Page 23 | RPIA SUSTAINABILITY REPORT 2025
ESG INTEGRATION
OVERVIEW
CORPORATE SUSTAINABILITY
CULTURE & VALUES
• Safety, Indigenous Participation, and Governance: Management noted a shift in safety reporting from total recordable case rates to high-injury and fatality rates, aligning with industry best practice and strengthening serious incident prevention. Indigenous economic participation remains embedded in project development through formal policy (Image 4, Annotation 5) , advisory councils, community investment programs, procurement initiatives, and structured equity ownership opportunities on major projects. ESG oversight remains established at the board level, with ESG competencies represented across directors and regular reporting to relevant committees.
Outcome
We view the issuer as a benchmark company and industry leader within the North American energy infrastructure sector, and therefore believe continued engagement is important given the influence the company can have on broader industry practices. While management lowered its prior emissions reduction ambitions, we were encouraged that the company undertook a reassessment of its targets and introduced a revised methane intensity reduction goal rather than abandoning emissions commitments altogether. The follow-up engagement provided a clearer context around these target changes and reinforced management’s awareness of prior ESG underperformance, alongside concrete steps to address areas within its operational control. We also note that the company maintains a well- resourced sustainability function with established governance oversight of ESG, and management has demonstrated openness to constructive dialogue and investor feedback through ongoing engagement. Given the issuer’s scale and leadership position in the sector, we believe maintaining an ongoing relationship and engaging with management through their transition journey can be more impactful than immediate divestment. While we have divested from issuers in the past where ESG risks were insufficiently mitigated, our approach considers each issuer individually and in the context of its sector and ESG risk profile. In this instance, based on the outcomes of both engagements, we continue to actively trade the issuer’s bonds, with holdings and positioning varying over time based on market fundamentals and the relative value of individual securities.
Image 4
Policy Implementation
Policy Count: 3/5
Factors
Policy
Y/N
5
Community Impact Diversity & Inclusion Diversity & Inclusion Diversity & Inclusion Community Impact
Indigenous Rights Policy Equal Opportunity Policy Conduct Gender Based Compensation Review
Yes Yes No No Yes
Employee Engagement Survey Community Engagement Policy
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