Environmental, Social, Governance and Sustainability Report

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2021

Environmental,
Social, Governance and
Sustainability Report

Consistent with Edison Electric Institute (EEI) and American Gas Association (AGA) template
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  2

A Letter from Our President and CEO


At CMS Energy, we strive to lead in everything we do. It’s leadership that drives our purpose of World Class
Performance Delivering Hometown Service. I’m proud of our more than 9,300 co-workers, including the more
than 8,700 at our largest subsidiary, Consumers Energy. Together, they provide essential services to customers
throughout Michigan’s Lower Peninsula. They share a deep commitment to deliver on our promise to serve our
customers, our communities, our investors, our state and each other. Throughout this report, you’ll read about
the many ways we’re creating a sustainable energy future for Michigan. These include:

Leading the clean energy transformation through our pledge


to our triple bottom line – people, planet and prosperity.

We’re proud of our recent pledge to deliver industry leading net zero methane and carbon emission
targets for our customers, investors and our planet — it’s the opportunity of our generation. Our success
in this important work depends on partnering with our customers to optimize energy demands in
innovative ways like our energy efficiency programs. We’ll also continue our legacy of justly and equitably
transitioning our co-workers and supporting our communities as our coal plants close.

Delivering excellence that’s grounded in our commitment to our corporate values.

We must never lose sight that we’re here to serve our customers, co-workers, communities and investors,
our state and each other. Our service is more than just delivering electricity and natural gas — it’s light
and heat, economic vitality and the quality of life that our customers and communities have come to
expect. My co-workers show up every day with a heart of service, while recognizing that we can always
do better. We can always improve the value we provide for our customers. We can always work safer. It’s a
commitment to Excellence.

Creating an environment where all contributions are


heard and valued, and everyone knows they belong.

“I see you, and you belong.” That’s the title of our Diversity, Equity and Inclusion statement. This is
an important statement because it opens us up to see each other and create spaces where everyone
belongs. We cannot afford to think of the events of the past year as just moments in time. They must
be a movement — a sustained motion that spurs transformation. As a leader, I choose movement.

This report includes data showing our environmental, social and governance (ESG) performance. You’ll also read
stories about how our performance shows up in service to our customers, our communities and our state. It’s my
hope you’ll come away inspired by all we’re doing to cultivate a brighter, cleaner future.

Garrick J. Rochow
President and Chief Executive Officer • CMS Energy and Consumers Energy
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  3

About This Report


CMS Energy has integrated sustainable practices throughout our corporation. Our
commitment to our triple bottom line — people, planet and prosperity — is our
foundation. As the parent company of Michigan’s largest utility, Consumers Energy,
Consideration of
consideration of environmental, social and governance (ESG) issues is embedded environmental, social
in our strategy, business planning and enterprise risk management processes.
These commitments align with our purpose: World Class Performance Delivering
and governance issues is
Hometown Service. The triple bottom line balances the interests of all stakeholders, embedded in our strategy,
including co-workers, customers, suppliers, regulators, Michigan residents and the
investment community.
business planning
CMS Energy participates in a voluntary industry initiative, coordinated by the
and enterprise risk
Edison Electric Institute (EEI) and the American Gas Association (AGA), to management processes.
provide the public, our customers and shareholders uniform and consistent ESG
and sustainability-related metrics. This report supplements our existing disclosures
on these issues, including the content on our sustainability website, which shares
more about our sustainability efforts.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  4

SECTION 1

Our Sustainability Story

Environment
Our commitment to the environment is a pillar of our sustainability efforts. Our Clean Early Elimination
Energy Plan is one way we demonstrate that commitment, but we also focus on many other
environmental goals across our business operations to better serve Michigan’s future. of Coal Will:
Reduce carbon dioxide
Clean Energy Plan emissions by 63 million tons.

In June 2021, we announced a sweeping proposal to power Michigan’s future with clean energy.
Our Clean Energy Plan, also referred to as our Integrated Resource Plan, is a bold, 20-year
blueprint to guide our electric business. It positions us as an industry leader and protects the
environment for generations to come. The plan, which requires regulatory approval, will:
• End coal use by 2025 – 15 years sooner than planned: Accelerating the Which is like parking all of the
elimination of coal as a fuel source for electricity will dramatically improve air registered automobiles in Michigan,
Illinois and Ohio for a year.
quality, cut greenhouse gas emissions, reduce waste sent to landfills and save
water. Reduce 220 billion gallons
• Increase renewable energy: By 2040, more than 60% of our electric of water use from our electric
capacity will come from renewable sources. We’ve already begun tapping generating system each year.
more solar power and plan to add nearly 8,000 megawatts by 2040.
• Transition to a smarter grid: Energy efficiency programs and emerging
technologies, such as grid modernization and battery storage, will help us
lower peak customer demand and deliver the precise amount of electricity that
Michigan needs. Which equals more than
5 billion bathtubs of water.
• Offer more control and savings for customers: We’ll provide customers with
the power to increase energy efficiency and save money. Their participation is key Avoid 3 billion cubic
to our success. We expect to save customers about $650 million through 2040. yards of coal ash waste
from our electric
• Create a flexible strategy: Our plan is designed to respond to emerging needs, generating system.
adapt to changing conditions and embrace new, innovative technologies as we
work to achieve net zero carbon emissions.
• Ensure reliability through natural gas-fired plants: During this historic
transition away from coal generation, we plan to acquire four existing natural
gas-fired power plants.
Which equals about 200 million
This plan would also help us reduce carbon emissions from owned generation by about 80% dump trucks full of dirt.
from 2005 levels by 2040. These aggressive proposed reductions are faster than required by the
Intergovernmental Panel on Climate Change’s recommendation to limit global temperature
increases to less than 1.5 degrees Celsius and Michigan’s net zero goal, which is part of an
executive order for the state to reach 100% carbon neutrality by 2050.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  5

“We’re determined to do what’s right, not merely what’s required, to protect Michigan’s
environment while supplying the energy we’ll need for decades to come,” said Garrick
Rochow, president and CEO of CMS Energy and Consumers Energy.
We’re also a proud member of the Low-Carbon Resources Initiative, a five-year effort led
by the Electric Power Research Institute and the Gas Technology Institute to accelerate
the development and use of low-carbon energy technologies.

Renewable Energy
Our Clean Energy Plan also includes major expansions of our renewable generation
by 2040. We plan to add capacity incrementally, allowing flexibility in planning and
resource type to adapt to changing conditions. Our goal is to add nearly 8,000 megawatts
of solar energy in the 2020s and 2030s. We plan to add the solar capacity, a mix of owned
and purchased power, through a competitively bid annual solicitation process to keep
costs low.
The 2021 Clean Energy Plan forecasts renewable capacity levels of:
• 35% by 2025
• 47% by 2030
• 63% by 2040
When our renewable generation is combined with our advances in energy storage and
customer efficiency programs, we plan to meet our customers’ electricity needs on the
hottest days with 90% clean energy resources. In addition, since 2005, our renewable
nameplate capacity, including from power purchase agreements, has grown from 3% to
11%. We look forward to continued growth as we transition from coal to renewables in
support of our Clean Energy Plan.
We currently own and operate four wind parks in Michigan: Lake Winds Energy Park
in Mason County (100 MW), Cross Winds Energy Park (231 MW) in Tuscola County,
Crescent Wind Farm (166 MW) in Hillsdale County and Gratiot Farms Wind Project
(150 MW) in Gratiot County. The Heartland Wind Farm (about 200 MW) in Gratiot
County is scheduled to come online in 2022.
Our efforts to increase new renewable energy sources extend beyond wind parks.
We’ve also:
• Procured about 300 megawatts of new solar capacity, including
the Calhoun Solar Center (140 MW) and the Mustang Mile
project (150 MW) scheduled to come online in 2022. We plan to
add 300 MW in 2023 and plan for another 500 MW in 2024.
• Expanded available capacity of our Solar Gardens program to
include a new 500-kilowatt (kW) site in Cadillac. This resource,
along with the existing 3-MW site at Grand Valley State University
and the 1-MW site at Western Michigan University, provide an
easy and affordable way for customers to subscribe to solar energy
without having to purchase and install their own panels.

Planet Goals Update


In 2018, we affirmed our commitment to We’ve met each of our planet goals and are
protect the planet by pursuing five-year evaluating new targets for the coming years.
goals to:  Our goals were met by company-wide
efforts like clean-ups, improving wildlife
• Save 1 billion gallons of water. habitats, increasing recycling at our facili-
• Enhance, restore or protect  ties and finding new ways to reduce water
5,000 acres of land in Michigan. consumption.
• Reduce waste sent to landfills by 35%.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  6

• Served the needs of businesses in meeting their sustainability goals through


the Large Customer Renewable Energy Program, which expanded from
155,000 MWh to 400,000 MWh of available capacity in 2020. Customer
demand has increased significantly for corporate renewable procurement.
• Launched four new Renewable Energy Credit pilots in 2021, which provided
an expanded set of options for business customers to get renewable energy
credits from Michigan and national resources. The new Michigan REC
pilot is also available to residential and business customers who choose to
match a portion (or all) of their electric use with renewable energy credits.

Energy Efficiency
Three Organizations
Our Clean Energy Plan relies on energy efficiency as a key to reduce our company’s carbon
emissions to build a more sustainable future for Michigan.
Recognized with
Energy Efficiency
“Reducing energy is good for people, the planet and Michigan’s prosperity by saving money Project of the Year
for household budgets, reducing carbon emissions and putting people to work,” said Brian
Rich, Consumers Energy’s Senior Vice President and Chief Customer Officer.
Awards
From schools to packaging
In 2020, our energy efficiency programs helped customers save nearly $700,000 on their manufacturers to breweries –
energy bills and boosted our total customer savings $3.9 billion from 2009 through companies across the state are
2020. They also prevented more than 18.7 million tons of carbon dioxide emissions. The embracing energy efficiency and a
cumulative 2009-2020 savings are equivalent to supplying electricity to more than 2.5 clean energy future for Michigan.
Three of those organizations –
million homes and natural gas to 1 million homes for a year. Westwood Heights School District
We received the U.S. Environmental Protection Agency’s 2021 ENERGY STAR® Partner of of Flint, Graphic Packaging
International and Presidential
the Year Sustained Excellence Award in recognition of our efforts. Brewing Company of Portage – were
honored with 2019 Consumers Energy
Energy Efficiency Project of the Year
Electric Vehicle Programs awards.
The awards highlight specific
In 2019, Consumers Energy launched the PowerMIDriveTM program, a three-year effort projects demonstrating a
to expand charging and grid capabilities to help customers realize the economic and commitment to reduce energy use,
environmental benefits of electric vehicles (EVs). The additional charging stations reduce save customers money and protect
the anxiety many consumers feel about not knowing if their cars will have enough power our planet for future generations.
Westwood Heights partnered
to reach their destinations. Since the program launched, we’ve increased EV charging
with Unesco to install new HVAC
capabilities and public charging infrastructure across our electric service territory. In equipment, LED lighting and controls
many cases, we’ve done so through providing rebates to customers, businesses and agencies in the district’s Michael Hanady
wishing to join in the success of Michigan’s transition to EVs. We’ve also partnered with the Middle & High School to save energy
Michigan Department of Environment, Great Lakes and Energy (EGLE) to provide 24, of a and money and improve the learning
environment for students and
planned 36, direct-current fast charger rebates across the Lower Peninsula of Michigan.
teachers.
Consumers Energy also enrolled more than 700 customers in a year-round time-of-use “Actions speak louder than words”
said Jill Diliberti, Energy Manager
rate, which provides lower rates for EV charging during off-peak hours when energy use
at Genesee Intermediate School
is normally at its lowest. Initial data showed this rate successfully encouraged off-peak District. “Seeing the changes at the
charging, with about 90% of charging happening during off-peak times on weekdays and school, how it’s a well-lit, comfortable
over 78% off-peak charging on weekends. learning environment, that speaks
volumes.”
In 2021, Consumers Energy launched PowerMIFleetTM, a three-year pilot program designed
to help fleet owners transition to electric vehicles while keeping the grid operating efficiently + Learn More Here
and sustainably for all customers. The program offers assessments, rebates and electrical
upgrades to help business customers get their sites ready for EVs.
We’re also electrifying our own fleet. We’ve set a goal to electrify 30% of our fleet over the
next 10 years, including our light-duty vehicles. We expect the transition will save more
than $17 million over those vehicles lifetimes. Currently, 5.5% of our vehicles are electric.
We have over 90 all-electric or plug-in hybrids on the roads today. We’re incorporating
changes in a structured approach that ensures the technology will meet the demands of
service and that we remain agile in the process.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  7

Improving Our Electric Infrastructure


A sustainable future also means strengthening our grid to prepare for climate
change effects like more frequent and severe storms. In 2021, we filed an updated
Electric Distribution Infrastructure Investment Plan (EDIIP), which is a blueprint of our
five-year strategy to improve our electric distribution system and the reliability of our
grid. Our plans dedicate over $1 billion annually to projects to reduce the number and
duration of power outages for our 1.9 million electric customers.
Our EDIIP will increase reliability performance through:
• Infrastructure upgrades: Portions of our high- and low-voltage
distribution network are aging. Our proactive investments
aim to replace or rebuild poles, wires and substations, with a
goal of improving 1,000 miles of our system each year.
• Tree trimming: Traditional tree trimming is still a highly effective way
to prevent and shorten power outages and improve system reliability. Our
plan includes a significant investment in forestry management — more
than $500 million over five years — that will keep distribution lines clear.
• Grid modernization: Smart meters, sensors and automation devices
work together to serve customers. These tools help us optimize
power delivery and solve problems often before customers notice.
Our plans also include increasing training for electric operations co-workers and
heightening cybersecurity to keep our electrical grid running safely.

Natural Gas Delivery Plan


We’re updating our natural gas delivery system to ensure safe, reliable, affordable and
clean energy. We also expect the role of natural gas to evolve as electrification expands,
providing exciting opportunities to support the planet. That’s why our 10-year, $11
billion Natural Gas Delivery Plan includes: 
• Investing to make our infrastructure and processes safer and
more reliable while reducing greenhouse gas emissions.
• Reducing our emissions through investing in new, more durable pipes
with improved leak protection compared to historical pipe materials.
• Exploring the use of emerging technologies to help
our customers and suppliers reduce their emissions.

Mission to Cut Methane


We’re creating a cleaner energy future for Michigan by reducing emissions of methane, a
greenhouse gas 25 times more potent than carbon dioxide. Over the past decade, we’ve Reducing methane by
reduced methane emissions from our natural gas distribution system by more than 15%
and plan to achieve net zero methane emissions by 10,000 metric tons by 2030, which 10,000 metric tons a year
equates to reducing 10,000 metric tons of methane. is like preserving more
We’re also pursuing new opportunities to use renewable natural gas by capturing than 300,000 acres of
methane emissions. Renewable natural gas is derived from sources of methane like
organic waste from farms, wastewater facilities and industrial sites. Methane, which forests.
would otherwise be emitted into the atmosphere, is captured and converted into
pipeline quality natural gas. Our investment in renewable natural gas offers Michigan’s
agricultural and transportation sectors an innovative way to reduce their greenhouse gas
emissions. Our Methane Reduction Plan further details our efforts
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  8

SOCIAL
Our success in achieving our ESG goals extends beyond our environmental
commitments. We also continuously work to maintain — and often improve
upon — our social goals through prioritizing our values, safety, and Diversity Equity
and Inclusion (DE&I) efforts. We’re also committed to care for our co-workers and
communities through just principles and giving.

Culture Values Drive All Our Actions


Our culture mindset guides the actions and behaviors of all co-workers, allowing
An intentional focus on our
everyone to work safely to serve our customers and our communities. Each value in the
culture mindset is critically important, and together they align with our strategy and
culture allows co-workers
drive our actions. to thrive and succeed in an
environment where their
The actions of our co-workers are what makes our company unique. An intentional focus
on our culture allows co-workers to thrive and succeed in an environment where their
voices are heard and their
voices are heard and their contributions matter. contributions matter.

Health and Safety


The health and safety of our co-workers is always a top priority. We’ve worked hard to
improve our safety culture and performance, which has resulted in a greater than 70%
decrease in safety incidents since 2008. We continue to stay focused on our goal of zero
high-risk incidents.
We’ve implemented a proactive, risk-based program in partnership with the Edison
Electric Institute (EEI) and other utilities. The Safety Classification and Learning Model
allows us to address safety precursors, such as “Safety Good Catches” or “Stop the Job”
and implement controls to prevent serious injuries or deaths.
We also continue to emphasize the safety of our communities and community members
as we look for opportunities to improve our infrastructure and educate our customers
and those who live and work near our facilities.

Our COVID-19 Response


In 2020, we added COVID-19 to our list of safety priorities. Since then, our company has
taken many steps to protect our co-workers and customers from the spread of COVID-19
and help those directly affected. In alignment with Centers for Disease Control
guidelines and the orders and rules from the state of Michigan, we changed customer
interactions to promote health and safety. We also equipped our frontline co-workers
with appropriate personal protective equipment and adjusted co-worker policies to
provide better support. In addition, we made emotional well-being a top priority.

Coworker Shares Story to Help Others


Caring for our co-workers is something that Despite needing a ventilator and blood
makes us stand out as a sustainable company. transfusion, Florka fully recovered. His story
When COVID-19 struck lineworker Eric touched others and served as a reminder to
Florka in April 2020, it started with symptoms follow safety guidelines.
that he thought were allergies and led to a As a company we responded seriously
44-day hospital stay. to COVID-19. Sick co-workers were allowed
He also lost 40 pounds during his six- unlimited time off to recover.
month battle against the deadly disease. Our essential workers stayed on the job and
Florka said it felt like “death was knocking at followed strict guidelines to keep themselves
his door.” and our customers safe.
Other co-workers demonstrated agility in a
quick transition to remote work.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  9

We also created a $12 million fund to help Michigan residents and small businesses
struggling to pay their energy bills due to COVID-19. The fund provided a lifeline to help
those in need. Consumers Energy has set a goal to help about 25,000 households and
1,000 small businesses with this new assistance. Our Emergency Response webpage offers
additional information.

Cybersecurity
We understand and acknowledge the risks posed by today’s cybersecurity threats. Our
Board of Directors (board) is responsible for overseeing our cybersecurity risks. These risks
are managed through a robust security program that includes people, processes, technology
and governance structures. Our board oversight includes regular program updates and
third-party audits. Two board members have extensive industry experience in cybersecurity.
Security is an integrated organization accountable for both cyber and physical security and
reports to a senior vice president.
Our processes include a review of all security-related projects prior to implementation. A
dedicated team monitors our environment and regularly shares threat information with
peers, state and federal partners. We also conduct regular drills, exercises, vulnerability
assessments and penetration tests to assess the security of our systems. Additional areas of
focus include risk management, data privacy and compliance.
We have a strong security culture through annual training, which includes courses on a
variety of security-related topics. We also conduct monthly phishing tests through our Don’t
Take the Bait program, which asks co-workers to report suspicious emails that demonstrate
common phishing tactics in real-world scenarios. When co-workers click on a test-phishing
email, they are provided with information on cybersecurity best practices. We monitor our
Don’t Take the Bait statistics every month and communicate this data with co-workers to
further emphasize their important role in cybersecurity.

Human Rights
We’re committed to help create a world where all people are respected and included, valued
for their unique qualities and abilities, treated fairly and afforded the opportunity to
advance. We protect the rights of women, minorities, LGBTQ+, veterans and all people. To
help accomplish this vision, all co-workers are expected to be strong ethical community
partners and form positive relationships wherever we do business. We will:
• Work to avoid causing or contributing to human rights violations.
• Mitigate and/or remediate adverse human rights impacts.
• Prohibit the use of child labor, forced labor, human
trafficking and modern slavery.
• Be transparent in our efforts, successes and challenges.

A Majestic Spin on and Green Energy


We’re harvesting Michigan’s winds to generate took customers on a virtual tour through
clean, renewable energy. construction.
In February, we added the Crescent Wind Together, our majestic, revolving towers
Farm in Hillsdale County to our wind park crank out enough wattage to power about
operations. We also own wind parks in Mason, 250,000 Michigan residents.
Tuscola and Gratiot counties. With each new wind park, we generate
Our Gratiot Farms Wind Project new jobs and churn out tax revenue for local
began operating in late 2020, and we governments and schools.

+ Watch Video
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  10

Our Human Rights Policy further details this commitment. It details our stance and
standards on diversity, equity and inclusion (DE&I), fair and equitable pay, our ethics
and compliance training, investigation of concerns, and employee responsibilities for
knowing, understanding and following all regulations, laws and policies that apply
to their jobs. It also explains employee requirements to report concerns or potential
misconduct. Our Code of Conduct, which applies to all co-workers, further emphasizes
our commitment.

Diversity, Equity & Inclusion


As a company, our commitment to DE&I is long-standing. Our first Employee Resource
Group (ERG), the Women’s Advisory Panel, was founded in the mid-1980s. Over the
years, we’ve expanded to seven flourishing groups:
• capABLE: Removes barriers, opening minds, creating pathways to
meaningful work for current and future co-workers of all abilities.
• GENERGY: Bridges the gap of learning, networking and
mentoring across the generations of our workforce.
• Minority Advisory Panel: Promotes a culture of diversity
and inclusion among all racial and ethnic minorities through
education, leadership, development and networking.
• Pride Alliance of Consumers Energy: Promotes an inclusive
environment that is safe, supportive and respectful for lesbian,
gay, bi-sexual and transgender persons and allies.
• Veteran’s Advisory Panel: Provides support to former
active military personnel and assists in recruiting and
retaining veterans through career development.
• Women’s Advisory Panel: Supports the retention,
development and success of women at our company.
• Women’s Engineering Network: Empowers women in Science,
Technology, Engineering and Math (STEM) fields
while building capabilities to support company objectives.
Three separate organizations recognized us in 2020 for our outstanding commitment
to creating a stronger, veteran-friendly employer environment, including through the
efforts of our Veterans Advisory Panel.
In 2020, we created Inclusion Champion roles in our union workforce. Inclusion
Champions are full-time team members, comprised of both union and exempt

Meeting the hunger and economic needs in “Our Town”


From restaurants to families in need — the “In the Martin Luther King Center, we have a
COVID-19 pandemic hit our neighbors hard. quote from Martin Luther King that says life’s
We joined Jackson-area partners in most urgent question is, ‘what are you doing
February 2021 to help fund the 10-week, Our for others?’ I think Consumers speaks to that,”
Town program. said center director Antonio Parker.
The program helped distribute 41,983 “They say, ‘we’re not going to wait, we are
healthy meals to local families. Local going to do for others.’”
restaurants prepared the meals, and much The program inspired a similar effort in
of the food was locally sourced to further Shiawassee County.
support the community. We were proud to meet the hunger and
Nearly $500,000 contributed by us and economic needs of our community and help
several community partners kept small inspire efforts across the state.
businesses open and restaurant workers
employed during some of the most difficult + Watch Video
weeks of the pandemic.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  11

co-workers, who actively contribute to our overarching DE&I goal of belonging


through leading grassroots communication efforts, sharing opportunities for
involvement, identifying and addressing gaps, problem solving and providing
continuous learning and development at a local level.
Although DE&I has been a key part of our culture for a long time, recent racial
discrimination and social injustice events across the nation have accelerated our
DE&I efforts. Our mission is to drive success in three key pillars that encompass the
entirety of our co-worker, customer, community and investor interactions.
• Our culture: We embed DE&I into our culture to focus on educating
our co-workers and leaders on DE&I and highlighting opportunities
in which they can contribute to create an inclusive environment.
• Our processes: We ensure that all our processes have a
DE&I focus. We believe that DE&I proficient people and
DE&I proficient processes yield better DE&I outcomes.
• Our talent: We work to build a diverse, equitable and inclusive
workforce through our strategies to attract and retain
diverse talent. This begins with a talent-sourcing strategy
that recruits in areas representative of all demographics and
allows us to build diverse, qualified candidate pools. Creating
a diverse and inclusive workforce expands beyond strategic
sourcing to the processes we use in our co-worker lifecycle
(e.g. hiring, promoting, developing, succession planning).
In 2021, we launched a from-the-top DE&I learning model for all our co-workers,
starting with company leaders. This includes unconscious bias training for all
leaders by 2021 and 100% of our workforce by 2022. By training everyone in core
DE&I concepts — such as the role that unconscious bias plays in our personal and
professional relationships and decision-making — we’re building a solid foundation
that makes DE&I an integral part of our work experience.
We’re inclusive in our hiring through diverse candidate pools and hiring committees
for every position posted. We engage in long- and short-term talent pipeline
development using the U.S. Chamber of Commerce Talent Pipeline ManagementTM
system. Accurately forecasting demand for critical positions enables formation of key
partnerships with K-12, post-secondary institutions and professional associations
to prepare a diverse, qualified workforce for immediate and future needs. We also
support and advocate for science, technology, engineering and math education in
Michigan to grow our workforce and raise awareness of career pathways in the energy
industry.
Our commitment to our DE&I strategy goes beyond the walls of our company. We’re
also looking outward to serve as a driving force for good in our service territory and
throughout Michigan. Our recent efforts include:
• Strengthening our relationships with veterans through donations,
including Tee It Up for Troops and Veterans in Energy.
• Donating to support social justice issues, fight racism and
create systemic change and opportunities in Michigan.
• Helping lead efforts to add gender identity and sexual orientation to the
list of protected classes under the state’s Elliott-Larsen Civil Rights Act.
• Supporting efforts to increase ethnic and racial diversity in
business ownership and entrepreneurship in West Michigan.
• Working with our suppliers to better gauge their stance
on DE&I and how it aligns with ours to ensure best
business practices throughout the supply chain.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  12

Additionally, we’re actively maturing our existing supplier diversity initiative to


create a sustainable, long-term initiative that includes an expanded diverse supplier
network, validating certification of diverse vendors and Enhanced Tier II reporting
for suppliers of our suppliers. Our supplier diversity investments help fuel our goal to
double spending with diverse suppliers by the end of 2023.
Our stand for DE&I will continue with our customers, co-workers, communities
and investors. Our comprehensive DE&I strategy allows us to focus on all aspects of
diversity and create a company that is inclusive of all ideas in the pursuit of the best
outcome.

Labor Rights
We also prioritize labor rights. CMS Energy and its subsidiaries comply with
all applicable U.S. federal, state and local laws and regulations concerning our
co-workers and labor issues in each of the states where we conduct business.
Standards, including those found in the International Labor Organization (ILO) 87
and 98, help inform our approach.
We acknowledge our employee’s rights to associate freely and bargain collectively.
Co-workers are expected to comply with federal and state laws and to our
company’s policies and collective bargaining agreement provisions, as applicable.
Our Labor Rights Policy is available on the CMS Energy webpage.
We conduct annual audits to ensure our policies and practices provide a workplace
free of harassment and discrimination. The process includes reviews of hiring,
terminations, promotion data, external outreach and vendor contracts. We also
conduct annual compensation reviews for pay equity through a third party.
Additionally, we expect that those we do business with comply with our labor right’s
expectations. We ask that third parties operate safely and in a manner that reflects
our values. For more information, see our Third-Party Code of Conduct.

Just Transition
Our proposed Clean Energy Plan is a sweeping change for our company. For most of
the last 135 years, we’ve functioned as a traditional utility, using baseload, coal-fired
power plants to generate and deliver electricity to customers.
Reinventing ourselves as a cleaner, leaner and more flexible energy company produces
significant benefits for customers, co-workers and the communities we serve. But
we also recognize our bold plans are accompanied by sacrifice and can create new
challenges.

Helping Monarch Butterflies Flourish


In 2020, we joined a national effort to support and right of ways. As one of Michigan’s
monarch butterflies. largest landowners, we can make a notable
The Candidate Conservation Agreement difference in species survival. That’s why we’ve
with Assurances (CCAA) is led by the U.S. dedicated more than 250,000 acres of land
Fish and Wildlife service and is an ongoing, toward the project.
voluntary conservation agreement to protect The agreement also simplifies our permit
and manage monarch butterflies. process because it assures agencies that
We survey our lands for butterflies and we are committed to protect and restore
milkweed — the only host plant of monarch monarch butterfly habitats on our lands.
caterpillars. This agreement helps us protect
monarchs by using best practices to manage + Read More Here
forestry and maintenance on our lands
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  13

We are committed to solve these issues as justly and equitably as possible as we


move away from using coal as a fuel source for electricity.
The plants we’ve recently retired or have proposed closing earlier have served our
company and customers faithfully for decades. As in the past, we plan to support
the co-workers and communities affected by early plant retirements by finding
new roles for those who want to stay.
Progress at the seven coal-fired units we retired in 2016 is proof we’re keeping
those promises. In all cases, we found new roles for co-workers who wanted to stay
with our company and helped local leaders pursue new economic possibilities — a
philosophy we plan to follow with proposed retirements at our Campbell complex
near Holland (2025) and Karn complex near Bay City (2023).

Environmental Justice
Environmental justice refers to protecting communities, especially the most
vulnerable, from harm caused by industrial practices, including when industries
move away from communities. Although we adhere to all regulatory requirements
involving our coal facilities, it’s inevitable that coal plants can have a negative
impact because of carbon emissions and coal ash ponds at the sites.
Our Clean Energy Plan and our previous coal plant retirements demonstrate our
commitment to protect communities from environmental injustices. When our
coal-fired plants closed in 2016, our efforts included restoring the areas around the
facilities. We also created new habitats for bees, butterflies and waterfowl.
In Muskegon, redevelopment of the former Cobb Plant is part of a broader vision
to restore habitat and revitalize the economy along Muskegon Lake. And the site
of the former Whiting Plant in Luna Pier has been prepared for redevelopment
and marketed for new uses.
While ending coal use is the centerpiece of our Clean Energy Plan, our plan also
calls for adding thousands of megawatts of wind and solar energy through 2040
when renewables would comprise more than 60% of electric capacity.
Reaching our goals requires building wind and solar generation facilities in
Michigan or buying electricity generated from projects developed by others.
In either case, we’re committed to operating as good corporate neighbors and
working with landowners and local communities to select the optimal locations,
communicate clearly about project plans and benefits and minimize impacts to
the environment.
To help deliver the benefits of solar energy more equitably, we’ve launched a new
“Sunrise” component of our Solar Gardens program, allowing community action

Picture Perfect
In May 2020, the Consumers Energy the Regional Resiliency Fund, administered
Foundation donated $1.8 million to by Venture North and supported by the
community organizations supporting Consumers Energy Foundation – that kept
small businesses across Michigan, focusing her going through the economic challenges
on helping female-and minority-owned created by COVID-19.
companies. “I was thrilled and humbled to receive the
Beth Price owns a photography business grant. It spoke to me in a dark, uncertain time
in her hometown of Traverse City. Preferably that what I do really matters,” Price said. “My
with freshwater as her theme, she often snaps community was telling me, ‘We believe in your
her shots while wearing a wetsuit, fins and a business and we believe in what you’re doing
swim mask in her beloved Lake Michigan. here in Northern Michigan. You’re part of us.’”
But it was the figurative shot in the arm she
received in spring 2020 – a local grant from + Learn More Here
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  14

agencies and nonprofit organizations to subscribe to solar gardens on behalf


of income-qualified customers. The program also provides credits on their
utility bills.
Once wind parks and solar projects begin operating, we maintain and operate
our facilities according to the highest safety and environmental standards and
continue to abide by local regulations.
We’re committed to doing what’s right to ensure positive working relationships
with the communities where our generating facilities are located.

Consumers Energy Foundation


Consumers Energy has given back to Michigan for nearly 135 years, and since
1990, we’ve helped local communities grow and thrive through the Consumers
Energy Foundation.
The foundation, our company and co-workers provide support for organizations
and efforts to help people, protect the planet and promote prosperity. In 2020, In 2020, the Consumers Energy
the foundation donated nearly $9.7 million to Michigan nonprofits.
Foundation, Consumers Energy
Since 2009, foundation giving has totaled more than $51 million and Consumers
Energy has donated an additional $81 million, for a combined amount of $132
and its co-workers and retirees
million given back to nonprofits and communities across the state. contributed more than $19 million
Foundation giving is separate from other company contributions and cannot be to Michigan nonprofits.
used to directly benefit the corporation. The foundation is funded by company
donations, not included in customer rates.
When COVID-19 arrived in Michigan, the foundation acted swiftly to support
communities. The foundation paused regular grantmaking and dedicated
unallocated funds to address the challenges facing Michigan’s residents and small
businesses. In 2020, more than $5.4 million of foundation funds were directed to
Michigan’s nonprofits to support COVID-19 relief.
More than $1.8 million went to support nonprofits providing food and basic needs,
including 1.5 million meals through food banks, school programs, quarantine
boxes for isolated and home-bound senior citizens and mobile food distribution.
The foundation also provided a lifeline to female and minority-owned businesses
through more than $2.4 million in donations, which were distributed to 29
organizations across Michigan.
Additional funds were provided to community foundations that offered emergency
relief and programs that served Michigan’s most vulnerable populations during
the pandemic.

Employee Giving
One of our greatest points of pride during our COVID-19 response was how our Hardship Relief
co-workers stepped up and used their own dollars to care for our neighbors across The CMS Energy Hardship Relief
the state. We created a special program that matched all employee donations that Fund provides short-term financial
were made to qualifying nonprofit organizations through July 31, 2020. assistance to co-workers who
experience hardships such as natural
Our foundation matched, dollar-for-dollar, approximately $260,000 donated by disasters, accidents and the death
261 co-workers, and contributed to 110 nonprofits across Michigan. of family member. Applicants can
receive up to $5,000 in hardship
Throughout the remainder of 2020, additional employee donations were matched funds to pay for expenses like
up to $1,000 through our existing matching gifts program, which contributed housing assistance, transportation
and medical care. The fund is
nearly $100,000 additional dollars to nonprofits.
supported through CMS Energy and
coworker contributions and further
demonstrates our culture of caring.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  15

Governance
CMS Energy and Consumers Energy have multiple levels of sustainability oversight
integrated into daily operations. We use several governance and risk-management
tools when addressing ESG and sustainability matters. These include oversight by
the board, an enterprise risk management (ERM) program and robust strategic and
business planning processes.

Board Oversight
Our board is comprised of directors with experience and knowledge of ESG
and sustainability issues and has the highest level of oversight over our ESG and
sustainability practices. Review of these practices occurs at the board level by the:
• Audit Committee
• Governance, Sustainability and Public Responsibility
Committee (Governance Committee)
• Compensation and Human Resources
Committee (Compensation Committee)
The Audit Committee oversees our ERM framework, which includes strategic and
operational risks, as well as the processes, guidelines and policies for identifying,
assessing, monitoring and mitigating such risks.
The Governance Committee is responsible for reviewing and evaluating the
composition of the board, recommending board nominees, broadly overseeing the
corporate governance and advising and assisting the board on public responsibility
and sustainability matters.
Acknowledging the growing importance of sustainability and climate-related
matters, the board in 2018, formally tasked the Governance Committee with
oversight of sustainability practices by adding this responsibility to its charter.
The Compensation Committee is responsible for our executive compensation
structure, benefit and compensation plans and critical human resource programs.
The committee charters and other governance documents, including our Corporate
Governance Principles, can be found at CMSEnergy.com.
Our Environment & Sustainability Council (E&SC), comprised of senior leadership,
also guides our environmental compliance and sustainability programs and
governs decisions that support our commitment to the planet. This includes short-
and long-term strategic decisions pertaining to environmental issues including
climate and ESG disclosure reporting.

Teams Stay Green During COVID-19


Our Green Teams make a positive Our Green Teams also hosted a company-
environmental impact across the state. These wide virtual conference to inspire others to go
teams get their hands dirty near their office green. Attendees learned about our pollinator
locations and hometowns. habitats and efforts to stop the spread of
COVID-19 guidelines halted most invasive species and received some how-to on
volunteering for 2020, but our teams stayed backyard beekeeping.
active with at-home challenges, including The event also included virtual chats
family-friendly activities like making with company executives, including Garrick
birdhouses, holiday cards and Halloween Rochow, our president and CEO.
costumes. In the past, Green Teams have In the spring of 2021, our teams reunited to
also planted community gardens and built clean and spruce our communities and make
greenhouses from recycled plastic. the world a greener place.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  16

Enterprise Risk Management


In addition to a robust oversight structure, we maintain an ERM program
to ensure risks that may significantly impact the business are known and
understood and to inform risk-mitigation strategies. The scope, roles and
responsibilities related to the ERM program are included in our corporate risk
policy, which is approved by the board’s Audit Committee. The ERM program
covers risks for CMS Energy and its subsidiaries across many areas: strategic,
operational, regulatory, environmental, financial, information technology and
cybersecurity.
One area addressed through our risk program is the physical impacts of climate
change. As Michigan’s most far-reaching energy provider, Consumers Energy is
Taking on Trash
especially focused on climate-change resiliency and has a cross-functional team
to discuss these potential impacts on our assets and how to address those issues We’re working hard to reduce the
amount of waste we send to landfills.
in a cost-effective manner.
Since 2017, we’ve achieved a 54%
Internal and external data sources are leveraged as input into our long-term drop by:
strategic planning. The information is used to assess our strategic choices and
• Installing recycling and composting
underlying assumptions. collection centers throughout the
company.
The data is analyzed and synthesized into an update on trends and new
opportunities that are critical to our current and future business. The data • Recycling utility poles and rubber
influences multiple areas of our strategy including distributed energy resources, protective equipment used by
wholesale markets, customer energy usage trends and climate policy. lineworkers.

• Conserving and recycling soil and


Stakeholder Engagement construction materials on projects
that require clearing and digging.
We spend significant time and effort listening to our customers, the public and
• Engaging co-workers to work in our
key stakeholders during our long-term planning processes. Our integrated
Green Teams, which are employee
resource plans and environmental and sustainability strategies consider people, groups devoted to caring for the
the planet and prosperity. environment at and near their work
locations.
In 2017 and 2018, for example, we engaged a variety of stakeholders in developing
our Clean Energy Breakthrough Goals and our Integrated Resource Plan • Fighting phragmites, an invasive
(IRP) filing. We continued and expanded on these efforts in 2020 during the species that threatens the health of
development of our 2021 IRP, which refreshes the current Clean Energy Plan. Michigan’s coastal wetlands. We’re
using innovative land-management
With the safety of our customers and co-workers uppermost in our mind during tactics to keep the tall, harmful
the COVID-19 pandemic, we hosted four virtual outreach events that were plant out of landfills once it’s safely
removed.
free and open to the public. Each virtual event contained information on a key
element of our Clean Energy Plan and allowed participants to ask questions and + Learn More Here
receive responses from the company’s subject matter experts.
We also developed a comment box on our website so customers could comment
on our current plan and provide feedback toward the development of the 2021
IRP. Additionally, we hosted three technical workshops for key stakeholder
groups during the IRP planning process to collect feedback and receive
suggestions about our goals and objectives.
Our ongoing outreach program maintains communication with our
shareholders. We value these discussions, and the board considers feedback when
evaluating corporate governance issues. Management regularly participates in
shareholder and industry conferences to discuss performance and ESG topics.
Shareholders, co-workers and third parties may contact the board with any
inquiry or issue using the methods described on our website. The board will
respond as appropriate.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  17

Political Activity
We understand that policymakers’ decisions directly impact our business. That’s
why our goal is to interact regularly with federal, state and local government officials,
policymakers and stakeholder groups in a constructive and transparent manner.
We focus political activity on critical company and energy industry issues including:
• Meeting Michigan’s energy needs.
• Helping the state’s communities thrive.
• Providing safe, reliable, affordable and
increasingly clean energy-related services.

Corporate Political Contributions


Federal and state campaign finance laws prohibit us from making direct
contributions to candidates and national and state political parties for general
campaign purposes. We do contribute to grassroots activities, issue advocacy, voter
registration, state and local ballot question committees and other activities consistent
with federal and state law.
All corporate political contributions come from our company’s general funds and are
not reflected in customer rates. We also strive to ensure our positions and goals are
consistent with the organizations receiving contributions. If conflicts exist, we base
our involvement and support on areas of mutual agreement and offer opportunities to
voice our opinions and hear and understand other perspectives.
Our board oversees our political engagement policies, programs and practices.
Governmental Affairs initiates a contribution recommendation, which is then
reviewed by the legal department before being sent for review and approval by the
general counsel, the senior vice president of governmental, regulatory and public
affairs and the vice president and corporate secretary.
The board’s Governance, Sustainability and Public Responsibility Committee
helps advise the board about our political engagement. As recommended by the
Governance, Sustainability and Public Responsibility Committee:
• Any contribution $2,500 or less requires no further approval.
• Contributions of $2,500 to $10,000 require
our president and CEO’s approval.
• Contribution requests more than $10,000 require approval
from our president and CEO and the board.

Consumers Energy, Michigan Attorney General


launch Winter Bill Assistance Campaign
In March 2021, we launched a public “Consumers Energy is working right now
campaign alongside Michigan Attorney to help many Michiganders who could use
General Dana Nessel to ensure Michigan support due to the twin challenges of the
residents take advantage of tens of millions in pandemic and the cold snap,” said Lauren
federal, state and local dollars that will help Youngdahl Snyder, Consumers Energy’s vice
households and small businesses pay winter president of customer experience. “The new
heating bills. federal stimulus and other sources are making
Nessel and Consumers Energy teamed tens of millions of dollars available to help
up after two weeks of especially cold with energy bills.”
temperatures in February caused furnaces to
run more than usual. + Read More Here
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  18

All political expenditures for the prior year are reported to the board on an annual
basis, as are proposed contributions for the present year. Additional ad hoc requests
follow the same procedures.
Starting in 2021, CMS Energy began enhanced disclosure of political contributions.
This includes posting additional content on the CMS Energy website, including:
• Expenditures made to influence the outcome of ballot initiatives.
• Direct corporate contributions to an entity organized
under Section 527 of the Internal Revenue Code
when annual contributions exceed $25,000.
• Direct corporate contributions to an entity organized
under Section 501(c)(4) of the Internal Revenue Code
when annual contributions exceed $25,000.
• Non-deductible portion of trade association and other organization
dues when annual mandatory membership dues exceed $25,000.

Lobbying and Trade Associations


Committed to a
CMS Energy belongs to industry, trade and business associations representing the Cleaner Future
energy and utility industry and the business community. We make reasonable efforts
Lindsey Johnson is helping minimize
to track and report payments to trade associations, chambers of commerce and our environmental footprint as we
other tax-exempt organizations that may be used for political purposes that would modernize Michigan’s natural gas
not be deductible as defined under Section 162(e)(1) of the Internal Revenue Code. system.
We disclose payments when they exceed $25,000 and when trade associations use a Replacing hundreds of miles of
major transmission pipelines is part
portion of those payments for federal lobbying activities.
of our strategy to make Michigan’s
As required by federal law, we disclose funds supporting federal lobbying activities of natural gas system even more safe,
reliable, affordable and clean.
national trade associations on our quarterly lobbying filing with the U.S. Congress.
Johnson, an environmental
engineer, ensures we meet —
and exceed — environmental
Political Action Committee responsibilities on the massive
pipeline construction projects to
We maintain a separate fund and corporate political action committee (PAC), which safeguard natural resources and
is registered with the Federal Election Commission. We also maintain a state PAC wildlife and enhance local habitat.
registered in Michigan. From securing permits to planting
pollinators and rescuing amphibians,
Our PAC, Employees for Better Government (“EBG”), is nonprofit, nonpartisan and Johnson is on the frontlines of our
governed by an employee-run steering committee independent of our officers and fight to protect the planet.
board. Participation is voluntary and gives co-workers a voice in the political process. Her passion comes from one place:
Her sons, Parker, 6, and Carson, 2.
Elected members of EBG’s Steering Committee review contribution requests and “That’s the whole reason I do it,”
allocate qualified employee contributions to political and campaign committees and said Johnson, who has worked 15
to specific candidate campaigns. Criteria may include: years at Consumers Energy. “We want
to improve the environment, protect
• Representation of a state or district where the company the land we live and work and play on,
has a facility or large concentration of co-workers. for our kids and grandkids. I hope I’m
making an impression on them that
• Voting record or announced positions on will last a lifetime.”
issues important to the company. + Read More Here
• Demonstrated leadership on key committees
of importance to our business.
• Current leadership or potential for legislative leadership.
All political contributions accepted or made by our federal or state PACs are reported,
consistent with applicable requirements, to the federal or state election commission.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  19

Standards for Co-workers


We’re committed to help communities succeed — not just in energy, but also personal
and corporate commitments. Each day, co-workers offer their time, talents and dollars to
support the places where they live and work.
We’re proud of our co-workers’ efforts to help make the Michigan communities we serve
great places to live, work and play. We encourage our co-workers to participate in a wide
range of civic activities, including the political process. Co-workers must comply with
all applicable legal, ethical and company requirements, including those set forth in the
Honest Leadership and Open Government Act (HLOGA) of 2007. Generally, co-workers
are prohibited from engaging during normal business hours and using company resources.
Co-workers may campaign for public office or support others seeking office on non-work Planet Awards Support
time and may secure reasonable time off to do so. The following conditions apply: Michigan projects
• Co-workers must obtain written approval from their supervisor The Consumers Energy Foundation
before seeking election or appointment to a public office. celebrated Earth Month 2021 by providing
$500,000 in Planet Award grants to four
• If elected or appointed, co-workers must seek approval from their projects that will help protect and restore
supervisor for reasonable time off without pay to fulfill those duties. Michigan’s land, water and air.

• To avoid conflicts of interest, co-workers who are elected or Gaylord: Huron Pines Resource
appointed to public office must excuse themselves from actions Conservation & Development Council
($200,000)
or decisions on issues that could impact the company.
The Protect Wild Places project will
restore 5,000 acres of habitats and
Other Resources recreational lands as well as 150 miles
of waterways and Great Lakes shoreline
We provide extensive public reporting in disclosures about ESG and sustainability, across 17 counties. The work will be done
including our environmental stewardship and long-term strategy. We address these through online and in-person events and
conservation efforts in partnership with
matters in Securities and Exchange Commission, Environmental Protection Agency
community leaders, schools, organizations
and other regulatory agency filings, and by voluntary reporting efforts such as our and residents.
CDP Climate Report, CDP Water Report and Annual Waste Report. CMS Energy also
Mancelona: Au Sable Institute ($125,000)
published a Climate Assessment Report in November 2018, which will be updated by 2022.
The Good Things Grow Here project will
engage local schools and mobilize 3,600
K-12 students to complete 30 habitat
restoration projects in Northern Michigan
by 2024. Each restoration project will
install 1,000 native plants, for a total of
30,000 native plants installed over the
Recent Recognition for Our next three years in Northern Michigan.

Commitment to ESG and Sustainability Kalamazoo: Southwest Michigan


Land Conservancy ($100,000)

The project will restore rich habitat on


• 2021 ENERGY STAR® Partner of the Year
the 140-acre Armintrout-Milbocker
• Forbes® Magazine award for America’s Best Large Employer in 2021 Nature Preserve through invasive species
management, creation of a holistic
• Forbes® Magazine America’s Best Employers for Women in 2020 and management plan, and community
2021 and #1 utility company in Michigan for diversity in 2020 and 2021 access. The project will also lower pollution
levels and increase filtration of waters
• BEST Winner: Association for Talent Development in 2020 and 2021 flowing into the Kalamazoo River.

• Newsweek America’s Most Responsible Companies Award for 2021 Bay City: Bay Area Community
Foundation ($75,000)
• Ranked Top Quartile by EEI Utility Standards and Safety Performance
Funding will support the Lake Huron
• Top 50 global ranking in Military Times Best for Vets: Employers for 2020 Forever Initiative’s nature-based solutions
and projects, community assessments,
• Certified Gold-Level Veteran Friendly Employer by the and training programs to advance
Michigan Veterans Affairs Agency (MVAA) water quality protection and healthy,
sustainable communities on Lake Huron.
• Named one of Barron’s 100 Most Sustainable Companies in 2020
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  20

SECTION 2

By the Numbers
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  21

Parent Company: CMS Energy Corporation Regulatory Environment: Regulated


Operating Company(s): Consumers Energy Company Report Date: October 1, 2021
Business Type(s): Vertically Integrated CMS Energy Website: CMSEnergy.com
State(s) of Operation: Michigan Consumers Energy Website: ConsumersEnergy.com
State(s) with RPS Programs: Michigan

The following quantitative information is Consumers Energy data only.

TREND KEY: n Not Rated n No Change n Better n Worse

Baseline
CONSUMERS ENERGY PORTFOLIO 2005 2018 2019 2020
TREND

Owned Nameplate Generation Capacity at end of year (MW)


Coal 3,015 2,043 2,043 2,043 n
Natural Gas 1,285 2,487 2,318 2,318 n
Nuclear 812 N/A N/A N/A n
Petroleum 738 720 701 701 n
Ludington Pumped Storage Plant1 1,009 1,125 1,154 1,154 n
Total Renewable Energy Resources 132 392 468 618 n
Biomass/Biogas N/A N/A N/A N/A n
Geothermal N/A N/A N/A N/A n
Hydroelectric 132 132 132 132 n
Solar N/A 4 4 4 n
Wind N/A 256 332 482 n
Other N/A 1 1 1 n

Owned Net Generation for the data year (MWh)


Coal 19,711,000 9,804,000 9,776,000 7,960,000 n
Natural Gas 356,000 5,272,000 6,289,000 5,883,000 n
Nuclear 6,636,000 N/A N/A N/A n
Petroleum 225,000 5,000 5,000 6,000 n
Ludington Pumped Storage Plant1,2 -516,000 -325,000 -308,000 -371,000 n
Total Renewable Energy Resources 387,000 1,187,000 1,258,000 1,505,000 n
Biomass/Biogas N/A N/A N/A N/A n
Geothermal N/A N/A N/A N/A n
Hydroelectric 387,000 445,000 512,000 482,000 n
Solar N/A 6,000 5,000 6,000 n
Wind N/A 736,000 741,000 1,017,000 n
Other N/A N/A N/A N/A n
Total Owned Net Generation (MWh) 26,799,000 15,943,000 17,020,000 14,983,000 n

Purchased Net Generation for the data year (MWh)


Coal 482,000 511,000 462,000 513,000 n
Natural Gas 7,061,000 6,712,000 6,812,000 7,346,000 n
Nuclear N/A 6,749,000 6,946,000 6,898,000 n
Petroleum N/A N/A N/A N/A n
Total Renewable Energy Resources 1,236,000 2,379,000 2,387,000 2,225,000 n
Biomass/Biogas 1,200,000 1,237,000 1,164,000 994,000 n
Geothermal N/A N/A N/A N/A n
Hydroelectric 34,000 79,000 60,000 63,000 n
Solar N/A 6,700 7,400 8,000 n
Wind 2,600 1,006,000 1,156,000 1,160,000 n
Other 1,991,000 4,953,000 2,059,000 2,655,000 n
Total Purchased Net Generation (MWh) 10,770,000 21,304,000 18,666,000 19,637,000 n

Investing in the Future:


Capital Expenditures, Energy Efficiency (EE), and Smart Meters
Total Annual Capital Expenditures (nominal dollars) $593,000,000 $1,975,000,000 $2,298,000,000 $2,339,600,000 n
Incremental Annual Electricity Savings from EE Measures (MWh) N/A 586,784 566,183 642,124 n
Incremental Annual Investment in Electric EE Programs (nominal dollars) N/A $117,800,000 $115,987,120 $139,635,527 n
Percent of Total Electric Customers with Smart Meters (at end of year) N/A 99% 99% 99% n

Retail Electric Customer Count


Commercial 214,025 219,869 221,892 221,570 n
Industrial 8,595 1,312 1,329 1,348 n
Residential 1,565,601 1,603,125 1,611,320 1,630,424 n

1. Our Pumped Storage Plant was originally included within the Hydroelectric category; however, it has been itemized separately.
2. T his figure represents Consumers’ share of net pumped-storage generation. The pumped-storage facility consumes electricity to pump water during off-peak hours for storage to generate electricity later during peak-demand hours.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  22

TREND KEY: n Not Rated n No Change n Better n Worse

Baseline
CONSUMERS ENERGY EMISSIONS 2005 2018 2019 2020
TREND

GHG Emissions: Carbon Dioxide (CO2) and Carbon Dioxide Equivalent (CO2e)1

Owned Generation

Carbon Dioxide (CO2)


Total Owned Generation CO2 Emissions (Metric Tons (MT)) 20,219,000 12,682,000 12,604,000 10,888,000 n
Total Owned Generation CO2 Emissions Intensity (MT/Net MWh) 0.754 0.795 0.741 0.727 n
Carbon Dioxide Equivalent (CO2e)
Total Owned Generation CO2e Emissions (MT) N/A 12,743,000 12,659,000 10,934,000 n
Total Owned Generation CO2e Emissions Intensity (MT/Net MWh) N/A 0.799 0.744 0.730 n
Biogenic Carbon Dioxide (CO2) 0 0 0 0 n

Purchased Power

Carbon Dioxide (CO2)


Total Purchased Generation CO2 Emissions (MT) 4,999,000 6,373,000 5,121,000 5,221,000 n
Total Purchased Generation CO2 Emissions Intensity (MT/Net MWh) 0.464 0.299 0.274 0.266 n
Carbon Dioxide Equivalent (CO2e)
Total Purchased Generation CO2e Emissions (MT) N/A 6,419,000 5,150,000 5,257,000 n
Total Purchased Generation CO2e Emissions Intensity (MT/Net MWh) N/A 0.301 0.276 0.268 n
Biogenic Carbon Dioxide (CO2) (MT) N/A N/A N/A 745,000 n

Owned Generation + Purchased Power

Carbon Dioxide (CO2)


Total Owned + Purchased Generation CO2 Emissions (MT) 25,218,000 19,055,000 17,725,000 16,109,000 n
Total Owned + Purchased Generation CO2 Emissions Intensity (MT/Net MWh) 0.671 0.512 0.497 0.465 n
Total Owned + Purchased Generation CO2 Emissions Intensity (lbs/Net MWh) 1,480 1,128 1,095 1,026 n
Carbon Dioxide Equivalent (CO2e)
Total Owned + Purchased Generation CO2e Emissions (MT) N/A 19,162,000 17,809,000 16,191,000 n
Total Owned + Purchased Generation CO2e Emissions Intensity (MT/Net MWh) N/A 0.514 0.499 0.468 n
Total Owned + Purchased Generation CO2e Emissions Intensity (lbs/Net MWh) N/A 1,134 1,100 1,031 n

Non-Generation CO2e Emissions

Fugitive CO2e emissions of sulfur hexafluoride (MT) N/A 2,100 2,533 819 n
Fugitive CO2e emissions from natural gas distribution (MT) See Natural Gas Business Sustainability Metrics

Electric & Gas Scope 1, 2 and 3 Greenhouse Gas Emissions


Carbon Dioxide Equivalent (CO2e)
Scope 1 CO2e emissions (MT) N/A 13,165,000 13,509,000 11,387,000 n
Scope 2 CO2e market-based emissions (MT)2 N/A 424,000 279,500 291,600
n
Scope 3 CO2e emissions (MT) 3 N/A 22,780,000 20,574,000 18,675,000 n

Nitrogen Oxide (NOx), Sulfur Dioxide (SO2), Mercury (Hg)


Generation basis for calculation: Electric Generation

Nitrogen Oxide (NOx)

Total NOx Emissions (MT) 28,400 3,900 4,100 3,395 n


Total NOx Emissions Intensity (MT/Net MWh) 1.06E-03 2.44E-04 2.41E-04 2.27E-04 n

Sulfur Dioxide (SO2)

Total SO2 Emissions (MT) 83,600 5,200 5,700 4,149 n


Total SO2 Emissions Intensity (MT/Net MWh) 3.12E-03 3.29E-04 3.35E-04 2.77E-04 n

Mercury (Hg)

Total Hg Emissions (kg) N/A 26 33 31 n


Total Hg Emissions Intensity (kg/Net MWh) N/A 1.64E-06 1.94E-06 2.07E-06 n

1. Data reported based on equity-ownership.


2. The Scope 2 emissions were calculated based on the market-based emissions methodology.
3. C onsumers Energy reports known emissions associated with four Scope 3 categories, including emissions associated with purchased power (i.e., fuel-and-energy related activities not included in scope 1 or 2),
combustion of natural gas sold (i.e., use of sold products), business travel and employee commuting. Emissions data reported for CMS Enterprises’ is excluded with the exception of business travel.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  23

TREND KEY: n Not Rated n No Change n Better n Worse

Baseline
CONSUMERS ENERGY RESOURCES 2005 2018 2019 2020
TREND

Human Resources
Total Number of Employees 8,114 8,121 8,253 8,193 n
Total Number on Board of Directors/Trustees 12 10 12 11 n
Total Women on Board of Directors/Trustees 1 4 5 4 n
Total Minorities on Board of Directors/Trustees 1 2 3 3 n
Total Female Employees N/A 2,304 2,342 2,275 n
Percent Female Employees N/A 28% 28% 28% n
Total Minority Employees N/A 1,162 1,180 1,166 n
Percent Minority N/A 14% 14% 14% n
Total Veteran Employees N/A 699 825 860 n
Percent Veteran Employees N/A 9% 10% 11% n
Total Individuals with Disabilities N/A 372 397 394 n
Percent Individuals with Disabilities N/A 5% 5% 5% n
Total Females in Senior Leadership N/A 8 9 9 n
Percent Females in Senior Leadership N/A 30% 32% 32% n
Total Minorities in Senior Leadership N/A 7 6 7 n
Percent Minorities in Senior Leadership N/A 26% 21% 25% n
Total Females in Management N/A 125 132 151 n
Percent Females in Management N/A 30% 31% 33% n
Total Minorities in Management N/A 51 53 59 n
Percent Minorities in Management N/A 12% 12% 13% n

Employee Safety Metrics


Recordable Incident Rate N/A 7.01 1.21 1.23 n
Lost-time Case Rate N/A 2.00 0.34 0.50 n
Days Away, Restricted, and Transfer (DART) Rate N/A 3.22 0.75 0.84 n
Work-related Fatalities N/A 1.00 1.00 0.00 n

Fresh Water Resources


Water Withdrawals - Consumptive (Billions of Liters/Net MWh) N/A 3.19E-07 3.74E-07 3.36E-07 n
Water Withdrawals - Non-Consumptive (Billions of Liters/Net MWh) N/A 7.74E-05 6.88E-05 8.22E-05 n

Waste Products
Amount of Hazardous Waste Manifested for Disposal (tons) N/A 23.9 23.7 25.07 n
Percent of Coal Combustion Products Beneficially Used N/A 13% 15% 8% n

Additional Metrics (Optional)


Lead (lbs) N/A 49 47 32 n
Total Non-Methane Organic Compounds (short tons) 330 204 200 172 n
Utility Specific Residual Mix Emissions Rate (CO2 lbs/MWh) N/A N/A 1098 1052 n
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  24

Parent Company: CMS Energy Corporation Regulatory Environment: Unregulated


Operating Company: CMS Enterprises Report Date: October 1, 2021
Business Type: Vertically Integrated CMS Energy Website: CMSEnergy.com
States of Operation: Ohio, Michigan, North Carolina, CMS Enterprises Website: CMSenterprises.com
Texas, Wisconsin

The following quantitative information is CMS Enterprises data only.

TREND KEY: n Not Rated n No Change n Better n Worse

Baseline
CMS ENTERPRISES ENERGY PORTFOLIO 2005 2018 2019 2020
TREND

Owned Nameplate Generation Capacity at end of year (MW)


Coal N/A 35 35 35
n
Natural Gas N/A 1,008 995 1018 n
Nuclear N/A 0 0 0
n
Petroleum N/A 0 0 0
n
Total Renewable Energy Resources N/A 195 196 464 n

Biomass/Biogas N/A 64 64 64
n

Geothermal N/A 0 0 0
n

Hydroelectric N/A 0 0 0
n

Solar N/A 27 27 27
n

Wind N/A 105 105 373
n
Other N/A 0 0 0
n

Owned Net Generation for the data year (MWh)


Coal N/A 253,000 226,000 255,000 n
Natural Gas N/A 4,985,000 5,555,000 5,216,000 n
Nuclear N/A 0 0 0
n
Petroleum N/A 0 0 0
n
Total Renewable Energy Resources N/A 385,000 644,000 780,000 n
Biomass/Biogas N/A 277,000 292,000 193,000 n

Geothermal N/A 0 0 0
n

Hydroelectric N/A 0 0 0
n
Solar N/A 14,000 37,000 47,000 n
Wind N/A 94,000 314,000 540,000 n
Other N/A 0 0 0
n

Purchased Net Generation for the data year (MWh)


Coal N/A 0 0 0
n
Natural Gas N/A 0 0 0
n
Nuclear N/A 0 0 0
n
Petroleum N/A 0 0 0
n
Total Renewable Energy Resources N/A 300,000 300,000 300,000 n

Biomass/Biogas N/A 0 0 0
n

Geothermal N/A 0 0 0
n

Hydroelectric N/A 0 0 0
n

Solar N/A 0 0 0
n

Wind N/A 300,000 300,000 300,000
n
Other N/A 0 0 0
n

Investing in the Future:


Capital Expenditures, Energy Efficiency (EE), and Smart Meters
Total Annual Capital Expenditures (nominal dollars) N/A N/A N/A N/A n
Incremental Annual Electricity Savings from EE Measures (MWh) N/A N/A N/A N/A n
Incremental Annual Investment in Electric EE Programs (nominal dollars) N/A N/A N/A N/A n
Percent of Total Electric Customers with Smart Meters (at end of year) N/A N/A N/A N/A n

Retail Electric Customer Count (at end of year)


Commercial N/A N/A N/A N/A n
Industrial N/A N/A N/A N/A n
Residential N/A N/A N/A N/A n
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  25

TREND KEY: n Not Rated n No Change n Better n Worse

Baseline
CMS ENTERPRISES EMISSIONS 2005 2018 2019 2020
TREND

GHG Emissions: Carbon Dioxide (CO2) and Carbon Dioxide Equivalent (CO2e)1

Owned Generation

Carbon Dioxide (CO2)


Total Owned Generation CO2 Emissions (MT) N/A 3,816,135 3,817,939 3,427,886 n
Total Owned Generation CO2 Emissions Intensity (MT/Net MWh) N/A 0.679 0.594 0.548 n
Biogenic CO2 (MT) N/A 552,537 580,732 382,744 n
Carbon Dioxide Equivalent (CO2e)
Total Owned Generation CO2e Emissions (MT) N/A 3,815,973 3,851,101 3,437,818 n
Total Owned Generation CO2e Emissions Intensity (MT/Net MWh) N/A 0.679 0.599 0.550 n
Biogenic CO2e N/A 560,091 588,638 387,870 n

Purchased Power

Carbon Dioxide (CO2)


Total Purchased Generation CO2 Emissions (MT) N/A 0 0 0 n
Total Purchased Generation CO2 Emissions Intensity (MT/Net MWh) N/A N/A N/A N/A n
Carbon Dioxide Equivalent (CO2e)
Total Purchased Generation CO2e Emissions (MT) N/A 0 0 0 n
Total Purchased Generation CO2e Emissions Intensity (MT/Net MWh) N/A N/A N/A N/A n

Owned Generation + Purchased Power

Carbon Dioxide (CO2)


Total Owned + Purchased Generation CO2 Emissions (MT) N/A 3,816,135 3,817,939 3,427,886 n
Total Owned + Purchased Generation CO2 Emissions Intensity (MT/Net MWh) N/A 0.698 0.606 0.523 n
Biogenic CO2 (mt) N/A 552,537 580,732 382,744 n
Carbon Dioxide Equivalent (CO2e)
Total Owned + Purchased Generation CO2e Emissions (MT) N/A 3,824,412 3,844,791 3,437,818 n
Total Owned + Purchased Generation CO2e Emissions Intensity (MT/Net MWh) N/A 0.699 0.610 0.525 n
Biogenic CO2e N/A 560,091 588,638 387,870 n

Non-Generation CO2e Emissions

Fugitive CO2e emissions of sulfur hexafluoride (MT) N/A N/A N/A N/A n
Fugitive CO2e emissions from natural gas distribution (MT) N/A N/A N/A N/A n

Electric & Gas Scope 1, 2 and 3 Greenhouse Gas Emissions


Carbon Dioxide Equivalent (CO2e)
Scope 1 CO2e emissions (MT)2 N/A 3,825,389 3,845,830 3,447,385 n
Scope 2 CO2e emissions (MT) 3 N/A 1,834 1,291 2,239
n
Scope 3 CO2e emissions (MT) 4 N/A N/A N/A 1,200 n

Nitrogen Oxide (NOx), Sulfur Dioxide (SO2), Mercury (Hg)

Nitrogen Oxide (NOx)

Total NOx Emissions (MT) N/A 1,355 1,464 1,432 n


Total NOx Emissions Intensity (MT/Net MWh) N/A 2.41E-04 2.28E-04 2.19E-04 n

Sulfur Dioxide (SO2)

Total SO2 Emissions (MT) N/A 867 862 823 n


Total SO2 Emissions Intensity (MT/Net MWh) N/A 1.54E-04 1.34E-04 1.26E-04 n

Mercury (Hg)

Total Hg Emissions (kg) N/A 3.7 4.5 3.6 n


Total Hg Emissions Intensity (kg/Net MWh) N/A 6.52E-07 7.02E-07 5.56E-07 n

1. Data reported based on equity-owner.


2. Biogenic Emissions are not included in Scope 1.
3. The Scope 2 emissions were calculated based on the market-based emissions methodology.
4. CMS Enterprises reports known emissions associated with one Scope 3 category, waste generated in operations. Emissions data for business travel is included with Consumers Energy data.
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  26

TREND KEY: n Not Rated n No Change n Better n Worse

Baseline
CMS ENTERPRISES RESOURCES 2005 2018 2019 2020
TREND

Human Resources
Total Number of Employees N/A 178 181 186 n
Total Female Employees N/A 26 23 22 n
Percent Female Employees N/A 15% 13% 12% n
Total Minority Employees N/A 13 16 18 n
Percent Minority N/A 7% 9% 10% n
Total Veteran Employees N/A 12 14 18 n
Percent Veteran Employees N/A 7% 8% 10% n
Total Individuals with Disabilities N/A 3 2 2 n
Percent Individuals with Disabilities N/A 2% 1% 1% n
Total Females in Management N/A 1 1 1 n
Percent Females in Management N/A 5% 4% 5% n
Total Minorities in Management N/A 2 3 3 n
Percent Minorities in Management N/A 10% 13% 14% n

Employee Safety Metrics


Recordable Incident Rate 7.01 1.21 1.23 1.22 n
Lost-time Case Rate 2.00 0.34 0.50 0.53 n
Days Away, Restricted, and Transfer (DART) Rate 3.22 0.75 0.84 0.89 n

Work-related Fatalities 1 1 0 0
n

Fresh Water Resources


Water Withdrawals - Consumptive (Billions of Liters/Net MWh) N/A 3.33E-07 3.67E-07 3.23E-07 n
Water Withdrawals - Non-Consumptive (Billions of Liters/Net MWh) N/A 4.35E-07 4.56E-07 4.09E-07 n

Waste Products
Amount of Hazardous Waste Manifested for Disposal (tons) N/A 0 0 0 n
Percent of Coal Combustion Products Beneficially Used N/A 0% 0% 0% n
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  27

Natural Gas Business Parent Company: CMS Energy


Operating Company(s): Consumers Energy Company
Sustainability Metrics Business Type(s): Vertically Integrated
State(s) of Operation: Michigan
Regulatory Environment: Regulated
Report Date: October 1, 2021

TREND KEY: n Not Rated n No Change n Better n Worse

CONSUMERS ENERGY NATURAL GAS DISTRIBUTION 2019 2020 TREND

Methane Emissions And Mitigation From Distribution Mains

Number of Gas Distribution Customers 1,782,031 1,797,391 n


Distribution Mains in Service
Plastic (miles) 14,734 14,912 n
Cathodically Protected Steel - Bare & Coated (miles) 12,387 12,324 n
Unprotected Steel - Bare & Coated (miles) 456 466 n
Cast Iron / Wrought Iron - without upgrades (miles) 382 364 n
Remaining Miles of Distribution Mains (# years to complete)
Our Enhanced Infrastructure Replacement Program began in 2012 and is scheduled to be completed in 2030.

Unprotected Steel (Bare & Coated) (# years to complete) 17 9 n
Cast Iron / Wrought Iron (# years to complete) 17 9 n

Distribution CO2e Fugitive Emissions

CO2e Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 226,912 227,882 n
CH4 Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 9,076 9,115 n
CH4 Fugitive Methane Emissions from Gas Distribution Operations (MMSCF/year) 473 475 n
Annual Natural Gas Throughput from Gas Distribution Operations in thousands of standard cubic feet (Mscf/year) 387,943,984 357,857,272 n
Annual Methane Gas Throughput from Gas Distribution Operations in millions of standard cubic feet (MMscf/year) 368,547 339,964 n
Fugitive Methane Emissions Rate (Percent MMscf of Methane Emissions per MMscf of Methane Throughput) 0.128% 0.140% n

CONSUMERS ENERGY NATURAL GAS TRANSMISSION AND STORAGE


Onshore Natural Gas Transmission Compression Methane Emissions
Data for Subpart W-Only Sources
Pneumatic Device Venting (metric tons/year) 0.1 0.1 n
Blowdown Vent Stacks (metric tons/year) 383 74.5 n
Transmission Storage Tanks (metric tons/year) 0 1 n
Flare Stack Emissions (metric tons/year) 0 0 n
Centrifugal Compressor Venting (metric tons/year) 21 11 n
Reciprocating Compressor Venting (metric tons/year) 270 380 n
Equipment leaks from valves, connectors, open ended lines, pressure relief valves, and meters (metric tons/year) 51 71 n
Other Leaks (metric tons/year) 0 0 n
Total Transmission Compression Methane Emissions (metric tons/year) 726 537 n
Total Transmission Compression Methane Emissions (CO2e/year) 18,142 13,428 n
Total Transmission Compression Methane Emissions (MSCF/year) 37,797 27,974 n
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  28

TREND KEY: n Not Rated n No Change n Better n Worse

CONSUMERS ENERGY NATURAL GAS TRANSMISSION AND STORAGE 2019 2020


TREND

Underground Natural Gas Storage Methane Emissions


Below Subpart W reporting threshold
Pneumatic Device Venting (metric tons/year) N/A N/A n
Flare Stack Emissions (metric tons/year) N/A N/A n
Centrifugal Compressor Venting (metric tons/year) N/A N/A n
Reciprocating Compressor Venting (metric tons/year) N/A N/A n
Equipment leaks from valves, connectors, open ended lines, pressure relief valves, and meters (metric tons/year) N/A N/A n
Other Equipment Leaks (metric tons/year) N/A N/A n
Equipment leaks from valves, connectors, open-ended lines, and pressure relief valves associated with storage wellheads (metric tons/year) N/A N/A n
Other equipment leaks from components associated with storage wellheads (metric tons/year) N/A N/A n
Total Storage Methane Emissions (metric tons/year) N/A N/A n
Total Storage Methane Emissions (CO2e/year) N/A N/A n
Total Storage Methane Emissions (MSCF/year) N/A N/A n

Onshore Natural Gas Transmission Pipeline Blowdowns


Below Subpart W reporting threshold
Transmission Pipeline Blowdown Vent Stacks (metric tons/year) N/A N/A n
Transmission Pipeline Blowdown Vent Stacks (CO2e/year) N/A N/A n
Transmission Pipeline Blowdown Vent Stacks (MSCF/year) N/A N/A n

Other Non-Sub W Emissions Data

Total Methane Emissions from additional sources not recognized by 40 CFR 98 Subpart W (metric tons/year) N/A N/A n
Total Methane Emissions from additional sources not recognized by 40 CFR 98 Subpart W (CO2e/year) N/A N/A n
Total Methane Emissions from additional sources not recognized by 40 CFR 98 Subpart W (MSCF/year) N/A N/A n

Summary and Metrics

Total Transmission and Storage Methane Emissions (MMSCF/year) 38 28 n


Annual Natural Gas Throughput from Gas Transmission and Storage Operations (MSCF/year) 242,903,533 209,910,872 n
Annual Methane Gas Throughput from Gas Transmission and Storage Operations (MMSCF/year) 230,758 199,415 n
Methane Emissions Intensity Metric (Percent MMscf of Methane Emissions per MMscf of Methane Throughput) 0.016% 0.014% n
2021 Environmental, Social, Governance and Sustainability Report  |  CMS Energy and Consumers Energy  |  29

This report contains “forward-looking statements” which may cause our results to differ materially. All forward-
looking statements should be considered in the context of the risk and other factors detailed from time to time in
CMS Energy’s and Consumers Energy’s Securities and Exchange Commission (“SEC”) filings. Forward-looking
statements should be read in conjunction with “FORWARD-LOOKING STATEMENTS AND INFORMATION” and “RISK
FACTORS” sections of our most recent Form 10-K and as updated in other reports we file with the SEC, which
can be found on our Regulatory Filings page. The information in this report may apply standards of materiality
that are different than standards applied to other investors or required to be disclosed in SEC filings. CMS Energy
and Consumers Energy have no obligation to update or revise forward-looking statements regardless of whether
new information, future events, or any other factors affect the information contained in the statements.

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