Our 2012 Corporate Responsibility Report follows guidelines defined in the Global Reporting Initiative (GRI), an international standard for corporate responsibility reporting. The GRI guidelines set out the principles and indicators organizations can use to measure and report their environmental, economic and social performance. More information about the GRI is available at www.globalreporting.org.

About this report

This report provides a detailed description of our business activities in 2012, including our successes and challenges. Accurate and balanced information is provided about our people, facilities and performance. All dollar figures are in Canadian funds.

In 2012, we completed the sale of our two small hydro assets in British Columbia and they are not included in the 2012 data.

In 2011, we divested our interests in Capital Power Income L.P. (CPILP), and five facilities were acquired in the United States.
When comparing year-over-year performance, please note that 2010 data in this report may include CPILP facilities. See Report Scope for details.

“A+” reporting level

We believe we have achieved an “A+” level of reporting under the GRI guidelines. We make this self-declaration based on the GRI requirements to meet the “A+” level.

There are three grades (A,B,C) and eligibility is based on the comprehensiveness of the report. The “+” designation indicates that this report has received third-party assurance.  Ernst & Young has checked our self-declaration and agrees with our assessment. See the Exclusions section for an explanation about why we are not able to provide certain data.

Report scope

The scope of our operations changed significantly in 2011 due to the divestiture of Capital Power Income L.P. (CPILP) and its 18 facilities, and our acquisitions and developments. When comparing year-over-year data, please note that 2010 data in this report may include CPILP facilities.

This report includes energy production and environmental performance data from power plants for which Capital Power held the operating permit in 2012, 2011, and 2010 respectively. Data from each plant represents the entire plant, not our financial share of the operation. This includes Genesee 3, co-owned with TransAlta, for which a Capital Power entity holds the operating permit.

Data from Keephills 3 and Joffre  facilities is not included because we do not hold the operating permits.

One of the challenges in preparing this report was the need to synthesize data from numerous jurisdictions, some of which have different reporting requirements, methods and standards. Where possible, information has been consolidated – for example, greenhouse gas emission data for our facilities in Canada and the United States. In other areas, information is presented separately or from a single jurisdiction.

Greenhouse gases from our landfill gas and biomass facilities are not included in aggregate greenhouse gas emission totals or emission intensity calculations; they are reported separately. This approach aligns with the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development) (2004).

Reporting intervals

We report annually on our corporate responsibility.

Reporting periods

The report provides data for our previous three full years of operation – 2010, 2011 and 2012. Data for each year is for the 12-month period starting January 1 and ending December 31 respectively.

Process for defining content

This report builds on an extensive process for defining content, including stakeholder consultation, which resulted in guidelines for determining priority topic areas and materiality. We also incorporated feedback from our 2011 report.

Other reporting

Other public disclosures, in particular the 2012 Annual Report, 2012 Annual Information Form, and 2012 Management Proxy Circular, include detailed content that responds to certain GRI indicators. The content is incorporated by cross-reference throughout the report, and the documents are available at www.sedar.com and www.capitalpower.com.

Our Canadian power plants operating above a certain emission-level threshold publicly file annual reports with Canada’s National Pollutant Release Inventory. These reports are available at www.ec.gc.ca/inrp-npri.

Residents living near the Genesee Generating Station receive the bimonthly Genesee Station Connection newsletter, which provides information about the facility’s emission performance and other issues related to plant and mine operations. Back issues are available at www.capitalpower.com.

We also distributed newsletters for residents living near our Kingsbridge 1 Wind Power facility (Ontario), Quality Wind (British Columbia), Halkirk Wind (Alberta), Port Dover & Nanticoke Wind Project (Ontario) and K2 Wind Power Project (Ontario).

Forward-Looking Information

Forward-looking information included in this Corporate Responsibility Report is provided to inform Capital Power’s readers about management’s assessment of the company’s future plans and operations. This information may not be appropriate for other purposes. The forward-looking information in this Corporate Responsibility Report includes information with respect to financial targets and commercial operations.

By their nature, forward-looking statements are subject to inherent risks and uncertainties and requires Capital Power to make certain assumptions. There is significant risk that the assumptions, predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause assumptions, actual performance and events to differ materially from those expressed in the forward-looking statements. Accordingly, this Corporate Responsibility Report is subject to the disclaimer and qualified in its entirety by the assumptions (including assumptions for 2013 financial and operational targets and guidance), qualifications and risk factors set out in the 2012 management’s discussion and analysis starting on page 11 of Capital Power’s 2012 Annual Report and in our other public disclosure filings with Canadian Securities Administrators (on SEDAR at sedar.com). Except as required by law, Capital Power does not undertake or accept any obligation to update or revise forward-looking statements. All financial information is reported in Canadian dollars unless otherwise specified.