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Clean Energy: Clean Energy Fuels : Sustainability Report 2023

ANNUAL SUSTAINABILITY REPORT 2023 Table of contents INTRODUCTION 2 Letter from the CEO 4 About Clean Energy 6 About renewable natural gas (RNG) 7 Our products and services 9 Corporate governance 15 Our sustainability strategy 16 2023 HIGHLIGHTS 18 2023 Fast facts 19 Customer impacts 20 2023 Success stories 21 ENVIRONMENT: FUELING THE TRANSITION TO RENEWABLE ENERGY IN TRANSPORTATION 23 Environmental goals 24 Environmental benefits of dairy RNG 25 Environmental benefits of landfill RNG 26 Addressing methane leaks 27 Operational energy efficiency 28 Environmental impact and nature-related risk 29 SOCIAL: BUILDING THE WORKFORCE OF THE FUTURE 32 Social goals 33 Employee recruitment, retention, and engagement 34 Employee spotlights 35 Diversity, equity, and inclusion 36 Actions for good 37 Employee and contractor safety 38 GOVERNANCE: SMART POLICIES FOR SYSTEM TRANSITION TO RENEWABLE FUELS 40 Governance goals 41 Stakeholder engagement, advocacy, and lobbying 42 Business ethics, executive compensation, and incentives 44 2023 DATA AND ADDITIONAL INFORMATION 45 Our 2023 greenhouse-gas inventory 46 Company emissions performance 48 About this report 54 Forward-looking statements disclaimer 56 A note on materiality 56 GRI index 57 ANNUAL SUSTAINABILITY REPORT 2023 TABLE OF CONTENTS INTRODUCTION 2023 HIGHLIGHTS ENVIRONMENT SOCIAL GOVERNANCE 2023 DATA AND ADDITIONAL INFORMATION 2 INTRODUCTION 3 A letter from Andrew J. Littlefair, PRESIDENT AND CEO At Clean Energy, our mission from the very beginning has been to provide a cleaner fuel for fleet vehicles that is easy to use and affordable. Today, everything we do is with the certainty that we continue to have the best option that fulfills that mission with renewable natural gas (RNG). RNG is the easiest, most readily available and affordable fuel for midsize and heavy-duty vehicles to meet their decarbonization goals. The Clean Energy team works hard every day to bring this remarkable fuel to thousands of fleets, resulting in Clean Energy becoming the largest provider in North America. In 2023, we reached new meaningful milestones which underscored our ongoing commitment to growing Clean Energy's RNG footprint in more ways than one. Last year, we completed multiple projects that strengthened our position for expansion and development of our business, while positioning Clean Energy to meet our own sustainability goals and helping our customers to do so as well. First and foremost, we saw the successful operational launch of our first RNG project at Del Rio Dairy in Friona, Texas. Having broken ground in 2021, it began producing RNG from the collected manure of 8,000 dairy cows last year. We anticipate the supply to reach around 1.1 million gasoline gallon equivalents (GGEs), which will be the first RNG supply we not only sell at our own stations, but also produce ourselves. It's a lengthy and complex undertaking getting these large facilities online, and by becoming fully operational, the Del Rio RNG site will prevent harmful methane from entering the atmosphere-a big win-win for the dairy farm, for transportation, and for the planet. And staying on the RNG front, our efforts bore fruit with a significant increase in RNG fuel sales, climbing from 199.2 million GGEs in 2022 to 225.7 million GGEs in 2023, marking an exceptional 13.9 percent increase. That's a collective carbon emissions reduction of approximately 1,037,423 MT of CO 2 e by our customers, an improvement of 16 percent from the prior year just by fueling with clean-burning RNG. This is truly a testament to the growing demand and acceptance of RNG as a viable alternative. ANNUAL SUSTAINABILITY REPORT 2023 TABLE OF CONTENTS INTRODUCTION 2023 HIGHLIGHTS ENVIRONMENT SOCIAL GOVERNANCE 2023 DATA AND ADDITIONAL INFORMATION 4 Much of that demand was driven by our large customer, Amazon, which fuels thousands of heavy-duty trucks at our network of stations. In 2023, we opened eight stations as part of our agreement with Amazon, where their trucks are an anchor customer, but the stations are also well located for other fleets to take advantage of fueling with RNG. To guarantee a steady supply for some of the country's largest fleets such as UPS and Amazon, which rely on us to provide them with clean fuel, our Renewables Distribution team successfully certified 11 and initiated a further 18 fuel-pathway projects for future dairy and landfill RNG digester projects. This assures a continuous source of government -certified fuel to meet customer demand. While RNG is our primary solution and does wonders as a fuel, it can also be used as a feedstock for hydrogen. In 2023, we were awarded a contract to construct the first hydrogen fueling station for our customer, Foothill Transit, one of the largest transit agencies operating in Southern California. The new hydrogen station will supply liquid-hydrogen fuel that is partially produced with RNG to refuel 33 Foothill buses daily. We see potential in growing our hydrogen fueling business as more transit agencies are looking at that alternative clean-fueling option. We also signed an agreement in 2023 with Tourmaline, Canada's largest natural-gas producer, that will significantly increase our fueling footprint in the important Canadian market. We embarked on this joint-development agreement to support the growth of lower-carbon fuels by building up to 20 new stations across western Canada. These stations will allow over 3,000 trucks to be fueled with clean-burning compressed natural gas (CNG) every day, improving air quality and potentially reducing up to 72,800 tons of CO 2 each year, which is an equivalent to removing 15,690 passenger vehicles from the road. All in all, I am incredibly proud of the progress the Clean Energy team made in 2023. It was a year where many of the pieces fell into place, which well positions us to continue to be a leader in providing cleaner solutions to customers and ultimately all of us who occupy this planet. Our dedication to providing the cleanest fuel remains steadfast and we look forward to continuing to lead the charge to decarbonize commercial transportation in 2024 and years to come. Sincerely, Andrew J. Littlefair President and CEO ANNUAL SUSTAINABILITY REPORT 2023 TABLE OF CONTENTS INTRODUCTION 2023 HIGHLIGHTS ENVIRONMENT SOCIAL GOVERNANCE 2023 DATA AND ADDITIONAL INFORMATION 5 About Clean Energy Clean Energy Fuels Corp. is the country's largest provider of renewable natural gas (RNG) for the transportation market, both in number of stations and gallons delivered per year. Our mission is to create a healthier planet by eliminating carbon emissions in the transportation and dairy industries. RNG is a sustainable fuel made from organic waste that allows large vehicles-like heavy-duty trucks, city buses, and airport shuttles-reduce their greenhouse gas emissions. Our vertically integrated business model begins at dairies and ends in commercial vehicles. We operate a vast network of fueling stations across North America, along with RNG production facilities at dairy farms nationwide. Our robust infrastructure ensures a quick path from pasture to pump, and it provides the widespread access that fleets need to adopt our renewable solution. 1 Updated 2023 CARB data. HEADQUARTERS STOCK SYMBOL Newport Beach CLNE California NASDAQ ESTABLISHED NUMBER OF EMPLOYEES 1997 566 26 yrs NUMBER OF STATIONS TOTAL FUEL VOLUME IN 2023 600+ 466.2M GGE US and Canada CNG and LNG, including RNG RNG SALES GROWTH RNG MARKET SHARE 1 13M 225.7M 43% 56% GGE in 2013 GGE in 2023 U.S. California FLEET CUSTOMERS FUELING VEHICLES 1000+ 50,000+ (as of Dec. 31, 2023) ANNUAL SUSTAINABILITY REPORT 2023 TABLE OF CONTENTS INTRODUCTION 2023 HIGHLIGHTS ENVIRONMENT SOCIAL GOVERNANCE 2023 DATA AND ADDITIONAL INFORMATION 6 About renewable natural gas (RNG) WHAT IS RNG? Renewable natural gas (RNG) is a low-carbon transportation fuel for heavy-duty trucks, buses, refuse fleets, and other large vehicles. It's made entirely from organic waste, from sources like livestock farms, landfills, and wastewater- treatment facilities. Unlike conventional natural gas, RNG is not a fossil fuel and does not involve drilling or fracking. But they both share the same chemical composition, which allows RNG to seamlessly drop into the existing natural-gas distribution infrastructure and into all natural-gas vehicles. RNG is a mature and proven solution that replaces diesel and gasoline, reducing both smog-forming NOx emissions and carbon emissions. No other alternative-fuel technology comes close. EMISSIONS-REDUCTION SOLUTION As a society, we produce a lot of waste. This is a problem because when organic matter decomposes, it naturally releases methane, a highly potent greenhouse gas with a global- warming impact 28 times greater than that of carbon dioxide. 2 By capturing waste methane from sources like dairy farms, we can achieve a net impact that goes beyond current definitions of net-zero. In fact, according to the California Air Resources Board (CARB), RNG surpasses even fully renewable electric options derived from solar and wind, thanks to its ability to prevent fugitive methane emissions from escaping into the atmosphere. As a stable, domestic source of energy, unaffected by geopolitical events or price fluctuations in global markets, RNG is well suited to displace diesel and gasoline. 3 But it can also be used as a decarbonizing feedstock for power generation of other clean commodities, like hydrogen, ammonia, bio-LNG, and methanol. HOW RNG BENEFITS FLEETS Sustainable RNG reduces lifecycle carbon emissions by up to 300%, making it the only fuel capable of achieving negative carbon-intensity. Cleaner RNG-powered engines greatly reduce smog, with NOx levels 90% below current EPA standards. Available now A robust RNG fueling infrastructure already exists, with over 600 Clean Energy stations across North America. Affordable RNG is a domestic, stable-priced fuel, competitive with diesel. Grant funding and in

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Annual Revenue
$100-500M
Employees
500-1.0K
Andrew J. Littlefair's photo - President & CEO of Clean Energy

President & CEO

Andrew J. Littlefair

CEO Approval Rating

92/100

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