National Grid plc Sponsored ADR

Company Overview

Business Model: National Grid plc's core value proposition is to be at the heart of a secure, affordable, and clean energy future by delivering network infrastructure and energy solutions. Its primary revenue generation mechanisms involve the transmission and distribution of electricity in Great Britain, and of electricity and gas in the northeastern United States. The Company also operates electricity interconnectors and LNG facilities, and manages a UK property business.

Market Position: National Grid plc plays a vital role in energy transformation, operating six interconnectors with a total capacity of 7.8 GW, representing approximately 80% of the UK interconnector market. In its US jurisdictions, National Grid plc is responsible for delivering energy to approximately 6 million accounts. The Company was ranked 15th in the 100 Group’s Total Tax Contribution Survey for 2023/24, 12th highest in taxes borne, and 3rd in capital expenditure for the same period.

Recent Strategic Developments: National Grid plc reported a record capital investment of £9.85 billion in the year ended 31 March 2025, a 20% year-on-year increase. The Company announced a planned investment of approximately £60 billion over five years (2024/25 – 2028/29) in its UK and US networks, nearly doubling investment from the previous period. A £7 billion Rights Issue was successfully completed in Spring 2024, generating net proceeds of £6.8 billion in 2024/25. Strategic divestments include the sale of National Grid Renewables to Brookfield Asset Management for $1.7 billion (announced February 2025, expected completion H1 2025/26), the launch of the sale of its LNG facility at the Isle of Grain, the completed sale of the UK Electricity System Operator to the UK Government (October 2024), and the sale of its residual 20% interest in UK Gas Transmission (September 2024). John Pettigrew, CEO, will retire later this year, with Zoë Yujnovich assuming the chief executive role on 17 November 2025.

Geographic Footprint: National Grid plc's primary operational regions are the United Kingdom (Great Britain) and the United States (northeastern US, specifically New England and New York). Key markets include England, Wales, the Midlands, South West England, and South Wales in the UK, and Massachusetts and New York in the US. Its international presence extends through electricity interconnectors connecting the UK to Europe. The Company operates under regulatory frameworks in the UK (Ofgem) and the US (Massachusetts Department of Public Utilities, New York Public Service Commission).

Cross-Border Operations: National Grid plc's international business structure includes key subsidiaries such as UK Electricity Transmission, UK Electricity Distribution, New England, New York, and National Grid Ventures, which operate across the UK and US. The Company participates in joint ventures, including BritNed Development Limited (50% stake) and Nemo Link Limited (50% stake), which operate interconnectors between the UK and continental Europe. Community Offshore Wind, LLC (27.27% interest) was fully impaired in 2024/25. The Company holds regulatory licences for electricity distribution in various UK regions. National Grid plc is subject to multi-jurisdictional regulatory compliance, including the UK Corporate Governance Code, US Sarbanes-Oxley Act, and International Financial Reporting Standards. The Pillar Two global minimum corporation tax rate of 15% was enacted into UK law, applicable from 1 April 2024, with an immaterial exposure to the Group.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: Omitted
• Operating Margin: 26.8%
• Net Margin: 15.8%

Investment in Growth:

• R&D Expenditure: £43m (0.23% of revenue)
• Capital Expenditures: £9,847m
• Strategic Investments: National Grid plc plans c.£60 billion in capital investment over five years (2024/25 – 2028/29), with £7,667m classified as green capital investment in 2024/25. National Grid Partners invested over $50 million in start-ups in 2024/25, contributing to over $500 million invested in more than 50 start-ups and strategic funds since 2018.

Currency Impact Analysis: In 2023/24, foreign exchange movements resulted in a £405 million decrease in revenue, a £52 million decrease in adjusted operating profit, and a £62 million decrease in underlying operating profit. The weighted average £/$ exchange rate was $1.266 in 2024/25, compared to $1.262 in 2023/24 and $1.216 in 2022/23. National Grid plc's functional currency is pounds sterling, while its US operations have a functional currency of US dollars. The Company utilizes derivative financial instruments, with a total fair value of (£720m) in 2025, to manage currency exposure.

Business Segment Analysis

UK Electricity Transmission

Financial Performance:

• Revenue: £2,484m (-7.8% YoY)
• Operating Margin: 51.4%
• Key Growth Drivers: The segment is undertaking Accelerated Strategic Transmission Investment (ASTI) projects and customer connections. Investment of up to £35 billion is planned between 2026 and 2031. Six ASTI projects have commenced, including Eastern Green Link 1 and 2 (estimated investment over £4 billion). The connections pipeline exceeds 420 GW, with demand for data centre connections totaling 13.5 MW.

Product Portfolio:

• Provides electricity transmission services across England and Wales.
• Key infrastructure connections include the Dogger Bank offshore wind farm, the Greenlink interconnector, and the first grid park at Sundon substation.

Market Dynamics:

• UK electricity demand is projected to increase by almost 50% from 2024 levels by 2035. The UK Government's Clean Power 2030 report targets 95% of Great Britain’s generation from clean sources by 2030.
• The segment has secured primary delivery partners for eight of the 11 remaining ASTI projects.
• The workforce expanded by over 600 employees, reaching close to 4,000.

Geographic Revenue Distribution:

• United Kingdom: £2,484m (13.5% of total Group revenue)

UK Electricity Distribution

Financial Performance:

• Revenue: £2,421m (+35.2% YoY)
• Operating Margin: 66.0%
• Key Growth Drivers: The segment benefits from additional asset health funding under the RIIO-ED2 regulatory period and growth in connections. It is investing £6.7 billion during the ED2 period (2023-2028). In 2024/25, it connected over 40,000 electric vehicle charge points, 40,000 domestic solar PV installations, and 16,000 heat pumps. It also connected 595 MW of clean, renewable electricity and accelerated timelines for 2.9 GW of distributed energy resources by an average of 5.8 years.

Product Portfolio:

• Delivers electricity distribution services to 20 million customers across 8 million homes and businesses in the Midlands, South West England, and South Wales.
• Initiatives include fuel poverty programmes, safety education resources for schools, and solar panel installations on five schools.

Market Dynamics:

• The segment responded to Storm Darragh, impacting over 700,000 customers, with 95% restored within 48 hours.
• It achieved £88 million of cumulative synergy since acquisition, targeting over £100 million by the end of 2025/26.
• The workforce increased by over 670 people in 2024/25, reaching over 7,000 employees.

Geographic Revenue Distribution:

• United Kingdom: £2,421m (13.2% of total Group revenue)

New England

Financial Performance:

• Revenue: £4,306m (+9.1% YoY)
• Operating Margin: 23.4%
• Key Growth Drivers: Performance is driven by increased rate case increments in Massachusetts Gas and Massachusetts Electric. The Electric Sector Modernization Plan (ESMP) was approved, outlining approximately $2 billion in anticipatory investments over five years. A five-year transmission network project was concluded, extending the life of 345 kV circuits, replacing over 750 poles and towers, and adding over 100 miles of optical ground wire. The segment connected over 197 MW of distributed energy resources and enabled the installation of 19.2 MW of EV charging infrastructure.

Product Portfolio:

• Provides electricity and gas supply and distribution, and high-voltage electricity transmission services in New England.
• Operational advancements include approximately 70 successful FLISR (Fault Location, Isolation, and Service Restoration) operations, restoring power to 86,000 customers within a minute. It replaced 134 miles of older leak-prone metal pipe and installed the first 17,000 smart meters towards a goal of over one million.

Market Dynamics:

• US electricity demand is expected to increase by around 25% by 2035. The Massachusetts Department of Public Utilities approved the ESMP.
• The segment successfully completed a billing system conversion, consolidating all six million US customers onto one platform.
• It achieved operational efficiencies of $30 million and hired nearly 100 graduates from its Clean Energy Academy programme.

Geographic Revenue Distribution:

• United States: £4,306m (23.4% of total Group revenue)

New York

Financial Performance:

• Revenue: £6,689m (+9.8% YoY)
• Operating Margin: 19.0%
• Key Growth Drivers: The New York Public Service Commission (PSC) approved a three-year rate settlement for downstate gas distribution businesses (KEDNY and KEDLI) in August 2024, including approximately $5 billion in capital investments. The Upstate Upgrade program represents a $4 billion investment. The segment enabled over 5,000 charging ports and connected 2,100 MW of distributed energy resources (DER).

Product Portfolio:

• Delivers electricity and gas supply and distribution, and high-voltage electricity transmission services in New York.
• Over 775,000 smart meters have been installed, covering more than a quarter of customers, with a goal of 100% in four years. It commissioned the largest dynamic line rating (DLR) project in the US and utilized FLISR technology to avoid over 28,000 service interruptions.

Market Dynamics:

• US electricity demand is expected to increase by around 25% by 2035.
• The segment responded to 16 major storm events, achieving 95% electricity restoration within 10 hours. It deployed 98 crews to assist with Hurricane Helene in Tennessee, Virginia, and West Virginia, and later to Florida for Hurricane Milton.
• Operational efficiencies amounted to $59 million in 2024/25. The segment identified a need for over 500 additional employees in the New York electric business over the next 10 years, including over 350 new roles in the next three years.

Geographic Revenue Distribution:

• United States: £6,689m (36.4% of total Group revenue)

National Grid Ventures

Financial Performance:

• Revenue: £1,350m (+1.3% YoY)
• Operating Margin: 0.4%
• Key Growth Drivers: Performance was driven by improved availabilities in interconnectors, with Viking Link reaching 92% availability and overall interconnector availability at 86%. The segment returned an additional £89 million to customers in the current year, contributing to £277 million in returns over the past two years, with a further £149 million forecast over the next two years.

Product Portfolio:

• Operates six interconnectors with a total capacity of 7.8 GW, representing approximately 80% of the UK interconnector market.
• Includes LNG facilities at Isle of Grain (UK) and Providence, Rhode Island (US). The Grain LNG Cap 25 capacity expansion project is due for completion in 2025/26, increasing storage capacity to 1.2 million m3 and throughput to meet 33% of GB gas demand.
• The East Hampton battery storage facility returned to service in July 2024. The LionLink OHA pilot project to the Netherlands was approved by Ofgem.

Market Dynamics:

• National Grid plc announced the planned divestment of National Grid Renewables and Grain LNG in May 2024. The sale of National Grid Renewables to Brookfield Asset Management was announced in February 2025, with expected completion in the first half of 2025/26.
• A £303 million impairment was recognized for the investment in Community Offshore Wind, LLC.
• The interconnector portfolio delivered 38 TWh, equivalent to powering over 14 million households. The segment achieved a high customer satisfaction score of 87% across all business units.

Geographic Revenue Distribution:

• United Kingdom & United States: £1,350m (7.3% of total Group revenue)

International Operations & Geographic Analysis

Revenue by Geography:

International Business Structure:

• Subsidiaries: National Grid plc operates through distinct subsidiaries for its regulated electricity transmission and distribution businesses in the UK (UK Electricity Transmission, UK Electricity Distribution) and its combined electricity and gas operations in the US (New England, New York). National Grid Ventures manages interconnectors and other energy infrastructure in both regions.
• Joint Ventures: The Company holds 50% stakes in BritNed Development Limited and Nemo Link Limited, which operate electricity interconnectors between the UK and continental Europe. Community Offshore Wind, LLC (27.27% interest) was fully impaired in 2024/25. Emerald Energy Venture, LLC (51% interest) is classified as held for sale.
• Licensing Agreements: National Grid plc holds regulatory licences for electricity distribution in specific regions of the UK, including West Midlands, East Midlands, South Wales, and South West.

Cross-Border Trade:

• Export Markets: The Company's interconnectors facilitate the export of electricity from the UK to continental Europe.
• Import Dependencies: Not explicitly detailed in the filing, but the Company's operations involve significant purchases of electricity and gas as operating costs.
• Transfer Pricing: Not explicitly detailed in the filing.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: Not explicitly detailed as a program in the filing.
• Dividend Payments: £1,529m in 2024/25.
• Dividend Yield: Not explicitly stated. The full-year dividend for 2024/25 was 46.72p per ordinary share, a 3% increase from the 45.26p 'rebased' dividend per share for 2023/24.
• Future Capital Return Commitments: A final dividend of 30.88p per share is proposed for 2024/25, payable on 17 July 2025.

Balance Sheet Position:

• Cash and Equivalents: £1,178m as of 31 March 2025.
• Total Debt: £47,539m as of 31 March 2025.
• Net Cash Position: (£41,371m) (net debt) as of 31 March 2025.
• Credit Rating: BBB+/Baa1 (S&P/Moody’s).
• Debt Maturity Profile: The Company raised £3.2 billion of new long-term senior debt in 2024/25. Subsequent to year-end, National Grid North America priced a EUR1.2 billion bond issue on 27 May 2025, consisting of EUR500 million 5-year 3.15% notes and EUR700 million 3.917% 10-year notes.

Cash Flow Generation:

• Operating Cash Flow: £6,808m from continuing operations in 2024/25.
• Free Cash Flow: Not explicitly detailed as a single metric in the filing.
• Cash Conversion Metrics: Retained cash flow (RCF) was £3,991m in 2024/25. The RCF/adjusted net debt ratio was 9.8% in 2024/25.

Currency Management:

• Cash holdings by major currencies: Not explicitly detailed in the filing.
• Natural hedging through operational diversification: Operations in both the UK (GBP functional currency) and the US (USD functional currency) provide a degree of natural hedging.
• Financial hedging instruments and strategies: National Grid plc utilizes derivative financial instruments, with financing derivatives having a fair value of (£763m) in 2024/25.

Operational Excellence

Production & Service Model: National Grid plc's operational philosophy centers on delivering network infrastructure and energy solutions to enable a secure, affordable, and clean energy future. Its model involves the transmission and distribution of electricity and gas, alongside the operation of critical electricity interconnectors and LNG facilities. The Company emphasizes significant capital investment in network upgrades and expansion to meet increasing energy demand and decarbonization goals.

Global Supply Chain Architecture: Key Suppliers & Partners:

• Manufacturing Partners: For UK Electricity Transmission, primary delivery partners have been secured for eight of the 11 remaining Accelerated Strategic Transmission Investment (ASTI) projects.
• Technology Partners: National Grid Partners actively invests in technology start-ups, including 18 AI start-ups, to foster innovation. The Company also deploys advanced technologies such as LineVision sensors for dynamic line rating in New York.

Facility Network:

• Manufacturing: While not a traditional manufacturing company, National Grid plc's operations involve extensive infrastructure development and maintenance across its electricity and gas networks.
• Research & Development: The Company invested £43m in R&D in 2024/25, with National Grid Partners playing a key role in investing in new technology companies.
• Distribution: National Grid plc maintains extensive electricity and gas distribution networks in the UK and US, supported by necessary warehousing and logistics infrastructure for regional operations.

Operational Metrics:

• Network reliability: Maintained at 99.9% across the Group. Specific reliability rates for 2024/25 include UK Electricity Transmission at 99.99983%, UK Electricity Distribution at 99.98294%, New England Electricity Transmission at 99.98544%, New York Electricity Transmission at 99.84345%, New England Electricity Distribution at 99.97724%, and New York Electricity Distribution at 99.94077%.
• Capacity utilization: Overall interconnector availability was 86% in 2024/25, with Viking Link achieving 91.7% availability.
• Efficiency measures: Achieved £88 million of cumulative synergy in UK Electricity Distribution since acquisition, $30 million in operational efficiencies in New England, and $59 million in New York in 2024/25.
• Quality indicators: 92% of suppliers were paid to terms.
• Environmental performance: Reduced SF6 emissions from operations by 36% (15% reduction this year). Connected 3,016 MW of renewable capacity to networks across the UK and US in 2024/25.
• Safety: Group lost time injury frequency rate (LTIFR) per 100,000 hours was 0.10.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: National Grid plc primarily engages in direct sales by providing electricity and gas transmission and distribution services directly to customers within its regulated service territories in the UK and US.
• Channel Partners: Not explicitly detailed in the filing.
• Digital Platforms: The Company has invested in digital infrastructure, exemplified by the successful billing system conversion in New England, which consolidated all six million US customers onto a single platform. It is also deploying smart meters and developing online sales channels for specific initiatives like the EV Charge Smart Plan in New York.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Major enterprise relationships are implied by the scale of its network operations, including connecting significant demand for data centers (13.5 MW in UK Electricity Transmission).
• Strategic Partnerships: Not explicitly detailed beyond general network connections and regulatory engagements.
• Customer Concentration: While specific concentration risks are not detailed, the Company serves approximately 6 million accounts in the US and 20 million customers across 8 million homes and businesses in UK Electricity Distribution, indicating a broad customer base.

Regional Market Penetration:

• United Kingdom: National Grid plc holds a strong market position, particularly in the UK interconnector market where it accounts for approximately 80% of capacity. Its UK Electricity Transmission and Distribution segments are integral to the national energy infrastructure.
• United States: The Company maintains a significant presence in the New England and New York regions, serving a large customer base.
• Growth Markets: National Grid plc's strategy includes a strong focus on enabling the energy transition, connecting renewable energy capacity, and expanding electric vehicle charging infrastructure in both its UK and US markets. This involves local partnerships and initiatives to support emerging market needs.

Competitive Intelligence

Global Market Structure & Dynamics

Industry Characteristics: The energy industry is undergoing significant transformation, driven by increasing electricity demand, which is expected to rise by almost 50% in the UK and around 25% in the US by 2035. Innovation in electricity generation, coupled with ambitious clean power targets (e.g., 95% clean generation in Great Britain by 2030), is driving substantial network infrastructure investment and evolution.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: The provided filing does not explicitly name direct competitors for National Grid plc.

Regional Competitive Dynamics: The filing does not explicitly detail competitive landscape variations by major geographic markets.

Risk Assessment Framework

Strategic & Market Risks

Global Market Dynamics:

• Satisfactory Regulatory Outcomes: The Company faces risks related to regulatory decisions impacting its revenue, allowed returns, and investment programs across its UK and US jurisdictions.
• Climate Change Mitigation: Risks include the ability to meet ambitious net-zero targets by 2050 and adapt operations to the physical impacts of climate change, with regional variations in impact and mitigation strategies.
• Political and Societal Expectations: The risk outlook is increasing due to evolving political agendas and societal demands for affordable, reliable, and clean energy, which can influence regulatory policy and public perception.
• Technology Disruption: Emerging technologies, particularly Artificial Intelligence, present both strategic opportunities and potential risks related to operational efficiency, cybersecurity, and competitive positioning across markets.
• Customer Affordability: Customer affordability issues are identified as an emerging risk, potentially impacting demand and regulatory support for investment.

Operational & Execution Risks

Global Supply Chain Vulnerabilities:

• Supplier Dependency: Risks associated with reliance on key suppliers for critical materials and services, with potential geographic concentration risks and the need for robust backup strategies.
• Regional Disruptions: Operations are exposed to political, economic, and natural disaster risks (e.g., major storm events like Hurricane Helene and Storm Darragh) that can disrupt networks and incur significant restoration costs.
• Trade Restrictions: Not explicitly detailed in the filing.

Significant Safety or Environmental Event (Asset Integrity): The Company faces risks of major safety incidents (Group LTIFR of 0.10 in 2024/25) and environmental events, including those related to asset integrity and increased Scope 1 and 2 GHG emissions (7,422 ktCO2e in 2024/25).

Financial & Regulatory Risks

Currency & Financial Risks:

• Financing Our Business: Significant capital investment plans (c.£60 billion over five years) necessitate robust financing strategies, with risks related to access to capital markets globally and cost of debt.
• Foreign Exchange: Multi-currency exposure from operations in the UK (GBP) and US (USD) creates foreign exchange risk, managed through hedging strategies.
• Interest Rate Risk: Not explicitly detailed, but changes in interest rates can impact the cost of the Company's substantial debt portfolio across jurisdictions.
• Credit & Liquidity: The Company maintains £7.8 billion of undrawn committed facilities as of May 2025 and holds credit ratings of BBB+/Baa1, indicating access to capital.

Regulatory & Compliance Risks:

• Multi-Jurisdictional Compliance: Operating across diverse regulatory environments (Ofgem in the UK, DPU and PSC in the US) creates complexity in ensuring legal and regulatory compliance.
• Trade Regulations: Not explicitly detailed in the filing.
• Tax Regulations: Compliance with international tax planning and transfer pricing rules, including the new Pillar Two global minimum corporation tax rate of 15% in the UK, poses ongoing risks.

Geopolitical & External Risks

Country-Specific Risks:

• Political Risk: Government stability and policy changes in the UK and US, as well as in countries connected by interconnectors, can affect operations and investment.
• Economic Risk: Risks include currency devaluation and economic instability in key markets, which can impact revenue and profitability.
• Regulatory Changes: Local law changes, such as new climate legislation in Massachusetts, can directly affect operational requirements and costs.
• Geopolitical Tensions: Identified as an emerging risk, with potential for business or supply chain disruption.

Innovation & Technology Leadership

Research & Development Focus: Global R&D Network:

• National Grid plc's R&D expenditure was £43m in 2024/25.
• National Grid Partners: This corporate venture arm has invested over $500 million in more than 50 start-ups and strategic funds since 2018, including over $150 million in 18 AI start-ups, fostering a global R&D network.
• Innovation Pipeline: The Company focuses on technology development and regional commercialization in areas such as smart grid solutions (e.g., FLISR, dynamic line rating), clean energy integration, and digital platforms to support the energy transition.

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed in the filing.
• Licensing Programs: Not explicitly detailed in the filing.
• IP Litigation: Not explicitly detailed in the filing.

Technology Partnerships:

• Strategic Alliances: National Grid Partners facilitates strategic alliances with technology start-ups, integrating innovative solutions into the Company's operations.
• Research Collaborations: While not explicitly detailed, the Company's R&D focus and investment in start-ups imply collaborations to advance technology development.

Leadership & Governance

Executive Leadership Team

International Management Structure: The filing indicates a structure with regional leadership for its UK and US operations, but specific reporting relationships and the balance between local management autonomy and centralized oversight are not explicitly detailed.

Board Composition: The Board comprises a Non-executive Chair, two Executive Directors, and eight independent Non-executive Directors. As of 31 March 2025, the Board's diversity included 36.4% women and 18.2% Black/African/Caribbean/Black British ethnicity, with 45.5% of members being US nationals. Board members Martha Wyrsch, Earl Shipp, Jonathan Silver, and Anne Robinson bring relevant experience in climate-related issues. The Board operates with an Audit & Risk Committee, Safety & Sustainability Committee, Finance Committee, and Remuneration Committee, structured to address cross-border operational and governance complexities.

Regulatory Environment & Compliance

Multi-Jurisdictional Regulatory Framework: Primary Regulatory Environments:

• United Kingdom: National Grid plc operates under the regulatory oversight of Ofgem for its electricity transmission and distribution, and interconnector businesses. It adheres to the UK Corporate Governance Code and the Companies Act 2006. The UK corporation tax rate is 25%, and the Pillar Two global minimum corporation tax rate of 15% was enacted, applicable from 1 April 2024, with immaterial exposure to the Group.
• United States: Operations in the US are regulated by bodies such as the Massachusetts Department of Public Utilities (DPU) and the New York Public Service Commission (PSC). The Company is also subject to the US Sarbanes-Oxley Act of 2002 (SOx).
• Key Regulations, Compliance Requirements, Costs: Compliance involves navigating rate case approvals (e.g., New York's three-year rate settlement for downstate gas distribution), investment plan approvals (e.g., New England's Electric Sector Modernization Plan), and managing environmental provisions, which totaled £2,065 million in the US as of 31 March 2025.

Cross-Border Compliance:

• Export Controls: Not explicitly detailed in the filing.
• Sanctions Compliance: Not explicitly detailed in the filing.
• Anti-Corruption: Not explicitly detailed in the filing.

International Tax Strategy:

• Transfer Pricing: Not explicitly detailed in the filing.
• Tax Treaties: Not explicitly detailed in the filing.
• BEPS Compliance: The Company is subject to Base Erosion and Profit Shifting (BEPS) regulations, with the Pillar Two global minimum corporation tax rate of 15% having an immaterial impact on the Group.

Environmental & Social Impact

Global Sustainability Strategy: Environmental Commitments:

• Climate Strategy: National Grid plc has a published Climate Transition Plan (CTP) to achieve net zero by 2050, aligned with the Paris Agreement. The CTP was approved by 99% of shareholders at the July 2024 AGM.
• Carbon Neutrality: The Company is committed to achieving net zero by 2050.
• Renewable Energy: In 2024/25, National Grid plc connected 3,016 MW of renewable capacity to its networks across the UK and US. Approximately 85% (c.£51 billion) of the planned c.£60 billion investment over five years (2024/25 – 2028/29) is expected to be classified as green investment.

Regional Sustainability Initiatives:

• United Kingdom & United States: The Company launched a £13.8 million Grid for Good Energy Affordability Fund, running for three years across its UK and Northeast US footprint, benefiting 259,884 households in the UK alone.
• Supply Chain: 56% of UK suppliers have committed to setting Science Based Targets (SBTs), and 43% of US suppliers have established a plan for setting SBTs.
• GHG Emissions: Scope 1 and 2 GHG emissions were 7,422 ktCO2e in 2024/25, an 8.3% year-on-year increase from 6.9 ktCO2e in 2023/24. Scope 3 emissions were 28.4 ktCO2e.
• SF6 Emissions: The Company reduced SF6 emissions from operations by 36% (15% reduction this year).

Social Impact by Region:

• Community Investment: In the UK, the Company helped 21,000 customers save £22 million through fuel poverty programs and awarded nearly £1 million to 247 grassroots organizations. In New York, over $11 million in economic development funds were awarded.
• Labor Standards: National Grid plc employs over 30,000 people (31,645 in 2024/25) across the UK and US. It welcomed 236 graduates and filled 39% of jobs internally. The Company is accredited with the Living Wage Foundation in the UK and reported an employee engagement index of 80%.

Currency Management & Financial Strategy

Multi-Currency Operations: Currency Exposure:

Hedging Strategies:

• Transaction Hedging: National Grid plc utilizes derivative financial instruments to manage currency risk, with financing derivatives having a fair value of (£763m) in 2024/25.
• Translation Hedging: Not explicitly detailed in the filing.
• Economic Hedging: Not explicitly detailed in the filing.