2023

Environmental,
Social, andGovernance
Report
BUILDING BRIGHTER FUTURES

Contents
Introduction
President & CEO Statement......................... 3

Our Business
About Our Company........................................ 5
Mission & Values................................................ 6
Peabody at a Glance....................................... 7
Our ESG Program.............................................. 8
Our Approach to ESG...................................... 9
Building Brighter Futures.............................10

Environmental
Role of Coal.......................................................12
Climate Change...............................................13
Our Net-Zero Aspiration..............................14

SocialGovernance

Human Rights...................................................24

ESG Oversight..................................................41

Labor....................................................................25

Our Board of Directors..................................42

Human Capital.................................................26

Independence...................................................43

Compensation & Benefits ...........................27

Ethics....................................................................44

Recruitment.......................................................29

Anti-Bribery & Corruption...........................45

Retention............................................................30

Whistleblower..................................................46

Employee Engagement & Satisfaction .31

Risk Management...........................................47

Diversity & Inclusion ......................................32

Crisis Management........................................48

Health & Safety................................................34

Cybersecurity....................................................49

Community Involvement..............................37

Stakeholder Engagement............................50

Supply Chain Management........................39

Political Contributions...................................51

Appendix
KPI Data Charts......................................53

Our Commitments & Progress...................15
Environmental Management......................16
Land & Bond Release....................................17
Land Restoration & Biodiversity...............18
Air Emissions & Energy Use........................19
Water Use & Management.........................21
Waste...................................................................22

Published 3-23-2023. Revised 3-28-2023.
2

President & CEO Statement
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

As a leading, modern coal company,
Peabody understands that stewardshipand leadership go hand in hand. Global
conflict, weather events, and the ongoing
impact of the pandemic have brought
access to affordable, reliable, andsecure energy and steel into sharp focus
around the world. Peabody recognizes
the important role we play in delivering
products that support economic
prosperity and improved quality oflife. Likewise, our commitment tosustainability shapes Peabody’s strategy
for the future including supporting
our stakeholder needs, practicing
operational excellence, and championing
ESG practices.
From the boardroom to the coal face,
Peabody is committed to safety,
sustainability, and integrity. Safety is
our leading measure of excellence. I
am happy to report that in 2022 ourworkforce achieved its lowest annual
global injury rate ever, with three of ouroperations reporting zero incidents.
During the year, we achieved final bondreleases approved on over 3,000 acresof reclaimed land, including full permit
release at the Big Sky Mine in Montana.
We had approximately $12 million of2023 Environmental, Social, and Governance Report

U.S. reclamation bond releases approved
and restored more than 2,300 acres inthe year.
As we look to the future of energy
and the role Peabody will play, we
announced a 50 percent ownership in
R3 Renewables. R3 Renewables is arenewable energy development company
that will pursue the development of over
3 GW of solar PV and 1.5 GW of battery
storage capacity over the next five years.
We continue to strengthen our ESG
programs, take steps to better support
the ESG targets of our stakeholders,and balance the strategic developmentof coal assets within our portfolio with
our emerging renewables projects
and our greenhouse gas emission
reductions. We believe this is the rightcombination for our future and a net-zeroemissions future.
Along with our emissions targets, weare implementing new ways to attract,
train, and retain our workforce. We will
make our ESG commitments a reality
by continuing to pursue a pipeline ofprojects targeted to create value for our
stakeholders, optimizing our existing
assets, and promoting new technology.

Our reputation as a responsible mining
company is supported by policies andprocedures across our organizationthat promote ethical decision making.
Peabody believes our people are key tobetter business. We offer an inclusive
work environment that engages,
recognizes, and develops employees tomaximize their full potential.
We are proud of where we are today.
We recognize that there is more we cando. As we continue moving forward in
2023, we are energized by the programs
we have established, and we remaincommitted to continuous improvementthat will build brighter futures for all of
our stakeholders.

Jim Grech
President & CEO
Peabody“We continue to strengthen
our ESG programs, takesteps to better support
the ESG targets of our
stakeholders, and balance
the strategic developmentof coal assets within our
portfolio with our emerging
renewables projects andour greenhouse gas
emission reductions.”
Jim Grech
President & CEO

3

INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Our Business
IN THIS SECTION
About Our Company........................................ 5
Mission & Values................................................ 6
Peabody at a Glance....................................... 7
Our ESG Program.............................................. 8
Our Approach to ESG...................................... 9
Building Brighter Futures.............................102023 Environmental, Social, and Governance Report4About Our Company
Peabody is a leading coal producer, providing essential products for the
production of affordable, reliable energy and steel. Our commitment tosustainability underpins everything we do and shapes our strategy forthe future.

INTRODUCTION
OUR BUSINESSENVIRONMENTAL

We are focused on three core portfolios—seaborne thermal, seaborne
met and U.S. thermal. Our seaborne thermal segment is well positioned
to serve continued strong demand from growing Asia Pacific economies
and is supported by our high-quality, low-cost mines in Australia. Our
seaborne met segment provides an essential ingredient for steelmaking
to customers in Asia and Europe. The U.S. thermal segment benefits
from our low-cost operations and serves as a foundation for the U.S.
energy grid now and in the future.

SOCIAL
GOVERNANCE
APPENDIX

2023 Environmental, Social, and Governance Report5Mission & Values
INTRODUCTION

Our Mission

Our Values

OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIXTo create superior value forshareholders as the leading
global supplier of coal, whichenables economic prosperity
and a better quality of life.

SafetyExcellence

We commit to safety andhealth as a way of life.

We are accountable for ourown success. We operatecost-competitive minesby applying continuous
improvement andtechnology-driven solutions.

PeopleWe offer an inclusive
work environment andengage, recognize anddevelop employees.

Integrity
We act in an honest andethical manner.

Customer Focus
We provide customers
with quality products andexcellent service.

2023 Environmental, Social, and Governance Report

Sustainability
We take responsibility forthe environment, benefit ourcommunities and restore theland for generations
that follow.

Leadership
We have the courage tolead, and do so throughinspiration, innovation,
collaboration and execution.

6

Peabody at a Glance
INTRODUCTION

2022 Quick Facts1

OUR BUSINESSTRIFR2

1.13

ENVIRONMENTAL
SOCIALEMPLOYEES

˜ 5,500

GOVERNANCE
APPENDIX

RawhideCaballo

North Antelope
Rochelle

ACRES RESTORED

2,300

Twentymile

North
Goonyella

COUNTRIES SERVED

26

Coppabella
Moorvale

Middlemount
Brisbane
OfficeEl Segundo/
Lee Ranch2022 ADJUSTED EBITDA3

Shoal
Creek

$1.8 Billion

Bear
Run
St. Louis

Headquarters

Gateway North

Wambo UndergroundWilpinjong

Francisco

Wambo Open-Cut
Metropolitan

Wild Boar

TONS SOLD

124 Million

Seaborne Thermal: 16M tons
Seaborne Met: 7M tons
U.S. Thermal: 101M tons

Mining Operations
Seaborne Met

PRB Thermal

Seaborne Thermal

Other U.S. Thermal

Surface Mine

Underground Mine

2022 REVENUES$5.0 Billion
1

All statistics are for the year ended December 31, 2022.

2

Total Recordable Incident Frequency Rate (‘TRIFR’) equals recordable incidents per 200,000 hours worked; MSHA reported total U.S. TRIFR for 2022 of 2.77

3Adjusted EBITDA is a non-GAAP financial measure.

2023 Environmental, Social, and Governance Report7Our ESG Program
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

We believe that good environmental, social, and governance (“ESG”) practices
are good business practices. We are embracing a future in which issues that arematerial to our ESG strategy are both risks as well as opportunities to differentiate
ourselves as the Coal Producer of Choice. This focus, coupled with our commitment
to sustainability, will drive the future success of our business. As a part of thiscommitment, we continue to review our current programs and improve ourenvironmental, social, and governance efforts in ways that mitigate risk andcreate value.
Throughout this process, we identified opportunities to strengthen our programs
and gaps in our current offerings. In 2021, we developed our first targets to
reduce greenhouse gas emissions as we move toward our ambition of net-zeroemissions by 2050. Attaining these first, near-term targets requires the more robust
data management program we are currently implementing, as well as processoptimization, technology, and planning to balance growth in customer demand foraffordable, reliable energy and steel.
Our success is built on the foundation of our employees. We believe we can bettersupport our current and future employees through enhancements to our existing
training, mentorship, and diversity and inclusion programs.
We are deploying expanded programs to attract and retain creative, talented
individuals and leverage the diverse perspectives, backgrounds, and expertise of
our workforce to drive success in all our focus areas. Together with our customers,
suppliers, employees, and other stakeholders, we will continue to make a positive
impact on the communities in which we operate and foster a workplace that isfulfilling to all.

2023 Environmental, Social, and Governance Report

2023 ESG
Priority
Assessment
TopicsEnvironmental• Greenhouse Gas Emissions• Biodiversity &Environmental Impact• Emissions• Waste• Energy Use• WaterSocialGovernance• Human Capital Management• Risk Management• Diversity & Inclusion• Ethics• Health & Safety• Board Composition• Human Rights• Cybersecurity• Supply Chain Management• Whistleblower Protection• Community Involvement• Political Contributions

8

Our Approach to ESG
At Peabody, we are driving a holistic approach to environmental, social, andgovernance practices to deliver further value across our business and to
our stakeholders.

INTRODUCTION
OUR BUSINESS

We believe that coal will continue to be essential in the production of affordable,
reliable, and secure energy and steel. We will continue to strengthen our position byaligning our strategy and practices with the goals of our stakeholders and remaining
focused on creating value for our shareholders.

ENVIRONMENTAL
SOCIAL
GOVERNANCE

To identify ESG focus areas that impact our business, our materiality process was
guided by the Task Force on Financial Climate-related Disclosures (“TCFD”), thetopics recommended by the Sustainability Accounting Standards Board (“SASB”)
Sustainable Industry Classification System® (“SICS”) for Coal Operations, and thereporting standards established by the Global Reporting Initiative (“GRI”). Results arethen integrated within our risk management systems to assess risks and opportunities
across our company and build actionable performance goals.

APPENDIX

In 2019, Peabody became a signatory to the UN Global Compact, the world’s largest
global corporate sustainability initiative. The UN Global Compact provides a universal
framework for sustainability in the areas of human rights, labor, environment, and anticorruption, and we continue to support and participate in this effort.

2023 Environmental, Social, and Governance Report9Building Brighter Futures
INTRODUCTION
OUR BUSINESSENVIRONMENTAL

From the boardroom to the coal face, Peabody is committed to safety, sustainability, and integrity. The
governing principles that guide our board enable the operational excellence, focused engagement, andfinancial strength to meet these values.

SOCIAL
GOVERNANCE
APPENDIX

Environmental

SocialGovernancePeabody maintains an Environmental Policy thatis incorporated within the safety and sustainability
management system. Our Chief Executive Officer,
supported by the Chief Operations Officer,
operational presidents and functional heads, haveoverall responsibility for Peabody’s environmental
performance, with oversight by our board of directors,
including through its Health, Safety, Security, andEnvironment Committee.

Our social approach is grounded in our belief that not
only our products, but our people, are key to a betterbusiness and a better society. Peabody has establishedprograms to ensure our values are espoused within ourorganization and in our collaborations with stakeholders.
Our Chief Executive Officer and the Executive Leadership
Team have overall responsibility for Peabody’s humancapital management program, safety performance,and collaboration in the communities we serve. The
board of directors, including through its Compensation
Committee, has oversight for these functions.

Peabody operates under a set of governance principles
covering such issues as board and management roles
and responsibilities, board composition and director
qualifications, election procedures, meeting procedures,committee functions, director orientation and continuing
education, management evaluation and succession,
corporate governance guidelines, and overall corporate
compliance and safety standards. The board of directors
and the board’s Nominating and Governance Committee
have oversight of these functions.

2023 Environmental, Social, and Governance Report10INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Environmental
IN THIS SECTION
Role of Coal.......................................................12

Land Restoration & Biodiversity...............18

Climate Change...............................................13

Air Emissions & Energy Use........................19

Our Net-Zero Aspiration..............................14

Water Use & Management.........................21

Our Commitments & Progress...................15

Waste...................................................................22

Environmental Management......................16
Land & Bond Release....................................172023 Environmental, Social, and Governance Report11Role of Coal
As a leading, modern coal company, Peabody
understands that stewardship and leadership go handin hand. Our commitment to sustainability shapes
Peabody’s strategy for the future.

INTRODUCTION
OUR BUSINESSENVIRONMENTAL

We believe coal has an important role to play in a netzero emission future. A diverse energy mix that includes
coal ensures reliability, affordability, and energy security.
Coal is also a building block for economic progress.
It provides the fuel for low-cost baseload electricity
that economies need to grow and resources for the
production of steel needed to build infrastructure that
leads to a better quality of life.

SOCIAL
GOVERNANCE
APPENDIX

2023 Environmental, Social, and Governance Report

12

Climate Change
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody recognizes that the effects of climate change must be addressed. Peabody also believes
that a concerted global effort is required to reduce greenhouse gas (GHG) emissions, including thoseresulting from the use of energy resources such as coal.
In collaboration with our stakeholders, Peabody has a responsibility to reduce our GHG emissions
to fulfill our company ambition of achieving net-zero emissions by 2050. We are committed to anincremental approach in which we establish and report on specific, measurable, near-term targets thatwill support this ambition.
Peabody is taking direct actions to reduce emissions from our mining operations and driving
investment in the development and adoption of low emissions technologies that will be critical for theworld to reach its climate goals. Importantly, we believe that the transition to a net-zero emissions
economy must balance the need for a timely transition with the necessity for affordable, reliableenergy and steel.
Applying emission reduction technology to existing resources and infrastructure must play a key role inreaching a net-zero future.

Commitment to the University of
Wyoming School of Energy Resources
Peabody donated $500,000 to the University of Wyoming
School of Energy Resources (SER) to support innovation in thefield of carbon engineering and management. In addition to
the initial gift, Peabody has made a sustaining commitment of
one cent per ton of Wyoming coal sold by Peabody to support
these efforts.
This gift will create the Peabody Education, Innovation, andTechnology Fund to support SER’s pioneering solutions incarbon engineering, management, capture, utilization, andstorage, as well as reclamation, alternative coal uses, regulatory
analysis and policy, and more. These technologies are importantto reduce carbon emissions while also meeting the world’s
energy needs.
Peabody is keenly interested in SER-led work in carbon
management, particularly in carbon capture, utilization, andstorage—a field in which the company has been involved formany years and in which SER and UW are recognized leaders.
The financial support from Peabody will allow SER to expand
work in this area with a particular focus on supporting carbon
capture, utilization, and storage of Wyoming coal.
Producing more than forty percent of the nation’s coal, thePowder River Basin is the largest coal-producing region in
the United States. Peabody’s latest commitment will cultivate
critical research avenues intended to help achieve net-zeroemissions aspirations and expand markets for Wyoming coal.

2023 Environmental, Social, and Governance Report13Our Net-Zero Aspiration
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody believes there is a place for coal in the energy economy of the future. We
believe that a transition to a net-zero emissions economy must balance the needfor affordable, reliable, and secure energy production to drive continued growthand development. A transition that fails to leverage existing energy generationand transmission infrastructure, while investing in carbon mitigation measures, willcompromise energy reliability and the global economy. This will place the burden of
higher energy costs on those who can least afford it.
At Peabody, we are embracing the world’s transition to net-zero emissions as
an opportunity. We want to create further value for our stockholders by reducing
emissions at our operations and developing ways to support our customers’ ESG
commitments, including the development of renewables.
As part of this strategy, we are developing a pipeline of projects aimed at reducing
emissions by leveraging existing assets and new technology. We know the deploymentof technology is imperative to reaching a sustainable, net-zero emissions future.
Proven technology exists today to significantly reduce carbon emissions, including
high-efficiency, low-emissions coal-fueled generation (HELE) and Carbon Capture andStorage (CCS). We believe that the investments and partnerships we make today will
shape the energy economy of the future and improve these technologies.
We support research and key initiatives in low-emissions projects and partnerships
such as Low Emission Technology Australia (LETA), Carbon Capture Coalition, Carbon
Utilization Research Council (CURC), the University of Wyoming School of Energy
Resources (SER), and the Consortium for Clean Coal Utilization at Washington
University in St. Louis.

We acknowledge that Peabody has a responsibility to reduce our
GHG emissions to fulfill our company ambition of achieving net-zeroemissions by 2050.

2023 Environmental, Social, and Governance Report

R3 Renewables Update
Peabody, with a 50 percent join
venture ownership interest, formed
RECLAIM REIMAGINE REPOWER
R3 Renewables in 2022. R3, arenewable energy development company, is advancing the developmentof utility-scale solar and battery storage projects. The joint venture brings
together collaborative strengths of partners in renewable energy project
development, environmental management, extensive land holdings,
permitting, and capital markets.

renewables

R3 Renewables is currently engaged in the potential development of over
3 GW of solar PV projects with battery storage on or near active coal mining
operations. The portfolio size and strategic site locations, each of which
is near grid injection points, offer the potential for the development of thelargest solar and battery storage projects in both Indiana and Illinois.

14

Our Commitments & Progress
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Develop Targets
for Success

Enhance our Data to
Guide our Strategy

Develop and Deploy
our Project Pipeline• Create value for our stakeholders• Improve data collection and data

• Leverage our existing assets andthrough a net reduction of
our emissions;• Set incremental, measurable, andachievable targets to meet our goals;• Achieve 15 percent net reductionin Scope 1 and 2 GHG emissions
by 2026.

2023 Environmental, Social, and Governance Reportmanagement programs;• Understand the unique opportunities
for reductions at our facilities.

new technology;• Invest in projects that support ourbusiness goals and ambitions.

Our Progress• Evaluating site-based emission
reduction projects for deployment;• Improving data collection andregular tracking mechanisms foremissions data;• Developing a project pipeline toaddress near, mid, and long-term
investments in technology andinnovation that support a net-zeroemissions economy.

15

Environmental Management
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL

Mining is more than just extraction. Our environmental approach addresses the full mining lifecycle, from exploration
through mining, processing, closure, and release responsibilities. The Peabody Health, Safety, Environment &Communities Policy and our environmental standards drive the sustainable use and protection of natural resources
while minimizing operation risk.
Establishing a risk-based framework, our Management System is the basis for continuous improvement in health,safety, and environmental stewardship. This includes:

Peabody Environmental
Standards• Cultural Heritage, Closure Planningand Reclamation

GOVERNANCE• Our commitment to comply with all applicable environmental standards;• Water Management

APPENDIX• Appropriate training to ensure all employees and vendors are equipped and knowledgeable to comply with all
regulations and our programs;• Coal Waste and Water Containment• Regular review of risk and opportunities, including aspects that could impact the environment;• Non-coal Waste Management• Regular monitoring and auditing to ensure program alignment;• Spill Prevention and Response• Air Quality Management• Corrective action plans that address opportunities for improvement.

The Details
Our policies and practices are aligned with the International Finance Corporations’ (IFC) Performance Standards on
Environmental and Social Sustainability (2012) and are made available to all Peabody employees on the internal
Peabody portal. Our operations are audited to these standards regularly, and the results are a component ofmanagement compensation.
Peabody utilizes industry-leading practices to efficiently use natural resources and minimize our environmental
impact. This strategy includes a focus on reducing greenhouse gas intensity, conserving water, advancing recycling
and waste management programs, and applying progressive land reclamation to lessen surface disturbance.
At our sites, our goal is to maximize resource recovery while conserving energy. This reduces costs and minimizes ourenvironmental footprint through lower emissions.
We commit to abide by all applicable environmental regulations in the jurisdictions in which we operate. In addition,
we are committed to progressively restoring, monitoring, and maintaining areas disturbed by mining to help ensurethat post-mine land use, landform, and environmental outcomes are achieved.

2023 Environmental, Social, and Governance Report16Land & Bond Release
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE

In the U.S. and Australia, Peabody provides third-party bonding (in excess of U.S. GAAP reclamation liabilities) to provide appropriate
assurances that reclamation will occur. At both active and closed mines, bonds are released incrementally when success criteria aremet. In the U.S., Peabody had approximately 3,000 acres approved for final phase bond release at the end of 2022, which resulted in
the release of $2.7 million in bonding obligations. This achievement, along with earlier stage bond release in preparation for future,
final bond releases, resulted in a $12.5 million reduction in bonding obligations in the U.S.
In addition to funding every dollar of our coal mine restoration, Peabody pays tens of millions of dollars each year to the Abandoned
Mine Land (AML) Reclamation Program for the reclamation of lands mined before the U.S. Surface Mining and Control Reclamation
Act of 1977 that have been abandoned by their operators. Peabody recognized $22.2 million in expenses related to AML fees in 2022.

Since 2017,
Peabody hasreceived final bondrelease for over
35,000 acres.

APPENDIX

2022 Big Sky Final Permit ReleaseIn 2022, Peabody received approval forthe final bond release at its Big Sky Minenear Colstrip, Montana. This is the firstcoal mine in Montana to meet or exceed
all permit and regulatory requirements
and achieve final bond release for all
impacted acreage, approximately 3,000
acres in total.
The reclamation is comprised primarilyof grazing land complemented
by permanent water and wildlife
features. Lakes, streams, wetlands,
and highwall features that mimic thenative outcropping rock add to the sites’
beauty and value for ranching andwildlife. The final release occurred after

2023 Environmental, Social, and Governance Reporta wildfire burned all the vegetation in
the summer of 2021. The rapid recovery
further demonstrates the resiliency andsustainability of the reclaimed land at Big
Sky and Peabody’s reclamation expertisein the U.S. and Australia.
Big Sky was recognized numerous
times by state and federal regulators,
including most recently in 2018 witha National Reclamation Award fromthe Department of Interior Office ofSurface Mining. The mine also received
the prestigious Director’s Award from
OSM in 2011 for the exemplary use of
geomorphic reclamation techniques andnative vegetation.

17

Land Restoration & Biodiversity
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody is committed to progressively restoring areas disturbed by mining to ensure
positive post-mine land use, landform, and environmental outcomes. Our approachto contemporaneous reclamation benefits both operations and the environment byminimizing our footprint and efficiently restoring the land as we mine at the lowest cost.
Before any mining activity begins, we complete comprehensive baseline studies. We
look at local ecosystems, geology, surface water, groundwater, land uses, and otherrelevant resources to support detailed assessments. These inform our mine plans andmitigation measures to reduce potential impacts from our operations.
Over the past five years, Peabody has restored one acre of mined land for every acre
disturbed, including restoring approximately 2,300 acres of land in 2022. These lands
will now serve as wildlife habitat, rangeland, forests, prime farmland, grazing land, andwetlands. Reclaimed lands may also be utilized for renewable energy development
projects such as the ongoing work of the R3 Renewables joint venture.
Successful land restoration is a recurring metric within Peabody’s executive
compensation program, as well, with the goal of reclaiming as much or more land than
we disturb on an annual basis. Peabody facilities have consistently garnered awards
for the quality and diversity of restoration activities. Our industry-leading reclamation
strategy is key to maintaining our social license to operate while restoring mined land
for further opportunities in the communities we serve.

Burton Reclamation
Final rehabilitation of the Burton Mine in Queensland, Australia has
progressed since 2018 and is slated for completion in early 2024. Mining
at the operation began in 1995 and ceased in 2016, when the facility wasplaced in care and maintenance. The remaining facility held by Peabody iscomprised of four surface pits and associated disturbance that will be fully
rehabilitated to fulfill all regulatory and land use requirements. During 2023
and 2024, Peabody will prepare for the partial relinquishment of mining lease
and rehabilitated areas, returning the land back to the underlying landowners
for sustainable cattle grazing activities.

2023 Environmental, Social, and Governance Report18

Air Emissions & Energy Use
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Extracting fuel to generate energy
requires energy. At Peabody, we are
striving to do so in a manner that
reduces our greenhouse gas emissions
and intensity. Consistent with ourapproach to responsible environmental
management, Peabody intends toleverage strategic opportunities toincrease the use of renewable energy
within our operations.
Currently, renewable energy comprises
4 percent of our total annual energy
usage. Since 2019, Peabody has
increased renewable energy usagein electricity consumed by almost 37
percent, with nearly 26 percent of our
total electricity usage coming fromrenewable energy sources as windand solar energy become a larger
component of the grid within the regions
we operate.

CO2e Emission Intensity (lb CO -e/unit)
2

16.0

2018

15.0

2019

2020

14.0

2021

14.1

14.7

2022

Shoal Creek
Flaring
Peabody has begun methane
flaring at several locations
throughout its U.S. andAustralia operations, including
the Shoal Creek Mine in
Oakman, Alabama. Methanefrom the mine is captured,rather than vented, anddestroyed. Processes such as
flaring, methane capture forheat and power generation,and renewable energy
developments are potential
opportunities for Scope 1 and 2
emission reductions.

Our first incremental
target is to reduce our Scope 1
and Scope 2 GHG emissions by15%
by 2026 from our2018 base.

2023 Environmental, Social, and Governance Report19Air Emissions & Energy Use CONTINUEDINTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody’s Scope 1 direct emissions include consumed diesel fuel and fugitive
emissions from our operations, and our Scope 2 emissions relate to the consumptionof purchased electricity. In 2022, our emission intensity increased by 4 percent from2021, while overall emissions decreased slightly.
Peabody’s Scope 1 and 2 emissions have decreased by over 20 percent since 2019,and over 35 percent overall since 2018, resulting from GHG emissions reduction
efforts and the impact of lower production volumes. As we are projecting higher
future production volumes based on increased customer demand, a persistentfocus will remain on identifying and implementing site-based strategies to reduce
our Scope 1 and 2 emissions and emission intensity, achieve our 2026 target, andestablish further measurable, actionable targets in the future.
Peabody is taking direct actions to reduce emissions from our mining operations
and is assessing each facility’s emission profile for emission reductions and facility
optimization. Peabody has also developed a project pipeline to identify further
opportunities for investment in the development and adoption of low emissions
technologies that will be critical for the world to reach its climate goals.

Scope 1 and 2 Emissions 2018–2022
8,798,149

2018

9,581,117

782,969
7,366,914

2019

8,098,717

731,8036,107,970

2020

6,691,843

583,8722021

5,632,964

6,200,634

5,562,046

6,128,223

567,6702022
566,176
Scope 1 tonnes CO2e

Scope 2 tonnes CO2e2022 Scope 1 and 2 Emissions
Australia

1,672,951

1,859,339

186,3883,889,095

U.S.

4,268,884

379,788
5,562,046

Total

6,128,223

566,176
Scope 1 tonnes CO2e2023 Environmental, Social, and Governance Report

Scope 2 tonnes CO2e20

Water Use & Management
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIXAt Peabody, we strive to conserve water through reuse and recycling to minimize our
impact while driving a culture of continuous improvement at our operations.
As a component of the risk management framework, each of our mines aligns its water
management strategy with the specific challenges of its region and regularly monitors
performance. Our operations in more arid environments focus on conservation, whilemines in humid climates routinely manage surplus water from storms or groundwater
to help mitigate flood risk. In Australia, our operations must manage excess water
during wet cycles and plan for water shortages during dry cycles. All management
and use of water at Peabody mines follow the regulatory frameworks specific to thecountries and regions where they are located.
In 2022, Peabody withdrew 30 million cubic meters of fresh water across its global
operations, primarily for use in dust control and coal processing at preparation
plants. In some regions, a significant portion of this water may result from managing
stormwater on the mine property and dewatering extraction areas in surface andunderground facilities. Water is also used for exploration, coal extraction, and land
reclamation activities, with minor amounts used for mine location drinking water,
showers, and equipment maintenance. Water sources for Peabody mines include
surface water, such as precipitation and runoff, rivers and lakes, ground water, andmunicipal or purchased water. Twenty five percent of the total water withdrawn wasrecycled in 2022.

Health, Safety, and Environmental
Innovation Awards
Each year, Peabody’s Health, Safety, and Environmental Innovation Awards
recognize employees across the organization for solutions that help make ouroperations safer and environmentally friendly. This annual tradition highlights
Peabody employees at their finest, encourages creative innovations, andreinforces the values on which we operate, particularly safety and excellence.
In 2022, a team at the Wilpinjong Mine was among the winners fordeveloping a system that automates returning compliant surface waterfrom above mine operations to the natural water system. This new system
continuously monitors water quality data. By automating what waspreviously a manual pumping process, the team increased daily water returns
by 300 percent.

2023 Environmental, Social, and Governance Report21

WasteINTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody strives to reduce waste. To align with our risk-based approachto environmental management, we employ waste management
practices that minimize waste, especially potentially hazardous waste,
and maximize recycling and reuse opportunities before proper disposal.
As part of our waste minimization and management program, weestablished a review and approval process for hazardous materials
and utilize less hazardous alternatives where possible. We are not asignificant generator of hazardous waste.
When possible, our preferred approach is to utilize mineral waste as
backfill in subsurface pits onsite. Waste that cannot be used as backfill
is stored in earthen fills or impoundments that are constructed tocomply with industry-best practices and strict regulatory performance
criteria set in both the U.S. and Australia. Our impoundments contain amix of coarse refuse and fine coal waste materials, which together havea relatively lower flowability compared to highly-ground, finer materials
typically found in non-coal tailings dams.
Peabody currently maintains five active, above-ground coal waste
impoundments, three of which are of upstream construction. We also
have additional impoundments in various stages of the reclamation
process. Two of the active impoundments are located in the U.S., withthe remaining three located in Australia. In the U.S., all coal waste
impoundments are classified into three MSHA hazard categories: low,
significant, and high; in Australia there are five dam failure consequenceclassifications: low, significant, high, very high, and extreme. The
hazard potential of the two active U.S. slurry impoundments is ‘low’.
In Australia, the three active impoundments have a ‘significant’ dam
failure consequence classification.

Peabody Partners with MillerKnoll’s rePurpose
Program for Office Renovation
As part of current
renovations at the
Corporate Office in
St. Louis, Peabody has
partnered with theMillerKnoll rePurpose
Program, an industryleading resource formanaging surplus officefurniture, supplies,
and equipment. These
items are diverted
from the landfill andrepurposed for use in
the community.

Mineral and Non-Mineral Waste Generation
2022 Mineral Waste

15,901,226 tons
2022 Non-Mineral Waste

26,731 tons
2023 Environmental, Social, and Governance Report22INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

SocialIN THIS SECTION
Human Rights...................................................24

Employee Engagement & Satisfaction .31

Labor....................................................................25

Diversity & Inclusion ......................................32

Human Capital.................................................26

Health & Safety................................................34

Compensation & Benefits ...........................27

Community Involvement..............................37

Recruitment.......................................................29

Supply Chain Management........................39

Retention............................................................30

2023 Environmental, Social, and Governance Report23

Human Rights
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody provides affordable and reliable energy to communities around the world,
but the company’s responsibility to the people and communities it serves does not
end with the delivery of that energy. As leaders in the mining industry and business
community, we understand that a commitment to human rights goes hand in hand withits dedication to customers, stakeholders, and the environment.
Peabody strives to act ethically and with integrity in all business and relationships. The
company expects all external partners, including its supply chains, to adhere to thesesame principles. We have effective controls and training in place to ensure modern
slavery is not taking place anywhere in our own business or any of our supply chains.

Peabody encourages and informs employees and other stakeholders about their ability
and obligation to report concerns of misconduct, including human rights violations,through a strong program of workplace communications and online training tools. Ourboard of directors has established procedures for receiving and investigating reported
violations, including a confidential hotline, which is available to both internal employees
and external contractors and vendors.
Retaliation in any form against an individual who exercises their right to make acomplaint in good faith is strictly forbidden.

Peabody Statement on
Human Rights

Anti-Slavery
PolicyVendor Codeof Conduct

The Peabody Statement on Human Rights outlines
our commitment to creating a safe and healthy work
environment where all employees are treated with
fairness and respect. Our policies and practices
concerning human rights apply to all employees,
visitors, and contractors within our global operations.
These standards are supported by Peabody’s Codeof Business Conduct and Ethics and our Vendor
Code of Conduct and are aligned with the Universal
Declaration of Human Rights.

Our Anti-Slavery Policy includes specific prohibitions
against the use of forced, compulsory, or traffickedlabor. It also prohibits holding anyone in slavery,
servitude, or debt bondage, including adults orchildren. This policy is part of our contracting
processes and complies with Australia’s Modern
Slavery Act and other laws and regulations. Our
employees receive training about this and otherrelated topics annually and we expect that our
suppliers will hold their own suppliers to the samehigh standards.

The Vendor Code of Conduct outlines key areas ofprinciples and standards Peabody expects of its
business partners, including standards related tohealth and safety; environmental stewardship; andlabor, human rights and employment. With regards
to human rights, Peabody’s vendors, at a minimum,
comply with all applicable laws, regulations, andstandards, including without limitation acting inaccordance with the International Bill of Human
Rights, United Nations Guiding Principles on
Business and Human Rights, and the International
Labor Organization Declaration on Fundamental
Principles and Rights at Work, as well as theAustralian Modern Slavery Act.

2023 Environmental, Social, and Governance Report

24Labor
As a global employer, Peabody reiterates our belief that
Equal Opportunity Employment is good business andmaximizes our ability to attract and retain a qualified,diverse, and high-performance workforce.

INTRODUCTION
OUR BUSINESSENVIRONMENTAL

As stated in our Code of Business Conduct andEthics, we are committed to complying with all Equal
Employment Opportunity laws. Our own Equal
Opportunity Policy Statement requires recruiting, hiring,placing, promoting, training, compensating, transferring,and terminating employees based on job-related
qualifications and performance without regard to race,color, religion, national origin, sex, sexual orientation,
gender identity or expression, age (as defined by law),disability (unrelated to performance of essential tasks ofthe position), or veteran status.

SOCIAL
GOVERNANCE
APPENDIX

We are committed to complying with all applicable laborlaws and support the protections afforded under suchlaws and related election processes. With approximately
34 percent of our global hourly workforce represented
by organized labor unions currently, Peabody adheres tothe principle that workers have the right to freely choose
to form or join trade unions and bargain collectively.

2023 Environmental, Social, and Governance Report25

Human Capital
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

People are at the core of Peabody’s ability to deliver
business results and serve our communities. Our
Employee Value Proposition’s primary focus ensuresthat employees’ abilities, motivations, and opportunities
contribute to organizational performance.
Peabody offers an inclusive work environment thatengages, recognizes, and develops it employees. The
company strives to create a safe and healthy work
culture where all employees are treated with fairness
and respect and are supported and engaged.
Human capital management oversight is the
responsibility of the Chief Administrative Officer who is
supported by a team with responsibility for health andwellness, compensation, benefits, recruitment, retention,
diversity and inclusion, and human rights, with oversightprovided by the Board of Directors and the Board’sCompensation Committee.
Peabody provides a safe working environment by
providing regular anti-bullying, harassment, anddiscrimination training to employees. Peabody
has in place a confidential third-party complianceline called “Tell Peabody” for employees to reportconcerns anonymously.

2023 Environmental, Social, and Governance Report26Compensation & Benefits
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIXTo attract and retain the best and most qualified employees, Peabody offers agenerous compensation program. Peabody uses competitive market information fromboth compensation surveys and peer reviews to inform compensation decisions. The
program is designed to balance the goals of attracting, motivating, rewarding, andretaining employees.
Employees are rewarded through a variety of programs, including competitive salaries,
benefits packages, and results-based incentives. The company also offers savings andretirement benefits, including a 401K match, and paid time off.
Peabody recognizes the importance of work/life balance and strives to provide
employees flexibility to manage their work and personal demands. Opportunities
include part-time employment, modified work schedules, redistributed work hours, andtelecommuting. Availability is dependent on location and operational role.
Peabody’s emphasis on healthy living is a natural complement to our safety culture. We
provide employees with healthcare benefits that are competitive within the industry.

2023 Environmental, Social, and Governance Report27Compensation & Benefits CONTINUEDINTRODUCTION

BENEFIT

U.S.

AUSTRALIAOUR BUSINESS

Healthcare

Medical plan that can be paired with a health savings account toengage employees in their own health and wellness decisions.
Advocacy services and tools to help employees navigate healthcare
choices and become educated healthcare consumers. Telemedicine
services for employees enrolled in our medical plans.

Universal healthcare coverage is supplemented by Peabody’s“whole approach” renumeration package.

Parental Leave

Six weeks of paid parental leave at 100 percent base pay as theprimary caregiver or two weeks of paid parental leave at 100
percent base pay as the secondary caregiver, after the birth or
adoption of a child.

National Paid Parental Leave program, and Peabody offers a moregenerous benefit of 18 weeks of paid parental leave at 100 percent
base pay as the primary caregiver or two weeks of paid parental leaveat 100 percent base pay as the secondary caregiver of a newborn or
recently adopted child.

ENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Employee Assistance
Globally, Peabody provides a variety of health and wellness programs, including
annual preventive care incentives, on-site flu vaccinations, fitness center
reimbursements, mammography screenings, back and joint pain programs,
diabetes prevention programs, tobacco cessation coaching, weight loss support,
nutritional counseling, and a wide variety of tools for other life management issues
through our Employee Assistance Program.

2023 Environmental, Social, and Governance Report

Peabody’s company-sponsored Employee Assistance Program is available toall employees and their immediate families. The services are provided by anindependent service provider with a network of accredited counselors offering
support on a variety of issues including mental health, relationships, wellbeing,stress, and personal finances.

28

Recruitment
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Having the best and brightest, but also the right person in the right role is essential
to any business. At Peabody, our recruitment efforts strive to achieve this. We ensure
our candidate attraction strategies cover a broad range of communication channels,
tools, and processes. We work to encourage internal candidates and attract external
candidates. We also appeal to active candidates and passive candidates (those notactively looking for employment opportunities) to generate a qualified candidate poolthat is also diverse and representative of the broader population in the areas in which
we operate.

The Details
Competency-based interview guides tailored to each position are developed by the
HR team and address both the technical and behavioral competencies required tosuccessfully fill the position. When complete, they provide an objective assessment of acandidate’s technical and behavioral fit.

Student and Graduate Opportunities

Interviews are undertaken in a panel format and include interviewers that canaccurately assess a candidate’s technical, behavioral, and cultural fit. This helps ensure
consistency and allows for objective hiring decisions.

The Australian Graduate and U.S. Scholarship programs are two initiatives
Peabody utilizes to attract young professionals to the industry and
to Peabody.

Because the recruitment and interview process forms much of a prospective
candidate’s perception of an organization, Peabody seeks to demonstrate ourvalues throughout this process. First impressions of the organization’s demographic
composition are significant and the visible diversity of a workforce, as evidenced by theinterview panel, is believed to make the organization more attractive to women andcandidates from underrepresented groups.

Peabody offers recent university graduates the opportunity to develop as
mining industry professionals through a two-year graduate program within
the Australian operations.

Our applicant tracking system is configured so that candidates are able, andencouraged, to self-identify as a member of various groups during and after theapplication process.

2023 Environmental, Social, and Governance Report

These new hires will work across different sites and technical roles
throughout the program to guide their professional development and support
our operations and efforts to attract, train, and retain talented professionals.
Peabody makes a financial contribution to university and technicalstudents in the U.S. These students must accept vacation employment with
Peabody during studies and work for Peabody for a period of 24 months
after graduation.

29

Retention
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

As part of a commitment to invest
in and develop our employees,
Peabody has a well-rounded
employee retention strategy. The
plan focuses on the following areas:• Creating a workplace culture
where people want to work;• Improving the quality of
our leaders through our
Supervisor and Manager
development programs;• Providing ongoing learningand development opportunities
for employees;• Providing market-appropriatecompensation and benefits; and• Providing additional
financial incentives.
Peabody teams operate in anenvironment that is inclusive,
collaborative, and engaging. Our
people work together and support
each other to achieve businessoutcomes and a sense of pride ina job well done. Two-way open
and transparent communication
with leadership is encouraged andfosters an environment of trust andrespect. Peabody offers a variety

of development opportunities
to learn, grow, and advance,
including experience-basedlearning; supervisor, manager, andleadership development programs;
and mentoring and on-thejob training.

The Details
Our employees are encouraged
to reach their full potential andadvance their careers. The
Training Room is a virtual platform
accessible 24/7 and is powered by
the world’s largest marketplace oflearning content. This employeedriven platform was created toensure that our employees, leaders,
and teams have the resources todevelop, maintain, and grow theirskills and capabilities. It offers avariety of courses for employee
growth, ranging from Mental Health
Awareness and Leading Inclusivity
to more technical subjects such as
Microsoft Office.
Peabody has a comprehensive
Performance and Development
Review process. The processprovides the opportunity for two-

2023 Environmental, Social, and Governance Report

way communication between
employees and managers to
discuss performance goals,
performance achievements,
individual development plans, andcareer aspirations.
Peabody also has a mentoring
program for identified high potential
employees and for selected
employees identified via our
inclusion and diversity initiatives.
Selected mentors are assigned
mentees for an initial six-month
period. Peabody also supports
informal mentorship arrangements
between senior managers
and employees.
Almost all vacant roles areadvertised internally so employees
can express interest in new and/or promotional opportunities.
Peabody has a formal succession
planning process in place tocreate advancement opportunities
for high-potential employees
and to ensure adequate skills toperform critical roles in case of
employee turnover.

Leadership Development
In 2022, Peabody launched a new leadershipdevelopment training program. Over 90
supervisors and front-line leaders in our mines
have completed the training, with over 200
expected to participate in 2023. The training
has been developed to equip our supervisors
to be great managers as well as technicalspecialists in their work areas.
Course topics include:• The Peabody Leadership Model• The Role of a Supervisor• Personality/Style Assessment and Review• Active Listening & Feedback• Managing Difficult Conversations• Building Effective Teams• Safety Leadership• Team Member to Team Leader• Finance Overview• Leading Generational Differences• Conflict Resolution
New in 2023, an executive leadershipprogram will provide valuable training andmentorship for employees within Peabodythat are currently in a Director-level or higher
position to grow and develop into future
executive leaders.

30Employee Engagement & Satisfaction
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

The Peabody mission statement
reflects our values—safety,
customer focus, leadership,people, excellence, integrity, andsustainability—and we work
to ensure that our employees
live by those values each day.
Peabody deploys a full employee
engagement survey every three
years, with pulse surveys twice
yearly in the interim, with topics
addressing Trust and Confidence,
Work/Life Balance, Job Security,
and Development and Career
Advancement to assess employee
engagement and work culture.
Results are aggregated andshared with employees, andthese results feed directly into
our Employee Value Proposition
improvement plans. Results arealso presented to Peabody’s
executive team, and various
actions and interventions are
implemented to address concerns.
An online progress report related
to these actions and interventions
is regularly updated and shared
and with the organization to track
our progress.

2023 Environmental, Social, and Governance Report

An Update from the Chief Administrative Officer
At Peabody, we believe the best
way to manage risk of any kind iswith a plan, clear communication,
and active management. Our
industry, like many, is currently
facing a labor shortage thatposes a risk to our ability tooperate effectively and meet our customers’ needs.
As part of our approach to mitigating this risk andcontinuing to improve our corporate culture, we haveidentified four focus areas based on key feedback fromthe 2021 Employee Value Proposition (EVP) survey:• Trust, Confidence & Open Communication• Work/Life Balance & Flexibility• Stable Organization• Development & Career Advancement
Throughout 2022 and into 2023, these focus areas
have driven the implementation of programs andinitiatives, including:• A review for every salaried role within the company toensure that employee compensation is competitive withmarket pay for the role;• Increased use down into the organization of Individual
Development Plans as part of the Performance andDevelopment Review process;• Enhanced delivery of learning and development
opportunities for employees at all levels of the organization,with a focus on front-line leaders in our operations;• A Peabody-wide employee recognition scheme to provide
employees and leaders an opportunity to formallyrecognize co-workers for extra or exceptional work efforts;• Revised employee service awards to better reward
employee loyalty;• Enhanced medical coverage options for U.S. employees;• Partnering with WhereFit to encourage employees to get
active and healthy through exercise and wellness;• Strengthening our Employee Referral Program (ERP)
program for employees referring candidates ending up inpermanent placement.
We believe these efforts have helped mitigate the staffing
risks facing the industry, thereby strengthening our financial
position. And we believe that programs to cultivate leadershipdevelopment and to enhance our recruitment of workers
currently underrepresented in our workforce will help further
mitigate this risk, positioning us to operate into the future as
the coal provider of choice.
Scott Jarboe
CAO
Peabody

31

Diversity & Inclusion
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

We continue to build a workforce thatis comprised of diverse backgrounds,
perspectives, and experiences.
Our policies and practices support
diversity of thought, perspective, sexual
orientation, gender, gender identity andexpression, race, ethnicity, culture, andprofessional experience, among others.
The company’s inclusion programs areformalized in policy and practice andare embedded in our Equal Employment
Opportunity policy and our Code ofBusiness Conduct and Ethics.

The Details
Our employees have the right toreport issues in a safe and anonymous
manner when necessary, through ourthird-party managed “Tell Peabody”
reporting platform. Peabody also has
an established process for employees
to raise concerns with legal protection.
Furthermore, Peabody is committed tocontinuing our journey towards greaterawareness and actions in support ofworkforce diversity.
Peabody actively supports inclusion anddiversity initiatives, including delivering
inclusive leader and unconscious bias

2023 Environmental, Social, and Governance Reporteducation to enable the workforce tobegin recognizing, acknowledging,and minimizing potential blind spots ininteractions with others, while managing
more effectively in today’s workplace.
Our global workforce is comprised ofapproximately 11 percent women,with 13 percent of Director level orhigher positions occupied by women,in addition to the two women on our
Board of Directors. Within Peabody
Investment Corp, which is centralized in
our St. Louis Office, Peabody achieved
an overall female placement rate of 39
percent in open positions in 2022 andmet the target placement rate for women
within senior management and middle
management under the Affirmative
Action Program goals established by the
Office of Federal Contract Compliance
Programs. Peabody also achieved an
overall minority placement rate of 21
percent in open positions in 2022, andexceeded the target placement rate forminorities within middle management.
As part of Peabody’s ongoing efforts
to better understand the demographics
of our workforce and the communities
in which we operate, Peabody collects
data related to employee demographics

within each of our U.S. Operations.
This data, with consideration of stateand local workforce demographics, caninform our strategy as we implement
specific programs and identify
opportunities to improve the diversityof our workforce. Depending on theregion of operation, these initiatives
include outreach to organizations
supporting underrepresented ethnic
groups, recruitment of military veterans,
partnership with workforce development
agencies, and collaboration withorganizations promoting women in
leadership. By understanding thecomposition of the communities, weserve, Peabody is better positioned to
attract a robust and diverse workforce tolead our organization into the future.
An initiative is currently underway toimplement a data collection system
for Peabody’s Australian operations.
This project is slated for completion in
2023. At that time, we will be able toprovide further information regarding thediversity of the Australian workforce andfurther analysis of our global workforce
by the end of 2023, published in the2024 ESG report.

Workplace
Diversity
Newsweek’s 2023 Greatest
Workplaces for Diversity
list named Peabody among
the top tier of workplaces
for creating a diverse andwelcoming workplacenationwide. The company
received five stars, the highest
rating available.
The list includes the top 1,000
companies that employees
say value and respectdifferent kinds of people. The
results are based on publicly
available data, interviews
with HR professionals, and an
anonymous online survey ofa diverse pool of employees
at companies with 1,000 or
more employees in the U.S.,
Newsweek said. Those who
took the survey were asked
about corporate culture, work
environment, and other topics.
More than 350,000 companies
received reviews.

32Diversity & Inclusion CONTINUEDINTRODUCTION

Peabody U.S. Employee Demographics vs. State Census Demographics

OUR BUSINESSWhiteBlack orAfrican American

Hispanic or
LatinoAsian

Hawaiian orPacific Islander

Native American

Two or More Races

Peabody Alabama Operations

82.9%

13.8%

0.7%

0.0%

0.2%

0.9%

0.7%

Alabama Census

64.9%

26.8%

4.8%

1.6%

0.1%

0.7%

1.9%

Peabody Arizona Operations

10.8%

0.0%

0.0%

0.0%

0.0%

89.2%

0.0%

Arizona Census

53.2%

5.4%

32.3%

3.8%

0.3%

5.3%

3.1%

Peabody Colorado Operations

83.3%

0.0%

9.7%

0.0%

0.0%

2.7%

2.7%

Colorado Census

67.0%

4.7%

22.3%

3.6%

0.2%

1.7%

3.3%

Peabody Illinois Operations

90.2%

4.4%

1.3%

0.4%

0.4%

1.3%

0.9%

Illinois Census

60.0%

14.7%

18.0%

6.1%

0.1%

0.6%

2.2%

Peabody Indiana Operations

97.1%

0.6%

0.6%

0.1%

0.0%

0.3%

0.5%

Indiana Census

77.5%

10.2%

7.7%

2.7%

0.1%

0.4%

2.3%

Peabody Missouri Operations

79.1%

8.4%

2.6%

8.4%

0.0%

0.5%

0.5%

Missouri Census

78.7%

11.8%

4.7%

2.2%

0.2%

0.6%

2.6%

Peabody New Mexico Operations

37.9%

0.0%

46.3%

0.4%

0.0%

14.2%

0.4%

New Mexico Census

35.9%

2.7%

50.1%

1.9%

0.2%

11.2%

2.7%

Peabody Wyoming Operations

91.9%

0.4%

4.7%

0.1%

0.1%

1.8%

0.4%

Wyoming Census

83.3%

1.2%

10.6%

1.1%

0.1%

2.8%

2.4%

ENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

U.S. Census data www.census.gov

2023 Environmental, Social, and Governance Report33

Health & Safety
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIXAt Peabody, safety is a way of life, our first value, and leading measure of excellence.
It is integrated into all areas of our business and at the core of our strong, united
workforce. We approach safety as a process and a passion, supporting our goal of anincident-free workplace through a culture of innovation, accountability, and continuous
improvement at all levels of the organization.
Peabody’s health and safety efforts are led by the executive leadership team, withoversight by the board’s Health, Safety, Security and Environmental Committee (the“HSSE Committee”). Health and safety are core to the Peabody mission, and the successof the company’s efforts in these areas depends on the daily decisions and actions ofeach Peabody employee.

In its oversight role for Peabody’s health and safety efforts, the HSSE
Committee’s key responsibilities include:• Reviewing with management the significant risks or exposures faced by
the company in the health, safety, security, environmental, and cultural
heritage areas;• Reviewing the company’s health, safety, security, environmental, andcultural heritage objectives, policies, and performance, including processes
to ensure compliance with applicable laws and regulations;• Reviewing the company’s efforts to advance progress on
sustainable development.

2023 Environmental, Social, and Governance Report34

Health & Safety CONTINUEDINTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Safety Management
Systems
Our vision is to operate safe, healthy, andenvironmentally responsible workplaces thatare incident free. Safety and health are core
Peabody values and are integrated into allareas of our business. Our goal is to eliminate
all workplace incidents, including injuries andoccupational illnesses, by identifying risks
and systematically developing processes tomitigate or eliminate exposure.
Peabody’s Safety and Sustainability
Management System is a risk-based approachthat is the basis for continuous improvement inhealth, safety, and environmental stewardship.
Our Safety and Sustainability Management
System is independently certified under
the U.S. National Mining Association’s
CORESafety® framework and sets clear
expectations for work activity at operations
and the management principles that support
a culture of participation and accountability
among employees, contractors, visitors, andvendors at our sites.

As part of our system, key elements that support oursafety and sustainability performance have been
established, including the following:• Identification of key risks within each operation• Front-line risk assessment to identify and effectively
manage hazards during work activities

Reportable Injury
Frequency Rate
Employees

Contractors

1.15

1.08

• Leadership field verification that provides a forum forobservation, coaching, and feedback with a focus on thehighest risk activities

Total

1.13

• Communication and learning that support continuous
improvement, including:∙ Safety briefings, risk reviews, and hazard training before
entering mines∙ Incident investigation, findings review and best practice

Lost Time Injury
Frequency Ratesharing when an incident or close call occurs∙ Established roles and responsibilities for management

Employees

0.65∙ Clear expectations that contractors will align with

Contractors

0.65

Total

0.65

and employees

company safety practices and expectations∙ Regular audits of our practices and procedures toimprove the system, including annual internal audits andan external audit every three years∙ Incentives linked to operational safety and audit
performance through compensation metrics

2023 Environmental, Social, and Governance Report35

Health & Safety CONTINUEDINTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody offers employees Health and Safety training and development opportunities throughout the year to improve
technical knowledge, foster skill development, and cultivate risk awareness. As part of the onboarding process,operations personnel receive Health, Safety, and Environmental training that meet internal standards and external
regulatory requirements prior to working onsite. Current Peabody employees in operations participated in over
160,000 hours of Health and Safety training in 2022.
Over the past year, Peabody achieved improvements in our total reportable injury rate, reportable injury rate for
employees, and reportable injury rate for contractors. In 2022, we had our lowest annual global injury rate ever andthree of our mines reported zero incidents. Our total reportable injury rate decreased by 4 percent.
Along with these achievements, Peabody also mourned the loss of a contract employee who lost their life at the
El Segundo operation in August 2022. This tragedy would be compounded if we did not learn from this incident andincorporate our learning into creating a safer work environment for all of our employees, contractors, and visitors. We
continue to drive proactive safety efforts and reinforce the good actions of our people, always striving for zero injuries.

Sentinels of Safety Awards
In 2022, two Peabody mines were presented with theSentinels of Safety Award by the National Mining Association
to honor their safety performance in 2021. The award
recognizes those mines that record the most hours ina calendar year without a single lost-time injury and aminimum of 4,000 hours worked.
Twentymile Mine was recognized in the large undergroundmine category and Shoal Creek Mine received recognition in
the small preparation plant category.
These awards are the United States’ most prestigious
recognition of mine safety, and only six coal mines received
the award in 2022, nationally.

2023 Environmental, Social, and Governance Report

Wambo and Metropolitan
Mine Rescue Teams
Mine rescue teams from the Wamboand Metropolitan Mines in our Australian
operations took top honors in the 2022
Hunter Valley and Southern Region Mines
Rescue competitions.
These competitions test teams’ emergency
preparedness capabilities, teamwork andcommunication skills in a series of highpressure exercises designed to simulate
real-life emergencies that could occur inunderground mining operations. These
scenarios include underground search andrescue, monitoring of volatile mine conditions,managing confined space hazards, firefighting
and first aid.
The Wambo team has performed well
historically in the Hunter Valley competition,
placing first in nine out of the last ten yearsof the competition. The Metropolitan teamachieved their first ever win in the history of
the Southern Region competition in 2022.
Both teams proudly represented their regionsin the 2022 Australian Mine Safety Titles
in Wollongong.

36Community Involvement
INTRODUCTION

Supporting Indigenous Communities

OUR BUSINESS

Peabody forges strong and respectful relationships with indigenous people wherever
we operate based upon comprehensive engagement and communication frameworks
established throughout the mining process.

ENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Our process for managing cultural heritage sites begins with the identification of the
project and areas for disturbance as well as a review of existing laws, ownership andpossible cultural heritage impacts.
This information is then shared with key stakeholders and an assessment of theenvironmental impacts and cultural heritage impacts is conducted. Any areas to be
disturbed must first go through an internal review and approval process. Once mining
has concluded, a post mining survey is conducted.
In the U.S., Peabody is actively completing final reclamation of the Black Mesa/
Kayenta Mine complex in Arizona. We are restoring the land for highly productive use
in line with a comprehensive sustainability plan and ongoing involvement from thelandowners- the Navajo and Hopi Tribes.
In Australia, Peabody’s mining operations are within the unoccupied traditional landsof many indigenous people. We have a strong, ongoing record of consultation withlocal indigenous representatives and Native Title parties based on mutual respect,understanding and value for Aboriginal cultural heritage. Consultation and engagement
processes begin prior to regulatory approval of any mining project and continue
through mining production, land rehabilitation and mine closure.
Peabody is signatory to Native Title and/or Aboriginal Cultural Heritage Agreementswith local indigenous peoples at the company’s four Australian operating mines, and at
non-operating sites.
Through these agreements indigenous people also have key input into the company’s
provision of economic support programs for local indigenous communities, including
employment opportunities and traineeships.

2023 Environmental, Social, and Governance Report

NAIDOC Week Celebration
NAIDOC Week celebrations are held across Australia in the first week of Julyeach year to celebrate and recognize the history, culture and achievementsof Aboriginal and Torres Strait Islander peoples. NAIDOC Week is an
opportunity for all Australians to learn about First Nations cultures andhistories and participate in celebrations of the oldest, continuous living
cultures on earth.
Peabody’s Queensland Burton operation celebrated 2022 NAIDOC Week
with a site visit and morning tea at our Burton mine welcoming Merv Riley,
Vice Chairperson from the Barada Barna Aboriginal Corporation.

37

Community Involvement CONTINUEDINTRODUCTION

Supporting Our Communities

OUR BUSINESS

Peabody values the communities in which we operate.
The company provides employment opportunities,
payroll taxes, coal royalties, and charitable contributions
for the local communities where our employees live
and work.

ENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody also operates a global philanthropic program
to support the people and communities that support us.
The program seeks to improve the lives and livelihoodsof our employees, their families and the communities
where we operate through direct contributions to local
educational, health, sporting and social services.
In 2022, Peabody’s operations and offices provided
financial support to non-profit organizations which
benefit their local communities such as the Riding
for the Disabled Association of New South Wales –Mudgee branch, Helensburgh Tigers Rugby League
Club, Singleton Hall of Fame Awards, the MackaySpecial Children’s Christmas Fund, the St. Louis Crisis
Nursery, the BackStoppers, American Red Cross, Junior
Achievement, United Way, Team of Mercy, Sullivan
Rotary Club, Dugger Coal Museum, Shakamak Softball,Coulterville Police Department, Warrick County Sheriff’s
Office, Make A Wish, Miners Christmas and many more.

2023 Environmental, Social, and Governance Report

Wilpinjong Mine Secures Horse Riding Hub
for Disabled Community
In 2022, the Wilpinjong Mine and Mudgee
Riding for the Disabled Association (RDA)
have partnered to officially open a new Rideability Hub to offer vital services for people
living with a disability. The new, permanent
home for the Mudgee RDA, fully funded by
our Wilpinjong Mine, is a horse-riding Hub
for people with disabilities, including school
children and adults.

Powder River Basin Community OutreachPeabody contributed $50,000 to the Y.E.S.
House Foundation, an organization committed
to the care for young people and their families
in Northeast Wyoming through residential andday programs to address substance abuse
and family instability. Members of the Peabodyteam visited the facility to thank the staff andvolunteers for their tireless work in building
better community outcomes.

38Supply Chain Management
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody’s commitments to labor, human rights,
employment standards, and environmental excellence
extend beyond just employees to all vendors andcontractors performing work on behalf of thecompany. Operations leadership, in partnership with
the Vice President of Supply Chain Management, has
responsibility for partnering with vendors that share ourvalues and deliver quality products and services.
During onboarding, vendors and their employees receive
a copy of Peabody’s rules and regulations and receive
training to understand the requirements set forth in ourpolicies and standards. Vendors are required to comply
with all required health and safety permits, have asystem in place for workers to report any incidents, andimplement a corrective action plan for incidents andfailures. Training requirements to ensure complianceare outlined in the contractual arrangements withthe vendor, and overall contractor performance andcompliance is overseen by a Peabody project manager
at the facility.

Environmental Expectationsof Suppliers
Peabody outlines expectations for environmental
compliance and stewardship to all vendors in its
Vendor Code of Conduct. Suppliers must comply withall laws and regulations—whether local, tribal, orinternational—and ensure all activities are covered byrelevant environmental permits and licenses. Peabody
may also outline further requirements in its contractual
arrangements with a vendor, depending on the scope or
potential impact of the service or product provided.

Social Expectations of Suppliers
Peabody’s vendors must comply with all applicable laws
and regulations, as well as all expectations outlinedin the Vendor Code of Conduct. Peabody’s vendors
must include in their internal policies and procedures
a commitment to zero tolerance towards bullying,harassment, or discrimination within the workplace.
Peabody’s vendors are expected to follow our principles
of acting in accordance with the International Bill of
Human Rights, United Nations Guiding Principles ofBusiness and Human Rights, and the International Labor
Organization Declaration on Fundamental Principles
and Rights at Work. Our Australian vendors are also
expected to follow the provisions of the AustralianModern Slavery Act.
In addition, a vendor’s diversity status is obtainedin the onboarding process for purposes of tracking
diversity spend across the company. In 2022,
Peabody spent approximately $32.5 million with
underrepresented vendors.

Peabody’s commitments to labor, human rights, employment standards, and environmental excellence extend beyond just employees to all
vendors and contractors performing work on behalf of the company.

2023 Environmental, Social, and Governance Report39INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Governance
IN THIS SECTIONESG Oversight..................................................41

Risk Management...........................................47

Our Board of Directors..................................42

Crisis Management........................................48

Independence...................................................43

Cybersecurity....................................................49

Ethics....................................................................44

Stakeholder Engagement............................50

Anti-Bribery & Corruption...........................45

Political Contributions...................................51

Whistleblower..................................................462023 Environmental, Social, and Governance Report40

ESG Oversight
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Top to Bottom
ESG is integrated into all areas of our business, fromour headquarters in St. Louis, to our offices in Brisbane,
and our mines around the world. Our top to bottom
approach ensures the board has ultimate oversight of
our ESG strategy which is championed by the executive
leadership team and senior management and turned
into meaningful change by our global workforce.
To ensure the company is living up to its values,
Peabody’s corporate ethics, compliance, safety, andenvironmental programs are subject to ongoingevaluation and oversight. The board annually reviewsthe qualifications and composition of the board andcommittees as well as the objectives, policies, andefficiency of programs that advance progress on
sustainable development.

The Details
The board of directors achieves responsible corporate
governance practices through a dotted line reporting
relationship between management’s compliancefunction and the board’s Nominating and Corporate
Governance Committee, and through regular compliancereporting to both the board’s Nominating and Corporate
Governance, Compensation, and Health, Safety,
Security, and Environmental Committees.
Peabody’s Nominating and Corporate GovernanceCommittee is appointed by the board of directors

2023 Environmental, Social, and Governance Reportand must have at least three directors, with the
majority independent. This committee serves as thehighest-level authority on corporate governancematters. The committee’s responsibilities include
maintaining the qualifications and composition of theboard and committees; developing global corporatesocial responsibility and sustainability standards;
reviewing potential conflict of interest situations;and overseeing the company’s corporate ethics andcompliance program.

or exposures; developing objectives, policies andprograms and conducting assessments of impact,
and performance; and efforts to advance progress on
sustainable development.

The Compensation Committee is appointed by the boardof directors and must have at least three directors,
with the majority independent. This committee serves
as the highest-level authority on compensation andperformance matters. The committee’s oversight
responsibilities include authority on matters related tocompensation of Peabody’s executive officers as wellas matters related to human capital management,
including diversity and inclusion, pay equity, company
culture, employee engagement, employee growth anddevelopment practices, and the company’s generalapproach to employee compensation and benefits.
Likewise, Peabody’s Health, Safety, Security, andEnvironmental Committee, appointed by the boardof directors, must have at least three directors, withthe majority independent, and serves as the highest
level of authority on health, safety, security, andenvironmental (HSSE) matters. The committee’s
oversight responsibilities regarding the Company’s
HSSE areas include monitoring significant risks

41

Our Board of Directors
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody is governed by anexperienced and diverse
board of directors. Our directors
come from multiple global,
tier-one mining, energy, utility,
equipment, and capital markets
companies, bringing strong
and unique perspectives. The
board has broad experiencein a variety of areas including
mining and related industries,
end-user segments (energy/
steel), mergers and acquisitions,finance and accounting, humancapital and organizational
health, restructuring, global
operations, health, safety
and environmental affairs,
governmental affair andadministration, public policy,
corporate governance, legal andregulatory affairs, board service,
and executive management.
Thirty-three percent of ourdirectors are gender and/or
racially diverse.

Board Diversity

MaloneAlgazeBertoneChampion

Chirekos

GormanGrech

LaymonMillerPublic Company Board Experience

•

•

•

•

•

•

•

•

•

Financial

•

•

•

•

•

•

•

•

Health, Safety, Environmental

•

•

•

•

•

•

Risk Management

•

•

•

•

•

•

•

•

Skills, Knowledge, and Experience

Accounting•••

Corporate Governance/Ethics••

Legal/Regulatory

•

•

•

Human Capital/Organizational Health/Compensation•

Executive Experience

•

•

•

Strategic Planning/Oversight

•

•

•

Technology/Cybersecurity•

Mergers and Acquisitions•

Mining or Related••

End User Segments (Energy/Steel)••Commercial Sales/Marketing•

Global Operations/Supply Chain•

Government/Public Policy••

International (Australia /AsiaPac)••

Restructuring Industry/Company

•

•

•

•

•
•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•
•

•

•

•
•

•

•
•

•

•

•

•

•

•

•

•

Select Minority Demographics
Female••African American•

Latino(a)•Veteran/Military Service
Prior Service•

Board Tenure
Years

14

3

4

3

6

6

•

•

•

•

•

•

2

6

3

•

•

Compliance Considerations
Independent Director
2023 Environmental, Social, and Governance Report42Independence
INTRODUCTION
OUR BUSINESSENVIRONMENTAL

An independent board ensures thatmeaningful oversight occurs. Eight ofour nine directors are independent under
NYSE rules, including the non-executive
board chair.

SOCIALOur board has five standing committees:

GOVERNANCE• Audit;

APPENDIX• Compensation;• Executive;

The Numbers
Members

9
Samantha Algaze

Andrea Bertone

Bill Champion• Health, Safety, Security, andEnvironmental; and5

Corporate Governance.

The board and each of its committees
regularly holds executive sessions of
their independent directors.

8Standing Committees• Nominating and
These committees each have aformal charter that describes its
purpose, organizational structure,and responsibilities.

Independent Members

Nicholas Chirekos

Stephen Gorman

Jim Grech

Combined Years of Service
to the Board

47

Gender and/or Racial Diversity

33%
Joe Laymon
2023 Environmental, Social, and Governance Report

Bob Malone

Dave Miller
43Ethics
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIXAt Peabody, integrity is one of our most importantvalues. Our Code of Business Conduct and Ethics
outlines policies and procedures that shape how wework and help us maintain a culture of excellence.
Peabody employees participate in annual training on the
Code of Business Conduct and Ethics.
We understand that a strong adherence to theseprinciples of ethical decision-making promotes the bestinterest of the company and enhances our reputation
as a world-class, responsible mining company forour stakeholders.

The Details
The Code of Business Conduct and Ethics covers key
areas including conflicts of interest, antitrust and unfair
competition, fraud, commercial relationships, financial
reporting, and harassment.
The policies and procedures outlined in the Code ofBusiness Conduct and Ethics support compliance withlocal, state, federal, tribal land, and international laws
and regulations, including securities requirements.
99 percent of salaried employees completed BusinessConduct and Ethics training in 2022.

2023 Environmental, Social, and Governance Report44Anti-Bribery & Corruption
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE

The company complies with all applicable laws andregulations in any jurisdiction in which it does business.
Peabody strictly prohibits giving, offering, or promising
anything of value to a government official to influence
any official act or otherwise violate the law. Peabodyprohibits commercial bribery of any kind, as outlined in
the Anti-Bribery and Anti-Corruption Policy.

APPENDIX

Peabody knows its reputation for fairness andintegrity is one of its most valuable assets.
Because of this, Peabody cultivates a cultureof high ethical standards and behavior.

Annual anti-corruption and anti-bribery training isrequired for salaried employees.

2023 Environmental, Social, and Governance Report45

Whistleblower
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Peabody’s Whistleblower Policy encourages all current
and former directors, officers, employees, and suppliersof Peabody to report any suspected wrongdoing,
unethical or improper conduct or dangers at work, or
improper circumstances in relation to Peabody.
To safeguard confidentiality, Peabody established “TellPeabody”; a 24/7 telephone and web-based hotline.
Employees, vendors, and contractors may use the hotline
to report any issues or concerns anonymously to anindependent entity, without risk of retaliation. Reports
may also be made to managers, HR representatives, or
the General Counsel.

Over the past
three years, 1.3
reports were
submitted per 100
employees via“Tell Peabody.”

Employees learn about the “Tell Peabody” hotline
during the onboarding process and refresher training isprovided annually.
All issues reported to the hotline are reviewed andinvestigated. Each investigation and relevant outcomesare reviewed by the board of directors.
For those outside the company, information about
the “Tell Peabody” hotline is available on our publicfacing website.

This program is communicated to all employees during their
onboarding process and refresher training is provided annually.
2023 Environmental, Social, and Governance Report46

Risk Management
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE

Peabody has established an Enterprise Risk Management (ERM) process that is applied at all levelsof the organization. Through this, we have developed a standard framework for evaluating risk. The
board of directors, the executive team, and operations management, regularly conduct oversight andreviews of key risk areas.
In assessing our key risks, we also strive to fully understand how those risks may evolve over time,
and what steps we can take to mitigate those risks. Management is responsible for the day-today management of the risks we face, while the board, as a whole and through its committees, is
responsible for the oversight of risk management.

APPENDIXThe Details
Risk Assessments are conducted regularly in key operational areas. These are based on potential
consequences and likelihood and include escalation criteria. During this process, operations
management collaborates with technical team members to review and monitor potentially changing
conditions. The gathered information from each area is reported to the executive team who
evaluates the adequacy of the assessment and action plans. They also ensure consistency withpublic disclosures.
In its risk oversight role, the board has the responsibility to satisfy itself that the risk management
processes designed and implemented by management are adequate and functioning as intended.
Additionally, the board holds strategic planning sessions with management to discuss our strategies,
key challenges, and risks and opportunities. The full board receives reports on our enterprise risk
management initiatives on an annual basis, at a minimum, and oversees the process of identifying andmitigating our material risks.
Key Operational Areas of the ERM:
• Finance, U.S. Operations• Australia Operation• Legal and Government Affairs• Commercial and• Information &Corporate Development• Human Resources

Operational Technology• Corporate Communications

2023 Environmental, Social, and Governance Report

The Role of the Board
While the board has ultimate responsibility for risk oversight,
board committees also oversee specific aspects related to
our ESG strategy. The Compensation Committee assists
the board in fulfilling its oversight responsibilities withrespect to the risks arising from our compensation policies
and programs and human capital matters. The Health,
Safety, Security, and Environmental Committee assists theboard in fulfilling its oversight responsibilities with respect
to the risks associated with our health, safety, security,and environmental objectives, policies, and performance,
including those related to cybersecurity and data privacy. The
Nominating and Corporate Governance Committee assists theboard in fulfilling its oversight responsibilities with respect tothe risks associated with board organization, membership andstructure, ethics and compliance, political contributions, andlobbying expenditures, succession planning for our directors
and executive officers, and corporate governance.
The board completes annual reviews of the ERM program andoutputs. It regularly reviews information relating to marketing,operations, safety performance, trading, finance, businessdevelopment, cybersecurity, safety and health performance(including pandemic impacts), and environmental, social, andgovernance objectives, policies, and performance, and therisks associated with each.
Additionally, the board holds strategic planning sessions withmanagement to discuss strategies, key challenges, and risks
and opportunities.

47

Crisis Management
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Should a crisis occur, Peabody maintains and regularly
reviews a Crisis Management Plan. This plan includes
a scalable structure and can be utilized at both the
Corporate and facility level. The plan includes definedroles for members of a Crisis Management Team andFacility Emergency Contacts.
Site-based Incident Management Teams are responsible
for the on-site management of serious incidents
and crises.
Each Peabody site has its own site-based IncidentManagement Team structure as part of its Emergency
Management Plan and is supported by corporate staff
and the Crisis Management Team, when necessary. The
site-based Incident Management Team works in tandemwith the local emergency response teams and oversees
the mitigation and recovery effort.
Crisis and Incident Management Team members
receive regular training and conduct annual exercises
to test the program and plans. The board of directors
is also a key piece of the Crisis Management Team andparticipates in regular exercises to ensure preparedness.
Peabody engages with a broad network of stakeholders,
including investors, regulators, and trade associations,
to appropriately respond to crises and continually
improve the readiness for future responses.

2023 Environmental, Social, and Governance Report

Crisis Management Team (CMT) Leader
Decide which functions are needed and assign primaries and reliefs

Crisis Response
Coordinator

Administrator/
ScribeSUPPORTING FUNCTIONSCommunications

Customer Support

Legal

HSSE

IT & Cyber

Government Affairs

Supply Chain

Finance

Human Resources48

Cybersecurity
INTRODUCTION
OUR BUSINESS

Cybersecurity is a significant pillar of risk management at Peabody. Our cybersecurity strategy emphasizes
mitigating cyber risk exposure and continuous improvement of cyber defense and resilience capabilities.

ENVIRONMENTAL
SOCIALThe Details

GOVERNANCE

Peabody’s cybersecurity strategy emphasizes:• Proactive management of cyber risk to ensure

APPENDIX

compliance with contractual, legal, andregulatory requirements;• Performing due diligence on third parties to ensure
they have sound cybersecurity practices;• Ensuring essential business services remain available
during a business disruption;• Implementing data policies and standards to protect
sensitive company information;• Exercising cyber incident response plans and risk
mitigation strategies to address potential incidents
should they occur.

Cybersecurity Risk
Assessments andVendors/Suppliers
The Peabody cybersecurity departmentcompletes cyber risk assessments on vendors
or prospective vendors that evaluate theirrelationship to Peabody, such as the type ofdata furnished to the vendor or connections
to Peabody systems. After the vendor’s
cybersecurity practices are evaluated,
Peabody makes a recommendation regarding
the level of risk the vendor contributes to thecompany or if there are additional security
controls recommended for use with the vendor
or its platform.

In 2022, there were no breaches that resulted in loss of privacy, data, or company information for customers or employees. All Peabody
employees who have access to Peabody data or systems are required to complete annual cybersecurity training. The board of directors also
completes annual training. Employees who have access to sensitive data complete targeted training that addresses specific security risks.
2023 Environmental, Social, and Governance Report49

Stakeholder Engagement
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE

Peabody seeks to engage stakeholders and build trust through ongoing conversations and transparency. Our stakeholders include
investors, employees, customers, suppliers, government regulators, communities, and industry groups.
We value feedback and welcome discussion about business strategy and priorities, operational updates, our holistic approach to
ESG, and executive compensation. We encourage open and constructive dialogue with investors during quarterly earnings calls
and investor days. In 2022, Peabody reached out to 44 institutional stockholders, accounting for 66 percent of total diluted shares
outstanding as of December 31, 2022.
Communications are elevated to the executive leadership team and are forwarded and reviewed by the full board as appropriate.

APPENDIX

Peabody
Investor Day
During the 2022 Peabody
Investor Day event, Dr. Richard
Axelbaum gave an informative
presentation on the future ofcoal and the use of advanced
coal combustion technology for
future power generation.
Dr. Axelbaum serves as the
Director of the Consortiumfor Clean Coal Utilization
Washington University St.
Louis School of Engineering.
He has been recognizedfor his research in thefossil fuel combustion andinnovation to address carbon
dioxide emissions.

2023 Environmental, Social, and Governance Report50Political Contributions
INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Oversight of Political andLobbying Activities
As a global leader in energy resources, Peabody believes
it is important to participate in the political process andengage policymakers on global energy, environmental,
and economic matters.
Peabody’s political and lobbying activities are directedby members of the executive leadership team withoversight from the company’s board of directors. Any
action is conducted in accordance with applicable law,
corporate policies, and our Code of Business Conduct
and Ethics.
Peabody is also a member of industry groups, tradeassociations, and nonprofit organizations. These groups
represent the mining industry and business community
in discussions with governments and other stakeholders
to establish consensus on policy issues.

The Details
In 2022, Peabody made $31,000 in politicalcontributions through its Political Action Committee(Peabody PAC), a nonpartisan political fund thatprovides financial support to candidates and isfunded entirely through voluntary contributions from
eligible Peabody employees. Peabody also made a$55,000 corporate contribution to the Congressional
Leadership Fund.

2023 Environmental, Social, and Governance Report

Peabody’s total U.S. federal lobbying expense for 2022
was approximately $380,000, as determined using the
Lobbyinag Disclosure Act method for reporting such
expenditures. Peabody political contributions, Peabody
PAC, and U.S. lobbying expenditures are a matterof public record, and the most current information isavailable through the Federal Election Commission, state
campaign finance reports, and the U.S. Senate and U.S.
House of Representatives. Peabody publicly reports U.S.

federal lobbying expenses on a quarterly basis, including
issues lobbied. Our reports are filed under the name
Peabody Investments Corp.
Peabody has been advised by organizations to which
it belongs that approximately $260,000 of the annual
dues and other company payments to U.S. industry
groups and trade associations were used for lobbying
expenditures and/or political activities in 2022.

51

INTRODUCTION
OUR BUSINESSENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

Appendix
IN THIS SECTIONKPI Data Charts...............................................532023 Environmental, Social, and Governance Report

52

KPI Data Charts
INTRODUCTION

Category

OUR BUSINESS

Topic

Unit

2018

2019

2020

2021

2022

Total Revenue$ millions

5,582

4,623

2,881

3,318

4,982

GRI

SASB

EM-CO-110a.1

ENVIRONMENTAL
ENVIRONMENTAL

Emissions

SOCIAL

Emissions

Carbon Intensity(tons CO2-e/million
USD)

1,892

1,931

2,560

2,060

1,356

GOVERNANCE

Emissions

Carbon Intensity(LB/ Unit)

16.0

15.0

14.0

14.1

14.7

Emissions

Scope 1
Emissionsa,bmetric ton CO2e

8,798,149

7,366,914

6,107,970

5,632,964

5,562,046

305-1

Emissions

Scope 2 Emissions

metric ton CO2e782,969

731,804

583,873

567,671566,176

305-2

Emissions

CO2 Equivalent
Emissions Total(Scope 1 & 2)

metric tons CO2-e

9,581,118

8,098,718

6,691,843

6,200,635

6,128,222

Waste

Hazardous Waste

tons

4,468

359

3

2,501

2,382

306-3

Waste

Non-Hazardous
Waste

tons

23,54524,976

13,741

9,891

24,371

306-3

Waste

Total Waste
Recycled(Hazardous + NonHazardous)

tons

15,634

11,273

4,131

7,075

16,109

306-3

Waste

Mineral Waste

tons

NA

20,649,144

14,160,416

14,039,518

15,901,226

306-3

EM-CO-150a.3

Waste

Non Mineral Waste
Generatedtons

28,01325,335

13,744

12,392

26,731

306-3

EM-CO-150a.2

Waste

Hazardous Waste
Recycled

tons

3,447

140

NA

1,742

1,662

306-3

EM-CO-150a.6

Water

Water Withdrawal
Total

cubic meters

67,232,000

51,800,000

55,067,000

48,424,649

303-3

Water

Water Recycled

cubic meters

13,701,000

13,013,000

12,234,000

11,983,953

APPENDIX

Waste
EM-CO-150a.5

Water

a U.S. Scope 1 emissions revised for alignment to U.S. EPA methodology
b IPCC AR4 GWP values utilized

2023 Environmental, Social, and Governance Report

53

KPI Data Charts CONTINUEDINTRODUCTION
OUR BUSINESSENVIRONMENTAL

Category

Topic

Unit

Water

Percentage of
Water Recycled
and Reused

Water

2019

2020

2021

2022

%

20%

25%

22%

25%

EM-CO-140a.1.2

Percentage of
Water Withdrawn
in Areas with Highor Extremely HighBaseline Stress

%

NA

18%

21%

23%

EM-CO-140a.1.4

Water

Number of water
non-compliances
resulting in aformal enforcement
action

#

NA

0

0

2

EM-CO-140a.2

Water

Fresh Water
Withdrawal Total

cubic metersNA

26,207,000

23,498,000

30,035,920

EM-CO-140a.1

Energy Use

Energy from
Electricity

Gigajoules

4,200,253

3,380,396

3,206,713

3,632,886

302-1

Energy Use

Percentage
Renewable Energy
from Electricity

%

19%

24%

26%

26%

302-1

Energy Use

Energy from Fuel
Use

Gigajoules

18,240,873

302-1

Energy Use

Total Energy

Gigajoules

21,873,760

302-1

Community

Donations Total$$1.45M$1.59M$1.01M

USD: $0.62M

USD: $0.88

Community

Donations Total$$14,500,000$1,590,000$1,010,000$620,000$880,000

Diversity% Women
Employees

%

11%

11%

405-1

Diversity% Non Executive
Women Managers

%

13%

12.3%

405-1

SOCIAL
GOVERNANCE
APPENDIX

2018

GRI

SASB

Energy Use

SOCIAL
Community

Diversity

2023 Environmental, Social, and Governance Report

54

KPI Data Charts CONTINUEDINTRODUCTION

Category

Topic

Unit

OUR BUSINESSDiversity% Diverse
Employees%

ENVIRONMENTAL

Human Capital Management

SOCIAL

Human CapitalManagement

GOVERNANCE

2018

7.5%

2019

10.4%

2020

10.5%

2021

2022

GRI

10%

9%

405-1

14.7%

14.3%

401-1

86,280163,000

403-5

SASB

Turnover of
Employees%

SV-PS-330a.2

Health & Safety

Employee Health& Safety Training
Hours

Hours

Health & Safety

Total Injury Rate

Rate

1.45

1.70

1.67

1.18

1.13

403-9

Health & Safety

Total Injury Rate
Employees

Rate

1.91

2.06

1.85

1.26

1.15

403-9

Health & Safety

Total Injury Rate
Contractors

Rate

0.09

0.62

1.10

0.93

1.08

403-9

Health & Safety

Lost Time Injury
Rate Total

Rate

0.93

1.21

1.26

0.79

0.65

403-9

Health & Safety

Lost Time Injury
Rate Employees

Rate

1.32

1.54

1.44

0.84

0.65

403-9

Health & Safety

Lost Time Injury
Rate Contractors

Rate

0.03

0.22

0.67

0.62

0.65

403-9

Health & Safety

NMFR

#

NA

5.5

4.7

24.2

403-9

EM-CO-320a.1

Health & Safety

Employee Fatalities

#

1

0

0

0

403-9

EM-CO-320a.1

Health & Safety

Contractor
Fatalities

#

NA

0

0

1

403-9

EM-CO-320a.1

Health & Safety

APPENDIX

2023 Environmental, Social, and Governance Report

55

KPI Data Charts CONTINUEDINTRODUCTION
OUR BUSINESS

Category

Topic

Unit

Labor

Percentage ofactive workforce
covered undercollective
bargaining
agreements,
broken down by
U.S. and foreign
employees

Labor

2018

2019

2020

2021

2022

GRI

SASB

%

NA

U.S.: 9%
Non-U.S.: 63%

U.S.: 11.5%
Non-U.S.: 63%

U.S.: 9.1%
Non-U.S.: 59.8%

EM-CO-310a.1

Number andduration of strikes
or lockdowns

#

NA

0

7

1 strike, 57 days

EM-CO-310a.2

Management

Executive Member
Diversity

%

0%

0%

405-1

FN-IB-330a.1

Management

Board Member
Diversity

%

33%

33%

405-1

FN-IB-330a.1

Percentage of (1)proved and (2)probable
reserves in or near
indigenous land

%

0%

0%

Labor

ENVIRONMENTAL
SOCIAL
GOVERNANCE
APPENDIX

GOVERNANCE
Management

Human Rights
Human Rights

2023 Environmental, Social, and Governance Report0%

EM-CO-210a.1

56

BUILDING BRIGHTER FUTURES

Peabody Energy, Inc. • 701 Market Street • St. Louis, MO 63101-1826 • 314-342-3400 • PeabodyEnergy.com