Sustainability Report 2017 Contents

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Sustainability Report 2017 Contents Sustainability Report 2017 Contents Forward-looking History of sustainability .........6 How our metrics Vision for the future ............ 20 information ................................. 2 were chosen ...............................11 Area of operations ................... 7 Q&A with Jody Drope ..........22 Accountability Description of Guiding principles and Appendix ....................................23 to sustainability ......................... 3 individual metrics ....................11 business priorities ....................8 Performance summary .......24 A message from Four pillars ..................................12 Framework overview ............ 10 the President and CEO ...........5 Concordance table ................26 Front cover: Colton Aston, Energy Solutions Manager, FortisBC visiting a biogas facility FortisBC Sustainability Report 2017 1 Certain statements contained in and safety issues; absence of adverse this Sustainability Report contain weather conditions and natural forward-looking information within disasters; ability to maintain and the meaning of applicable securities obtain applicable permits; the ability laws in Canada (“forward-looking of FortisBC to attract and retain skilled information”). The words “anticipates”, workforces; continued energy demand; Forward-looking information “believes”, “budgets”, “could”, the ability to arrange sufficient and “envision”, “expects”, “forecasts”, cost-effective financing; no material “intends”, “may”, “might”, “plans”, adverse ratings actions by credit “projects”, “should”, “will”, “would” ratings agencies; and the availability of and similar expressions are often alternative fuel supply. intended to identify forward-looking information, although not all forward- The forward-looking information looking information contains these is subject to risks, uncertainties identifying words. and other factors that could cause actual results to differ materially The forward-looking information from historical results or results reflects management’s current beliefs anticipated by the forward-looking and is based on information currently information. The factors which could available to FortisBC’s management. cause results or events to differ from The forward-looking information in current expectations include, but are this report includes, but is not limited not limited to: regulatory approval to, statements regarding FortisBC’s and rate orders risk; asset breakdown, commitment to continue to deliver operation, maintenance and expansion safe, reliable energy in a responsible risk; environment, health and safety manner to all communities that we matters risk; weather and natural serve; FortisBC’s vision that efficiency disasters risk; permits risk; labour and conservation will lead to lowered relations risk; human resources risk; energy requirements and emissions, information technology infrastructure FortisBC’s plans to reduce GHG risk; interest rates risk; impact of emissions, FortisBC’s plans to offer changes in economic conditions risk; more conservation and efficiency capital resources and liquidity risk; incentives in the future; innovations competiveness and commodity price and investments in biogas supply, risk; and energy supply risk. carbon capture technology, low carbon vehicles and hydrogen blending All forward-looking information into the natural gas system; the in this report and the information development of new markets, FortisBC’s incorporated in this report by reference relationship with Indigenous peoples; is qualified in its entirety by this the diversity of FortisBC’s workforce cautionary statement and, except as and FortisBC’s safety practices. required by law, FortisBC undertakes no obligation to revise or update any The forecasts and projections that forward-looking information as a result make up the forward-looking of new information, future events or information are based on assumptions, otherwise after the date of this report. which include but are not limited to: receipt of applicable regulatory approvals and requested rate orders; absence of asset breakdown; absence of environmental damage and health FortisBC Sustainability Report 2017 2 Accountability to sustainability Castlegar is home to FortisBC's Kootenay Operations Centre. FortisBC Sustainability Report 2017 3 Who we are Our Sustainability Report reflects How do we know that Collaborative: we work as that complete picture and our one company, one team with FortisBC is dedicated to providing tracking and monitoring of the sustainability has always the energy our customers need— metrics contained within will help been important to shared success safely, reliably and at the lowest guide many of the decisions we make FortisBC? Because we can FortisBC strives to build internal reasonable cost. More than 2,300 of in years to come. To see how these relationships and support diversity in our employees provide natural gas, metrics were put into action in 2017, see it reflected in our the workplace, which strengthens our electricity and innovative energy our 2017 Corporate Report acts as an company’s values: ability to recruit and retain the best solutions to 1.2 million customers in important companion piece to this talent. Our teams work in collaboration 135 communities throughout British document. Our core operations and Safety: we put safety first to support successful projects and Columbia. FortisBC invests in and our environmental and social impact Safety is always top of mind. Internally, initiatives that benefit our customers, maintains local energy infrastructure, stories are interconnected. FortisBC’s Target Zero program is the communities in which we operate offers innovative energy solutions our commitment to employee safety. and our employees. We are a company that is forward Externally, public safety is one of our and provides customers with energy Respectful: we are respectful, conservation incentives and programs. thinking: we are preparing today for primary concerns, and we work to We also own and operate liquified the energy landscape of tomorrow. educate the public about safety near gas honest and ethical natural gas (LNG) facilities that FortisBC understands the unique lines and power lines, encourage safe We focus on a safe working supply cleaner-burning natural gas energy needs of British Columbians digging practices and support other environment in which everyone is for transportation in the on-road and and knows that decisions we make organizations that promote public valued, respected and treated with marine sectors, as well as supply LNG today will have an impact for decades safety related to gas and electricity. fairness. We value diversity and for natural gas exports to Asia. to come. inclusion and support that work Customer centric: we value the by providing education for our That’s energy at work. FortisBC: the story customers’ business employees on respect, anti-bullying Every day we work to provide and cultural competency. We work As the province’s largest energy our customers with great service with municipalities and Indigenous provider, ensuring that our business of sustainability and innovative solutions to their communities to build strong and is sustainable over the long-term is While this is the inaugural FortisBC challenges. Because we believe that mutually beneficial relationships. vitally important to us. For many, Sustainability Report, sustainability trust, respect and open communication sustainability is synonymous with has been a part of FortisBC, even are the key to strong relationships, we Progressive: we seek better ways environmental protection and before we referred to it as such. employ a strong team of Community We research innovative energy preservation. While this is an FortisBC has always taken a long-term and Indigenous Relations Managers, solutions so that our customers important piece of sustainability, approach to planning and operating. who work closely with municipalities will continue to have the energy it does not stand alone. To do this successfully, we need and Indigenous communities to they need safely, reliably and at the to be concerned with a balance of For an organization to be sustainable, understand and address their needs. lowest reasonable cost. Along with financial, environmental and social anticipating and innovating for British we must consider everything that factors and outcomes. Focusing on enables our operations to succeed over Columbia’s future energy needs, we sustainability ensures that we are also work to deliver and improve upon the long-term and ensure we strike the pursuing the health and well-being right balance between business, social cutting-edge technology that reduces of our customers, our partners and environmental impacts, including and environmental factors. We must communities, the environment and our consider all of the implications of our Renewable Natural Gas, carbon capture employees — today, tomorrow and into and hydrogen injection. actions rather than a single outcome. the future. We believe that, through smart Our commitment to future planning and analysis, we can track sustainability is firm, as is our goal performance beyond dollars and cents of supporting British Columbians in to develop a complete picture of how transitioning to a low-carbon economy. we are performing across all sectors: Customers, Partners and Communities, Environment and Employees. FortisBC Sustainability Report 2017 4 A message from the President and CEO FortisBC began laying the groundwork for a sustainability-reporting
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