Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Safe and Great Place to Work
• Strong Corporate Governance

Environmental Achievements

• Reduced electric generation emissions by 28% since 2005 (as of December 31, 2020), working towards a 45% reduction by 2030.

Social Achievements

• Created the Diversity and Inclusion Taskforce in 2020.

Governance Achievements

• Created an executive management Sustainability Committee in 2021 to support the execution of, and make recommendations to advance, the corporation’s environmental and sustainability strategy.

Climate Goals & Targets

Environmental Challenges

• Understanding and assessing a range of potential future scenarios and pathways related to climate change.
• Maintaining safe, reliable and affordable service for customers while reducing carbon emissions.

Mitigation Strategies

• Completed climate-related scenario analysis for electric generation operations.
• Establishing corporatewide carbon emission intensity reduction goals in 2023.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Renewable energy integration

Reporting Standards

Frameworks Used: SASB (Engineering & Construction Services, Construction Materials), EEI/AGA, TCFD

Awards & Recognition

• 50/50 Women on Boards® recognition
• Women’s Forum of New York recognition
• 2021 Environmental Champions (Cascade Natural Gas)
• 2021 ENERGY STAR® Market Leader Award (Intermountain Gas)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced carbon dioxide emission intensity from its coal-fired electric generation resource fleet by approximately 28% since 2005.
• Reduced total greenhouse gas emissions from its electric generation from 2,789,942 metric tons in 2005 to 2,274,960 metric tons in 2020 (more than an 18% reduction).
• Energy efficiency programs saved customers more than 1.4 million kilowatt hours in 2020, annually avoiding more than 1,000 metric tons of carbon dioxide-equivalent emissions.
• Replaced more than 25,585 lights with energy-saving LED lights, annually avoiding more than 13,000 metric tons of carbon dioxide-equivalent emissions.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Significant advancements in clean-energy technology and new technologies not yet developed are required to achieve net-zero carbon emissions by 2050.
• Intermittent nature of low-carbon renewable generation requires backup, on-demand generation resources.
• Policy actions intended to reduce greenhouse gas emissions may impact capital expenditures and revenues.
• Technology changes may impact electric generation options.
• Climate change could impact commodity prices, global energy markets, supply chains, labor markets, and availability and pricing of goods, materials and equipment.
• ESG performance can influence customer and community perceptions.
• Acute physical risks (extreme weather events) and chronic risks (longer-term shifts in climate patterns).

Mitigation Strategies

• Conducting climate scenario analysis to understand how the company’s electric generation fleet may need to evolve.
• Evaluating a range of decarbonization pathways for its electric generating fleet and purchased power.
• Investing in renewable energy resources and battery storage technologies.
• Retiring coal-fired power plants.
• Deploying novel technologies such as carbon capture, utilization and sequestration on fossil-fired power plants.
• Increasing investment in energy efficiency measures.
• Expanding decarbonization measures to reduce exposure to policy actions.
• Participating in energy infrastructure and transmission grid reliability working groups and education and training opportunities.
• Developing and testing robust plans to counter physical and cyber-related threats.
• Incorporating climate change-related impacts into Integrated Resource Plans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity or frequency of extreme weather events like summer and winter storms
• Sustained higher temperatures that may cause heat waves, droughts

Transition Risks

• Policy risks (impact on capital expenditures and revenues, cost recovery of decarbonization)
• Technology risks (impact on electric generation options)
• Market risks (impact on commodity prices, global energy markets, supply chains)
• Reputation risks (ESG performance influencing customer and community perceptions)

Opportunities

• Investments in new technologies to decarbonize the electric generation fleet may increase revenues.
• Growth in electric demand from electrification of other sectors could increase infrastructure investments and grow revenues.
• Opportunities to modernize aging transmission infrastructure, improving system resilience and enhance reputation and reliability.

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Corporate Governance
• Environmental Stewardship
• Employee Safety
• Community Engagement

Environmental Achievements

• Reduced greenhouse gas emissions intensity by approximately 40% as of the end of 2022 from owned generating facilities (progress toward a 45% reduction target by 2030 compared to 2005 levels).
• Set a near-term methane emissions intensity reduction target of 25% by 2030 (compared to the 2020 rate) at its natural gas pipeline business.
• Set a methane emissions reduction target of 30% by 2035 (compared to 2022 levels) for its natural gas utility segment.
• Tracked corporate-wide Scope 1 and Scope 2 greenhouse gas emissions to establish a baseline.

Social Achievements

• Tied executive officer incentive compensation to diversity, equity, and inclusion results.
• Joined the CEO Action for Diversity and Inclusion Pledge.
• Implemented a human resource information system that better reports data across business segments.
• Established a Vendor Code of Conduct.

Governance Achievements

• Annual election of all directors.
• Majority voting for directors.
• Separate board chair and CEO.
• Annual board and committee self-evaluations.
• Risk oversight by full board and committees.
• Active investor outreach program.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to severe weather events and climate change policies.
• Increased insurance premiums due to climate change.
• Revised or new environmental laws and regulations.
• New technological changes required for emerging low-carbon energy solutions.
• Potential reputational impacts due to social pressures on the natural gas industry.
• Governmental mandates for increased renewable energy sources.

Mitigation Strategies

• Developing severe weather mitigation strategies.
• Emphasis on pre-fabrication practices.
• Working with vendors and customers on water management.
• Identifying alternative production processes that use less water.
• Seeking M&A opportunities in new markets.
• Evaluating supplier and vendor relationships.
• Additional review on insurance policies.
• Reducing fuel usage and using more fuel-efficient vehicles.
• Making energy sustainability a pillar of core business operations.
• Working with industry groups and partners to develop technological advancements.
• Working with industry groups, federal and state agencies, and regulators on developing sound regulatory processes.

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Drought conditions
• Temperature extremes

Transition Risks

• Emissions regulations
• Policy actions to reduce greenhouse gas emissions
• Technological changes
• Reputational impacts
• Governmental mandates for renewable energy

Opportunities

• Increased demand for natural gas
• Opportunities to work with renewable energy sources
• Development of low-carbon energy solutions
• Growth in electric demand
• Modernization of aging infrastructure
• Development of RNG and hydrogen

Reporting Standards

Frameworks Used: SASB (Engineering & Construction Services), EEI (Electric Utility), AGA (Natural Gas Utility & Pipeline), TCFD

Awards & Recognition

• 2022 Environmental Champions (Cascade Natural Gas)
• 2021 Energy Star® Market Leader Award (Intermountain Gas)
• Emergency Response Award (Montana-Dakota Utilities)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance
• Environmental Stewardship
• Social Responsibility
• Safety

Environmental Achievements

• Achieved an 11% reduction in methane emissions from the natural gas distribution segment (target of 30% by 2035 compared to 2022)
• Achieved a 38% reduction in electric generation greenhouse gas emissions intensity since 2005 (target of 45% by 2030 compared to 2005 levels)
• Added renewable natural gas (RNG) to Cascade Natural Gas’ system

Social Achievements

• Implemented Energize Diversability program to bring people with disabilities into the workplace
• Maintained top-tier J.D. Power customer satisfaction rankings
• Donated $2.1 million to communities and reported 7,694 volunteer hours by employees

Governance Achievements

• Updated incentive compensation recovery/clawback policy
• Robust ethics reporting program with a third-party managed anonymous hotline
• Board oversight of risk management including climate-related risks

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on infrastructure and operations (severe weather, economic impacts, regulatory changes)
• Supply chain disruptions due to climate change and policy actions
• Meeting GHG emission reduction targets

Mitigation Strategies

• Severe weather mitigation strategies
• Development of alternative sourcing strategies
• Investment in new technologies for emission reduction
• Implementation of RNG and hydrogen blending projects
• Proactive replacement of older pipelines

Supply Chain Management

Responsible Procurement

• Vendor Code of Conduct (Everus)

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events
• Droughts
• Floods
• Extreme temperatures

Transition Risks

• Increased energy costs
• Regulatory changes
• Supply chain disruptions
• Changes in customer demand

Opportunities

• Increased demand for storm response and energy restoration services
• Growth in renewable energy projects
• Development of low-carbon energy solutions

Reporting Standards

Frameworks Used: TCFD, SASB, EEI, AGA

Sustainable Products & Innovation

• Renewable natural gas
• Electric vehicle charging stations
• Energy-efficient building designs

Awards & Recognition

• Liberty Mutual Safety Innovation Award
• J.D. Power customer satisfaction awards