Climate Change Data

Chesapeake Utilities Corporation

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

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:271,219 tCO2e/year (2020)
Scope 1 Emissions:266,679 tCO2e/year (2020)
Scope 2 Emissions:4,540 tCO2e/year (2020)

ESG Focus Areas

  • Safety
  • Employee engagement, including EDI
  • Corporate governance
  • Stakeholder engagement
  • Customer data and privacy
  • Stakeholder engagement regarding climate change
  • Greenhouse gas emissions
  • End-use energy efficiency and demand
  • Investments in renewable energy
  • Financial performance

Environmental Achievements

  • First investment in renewable natural gas (RNG) pipeline went into service.
  • Secured sustainability-linked financing for clean energy investments.
  • Participating in development of several waste-to-energy production facilities.
  • Successfully tested a blend of hydrogen and natural gas to fuel CHP plant.
  • Sharp Energy propane AutoGas fuels over 1,300 vehicles, reducing emissions.
  • Upgrading natural gas facilities and infrastructure through GRIP, enhancing reliability and safety and promoting job growth.

Social Achievements

  • Active EDI initiative with six employee resource groups.
  • Exemplary support for employees during COVID-19 pandemic (no layoffs, pay increases, etc.).
  • Increased community financial support during the pandemic.
  • Working to implement a Pipeline Safety Management System.
  • Built a new Safety Town facility for safety training (second planned for 2022).
  • Eight Flags CHP facility celebrated five years of zero safety incidents.
  • Four Chesapeake Utilities businesses recognized with safety awards by the American Gas Association.

Governance Achievements

  • Recognized by Ethical Boardroom magazine for Best Corporate Governance (second time).
  • Elected third female director to the Board.
  • Updated Board and Committee charters to strengthen commitment to diversity.
  • Expanded business continuity and disaster response planning.
  • Corporate Governance Committee oversaw sustainability actions and ESG planning, including this report.
  • Compensation Committee expanded assessment of diversity metrics and engaged management in discussions of pandemic policies and remote work practices.

Climate Goals & Targets

Short-term Goals:
  • Continue to replace older pipeline and other system facilities to reduce methane leaks.
  • Prioritize pipeline damage prevention and leak survey/repair initiatives.
  • Work with regulators to expand energy conservation programs.
  • Accelerate the conversion of Company vehicles to lower-carbon fuel sources.
  • Sustain a level of travel below pre-COVID-19 levels through virtual meetings and communications.
  • Increase prudent investments in renewable and low-carbon energy projects.
  • Continue supporting emissions reduction technologies development, such as carbon capture.
  • Continue to play an active role in developing public policy that reasonably advances reductions in greenhouse gas emissions and promotes environmental sustainability.

Environmental Challenges

  • Global pandemic, social injustice, political turmoil, economic uncertainty, cyberattacks, hurricanes, and floods.
Mitigation Strategies
  • Chesapeake Utilities team stayed focused on safety and uninterrupted energy service; advanced renewable energy participation; achieved record financial performance.

Supply Chain Management

Responsible Procurement
  • Commitment to diversity in sourcing goods and services; launched a vendor registration portal.

Climate-Related Risks & Opportunities

Physical Risks
  • Hurricanes, floods
Transition Risks
  • Changes in energy markets, regulations
Opportunities
  • Investments in RNG and other renewable energy projects.

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Sustainable Products & Innovation

  • RNG, hydrogen blends

Awards & Recognition

  • Ethical Boardroom Award for Best Corporate Governance
  • Top Workplaces USA award
  • Top Workplace in Delaware
  • Stars of Delaware awards
  • Salisbury Chamber of Commerce Large Business of the Year Award
  • Inclusion in the S&P Small Cap 600 Index

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:234,182 tCO2e/year
Scope 1 Emissions:215,226 tCO2e/year
Scope 2 Emissions:18,956 tCO2e/year
Total Energy Consumption:1,225 MWh/year (solar)

ESG Focus Areas

  • Safety
  • Environment
  • People
  • Ethics

Environmental Achievements

  • Reduced Scope 1 and Scope 2 reported emissions by 16% since 2019
  • Injected nearly 650,000 dekatherms of RNG into pipeline systems
  • Successfully completed a hydrogen blending test at Eight Flags CHP facility
  • 100% of Sharp Energy’s mid/small sized Company vehicles converted to propane
  • 95% of Marlin Gas Services tractor trailers powered by CNG
  • Replaced all cast iron and bare steel mains in Delaware and Maryland distribution territories by 2022

Social Achievements

  • Added an officer-level diversity leader to advance EDI initiatives
  • Established a new policy outlining four focus areas for charitable giving and volunteer efforts
  • Contributed almost $850,000 in community donations and sponsorships
  • Launched Chesapeake Total Wellness program for employee well-being
  • Implemented a new process for gathering and evaluating employee feedback (81% response rate)
  • Achieved Top Workplaces USA award for the third consecutive year

Governance Achievements

  • Recognized by World News Media Ltd. as Best in Corporate Governance in the United States
  • Enhanced enterprise risk management (ERM) process at the Board of Directors’ level
  • Established a new enterprise safety program and dedicated enterprise health and safety team
  • Executive compensation linked to performance, including sustainability goals

Climate Goals & Targets

Long-term Goals:
  • Continued reduction of GHG emissions
  • Continued investments in sustainable energy solutions
Medium-term Goals:
  • Further investments in RNG, hydrogen, and solar energy
  • Implementation of similar energy conservation programs in northern natural gas service territories
Short-term Goals:
  • Achieve top-quartile safety performance against industry benchmarks
  • Achieve damage prevention rate of less than 2.5 hits/thousand locates
  • Achieve preventable motor vehicle incident rate of less than 2.1
  • Achieve total recordable injury rate of less than 2.5

Environmental Challenges

  • Climate-related risks (transition and physical)
  • Cybersecurity threats
  • Maintaining safety performance across a large and geographically dispersed workforce
  • Meeting customer demand while transitioning to lower-carbon energy
Mitigation Strategies
  • Holistic approach to ERM
  • Improved cybersecurity defenses and risk acceptance process
  • Enterprise Safety Program based on ANSI/API RP 1173 and ISO 45001
  • Investments in renewable natural gas (RNG), hydrogen, and solar energy
  • Infrastructure improvements to reduce methane leaks
  • Damage prevention initiatives
  • Fleet conversion to lower-carbon fuels

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Changes in weather patterns
Transition Risks
  • Changes in market preferences
  • New legislation and regulations
  • Alternative forms of energy
Opportunities
  • Investments in renewable energy
  • Increased efficiency and emissions reductions
  • Development of new lower-carbon products and services

Reporting Standards

Frameworks Used: SASB, TCFD, GRI

Certifications: Green Globes Certification (Energy Lane building)

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

Sustainable Products & Innovation

  • RNG
  • Hydrogen-enriched natural gas
  • Propane Autogas

Awards & Recognition

  • Top Workplaces USA
  • Best in Corporate Governance in the United States
  • Stars of Delaware awards

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:210,074 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:192,505 tCO2e/year
Scope 2 Emissions:17,569 tCO2e/year
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

  • Environmental Stewardship
  • Community Engagement
  • Greenhouse Gas Emission Reduction
  • Renewable Energy
  • Energy Efficiency
  • Safety
  • Infrastructure Modernization

Environmental Achievements

  • 25% reduction in Scope 1 and Scope 2 GHG emissions since 2019; 10% year-over-year reduction in 2023.
  • Estimated 1,070 metric tons annual CO2 emissions reduction from alternative fuel fleet vehicles.
  • Cross compression technology saved equivalent of 54 homes’ energy use, 64 passenger vehicles driven, and 360 acres of U.S. forest carbon sequestered.
  • Differentiated gas purchase reduced Scope 3 emissions by an estimated 2,342 MTCO2e over three months.
  • Full Circle Dairy (FCD) facility expected to capture and redirect more than 1,100 metric tons of methane/year.
  • Total autogas deliveries exceeded 6.2 million gallons, displacing diesel and gasoline fuel.

Social Achievements

  • Established a pollinator garden behind headquarters building.
  • Partnered with Arbor Day Foundation’s Energy-Saving Trees Program, resulting in planting nearly 200 trees.
  • Introduced two electric plug-in vehicles into the fleet.
  • Completed pipeline extension enabling natural gas service to communities along the last unserved barrier island in Florida with zero accidents.
  • Processed nearly 8,000 natural gas and electric rebates, totaling almost $3 million.

Governance Achievements

  • Established a cross-functional Methane Emissions Reduction Committee (MERC).
  • Received limited assurance from HXE Partners for GHG emissions data.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Complete LNG storage facility construction on Delmarva (projected in service by Q3 2025).
  • Complete three new projects to connect RNG to Florida City Gas distribution systems (anticipated completion in first half of 2025).
Short-term Goals:
  • Further reduce methane emissions for transmission and gathering operations.

Environmental Challenges

  • Aging infrastructure requiring replacement and upgrades.
  • Potential for third-party damage to pipelines.
  • Methane emissions from operations.
Mitigation Strategies
  • Executing projects to replace aging infrastructure (GRIP, GUARD, SAFE programs).
  • Damage prevention efforts resulting in top-quartile performance.
  • Utilizing cross compression technology, differentiated gas, and methane monitoring devices (Project Canary).
  • Implementing advanced mobile leak detection (AMLD) vehicles.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Weather-related supply disruptions
Transition Risks
  • Not disclosed
Opportunities
  • RNG, CHP, hydrogen, solar investments

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol

Certifications: Null

Third-party Assurance: HXE Partners (limited assurance)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed