RWE : Sustainability Performance Report 2023

Energised by nature.

Sustainability Performance Report 2023

Highlights from 2023

45 TWh	89%
electricity from rene-	of our investments are
wable sources	in green technologies

20,135	0
employees working	serious environmental
for sustainable and	incidents
reliable energy (FTE)

Further reports

Annual Report with Non-financial Group statement 2023

Sustainability Strategy Report 2023 Sustainability Management Report 2023

Sustainability Performance Report 2023

Contents

01	Introduction	3
	Year in review	4
	About this report	5
02	Environment	6
	Climate change	7
	Biodiversity	8
	Circular economy & Waste mgmt.	8
	Electricity production and efficiency	9
	Water	10
	Pollution and air quality	11
03	Social	12
	Occupational health and safety	13
	Diversity, equity and inclusion	14
	Social responsibility	15
	Employment	16
	Training and skills development	17
04	Governance	18
	Compliance	19
	Tax	20

01 Introduction

Year in review	4
About this report	5

01	02
Introduction	Environment
Year in review

03	04
Social	Governance	RWE Sustainability Performance Report 2023

Introduction

Year in review

We are RWE. Our company is at the forefront of the energy transition. Our operations around the globe ensure that people and businesses get the electric power they need in increasingly climate-friendly ways. Following the outbreak of the war in Ukraine in 2022, the situation on the energy markets was turbulent. At RWE, we worked hard to prevent a gas and electricity supply crisis and the situation eased somewhat in 2023. Despite the challenging environment, we hit a number of milestones in our growth strategy in the year under review.

Our renewable power generation increased. As of 31 De- cember 2023, we had power generation assets with a total capacity of 44.4 GW. Compared with 2022, our generation capacity increased by 5.1 GW. At 39 %, renewables accounted for the largest share of our generation capacity at the end of 2023. Natural gas was in second place with 36 %. Our most important renewable energy source is wind power (11.9 GW), followed by photovoltaics (4.2 GW), biomass (0.8 GW) and hydropower (0.5 GW).

Our electricity production from renewables increased by

27 %, driven in particular by photovoltaics. This is due to the fact that we acquired the US energy company Con Edison Clean Energy Businesses on 1 March 2023 and have included it in our figures since then. The aforementioned

acquisition led to a 546 % increase in photovoltaic production compared to the previous year. In wind power, we recorded an increase of 9 %, primarily due to more favorable weather conditions and the continued expansion of our generation capacities.

More electricity from renewables than from coal for the first time. Of the total electricity we produced last year,

35 % came from renewable sources, which exceeded the share of coal (30 %) for the first time in the company's history. This milestone is testimony to the fact that we are pressing ahead with our ambitious 'Growing Green' strategy and making good progress with the transition to renewable energy.

In our mining area west of Cologne, the Rhenish mining region, we extracted 48.2 million metric tons of lignite last year. This is 17.1 million tons less than in 2022 - a consequence of the sharp drop in electricity production at our lignite-fired power plants.

Lower emissions, and a clear transformation path. Last year, our power stations emitted around 62 million metric tons of carbon dioxide equivalent, i. e. 23 million metric tons less that the year prior. This was attributable to lower emissions from conventional power generation, in particu- lar. Our specific emissions, i.e. CO2 emissions per megawatt hour of electricity generated, decreased from 0.55 metric tons to 0.48 metric tons.

Of our investments in the reporting period, 89 % were taxonomy -aligned. This means that the funds were allocated to activities which are classified as sustainable under the EU taxonomy regulation. Our original goal was to achieve 90 % taxonomy-aligned CapEx by 2030. However, in 2023 we

raised this target to 95 %. To emphasise our efforts to transform, we have updated our climate targets with a clear commitment to a 1.5-degree aligned pathway: we are aiming to reduce our total Scope 1 and 2 emissions by 67.6 % and Scope 3 emissions by 42 %. 2022 will serve as a new base year.

A company that invests in its people - aiming for a safe and inclusive organisation. Our workforce remains committed to our purpose - this is reflected in yet another increase in our engagement index, which measures the motivation of our workforce in a Group-widesurvey.

In the year under review, our engagement index was up by

4 % on the previous year, coming in at 88 %. This exceeded our target of 80 %, meaning that all key indicators have improved based on a Group-wide participation rate of 78 % (2022: 74 %).

At RWE, we are committed to high standards in occupational health: The key performance indicator established for occupational safety is the number of work-related accidents among in-house and contract staff resulting in at least one day of absence for every 1 million work hours (LTIF). The LTIF remained constant at the previous year's level of 1.5, outperforming the target within the RWE Group of 1.9. No fatal accidents occurred during the period under review.

4

01	02	03	04
Introduction	Environment	Social	Governance	RWE Sustainability Performance Report 2023
About this report

Introduction

About this report

As the world faces increasing environmental and social challenges, the importance of sustainable business practices cannot be overstated. To ensure long-term success, it is essential for companies to be transparent about their impact on the environment and society. This report provides an overview of our main metrics when evaluating the success of our approaches and our strategy.

At RWE, we are proud to have been generating electricity for over 125 years now. A lot has changed since the day our company produced its first kilowatt hour - including the way we think about sustainability. Today, RWE is transforming into a global player in renewable energy.

With our 'Growing Green' strategy, we will invest over € 55 billion in renewables. Our growth strategy is supplemented by our nine priority topics on sustainability - climate change, biodiversity and recultivation, innovation, circular economy, diversity, occupational health and safety, social responsibil- ity, compliance and ethics, and sustainable investments. This report covers these topics and other issues where we and our stakeholders see that our business activities have the potential to have an impact.

Sustainability is at the heart of what we do. We believe that our responsibility is to lead the way to a net-zeroworld. Power generation companies face a number of unique

challenges when it comes to sustainability. One of the biggest is the significant environmental impact associated with generating electricity, particularly through the burning of fossil fuels such as coal, oil, and natural gas. This impact includes air and water pollution, greenhouse gas emissions, and the depletion of natural resources. While renewable energy is generally considered to be more sustainable than fossil fuels, there are still challenges associated with scaling up renewable energy production and integrating it into the grid.

We believe that by being open and honest about our performance, we can build trust with our stakeholders. We recognise that stakeholders' expectations for transparency about sustainability practices are increasing. This report is a key part of our commitment to transparency and accountability. To ensure the quality and comparability of our sustainability disclosures, we have adhered to the standards issued by organisations such as the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate- Related Financial Disclosures (TCFD) when preparing this information. These standards provide a framework for reporting on sustainability issues and help us to ensure that our disclosures are both relevant and reliable. The GRI has published a comprehensive set of sustainability reporting standards that cover economic, environmental and social performance. The SASB focuses on sustainability disclosure standards that are relevant to specific industries. The TCFD makes recommendations on climate-relatedfinancial disclosures to help companies understand and disclose the risks and opportunities associated with climate change.

By applying these standards, we can provide our stakeholders with consistent and comparable information about our sustainability performance, which helps to build trust and enhance our reputation. We hope that this report will serve as a valuable resource for our stakeholders and provide insights into our sustainability practices and performance.

For this report, we have collected and internally validated the key metrics for our most material sustainability topics. These topics help us to integrate sustainability across our businesses. We carefully evaluate the added value of each of the metrics and make changes when appropriate. If we do not report previous year's values, this can be for several reasons: in most cases we did not collect this figure or did not collect it in the same way as for 2023. We do not provide detailed justification for individual figures.

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02 Environment

Climate change	7
Biodiversity	8
Circular economy & Waste mgmt.	8
Electricity production and efficiency	9
Water	10
Pollution and air quality	11

01	02	03	04
Introduction	Environment	Social	Governance
	Climate change

Environment

Climate change

Metric	Unit	2023	2022	2021
CO2 emissions of our power stations	million mt CO2e	60.6	83.0	80.9
Direct greenhouse gas emissions - Scope 11	million mt CO2e	61.9	85.4	86.9
Indirect energy-related greenhouse gas emissions - Scope 2 (location-based)1	million mt CO2e	0.2	0.1	2.7
Indirect upstream and downstream greenhouse
gas emissions - Scope 3	million mt CO2e	21.6	23.8	22.7
of which: Category 1 - Purchased goods and services2	million mt CO2e	2.1	1.5	0.9
of which: Category 2 - Capital goods2	million mt CO2e	2.8	1.2	1.4
of which: Category 3 - Fuel and energy-related activities1	million mt CO2e	3.1	4.5	6.5
of which: Category 4 - Upstream transportation and distribution3	million mt CO2e	<0.1	<0.1	0.3
of which: Category 5 - Waste4	million mt CO2e	0.2	0.2	0.1
of which: Category 6 - Business travel	million mt CO2e	<0.1	<0.1	<0.1
of which: Category 7 - Employee commuting	million mt CO2e	0	0	<0.1
of which: Category 9 - Downstream transportation and distribution	million mt CO2e	0	0	<0.1
of which: Category 10 - Processing of sold products	million mt CO2e	0	0.1	0.1
of which: Category 11 - Use of sold products	million mt CO2e	10.8	12.8	13.4
of which: Category 15 - Investments5	million mt CO2e	2.4	3.5	-
Biogenic emissions1	million mt CO2e	4.0	-	-
Carbon intensity (Scope 1 and 2)	mt CO2e per MWh	0.48	0.55	0.50
Average Group power plant carbon intensity	mt CO2 per MWh	0.341	0.354	0.410
Share of hybrid / electric vehicles in the company car fleet (for employees)	%	65	41	33
Renewable capacity share in total capacity (pro rata)	%	35	32	28

1. Prior year figures have been restated due to a change in the calculation method applied. Emissions from power supply contracts have therefore been reported under category 3.3 since 2022 rather than Scope 1, provided RWE controls the deployment of the power plants. Before 2022, our Scope 1 emissions contained biogenic emis- sions, which are reported separately as of 2023. Since 2022, Scope 2 figures have been retroactively recorded for each location individually, making them more precise.
2. In the year under review, we updated the way in which we calculate certain renewables product groups, i. e. capital goods, by taking a material / usage based approach and applied the relevant emissions factors. The calculation process for all other product groups has not changed compared to 2022.
3. Includes adjusted figures since 2023 to avoid double counting with category 3.3. This change has been retroactively implemented for fiscal 2022.
4. As of 2023, we now also include emissions from waste for third-party processing in addition to third-party disposal. This change has been retroactively implemented for fiscal 2022.
5. Retroactively included in reporting since 2022.

RWE Sustainability Performance Report 2023

Accounting principles

• CO2 emissions of our power stations: this includes emissions under the EU Emission Trading Scheme or equivalent systems. Furthermore, it includes emis- sions for our power plant in Turkey.
• Greenhouse gas emissions (Scope 1, 2 and 3): we report our greenhouse gas emissions in accordance with the Green- house Gas Protocol Standard and based on our internal inventory / meth- odology. Our Scope 1 emissions mainly consist of our power plant emissions, but also encompass further greenhouse gases beyond CO2. Scope 1 includes fuels used in company cars, leased ships and other minor sources. We report Scope 2 emissions using the location- based approach only. Our Scope 3 emissions accounting is based on an analysis of potential sources in our up- stream and downstream value chain. All remaining four categories are deemed irrelevant for our business but are re- viewed regularly. More information can be found atwww.rwe.com/emissions.
• Average Group power plant carbon in- tensity: this figure shows the average carbon intensity of our power plant fleet expressed in metric tons of carbon diox- ide per megawatt of installed capacity for every full-load hour. This key figure is considered in Executive Board remuner- ation.

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01	02	03	04
Introduction	Environment	Social	Governance
	Biodiversity
	Circular economy & Waste mgmt.

Environment

Biodiversity

Metric		Unit	2023	2022	2021
Serious environmental incidents		Number		0	0	0

Coverage of environmental management systems

%

99.1

100

100

Environment

Circular economy & Waste management

RWE Sustainability Performance Report 2023

Accounting principles - Biodiversity

• Serious environmental incidents: inci- dents with serious ramifications that are of substantial public interest and can only be controlled or managed with ex- ternal support.
• Environmental management system coverage: External certification or inter- nal surveillance audits. In 2022 exclud- ing US operations due to a reorganiza- tion process.

Accounting principles - Circular economy

Metric

Total weight of waste diverted from disposal

of which: Hazardous waste

of which: Non-hazardous waste

Total weight of waste for disposal

of which: Hazardous waste

of which: Non-hazardous waste

Radioactive waste from nuclear power plants

Spent fuel rods

Ash for external disposal

Ash recovery

Gypsum for external disposal

Gypsum recovery

Recovery of ash as a by-product

Recovery of gypsum as a by-product

Recovery rate (core business)

Unit2023

thousand mt638

thousand mt29

thousand mt609

thousand mt607

thousand mt	21
thousand mt	586
mt	338
mt	112
thousand mt	13
thousand mt	217
thousand mt	0
thousand mt	0
thousand mt	245
thousand mt	578
%	83

20222021

759737

3838

721699

651584

3516

616568

320200

105200

910

235241

33

20

477323

714791

• -

• Recovery: any operation involving prod- ucts, components of products or materi- als that have become waste and are used in place of new products, compo- nents or materials.
• Since 2021, amounts for ash disposal have not been considered in the total weight of waste for disposal. For these specific amounts, we have permit obli- gations restricting our flexibility to influ- ence the treatment. Thus disposal fig- ures for 2022 and 2021 changed retro- spectively.
• Recovery rate (core business): share of reused and recovered - not disposed - materials from all measured outflow (all waste, scrap, by-products, reused / re- furbished materials etc.) in our core busi- ness (Lignite and Nuclear not in scope).

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01	02	03	04
Introduction	Environment	Social	Governance
	Electricity production and
	efficiency

Environment

Electricity production and efficiency

Metric		Unit	2023	2022	2021
Power generation		GWh		129,701	156,794	160,547
Power generation from renewables		GWh		45,241		35,499		31,964
Use of lignite		million mt		43.91		60.35		56.83
Use of gas		billion m3		7.82		9.38		9.71
Use of solid biomass		million mt		1.72		2.33		2.83
Use of nuclear fuels		mt		0		22.2		48.1
Use of oil		million mt		0.03		0.02		0.04
Use of waste		million mt		2.00		2.08		2.28
Use of hard coal		million mt		1.35		2.40		2.55
of which: Hard coal mined in the USA		%		35.47		18.97		20.61
of which: Hard coal mined in South Africa		%		63.62		51.69		1.72
of which: Hard coal mined in other states1		%		0.91		29.35	77.67

1 Prior year figures for 'other states' retroactively changed to align with new allocation in 2023 for supplying countries.

Metric		Unit	2023	2022	2021
Average RWE wind farm utilisation Onshore, Germany		%		21	19	17
Average RWE wind farm utilisation Onshore, United Kingdom		%		26		27		27
Average RWE wind farm utilisation Onshore, Netherlands		%		30		28		30
Average RWE wind farm utilisation Onshore, Poland		%		28		28		27
Average RWE wind farm utilisation Onshore, Spain		%		22		22		24
Average RWE wind farm utilisation Onshore, Italy		%		24		22		24
Average RWE wind farm utilisation Onshore, Sweden		%		28		30		29
Average RWE wind farm utilisation Onshore, USA		%		29		33		32
Average RWE wind farm utilisation Offshore, Germany		%		241		37		35
Average RWE wind farm utilisation Offshore, United Kingdom		%		40		39		35
Average RWE wind farm utilisation Offshore, Sweden		%		47		45		47

1 Volume losses due to grid operator curtailments.

RWE Sustainability Performance Report 2023

Accounting principles

• Use of fuel, e.g. lignite, gas etc.: amount of fuel we used to generate electricity in the year under review.

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01	02	03	04
Introduction	Environment	Social	Governance
	Water

Environment

Water

Metric		Unit	2023	2022	2021
Total volume of water withdrawal		million m³		4,662	4,748	4,749
of which: Surface water		million m³		1,446		1,603		1,520
of which: Groundwater		million m³		483		500		502
of which: Water from third parties		million m³		4		4		4
of which: Seawater / brackish water		million m³		2,729		2,641		2,723
Total volume of water discharge		million m³		4,505		4,591		4,580
of which: Surface water		million m³		2,736		3,383		3,382
of which: Water to third parties		million m³		36		38		38
of which: Seawater / brackish water		million m³		1,733		1,170		1,160
Total water consumption		million m³		157		157		169
Specific water consumption		m³/MWh		1.21		1.00		1.05

RWE Sustainability Performance Report 2023

Accounting principles

• The water category definitions are based on GRI 303: Water and effluents (2018).
• Water withdrawal: this includes all water resources we either withdraw directly from surface water, groundwater or seawater.
• Water discharge: this includes all planned and unplanned discharges of water, e.g. water, waste water and cool- ing water which is directly discharged into surface waters or into brackish wa- ter areas (estuaries).
• Specific water consumption: standard- ised to electricity generation (excluding contracted power plants).

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