WHEREAS:  Climate change is expected to exacerbate water shortages nationwide. According to a report by the Department of Energy, “there is agreement among climate models that there will be a redistribution of water, as well as changes in the availability by season.” That report highlights increasing regional droughts.

Climate change-induced water risk is a material liability affecting companies as water shortages increase across the globe. Risks to companies include disruption of operations due to water shortages at production facilities. Companies also face political risks due to competition for water resources by local communities or other companies or industries. Producing at a lower capacity or having to halt operations are both possible outcomes of drought and water scarcity, an outcome that poses material harm to our Company and investors alike.

Entergy’s business is dependent on effective water management. Entergy’s Water Use to Revenues is over one percent. Yet, the company does not disclose policies related to water efficiency, nor targets related to water efficiency.

In April, 2019, Entergy agreed to sell its Indian Point Energy Center for a "nominal cash consideration" after the New York Department of Environmental Conservation denied the company a necessary water permit, halting Entergy’s quest for a 20 year extension of its reactors. As highlighted by this example, our company is dependent on effective water management. It’s Lakes Hamilton and Catherine hydroelectric dams are licensed by the Federal Energy Regulatory Commission. In Entergy’s own words, it “owns the dams and the land under the lakes, but not the water, which is owned by the public.”

Most large companies have developed water planning and reduction programs, recycling measures, and leak prevention initiatives, among others, to diminish water risk and reduce costs. Disclosure of quantitative performance metrics, water-related impacts, and adoption of best practices for water management is the primary means by which investors can gauge whether our Company is sufficiently managing its water risks.

Peer companies like American Electric Power, CMS Energy, Dominion Energy, Duke Energy, and Exelon Corporation inform investors about their water resource management through voluntary reporting initiatives such as CDP Water and sustainability reports. Entergy Corporation has yet to provide adequate information to shareholders on its water stewardship initiatives.

 BE IT RESOLVED:  Shareholders request the Board of Directors report to shareholders, using quantitative indicators, any policies and practices to reduce climate-related water risk and prepare for water supply uncertainties associated with climate change.

Supporting Statement:  Proponents request the report include, at management discretion:

• Any setting of targets to reduce water withdrawals

• Any monitoring and management of water

• Any integration of water into governance mechanisms

• Any comprehensive risk assessments conducted

• Any engagement within Entergy’s value chains

• Any compensation incentives related to water withdrawal reduction or pollution avoidance

• Any water scarcity planning, including identifying facilities operating in water scarce regions