Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customers
• Building a Grid for the Future
• Powering Economies
• Using Resources Responsibly
• People & Potential

Environmental Achievements

• 77% reduction in total recordable injuries since 2009
• 94.5% spill recovery rate
• Approximately 62 hectares planted with pollinator-friendly plants
• $8.6 million invested in environmental management, prevention and remediation

Social Achievements

• 92% customer satisfaction with call centre agent service
• $47 million in bill savings for customers
• $1.24 million donated by employees to local charities
• 500,000 hours of training
• 20% annual increase in Indigenous procurement spending
• Launched Get Local Indigenous program
• Launched Winter Relief Program

Governance Achievements

• Improved billing accuracy to 99%
• Established Indigenous Relations Department
• Implemented a new framework for Indigenous relations
• Achieved Sustainable Energy Company designation from the Canadian Electricity Association

Climate Goals & Targets

Environmental Challenges

• Extreme weather events impacting more than 10% of customers
• Aging assets undermining reliability
• Large and thinly populated distribution area making outage repairs challenging
• Need to reduce GHG emissions
• Increasing female representation in the workforce

Mitigation Strategies

• Investing in research to better manage extreme weather risks
• Investing in grid renewal and innovation
• Investing in remote monitoring and control systems
• Implementing telematics technology across all lines of business
• Implementing a Diversity and Inclusion strategy
• Launching MARC (Men Advocating Real Change) program
• Launching Women in Trades, Technology and Engineering Network (WTTE)

Supply Chain Management

Responsible Procurement

• Indigenous Procurement Procedure
• Revised purchasing policies and procedures to make Hydro One easier to do business with

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Ontario's cap and trade program

Opportunities

• Renewable energy integration

Reporting Standards

Frameworks Used: GRI, ISO 14001, OHSAS 18001

Certifications: Sustainable Energy Company (Canadian Electricity Association)

Awards & Recognition

• Sustainable Energy Company designation from the Canadian Electricity Association

Environmental Metrics

ESG Focus Areas

• Climate Change and Extreme Weather
• Indigenous and Community Partnerships
• Diversifying Talent

Environmental Achievements

• Reduced Scope 1 emissions by almost 3% from 2018 baseline by repairing equipment leading to less SF₆ leaks and through fleet initiatives.
• Reduced Scope 2 emissions by 5% from 2018 baseline primarily due to reduced line losses as a result of weather changes.
• Avoided 8,075 tCO2e of emissions as a result of renewable energy technology, conservation programs, and increased e-billing.

Social Achievements

• Increased procurement spending with Indigenous businesses to $41.3 million (highest ever annual Indigenous spend).
• Achieved Catalyst Accord commitments of gender diversity and launched a diversity and inclusion council.
• Trained over 200,000 young people through Building Safe Communities program.
• Achieved almost 90% customer satisfaction with Indigenous customers.

Governance Achievements

• Received Sustainable Electricity Company brand re-designation from the Canadian Electricity Association.
• Established a corporate-wide sustainability committee led by senior management.
• Increased transparency in ESG reporting.

Climate Goals & Targets

Environmental Challenges

• Increase in serious injuries across the workforce, including a fatality.
• Equipment failures and severe weather hindering the ability to achieve distribution SAIDI target.

Mitigation Strategies

• Established a safety improvement team to eliminate incidents resulting in injuries.
• Implemented human success program training for field supervisors.
• Improved safety data collection, reporting, audits, and assessments.
• Distribution system modernization to improve outage response times and minimize impacts.
• Advancing vegetation management program to reduce tree-related outages.

Supply Chain Management

Supplier Audits: Biannual reviews using vendor embargo review tool.

Responsible Procurement

• Supplier code of conduct
• Increased procurement from Indigenous businesses

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Core Sustainability Reporting Standards, SASB, Canadian Electricity Association’s (CEA) Sustainable Electricity Company™ designation

Third-party Assurance: GHD Limited

Awards & Recognition

• Forbes Canada’s Best Employers
• Corporate Knights’ Best 50 Corporate Citizens
• CEA’s Continuous Performance Improvement Award
• OEA Customer Service Award
• Workplace Diversity and Inclusion Award

Environmental Metrics

ESG Focus Areas

• Diversity, Equity and Inclusion
• Climate Change Mitigation and Adaptation
• Indigenous and Community Partnerships

Environmental Achievements

• Launched innovative joint venture Ivy Charging Network™ (Ivy) to support a greener transportation sector.
• Electricity Distributors Association awarded Hydro One with an Environmental Excellence Award for supporting Ontario’s biodiversity through its Pollinator Habitat Program. More than 125 hectares of restored habitat have been created since 2015.
• Avoided approximately 7,560 tCO2e of emissions as a result of renewable energy technology, conservation programs, the expansion of the Ivy network and the increase of customers choosing the e-billing option.

Social Achievements

• Recognized by Forbes on its list of Canada’s Best Employers for 2021 for the sixth consecutive year.
• Edison Electric Institute presented Hydro One with an Emergency Response Award for its restoration efforts following a severe wind storm.
• Increased total procurement spending with Indigenous businesses to $42 million.
• Canadian Council for Aboriginal Business advanced Hydro One to a Silver level certification in its Progressive Aboriginal Relations program.

Governance Achievements

• Surpassed Catalyst Accord commitment to achieve at least 30% female board members.
• Established the Board’s new Indigenous Peoples, Safety & Operations Committee.
• Enhanced the Board’s governance structure to recognize the importance of regulatory and public policy matters within the electricity sector.

Climate Goals & Targets

Environmental Challenges

• Tragic loss of one employee in 2020 to a third-party motor vehicle incident.
• Increased number of inspections by environmental regulatory agencies.
• Challenges in achieving hiring goals for Indigenous employees.
• Increased overdue accounts receivable reflecting the financial burden of the COVID-19 pandemic on customers.

Mitigation Strategies

• Launched an employee-led Safety Improvement Team to improve safety culture and eliminate life-altering serious injuries and fatalities.
• Implemented a multi-year safety implementation plan based on the Safety Improvement Team's recommendations.
• Implemented an assurance of supply strategy to mitigate the impacts of COVID-19, including procuring additional inventory and securing PPE.
• Developed a five-year sourcing plan to address security of supply by diversifying the supply base.
• Implemented specific relief programs for commercial customers struggling with bill payments, including returning security deposits and providing payment flexibility.
• Undertaking a systemic review of hiring processes to improve outcomes for Indigenous employees.

Supply Chain Management

Responsible Procurement

• Updated supplier code of conduct to align with international best practices, including the International Labour Organization’s guidelines.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather conditions and natural disasters damaging infrastructure.

Transition Risks

• Changes in climate change policy, regulatory changes.

Opportunities

• Increased electricity demand due to electrification of transportation, buildings, and industry.
• Growth in providing greener solutions and products to manage energy efficiency and usage.
• Expansion of EV charging network infrastructure.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: GHD Limited

Sustainable Products & Innovation

• Ivy Charging Network™

Awards & Recognition

• Forbes Canada’s Best Employers
• Edison Electric Institute Emergency Response Award
• Electricity Distributors Association Environmental Excellence Award
• Canadian Council for Aboriginal Business Silver level certification

Environmental Metrics

ESG Focus Areas

• Safety
• Greenhouse Gas Emissions
• Waste Management
• Community Investment
• Customer Satisfaction
• Diversity and Inclusion

Environmental Achievements

• Reduced Scope 1 GHG emissions from 169,199 tCO2e in 2021 to 149,995 tCO2e in 2022
• Increased total solid waste recycled from 8,767 tonnes in 2021 to 10,297 tonnes in 2022

Social Achievements

• Reduced total recordable injury rate per 200,000 hours worked from 0.74 in 2021 to 0.62 in 2022
• Increased employee volunteer hours from 4,315 in 2021 to 7,482 in 2022
• Reduced employee turnover rate from 5.3% in 2021 to 6.1% in 2022
• Increased average number of learning and development hours per employee from 45.9 in 2021 to 49.1 in 2022

Governance Achievements

• Increased executive diversity, particularly women representation (from 30.6% in 2021 to 32.5% in 2022)

Climate Goals & Targets

Environmental Challenges

• Maintaining a safe working environment
• Reducing greenhouse gas emissions
• Improving customer satisfaction

Mitigation Strategies

• Implementing safety programs and training
• Investing in renewable energy and energy efficiency initiatives
• Improving communication and service delivery

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: null

Certifications: null

Third-party Assurance: KPMG LLP (limited assurance for selected indicators), GHD Limited (verification of GHG emissions data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Clean Energy
• Energy Efficiency
• Clean Transportation
• Biodiversity Conservation
• Socio-economic Advancement of Indigenous Peoples

Environmental Achievements

• Allocated $1,872.8 million (CAD) from Green Bonds to Clean Energy and Energy Efficiency projects.

Social Achievements

• Allocated $248.2 million (CAD) from Sustainable Bonds to Socio-economic Advancement of Indigenous Peoples projects.

Governance Achievements

• Engaged KPMG LLP for an independent limited assurance engagement on the allocation of proceeds.

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Hydro One Limited Sustainable Financing Framework

Third-party Assurance: KPMG LLP