2018 DIVERSITY & INCLUSION ANNUAL REPORT

Purpose & Vision Statement

EXELON’S VISION

At Exelon, we believe that reliable, clean and affordable energy is essential to a brighter, more sustainable future. That’s why we’re committed to providing innovation, best-in-class performance and thought leadership to help drive progress for our customers and communities.

EXELON’S PURPOSE

Powering a cleaner and brighter future for our customers and communities.

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Diversity does not become embedded in our daily operations without inclusion. That is why Exelon is particularly focused on inclusion to help us fulfill our greater mission. We’ve made progress in building a workforce that reflects the communities where we operate and serve. Now, we’ve made it a top priority to create a workplace where every employee feels seen, heard, valued and respected. This is the only way we will fully realize the value of our diverse workforce and continue to innovate, grow, and meet the changing needs of our customers.

We’ve implemented a suite of policies and programs across our company, from mandatory respectful workplace training to stay interviews so we can both set the expectation of how we must treat each other and understand what must continue to do to make Exelon a desirable workplace. Leaders across the company regularly host sessions where employees can discuss cultural and social issues that affect work in an open and safe environment. Exelon also supports a range of Employee Resource Groups, connecting employees with shared backgrounds and interests who in turn can serve as a sounding board on matters related to their group’s charter, from hiring veterans to making our company more accessible for people with disabilities.

To further emphasize our commitment to inclusion, for the past two years Exelon has been a Thematic Champion of the United Nations HeForShe movement, a global movement to foster a systematic approach to gender equality. As a Thematic Champion, Exelon made two bold commitments: to improve the retention of women at Exelon and to make an even greater investment in STEM education for girls. We are pleased that we’ve made strong progress in a relatively short time.

We are honored that our efforts toward inclusion have been recognized by some of the leading organizations that focus on D&I. In 2018, we moved up 15 spots to number 32 on the DiversityInc. “Top 50 Companies for Diversity.” Recognitions like this tell us that we are indeed heading in the right direction.

We greatly appreciate your continued support and engagement as we work to make Exelon a stronger, more inclusive company.

DEAR COLLEAGUES,

Amy Best Senior Vice President, Chief Human Resource

Nicole Durham Vice President, Diversity & Inclusion

Introduction 3

DIVERSITY & INCLUSION PROGRAM GOALS

We focus our efforts on five areas.

1. Diverse & Inclusive Workforce

Attracting, developing and retaining talent of all backgrounds that reflects the realities of our marketplace and communities and the relevant labor market.

2. Inclusive Workplace

Creating a culture of inclusion through consistent and sustained execution of the Exelon D&I Strategy, including progress measurement and accountability for results.

3. Diverse Suppliers

Achieving a diverse range of suppliers, vendors and service providers.

4. Community Relationships

Ensuring that Exelon leadership has a significant reach and visible presence in a strategic core group of diverse community-based organizations.

5. Leader in Diversity & Inclusion

Positioning Exelon to be recognized as a D&I leader by its employees; by local, regional and national thought leaders; and the communities it serves.

Goals 4

1. DIVERSE & INCLUSIVE WORKFORCE

Diversity and inclusion are core values at Exelon and recognized as part of what we do, helping us attract and retain talent, be a better corporate citizen in our communities, run our business better, and power a cleaner and brighter future for our customers and communities.

Internships and University Recruitment: In 2018, Exelon hosted more than 500 collegiate summer interns across our operating companies with the primary goals of 1) building a diverse talent pipeline for future entry-level jobs, and 2) exposing young talent within our communities to valuable applied experience and career opportunities in the energy industry. Exelon has established strategic partnerships with key academic institutions and organizations based on academic excellence in relevant areas of study, student diversity and proximity to our major markets of operation. Each of Exelon’s operating companies has established additional academic partnerships aligned with their unique markets and needs. We continue to explore opportunities to automate and create efficiencies in our process of connecting with and recruiting students as our geographic footprint has increased.

Women 24%

GENDER

Men 76%

People of Color 27%

RACE & ETHNICITY

White 73%

Veterans 10%

VETERANS

Other 90%

Under 30 10%

AGE

30–50 38%

Over 50 52%

Women 24%

MANAGEMENT* GENDER

Men 76%

People of Color 22%

MANAGEMENT* RACE & ETHNICITY

White 78%

* Management is defined by EE0-1 Job Categories, “Executive/Senior Managers” and “First/Mid-Level Managers.”

Military and Veteran Outreach: Exelon believes in hiring men and women who have served in the military; they exemplify the leadership, teamwork, integrity and commitment to excellence we need. Exelon understands that military veterans are uniquely qualified for the work we do, and we actively pursue veterans to join our team. We connect with veterans at military-focused recruitment events nationally, locally and virtually, many of which were hosted by our partner organizations including RecruitMilitary, HirePurpose and Veteran Recruiting (VR) Virtual Career Fair. Our active military hiring commitments include the 100,000 Jobs Mission and the VetFriendly Job Initiative.

Goal 1

Our Workforce as of 12/31/18

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2. INCLUSIVE WORKPLACE

For the past year, we have been focused on cultural change. Here is a look at some of the programs being implemented across our operating companies to help us get there.

BGE Listening Sessions: BGE conducted listening and learning sessions to provide executives with an opportunity to understand the experience of the female employees in their business areas. Executives were asked to listen only—and resist the urge to problem solve or interject. More than 40 sessions were conducted. The company is now focused on addressing the areas of opportunity that were identified during these sessions.

Constellation Current Event Dialogue Series: Senior- and mid-level leaders partnered to facilitate sessions on topical events, providing employees with a safe place for respectful, constructive discussion. Topics included the HeForShe campaign, gun violence, and understanding privilege. Nearly 550 employees participated in the 30 sessions held across 10 geographic locations.

Diversity is the Difference: Exelon Nuclear launched a communication campaign highlighting how D&I has played a part in driving greater business results. Through more than 70 related articles in 2018, “Diversity is the Difference” provided clear examples of how having diverse teams has yielded better business outcomes in Safety, Security, Innovation, and Legislative Policy. Partnership with Nuclear’ s employee resource groups provided localized programs, activities, and in-person opportunities to show the business value of Diversity and Inclusion.

Powerful Leadership Summits: In 2018, the company held six events for 200 leaders to help them develop tools for creating an inclusive environment, improve two-way communication, and promote an innovative culture. The summits are a vehicle for developing an inclusive culture by leveraging senior leaders to serve as teachers and guides to lower-level leaders.

Women in Power Summit showcases D+I: In support of People Development, Exelon Power hosts a summit dedicated to the development of women. The one-day summit focused on development, networking, and visibility to leadership. Forty-nine women attended the event, designed for networking and learning from senior leaders.

Inclusion Survey: Portions of the Exelon Business Services Company implemented a customized inclusion survey to understand where improvements need to be made on the overall employee experience. Tangible outcomes of this survey include focused sponsorship programs, engagement goals for E09 level leaders, and targeted trainings at the request of employees. Success will be monitored in follow up employee engagement surveys and future inclusion surveys.

Spotlight ERGs: The Organization of Latinos at Exelon (OLE), was recognized by LATINA Style Magazine as one of the Top 20 ERG’s in 2018. This award focused around civic-mindedness in the Hispanic and Latina community. The outlet selected OLE for its commitment to volunteerism, its contributions to helping Exelon develop strategic community partnerships and for enhancing Exelon’s reputation in the areas it serves. One Exelon is OLE’s work to develop the pipeline of future business- potentially energy- professionals by providing college scholarships to high school seniors in Exelon cities.

Spotlight Paid Leave Stats: In 2017, Exelon expanded its paid leave policies to include up to 16 weeks of paid maternity, bonding and primary caregiver leave benefits to full-time, non-represented employees, with at least one full year of service. These benefits help not only new parents, but those caring for a critically ill family member. To date, over 400 women and 1800 men have taken paid parental leave.

Goal 2 6

It is critical to us that our business partners and vendors reflect the communities we serve. We have therefore established several measurements to ensure we stay ahead of that goal in terms of the makeup of the companies with whom we do business, and diversity among our suppliers. Exelon’s Diverse Business Empowerment Team had the best year yet. We increased diverse expenditures by 11%—$215M—over 2017. We more than doubled the total diversity-certified supplier expenditures since 2014. The total diversity-certified spend between 2014-2018 was $8.5B.

As of 2018, each of our utilities had a local supplier development program in place. These year-long initiatives improve the opportunities for diversity-certified suppliers to win contracts by providing insight into Exelon’s process and requirements. Participants are briefed in best practices embraced by Exelon, including field safety, just-in-time delivery and fostering growth through innovation.

For the second consecutive year, Exelon was named to the Billon Dollar Roundtable. Exelon spent over $2 billon with diverse suppliers in 2018, representing 22 percent of the corporation’s total supplier purchases.

ComEd reached an all-time high in diverse supplier spend, with 39 percent of its total supply chain spend represented by diverse suppliers. This total investment of $718 million in 2018 was related to the company’s efforts to modernize the grid and enhance service for its more than 4 million customers.

The Chicago Minority Supplier Development Council, Inc. recognized Exelon and ComEd as “Corporation of the Year” for empowering minority businesses. This award recognizes companies who are champions of supplier diversity and empower minority business success throughout the entire organization.

3. DIVERSE SUPPLIERS

Achieving a diverse range of suppliers, vendors and service providers.

Goal 3 7

4. COMMUNITY RELATIONSHIPS

Exelon believes in meeting our commitments to the communities we serve and making sure we are a good neighbor and corporate citizen. Our commitment to diversity and inclusion goes well beyond Exelon’s offices around the country. We value D&I across all aspects of our business, and this is a value we look for in our business partners as well. Some highlights of our community investments and the partnerships that helped us grow as a company—and helped our company grow—in 2018:

Delmarva Power formed a partnership with The Precisionists, Inc., an organization dedicated to creating jobs for individuals with disabilities, to provide dozens of local jobs for adults with autism.

Women in Sustainable Energy Employment (WISE) Pathways, a partnership with multiple employers including Pepco Holdings Inc., is a career exploration course designed for women to consider non-traditional, in-demand jobs in the construction, gas, water, electric and energy industries.The 40-hour-long curriculum provides women the opportunity to learn about career paths in these industries.

Homeless veterans graduated from the Project Home PECO/Exelon Veterans Training Program. This is the eighth class to graduate from the program, which provides a new start for formerly homeless veterans by offering them job skills training and paid internships.

High School Energy Career Academy –2018 prepares high school students for post-secondary education or moving directly to employment with a utility, helping communities to “grow their own.” The Center for Energy Workforce Development (CEWD) High School Energy Career Academy model is extensive, and not only helps students build their knowledge of the energy industry but enhances employability skills and integrated academic components. In 2018, the High School Energy Career Academy was held in three schools in New Jersey: Atlantic County Institute of Technology, Cape May Technical High School and Cumberland County Vocational School.

“ This award-winning collaboration with The Precisionists is the essence of innovation and has delivered amazing results by matching highly skilled and deeply focused people with specific jobs that leverage their unique talents,” stated Dave Velazquez, President and CEO of Pepco Holdings, which includes Delmarva Power. “In the process, we are transforming the workplace for us all.”

PECO executives joined Drexel University officials to recognize the 2018 recipients of the Exelon Endowed Scholarship Fund for Women and Minorities at this year’s annual Drexel Exelon Scholars Day. Established in 2004, since its inception the fund, PECO and Exelon have collectively awarded $1.5 million in scholarships to more than 330 students through the Drexel Exelon Scholars Program.

Exelon Nuclear continues to partner with targeted technical schools by providing scholarships, pre-employment testing and opportunities to participate in mock interviews. Regional and Collegiate diversity organizations—e.g., National Society of Black Engineers (NSBE), Society of Women Engineers (SWE), Society of Hispanic Professional Engineers (SHPE)—for engineering and operations continue to be a focus, as well as participation in military onsite and virtual career fairs.

In 2018, Exelon donated $42,779,844, or 83% of all grants, to organizations that focus on the needs of people of color, women and veterans.

Goal 4 8

5. LEADER IN DIVERSITY & INCLUSION

Positioning Exelon to be recognized as a D&I leader by its employees; by local, regional and national thought leaders; and the communities it serves.

D&I is a focal point at every level of the company.

In addition to the periodic D&I update to the Board, our CEO reviews the D&I dashboard on a quarterly basis in Quarterly Management Meetings in which Executive Committee members are held accountable for reporting their actions and progress achieved as part of the company’s D&I strategic goals. All Operating Companies and Business Practice Areas within Exelon are responsible for developing, and executing diligently throughout the year, a D&I annual plan focused on improving workforce diversification, fostering an inclusive workplace culture, and ultimately driving business growth and innovation.

The October 2018 Exelon Leadership Meeting, attended by the 250+ executives in Exelon, was dedicated to the company’s strategic efforts around D&I and the impact on our business goals. Since that meeting, our CEO has met with the officers of the company in small groups to continue that discussion, with the goal of driving self-reflection and personal responsibility among those leaders for creating a diverse and inclusive culture at Exelon.

Exelon invested with 24 women- and minority-owned investment firms in Illinois, Maryland, New Jersey and Pennsylvania, who manage more than $3.1 billion of the company’s assets with a 20 percent compound annual growth rate over the last eight years.

Exelon’s annual D&I Honor Roll recognizing our professional service partners is helping encourage more companies to improve diversity on their teams. The number of firms named to Exelon’s honor roll has more than doubled in just seven years. In 2018, Exelon recognized four participating finance and IT firms as “most improved” because of their significant efforts to increase female and minority representation on the account teams working with Exelon. Two law firms were also noted for increasing their representation of female attorneys and attorneys of color.

“ We continue to find and invest in high quality diverse managers that can make a meaningful difference in our investment portfolio and, as a result of the Exelon capital, can make a meaningful impact on their business,” said Doug Brown, Exelon’s SVP and Chief Investment Officer.

Goal 5

2018 Diversity Awards:

• DiversityInc Top 15 Companies for Hiring Veterans

• Human Rights Campaign Best Places to Work 2011–2018

• G.I. Jobs Military Friendly Employer Award Recipient 2008–2018

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Thank you to our contributors for this year’s report:

Gregory Almonord

Paula Conrad

Meghan Dougherty

Heather Grindley

Liz Kammann

Liz Keating

Jessica Landers-Hopkins

Kalyn Lykkebak

Wendy Mann-Flores

Rhea Marshall

Robert Matthews

Theos McKinney

Monica Moody-Wrenn

Chrissie Pariso

Cindy Petersen

Rosa Trejo