Black Hills Corporation
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:5,037,595 tCO2e/year (Owned Generation + Purchased Power)
Scope 1 Emissions:4,162,245 tCO2e/year
Scope 2 Emissions:11,664 tCO2e/year
Scope 3 Emissions:11,265,101 tCO2e/year
Renewable Energy Share:Over 25% of secured capacity
Water Consumption:704.65 million gallons/year (Consumptive)
Waste Generated:3,300 lbs Hazardous Waste Disposed Of, 35,330 lbs Hazardous Waste Recycled, 1,231,464 lbs Non-Hazardous Waste Recycled
Carbon Intensity:0.65 MT CO2e/Net MWh (Owned Generation + Purchased Power)
ESG Focus Areas
- Environmental Stewardship
- Social Responsibility
- Sustainable Growth
- Corporate Governance
Environmental Achievements
- Reduced electric utilities' greenhouse gas (GHG) emissions intensity by over one-third since 2005
- Achieved nearly 10% reduction in emissions intensity since announcing GHG reduction goals
- Developed a voluntary RNG and carbon offset program to help customers offset emissions
- Brought two new renewable natural gas (RNG) interconnection projects into service
Social Achievements
- Community support totaled $5.3 million in 2021
- Employee giving to United Way totaled over $644,000
- Expanded energy assistance fund provided over $768,000
- Provided over $10 million in energy efficiency rebates to residential and business customers
Governance Achievements
- Integrated corporate planning, sustainability, and ESG under one team
- Utilizing the Task Force on Climate-Related Financial Disclosures (TCFD) to assess climate-related risks and opportunities
- Executive compensation program received a 95% favorable vote from shareholders in 2022
Climate Goals & Targets
Long-term Goals:
- Reduce electric utility emission intensity 70% by 2040
- Achieve Net Zero emissions for natural gas distribution system by 2035
Medium-term Goals:
- Reduce electric utility emission intensity 40% by 2030
- Achieve 80% renewable energy in Colorado by 2030
- Replace all remaining unprotected steel pipe by 2035
Short-term Goals:
- Electrify 20% of on-road fleet by 2030
Environmental Challenges
- Severe weather events impacting operations and construction
- Potential for increased costs due to GHG emission pricing policies
- Reduced customer demand for fossil fuel-based energy
- Potential reputational risks related to climate change
Mitigation Strategies
- Investing in operational improvements, renewable energy, and new technologies
- Implementing damage prevention and advanced leak detection strategies
- Developing a voluntary RNG and carbon offset program
- Modernizing and hardening utility infrastructure
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Increased intensity and frequency of storms
- Severe weather events
Transition Risks
- GHG emission pricing policies
- Reduced customer demand for fossil fuels
- Reputational risks
Opportunities
- Increased capital investment in low/no emissions technologies
- Diversification of products and services
- Investment in electric transmission and distribution systems
Reporting Standards
Frameworks Used: GRI, TCFD, SASB, EEI, AGA, NGSI
Certifications: ISO 14001, ENERGY STAR
Sustainable Products & Innovation
- Voluntary RNG and carbon offset program
- Ready EV rebate program
- Blockchain Interruptible Service Tariff
Awards & Recognition
- Achievers 50 Most Engaged Workplaces
- Cowboy Star VPP safety award
- #1 on InHerSight list for Best Utility Companies to Work For
- Edison Electric Institute Advocacy Excellence Award
- U.S. Dept of Labor Platinum level Medallion Award
- EPA Energy Star Award
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:6,389,508 tCO2e/year (Owned Generation + Purchased Power)
Scope 1 Emissions:4,409,109 tCO2e/year
Scope 2 Emissions:4,288 tCO2e/year
Scope 3 Emissions:10,275,418 tCO2e/year
Renewable Energy Share:25% of generation capacity
Water Consumption:664.45 million gallons/year (Consumptive)
Waste Generated:117,440,064 lbs/year
Carbon Intensity:0.78 MT CO2e/Net MWh (Owned Generation)
ESG Focus Areas
- Environmental Stewardship
- Sustainable Growth
- Social Responsibility
- Corporate Governance
Environmental Achievements
- Reduced electric utility emissions intensity by one-third since 2005
- Added 289 MW of owned and operated wind generation capacity
- Successfully filed and received approval for Green Forward, a voluntary renewable natural gas (RNG) attribute and carbon offset program
- Established Black Hills Energy Renewable Resources, a new business dedicated to bringing RNG to market
- Reduced nitrogen oxide and sulfur dioxide emissions by nearly 80% since 2005
Social Achievements
- Community support totaled $6.1 million in 2022
- Employee contributions to United Way totaled over $757,000
- Black Hills Cares program provided energy assistance to more than 4,600 families
- Provided nearly $9 million in energy efficiency rebates in 2022
Governance Achievements
- Board of directors oversees ESG
- 2022 executive compensation program received a 97% favorable vote from shareholders
- Implemented a Pipeline Safety Management System (PSMS)
Climate Goals & Targets
Long-term Goals:
- Achieve net zero emissions for natural gas distribution system by 2035
Medium-term Goals:
- Reduce electric utility emission intensity by 70% by 2040
- Electrify 20% of on-road fleet by 2030
Short-term Goals:
- Reduce electric utility emission intensity by 40% by 2030
- Reduce excavation damages to 2 HPT by 2023 and 1.5 HPT by 2025
Environmental Challenges
- Growing customer demand
- Ongoing clean energy transition
- Increasingly global energy market
- Rising costs impacting customers
- Climate-related risks (extreme weather, regulatory changes, market shifts)
Mitigation Strategies
- Investing in a reliable, resilient, and cleaner electric grid (including renewable energy and battery storage)
- Advancing the sustainable use of the natural gas system and low-carbon fuels (including RNG and hydrogen)
- Damage prevention strategy using AI to predict risks
- Pipeline replacement with lower-emitting materials
- Expanded leak detection
- Offering Green Forward program to offset emissions
- Investing in transmission opportunities (Ready Wyoming)
Supply Chain Management
Responsible Procurement
- Supplier Code of Conduct
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events
Transition Risks
- Regulatory changes
- Market shifts
- Reduced customer demand for fossil fuels
Opportunities
- Investment in renewable energy
- Development of new products and services
Reporting Standards
Frameworks Used: GRI, TCFD, SASB, Edison Electric Institute (EEI), American Gas Association (AGA), Natural Gas Sustainability Initiative (NGSI)
Certifications: ISO 14001
Sustainable Products & Innovation
- Ready EV program
- Green Forward program
Awards & Recognition
- ENERGY STAR award (Arkansas)