Brookfield Renewable : ESG Report

Accelerating the net-zero transition

Brookfield Renewable Corporation 2022 ESG Report

Welcome and	Context	Accelerating the	Supporting a		Risks and	Our continued
progress overview	and approach	transition to net zero	responsible transition	Governance	opportunities	commitment	Appendix

Contents

Welcome and progress overview		Governance
CEO letter	04		Responsible corporate
Our progress	06		governance	49
				Ethical business conduct	53
Context and approach				Cybersecurity	55
The world we operate in	10
		Risks and opportunities
Who we are and what we do	12
Our approach to ESG	16		Risk management	58
Integrating ESG throughout our				Focusing on climate risks
investment lifecycle	17			and opportunities	61
Applying our ESG principles	18		Focusing on physical risks	62
				Climate-related
Accelerating the				scenario analysis	63
			Transition risks and
transition to net zero
			opportunities analysis	64
Our role in the global
			Physical risks analysis	68
net-zero transition	20
		Resilience of our strategy	72
Our strategy	21
1. Getting to net zero	23
		Our continued commitment
2. Adding clean energy
capacity	26			Our continued commitment	73
Supporting a				Appendix
responsible transition				Appendix 1: ESG performance
Supporting a				review, KPI summary	76
responsible transition	31			Appendix 1: Awards, ratings
Protecting biodiversity	32			and certifications	82
Managing water	33			Appendix 2: Engagement with ESG
Managing waste	35			frameworks and organizations	83
Respecting human rights	36			Appendix 2: Standards &
Prioritizing health and safety	38			frameworks, TCFD index	84
Developing human capital	42			Appendix 2: Our Commitment
Promoting diversity				to the UN Sustainable
and inclusion	44			Development Goals	87
Developing community relations	46			Appendix 2: Standards &
Managing our supply chain	47			frameworks, SASB Index	89
				Appendix 2: Standards &
				Frameworks, GRI index	92
				Appendix 3: Methodology
				and materiality	104
				Appendix 4:Assurance	107
				Forward-looking statements	109

Welcome to our 2022 ESG Report

This report sets out our ESG approach, performance and progress across our Brookfield Renewable Corporation business as we work to accelerate

the global transition to net zero.

Focusing on what matters most

The topics we identify in our materiality assessment guide our public disclosures. This assessment is informed by carefully considering applicable standards and engagement with relevant stakeholders. Information presented in this report and in our other ESG-related publications may be updated

or restated in the future as the quality and completeness of our data and methodologies continue to improve.

For more information on our materiality assessment go to page 104

2022 ESG Report | Brookfield Renewable Corporation

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Welcome and	Context	Accelerating the	Supporting a		Risks and	Our continued
progress overview	and approach	transition to net zero	responsible transition	Governance	opportunities	commitment	Appendix

About this report

Brookfield Renewable Corporation is a publicly traded corporation that was created to provide investors with greater flexibility in how they invest in Brookfield Renewable Partners L.P.'s ("BEP", "Brookfield Renewable") globally diversified portfolio of assets. Brookfield Renewable Corporation shares are economically equivalent to Brookfield Renewable's limited partnership units ("LP Unit"), are exchangeable into an equivalent number of LP Units, and participate in identical distributions to LP Units.

While we report on Brookfield Renewable Corporation separately, it is a controlled subsidiary of Brookfield Renewable and operates with Brookfield Renewable as a single business under the leadership of a common management team. Brookfield Renewable has developed an ESG approach with specific policies, programs and targets for its global portfolio, which includes Brookfield Renewable Corporation's portfolio of assets. This report accordingly reports on the performance of Brookfield Renewable Corporation's assets against Brookfield Renewable's overall targets and key performance indicators. This means, for example, that where we present a Brookfield Renewable's net- zero target, we report on Brookfield Renewable Corporation's contribution to achieving that target.

We have prepared this standalone Brookfield Renewable Corporation ESG report to allow stakeholders to understand the performance of specific assets that relate to Brookfield Renewable Corporation and demonstrate how Brookfield Renewable Corporation is meaningfully contributing to Brookfield Renewable's overall objectives.

Unless otherwise noted, this report addresses our ESG performance and progress from January 1 to December 31, 2022. All metrics are as of December 31, 2022 and relate to entities that Brookfield Renewable Corporation financially controls, where available, or otherwise all entities that Brookfield Renewable financially controls, which includes Brookfield Renewable Corporation. Financial figures are reported in U.S. Dollars, unless otherwise indicated.

We continue to review our annual reporting and disclosures and make improvements in line with evolving best practices to offer greater transparency on our programs and performance.

We have reported in alignment with the GRI Standards for the period from January 1, 2022 to December 31, 2022. In addition, this report contains disclosures consistent with the TCFD's 11 recommendations and further disclosures in line with SASB Standards and the UN SDGs.

TCFD content symbol introduction

We have integrated our TCFD disclosures throughout this ESG report. The relevant sections are marked with this symbol and a summary and full index can be found on pages 84-86.

2022 ESG Report | Brookfield Renewable Corporation

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Welcome and	Context	Accelerating the	Supporting a		Risks and	Our continued
progress overview	and approach	transition to net zero	responsible transition	Governance	opportunities	commitment	Appendix

CEO letter

Connor Teskey

Chief Executive Officer,

Brookfield Renewable Corporation

A landmark year

2022 marked a significant year for both the sector and the business. It has been the strongest year of growth to date and arguably the most significant 12 months for clean energy in recent history, against a backdrop of increasing urgency, momentum and opportunity surrounding decarbonization. As one of the few businesses with the scale, track record and global capabilities to partner with governments and businesses to help them achieve their decarbonization goals, we believe Brookfield Renewable Corporation is uniquely positioned to deliver on its goal of accelerating the net-zero transition while generating value for its investors. On the policy front,

we saw significant government support packages for emerging decarbonization technologies in major markets, including the Inflation Reduction Act (IRA) in

the United States and the RePowerEU program in Europe. The combination of financial support and long-term policy commitment will continue to accelerate the deployment of renewables and facilitate investment in a range of newer decarbonization technologies. At the same time, we've seen companies continue to drive the market for decarbonization technologies with over 8,000 businesses worldwide committed to net-zero targets.1 The corporate 'pull' is very much working together with the policy 'push' for investment in these sectors.

We also saw the wider energy sector adapt to the ramifications of the war in Ukraine, which disrupted trade flows for critical fuels and accelerated investment in alternative energy sources. Given renewable energy is often the cheapest, cleanest and most readily available energy source in the majority of countries worldwide, it is clear that renewable and clean energy technologies serve both decarbonization and energy security needs. The Brookfield Renewable business is extremely well positioned

to meet these complementary needs. Brookfield Renewable is one of the world's largest owners and operators of renewables, with more than 25,000 megawatts of operating capacity and more than 110,000 megawatts in its development pipeline. Its owner/operator model enhances its ability to accelerate this pipeline, adding value through its advanced capabilities in clean energy and other sustainable solutions.

Accelerating the transition Brookfield Renewable's strategy is focused on accelerating the global net-zerotransition through developing additional clean energy assets, growing sustainable solutions, and transforming carbon-intensivebusinesses to Paris-alignedbusiness models. This

is underpinned by robust governance and its commitment to collaboration.

"Brookfield Renewable has made considerable progress through

the year and has its sights set firmly on achieving a great deal more in the years ahead. The tailwinds for the sector continue to strengthen and Brookfield Renewable is well positioned to grow across a diverse range of net-zero transition opportunities."

• UN Climate Change website, Race to Zero, March 2023. 2022 ESG Report | Brookfield Renewable Corporation

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Welcome and	Context	Accelerating the	Supporting a		Risks and	Our continued
progress overview	and approach	transition to net zero	responsible transition	Governance	opportunities	commitment	Appendix

CEO letter continued

The following charts illustrate revenue on a proportionate basis1

Technology

Hydroelectric	69%
Wind	11%
Solar - large scale utility	11%
Distributed energy &
sustainable solutions	9%

• Figures based on normalized revenue for the past
  12 months, proportionate to Brookfield Renewable Corporation.

Last year Brookfield Renewable set out three targets to achieve net zero across its business and to accelerate the global transition to net zero. First, achieving net zero in its renewable operations across Scope 1 and Scope 2 emissions by 2030. Second, adding 21,000 megawatts of clean energy capacity, effectively doubling Brookfield Renewable's footprint by 2030.

Third, investing capital in the transformation of carbon-intensive businesses and putting them on a Paris-aligned pathway.

Brookfield Renewable has made important progress in all three areas. Brookfield Renewable continued to reduce its emissions from its base year. Brookfield Renewable also made substantive clean energy capacity additions across the year, significant greenfield development in multiple jurisdictions, and several acquisitions of renewable energy developers, particularly in the United States. In total, Brookfield Renewable brought 3,475 megawatts of development projects through to operations.

In addition to renewable development, Brookfield Renewable made its first investment in a range of technologies it thinks will be critical for decarbonization in hard-to-abate sectors, including carbon, capture, usage and storage (CCUS), renewable natural gas (RNG), and waste recycling.

Brookfield Renewable continued to evaluate physical and transitional risks and opportunities and test the resilience of its strategy in line with the TCFD recommendations. The analysis performed and disclosed in this report reinforces the belief that the business is resilient across a range of scenarios.

A responsible transition

It is vital that we accelerate the global transition to net zero in a way that brings long-term value to our people, communities, economies and the environment. Brookfield Renewable continues to make progress in these areas.

The business takes a proactive and focused approach, building on its high ESG standards and see this as complementary to creating value in its business and for its stakeholders.

This starts with people, who are the business's greatest asset: Brookfield Renewable is focused on their safety, wellbeing, and development. Health and safety remains a constant priority, particularly in a period where the business is growing into new technology areas. Brookfield Renewable's work also contributes to global low-carbon economy job creation, supporting the capability development needed to further the transition to a net zero economy.

Brookfield Renewable focuses on efforts to protect the environment near its operations, engage with and provide value to the communities in which it operates, and reinforce its commitment to conducting business in an ethical and responsible manner that respects human rights.

Looking forward

The business is now firmly established as one of the leading owners and operators of decarbonization assets worldwide and is positioned well to capture the accelerating growth trends in the sector. The growth in clean energy and decarbonization technologies will be the critical factor in the world's wider transition to a net-zero economy. The next decade will be key to making this happen. We look forward to accelerating the energy transition and growing the business in unison.

Sincerely,

2022 ESG Report | Brookfield Renewable Corporation

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