LUMINANT (subsidiary of Vistra Energy Corporation) Statements on Climate Change “We could be materially and adversely affected if current regulations are implemented or if new federal or state legislation or regulations are adopted to address global climate change, or if we are subject to lawsuits for alleged damage to persons or property resulting from greenhouse gas emissions. There is a concern nationally and internationally about global climate change and how GHG emissions, such as CO2, contribute to global climate change.”193 “Litigation, legal proceedings, regulatory investigations or other administrative proceedings could expose us to significant liabilities and reputation damage that could have a material adverse effect on us. We are involved in the ordinary course of business in a number of lawsuits involving, among other matters, employment, commercial, and environmental issues, and other claims for injuries and damages. We evaluate litigation claims and legal proceedings to assess the likelihood of unfavorable outcomes and to estimate, if possible, the amount of potential losses. Based on these evaluations and estimates, when required by applicable accounting rules, we establish reserves and disclose the relevant litigation claims or legal proceedings, as appropriate. These evaluations and estimates are based on the information available to management at the time and involve a significant amount of judgment. Actual outcomes or losses may differ materially from current evaluations and estimates. The settlement or resolution of such claims or proceedings may have a material adverse effect on us. We use appropriate means to contest litigation threatened or filed against us, but the litigation environment poses a significant business risk.”194 “The supply side of our business is experiencing a transition, some market-driven and some policy-driven, and we must manage our company through this transition in an economic manner. It is not an option to just say no to change. We can and must participate to the long-term benefit of our company and our stakeholders. We have begun the process of rotating our generation fleet and during this process we will operate a wide variety of facilities as the fuel mix changes based on opportunity to economically produce electricity and provide reliable, cost-effective power to meet our customers’ needs. Electricity is essential to society’s most important priorities: food production and processing, construction of residences and businesses including hospitals and schools, and production of critical goods and services, such as military equipment and transportation resources. The reliable production and delivery of power is certainly important, but the cost must also be considered. Subsidies and artificial support of electricity resources increase the cost to consumers and ultimately crowd Vistra Energy Corp. (2018), Annual Report, p. 26, available at http://d18rn0p25nwr6d.cloudfront.net/CIK0001692819/f3521a6b-5091-41f4-ab64-198033f63566.pdf (last accessed on 12 September 2019). 194 Id., p. 27. 193 Annex D: Corporate Statements on Climate Change and Human Rights | 49