Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Social Achievements

• Established good relations with the local community

Climate Goals & Targets

Environmental Challenges

• Potential for bird and bat mortality
• Potential for noise pollution
• Potential for air and water pollution during construction
• Potential for soil contamination

Mitigation Strategies

• Restrict construction activities to daytime hours
• Use modern, well-maintained equipment
• Implement Best Management Practices (BMPs) for fugitive dust
• Develop and implement an Emergency Management Plan (EMP) including a spill contingency plan
• Locate turbines at least 125 m from woodlots
• Do not operate turbines during periods of intense fog
• Follow DFO Operational Statements for watercourse crossings
• Re-vegetate cleared areas
• Implement a complaint response program

Supply Chain Management

Responsible Procurement

• Source gravel from local suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Reporting Standards

Frameworks Used: Canadian Environmental Assessment Act

Environmental Metrics

ESG Focus Areas

• environmental incidents
• reclamation work
• SO2 emissions reduction
• NOX emissions reduction
• equal access to education
• Board gender diversity
• gender diversity in employment
• GHG emissions reduction

Environmental Achievements

• Commissioning the Pioneer Pipeline four months early, significantly reducing carbon emissions and costs.
• Reduced SO2 emissions by 77% since 2005.
• Reduced NOx emissions by 61% since 2005.
• Reduced GHG emissions by 36% since 2015.
• Reclaimed 114.9 acres at Highvale mine and 160.6 acres at Centralia mine.

Social Achievements

• Achieved a Total Injury Frequency (TIF) of 1.12, down from 1.91 in 2018.
• Launched Leadership Development Program and Operations Manager Development Program.
• Awarded 14 bursaries to Indigenous students through Indspire.
• Contributed approximately $2.1 million in donations and sponsorships.

Governance Achievements

• Women made up 50% of the executive officer team and 33% of the Board.

Climate Goals & Targets

Environmental Challenges

• Raising capital at competitive rates in the markets was difficult due to investor uncertainty about the coal-to-gas conversion strategy and undervaluation of hydro assets.
• Unplanned outage at US Coal during the first quarter of 2019.
• Legal disputes with Fortescue Metals Group Ltd. and Mangrove Partners.
• High levels of volatility across North American power markets.

Mitigation Strategies

• Strategic partnership with Brookfield, providing $750 million in financing.
• Accelerated coal-to-gas conversion strategy.
• Share buyback program to return capital to shareholders.
• Cost reduction initiatives through the Greenlight project.
• Legal defense against claims.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (cyclones, floods)
• Ice accumulation on wind turbine blades

Transition Risks

• Changes in environmental legislation (federal and provincial)
• Carbon pricing
• Market shifts towards renewable energy

Opportunities

• Growth in renewable energy and natural gas generation
• Development of energy-efficient products
• Commoditization of carbon through trading

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Third-party Assurance: Ernst & Young LLP (limited assurance)

UN Sustainable Development Goals

• Goal 4
• Goal 7
• Goal 13

Targets and initiatives align with UN Sustainable Development Goals 4 (Quality Education), 7 (Affordable and Clean Energy), and 13 (Climate Action).

Sustainable Products & Innovation

• Cogeneration facilities
• Battery storage (WindCharger)

Environmental Metrics

ESG Focus Areas

• Clean energy transition
• Emissions reduction
• Renewable energy expansion

Environmental Achievements

• Accelerated shutdown of Highvale Mine by end of 2021
• Conversion to gas of Sundance Unit 6 (mid-November 2020)
• Keephills Unit 1 and Sundance Unit 4 to discontinue coal, operate on gas from January 1, 2022
• Regulatory approval for repowering of Sundance Unit 5 into a combined cycle unit (Q4 2023)

Social Achievements

• Successful return of remote employees to office without sacrificing health and safety standards
• Implementation of COVID-19 safety protocols
• BHP Nickel West contract extension to Dec. 31, 2038, including emission reduction targets

Governance Achievements

• Appointment of John P. Dielwart as Chair of the Board
• Implementation of a Normal Course Issuer Bid (NCIB) for common shares

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on demand, prices, and operations
• Lower power prices in Alberta due to COVID-19 and low oil prices
• Higher coal costs due to accelerated mine closure
• Delays in Windrise Wind Project due to COVID-19

Mitigation Strategies

• Business continuity plan implementation
• Hedging activities to minimize unfavorable market pricing
• Amendments to fuel contracts with fixed pricing through 2025
• Adjustments in capital investment plans
• COVID-19 safety protocols and contingent work teams

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Renewable Energy

Environmental Achievements

• Reduced GHG emissions by 61% since 2015.
• Reduced approximately 3.9 million tonnes of CO2e (24%) over 2020 levels.
• Achieved full phase-out of coal in Canada in 2021.
• Retired 4,064 MW of coal-fired generation capacity since 2018 while converting 1,659 MW to natural gas.

Social Achievements

• US$55 million community investment over 10 years to support energy efficiency, economic and community development, and education and retraining initiatives in Washington State.
• CAD $750,000 annually on programs and initiatives to support communities impacted by the phase-out of coal generation in Alberta.

Governance Achievements

• Established board-level oversight of climate-related issues.
• 20% of corporate annual incentive plan linked to achieving specific ESG objectives (including CO2 reduction projects and diversity & inclusion).
• First publicly traded Canadian electricity company to commit to GHG emissions reduction targets through the Science Based Targets initiative (SBTi).

Climate Goals & Targets

Environmental Challenges

• Increased costs for natural gas supply due to carbon pricing changes.
• Potential for additional mandated emission reductions forcing investment in technologies like CCUS, increasing operating costs for natural gas plants.

Mitigation Strategies

• Clean Electricity Growth Plan (2 GW of renewables growth by 2025, $3 billion investment).
• Coal-to-gas conversions.
• Transitioning off coal by 2025.
• Use of eligible emission credits generated from renewable energy segments and purchasing emission credits from the market.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Carbon pricing
• Regulatory changes

Opportunities

• Growth in renewable energy
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, GRI, SASB, SBTi

Third-party Assurance: Limited assurance by third-party auditor

UN Sustainable Development Goals

• SDG 7
• SDG 13

Initiatives contribute to affordable and clean energy (SDG 7) and climate action (SDG 13).

Sustainable Products & Innovation

• Renewable electricity (hydro, wind, solar)
• Environmental attributes (RECs, carbon offsets)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity

Environmental Achievements

• Reduced GHG emissions by 68% since 2015
• Reduced approximately 2.3 million tonnes of CO2e (18%) over 2021 levels
• Retired 4,464 MW of coal-fired generation capacity and converted 1,659 MW of coal-fired facilities to natural gas since 2018
• No longer generates electricity in Canada using coal
• Renewable energy gross installed capacity of 2,828 MW in 2022

Social Achievements

• Launched a Supplier Relationship and Performance Management program
• US$55 million community investment over 10 years to support energy efficiency, economic and community development and education and retraining initiatives in Washington State
• Programs and initiatives to support communities surrounding plants negatively impacted by the phase-out of coal generation

Governance Achievements

• Established board-level oversight of climate-related issues
• Developed a consolidated Climate Transition Plan
• Aligned executive compensation with ESG and climate-related goals (one-third of PSU performance metrics)

Climate Goals & Targets

Environmental Challenges

• Increased direct costs from carbon pricing mechanisms
• Potential for additional mandated emission reductions forcing investment in technologies like CCUS, increasing operating costs for natural gas plants

Mitigation Strategies

• Clean Electricity Growth Plan with a targeted capital investment of $3.6 billion by the end of 2025 to deliver 2 GW of incremental renewable capacity
• Coal-to-gas conversions
• Retirement of remaining coal unit by the end of 2025

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes (carbon pricing)
• Market shifts

Opportunities

• Growth in renewable energy
• Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD, GRI, SASB, UN SDGs, FutureFit Business Benchmark

Certifications: EcoLogo

Third-party Assurance: Third-party limited assurance for Scope 1 and 2 emissions

UN Sustainable Development Goals

• SDG 7
• SDG 13
• SDG 15

Initiatives contribute to affordable and clean energy, climate action, and life on land.

Sustainable Products & Innovation

• Renewable electricity (hydro, wind, solar)
• Environmental attributes (RECs, carbon offsets)

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Indigenous Relations
• Supply Chain Sustainability
• Safety

Environmental Achievements

• Reduced scope 1 and 2 greenhouse gas emissions by 70% since 2015, exceeding 22.7 MT CO2e reduction.
• Retired 4,464 MW of coal-fired generation capacity and converted 1,659 MW of coal-fired capacity to natural gas since 2018.
• Achieved a 95% reduction of SO2 emissions and an 80% reduction of NOx emissions below 2005 levels (achieved in 2022 and maintained in 2024).
• Reduced fleet-wide water consumption by approximately 20 million m3 or 43% from 2015 levels (achieved in 2022 and maintained in 2024).
• Completed assessment and disclosure of nature-related risks and opportunities.
• Recorded zero biodiversity-related incidents.

Social Achievements

• Launched four employee resource groups.
• Provided Indigenous cultural awareness training to 100% of onboarded employees.
• Achieved 99% female/male pay equity ratio.
• 79% of spending was with suppliers having sustainability policies or commitments.

Governance Achievements

• Received awards for best ESG reporting and Sustainability, ESG and Purpose.
• Women represented 38% of the Board composition.

Climate Goals & Targets

Environmental Challenges

• Lower power prices in Alberta due to increased renewable and gas supply.
• Increased competition in the clean energy market.
• Climate-related risks (extreme weather, water resource variability).
• Supply chain disruptions.
• Potential policy changes in the US and Australia.

Mitigation Strategies

• Active management of merchant portfolio and hedging strategies.
• Acquisition of Heartland Generation to diversify portfolio and add flexible capacity.
• Investment in battery storage and evaluation of natural gas for reliability.
• ESG criteria for supply chain engagement.
• Developing and acquiring contracted assets for long-term revenue certainty.
• Engaging with governments to influence policy development.

Supply Chain Management

Supplier Audits: 79% of spend with suppliers having sustainability policies or commitments.

Responsible Procurement

• Developing ESG criteria for supply chain engagement.
• Engaging with suppliers to explore enhancement of their GHG emissions reduction targets.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Water resource variability
• Ice accumulation on wind turbine blades
• Extreme cold temperatures

Transition Risks

• Changes in carbon pricing and emissions regulations
• Increased clean energy competition
• Decreased demand for natural gas electricity
• Technological changes

Opportunities

• Growth in renewable energy generation
• Development of battery storage systems and ancillary services
• New technology developments (hydrogen, SMR).

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, IFRS S2

Certifications: ISO 14001

Third-party Assurance: Independent third-party providers (limited assurance)

UN Sustainable Development Goals

• Goal 7
• Goal 13
• Goal 6
• Goal 15
• Goal 4
• Goal 8
• Goal 9
• Goal 12

Initiatives contribute to these goals through renewable energy growth, GHG emissions reduction, water management, biodiversity protection, education and training, safe working environments, industrial innovation, and sustainable consumption and production.

Sustainable Products & Innovation

• Renewable energy (hydro, wind, solar)
• Battery storage
• Environmental attributes

Awards & Recognition

• Best ESG reporting (mid-cap) by IR Magazine Canada
• Sustainability, ESG and Purpose Award from Governance Professionals of Canada