Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee Safety
• Public Safety
• Service Reliability and Emergency Response
• Ethics and Transparency
• Overall Customer Satisfaction

Environmental Achievements

• NiSource companies received 0 notices of violation (NOVs) during 2016.

Social Achievements

• Employees volunteered more than 13,500 hours at local nonprofits, generating nearly $270,000 in donations through the Dollars for Doers program.
• NiSource contributed approximately $5.5 million to nonprofit organizations, including $1.2 million from the NiSource Charitable Foundation.
• Overall, employees ranked NiSource with 78 percent favorability in 2016. Top survey highlights include: safety (90%), total engagement (87%) and proud to work at NiSource (88%).

Governance Achievements

• NiSource has been recognized for its ethics practices as part of Ethisphere’s World’s Most Ethical Companies for six consecutive years.
• In 2016, 75 ethics cases were investigated, with 28 (37 percent) substantiated. Cases were closed in an average of 19 days.

Climate Goals & Targets

Environmental Challenges

• Potential impacts of emergencies (service outages and safety concerns)
• Maintaining a skilled workforce

Mitigation Strategies

• Annual analysis of weather-related risks and opportunities; ongoing management review of risks and opportunities.
• Workforce succession planning and training programs (details not quantified in report)

Supply Chain Management

Responsible Procurement

• Commitment to diverse suppliers; participation in industry and diversity events

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Third-party Assurance: CH2M (external assurance for Integrated Report and G4 table); Trinity Consultants (pending assurance for greenhouse gas data)

Awards & Recognition

• Ethisphere’s World’s Most Ethical Companies (six consecutive years)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity, Equity, and Inclusion (DEI)
• Governance
• Safety
• Community Engagement
• Sustainability

Environmental Achievements

• Reduced Scope 1 GHG emissions by approximately 67% from 2005 levels by the end of 2022.
• On track to retire 100% of coal assets by 2028 and replace them primarily with renewables.
• On track for 90% reduction in Scope 1 greenhouse gas emissions by 2030, compared to a 2005 baseline.
• Reduction in methane emissions through modernization and advanced leak detection and repair, including 15,230 miles of distribution pipe surveyed by Picarro vehicles and 265 miles of priority pipe retired in 2022.
• Over $3 billion of generation transition investments through 2028.

Social Achievements

• DEI initiatives across the organization, including a significantly diverse executive leadership team and Board of Directors.
• Advancing economic inclusion initiatives including a goal of 25% diverse supplier spend by 2025.
• Achieved certification of conformation in the American Petroleum Institute’s recommended Practice 1173 (Safety Management System).
• Publication of the annual safety report.
• Thousands of hours of employee volunteerism and providing grants to community organizations.

Governance Achievements

• Committed to an independent, skilled, and diverse Board.
• Independent Chairman preserves the integrity of the oversight function of the Board.
• Chief Safety Officer has dual reporting relationship to the CEO and the SORP Committee.
• Robust framework for strategy, risk, and management oversight.
• Strong alignment of executive incentive compensation with financial, customer, and ESG objectives.

Climate Goals & Targets

Environmental Challenges

• Climate change and the transition to a lower-carbon future.
• Aging infrastructure.
• Maintaining affordability and reliability while transitioning to cleaner energy sources.
• Balancing the needs of all stakeholders (customers, communities, employees, investors).

Mitigation Strategies

• Investing in generation transition (~$3 billion through 2028), including renewables and battery storage.
• Modernizing gas and electric systems to enhance safety and reliability.
• Implementing advanced leak detection and repair technologies.
• Engaging stakeholders through workshops and surveys to inform decision-making.
• Developing pathways to achieve net-zero Scope 1 and 2 emissions by 2040.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier diversity policy (aiming for 25% diverse supplier spend by 2025)
• Supplier Code of Business Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Water stress

Transition Risks

• Regulatory changes
• Market shifts
• Technology advancements

Opportunities

• Development of renewable energy resources
• Investment in grid modernization and resiliency
• Opportunities for federal funding (IIJA and IRA)

Reporting Standards

Frameworks Used: SASB, TCFD

Certifications: ISO 9001:2015 (Trinity Consultants)

Third-party Assurance: Trinity Consultants, Inc. (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

NiSource's initiatives contribute to these goals through its efforts to transition to cleaner energy sources, reduce GHG emissions, and invest in sustainable infrastructure.

Sustainable Products & Innovation

• Green Path program (renewable natural gas and carbon offsets)
• Hydrogen blending pilot project

Awards & Recognition

• Newsweek America’s Most Responsible Companies
• TIME magazine’s World’s Best Companies
• AAA rating from MSCI
• FTSE4Good Index Series
• Forbes Best Employers for Diversity
• S&P Global Sustainability Yearbook

Environmental Metrics

ESG Focus Areas

• Safety
• Strong, stable communities
• Employee value and respect
• Shareholder value
• Customer-focused solutions
• Engaged, aligned, and transparent sustainability approach
• Environmental stewardship
• Climate Change
• Economic Inclusion
• Diversity, Equity & Inclusion
• Corporate Governance

Environmental Achievements

• Reduced Scope 1 GHG emissions by approximately 72% from 2005 levels by the end of 2023 (on track for 90% reduction by 2030 and net-zero by 2040).
• Reduced fugitive methane emissions by 48% as of the end of 2023.
• Retired 216 miles of leak-prone pipe in 2023.
• Deployed advanced leak detection and repair equipment in five service territories.
• Committed approximately $4 billion of cumulative generation transition investments through 2028.
• On track to retire 100% of coal assets by 2028.

Social Achievements

• Increased diverse supplier spend to 19% in 2023 (on track for 25% by 2025).
• Achieved 79% employee engagement in 2023.
• 33% of officers were people of color in 2023 (compared to 16% in 2021).
• 33% of officers were women in 2023 (compared to 26% in 2021).
• NiSource Charitable Foundation distributed more than $7.6 million in 2023.

Governance Achievements

• Refreshed 25% of the Board in the last two years.
• Maintained a robust framework for strategy, risk, and management oversight.
• Aligned executive incentive compensation with financial and customer objectives.

Climate Goals & Targets

Environmental Challenges

• Headwinds questioning the inclusion of ESG standards as a viable measure of strategic success.

Mitigation Strategies

• Maintaining a strong ESG focus to balance economic and environmental sustainability.
• Working to power local economies and strengthen communities through charitable contributions.
• Investing in the advancement of sustainable energy sources, including hydrogen.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Business Conduct
• Economic inclusion goals
• Integration of ESG into sourcing and supplier performance scorecards.

Climate-Related Risks & Opportunities

Physical Risks

• Volatile precipitation
• Changes in lake and river levels

Transition Risks

• Regulatory changes
• Market shifts
• Policy-driven decarbonization costs

Opportunities

• Development of energy-efficient products
• Expansion of sustainable fuels business (hydrogen, RNG)
• Investment in renewable energy generation.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: Trinity Consultants, Inc.

UN Sustainable Development Goals

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

NiSource's initiatives contribute to these goals through investments in renewable energy, infrastructure modernization, community development, emissions reductions, and workforce development.

Sustainable Products & Innovation

• Renewable natural gas
• Hydrogen blending

Awards & Recognition

• Dow Jones Sustainability Index (10th consecutive year)
• Newsweek's America's Most Responsible Companies
• Forbes' Best Employers for Diversity
• TIME's World's Best Companies
• FTSE4Good Index Series
• SAP Innovation Award