Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Economic impact
• Emissions
• Health and safety
• Energy management
• Business ethics
• Water management
• Compliance

Environmental Achievements

• Reduced over 78,000 MTCO2e through energy-efficiency programs
• Reduced excavation damages by 18% since 2019
• Delivered 28 million therms of natural gas for vehicles in place of diesel – the equivalent of avoiding more than 59,000 metric tons of GHG emissions
• Reduced total system leaks by nearly 1/10th while more than doubling the size of its distribution infrastructure over the past 30 years.

Social Achievements

• Decreased Days Away, Restricted or Transferred (“DART”) rate by 24% at Centuri
• Launched six Employee Resource Groups (“ERGs”) at Centuri and three at Southwest Gas
• Spent $184 million with diverse suppliers at Centuri and $163 million at Southwest Gas
• Achieved an average overall customer satisfaction rating of 95% over the past five years

Governance Achievements

• Increased female representation on Board to 55%
• Strengthened ESG governance through the hiring of a dedicated sustainability officer at Southwest Gas
• Formed a new ESG Working Group to execute companywide strategies and goals more efficiently and effectively

Climate Goals & Targets

Environmental Challenges

• Attracting and retaining top talent
• Meeting community needs
• Reducing GHG emissions
• Cybersecurity threats
• Climate-related risks

Mitigation Strategies

• Advancing several diversity, equity and inclusion (“DE&I”) programs
• Continuing community giving through the Southwest Gas Foundation, employee contributions and volunteering
• Implementing innovative energy solutions, like renewable natural gas (“RNG”) and compressed natural gas (“CNG”), and testing hydrogen blending and production
• Developing robust security programs and employing state-of-the-art safeguards to protect information
• Conducting a gap analysis across the TCFD’s four core elements and assessing alignment with recommendations

Supply Chain Management

Responsible Procurement

• Supplier diversity program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Policy, legal, technology and market changes

Opportunities

• Development of energy-efficient products
• Renewable natural gas
• Hydrogen

Reporting Standards

Frameworks Used: AGA Sustainability Template, SASB Gas Utilities & Distributors and Engineering & Construction Services standards, GRI Universal Standards, TCFD framework

Third-party Assurance: Climate Registry (partial)

UN Sustainable Development Goals

• 4: Quality education
• 5: Gender equality
• 7: Affordable and clean energy
• 8: Decent work and economic growth
• 9: Industry, innovation and infrastructure
• 10: Reduced inequalities
• 13: Climate action

Company's sustainability activities align with these goals

Sustainable Products & Innovation

• Renewable natural gas (RNG)
• Compressed natural gas (CNG)
• Hydrogen

Awards & Recognition

• Southwest Gas ranked highest in Customer Satisfaction in J.D. Power studies
• Centuri ranked No. 4 on ENR’s Top 600 Specialty Contractors list
• Recognition by the American Gas Association for de-escalation training
• Southwest Gas named to Forbes’ list of Best-in-State Employers
• Centuri’s NPL business awarded “Outstanding Corporate Partner of the Year”
• Awards for Southwest Gas’ supplier diversity program

Environmental Metrics

ESG Focus Areas

• Integrity of Gas Infrastructure
• Customer Affordability, Reliability and Access
• Cybersecurity and Risk Management
• Workforce Health and Safety
• Greenhouse Gas Emissions Management
• Energy Management
• Environmental Resource Management
• Community Relations and Impact
• Diversity, Equity and Inclusion
• Business Ethics and Competitive Behavior
• Business Model Innovation and Resilience
• Corporate Governance

Environmental Achievements

• Piloted three advanced mobile leak detection units to detect pipeline leaks more efficiently
• Offset combustion-related emissions associated with 11,980 therms through customer participation in Southwest Gas’ Move2ZeroSM Program
• Reduced excavation damages by 17% since 2019
• Eliminated the equivalent of 79,012 MTCO2e by delivering more than 37 million therms of natural gas in place of diesel
• Helped customers avoid emitting more than 98,200 metric tons of carbon dioxide equivalent over the past six years through energy-efficiency programs

Social Achievements

• Achieved record emergency response times, responding to 76.8% of emergencies within 30 minutes
• Spent $257 million with diverse suppliers at Centuri and $168 million at Southwest Gas
• Distributed $1.5 million to nearly 400 nonprofits and charitable organizations through the Southwest Gas Foundation
• Delivered gas bill assistance to more than 3,100 customers through Southwest Gas’ Energy Share Program
• Established partnerships to advance investments of $1.7 million at Southwest Gas in research, design and development efforts largely focused on lower-carbon energy technologies

Governance Achievements

• Formed an executive-level Implementation Steering Committee to prepare for anticipated GHG emissions reporting requirements
• Enhanced our enterprise risk management program to further develop a culture of risk awareness and promote risk-informed decision-making

Climate Goals & Targets

Environmental Challenges

• Managing the integrity of aging pipeline infrastructure
• Reducing methane emissions from leaks and maintenance activities
• Addressing cybersecurity threats
• Meeting evolving regulatory requirements for climate-related disclosures
• Balancing customer affordability with investments in infrastructure modernization and sustainability initiatives

Mitigation Strategies

• Investing $292 million in infrastructure modernization and integrity management in 2022
• Deploying advanced mobile leak detection and methane capture technologies
• Implementing robust cybersecurity programs
• Forming an internal Implementation Steering Committee to prepare for new GHG reporting requirements
• Offering energy-efficiency programs and rebates to help customers reduce costs and emissions

Supply Chain Management

Responsible Procurement

• Supplier diversity programs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth of renewable natural gas and hydrogen markets

Reporting Standards

Frameworks Used: American Gas Association (AGA) Sustainability Template, Sustainability Accounting Standards Board (SASB) Gas Utilities & Distributors and Engineering & Construction Services standards, UN Sustainable Development Goals, Global Reporting Initiative (GRI) Universal Standards, including GRI 11: Oil and Gas Sector Standards, Task Force on Climate-related Financial Disclosures (TCFD) framework

Certifications: Climate Registered™ Gold status by The Climate Registry

Third-party Assurance: Third-party verification of Scope 1 and 2 emissions by The Climate Registry

UN Sustainable Development Goals

• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

Company activities align with these SDGs through various initiatives such as energy efficiency programs, community investment, workforce development, and emissions reduction efforts.

Sustainable Products & Innovation

• Renewable natural gas (RNG)
• Compressed natural gas (CNG)
• Hydrogen

Awards & Recognition

• Climate Registered™ Gold status (three consecutive years)
• Ranked No. 1 for Customer Satisfaction (four consecutive years)
• Arizona Hispanic Chamber of Commerce Million Dollar Circle of Excellence
• State Bar of Nevada Partner in Diversity, Equity and Inclusion designation
• ENR Top 600 Specialty Contractors list (No. 2)
• Riggs Distler Great Place to Work® certification (four consecutive years)
• Bronze Star Awards (Riggs Distler)
• Fortune Best Workplaces in Construction 2022 (Riggs Distler)
• Ventus Award for HSE Program of the Year
• Platinum Safety Award (Riggs Distler)