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National Grid — full event log

Every event we have on file across every reporting year. The Data-by-year tab summarises the top 10 per year; this page shows them all.

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2025· 1 event

10-14% ecosystem services improvement commitment by 2030Data confidence — high

National Grid has committed to improving ecosystem services by 10-14% across all the land it owns by 2030, covering over 1,300 locations across England, Scotland and Wales. Deployed AiDASH BNGAI platform for biodiversity assessments aligned with Defra and Natural England requirements.

sustainability_report p.1

2023· 15 events

10% Biodiversity Net Gain commitment & legal complianceData confidence — high

BNG legislation came into effect in England in February 2024. NGED has 20 active major project sites with BNG obligations, plus an additional 40 primary/grid substation sites identified for biodiversity management plans with conservation covenants secured for 30 years.

sustainability_report p.27

Became NGED subsidiary of National Grid Group plcData confidence — high

Since the RIIO-ED2 EAP was published in 2021, the business has become National Grid Electricity Distribution (NGED) operating as a business unit subsidiary of National Grid Group plc. This formation created delays with waste reduction surveys in the first year of RIIO-ED2.

sustainability_report p.10

ISO 14001 recertification until 2026Data confidence — high

NGED successfully underwent external ISO 14001 and EU Skills Permit Competence Management System (CMS) recertification audits in 2023/24. Eight minor non-conformances were closed out. New certificates issued to all applicable NGED sites.

sustainability_report p.35

Aligned to UN SDGs 11, 12 and 13Data confidence — high

NGED's environmental and sustainability actions aligned to UN Sustainable Development Goals 11 (Sustainable Cities and Communities), 12 (Responsible Consumption and Production), and 13 (Climate Action).

sustainability_report p.6

Activity-based Scope 3 approach piloted with Anthesisaffects scope 3 purchased goodsData confidence — high

Working with consultants Anthesis, NGED performed a deep dive analysis recalculating emissions for top 5 PG&S categories (representing 70% of emissions by spend) on an activity basis rather than spend-based. Categories: underground cabling (30%), construction (15%), dig and lay (9%), transformers (9%), tree trimming (8%).

sustainability_report p.18

Removed Scope 3 business travel and contractor activities from BCFaffects scope 3 co2eData confidence — high

The scope of BCF reporting changed for RIIO-ED2 and no longer includes Scope 3 carbon emissions associated with Business Travel or contractor activities. NGED currently reports only on Scope 3 Categories 1, 2, 5, 6 and 7.

sustainability_report p.14

Aligned to National Grid Group 1.5°C SBT; net zero scope 3 by 2050affects net zero target yearData confidence — high

NGED has aligned to parent company National Grid Group plc's validated 1.5°C science based target. NGED retains its original 2043 net zero target for Scopes 1 and 2 (including network losses), but Scope 3 net zero target is now 2050 under the Group target. Scope of BCF reporting also changed for RIIO-ED2 - no longer includes Scope 3 business travel or contractor activities.

sustainability_report p.10

Primary: Network electricity distribution losses reductionData confidence — high

Network losses represent the largest share of NGED's carbon footprint (~782,803 tCO2e of 827,492 tCO2e total Scope 1+2 in 2023/24). NGED's Losses Vision Statement is 'to proactively manage losses, minimising them where possible'. Interventions in 2023/24 included LV cable uprating (581km from 95mm² to 185mm²), 11kV cable uprating (652km), and replacement of 81 pre-1958 GMT transformers. Higher network utilisation from electrification is expected to increase losses.

sustainability_report p.19

Primary: Fluid-filled cables - oil leakage reductionData confidence — high

FFC leakage in 2023/24 was significantly less than the baseline 3-year ED1 average. NGED has 683km of FFC with 1,663,150 litres of oil in service; 15,032 litres leakage reduction and 550 litres recovered. Commitment to reduce FFC leakage by 50% by 2028 and remove all oil-filled cables by 2060, supported by remote pressure monitoring, perfluorocarbon tracer detection, and replacement of high-leak circuits.

sustainability_report p.22

Dependent: Supply chain decarbonisation (Cat 1 & 2)Data confidence — high

Scope 3 Cat 1+2 emissions of ~490,000 tCO2e in 2023/24 are calculated using GICS spend-based factors. NGED is moving to activity-based methodology via Anthesis project - top 5 PG&S categories (underground cabling 30%, construction 15%, dig and lay 9%, transformers 9%, tree trimming 8%) represent 70% of spend-based emissions. NGED is also requesting EPDs/LCAs from transformer suppliers and developing Project ALPACA (PAS2080-aligned) embodied carbon tool.

sustainability_report p.18

Primary: Fleet electrificationData confidence — high

Commercial fleet EV share rose to 12% (from 9% in 22/23) and leased fleet to 50% (from 25%). NGED installed EV chargers at primary substations with an ambition of c.200 chargers across 92 primary substations in 24/25. Use of a Driver Behavioural System has reduced kgCO2e per operational km. Operational road emissions remain the largest non-losses Scope 1 source.

sustainability_report p.16

Primary: SF₆ reduction and SF₆-free switchgearData confidence — high

SF₆ fugitive emissions were 8,117.67 tCO2e in 2023/24 (vs 10,402.47 baseline). NGED is working with manufacturers (Siemens/Schneider/Hitachi/Lucy) on SF₆-free apparatus and sponsoring non-SF₆ products through the ENA Notice of Conformity process. Seven non-SF₆ 145kV Live Tank Circuit Breakers are active with an eighth ready. Target: 20% reduction in SF₆ losses over RIIO-ED2.

sustainability_report p.23

Primary: Building & substation energy efficiencyData confidence — high

Building energy use emissions reduced to 8,516 tCO2e (from 16,910 baseline). Substation electricity dropped to 4,908 tCO2e (from 11,634 baseline). NGED continues to use local awareness initiatives and energy saving equipment installation across buildings and substations to further reduce energy use.

sustainability_report p.15

RIIO-ED2 SBT-aligned annual pathway met for 2023/24Data confidence — high

NGED established a pathway with annual targets for each year of RIIO-ED2. Met 2023/24 BCF targets: Total Scope 1 was 4.52% below target; Scope 1+2 ex-losses 1.45% below target; Scope 1+2 incl losses 0.08% below target.

sustainability_report p.13

£2.7m community solar investment by 2028Data confidence — high

NGED committed to invest £2.7m by 2028 in solar panels for schools and community buildings. First two installations completed at Ark Kings Academy and Ark Victoria Academy in Birmingham. Community Matters Fund provided £500,000 to 103+ local charities in 2023/24.

sustainability_report p.34

2022· 54 events

Primary: Reduce fugitive natural gas emissions via network modernisationData confidence — high

Investing in network modernisation to reduce fugitive natural gas emissions from US gas distribution and increase safety/reliability. Long-term goal to serve 10-20% of gas demand with renewable natural gas (RNG) by 2030, reaching 100% fossil-free gas by 2050 via mix of green hydrogen and RNG.

sustainability_report p.21

Dependent: Purchased goods & services — supplier engagementData confidence — high

Scope 3 Cat 1 is 6,747 ktCO2e (22% of Scope 3). Working with top 250 suppliers — target 75% to have active carbon reduction targets by 2030 (54% achieved in 2021/22, up from 49%). Integrating carbon as a weighted element within design and tender decision-making (10% of supplier score). CDP Supplier Engagement Leader; 93% of suppliers requested responded to CDP Climate Change Supply Chain programme.

sustainability_report p.45

Connecting renewables and growing US renewables businessData confidence — high

In 2022/23 connected 686 MW of renewable capacity to networks (132 MW UK ET/ED, 554 MW US). Through National Grid Renewables (US) own 929 MW of onshore wind and solar, with 823 MW in construction. Community Offshore Wind JV with RWE for ~3 GW NY offshore wind seabed lease. Interconnectors total capacity 6.4 GW, building Viking Link to Denmark (will bring to 7.8 GW). UK ET delivering 17 ASTI projects to enable government's 50 GW offshore wind target by 2030. Renewable energy purchased: 13% of total in FY23 (16% UK, 2.4% US).

sustainability_report p.11

Dependent: Customer use-of-sold gas decarbonisation (Clean Energy Vision)Data confidence — high

Use of sold products dominates Scope 3 (17,973 ktCO2e in FY23 US). US Clean Energy Vision (April 2022) targets fossil-free gas system by 2050 via four pillars: energy efficiency; targeted electrification + networked geothermal; hybrid electric-gas systems; 100% fossil-free gas (RNG + hydrogen). Heat pump installations in 8,400+ homes in 2022 (2x growth). Developing clean hydrogen blending facility in Hempstead NY (operational 2025). Geothermal pilot approved by MA Department of Public Utilities.

sustainability_report p.13

Dependent: Use of sold product (gas & electricity sold to customers) decarbonisationData confidence — high

Scope 3 Cat 11 (Use of Sold Products) is the largest Scope 3 category at 18,947 ktCO2e (63% of Scope 3). Strategy aligned to clean energy vision: efficiency programmes, fossil-free gas (RNG + green hydrogen blending), hybrid electric-gas heating, targeted electrification (heat pumps). 100% fossil-free gas network by 2050.

sustainability_report p.18

Renewable electricity scaling via on-site solar, PPAs and EACsData confidence — high

Renewable electricity usage grew from 12% in 2021 to 21% in 2022. The company published a Renewable Energy Implementation Guidebook in March 2022 covering on-site solar PV, solar hot/steam, on-site and off-site PPAs coupled with EACs aligned to GHG Protocol Scope 2 quality criteria. A Renewable Energy Project Pipeline launched in 2022 with ~20 bottling partners and 13 concentrate plants developing 2023-2025 renewable energy plans. New generation came online in Europe, Latin America, Philippines, India and Middle East.

sustainability_report p.34

Primary: Manufacturing energy efficiency and renewable energy in plantsData confidence — high

Manufacturing and facility emissions account for ~10-15% of value chain GHG. Example: Ballina, Ireland concentrate facility delivered 29% energy reduction (2019-2022), bringing emissions back to 2011 levels via Industry 4.0 investments. System-wide renewable electricity reached 21% in 2022.

sustainability_report p.34

Primary: Reduce electricity transmission line lossesData confidence — high

Scope 2 emissions arise primarily from electricity network line losses. Will efficiently connect renewables and continue building interconnectors to support wider decarbonisation of electricity markets. Deploying SmartWires technology to increase UK transmission capacity by 1.5 GW. Targeting deep decarbonisation of UK electricity generation by 2035 and NY/MA by 2040 to reduce line losses to near-zero.

sustainability_report p.21

Sale of Narragansett Electric Company (NECO) to PPLData confidence — high

Sold Rhode Island electricity transmission and gas/electricity distribution business (NECO) to PPL. Expected to complete in Q1 2022/23.

sustainability_report p.4

Sale of Rhode Island (Narragansett Electric) business completedData confidence — high

Sale of US Rhode Island electricity and gas business (Narragansett Electric Company) finalised in May 2022. Prior year comparatives have been restated to reflect this disposal.

sustainability_report p.50

Sale of 60% UK Gas Transmission & Metering completedData confidence — high

Sale of majority interest (60%) in UK Gas Transmission and Metering business finalised in January 2023. Data excluded from FY23 reporting; baselines restated.

sustainability_report p.50

GHG baselines restated for portfolio changes and GWP updatesaffects scope 1 co2eData confidence — high

Prior year GHG comparatives adjusted to reflect disposals (Rhode Island, UK Gas Transmission) and acquisition (UK ED). Also updated Global Warming Potential factors to align with IPCC AR5.

sustainability_report p.14

Scope 3 SBTi-validated target: 37.5% by 2033/34affects scope 3 co2eData confidence — high

Reduce Scope 3 GHG emissions across entire value chain 37.5% by 2033/34 from a 2018/19 baseline. Scope 1&2 SBTi-validated (well below 2°C pathway): 80% by 2030, 90% by 2040, net zero by 2050.

sustainability_report p.14

Climate Transition Plan published (June 2022)Data confidence — high

One of the first FTSE 100 companies to publish a detailed Climate Transition Plan. Approved by 98% of shareholders at 2022 AGM advisory vote. Commits to updating by no later than 2025.

sustainability_report p.14

Aligned to UN SDGs 5, 7, 8, 13Data confidence — high

Responsible Business Charter aligned to four UN SDGs: SDG 7 (Affordable and Clean Energy), SDG 13 (Climate Action), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth). Signatory to UN Global Compact.

sustainability_report p.8

CDP A List 2022Data confidence — high

Achieved 'A' grading on CDP Climate Change for the seventh consecutive year.

sustainability_report p.3

10% environmental value improvement target & Blue Recovery Leaders GroupData confidence — high

Committed to improve environmental value of non-operational land in UK ET by at least 10% by 2026; 4.63% improvement to date. Joined Blue Recovery Leaders Group with WWT to help create 100,000 hectares of new/restored wetlands. Reviewing approach in response to Kunming-Montreal Global Biodiversity Framework and TNFD.

sustainability_report p.18

£65m Energy Support Fund pledgedData confidence — high

Pledged £50m UK and $17m US (£65m total) energy support fund in November 2022 to help most vulnerable customers during energy crisis.

sustainability_report p.22

Stand Up For Safety campaign launched following fatalitiesData confidence — high

Following two work-related fatalities in 2022 (May Massachusetts electrocution, September NY contractor bee sting), launched new Group-wide safety policy and 'Stand Up For Safety' strategy with four principles: Safe to Say, Safe Choices, Safe to Stop, Safe to Learn.

sustainability_report p.4

45,000 people skills development by 2030Data confidence — high

Commitment to develop skills for the future, with focus on lower-income communities, providing access to skills development for 45,000 people by 2030 (from 2020). 11,823 upskilled to date.

sustainability_report p.8

Adopted IPCC AR5 GWP factorsaffects scope 1 co2eData confidence — high

Updated global warming potential (GWP) factors to align with IPCC Fifth Assessment Report (AR5) and GHG Protocol best practice.

sustainability_report p.17

2015 base year re-baselined in 2022Data confidence — high

In 2022, we undertook a re-baselining exercise for our 2015 emissions to ensure our base year data is as complete and accurate as possible. This resulted in updated base year emissions figures for the science-based target and CDP response.

sustainability_report p.50

Offsets used only for air travel; no durable removals programme disclosedData confidence — high

Air travel is the only area of the business currently using carbon offsets to mitigate immediate impact — all emissions from air travel (7 ktCO2e in FY23) are offset. No durable carbon removals (DAC, BECCS, biochar) disclosed. Focus is on direct reductions through leak-prone pipe replacement, SF6 reduction, EV fleet, and supply-chain engagement rather than relying on removals/offsets.

sustainability_report p.16

Primary: SF6 leak reduction and gas alternativesData confidence — high

SF6 emissions reduced 21% since 2019 against 50% by 2030 target (FY23: 278 ktCO2e). Pilot with Rawwater allows in-service leak sealing without outage. £1.9m four-year project with University of Manchester to develop retrofill solutions for SF6 replacement. World-first SF6 replacement deployed with Hitachi Energy at Richborough substation, Kent.

sustainability_report p.15

Primary: Light-duty fleet electrification by 2030Data confidence — high

Target to move to 100% electric fleet by 2030 for light-duty vehicles. Currently 5% EV (FY23). 312 zero-emission vehicles across UK and US commercial fleets, with UK ED operating 181 electric vans + 262 electric company cars. Building UK's largest private EV charging network 2023-2028 with chargers within 10-mile radius of fleet drivers.

sustainability_report p.12

Primary: Leak-prone gas pipe replacementData confidence — high

Continued leak-prone pipe replacement programme in US gas distribution to reduce methane emissions from Scope 1 natural gas fugitives/venting (714 ktCO2e in FY23). Key driver of Scope 1 reductions alongside SF6 and EV programmes.

sustainability_report p.14

Primary: Air travel reductionData confidence — high

Target to reduce annual air miles travelled by at least 50% from 2019/20 baseline. Currently at 23% reduction vs pre-pandemic (below the 50% target), as travel rebounded post-pandemic. All air travel emissions are offset.

sustainability_report p.16

Dependent: Supply chain decarbonisation (CDP supply chain member)Data confidence — high

Engaging 250 suppliers annually on decarbonisation; target for 75% of top 250 suppliers to have active carbon reduction targets by 2030. Currently 62% (FY23, up from 54%). Working with Carbon Trust to identify most carbon-intensive suppliers and promote SBT adoption. 87% of requested suppliers responded to CDP Climate Change Supply Chain programme in 2022.

sustainability_report p.16

Plan to update SBT to align with FLAG and more ambitious trajectoryData confidence — high

With the launch of SBTi's Forest, Land and Agriculture (FLAG) requirements, the company is working to update its current science-based target in line with this methodology and a more ambitious trajectory, including land use change emissions.

sustainability_report p.31

TCFD supporter and UN Global Compact participantData confidence — high

The company is a public supporter of the TCFD and a participating company of the UN Global Compact. Member of WWF Climate Business Network, Clean Energy Buyers Association (CEBA), and Ceres' Company Network.

sustainability_report p.124

ESG-linked executive incentive: rPET usage rateData confidence — high

Talent and Compensation Committee linked sustainability performance (global recycled PET usage rate) to long-term incentive program for executives in 2022-2024 awards.

sustainability_report p.9

World Without Waste packaging targetsData confidence — high

Targets: 100% recyclable packaging by 2025; 50% recycled content by 2030; collect a bottle/can for each one sold by 2030; reduce virgin plastic from non-renewable sources by 3M MT cumulative 2020-2025; 25% of beverages in refillable/returnable packaging by 2030.

sustainability_report p.33

Land-based carbon sequestration via FLAG-aligned target updateData confidence — high

The company is updating its science-based target in line with SBTi's Forest, Land and Agriculture (FLAG) methodology. The new target would consider emissions from land use change in the supply chain and carbon sequestration from land-based projects implemented in the agricultural supply chain. No explicit DAC, BECCS or durable removal procurement disclosed.

sustainability_report p.31

Primary: Cold drink equipment (refrigeration) decarbonisationData confidence — high

Refrigeration accounts for ~one third of system emissions. In 2022, 88% of all new coolers placed were HFC-free (up from 61% in 2016). Internal energy usage guidance published in early 2023 sets specific limits requiring increasing efficiency to 2030. Transition from glass-door to solid-door coolers (>20% more efficient) is being rolled out in Southeast Asia, Middle East and especially India.

sustainability_report p.34

Dependent: Packaging: recycled content, lightweighting and reusablesData confidence — high

Packaging accounts for ~30% of carbon footprint. World Without Waste targets: 100% recyclable by 2025; 50% recycled content by 2030; 25% refillable/returnable by 2030; reduce virgin plastic from non-renewable sources by 3M MT cumulatively 2020-2025. In 2022, 25% recycled content achieved across all materials; 15% for PET. More than 40 markets offer at least one brand in 100% rPET bottles.

sustainability_report p.33

Dependent: Sustainable agriculture / supply chain ingredientsData confidence — high

Ingredients account for ~10-15% of value chain GHG. Coca-Cola works with agricultural suppliers via Principles for Sustainable Agriculture (PSA) covering energy management, conservation of forests/habitats, soil management. In 2022, 89% of orange ingredient volumes were sustainably sourced. Updating SBT to FLAG methodology will account for land use change and sequestration.

sustainability_report p.34

Dependent: Supplier engagement via Supplier LoCT and SBTi commitmentsData confidence — high

Joined Supplier Leadership on Climate Transition (Supplier LoCT) in 2022 with 56 sponsored suppliers (94 system-wide). More than 160 suppliers have set or committed to SBTi-approved emissions targets (up from 119 in 2021). Major bottling partners (CCHBC, CCEP, AB InBev, Swire Coca-Cola, Coca-Cola FEMSA, Arca Continental) have SBTi commitments. 378 of 495 requested suppliers provided CDP climate data in 2022.

sustainability_report p.111

Acquired Western Power Distribution (WPD)Data confidence — high

National Grid acquired Western Power Distribution in June 2021, making it the largest distribution network operator group in the UK. WPD data is excluded from the main 2021/22 RBR metrics and reported separately in the appendix; will be fully integrated in 2022/23.

sustainability_report p.4

Agreed sale of 60% stake in UK Gas TransmissionData confidence — high

On 27 March 2022, National Grid announced the agreement for sale of a 60% stake in UK Gas Transmission. Treated as discontinued operations. Cited as part of strategic repositioning away from gas towards electricity transition.

sustainability_report p.4

SBTi-validated near-term & long-term emissions targetsaffects scope 1 co2eData confidence — high

Scope 1&2: 80% reduction by 2030, 90% by 2040, net zero by 2050 from a 1990 baseline (SBTi aligned). Scope 3: 37.5% reduction by FY2034 from FY2019 baseline (SBTi aligned), net zero by 2050.

sustainability_report p.21

Real Zero by 2050 ambitionData confidence — high

National Grid published its first Climate Transition Plan introducing the concept of 'real-zero' – achieving zero emissions by 2050 without relying on offsets to meet net zero commitment.

sustainability_report p.7

CDP A List 2021Data confidence — high

Achieved CDP Climate Change 'A' grade rating for the sixth consecutive year. Also rated 'A' for water and supply chain for past 4 years.

sustainability_report p.2

Aligned to UN SDGs 4, 5, 7, 8, 9, 13Data confidence — high

Reports alignment with SDGs 4 (Quality Education), 5 (Gender Equality), 7 (Affordable & Clean Energy), 8 (Decent Work & Economic Growth), 9 (Industry, Innovation & Infrastructure), 13 (Climate Action). Signatory to UN Global Compact.

sustainability_report p.11

Living Wage Foundation accreditation & Modern Slavery StatementData confidence — high

Accredited Living Wage Foundation employer in UK, voluntarily paying trainees the Living Wage. Publishes annual Modern Slavery Statement. Founding signatory of The People Matter Charter.

sustainability_report p.29

Restated 2020/21 energy consumptionaffects total energy consumption kwhData confidence — high

2020/21 total energy consumption restated from prior reporting to 3,125 GWh to account for a minor misstatement following data reconciliation and adoption of updated methodology.

sustainability_report p.20

EU Taxonomy voluntary early alignment disclosureData confidence — high

Voluntarily elected to publish EU Taxonomy alignment disclosures (not just eligibility) one year ahead of EU requirements. Reports 67% Group aligned turnover, 73% aligned CapEx, 84% aligned OpEx.

sustainability_report p.53

100% electric light-duty fleet by 2030Data confidence — high

Joined EV100 initiative in June 2021. Committed to 100% electric light-duty fleet by 2030 (2,235 UK + 2,656 US vehicles). Currently at 4%.

sustainability_report p.17

Connecting renewables to T&D networks; growing US renewables business via National Grid RenewablesData confidence — high

National Grid connected 2,498 MW of renewable energy to UK and US transmission and distribution grids during 2021/22 (1.9 GW UK ET, 0.6 GW US). Owns 6.4 GW of interconnector capacity (France, Belgium, Netherlands, Norway), with Viking Link to Denmark (1.4 GW) expected by 2024. Joint venture with RWE Renewables won NY Bight offshore capacity auction with potential 3,000 MW. National Grid Renewables develops US wind and solar; Emerald JV (51% owned) has first right of refusal. Office renewable electricity purchased: 0% UK, 5.8% US in 2021/22.

sustainability_report p.17

Real Zero by 2050 — minimise offsets, only used tactically for hard-to-abateData confidence — high

National Grid's Climate Transition Plan sets out 'Real Zero by 2050' — striving for absolute zero operational emissions without relying on offsets to achieve net zero. Limits offset use to hard-to-abate areas (upstream supply chain, air travel). States offsets will only be used if they 'play a small tactical role in accelerating emissions reductions in the short-term' and 'must accelerate real cuts to emissions'. No specific removals volumes (DAC, BECCS) disclosed.

sustainability_report p.59

Primary: SF6 leak reduction and elimination from grid equipmentData confidence — high

Committed to reducing SF6 emissions 50% by 2030 from FY19 baseline. SF6 is 22,800x more potent than CO2. Pilot at Richborough 400kV substation retrofilled 755kg of SF6 with low-GWP g3 gas, achieving ~99% CO2e reduction. Identified ~28 tonnes more SF6 in same-design assets across UK network. Ambition to eliminate SF6 entirely.

sustainability_report p.24

Primary: Long Island Power generation decarbonisationData confidence — high

Scope 1 emissions rose 12% (from 4,727 to 5,271 ktCO2e) primarily due to increased Long Island Power Authority generation hours replacing off-island shortfalls. Working with LIPA during current generation contract (ending 2028) to reduce emissions in line with NY State's 2040 decarbonisation path. By 2040 own generation portfolio will no longer include any fossil fuels.

sustainability_report p.21

TNFD Forum signatory & biodiversity targetsData confidence — high

Signed up to the TNFD Forum, following Science Based Targets for Nature guidance. Committed to improve environmental value of UK non-operational land by 10% by 2026, and 10% net gain in environmental value on UK construction projects.

sustainability_report p.23

SF6 50% reduction target by 2030Data confidence — high

Committed to reduce SF6 emissions by 50% by 2030 from a FY19 baseline. Achieved 22% reduction so far (263 ktCO2e in 2021/22 vs 321 ktCO2e in 2019/20).

sustainability_report p.19

Primary: Fleet electrification — 100% light-duty EVs by 2030Data confidence — high

Joined EV100 initiative June 2021. Committed to electrifying 2,235 UK vehicles and 2,656 US vehicles by 2030, plus 289 UK charging sites. Currently 4% of light-duty fleet is electric (128 vehicles).

sustainability_report p.17

2021· 38 events

Acquisitions of Costa, fairlife, BodyARMORData confidence — high

Costa Limited acquired in 2019, fairlife fully acquired in 2020, BodyARMOR fully acquired in 2021. Costa retail and roasteries emissions excluded from inventory pending data infrastructure.

sustainability_report p.50

SF6 50% reduction by 2030Data confidence — high

Reduce SF6 emissions from operations 50% by 2030 from 2019 baseline; ambition to eliminate SF6 from assets by 2050.

sustainability_report p.17

Carbon offsetting for residual air travel; CCUS investment via Zero Carbon HumberData confidence — high

Where carbon offsetting is pursued, the firm commits to options that deliver multiple benefits. Will offset remaining business air travel emissions 'responsibly'. Investing in large-scale carbon management technologies including carbon capture and storage. Founding member of Zero Carbon Humber to build world's first zero carbon industrial cluster, including CO2 pipeline from Saltend hydrogen plant to North Sea salt aquifer storage.

sustainability_report p.22

Primary: Long Island Power Authority generation fleet decarbonisationData confidence — high

LIPA power generation accounts for 66% of total Scope 1 emissions. National Grid operates the plants but bidding is controlled by LIPA/PSEG into NYISO market. Current contract runs to 2028; working to facilitate further Long Island renewable generation in support of NYS 100% low-carbon by 2040 target. Increased running hours drove Scope 1 emissions up 21.1% in 2020/21.

sustainability_report p.24

Primary: SF6 leakage reduction in electrical equipmentData confidence — high

SF6 emitted 321 ktCO2e in 2020/21 (-1.5% YoY). Trialling non-SF6 vacuum circuit breakers in US. IFA interconnector asset replacement programme expected to reduce SF6 leakage 70% by 2025. Target 50% reduction by 2030 from 2019 baseline, with ambition to eliminate SF6 by 2050.

sustainability_report p.25

Primary: Fleet electrification (light-duty 100% EV by 2030)Data confidence — high

At year-end 2% (66 vehicles) of light-duty fleet was electric. Commitment to 100% electric light-duty by 2030 and pursue zero-carbon alternatives for medium and heavy-duty vehicles. Market developments expected to enable acceleration.

sustainability_report p.25

Dependent: Supplier carbon-reduction target engagement (Scope 3 Cat 1)Data confidence — high

Purchased goods/services emissions of 6,570 ktCO2e (23% of Scope 3). Target: 75% of top 250 suppliers to have active carbon reduction targets by 2026. At year-end 49% (122 suppliers) reported active targets. 87% of suppliers asked responded to CDP Climate Change Supply Chain programme vs 68% average response rate.

sustainability_report p.26

Grid for Good — 45,000 people skills development by 2030Data confidence — high

Launched Grid for Good programme aimed at upskilling disadvantaged young people, targeting 45,000 people by 2030 and 500,000 employee volunteering hours by 2030.

sustainability_report p.34

Dependent: Scope 3 — decarbonisation of US sold natural gasData confidence — high

Use of sold products (US gas + electricity) at 18,235 ktCO2e is 63% of Scope 3. Five-point 2050 plan for US gas network: RNG/hydrogen integration (Newtown Creek RNG project; HyBlend DOE hydrogen blending); heat pumps and geothermal networks; energy efficiency/demand response; methane leak reduction; large-scale CCUS and offsets. Short term emissions may rise as customers switch from heating oil to gas.

sustainability_report p.26

5 MW Ogden solar farm commissionedData confidence — high

CP commissioned a 5 MW solar farm at Calgary headquarters in March 2021, generating 4,378 MWh in 2021, of which 3,499 MWh consumed on-site reducing Scope 2 by 2,183 tCO2e. Investment of $9.3M with 25-year expected useful life.

sustainability_report p.48

2019 Scope 1 baseline restated to include natural gasaffects scope 1 co2eData confidence — high

During the 2021 inventory process, CP determined that emissions from natural gas consumption at facilities had not been previously calculated. Retroactively updated 2019 base year to include these emissions for accuracy, though change was not material above the 5% threshold.

sustainability_report p.53

Kansas City Southern acquisition (held in voting trust)Data confidence — high

In December 2021, CP completed acquisition of Kansas City Southern. Shares immediately deposited into voting trust pending US Surface Transportation Board merger approval. 2021 CDP response scope does not extend to KCS.

sustainability_report p.4

Climate Strategy publishedData confidence — high

CP published its first comprehensive Climate Strategy in 2021, charting path to reduce GHG emissions, adapt to physical risks and integrate climate factors across business. Includes 'say on climate' advisory shareholder vote starting 2022.

sustainability_report p.4

SBTi-validated locomotive emissions targetData confidence — high

CP set a science-based locomotive well-to-wheel emissions intensity target of 38.3% reduction in gCO2e per RTM by 2030 from 2019 baseline, validated by SBTi and aligned with well-below 2°C pathway. Also set a non-locomotive Scope 1+2 absolute target of 27.5% reduction by 2030.

sustainability_report p.45

Primary: Hydrogen Locomotive Program ($30M)Data confidence — high

CP is developing North America's first line-haul hydrogen-powered freight locomotive by retrofitting diesel locomotives with hydrogen fuel cells (Ballard Power Systems) and battery hybrid propulsion. Scope expanded in 2021 from one to three conversions after $15M Emissions Reduction Alberta funding matched $15M CP investment. Includes hydrogen production/fueling facilities in Calgary (powered by HQ solar electrolysis) and Edmonton. First successful movement test December 2021.

sustainability_report p.30

Primary: High-Efficiency Product (HEP) grain train fleet upgrade ($500M)Data confidence — high

$500M multi-year investment in high-capacity grain hopper cars (10% more capacity than legacy cars) supporting 8,500-foot HEP train model. By end 2021, 5,803 new cars in service. Enables 44% more grain per unit train, reducing train starts, fuel consumption and GHG emissions.

sustainability_report p.18

Primary: Precision Scheduled Railroading & fuel efficiencyData confidence — high

CP uses Precision Scheduled Railroading focused on operational efficiency metrics and annual fuel-efficiency targets. 2021 fuel efficiency: 0.931 US gallons/1,000 GTM — 11.3% better than North American Class 1 average, and a 44% improvement since 1990. Linked to executive STIP compensation (operating ratio metric).

sustainability_report p.12

Dependent: Modal shift: customer freight from truck to railData confidence — high

Rail is 3-4x more fuel-efficient than highway transport with ~75% fewer GHG emissions per ton-mile per AAR. CP markets this as a low-carbon supply chain offering — engaged with 8% of freight revenue customers on climate in 2021 (target: 30% by 2025). Developed online customer-facing carbon calculator. Intermodal services = 22% of revenue and classified as low-carbon under LCI Registry Taxonomy.

sustainability_report p.49

Dependent: Waste rail tie beneficial reuse to renewable fuelsData confidence — high

CP generated ~1.3M waste rail ties in 2021 (90% of operational waste mass). Engages 10 tie processors and 13 downstream cogeneration/industrial facilities to divert from landfill. Partnered with Cielo Waste Solutions since 2018 to evaluate processing ties into renewable naphtha, kerosene (aviation jet fuel) and diesel.

sustainability_report p.98

CDP A List 2020Data confidence — high

Achieved 'A' grade rating in CDP Climate Change for the fifth consecutive year.

sustainability_report p.2

Acquisition of Western Power Distribution (now UK ED)Data confidence — high

Acquired WPD in June 2021, now branded National Grid Electricity Distribution (UK ED). Fully consolidated into 2022/23 metrics.

sustainability_report p.5

Connecting renewables and building interconnectors to clean gridsData confidence — high

Connected 950 MW of renewable energy to US and UK transmission/distribution grids during the year, including Triton Knoll 1 (UK) and Cassadaga Wind Farm (US). Operates 5 GW of interconnector capacity (IFA, IFA2, BritNed, Nemo), expanding via North Sea Link (Norway) and Viking Link (Denmark, 1.4 GW). National Grid Renewables (formerly Geronimo) develops US wind/solar; signed PPA with Basin Electric for 128 MW South Dakota solar and constructing 40 MW Michigan Solar Portfolio. US renewable electricity procured at 4.6% of US consumption.

sustainability_report p.19

Primary: Locomotive Modernization Program ($514M to date)Data confidence — high

CP is upgrading its line-haul locomotive fleet with EPA-certified fuel/emissions reduction technologies (GE Trip Optimizer, Distributed Power), advanced diesel engines, and improved traction. 416 of 912 active line-haul locomotives modernized by end 2021 (30 in 2021 alone). Minimum 2.7% per-locomotive fuel-efficiency improvement; saved 2,541 tCO2e in 2021. Locomotive fuel = >95% of Scope 1+2.

sustainability_report p.47

Responsible Business Charter published with Net Zero Scope 1+2 commitmentsaffects scope 1 co2eData confidence — high

Published Responsible Business Charter in October 2020 setting commitments: Reduce Scope 1+2 GHG emissions 80% by 2030, 90% by 2040, Net Zero by 2050 from 1990 baseline. SBTi-validated as well below 2°C.

sustainability_report p.17

Scope 3 target revised and expanded — now covers entire value chainaffects scope 3 co2eData confidence — high

Worked with SBTi to increase Scope 3 ambition. Target now covers emissions across entire value chain (not just sold gas/electricity) with commitment to reduce 37.5% by FY2034 from FY2019 baseline. Verified by SBTi.

sustainability_report p.26

Agreed acquisition of Western Power DistributionData confidence — high

Announced agreement to buy Western Power Distribution Group from PPL Corporation; positions National Grid at forefront of UK electricity distribution and Net Zero delivery.

sustainability_report p.4

First-time third-party assurance of renewable electricityaffects renewable electricity pctData confidence — high

Renewable electricity usage was third-party assured for the first time in 2021.

sustainability_report p.28

Initiating sale of UK Gas Transmission and Rhode Island distributionData confidence — high

Agreed to sell Rhode Island electricity and gas distribution to PPL; announced sale process for majority stake in UK Gas Transmission business.

sustainability_report p.21

Aligned with UN SDGs 5, 7, 8, 9, 13Data confidence — high

Reports alignment with UN Sustainable Development Goals 5 (gender equality), 7 (affordable clean energy), 8 (decent work), 9 (industry/innovation), and 13 (climate action).

sustainability_report p.14

First standalone RBR with limited assurance from PwCData confidence — high

First standalone Responsible Business Report in several years. PwC engaged to provide limited assurance over key sustainability KPIs using ISAE 3000/3410.

sustainability_report p.57

10% natural environment improvement on owned land by 2030Data confidence — high

RBC commitment to improve the natural environment by 10% on land owned by 2030. Includes Monarch CCAA partnership in US covering 100,000+ acres.

sustainability_report p.27

Restated 2019/20 energy dataaffects total energy consumption kwhData confidence — high

Comparative 2019/20 energy data restated to account for minor misstatement and change in reporting methodology.

sustainability_report p.27

100% electric light-duty fleet by 2030Data confidence — high

Move to a 100% electric fleet by 2030 for light-duty vehicles, and pursue replacement of medium and heavy-duty vehicles with zero carbon alternatives.

sustainability_report p.17

Primary: Business air travel reductionData confidence — high

Annual air miles fell from 24 million to 0.7 million (COVID-driven); emissions from air travel fell from 10 ktCO2e to 0.3 ktCO2e. Commitment to reduce air miles by at least 50% from 2019 baseline on an enduring basis and offset remaining emissions responsibly to achieve zero carbon emissions from business air travel.

sustainability_report p.26

Reasonable assurance obtained under ISO 14064-3Data confidence — high

GHD provided reasonable assurance verification of CP's 2021 GHG inventory (Scope 1, Scope 2 location and market-based, and Scope 3 categories 1, 3, 4, 5, 6, 7) under ISO 14064-3 and ISAE 3000/3410, with 100% of reported emissions verified.

sustainability_report p.87

First-time Scope 2 market-based reportingaffects scope 2 co2e marketData confidence — high

CP calculated Scope 2 market-based emissions for the first time in 2021 (39,339 tCO2e), in addition to the location-based figure (38,774 tCO2e). Market-based was not calculated in 2019 base year.

sustainability_report p.53

On-site solar at Calgary HQ; renewable electricity for HQ operationsData confidence — high

CP completed a 5 MW solar farm at its Calgary headquarters in March 2021, generating ~4,378 MWh annually. The facility enables corporate HQ to run on renewable electricity and will also feed hydrogen electrolysis production. CP consumed 3,499 MWh on-site (avoided 2,183 tCO2e Scope 2) with residual fed to local Alberta grid via micro-generation program. No PPAs, RE100 or large-scale renewable purchases beyond on-site generation.

sustainability_report p.48

No carbon removals or offsets in 2021 inventoryData confidence — high

CP did not originate or purchase any project-based carbon credits within the reporting period. Strategy focuses on operational decarbonisation (locomotive modernization, hydrogen, on-site solar) rather than offsetting or removals. No DAC, BECCS, biochar or nature-based removal commitments disclosed.

sustainability_report p.94

2020· 22 events

Acquisition of Geronimo Energy (US wind & solar developer)Data confidence — high

Acquired Geronimo Energy, a leading US developer of wind and solar generation assets, providing a foundation to build a large-scale renewables business in the US.

sustainability_report p.6

Scope 3 target: 20% reduction by 2030 (2016 baseline) for sold electricity and gasaffects scope 3 co2eData confidence — high

Commitment to reduce Scope 3 emissions from the electricity and gas sold to customers (~80% of Scope 3) by 20% by 2030 from a 2016 baseline. Aligns to SBTi 2C pathway.

sustainability_report p.5

Zero carbon business air travel; 50% air-mile reduction from 2019 baselineaffects scope 3 business travelData confidence — high

From 2020 onwards, reduce annual air miles by at least 50% from a 2019 baseline on an enduring basis, and offset remaining emissions to achieve zero-carbon business air travel.

sustainability_report p.5

Improve natural environment 10% on owned land by 2030Data confidence — high

Commitment to improve the natural environment by 10% on land National Grid owns by 2030, using methods like natural capital evaluation.

sustainability_report p.5

50% diversity in Senior Leadership and new talent programmes by 2025Data confidence — high

Commitment to achieve 50% diversity in Senior Leadership group and in all new talent programmes by 2025; also 50% diversity on Group Executive Committee, with ambition to extend to Board.

sustainability_report p.10

Skills development for 45,000 people and 500,000 volunteering hours by 2030Data confidence — high

Provide access to STEM skills development for 45,000 people by 2030 with focus on lower income communities, and achieve 500,000 employee volunteering hours by 2030.

sustainability_report p.8

Connect renewables at scale; build US renewables platform via Geronimo EnergyData confidence — high

National Grid intends to connect renewables as quickly and efficiently as possible and invest in grid modernisation to meet rising electricity demand. The acquisition of Geronimo Energy, a leading US developer of wind and solar generation, provides the platform to grow a large-scale US renewables business. The firm is also building interconnectors (e.g. Viking) to bring low-carbon energy to the UK and will procure green energy for its own buildings.

sustainability_report p.6

Net zero by 2050 with interim 80% by 2030, 90% by 2040 (Scope 1+2, 1990 baseline)affects net zero target yearData confidence — high

National Grid committed to net zero by 2050, with interim Scope 1+2 reductions of 80% by 2030 and 90% by 2040 from a 1990 baseline. Aligned to well-below 2C SBTi pathway; SBTi validation in progress.

sustainability_report p.5

Offset residual business-air-travel emissions; pursue offsets with multiple benefitsData confidence — high

National Grid will reduce business air miles by at least 50% from 2019 levels on an enduring basis and offset remaining business air travel emissions 'responsibly' to achieve zero-carbon business air travel. Where carbon offsetting is required to accelerate net zero across the business, the firm will seek offsetting options that deliver multiple benefits (e.g. nature restoration). Specific durable-removal technologies (DAC, BECCS) are not committed; emerging tech such as hydrogen networks and carbon sequestration is flagged as a future contributor.

sustainability_report p.5

Primary: Office energy efficiency and green-power procurementData confidence — high

Reduce office energy consumption 20% by 2030 from a 2019 baseline through more flexible working, technology to reduce travel, building-energy efficiency, and procuring green energy where possible.

sustainability_report p.5

Dependent: Sold-product emissions: electricity & gas to customers (-20% by 2030)Data confidence — high

Sold electricity and gas to customers represents ~80% of Scope 3 emissions. National Grid commits to reduce this 20% by 2030 from a 2016 baseline (SBTi 2C-aligned), through grid decarbonisation, supporting heat electrification (heat pumps), renewable natural gas/hydrogen network options, and US energy-efficiency programmes for residential, commercial and industrial customers.

sustainability_report p.5

UN SDG alignment: SDGs 3, 4, 5, 7, 8, 9, 10, 11, 12, 13, 15, 16Data confidence — high

National Grid reports alignment with UN SDGs across pillars: Environment (7, 9, 12, 13, 15); Communities (4, 7, 8, 9, 10, 11); People (3, 4, 5, 8, 10, 16); Economy (8, 9, 12, 16); Governance (5, 8, 16).

sustainability_report p.7

Biodiversity / habitat improvement programmeData confidence — high

Commitment to protect habitats and increase biodiversity on owned land, building on prior work to increase environmental value on more than 50 sites in US and UK.

sustainability_report p.7

Joined the B Team movementData confidence — high

National Grid joined the B Team, a global business-leader movement on sustainability, equality and accountability, including commitment to meet/exceed B Team Responsible Tax Principles.

sustainability_report p.2

Primary: SF6 leak reduction and SF6-free equipmentData confidence — high

SF6 leaks from electrical equipment are a primary Scope 1 source. National Grid commits to a 50% reduction in SF6 emissions by 2030 from a 2019 baseline and an ambition to eliminate SF6 entirely from assets by 2050, working with sector partners to develop SF6-free solutions.

sustainability_report p.5

Dependent: Net-zero UK construction supply chain by 2026Data confidence — high

Achieve net zero emissions from Scope 3 construction activities in the UK by 2026; in the US the firm will develop a construction carbon-intensity target by 2022. Suppliers are also being engaged through the CDP supply-chain programme to set their own carbon-reduction targets.

sustainability_report p.7

Carbon pricing on all major investment decisions by end of 2020affects internal carbon price usd per tco2eData confidence — high

Implementing internal carbon pricing on all major investment decisions by the end of 2020 to drive responsible capital allocation.

sustainability_report p.7

Office energy consumption -20% by 2030 (2019 baseline)Data confidence — high

Reduce energy consumption in offices 20% by 2030 from a 2019 baseline.

sustainability_report p.5

100% electric light-duty fleet by 2030Data confidence — high

Move to 100% electric light-duty fleet by 2030, with replacement of medium and heavy-duty vehicles with zero-carbon alternatives pursued.

sustainability_report p.5

SF6 emissions reduction 50% by 2030 (2019 baseline)Data confidence — high

Reduce SF6 emissions from operations 50% by 2030 from a 2019 baseline, with ambition to eliminate SF6 use entirely by 2050.

sustainability_report p.5

Primary: Fleet electrification (100% electric light-duty by 2030)Data confidence — high

Move to a 100% electric light-duty fleet by 2030 and pursue zero-carbon alternatives for medium- and heavy-duty vehicles. Employees are incentivised to buy electric vehicles. Combined with reduced business flights, this is the firm's primary lever on mobile-source Scope 1 and business-travel Scope 3.

sustainability_report p.5

Primary: Fugitive gas-network leakage reductionData confidence — high

Gas transmission and distribution leaks are a major Scope 1 source. The firm is replacing leak-prone gas pipelines with plastic ones and using robots travelling through pipelines to detect and reduce leakage.

sustainability_report p.7

2019· 2 events

SBTi-validated target: 25% absolute reduction by 2030 (vs 2015)affects scope 1 co2eData confidence — high

Science-based target to reduce absolute Scope 1, 2 and 3 GHG emissions by 25% by 2030 from a 2015 base year, validated by SBTi. Currently aligned with a 2°C pathway.

sustainability_report p.36

CDP A List 2019 (4th year running)Data confidence — high

Awarded the Carbon Disclosure Project A list for the fourth consecutive year in 2019 for performance in reporting and mitigating climate impact.

sustainability_report p.15