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.”

David G. Hutchens
President and CEO, Fortis Inc.

2020: A YEAR OF PROGRESS

Delivering cleaner energy to customers:

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
Strengthened linkage between sustainability and executive compensation
by adding a new measure to address carbon reduction and climate change.

gender parity
Gender parity on the Fortis
Board of Directors.3


Best safety performance
in our history and top quartile reliability performance relative to industry peers.

$4.2 billion capital plan
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.

Community investment
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 :

  • Builds on our existing light emissions profile
  • 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.

1 Target is based on Scope 1 emissions.

Our People and Culture

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.

1 Board members elected at 2021 Annual Meeting

Our Way of Doing Business

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.