Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Climate change and regulatory and legislative developments in the energy industry related to climate change may in the future adversely affect operations and financial results.
• Warmer temperatures could lead to lower gas volumes and revenues and lack of marketing opportunities.
• More frequent and severe weather events could increase costs to repair damaged facilities and restore service to customers.
• Inability to deliver natural gas to customers would impact financial results by lost revenues, and the Utilities would have to seek approval from regulators to recover restoration costs.
• New legislation or regulations mandating a substantial reduction in greenhouse gas emissions could result in increased compliance costs or additional operating restrictions, affect the demand for natural gas or impact the prices charged to customers.

Mitigation Strategies

• The Utilities work actively to reduce the impact of wholesale natural gas price volatility on their costs by strategically structuring their natural gas supply portfolios to increase their gas supply availability and pricing alternatives. They may also use derivative instruments to hedge against significant changes in the commodity price of natural gas.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• more frequent and more severe weather events

Transition Risks

• regulatory or legislative changes to address climate change

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Achieved a 43% reduction in methane emissions in 2020 from reported 2005 levels (5.7% reduction from reported 2019 levels) from our gas utility operations.
• Leaks per 1,000 system miles decreased by 19% from FY19. This marks a 66% reduction in leaks over the last five years.
• Invested $300 million in infrastructure upgrades, replacing 318 additional miles of aging infrastructure.
• Missouri customers lowered carbon emissions, producing 10,682 metric tons less CO2e in 2020 than in 2019.

Social Achievements

• Matched nearly $500,000 in new and increased customer and employee donations to DollarHelp, and helped raise nearly $1.9 million to help thousands of families and small businesses.
• Expanded assistance programs, providing nearly $740,000 to qualifying residential and small business customers in Alabama and Missouri.
• Donated $250,000 to food-relief and meal service programs.
• Helped families receive $1 million in energy assistance from a variety of sources.
• Donated 150 laptops to students in limited-income areas.
• Invested $5.9 million in communities in health and human services, civic and community development, education, environmental sustainability and disaster relief.
• Raised $1.2 million in a virtual United Way campaign.

Governance Achievements

• Appointed the first Head of Environmental Commitment.
• Actively supported the enactment of the PIPES Act of 2020.
• Formalized and adopted Environmental Policy and Principles.
• Joined ONE Future—a natural gas industry coalition focused on improving the management of methane emissions.

Climate Goals & Targets

Environmental Challenges

• Coronavirus pandemic impacting communities and employees.
• Aging infrastructure leading to methane emissions and leaks.

Mitigation Strategies

• Implemented a coronavirus emergency leave policy.
• Provided field workers with personal protective equipment.
• Instituted a flexible work-from-home policy.
• Invested in infrastructure upgrades and replacements.
• Implemented aggressive pipeline and infrastructure replacement programs, leak repair strategies, and a comprehensive damage prevention program.

Supply Chain Management

Responsible Procurement

• Evaluates new suppliers for fit, considering environmental and social factors.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Awards & Recognition

• Newsweek’s list of most responsible companies in the U.S. (two years in a row)
• The Employer Support of the Guard and Reserve (ESGR) Pro Patria Award
• SSD’s Special Ambassador Award

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• People
• Governance

Environmental Achievements

• Reduced methane emissions from gas utilities (mains and services) by 46% from 2005 to 2021.
• Reduced leaks per 1,000 system miles by 35% from FY20, marking a 68% reduction since 2017.
• 21,500 metric ton (MT) CO2e reduction (5.3%) in FY21 compared to FY20.

Social Achievements

• Surpassed social investment target with over $6.5 million, a 22% increase over FY20.
• Nearly 1,200 employees volunteered nearly 9,000 hours in FY21 through Day for Good.
• Offered energy efficiency programs to help customers save energy and money.

Governance Achievements

• Formally assigned oversight of sustainability to specific committees of the Board of Directors.
• Maintained a Board of Directors that is 50% female and 20% racially diverse.
• Regularly reviewed governance practices and updated policies.

Climate Goals & Targets

Environmental Challenges

• Aging infrastructure leading to methane emissions and leaks.
• Need to improve workforce diversity.
• Climate change posing risks and opportunities.

Mitigation Strategies

• Investing nearly $1 billion in pipeline infrastructure upgrades since 2017.
• Implementing advanced leak detection technology (drones, etc.).
• Developing a four-part strategic framework for creating an inclusive culture.

Supply Chain Management

Responsible Procurement

• Supplier Code of Business Conduct
• Supplier Connect platform
• Doing Business with Spire handbook

Climate-Related Risks & Opportunities

Transition Risks

• Policy and legal changes
• Technology changes
• Market changes
• Reputational risks

Opportunities

• Improving business operations
• Creating business resiliency
• Renewable natural gas (RNG) and hydrogen

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB

Awards & Recognition

• Newsweek’s “Most Responsible Companies” (3 consecutive years)
• Mobile Chamber of Commerce’s 2021 Minority Business Advocate

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• People
• Governance

Environmental Achievements

• Reduced CO2e by 6.3% compared to 2021 baseline
• Achieved 19.5% leak reduction per 1,000 system miles of distribution pipelines compared to FY21
• Replaced 255 additional miles of aging infrastructure
• Achieved 0.108% methane intensity for the distribution segment
• Reduced GHG emissions by 10% through energy efficiency programs compared to 2021

Social Achievements

• Increased percentage of racially diverse employees by 3.4%—with a 2.2% increase in female employees
• Connected customers with more than $27 million in federal, state and Spire energy assistance funding
• Increased employee volunteer hours by 45% over FY21 levels
• Donated more than $5.9 million to support our communities
• Launched first-ever mentoring program

Governance Achievements

• Enhanced succession planning framework for officers and other leaders
• Refined Board oversight over ESG efforts and commitments
• Ratified five labor agreements

Climate Goals & Targets

Environmental Challenges

• Aging infrastructure leading to methane emissions and leaks
• Excavation damage to pipelines
• Meeting stakeholder expectations on ESG
• Supply chain challenges affecting sustainable product sourcing

Mitigation Strategies

• Pipeline upgrades program
• Damage prevention program (811)
• Formalized sustainability oversight within the Board
• Implementing the Smart Sourcing initiative to improve supply chain efficiency and reduce costs
• Proactive stakeholder engagement
• Developing a climate action plan
• Pilot program using mobile temporary compression to reduce methane emissions during pipeline maintenance

Supply Chain Management

Supplier Audits: Questionnaire administered by an outside partner covering ESG topics

Responsible Procurement

• Smart Sourcing initiative
• Commitment to supplier diversity (WBENC corporate member)
• Supplier Code of Business Conduct

Climate-Related Risks & Opportunities

Transition Risks

• Policy, legal, technology, market, reputational changes

Opportunities

• Development of alternative energy sources (RNG, hydrogen)

Reporting Standards

Frameworks Used: GRI, SASB, NGSI, ONE Future, TCFD

Third-party Assurance: ERM Certification & Verification Services Incorporated (limited assurance on methane emissions reduction)

Sustainable Products & Innovation

• RNG
• Certified natural gas

Awards & Recognition

• Newsweek’s “Most Responsible Companies” (four years in a row)

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• People
• Governance

Environmental Achievements

• Reduced CO2e emissions by 4.7% compared to 2022
• Achieved a 13% leak reduction per 1,000 system miles of distribution pipelines compared to 2022
• Replaced more than 173 additional miles of aging infrastructure

Social Achievements

• Increased percentage of racially diverse employees by 4%
• Connected customers with more than $33 million in federal, state and Spire energy assistance funding
• Logged more than 14,000 employee volunteer hours, an increase of 6% over FY22 levels
• Introduced a Parental Leave Policy

Governance Achievements

• Appointed three new directors to the board, including one female director
• Named our first vice president of sustainability
• Established a Sustainability Council to ensure alignment and coordination of sustainability initiatives across the company

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (although not experienced in 2023)
• Aging infrastructure leading to methane leaks
• Customer affordability of gas

Mitigation Strategies

• Pipeline upgrades and infrastructure replacement program
• Leak detection and repair programs
• Customer assistance programs (DollarHelp, Budget Billing, Cold weather plan, etc.)
• Energy efficiency programs (Pay As You Save)

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Smart Sourcing initiative
• Commitment to supplier diversity

Climate-Related Risks & Opportunities

Transition Risks

• Policy, legal, technology, market, reputational changes

Opportunities

• Development of RNG and hydrogen

Reporting Standards

Frameworks Used: GRI, SASB, NGSI, ONE Future, PHMSA, TCFD

Third-party Assurance: ERM Certification & Verification Services Incorporated (limited assurance on methane emissions reduction)

Awards & Recognition

• Newsweek’s “Most Responsible Companies” (five years in a row)