ESG

A Message from Our CEO

CREATING LONG-TERM SUSTAINABLE VALUE & PROFITABLE GROWTH

Sunrun is at the forefront of a customer-led energy revolution. We are only at the start of a tremendous shift toward electrification, with greater adoption of all-electric appliances and electric vehicles amid rising utility rates and continued stress on the grid. Sunrun is making locally-generated, affordable, and reliable energy accessible to millions of families across America.

2023 was a year marked by both industry and macroeconomic challenges, which have given us an opportunity to transform our business to be storage-first, providing families with the most pro-consumer products and superior value by improving energy resilience and control.

Nothing is more important than the well-being and safety of our people and communities. Sunrun's culture is based on the principle of always putting safety first. In 2023, we continued to invest in our people, equipment, and technology to ensure that workplace safety remains a top priority for all employees. I am pleased to report that we achieved a 18% improvement in our key safety metric (DART rate), exceeding our target, resulting in a significant decrease in serious accidents and safety violations.

At Sunrun We Start With Safety

Nothing is more important than the well-being and safety of our people and communities. Sunrun's culture is based on the principle of always putting safety first. In 2023, we continued to invest in our people, equipment, and technology to ensure that workplace safety remains a top priority for all employees. I am pleased to report that we achieved a 18% improvement in our key safety metric (DART rate), exceeding our target, resulting in a significant decrease in serious accidents and safety violations.

Creating Long-Term Sustainable Value and Profitable Growth

We remain focused on generating long-term value and sustainable, profitable growth for our customers, employees, and stockholders. In 2023, we added nearly 136,000 Customers, bringing our customer base to over 933,000 Customers and representing 6.7 gigawatts of Networked Solar Capacity.

As we reshaped our business to be storage-first, our storage attachment rate increased throughout the year, starting at approximately 15% of new customers’ homes and rising to over 45% by the end of the year. We currently have more than 90,000 solar and storage systems installed, representing over 1.3 gigawatt hours of Networked Storage Capacity. Our fleet is growing in significance and is already at a scale that could replace multiple polluting peaker power plants. For instance, these resources could power a city like San Francisco for multiple hours and do so daily as batteries are recharged from the sun. As our base of valuable energy resources continues to grow, we anticipate that more utilities, regulators, and grid operators will look to our networked fleet of solar and storage systems as a valuable resource for meeting the grid’s growing demands.

Delighting Our Customers

We have set a high standard for what the Sunrun customer experience should be, and we’re seeing considerable improvement in our business metrics because of it. Our average Net Promoter Score at the time of installation reached a remarkable 73 points at the end of the year, and our online reviews on key consumer sites have also improved significantly.

Our unwavering commitment to consumer protection and understanding our customers' growing energy needs have led us to develop a lineup of clean energy products and an educated workforce committed to providing a personalized energy experience for customers of all backgrounds every day.

In 2023, our customers powered through over half a million power outages, with our batteries providing them approximately 1.8 million hours of backup power. Every day, our products and services improve the lives of approximately 2.4 million Americans. We are committed to continuing to develop and improve our products and services to ensure that our customers have an exceptional experience throughout their energy journey.

Building the Best Team on the Planet

Our ability to provide a personalized customer experience and make a positive difference for our planet is dependent on the diverse perspectives from smart, passionate, and committed people from all backgrounds. In 2023, we continued to prioritize the diversification of our workforce and increased Black, Indigenous, and people of color representation in people-leadership positions. Sunrun is currently an industry leader, with 52% of our workforce being ethnically diverse.

Having the best team entails providing them with the best training and knowledge. In 2023, we reinforced our commitment to learning and development, completing 307,000 learning and training courses. More than 1,700 employees have enrolled in PowerU, our fully-funded employee education and upskilling program. Over 600 employees have received promotions after enrolling in a PowerU program. This demonstrates our employees' enthusiasm and dedication to professional development, as well as Sunrun's commitment to providing chances for growth and promotion.

A Sustainable Future for Everyone

We give our customers access to products that provide them with energy security, predictability, and peace of mind. Since 2007, our solar energy systems have generated 32.4 billion kilowatt-hours of solar energy, enabling the avoidance of 18 million metric tons of CO2e from entering the atmosphere.

As part of our goal to achieve net-zero emissions across our operations by 2040, we are increasing our use of electric or hybrid vehicles and investing in last-mile initiatives to bring solar and storage systems to our customers' doorsteps. And, as we deploy more solar energy systems, we are increasing our focus on managing their end-of-life cycle. In 2023, Sunrun redeployed or recycled 100% of solar panels, batteries, and inverters with manufacturers and qualified recycling providers.

The accomplishments of the last year reflect the skill, dedication, and hard work of our teams around the country. It has been a joy to meet and speak with many of our employees, customers, and stockholders about Sunrun's position as the nation's leading solar, storage, and home electrification company, as well as how we can continue to provide the best customer service in the industry.

I want to recognize the thousands of Sunrunners who are accelerating the customer-led energy revolution while upholding our strong culture of safety and efficiency. I am confident that we will continue to capitalize on market trends and expand our position by remaining customer-focused and long-term oriented.