Corporate and Sustainability Report 2018 Contents

Our business...... 2 Partners & communities...... 15 Appendix...... 39 Performance summary—employees...... 43 Area of operations...... 3 Environment...... 21 Performance summary—customers...... 40 Concordance...... 44 A message from Employees...... 26 the President and CEO...... 4 Performance summary— Looking forward...... 30 partners & communities...... 41 Sustainability in all we do...... 6 Leadership team...... 35 Performance Customers...... 10 Board of directors...... 37 summary—environment...... 42

FortisBC Corporate Sustainability Report 2018 1 Our business

FortisBC Inc. and FortisBC Energy Financial highlights (in millions of dollars) Looking back at 2018 Inc. do business as FortisBC. We are FortisBC delivers the energy customers indirectly wholly owned by our parent FortisBC FortisBC Inc. 1 need safely, reliably and at the lowest company, Fortis Inc., a leader in the 2017 2018 Energy Inc. 20171 2018 Electricity reasonable cost. Whether delivering North American electric and gas utility Natural gas & electricity, natural gas or propane, business. Through its subsidiaries, piped propane Net earnings $50 $50 our more than 2,400 employees serve Fortis Inc. serves more than 3.3 million Revenues $381 $391 approximately 1.2 million customers in natural gas and electricity customers. Net earnings $186 $190 135 communities. Operating Revenues $1,199 $1,187 $81 $96 Performance expenses FortisBC owns and operates Operating approximately 49,000 kilometres expenses $297 $308 Capital $105 $106 of natural gas transmission FortisBC expenditures2 and distribution pipelines, and Energy Inc. 2017 2018 Capital Natural gas & expenditures2 $444 $486 7,260 kilometres of electric piped propane transmission and distribution 1 2 power lines. Certain comparative figures have been classified to conform to the current year’s presentation. Capital expenditures before Peak day demand contributions in aid of construction and including cost of removal. (TJ) 1,336 1,353 Our energy infrastructure assets also include B.C.’s largest underground Gas volumes (PJ) 221 212 FortisBC gas customers3 FortisBC electricity customers4 natural gas storage facility, two (Approximately 1,029,476 in 2018) (Approximately 175,868 in 2018) Customer liquefied natural gas (LNG) storage satisfaction index 8.4 8.7 facilities, and four hydroelectric 1025000 1,025,000175000 175,000 generating plants. 995000 995,000169000 169,000 FortisBC Inc. 2017 2018 965000 965,000163000 163,000 Electricity 935000 935,000157000 157,000 Generating 225 225 capacity (MW) 905000 905,000151000 151,000 Peak demand 731 731 875000 875,000145000 145,000 each year (MW) 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018

Energy 3 Includes piped propane customers. 4 Includes direct and indirect customers (customers who are served by utilities to which FortisBC provides wholesale energy or distribution service). Regulated (GWh) 3,305 3,250 Customer satisfaction index 8.2 8.3

FortisBC Corporate Sustainability Report 2018 2 Northwest Area of operations Yukon Territories

Natural gas service area Electric service area Fort Nelson Combined natural gas & electric service area Propane service area FortisBC gas line Enbridge gas line FortisBC electric transmission lines

Aitken Creek Hudson’s Hope

British Mackenzie Columbia Alberta

Prince George

Williams Lake

Revelstoke PA C Kamloops Enderby Campbell River IF Whistler Lumby I Powell River Elkford C Kaslo O Kelowna C Princeton Port Alberni Nanaimo Hope Cranbrook E Vancouver A Trail N Osoyoos

Victoria United States

FortisBC Corporate Sustainability Report 2018 3 In order to maintain our high level of Our investment and activity in service to our growing customer base, the province goes well beyond the A message from we continue to invest in our energy provision of energy to homes and infrastructure. Over the summer, we businesses across B.C. 2018 was a tackled the first leg of arguably one banner year for the advancement of the President and CEO of the most challenging projects we our natural gas for transportation have undertaken — the FortisBC Gas business. More than 150 new Line Upgrades project — a 20 kilometre compressed natural gas (CNG) vehicles Our strategic decisions must also stretch of new pipeline running hit the road in 2018 from organizations be guided by social sustainability, underneath East First Avenue in such as BC Transit, TransLink and considering the needs, priorities Vancouver. As one of the primary UPS — bringing the grand total of and safety of our partners and commuter routes in Metro Vancouver, heavy-duty, on-road natural gas communities, including Indigenous this phase of the project had some vehicles to more than 850. By replacing communities. We must consider challenging impacts on traffic, diesel or gasoline-powered vehicles the sustainability of our workforce local residents and businesses. with CNG, operators are reducing and continually seek out ways to However, through detailed project greenhouse gas (GHG) emissions enrich the careers of our people and planning, extensive consultation from their fleets by 20 to 30 per cent provide meaningful opportunities and engagement, and hard work, the while saving roughly 50 per cent for professional development and section was completed on budget and on fuel costs. advancement. And, of course, we have a day ahead of schedule. Completion BC Ferries completed the conversion to watch the books to ensure our of this segment of the Lower Mainland to LNG of another vessel in its fleet, business is economically sustainable system ensures that we’ll be able to Spirit of British Columbia. This is the over the long-term by serving the continue delivering natural gas to fifth BC Ferries’ vessel that has been needs of customers, delivering reliable, over 210,000 customers — safely and converted to LNG and another ferry affordable energy while maintaining reliably. Work continues in 2019 as we is expected to be converted in 2019. and expanding our customer base. undertake the next phase of the gas line replacement in Coquitlam under A total of seven local vessels are Indeed, taking the long view of now fuelled by FortisBC, five from Roger Dall’Antonia Como Lake Road. I'm confident we’ll our business is key to ensuring see similar success. BC Ferries and another two from Over the last year, the Fortis group sustainability. While we will Seaspan ULC, using our proprietary of companies have continued to always strive to meet the needs and The integrity of our electric onboard trailer-to-ship bunkering increase their focus on sustainability. expectations of our customers today, infrastructure in the interior of technology. In fact, in 2018, our LNG While it has always been a part of we must also look to the priorities of the province is also something we team passed an important milestone our business, we have found that the our future customers. Their interests continually invest capital dollars in. as we surpassed over 1,000 successful concept of sustainability mirrors our will evolve over time and FortisBC must In 2018, we began the $63 million bunkerings since we began in 2016. have the foresight to adapt our services replacement of the spill gates at organizational values and encompasses In 2018, we also expanded to continue to match their expectations the Corra Linn Dam. We expect to the expectations of our customers and our infrastructure in electric of reliability, safety, affordability and a complete the work at Corra Linn by employees on how good companies act. transportation with the construction lower environmental impact. 2021. We also entered the second Simply put, we pursue sustainability of new Direct Current Fast Charging because it is the right thing to do. year of refurbishment of our Upper In 2018, FortisBC continued to Bonnington Dam generating station. electric vehicle (EV) charging stations Many people see sustainability as deliver on customer and shareholder This $32 million investment combines as part of the accelerate Kootenays synonymous with environmental expectations. We saw a net growth new technology with original systems initiative. We believe that FortisBC responsibility. While safeguarding of 21,054 natural gas customers and within the 110-year-old facility to has an integral role to play in the the environment is a key piece of our another 3,525 electricity customers, provide decades more clean, reliable expansion of the province’s EV sustainability framework, it is far from including dynamic new markets such power to our customers. charging network and look forward to the only piece. as natural gas transportation, cannabis helping build out the network of fast growers and blockchain server farms. charging stations in 2019. This growth has helped us deliver $240 million in net earnings in 2018.

FortisBC Corporate Sustainability Report 2018 4 But while the successes of the past year are worth celebrating, a commitment to sustainability requires us to look towards the future and set the foundation for continued success. Late in the year, we released our Clean Growth Pathways to 2050 strategy; our vision of how FortisBC can contribute to a lower carbon future and help drive environmental change in the province. The strategy calls for four primary actions to drive change within our energy systems. 1. Make significant investments in low and zero-carbon vehicles and transportation infrastructure.

2. Ramp up Renewable Natural Gas5 (RNG) and other renewable gas supply to achieve a 15 per cent carbon-neutral gas supply by 2030. 3. Position B.C. as a domestic and international LNG provider. Carefully maintaining existing assets is one of the ways we work to keep rates lower 4. Triple our investment in for our customers. As a result of our refurbishment project, the four power generation energy efficiency and develop units at Upper Bonnington Dam will continue to provide clean electricity for at least innovative energy projects within another 20 years. the province. Initiatives are already underway to We also took time to plan for our The future of energy is evolving. We are proud to present to you our meet these objectives and firmly future through our application for a With the energy needs of the world 2018 Corporate and Sustainability establish FortisBC as a sustainable new multi-year rate plan to establish constantly growing and changing, we Report and demonstrate how energy provider that will be a the required revenue to provide safe, will need to find a range of energy FortisBC is succeeding today while cornerstone of a lower-carbon future reliable and affordable natural gas and solutions to best meet the needs of preparing for tomorrow. in this province. Natural gas has a electricity service for our customers. customers, help communities grow and critical role in providing energy to While the plan is still in the review prosper and protect the environment. tomorrow’s B.C. — an energy that will process, we are confident in the There are challenges ahead, but by be lower-carbon than today yet still direction it charts and are excited focusing on our sustainability pillars, maintains its affordability. Our energy about the new incentives it contains we have the means to meet them. products must be attainable in order to to pursue energy innovations that can We will address energy issues in ways Roger Dall’Antonia be sustainable. raise efficiency, lower emissions and that are sustainable, attainable and President and CEO reduce costs. work to lower GHG emissions. FortisBC

5 Renewable Natural Gas is produced in a different manner than conventional natural gas. It is derived from biogas, which is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. The biogas is captured and cleaned to create carbon neutral Renewable Natural Gas (also called biomethane). FortisBC Corporate Sustainability Report 2018 5 Sustainability in all we do

We provide innovative energy solutions to 1.2 million customers in the 135 communities we serve throughout B.C. and deliver more energy than any other utility in the province.

FortisBC Corporate Sustainability Report 2018 6 About sustainability Sustainability is clearly reflected in our company’s values at FortisBC Value What it means to us How we live our values Internally, we are committed to a strong safety culture, ensuring Sustainability isn’t just Safety We put safety first. Safety our people go home safe every day. Externally, we work to educate something we do. It’s how we is always top of mind. customers, contractors and others about safe practices around natural do everything. gas and electricity. Every day we work to provide our customers with great service This is the commitment of our parent and innovative solutions to their challenges. We employ a team We value the company, Fortis Inc., and it perfectly Customer centric of Community and Key Account Managers, who work closely with customers’ business. encapsulates how we operate at municipalities and Indigenous communities to understand and address FortisBC. Sustainability is embedded their needs. in our work of delivering energy to our customers. We strive to build internal relationships and support inclusivity in We work as one company, the workplace, which strengthens our ability to make sound business We provide innovative energy solutions Collaborative one team with shared decisions and to recruit and retain the best talent. Our teams work to 1.2 million customers in the success. together to support successful projects and initiatives that benefit our 135 communities we serve throughout customers, the communities in which we operate and our employees. B.C. and deliver more energy than any other utility in the province. We focus on a safe working environment in which everyone is valued, Respectful We are respectful, honest respected and treated with fairness. We support inclusion and diversity We invest in and maintain local and ethical. by providing education for our employees on respect, anti-bullying and energy infrastructure and provide cultural awareness. customers with energy conservation We research innovative energy solutions so that our customers will incentives and programs. We also continue to have access to the energy products and solutions they need. own and operate LNG facilities that Progressive We seek better ways. Along with anticipating and innovating for B.C.’s future energy needs, supply natural gas for transportation we also work and partner to deliver and improve upon cutting-edge in the on-road and marine sectors, as technology that helps reduce environmental impacts. well as supply LNG for natural gas exports to Asia, positioning B.C. as For many, sustainability is synonymous Our operations and our environmental a vital domestic and international The importance of our with environmental protection and social impacts are interconnected. LNG provider. We believe that by and preservation. While this is an We are a company that is forward offering practical solutions and sustainability report important pillar underpinning thinking: we are preparing today for leveraging our existing infrastructure, In 2018, we published our first FortisBC's sustainability framework, it the energy landscape of tomorrow. We we can contribute to lowering global Sustainability Report that highlighted is only one aspect. For an organization recognize there is a growing demand GHG emissions.6 the integration of sustainability to flourish, we must consider for innovative energy solutions, not within our business. This year's everything that allows our operations just throughout our province but report continues to showcase the to succeed over the long-term. Through also globally. This includes demand various initiatives that define how careful planning and analysis, we can for affordable and reliable energy sustainability is intrinsically part of track performance to develop a holistic solutions, creation and delivery FortisBC’s priorities and operations. picture of how we are performing. of low-carbon energy and the With continued successes spanning development of innovative technology over a century, including companies and services. Our submission amalgamated throughout the years, to the B.C. Government, the FortisBC is proud to account for Clean Growth Pathway to 2050, identifies a history of sustainable business innovative means to accelerate practices and initiatives. opportunities for natural gas solutions, such as renewable gases and natural gas for transportation. 6 Assuming that the use of natural gas displaces heavier carbon fuels. FortisBC Corporate Sustainability Report 2018 7 Our business activities and investments Environment are focused in these areas, allowing Environment includes the innovative our company to meet customer energy solutions that fit in B.C.’s needs while supporting long-term lower-carbon future and our diligence growth for shareholders. We also on environmental stewardship and acknowledge the increasing demand management. Anticipating and for innovative energy products and innovating for B.C.’s future energy solutions internationally; developing needs, we work to deliver cutting- low-carbon energy options will allow edge technology that helps reduce for reductions of GHG emissions on environmental impacts, including a global scale. renewable gases, hydrogen-injection, carbon capture and the installation Sustainability of fast-charging electric vehicle stations. Our policies today shape our framework environmental practices now and into the future. Our sustainability framework was crafted across four primary Employees pillars: Customers, Partners & We provide a safe, respectful, inclusive Communities, Environment and and engaging workplace that Employees. This framework was recognizes the value of our employees developed after a review of current and their careers. We are committed practices and identified areas of to training and developing our strength and opportunity. employees and supporting inclusion We consulted extensively with in the workplace, which in addition to employees throughout the producing stronger business outcomes, organization. We also conducted enhances our ability to recruit and interviews with senior leadership of retain the best talent. the business community, provincial Employees ensure they perform maintenance in the safest possible manner on our government, unions, regulators, electrical and natural gas infrastructure. Reporting guidelines municipalities, associations and Meeting performance goals in each of Indigenous groups to understand these areas is crucial for FortisBC to their perspectives on FortisBC Customers Partners & communities succeed. Our successes are measured and sustainability. Identifying our This pillar focuses on the quality of We serve the communities in which through the use of sustainability employees and stakeholders’ priorities service provided to our customers, we live and work. We work to enhance performance indicators, all of which and concerns helped guide our public safety programs, emergency our partnerships and relationships align with the Global Reporting decisions on the sustainability pillars preparedness and response and the with local communities, stakeholders, Initiative (GRI) sustainability metrics. safe, reliable delivery of energy. We regulatory agencies, Indigenous and the framework they support. GRI is an independent international work to provide customers with great groups and business organizations. organization that has pioneered service and innovative solutions, Our Partners & Communities pillar sustainability reporting since 1997. ensuring they have access to the demonstrates our commitment The GRI Sustainability Reporting energy they need. to enhancing mutually beneficial Standards are the first and most relationships to support our business widely adopted global standards for operations. These relationships sustainability reporting. include Indigenous communities, where understanding, respect, open communication and trust are key values embedded in FortisBC’s formal Statement of Indigenous Principles.

FortisBC Corporate Sustainability Report 2018 8 Our Sustainability Governance Our business priorities for In order to meet these priorities, our model is similar to that of our parent company 2019 can be summarized by leadership determined four primary four main goals: enabling initiatives: Stakeholder Responsible for: Enhancing customer engagement Safety receives updates from the FortisBC CEO and Having customers is a privilege of any In 2019, we will continue to evolve Board of directors Executive Leadership Team on sustainability business; however, having engaged how we improve and monitor safety initiatives and strategies customers that advocate for our performance. We’ll move to a more oversees the development and progression services is a key ingredient to our leading-indicators approach and of the overarching business strategy and direction long-term success. recognize proactive safety behaviours. CEO and executive of the sustainability initiatives at FortisBC leadership team Growing our business Employees risk management oversight and ensuring In 2019, the continued growth of We will continue to invest in business is conducted to meet high standards our business will remain one of our our employees’ development and of environmental and social responsibility priorities, and doing so in a sustainable expand on opportunities for career operational aspects of sustainability, including the manner will ensure that our energy advancement and challenging Natural gas and identification and development of initiatives that offerings are safe, reliable and work assignments. electricity operations support and progress the FortisBC sustainability affordable for our customers. strategy and business priorities Indigenous relations Preparing for the We will continue to build meaningful Sustainability developing the sustainability strategy and leading business unit performance reporting practices next generation of ratemaking and mutually beneficial relationships We are developing a new ratemaking with our Indigenous partners. framework to calculate gas and We use the United Nations Sustainable electricity rates. This model will Technology advancement Development Goals and the Task ensure that we continue to strike a We will continue to innovate and Force on Climate-related Financial balance within our rate structure advance the use of technology. Disclosures as guidelines for many of that encourages customer service These priorities and enabling initiatives our indicators and metrics. and retention, provides funding speak directly to our view of an for capital investment and spurs Achieving success in sustainability organization that is socially, financially ongoing innovation to unlock new requires a balance of financial, and environmentally sustainable. opportunities in a lower-carbon environmental and social factors and energy future. outcomes. Focusing on sustainability ensures we are pursuing the health Responding to and well-being of our customers, environmental policy our partners and communities, the Our policy environment is changing environment and our employees— rapidly. This presents both challenges today, tomorrow and into the future. and opportunities for us around identifying and delivering innovative As we look toward the future, we want energy practices and solutions. to celebrate our accomplishments in 2018, while continuing to build on them to achieve continued success. The To commemorate the Winter Olympic diversity of the pillars demonstrates Games in Pyeonchang, FortisBC how our business priorities, our sponsored the lighting of the Olympic environmental and social impacts are Cauldron in Vancouver, B.C. with all interconnected. 100 per cent Renewable Natural Gas. Our Street Team members, like Alex Balicki were also present, giving away biodegradable compost buckets.

FortisBC Corporate Sustainability Report 2018 9 CustomerCustomers service

Customers are at the heart of our business. Here, Rodel Nacion from our Willingdon Park Customer Contact Centre helps a customer meet their energy needs.

FortisBC Corporate Sustainability Report 2018 10 Collectively our three contact centres handled approximately 3,500 customer inquiries each day

With one phone call, our contact centre customer service representatives helped

In 2018, our customer service representatives were able to help 82 per cent of customers achieve resolution in one call with our contact centres. Service Quality Metrics (SQM) recognized FortisBC with an award for the Highest Customer Service in the Energy Industry. From left to right: Nader Ghattas (SQM), Sarah Nelson, Mark Hynes, James Teichgrab, Heather Omiunu, Jennifer Datchkoff, Andrea MacInnis, Erica Gugay and Lara Pow (SQM). 82% Our customers depend on us. We To provide more timely of customers achieve resolution recognize the important role we play in Increasing options for communication, we launched a our customers’ lives, and we take that every customer Facebook page to join our Twitter, responsibility seriously. Developing, YouTube, Instagram and LinkedIn maintaining and enhancing strong When we measure performance related accounts. On Facebook, we feature customer relationships is crucial to to the Customer Sustainability pillar, daily postings on rebates, safety and ensuring the sustainability of our one of the most important factors energy-efficiency tips, updates about business. Our employees know the is the quality of service provided to community events and the latest news importance of delivering the type our customers. Our employees work on our company. of service that meets our customers’ hard every day to ensure that each evolving expectations. customer receives friendly, effective By staying abreast of communication service. In 2018, our customer service tools, we are meeting customer representatives were able to help expectations. We are vested in 82 per cent of customers achieve providing customers with a positive resolution in one call with our contact experience that meets their needs centres. Service Quality Metrics (SQM) and expectations, a core tenant of the recognized FortisBC with an award for Customer Sustainability pillar. the Highest Customer Service in the Energy Industry.

FortisBC Corporate Sustainability Report 2018 11 We have offered a paperless billing option to our customers since 2012. In total This year, we saw a 5.5 per cent increase for gas customers and a 5.3 per cent increase for electricity customers subscribing to this service. This reduces costs for all customers and is environmentally friendly. 389,910 Looking forward, we remain gas customers and committed to enhancing the customer experience and ensuring we can continue to meet their expectations. To achieve this, we have started work on several initiatives, including a bill redesign to ensure the information we provide is easy to use and meaningful; 57,528 Betsy Matamoros, Manager, Electric Network Assets, Tyler Hlookoff, Information a new online tool where customers electricity customers have subscribed Systems Technician, and Lisa Ruchkall, Kootenays Regional Engineer, work together in our Kootenay Operations Centre to ensure customers have access to the energy can get personalized energy usage to the paperless billing option they depend on. information; the launch of an online since 2012 program to make applying for natural gas rebates quick and easy; and The effectiveness of Facebook as a Our online account management ongoing improvements to existing In 2018, the FortisBC mobile app platform for customer communication tool, Account Online, continued to channels such as our mobile app and was demonstrated during the natural see an increase in use throughout Account Online. was downloaded gas supply disruption that B.C. faced 2018. To date, we have 432,569 during the winter months of 2018. We natural gas customers and 47,152 Working together received more than 1,000 messages electricity customers enrolled in it. about the disruption caused by Approximately 130,000 customers use to support Enbridge's Transmission South pipeline this tool each month. rupture and our informative posts customer needs We completed several improvements 27,500 garnered close to five million views. Our customers are diverse and so are times, helping to increase the level We also posted numerous videos to enhance the customer experience, their needs. That is especially true for explaining why conservation was including simplifying the automated of accessibility for customers those who are new to Canada. This year, needed and how the rupture could move process, redesigning emails we continued our collaboration with impact B.C.’s natural gas supply. These and notifications to make them the Kambo Energy Group to fund a videos garnered just under 58,000 easier to read and understand, and one-of-a-kind program called Empower views on Facebook alone. adding the ability for natural gas customers to receive emailed billing Me, created for new Canadians and In 2018, we added another new option alerts. These upgrades help customers delivered in nine languages. Through for customers as we launched our understand more about their energy Empower Me, energy mentors provide FortisBC mobile app. The app gives use, consumption and opportunities one-to-one energy-efficiency education our customers anytime, anywhere for energy savings. to customers in their native language. access to their accounts, useful safety Mentors participated in a total of information, rebates, energy-saving 48 community events, reaching tips and more. The app, which has more than 7,000 residents with been downloaded 27,500 times, helped personalized energy advice. increase the level of accessibility for customers.

FortisBC Corporate Sustainability Report 2018 12 The feedback we received provided There was also an increase in valuable insight into what matters customers taking advantage of the This year to our customers and helped inform Connect to Gas conversion rebate, our proposals. which encourages them to move from high-carbon heating systems We take pride in listening to and (oil, propane, wood) to high-efficiency working with the communities in natural gas systems, resulting in GHG which we live and work. For example, emissions reductions. this year, there were 2,623 gas and 22,000 electricity customers under evacuation As the number of natural gas new customers chose to order due to floods and wildfires, and customers continues to grow, we are connect to natural gas they received a bill credit that accounts working to ensure all of our customers for bills they may have received for continue to have access to the energy service to their homes or businesses they need. We are in the process of In 2018, we invested approximately while they were evacuated. upgrading 20 kilometres of gas line between Vancouver and Coquitlam. Ensuring This work will ensure that more than 210,000 homes and businesses across reliable service the Lower Mainland will continue $ to receive the natural gas they count Natural gas remains an affordable and million on every day. 159 efficient energy source that is well in the FortisBC Gas Line We continued to upgrade our natural suited to fit within B.C.’s lower-carbon In 2018, we invested approximately gas line in Burnaby and Coquitlam to future. This year, we saw more than $159 million in the FortisBC Gas Upgrades project ensure more than 210,000 homes and 22,000 new customers choosing to Line Upgrades project, including businesses across the Lower Mainland connect to gas. $31 million in local procurement. continue to receive the natural gas Since January 2018, there they count on every day. The first phase of the upgrade was successfully completed in Vancouver have been approximately and Burnaby in 2018 and the second Maintaining regular contact with our phase will launch in March 2019. customers is important. Like most Every step of the way we have worked utilities, we review our rate structures to keep our customers and the general periodically to make sure the costs to public up-to-date on construction provide service are distributed fairly planning and progress. So far, we 225 across customer classes. This year, we have had close to 7,000 conversations submitted an electric Rate Design suppliers in 28 B.C. municipalities New construction buildings with the community, and as the Application to the British Columbia active on the FortisBC Gas Line choosing natural gas project progresses we will continue Utilities Commission (BCUC) to phase to engage directly, hosting public Upgrades project, including out the two-tier residential rate over information sessions and providing the next five years. Prior to submitting Indigenous-affiliated businesses frequent updates on the project the application, we held open houses website, talkingenergy.ca. in Kelowna, Oliver and Castlegar in our electricity service area. At the In 2018, 85 per cent of new construction sessions, customers learned about the buildings chose natural gas. rate design process and the changes we planned to make, including our request to the BCUC to allow us to phase-in a single rate for electricity customers.

FortisBC Corporate Sustainability Report 2018 13 Our Upper Bonnington Dam refurbishment continued in 2018. The To assist income-qualified $32 million upgrade combined new customers with conservation, technology with original turbines, rotors and shafts to provide our we gave out more than electricity customers with reliable power for another two decades. Continuous maintenance and improvement of our infrastructure is a hallmark of how we ensure reliable service to our customer base. 14,000 Energy Saving Kits Promoting energy conservation We installed over Our conservation and energy- efficiency programs provide rebates and other incentives for homeowners and businesses to promote efficient energy use. These programs help reduce energy demand in B.C. and 7,000 help communities reach their regional FortisBC Street Team member Shayna Lawrie speaks to a home show attendee about energy-saving products in climate action and GHG emission energy-saving measures, available rebates and the benefits of natural gas. reduction goals. Conservation and those homes energy-efficiency programs also As part of our Small Business We are committed to helping B.C. demonstrate our commitment Engagement initiative, we visited cost-effectively achieve its climate to reducing customers' energy We performed over businesses in five communities. goals by providing British Columbians consumption and costs. Initial visits provided businesses with with practical and affordable solutions We offer many rebates to help basic energy-efficiency advice and for their energy needs. To that end, residential customers save money information about rebates that can we applied to the BCUC to double the and energy by upgrading to high- help them conserve natural gas and conservation and efficiency incentives efficiency heating systems, appliances electricity, reduce their energy costs available to our customers for 2019 and products. This year, we provided and enhance the comfort of their and are committed to tripling this 2,000 more than 35,000 residential natural business space. investment by 2022. home energy evaluations gas rebates to help customers upgrade In 2018, we launched our Social to high-efficiency equipment in Housing Retrofit Support Program. their homes. An additional 4,000 The program is designed to encourage rebates were provided to customers and support social housing apartment for high-efficiency electric products. organizations to replace inefficient In 2018, residential rebates totalled equipment and systems with high- over $11.8 million helping to reduce efficiency solutions. We’re working GHG emissions by 163,000 tonnes alongside the program partners to of carbon dioxide equivalent (tCO e). 2 expand access to energy efficiency Annual residential GHG emission funding and rebates in B.C.’s social savings in 2018 were the equivalent of housing sector. removing about 6,300 cars off the road.

FortisBC Corporate Sustainability Report 2018 14 Partners & communities

In April, a group of Vancouver Island FortisBC employees took part in a Community Giving Day at the Port Alberni Salvation Army. Volunteerism is one way we do our part to create a sustainable future for both our communities and our province.

FortisBC Corporate Sustainability Report 2018 15 Relationships are what’s important when we think of our Partners and In 2018 Communities pillar. Those valued relationships have helped make our organization more in tune and responsive to the needs of the communities we serve. We believe we have a responsibility to 75 give back to the neighbourhoods where communities received support through we live and work, which we do in a number of ways. our community investment program Supporting We gave communities In 2018, we donated $42,000 to the Okanagan College Vernon Campus Trades Training Centre to provide students with state-of-the-art equipment and help the College to and causes deliver training on the latest techniques in energy efficient construction. As part of our efforts to create $ a sustainable future for British A focus on safety was one of the To help develop our province’s Columbians, our community million considerations when FortisBC provided workforce, we announced a $42,000 1.8 investment program supports a funding to the Grand Forks Search & gift for the Okanagan College Vernon variety of initiatives that have a back to communities through Rescue organization for two full sets Campus Trades Training Centre in lasting positive impact. We do this corporate investment, employee of specialized personal protective 2018. In addition to supporting the by supporting projects that focus on equipment—equipment that was put to facility, the donation provided students donations and community engagement safety, education, environment or use when the community experienced with state-of-the-art equipment Indigenous initiatives. flooding in May. and helped the College to deliver Prior to the annual Union of BC training on the latest techniques in We also provided financial support to We announced a Municipalities (UBCM) convention, we energy-efficient construction. help the North Kootenay Lake Water invited local government officials from Monitoring Program purchase a new We also partnered with other post- across B.C. to nominate a charity or snow tube to collect core samples from secondary institutions, including the non-profit project in their community snowpacks in the North Kootenay University of British Columbia (on their for a community giving contribution. $ watershed. The collected information Masters of Engineering Leadership In 2018, we received 33 nominations, will help government and private in Clean Energy Engineering and were proud to recognize three 42,000 organizations to plan and implement curriculum content) and our recent recipients that are helping to support adaptive strategies in response to a partnership with the University of gift for the Okanagan College stronger, healthier B.C. communities. changing climate. British Columbia Okanagan campus Vernon Campus to help develop The Sunshine Coast Natural History to support a research position focused This year, we demonstrated our B.C.'s workforce Society in Sechelt, the Nelson Izu-shi on clean energy and enhanced commitment to investing in Friendship Society and the Orphaned building performance. educational initiatives with our support Wildlife Rehabilitation Society in Delta of the Vancouver Sun’s Adopt-a-School each received a $15,000 award. program. A.H.P. Matthew Elementary’s after-school program, BLAST and the Peer-to-Peer Mentoring Program at Queen Elizabeth Secondary received $5,000 each to support programming for at-risk and vulnerable youth.

FortisBC Corporate Sustainability Report 2018 16 Our donations in 2018 were not limited Working with the Osoyoos Indian Supporting traditional practices is to dollars. As always, we were proud Band (OIB), we helped the community another way we show respect for to support the volunteer efforts of take steps to make the homes on their Indigenous communities. This year, employees who made a difference in reserve land more energy efficient. two second-growth cedars needed to their communities in 2018. Through Many of the homes on the reserve be removed as part of work to extend our Community Giving Days, were initially built between the 1960s culverts at the Silver Creek watershed employees volunteer to offer hands- and 1980s, before opportunities for in Burnaby for the FortisBC Gas Line on support for a community group in increased energy-efficiency measures Upgrades project. We donated both need. Employees helped the Kamloops were able to be identified. logs to Suwa’lkh School, an Indigenous Boys & Girls Club build a playground, school in Coquitlam. The logs were volunteered with the Salvation Army We provided financial support to used for student projects including food bank in Port Alberni and planted the OIB as they conducted energy traditional wood carving and bark over 350 native trees, ferns and shrubs evaluations for all homes on reserve. weaving classes. We believe in building in Burnaby’s Stoney Creek Trail system. Following the evaluations, band-owned strong and positive relationships with Efforts like these help to ensure homes were retrofitted and rebates local Indigenous communities, and this that the communities we operate in were provided to retrofit member- project is an example of the mutually will continue to be sustainable for owned homes. This assistance helped beneficial work we do every day to generations to come. to significantly upgrade housing strengthen these relationships. Our employees lead a firefighter conditions and lower energy costs. training session, demonstrating potential hazards in a life-size Strengthening We value inclusion and encourage Preparing first simulated vehicle crash using an awareness and respect for Indigenous electrical safety board where the Indigenous relations cultures and beliefs by supporting responders vehicle is touching a “live” power pole. At FortisBC, we are guided by our programs and projects that showcase Partnering with local emergency Statement of Indigenous Principles, the traditions and knowledge of responders is important to our these communities. which helps ensure that we conduct overall safety efforts. Several of Our natural gas and electricity business in a manner that respects the communities we operate in are In 2018, we provided funding to the infrastructure crosses more than the social, economic and cultural Trans Canada Trail to support the served by rural, often volunteer, fire interests of Indigenous Peoples. Our gas installation of interpretive signs along departments. With limited resources, and electricity infrastructure crosses various sections of the Chief Isadore it is especially important for these more than 150 Indigenous traditional portion of the trail in southeastern departments to know what to expect territories and we provide service to B.C. The trail takes its name from in an emergency. 56 Indigenous communities. We know the Chief who brought peace to the that it is through collaboration we are Every year volunteer firefighters gather Ktunaxa Nation and European settlers for their spring training seminar, a 150 best able to partner with Indigenous during a time of tension in the 1880s. Indigenous traditional territories Peoples to provide energy solutions weekend event where they get hands- The multilingual signs, which can be on experience fighting various types and offer ways to help increase found at points of interest on the trail, energy efficiency. of dangers. In 2018, more than 300 allow users to learn more about the firefighters from 72 fire departments history, traditions and legends of the across B.C., Alberta and Washington We provide service to Ktunaxa people. attended. Participants followed a circuit of 26 stations that included four FortisBC-led stops teaching firefighters how to handle electrical, natural gas and LNG emergencies. FortisBC was also a sponsor of the event. 56 Indigenous communities

FortisBC Corporate Sustainability Report 2018 17 We were also proud to support the First Nations Emergency Services In 2018, we processed more than Society at the Safety Expo held in Esquimalt. The Expo brought together volunteer firefighters from Indigenous communities across the province for a firefighter competition and two days of intensive fire and equipment training. Along with financial support, 2018 was 157,700 the first year we provided additional BC One Call requests and educational sessions on natural gas line hits decreased by and LNG safety to 60 participants from nine Indigenous communities. Responding to the Volunteer firefighters from Indigenous communities across the province gathered in Transmission South Esquimalt for a firefighter competition and intensive fire and equipment training. 3.8% pipeline rupture from 2017 Although we already had a healthy The Call Before You Dig public In 2018, B.C. faced a potential appreciation for the community awareness campaign with BC One Call disruption in its supply of natural spirit that exists in B.C., we were was also successful in encouraging gas due to the rupture of Enbridge’s truly overwhelmed by the support we people to find out the locations of We provided educational sessions on Transmission South gas line near received from customers, both large underground utilities before beginning natural gas and LNG safety to Prince George. Immediately after and small. any type of ground disturbance work. the rupture on October 9, we began reaching out to the provincial Following the incident, a third- We work closely with provincial government, municipalities, the party contractor surveyed over 800 emergency response officials as well BC Chamber of Commerce, industry respondents across the province and as local fire and emergency authorities associations and customers to provide found that 77 per cent of respondents to help monitor wildfire situations situation updates. rated our communications efforts in the province, ensure public safety 60 regarding the natural gas shortage and protect our natural gas and participants from nine As part of our commitment to providing situation as either “good” or “excellent”. electricity infrastructure. proactive updates, we hosted community Indigenous communities and government relations stakeholder In 2018, we worked with provincial, calls and face-to-face meetings, Keeping regional and municipal emergency participated in numerous media communities safe agencies during the wildfire season to interviews, provided shareable content perform preventative, precautionary Five FortisBC-hosted Ground to all impacted municipalities and We frequently collaborate with emergency work on our system and Disturbance Seminars were distributed several all-customer emails other utility operators, regulators engaged in several daily wildfire and update videos via social media. and associations to promote damage coordination calls around the province. attended by prevention messaging. In partnership As a result of the information we with the BC Common Ground Alliance provided, municipal governments, and other members, FortisBC hosted schools, business organizations and five Ground Disturbance Seminars customers all took steps to conserve (Victoria, Kamloops, Chilliwack, and helped reduce overall demand by Vancouver and Surrey) to contractors about 20 per cent in October. 200 and builders on excavation safety professional contractors and and best practices. In total, over 200 professional contractors and municipal municipal workers workers attended the sessions.

FortisBC Corporate Sustainability Report 2018 18 We work with B.C. municipalities and regional districts to share information In 2018, our major projects team and resources on how residents can hosted more than save energy. This year, our Direct Community Engagement program reached out to residents in Saanich, Vancouver, Surrey and Summerland. Our community ambassadors encouraged event attendees to become more energy efficient in their homes 60 by pledging to integrate a simple public engagement activities conservation behaviour into their daily and open houses lives. Our community ambassadors attended 72 events, garnering 5,900 customer interactions and more than 1,500 energy conservation Our community pledges. This was part of our ongoing commitment to help customers ambassadors garnered understand more about their energy use, consumption and opportunities for energy savings. We also believe in educating At a public information session in Vancouver, Blake Mansbridge, Community Relations British Columbia’s next generation 1,500 Manager, chats with a community member. These sessions give local residents about energy solutions, safety and energy conservation pledges an opportunity to talk to us about our gas line upgrades in Vancouver, Burnaby conservation as part of their daily lives. and Coquitlam. In 2018, we presented in many schools and provided more than 700 classroom Project construction provides a good resources as part of our Energy Leaders Connecting with example of how this takes place. curriculum. Through our Energy communities Beginning in the early stages of project Champions program, we reached development, employees make sure approximately 20,000 students in Understanding and addressing the residents and business owners have B.C. Delivered together with teachers, interests of communities where we an opportunity to ask questions and FortisBC employee volunteers and the operate is critical. We regularly engage make suggestions. As development BC Lions, our school programs help with local communities to create and construction continues, they teach students about the importance opportunities for conversations and are updated through face-to-face of energy literacy, natural gas and collaboration with stakeholders. meetings, community open house electricity safety and conservation. events, project newsletters and other communications. Once development is complete, we continue to communicate with stakeholders to help ensure community needs are being met. In 2018, our major projects team hosted more than 60 public engagement activities and open houses.

FortisBC Corporate Sustainability Report 2018 19 Partnering for climate action Through our Climate Action Partners program, we have been able to develop community energy plans to promote RNG and CNG, boost energy conservation behaviour and build a broad awareness of FortisBC’s rebates for energy efficiency and conservation activities. In 2018, the City of Surrey increased participation in our conservation and energy management programs. For example, participation in the Rental Apartment Efficiency Program was up by 600 per cent from 2017. We’re also working with the District of Saanich and City of Victoria on a regional approach to promoting our energy-saving programs that aid income-qualified customers. REnEW is a hands-on energy-efficiency retrofitting training course created to help Working with the City of Kelowna, we participants gain self-confidence and job-ready skills, while employers gain access to helped develop a plan to implement the entry-level skilled workers they need. the BC Energy Step Code, including a workshop to educate and train the builder community on the incremental Creating opportunities In 2018, FortisBC held a REnEW session requirements of building to the code. in Kelowna in partnership with the Participation in the Rental Apartment John Howard Society of Central and We’re supporting additional workshops together Efficiency Program was up by to educate stakeholders on best Southern Okanagan. Participants Residential Energy Efficiency Works practices for building a more efficient received energy-efficiency trade (REnEW) is a training program building envelope in the Regional training, safety training, a full set that was created by FortisBC in District of Central Kootenay and City of of professional-quality tools, an co-operation with community groups Surrey, among other communities. enhanced resume and a renewed to help individuals with barriers to sense of confidence around their With our support, the City of Kamloops employment train for jobs in the career prospects. 600% has undertaken multiple initiatives growing field of energy-efficiency in comparison to 2017 numbers to help residents and businesses retrofitting. The course helps In 2018, we partnered with reduce their GHG emissions. These participants gain self-confidence and WorkWithUs, a Vancouver-based non- initiatives included hosting community job-ready skills, while employers gain profit staffing organization that works energy-efficiency block parties and access to the entry-level skilled workers to improve community economic mail campaigns, and encouraging they need. development by providing meaningful property owners to visit the BC Home employment opportunities for Energy Coach website to learn about marginalized communities. This year, energy-saving advice and utility we provided term work assignments incentive programs. for six WorkWithUs candidates.

FortisBC Corporate Sustainability Report 2018 20 EnvironmentCustomer service

As part of our commitment to protecting biodiversity and wildlife, we operate an Osprey Nest Management Program, which includes live-streaming an osprey nest in Kelowna.

FortisBC Corporate Sustainability Report 2018 21 We are invested in finding cost- Our carbon capture pilot program effective energy solutions that fit is another example of innovative B.C.’s lower-carbon future through technology helping B.C. businesses save both our natural gas and electric energy and decrease GHG emissions. operations. Natural gas remains Pilot program participants receive one of the cleanest conventional carbon capture units, which can reduce carbon-based energy sources currently the GHG emissions of commercial available and provides our customers natural gas boilers by up to 10 per cent, with reliable and affordable energy and convert carbon dioxide into soda that powers homes and businesses. ash, a byproduct that can be used to Technological advances have further manufacture dyes and colouring agents, improved the efficiency of using synthetic detergents and fertilizers. natural gas, extracting more energy at lower emissions. Our hydroelectric In 2018, we had three carbon capture generation is also proven clean units installed in local businesses. technology. Through power from our Carbon capture technology has accelerate Kootenays is Canada’s first regional and community-driven strategy to accelerate the adoption of electric vehicles. Projects like this are just one of the ways own dams and purchased from others, significant potential to help B.C. meet we are meeting our customers’ needs for cleaner energy options. FortisBC's electricity is among the its emissions reduction goals. 7 cleanest in North America. With our large network of distribution More than 1,800 kilometres of the Anticipating B.C.’s energy needs, and transmission pipeline used for Kootenay region’s highways can we work to deliver technology and transporting natural gas throughout More than now be driven in an EV thanks to 13 incentives that further reduce the province to customers, managing strategically placed Direct Current environmental impacts, including our own GHG emissions is important Fast Chargers, five of which are owned RNG, natural gas for transportation to us. We have undertaken a number and operated by FortisBC. There are and EV while pursuing carbon capture, of initiatives to manage and reduce also 40 Level 2 charging stations hydrogen injection and solar power GHGs from our system. These activities include leak detection and repair at installed. The stations are a result of km technology. Our policies today shape accelerate Kootenays, a unique rural 1,800 our practices now, and into the future. compressor stations, pipe surveys and inline inspection of transmission partnership that FortisBC is a part of the Kootenay region’s pipeline infrastructure and the of that has the objective of linking highways can now be driven in Working to reduce GHG development of a fugitive emissions Kootenay communities through a clean an electric vehicle management plan for LNG. Our Tilbury transportation network. emissions from the LNG facility is powered by electricity, natural gas system creating safe, clean, low-GHG emitting LNG.8 We believe that renewable energy will be a key driver towards reducing B.C.’s carbon emissions. As we continue to Driving electrical develop RNG for our customers, we are innovation also exploring adding clean-burning hydrogen to our natural gas supply, Working with governments at all levels, which can help reduce B.C.'s we're partnering with communities to carbon emissions. facilitate increased adoption of EVs as a cleaner transportation choice. Partnering with community organizations to realize their carbon reduction goals helps to encourage innovation in operations and the development of new products. 7 Source: Clean Energy BC, Electrification of BC White Kootenay EV charging stations Paper —page 3. 8 Compared to LNG produced in facilities using natural gas. FortisBC Corporate Sustainability Report 2018 22 In 2018, we were recognized by the Canadian Electricity Association’s From April to September, we had Centre of Excellence for our role in more than building, owning and operating EV fuelling stations in the accelerate Kootenays initiative. We are one of the first regulated utilities in Canada to have a rate for service for EV drivers approved by our regulator and look forward to helping spur the 76,000 development of a wider EV charging network with additional infrastructure deployments planned for 2019 onwards. Linking communities by developing critical infrastructure encourages views the increased use of EVs, which of our osprey webcam helps to reduce GHG emissions from transportation.

This infrastructure is also required Several FortisBC employees took part in a Community Giving Day in Burnaby’s Stoney We donated to support B.C.'s mandate of having Creek Trail system. Their efforts helped restore a slope near a decommissioned trail 100 per cent of new vehicle sales be that had been eroding due to human impact. zero-emission by 2040. FortisBC's role in developing the EV charging $ Stoney Creek Trail system. The native We pride ourselves on being a infrastructure is indicative of the role plants will bring the area near the good neighbour. We know major we play as both an energy partner and creek closer to its natural state. construction projects can be 250,000 provider in B.C. disruptive and our commitment to the to B.C.'s Invasive Mussel Our environmental management community is to reduce those impacts Defence Program Working around nature team works with local authorities as much as possible. One of our goals is to assess and prevent the spread of to restore areas to the same condition, As part of our commitment to non-North American invasive species or better, than before we started work. protecting biodiversity and such as zebra and quagga mussels. wildlife, we operate an Osprey Nest This species of freshwater mussels For our Surrey to Coquitlam gas line Management Program, which includes grow at a rapid rate, killing off local upgrade, we installed a new gas line live-streaming of an osprey nest in marine life, degrading water quality, parallel to an existing one that has Kelowna. The webcam had more than damaging boats and posing a threat been in service for almost 60 years. 76,000 views from April to September, to our hydroelectric dams. To stem After we finished construction at demonstrating how our program helps the mussels’ spread while ensuring the end of 2017, our focus shifted protect our infrastructure, educates the protection of native wildlife, we to restoring the areas and habitat. the public and keeps the birds safe. provided $250,000 to B.C.’s Invasive Restoration efforts included work done Mussel Defence program. This year, we to lawns, shrubbery and driveways, Every year, we provide funding for a also donated to the Invasive Species hydro-seeding and riparian restoration variety of community initiatives. This Council of British Columbia to support that took place where construction year, our employees helped restore a efforts to reduce the impact passed through watercourses. slope near a decommissioned trail in of non-native species. Burnaby that had been eroding due to human impact. We planted 350 native trees, ferns and shrubs in the

FortisBC Corporate Sustainability Report 2018 23 Moving forward with As the first utility in Canada to In recognition of the Surrey RNG offer RNG to its customers, we were initiative, we were awarded the We purchased approximately energy solutions enthused to see the government set a Circular Economy Award at the Surrey 178,000 gigajoules of RNG on behalf target of 15 per cent renewable content Board of Trade 2018 Environment and FortisBC Alternative Energy Services in natural gas by 2030. Business Awards. This project utilized of our customers. That's equivalent Inc. (FAES) is an affiliate of FortisBC a unique contract structure that to removing Energy Inc. and a trusted owner and took advantage of our existing RNG operator of thermal energy systems. program and infrastructure to allow It owns and operate thermal systems Renewable gas the City of Surrey to meet its goal of at 45 sites across B.C. A great example implementing a closed loop system, of ingenuity at work is the FAES benefiting multiple stakeholders owned-and-operated TELUS Garden and helping to reduce waste and thermal system. This system recovers GHG emissions. 1,900 energy from the neighbouring cars off the road for one year telecommunications building that Another innovative solution helping would normally be released into the our customers meet the needs of a low- atmosphere and uses it for space and carbon energy landscape is the use of We have more than hot water heating throughout the natural gas for transportation. Natural development, reducing demand from gas-fuelled vehicles and marine vessels conventional energy sources.9 provide a 19 to 30 per cent GHG reduction when compared to fuelling In 2018, FAES optimized the system The government set a 2030 target of with traditional gasoline or diesel.11 at TELUS Garden which means the 15 per cent of natural gas used in homes Fleet owners are increasingly turning usage of the recoverable waste heat to be renewable. to natural gas for transportation 10,500 energy increased, improving the fuel, saving on fuel costs and RNG customers and five suppliers carbon intensity performance of the We know the environmental benefits reducing emissions. development. TELUS Garden now of producing and using this sustainable meets or exceeds the stringent carbon energy and we are uniquely positioned In May, the first of TransLink's 106 intensity targets set for new builds in to help B.C. meet its 2030 target. Since new CNG buses arrived and began the City of Vancouver. 2010, when we first began injecting serving customers in Surrey, with full RNG into our system, we have grown roll out of the new clean energy buses A FortisBC energy solution that the program to more than 10,500 continuing throughout 2018. Our lowers the carbon intensity of our customers and five suppliers. vehicle incentive program helped to natural gas system is RNG, a certified offset TransLink’s purchasing costs, 10 carbon neutral energy source made In 2018, we welcomed a new RNG while the CNG buses are expected to from organic waste from landfills, supplier as the Surrey Biofuel Facility reduce provincial GHG emissions, have wastewater treatment facilities officially opened. The facility converts a longer engine life and have lower fuel and agriculture. curbside organic waste into RNG to costs than diesel buses.12 fuel the City’s fleet of natural gas In 2018, we purchased approximately powered waste collection and service Just a month later, UPS Canada and 178,000 gigajoules of RNG on behalf vehicles, creating a net-zero carbon FortisBC announced the launch of of our customers, which is equivalent impact and totally integrated organic new CNG vehicles and a new custom to avoiding about 8,900 tCO2e or waste management system. We are built natural gas fuelling station in removing 1,900 cars off the road for proud to operate the interconnection Richmond B.C. Seven CNG highway one year. facility at this project, monitoring gas tractors and 40 delivery trucks were quality and connecting this source of added to the current fleet. Presently, 9 Assuming system is operating to design specifications. RNG to customers. more than 40 per cent of UPS Canada’s 10 FortisBC’s Renewable Natural Gas has been designated fleet runs on alternative fuels. as carbon neutral in BC by Offsetters. 11 Sources: Liquefied natural gas: a marine fuel for Canada’s West Coast—page 31. Northwest Gas Association, Natural gas facts—page 12. 12 Source: Canadian Natural Gas Vehicle Alliance.

FortisBC Corporate Sustainability Report 2018 24 Customers in B.C.’s marine Helping to transportation sector are also reduce emissions experiencing the benefits of LNG. With our first-in-the-world tanker truck on a global scale technology, we can deliver fuel while aboard marine vessels, making it easier Climate change is a global issue, and for transportation customers to make we are part of the solution. One the switch to LNG. In fact, this year of the ways we’re doing this is by we celebrated our 1,000th bunkering exploring small-scale exports of LNG milestone, showcasing B.C.’s leadership to displace high-carbon alternatives on innovative climate action. like coal to countries that are looking to significantly reduce their GHG Through our relationship with emissions and air pollutants. BC Ferries, LNG is fuelling the entire Salish class of vessels (the Orca, Raven Using LNG as a marine fuel provides an opportunity to significantly lower GHG The world’s transition to lower-carbon and Eagle). In 2018, we commissioned emissions and improve air quality on a global scale. We developed a first-in-the- world proprietary tanker truck technology to deliver fuel while on board the vessel. energy sources presents a unique BC Ferries’ Spirit of British Columbia to opportunity for FortisBC, since we have Innovative solutions like this help make it easier for transportation customers to make be fuelled with LNG. BC Ferries expects the switch to LNG. the only two LNG storage facilities to reduce CO2e emissions by 12,500 on Canada’s West Coast. More than tonnes—or the equivalent of taking just an economic opportunity for 2,500 vehicles off the road—every year Clean Growth Canada, helping countries transition by using LNG instead of marine diesel. By using LNG, BC Ferries expects to from high-carbon fuels to cleaner and low-cost alternatives such as natural Seaspan ULC continues to operate two Pathway to 2050 reduce CO2e emissions by gas demonstrates our commitment to LNG-fuelled vessels, each of which Late last year, the provincial supporting our customers’ efforts to bunker three times per week. Seaspan government rolled out CleanBC— achieve their climate action goals and ULC has also committed to adding two its plan to cut GHG emissions and improve air quality on a global scale. additional LNG-fuelled vessels to their increase energy efficiency. As an fleet by 2021. active stakeholder, we have supported We are continuing to invest in our the development of this plan and system to serve domestic customers 20000 20,000 12,500 we are encouraged by the vision the and reach new customers overseas. government has put forward. One of the ways we’re doing this is by 1000 1,000 expanding our Tilbury LNG storage As a leading energy provider in B.C., facility, which is designed to be the 12000 12,000 we believe we have a significant role cleanest LNG facility for export in to play in helping the provincial tonnes the world. 8000 8,000 government deliver on its climate and energy goals. In 2018, we developed a In 2018, we doubled the number 000 ,000 Clean Growth Pathway to 2050 strategy of LNG export customers, who all that is based on improving efficiency, returned for additional orders. We’re reducing GHG emissions and driving 0 0 also in discussion with a number of 2017 2018 innovation while supporting economic potential overseas customers who are growth and maintaining affordability interested in cost-effective natural gas GHG emissions saved from LNG used for and customer choice. This is an from Tilbury, which is why we think marine bunkering important strategic direction for the future is bright for LNG exports FortisBC and guides many of our from B.C. initiatives into the future. We’re excited to work with our customers and government partners to fulfil climate promises.

FortisBC Corporate Sustainability Report 2018 25 Employees

Barry Page, Crew Leader Communications Protections & Controls (CPC) Network Services, and Sophia Heuston, CPC Technologist Network Services, monitor our electric system from the Kootenay Operations Centre. We monitor our system 24 hours a day, 365 days a year and conduct regular inspections.

FortisBC Corporate Sustainability Report 2018 26 Our employees drive the success of our organization. We have more than 2,400 employees across British Columbia. This includes both union and non- union employees. Our goal is to maintain a workplace that offers a wide range of opportunities and is safe, inclusive, diverse and engaging. We support our employees by developing their career growth, enabling career success and providing challenging and meaningful work assignments.

Our 7,260 kilometres of transmission and distribution electrical power lines receive Putting safety first ongoing maintenance. Crews look for damage during the annual drive-by line patrol Safety is our top priority. This and twice a year, employees will do an aerial patrol of our transmission lines and commitment is the backbone of harder-to-access distribution lines. Target Zero, our collective vision of an interdependent safety environment As part of our ongoing commitment In the final days of 2018, we responded where every one of our employees to safety and emergency preparedness, to a Mutual Aid request from BC Hydro We have more than leaves work without injury or incident we completed five full-scale to supply electricity crews and each day. emergency exercises that involved first equipment as part of the regional Our focus is on making improvements responders such as fire, police and response to a windstorm event. Our to our overall safety culture by taking local government officials, along with crews from Oliver and Kelowna a learning, coaching and mentoring 17 internal exercises. This extensive travelled to Vancouver Island and approach. We seek feedback from preparation came in handy throughout worked tirelessly over the holidays the year when our employees were to help restore power to thousands 2,400 employees to better understand the employees across British Columbia effectiveness of our safety initiatives called to provide emergency assistance of residents, some of whom had and programs. and respond to natural disasters. been without power for more than During the flooding of Grand seven days. The level of commitment In 2018, over 1,900 employees Forks, our gas and electricity crews shown by our dedicated employees participated in our fourth annual undertook challenging assignments every day illustrates our fundamental In 2018, over safety perception survey, where in harsh conditions to ensure that the commitment to keep British results showed an improvement in all communities under threat of flooding Columbians safe. safety performance measures. Survey were made safe for residents. feedback helps us recognize our collective successes and identify gaps Our employees were recognized by for further improvement to strengthen the Regional District of Kootenay 1,900 our overall safety culture. Boundary’s Manager of Emergency Programs, Chris Marsh, who noted employees participated in our fourth that “working with organizations annual safety perception survey, like FortisBC who understand the where results showed an improvement importance of emergency management principles makes our jobs significantly in all safety performance measures easier” and thanked FortisBC employees for their efforts, which “made a difference in the lives of our residents.”

FortisBC Corporate Sustainability Report 2018 27 Investing in our employees Our commitment to employee training and development contributes to professional advancement and a long- term, dynamic career with FortisBC. We want to continuously improve our training opportunities and promote from within our own ranks whenever possible.

FortisBC jobs filled internally “At FortisBC, I have the opportunity to contribute to a variety of projects and initiatives, build relationships in the community and be part of creative solutions that meet the needs of our customers and partners. The diversity of the work that I do ensures that no two days are the same.” Olivia Stanley, Indigenous Relations Manager, pictured above (centre) with Michelle Gonzalez-Ticas, Confidential Assistant, and Matthew Hoover, Community & Indigenous Liaison.

Inclusion and diversity We actively look to bring new perspectives into our organization. We In 2018, Our goal is to create an inclusive believe that better engagement of our Last year, 53 per cent of job postings were filled internally. work environment rooted in the workforce opens a wider world of ideas, belief that through consideration of values and viewpoints. different perspectives we make better Progressing employees increases We’re committed to providing engagement and communicates business decisions and achieve better business outcomes. our employees with training and to employees that we value their opportunities to participate in cultural 394 contributions and are invested in their Different perspectives come with age, learning and experiences. This year, career development. employees completed leadership region, ethnicity and gender, among 181 employees completed Indigenous development courses We continue to invest in development other considerations. The communities awareness training, which informs programs as a way of retaining top we serve include people from many employees of the historical background talent and increasing our leadership different backgrounds, skills and of Indigenous relationships in Canada. capacity. In 2018, employees experiences; ultimately we aspire to Being knowledgeable about the history, Voluntary employee have a workforce reflective of the experiences and cultures of Indigenous participated in more than 7,300 turnover was training sessions, including trades, same diversity represented in the Peoples helps employees to conduct compliance, business and leadership communities we serve. their work in a manner that respects development, both in-class and the social, economic and cultural online. Our commitment to employee interests of Indigenous communities. development has paid off; in 2018, voluntary employee turnover was % just 3.9 per cent. 3.9

FortisBC Corporate Sustainability Report 2018 28 On National Indigenous Peoples Day, our employees celebrated the unique and diverse cultures of Indigenous Peoples at three of our largest locations. In Kelowna, Jordan Coble, Curatorial and Heritage Researcher at the Westbank First Nation Sncәwips Heritage Museum, opened the lunch with a prayer and the Okanagan Song, while in Prince George, employees enjoyed an Indigenous lunch. In Surrey, there were celebrations and numerous events for employees to mark the week, including an artisan craft fair and a performance by acclaimed hoop dancer Alex Wells of the Lil’wat Nation. Participating in awareness training and celebrating culture helps us stay connected and strengthens relationships with Indigenous communities throughout the province. On National Indigenous Peoples Day, employees at our Surrey Operations Centre enjoyed the performance of acclaimed hoop dancer Alex Wells of the Lil’wat Nation. Indigenous relationships are one of our enabling initiatives. Internal Indigenous awareness opportunities Employees gave in a variety of other Our employees’ innovation is support a work culture that ways throughout the year, from recognized beyond the walls of More than understands the value of Indigenous charitable payroll contributions our offices as well. This year, our relationships and strives to strengthen to participating in food, blanket employees were recognized for their them, authentically and consistently, and holiday toy drives. The Warm ability to think outside the box when throughout the organization. Hearts charity foundation raised and we received a Gold Communications $ reinvested over $45,000, collected Award at the Chartwell’s Best Practice Giving where we live through grassroots fundraising efforts, Awards. The award recognized our into numerous local organizations. RNG marketing campaign, which 107,000 Our employees give back to the The foundation, which has been in was targeted toward millennials and was raised to help those most in communities where they live and work, existence since 1994, has contributed Generation Z, part of our commitment and we are proud to support their need throughout the province more than one million dollars to the to developing relationships with our efforts. During a United Way campaign during a United Way campaign communities across the province. existing and future customers. sponsored jointly by FortisBC, MoveUP, sponsored jointly by FortisBC, IBEW and our employee-run Warm Hearts charity foundation, more than Fostering innovation MoveUP, IBEW and our employee-run $107,000 was raised to help those most In 2018, we established an Innovation Warm Hearts charity in need throughout the province. We Council, made up of approximately 40 also continued our support of the ambassadors from across the company. CKNW Orphans' Fund with a $5,000 The Council’s mandate is to help solicit donation and employee participation. and champion employees’ ideas that have potential to improve customer engagement, market development, operational productivity and safety.

FortisBC Corporate Sustainability Report 2018 29 Looking forward

Justin Schwing, Distribution Mechanic, oversees gas line upgrades being made in Prince George.

FortisBC Corporate Sustainability Report 2018 30 As a leading energy provider in the province, we provide energy solutions to more than 1.2 million customers, safely and reliably every day. We know we have an important role to play in helping B.C. move towards a lower-carbon energy future. We see ourselves as an energy delivery company offering cost-effective, renewable and low-carbon energy solutions in alignment with the provincial government's CleanBC platform. The diversity of our four sustainability pillars demonstrates how our operational, environmental and social impacts are all interconnected. All facets of our business operations link directly back to our commitment to sustainability. Customers

Our customers are looking to us to We look forward to continued opportunities to provide British Columbians with deliver safe, reliable and cost-effective affordable, reliable and low-carbon energy. energy while providing innovative energy solutions. These include investment in energy efficiency in With this increased funding, annual Advanced Metering Infrastructure customers' homes and shrinking natural gas savings are projected to be is a valuable tool in helping our By 2022, we are committed to the carbon footprint of B.C. homes approximately one million gigajoules, customers across interior B.C. improve and businesses. which will in turn lead to reductions energy efficiency in residential and investing more than in GHG emissions of approximately commercial buildings. This technology FortisBC is seeking to significantly 50,000 tCO2e per year, and save an provides our electricity customers with expand energy-efficiency investments estimated 32 megawatt hours of more control over how they use energy. in our Conservation and Energy electricity per year. With advanced meters, customers have $ Management portfolio. We received the ability to see how much electricity approval from the BCUC to more than Expanding our conservation and million they use through Account Online. 108 double our efficiency investments from energy management programs will current levels commencing in 2019. By help support our customers with saving One of the aspirational goals of the Pan annually into our energy 2022, we are committed to investing energy and money through reduced Canadian Framework on Clean Growth efficiency programs more than $108 million annually in the usage and advance both provincial and and Climate Change is for space and form of energy efficiency incentives federal climate change objectives. water heaters to have efficiency greater and rebates provided to customers. than 100 per cent by 2035. To address Our efficiency investments from this goal, we are working to create a 2019-2022 are expected to realize gas-fired heat pump opportunity that GHG emission reductions from addresses the creation of affordable approximately 54,000 tCO2e in 2019 to technology for adoption by customers.

74,000 tCO2e in 2022.

FortisBC Corporate Sustainability Report 2018 31 Thanks to strategically placed charging stations, visitors and locals alike can explore more than 1,800 kilometres of the Kootenay region in an electric vehicle. Projects like this are one of the ways we are meeting our customers’ needs for cleaner energy options, especially for transportation.

We are working with utilities, Partners & In partnership with B.C. communities, associations and manufacturers to the provincial government and Natural We are planning to construct reduce costs and build awareness communities Resources Canada, we are planning among contractors and customers. the construction of 12 additional We continue to be proactive in our direct-current fast-charging EV stations As part of our 2019 pilot program, we collaboration with stakeholders, throughout the southwestern interior will install four gas-fired heat pump communities, Indigenous Peoples of B.C. The expansion of fast-charging units in our service territory. Through and governments at all levels. We'll EV station networks throughout this program, we are measuring work closely with all our partners to our service areas ensures that the 12 performance, costs, installation issues help them lower their emissions and communities we serve will have the additional direct-current and customer acceptance. Our objective provide solutions for residents and infrastructure they need to support fast-charging EV stations throughout is that this program showcases businesses to save energy and money. transitioning to electric vehicles. a technology that drives energy the southwestern interior of B.C. We know that effective engagement savings and is attractive to customers’ We will continue to strengthen in 2019 ability to deliver a reduction in the is crucial to maintaining mutually relationships with Indigenous carbon footprint that their home beneficial relationships with communities and pursue opportunities heating/cooling needs represent. communities. We will work together for partnerships, and will develop and listen to the needs of our bursaries and scholarships that focus partners and the communities we on funding Indigenous Peoples. serve. Improved and transparent communication will help us identify As an energy provider, we confront interests, concerns and priorities an array of challenges driven by our and through innovation, solutions to ever-evolving political, economic and energy needs. operating environments. One of the keys to FortisBC’s ongoing success is our ability to transform challenges into new opportunities.

FortisBC Corporate Sustainability Report 2018 32 Environment We will continue to demonstrate our leadership and commitment to minimizing the environmental impact of our business through our energy solutions offerings and conservation and energy management programs. FortisBC’s Clean Growth Pathway to 2050 is our input to the B.C. government’s new climate strategy and aligns well with the government’s CleanBC plan. Our Pathway calls for four primary actions to drive change within our energy systems: UPS Canada and FortisBC announced the launch of new compressed natural gas vehicles and a new custom-built natural gas fuelling station in Richmond B.C. UPS • making significant investments Canada joined over 800 transit buses, commercial vehicles and freight vehicles fuelled in both low and zero-carbon by natural gas here in B.C. vehicles and infrastructure in the transportation sector The transportation sector accounts We provide innovative and clean The $400-million Tilbury LNG storage • transitioning from higher carbon for almost 40 per cent of B.C.’s total technology that lowers emissions facility expansion will be in service energy sources to lower carbon emissions, making it the most throughout the transportation sector. in 2019. There is also room on the sources by ramping up RNG and important sector where we can achieve We believe that the decarbonization of Tilbury site for more enhancements other sources of renewable gas to significant and immediate carbon B.C.’s transportation sector will require and a separate company, WesPac achieve a 15 per cent zero-carbon reductions with technology that is the use of all tools available including: Midstream, is proposing to build fuel supply by 2030 and a 30 per cent available to us today by encouraging a marine jetty that would provide supply by 2050 the heavy-duty industry to fuel-switch • cleaner transportation systems, FortisBC with the means to meet the including increased investment in • positioning B.C. as a vital domestic from diesel to CNG or LNG. long-term projected demand for LNG fuelling infrastructure and clean as a cleaner transportation fuel in the and international LNG provider to trade corridors lower global GHG emissions marine sector. • cleaner fuels that displace high- • tripling our investment in energy LNG is one of the only commercially carbon fuels with alternative fuels mature and cost-effective options efficiency and conservation such as natural gas, RNG, biofuels or programs and developing for international marine shippers to other forms of renewable gas reduce GHG emissions, improve air innovative energy projects in B.C.’s transportation B.C.’s communities GHG emissions • cleaner vehicles that use quality and help the International alternative fuels, electric power or Maritime Organization (IMO) reach hybrid technologies its target of reducing GHG emissions in marine shipping by 50 per cent Emissions reduction opportunities by 2050. for FortisBC fall into three categories: i) decarbonizing natural gas with renewable gases and carbon capture and storage; ii) energy efficiency and The transportation sector accounts for conservation; and iii) fuel-switching almost 40 per cent of B.C.’s total emissions from more carbon intensive energy to natural gas and LNG.

FortisBC Corporate Sustainability Report 2018 33 We are committed to furthering an inclusive culture of equality where access to opportunity exists for all qualified candidates. As we move forward, we are evaluating how to improve access to FortisBC careers, provide unconscious bias training and promote awareness around gas and electric trades and engineering qualifications and career opportunities for underrepresented groups. We will focus on strengthening relationships and will provide all managers, communication and engagement specialists, contractors and employees that work directly or indirectly with Indigenous Peoples with cultural awareness training. We will seek opportunities to train By converting two vessels to operate on natural gas, which is much cleaner for the and hire Indigenous Peoples to fill environment than marine diesel, BC Ferries expects to reduce CO e emissions and 2 Photo courtesy of BC Ferries. positions, and will work to build a reduce fuel costs by millions. repository of Indigenous businesses on our preferred contractor list and In January 2020, the IMO will For British Columbians, additional Employees advance other procurement initiatives. implement a new regulation for electric vehicle charging infrastructure Our values, approach to the sustainable a 0.50 per cent global sulphur will be critical to advancing the Our ability to achieve our business development of our business, and limit for marine fuels. As a result, adoption of EVs in the province. goals in 2019 and beyond is directly dedicated people position our company many shippers will be looking for Through the planned deployment of impacted by our ability to continue for future success and ensure that alternatives; FortisBC LNG is readily EV charging infrastructure in our to attract, train and retain high we remain a trusted energy provider available, cost-effective and the next service territory, FortisBC is supporting calibre talent. Engaged employees are across the province; operating in logical step in the journey to reducing the CleanBC objective of every new a critical component to our success. an environmentally and socially emissions from marine transportation. vehicle in B.C. being zero-emission by Attraction and training programs will responsible manner. 2030. Further collaboration between be a key focus to continue to position Also adding to the growth of LNG for the province, local governments and the company to meet future demand. marine transportation is BC Ferries' FortisBC and BC Hydro can address We will focus on engaging and plan to add one additional Salish Class this gap. developing employees by: vessel in 2019, and their desire to convert five major class vessels to LNG We will also be working with • expanding opportunities for internal over the next three years. municipalities, existing refuelling transfers, career development and service providers and private challenging work assignments landowners to find ways to provide multi-fuel hub, low-carbon refuelling • aligning and merging pension plans infrastructure to further support the to ensure they remain an attraction government’s CleanBC goals. and retention tool • continuing to foster productive working relationships with our unions

FortisBC Corporate Sustainability Report 2018 34 Leadership team

FortisBC Corporate Sustainability Report 2018 35 1. Roger Dall’Antonia 3. Michael Leclair 5. Dawn Mehrer 8. Douglas Stout President and CEO Vice President, Major Projects Vice President, Customer Service Vice President, Market Development Mr. Dall’Antonia is President and CEO of the Mr. Leclair has more than 16 years & Information Systems & External Relations FortisBC group of companies. Prior to this, he of experience with FortisBC and its Ms. Mehrer has more than 14 years of Mr. Stout joined the company in 2001 as Vice held the position of EVP, Customer Service predecessor companies, holding leadership experience in customer service and project President, Gas Supply and Transmission. He and Technology at FortisBC. Mr. Dall’Antonia roles including Director, Generation and management for FortisBC, FortisAlberta has held senior executive roles with Belkorp holds over 21 years of experience in the Compression, Manager, Generation, and and previously in the telecommunications Industries Inc. and Husky Energy Inc., and energy industry and joined FortisBC in 2004. Manager, Engineering. He is currently industry. She most recently held the position has served as Director for Sultran Ltd., Pacific He has been trusted in many executive level earning a Master’s degree in business of Director, Customer Service for FortisBC. Coast Terminals and Hillsborough Resources. leadership roles, including finance, strategic administration from Athabasca University She has a Bachelor of Commerce degree He is past Chair of the Canadian Natural planning, regulatory affairs, and most and holds a professional engineering from the University of Victoria and project Gas Vehicle Alliance, past Director of the recently, customer service, energy solutions, designation from the University of Victoria. management diploma from the University of Northwest Gas Association and a current information systems, business innovation British Columbia. Director of the BC LNG Alliance. and conservation and energy management. 4. Ian Lorimer Past senior financial roles include positions Vice President, Finance and Chief 6. Diane Roy 9. Dennis Swanson with Westcoast Energy and Versacold Financial Officer Vice President, Regulatory Affairs Vice President, Energy Supply & Income Fund. Mr. Lorimer brings 19 years of experience Ms. Roy has 14 years of experience with Resource Development 2. Jody Drope in regulated utility finance roles, including FortisBC and its predecessor companies, Mr. Swanson has more than 20 years of Vice President, Finance and Chief Financial holding leadership roles including Director, experience with FortisBC and its predecessor Vice President, Human Resources and Officer for FortisAlberta and a Director role Regulatory Services, Manager, Regulatory companies, holding multiple leadership Environment, Health and Safety with FortisBC. Previously, he held finance Strategy and Business Analysis, Manager roles including Director, Regulatory Ms. Drope has spent her career working in roles including Senior Manager at Smythe Financial and Regulatory Reporting. Affairs, Manager, Corporate Reporting Human Resources and occupational health Ratcliffe Chartered Professional Accountants Previously, she held finance roles with and Manager Budgeting and Planning. and safety. Her career has included work in Vancouver. Mr. Lorimer holds a Bachelor the Overwaitea Food Group, TELUS and Prior to his current role, Mr. Swanson was in provincial and municipal government, of Commerce degree from the University of Deloitte & Touche. Ms. Roy holds a Bachelor responsible for Legal, Information Services, health care and post-secondary education. British Columbia, is a Chartered Accountant of Commerce degree from the University Internal Audit and Corporate Services as Ms. Drope joined FortisBC in 2008. In her and member of the Institutes of Chartered of British Columbia and is a Chartered the Vice President, Corporate Services. current role, Ms. Drope is responsible for Accountants of Alberta and British Columbia. Professional Accountant. Ms. Roy currently Mr. Swanson also managed the acquisition of fleet services, human resources, labour serves on the Board of Directors for the the City of Kelowna’s electrical distribution relations and talent development. In Northwest Gas Association. assets in 2013. Mr. Swanson currently serves addition, Ms. Drope champions environment, on the Board of Directors for the Northwest sustainability and safety for FortisBC. 7. Doyle Sam Gas Association. Executive Vice President, Operations and Engineering Mr. Sam has worked in the energy industry 7 since 1989 and for FortisBC and its 4 1 predecessors since 2003. He has operated in a 5 8 9 3 6 variety of engineering, planning, operations 2 and senior management roles in both electric and gas utilities.

FortisBC Corporate Sustainability Report 2018 36 Board of directors

Tracey C. Ball Ida J. Goodreau Ms. Ball (FCPA, FCA, ICD.D) is a corporate director and Ms. Goodreau is the Chair of the Board of Directors of the former Executive Vice President & CFO of Canadian FortisBC Inc. and FortisBC Energy Inc. and is a Corporate Western Bank. She currently serves as a member of the Director serving on the Boards of Fortis Inc., Pharmasave Board of Directors of Fortis Inc. and as Chair of its Audit Drugs International, Genome BC, the Streetohome Foundation Committee, and previously served as both Board Chair and the Canada West Foundation. Previously, Ms. Goodreau and Audit Committee Chair of FortisAlberta. Ms. Ball has held positions including Adjunct Professor, Sauder School of additionally served on several private and public sector Business, University of British Columbia, President and CEO of boards including Canadian Direct Insurance, Canadian LifeLabs Medical Laboratory Services and President and CEO Western Trust Company, the Audit Committee of the of the Vancouver Coastal Health Authority. Province of Alberta, the CA School of Business and Financial Executives Institute Canada.

Peter Blake David G. Hutchens Mr. Blake (FCPA, FCA) is a corporate director, also currently Mr. Hutchens is the Executive Vice President, Western Utility serving as a member of the Board of Directors of Toromont Operations, of Fortis Inc. and is the President and CEO of Industries Ltd. He is the former CEO of WesternOne Inc. Tucson Electric Power (TEP) and its parent company, UNS (2014-2018) and former CEO (2004-2014) and CFO (1997-2004) Energy Corporation. He has held continuously progressive of Ritchie Bros. Auctioneers, a leading global industrial positions within TEP, advancing to President in 2011, COO in auctioneer. Mr. Blake also serves as the Board Chair of 2013 and to his current role as TEP’s top executive in 2014. West Point Grey Academy and on the Board of Adam’s Mr. Hutchens is a member of the Boards of Edison Electric Apples Foundation. He is a former director of Ritchie Bros. Institute, Western Energy Institute, Southern Arizona Auctioneers, British Columbia Institute of Technology Leadership Council, Salpointe Catholic High School, Sun Foundation, Junior Achievement of BC and BC Women’s Corridor, Inc. and the University of Arizona Foundation. Hospital Foundation.

Roger A. Dall’Antonia Tracy Medve Mr. Dall’Antonia is the President and CEO of FortisBC Inc. Ms. Medve is President of the KF Aerospace Group of and FortisBC Energy Inc. Prior to this, he held the position of Companies in Kelowna, B.C., and has had an extensive Executive Vice President, Customer Service & Technology and executive career in the Canadian aviation and aerospace he has held continuously progressive operational, financial industry which spans more than 30 years. She serves on the and business development executive positions within the boards of the Canadian Association of Defense and Securities Fortis group of companies and its predecessor companies Industries, the UBCO External Community Advisory since 2004. Mr. Dall’Antonia is a member of the Corporate Council and is a current Member of the Transportation Committee of the Western Energy Institute, Customer Appeal Tribunal of Canada. She has a law degree from the Council of the Canadian Electricity Association, the Canadian University of Saskatchewan and an Aviation MBA from Gas Association and the Executive Advisory Council of CS Concordia University. Week. He has also served on the Board of Directors of the Down Syndrome Research Foundation.

FortisBC Corporate Sustainability Report 2018 37 Michael L. Mosher Christopher F. Scott Mr. Mosher is the President and CEO of FortisAlberta Inc. He Mr. Scott is a Corporate Director, Consultant and the past has held continuously progressive positions for over 25 years Chief Operating Officer of Osoyoos Indian Band Development within the utility and energy industry including his most Corporation. He has extensive business and community recent position of President and CEO of Central Hudson and interests in the Okanagan Valley and is a past recipient prior position of Vice President, Regulatory Affairs of Central of both the Exporter of the Year award in B.C. and the Hudson. Mr. Mosher served as a member of the Board of Entrepreneur of the Year award for Penticton. He currently Directors of Newfoundland Power Inc. He holds a Bachelor of serves as an advisor to a number of First Nation communities Science degree in Electrical Engineering from Union College in B.C. He serves as Director of the Lower Nicola Indian in New York state. Band Development Corporation, Tzeachten First Nation Development Corporation, Lower Nicola Site Services and Ogilvie Mountain Holdings Inc.

Barry V. Perry Janet P. Woodruff Mr. Perry is the President and CEO of Fortis Inc. His career with Ms. Woodruff (FCPA, FCA) is a Corporate Director and the Fortis Group spans nearly 20 years and he was previously former executive with over 30 years of experience in the Vice President of Finance and Chief Financial Officer. He North American energy, transportation and health sectors. joined the Fortis organization in 2000 as Vice President, Ms. Woodruff serves as a Director of Keyera Corporation, Finance and Chief Financial Officer of Newfoundland Power. Altus Group, Capstone Infrastructure Corporation and Ballard In addition to the FortisBC Board, Mr. Perry serves on the Board Power Systems Inc. She was a former director and acting CEO of Directors of Fortis Inc. and Fortis Utilities UNS Energy and of Transportation Investment Corporation in addition to other ITC Holdings. He is Co-Chair of the Edison Electric Institute’s public and non-profit boards. (EEI) International Programs Trans-Atlantic Regional Advisory Committee and Co-Chair of EEI’s CEO Policy Committee on Energy Delivery. Mr. Perry also serves on the Advisory Board of Canada’s Top 40 Under 40.

Jocelyn Perry Ms. Perry (FCA) is the Executive Vice President, Chief Financial Officer of Fortis Inc. She has extensive experience in the utility business, having worked at Fortis utility Newfoundland Power for the past 13 years in a variety of capacities, including Chief Financial Officer, Chief Operating Officer and President and Chief Executive Officer. Ms. Perry has considerable community and professional board and volunteer experience in Newfoundland and Labrador, including the Healthcare Foundation, C-CORE and Provident10 (formerly the Public Service Pension Plan Corporation). She currently serves on the Board of Fortis utility Central Hudson.

FortisBC Corporate Sustainability Report 2018 38 Appendix

FortisBC owns and operates approximately 7,260 kilometres of electric transmission and distribution power lines, including infrastructure in Grand Forks.

FortisBC Corporate Sustainability Report 2018 39 Performance summary

For 2018, we identified 52 indicators across our four sustainability pillars. These indicators demonstrate our continued commitment and performance in the social, environment and economic aspects of sustainability performance.

Customer Pillar1 1 This summary table reports on data for FortisBC Indicator 2017 2018 Energy Inc. and FortisBC Inc. 2 Operational safety and system reliability Number of incidents with significant safety, environment or service disruption consequences in accordance with the Number of incidents with significant safety, environment or service disruption FortisBC Energy Inc. Integrity Management Policy. consequences (gas)2 0 0 3 Number of confirmed B.C. Mandatory Reliability Standards violations with penalty in accordance with the Number of confirmed B.C. Mandatory Reliability Standards violations with penalty (electric)3 0 0 British Columbia Utilities Commission Rules of Procedure. 4 BC One Call requests increased in 2018; however, there Gas line damage incidents per 1,000 BC One Call requests4 8.31 7.39 are still situations where work was undertaken without knowledge of where underground utilities are located. Energy use Resources like BC One Call help underline the importance of "click or call before you dig" to reduce public damage of gas lines and the threat to public safety resulting from the 5 64,700 GWh 62,100 GWh Amount of energy delivered, gas and electricity 10 uncontrolled release of natural gas. Reducing damage also or 233 PJ or 224 PJ prevents added GHG emissions. Customers 5 Total amount of natural gas and electricity delivered to FortisBC customers, excluding energy exports and Number of customers, gas 1,008,000 1,029,500 upstream usage, amounts to 51 per cent of energy provided by public utilities. Number of customers, electric 172,000 175,900 6 As reported to the BCUC. 7 5 A cybersecurity incident is defined as an incident where Customer satisfaction index—gas 8.4 8.7 digital systems are compromised materially, or data is lost or stolen and that is reportable to the BCUC. 6 Customer satisfaction index—electric 8.2 8.3 8 SAIDI depicts the average outage duration for each customer served, indicated in minutes per customer. Number of cybersecurity incidents7 0 0 9 SAIFI depicts the average number of interruptions Economic that a customer would experience, indicated in units of interruptions per customer. FortisBC investment in Conservation & Energy Management programs6 $41.3 million $42.8 million 10 Amount of energy delivered, electric — 3,250 GWh. Amount of energy delivered, gas —212 PJ. Emergency calls responded to within one hour—gas 97.8 per cent 97.8 per cent Emergency calls responded to within two hours—electric 93 per cent 94 per cent System Average Interruption Index (SAIDI)8 4.05 3.15 System Average Interruption Frequency Index (SAIFI)9 1.78 1.73 Customers who achieve resolution in one contact with our Customer Contact Centres 80 per cent 82 per cent

FortisBC Corporate Sustainability Report 2018 40 Performance summary

Partners & Communities Pillar1 1 This summary table reports on data for FortisBC Energy Inc. and FortisBC Inc. Indicator 2017 2018 11 Revenues as reported per external financial statements for FortisBC Energy Inc. and FortisBC Inc. Economic 12 Includes investments into the communities including donations, in-kind contributions and sponsorships. 13 Defined as incidents that have been substantiated by a court of law. Community events participated in 505 429 14 For taxes paid on FortisBC land, infrastructure and other taxable real property situated on reserve or treaty lands of any Communities that received investment 85 75 First Nation that has opted to exercise optional legislative powers to implement a property taxation system. 15 FortisBC defines an emergency exercise as a simulated emergency in which participants carry out roles, actions, functions Number of Indigenous communities who and responsibilities that would be expected of them in a real emergency. The number of emergency exercises is driven by received training from the First Nations 126 120 several factors such as due diligence, business need, regulatory, community request, etc. Annually, more or less exercises is not Emergency Services Society indicative of performance. Economic value generated11 $1,580 million $1,578 million Economic value distributed • Operating costs $177 million $187 million • Employee wages and benefits $265 million $287 million • Payments to providers of capital $471 million $501 million • Payment to government $410 million $350 million • Community investment12 $2.1 million $1.8 million

Indigenous

Indigenous rights incidents13 0 0 Taxes paid when on reserve land (gas and electric) 14 $2.1 million $2.2 million

Safety

Number of emergency exercises15 18 22

FortisBC Corporate Sustainability Report 2018 41 Performance summary

Environment Pillar1 1 This summary table reports on data for FortisBC Energy Inc. and FortisBC Inc. Indicator 2017 2018 16 Scope 1 emissions, as defined under the Greenhouse Gas Protocol, are direct emissions from owned or controlled sources. Emissions For 2018, this includes externally verified Scope 1 GHG emissions as reported to the BC Ministry of Environment of 114,000 tCO2e and 4,8000 tCO2e for FEI and LNG Operations, respectively. 16 17 Direct GHG emissions (Scope 1) 153,000 tCO2e 130,000 tCO2e Scope 2 emissions, as defined under the Greenhouse Gas Protocol, are indirect emissions from the generation of purchased electricity for own use. Not included is externally verified Scope 3 GHG emissions for FBC as reported to the BC Ministry of 17 Indirect GHG emissions (Scope 2) 5,300 tCO2e 7,200 tCO 2e Environment in 2018 of 77,000 tCO2e. 18 Value differs from the compliance credits as determined by the Renewable and Low Carbon Fuel Requirements GHG emissions saved from natural gas 2 Regulation due to designated allowable limits as determined by the BC Government for the purposes of reporting 18 48,000 tCO e 45,000 tCO e used for transportation 2 2 under that regulation. 19 GHG emissions saved from LNG used for Renewable Natural Gas is produced in a different manner than conventional natural gas. It is derived from biogas, which 2 is produced from decomposing organic waste from landfills, agricultural waste and wastewater from treatment facilities. 9,000 tCO2e 17,000 tCO2e marine bunkering The biogas is captured and cleaned to create carbon neutral Renewable Natural Gas (also called biomethane). 20 GHG emissions saved from Renewable The CAC value includes NOx and SOx but excludes particulate matter. The formation of particulate matter is related to the 2 concentration of NOx and SOx in the exhaust. Given the decrease in NOx and SOx emissions for the use of natural gas versus 19 7,700 tCO 2e 8,900 tCO2e Natural Gas diesel, a decrease in particulate matter is expected. Reduction in criteria air contaminants 21 The lifetime energy saved is based on the Net Present Value estimates on energy savings from gas and electric programs (CAC) released to the environment that commenced in the reporting year as published in FortisBC’s Conservation & Energy Management filings to the BCUC 249 tonnes CAC 269 tonnes CAC as well as lifecycle GHG emission factor for gas using models adopted by the BC Government. Total Net Present Value since through the use of LNG and CNG inception of the Conservation & Energy Management programs for gas and electric exceeded 1.85 million tCO2e in 2018. by customers20 Calculations reported in FortisBC’s 2017 Sustainability Report have been revised to forecasted future savings associated with programs implemented per year. Lifetime energy saved from Conservation 2 22 A Class 3 spill is defined as an event that results in significant damage that includes large spills in waterways, spills that 21 292,000 tCO e 334,000 tCO e and Energy Management Programs 2 2 significantly exceed externally reportable thresholds, a regulatory non-compliance investigation by regulator and/or a fire that may cause damage more than $100,000. Class 3 spills22 23 Hazardous waste as reported on the Movement Document / Manifest form which is required for the movement of all Number of spills by FortisBC 0 0 hazardous waste by the BC Ministry of Environment Hazardous Waste Regulation. This includes 165 tonnes attributed from capital equipment decommissioning. Number of spills by contractors 3 0

Waste Amount of hazardous waste disposed of in accordance with 170 tonnes 270 tonnes regulatory requirements23

Penalties Number of environmental fines and penalties 0 0

FortisBC Corporate Sustainability Report 2018 42 Performance summary

Employees Pillar1 1 This summary table reports on data for FortisBC Energy Inc. and FortisBC Inc. Indicator 2017 2018 24 Incidents include both discrimination and harassment complaints resulting in policy breaches. Policy includes compliance Health and safety with all applicable legislation. 25 Incidents include respect in the workplace complaints. Policy includes compliance with all applicable legislation. 24 Discrimination incidents 0 0 26 AIFR per 100 workers is for a combined gas and electric result (annual). 27 Respect in the workplace incidents25 3 4 Depicts the number of lost work days experienced per 100 workers. 28 Excludes retirements. The voluntary turnover rate includes high turnover departments such as Customer Service, not Percentage of job postings filled internally 56 per cent 53 per cent present in other industry comparators. Values are aligned with industry comparators. The data includes regulated and non-regulated companies as well as temporary employees. Employees on long-term disability are excluded. Overall in-class and online training 29 Includes members from the International Brotherhood of Electrical Workers (IBEW) and MoveUp. attendance, including trades, compliance, business and leadership development • Number of courses 5,300 7,400 • Number of participants 14,800 24,600

All injury frequency rate (AIFR)26 1.3 injuries/ 1.7 injuries/ 100 workers 100 workers

Injury severity rate (ISR)27 17.6 lost work 25.3 lost work days/100 workers days/100 workers Number of fatalities 0 0 Number of employees 2,130 2,403 Voluntary turnover rate28 3.3 per cent 3.9 per cent Employees in unions or associations29 1,538 1,577 Women in workforce 35 per cent (813) 34 per cent (827) Women in senior management 27 per cent (68) 29 per cent (75) Women on the board of directors 36 per cent (4) 45 per cent (5)

Note: FortisBC is focused on efforts to increase awareness and understanding on the value of inclusion in the workplace. Diversity performance indicators are under review.

FortisBC Corporate Sustainability Report 2018 43 Concordance

This concordance table defines and A concordance table is valuable for cross-references what frameworks highlighting the broader vision of the and other standards FortisBC is in company and how the large number accordance with as well as how those of day-to-day operations across the metrics can be benchmarked with organization are integrated to give other organizations. It also provides a a more complete picture of our format to share this information easily sustainable practices. Most importantly, with readers. it allows for greater transparency and consistency in our reporting. Customers Pillar Indicator Indicator definition/intent Global Reporting Initiative (GRI)1 UNSDG2 TCFD3

Create value for our customers, employees and shareholders

First Contact Resolution—customers G4, PR4, GRI 417-2: Incidents of non-compliance concerning Indicator represents overall customer satisfaction n/a4 n/a4 who achieve resolution in one contact product and service information and labeling G4-PR1, GRI 416-1: Assessment of the health and safety impacts of product and service categories and GRI 102-30: Effectiveness of risk management and processes GG4-PR2: Total number of incidents of non-compliance with regulations and voluntary codes concerning the health Number of incidents with significant and safety impacts of products and services during their safety, environmental or service Indicator demonstrates resilient infrastructure lifecycle, by types of outcomes 9 Yes5 disruption consequences (gas) G4-LA6: Type of injury and rates of injury, occupational diseases, lost days and absenteeism and total number of work-related facilities, by region and by gender G4-LA7: Workers with high incidence or high risk of diseases related to their occupation G4-EN24: Total number and volume significant spills GRI-PR1, GRI 416-1: Assessment of the health and safety impacts of product and service categories and GRI 102-30: Number of confirmed B.C. Mandatory Effectiveness of risk management and processes Reliability Standards violations with Indicator demonstrating resilient infrastructure G4-PR2: Total number of incidents of non-compliance with 9 Yes5 penalty (electric) regulations and voluntary codes concerning the health and safety impacts of products and services during their lifecycle, by type of outcomes

1GRI is an independent international organization that has pioneered sustainability reporting since 1997. GRI helps 3Alignment with Task Force on Climate Related Financial Disclosures. businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as 4 N/A signifies that the sustainability indicator does not fall within the scope of the UNSDG and TCFD requirements. climate change, human rights, governance and social well-being. 5Discloses the indicators used by the organization to assess climate risks and opportunities in line with its strategy 2References United Nations Sustainable Development. Goals by number. sustainabledevelopment.un.org/sdgs and risk management process.

FortisBC Corporate Sustainability Report 2018 44 Customers Pillar Indicator Indicator definition/intent Global Reporting Initiative (GRI)1 UNSDG2 TCFD3

Create value for our customers, employees and shareholders Emergency response time—calls Highlights the importance placed on ensuring G4-PR1, GRI 416-1: Assessment of the health and safety responded to within one hour (gas) 7, 9 Yes5 and within two hours (electric) safety of our customers and infrastructure impacts of product and service categories Customers who achieve resolution in one contact with our Customer Highlights customer satisfaction G4-PR5, GRI 102-44: Key topics and concerns raised 12 n/a4 Contact Centres Depicts investment in customer-facing FortisBC investment in Conservation 5 & Energy Management programs programs to increase energy efficiencies and GRI 302-2: Energy consumption outside of the organization 11 Yes conservation measures Delivering energy safely, reliably and at the lowest reasonable cost System Average Interruption Depicts the average outage duration as well Duration Index (SAIDI) and System G4PR2, GRI 417-2: Incidents of non-compliance concerning as the average number of interruptions for 7 n/a4 Average Interruption Frequency products and service information labeling Index (SAIFI) our customers Amount of energy delivered—gas Depicts the amount of energy delivered safely G4-EN4, GRI 302-2: Energy consumption outside of 12 n/a4 and electricity and reliably to customers the organization Useful to track trend in number of gas and Number of customers G4-8, GRI 102-6: Markets served n/a4 n/a4 electric customers

Customer satisfaction index Highlights customer satisfaction G4-PR5, GRI 102-44: Key topics and concerns raised 12 n/a4

G4-PR8, GRI 418: Customer privacy (substantiated Highlights the emphasis on the security of Number of cybersecurity incidents complaints concerning breaches of customer privacy and 9 Yes5 operations for all parties involved losses of customer data)

Reducing overall environmental impact

Indicator demonstrating public-facing resource Gas line damage incidents per 1,000 G4-PR1, GRI 416-1: Assessment of the health and safety to encourage reduced damage of gas lines and 9 n/a4 BC One Call requests impacts of product and service categories associated GHG emissions

1GRI is an independent international organization that has pioneered sustainability reporting since 1997. GRI helps 3Alignment with Task Force on Climate Related Financial Disclosures. businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as 4 N/A signifies that the sustainability indicator does not fall within the scope of the UNSDG and TCFD requirements. climate change, human rights, governance and social well-being. 5Discloses the indicators used by the organization to assess climate risks and opportunities in line with its strategy 2References United Nations Sustainable Development. Goals by number. sustainabledevelopment.un.org/sdgs and risk management process.

FortisBC Corporate Sustainability Report 2018 45 Partners & Communities Pillar Indicator Indicator definition/intent Global Reporting Initiative (GRI)1 UNSDG2 TCFD3

Create value for our customers, employees and shareholders

Community relations including event G4-SO1, GRI 413-1: Operations with local Indicator tracks engagement to foster healthy and participation, charitable giving and community engagement, impact assessments and 11 n/a4 involved communities community investment development programs Number of Indigenous communities Indicator depicts the importance of engaging with G4-PR1, GRI 416-1: Assessment of the health and safety who received training from the First and training local Indigenous communities on the 9 n/a4 impacts of product and service categories Nations Emergency Services Society health and safety of our products and services G4-HR3, GRI 406-1: Incidents of discrimination and Depicts the number of incidents involving Number of Indigenous rights incidents corrective actions taken 3 n/a4 non-compliance with Indigenous rights GRI 411-1: Rights of Indigenous Peoples Value illustrates economic contributions for taxes paid on FortisBC land, infrastructure and other Taxes paid for reservations served 4 with existing infrastructure taxable real property situated on reserve or treaty G4-EC8, GRI 203-2: Significant indirect economic impacts 11 n/a lands of any First Nation that has opted to exercise optional legislative power to property taxation Delivering energy safely, reliably and at the lowest reasonable cost

Indicator depicts economic value generated G4-EC1, GRI 201-1: Direct economic value generated Economic value generated 8 Yes5 and distributed and distributed

Economic value distributed: 4 Operating costs Value illustrates economic contributions G4-EC8, GRI 203-2: Significant indirect economic impacts 8 n/a

Economic value distributed: 4 Employee wages and benefits Value illustrates economic contributions G4-EC8, GRI 203-2: Significant indirect economic impacts 8 n/a Economic value distributed: G4-EC1, GRI 201-1: Direct economic value generated Value illustrates economic contributions 8 n/a4 Payments to providers of capital and distributed

Economic value distributed: 4 Payments to government Value illustrates economic contributions G4-EC8, GRI 203-2: Significant indirect economic impacts 11 n/a

Economic value distributed: 4 Community investment Value illustrates economic contributions G4-EC8, GRI 203-2: Significant indirect economic impacts 11 n/a

Number of emergency Illustrates the commitment to safety through G4-PR1, GRI 416: Customer Health and Safety (Assessment of 3 Yes5 exercises completed completing emergency exercises the health and safety impacts of product and service categories)

1GRI is an independent international organization that has pioneered sustainability reporting since 1997. GRI helps 3Alignment with Task Force on Climate Related Financial Disclosures. businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as 4 N/A signifies that the sustainability indicator does not fall within the scope of the UNSDG and TCFD requirements. climate change, human rights, governance and social well-being. 5Discloses the indicators used by the organization to assess climate risks and opportunities in line with its strategy 2References United Nations Sustainable Development. Goals by number. sustainabledevelopment.un.org/sdgs and risk management process.

FortisBC Corporate Sustainability Report 2018 46 Environment Pillar Indicator Indicator definition/intent Global Reporting Initiative (GRI)1 UNSDG2 TCFD3

Delivering energy safely, reliably and at the lowest reasonable cost

Number of environmental fines and Indicator outlines the number of environmental G4-EN29, GRI 307-1: Non-compliance with environmental 4 penalties received non-compliance incidents laws and regulations 12 n/a

Reducing overall environmental impact

Direct GHG emissions (Scope 1) Indicator highlights emissions from owned and/or 5 controlled sources G4-EN15, GRI 305: Direct (Scope 1) GHG emissions 7 Yes

Indirect GHG emissions (Scope 2) Indicator highlights emissions from the generation G4-EN16, GRI 305-2: Energy indirect (Scope 2) 5 of purchased electricity GHG emissions 7 Yes Indicator depicts emissions saved through the use GHG emissions saved from the use of natural gas for transportation, LNG for marine 5 of natural gas bunkering, RNG and conservation and energy G4-EN19, GRI 305-5: Reduction of GHG emissions 7 Yes management initiatives Reduction in Criteria Air Contaminants G4-EN19, GRI 305-5: Reduction of GHG emissions, and (CAC) released to the environment Indicator highlights the reduction in air pollutants 5 through the use of LNG and CNG due to the use of LNG and CNG by customers GRI 305-7: Nitrogen oxides, sulfur oxides and other 11 Yes by customers significant air emissions Lifetime energy saved from Indicator depicts the lifetime energy saved based Conservation & Energy on the Net Present Value estimates on energy G4-EN19, GRI 305-5: Reduction of GHG emissions 7 Yes5 Management programs savings from gas and electric programs Indicator outlines the number of spills that occurred Number of spills by contractors and FortisBC employees and were G4-EN24, GRI 306-3: Significant spills 15 Yes5 cleaned up

Amount of hazardous waste properly Indicator conveys the responsible collection and 5 disposed of disposal of hazardous waste G4-EN23, GRI 306-2: Waste by type and disposal method 5 Yes

1GRI is an independent international organization that has pioneered sustainability reporting since 1997. GRI helps 3Alignment with Task Force on Climate Related Financial Disclosures. businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as 4 N/A signifies that the sustainability indicator does not fall within the scope of the UNSDG and TCFD requirements. climate change, human rights, governance and social well-being. 5Discloses the indicators used by the organization to assess climate risks and opportunities in line with its strategy 2References United Nations Sustainable Development. Goals by number. sustainabledevelopment.un.org/sdgs and risk management process.

FortisBC Corporate Sustainability Report 2018 47 Employees Pillar Indicator Indicator definition/intent Global Reporting Initiative (GRI)1 UNSDG2 TCFD3

Create value for our customers, employees and shareholders Overall in-class and online GRI 404, GRI 404-1: Average hours of training per year per training attendance, including Indicator highlights learning and development employee G4-LA10, GRI 404-2: Programs for upgrading 4 n/a4 trades, compliance, business and opportunities offered to employees leadership development employee skills and transition assistance programs Indicator highlights human capital comprising G4-10, GRI 102-8: Information on employees and Number of employees 8 n/a4 the company other workers Voluntary turnover as a percentage of Indicator depicts employee satisfaction G4-LA1, GRI 401-1: New employee hires and 8 n/a4 total employees and engagement employee turnover G4-HR4, GRI 407: Freedom of Association and Number of employees in employee Indicator conveys the employee engagement with Collective Bargaining / G4-11, GRI 102-41: Collective 8 n/a4 unions or associations various associations and unions bargaining agreements Percentage of postings filled by Highlights internal development opportunities G4-DMA, and G4-10, GRI 102-8: General disclosures, 8 n/a4 internal candidates for employees information on employees and other workers G4-LA12, GRI 405-1: Diversity of governance bodies Number of women in the workplace Indicator depicts diversity in the workplace 5 n/a4 and employees Number of women in senior G4-LA12, GRI 405-1: Diversity of governance bodies Indicator depicts women in leadership positions 5 n/a4 management and employees Number of women on the board of G4-LA12, GRI 405-1: Diversity of governance bodies Indicator depicts women in leadership positions 5 n/a4 directors and employees Depicts number of discrimination incidents G4-HR3, GRI 406-1: Incidents of discrimination and Number of discrimination incidents 3 n/a4 that occurred corrective actions taken Number of respect in the Depicts number of respect in the workplace G4-HR3, GRI 406-1: Incidents of discrimination and 3 n/a4 workplace incidents incidents that occurred corrective actions taken

1GRI is an independent international organization that has pioneered sustainability reporting since 1997. GRI helps 3Alignment with Task Force on Climate Related Financial Disclosures. businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as 4 N/A signifies that the sustainability indicator does not fall within the scope of the UNSDG and TCFD requirements. climate change, human rights, governance and social well-being. 2References United Nations Sustainable Development. Goals by number. sustainabledevelopment.un.org/sdgs

FortisBC Corporate Sustainability Report 2018 48 Employees Pillar Indicator Indicator definition/intent Global Reporting Initiative (GRI)1 UNSDG2 TCFD3

Delivering energy safely, reliably and at the lowest reasonable cost G4-LA6, GRI 403-2: Types of injury and rates of injury, All Injury Frequency Rate (AIFR) Indicator depicts recordable injuries per 100 workers occupational diseases, lost days, absenteeism and number of 11 n/a4 work related fatalities Indicator illustrates the severity of injuries G4-LA6, GRI 403-2: Types of injury and rates of injury, Injury Severity Rate (ISR) occurred defined as the number of lost work days occupational diseases, lost days, absenteeism and number of 3 n/a4 experienced per 100 workers work related fatalities G4-LA6, GRI 403-2: Types of injury and rates of injury, Indicator illustrates the number of fatal incidents Number of fatalities occupational diseases, lost days, absenteeism and number of 3 n/a4 which occurred work related fatalities

1 GRI is an independent international organization that has pioneered sustainability reporting since 1997. GRI helps 3 Alignment with Task Force on Climate Related Financial Disclosures. businesses and governments worldwide understand and communicate their impact on critical sustainability issues such as 4 N/A signifies that the sustainability indicator does not fall within the scope of the UNSDG and TCFD requirements. climate change, human rights, governance and social well-being. 2 References United Nations Sustainable Development. Goals by number. sustainabledevelopment.un.org/sdgs

FortisBC Corporate Sustainability Report 2018 49 Corporate office Suite 1000, 1111 West Georgia Street, Vancouver, British Columbia, V6E 4M3 Business operations 16705 Fraser Highway, Surrey, British Columbia, V4N 0E8 Suite 100, 1975 Springfield Road, Kelowna, British Columbia, V1Y 7V7 fortisbc.com

FortisBC Inc. and FortisBC Energy Inc. do business as FortisBC. The companies are indirect, wholly owned subsidiaries of Fortis Inc. FortisBC uses the FortisBC name and logo under license from Fortis Inc. 2018 Corporate Sustainability Report (18-348 8/2019)