Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Stewardship
• Community
• Innovation
• Satisfaction
• Transparency

Environmental Achievements

• Reduced EPA-reported greenhouse gas emissions by approximately 16% since 2015 in the Downstream segment through distribution system modernization investments of approximately $325 million.
• Significant investments in pipeline and compression modernization since 2014 in the Midstream segment (over $350 million), with further replacement of aging infrastructure in progress.
• Continued significant investments in water handling and recycling facilities and use of EPA-approved best management practices for emissions controls at production facilities in the Upstream segment.

Social Achievements

• No furloughs or workforce reductions during the COVID-19 pandemic.
• Implemented numerous initiatives to provide flexibility to the workforce during the COVID-19 pandemic, including additional paid time off to address childcare needs and encouraging the use of alternative work schedules.
• High levels of utility customer satisfaction and remarkably low customer complaint rate.

Governance Achievements

• Established a new Vice President of Corporate Responsibility position in 2020 to oversee ESG initiatives.
• Created a Corporate Responsibility Management Committee engaging subject matter experts from different operating segments.
• Nominating/Corporate Governance Committee provides board-level oversight and guidance on corporate responsibility and ESG factors.

Climate Goals & Targets

Environmental Challenges

• Significant new challenges experienced due to the COVID-19 pandemic.
• External factors impacting affordability of natural gas, including regional economic conditions, commodity prices, weather, and regulation.
• Challenges in locating and attracting qualified minority candidates for high-demand positions due to the rural nature of many service locations.

Mitigation Strategies

• Implemented a comprehensive pandemic response plan to ensure business continuity and workforce safety.
• Suspended service terminations (except for emergencies), offered flexible repayment agreements, waived late fees, and reconnected services for customers facing financial hardship due to COVID-19.
• Implemented robust customer service initiatives, such as budget billing and deferred payment arrangements, to stabilize customer bills.
• Developed robust compliance programs to address environmental and social regulations and provided training to employees.
• Partnered with community groups and organizations to promote awareness of job opportunities within diverse communities.

Supply Chain Management

Responsible Procurement

• Code of Vendor Conduct
• National Fuel’s Labor & Human Rights Guidelines

Climate-Related Risks & Opportunities

Transition Risks

• Climate change, and the regulatory and legislative developments related to climate change, may affect the Company’s operations and financial results.
• Increased conservation, competition from renewable energy sources, and technological advances to address climate change may reduce the demand for gas and oil.

Reporting Standards

Frameworks Used: Sustainability Accounting Standards Board (SASB), Global Reporting Initiative (GRI)

Environmental Metrics

ESG Focus Areas

• Climate risk
• Emissions reduction
• Diversity, Equity and Inclusion
• Safety

Environmental Achievements

• Reduced EPA subpart W emissions by 64% since 1990 in the Downstream Segment.
• Reduced inventory of unprotected steel mains by 6.1% and cast/wrought iron mains by 7.0% in the Downstream Segment.
• Reduced inventory of unprotected steel services by 4.8% in the Downstream Segment.
• 70% fewer outstanding leaks than at calendar year-end 2015 in the Downstream Segment.
• 43% reduction in reported leaks in the Downstream Segment over the past five years.
• Midstream Segment achieved a 50% reduction in methane intensity for its Pipeline and Storage business and a 30% reduction in methane intensity for its Gathering business (both by 2030 using a 2020 baseline).

Social Achievements

• Appointed a Director of Diversity and Inclusion.
• Updated Corporate Governance Guidelines to incorporate the “Rooney Rule”.
• Implemented specific performance goals for fiscal year 2021 as part of the Company’s Annual at Risk Compensation Incentive Plan for executive compensation, including diversity and inclusion goals for each executive officer.
• 35% reduction in OSHA recordable injuries in Utility and Pipeline & Storage businesses versus the prior fiscal year.
• 31% decrease in OSHA recordable injuries in Exploration & Production business versus the prior fiscal year.
• Created an Employee Referral Program for its Midstream and Downstream Segments.

Governance Achievements

• Enhanced climate-risk disclosure in line with the TCFD framework.
• Established significant methane intensity reduction targets at each of its businesses, as well as an absolute GHG emissions reduction target for its consolidated Company.

Climate Goals & Targets

Environmental Challenges

• Policy and regulatory changes at the federal, state, and local levels.
• Project opposition.
• Decreased demand for natural gas and oil.
• Financial counterparty restrictions for carbon-intensive industries.
• Impacts of COVID-19 pandemic.

Mitigation Strategies

• Enterprise risk management process.
• Energy Transition Steering Committee to guide investment opportunities.
• Specific teams focused on hydrogen, CCUS, and RNG.
• Implementation of various BMP commitments under EPA’s Methane Challenge Program.
• Suspended service disconnections (except for emergency purposes), offered customers flexible repayment agreements, waived late fees when requested, and reconnected services that had been previously disconnected (in response to the COVID-19 pandemic).

Supply Chain Management

Responsible Procurement

• Code of Vendor Conduct
• National Fuel’s Labor & Human Rights Guidelines

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Long-term shift in climate patterns

Transition Risks

• Policy and legal risks
• Technology risks
• Market risks
• Reputational risks

Opportunities

• Resource efficiency
• Alternative energy sources
• New products and services
• Access to capital
• Improved resiliency

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Awards & Recognition

• AGA top-tier safety companies awards (2020)
• Energy Association of Pennsylvania safety achievement awards (2020)

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Stewardship
• Community
• Innovation
• Satisfaction
• Transparency
• Climate-related risks and opportunities
• Emissions reductions
• Low-carbon fuels
• Responsibly sourced natural gas
• Waste management
• Diversity, Equity, and Inclusion

Environmental Achievements

• Achieved certification of 100% of natural gas production under Equitable Origin’s EO100™ Standard and certification of 121 wells under Project Canary’s TrustWell™ program.
• Seneca Resources achieved an “A” grade for 100% of natural gas production under MiQ’s Standard for Methane Emissions Performance.
• 73% reduction in year-end outstanding leaks and 29% improvement in year-end discovered leaks in Utility Leak Management.
• Reduction in methane intensity across major operating segments.

Social Achievements

• Creation of four employee resource groups (EDGEFuel, FEMALEFuel, LGBTQ&AlliesFuel, and VETFuel).
• All-time best safety record for OSHA recordable incident metrics for Utility and Pipeline & Storage businesses for the second consecutive year.
• Improvement in Upstream Segment’s employee OSHA recordable incident rate.

Governance Achievements

• Published inaugural Climate Report aligned with TCFD framework.
• 91% independent Board of Directors.
• 27% diverse Board of Directors (includes gender and racial/ethnic diversity).

Climate Goals & Targets

Environmental Challenges

• Reducing the carbon footprint of operations across the value chain.
• Minimizing fugitive methane emissions.
• Improving diversity metrics.

Mitigation Strategies

• Investments in emissions-reducing work practice improvements.
• Leveraging technology enhancements.
• Exploring low-carbon initiatives such as RNG and hydrogen.
• Joining consortiums focused on clean hydrogen.
• Developing and promoting energy efficiency programs.
• Creation of employee resource groups.

Supply Chain Management

Responsible Procurement

• 77% increase in spending with diverse suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe climate events impacting energy reliability and resiliency.

Transition Risks

• Changes in demand for natural gas and natural gas prices.

Opportunities

• Incorporation of low and zero-carbon fuels into existing infrastructure.
• Development of energy-efficient products.

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: Equitable Origin’s EO100™, Project Canary’s TrustWell™, MiQ’s Standard for Methane Emissions Performance

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Stewardship
• Community
• Innovation
• Satisfaction
• Transparency
• Climate-related risks and opportunities
• Emissions reductions
• Waste management
• Diversity and inclusion

Environmental Achievements

• Made further progress toward methane intensity reduction targets, with progress to date ranging from 8.3% to 27.4%, as compared to 2020 baselines.
• 100% of natural gas production certified under Equitable Origin’s EO100™ Standard for Responsible Energy Development.
• 100% of Appalachian natural gas production certified under the MiQ Standard for Methane Emissions Performance at the highest certification level, an “A” grade.
• Supply’s FM100 project entered its first full year of operations, incorporating best-in-class emissions controls.
• Downstream Segment’s Conservation Incentive Program (CIP) resulted in a cumulative total reduction of approximately 1.5 million metric tons of carbon dioxide emissions.

Social Achievements

• Launched Days of Doing, a company-wide service initiative.
• Offered diversity and inclusion training for employees.
• Fostered inclusion through employee resource groups (ERGs).
• Took steps to ensure supplier diversity.
• Implemented diversity-focused recruitment initiatives.

Governance Achievements

• Incorporated the “Rooney Rule” into Corporate Governance Guidelines.
• Implemented a variable pay program for salaried employees that mirrors at-risk executive compensation goal focused on diversity.
• Enhanced climate-risk disclosure in line with the TCFD framework.
• Implemented a robust business continuity program.
• Established a Regulatory Compliance Assurance Program (RCAP).

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to severe weather.
• Regulatory changes at the federal, state, and local levels impacting system modernization and emissions regulations.
• Project opposition limiting growth opportunities.
• Decreased demand for natural gas due to renewable energy adoption.
• Financial counterparty restrictions for carbon-intensive industries.

Mitigation Strategies

• Weather-hardened infrastructure.
• System modernization and implementation of best management practices.
• Engagement with stakeholders and addressing their concerns.
• Exploring alternative low- and zero-carbon fuel sources (RNG, hydrogen).
• Developing a long-term plan (LTP) to address climate-related risks and opportunities.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct Policy
• Labor & Human Rights Policy
• Accelerated payment terms for diverse suppliers (pilot program)

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Shifts in climate patterns

Transition Risks

• Policy and regulatory changes
• Project opposition
• Decreased demand for natural gas
• Financial counterparty restrictions

Opportunities

• Resource efficiency improvements
• Leveraging alternative energy sources (RNG, hydrogen)
• Developing new sustainable products/services

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: Equitable Origin’s EO100™, MiQ Standard for Methane Emissions Performance

Third-party Assurance: Independent third-party verification of emissions data (Appendix C)

Sustainable Products & Innovation

• RNG
• Hydrogen

Awards & Recognition

• AGA “Trailblazer Award”

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Stewardship
• Community
• Diversity, Equity and Inclusion
• Climate Change

Environmental Achievements

• Reduced consolidated greenhouse gas emissions by more than 5% and consolidated methane emissions by more than 17% compared to the 2020 baseline.
• Exploration and Production business surpassed its initial 2030 methane intensity reduction target of 40% achieving 48.5% reduction.
• Gathering and Exploration and Production businesses achieved and maintained responsibly sourced gas designations.
• Upstream Segment's Surface Footprint Neutral Program restored one acre of land for every acre disturbed.
• Downstream and Midstream Segments' Pollinator Program enhanced and expanded monarch butterfly habitats on rights-of-way.

Social Achievements

• Days of Doing event where approximately a third of the workforce volunteered, donating more than 2,300 hours.
• Diverse representation in leadership development programs surpassed diverse salaried-employee representation.
• High levels of customer satisfaction and exceptionally low rates of customer complaints.

Governance Achievements

• Independent third-party verification of emissions data.
• Internal audit review prior to publication.
• Implementation of the TCFD recommendations.

Climate Goals & Targets

Environmental Challenges

• Climate-related transitional risks including policy and regulatory changes, project opposition, and decreased demand for natural gas.
• Regulatory changes at the federal, state, and local levels.
• Potential for higher costs for the Company in the form of uncollectible accounts due to external factors impacting affordability.

Mitigation Strategies

• ERM program, strategic planning process, and capital spending decision process to consider climate-related risks and opportunities.
• Development of specific teams focused on Hydrogen, CCUS, RNG, and Geothermal.
• Implementation of various customer service programs including budget billing and extended deferred payment plans.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct Policy
• Labor & Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks

• More frequent and severe weather events
• Long-term shift in climate patterns

Transition Risks

• Regulatory and legislative initiatives
• Decreased demand for natural gas due to renewable energy adoption

Opportunities

• Modernize existing equipment to minimize emissions
• Leverage alternative energy sources
• Explore leveraging existing infrastructure to transport alternative low-carbon fuels

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: Equitable Origin EO100™, MiQ Standard for Methane Emissions Performance

Third-party Assurance: Tetra Tech, Inc.