2020 DTE ENERGY SUSTAINABILITY SUMMARY Serving With Our Energy

Transcription

2020 DTE ENERGY SUSTAINABILITY SUMMARYServing With Our EnergyDriving healing, recovery and progress in2020 and beyond

Table of ContentsPromoting safety and well-being for our employees,customers and communities . . .3Supporting our communities through philanthropy andcritical pandemic relief funding.4Supporting our communities through volunteerism.5Supporting our customers through 90 million in energyassistance. . .6Supporting Michigan businesses . . . 7Creating a diverse supplier pipeline that unlocks newopportunities statewide. 8Supporting our youth – our future leaders.9Creating a more diverse, equitable and inclusive workplaceand community . . . .11It’s no secret 2020 was a difficult year for our customers andcommunities. The COVID-19 pandemic delivered many significantchallenges to our collective doorstep. Our friends, families and neighborsendured physical, mental, social and financial hardships. For many, lifeitself was – and remains – at stake.At the onset of the pandemic, I pledged DTE would do all we could tohelp our employees, customers and communities through the challengesCOVID-19 brought upon us. I’m proud to say alongside our communityand government partners, DTE’s 10,000-plus team members rolled upour sleeves, put on our masks and found new ways to serve. While we’reproud of what we achieved last year, we know there’s much work left todo – and we’re up to the task.In the following pages, we’ll highlight many of our efforts to drivehealing, recovery and progress in the communities we serve. We’ll alsoupdate you about what we’re doing to build a safer, smarter and morereliable energy grid – and a cleaner energy future for generations tocome.Whether you’re a DTE customer or employee, an investor or anotherstakeholder with an interest in our business, I thank you for takingthe time to learn more about our journey toward becoming thebest-operated energy company in North America and a force for good inour communities.Best,Building a cleaner energy future for generations to come. 13Building a safer, smarter and more reliable energy gridPAGE 219Jerry NorciaPresident and Chief Executive OfficerDTE Energy2020 DTE ENERGY SUSTAINABILITY SUMMARY

Promoting safety andwell-being for ouremployees, customersand communitiesWe know our ability to deliver safe, reliable energybegins and ends with safe and healthy employees.When COVID-19 arrived in Michigan, DTE wasamong the first companies to suspend all non-criticalinfrastructure and maintenance work, and direct allemployees who could work remotely to do so.We also worked closely alongside medical andoccupational health experts to drastically changehow we work – from personal protective equipmentand social distancing guidelines to cleaningprocedures, and everything in between.Our business and safety culture remain rooted in acommitment to 200% accountability – being 100%committed to our own safety and 100% committed tothe safety of those around us. It’s this commitmentthat allowed us to continue to deliver life-criticalenergy to hospitals, research facilities and firstresponders on the frontline of the COVID-19 crisis aswe all came together to define our new normal, andto proceed in the safest ways possible.We did what we could to keep others safe, too. We’llhighlight these efforts in the following sections.PAGE 3100% 100% 200%committed to ourown safetycommitted to thesafety of thosearound usaccountability2020 DTE ENERGY SUSTAINABILITY SUMMARY

Supporting ourcommunities throughphilanthropy andcritical pandemic relieffundingIn 2020, the DTE Energy Foundation awardedapproximately 21 million in COVID-19 relieffunding in the communities where our team livesand serves.Visit dteenergy.com/covidcommunity to learn more.500,000families supported withbasic needs assistancePAGE 43 millionmeals funded40faith-based partners in20 zip codes supportedthrough critical services,including COVID-19testing2 millionKN95 masks donated tofirst responders 1 millionin grants to all domesticviolence sheltersfunded by the MichiganDepartment of Healthand Human Services 2 millionin total donations to theMichigan Association ofUnited Ways, MichiganCommunity Action andnonprofits2020 DTE ENERGY SUSTAINABILITY SUMMARY

Supporting ourcommunities eers779While COVID-19 required us to reimagine the wayswe mobilized our team to support our customersand communities, we’re proud of what we achievedalongside our nonprofit partners.From virtual mentoring to delivering holiday mealsto seniors, last year’s volunteerism efforts harnessedthe energy – and leveraged the unique skills – ofour employees to make positive, lasting impacts onour communities. We look forward to resuming thefar-reaching volunteerism efforts that exemplify ourcompany’s approach to service as soon as it’s safe to doso.Are you a nonprofit in need of skills-based volunteers?Fill out this form to get in touch with us.nonprofitsassisted in 190citiesPAGE 52020 DTE ENERGY SUSTAINABILITY SUMMARY

2020 by the numbers:Supporting ourcustomers through 90 million in energyassistanceIn the wake of the COVID-19 pandemic and theeconomic impact many of our customers felt, we actedquickly to provide flexible options and financial reliefto those who needed it most. In addition to suspendingall disconnects due to non-payment and COVID-19illness, we awarded more than 90 million in energyassistance to people across Michigan.Energy assistanceWorked with the Michigan Department of Health and HumanServices andforgave 13 million in past due balancesfor 21,000 customers 11 milliondedicated to our LowIncome Self-SufficiencyProgram, enrolling 16,306customers in 2020 2.6 million in one-time balance reductionsawarded to 2,058 customers with high arrears 246,000 donated to The Heat andWarmth Fund (THAW) to support its annual WinterSurvival Radiothon, which helps bridge energy assistancepayments and keep Michigan families afloatEnergy waste reduction (EWR)We also engaged our customers through holistic EWRprogramming which includes rebates, tools and tips to helpthem reduce their energy costs in 2020 and beyond. 350 million saved bycustomers through DTE energy efficiencyprograms in 202031,000 free Home Energy Consultationswere conducted, and more than 530,000freeenergy-saving products, such as LED lights, smartthermostats and water aerators were installed in homesPAGE 62020 DTE ENERGY SUSTAINABILITY SUMMARY

Supporting MichiganbusinessesIn combination with our efforts to support families in need, we alsolaunched and led several initiatives to keep businesses running – andpeople working – across Michigan. We continued our efforts todevelop a diverse and inclusive supplier base we know will create ahealthier, more vital Great Lakes State.Detroit Means BusinessEarly in the pandemic, DTE mobilized a coalition of more than 60organizations that came together to create Detroit Means Business(DMB), an online resource hub through which businesses can accessvaluable information about small business loans and other criticaltopics, free one-on-one financial coaching and many other offeringsthat help Detroit’s small businesses continue to stabilize and thrive.Small businesses are the primary drivers of the city’s job creation,constituting 50% of Detroit’s employment. The first phase of thework in spring of 2020 was survival – we helped businesses gainfinancial aid, work through unemployment and more. The next phasewas safely reopening – we created a website with return to workplaybooks and donated masks, gloves and cleaning materials.We soon came to realize that Detroit had organizations that providedcritical small business assistance, but there was something missing: acomprehensive strategy and organization to oversee, coordinate andensure execution of that strategy. That's when Detroit Means Businesstook center stage, helping businesses grow and creating thousands ofneighborhood-based jobs in the process.Personalized protective equipment donationsThe DTE Energy Foundation also donated 6,000 PPE kits to helpsmall businesses statewide safely reopen through partnerships withlocal chambers of commerce and the Michigan Minority SupplierDevelopment Council. These donations, which were made early in thepandemic when PPE was highly contested and hard to come by, wereinstrumental in helping businesses safely reopen and stabilize.PAGE 71.2 milliongloves6,000 gallonsof hand sanitizer600,000masksDONATED TO SMALL BUSINESSES IN MICHIGAN2020 DTE ENERGY SUSTAINABILITY SUMMARY

Creating a diverse supplier pipeline thatunlocks new opportunities statewideWe know we’re at our best when our supply chain reflects the broad diversity of the customers we serve.Championing supplierdiversity since1982149 744 milliondiverse spend in 2020,a 288%increase since 2010certified diversesuppliers 2.2 billionspent with Michigan businesses in 2020PAGE 8Diversespend32supplier diversity awardsearned since 201824.5%of spend 552 million in direct spendingthrough 192 million subcontracteddirect suppliers 969 millionspent with Detroit suppliers 500million 1billionincrease in diverse spending by 202620 outreacheventsannually2020 DTE ENERGY SUSTAINABILITY SUMMARY

Supporting our youth –our future leaders51,000tablets distributedto Detroit SchoolChildrenBridging the digital divide in Detroit through a first-of-its-kind public-private partnershipWe know our organization – and our foundation – cancontinue to make a difference in setting our state’schildren up for for short- and long-term success. Wehave been, and will continue to be, one of Michigan’slargest contributors to youth employment programs,partnering with organizations that help us empowerunderserved populations; that's something we’re veryproud of. Last year, we doubled down on our effortsto dismantle the systemic barriers that often preventyoung people from reaching their full potential andrealizing their dreams.PAGE 9During the onset of the pandemic, Detroit Public Schools Community District (DPSCD) estimated only10% of its students had access to a device and internet, so even before schools closed and shifted toremote learning arrangements, we knew we had to act to position Detroit schoolchildren to learn andgrow remotely. DTE and the DTE Foundation, and DPSCD, moved quickly to mobilize a coalition of leadingorganizations, foundations and philanthropists to put tablets equipped with high-speed internet in thehands of all 51,000 DPSCD students before the fall term began.This not only allowed students to access their classes and schoolwork online, it empowered familymembers to access critical online resources, including telehealth, GED programs and job applications, thatweren’t available to them previously.Connected Futures is truly a program that’s changing the trajectory of our city and state. Learn moreabout it here.2020 DTE ENERGY SUSTAINABILITY SUMMARY

1,400students employed directlyat DTE or through studentprograms statewide6,900youth supported throughvirtual programming, includingjob shadowing and career pathexploration statewideAdapting summer student programs forthe remote worldDespite the many challenges of adaptingour summer student programs to a virtualarrangement, we knew it was critical thatwe continue this work, and in turn positionour youth and communities to thrive. Wewere one of the only large companies in ourregion to move forward with our summer jobsprograms, and through our support of GrowDetroit’s Young Talent and other communityorganizations, we provided meaningfulemployment that helped students acquirenew life and career skills, and opened theirminds to new career opportunities at DTE andin the energy industry.Our Summer Youth Internship Programwas nationally recognized and included inthis Workforce Tactical Guide toolkit fromBloomberg Associates so other companiescould learn how to adapt their programs, too.PAGE 102020 DTE ENERGY SUSTAINABILITY SUMMARY

Creating a morediverse, equitable andinclusive workplaceand communityAt DTE, our values and commitment to doingwhat’s right drive our advocacy for the fair andjust treatment of all people – and our unequivocalrejection of all forms of racism, discriminationand violence, and the systemic barriers thatperpetuate them. The tragic, high-profile eventsof 2020 – including the senseless killings ofGeorge Floyd, Ahmaud Arbery and BreonnaTaylor – combined with previous incidentsinvolving too many other men and women ofcolor, spurred us to take bolder steps, faster,to increase equity at our company and in oursociety.We're creating a more diverse, inclusive andequitable working environment by developingtools and sharing resources for groups andleaders to use, establishing a clear baselineof where we are and defining operational andcommunication goals to get us where we needto go. We expanded our DEI resources, includingDEI staff, and formed a new partnership witha globally recognized consulting firm to helpaccelerate our journey.PAGE 11Issued acompanywidedeclarationagainst racismand injusticeLed acompanywide“emotional” safetystand downwith all employeesand contractorsSigned NewDetroit’sDeclaration ofWar on Racism;we continue to workwith New Detroit tofulfill its commitmentHeld CEO-led listening sessionswith groups of diverse employeesand community partnersto begin to better understand ourstakeholders and inform next stepsDirected – and continue to direct –suppliers and vendors to: Develop zero-tolerance policies relatedto racism, violence and discrimination Set goals to diversify their workforcesGranted 250,000 to the MichiganJustice Fundto reduce youth incarcerations and ensurethose who are returning home afterincarceration receive the support theyneedEngaged athird-partyDEI consultingpartnerto guide us on ourjourneyDeclaredJuneteenth2020 a dayoff for all DTEemployeesto learn, heal and actFormed a newDEI leadershippositionand expanded DEIstaff resources2020 DTE ENERGY SUSTAINABILITY SUMMARY

Trailblazing employment programsDid you know 70% of power outages are caused by trees?It’s true – and tree trimming is a common-sense solution topreventing outages from happening in the first place. Aswe continue to step up our tree-trimming efforts to keepour customers safe and our energy reliable, we’re launchinginnovative programming to make good-paying jobs availableto Michiganders, including qualifying individuals in need of afresh start.75%of Parnallgraduates areemployed withDTE suppliersDetroit Tree-Trimming AcademyIn April 2021, DTE launched a Detroit-based tree-trimmingprogram in partnership with the International Brotherhoodof Electrical Workers (IBEW) Local 17, Focus: HOPE and thecity of Detroit. The first program of its kind in the nation, ourtree-trimming academy will address barriers to employmentfor Detroiters and known causes of failure, e.g., lack ofchildcare or transportation options, in similar programs.Our training facility will operate year-round and trainsmall cohorts of up to 20 individuals in a six-weekurban arboriculture curriculum. We know through thisdiversification – and the unique experiences and insightsthese graduates will bring to our workforce – we’ll moveseveral steps closer to achieving our aspiration to be thebest-operated energy company in North America.Parnall Correctional Facility partnershipIn Summer 2019, we launched a first-of-its-kind workforcedevelopment program to train people with barriers toemployment in a skilled job. We partnered with the MichiganDepartment of Corrections and the IBEW Local 17 to developand launch a program at Parnall Correctional Facility’sVocational Village to train returning citizens for careers intree trimming. Students learn to safely climb trees, use treetrimming equipment and obtain commercial driver’s licenses.So far, more than 75% of graduates are employed with oursuppliers. We look forward to continuing to update youabout this program and the bright futures for these returningcitizens.PAGE 122020 DTE ENERGY SUSTAINABILITY SUMMARY

Building a cleanerenergy future forgenerations to comeLet us be clear: climate change is one of the definingissues of our era. We know it’s our duty to act – andthat’s exactly what we’re doing.Net-zero carbon emissions in ourelectric and gas utilities by 2050We're taking aggressive action to dramatically reducegreenhouse gas emissions as part of our net zerojourney, and in leading the effort to decarbonizeour state's economy. We firmly believe this is theright thing to do for our customers, business andthe communities we serve – and our efforts areimportant in our mission to provide our customerswith the safe, reliable and affordable energy theyexpect from us.PAGE 13DTE ELECTRICNet zerocarbonemissions by2050 50%carbon reductionby 203080%carbon reductionby 2040 from20052050 80%carbon reductionby 204035%emissionsreduction from ourcustomers by 2050DTE GASNet zerocarbonemissions byincluding our gas suppliers2020 DTE ENERGY SUSTAINABILITY SUMMARY

DTE Gas’ bold moves to lead our state,nation and industry forwardIn June, our natural gas business took anothersignificant step in our efforts to build a cleanerenergy future for Michigan – and our planet.In a first-in-the-nation commitment, DTE Gaswill reduce its greenhouse gas emissions tonet zero by 2050 – from procurement throughdelivery. And we’ll amplify this net zerocommitment by partnering with customers toaddress up to 100% of their own natural gascarbon footprint with programs that encourageenergy efficiency and participation in NaturalGas Balance, our company’s new and innovativevoluntary emissions offset program.CleanVision Natural Gas BalanceIn early 2021, we introduced our Natural GasBalance program, which gives our customersan easy way to offset the average home’sgreenhouse gas emissions. The program is thefirst in the nation to include both carbon offsetsPAGE 14and renewable natural gas. The carbonoffset program protects 24,000 acres ofMichigan forests that naturally absorbgreenhouse gases. Renewable natural gaswill be sourced by transforming agriculturalwaste, landfill emissions and wastewatertreatment plant by-products into usable gas.Natural Gas Balance offers customers away to affordably offset 25% to 100% ofgreenhouse gas emissions from an averagehome’s natural gas use. Together, we canimprove our environmental impact.Click here to learn more and to get startedtoday.By achievingnet zero carbonemissions by2050, we will:Reduce carbonemissions by6 millionmetric tons per yearThis is the equivalentof taking1.3 millioncars off the road2020 DTE ENERGY SUSTAINABILITY SUMMARY

Our transition from coal tocleaner, greener 24/7 energysourcesIn less than two years, DTE will retire three of ourfive remaining coal power plants. These plants – ourRiver Rouge, St. Clair and Trenton Channel powerplants – account for nearly 20% of our totalgeneration and will close one year earlier thanoriginally planned.Blue Water Energy Center: the underpinning of our clean energy transformation202120222022River RougePower PlantretirementSt. ClairPower PlantretirementTrenton ChannelPower PlantretirementThe Blue Water Energy Center (BWEC) will play a critical role in positioning us to continue to deliver safe, reliableenergy to our customers – and to achieve our carbon emissions reduction goals – when we begin retiring our coalplants. This 1 billion investment will be the most fuel-efficient power plant in Michigan when it comes onlinein 2022. It will be a critical component of a balanced energy mix and will provide 24/7, always available powergeneration our customers need when wind turbines and solar arrays aren’t able to produce electricity due toweather conditions or time of day.A just transitionWe continue to move forward with these closures asquickly as possible to achieve our carbon-reductiongoals in a way that promotes reliability across theenergy grid. We’re also working closely with ouremployees and impacted communities during thistransition to ensure our actions align with their bestinterests; one example is our ongoing commitment toretraining and/or relocating DTE team members whowork at these facilities.Blue Water Energy Center by the numbers:24/7energygeneration850,000homes could bepowered by BWEC'senergy 215Employs700union craftpersonnelmillionin Michiganspend*As of Feb. 2021PAGE 152020 DTE ENERGY SUSTAINABILITY SUMMARY

Looking ahead: our renewable energyplanOur new renewable energy plan is pendingthe Michigan Public Service Commission’sapproval. If approved, it will enable us toincrease our generation capacity from solarnearly tenfold. Through this additional solar,and other new wind and solar projects alreadyapproved, by 2022 we will generate enoughclean energy each year to power 900,000homes. This increased clean energy generationwill offset approximately 4.7 million metrictons of CO2 – equivalent to greenhouse gasemissions from more than 938,000 passengercars driven for a year.1 3 billionHarnessing the power of the wind and sun as clean energy sourcesin renewableenergyinvestments bythe end of2022SolarWe aim to provide the lowest-priced, most accessible solar power to our customers. We have big plansto add even more solar energy to the grid, enabling all Michiganders to benefit from this clean energyresource at the lowest cost. With our 31 solar farms, we’re already Michigan’s leading producer of – andinvestor in – solar energy. By the end of 2022, we hope to add five new solar parks, generating cleanenergy from nearly 1.4 million additional solar panels.WindOur wind parks are generating more than clean energy; they’re helping to strengthen Michigan’seconomy. Rural communities around the state are receiving added tax revenue and farmers and otherswho participate in our projects appreciate the extra income this provides. Our wind parks also provideadditional, local employment opportunities before, during and after a park is built.MIGreenPower – a clean energypartnership with our customersLaunched in 2017, MIGreenPower is avoluntary renewable energy program thatenables DTE Electric customers to attributea percentage of their energy use to our windand solar projects, adding more clean energyto the grid. The program provides customerswith a flexible, affordable way to make a bigdifference when it comes to protecting theenvironment and creating a cleaner Michiganfor all Michiganders.We thank all our customers enrolled inMIGreenPower for signing up to help us growMichigan’s clean energy economy and protectour environment for future generations.Click here for more information and to enrollin MIGreenPower today!1 Avoided emissions and equivalencies are based on the EnvironmentalProtection Agency equivalencies calculator at cies-calculator.PAGE 162020 DTE ENERGY SUSTAINABILITY SUMMARY

Introducing Polaris mersresidentialcustomersincluding:Ford Motor Co.General MotorsUniversity ofMichiganDetroit ZooIn April of 2020, we took anothersignificant step toward a cleanerenergy future by commissioning PolarisWind, Michigan’s largest wind park todate. Located in Gratiot County, PolarisWind will play a key role in positioningus to reduce carbon emissions by 50%by 2030*.68turbines64,000homes poweredBeyond clean energy generation: Polaris Wind’s local impactOffsets greenhouse gasemissions equivalent oftaking more than300jobs createdduringconstruction8permanentwind technicianpositionscreatedStable income forfor participatinglandownersNew tax revenue tofund roads, schools,emergency servicesand other needs76,000gasoline-poweredcars off the road fora year*From 2005 levelsPAGE 172020 DTE ENERGY SUSTAINABILITY SUMMARY

Clean water and safe habitatsWe withdraw water from rivers and lakes for coolingpurposes in power plant and gas compressor stationoperations. A fraction of this water is consumed duringthese processes, but most of it is safely returned tolakes and streams.We employ practical land-management andconservation techniques to protect and conserve waterresources at our facilities and properties, and we'restriving to be more efficient with water usage. Wealso maintain thousands of acres of land in its naturalstate – and provide habitats for hundreds of speciesof plants, birds, mammals, fish and insects. All of thishelps to maintain our state and planet’s natural beautyfor all to enjoy now and in the future.36 sitescertified by theWildlife HabitatCouncilPAGE 182020 DTE ENERGY SUSTAINABILITY SUMMARY

Building a safer, smarter andmore reliable energy gridDespite the many challenges 2020 brought to us, we forgedahead on our mission to be the best-operated energy companyin North America. We know achieving this aspiration beginsand ends with delivering energy that’s safer, cleaner and morereliable and affordable, so we’ve invested heavily in tree trimmingand equipment upgrades to make our energy grid stronger andsmarter. In fact, we've already improved electric reliability 25% onaverage in southeast Michigan. 1 billionClick here to learn more about our electric reliability efforts.invested in2020Electric reliability improvements in 202013,000utilitypolesinspected andupgradedSEATTLE31,500wood crossarmsupgraded tofiberglass onoverheadcircuits209milesof agingcircuitsupgraded5,500 miles of trees trimmed25%averageelectricreliabilityimprovement insoutheastMichigan*DETROITThis is equivalent to the distancebetween Detroit and Seattle*Compared to 2019PAGE 192020 DTE ENERGY SUSTAINABILITY SUMMARY

Creating a next-gen natural infrastructure – and newjobs – statewideNatural gas is a convenient and environmentally friendlyenergy source for residential and business customers. Evenbetter, it’s locally produced and reliable. Through our 1.6billion investment in upgrading our natural gas infrastructure– including pipelines, system upgrades and technology –serving Michigan neighborhoods and businesses, we’ll createand support more than 8,500 jobs in our home state ofMichigan.Natural gas reliability improvementsin 2020220 milesof natural gasmains and pipelinesupgraded300,000meter safetyinspections26,000natural gas metersrelocated to outsidehomes/officesWe also completed phase one of our 1 million NorthernMichigan Reinvestment Project, which helps minimizecustomer disruptions during routine pipeline maintenance– or in the unlikely event of an emergency – for 91,000DTE Gas customers in northern Michigan. This project alsoprovides an estimated 1.4 million in annual tax revenue thatsupports local communities.PAGE 202020 DTE ENERGY SUSTAINABILITY SUMMARY

Before we go On behalf of DTE and it’s 10,000-plus employees, wethank you for your interest in our company. At DTE, ourapproach to doing business is rooted in our aspirationsto be a force for good in our communities, and to bethe best-operated energy company in North America.We’re proud of the progress we made toward theseaspirations in 2020 and look forward to continuingour mission to achieve them alongside our customers,and community and legislative partners, this year andbeyond.If you’re interested in diving deeper into ourenvironmental, social and corporate governance efforts,you can view additional reports here.Please reach out to impact@dteenergy.com withquestions.PAGE 212020 DTE ENERGY SUSTAINABILITY SUMMARY

them reduce their energy costs in 2020 and beyond. 350 million saved by customers through DTE energy efficiency programs in 2020 31,000 free Home Energy Consultations were conducted, and more than 530,000 free energy-saving products, such as LED lights, smart thermostats and water aerators were installed in homes 11 million dedicated to our Low