Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety and Asset Integrity
• Environmental Stewardship
• Social Well-being
• Economic Contribution

Environmental Achievements

• Met goal of zero pipeline or facility incidents in 2017
• 100% of high-risk assessments completed as part of historic liability program in 2017
• 34% of high-risk wellsites received reclamation certificates in 2017

Social Achievements

• Named one of Canada’s Top 100 Employers and one of Alberta’s Top 70 Employers in 2017
• Established an official Diversity and Inclusion Advisory Group and a Board Diversity Policy
• Increased Board diversity, with 25% of the Board being female in 2017
• Employees volunteered over 4,000 hours in 2017
• Invested $4.1 million in communities in 2017, with additional $2.4 million from employee giving

Governance Achievements

• Added oversight of corporate social responsibility and overall sustainability to the charter of the Governance, Nominating and Corporate Social Responsibility (CSR) Committee of the Board in 2018

Climate Goals & Targets

Environmental Challenges

• Increase in total direct GHG emissions (49% increase from 2015 to 2017) due to growth and asset changes
• Increase in indirect GHG emissions (21% increase from 2015 to 2017) due to expansion of pipeline systems and facilities
• Increase in employee and contractor preventable motor vehicle incidents in 2017 due to working in tight right-of-way and construction conditions

Mitigation Strategies

• Developing a cogeneration power plant to reduce emissions (operational in 2019)
• Assessing fleet of equipment and facilities to identify opportunities for emission optimization or upgrades
• Implementing new telematics technology to improve driver and vehicle program

Supply Chain Management

Responsible Procurement

• Pre-qualification screening and auditing of suppliers and contractors

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI, TCFD, ISS

Awards & Recognition

• Canada’s Top 100 Employers (2017)
• Alberta’s Top 70 Employers (2017)

Environmental Metrics

ESG Focus Areas

• Safety and Asset Integrity
• Environmental Stewardship
• Social Well-being
• Economic Contributions

Environmental Achievements

• Successfully completed remediation of previously contaminated lumber mill site at Prince Rupert Terminal.
• Installed over 600 solar modules at Drayton Valley and Grande Prairie locations, resulting in lifetime energy generation of over 6,200 megawatt hours.
• Obtained 67 reclamation certificates for abandoned wellsites, representing over half of our wellsite inventory and the return of 264 acres of reclaimed land.

Social Achievements

• Direct investment in communities increased to $10 million in 2019, a greater than 30% increase over the prior year.
• Pembina employees spent almost 8,000 hours of Company time volunteering with charitable partners in 2019.
• Raised nearly $4.5 million for the United Way across Alberta, the largest campaign in the province.
• Launched Inclusion & Diversity Stand.
• Women now represent 36% of our Board of Directors.

Governance Achievements

• Appointed Janet Loduca as General Counsel and Vice President Legal and Sustainability.
• Developed two new ESG 'Stands' (Carbon Stand and Inclusion and Diversity Stand).

Climate Goals & Targets

Environmental Challenges

• Climate change risks including energy market transition, political and regulatory changes, physical and operational changes, and reputational risks.
• Supply chain disruptions.
• Normalizing data across the enterprise for GHG emissions reporting.

Mitigation Strategies

• Meeting all GHG regulations and continually working to decrease energy consumption and intensity.
• Minimizing emissions through operational excellence and continuous improvement.
• Diversified asset portfolio along an integrated value chain.
• Investment decisions based on long-term returns and risk mitigation.
• Increasing focus on ESG and climate change in investment decisions.
• Evaluation of co-generation facilities and renewable energy investments.
• Pursuit of LNG projects.
• Implementing ISNetworld to track contractor safety performance.

Supply Chain Management

Supplier Audits: Critical suppliers will undergo ISO 9001 style quality and technical audits.

Responsible Procurement

• Code of Ethics Policy
• Contractor management system
• ISNetworld for tracking contractor safety performance
• Statement of Compliance with Pembina's safety and environmental standards
• Aboriginal procurement initiatives.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Co-generation facilities
• Renewable energy investments
• LNG projects

Reporting Standards

Frameworks Used: GRI, SASB, TCFD

Certifications: Null

Third-party Assurance: Internal review process; no third-party audit except for financial information.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Canada's Top 100 Employers
• Alberta's Top 75 Employers
• United Way Quantum Leap Award
• United Way Gen Next Award

Environmental Metrics

ESG Focus Areas

• Governance
• Responsible Asset Management
• Employee Well-Being & Culture
• Health and Safety
• Indigenous and Community Engagement
• Energy Transition and Climate

Environmental Achievements

• 30% GHG emission intensity reduction target by 2030 (relative to 2019 baseline)
• Approximately 2% decrease in emissions intensity in 2021
• 47% decrease in total volume of non-hazardous waste produced in 2021 (compared to 2020)
• 25% decrease in total hazardous waste from 2020 to 2021
• 14% reduction in total water withdrawal in 2021 (compared to 2020)
• More than 50% decrease in water disposed in 2021 (compared to 2020)
• Successfully obtained seven well site reclamation certificates in 2021
• Completed restoration on 1.4% (approximately 936 acres) of Pembina’s total land base in 2021
• Zero third-party pipeline strikes in 2021

Social Achievements

• Meaningful progress towards achieving established EDI targets in 2021
• Recognized as one of Canada’s Top Employers for the fifth consecutive year in 2021
• Received the DEAM Award in 2021 for innovative work in employing and accommodating Albertans with disabilities
• $5.6 million invested in communities in 2021
• 2,456 employee volunteer hours in 2021
• Indigenous procurement spend of $101 million in 2021

Governance Achievements

• Appointment of Pembina’s first Chief Sustainability Officer in 2021
• Incorporation of ESG objectives into Pembina’s annual corporate incentive compensation program for all employees in 2021
• Improved or maintained ESG scores or rankings from Sustainalytics and MSCI
• First CDP report submitted in 2021
• Amendments to the Code of Ethics to include human rights, adopted a new Anti-Bribery Policy and Community Relations Policy and enhanced the Indigenous and Tribal Relations Policy in 2021

Climate Goals & Targets

Environmental Challenges

• Fatality of one subcontractor in 2021
• Increase in TRIF for employees and contractors in 2021 relative to 2020
• Under-representation of women in certain roles, particularly in operations

Mitigation Strategies

• Independent third-party assessment of contractor safety program to identify enhancement opportunities
• Strengthening procedures and protocols following the subcontractor fatality
• Increased leadership presence in the field, contractor safety focus and increased emphasis on human factors and human performance in safety
• Renewed partnership with Women Building Futures to increase women’s participation in power engineering
• Implementing a digital waste manifesting pilot project to improve data accuracy and tracking

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Contractor Local Indigenous Involvement Plan requirement

Climate-Related Risks & Opportunities

Opportunities

• LNG
• Carbon capture and sequestration
• Renewable energy

Reporting Standards

Frameworks Used: SASB, WEF, GRI, TCFD, UN SDGs

Third-party Assurance: KPMG (limited assurance for Scope 1 and 2 GHG emissions, hazardous waste, and total water withdrawal)

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 7: Affordable and clean energy
• Goal 10: Reduced inequalities
• Goal 13: Climate action

Awards & Recognition

• Canada’s Top 100 Employers
• Alberta’s Top Employers
• DEAM Award

Environmental Metrics

ESG Focus Areas

• Governance
• Energy Transition and Climate
• Employee Well-being and Culture
• Health and Safety
• Responsible Asset Management
• Indigenous and Community Engagement

Environmental Achievements

• 3% GHG emissions intensity reduction from 2019 to 2022 (pro-forma)
• 46% venting intensity reduction from 2019 to 2022
• Over 37% fugitive intensity reduction from 2019 to 2022
• 24% of processing plant capacity powered by renewable energy
• 59% of 2022 grid electricity consumption from renewable sources

Social Achievements

• Invested $170,000 in communities near operations (inception to year-end)
• Supported over 25 charitable initiatives (inception to year-end)
• 52% of PGI employees are women

Governance Achievements

• Successful integration of asset base under PGI JV ownership
• Determination of ESG performance baseline & 30 by 30 target
• Board commitment to development of ESG strategy
• Establishment of formal quarterly ESG reviews in 2023
• Added Heather Christie-Burns to the Board of Directors in 2023

Climate Goals & Targets

Environmental Challenges

• Substantial capital cost and increased operating costs for CCS projects
• Challenges in industrial electrification due to significant investment and increased operating costs to purchase power
• Three contractor Lost Time Incidents indicating an area for safety improvement

Mitigation Strategies

• Ongoing studies and evaluations to refine CCS opportunity and timing
• Collaboration with customers to assess feasibility of electrification opportunities
• Utilizing the Incident Review Panel process to understand root causes of incidents and develop enhanced safety procedures

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products
• Electrification of gas-fired equipment
• Adding cogeneration at certain facilities

Reporting Standards

Frameworks Used: SASB, GRI

Environmental Metrics

ESG Focus Areas

• Governance
• Energy Transition & Climate
• Employee Well-Being & Culture
• Health & Safety
• Indigenous and Community Engagement
• Responsible Asset Management

Environmental Achievements

• Reduced emissions intensity by three percent in 2023 and remain on track to meet our target of 30% reduction in emissions intensity by 2030.
• Reduced scope 2 emissions by 14%
• Advanced development of the Alberta Carbon Grid and the Cedar LNG project

Social Achievements

• Hosted our first Women’s Field Summit to strengthen our community of women in the field
• Increased employee engagement across all 10 of our drivers
• Launched the Indigenous Inclusion Network and Men’s Mental Health Inclusion Network enhancing our inclusive business strategies and practices
• Exceeded our Executive Diversity target of 40%
• Supported nearly 300 organizations in our operating areas
• Employees volunteered more than 5,500 hours

Governance Achievements

• 60% of our independent Board members are diverse
• 50% of our independent Board members are women
• Aligned 27.5% of our employees’ short-term compensation goals to environmental and workforce metrics
• Launched an Emissions Data Management system to centralize our emissions data

Climate Goals & Targets

Environmental Challenges

• Lower production volumes in 2023 resulting from asset dispositions, wildfire impacts and the Northern Pipeline outage
• Increased employee and contractor TRIF due to an increase in injuries compared to 2022
• Increased Total Non-Hazardous Waste in 2023 was primarily from the Alexis pipeline remediation and re-route project
• Increased Total Hazardous Waste volumes from 2022 to 2023 is primarily due to increased production of propane and gas condensates at our Redwater facilities, resulting in higher process wastes
• Changes and or extreme variability in weather patterns, as well as increases in the frequency of extreme weather events

Mitigation Strategies

• Implemented a number of improvements to reduce our absolute emissions, including equipment and heat piping optimizations, vent and flare reductions, engine upgrades, leak repairs, and redundant equipment shut-ins
• Successfully matured process automation to improve system wide energy efficiency through our pipeline control centre operations
• Aligned our financing strategy with our ESG priorities through our sustainability-linked loan
• Committed to a $25 million investment over multiple years with Energy Impact Partners LP (“EIP”), a global investment firm focused on energy transition investments
• Securing renewable energy sources and utilizing PPAs to offset our scope 2 related emissions
• Implementing revised contractor qualification criteria, tightening our standards and increasing our contractor safety inspections
• Implementing new dedicated Regional Response Teams (“RRT”) and an Incident Technical Response Team (“ITRT”)
• Conducted more than 100 emergency management personnel training sessions and exercises
• Completed reclamation on 499 hectares of pipeline RoWs
• Undertaking annual scenario planning, informed by current and emerging regulation, that evaluates the potential implications of changes in the rate of decarbonization and escalating carbon tax compliance costs to test the resilience of our corporate strategy

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• ESG questionnaires and metrics into the supplier selection and evaluation process
• Supplier Performance Management program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Floods
• Wildfires

Transition Risks

• Changing regulations
• Shifting market demand
• Lower demand for fossil fuels

Opportunities

• Investments in low-carbon energy sources
• Carbon transportation and sequestration
• Development of energy-efficient products

Reporting Standards

Frameworks Used: SASB, GRI, TCFD

Certifications: ISO 45001

Third-party Assurance: Third-party limited assurance of select 2023 environmental metrics

Sustainable Products & Innovation

• Alberta Carbon Grid
• Cedar LNG

Awards & Recognition

• The Globe and Mail’s 2023 Report on Business Women Lead Here
• Immigrants of Distinction Awards
• CN Safe Handling Award