TRANSCANADA MAP TABLE OF CONTENTS Delivering CEO’S MESSAGE WHO WE ARE energy ABOUT THIS REPORT responsibly WHAT CR MEANS TO US Corporate Responsibility Report 2017 A HEALTHY AND SAFE ENVIRONMENT AND COMMUNITY AN ENGAGED COMMUNITY A THRIVING ECONOMY CAUTIONARY NOTE APPENDIX GRI G4 INDEX TransCanada today TRANSCANADA MAP April 2018 TABLE OF CONTENTS Natural Gas Pipeline In Development/Construction CEO’S MESSAGE Regulated Natural Gas Storage WHO WE ARE Unregulated Natural Gas Storage CANADA ABOUT THIS REPORT Liquids Pipeline CALGARY In Development/Construction WHAT CR MEANS TO US Liquids Tank Terminal A HEALTHY AND SAFE ENVIRONMENT AND TORONTO COMMUNITY AN ENGAGED COMMUNITY A THRIVING ECONOMY UNITED STATES CAUTIONARY NOTE APPENDIX CHARLESTON Natural Gas Power Generation GRI G4 INDEX Under Construction Wind Power Generation HOUSTON Nuclear Power Generation MEXICO MEXICO CITY TransCanada Corporate Responsibility Report 2017 02 Table of contents TRANSCANADA MAP TABLE OF CONTENTS CEO’S MESSAGE WHO WE ARE CEO’S MESSAGE 04 A HEALTHY AND SAFE A THRIVING ECONOMY 62 ABOUT THIS REPORT ENVIRONMENT AND COMMUNITY 27 Financial performance 63 WHO WE ARE 06 Integrity of pipelines and facilities 28 Economic benefits of development 66 WHAT CR MEANS TO US Our business at a glance 07 Emergency preparedness and response 36 Access to markets 69 Our people 09 Health and safety of communities, A HEALTHY AND SAFE employees and contractors 39 CAUTIONARY NOTE 71 ENVIRONMENT AND ABOUT THIS REPORT 10 Climate change and greenhouse gas emissions 42 COMMUNITY Our priorities 11 APPENDIX 73 Our approach to disclosure 15 AN ENGAGED COMMUNITY 48 GLOBAL REPORTING INITIATIVE G4 INDEX 76 AN ENGAGED COMMUNITY Report profile 16 Stakeholder engagement 49 Indigenous relations 51 A THRIVING ECONOMY WHAT CORPORATE RESPONSIBILITY MEANS TO US 17 Working with landowners 54 CAUTIONARY NOTE Our commitment 18 Employee attraction, retention and development 56 Our approach 19 Community investment 58 APPENDIX Our impact 24 GRI G4 INDEX Forward-looking statements This Corporate Responsibility Report contains forward-looking statements and non-GAAP financial measures and includes information for the 2017 calendar year as well as relevant information up to December 31, 2017. Please see the “Cautionary note” for the statement regarding forward-looking information. Our report also has links to websites owned and operated by third parties. When clicking on those links, users will leave our website. These links are provided for additional information and convenience only. TransCanada is not responsible for these websites or their content. On the cover Cover photo: Near Cushing, Oklahoma. As an energy infrastructure company with operations in three countries, we’re proud of the relationships we’ve built with close to 100,000 landowners across our pipeline and asset network. Learn more about our approach to working with landowners on our website. TransCanada Corporate Responsibility Report 2017 03 CEO’s message TRANSCANADA MAP TABLE OF CONTENTS I am pleased to share our 2017 Corporate Responsibility Report. It describes our performance in the areas that matter most to you, including safety, CEO’S MESSAGE environmental protection, community investment and stakeholder engagement. We recognize that the continued success of our company depends on following WHO WE ARE through on the commitments we make to our neighbours, partners and communities. Part of how we achieve that is by listening to those who are ABOUT THIS REPORT involved with or affected by our business, and communicating candidly about our performance. WHAT CR MEANS TO US Preparing this report has helped us hold ourselves accountable for our performance, as well as identifying the work that still needs to be done. This A HEALTHY AND SAFE edition of our report includes enhanced disclosure on key economic, social and ENVIRONMENT AND environmental objectives and reflects input from Indigenous groups, landowners, employees, customers, environmental organizations, investors and community COMMUNITY leaders on issues they are most interested. These include: AN ENGAGED COMMUNITY • Ensuring our pipelines and facilities operate safely every day. Russ Girling, President and Chief Executive Officer • Minimizing our environmental footprint, addressing climate change and A THRIVING ECONOMY management of our greenhouse gas emissions. • Fostering trust and respect through engagement and consultation with CAUTIONARY NOTE At TransCanada we have always strived to be a leader when it comes to safely stakeholders, Indigenous groups and landowners where we propose projects delivering the energy millions of people rely on in an environmentally and socially and operate assets, creating long-term employment opportunities and APPENDIX responsible manner. We continued to build on this foundation in 2017, which economic benefits for their communities. was an exciting and challenging year for our company. We achieved record This is our second year producing a report that follows the Global Reporting GRI G4 INDEX performance, while this past winter put our abilities to the test with extreme temperatures and record snowfall gripping communities across North America. Initiative’s (GRI) G4 core requirements, the most widely used comprehensive I am pleased to say that our talented employees and contractors overcame the sustainability reporting standard in the world. Aligning our report with the obstacles presented by the weather, reminding us of the important role they play GRI G4 core requirements helps to enhance our transparency and produce an in keeping the lights on, buildings warm and society moving forward. effective, meaningful report. As a trusted energy infrastructure company, we take our job very seriously. And We are proud to be recognized by respected third-party agencies for considering with assets that traverse thousands of kilometres that have been in place for business decisions through the lens of sustainability. We were named to the generations, we do more than just transport the energy products we all use Dow Jones Sustainability Index (DJSI) World Index for the 16th year in a row and every day. We also support jobs and generate long-term economic benefits earned a place on DJSI’s North American Sustainability Index for the fourth year across North America, while our thousands of employees and contractors play in a row. Also, for the seventh consecutive year, we were listed among Canada’s an active role in building healthy, vibrant and prosperous communities where we Best 50 Corporate Citizens by Corporate Knights magazine and we have been live and work. acknowledged as a leader when it comes to enhancing gender equality and TransCanada Corporate Responsibility Report 2017 04 CEO’s message TRANSCANADA MAP TABLE OF CONTENTS diversity throughout the organization. Our efforts to create a gender equal work community volunteers gathered on TransCanada property in Michigan to plant environment was also recognized by the inaugural Bloomberg Gender Equality thousands of native wildflowers across 1,600 hectares (4,000 acres) to attract CEO’S MESSAGE Index, where TransCanada was one of two energy companies to be named monarchs and other pollinators. More sites are being planned for protection and to the list. We were also recognized by CDP (formerly the Carbon Disclosure restoration throughout 2018. WHO WE ARE Project) for our actions to disclose carbon emissions and mitigate the business risks of climate change. Looking forward, the world’s demand for energy is expected to continue to grow. Through the commitment of our team to living by our values of safety, ABOUT THIS REPORT Safety is the first of our four core values and underpins everything we do. While integrity, responsibility and collaboration, we are well-positioned to be a we continue to achieve occupational and facility safety performance that is preferred partner in the safe, reliable and sustainable delivery of that energy for WHAT CR MEANS TO US among the best in the industry, we fell short of the high standard we set for decades to come. ourselves last year. In October we experienced the ultimate safety failure, an A HEALTHY AND SAFE employee fatality. This is unacceptable and we are conducting a full investigation Thank you for taking the time to learn more about our company. We are proud of the positive relationships we have made across North America, and we are ENVIRONMENT AND to determine the cause of this tragedy as well as to identify any and all steps we can take to prevent such incidents in the future. We remain committed to committed to listening to what matters most to you. As you read through this COMMUNITY achieving our goal of zero incidents and ensuring that all of our employees and report, we welcome you to ask us questions, tell us how we’re doing and let us contractors return home safely every day. Parts of our company have achieved know how we can improve. AN ENGAGED COMMUNITY zero incidents for decades and we are focused on achieving that level of performance across every department and region in our organization. Sincerely, A THRIVING ECONOMY What makes me most proud to be a member of TransCanada is how our employees come together, year after year, to help make a difference in the CAUTIONARY NOTE communities where we operate. In 2017, our team set a new company record for volunteer hours and financial contributions through our annual employee APPENDIX giving campaign. TransCanada employees rallied around their colleagues and the communities hit by natural disasters