Enbridge Sets New Environmental, Social and Governance Goals for the Future

Enbridge Inc. (TSX: ENB) (NYSE: ENB) (Enbridge or the Company) today announced expanded environmental, social and governance (ESG) goals and targets¹ related to greenhouse gas (GHG) emissions reduction and diversity and inclusion as well as increasing transparency and accountability of our ESG priorities and results. Setting goals in areas core to our business and stakeholders is just one of the ways Enbridge is further integrating ESG into strategy, operations and decision-making.

“Sustainability is integral to our ability to safely and reliably deliver the energy people need and want,” said Al Monaco, President and Chief Executive Officer of Enbridge. “How well we perform as a steward of our environment, a safe operator of essential energy infrastructure, and as a diverse and inclusive employer is inextricably linked to our business success and our ability to create long-term value for all stakeholders.

“While ESG has garnered more attention in recent years, Enbridge’s commitment to strong ESG practices and performance has long been core to how we do business and we’re proud to be recognized as a leader. Our new commitments represent the next stage of our progression to ensure we are positioned to grow Enbridge sustainably for decades to come.”

Enbridge’s ESG goals include:

• A new goal to achieve net zero GHG emissions by 2050; with an interim target to reduce GHG emissions intensity 35% by 2030
• Increased representation of diverse groups within our workforce by 2025 including acceleration of existing goals of 28% from Racial and Ethnic groups, along with new actions to enhance supplier diversity
• Further strengthening Board diversity with an increased goal of 40% representation of women and new goal of 20% of Racial and Ethnic groups by 2025
• Most transparency and reporting of safety and reliability targets that drive continuous improvement towards our goal of zero incidents, injuries and occupational illnesses, and implementation of robust cyber defense programs

Enbridge’s ESG goals support the Company’s strategic priorities to optimize its core energy delivery businesses and execute on the Company’s capital program with emphasis on modernization, technology and innovation. They also contribute to strengthening Enbridge’s ability to capture new growth opportunities and adapt to a lower-carbon future over time, building on the Company’s significant expansion into natural gas and our rapidly growing renewables portfolio.

To drive results and accountability, Enbridge will expand links to incentive compensation to performance on emissions reduction and diversity, complementing safety metrics already embedded. Objectives will be set out in annual scorecards.

“We are committed to delivering strong ESG performance that sustains our industry leadership,” said Al Monaco. “In linking a broader set of ESG goals to compensation, we not only achieve greater accountability, we put ourselves in position to succeed in transitioning to a safer, cleaner and affordable energy future.”

Enbridge’s ESG Goals

The specifics of these new and enhanced ESG goals and targets and associated backgrounder are available online and linked here. Enbridge’s 2019 Sustainability Report is available at Enbridge.com

Environmental

• Reduce the intensity of GHG emissions from our operations by 35% by 2030
• Achieve net zero emissions from our business by 2050
• Maintain the highest standards for safety toward our goal of zero incidents

 

Meeting Emission Reduction Targets:

To meet its 2030 emission intensity reduction target and 2050 net zero target, Enbridge will pursue multiple pathways, strongly aligned with, and embedded in, the Company’s existing business plans, including:

• Modernization and Innovation — Reduce emissions by modernizing equipment and applying innovation to existing energy transportation and distribution systems to increase efficiency and reduce the emissions intensity of existing infrastructure.
• Decarbonizing Energy Use – Reduce emissions intensity of electricity we buy, including building and operating solar power generation facilities to serve Enbridge’s operations and utilizing lower intensity power sources from the grid.
• Investment in Renewables and Lower Carbon Energy – Disciplined investment in lower carbon infrastructure and business lines including wind and solar power generation, hydrogen, and renewable natural gas.
• Offsets and Carbon Credits – Balance residual emissions through procurement of carbon offset credits generated by nature-based solutions and Renewable Energy Certificates (RECs), with a primary focus on areas proximate to our operations.

 

Safety: Our Path to Zero

Enbridge currently has safety targets in place that are linked to compensation.  The Company believes all injuries, incidents and occupational illnesses are preventable and pursues continuous improvement towards a goal of zero incidents.

Enhanced 2021 targets include:

• Achieve a 10% improvement over previous three-year average on Total Recordable Incident Frequency (TRIF) rate for employees and contractors;
• Maintain industry-leading safety performance against US Bureau of Labor Statistics benchmarks; and
• Implement a new voluntary industry standard (CSA Z260-19: Pipeline system safety metrics) criteria for pipeline system safety performance enterprise-wide and establish 2021 baseline to set Business Unit targets for 2022 forward.

 

Social

• Achieve a workforce that represents the communities where Enbridge operates – including the goal by 2025 of 28% employees from Racial and Ethnic demographic groups
• Increase procurement from diverse suppliers and suppliers that support and invest in diversity and inclusion
• Contribute to Indigenous reconciliation through employment strategies and training

 

Enbridge’s goals for representation of women, racial and ethnic groups, people with disabilities and veterans were set and shared with employees in 2018; progress towards them is shared through a “Diversity Dashboard”. Having already made progress, the Company is accelerating its goals from an original date of 2028 to 2025, and sharing them publicly, enhancing transparency and accountability to all stakeholders.

The Company is also committing to specific measures to ensure a more equitable and inclusive workplace through changes in recruitment, development and succession planning to unconscious bias training for all employees. The Company will also be taking steps to increase procurement with diverse suppliers and suppliers that promote diversity and inclusion, as well as add to its continuing efforts to contribute to Indigenous reconciliation through enhanced hiring efforts, cultural awareness training and economic participation.

The table below provides a brief overview of these social goals:

 

Governance

• Achieve representation on the Board of Directors of at least 40% women and 20% of Racial and Ethnic groups by 2025
• Continue sustainability reporting on ESG matters consistent with best practices
• Maintain effective cyber defense through annual certification and training

 

Board diversity has long been a priority, supported by a written policy that highlights the importance the Company places on diversity and experience. Enbridge is expanding its diversity policy to establish specific representation goals for women and racial and ethnic groups: 40% from women and 20% from racial and ethnic groups. Of its 10 independent Board members, four are currently women; and women chair four of the five Board committees.

Similarly, the Company has reported its sustainability efforts and progress on ESG matters for 19 years. Enbridge will continue to align its reporting with best practices as outlined by disclosure frameworks such as those set out by the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosure (TCFD).  Commitments related to  Enbridge’s cyber defense program reflect an ongoing cybersecurity effort that includes application security, information security, network security, disaster recovery planning, operational security and end-user education.

The achievement of near-term emissions reduction and diversity and inclusion goals – along with ongoing safety, environmental protection and cyber security performance – will be incorporated into incentive compensation at the executive level and for all employees.

The table below provides a brief overview of these governance goals: