NRG Energy 2021 Sustainability Report: Sustainable Finance

NRG Energy 2021 Sustainability Report: Sustainable Finance

NRG Energy: Our journey to a greener tomorrow
Bikers Riding into a sunset.

Monday, September 12, 2022 - 10:00am

CAMPAIGN: NRG Energy 2021 Sustainability Report

CONTENT: Article

SUSTAINABLE FINANCE

In August 2021, NRG issued an additional $1.1 BN of sustainability-linked bonds (SLBs) on the back of its landmark 2019 and 2020 sustainability-linked issuances.

In 2019, NRG became the second U.S.-based power company to take out a sustainability-linked loan (SLL). This SLL embeds a pricing mechanism linked to specific sustainability metrics. This type of financing, which has become more prevalent, demonstrates how corporate responsibility can become part of long term financial planning.

In December 2020, NRG issued $900 million of senior secured first lien bonds in a landmark issuance, pioneering the first SLBs in North America, and the first issued by any energy company outside Europe. In concert with our acquisition of Direct Energy, the SLBs support our effort to pursue growth, achieve our climate transition strategy, and bring increasing value to our stakeholders. As a complement to the sustainability-linked pricing metric included in the SLL in 2019, the issuance of the SLBs aligns our business and financing with our commitments and values by creating a direct link between climate and funding strategies. The SLBs link attractive financing to the realization of previously announced goals to achieve a 50% reduction of absolute GHG emissions by 2025 from our current 2014 baseline and reach net-zero GHG emissions by 2050. To learn more about how the bonds fit our strategy and bring our sustainability and financial goals together, read our SLB Framework here.

ENGAGING ON POLICY

Throughout 2021, we’ve continued engaging with policymakers at both state and federal levels.

When possible, we collaborate with groups focused on clean energy access and climate solutions. Typically, we engage on legislative and regulatory actions designed to mitigate greenhouse gas emissions and are most active in the debate aimed at protecting and expanding competitive power markets and consumer choice. Learn more about our policy engagement efforts and our policy positions.

NRG collaborates with policy advocacy organizations including:

This year, we evaluated the climate positions of certain membership organizations to which we belong. We believe that either (i) they were in alignment with the Paris Climate Agreement or (ii) did not have a climate position. Our assessment was published in our inaugural Industry Association Climate Review which we will update annually.

INNOVATION

As an active supporter of the climate-tech community, we are identifying and supporting technologies and partners that could assist both in the decarbonization of our business and help our customers achieve their climate goals.

CARBON XPRIZE

  • Sponsored by NRG and Canadian Oil Sands Innovation Alliance (COSIA)

Carbon XPRIZE

NRG partnered with Canadian Oil Sands Innovation Alliance (COSIA) and XPRIZE in 2015 to create a five-year global competition toaddressrisingCO2emissionsbychallenging innovators around the world to develop breakthrough technologies that convert as much CO2 as possible into products with the highest net value. Through partnerships like these, we are supporting the creation of climate technology and more sustainable solutions. The competition winners – CarbonCure Technologies and CarbonBuilt – were chosen by an independent panel of judges and announced in April 2021. Both companies developed technologies that use CO2 in the production of concrete, thereby reducing its carbon footprint.

GREENTOWN LABS

  • Founding Sponsor, Houston Expansion

RICE ALLIANCE FOR TECHNOLOGY AND ENTREPRENEURSHIP (RICE ALLIANCE)

  • Founding Supporter, Rice Alliance Clean Energy Accelerator

CARBON-TO-VALUE (C2V)

  • Founding Member and part of Carbontech Leadership Council (CLC)

Finally, NRG participates in several multi-stakeholder group consortia working to scale various decarbonization pathways.

EVOLVE HOUSTON

  • Founding member

THE RICE UNIVERSITY CARBON HUB

  • Member, Carbon Advisory Panel

H2HOUSTON HUB

  • Member

HOUSTON CCS HUB

  • Founding Member

THE GREATER HOUSTON PARTNERSHIP ENERGY 2.0, ENERGY ADVISORY, AND HOUSTON ENERGY TRANSITION INITIATIVE STEERING COMMITTEES

THE UNITED STATES BUSINESS COUNCIL ON SUSTAINABLE DEVELOPMENT

  • Founding member,
  • Gulf Coast Carbon Collaborative

UNIVERSITY OF HOUSTON CENTER FOR CARBON MANAGEMENT IN ENERGY (CCME) - SOUTHERN STATES ENERGY BOARD (SSEB)

  • CCUS Commercialization Effort

THE RICE UNIVERSITY BAKER INSTITUTE CENTER FOR ENERGY STUDIES

  • Working Group on Carbon Capture, Use, and Sequestration (CCUS) and Hydrogen

To learn more about NRG Energy's commitments to sustainability, download the 2021 Sustainability report here.