytrackingenvironmentalperformance andcommunicatingourperformanceinternally andexternally

ENVIRONMENTAL


Note: In2013NRGreportedEKPIsandNOVswithanadjusted2011base-linebasedonthe2012GenOnmerger.Thisyear,ratherthanadjustingthebaseline,thereisashadedbarthatdemonstratestheenvironmentaleventsfromtheacquisitionofEdisonMissionEnergy(EME)sites.2014wasthefirstyeartheformerEMEplantswereincludedintheNRGEKPIprogram.Thepercentreductionsshowninthischart(17%in2012,forexample)arebasedontheoriginalbaselinewithouttakingintoaccount2011EMEevents.

Environmental EKPIs %ofbaseline(lowerisbetter)

2011 2012 2013 2014

83%63%

50%

3%

5%

4%

1%

Environmental Events from Newly Acquired Assets Prior to NRG Operations

Environmental KPI Events

ManagementOurenvironmentalmanagementprogramprovidesthefoundationforustotakeNRGbeyondjustcompliancewithgovernmentenvironmentalstandards.

Ouroperationsarepreciselymeasuredeachmonththroughourenvironmentalkeyperformanceindicator(EKPI),whichmeasuresanumberofleadingandlaggingparameterssuchasnoticesofviolation(NOVs),reportablespillsandcompliancewithlaws.

In2014,NRGcontinuedourtrendofimprovedenvironmentalperformance.Ourgoalfortheyear wastohaveallofourplantsmeettheirplant-specifictargets,andweachievedanimpressive95%result.

AtNRG,site-specificEKPIperformanceistieddirectlytothecompensationofallemployeesatagivenlocation,fosteringacollectiveaccountabilityandenvironmentalcommitmentwithintheworkforce.Beforeaplantcanreceivecreditforitsperformance,itmustpassthrough

theenvironmental“gate,”whichrequirescompletionofoneormoreproactiveinitiativestominimizetheenvironmentalfootprintofthesite.

Inaddition,aportionofeachemployee’scompensation istiedtothecombinedenvironmentalperformance ofallNRGfacilities;thisincentivizesalllocationsto worktogethertocollectivelyminimizeourimpacton theenvironment.

TheNRGEnvironmentalPolicy&ProceduresManualdirectsallNRGfacilitiestomaintainenvironmentalcomplianceinallactivitiesandprocesses.Eachmajorfacilityisauditedannuallybyanindependentthirdparty,andwerequirepromptcompletionofbothcorrectiveandpreventiveactionsforanynegativefindingsorobservations.

A summary of NRG’s 2014 NOVs and spills includes the following: 21NOVsreceivedduring2014;15includednopenaltyandsixincludedfinestotaling$32,891(sevenofthese21NOVsdatebacktoissuesallegedtohaveoccurredduring2013orearlier)

Inaddition,NRGagreedtopayafineof$123,270relatedtooneNOVissuedin2013

Nosignificantspills,fourreportableoilspillstotalinglessthan10gallonsandnoreportablechemicalspills

Ninereportedminorunauthorizeddischargesofwaterfromvarioussystems,includingsmallamountsofash,coaldust,sludgeorsewage;thesearenotcategorizedassignificantspills

econrgeconrg®isourflagshipprogramdesignedtomakeourexistingfleetcleanerandhelpensurethatfuturepowergenerationissmarter,greenerandmoreaffordable.Througheconrg,NRGpromotesecologicalstewardshipamongouremployeeswithinitiativesaimedatimprovingenvironmentalawarenessandeducation.

In2014,NRGemployeesparticipatedin205voluntaryeconrgprojectsandNRGfacilitiesdonated$125,817tobenefittheenvironment.Theseprojectsandinitiativesfocusedonthefollowingareas:

Biodiversity:41projectsincludedospreyandperegrinefalconnestboxconstruction,stockingnativefishinlocalrivers,streambankstabilization,wildlifefoodplots,migratorybirdandreptilesurveys,invasivespeciesremovalandconstructionofporcupinecribsforfishhabitat

Water use:31projectsincludedeffluentqualityimprovement,installationoflow-flowwaterappliances,recyclingwastewater,rainwatercollectionforprocessuseandemployeeeducationonconsumptivewateruse

Climate change:35projectswereaimedatreducingtheconsumptionofnaturalresourcesandincludedrecyclingelectronicwaste,installingsolarlighting,goingpaperless,usingrefillablewaterbottles,installingEVgochargingstationsandpurchasingelectricvehicles

Community:65projectsincludedbeachcleanups,treeplanting,sciencefairs,in-kindtechnicalsupport,fundraisersforcollegescholarshipsanddonationstononprofitenvironmentalorganizations

Systems eco-efficiencyInanefforttofurtherchallengeourselvestoachievegreaterenvironmentalefficienciesinouroperations,NRGhaslaunchedatargetedeco-efficiencyprogramforourgenerationassets.Eco-efficiencyreferstotheidentificationofinnovativecost-reductionopportunitiesthroughasustainabilitylensbyreducingconsumption,increasingusageefficiency,anddiscoveringincentives andrebates.

Eachofourplantmanagersisresponsiblefordevelopingandimplementingaplantoenhanceeco-efficiency inouroperations.Plantmanagersreporttooperationalleadershiponaquarterlybasistoensuretheyare makingprogressandsharingbestpracticesacrossthefleet.Afewexamplesofthebenefitsthisprogramhasuncoveredinclude:

Energy:AttheEnergyCenterSanFrancisco,theexhaustductsfromtwoboilerswereinsulatedtoreduceheatloss.Theductextendsfromtheboileroutlettoaheatexchangerthatrecoversmostofthewasteheatandreturnsittotheprocess.Theprojectyieldsanestimatedenergysavingsof88,967thermsperyear,savingNRGapproximately$87,000annually.

Water:TheDickersonplantreusestreatedwastewaterinitsflue-gasdesulfurizationsystem,reducingwateruseby162,425,000gallonsayear—enoughtofill246Olympic-sizeswimmingpools.

Recycling:ThePittsburgGeneratingStationinCaliforniacontinuesitsbest-in-classrecyclingprogramthatreducedourlandfillamount44%injustoneyearandtransformedthefacility’swastefromacosttoanewrevenuestream.Thisprogramiscurrentlybeingreplicatedatotherplantsacrossthefleet.

EmissionsNRGcontinuestomonitorourenvironmentalimpactaswepursueasustainableenergyfuture.ThegraphbelowillustratesNRG’semissionsofCO2for2012,2013and2014.Theincreaseinemissionsfrom2013to2014isprimarilyduetotheacquisitionofsubstantiallyalloftheassetsofEdisonMissionEnergy.NRGanticipatesreducingCO2emissionsasweaddrenewablesourcessuchaswindandsolar,modernizeourfleetthroughrepowering,improvegenerationefficiencies,andexploremethodstocaptureCO2.By2030,weseektoreduceourCO2 emissionsby50%,using2014asabaseline.TheobjectiveistoreduceCO2emissionsby90%by2050.Aswegrowourgenerationportfolio,ourgenerationefficiencyinitiatives,includingtheconversionfromcoaltonaturalgas,mustkeeppace.Atthesametime,we’reshrinkingourenvironmentalfootprintbyconcentratingonareaswherewehavedirectcontroloverouremissions—fromlarge-scalerepoweringprojectstorenewableenergyandinnovativecarboncapturetechniques.


NRG 2014

MWhGeneration

139.23

136

16

9

30

3

1

Total

US Total

RGGI

CA

EME*

Australia

Turkey

CO2emetric tons

105.01

102

15

2

25

2

1

GHG Intensity metricton of CO2e/MWh

0.75

0.75

0.90

0.23

0.83

0.94

0.49

(In millions)

*EME values are for January - December 2014

0

20

40

60

80

100

120

140

160

2012 2013 2014

73 75

9498 103

136

AB32

EME

RGGI

Other

Emissions (million metric tons CO2e)

U.S. Generation (million MWh)

U.S. Greenhouse Gas Emissions and Generation*

*PleaserefertotheReportingsection forourthird-partyassurancestatement.

Eco-efficiency Savings

Kilowatt-hours 156,821,112.80

PoundsofCO2 193,258,498.36

PoundsofNOX 175,435.78

PoundsofSO2 414,525.25

Gallonsofwater 25,968,820.29

Gallonsofacqeousammonia 160,676.24


WaterWateravailabilityandqualityareimportanttoNRG,thecommunitiesinwhichweoperateandtheenvironment.NRGhasdesignedourapproachtowatermanagementwiththeunderstandingthatwaterissues(usage,scarcity,etc.)aregenerallylocalinnature.Insomeregions,droughtconditionscanthreatenelectricityproduction.Inothers,suchastheGreatLakesandOhioRiverBasin,freshwaterishighlyavailable.NRGisreducingthewaterrequiredtoproduceelectricityinthefollowingways:

Increasedinvestmentandproductionfromrenewablesourcessuchassolarandwind

Useofnon-potablewatersuchasbrackishoceanwaterorgreywaterfromsewagetreatmentplans

Investinginnewcoolingtechnologiesthatrequire lesswater

Reuseofwaterincoolingandboilersystemsinourgeneratingstations

Forexample,ourElSegundoplant’sunits1and2formerlyreliedonoceanwaterforcooling.NRGdemolishedtheseunitsin2013andconstructedtwonewcombined-cyclegeneratorswithdry-aircoolingtechnology,thuseliminatingtheneedforcondenser-coolingwater.Inaddition,thewasteheatisrecoveredandusedtogenerateevenmoreenergy.

PerformanceNRGimplementedprojectsin2014thatincreasedwaterreusedorrecycledby21milliongallons.We’vereducedourwaterusageby133milliongallonsoverthepast threeyearsthroughwater-savingsprogramsateachfacility.AllNRGoperatingfacilitieshaveawrittenwatermanagementplan,aswellasestablishedwaterbestmanagementpractices.

Our2014waterdataincludeswaterwithdrawalanddischargeforallNRGgeneratingstationsandoffices(seecharts.Ourplantsproduced135millionTWhofelectricityandwithdrewabout13billioncubicmetersofwater.Morethan98%ofthewaterisdischargedtothesamebodyofwaterfromwhichitwasdrawn.

InaccordancewiththefederalCleanWaterAct,NRGobtainsallrequiredpermitsandreportsresultsofwaterdischargestostateagenciesmonthly.NRGhas78wastewaterdischargepermitsandranmorethan 100,000testsofwhichfiveexceedanceswerefound.Exceedanceinformationisenteredinourincidentmanagementsystem,whichnotifiesNRGoperationsmanagementsowecanidentifytherootcauseandimplementcorrectiveandpreventiveactions.

2014 NRG Water Withdraw by Source

2014 NRG Water Withdraw and Discharge

0

2000

4000

6000

8000

10000

12000

14000

Mill

ion

m3

98% Return for Reuse

Discharge

16

5034

7718

Withdrawal

16 WatertoothersMillm3

5214 TotalFreshWaterMillm3

7779 TotalNon-FreshWaterMillm3

75%

31%

29%

40%

Fresh Surface Water

Non-Fresh Surface Water

Non-Fresh Ocean75%

31%

29%

40%

Fresh Surface Water

Non-Fresh Surface Water

Non-Fresh Ocean


WasteWestrivetoreduce,reuseandrecycleanymaterialusedinourdailyoperations.Theseeffortsnotonlyhelppreservescarcenaturalresources,butalsoaffectourbottomlineandoperationalefficiency.

Waste managementNRGhasarecycling/wasteteamthatincludesarepresentativefromeachlocationwhoreviewswasteissuesspecifictotheirfacility.EachNRGregionhaswastesubject-matterexpertswhoworkwithstateandlocalgovernments,aswellasotherindustrialwastegenerators,toensurewastegenerationanddisposalconcernsareunderstoodandaddressed.

Effluents and wasteEffluentsandwasteareimportanttoNRGasstewardsoftheenvironment.NRGusestools,suchasstatewaterqualitystudiesanddesignations,theWorldBusinessCouncilforSustainableDevelopmentwatertoolandCDPAqueduct,toevaluatewatereffluentimpacts.In2014,NRGenhancedthecurrentwastediversionprogramrequiringNRGgeneratingfacilitiestoevaluatewastegeneratedandidentifyrecyclingopportunities.Facilitiesworkedwithbusinesspartnerstocreateawastereductionrecyclingplan.NRGiscommittedtoreportingwaste,recycling,andeffluentresultsannuallyforeverygeneratingfacility.Eachfacilityusesthewaste,recyclingandeffluentinformationtoensureeachcomponentismanagedproperly.NRGfacilitiestrackwasteandmaterialsrecycledintheNRGEnvironmentalManagementInformationSystem.In2014NRGhadanincreaseinmercuryemissionsprimarilyduetotheacquisitionofsubstantiallyalloftheassetsofEdisonMissionEnergy.However,theseemissionsareexpectedtodecreasein2015asaresultofplantretirings,fuelswitchingandinstallationofmercurycontrolsatcoalfiredpowerplants.

Waste reductionNRGiscommittedtoreducingwasteatourgeneratingstations.Eachgeneratingfacilityhasawastereductionplanandseeksopportunitiestoreducewasteandincreaserecycling,asopposedtolandfillingwaste.

NRGhaswasteandrecyclingdataforourfleetbeginningin2010.Thedataisbeingusedtoidentifywasteandrecyclingmanagementopportunitiesandbestpracticesacrossthefleet.NRGreviewsandtracksregulations thatwillaffectcoalcombustionresidualsandeffluents.Theseinclude:

EPAsteamelectriceffluentguidelinesandregulations

Coalcombustionbyproductsregulations

Coal Ash Reused (%) Mercury (U.S. Tons) E-Waste Recycled (U.S. Tons)

41% 42%

60%

55%57%

60%64%

2008 2009 2010 2011 2012 2013 2014

1.8

1.5 1.5

1.3

1.0

1.5

2008 2009 2010 2011 2012 2013 2014

300

90

6050 54

39

2009 2010 2011 2012 2013 2014

2.1


Goals and targetsIn2013,NRGreviewedtheamountofrecycledmaterialsatourfacilitiesandfoundanopportunitytoimprove.OurPittsburgplantinCaliforniarecycles90%ofitswasteandgeneratesrevenuefromrecyclingthatoffsetsmostofthedisposalcosts.NRGfacilitiesweretrainedonthePittsburgprogramin2014andimplementednewrecyclingpracticesattheirlocations.NRGsetagoaltorecycle15%ofthegeneralwastegeneratedin2014.Werecycled17%ofgeneralwastegenerated,exceedingexpectationsandpromptinga20%recyclinggoalin2015.

In2014,NRGownedandoperatedfacilitiesgenerated 7.2milliontonsofcoalcombustionresiduals,4.6milliontonsofwhichweredesignatedasbeneficialuseas definedbythestates.Wesetagoalof55%ofcoalcombustionresidualsforbeneficialuseandexceeded thatgoal,repurposing64%ofcoalcombustionresidualsforbeneficialuse.

ResponsibilitiesTheNRGrecyclinginitiativeisateameffort.Eachplanthasaprogrammanagerwhoworkswithothersfromthecompany.Theteamhelpstoidentifyprograms,implementprocesses,reviewdataandcommunicatetherecyclinginitiativeanditsprogress.Eachlocation’splantmanagerassignsafacilitychampion,whoisresponsiblefortrackingrecycling,leadingagreenteaminidentifyingrecyclingopportunities,andtrainingemployeesontherecyclingprogram.Thechampionwillreportprogresseachyear.

NRGstrategicsourcingsupportstheprogrambycreatingpartnershipswithrecyclersandwastemanagementcompanies,aswellasensuringthesuppliershavetheresourcestosupportthefacilitiesandprovideregularupdatesontherecyclingprogram.

TheNRGSustainabilityDepartmentandotherdivisionssupporttherecyclinginitiativebyprovidingthefinancialresourcestocollectandmanagethematerialsbeingrecycled.Theseresourcesincludestrategicallyplacedbinsatfacilitiestomakepropercollectionofrecyclablematerialseasier.

NRGmeetswithstakeholderstoaddressconcernswitheffluentsandwaste.Theeffluentandwasteissuesarelocalandvaryforoperatingregions.Stakeholderfeedbackisimportantandisusedtomeetpresentneedsandplanforthefuture.

Biodiversity and conservationAtNRG,werecognizethatoneofourmosttreasurednaturalresourcesisbiodiversity,sowedesignedourenvironmentalpolicytofostertheprotectionofthenaturalhabitatssurroundingourgenerationsites.Protectingandpromotingbiodiversityensuresthatlivingresourceswillremaininstablequantitiesinperpetuity.Theairwebreathe,leavesontreesandevenaspider’sweballserveimportantbiodiversityfunctions.It’sourobligationasacompanyandasemployeestoeffectivelyuseandprotectallnaturalresourcesinasustainableway.

Asastandardpractice,NRGroutinelygaugestheimportanceofbiodiversitythroughinteractionswithourpeersincommunitymeetings,environmentalpermitrenewalsandshareholdermeetings,aswellasconversationswithourretailcustomers.

TheNRGbiodiversityprogram,implementedin2011,includesaBiodiversityPolicyStatement,BiodiversityPolicyasasubsetofourEnvironmentalPolicyandProceduresManualandbiodiversityplansforallgeneratingsites.Allplansareupdatedannuallytoincorporatechangesandenhancementstositeconditions.

OureconrgstewardshipprogramembodiestheNRGmanagementapproachtobiodiversity.Throughthevoluntaryprogram,ouremployeesareencouraged toparticipateinendeavorsthatpromotebiodiversity. In2014,ourfacilitiesparticipatedin41biodiversityprojectstoenhanceorrestorehabitatorimprovebiodiversity.Theseprojectsincludedtreeplantings,invasivespeciesmanagement,habitatenhancements andwildlifemanagement.


Large-scale reforestationInadditiontopreservingvaluablewildlifehabitats,large-scalereforestationallowsMotherNaturetosequestercarbonfromtheatmosphere.TheseNRGprojects,whichoccuronavarietyofpublicandprivatelandsandareheldinconservationeasementsinperpetuity,areworkingtomakealastingdifferenceintheworld.

Powerton Station, IllinoisInagreementwiththeU.S.FishandWildlifeService,approximately88acres(66.5footballfields)ofnativeforestareaweresetasidefromanyfuturedisturbance forpotentialhabitatfortheendangeredIndianabat(Myotissodalis).

Oxbow Reforestation Project, LouisianaTheShreveportprojectfeaturesoneofthelargestreforestationeffortsonprivatelandinthesoutheasternU.S.andissupportedbytheU.S.FishandWildlifeService.ThishardwoodforestalongBayouPierrecontinuestothrivefollowingtheplantingofthousandsofseedlings,including16speciesofnativetrees.Thesiteincludes60acresofshallow-waterwetlandsandnearly2,000acresofbottomlandhardwoodforest.Migratorywaterfowl,shorebirds,raptors,deer,raccoonsandsmallgamenowliveandthrivewithintheOxbowsite.

Flight 93 Memorial, PennsylvaniaIn2012,NRGbeganapartnershipwiththeNationalParksFoundationandtheNationalParkServicetorestoremorethan200acresofnativetreesontheFlight93MemorialsitenearShanksville.Whilethisreforestationprojecthassimilarenvironmentalbenefitstoourotherplantingsites,ituniquelyaffectstheheartsofplantingvolunteers.Weareproudtobeapartnerintheefforttohealthenativehabitatofthisformercoalminesiteasournationcontinuestohealfromthelossofthebravesoulson Flight93onSept.11,2001.

Columbia Bottomlands, TexasInanotherinnovativepartnership,NRGworkedwiththeU.S.FishandWildlifeServiceandtheNationalFishandWildlifeFoundationin2008torestore1,200acresofbottomlandhardwoodforestinBrazoriaCounty,TX.Thegoalwastorestorethiscriticalbottomlandhardwoodareatoenhancethenaturalbiodiversityoftheareaandhelpmaximizetheecosystem-enhancingbenefitsthesebottomlandhardwoodareasprovide.

NRGSustainabilityMission

Wetland conservationNRGoperatestheCedarBayouEcocenteronGalvestonBayinTexastoincreasepublicawarenessoftheneedsoftheecosystem,offerwetlandeducationanddevelopsolutionsforcoastalissuesandrestoration.

TheEcocenterisalsoaresourceforuniquepartnershipswithcoastalrestorationorganizations,educatorswhosupportNoChildLeftInsideandgroupscreatingpublicawarenessofcoastalissues.TheEcocenterplantnurserygrowsamajorityofthewetlandplantsusedforestuarinerestorationinGalvestonBayandsitson14acresoflandconsistingof24earthenponds,sixabove-groundconstructedponds,agreenhouse,aclassroomand alaboratory.

InadditiontooperatingtheEcocenter,NRGdonateswetlandplantsforrestoration.Eachyear,theEcocenterdonatesroughly60,000wetlandplantsforuseinrestorationprojectstoabroadbaseoforganizations.Ourdonationsarecriticaltotherestorationdirectivesofthefollowingthird-partyconservationorganizations:

U.S.FishandWildlifeService

TexasGeneralLandOffice

TexasParks&WildlifeDepartment

NationalMarineFisheriesService

TheGalvestonBayFoundation

NaturalResourceConservationService

AudubonTexas

DucksUnlimited

TheStudentConservationAssociation

GalvestonBayEstuaryProgram

In2014,NRGdonated132,350plugsofsmoothcordgrassthatrestoredapproximately28acresofwetlands.Nosuccesscriteriaorindependentverificationisperformedforthesevoluntaryrestorationefforts sincetherestorationsarenonmitigatoryandthehabitatsaredynamic.

Wetlandeducationisanimportantcomponentoftheecocenter.ThroughapartnershipwiththeGalvestonBayFoundation’sGetHiptoHabitatprogram,11areaschoolsparticipateinahands-onsciencemodulethatincludeswetlandeducationplantharvestsandplantgrowthonschoolcampuses.Attheendoftheschoolyear,theplantsareusedincoastalrestoration.Additionally,theEcocenterisavailabletothepublicforenvironmentaleducationandhashostedschoolgroups,publicandprivateconservationorganizations,andpublicinterestgroups.

Energy and water conservationThroughoutourfacilitiesandcommunities,wedoourbesttoreduceoverallenergyandwaterusage.NRGhasimplementedseveralprogramstoconserveenergybyincreasingefficiencies,reusingwater,replacinglightbulbsandmore.

Reducing auxiliary loadSeveralNRGfacilitieshavepursuedextensiveefforts toimprovetheirefficiency,therebyreducingemissions ofgreenhousegases.AtourCedarBayouandPHRobinsonfacilities,welaunchedanextensiveenergysavingprogramin2007thatresultedinasignificantreductionofauxiliaryload.

Plant water reductionsCedarBayousavedsignificantamountsofwaterwhenitswitchedtotheuseofgreywaterin2010.OurSterlington,BayouCoveandBigCajunIplantsmodifiedtheirfaucetsandshowerheadswithlow-flowdevices,reducingwaterusebyapproximately50%.

CFL distributionOurDoverandMinneapolisenergycentersprovided1,500compactflorescentlightbulbs(CFLs)tolocallow-incomefamilies.IntheDoverarea,CFLsweredistributedbyCatholicCharitiestoeligiblehouseholdsthatapplyforenergyassistancebenefitsundertheDelawareEnergyAssistanceProgram.



Wildlife diversityWe’recommittedtohelpingprotectwildlifeatallofourfacilities.Inbothurbanandruralareas,wetakeconsciousmeasurestocarefortheanimalsthatmaybeaffectedbyourprojects.Operationsatourwindandsolarfacilitiesdoattimesnegativelyaffectwildlife(e.g.,collidingwithturbinebladesatwindsitesorbeingsingedatourconcentratedsolarsite).Wecontinuetolookforwaystofurtherreduceourimpactsonwildlife.Theseincludemonitoringforthepresenceofwildlifeandcurtailingoperations,removingfoodsourcessothatwedonotattractwildlife,andvariousdeterrents.Asageneralrule,NRGemploysthreesimplestepswhensignificantimpactstobiodiversitymayoccur:avoid,minimizeormitigate.

ThreeofourTexasplantsuse“sky-dancers,”afan-inflatednylontubetodetertwospeciesofvulturesfromroostingandnestingonstructureswheremechanicalequipment isoperating.

TheMandalayStationonthePacificCoastemploysaseasonalscouttoidentifysnowyploverandCalifornialeastternnestsneartheplant’sdischargetothePacificOcean.Ifanestisobserved,appropriateagenciesarenotifiedandthenestisprotected.

Desert wildlifeNRGpurchasedacombined20,000acresofdeserthabitatandplacedtheminconservationeasements inthesouthwestU.S.toprotectpopulationsofdeserttortoises,kitfoxes,giantkangaroorats,burrowingowlsandgoldeneagles.Theeasementsareadjacenttoor nearsolarinstallations.

OurIvanpahSolarElectricGeneratingSystemhasnecessitatedthetranslocationofdeserttortoises.Asapartoftheproject’sextensivedeserttortoiseprotectionprogram,NRGhashelpedestablishaheadstartprogramattheIvanpahprojectsite.Headstartprogramsareacriticalavenueforenhancingrepopulationofthedeserttortoise,afederallylistedthreatenedspecies.Intheirnaturalenvironment,fewerthan10%ofjuveniledeserttortoisessurvivebeyondfiveyearsofageduetopredationfromravens,kitfoxesandcoyotes,aswellasotherfactorssuchasdroughtanddisease,buttheheadstartprogramsignificantlyincreasestheirsurvivalrate.

Biologistsareinvolvedinpreparingforeachtortoise’seventualmovebackintothewild.Theyidentifyanidealhabitatnearwherethetortoisewasoriginallyfoundontheprojectsite.Whenthetimeofyearandtemperaturesareappropriatefortranslocationactivity,thebiologistsbeginbyconductingamedicalassessmentofthetortoisestoensuretheyarehealthyandreadyfortranslocation.Next,withoversightfromtheBureauofLandManagement,twotortoisesatatimearetakenfromthetortoisenurserytotheirnew,predeterminedlocation.Ivanpahbiologistsaredoingallthattheycantoensurethetortoiseshaveasafetransitionbackintotheirnaturalhabitat.

Manyregulatoryagencieswereinvolvedinthenearlyfour-yearpermittingprocessoftheIvanpahsolarproject,includingagenciesthatspecializeintheprotectionofbirdsandotherspecies.IvanpahwasreviewedandapprovedbytheCaliforniaEnergyCommissionandBureauofLandManagementwithsignificantinputandguidancefromtheU.S.FishandWildlifeServiceandtheCaliforniaDepartmentofFishandGame.Theseorganizations

determinedthattherisktobirdsandotherspecieswasinsignificantandcouldbemitigatedwithproperplanning.However,duetouniqueweathercircumstancesin2014,anaviandeterrentsystemisbeingevaluatedthatwouldsprayafinemistofconcentratedgrapeextractintotheairneartheconcentratedsolarfluxtoreducethenumberofavianspeciesnegativelyimpactedbytheflux.Additionally,anacousticdeterrentsystemwasinstalledtopreventbatsfromenteringaircoolingcondensers.

Formoreinformation,visitivanpah.nrg.com.

OspreyIntheNortheast,employeesatNRGfacilitiesarehelpingsupporttheresurgenceofospreythroughtheconstructionofospreynestingplatforms.

AtourNorwalkHarborStationinConnecticut,awebcamallowstheNorwalkMaritimeCentertheopportunitytoobserveospreynestingactivityasaneducationalexperiment.

SeveralotherNRGplantshavesupportedhabitatenhancementprojects.AtourHuntleyandOswegoplantsinNewYork,webuiltanddonatedbluebird,treeswallowandbarnowlhouses,aswellasducknestingboxes.Weinstalledthebirdhousesatplantsitesanddistributedthemthroughoutthecommunity,includingtoBoyScouttroops.Thetroopsusedtheinstalledhousestoearnmeritbadgesforconservation.

AtChalkPointStationinAquasco,MD,approximately1,028acresofundevelopedlandissetasideinaconservationagreementwithPrinceGeorge’sCounty.Theagreementstipulatesthatnologgingwilloccurandthelandwillbemanagedforwildlifebenefit.ManagementisongoingthroughtheNRGeconrgstewardshipprogram,whichincludedinstallingfourospreynestingplatformsalongthePatuxentRiver.


Bog turtlesInPennsylvania,NRGhaspartneredwithseveralprivatelandownerstorestorebogturtlehabitatneartheDelawareRiver.Thebogturtleisdesignatedasafederallythreatenedspecies.Bogturtlesprefertoliveinspringseepsandopen,marshymeadows,whichareusuallyfoundinflatorgentlyrollinglandscapes.Yet,thesesameareasarealsoprimelocationstobuildhomesandhousingdevelopmentstosupporttheurbanandsuburbansprawlthatcentersoncitiesintheNortheast.

California least ternFormorethan15years,NRGhasdiligentlymonitoredthenestingactivityofthefederallyendangeredCalifornialeastternatourPittsburgGeneratingStationpropertynearSanFranciscoBay.Thesmallnestingareaisprotectedfromhumanintrusioneachyearduringthenestingseasonandclearedoftallvegetationthatmayinterferewithnestingorprovidecoverforpredators.DatacollectedfromoursurveysiscompiledandsenttotheU.S.FishandWildlifeServiceandCaliforniaDepartmentofFishandGameforadditiontotheirannualleastternnestingreports.

Urban wildlifeAtourSaguarofacilityinNevada,NRGfundedandworkedwithalocalBoyScouttroopontheconstructionandinstallationofbatboxestohelpprotectbatpopulations.

WorkingwiththeConnecticutDepartmentofEnergy andEnvironmentalProtection,wefundedsignsto educatethepublicaboutprotectingnestingbirdsatourDevonplant.AlsoatDevon,NRGemployeesbuiltandinstallednestingboxesforperegrinefalcons.Thefalconnestsaremonitoredduringthebreedingseason,and ouremployeesworkwiththeConnecticutDepartment ofEnergyandEnvironmentalProtectiontosupportbandingactivities.

NRGGulfCoastemployeesvolunteeredtotrainpeopleinworkshopstocareforwildlifeincaseofanoilspill.OsceolaGeneratingStationinSt.Cloud,FL,BigCajunII

inBatonRouge,LA,andCottonwoodGeneratingStationinDeweyville,TX,aresitepartnerswiththeGulfCoastBirdObservatory.Wildlifesurveysandhabitatconditionsarevoluntarilyreportedtothesitepartnerdatabase.Thegoaloftheprogramistopreserveandrestoreessentialmigratorybirdhabitatforthe300-plusspeciesofbirdsthatinhabitthestatesthatborderontheGulfofMexico.

Throughoureconrginitiative,nativeplantwildlifefoodplotsarebeingplantedonunusedlandatNRGgenerationsites.Someplotsaresmall,justafewsquarefeet,whileotherscovermanyacres.In2012,NRGplanted17acresofsunflowersatourNortheastgenerationsites.Thesunflowerplotswillreseedeachyear,providingfoodandshelterfornativewildlife.

FisheriesTheNRGViennaplantinMarylandparticipatesinan annualshad-raisingprogramtoenhancenativestocks ofshadintheNanticokeRiver.Theshadpopulation iswellbelowhistoriclevelsoftheearly20thcenturyasaresultofoverfishingandhabitatdestruction.ShadareraisedinapondattheplantandthenreleasedintotheNanticokeRiver.

Since1997,theChalkPointStationinPrinceGeorge’sCounty,MD,hashostedmiddleandhighschoolstudentswhohaveraisedshadfrytoreleaseintothePatuxentRiveratChalkPoint.Theirefforts,partofaregionallivingclassroomprogram,contributetohelpingthethreatenedAmericanshadregainitsnumbersinwatersaroundthenation’scapital.

Since2010,NRGhashelpedfundandprovidevolunteerstoreestablishasustainablebrowntroutpopulationinthewestbranchoftheSusquehannaRiverwiththeOldTownSportsmanAssociationofClearfield,PA.Duringthiseffort,healthybrowntroutfingerlingswerestockedintheClearfieldandCurwensvilleareas.EmployeesfromourShawvillestationvolunteeredfortheproject.

Endangered or threatened speciesNRGhasidentifiedareasofoperationthathavedocumentedendangeredorthreatenedspeciesofwildlife,accordingtotheIUCNRedListspeciesandnationalconservationlistspecies:

CaliforniaValleySolarRanchhasonecriticallyendangered,twoendangeredandthreeleast concernspecies

IvanpahConcentratedSolarPowerProjecthasonevulnerablespecies

PowertonStationhasoneendangeredspecies

Allspeciesandrespectivehabitatsareaddressedandmitigatedthroughsitepermits,monitoringplansandconservationeasements.


SUPPLYCHAINTheNRGsupplychainisdesignedtosupportbusinessoperations,ensuringthatretail,corporate,informationtechnology,andplantoperationsandmaintenancehavethematerialsandservicesneededtooperatedaily.Thesupplychainincludesanetworkofapproximately35,000supplierslocatedprimarilywithintheU.S.Ourlargestspendcategoryisservices,whichcomprisesapproximately70%oftotalspend.Oursecond-largestspendcategoryismaterials,whichcomprisesapproximately30%oftotalspend.Oursuppliernetworkcomprisesmanufacturers,distributors,brokers,contractors,subcontractors,wholesalersandconsultants.Overthelastfourquarters(Q42013-Q32014),thetotalspendwithintheNRGsupplychainwasapproximately$3.06billion.Oursupplychainisdependentonhighlyskilledcraftlabor.Ourfocusisprocuringhigh-qualityproductsandservicesinatimelymannerfromsupplierswhovaluesafety.

ManagementTheNRGsupplychainmanagementapproachisdrivenbysafety.Allsuppliersprovidingon-siteservicesmustbeprescreenedthroughoursupplierregistrationportalforsafety.ThesafetyprescreeningisthefirststepindoingbusinesswithNRG,andfailuretomeetoursafetystandardscanresultindisqualification.Examplesofotherfactorsconsideredwhenevaluatingasupplier’sfitforNRGincludebutarenotlimitedtodiversitycertification/registration,auditedfinancialstatements,D&Breports,performance,qualityprogramsandinsurance.Accesstothesupplierportalislocatedatnrg.com/about/do-business-with-nrg.

Inaddition,theNRGStandardTermsandConditionsandSupplierCodeofConductgoverntherelationshipbetweenNRGanditssuppliers.NRGhastheabilitytoterminatecontractsandrelationswithsuppliersundertheseStandardTermsandConditionsshouldNRGviewtheperformanceofthesupplierasunacceptableor

outsideoftheagreeduponperformancedelineatedintheStandardTermsandConditionsand/ortheNRGSupplierCodeofConduct.BothcanbefoundontheNRGSupplierOverviewwebpageatnrg.com/about/do-business-with-nrg.ThesepoliciesapplytoallsuppliersandwerelastupdatedinJanuary2014(StandardTermsandConditions)andJune2014(SupplierCodeofConduct).TheOperationalExcellenceteamwithinthesupplychainisresponsibleforayearlyreviewofpoliciesinconjunctionwithacommitteeconsistingofsupplychainmanagement.

NRGalsorequiresthatallNRGsuppliersadheretoourSTRIVEvalues,whicharedetailedintheSupplierCodeofConduct.Thesevalues,whilenotapolicy,arealongstandingphilosophyatNRG,andweexpectemployeesandsuppliersaliketoadheretothem.TheSTRIVEvaluescanalsobefoundatnrg.com/about/what-we-are-about.

PrioritiesFor2015,theNRGsupplychainhascommittedtodevelopasupplychainsustainabilityactionplantoprovideaplatformthatsupportsoursustainabilityandcorporateresponsibilityprogramandreportingrequirements.Thiswillbeconsideredalong-termproject(1-2yearsfromdevelopmenttoimplementation).Responsibilityforthisefforthasbeenassignedtothreeindividualsonthestrategicsourcingteam.Theeffortswillbedrivenbythefinancesupervisorandenvironmentalcategorymanager,andoversightwillbeprovidedbythestrategicsourcingmanager.Theseindividualswerechosenbasedontheirknowledge,qualificationsandaccesstoafleet-widenetworkofcross-functionalresources.Developingasustainabilityactionplan,alongwithenhancingexistingpolicies/procedures,willbepartoftheir2015-2016performancegoalsandwillbeevaluatedbymanagement.Aspartofthiseffort,fundshavebeenallocatedfortraininganddevelopmentfortheseindividuals.

LOCATEDPRIMARILY WITHIN U.S.

3.06B TOTAL SPEND Q4 2013 - Q3 2014

SERVICES 70% MATERIALS 30%

35,000SUPPLIERS

totalSPEND


Supplier selectionSupplierselectionisamultilayeredprocess.Wefirstidentifysuppliersthroughvariousmethods,includingbutnotlimitedtoexistingrelationships,referrals,matchmakingevents,tradeshowsandconferences.Aspartofthiseffort,theNRGsupplychaindiversitycoordinatorleadsaprogramdedicatedtoidentifying smallandwomen-ownedbusinessestopartnerwith NRGacrossallfunctionalgroups.Suppliersare requiredtoregisterinourthird-partysuppliermanagementportal,andsuppliersprovidingon-siteserviceswillbeevaluatedforsafety.Failuretomeetapplicablesafetyrequirementswillresultindisqualificationorconditionalqualification,whichrequiresadditionaldocumentationandanimprovementplan.Suppliersofenvironmentalservices,suchashandlingofhazardousornon-hazardouswaste,areauditedtodetermineeligibility.SuppliersarealsorequiredtosubmitcertificatesofinsurancetoensurecompliancewithNRGminimuminsurancerequirements.AlthoughsuppliersmustsuccessfullysubmittheirprofilesandcompletetheevaluationprocessinordertoperformservicesatNRG,theevaluationprocessmaybeconductedbefore,after orsimultaneoustoabidevent.Bideventsaregenerallyrequiredforpurchasesgreaterthan$50,000.

Inabidevent,suppliersareinvitedtobidforaspecificproductorservice.SuppliersareprovidedatimelineandrequestedtosubmitadetailedproposalbasedonthestatementofworkorrequirementsprovidedbyNRG.Thesebideventsaremanagedwithinathird-partyportalthroughatopsuppliertotheutilityindustry.Inadditiontomanagingbidevents,theportalprovidesspendanalysisbasedonhistoricNRGsupplychaindataandcostanalysisbasedonmarketdata.Abideventmaylastdays,weeksormonthsdependingonthecomplexityoftheproductorservicebeingsourced.Theeventsaremanagedbysupplychainprofessionalswhoworkwithdepartmentaloroperationalsubject-matterexpertstoselectsuppliersbasedonvariousfactors,includingbutnotlimitedtoquality,reputation,proposal,price,environmental,social,andgovernance(ESG)objectives,timerestrictionsandscarcityofproduct/service.

Onceasupplierisselected,thesupplierisengagedthroughoutthecompletionoftheprojectawardedortheservices/materialstobedelivered.Sourcingspecialistsareresponsibleformaintainingrelationshipswithsupplierswithintheirassignedcategoriesorplantlocation.

Strategic sourcingInadditiontogeneralbidevents,thestrategicsourcingteamisresponsibleforidentifyingopportunitiesforstrategicagreementsacrosstheNRGfleetofgenerationstations.Nationalandregionalsuppliersareinvitedtoparticipateinstrategicbideventsthatresultinlong-termcontracts(2-3years)fornationalorregionalservicestotheNRGfleet.Strategicsuppliersareassignedtocategorymanagersonthestrategicsourcingteam.Thecategorymanagersareresponsibleformaintainingrelationshipswithstrategicsupplierswithintheircategoriesandschedulingquarterlyorbiannualbusinessreviewstodiscussvarioustopics,includingbutnotlimitedtosafety,valuecreation,ESGinitiatives,marketoutlook,KPIperformance,spendandareasforimprovement.

Toachieveeconomiesofscaleinourpurchasing,NRGwillenterintocontractswithnationalsuppliersthatprovidemiscellaneousofficeandadministrativegoodsandservices(e.g.,travel-related,officesupplies,ITsoftwareorhardware).Alsoduetothenatureofourbusiness,specializedgoodsandservicesneededfortheoperationsandmaintenanceofNRGgenerationassetsareobtainedfromalimitednumberofdomesticandinternationalmanufacturers.Undercertaincircumstances,NRGmayelecttoutilizealocalsourcingstrategyratherthanaregional/nationalapproach.NRGhasasupplierdiversityprogramthatworkstoachieveestablishedgoalswiththeSmallBusinessAdministrationfortheutilizationofdiversebusinessesacrossavarietyofdifferentcategories,includingbutnotlimitedtowomen,minority,veteranandHUBzone-ownedbusiness.


Standards and policiesTheNRGStandardTermsandConditionsrequirethatsupplierscomplywithallapplicablelawsandregulations.Section11isspecifictoenvironmentalprotectionandrequiresthatsupplierscomplywithallfederal,stateandlocallawsandregulationspertainingtotheprotectionoftheenvironmentassociatedwiththeworkbeingcompleted.Thetermsalsoincludespecificwarrantiesthatsuppliersmustadhereto,suchasawarrantythattheydonotmanufactureorsubcontractforthemanufactureofanyproductsforwhichconflictmineralsarenecessarytothefunctionalityorproductionofthatproduct.TheNRGStandardTermsandConditionscanbefoundatnrg.com/documents/about/GC-terms.pdf.

NRGconductsauditsofalltreatment,storageanddisposal(TSD)facilitieswhereourhazardous,industrialanduniversalwastestreamsaredisposed.WeworkcloselywithourwastesupplierstoidentifyandaudittheirTSDfacilitiesbeforecommencingservices.Thefocusoftheauditisprimarilyenvironmentalcompliance,ensuringthatboththesupplierandTSDfacilityarecompliantwithallapplicablelawsandregulations.WehavestrategicrelationshipswithalimitednumberofwastesupplierswhoseTSDfacilitiesareauditedeveryfiveyearstomaintaincompliance.Becauseoftheenvironmentalsensitivityofwastehauling,NRGmaintainsstrategicrelationshipswithkeywastesuppliersanddoesnotregularlyaddnewwastesupplierstooursupplychain.During2014,NRGdidnotsourcefornewsuppliers subjecttoenvironmentalassessment.

NRGcurrentlycollectssupplierdataregardingwaterconsumptionandgreenhousegasemissions(GHG).In2013,NRGcontractedagloballyrecognizedsuppliertoconductaGHGlifecycleassessment.TheresultsindicatedthatthesupplychainimpactforNRGisnotmaterialandoureffortsshouldbefocusedonreducingtheimpactofourgenerationassets(i.e.,acquisitionandconsumptionoffuel).Furthermore,NRGparticipatedinapowerindustrystudysupportingtheseresultsandaffirmingthatsupplychainisnotamaterialsustainabilityconcern.Nonetheless,theNRGsupplychainisfocusingonproactivemeasuresthatincludeassessingourcurrentprocessesandproceduresandmodifyingthemasneeded.

Mosthigh-volumematerialsarepurchasedbyvariousunitsofmeasurewithnodirectcorrelationtoweightorvolume.Withtheexceptionof26milesoftransmissionfromourwindfarms,NRGdoesnotownoroperatedistribution.Materialsusedinthegenerationofelectricityincludefuel,chemicalsforwastewatertreatment,andairqualitycontrolequipmentandmaintenance.NRGhasachemicalmanagementplaninplacethatcovers:reviewingallchemicalsbeforetheycanbeusedon-site;managingthehandlinganddeliveryofchemicalstoensurebestpracticesandavoidtheneedfordisposingofchemicalspasttheirshelflife;secondarycontainment;andemergencyresponse.AnytransformersorPCB-containingequipmentonourpropertywasconverted tonon-PCBmaterialsanumberofyearsago.

TheNRGStandardTermsandConditionsrequirethatsupplierscomplywithallapplicablelawsandregulations.NRGiscontinuingtoevaluateastatementasapartofourStandardTermsandConditionsandcontractlanguagethatwouldrequiresupplierstobeincompliancewiththeUnitedNationsUniversalDeclarationofHumanRights.InclusionofthislanguagewillrequirethereviewofNRGinternallegalcounselandcompliancedepartments,aswellassignoffbyexecutivemanagement.WiththeexceptionofonegeneratingfacilityinAustralia,ouroperationsareallbasedwithinthedomestic48contiguousUnitedStates.In2014,approximately33.7%ofnewsupplierswerescreenedusinglaborpracticescriteria.

2014 NRG Sustainability Report | 46Governance

GovernanceTorealizeoursustainabilitygoals,we’vesetuparobustsystemofgovernanceandinformationgatheringtohelpusdeterminewheretomakechanges,howtomanagethosechangesandhowtoinformourinvestorsandstakeholders.

CORPORATE SUSTAINABILITY GOVERNANCESTRUCTUREForsustainabilitytobeembeddedintoourorganizationalstrategy,itneedstobechampionedbyourbusinessleadersandthoroughlyintegratedintoourcoreoperations.Toensureexecutiveandoperationalbuy-in,NRGcreatedarobustsustainabilityteamtomanageourday-to-daysustainabilityefforts.In2012,wealsoassembledaCEO-ledexecutivesteeringcommitteetoguidethedevelopment,integrationandimplementationofourstrategy.In2014,thecommittee’sstructureadjustedtopositionleadershipinstrategicpriorityareas.

Thecurrentexecutivesteeringcommitteeincludesthefollowingmembers:

DavidCrane,ChiefExecutiveOfficer

SteveCorneli,SeniorVicePresident,Policy,StrategyandSustainability

LeeDavis,ExecutiveVicePresidentandRegionalPresident,East

TanujaDehne,SeniorVicePresidentandChiefAdministrativeOfficer

SicilyDickenson,SeniorVicePresidentandChiefMarketingOfficer

ThomasDoyle,President,NRGRenew

MauricioGutierrez,ExecutiveVicePresidentand ChiefOperatingOfficer

DavidHill,ExecutiveVicePresidentandGeneralCounsel

ElizabethKillinger,SeniorVicePresidentandPresident,NRG Retail

SteveMcBee,President,NRGHome

LeahSeligmann,ChiefSustainabilityOfficer

ChrisSotos,SeniorVicePresident,StrategyandMergers&Acquisitions

WalterStone,VicePresident,EnvironmentalandAssistantGeneralCounsel

STAKEHOLDER PRIORITIESGoingforward,asweshiftouroperationstoincreaseourrenewablesandreduceourenvironmentalfootprint,wemustremainprofitable,aswellassensitivetotheneedsandconcernsofourstakeholders.

Althoughwe’reconfidentthatsustainabilityinitiativesleadtolong-termfinancialbenefitsthatwillultimatelyrewardthecapitalinvestmentneededinoureffortstorepowerandbuild,it’svitalthatourstakeholdersareeducatedon,andcomfortablewith,thedetailsofthisstrategy.

Wecontinuallycommunicatewithourinvestors,aswellaswithourbroaderstakeholdernetwork,toshowcaseourinitiativesalongwithouractualandprojectedfinancialposition.Wewillcontinuethesecommunicationsandstakeholderoutreacheffortsasoursustainabilitystrategyisrefinedandimplementedovertime.

IMPACTANALYSISBeforeacompanycaneffectivelyimproveitscorporatesustainabilityperformance,itneedsamorecomprehensiveunderstandingofhowthebusinessaffectstheenvironment,societyandtheeconomy.Toachievethislevelofunderstandingandensureimpartiality,wecontractedwitharespectedthirdpartytoadministeramaterialityassessment—onethatwouldidentifyourmaterialsustainabilityissues.Wealsoundertookananalysisoflifecycledatatodeterminewherewehavethegreatestenvironmentalimpact.

In2013,NRGconductedalifecycleassessmentofourenvironmentalfootprinttopinpointourimpactsbothinternallyandacrossourfullvaluechain.Thisassessmentconfirmedourgenerationbusinesscreatedthevastmajorityofsuchimpacts(75%)acrossthelifecycleofourproduct—fromextractiontouse—viathecombustionoffuelstoproduceenergy.

Thisfootprintanalysisisbeingusedtofocusourstrategyontheareasofourbiggestimpacts,guidingourcorporategoal-settingandsupportinginitiatives.Pleaseseebelowforamoredetailedsummaryofourfindings,brokendownasscope1,2and3emissionsinaccordancewiththetypicalwaycompaniestalkabouttheirenvironmentalimpacts.

Scope 1: EmissionsUnlikenon-energyretailersandcompaniesofferingconsumerpackagedgoods(wherethemajorityofimpactscomefromthesupplychain,i.e.,scope3emissions),morethan90%ofourcarbonandalmost80%ofourtotalenvironmentalimpactsarewithinourdirectcontrol(scope1emissions).Carbonisthelargestdriverofourenvironmentalfootprint,followedbyairemissionsandresourceextraction.Becausesuchalargepercentageofourimpactsarescope1,wehavetheopportunityto

usesustainabilityinitiativestomakearealdifferencewithrespecttoourcarbonfootprint.Wewilldosothroughstrategicupdatestoourfleet:

Repoweringtraditionalpowergenerationassetsatourplantsforlower-carbonfuelslikenaturalgas

Investinginanddeployingalternativeandrenewableenergytechnologiesforgeneration

Reducingemissionsfromcoalthroughcarboncaptureforuseinenhancedoilrecovery

Scope 2: Purchased electricityPurchasedelectricityaccountsfor1%ofourenvironmentalimpacts.Althoughthisdoesn’tsoundlikemuch—NRGretailandcorporatebusinessisjustafractionofouroverallfootprint—reducingourpurchasedenergyfootprintisakeyelementtowardreducingouroverallenvironmentalimpact.NRGhastakenanumberofstepstohelpmitigateourpurchasedelectricityfootprint,includingimplementingenergyefficiencyinitiativesthroughoutourownfacilities(forexample,ourcorporateheadquartersswitchedto100%renewableenergytosourceourelectricityneeds)andprovidingourconsumerswithmoreoptionsforincreasingenergyefficiencyandusingrenewableenergypower.

Scope 3: Supply chainOursupplychainaccountsfor20%ofourenvironmentalimpacts.Althoughthisisrelativelysmallcomparedtoourgenerationfootprint,tacklingthesocialandenvironmentalimpactsofoursupplychainisanimportantpartofourstrategyandiscriticaltotransformingourindustry.AtNRG,weseethefirststeptoimprovingoursupplychainastransparency;weareworkingwithoursupplychainpartnerstobetterunderstandtheirrespectiveimpactsandhowwecancollaboratetoimprovetheoverallsystem.


Environmental Impact Across Our Value Chain

Plant Equipment& Construction

4%15% 80% 1%

Fuel Extraction& Processing

Power Production Retail & Corporate

Lifecycle assessment


Materiality matrixWhendiscussingmateriality,weusetheGlobalReportingInitiativedefinition:“Materialtopicsforareportingorganizationshouldincludethosetopicsthathaveadirectorindirectimpactonanorganization’sabilitytocreate,preserveorerodeeconomic,environmentalandsocialvalueforitself,itsstakeholdersandsocietyat-large.”

NRGengagedathirdpartytoconductapreliminaryformalmaterialityassessmentwithinternalstakeholderswhorepresenteddiversedivisionswithinourorganization.Theirinputwassolicitedthroughsurveysandanin-personworkshop.Inparallel,weprioritizedNRGmaterialsustainabilityissuesaccordingtoahigh-level,qualitativeratingusingexistingNRGdataandindustryandexternalstakeholderresources.

TheresultingMaterialityMatrix(seechart)illustrateswhatsustainabilityissuesinsocial,environmentalandeconomicareasmayhavethegreatestimpactwithregardtoourbusinessandstakeholders.

Today,we’reusingthisindependentanalysistobetterinformbusinessdecisionsandshapeourvoluntaryreportingprocess.Wewillcontinuetodevelopandrefinethismaterialityassessmentonanannualbasis,engagingabroaderaudienceofinternalandexternalstakeholders.

Keyfindingsfromtheinitialmaterialityanalysisinclude thefollowing:

Economic findings:Energyreliability,availabilityandpowerqualityarethetopeconomicissues.Theeconomiccategoryincludesissuesthatrelatetotheorganization’simpactsontheeconomicconditionsofitsinternalandexternalstakeholdersandoneconomicsystemsatlocal,nationalandgloballevels.

Environmental findings:AsalargepowerproducerintheU.S.,NRGneedstobeconsciousofgreenhousegasemissionsandclimatechange.Theenvironmentalcategoryincludesissuesthataddresstheorganization’simpactonlivingandnon-livingnaturalsystems,includingland,air,waterandecosystems.

Social findings:Withthousandsofemployeesworkingatvarioustypesoffacilities,employeehealthandsafetyarethemostmaterialnon-environmentalissues.Thesocialcategoryencompassesissuesconcerningtheimpactstheorganizationhasonthesocialsystemswithinwhichitoperates.

2014 NRG Sustainability Report | 49Reporting

Reporting

About this report2

This,ourfifthannualsustainabilityreport,wasdevelopedinaccordancewiththeGlobalReportingInitiative(GRI)4Coreframework,aswellastheGRIElectricUtilitiesSectorSupplement.ThereportincludesindicatorsoftheGRIindexforoursector.Asacommitmenttoprovideadynamicplatformforcommunicationtoourstakeholdersandconservenaturalresources,wetransitionedtoaWeb-basedreportingformatin2014.SectionsoftheNRGsustainabilitywebsitecanbecombinedintoacustomizeddocumentviewedinPDFformat.

Morethan30internalsubject-matterexpertsarecalledupontoprovideverifiedinformationforeachofthedisclosureswithinthematerialaspects.Theentirereportisthenreviewedbyanexecutivecommunicationsboardandfinallybyourcorporatesustainabilitysteeringcommittee(seeGovernance).ThesustainabilitydepartmentisresponsibleformanagingtheprocessandhasbeenthroughacertifiedGRIG4trainingcourse.

Thecontentinthisreportwasdeterminedbasedonamaterialityassessmentconductedin2013andrevisitedin2014.MaterialaspectsasdelineatedbytheGRIG4for2014include:

Biodiversity

Compliance

Effluentsandwaste

Emissions

Employment

Energy

Localcommunities

Occupationalhealthandsafety

Procurementpractices(supplychain)

Water

Ourmaterialityassessmentidentified30issuesasimportanttostakeholdersandtheNRGbusiness.However,forthescopeofthisreportwechosetodisclosespecificallyontheaboveaspectsbecausetheywereidentifiedaspriorityareasbyinternalandexternalstakeholderconversations.Webelievetheseaspectsaccuratelyrepresenttheorganization’ssignificanteconomic,environmentalandsocialissuesatthistime.TheyalsoalignwiththekeythemesoftheNRGcorporatestrategyandarewherewearefocusingeffortstocreaterobusttargetsandgoals.ThesetopicscoverallNRGbusinesses.Wedorecognize,however,thatsomeofthesetopicsaremorerelevanttocertainpartsoftheorganizationthanothers.Forexample,mostoftheenvironmentaldisclosureisfocusedonourpowergeneratingfleetsincethatiswherewehavetheabilitytomakethemostimpactintermsofemissions(seeLifecycle assessment).Relevantfinancialimplications,

aswellasadiscussionofrisksandopportunitiesassociatedwithsomeoftheseissues,canbefoundin Part1,Item1Ainour2014Form10-K.

AssuranceNRGhaschosentovoluntarilyreportonourcorporateresponsibilityperformanceandhasdesignedprocessestocollectand/orestimate,assessandreportonthisdata.NRGmanagementisresponsibleforthecompleteness,accuracyandvalidityoftheinformationcontainedinthisreport.We’veengagedanationallyrecognizedandregisteredpublicaccountingfirmtoprovidealimitedassuranceofouremissionsinventory.Detailsofthestatementofassurancecanbefoundattheendof thereport.

FeedbackIfyouhaveanycommentsorquestionsaboutthisreport,orwouldlikemoreinformationonoursustainabilityefforts,[email protected].

Westrivetoachievetransparencyaswecreateopportunitiesforprogress.ThissustainabilityreportisbasedonNRGcorporateperformanceforalloperationsincalendaryear2014and,wherestated,“NRG”referstoNRGEnergy,Inc.,aswellasitsaffiliateswhichincludedassetsownedbyNRGEnergyInc.andNRGYield,Inc.1

1Wherediscussed,emissionsarerolledupforthesepurposes.

2014 NRG Sustainability Report | 50Reporting

Inadditiontohistoricalinformation,theinformationpresentedinthisreportincludesforward-lookingstatementswithinthemeaningofSection27AoftheSecuritiesActof1933andSection21EoftheExchangeAct.Thesestatementsinvolveestimates,expectations,projections,goals,assumptions,knownandunknownrisksanduncertaintiesandcantypicallybeidentifiedbyterminologysuchas“may,”“should,”“could,”“objective,”“projection,”“forecast,”“goal,”“guidance,”“outlook,”“expect,” “intend,”“seek,”“plan,”“think,”“anticipate,”“estimate,”“predict,”“target,”“potential”or“continue,”orthenegativeofthesetermsorothercomparableterminology.Suchforward-lookingstatementsinclude,butarenotlimitedto,statementsabouttheCompany’sfuturerevenues,income, indebtedness,capitalstructure,plans,expectations,objectives,projectedfinancialperformance and/orbusinessresultsandotherfutureevents,andviewsofeconomicandmarketconditions.

AlthoughNRGbelievesthatitsexpectationsarereasonable,itcangivenoassurancethattheseexpectationswillprovetohavebeencorrect,andactualresultsmayvarymaterially.Factorsthat couldcauseactualresultstodiffermateriallyfromthosecontemplatedaboveinclude,among others,generaleconomicconditions,hazardscustomaryinthepowerindustry,weatherconditions,competitioninwholesalepowermarkets,thevolatilityofenergyandfuelprices,failureofcustomerstoperformundercontracts,changesinthewholesalepowermarkets,changesingovernment regulationofmarketsandofenvironmentalemissions,theconditionofcapitalmarketsgenerally, ourabilitytoaccesscapitalmarkets,unanticipatedoutagesatourgenerationfacilities,adverse resultsincurrentandfuturelitigation,failuretoidentifyorsuccessfullyimplementacquisitions andrepowerings,ourabilitytoimplementvalueenhancingimprovementstoplantoperationsand companywideprocesses,ourabilitytoobtainfederalloanguarantees,theinabilitytomaintainorcreatesuccessfulpartneringrelationshipswithNRGYieldandotherthirdparties,ourabilitytooperateourbusinessesefficientlyincludingNRGYield,ourabilitytoretainretailcustomers,ourabilitytorealizevaluethroughourcommercialoperationsstrategyandthecreationofNRGYield,theabilitytosuccessfullyintegratethebusinessesofacquiredcompanies,theabilitytorealizeanticipatedbenefitsofacquisitions(includingexpectedcostsavingsandothersynergies)ortheriskthatanticipatedbenefitsmaytakelongertorealizethanexpected,theabilitytosellassetstoNRGYield,Inc.,andourabilitytopaydividendsandinitiatesharerepurchasesunderourcapitalallocationplan,whichmaybemadefromtimetotimesubjecttomarketconditionsandotherfactors,includingaspermittedbyUnitedStatessecuritieslaws.Furthermore,anycommonstockdividendissubjecttoavailablecapitalandmarketconditions.

NRGundertakesnoobligationtoupdateorreviseanyforward-lookingstatements,whetherasa resultofnewinformation,futureeventsorotherwise,exceptasrequiredbylaw.Additionalfactorsthatcouldcauseresultstodiffermateriallyfromthosedescribedintheforward-lookingstatementscanbefoundinNRG’s2014AnnualReportonForm10-KandtheCompany’sotherfilingswiththeSecuritiesandExchangeCommission(SEC)availableatwww.sec.gov.

2Safe Harbor Disclosure

NRG Energy’s Greenhouse Gas Emissions Report

For the year ended December 31, 2014

During the 12 month period ending December 31, 2014, NRG Energy, Inc. emitted 103 million metric tons of greenhouse gas (GHG) emissions (carbon dioxide equivalents) from US based fossil fuel-fired electric generating facilities it owned, and in use for production of electricity measured as an equity share of ownership at the plant level. These emissions include only direct GHG emissions associated with fuel combustion in boilers, turbines and engines used for the production of wholesale electric power. It does not include other GHG emissions from other activities or equipment, such as auxiliary boilers and starter engines, used to support the generating facility site operations or GHG emissions that occur at Company sites not directly involved in the production of electricity.

The 2014 GHG emissions were determined by using methods specified within Title 40, Chapter I, Subchapter C, Part 98, Subparts A,C and D of the Code of Federal Regulations. The determination of the equity share of GHG emission is consistent with equity share methodologies for equity share accounting for greenhouse gas emissions as described in GHG Protocol: A Corporate Accounting and Reporting Standard, Revised Edition.

KPMG LLP 1601 Market Street Philadelphia, PA 19103-2499

KPMG LLP is a Delaware limited liability partnership, the U.S. member firm of KPMG International Cooperative (“KPMG International”), a Swiss entity.

Independent Accountants’ Report

NRG Energy, Inc. Board of Directors and Management

We have reviewed the accompanying Greenhouse Gas Emissions Report of NRG Energy, Inc. (the Company) for the year ended December 31, 2014. NRG Energy, Inc.’s management is responsible for the preparation of the Greenhouse Gas Emissions Report.

Our review was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. A review is substantially less in scope than an examination, the objective of which is the expression of an opinion on the Greenhouse Gas Emissions Report. Accordingly, we do not express such an opinion.

Environmental and energy use data are subject to measurement uncertainties resulting from limitations inherent in the nature and methods used in determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary.

NRG Energy, Inc. has disclosed, within its Greenhouse Gas Emissions Report, the data associated only with fossil fuel-fired electric generating facilities owned by NRG Energy, Inc., located in the United States, and in use for production of electricity measured as an equity share of ownership at the plant level. The Greenhouse Gas Emissions Report includes only direct greenhouse gas (GHG) emissions associated with fossil fuel combustion in boilers, turbines and engines used for the production of wholesale electric power. It does not include GHG emissions from other activities or equipment, such as auxiliary boilers or starter engines used to support the generating facility site operations or GHG emissions that occur at Company sites not directly involved in the production of electricity.

Based on our review, nothing came to our attention that caused us to believe that the Greenhouse Gas Emissions Report, is not presented, in all material respects, in conformity with methods specified within Title 40, Chapter I, Subchapter C, Part 98, Subparts A, C and D of the Code of Federal Regulations.

May 13, 2015

2014 nrg sustainability report

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