Consolidated HEI ESG Priority Assessment 1

Alignment with a Net Zero Ambition

Hawai‘i has been on the forefront of U.S. states in setting ambitious climate goals,

with goals to achieve a carbon neutral to carbon negative economy by 2045 and a 100% renewable portfolio standard (RPS) by 2045, with interim RPS milestones of 30% by 2020, 40% by 2030 and 70% by 2040. At HEI, we recognize the role we play in reaching these goals and have aligned our efforts accordingly. We’re making strong progress. In 2020 we reached 35% RPS, exceeding the state milestone. Throughout this report, including on pages 48 to 54, we describe our progress to date and the many efforts we have underway to reach these important goals.

Nationally and globally, among policymakers, investors, environmental stakeholders, corporations, and many others, efforts to accelerate greenhouse gas emission reductions to avoid the worst impacts from climate change have gained significant momentum, with increasing convergence around goals to reach a global net zero emissions target by 2050. As we publish this report, the Biden Administration and leadership of other countries are expected to announce updated climate commitments to hasten the pace of decarbonization around the world.

As a company in a state and community with much at stake from the effects of climate change (see our ESG Priorities on pages 16 to 25 and our Task Force on Climate-related Financial Disclosures (TCFD) reporting on pages 26 to 41), we wholeheartedly support accelerated global actions and progress in reducing greenhouse gas emissions. That’s

why our state and our company have sought to be leaders in setting goals and

demonstrating real progress in the near term – not just twenty or thirty years from now. We are committed to continuing to work with policymakers and our communities to reach our collective goals.

At HEI we believe our goals and plans place us on a strong path to reaching net

zero carbon emissions by 2045. We are updating our planning and analysis to confirm our milestones aligned with global 2.0°C to 1.5°C climate change commitments. We will provide an update on that work in our future reporting.

About HEI

For generations, Native Hawaiians have stewarded Hawai‘i’s lands responsibly, developing a culture of sustainability that serves as an example for us today.

At HEI, our family of Hawai‘i-based companies provides energy and financial services while advancing our state’s clean energy and sustainability goals.

As a company with a strategy focused on Hawai‘i, and with all of our operations in the state, our ability to deliver long-term value for our stakeholders is tied to the strength and sustainability of Hawai‘i’s communities.