Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Health & Safety
• Employees
• Communities

Environmental Achievements

• Reduced direct greenhouse gas emissions by 24% since 2008.
• Reduced sulphur dioxide emissions by 14% since 2008.
• Improved mercury capture rate by injecting activated carbon into flue gas.
• Successfully tested new process to remove sulphur dioxide emissions from flue gas.
• Opened new energy-efficient operations centres.
• Implemented Combined Heat and Power (CHP) technology, reducing CO2e emissions.
• Reduced water consumption by 9% since 2008.
• Received 2014 Alberta Roadbuilders & Heavy Construction Association’s Environment Award for Elbow River pipeline exposure mitigation project.

Social Achievements

• Employee lost-time injury rate declined by 70% since 2008.
• Recordable injury rate declined by 30% since 2008.
• ATCO EPIC program raised $4.3 million for charitable causes.
• Employees volunteered more than 28,000 hours.
• Increased women in senior management by 29% since 2008.
• Received 2014 Outstanding Corporation Award from the Association of Fundraising Professionals (AFP) for ATCO EPIC program.

Governance Achievements

• Strengthened anti-bribery and anti-corruption policies and programs.
• No corruption incidents recorded.
• No legal actions for anti-competitive behaviour, anti-trust or monopoly practices.
• Two regulatory non-compliance incidents for power generation reliability requirements and two for power market rule compliance, resulting in $15,000 in fines.

Climate Goals & Targets

Environmental Challenges

• Transitioning to low-emitting power solutions that are economically viable.
• Continued effective environmental management of large capital projects and energy transport systems.
• Ensuring ATCO’s safety culture is adopted in expanded operations in new markets.
• Continued monitoring and maintenance of current safety promotion programs that combat routine and complacency.
• Enabling flexible grassroots approaches to community relations while ensuring consistent standards.
• Deferring the rollout of online Indigenous relations training for all employees to 2015.

Mitigation Strategies

• Reduce direct greenhouse gas emissions of current generating capacity by 30% below 2005 levels by 2030.
• Build on plans for the replacement of coal and advance low and zero-emission generation options, including large-scale hydro.
• Tailor safety programs and training to each new operating jurisdiction.
• Find new channels to promote innovation and best practice sharing between ATCO companies and industry peers.
• Develop long-term relationships to create positive impact in new jurisdictions (e.g., Mexico).
• Find effective ways of quantifying community impact.
• Roll out online Indigenous relations training.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• Investment in low-emission generation projects

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• 2013 Award of Planning Merit for Special Studies (Alberta Professional Planners Institute)
• 2014 Outstanding Corporation (Association of Fundraising Professionals)
• 2014 Silver-Level Certification in Progressive Aboriginal Relations (Canadian Council for Aboriginal Business)
• 2014 Leadership Award in Public Safety (Canadian Gas Association)
• 2014 Award of Excellence for training management system (Electricity Human Resources of Canada)
• 2013 SHC Solar Award (International Energy Agency Solar Heating Programme)

Environmental Metrics

ESG Focus Areas

• Communities
• Health & Safety
• Employees
• Environment

Environmental Achievements

• Reduced greenhouse gas emissions by approximately 1.2% from 2008 to 2010 (11,866 to 11,305 kilotonnes CO2e).
• Reduced water consumption slightly from 2008 to 2010 (15.9 to 14.5 million m3).
• Construction of three new environmentally-friendly geothermal buildings, reducing energy consumption by 40% and carbon dioxide emissions by 60 tonnes annually in one instance.
• Drake Landing solar project achieved 80% of yearly space heating through solar energy.

Social Achievements

• Reduced lost-time injury rate by 44% and recordable injury rate by 11% from 2008.
• Several facilities had zero lost-time injuries.
• Celebrating Excellence program engaged over 400,000 students.
• Community investments surpassed $5.8 million in 2010, including employee volunteer hours exceeding 65,000.

Governance Achievements

• No corruption incidents recorded.
• No fines for non-compliance with laws and regulations.
• Implemented an enterprise-wide human resources management system.

Climate Goals & Targets

Environmental Challenges

• A fatality occurred at Kandahar Airfield in Afghanistan.
• Customer privacy breaches totalled 82 in 2009 and 83 in 2010.
• Inability to collect environmental data for all ATCO companies (estimated 90-95% coverage).
• Challenges in achieving zero spills.

Mitigation Strategies

• Implemented corrective measures to prevent similar incidents after the fatality.
• One of our call centre service providers required further clarity regarding privacy requirements; additional controls and increased management involvement were implemented.
• Revised and streamlined environmental reporting to the Board and senior management.
• Focus on operational excellence and asset integrity to minimize spills.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of reduced-emission power plants
• Energy management services

Reporting Standards

Frameworks Used: GRI

Awards & Recognition

• Edison Award (Dover to Whitefish transmission line)
• Alberta Emerald Foundation Award (North Edmonton Operations Centre)

Environmental Metrics

ESG Focus Areas

• Environment
• Health & Safety
• Employees
• Communities

Environmental Achievements

• Reduced greenhouse gas emissions from 2008 to 2012, largely due to decreased energy output from power assets.
• Received the Energy Globe World Award in 2011 for work on the Drake Landing solar-powered community.
• Led development of the electricity sector Water Conservation and Efficiency Plan for the Alberta Water Council.
• Opened two new energy-efficient operating centers in 2011/12 (ATCO Gas/ATCO Electric).
• ATCO Pipelines achieved zero lost-time injuries for 10 consecutive years in 2012.

Social Achievements

• Overall lost-time injury rate declined by more than 50 percent since 2008.
• Received a Disaster Recovery Institute Award for effective response to the Slave Lake Wildfires in 2011 (ATCO Electric).
• ATCO EPIC employee giving set a new record of $3.4 million in 2012.
• Launched ATCO Sustainable Communities, a company focused on meeting the needs of Indigenous communities.

Governance Achievements

• No corruption incidents recorded in the reporting period.
• One environmental administrative penalty of $1,000 received in 2012.
• Customer privacy breaches reduced from 86 in 2011 to 42 in 2012.

Climate Goals & Targets

Environmental Challenges

• Two contractor fatalities in the past two years.
• Ensuring safety training programs reach all workers and contractors.
• Reaching a culturally diverse workforce with safety programs.
• Gaining certainty on emerging air pollutant regulations.
• Transitioning to lower-emitting technologies for power generation.
• Managing large capital projects while replacing aging infrastructure.
• An aging workforce and competitive marketplace for attracting and retaining top talent.
• Communication needs to reach a diverse workforce across several industries and countries.
• Ensuring affected groups are aware of and provide feedback on proposed projects.
• Maintaining consistently high standards for a largely decentralized public engagement function in worldwide operations.
• Further engaging worldwide employees in community giving and volunteerism programs.

Mitigation Strategies

• Stringent focus on enhancing health and safety programs for ATCO and its contractors.
• Providing frontline employees with a more active role in setting direction on safety initiatives.
• Continuing public consultation on the Urban Pipeline Replacement project.
• Continuously improving internal health and safety reporting.
• Continuously improving programs targeting hazard identification and injury reduction.
• Further utilizing social media to attract employees.
• Improving the ability to forecast talent needs to focus recruitment efforts.
• Continuing to evolve the articulation of ATCO’s employee value proposition.
• Continuing to optimize HR processes and systems.
• Continuing to inform and involve affected groups in the Eastern Alberta Transmission Line and Urban Pipeline Replacement projects.
• Further investing in ATCO Sustainable Communities to enhance Aboriginal partnerships.
• Providing online Aboriginal awareness training to all employees.

Supply Chain Management

Responsible Procurement

• Building mutually beneficial commercial relationships with local suppliers.

Climate-Related Risks & Opportunities

Transition Risks

• New Canadian regulations retiring coal-fired generation.

Opportunities

• Leadership role in developing innovative, cost-effective, environmentally responsible solutions.
• Replacing coal plants with clean, renewable resources.

Reporting Standards

Frameworks Used: GRI G3.1

Third-party Assurance: Third-party review of data processes for quality and reasonableness

Sustainable Products & Innovation

• Ecowise™ cabin product (energy-efficient features)
• LED streetlights

Awards & Recognition

• Energy Globe World Award (2011)
• Golden Gecko Certificate of Merit
• Royal Society for the Prevention of Accidents five-star rating
• Disaster Recovery Institute of Canada National Award of Excellence
• Canadian Public Relations Society National Award of Excellence

Environmental Metrics

ESG Focus Areas

• Environment
• Health & Safety
• Employees
• Communities

Environmental Achievements

• Reduced greenhouse gas emissions by 24% from 2008 to 2013.
• Reduced water consumption by 12% from 2008 to 2013.
• Reduced sulphur dioxide emissions by 12% from 2008 to 2013.
• Reduced nitrogen oxides emissions by 9% from 2008 to 2013.
• Reduced carbon monoxide emissions by 13% from 2008 to 2013.
• Improved pipeline efficiency, cumulatively reducing greenhouse gas emissions by 7,500 tonnes per year.
• ATCO Gas CHP program expected to reduce 52,000 tonnes of greenhouse gas emissions over 15 years.
• ATCO Electric opened two new energy-efficient operations centres reducing energy and water consumption by 55 and 30 percent respectively.
• Installed more than 4,200 LED streetlights in Fort McMurray, AB, reducing energy consumption by 55%.

Social Achievements

• Employee lost-time injury rate declined by more than 50% since 2008.
• Total recordable injury rate declined by 11% since 2008.
• Increased employer contribution in Employee Share Purchase Plan (ESPP).
• Sponsored University of Calgary’s Aboriginal Relations Leadership Certificate Program.
• Pledged $4.2 million to more than 500 charitable organizations through ATCO EPIC.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Drake Landing Solar Community received the 2013 International Energy Agency’s Solar Heating and Cooling Programme Solar Award.

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced direct greenhouse gas emissions by 39% since 2008
• Reduced air emissions of nitrogen oxides and sulphur dioxide
• Reduced water consumption by more than 30% since 2008
• Reduced methane emissions by 21% since 2008
• Implemented measures to reduce methane emissions, including replacing pneumatic devices and implementing equipment survey, repair and damage prevention programs
• One recreation facility eliminated 800 tonnes of carbon dioxide (CO2) emissions in 2015 using ATCO-operated CHP technology.
• Saved 700 tonnes of CO2 through an internal fuel efficiency program (equivalent of taking 142 vehicles off the road).

Social Achievements

• ATCO’s employee total recordable injury rate has declined by 40% since 2008, with the employee lost time injury rate declining by more than 80%
• Employees participated in more than 2,000 leadership training courses in 2015.
• Launched a new ATCO Sales Training program and enhanced the Project Management Training program.
• Raised more than $31 million since 2006 for more than 500 charities through the ATCO EPIC program.
• Employees volunteered nearly 20,000 hours in 2015.
• Increased pipelines inspected by 107% (compared to 2012) using in-line inspection tools.

Governance Achievements

• Consultation with landowners, communities, and Indigenous peoples occurred throughout 2015 with the objective of building positive, transparent, long-term relationships.
• ATCO participates in a number of multi-stakeholder groups formed to enhance collaboration.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Energy Stewardship
• Environmental Stewardship
• Safety
• Community & Indigenous Relations

Environmental Achievements

• Reduced direct (Scope 1) greenhouse gas emissions by 39% since 2008
• Reduced venting and fugitive methane emissions from Alberta utilities by 31% since 2008
• Energized Western Canada’s largest off-grid solar project at Saddle Hills Telecommunications Site
• Saved 1,700 MWh through energy-efficient LED lighting
• Avoided 866 tonnes CO2e through fleet initiatives

Social Achievements

• 78% reduction in lost-time injuries since 2008
• 42% reduction in employee total recordable injury rate since 2008
• ATCO EPIC campaign raised $3.3 million for community charities
• More than $21 million in contracts awarded to eight Indigenous communities during Site C clean energy project construction
• Completed Piikani Nation Multi-Purpose Centre

Governance Achievements

• Implemented company-wide customer service training
• Launched Routine Hazard Assessment Review initiative
• Implemented safety alert process
• Standardized safety processes and implemented best practices across electricity generation fleet

Climate Goals & Targets

Environmental Challenges

• Transition to a lower-emitting energy system
• Maintaining existing infrastructure and making timely investments in new facilities
• Balancing community and customer impacts, long-term reliability, price stability, and investor confidence during energy transition

Mitigation Strategies

• Advocating for policy and regulation that account for principles of energy transition
• Engaging in multi-stakeholder discussions
• Investing in capital infrastructure ($1.4 billion in 2016)
• Exploring a range of customer-centric energy solutions (distributed generation, off-diesel projects, demand-side management programs)
• Implementing a fleet telematics system to reduce fuel costs and emissions

Supply Chain Management

Responsible Procurement

• Local sourcing initiatives
• Engagement with Indigenous communities for contracts

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Retrofits and refuelling at existing locations
• Conversion of coal-fired generating units to natural gas
• Combined heat and power (CHP) projects
• Edge-of-grid technologies

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Natural gas-fired distributed power generation solution
• Off-diesel projects
• Demand-side management programs
• Micro CHP units
• Hybrid house project

Awards & Recognition

• Alberta Emergency Management Agency’s Emergency Management Achievement Award
• Edison Electric Institute’s Emergency Recovery Award
• Canadian Gas Association's President's Safety Award for Excellence

Environmental Metrics

ESG Focus Areas

• Energy Stewardship
• Environmental Stewardship
• Safety
• Indigenous & Community Relations

Environmental Achievements

• Reduced direct GHG emissions by 37% since 2008
• Reduced air emissions of nitrogen oxides and sulphur dioxides by more than 36% compared to 2008
• 33% reduction in vented and fugitive methane emissions from Canadian natural gas transmission, distribution and storage networks since 2008
• 100t CO2e/year avoided through building efficiency initiatives from our Jandakot Operations Centre in Western Australia
• Acquired a 35-megawatt (MW) hydroelectric facility in Veracruz, Mexico
• 130,000 Renewable Energy Certificates generated and certified by EcoLogo® through renewable electricity produced by our Oldman River hydroelectric facility in Alberta

Social Achievements

• More than $7.58 million community investments made through gifts-in-kind, sponsorships, donations and employee matching contributions
• 219 total natural gas and electricity safety awareness events hosting more than 3,500 Albertans
• Over 500,000 exposure hours worked with zero lost-time injuries on the Fort McMurray West 500-kV Transmission Project
• Launched a new, online outage notification map for electricity customers
• Deployed a team to support response efforts after Hurricane Maria in Puerto Rico
• Implemented a telematics solution across the entire vehicle fleet, reducing fuel consumption by approximately 1,000,000 litres

Governance Achievements

• Sustainability function reports directly to the President & Chief Strategy Officer
• Audit & Risk Committee reviews risks that could materially affect the ability to achieve strategic objectives
• Each operating division prepares a Stewardship Report for the Audit & Risk Committee

Climate Goals & Targets

Environmental Challenges

• Slight increase in employee and contractor injury rates in 2017 compared to 2016
• Increase in direct GHG emissions in 2017 due to increased electricity production
• Managing environmental impacts associated with pipeline water crossings and construction in muskeg

Mitigation Strategies

• Development of targeted safety initiatives to address increased injury rates
• Implementation of operational efficiencies to reduce environmental impacts from power generation
• Use of isolated open-cut method for pipeline installation in sensitive areas, implementing best water treatment technology and erosion control
• Condensing transmission line construction to two winter seasons to reduce impact on muskeg

Supply Chain Management

Responsible Procurement

• 95% of materials for ATCO Park were locally sourced

Climate-Related Risks & Opportunities

Opportunities

• Renewable natural gas (RNG)
• Hydroelectric generation
• Coal-to-gas conversions

Reporting Standards

Frameworks Used: GRI Standards, 2016

Certifications: EcoLogo®

UN Sustainable Development Goals

• Goal 7: Affordable and clean energy
• Goal 8: Decent work and economic growth
• Goal 11: Sustainable cities and communities
• Goal 13: Climate action

ATCO contributes to all 17 SDGs, but particularly these four through energy and essential services provision

Sustainable Products & Innovation

• Modular structures
• Hybrid energy solutions
• Smart LED lighting
• Renewable natural gas (RNG)

Environmental Metrics

ESG Focus Areas

• Energy Stewardship
• Environmental Stewardship
• Safety
• Indigenous & Community Relations

Environmental Achievements

• 37% reduction in direct GHG emissions since 2008
• 80% reduction in CO2e emissions for an innovative hybrid office building retrofit
• 40% reduction in nitrogen oxides and sulphur dioxide emissions since 2008
• 60% progress towards our goal of completing inspections on natural gas transmission lines by 2024
• 1st electricity generating unit in Alberta to receive permits for full conversion from coal to gas
• 1,000,000L planned reduction in diesel consumption through the use of renewable energy combined with natural gas in two remote communities

Social Achievements

• 35% reduction in employee total recordable incident frequency since 2017
• 36% reduction in employee lost-time incident frequency since 2017
• $7.9M community investments made by ATCO through gifts-in-kind, sponsorships, donations and our matching contribution to the employee-led ATCO Employees Participating in Communities (ATCO EPIC) program.
• 24% reduction in the number of third-party contacts with our natural gas pipelines in the past three years.

Governance Achievements

• Established enterprise risk management process that allows us to identify and evaluate risks and opportunities by both severity of impact and probability of occurrence.

Climate Goals & Targets

Environmental Challenges

• Increased hydrocarbon spill volume in 2018, mainly related to electrical business and third-party incidents.
• Increased non-hydrocarbon spill volume in 2017 (returned to historical average in 2018).

Mitigation Strategies

• Systematic and responsible management of operations; equipment design, training, and operating and maintenance procedures.
• Proactive site and route selection, storm-proofing assets, regular maintenance and appropriate insurance for climate change resiliency.
• Partnership with Picarro to pilot new leak detection technology for natural gas distribution pipelines.

Supply Chain Management

Responsible Procurement

• Indigenous contracting strategies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Renewable energy integration
• Fuel switching
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 11
• Goal 13

Providing access to secure, reliable and affordable energy; promoting employability; contributing to sustainable communities; reducing GHG emissions.

Sustainable Products & Innovation

• Hybrid residential homes
• Integrated energy systems
• Intelligent LED streetlight systems
• Modular housing

Awards & Recognition

• Illumination Award of Excellence for Energy & Environmental Lighting Design

Environmental Metrics

ESG Focus Areas

• Energy Stewardship
• Environmental Stewardship
• Safety
• Community & Indigenous Relations

Environmental Achievements

• 23% reduction in direct GHG emissions in 2019, equal to almost 2.5 million tonnes.
• 775 tonnes of GHG emissions avoided at ATCO operations in 2019 by switching to renewable energy sources.
• Divested entire portfolio of Canadian fossil fuel-based electricity generation assets, eliminating coal from portfolio.

Social Achievements

• 27% reduction in employee lost-time incident frequency in 2019.
• Over 175% increase in voluntary participation by ATCO employees in programs promoting health and wellness in 2019.
• $9.3M invested in communities through gifts-in-kind, sponsorships, donations and our matching contribution to the employee-led ATCO Employees Participating in Communities (ATCO EPIC) program.
• 50 partnerships, joint ventures and relationship agreements with Indigenous communities, generating more than $220 million in economic benefits for our Indigenous partners in 2019.

Governance Achievements

• Established enterprise risk management process that includes climate-related challenges and opportunities.

Climate Goals & Targets

Environmental Challenges

• Increased contractor LTIF and TRIF rates.
• Increase in hydrocarbon spills primarily due to vandalism incidents to electrical transformers.

Mitigation Strategies

• Reviewed incident trending, continued successful health and safety initiatives and introduced additional measures that focused on reversing increases.
• Exploring cost-effective preventative measures to reduce vandalism incidents.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD recommendations

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 11
• Goal 13

As a provider of energy, structures, logistics and other essential services, ATCO contributes to all 17 of the UN Sustainable Development Goals (SDGs).

Sustainable Products & Innovation

• mCHP units
• Renewable natural gas (RNG)

Awards & Recognition

• Emergency Recovery Award from the Edison Electric Institute

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Climate Change & Environmental Stewardship
• Operational Reliability & Resilience
• People
• Community & Indigenous Relations

Environmental Achievements

• Reduced direct greenhouse gas emissions by 90% from 2019 to 2020 (primarily due to the divestment of Canadian fossil fuel-based electricity generation business)
• Reduced direct GHG emissions from retained assets by 17% since 2019
• Reduced methane emissions by 19% since 2019
• Completed Canada’s largest off-grid solar project in Fort Chipewyan, reducing diesel use by approximately 800,000 liters annually
• 23% of global power generation portfolio is now renewables

Social Achievements

• Decreased employee TRIF by 28% and contractor TRIF by 5% compared to 2019
• Over 1,000 employees participated in the global health and well-being initiative
• Pledged over $2.9 million to support hundreds of charities across the globe through ATCO EPIC
• Received the 2020 International Edison Award for the Fort McMurray West 500-kV Transmission Project

Governance Achievements

• Continued to integrate sustainability into enterprise strategy, including investment criteria, mergers, acquisitions, and divestments
• Established a 3-Year Employment Equity Plan in Structures & Logistics business

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and communities
• Floods in Fort McMurray, Alberta
• Bushfires in Australia
• Supply chain disruptions
• Economic impacts of the pandemic

Mitigation Strategies

• Activated Pandemic Response Plan
• Implemented safety protocols
• Monitored and responded to supply chain disruptions
• Provided emergency response services
• Supported communities through various initiatives

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Floods
• Wildfires
• Windstorms

Transition Risks

• Policy, regulatory, market, technology and reputational changes

Opportunities

• Resource efficiency
• Cleaner energy sources
• Innovative products and services
• Access to markets
• Climate change resilience and adaptation

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 14001 (or equivalent)

UN Sustainable Development Goals

• All 17 UN SDGs

ATCO contributes to all 17 UN Sustainable Development Goals.

Sustainable Products & Innovation

• Mobile Health Units
• Modular hospitals
• Hydrogen blending project
• Off-grid solar projects

Awards & Recognition

• 2020 International Edison Award

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Climate Change & Environmental Stewardship
• Operational Reliability & Resilience
• People
• Community & Indigenous Relations
• Governance

Environmental Achievements

• 13% reduction in emissions intensity from 2020 to 2021
• 15% reduction of direct GHG emissions since 2020
• 25% decrease in methane emissions since 2019
• 80% decrease in fugitive emissions since 2020
• Ashcor’s RAM™ technology prevented CO2 emissions of approximately 90,000 tonnes
• Source Energy generated approximately 1,440 MWh of energy from solar sites, equivalent to removing 984 tonnes of CO2e

Social Achievements

• Over 82% of employees participated in our 2021 engagement survey
• Employee and contractor TRIF decreased by nine per cent and 29 per cent, respectively, from 2020
• $3 million raised for charities through our ATCO EPIC campaign
• 30 garden beds constructed and 4,720 meals provided to seniors and veterans as part of ATCO Giving Gardens

Governance Achievements

• 30% female representation on the Board of Directors (meeting 2030 target)
• Establishment of an enterprise-wide Sustainability/ESG Council

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic
• Climate-related risks (transitional and physical)
• Need for grid modernization to accommodate new energy sources
• Maintaining leading health and safety practices and performance

Mitigation Strategies

• Maintaining stocks of critical materials
• Centralized supply chain administration
• Implementing a technology solution to better define information required from suppliers
• Proactive and transparent communication during the COVID-19 pandemic
• Investing in grid modernization and resilience initiatives
• Implementing high-quality prevention programs and encouraging proactive reporting behaviour

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor Conduct Requirements incorporated into vendor contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Policy/regulatory changes
• Market changes
• Technological innovation
• Reputational risks

Opportunities

• Resource efficiency
• Cleaner energy sources
• Innovative products and services
• Access to markets
• Climate change resilience and adaptation

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001 (or equivalent)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 7
• 13

Contributions to UN SDGs are highlighted at the beginning of each section.

Sustainable Products & Innovation

• RAM™ technology
• Clean Energy Innovation Park
• Two Hills RNG Facility

Awards & Recognition

• GRESB five-star rating for Alberta PowerLine’s Fort McMurray West 500-kilovolt Transmission Line

Environmental Metrics

ESG Focus Areas

• Energy Transition
• Climate Change & Environmental Stewardship
• Operational Reliability & Resilience
• People
• Community & Indigenous Relations
• Governance

Environmental Achievements

• Reduced GHG emissions to earnings intensity by 28 per cent.
• Reduced customers’ emissions by 228,000 tonnes carbon dioxide equivalent (tCO2e) cumulatively since 2020.
• Reduced methane emissions by nine per cent since 2020, or almost 25,000 tonnes of CO2e.
• 38 per cent reduction in the total number of spills from the prior year (mostly vandalism to electrical infrastructure).

Social Achievements

• Increased net economic benefits to Indigenous partners by 65 per cent (exceeding the 40% target).
• Maintained a minimum of 30 per cent female representation at the Board of Directors and senior leadership levels (33% and 34% respectively).
• Maintained a minimum of 25 per cent minority representation within the workforce (29%).
• Employee and contractor TRIF decreased by 31 per cent and five per cent, respectively, from 2021.
• $3.6 million raised for charities through the ATCO EPIC campaign.

Governance Achievements

• Revised Board mandates to explicitly include Sustainability and ESG.
• Formed an Executive Sustainability & ESG Committee.

Climate Goals & Targets

Environmental Challenges

• Convoluted and misaligned policy and regulatory environment presenting a significant risk to the energy transition, Indigenous reconciliation, and economic growth.

Mitigation Strategies

• Constructive advocacy for government policies that meet societal needs in pragmatic and affordable ways.

Supply Chain Management

Responsible Procurement

• Vendor Onboarding Project to improve data collection and risk assessments.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Policy/regulatory changes
• Market shifts
• Technological changes
• Reputational risks

Opportunities

• Renewable energy development
• Cleaner fuels
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001

Sustainable Products & Innovation

• Hydrogen blending
• Renewable energy projects
• Energy efficiency services
• Modular construction

Awards & Recognition

• Canada’s Safest Employers Program finalist (Well-being @ ATCO)

Environmental Metrics

ESG Focus Areas

• Corporate governance
• Business ethics
• Responsible supply chain
• Energy transition & climate change
• System reliability & availability
• GHG emissions
• Indigenous relations, economic opportunities & reconciliation
• Public health & safety
• Community engagement & investment
• Human capital development, retention & attraction
• Employee safety & well-being
• Diversity, equity, & inclusion

Environmental Achievements

• Reduced GHG emissions to earnings intensity by 32 per cent from 2020 baseline
• Reduced customers’ emissions by 784,000 tonnes carbon dioxide equivalent (tCO2e) cumulatively since 2020
• 63% of power generation capacity is renewables
• Owned, managed or developed 429 MW of renewable energy by the end of 2023

Social Achievements

• Net economic benefits to Indigenous partners increased 79 per cent from baseline
• Women represent 38 per cent of the Board of Directors, 34 per cent of senior management
• Minorities represent 35 per cent of our workforce
• 70,000 smart meters installed in Alberta
• 600 frontline workers trained and actively participated in MoveSafe
• $128M in Indigenous net economic benefit
• $10.2M invested in communities through gifts in-kind, sponsorships, donations

Governance Achievements

• Updated Vendor Conduct Requirements
• Updated Code of Ethics explicitly prohibiting modern slavery
• Released initial 2023 Modern Slavery Report
• Executive compensation program based on operational objectives, people leadership, and long-term sustainable growth

Climate Goals & Targets

Environmental Challenges

• Balancing the need for access to affordable, reliable energy while transitioning to a cleaner energy system
• Fluctuating demand from ATCO Australia’s natural gas power generation
• Increase in extreme weather events
• Cybersecurity threats
• Supply chain disruptions

Mitigation Strategies

• Investing in cleaner fuels, renewable energy, energy infrastructure and storage, energy efficiency, and carbon credits and offsets
• Advancing GHG reduction initiatives and operational efficiencies
• Proactive risk assessment utilizing sophisticated data, scenarios, and risk assessments
• Comprehensive cybersecurity systems and processes
• Robust emergency preparedness and response plans
• Vendor onboarding program designed to address risks such as labour conditions

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Vendor onboarding program
• Vendor Conduct Requirements
• Due diligence for high-risk regions

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Wildfires

Transition Risks

• Policy/regulatory changes
• Market shifts
• Technological advancements
• Reputational risks

Opportunities

• Resource efficiency
• Cleaner energy sources
• Innovative products and services
• Access to markets
• Resilience

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, ISSB

Certifications: ISO 90001, ISO 45001, ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

As a provider of essential services, we contribute to the United Nations’ (UN) Sustainable Development Goals (SDG).

Sustainable Products & Innovation

• Renewable natural gas
• Hydrogen
• Hydrogen blending
• Smart meters
• EV charging stations
• Prefabricated modular units

Awards & Recognition

• Canadian Gas Association recognition for “Don’t dig blindfolded” campaign
• Government of Canada’s Outstanding Commitment to Employment Equity Award