Environmental Policy Statement

Constellation Energy recognizes and will meet its responsibility to properly care for the environment.

This environmental policy statement represents our commitment to our shareholders, customers, employees, and the communities we serve, that environmental stewardship is a fundamental corporate value across our company.  In conducting our business we will meet or exceed the requirements of all applicable environmental laws and regulations, and we see this as the minimum standard to which we hold ourselves.  In all facets of our business we will examine our interaction with the environment to identify ways of minimizing both the environmental risks and the environmental impacts from our activities.  We are committed to using natural resources responsibly, preventing pollution, improving energy efficiency, and enhancing environmental stewardship.  We will continuously improve our environmental management practices and environmental performance.  We will continue to create value for our shareholders, our customers, and other stakeholders in our company by identifying innovative ways to help energy users meet their need for environmentally responsible energy services.

Implementation

We will implement our environmental policy through specific programs and processes designed to promote excellence in environmental performance and we will regularly report on our progress.  Initially these reports will address the following areas:

• Results from our corporate oversight program, including internal and external compliance audits and EMS conformance audits
• Use of appropriate environmental performance metrics, including both leading and lagging indicators
• Development and maintenance of company-wide environmental management systems (EMS) in accordance with international standards such as ISO 14000, with a clearly established accountability structure up through senior management and reviewed by our board of directors
• Incorporation of environmental issues into our annual strategic business planning process, including compliance strategies, environmental opportunities and challenges and resource requirements, taking into account fuel availability, quality and costs, production unit characteristics, and advances in pollution control technology
• Conduct of regular management reviews of environmental strategies, goals, and performance
• Development and implementation of a risk assessment approach to reduce the environmental impact of our operations, including aggressively addressing environmental incidents should they occur
• Conduct of training for employees and contractors in their environmental responsibilities, and incorporation of environmental goals and metrics into individual performance assessments
• Continuous examination of our corporate culture to ensure commitment to environmental performance improvement and to the objectives of our environmental policy
• Commitment to communicate and openly exchange ideas with communities, governments, regulators, and other stakeholders about our environmental performance and in support of sound environmental policies.