Powering a Resilient Future: 2019 Climate Change Disclosure Report

Sustainability has always been a part of who we are as a company and considering climate-related issues is integral to our approach to managing all aspects of our business. We are pleased to share our 2019 Climate Change Disclosure Report, Powering a Resilient Future, aligned with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This report is our second climate change disclosure and provides a holistic view on how we are positioning ourselves for a low-carbon future.

We’re pleased to share this report to address the growing public interest regarding climate change preparedness and meet the evolving disclosure expectations from our investors, employees and stakeholders. This report offers insight on our climate-related metrics and targets, corporate governance structure, identified climate risks and opportunities, and mitigation strategies as we position our assets for success through 2040 and beyond. Additionally, this report highlights the impacts of our investments in innovation, including in carbon conversion technologies like C2CNT, as well as our digitization strategy to enhance data analytics and learning through AI.

Corporate Governance

We believe effective corporate governance supports our ability to address risk, capitalize on opportunities and create long-term shareholder value. Topics in this section include:

• Organizational Structure

Managing Climate Risks and Opportunities

We are actively managing our climate-related risks and opportunities through our long-term business planning and enterprise risk management (ERM) processes. Topics in this section include:

• TCFD Framework
• Climate-related Opportunities
• Climate-related Risks

Climate Change Scenarios

We are using the International Energy Agency’s (IEA) scenario model and 2018 data for testing the resilience of our long-term strategy. Topics in this section include:

• Overview of IEA 2018 Scenarios
• Testing Our Strategy Resilience
• Carbon Conversion

The information contained in this report reflects Capital Power’s commitment to deliver long-term value for our shareholders and stakeholders. We are future-focused, agile and actively supporting the energy transition underway to create a low-carbon, sustainable future for generation to come. Our long-term strategy is based on three foundational pillars which position us to deliver Responsible Energy for Tomorrow. These include:

• Investing in emission-free renewables: We are currently building new facilities in Canada and the U.S. with future aspirations to integrate storage technologies.
• Investing in critical natural gas generation: We are actively acquiring key facilities in Canada and the U.S., working to optimize unit efficiencies and planning to reduce our emissions profile using carbon capture, utilization and storage (CCUS) technologies such as carbon conversion, as we expect them to mature and advance in the future.
• Transforming Heritage Assets: We are transitioning our heritage coal generation to be 100% natural gas capable, alongside completing a 12% emissions reduction program and advancing carbon conversion technologies.

In addition to our 2019 Climate Change Disclosure Report, we have released our inaugural 2019 Integrated Annual Report, Powered for Tomorrow. This report combines our financial, environmental, social and governance (ESG) disclosures to provide a comprehensive view of our corporate priorities and performance.