Mr. Richard Hew reports

CUC UNVEILS 2026 SUSTAINABILITY REPORT HIGHLIGHTING 2025 PERFORMANCE AND 60 YEARS OF SERVICE

Caribbean Utilities Co. Ltd. has released its 2026 sustainability report, and has provided a comprehensive overview of Caribbean Utilities' sustainability performance, achievements and impact during 2025, while commemorating Caribbean Utilities' milestone of 60 years of service to Grand Cayman.

The report outlines how Caribbean Utilities continued to advance its environmental, social and governance priorities throughout 2025, demonstrating its commitment to delivering reliable energy while supporting long-term resiliency and sustainability in Grand Cayman.

"As we celebrate six decades of serving Grand Cayman, we remain focused on creating long-term value for our customers, employees, shareholders and communities," said president and chief executive officer Richard Hew. "Our 2026 sustainability report highlights the progress we have made while reaffirming our commitment to strengthening resilience, advancing sustainability, supporting future generations and driving affordability for our customers."

As Grand Cayman's sole electric utility, Caribbean Utilities plays a critical role in supporting energy equity, affordability and climate resilience. Operating within a small island developing state, the company recognizes both the opportunities and responsibility associated with helping communities adapt to evolving environmental and economic challenges while supporting resilience through collaboration and emergency response efforts in the Caribbean region.

The 2025 reporting year was marked by both significant progress and considerable challenges. Against a backdrop of record global temperatures, geopolitical uncertainty and increasing climate-related risks, the impacts of hurricane Melissa underscored the vulnerability of island communities to extreme weather events. In response, Caribbean Utilities demonstrated its commitment to regional co-operation and resilience by deploying crews to support electricity restoration efforts in affected areas of Jamaica.

Despite these challenges, Caribbean Utilities continued to advance its sustainability strategy and deliver meaningful benefits for customers and the community. Key achievements in 2025 included:

• Delivering approximately $4.6-million (U.S.) in fuel cost savings to customers through the company's battery energy storage system while enhancing grid reliability and operational flexibility;
• Supporting the transition to cleaner transportation by converting 13 light-duty company fleet vehicles to electric vehicles and installing 25 public EV charging stations across Grand Cayman;
• Investing $5.4-million (U.S.) in critical resiliency projects, including the undergrounding of major transmission infrastructure to strengthen the island's electricity network;
• Expanding the benefits of battery storage technology, improving grid stability and increasing operational flexibility;
• Advancing renewable energy development through the submission of a bid for a 22.5-megawatt dispatchable photovoltaic plant, with Caribbean Utilities subsequently shortlisted as a top-ranked bidder in 2026.

The company also published its inaugural green finance report, reinforcing its commitment to aligning financial investments with environmental priorities.

Beyond its environmental initiatives, Caribbean Utilities continued to invest in the communities it serves through employee volunteerism, educational programs, charitable sponsorships and strategic partnerships aimed at enhancing community resilience and supporting future generations.

For 60 years, Caribbean Utilities has taken a long-term approach to serving Grand Cayman, recognizing that its responsibility extends far beyond supplying electricity. The company remains committed to supporting economic development, improving quality of life and helping to build a stronger, more sustainable future for Cayman.

The theme of this year's report, "Rooted in the Past. Renewing the Future," reflects Caribbean Utilities' enduring commitment to honouring six decades of service while continuing to evolve and innovate to meet future challenges. By integrating sustainability into strategic decision making, Caribbean Utilities continues to strengthen accountability, enhance operational resilience and advance its vision of sustainable growth. As Grand Cayman continues to grow, Caribbean Utilities is investing in the infrastructure, partnerships and technologies needed to support a resilient, affordable and sustainable energy future for generations to come.

The 2026 sustainability report is available on-line.

The principal activity of the company is to generate, transmit and distribute electricity in its licence area of Grand Cayman, Cayman Islands, pursuant to a 20-year transmission and distribution licence and a 25-year non-exclusive generation licence granted by the Cayman Islands government. The T&D licence, which expires in April, 2028, contains provisions for an automatic 20-year renewal, and the company has reasonable expectation of renewal until April, 2048. The generation licence expires in November, 2039.

We seek Safe Harbor.