National Grid : Responsible Business Factsheet - 2023

National Grid's

Responsible

Business

Our commitment to a clean, affordable energy future

Investor Event - September 2023

"Our role as a responsible business is at the heart of everything we do. We remain proud of the work the company does to serve communities, the environment and our people in a responsible way."

Responsible Business Charter 2023		John Pettigrew, Chief Executive
Report Overview	Key updates - a simplified approach
•	Following the launch of our Responsible Business	•	Revised near-term Scope 1, 2 and 3 emissions targets
	Charter in 2020, we've refreshed our Charter to:		align to a 1.5°C pathway and have been validated by
	- Ensure we address the evolving demands of a		SBTi1
	clean, fair and affordable energy future	•	We've consolidated our updated commitments into 3
	- Reflect the evolution of our portfolio, the external		core pillars
	market and our stakeholders expectations		- Our Environment, Our Customers and
•	Find the full report here: Responsible Business Charter	•	Communities, and Our People
•	Our annual Responsible Business Report will report	These are underpinned by our Responsible Business
	against these commitments from 2024		fundamentals
			- Which include our approach to governance and
Our 3 core pillars		other activities that are essential to day-to-day
	business

Our Environment		Our Customers		Our People
	& Communities
Deliver a clean energy future	Support a fair and	Build the net zero workforce
affordable transition
Key commitments	Key commitments	Key commitments

• Reduce Scope 1 & 2 emissions
• • by 60% by 20301,2
  • to net zero by 2050
• Reduce Scope 3 emissions
• • by 37.5% by 20341,2
  • to net zero by 2050
• Reduce SF6 emissions
• • by 50% by 20302
• To invest c.£29bn3 directly into the decarbonisation of our networks between FY22-26

• Provide meaningful skills development
• • for 45,000 people by 2030
• Deliver 500,000 employee volunteering hours by 2030 across our communities
• Report on the benefits provided as a result of our community support
• Disclose and act on our customer satisfaction scores across our key business areas

• Aim for 35% female representation and 20% ethnicity in our management population by 2025
• Aim for 50% female representation and 40% ethnicity in our new talent population by 2025
• Aim for 50% diversity in our Group Executive and on the Board

Responsible Business fundamentals: Underpinning our core pillars and everyday operations

Governance

Network Reliability

Health & Safety

Cyber Security

Supply Chain

Ethics

1. Near term emissions reductions targets validated by Science Based Targets initiative (SBTi) as aligned to a 1.5°C pathway
2. From a 2018/19 baseline year
3. Aligned to EU Taxonomy

Our commitments (continued)

Our Environment

Achieve net zero by 2050 for

Scope 1, 2 and 3 emissions

• Our near-term emissions reductions targets have been validated by SBTi as aligned to a 1.5°C pathway
• A focus on energy consumption and travel emissions
• • Move to a 100% electric vehicle fleet3 by 2030
  • 20% reduction4 in energy consumption at our flagship offices by 2030
• Top 80% of our UK / 50% of US suppliers to commit to setting a Science Based emissions reduction Target / Roadmap by 2025/26

Protect our natural environment

• Restore by 10% in the UK, and preserve in the US our natural environment on managed land

Adapt to a changing climate

• Report on climate risks, opportunities and investment in adaptation activities

Our Customers

& Communities

Support an affordable energy transition

• Whilst we work to achieve net zero, we are committed to ensure this is delivered affordably, justly and equitably

Increasing reporting and transparency

• Continue to raise awareness, through increased reporting, of our progress on our Grid for Good employability programmes
• We will act on customer feedback and report on customer satisfaction scores across our key business areas

Our People

Invest in our people and build the skills needed to deliver the clean energy future

• Ensure all colleagues have access to learning solutions to develop the capabilities required to deliver net zero

Reflect the communities we serve

• As demonstrated by our strong diversity targets, we aspire to increase ethnic and female representation in our workforce

Lead the industry on colleague health and wellbeing

• Aim for our colleague engagement and 'Safe to Say' metrics to remain at or above the high performing norm (Korn Ferry benchmark)

Ensure all colleagues receive fair and equitable pay

• Remain committed to making sure pay is equitable for all our colleagues

Responsible Business fundamentals: Underpinning our core pillars and everyday operations

Key commitments that underpin our refreshed Charter

• Delivering energy safely, reliably and efficiently
• Working responsibly with our supply chain and our stakeholders on responsible business matters
• Embedding strong ethics and ensuring compliance in everything we do
• Investing in developing technologies and innovations that benefit our customers and society
• Ensuring both physical and cyber security risks are monitored robustly

Delivering against our refreshed approach

CASE STUDY

NY Community Offshore Wind

Our JV with RWE has submitted a bid to operate 1.3GW of capacity in the NY Bight region

• To cleanly power 500,000 homes
• Resulting in 4,600 jobs and >$3bn of economic benefit

CASE STUDY

£65m Energy Support Fund

£50m (UK) and $17m (US) pledged in Nov 2022 to assist the hardest hit households. Since last winter

• >30,500 UK households supported
• >$10m of grants awarded across New York and Massachusetts

CASE STUDY

A top employer for gender equality

Included in The Times Top 50 Employers for Gender Equality 2023

• Continue to champion DEI through employee resource groups
• Utilising AI to eliminate recruitment bias

1. Target applies to our light duty vehicles. Alongside this we will pursue the replacement of our medium- and heavy-duty vehicles with zero carbon alternatives
2. Compared to a 2019/20 baseline

2022/23 Performance Highlights4

Our Environment

70%	21%
reduction in	reduction in
Scope 1 and 2 emissions	SF6 emissions
vs 1990/91 baseline	vs 2018/19 baseline

98% of shareholders voted in favour of our Climate Transition Planat our 2022 AGM, which outlines plans to achieve 'real net zero' without the need for carbon offsets

7.5%	CDP Climate
Change 'A list'
reduction in	Rating for
Scope 1 and 2 emissions	7th consecutive year
vs FY22
Our Customers & Communities
99.99%		101,562	60,096
Network reliability		Volunteering hours	In 2023
delivered for our customers		delivered since 2020	up 157% vs FY22
£7.7bn	£	£300m
Investment		Of Interconnector income
into critical energy infrastructure		announced to be returned
with 75% aligned to EU Taxonomy		early to customers
6,590		£65m
People received skills development	Winter Support Fund
up 66% vs FY22		helping alleviate financial distress
		caused by rising energy costs in the UK and US

Our People

36.1%

81%

-1.9% UK

Of workforce	Employee engagement
female or ethnically diverse	Grid:Voice survey

£

5.1% US

50%	1,092,224
Diversity on our Board	Hours of training
	delivered to employees

Mean Gender Pay Gap5

Updated remuneration policy last year, increases focus on achievement of emissions reductions and DEI 6

1. Unless specified, data relates to the Group financial reporting period ending 31 March 2023
2. Gender Pay Gap reported data is a year in arrears in line with UK statutory Gender Pay Gap reporting
3. Directors' Annual Performance Plan includes weighting for Diversity, Equity and Inclusion (DEI). DEI metric relates to the gender and ethnic diversity of new joiners and colleagues at or above senior management level

Investor Relations - Contact details

Nick Ashworth	Angela Broad	James Flanagan
Director of Investor Relations	Senior Investor Relations Officer	Investor Relations Manager (US)
M [phone]	M [phone]	M [phone]
[e-mail]	[e-mail]	[e-mail]

Alexandra Bateman	Daniel Evans
Investor Relations Manager	Investor Relations Analyst
M [phone]	M [phone]
[e-mail]	[e-mail]

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