Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Transition and succession
• Talent attraction and retention
• Reliability and safety of assets
• Safety of employees
• Customer experience and affordability
• Culture

Environmental Achievements

• Reduced GHG emissions from fossil fuel-based electricity generation by 14.1% from 2017-2019
• Reduced gross GHG emissions by 13.3% from 2017-2019
• Retired Asbury coal-fired generation plant, reducing GHG emissions by approximately one million metric tons of CO2e
• Construction underway for 1.6 GW pipeline of wind and solar projects

Social Achievements

• Employee engagement improved by 5% in 2019 to 68%
• Achieved new lows in Recordable Incident and Lost Time Injury Frequency rates in 2019
• Rolled out Customer First initiative to improve customer experience

Governance Achievements

• Established an Office of Sustainability
• Published first TCFD aligned disclosure in 2020
• Sustainability performance is an essential component of leadership compensation practices

Climate Goals & Targets

Environmental Challenges

• Reduced demand for services due to COVID-19
• Managing the impacts of climate change on business

Mitigation Strategies

• Five-year plan to invest $9.2 billion into regulated utilities and new renewable energy projects remains on track
• Engaged external consultants to develop a climate-change disclosure in line with TCFD recommendations
• Implemented COVID-19 response measures to ensure continued safe and reliable delivery of services

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD

Certifications:

Third-party Assurance: KPMG

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 11 (Sustainable Cities and Communities)
• SDG 13 (Climate Action)

Algonquin focuses on SDGs that align with areas where its business can make the greatest positive impact.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• #10 Corporate Knights’ Global 100 Most Sustainable Companies
• Inclusion in S&P TSX Composite ESG Index
• Bloomberg Gender Equality Index

Environmental Metrics

ESG Focus Areas

• Transition to a low-carbon economy
• Climate resiliency
• Energy reliability
• Public health and safety
• Customer experience and affordability
• Talent attraction and retention

Environmental Achievements

• Reduced total scope 1 and 2 emissions by 31% since 2017
• Reduced Midwest operations emissions by 33% from 2017 to 2020
• Reduced California-based operations emissions by 38% from 2017 to 2020
• Retired Asbury coal plant 15 years ahead of schedule
• Added 1,418 MW of renewable generation capacity (with an additional 414 MW under construction) by August 31, 2021

Social Achievements

• Exceeded 30% women in leadership roles (32.81% as of August 31, 2021)
• Increased J.D. Power Customer Satisfaction Score by 21 points from 2019 to 2020
• Reduced employee turnover from 9.68% in 2019 to 7.40% in 2020
• Raised over $200,000 for United Way in 2020
• Successfully embedded ESG metrics into the 2020 Corporate Scorecard

Governance Achievements

• Embedded sustainability into the compensation model
• Achieved 56% completion of building a robust compliance framework by the end of 2020
• Published a TCFD-aligned disclosure (2020 Climate Change Assessment report)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Climate change impacts (wildfires, extreme weather)
• Maintaining data quality and quantity for ESG reporting
• Achieving top-quartile customer service and employee engagement scores

Mitigation Strategies

• Developed a phased framework for returning employees to the office
• Implemented wildfire mitigation plan (vegetation management, infrastructure hardening, PSPS)
• Procured ESG data software to streamline data collection and reporting
• Implemented Customer First program and various employee engagement initiatives

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Growth in renewable energy
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive Option, SASB, UN SDGs

Certifications:

Third-party Assurance: KPMG (limited assurance for GHG emissions)

UN Sustainable Development Goals

• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 15

Initiatives align with SDGs related to gender equality, clean water and sanitation, affordable and clean energy, decent work and economic growth, industry, innovation, and infrastructure, reduced inequalities, sustainable cities and communities, responsible consumption and production, climate action, and life on land.

Sustainable Products & Innovation

• Renewable natural gas
• Community solar

Awards & Recognition

• 2020 AWEA Safety and Health Recognition Award
• National Safety Council Award
• 2020 Canadian Gas Association’s Safety Award for Excellence
• 2020 American Gas Association Industry Leader Accident Prevention Award
• 2020 Tallac Achievement Award

Environmental Metrics

ESG Focus Areas

• Climate Change

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GHG Protocol

Third-party Assurance: Chartered Professional Accountants, Licensed Public Accountants

Environmental Metrics

ESG Focus Areas

• Climate resiliency
• Energy efficiency
• Water management
• Talent attraction and retention
• Customer experience
• Diversity, equity, and inclusion
• Community support and economic development
• Ethics and integrity
• Risk management
• Sustainable procurement
• Greenhouse gas emissions
• Transitioning to a low-carbon economy
• Land use and biodiversity
• Waste and materials management
• Cybersecurity
• Governmental affairs and public policy

Environmental Achievements

• Reduced GHG emissions by more than one million metric tons from 2017 levels.
• Achieved 65.9% renewable generation capacity.
• Saved approximately 22 million liters of water at the State Line power generation plant through hydrolysis technology.
• Kodiak Prairie restoration project received Wildlife Habitat Council Conservation Certification.
• Planted more than 4,000 trees.

Social Achievements

• Exceeded 30% women in leadership roles (31.49%).
• Achieved a J.D. Power CSAT score of 699.
• Achieved 70% employee engagement score.
• Employees volunteered over 10,697 hours through Liberty Days.
• Launched Liberty Foundations, a two-year rotational program for early-career professionals.
• Launched a Spanish website for West Region customers.

Governance Achievements

• Embedded ESG metrics into the compensation model.
• Published a TCFD-aligned disclosure.
• Completed 87% of the Robust Compliance Framework initiative.
• 50% of independent directors are women.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on infrastructure and operations.
• Supply chain disruptions.
• Evolving cybersecurity threats.
• Rising inflation and energy prices impacting customer affordability.
• Challenges related to water resource management (Long Island Aquifer).

Mitigation Strategies

• Investing in grid hardening and modernization.
• Developing alternative sourcing strategies.
• Strengthening cybersecurity programs and employee training.
• Implementing energy efficiency and water conservation programs.
• Collaborating on Long Island Aquifer revitalization initiatives.

Supply Chain Management

Responsible Procurement

• Supplier sustainability requirements
• Focus on diverse suppliers (exceeded target in California).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Floods
• Droughts
• Wildfires

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of renewable energy projects
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: ISO 45001 (Chile)

Third-party Assurance: Chartered Professional Accountants

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 6 (Clean water and sanitation)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 5 (Gender equality)
• Goal 15 (Life on land)
• Goal 9 (Industry, innovation, and infrastructure)

Report details how initiatives contribute to these goals.

Sustainable Products & Innovation

• Renewable natural gas (RNG) projects
• EV charging infrastructure

Awards & Recognition

• EEI Emergency Response Award (BELCO)
• AGA safety achievement awards
• CGA safety achievement award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion
• Governance

Environmental Achievements

• Reduced Scope 1 and 2 greenhouse gas emissions by more than one million tonnes since 2017 (41% reduction)
• Improved efficiency of electricity generation from fossil fuels
• Reduced fugitive emissions from leak-prone natural gas pipes through infrastructure upgrades
• Brought 434 MW of new renewable generation online
• Replaced 17% of unprotected gas pipeline

Social Achievements

• Employees volunteered a record 11,155 hours
• Maintained industry-leading safety record, recognized with the American Gas Association’s Safety Achievement Award
• Celebrated 10 years without a lost-time injury in renewable generation business

Governance Achievements

• Published first Fighting Against Forced Labour and Child Labour in Supply Chains Act report
• Enhanced ESG and climate governance through clarity of governance and oversight, quantified ESG expertise, and training and education

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Climate-related physical risks (wildfires, severe storms, floods, droughts)
• Transition risks (regulatory changes, market shifts)

Mitigation Strategies

• Wildfire Mitigation Plan, microgrids for outage avoidance, infrastructure upgrades, aquifer preservation and recharging, conservation programs
• Infrastructure upgrades, systemwide redundancies, critical incident response programs, improved customer awareness on energy conservation
• Developing alternative sourcing strategies (implied)
• Building physical and transitional resilience across the business without sacrificing affordability and reliability of services

Supply Chain Management

Responsible Procurement

• Code of Business Conduct and Ethics
• Supplier Code of Conduct
• Policy on Procurement

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Severe storms
• Floods
• Droughts

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products (implied)

Reporting Standards

Frameworks Used: GRI Standards: Comprehensive option, SASB Framework for electric, water, and gas utilities, TCFD recommendations, UN SDGs

Third-party Assurance: KPMG LLP (limited assurance for Scope 1, 2, and three Scope 3 emission categories)

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 6: Clean water and sanitation
• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation, and infrastructure
• Goal 10: Reduced inequalities
• Goal 11: Sustainable cities and communities
• Goal 12: Responsible consumption and production
• Goal 13: Climate action
• Goal 15: Life on land

Awards & Recognition

• American Gas Association’s Safety Achievement Award (multiple years)
• MSCI ESG rating of AAA (Industry Leader)