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Discovering the Possibilities About Our Sustainability Report 2019 Annual Sustainability Report Discovering the possibilities About our sustainability report The Alectra Inc. 2019 Annual Sustainability Report provides details about Alectra’s social, environmental and economic impact, as well as issues that are of material interest to our stakeholders as validated through a third-party materiality assessment and a variety of engagement activities. Material issues include: Health and Safety/ Public Health and Safety; Infrastructure Modernization; Community Engagement; Climate Change; Customer Services; Energy Affordability; Waste and Material Management; Diversity and Inclusion; Employee Well-Being, Engagement and Development; Energy Efficiency; and Financial Performance. Commitment Our sustainability commitment As a sustainable company, Alectra is committed to meeting today’s needs and the needs of future generations by empowering our customers, communities and employees, protecting the environment, and embracing innovation. Our vision is to be Canada’s leading distribution and integrated energy solutions provider, creating a future where people, businesses and communities will benefit from energy’s full potential. Our mission is to provide customers with smart and simple energy choices, while creating sustainable value for our shareholders, customers, communities and employees. Our values are safety, respect, customer focus, excellence, and innovation. CONTENTS 2 Corporate profile 10 People 3 2019 Achievements 20 Planet 4 Message to our stakeholders 26 Performance 6 A new energy future 32 Corporate governance 8 The Alectra GRE&T Centre Corporate Profile As one of Canada’s Sustainability leading energy companies, at Alectra Alectra Inc. is shaping the Our sustainability future of energy. framework – AlectraCARES We provide safe, reliable and innovative We have embedded sustainability energy solutions to families and About Alectra principles into our core business businesses across the 17 communities strategy and operations in order to in our service territory, while maintaining Alectra Inc. (Alectra) is an investment create enduring value for customers financial strength and delivering greater holding company with a head office in and the communities we serve. value for our shareholders, customers, Mississauga, Ontario that owns 100 AlectraCARES is the umbrella communities and employees. per cent of the common shares of each framework that governs how our of: Alectra Utilities Corporation (Alectra efforts to become a more sustainable We are proud of the progress we have Utilities); and Alectra Energy Solutions Inc. company are connected according made since the company’s inception in Alectra Energy Solutions Inc. wholly owns to the three pillars of sustainability – 2017. We have brought people, processes Alectra Energy Services Inc., which in turn People, Planet, Performance. and systems together to better serve our has two wholly owned subsidiaries: Alectra customers and our communities. Power Services Inc.; and Util-Assist Inc. We hope you enjoy learning about Alectra’s Alectra Utilities Corporation provides alectraCARES many achievements in 2019 in this, our electricity distribution services to more third Annual Sustainability Report. We than one million customers in 17 Ontario believe sharing our performance and communities and is the second largest progress in a transparent manner is one municipally owned local distribution way of demonstrating our commitment to company (LDC) in North America, by the three pillars of sustainability – People, customer count. In addition, Alectra Planet and Performance. Utilities operates a non-regulated commercial rooftop solar photovoltaic generation business. Alectra Energy Solutions Inc. provides competitive energy solutions through the use of innovative technologies. At Alectra, we believe we Alectra Energy Services Inc. provides have an important role to wholesale metering and sub-metering services (electricity, water, gas and play in helping customers thermal) for condominium and commercial and the communities properties; bulk meter testing, verification and installation; and consulting, we serve discover the installation, operation and maintenance possibilities of a new of distributed energy resources. energy future.” Alectra Power Services Inc. provides high-voltage and street lighting services. Brian Bentz Util-Assist Inc.1 is a recognized innovator President and CEO, Alectra Inc. in technology and data-driven solutions for utilities. 1. In 2020, Util-Assist Inc. completed an investment in Grid4C, a leading company in providing artificial intelligence (AI) and machine learning solutions for the energy industry. 2 Alectra Inc. 2019 Annual Sustainability Report 2019 Achievements People 93% $1.1M $110,000 Customer satisfaction AlectraCARES community Employee giving initiatives investment “EXCELLENT” RANKING OVER 1 MILLION SUSTAINABILITY Imagine Canada In Diversity & Inclusion by Customers connected LEADERSHIP AWARD Electricity Human Resources Canadian Electricity SMART 50 COMMUNITY First electric utility in Canada Association – Max Cananzi, ENGAGEMENT AWARD President of Alectra Utilities Ontario to be awarded YWCA WALK A MILE Advantage Power Pricing the Caring Company program recognized as one of IN HER SHOES SENIOR LEADERSHIP designation Top Fundraising Team the most transformative and POSITIONS influential smart cities projects 32 per cent women in the world Planet 19% 52,997 25.42GWh Reduction in GHG emissions LED bulbs installed in Solar energy generated (1,817 tCO2e) streetlights by Alectra-managed solar projects 2019 Environmental REDUCED SINGLE-USE PLASTICS FUEL EFFICIENT VEHICLES LEED® CERTIFICATION Excellence Award By eliminating plastic straws 38 of 575 fleet vehicles are Barrie office building and take-out containers electric or hybrid models and service centre – Electricity Distributors fourth LEED certification Association – Recognized for achievements in the AlectraCARES Planet pillar of sustainability Performance 99.6% $544M $338M Reliability Electricity distribution Total capital investment revenue CORPORATE KNIGHTS 2 CANADIAN ELECTRICITY $5.1 BILLION Alectra GRE&T Centre Alectra ranked as one of the ASSOCIATION – CENTRE OF Total assets 50 Best Corporate Citizens in EXCELLENCE AWARDS The Green Energy & Recognizing Canadian Canada – an annual ranking of Technology Centre sustainability performance innovation and cutting-edge technology in the electricity (GRE&T) was established sector when Guelph Hydro merged with Alectra Alectra Inc. 2019 Annual Sustainability Report 3 Message to our stakeholders Creating a cleaner, Sustainability How is sustainability integrated and brighter future embedded at Alectra? NL: Sustainability is built into the charters Norm Loberg, Chair of the Alectra Board for the Board and its committees. All opportunities and operational matters of Directors and Brian Bentz, President submitted for Board review are examined and Chief Executive Officer of Alectra Inc. within the context of sustainability. In 2019, management and the Board approved a provide their perspective on sustainability, 20 per cent greenhouse gas reduction target. integration and 2019 highlights. BB: Sustainability is the bedrock on which our company is built and is woven into our vision, mission, values, strategic plans, and corporate policies. We have created dedicated positions and operating budgets to ensure continued progress on our sustainability journey, and we track our performance using a balanced scorecard. Integration How has Alectra fared since its formation in 2017? NL: In the three years that Alectra has been in existence, we merged three companies, acquired a fourth, and subsequently, merged with a fifth. What is remarkable is that we have met or exceeded all the targets we set for ourselves and carried through on the promises we made to our shareholders, while maintaining industry leading customer service. The performance of our employees and their commitment to making this work has been absolutely outstanding. We can proudly say Brian Bentz Norm Loberg President and Chief Chair of the Board of Directors that one of our greatest Executive Officer achievements in 2019 is completing the most complex integration project in Ontario utility history.” Brian Bentz President and CEO, Alectra Inc. 4 Alectra Inc. 2019 Annual Sustainability Report BB: A utility integration of this complexity is Three other major undertakings that were unprecedented in Canada. In three years, completed in 2019 were: the development we branded the new company; integrated of a consolidated Asset Management Plan our computer networks; combined our encompassing Alectra’s complete territory; design standards; converged most of our publication of our consolidated Conditions core information systems; consolidated of Service; and submission of Alectra’s first control rooms; established policies; and combined rate application and Distribution successfully integrated our workforces, all System Plan to the Ontario Energy Board. while maintaining a customer satisfaction rate of 93 per cent. Another key milestone was the opening of our innovation hub, the Green Energy The resulting synergies are on track to & Technology (GRE&T) Centre, that will generate economic benefits of half a billion serve as a bridge between research and dollars through lower costs and more efficient development and commercialization for processes. We expect these merger benefits green technology solutions. At the GRE&T to continue resulting in lower costs for our Centre, some of the
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