Climate Change Data

Fortis Inc.

Climate Impact & Sustainability Data (2018, 2019, 2021, 2022, 2023)

Reporting Period: 2018

Environmental Metrics

Total Carbon Emissions:11,359 ktonnes of CO2 equivalent (Scope 1+2)
Scope 1 Emissions:11,137 ktonnes of CO2 equivalent (2018)
Scope 2 Emissions:222 ktonnes of CO2 equivalent (2018)
Scope 3 Emissions:717,230 ktonnes of CO2 equivalent (2018)
Renewable Energy Share:28.2% minimum percentage of renewable energy in electricity sold to customers (2018)
Total Energy Consumption:Not disclosed
Water Consumption:27 million m3 consumed in electricity generation (2018)
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Energy Delivery
  • Clean Energy
  • Infrastructure Investment
  • Energy Efficiency
  • Workforce Diversity & Inclusion
  • Workplace Safety & Health
  • Community Investment
  • Governance

Environmental Achievements

  • Combined greenhouse gas intensity of energy delivered to customers in line with 2017 levels, significantly reduced from 2016 levels.
  • Tucson Electric Power (TEP) plans to add 446 MW of renewable energy capacity, exceeding 28% of retail sales by 2021 (9 years ahead of 30% goal).

Social Achievements

  • Safety and reliability performance surpassed comparable industry rates in Canada and the U.S. in 2018.
  • $13 million donated to communities in 2018.
  • Top decile performer on governance matters.
  • 42% of Board of Directors are female.

Governance Achievements

  • Named a 2019 Best 50 Corporate Citizen by Corporate Knights.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • TEP aims to achieve 30% renewable energy by 2030 (nearly achieved in 2021)
Short-term Goals:
  • Not disclosed

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: UN Sustainable Development Goals

Certifications: ISO 45001 (100% of Fortis utilities), ISO 14001 (100% of Fortis utilities)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • 2019 Best 50 Corporate Citizen by Corporate Knights

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:12,541 ktonnes of CO2 equivalent (Scope 1+2)
Scope 1 Emissions:12,308 ktonnes of CO2 equivalent
Scope 2 Emissions:233 ktonnes of CO2 equivalent
Scope 3 Emissions:120,310 ktonnes of CO2 equivalent
Renewable Energy Share:39.4% of clean energy sold to customers
Water Consumption:28 million m3 consumed in electricity generation
Waste Generated:0.42 ktonnes of hazardous waste manifested for disposal
Carbon Intensity:10.9 ktonnes of CO2 equivalent per PJ (combined GHG intensity of energy delivered to customers)

ESG Focus Areas

  • Cleaner energy future
  • Employee well-being
  • Community engagement
  • Governance
  • Climate change
  • Biodiversity
  • Water and waste management

Environmental Achievements

  • TEP achieved consistent year-over-year decreases in Scope 1 GHG emissions associated with coal-fired electricity generation; 15% decrease since 2015.
  • TEP announced a target to reduce carbon emissions by 80% by 2035 and to have more than 70% renewable generation by 2035.
  • FortisBC set a target to reduce customers’ GHG emissions by 30% by 2030.
  • FortisBC's goal is for 15% of its gas supply to be renewable gases by 2030.
  • FortisAlberta replaced 74,000 streetlamps with more efficient LED lights, reducing CO2 emissions by more than 19,000 tonnes annually.
  • More than $106 million spent on energy efficiency and conservation programs in 2019.

Social Achievements

  • Finalized inclusion and diversity framework in 2019.
  • 40% of Fortis Inc. Directors elected in 2020 are women.
  • More than $12 million in 2019 community investment.
  • Employee safety guides all actions during the COVID-19 pandemic.
  • Pledged $4.5 million to charities and community organizations responding to COVID-19 needs.
  • Launched Maritime Electric’s Trees for Life project, planting 367 trees.

Governance Achievements

  • 9 of 10 Fortis Board of Directors are independent in 2020.
  • Established a corporate-wide compliance framework.
  • Executive compensation program links safety and reliability performance to executive compensation.
  • Individual performance of President and CEO and EVP, Sustainability and Chief Human Resource Officer assessed on key sustainability accountabilities in 2019.

Climate Goals & Targets

Short-term Goals:
  • TEP: 80% carbon emissions reduction by 2035
  • TEP: More than 70% renewable generation by 2035
  • FortisBC: 30% reduction in customer GHG emissions by 2030
  • FortisBC: 15% renewable gas supply by 2030

Environmental Challenges

  • Climate change leading to more frequent and intense weather events impacting infrastructure resiliency.
  • Regulatory requirements aimed at limiting GHG emissions.
  • COVID-19 pandemic impacting operations and employee safety.
  • Supply chain disruptions
Mitigation Strategies
  • Investing in asset resiliency and modernization (50% of 2019 capital spending).
  • Transitioning to a cleaner energy future (16% of 2019 capital spending).
  • Implementing additional safety measures to protect employees during COVID-19.
  • Best practice sharing and collaboration across utilities.
  • Programs to support customers facing financial challenges.

Supply Chain Management

Responsible Procurement
  • Code of Conduct
  • Sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Changing air temperatures
  • Seasonal variations
Transition Risks
  • Regulatory changes
  • Failure to comply with regulatory requirements
Opportunities
  • Investments in renewables, grid resiliency, and innovative technology

Reporting Standards

Frameworks Used: GRI Standards, TCFD recommendations

Certifications: ISO 45001 (or equivalent), ISO 14001 (or equivalent)

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 8 (Decent Work and Economic Growth)
  • Goal 9 (Industry, Innovation and Infrastructure)
  • Goal 11 (Sustainable Cities and Communities)
  • Goal 13 (Climate Action)

Initiatives align with these goals through investments in renewable energy, employee well-being, community engagement, resilient infrastructure, and GHG emission reduction.

Sustainable Products & Innovation

  • Renewable natural gas
  • Electric vehicle chargers

Awards & Recognition

  • Canada’s Best 50 Corporate Citizens

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:10,380 ktonnes of CO2e (2017); 10,010 ktonnes of CO2e (2018); 11,140 ktonnes of CO2e (2019); 10,418 ktonnes of CO2e (2020); 9,742 ktonnes of CO2e (2021)
Scope 1 Emissions:9,742 ktonnes of CO2e (2021)
Scope 2 Emissions:158 ktonnes of CO2e (2021)
Scope 3 Emissions:17,489,000 metric tonnes CO2e (2021)
Renewable Energy Share:47.8% (2020); 40.9% (2021)
Water Consumption:49 million m3 (2019); 48 million m3 (2020); 45 million m3 (2021)
Waste Generated:0.42 ktonnes (2019); 0.44 ktonnes (2020); 0.23 ktonnes (2021)

ESG Focus Areas

  • Preserving Our Environment and Combatting Climate Change
  • Linking Human Capital and Sustainability
  • Engaging with Stakeholders and Communities
  • Ensuring Good Governance

Environmental Achievements

  • Achieved a 20% GHG emissions reduction since 2019.
  • Increased renewable electricity generation capacity by approximately 50% in 2021 compared to 2020.
  • FortisBC customers reduced GHG emissions by approximately 578,000 tonnes in 2021.
  • TEP retired 170 MW of coal-fired generation in June 2022.

Social Achievements

  • Launched the Fortis Leadership Lab, a development program for employees early in their leadership progression.
  • Held 42 Indigenous awareness training sessions with over 800 employees participating.
  • FortisAlberta selected as a 2021 Top 70 Employer in Alberta.
  • Newfoundland Power participated in a job fair for Ukrainian newcomers.

Governance Achievements

  • 54% of Board members are women as of the 2022 Annual Meeting.
  • Added 35+ new key performance indicators to sustainability reporting.
  • Full alignment with applicable SASB standards.
  • Sustainability performance accounts for 40% of annual corporate performance in executive compensation.

Climate Goals & Targets

Long-term Goals:
  • 2050 net-zero direct GHG emissions target
Medium-term Goals:
  • Reduce direct GHG emissions 75% by 2035
  • Have more than 15% of gas supply come from renewable sources by 2030.
Short-term Goals:
  • Reduce direct GHG emissions 50% by 2030

Environmental Challenges

  • Rising fuel costs impacting customer affordability.
  • Rising interest rates impacting capital and operating costs.
  • Supply chain pressures related to supply availability and rising costs.
  • Energy security and affordability challenges.
Mitigation Strategies
  • Fortis utilities are working together to mitigate the cost impacts on customers from rising inflation rates and constrained global supply chains.
  • Executive responsibility for supply chain coordination was expanded.
  • Fortis utilities support one another to ensure adequate supply of materials and consolidate buying power.
  • Inventory plans have been adjusted to reflect market conditions and supply chain constraints.
  • Fortis utilities are working more closely with suppliers to create multi-year forecasts and align plans with material availability.

Supply Chain Management

Supplier Audits: Survey conducted with top ten suppliers

Responsible Procurement
  • Survey of top ten suppliers on health and safety, ethical business practices, environmental performance, climate change preparedness, workforce stability and DEI priorities.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, EEI

Certifications: ISO 14001, ISO 45001

Awards & Recognition

  • Clean50 Top Project (Wataynikaneyap Power Transmission Project)
  • Resilience and Reliability Award (Newfoundland Power)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:8748 ktonnes of CO2 equivalent
Scope 1 Emissions:8748 ktonnes of CO2 equivalent
Scope 2 Emissions:158 ktonnes of CO2 equivalent
Scope 3 Emissions:88355 ktonnes of CO2 equivalent
Renewable Energy Share:42.9% of electricity sold to customers from renewable sources
Water Consumption:18 million m3 consumed in electricity generation
Waste Generated:0.39 ktonnes of hazardous waste manifested for disposal
Carbon Intensity:7.72 ktonnes of CO2 equivalent per PJ (combined GHG intensity of energy delivered to customers)

ESG Focus Areas

  • Emissions and net-zero
  • Energy access and affordability
  • Energy reliability and resilience
  • Energy transition
  • Health, safety and wellbeing
  • Indigenous relations
  • Community engagement and development
  • Responsible supply chain
  • Biodiversity and land use
  • Cybersecurity
  • Water and resources use

Environmental Achievements

  • 29% GHG emissions reduction since 2019
  • Solar electricity generation capacity increased 21% year-over-year.
  • Tucson Electric Power retired another 170 MW of coal-fired generation in 2022.
  • Avoided 31,100 tCO2e GHG emissions by using natural gas for transportation (FortisBC).
  • Avoided 43,400 tCO2e GHG emissions by using LNG in marine bunkering (FortisBC).
  • Avoided 213,500 tCO2e GHG emissions by using RNG (FortisBC).
  • Helped customers avoid approximately 776,000 tCO2e (FortisBC).

Social Achievements

  • Lowest recordable injury rate ever reported in 2022.
  • Top quartile electricity reliability performance under normal operations in 2022.
  • Signed an agreement with the Musqueam Indian Band to share the benefits associated with the Tilbury LNG expansion projects (FortisBC).
  • Entered into a pilot project to produce low-carbon hydrogen (FortisBC).

Governance Achievements

  • ESG materiality assessment was completed.
  • Sustainability performance linked to executive compensation: ESG leadership and safety performance weightings increased to 15% each and a new DEI measure was added to our long-term incentive plan.
  • Fortis amended its existing $1.3 billion credit facility to include a sustainability-linked loan (SLL) structure based on achieving targets related to Scope 1 emissions reductions and select board diversity metrics.
  • FortisBC established a SLL credit facility, incorporating Scope 3 emissions into a SLL credit facility and setting a target based on Indigenous involvement in projects.

Climate Goals & Targets

Long-term Goals:
  • 75% GHG emissions reduction by 2035
  • Net-zero GHG emissions by 2050
Medium-term Goals:
  • 50% GHG emissions reduction by 2030
Short-term Goals:
  • FortisBC: reduce customers’ GHG emissions by at least 30% by 2030
  • FortisBC: increase RNG supply so that at least 15% of natural gas consumption comes from renewable and low-carbon gas by 2030

Environmental Challenges

  • Customer affordability remains a top priority, particularly in light of commodity price pressures.
  • Better assess and expand our inventory of Scope 3 emissions, focusing on material Scope 3 categories.
Mitigation Strategies
  • Fortis utilities are focusing on controlling costs, looking for efficiencies and using new and innovative ways to keep operating expenses stable.
  • Work is underway to build on the 2022 Fortis TCFD and Climate Assessment to provide more information on TCFD recommended disclosures.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: EY (limited assurance for Scope 1 and 2 emissions and select Fortis Inc. board diversity metrics)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:8,155 ktonnes of CO2e
Scope 1 Emissions:8,155 ktonnes of CO2e
Scope 2 Emissions:158 ktonnes of CO2e
Scope 3 Emissions:85,418 ktonnes of CO2e
Renewable Energy Share:51.3% of electricity sold to customers from clean sources
Water Consumption:19 million m3 consumed in electricity generation
Waste Generated:0.49 ktonnes of hazardous waste manifested for disposal
Carbon Intensity:7.28 ktonnes of CO2 equivalent per PJ of energy delivered to customers in 2023

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Community Investment
  • Safety

Environmental Achievements

  • 33% reduction in scope 1 GHG emissions since 2019
  • 2023 combined GHG intensity of electricity and natural gas delivered to customers reached its lowest level in the last five years
  • TEP retired 508 MW of coal generation since 2017 and plans to close all remaining coal generation facilities by 2032

Social Achievements

  • Annual voluntary employee turnover rate decreased in 2023 compared to 2022
  • Fortis Leadership Lab, launched in 2021, is preparing emerging leaders for future leadership roles
  • Women represent 38% of all executive positions enterprise-wide

Governance Achievements

  • Adopted a new human rights statement and a vendor code of conduct in January 2024
  • Fortis Inc. Board of Directors meet diversity targets (Women and men each represent at least 40% of the board’s independent directors; A minimum of two board members to represent visible minorities and/or Indigenous persons)

Climate Goals & Targets

Long-term Goals:
  • Net-zero GHG emissions by 2050
Medium-term Goals:
  • Reduce scope 1 GHG emissions by 50% by 2030
  • Reduce scope 1 GHG emissions by 75% by 2035
  • TEP: 80% reduction in CO2 emissions by 2035
  • FortisBC: Reduce absolute scope 1 GHG emissions by 35% by 2035 from 2019 levels
Short-term Goals:
  • Central Hudson: 10% fleet electrification by 2025

Environmental Challenges

  • Extreme cold and hot temperatures and more frequent extreme weather events
  • Wildfire risk
  • Coal plant retirements impacting employees and communities
Mitigation Strategies
  • Investing in grid modernization, reliability and interconnections
  • TEP’s five-year $5.2 billion capital plan includes more than $2 billion for energy storage, renewables, and other investments associated with its exit from coal generation by 2032
  • TEP established a Coal Community Transition Committee
  • FortisBC’s action plan to improve measurement and mitigation of methane emissions includes investing more than $60 million annually to inspect, repair, upgrade and replace equipment

Supply Chain Management

Responsible Procurement
  • Vendor Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Wildfires
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Renewable energy investments

Reporting Standards

Frameworks Used: SASB, GRI, GHG Protocol

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Third-party assurance for Scope 1 and 2 emissions and select Fortis Inc. board diversity metrics at a limited level

Awards & Recognition

  • FortisAlberta received the EEI Emergency Response Award
  • Newfoundland Power received the 2023 Leading the Way: DEI and Belonging Award