RWE : Emissionsinventar und Methodologie 2019 (auf Englisch)

Greenhouse Gas

Emission Inventory &

Calculation Methodology

Quantification and reporting of greenhouse gas emissions in accordance with the Corporate Greenhouse Gas Protocol

December 2021

Content
Executive Summary.....................................................................................................................................................	1
Introduction.....................................................................................................................................................................	1
About RWE and its value chain ..............................................................................................................................	2
Organisational boundary..........................................................................................................................................	3
Emissions Accounting and Reporting Methodology ...................................................................................	3
Scope 1.........................................................................................................................................................................	4
Scope 2.........................................................................................................................................................................	5
Scope 3.........................................................................................................................................................................	5
Category 1: Purchased goods and services...........................................................................................	5
Category 2: Capital goods..............................................................................................................................	6
Category 3: Fuel and energy-related activities ....................................................................................	6
Category 4: Upstream transportation and distribution ...................................................................	6
Category 5: Waste generated in operations..........................................................................................	6
Category 6: Business travel............................................................................................................................	7
Category 7: Employee commuting.............................................................................................................	7
Category 8: Upstream leased assets........................................................................................................	7
Category 9: Downstream transportation and distribution .............................................................	7
Category 10: Processing of sold products .............................................................................................	7
Category 11: Use of sold products.............................................................................................................	8
Category 12: End-of-life treatment of sold products .......................................................................	8
Category 13: Downstream leased assets...............................................................................................	8
Category 14: Franchises .................................................................................................................................	8
Category 15: Investments ..............................................................................................................................	9
Responsibilities and processes ..............................................................................................................................	9
Next steps ........................................................................................................................................................................	9
Glossary .........................................................................................................................................................................	10
References....................................................................................................................................................................	10
Contact...........................................................................................................................................................................	11
Annex..................................................................................................................................................................................	2

Executive Summary

Greenhouse gases (GHG) trap heat and make the planet warmer. The resulting change of our climate is one of the defining issues of our times. RWE is acting - we reduced our emissions from power generation year on year, halving the emissions from our power plants from 2012 to 2019. RWE is committed to the targets of the 2015 Paris Agreement: Limiting global temperature increase to well below 2 degrees Celsius above pre-industrial levels, while pursuing efforts to limit the increase to 1.5 degrees.

For RWE it all starts with transparency on our emissions. This document outlines our key rationales in accounting our greenhouse gas emissions. The inventory is based on the results of a Group-wide assessment in 2020 and will be reviewed on a regular basis. This process is steered by the Sustainability team at RWE AG and conducted in close collaboration with relevant functions within RWE Group. Emissions have been part of our external reporting for years: The first reporting using the internationally renowned Greenhouse Gas Protocol Standard has been in 2009. Based on this methodology we publish GHG figures on an annual basis.

Introduction

In the past century the concentration of greenhouse gases in the atmosphere has grown. As such increasing greenhouse gas emissions pose a threat to the wellbeing and welfare of humankind. Global warming has diverse negative impacts such as rising sea levels, increased risks of flooding, drought and other extreme weather events.

Thus, at the 2015 Climate Summit in Paris the international community agreed to limit global temperature increase to well below 2 degrees Celsius, while pursuing efforts to limit the increase to 1.5 degrees. This can only be achieved if global greenhouse gas emissions are rapidly reduced. As a power generating company it is RWE's purpose to provide energy for a sustainable life. We recognize the responsibility of our sector to enable the transition to a low-emissions future. Part of this responsibility is transparency on our corporate emissions footprint.. Understanding our own footprint is crucial to steer our way into a sustainable future, to engage with internal and external partners and stakeholders and take appropriate steps to keep cutting emissions.

This document outlines RWE's approach in accounting greenhouse gas emissions. It describes the calculation boundaries, methodologies, assumptions and key references used in the preparation of our RWE emission inventory. We are using the internationally renowned Greenhouse Gas Protocol Corporate Standard and its additional guidance docu- ments. The Greenhouse Gas (GHG) Protocol is a multi-stakeholder partnership of busi- nesses, nongovernmental organizations (NGOs), governments, and others convened by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD). Launched in 1998, the GHG Protocol seeks to develop internationally

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accepted GHG accounting and reporting standards and tools to promote their adoption worldwide.

The inventory presented in this document is the outcome of a recent assessment that helped us to identify the most relevant sources and categories of emissions within our corporate value chain.

About RWE and its value chain

RWE is one of the world's leading renewable energy companies. We are an all-rounder in electricity generation at the forefront of creating a sustainable energy system. In addition, we will ensure security of supply with our flexible power plants. To this end, we will invest billions in wind energy, photovoltaics and storage technologies, enter the green hydrogen production business, and phase out electricity generation from coal.

RWE is currently structured in five segments: (1) Offshore Wind, (2) Onshore Wind / Solar, (3) Hydro / Biomass / Gas, (4) Supply & Trading and (5) Coal / Nuclear. Segments (1) to (4) represent our core business. This is where we want to grow. In (5), we have pooled our German electricity generation from lignite, hard coal and nuclear fuel, which will lose importance due to exit roadmaps established by the state.

Caring about climate has been part of our strategy for years with ambitious emission reduction targets in our industry. Compared to 2012 we have reduced our power plant emissions by more than 60% by closing down 12 GW of coal-fired power generation capacity. We will continue that transition journey. For the next years we brought forward targets for both our direct and indirect emissions. Compared to 2019 levels we plan to reduce our emissions intensity from Scope 1 and 2 50% by 2030. Within our Scope 3 we intend to reduce our emission by 30% compared to 2019 levels. We are glad that these 2030 targets have been approved by the Science Based Targets initiative in December 2020. For 2040 we plan to be net zero - this encompasses all three Scopes. On the way there, our ambition is to reduce our emissions in line with a 1.5°C compliant pathway.

To this end, we will rapidly expand renewable energy, make more use of storage technologies and use CO2-neutral fuel to produce electricity. With our strategy 'Growing Green', RWE is massively stepping up the pace and is investing €50 billion gross in its core business until 2030. That means an average of €5 billion gross each year for offshore and onshore wind, solar, batteries, flexible generation and hydrogen. The company is thus expanding its portfolio by 25 gigawatts net to 50 gigawatts (GW) in the attractive markets of Europe, North America, and the Asia-Pacific Region. Net capacity additions are aimed to be on average 2.5 GW per year. This also includes green hydrogen: By the end of the decade, RWE aims to build up its own net 2 GW of electrolyser capacity. RWE is involved in over 30 projects in the promising field of hydrogen: The company is one of the few to be involved in projects along the entire hydrogen value chain.

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Organisational boundary

Defining the organisational boundary is a key step in corporate GHG accounting. This step determines which operations are included in the company's organisational boundary and how emissions from each operation are consolidated by the reporting company. As detailed in the GHG Protocol Corporate Standard, a company has three options for defining its organisational boundaries: Equity share, financial control and operational control. In line with its approach for financial accounting, RWE has opted for the operational control approach for its emission inventory.

Under the operational control approach, a company accounts for 100 percent of the GHG emissions over which it has operational control.

Emissions Accounting and Reporting Methodology

This report encompasses the following greenhouse gases:

• Carbon Dioxide (CO2),
• Methane (CH4),
• Nitrous oxide (N2O),
• Hydrofluorocarbons (HFCs),
• Perfluorinated compounds (PFCs),
• Sulfur hexafluoride (SF6),
• Nitrogen trifluoride (NF6).

In accordance with the RWE inventory management plan the organization is regularly reviewing its GHG emission sources and organisational and operational boundaries used to account for emissions. In this process RWE is applying the principles of the Greenhouse Gas Protocol Corporate Standard:

• Relevance: The boundaries of GHG emissions accounting and reporting should appropriately reflect the company's emissions and serve the business goals and decision-making needs of the company both internally and externally.
• Completeness: The emissions sources within the specified organisational and operational boundaries should be reported.
• Consistency: To ensure that emission data can be tracked and compared within the reporting company over time, consistent application of accounting practices and quantification methodologies is essential.

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