Climate Change Data

Environmental Metrics

ESG Focus Areas

• Greenhouse Gas Emissions
• Air Quality
• Ecological Impacts
• Employee and Contractor Health and Safety
• Competitive Behavior
• Prevention of Corruption and Bribery
• Operational Safety
• Community Relations
• Security, Human Rights, and Rights of Indigenous Peoples
• Climate-related risks and opportunities

Environmental Achievements

• Over the past three years, our emission reductions totaled over 5 million metric tons of CO2e.
• Preserving and enhancing biodiversity is an important component of our construction and operations efforts.
• Recognition for our environmental policies and practices include several WHC Conservation Certifications and a project award, the City of Tucson’s Tree Champion Award, and the 2017 Verdantix EHS Innovative Technology Award.

Social Achievements

• Over the past three years, our employee health and safety incident rates improved from 1.2 to 1.0 total recordable injuries per 100 employees and our contractor rates improved from 0.9 to 0.8.
• We integrate a culture of safety and emergency preparedness throughout our organization.

Governance Achievements

• To identify, assess, and manage ESG regulatory risks we maintain a process for identifying, communicating, and verifying compliance with changes in applicable regulatory requirements. Over each of the last three years, we evaluated on average over 1,200 proposed and 480 final new regulations, interpretations, and guidance.

Climate Goals & Targets

Environmental Challenges

• Developing the additional processes, procedures, information technology systems, personnel, and controls necessary to expand our emissions reporting infrastructure to meet the SASB Midstream Standard.
• Public opposition to our projects
• Inclement weather and natural disasters
• Difficulties in obtaining rights-of-way, permits, or other regulatory approvals

Mitigation Strategies

• Engaging with regulators, industry organizations, and NGOs
• Systematic monitoring of regulatory proposals and implementation of compliance programs
• Offsetting, reducing, and managing emissions
• Managing energy use and improving efficiency
• Developing new services
• Business continuity planning
• Environmental assessments and management plans
• Maintaining necessary types and amounts of insurance

Climate-Related Risks & Opportunities

Physical Risks

• hurricanes
• floods
• wildfires
• earthquakes

Transition Risks

• Increased climate change-related regulation and policies
• Substitution of customers’ existing products with lower emission options
• Changing consumer behavior reducing demand for customers’ products
• Stigmatization of sector

Opportunities

• Use of more efficient equipment
• Use of lower-emission sources of energy
• Development and/or expansion of low emission goods and services
• Increase demand for natural gas services
• Participation in renewable energy programs and adoption of energy efficiency measures

Reporting Standards

Frameworks Used: SASB, GRI, CDP

Awards & Recognition

• WHC Conservation Certifications
• City of Tucson’s Tree Champion Award
• 2017 Verdantix EHS Innovative Technology Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Greenhouse Gas Emissions
• Methane Emissions
• Biodiversity
• Community Relations
• Employee Diversity and Inclusion
• Safety
• Governance
• Supply Chain Management
• Human Rights
• Indigenous Peoples' Rights

Environmental Achievements

• Achieved a methane emission intensity rate of 0.03% in 2019, surpassing the 0.31% target years ahead of schedule and avoiding more than six million metric tons of CO2e emissions.
• Reduced energy consumption by approximately 550 GWh in 2019 through the use of drag reducing agents.
• Consumed approximately 1,018 MWh of renewable energy from solar panels in 2019, equivalent to approximately 720 metric tons of CO2 avoided.
• Elizabeth River Project awarded the National Best Restored Shore Award.

Social Achievements

• Employees completed over 192,500 hours of health, safety, and emergency response training in 2019.
• Donated $250,000 to five United Way COVID-19 Relief Funds.
• Houston-area employees volunteered their time to various organizations.
• Kinder Morgan Foundation donated funds to support recovery efforts for colleagues affected by Hurricane Florence and Tropical Storm Imelda.

Governance Achievements

• Established a standing EHS Committee of the Board.
• ESG metrics included in performance criteria for employee incentive compensation.
• Annual training on Code of Business Conduct and Ethics for all employees, including anti-corruption and human rights training.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to global events (economic shock in oil markets, global pandemic, civil unrest).
• Expanding GHG emissions reporting infrastructure to meet SASB Midstream Standard.

Mitigation Strategies

• Pandemic Preparedness Committee and Guide to mitigate risks and minimize impacts.
• Implementing systems to calculate emissions from Scope 1 sources, completing emission calculations for fleet vehicles and electricity usage, and developing procedures for ongoing data collection.

Supply Chain Management

Supplier Audits: 100% of service suppliers subject to performance audits in 2019; 248 suppliers audited.

Responsible Procurement

• Code of Business Conduct and Ethics
• Supplier screening using ISNetworld
• Risk-ranking scorecard for service suppliers
• Contractor Environmental/Safety Manual

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Floods
• Wildfires
• Extreme weather events

Transition Risks

• Increased climate change-related regulation
• Substitution of products with lower emission options
• Changing consumer behavior
• Reputational risks

Opportunities

• Expanding natural gas transmission business
• Increasing efficiency along value chains
• Exploring new low-carbon technologies
• Carbon sequestration

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, CDP

Certifications: LEED Gold (Houston headquarters), Cal/VPP Star site (Lomita Terminal)

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance)

UN Sustainable Development Goals

• Goal 3
• Goal 7
• Goal 13
• Goal 8
• Goal 9
• Goal 14
• Goal 15

Contribution to SDGs described in Section 1.0 Introduction.

Awards & Recognition

• National Best Restored Shore Award (Elizabeth River Project)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Stewardship
• Safety
• Diversity & Inclusion
• Community Relations
• Governance

Environmental Achievements

• Reduced methane emission intensity for natural gas transmission and storage assets to 0.04% in 2020, surpassing the 2025 target of 0.31% set in 2016.
• Donated over 1,300 acres of land to the Balcones Canyonlands National Wildlife Refuge, expanding habitat for the endangered Golden-Cheeked Warbler.
• Spent over $10 million on land purchases and biodiversity offsets to protect the Golden-Cheeked Warbler.

Social Achievements

• Successfully transitioned to a virtual work platform during the pandemic, maintaining operations and minimizing impacts to employees.
• Increased minority employee representation and female representation in management over the past three years.
• Formalized an expectation for leadership to enhance diversity and equality of opportunity in hiring, development, and promotion decisions.
• Joined the Houston Minority Supplier Development Council to diversify the supplier and contractor network.
• Donated $250,000 to COVID-19 response and recovery programs.

Governance Achievements

• Board of Directors oversees risks and opportunities through recurring meetings and committees.
• Regular reporting of ESG performance to the Board and investors.
• Certain ESG metrics are included in performance criteria for employee incentive compensation.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic requiring operational adjustments and safety measures.
• Supply chain disruptions.
• Extreme weather events (e.g., Hurricane Harvey, Winter Storm Uri).
• Potential for increased climate-related regulations and market shifts.

Mitigation Strategies

• Implemented health screenings, social distancing, and PPE provision during the pandemic.
• Developed alternative sourcing strategies.
• Business continuity planning and emergency preparedness.
• Investing in lower-carbon energy sources and technologies.
• Engaging with regulators and stakeholders.

Supply Chain Management

Supplier Audits: 569 service suppliers audited in 2020 (17% coverage)

Responsible Procurement

• Supplier Code of Conduct outlining expectations for environmental, health, safety, and social standards.
• Due diligence on potential and existing suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, floods, wildfires, etc.)
• Rising sea levels

Transition Risks

• Increased climate-related regulations
• Shifting market demand for fossil fuels
• Technological advancements

Opportunities

• Growth in lower-carbon energy sources (RNG, renewable diesel, hydrogen)
• CCUS technologies

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, CDP

Certifications: LEED Gold (Houston headquarters)

Third-party Assurance: PricewaterhouseCoopers LLP (PwC)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation, and Infrastructure
• Goal 14: Life Below Water
• Goal 15: Life On Land

Kinder Morgan's operations and initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Transportation of RNG, renewable diesel, and other lower-carbon fuels.

Awards & Recognition

• America’s Most Responsible Companies 2021

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Environmental Responsibility
• Diversity & Inclusion
• Community Relations
• Governance

Environmental Achievements

• Reduced GHG emissions by approximately 34,000 metric tons of CO2e annually through vapor recovery units.
• Achieved a methane emission intensity rate of 0.03%, exceeding the ONE Future target of 0.31%.
• Conducted annual leak surveys at 100% of natural gas transmission and storage compressor stations.
• Avoided approximately 390 GWh of electricity consumption through the use of drag reducing agents.

Social Achievements

• Implemented a flexible hybrid work model for office-based employees.
• Maintained a strong safety culture, resulting in zero employee and contractor fatalities.
• Achieved 100% completion of assigned training courses in the LMS.
• Expanded the implementation of the SIM® program to eliminate sprain and strain injuries.
• Donated land to the city of Perth Amboy, New Jersey for park expansion.

Governance Achievements

• Established an energy transition ventures group to pursue lower carbon commercial opportunities.
• Regularly reports ESG performance to the Board and investors.
• Links certain ESG metrics to employee incentive compensation.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to extreme weather events (e.g., Hurricane Ida, Winter Storm Uri).
• Public opposition to projects.
• Managing climate-related risks and opportunities across various time horizons.
• Difficulty in calculating and reporting Scope 3 emissions.

Mitigation Strategies

• Business continuity planning and emergency preparedness.
• Enhanced community relations activities.
• Systematic monitoring of regulatory proposals and implementation of compliance programs.
• Investing in lower carbon fuels infrastructure.
• Evaluating the feasibility of reporting Scope 3 emissions in the future.

Supply Chain Management

Supplier Audits: 503 service suppliers audited (15% of total)

Responsible Procurement

• Supplier Code of Conduct
• Due diligence on potential and existing suppliers
• Use of ISNetworld for service supplier screening.

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Wildfires
• Flooding
• Extreme weather events

Transition Risks

• Increased climate change-related regulation
• Technological changes
• Shifting market demand
• Reputational risks

Opportunities

• Expanding natural gas transmission and storage business
• Pursuing opportunities to reduce emissions
• Exploring new low-carbon technologies and business models
• CCUS
• RNG
• Renewable fuels and feedstocks
• Hydrogen

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, CDP

Certifications: ISO 14064-1:2006, LEED Gold

Third-party Assurance: PwC

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 14: Life Below Water
• Goal 15: Life On Land

Alignment with SDGs explained in Section 1.0 Introduction

Sustainable Products & Innovation

• Responsibly sourced natural gas
• RNG
• Renewable diesel
• Sustainable aviation fuel

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Environmental Responsibility
• Diversity & Inclusion
• Community Relations
• Governance

Environmental Achievements

• Reduced operational Scope 1 emissions by approximately 2.6% from 2021 to 2022.
• Approximately 139 Bcf of methane emission reductions in the U.S. since 1993 (equivalent to approximately 75 million metric tons CO2e).
• Captured and injected approximately 126 thousand metric tons of CO2e from CCUS at Snyder Gas Plant.
• Avoided approximately 337 GWh of electricity consumption through the use of DRA (equivalent to approximately 239,000 metric tons of CO2e emissions avoided).

Social Achievements

• 38% of executive officers are female or minority.
• Implemented SIM® program to reduce sprain and strain injuries.
• Completed 142 thousand hours of health, safety, and emergency response training (average of 13 hours per employee).
• Expanded implementation of Connect.Inspire.Give. volunteer program.
• Kinder Morgan Foundation issued grants to 36 organizations.

Governance Achievements

• Board oversees ESG matters through its EHS Committee.
• ESG metrics are included in performance criteria for employee incentive compensation.
• Annual Code of Conduct training for all employees.

Climate Goals & Targets

Environmental Challenges

• Geopolitical disruptions, severe weather, supply chain uncertainty.
• Electrifying the natural gas-fired compressor fleet is not economically feasible.
• Calculating and reporting Scope 3 emissions is complex.
• Potential for increased GHG emissions due to proposed EPA GHGRP amendments.

Mitigation Strategies

• Implementing cost-effective emission reduction strategies (improving emissions monitoring, reducing pipeline blowdowns, upgrading equipment, modifying operating processes).
• Investing in lower carbon fuel opportunities (renewable diesel hubs, renewable natural gas platform).
• Focusing on methane emission reduction strategies (maintenance and repairs on leaks, minimizing blowdowns, using sleeves, advanced technologies).
• Evaluating and potentially implementing other methane emission reduction technologies.
• Improving energy efficiency (demand response programs, optimizing pipeline and facility design, using DRA, LED lighting).

Supply Chain Management

Supplier Audits: 501 service suppliers audited (14% of total)

Responsible Procurement

• Supplier Code of Conduct
• Due diligence on potential and existing suppliers
• Use of ISNetworld for service supplier screening.

Climate-Related Risks & Opportunities

Physical Risks

• Severe storms
• Wildfires
• Floods
• Droughts
• Extreme heat/cold
• Rising sea levels

Transition Risks

• Increased climate change-related regulation
• Higher emission fees and carbon taxes
• Reduced demand for traditional services
• Increased project expansion costs
• Shifting consumer preferences

Opportunities

• Increased demand for natural gas services to support renewable energy
• Growth in RNG, renewable diesel, and other lower-carbon fuels
• CCUS opportunities

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, CDP

Certifications: ISO 14064-1:2006, LEED Gold

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance)

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 14: Life Below Water
• Goal 15: Life On Land

Company's mission and activities align with these SDGs.

Sustainable Products & Innovation

• Responsibly sourced natural gas
• RNG
• Renewable diesel
• Sustainable aviation fuel

Awards & Recognition

• International Liquid Terminals Association Platinum Safety Award
• Responsible Care® Partner Company

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity & Inclusion
• Community Relations
• Human Rights
• Supply Chain Management

Environmental Achievements

• Reduced methane emissions by approximately 8% from 2021 to 2023.
• Methane emission intensity rate in 2023 was approximately 90% lower than the target and 93% lower than the 2012 industry rate.
• Avoided approximately 310 GWh of electricity consumption through the use of drag-reducing agents in 2023.
• Consumed approximately 1,020 MWh of renewable energy from solar panels in 2023.

Social Achievements

• Hosted the first Diverse Supplier Showcase to promote supplier diversity.
• 35% of participants in leadership training programs and 34% of executive officers were female or a minority in 2023.
• Added Amy Chronis to the Board, increasing gender and minority diversity to 31% in 2024.
• Employees completed 133,000 hours of health, safety, and emergency response training in 2023 (average 12 hours per employee).

Governance Achievements

• Board and Environmental Health and Safety Committee oversee GHG emissions and reduction strategies.
• ESG-related policies reviewed and approved by the ESG Disclosure Committee.
• Certain EHS-related ESG metrics are included in performance criteria used to determine incentive compensation for employees, including executives.

Climate Goals & Targets

Environmental Challenges

• Feasibility of setting medium- and long-term GHG reduction targets due to technological and economic limitations.
• High cost of replacing natural gas-fired compressors with electric compressors.
• Reliability concerns associated with electric compressors and dependence on local utilities.
• Complexity of calculating and reporting Scope 3 emissions.

Mitigation Strategies

• Established the Greenhouse Gas Reduction Opportunities Working Group (GROW group) to identify and evaluate additional GHG emission reduction opportunities.
• Focus on minimizing methane emissions through various strategies.
• Evaluating government incentives for GHG emission reductions.
• Evaluating the feasibility of reporting Scope 3 emissions in the future.

Supply Chain Management

Supplier Audits: 563 service suppliers audited (17% of total)

Responsible Procurement

• Supplier Code of Conduct
• Due diligence on potential suppliers
• Monitoring of supplier compliance

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Wildfires
• Flooding
• Rising sea levels

Transition Risks

• Increased regulation
• Carbon taxes
• Shifting market demand
• Reputational risks

Opportunities

• Growth in lower-carbon fuels (RNG, renewable diesel, hydrogen)
• CCUS
• Expansion of natural gas infrastructure to support renewable energy.

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, CDP

Certifications: ISO 9001, ISO 14001

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 14: Life Below Water
• Goal 15: Life On Land

Kinder Morgan's operations and initiatives contribute to these goals through various activities.

Sustainable Products & Innovation

• Transportation and storage of RNG, renewable diesel, and other lower-carbon fuels.

Awards & Recognition

• ACC Responsible Care® Partner of the Year (2022 and 2023)
• ILTA Safety Excellence Award (2023)