Building Connections 2018 Sustainability Report
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Building Connections 2018 Sustainability Report Enbridge Inc. 2018 Sustainability Report 1 Forward-Looking Information and Non-GAAP Financial Measures This Sustainability Report contains forward-looking information, or forward-looking statements, and non-GAAP financial measures. Please see the “Forward-Looking Information” and “Non-GAAP Financial Measures” sections on Pages 97 and 99 of this report. Websites Links This report contains references to Enbridge’s website. These references are for the readers’ convenience only. This 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. Enbridge is not responsible for third-party websites or their content. Enbridge is not incorporating by reference any information posted on Enbridge.com or any third party website. Conventions The terms “we”, “our”, “us”, “Company” and “Enbridge” as used in this report refer collectively to Enbridge Inc. and its subsidiaries unless the context suggests otherwise. These terms are used for convenience only and are not intended as a precise description of any separate legal entity within Enbridge. Unless otherwise specified, all dollar amounts are expressed in Canadian dollars; all references to “dollars,” “$” or “C$” are to Canadian dollars and all references to “US$” are to United States dollars. All amounts are provided on a before-tax basis, unless otherwise stated. Contents CEO Message 3 Risk Management 15 Innovation at Enbridge 49 Message from our Vice Our Priority Areas Areas that Enable President, Sustainability 5 Safety and Asset Integrity 18 Continuous Improvement 52 Enbridge Today 6 Community and Indigenous About this Report 83 Our Approach Engagement 30 Performance Data 85 Sustainability at Enbridge 10 Energy Transition and GRI Index 91 Governance 12 Climate Change 41 Enbridge Inc. 2018 Sustainability Report 2 A Message from Our President and CEO 2019 marks 70 years since Enbridge began We’re working hard to cultivate a workforce that is Al Monaco President and construction on our first pipeline to connect vital diverse and inclusive—reflecting the communities Chief Executive Officer supplies of Alberta’s energy to markets in the U.S. and around us, broadening our perspectives and enhancing eastern Canada. Our approach to the business has our decision-making. We’re leveraging technology and always been grounded in respect for people, innovation, including the launch earlier this year of new communities and the environment, and focused on Technology + Innovation Labs in Calgary and Houston to delivering long-term value for our stakeholders—an accelerate technology-driven business solutions. approach that's essentially our definition of sustainability in our business. We know continued success relies on high standards of governance, with policies, sound management Our company has adapted and grown by capturing the practices and strategies to address the environmental opportunities created by changing market fundamentals and social issues of greatest relevance to our business on energy supply and by being responsive to the energy and stakeholders. We remain committed to needs and wants of our customers and consumers. transparency and to holding ourselves accountable for We’ve made safety and protection of the environment our performance. our top priorities and we listen, and act, on the input of our stakeholders—from those who work with us and Through ongoing stakeholder engagement, we’ve invest in our business, to those who live near our assets affirmed three critical—and foundational—areas of and operations that today crisscross a continent. focus and performance: Our job now is to position our company for the future— • Delivering energy safely and reliably, protecting for the next 70 years and beyond. people and the environment. • Engaging in a meaningful way with local and We took significant steps toward this goal in 2018. We Indigenous communities near our operations. invested $7 billion in new pipeline connections to link essential energy supplies to people and places across • Expanding access to energy systems integral to a North America. Rampion Offshore Wind became the lower-carbon economy. first of our European offshore wind projects to commence operations, connecting enough emissions- Safety and Operational Reliability free energy to power 350,000 homes. In August 2019, We work hard to deliver outstanding safety we announced investment of $1.8 billion to proceed with performance, and we are deeply affected by two our fourth offshore wind farm, Saint Nazaire, off the fatalities we experienced—one the loss of a member of coast of France. This is part of our strategy to invest in our own team last year in a helicopter accident, the other lower-carbon-intensive infrastructure. the result of a rupture on one of our Texas Eastern Enbridge Inc. 2018 Sustainability Report 3 natural gas pipelines near Danville, Kentucky in August Pathways to a Lower-Carbon Economy 2019. We experienced three incidents on our natural gas As a leader in North American energy infrastructure, system in late 2018 and early this year; fortunately, no Enbridge has an important role to play in providing one was injured. access to energy that is cleaner. That role involves Our first concern in all instances is for those impacted contributing to greenhouse gas emission reduction and ensuring the safety of the community. These goals and seeking new and improved pathways to incidents serve as a critical reminder of why the safety deliver energy safely, responsibly and sustainably. of our systems has and always will remain our number We’re factoring climate considerations into all aspects of one priority. our business decision-making. We’re focused intently on No incident is acceptable to us. We believe that all energy efficiency and emissions reduction; this includes incidents, injuries and occupational illnesses can be the development of next-generation GHG emission prevented; these events deepen our resolve to ensure reduction targets and plans to meet them. We are also that everyone working on our behalf goes home safely at working to introduce carbon sensitivity analysis into our the end of the day, and that the public and environment capital approval process. We are strong proponents of are protected from harm. We're taking specific steps to partnerships, sound policy and research aimed at further strengthen our safety culture and mindset—and climate solutions and a smooth and balanced ensure, with confidence, the integrity of our systems and energy transition. the safety of our people. In conjunction with this report, in September we published a separate report, Resilient Energy Connecting with Communities Infrastructure, addressing the recommendations of the We never lose sight of the people at the end of our Task Force on Climate-Related Financial Disclosures pipelines or those who live along the miles we traverse (TCFD). The report provides insight into how we see the getting there. We serve hundreds of communities across transition to a lower-emission economy, the resiliency of North America, and our connection with those our strategy and the role for our company. communities begins long before we lay pipe. We engage As we begin our 70th year, our reality is a pace of change early with stakeholders and Indigenous groups who live that is accelerating rapidly. What we know with certainty and work near our projects and operations; this dialogue is that the world needs more energy. We are working helps us understand community interests and concerns, hard to focus our strategic priorities and position our environmental, cultural and historic sensitivities, and company to deliver energy that is affordable, reliable and how we can contribute to the vitality of communities sustainable well into the future. and regions. Enbridge is a team of nearly 14,000 people across North Our relationships with landowners, communities and America. Our employees and contractors take pride in Indigenous groups are essential to our long-term what we do—and fulfilling our purpose to deliver the success, and we focus on building partnerships that energy that fuels people's quality of life. I’d like to endure over the lifecycle of our assets. Our neighbors acknowledge and thank them for their continued hold us to the highest standards—as do we. By listening dedication and commitment to being the best energy to them—taking the time to learn and seek to genuinely delivery company. understand community priorities, and to educate ourselves on Indigenous history, traditions and culture— We appreciate your interest in Enbridge and welcome we build and strengthen positive partnerships. Our your input. Let’s stay connected! report outlines our engagement on key projects such as the Line 3 Replacement Program, and how we approach the challenges and opportunities involved in engaging meaningfully and effectively. Al Monaco Enbridge Inc. 2018 Sustainability Report 4 A Message from Our Vice President, Sustainability Welcome to Enbridge’s 2018 Sustainability Report. We • We strive to be transparent and forthcoming with Roxanna Benoit appreciate your interest and are pleased to have the data, metrics and relevant context and background. Vice President, chance to connect with you on the sustainability issues • We utilize generally accepted sustainability reporting Public Affairs, Communications important to us all. and Sustainability standards developed