Climate Change Data

Environmental Metrics

ESG Focus Areas

• Stakeholder and Indigenous relations
• Workforce diversity and inclusion
• Health and safety
• Asset integrity and process safety
• Greenhouse gas (GHG) emissions
• Community investment

Environmental Achievements

• Implemented key technologies to reduce GHG emissions (details on specific technologies provided in the report, but not quantified achievements)
• Reduced reportable releases for Canadian Propane and U.S. Propane (quantified in the report)

Social Achievements

• Improved Superior Propane’s net promoter score to 64 (highest in history)
• Improved U.S. Propane’s net promoter score to 60
• Zero fatalities in 2020
• Reduced total recordable injury rate (TRIR) by 20% to 3.55
• Reduced days away restricted duty or was transferred incident (DART) rate by 19% to 2.32
• Increased utilization of digital customer platform by 27%
• 600 employees completed Indigenous awareness training
• Launched Indigenous Relations Policy
• Increased women in executive officer positions to 27%
• Increased women in corporate and functional leadership positions to 40%
• Voluntary turnover rate decreased to 12%

Governance Achievements

• Established Board oversight of sustainability matters through four standing board committees
• Revised Board Diversity Policy to include designated groups
• Sustainability is integrated into corporate-wide management systems and processes

Climate Goals & Targets

Environmental Challenges

• Increased GHG emissions due to acquisition activity and a 10% increase in the U.S. fleet
• Challenges with data consistency and sustainability-related reporting system standardization between Canadian and U.S. operations

Mitigation Strategies

• Implementing cost-saving initiatives to maintain financial strength in response to the anticipated impact from COVID-19 on revenue
• Actively working to improve data consistency and reporting system standardization
• Integrating acquisitions and implementing routing efficiencies to decrease GHG emission intensity in the U.S.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Propane as a cost-effective alternative fuel

Awards & Recognition

• Finalist for top investor relations within the utilities sector (IR Magazine)
• Ranked in the top 50 of investor relations programs in Canada

Environmental Metrics

ESG Focus Areas

• Health and safety
• Asset integrity and process safety
• Energy and greenhouse gases
• Governance
• Employees
• Communities
• Indigenous relations

Environmental Achievements

• Converted 1,330 customer homes from heating oil to propane

Social Achievements

• Implemented diversity and inclusion initiatives, including mandatory training
• Maintained employee salaries during quarantine and offered paid time off for vaccinations
• Reallocated resources to focus on recruitment, engagement, communications, training, and onboarding to support employee retention
• Provided $474,253 in support to not-for-profit organizations

Governance Achievements

• Introduced an environmental, social and governance (ESG) goal as one of non-financial metrics included in the short-term incentive plan to link ESG performance to executive compensation
• 8 out of 9 Directors are independent
• 22.2% females on the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Increase in incidents, primarily in early 2021, resulting in higher TRIR, TIR, and DART rates
• Pandemic restrictions impeded face-to-face engagement with field employees
• High employee turnover due to labor shortages and competition
• Decline in Net Promoter Scores

Mitigation Strategies

• Revitalizing the driver safety program
• Adopting a formal root cause investigation methodology
• Enhancing hazard identification and assessment tools
• Reallocating resources to focus on recruitment, engagement, communications, training, and onboarding
• Rolling out an enhanced health benefits program in Canada
• Implementing a new onboarding module and Applicant Tracking module
• Reviewing customers’ journey and experiences to evaluate opportunities for improvement

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased severity of extreme weather
• Sustained precipitation and higher temperatures

Transition Risks

• Policy and Legal changes
• Technology substitution
• Market shifts
• Reputation changes

Opportunities

• Development of energy-efficient products
• Alternative and lower carbon energy opportunities

Reporting Standards

Frameworks Used: SASB Gas Utilities and Distributors Standard, TCFD framework

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable propane
• Green hydrogen

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• GHG Emissions and Climate Change
• Health, Safety, and Wellness
• Community Relations
• Diversity & Inclusion
• Workforce
• Regulatory and Government Relations
• Indigenous Relations
• Energy Access and Affordability
• Asset and Transportation Safety

Environmental Achievements

• Helped reduce end-use emissions footprint of customers by an estimated 41,000 tCO2 in 2022 through conversions to propane.
• Invested over $3 million in emergency shutdown upgrades and equipment with automatic features to support asset integrity.

Social Achievements

• Achieved five-year low record for Total Recordable Injury Rate (TRIR), Transportation Incident Rate (TIR), and Days Away, Restricted Duty or Transferred (DART) Incident Rate.
• Launched Promise Date Applications, a new digital functionality for customers to place orders and confirm delivery dates.
• Supported 12,575 customers in assistance programs in the U.S.

Governance Achievements

• Established an ad hoc Information Technology (IT) Committee in 2021 to oversee the development and implementation of the IT strategic plan.
• Introduced ESG-related metrics into executive compensation (10% of select senior executive’s short-term incentive payments).

Climate Goals & Targets

Environmental Challenges

• Driver shortages due to competition with other industries and higher qualification requirements.
• Higher turnover of customer call center operators due to a tight labor market.
• Increased commodity costs impacting customer satisfaction.
• Climate-related risks such as extreme weather events causing service disruptions and potential shifts in customer demand towards lower-emission products.
• Reputational risks associated with climate change and the transition to a low-carbon economy.

Mitigation Strategies

• Focus on employee value proposition and employee feedback to improve employee experience.
• Implementation of infrastructure upgrades and specialized training to reduce reportable releases.
• Strategic acquisitions and partnerships to diversify fuel mix into alternative, lower-carbon fuels (Certarus acquisition).
• Digital tools to optimize operations and decrease emissions.
• Active implementation of climate-related mitigation plans, including investigating opportunities to reduce GHG emissions and pursuing alternative and lower-carbon energy opportunities.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, high winds, ice events)

Transition Risks

• Regulatory changes (carbon pricing, clean energy standards)
• Market shifts (customer demand for lower-emission products)

Opportunities

• Diversification into alternative, lower-carbon fuels (hydrogen, RNG, rDME)

Reporting Standards

Frameworks Used: GRI, TCFD, SASB

Third-party Assurance: MICONE Consulting Inc.

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

Superior's initiatives contribute to these goals through various programs and practices related to safety, employee development, energy access, economic growth, infrastructure development, and climate action.

Sustainable Products & Innovation

• Renewable propane
• rDME
• Hydrogen
• RNG

Environmental Metrics

ESG Focus Areas

• GHG Emissions and Climate Change
• Health, Safety, and Wellness
• Community Relations
• Diversity, Equity and Inclusion
• Workforce
• Regulatory and Government Relations
• Indigenous Relations
• Energy Access and Affordability
• Asset and Transportation Safety

Environmental Achievements

• Total Scope 1 and 2 GHG emissions of 157,869 tCO2e
• Helped our customers reduce their emissions by 377,402 tonnes of carbon dioxide equivalent (“tCO2e”) by switching to lower-carbon fuels
• Wholesale division began the process of replacing a portion of its third-party trucking with rail, reducing transportation-related emissions and increasing reliability of supply
• Proactive asset integrity program resulted in significant improvement in environmental releases
• Ten reportable releases, a significant drop from 27 releases in 2022

Social Achievements

• Five-year low in TRIR and DART rate
• 72% engagement score in our annual employee survey
• Implemented a refreshed diversity, equity and inclusion (“DE&I”) strategy
• Increased representation of women on our Board and in leadership roles
• Successfully negotiated three new collective bargaining agreements
• $0.9 million donated to communities across our operating areas

Governance Achievements

• Significant refreshment of Board and Executive team
• Achieved target of 30% Directors who self-identify as women; set new diversity target of having at least one ethnically or racially diverse board member by the time of our annual general meeting of shareholders in 2026
• Compensation tied to environmental, social and governance (“ESG”)-related metrics
• Developed and implemented Supplier Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Extreme weather events may result in service disruptions and delays
• Evolving consumer preferences towards even lower-emission products could affect demand for propane
• Risk of fossil fuel litigation regulatory exposure, and supply chain disruptions
• Increased upstream costs of oil and natural gas as geopolitical issues continue to strain global supply chains
• Shift in stakeholder perception of propane to lower emitting products
• Increased stakeholder attention and negative feedback on hydrocarbons

Mitigation Strategies

• Actively implementing climate-related mitigation plans, exploring opportunities to reduce GHG emissions, enhance efficiency across the business and seeking alternative, lower carbon energy options
• Diversified our business geographically and across customer segments and with our increasing diversification into low carbon energy solutions
• Strategic acquisitions and partnerships will create opportunities for Superior to continue to provide lower carbon transition fuels to customers across North America
• Through our acquisition of Certarus, we have introduced additional low carbon fuels to our distribution system, including compressed natural gas, renewable natural gas and hydrogen
• Our Alternative Fuels Group is aggressively exploring other lower carbon fuels and renewables and the opportunities they may present for our business
• Upholding the highest service of asset integrity and transportation safety
• Implementing a new incident investigation process
• Increasing in-person safety observations, discussions and coaching for employees and managers

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (floods, ice storms)
• Sustained precipitation and higher temperatures

Transition Risks

• Policy and legal risks (carbon pricing, clean energy standards)
• Technological risks (integration of new technologies)
• Market risks (decline in consumption of petroleum products, increased upstream costs)

Opportunities

• Opportunities from climate change as customers work to reduce their carbon emissions
• Exploring alternative fuel options like lower carbon propane and investing in the growth of RNG and hydrogen markets

Reporting Standards

Frameworks Used: GRI, TCFD, ISSB, SASB

Third-party Assurance: MICONE Consulting Inc.

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 11
• SDG 13

See page 14-16 for details

Sustainable Products & Innovation

• CNG
• RNG
• Hydrogen
• Renewable propane
• Renewable Dimethyl Ether (rDME)