National Grid : Responsible Business Report 2022 Factsheet

John Pettigrew Chief Executive

Responsible Business Report 2021/22

A clean, fair and affordable energy future

June 2022

National Grid - Investor Relations

'At National Grid, being a responsible business sits at the very heart of what we do. Our people tell us they are proud of the responsibility that comes from our central role in everyday lives of the communities we serve.'

Report overview

Access the full report:Responsible Business Report 21/22which summarises our progress against our Responsible Business Charter pillars for 21/22:

• The environment
• Our people
• Our communities
• The economy
• Our governance

We have released our first Climate Transition Plan, outlining:

• Our action plan to achieve our emissions targets
• The concept of 'real zero' - our aim to achieve zero emissions by 2050 without relying on carbon offsetting measures

And our first Fair Transition Statementwhich outlines what we believe our role can be in ensuring a fair and affordable transition.

The Energy Transition Company

Capital investment of £6.7bn (continuing operations) in critical infrastructure in FY21/22.

01

Deliver for our customers efficiently

• Implemented >$1.3bn in energy efficiency measures in Massachusetts over the last 3 years
• In the UK, we are returning £200m from our interconnector business early to customers
• Delivering our £400m, 3-year cost efficiency programme will continue to benefit consumers today and long into the future

02

Enabling the energy transition for all

• We've set out medium and long- term targets to reduce our Scope 1, 2 and 3 emissions and to achieve net-zeroby 2050
• OurClean Energy Visionsets out how we envisage a fossil free future in the Northeast US
  Between FY22-26 we're investing:

c.£24bn	more than 70%
of green capex1	of our 5 year framework
	c.£14bn	One of the FTSE's
	in the UK
	biggest investors
	c.£10bn	in the delivery
	of net zero
	in the US

03

Grow our organisational capability

• Following our strategic repositioning, our portfolio is now focused on electricity and enhances our role at the heart of the energy transition

Post transactions energy split2

Gas

c.30%

Electricity

c.70%

1 Capital Expenditure considered to be aligned to EU taxonomy legislation. Includes most electricity investment, including connecting clean sources of generation such as renewables and nuclear, as well as investment in reducing gas network emissions

2 Calculated as a proportion of actual FY22 asset base post completion of acquisition of Western Power Distribution, and sale of Rhode Island business and 60% interest in UK Gas Transmission & Metering

Our Governance

Highlights

The Economy

Highlights

Our Communities

Highlights

30,000

employees

(including WPD)

The Environment

Highlights

Our People

Highlights

Key commitments

• Reduce Scope 1 & 2 emissions from a 1990 baseline:

- by 80% by 2030, by 90% by 2040

- to net zero by 2050

• Reduce Scope 3 emissions from a 2019 baseline:

- by 37.5% by 2034

• Reduce SF6 emissions from our operations from a 2019 baseline:

- by 50% by 2030

Climate Transition Plan:

• Our Climate Transition Plansets out our Group GHG reduction targets, our overall pathway to 2050 and the actions we're taking now

			Lost time injury	38.6%
			frequency rate
			0.13	of our workforce
			are diverse
			number of hours worked
Key commitments	per 100,000
•	Maintain fairness across the organization for pay and make sure our pay practices do not show bias.
	We will work until pay equity is achieved for our people
•	Achieve 50% diversity in all our new talent programmes by 2025

Key commitments

• 500,000 employee volunteering hours by 2030

• Provide access to skills development for 45,000 people by 2030

Key commitments

• Maintain reinvestment in our infrastructure and demonstrate the social benefits of our capital delivery programmes

• Continue to influence our supply chain to operate as responsible businesses

- At least 75% of our top 250 suppliers will have active carbon reduction targets by 2030

Supplier Code

of Conduct (SCoC)

Key commitments

• Continue to review and adapt our governance policies to reflect and support our responsible business commitments

• Ensure the voices of our stakeholders are heard and understood by the Board

• Achieve 50% diversity in our Group Executive Committee and Senior Leadership group by 2025

National Grid plc	Find us on
1-3 Strand
London WC2N 5EH
United Kingdom

email: [e-mail] nationalgrid.com/investors