2020 SUSTAINABILITY REPORT Emera Inc. 2020 Sustainability Report ESG Highlights CEO Message About Emera Our Approach Environment Social Governance Performance Environmental, Social and Governance (ESG) Highlights As of December 31, 2020, unless otherwise indicated ENVIRONMENT 39% 1,262 MW $4.6B+ 1,250 MW reduction in CO2 emissions installed renewable capacity planned capital spending on cleaner, solar capacity at Tampa Electric by since 2005 more reliable energy through 2023 end of 2023; 655 MW currently in service SOCIAL $ A Top 100 Employer 16M 41% 40,470 hours in Canada for 2021; invested in our communities in 2020, of senior leaders at Emera Inc. are volunteered by Emera employees 3rd consecutive year with $6M for COVID-19 relief women; 34% across the company1 GOVERNANCE 36% 82% 98% 100% of board directors are women, of board directors are independent shareholder support for of employees completed annual including the Chair 2021 “say on pay” vote Code of Conduct training 1 Senior leader includes director level and above. ESG HIGHLIGHTS 2 Emera Inc. 2020 Sustainability Report ESG Highlights CEO Message About Emera Our Approach Environment Social Governance Performance CEO Message June 2021 start of the pandemic, our team adapted of affordability and reliability for our quickly to add new protocols in order to customers. Decarbonization is not only Emera’s ESG commitments are keep safely delivering the essential energy what we do – it’s part of who we are. Since our customers and communities count on, 2005, we’ve reduced CO emissions by core to our strategy, culture 2 perhaps now more than ever. 39 per cent and we’ve also reduced our and daily operations. We’ve use of coal by nearly 70 per cent over the Our team also stepped up to help those been focusing on delivering same period. Building on this strong track most impacted by the pandemic and cleaner, affordable and reliable record, earlier this year we announced provided support for families affected energy for over 15 years. Our our Climate Commitment – a set of clear, by tragic events in our communities. future-focused carbon reduction goals environmental commitments We also added our collective support and our vision to achieve net-zero CO are driving the energy transition for important social justice issues. In 2 emissions by 2050. and our growth, while our social 2020, we contributed $16 million to and governance commitments organizations that share our commitment In addition to decarbonization, the trends shape our culture and how to building stronger and more innovative, of digitalization and decentralization are we operate. inclusive and diverse communities. quickly becoming a significant part of This includes more than $6 million our cleaner energy future. We’re driving recent contractor fatalities and serious In 2020, we made important progress directed to organizations providing critical innovation – finding new ways to imagine, Despite the extraordinary challenges of safety incidents across our business on our Diversity, Equity and Inclusion aid such as food, shelter, assistance with build, and deliver the best experience COVID-19, I’m extremely proud of what our demonstrate that the important work Strategy and strengthened our energy costs and mental health support. and service for customers today and in team accomplished for our customers, in this area is never done. We must stay commitment to inclusive and diverse the future. communities and shareholders in 2020. In addition to our strong social relentlessly focused on safety – every workplaces and communities. Like many, In many ways, the pandemic reinforced commitments, we also took steps Through our pandemic response and our minute of every day. We’re committed to we recognized that we have more work the strength and resiliency of our to strengthen our environmental energy transition, safety is always our learning from these incidents so that we to do in this area, and we’re increasing business, our strategy and the Emera performance. Over the past 15 years, number one priority at Emera. Despite can keep improving and eliminate serious our efforts on training, recruitment and team. Our commitment to health and we’ve been leading an energy transition improvements to many aspects of our injuries and fatalities. We’re more resolved making sure we have the right data to safety continues to be at the centre of that increases renewables, reduces safety program, including achieving our than ever to build an Emera where no one drive the right strategies. our ongoing pandemic response. At the the use of coal and never loses sight lowest Injury and Lost Time Injury rates, gets hurt. CEO MESSAGE 3 Emera Inc. 2020 Sustainability Report ESG Highlights CEO Message About Emera Our Approach Environment Social Governance Performance We recently announced our Climate We established a $5 million fund to We established an executive-led Commitment – a clear set of carbon support diversity, equity and inclusion Sustainability Management Committee reduction goals and a vision to achieve efforts in our communities – and we’re to oversee our ESG practices across the net-zero CO emissions by proud to have already made two major business that will report into the Board 2 contributions from the fund supporting regularly on our ESG risks, opportunities programs for new immigrants in and progress. Nova Scotia and Black heritage and As always, I’m extremely proud of our 2050 culture in the Tampa Bay area. team and of the progress we’re making FOR MORE INFORMATION, SEE PAGE 12 Our report includes details on all of together to deliver for our customers, our ESG commitments and progress. shareholders and communities. Please It also outlines our commitments to reach out to me any time with your transparency, accountability and strong thoughts at [email protected]. governance. We’ve been maturing our approach as we continue to evolve from sustainability reporting to strategic sustainability programming that takes an integrated approach and maps ESG risks Scott Balfour and opportunities across our business. President and Chief Executive Officer, Emera Inc. CEO MESSAGE 4 Emera Inc. 2020 Sustainability Report ESG Highlights CEO Message About Emera Our Approach Environment Social Governance Performance Emera at a Glance Data and information are as of December 31, 2020 TAMPA ELECTRIC EMERA CARIBBEAN EMERA NEW BRUNSWICK From a single electric utility in Nova Scotia, A vertically integrated, regulated Vertically integrated, regulated electric Owns and operates the Brunswick Pipeline, Emera has grown into an energy leader with more electric utility serving approximately utilities serving 184,000 customers on a regulated 145-kilometre natural gas 800,000 customers in West Central the islands of Barbados, Grand Bahama, pipeline in New Brunswick. than $31 billion in assets and serving 2.5 million Florida. Dominica and St. Lucia. customers in Canada, the US and the Caribbean. EMERA ENERGY NOVA SCOTIA POWER PEOPLES GAS An energy marketing and trading, asset Decarbonization has been core to our strategy for more than A vertically integrated, regulated electric A regulated natural gas utility serving management and optimization company in 15 years. Our Climate Commitment builds on our strong track utility serving 529,000 customers in 426,000 customers in Florida. Canada and the US. record with a set of clear, future-focused carbon reduction goals Nova Scotia. NEW MEXICO GAS EMERA TECHNOLOGIES and a vision to achieve net-zero CO2 emissions by 2050. EMERA NEWFOUNDLAND A natural gas utility serving 540,000 A technology company focused on finding With our portfolio of high-quality utilities and our innovative AND LABRADOR customers in New Mexico. new, innovative ways to deliver renewable approach to developing solutions for current and future energy Owns and operates the Maritime Link and resilient energy to customers. needs, we are well positioned to continue to deliver for customers and manages Emera’s investments in an while also providing long-term value to our shareholders. associated project. Our growth is driven by our strong team. We pursue the highest standard of corporate governance at all levels and strive to maintain a culture of integrity. It’s this culture that drives our commitments to world-class safety; diversity, equity and inclusion; being an employer of choice; and investing in our communities. Emera owns and operates electric and natural gas utilities, with some investments in natural gas transmission pipelines and an energy marketing and trading operation. ABOUT EMERA > EMERA AT A GLANCE 5 Emera Inc. 2020 Sustainability Report ESG Highlights CEO Message About Emera Our Approach Environment Social Governance Performance The three Ds: Energy is essential to our Environmental, Social and Governance (ESG) Our Strategy customers, and their evolving needs are commitments are core to our strategy and shape our driving decarbonization, decentralization culture of doing the right thing for our customers, and digitalization trends. investors, communities and each other. Our world is changing quickly – and we’re ready. While our teams work in different locations and different parts of the business, we’re connected by our shared focus. Our strategy not only guides us in delivering for our customers, communities and investors – it also helps us prepare for an energy future that is being shaped Expert Teams Delivering for Driving Growth by what our customers want and by the We’re a team of experts Our Customers & Reinvestment three key trends facing our industry – leading the way to a Every day, we’re focused on Delivering for our customers cleaner energy future decarbonization, decentralization safely delivering cleaner, drives predictable returns and as we work toward our and digitalization. affordable, reliable energy steady growth for our investors, 2050 Net-Zero Vision. for our customers. enabling us to reinvest in our teams, companies and communities. Our Strategic Priorities guide everything we do: Always leading with Advancing Cleaner Energy Enhancing Reliability Health & Safety toward our Net-Zero Vision Empowering our Never losing sight of Driving Innovation Teams & Communities Affordability ABOUT EMERA > OUR STRATEGY 6 Emera Inc.