WEC Energy : Pathway to a Clean Energy Future

Pathway to a

Clean Energy Future

2 0 2 2 C L I M AT E R E P O R T

A message from company leadership

Our industry has a key role to play in the clean energy transition. At WEC Energy Group, we're focused on leading the way with a balanced, sustainable approach - investing in low-emitting and carbon-free generation, promoting research and development, and delivering affordable, reliable and clean energy to our customers.

In this report, we provide details on our climate governance and strategy, grounded in thorough research and analysis. Our outlook spans from our current projects into future decades as we transform our energy system.

Gale Klappa

Executive Chairman

Scott Lauber

President and Chief

Executive Officer

2	PATHWAY TO A CLEAN ENERGY FUTURE

We remain committed to aggressive goals for reducing carbon emissions, including an ultimate goal of net-zero carbon from electric generation by 2050. Targeted capital investments already have led us to achieve a 45% reduction compared to 2005, even as our business has grown. To further improve our environmental footprint, we expect to use coal only as a backup fuel by the end of 2030. We're aiming for a complete exit from coal by the end of 2035.

Across our natural gas delivery business, we are working to achieve net-zero methane emissions from our distribution system by the end of 2030. We took additional important steps in early 2022, signing contracts for renewable natural gas from local dairy farms. We expect these contracts to bring us to 80% of the RNG needed to achieve our goal. Our ongoing efforts to modernize our system also are making natural gas transport cleaner and safer.

We see our customers and other stakeholders as partners in our transition. For example, with input from our customers, we've developed new pilot programs to improve the affordability and accessibility of electric vehicle charging. We continue to evaluate all capital investments in light of affordability and reliability for our 4.6 million customers. And as we retire older, fossil-fueled plants, we're dedicated to assessing and addressing the impacts to our employees and our communities.

With these values in mind, we're well-equipped to achieve our goals. Regulatory policy, economic conditions, technology, customer preferences and many other factors will impact the path we take to net zero. Yet, our commitment to truly sustainable decision-making gives us a strong foundation to build upon.

Gale E. Klappa	Scott J. Lauber
Executive Chairman	President and
	Chief Executive Officer

Table of Contents

1. Executive Summary
2. Governance

12 Strategy

29 Scenario Modeling and Analysis

1. Risk Management

1. Metrics and Targets

PATHWAY TO A CLEAN ENERGY FUTURE

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Investor engagement

We regularly engage with numerous investors on sustainability-related matters, including our GHG goals and reduction efforts.

The Transition Pathway Initiative (TPI), a global, asset-owner-led initiative has become a well-reputed source for corporate climate action benchmarking. On an annual basis, TPI assesses companies' management qualities and carbon performance against international targets set in the 2015 Paris climate agreement.

After incorporating feedback we submitted in December 2021, TPI published WEC Energy Group's 2022 Carbon Performance assessment. The graph below, included in TPI's analysis, illustrates how our pathway to net zero by 2050 aligns with global targets. TPI's modeling consists of only one pathway per scenario, whereas we use multiple pathways for our assessments.

Transition pathway

1.0

0.8				WEC Energy Group		Global: National Pledges
			Global: 1.5 Degress C		Global: Below 2 Degress C
0.6

0.4

0.2

0
2013	2015	2020	2025	2030	2035	2040	2045	2050

-0.2

This report seeks to build on the assessment of our climate and sustainability targets and expand on key areas of focus, including the share of revenues generated from renewables, plans for phasing out coal as an energy source, Paris Agreement-aligned capital expenditure plans, and Scope 3 data collection and analysis.

4	PATHWAY TO A CLEAN ENERGY FUTURE

An energy industry leader

WEC Energy Group is one of the nation's leading energy companies, with the operational expertise and financial resources to serve the Midwest region's electricity and natural gas needs safely, reliably and responsibly.

WEC Energy Group by the numbers

$31.7 billion	60% ownership	7,700 megawatts
market cap	of American Transmission Co.	of power capacity
1.6 million	71,400 miles	$39.0 billion
electric customers	of electric distribution	of asset base
3.0 million	52,100 miles	97%
natural gas customers	of natural gas distribution	regulated
	and transmission

Market cap, asset base, regulated data as of June 30, 2022. All other numbers as of Dec. 31. 2021.

PATHWAY TO A CLEAN ENERGY FUTURE

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