Fortis is an energy delivery company serving 3.3 million customers in five Canadian provinces, nine U.S. states and three Caribbean countries.
In this update, you’ll find the latest sustainability key performance indicators for Fortis and our operating utilities.
We produce a detailed report biennially with the next report scheduled for release in 2022.
“We continued to take climate action in 2020 by establishing our carbon emissions reduction target and delivering a 15% reduction in direct emissions. Transitioning to renewables and building the grid we need for a low-carbon future is at the heart of our long-term strategy.”
More than $800 million of our 2020 capital expenditures were focused on delivering cleaner energy to customers.
Natural gas customer energy efficiency savings increased by 23% over the previous year. FortisBC’s commitment to reduce customer emissions 30% by 2030 includes a significant focus on efficiency programs.
Coal generation decreased by 18% over the previous year and, by 2032, Fortis plans to have a coal-free generation mix.
Established a carbon emissions reduction target of 75% by 2035 compared to 2019 levels.
Scope 1 Emissions (in ktonnes of CO2e)
Achieved a 15%
carbon emissions reduction in 2020.
By 2035, 99% of our assets will be focused on energy delivery and renewable, carbon-free generation.
Projected 2035 Total Assets
Strengthening Our Commitment to the Task Force on Climate-Related Financial Disclosures (“TCFD”) Recommendations:
Fortis has become a TCFD supporter.2
Committed to fully implementing the TCFD recommendations.
Climate scenario analysis ongoing to assess the resiliency of our energy delivery businesses with a progress update planned in 2022.
Furthering Our Alignment with Sustainability Accounting Standards Board (“SASB”) Standards:
Added 50+ new key performance indicators to this sustainability update, including 14 that align with SASB standards.
Strengthened linkage between sustainability and executive compensation
by adding a new measure to address carbon reduction and climate change.
Gender parity on the Fortis
Board of Directors.3
Best safety performance
in our history and top quartile reliability performance relative to industry peers.
The lowest number of gas leaks for every 1,000 customers since we started reporting this indicator back in 2016, representing top decile performance relative to industry peers.
No reportable cybersecurity breaches since we began reporting this indicator in 2018.
1 Predominantly natural gas generation. 2 TCFD Supporter was previously referred to as TCFD Signatory. 3 Board members elected at 2021 Annual Meeting.
Our Environment
Carbon emissions reduction target of 75% by 2035 compared to 2019 levels1 :
Aligns with the goals of the Paris Agreement and exceeds the pace of reduction outlined in the two-degree Celsius pathway
A 15% reduction in Scope 1 carbon emissions in 2020 compared to 2019. This represents a 1.9 million tonne reduction, equating to removing more than 400,000 vehicles from the road in one year. This decrease is primarily attributable to the closure of the Navajo Coal Generating Facility at Tucson Electric Power (“TEP”) in late 2019.
Oso Grande Wind project
TEP, our most significant contributor to Scope 1 emissions, is making steady advances on its energy transition. Already in 2021, TEP brought its 250-megawatt (“MW”) Oso Grande Wind project online in New Mexico. The utility also now receives power from a 100-MW solar power system and a 30-MW battery energy storage system that was commissioned in May 2021. With the addition of these two energy systems, TEP has the ability to produce more than 25% of its energy from renewable resources.
The Wataynikaneyap Power Project is the largest First Nations majority-owned infrastructure project in Canada’s history. Fortis brings a 39% equity interest and utility expertise as project manager to the partnership. The construction of an 1,800 kilometre transmission line will link 17 remote First Nations communities in Ontario to the grid for the first time, shifting reliance from diesel generation and reducing emissions by 6.6 million tonnes over a 40-year timeframe. The Wataynikaneyap Power Project is developing local workforce skills and delivering economic benefits to First Nations communities. An important outcome of the project is that it will help alleviate load growth restrictions, which currently hinders economic growth in the region. More than 950 transmission towers have been installed and the project is on track for completion in 2023.
As we witnessed our company’s character and resilience shine through during an unprecedented year, we officially launched our purpose and values in 2020. This sense of togetherness and perseverance brought our Fortis purpose and values to the forefront.
Our teams worked together to create new ways of operating during the pandemic. Our employees demonstrate an unwavering commitment to work safely and deliver reliable electricity and natural gas to our 3.3 million customers.
COVID-19 Measures Taken At All Fortis Utilities:
Employee Safety and Wellness Support
Social Distancing and Safe Operating Practices
Business Continuity Plans
Crisis Communications Plans
Increased Customer and Community Support
Effective Supply Chain Management
Emergency Operations Centres
Incident Command Systems
Cross-Functional Pandemic Response Teams
COVID-19 Best Practice Sharing
Robust IT Systems to allow Working-from-Home
Continued Provision of Essential Services
PURPOSE
Delivering a cleaner energy future
VALUES
Meaningful Inclusion and Diversity Progress
We are committed to improving inclusion and diversity efforts at Fortis and addressing the pressing social issues in our communities. While we have made great strides, we recognize this is a journey. We are committed to measuring our progress and continuing to better reflect the communities we serve.
Key Inclusion and Diversity Accomplishments:
A Fortis-wide council was established to guide our inclusion and diversity strategy and drive its implementation.
We signed the BlackNorth Initiative and joined others in efforts to end anti-Black systemic racism.
The Fortis Board
of Directors achieved gender parity1 and 60% of Fortis utilities have either a female CEO or Board Chair.
Fortis has a governance structure grounded in independence. Our local operating model values local decision-making and keeps Fortis utilities close to their customers and communities.
The Fortis Board of Directors delivers effective leadership and provides oversight of strategy, succession planning, risk management, sustainability and corporate governance.
We expanded our sustainability commitment at the board and executive level by:
Revising the mandate and name of the Board’s Governance and Sustainability Committee to better reflect our commitment to environmental and social issues.
Adding performance measures to the executive annual incentive plan to address carbon reduction and climate change, resulting in an increase in the sustainability weighting for executive compensation.
Fortis includes forward-looking information in this sustainability report within the meaning of applicable Canadian securities laws and forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (collectively referred to as “forward-looking information”). Forward-looking information reflects expectations of Fortis management regarding future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as anticipates, believes, budgets, could, estimates, expects, forecasts, intends, may, might, plans, projects, schedule, should, target, will, would and the negative of these terms and other similar terminology or expressions have been used to identify the forward-looking information, which includes, without limitation: the 2035 carbon emissions reduction target and projected asset mix; FortisBC’s 2030 GHG emission target; and the nature, timing and benefits of the Wataynikaneyap Transmission Power Project.
Forward-looking information involves significant risks, uncertainties and assumptions. Certain material factors or assumptions have been applied in drawing the conclusions contained in the forward-looking information, including, without limitation: no material impact from the COVID-19 pandemic; reasonable outcomes for regulatory proceedings and the expectation of regulatory stability; no material capital project or financing cost overruns; sufficient human resources to deliver service and execute the capital expenditure plan; no significant variability in interest rates; and no significant changes in government energy plans, environmental laws and regulations that could have a material negative impact. Fortis cautions readers that a number of factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors should be considered carefully and undue reliance should not be placed on the forward-looking information. For additional information with respect to certain of these risks or factors, reference should be made to the continuous disclosure materials filed from time to time by the Corporation with Canadian securities regulatory authorities and the Securities and Exchange Commission. All forward-looking information herein is given as of the date of this report. Fortis disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
Unless otherwise specified, all financial information is referenced in Canadian dollars.
I acknowledge that I have been presented with a Forward-Looking Statement associated with the Fortis Sustainability 2021 Update.