Climate Change Data

UGI Corporation

Climate Impact & Sustainability Data (2021-10 to 2022-09)

Reporting Period: 2021-10 to 2022-09

Environmental Metrics

Total Carbon Emissions:1,143,247 tCO2e/year (Scope 1)
Scope 1 Emissions:1,143,247 tCO2e/year
Scope 2 Emissions:20,134 tCO2e/year (market-based)
Scope 3 Emissions:38,203,252 tCO2e/year
Total Energy Consumption:119,793 MWh/year
Waste Generated:2,779 tons/year (non-hazardous)

ESG Focus Areas

  • Climate change
  • Safety
  • Supplier diversity
  • Decarbonization
  • Pipeline safety and control
  • GHG emissions (including methane)
  • Cybersecurity and data privacy
  • Regulatory compliance
  • Stakeholder engagement
  • Corporate governance
  • Adaptation and resiliency

Environmental Achievements

  • Reduced methane emissions by more than 90% since 1999 at PA Gas Utility.
  • Replaced 155 miles of cast iron and bare steel pipelines in Pennsylvania and West Virginia, reducing fugitive methane emissions.
  • Committed over $70 million to fund the Moody cluster of three dairies for RNG production.
  • Invested approximately $150 million in MBL Bioenergy for RNG projects.
  • Increased use of CNG vehicles in UGI Utilities fleet by nearly 60% since 2019.
  • Purchased 1.35 million gallons of biodiesel in Fiscal 2022 at AmeriGas Propane.

Social Achievements

  • Expanded Women’s Impact Network globally.
  • Partnered with World Central Kitchen to assist Ukrainian refugees.
  • Increased spending with diverse suppliers.
  • Received the Founders Award from the Urban Affairs Coalition.
  • Launched inaugural “UGI Day” to celebrate employee contributions.
  • Implemented a new Contractor Management System (ISNetworld) at UGI Utilities.

Governance Achievements

  • MSCI upgraded UGI’s ESG Rating Assessment to AAA.
  • Completed second Carbon Disclosure Project (CDP) questionnaire, receiving a score of “B-”.
  • Established an ESG Leadership Council to streamline ESG program.
  • Created the Global Head of Supplier Diversity & Responsible Sourcing position.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 (implied).
Medium-term Goals:
  • Reduce methane emissions by 92% by 2030, 95% by 2040.
  • Replace all cast iron pipe by 2027.
  • Replace all bare steel pipe by 2041.
  • Reduce carbon footprint from distribution and logistics by 15% by 2030 at UGI International.
  • Reduce emissions by 25% at facilities by 2025 at UGI International (using 2019 as a base year).
Short-term Goals:
  • Reduce Scope 1 emissions by 55% by 2025 (excluding Mountaineer acquisition and other specified exclusions).
  • Reduce total recordable injuries by 35% by 2025.
  • Reduce accountable vehicle incidents by 50% by 2025.
  • Improve spend with diverse Tier I and Tier II suppliers by 25% by 2025.

Environmental Challenges

  • Supply chain disruptions
  • Driver shortages and turnover at AmeriGas Propane impacting safety performance.
  • Climate-related physical and transitional risks.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Investing in technology enhancements, employee awareness, and training to improve fleet safety.
  • Conducting climate change scenario analysis to identify and manage risks and opportunities.
  • Shortened the time period for defining normal weather for budget and planning purposes.
  • Committed to investments in low-carbon and renewable energy.

Supply Chain Management

Responsible Procurement
  • Supplier diversity program; increased spend with diverse suppliers.
  • Supplier Code of Business Conduct and Ethics.

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events (floods, wildfires, hurricanes, heat waves)
  • Rising sea levels
Transition Risks
  • Policy and legal changes (gas bans, carbon taxes, fuel switching subsidies)
  • Technological disruptions
  • Market shifts
  • Reputational risks
Opportunities
  • Investments in renewable energy solutions (RNG, bioLPG, renewable DME).

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

  • 7
  • 8
  • 10
  • 12
  • 13

Alignment with SDGs 7 (Affordable and Clean Energy), 8 (Decent Work and Economic Growth), 10 (Reduced Inequalities), 12 (Responsible Consumption and Production), and 13 (Climate Action).

Sustainable Products & Innovation

  • RNG
  • BioLPG
  • Renewable DME

Awards & Recognition

  • Founders Award from the Urban Affairs Coalition
  • MSCI AAA ESG Rating
  • Civic 50 Greater Philadelphia Partners recognition