ESG Leadership

HAWAIIAN ELECTRIC INDUSTRIES

With all of our operations in the middle of the Pacific Ocean, we know that our company’s long-term health is inextricably linked with the strength of the economy, communities, and environment of the Hawaiian Islands. This is why environmental, social and governance (ESG) and sustainability considerations are at the core of our mission to be a catalyst for a better Hawai‘i.

Across the HEI family of companies, we see ESG and sustainability as an integral part of how we create value for all of our stakeholders – from customers and employees to communities and investors.

Since issuing our inaugural ESG report last fall, teams throughout the HEI enterprise have worked to further integrate ESG and climate-related factors into our governance, strategies, risk management and reporting. This second consolidated ESG report provides an update on our ESG efforts and reflects our commitment to continuous improvement, transparency and accountability.

In early 2021, leaders from across our family of companies worked together to conduct our first consolidated HEI ESG priorities assessment. The priorities we identified reflect the essential connection between the health of Hawai‘i’s environment, economy and communities and HEI’s success as a company. These priorities include:

ƒ decarbonizing our operations and the broader Hawai‘i economy;

ƒ promoting Hawai‘i’s economic health and improving affordability for all residents;

ƒ ensuring reliability and resilience as we make our clean energy transition and adapt to a changing climate;

ƒ advancing digitalization of our operations to better serve customers and increase efficiency while protecting against cyber-security challenges;

ƒ promoting diversity, equity and inclusion both within our company and in the ways we interact with and impact external stakeholders;

ƒ increasing employee engagement; and

ƒ identifying and integrating climate-related risks and opportunities throughout our planning and decision-making.

Our companies are doing a great deal to advance each of these priority areas, and in fact have been working to advance many of these areas for a long time. Throughout this report we highlight strategies and initiatives underway to address each of them. We see this as an evolution though, and will continue to strengthen our efforts, set additional goals and measure and report on our progress.

In this report we also include our first disclosures aligned with Task Force on Climate-related Financial Disclosures (TCFD) guidance, detailing our governance and risk management processes for identifying, monitoring and managing climaterelated risks and opportunities; describing key risks and opportunities we see for our companies and our state as we face a changing climate and related economic, customer and policy dynamics; and outlining key impacts for our companies under two climate scenarios, including a scenario targeted to limit global temperature rise to 2 degrees Celsius or lower. This is an important step, and we have developed a roadmap for deepening our TCFD analysis and reporting in the future, including by aligning it with our utility’s intensive long-range planning (Integrated Grid Planning) process.

Our focus on integrating material ESG and climate-related considerations into our strategies, risk management and operational processes underscores our commitment to creating a more sustainable, resilient company – and state – for all.

Constance H. Lau

President and Chief Executive Officer