Climate Change Data

Environmental Metrics

ESG Focus Areas

• Governance
• Safety
• Environment
• Communities & Customers
• Employees
• Water & Wastewater

Environmental Achievements

• On track to meet or exceed a voluntary carbon savings goal of 30% by 2035 from 2015 emission levels.
• Lowest ratio of leak-repairs per mile of pipe among natural gas utilities in the US in 2018 (according to S&P Global).

Social Achievements

• 100% increase in employees self-identifying as Black, Indigenous, or People of Color (BIPOC) since 2000.
• Consistently high scores in J.D. Power Gas Utility Residential and Business Customer Satisfaction Studies.
• Over $1.2 million given to local nonprofits in 2019.
• 45% increase in purchases from Minority, Woman, or Veteran Owned businesses since 2014.

Governance Achievements

• 100% of active employees participated in online cybersecurity and information security training in 2019.
• NW Natural’s ethics and compliance program received a national award for Best Ethics and Compliance Program (Small and Mid-Cap) in 2018.

Climate Goals & Targets

Environmental Challenges

• Climate change
• Maintaining affordable service for customers

Mitigation Strategies

• Investing in renewable natural gas (RNG) and hydrogen gas initiatives.
• Implementing energy efficiency programs.
• Offering a voluntary carbon offset program for customers.
• Focusing on efficient operations.

Supply Chain Management

Responsible Procurement

• Purchasing from verified Minority, Woman or Veteran Owned businesses

Climate-Related Risks & Opportunities

Opportunities

• Procuring renewable natural gas resources
• Integrating power-to-gas or hydrogen into the system

Reporting Standards

Frameworks Used: EEI/AGA

Awards & Recognition

• Best Ethics and Compliance Program (Small and Mid-Cap) for the 2018 Corporate Governance Awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy
• Energy Efficiency
• Supplier Diversity
• Community Involvement

Environmental Achievements

• Funding approximately 174,000 metric tons in emission reductions in 2020 through the Smart Energy program; over a million metric tons of CO2e emissions reductions since 2007.
• Average NW Natural residential customer has cut their emissions in half since 1970; projects emissions to be cut by another 50% or more by 2050 from 2020 levels.

Social Achievements

• Introduced a new diversity, equity and inclusion strategy focused on people, partners, customers, and community.
• Addresses community-related issues through their Public Affairs and Environmental Policy Committee.

Governance Achievements

• Established a Sustainable Financing coordination group composed of representatives from various departments, reporting to the CEO.
• Portion of executives’ compensation tied to achieving safety metrics; board of directors regularly reviews company safety metrics.

Climate Goals & Targets

Environmental Challenges

• Minor involvement in fossil fuels (less than 5% of total turnover).

Mitigation Strategies

• Developing energy efficiency and offset projects; lowering the carbon intensity of products and services through renewable natural gas (RNG) use; providing resilient and reliable energy supply; keeping energy affordable; voluntary 30% carbon savings goal by 2035 (based on 2015 emissions).

Supply Chain Management

Responsible Procurement

• Supplier diversity program; use of ISNetworld’s contractor management services for contractors conducting critical activities.

Climate-Related Risks & Opportunities

Physical Risks

• Flood
• Drought
• Sea rise
• Storms
• Coastal erosion

Opportunities

• Development of renewable natural gas (RNG) and hydrogen projects; energy efficiency improvements.

Reporting Standards

Frameworks Used: ICMA’s Green Bond Principles 2021, ICMA’s Social Bond Principles 2021

UN Sustainable Development Goals

• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 13

Eligible Categories are likely to contribute to these SDGs through renewable energy development, energy efficiency programs, green buildings, and supplier diversity initiatives.

Sustainable Products & Innovation

• Renewable natural gas (RNG)
• Hydrogen
• Gas heat pumps
• Zero-net energy homes
• Fuel cells