Plains All American Pipeline, L.P. (Nasdaq: PAA) and Plains GP Holdings, L.P. (Nasdaq: PAGP)
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:1,782,000 mt CO2e
Scope 1 Emissions:805,000 mt CO2e
Scope 2 Emissions:976,000 mt CO2e
Renewable Energy Share:22%
Carbon Intensity:0.49 mt CO2e/Thousand BOE (2021)
ESG Focus Areas
- Environmental stewardship and operating excellence
- Emerging energy
- Commitment to employees
- Stakeholder engagement
- Corporate governance
Environmental Achievements
- Reductions in Scope 1 and Scope 2 emissions
- Development of a companywide waste management and minimization plan
- Meaningfully improved Sustainalytics rating
Social Achievements
- Ranked among Houston Chronicle’s Top Workplaces for 12th consecutive year
- Awarded $250,000 to first responders through our First Responder Grant program
- Launched updated philanthropy, employee match and volunteerism program in the U.S.
Governance Achievements
- Formation of a Health, Safety, Environmental and Sustainability (HSES) board committee
- Active engagement in improving industry ESG reporting standards
- Developed a separate Code of Business Conduct for Contractors and Suppliers
Climate Goals & Targets
Environmental Challenges
- Did not achieve 2021 targets for reductions in Total Recordable Incident Rate (TRIR) and Federally Reportable Releases (FRR)
Mitigation Strategies
- Over the past five years achieved an approximate 50% decrease in TRIR and an approximate 40% decrease in FRR
- Ongoing discussions about emissions reduction opportunities and target setting
- Increased internal dedicated sustainability resourcing
Supply Chain Management
Supplier Audits: Safety audits conducted using ISNetworld system
Responsible Procurement
- Ethical standards stipulated in service agreements
- Compliance with laws and regulations pertaining to working conditions
- Code of Business Conduct for Contractors and Suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Hurricanes
- Floods
- Tornados
- Freezes
- Earthquakes
- Fires
Opportunities
- Emerging energy opportunities (hydrogen storage, battery storage, low-carbon fuel infrastructure)
Reporting Standards
Frameworks Used: EIC Midstream ESG Reporting Template, API Template for GHG Reporting, SASB Standards, GRI Standards
Awards & Recognition
- CSX 27th Annual Chemical Safety Excellence Award
- Canadian Pacific Safe Shipper Award
- International Liquids Terminal Association Safety Excellence Award
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:2,022,000 tCO2e
Scope 1 Emissions:832,000 tCO2e
Scope 2 Emissions:1,199,000 tCO2e
Renewable Energy Share:24%
Carbon Intensity:0.40 mt CO2e/thousand BOE
ESG Focus Areas
- Safety
- Environmental Stewardship
- Employee Development
- Community Investment
- Corporate Governance
Environmental Achievements
- Decreased GHG emissions intensity year-over-year
- Received the Conservation Champion Award by the Bayou Land Conservancy for supporting land conservation
- Implemented vegetation management programs focusing on land restoration and revegetation
Social Achievements
- Canadian Operations achieved a full year without a recordable incident
- Employee engagement in the CARE volunteer program increased by 40%
- Contributed approximately $3.8 million to charities
- Raised over $770,000 for the United Way of Greater Houston
- Welcomed more than 100 interns (a record year)
Governance Achievements
- Achieved near top quartile performance in preventable injury rates
- Maintained a unified Board of Directors for both PAA and PAGP
- 89% of CEO target compensation was "At Risk"
Climate Goals & Targets
Short-term Goals:
- 2024 performance target: total preventable recordable incident rate of 0.25 or lower; 15 or fewer federally reportable releases
Environmental Challenges
- Did not achieve overall TRIR target of 0.25 or lower
- Experienced 19 FRR, falling short of the reduction target of 10
- Total Scope 1 and 2 emissions increased slightly compared to 2022
Mitigation Strategies
- Continued efforts to achieve year-over-year improvements in safety and environmental performance
- Held a Tank Integrity Summit to identify opportunities to improve tank integrity management
- Continued focus on reducing GHG emissions intensity
Supply Chain Management
Responsible Procurement
- Code of Conduct for Suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
Transition Risks
- Regulatory changes
- Market shifts
Reporting Standards
Frameworks Used: SASB, GRI, EIC Midstream ESG Reporting Template, API Template for GHG Reporting, TCFD
Awards & Recognition
- GPA Midstream Perfect Record Award
- President’s Volunteer Service Award
- Conservation Champion Award