Black Hills Corporation

Climate Impact & Sustainability Data (2020, 2022, 2023)

Reporting Period: 2020

Environmental Metrics

ESG Focus Areas

Carbon intensity reduction
Renewable energy
Safety
Customer experience
Workforce engagement
Veteran support

Environmental Achievements

Achieved a 30% reduction in carbon intensity at electric operations and a 33% reduction in gas utility since 2005.
Conversion of Neil Simpson II coal-fired power plant to natural gas in 2025.
Adding renewable generation and battery storage resources.
Integrating more renewable natural gas in the system.
Voluntarily committed to reduce methane emissions through EPA Methane Challenge and ONE Future coalition.

Social Achievements

Achieved a JD Power ranking of second overall by gas utility in the South region.
Year-to-date Net Promoter Score of approximately 64 (improvement from 60 in 2020 and 42 four years ago).
Named to Achiever's 50 Most Engaged Workplaces for the second consecutive year.
Named a Veteran-Friendly Employer of the Year at Wyoming's 2021 Safety and Workforce Summit.

Governance Achievements

Board approved a 5.3% increase in dividend, achieving 51 consecutive years of dividend increases.
Reached unanimous settlement agreements for Colorado and Kansas rate reviews.
Obtained approvals for Nebraska Gas and South Dakota Electric Winter Storm Uri cost recovery.

Climate Goals & Targets

Medium-term Goals:

Achieve 40% reduction in carbon intensity at electric operations by 2030.
Achieve 50% reduction in carbon intensity at natural gas utilities by 2035.

Short-term Goals:

Complete Winter Storm Uri cost recovery filings.

Environmental Challenges

Increasing gas prices impacting customer bills.
Winter Storm Uri cost recovery process.
Managing costs during the pandemic.

Mitigation Strategies

Aggressive communication with customers about gas price impacts.
Filing recovery plans in all states for Winter Storm Uri costs.
Implementing cost savings through innovation and continuous improvement (Energy Forward program).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, NGSI

Awards & Recognition

OSHA's Star status for Cheyenne Prairie Generating Station
Achiever's 50 Most Engaged Workplaces
Veteran-Friendly Employer of the Year

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:Not disclosed

Scope 1 Emissions:Not disclosed

Scope 2 Emissions:Not disclosed

Scope 3 Emissions:Not disclosed

Renewable Energy Share:Not disclosed

Total Energy Consumption:Not disclosed

Water Consumption:Not disclosed

Waste Generated:Not disclosed

Carbon Intensity:Not disclosed

ESG Focus Areas

Greenhouse gas emissions intensity reduction
Renewable energy
Safety
Reliability
Sustainability

Environmental Achievements

Retired 123.3 MW of coal generation
Added 288.8 MW of owned renewable wind resources
Achieved greater than one-third reduction in GHG emissions since 2005 (33%+ by 2021)
Net Zero by 2035 target for gas utilities
Replaced at-risk and aging pipeline materials across natural gas system since 2005

Social Achievements

South Dakota Governor’s Meritorious Award Recipient for commitment to safety
All three electric utilities achieved excellent SAIDI outage results in 2021 (top-quartile)
Net promoter score improvement; 66 in 2022 YTD versus 49 in 2018
Energy Star Partner of the Year for sustained excellence in Arkansas
Achievers Most Engaged Workplaces in North America (second consecutive year)
#1 on InHerSight list for the Best Utility Companies to Work For

Governance Achievements

Not disclosed

Climate Goals & Targets

Long-term Goals:

70% renewable energy by 2040

Medium-term Goals:

40% renewable energy by 2030
570 MW renewable energy by 2030 (Colorado)
450 MW clean energy resources by 2030 (South Dakota)
Net Zero by 2035 across entire gas distribution system

Short-term Goals:

Convert 90 MW coal-fired power plant to gas by 2025
Evaluate 20 MW battery storage (10 MW South Dakota and 10 MW Wyoming) by 2025
100 MW renewable generation by 2025

Environmental Challenges

Supply chain disruptions on availability and cost of materials
Inflation and volatile energy prices

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: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

Not disclosed

Not disclosed

Sustainable Products & Innovation

Not disclosed

Awards & Recognition

South Dakota Governor’s Meritorious Award
Energy Star Partner of the Year (Arkansas)
Achievers Most Engaged Workplaces in North America
InHerSight Best Utility Companies to Work For (#1)

Reporting Period: 2023

Environmental Metrics

ESG Focus Areas

Emissions Reduction
Wildfire Management
Community Support
Clean Energy
Data Center Growth

Environmental Achievements

On track to cost-effectively achieve emissions reduction goals
Published 2023 corporate sustainability report highlighting progress on ESG goals
Investing in renewable energy resources (400 MW in Colorado, 100 MW in South Dakota)

Social Achievements

Supporting communities impacted by severe storms and flooding
Providing new jobs and tax revenues through data center projects
Engaging with stakeholders on wildfire management and mitigation

Governance Achievements

Three active rate reviews moving along as expected
Continued focus on improving credit quality
54 consecutive years of dividend increases

Climate Goals & Targets

Long-term Goals:

Maintain long-term EPS growth target of 4% to 6%

Medium-term Goals:

Add 100 MW of cost-effective utility-owned resources in South Dakota by 2026
Achieve 10% or greater of total EPS from data centers by 2028

Short-term Goals:

Implement Public Safety Power Shutoff (PSPS) program in the first half of next year