SRP B iz Bytes: Sustainability Solutions for your Business

1. SRP Biz Bytes: Sustainability Solutions for your Business March 28, 2019

2. SRP 2035 Sustainability Goals COMMITTED TO A SUSTAINABLE FUTURE Sustainability Policy & Programs

3. Striking the Right Balance COMMITTED TO A SUSTAINABLE FUTURE

4. What is Sustainability for SRP? COMMITTED TO A SUSTAINABLE FUTURE Recognizing our responsibilities to future generations, Sustainability at SRP means: • Strengthening our ongoing stewardship of natural resources; • Proactively addressing our customers’ and communities’ priorities; and • Maintaining our strong commitment to fiscal responsibility, while responding to a rapidly changing industry

5. Major Sustainability Trends COMMITTED TO A SUSTAINABLE FUTURE

6. COMMITTED TO A SUSTAINABLE FUTURE Reduce Carbon Footprint The energy sector is responsible for about one-third of greenhouse gas (GHG) emissions in the U.S. SRP will strive to decrease carbon dioxide (CO2) emissions, the primary GHG, from power generation, our internal operations and through other initiatives. Reduce carbon emissions intensity from generation by 33%. Goals: Reducing the amount of CO2 emitted (per MWh) by 33%. Reducing CO2 from our offices and fleet by 30%.

7. COMMITTED TO A SUSTAINABLE FUTURE Reduce Carbon Footprint Goal: Reduce the amount of CO2 emitted (per MWh) by 33% Pathway to get there: Working toward a cleaner energy mix, which includes reducing our coal generation and increasing our use of renewable energy.

8. COMMITTED TO A SUSTAINABLE FUTURE Reduce Carbon Footprint Goal: Reduce CO2 from our offices and fleet by 30% Pathways to get there: Implementing ambitious energy efficiency measures that include upgrading lighting, and heating and cooling systems, and retrofitting or building new facilities to achieve LEED Gold ratings. Reducing the size of our fleet and converting gasoline to hybrid and/or electric vehicles.

9. Ensure Water Resiliency COMMITTED TO A SUSTAINABLE FUTURE Through ongoing water management and conservation efforts and by exploring new water resources, SRP will continue to maintain a safe, reliable and resilient water supply. Reduce water use at SRP facilities by 45%. Goals: Reduce water use at our facilities by 45%. Deploy new technology with continued diligent canal maintenance to ensure that water lost from canal deliveries does not exceed 5% on a 10-year rolling average, which surpasses state standards. Eliminate depletion of groundwater at Phoenix-area power plants by offsetting it with an equal amount that is stored underground. Increase underground water storage by 1 million acre-feet – that’s almost 326 billion gallons. Use our expertise to help cities add 25,000 acre-feet per year (8.15 million gallons) of renewable water supplies to meet growing needs.

10. Promote A Sustainable Supply Chain, Reduce Waste COMMITTED TO A SUSTAINABLE FUTURE SRP will manage our product choices and purchasing strategies to encourage sustainable best practices. We are recognized for our efforts in recycling, reuse and repurposing operational waste materials to keep them out of landfills. • Goals: Keep out of landfills: • 95% of operational waste such as office furniture, electronics, power poles, cable and equipment. • 50% of our standard office waste including paper, food cartons and plastic bottles. • Incorporate sustainability criteria into decision-making for 80% of the goods and services we buy, except fuel.

11. Modernize The Energy Grid COMMITTED TO A SUSTAINABLE FUTURE SRP will continue to ensure the reliability, flexibility and security of our grid through innovative applications, optimizing existing resources and robust monitoring and analytics. This will enable customers to take advantage of advanced technologies and energy solutions. Ensure unified communication infrastructures are in place to proactively support all necessary grid and customer communication requirements. Goal: Deliver a smarter grid that enables the adoption of new technologies and optimizes SRP resources to meet and exceed customer expectations.

12. Engage With Our Communities COMMITTED TO A SUSTAINABLE FUTURE SRP is committed to building a sustainable future for all, leading by example and enhancing the communities in which we live and serve. We connect the values of our customers and employees to our business practices each day. Goals: Achieve at least 80% of customers who give SRP a positive rating for its sustainability efforts. Grow employee engagement in SRP’s programs and volunteer efforts that contribute to sustainability initiatives at SRP and in the community. Proactively and transparently communicate our progress on sustainability initiatives to our customers and stakeholders.

13. More information:https://www.srpnet.com/2035 COMMITTED TO A SUSTAINABLE FUTURE

14. Community Stewardship: Sustainability

15. Agenda Who and What we are Brand Personality Mission, Vision, Core Values Employee Promise Expectations How Community Stewardship is Managed Conservation Committee Programs

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17. OdySea Aquarium We take you on a journey of a drop of water as it falls from the sky into the lakes and rivers. The rivers wind their way to the shores and down to the vast ocean. At each stage of the drop’s journey you will experience a unique environment teeming with animal and plant life to explore. From fresh water to salt water, bayous to swamps, and coral reefs to the ocean’s deep abyss, your adventure awaits.

18. OdySea Aquarium Brand Position OdySea Aquarium delivers an awe-inspiring, entertaining, and educational adventure by using theme park style entertainment to create innovative, interactive ways for guests of all ages to experience aquatic life.

20. MISSION “We deliver amazing guest experiences that create fun memories, heighten animal awareness, and inspire change, while fostering growth for our team members.” • • • VISION “Our innovation will drive beneficial change by inspiring people to conserve aquatic resources and protect the animal world.” • • • CORE VALUES HONESTY:Transparency in all aspects INTEGRITY: Do what is right, not popular DEDICATED:People, animals and environment RESPECTFUL:Resources & Community GRATITUDE:Who we are, what we do & the ability to create it COLLABORATE:To better ourselves, our communities & the world

22. OdySea Aquarium is a serious business, however we are in the fun business Guest Experience 22

23. Team Member Expectations 23

24. COMMUNITY STEWARDSHIP PROGRAM GUIDING PRINCIPLE NATIONAL/GLOBAL Mission, Vision & Core Values Unified Community Stewardship Vision Unified Leadership Team All team members working together – one mission LOCAL Association of Zoos & Aquariums Accreditation 24

25. Community Stewardship Pillars Animal Conservation • Habitat Conservation • Resource Utilization • Energy Management • OdySea Aquarium Foundation • Community Impact 25

26. Conservation Committee Mission: Engage – Inspire – Empower – to conserve and protect the resources and biodiversity of the world. Vision: Develop OdySea Aquarium into a world leader and mentor for conservation initiatives. 26

27. Conservation Committee Strategies • Community Involvement • Partnerships/Collaborative Projects • Education • Communication • Innovative Initiatives • Research/Knowledge Sharing • Breeding Programs • Ethical Responsibility 24 Page Document!!! 27

28. Internal Sustainability/ Green Initiatives • OdySea Aquarium and its partners make a concerted effort to be environmentally-conscious in the building design, operations, and interactions. These initiatives focus on conserving natural resources and being environmentally responsible. OdySea Aquarium participates in various conservation initiatives and encourages team members and its guests to be active participants as stewards of the environment. These efforts provide field experiences; assist with habitat restoration; and foster connections with the local community. The initiatives and community partnerships increase public awareness of endangered animals and conservation efforts and emphasize the importance of preserving ecosystems. • OdySea Aquarium Daily Operations • Comprehensive Recycling Program with plastic, bottles, paper, and batteries, as well as pallets from deliveries. • Composting 100% of all unusable fish and vegetable waste through a partnership with Recycle City. This compost can eventually be used in Odysea Aquarium’s enrichment garden which is currently under development. The vegetables from the garden will be fed out to some of OdySea’s animals minimizing our carbon footprint. • Use of recycled paper towels throughout the aquarium. • Developed and proposed capital plan to add a backwash recovery system that will be able to accommodate 50-75% of all exhibit water to be treated and reused, thus reducing yearly salt requirements significantly. • Streamlined and implemented efficient exhibit and back of house (BOH) lighting plan which minimizes unnecessary lights, thus reducing electrical needs, remaining on throughout non-operating hours. • Completed a capital plan that install variable frequency drives to all existing Life Support Systems pumps (95 total) which significantly reduced electrical consumption as well as increase the pump motor life by providing a soft start feature for each unit. • Replaced 1,164 fluorescent lights with energy efficient LED lights for a 50% yearly savings on electricity. • Negotiating with potential vendors for solar electricity design building. If approved, design will add solar panels to proposed new covered parking areas for guests and Team Members. Projected energy savings of $600,000 - $700,000 a year. • Aggressive schedule for HVAC system that is adjusted to the season to save on energy use. • Installed environmentally-aware Fish Eye smart-sensor cognitive lighting that autonomously adjusts according to the amount of ambient lighting from windows and skylights • Building was designed with 12” thick tilt walls which provides insulation value that enables OdySea Aquarium to minimize heating costs. • Through partnership with Monterey Aquarium Seafood Watch, Odysea Aquarium is displaying their traveling kiosk which teaches guests about sustainable seafood. 28

29. Lighthouse Café/Aramark/Blue Culinary Creations • Working with vendors to source local and regional responsibly raised produce whenever seasonally available. • Supporting local suppliers, such as Poore Brothers, Queen Creek Olive Mill, Sun Orchard, Denmark Sausage Company • Extra produce from Aramark donated for animal consumption or composted through Recycle City Partnership. • Seasonal catering and retail menus maximize the potential of procuring local items and reducing the carbon footprint of food served. • Sustainably certified coffee and tea served in café and catering (Eco Grounds) as well as composted with Odysea Aquarium’s partnership with Recycle City. • Humanely certified animal products available in café and for catering events. • Arizona-grown beef served in the Lighthouse Café, as well as for banquets and catering. • Hickman Farms (local farm) 100% cage-free shell eggs. • Banquets and catering follow the strict guidelines of the Monterey Bay Aquarium’s Seafood Watch program, only serving green listed seafood items. • Recyclable and compostable service ware at café and catering events (EcoProducts) • 90% better for the environment from moment of purchase. No petroleum used in the production of the product • 100% Green Seal Certified cleaning products used in all dining facilities. • Excess food donated to hungry people in Arizona through local Waste Not (i.e. USAA event on 5/26/17) • All zero waste efforts being made by recycling any leftover produce and proteins to feed the animals throughout the aquarium or composted. • Energy and water saving appliances and fixtures used whenever possible. • Equipment is deep cleaned regularly to maximize efficiency • Plastic bag free environment • Drink refill program (return your cup for $1.50 refills) • We have partnered with www.cannedwater4kids.org to replace plastic water bottles sold in the aquarium café. Water is now sold in metal cans which can be recycled more readily. Canned Water 4 Kids long term goal is to provide sustainable, clean drinking water toall of the children in the world. 95% of the proceeds of the canned water sold in house are used to work toward this end goal. • Comprehensive recycling program for all waste in the café’. • OdySea Treasures/Event Network • Promote the skip the bag option and the use of reusable bags. • Encourage the use of metal water bottles instead of single-use plastic. • Provide multiple sustainable souvenir options. • Provide “Green Toys” purchase option. Green Toys are made from 100% recycled plastic and use less packaging. • Sell the 4Ocean bracelets to fund the removal of trash from the ocean • Sell books focused on conservation. • Sell clothing products made with recycled plastic bottles. • Sell Bee’s Wrap Sustainable Food Storage. • New “Green” Product Knowledge Signage – In order to better highlight and showcase the proposed conservation stories, new signs made from recycled board call out any sustainable/recycled/green products around the store. Signs are informational, calling out specific product attributes related to promoting a healthy, sustainable lifestyle and providing specific provenance and factoids, as appropriate, related to materials and manufacturing methods. • New Print Materials – Falconboard is made primarily from renewable forest resources and is completely recyclable. It is approved for the Sustainable Forest Initiative (SFI) certified sourcing label indicating renewable virgin and post-consumer recycled fibers. 29

30. Partnerships and Collaborators • Association of Zoos & Aquariums (AZA) • International Marine Animal Trainers’ Association (IMATA) • North American Association for Environmental Education (NAAEE) • Arizona Association for Environmental Education (AAEE) • Arizona Game & Fish Department (AZGFD) • Phoenix Herpetological Society (PHS) • Arizona Humane Society (AHS) • SANCCOB • The Turtle Hospital • Sea Turtle Inc. • Beasley Turtle Rescue Center • Turtle Conservancy • Monterey Bay Aquarium’s Seafood Watch • Sharks4Kids • Project SAFE (Save Animals From Extinction) Sea Turtles, Sharks & Rays, Penguins • SECORE International • Project Piaba • The Nature Conservancy • University of Arizona’s Marine Awareness & Conservation Society (MACS) Club • Viva Vaquita • Project WET • SciGirls • Maricopa County Educational Service Agency (MCESA) • Treasures 4 Teachers • Phoenix Art Museum • Singh Farms • Ocean Conservancy • ASU’s Public Service Academy’s Community Impact Lab • Scottsdale Art League • Canned Water 4 Kids • United States Forest Service (USFS)- Mesa Ranger District • Friends of the Tonto national Forest • Recycle City • Natural Restorations 30

31. SRP Partnership LED Bulb Program 1,164 Bulbs Save ~$18K/Year VFD Program 85 Motors Changed Save ~$70K/Year 31

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33. Conservation Expo – 40 booths set up 33

34. Education Examples: • Plastics & Ocean Impact • Connection to Ocean’s ingredients • Sustainable Fisheries • Vanishing Cephlapod • Ocean Oddities • Captivated by Corals

36. Mission, Vision & Core Values Clear Direction and Expectations Regardless of Title or Function Unified Leadership Team Community Stewardship Goals Achieved All team members working together – one mission Accountability

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38. Thank you!

39. Sustainability Tips For Your Business

41. Goals of LFA Sustainability Program • Resiliency • Education • Assistance • Participation • Support

42. Tip 1: Develop Environmental Policy A policy usually contains the following components: • A declaration of your company’s commitment to the environment. • A concise description of what your company is trying to achieve with your environmental goals and how you will accomplish your goals. • A commitment to prevent pollution and to continuously improve environmental performance. • A commitment to keeping employees and community members safe. • A statement of the strategies and actions your business is willing to undertake to meet its commitments. • Put it in writing • Be transparent • Choose measurable impact over casual commitments

43. Helene’s Company is committed to operating in an environmentally friendly manner. Our goals are to: 1. Minimize environmental impacts in the areas of energy and water kWh energy use at office: Reduce to under than 21,000 kWh this year. Perform annual water audit to determine ways to lower water usage by 20%. 2. Ensure our supply chain has responsible social and environmental practices. Percentage of vendors used who meet company minimum sustainability guidelines: 75% of vendors compliant. 3. Replace 75% of chemicals used in cleaning with natural products, with a goal of converting to 100% natural products by December 2020.

44. Tip 2: Analyze Your Supply Chain • Who are you doing business with? • Locally owned • Certified Green Business • What are you purchasing? • End of life • Recycled content • Responsibly sourced, repurposed materials • Is your purchasing centralized? • Put it in writing!

45. Tip 3: Measure What Matters Waste • Perform a waste audit twice a year • Measure by weight or volume • Pay attention to dumpster Water & Energy • Monitor bills for spikes • Perform an audit once a year • Portfolio Manager

46. Tip 4: Form A Green Team • Empower Employees • Accountability • Make it fun

47. Tip 5: Participate • Learn about your City’s sustainability initiatives • Engage with City sustainability officers • Participate in Climate Action Plan & Stakeholder groups • Add your business to campaigns • Support environmental nonprofits

48. Tip 6: Continuing Education • LFA Sustainability series • ASU School of Sustainability lecture series • Find your group

49. Tip 7: Get Certified • Arizona Green Business Program • Phoenix Green Business Leader • Avondale Green Business Program

50. Thank You! Helene Tack Director of Sustainability Initiatives Local First Arizona Helene@localfirstaz.com 602.956.0909 x 6