SaskEnergy 2020-21 Sustainability Report

SUSTAINABILITY REPORT 2020-21

Table of Contents

President’s message

3

About SaskEnergy

4

Our business

5

Our commitment to sustainability

6

Reporting on performance

6

Governance

7

Risk management and disclosure

8

Our sustainability framework

9

Pillar one: Environment

10

Pillar two: Prosperity

18

Pillar three: People

22

Our future

28

Measures and standards: key indicators

29

2020-21 Sustainability Report

President’s message

President’s message

On behalf of SaskEnergy, I am pleased to present our 2020-21 Sustainability Report. This report is an important milestone in our sustainability journey and provides an overview of our continued progress on environmental, social and governance (ESG) principles such as stewardship, community collaboration and socially conscious business practices. It also provides an outlook on the long-term goals and objectives we have set for the Corporation. While this is SaskEnergy’s first sustainability report, the information presented demonstrates how ESG principles have long been incorporated into our business plans, operations and actions, and in our areas of focus for future success. We recognize that access to safe, reliable, affordable energy is critical to the residents, businesses and industries we serve. We are also mindful of our responsibility to contribute to the protection of the environment while supporting the social and economic prosperity of Saskatchewan communities. Natural gas provides residents and businesses with a resilient and reliable source of energy, especially during some of the country’s most extreme weather. As the largest distributor of energy in the province, it is important that SaskEnergy can continue to serve the people of Saskatchewan for decades to come. It is through our commitment to ESG principles that we will remain sustainable. At the same time, natural gas utilities are facing increasing pressure and a clear call to action — reduce emissions as we move into a lower-carbon future. SaskEnergy knows the important role we play in reducing greenhouse gas emissions (GHG) while providing critical energy for a greener Saskatchewan.

Sustainability is at the core of every decision we make. We are proud of our strong history of ESG leadership and will build on this legacy as we continue to advance our sustainability efforts. SaskEnergy has made a commitment to reduce our emissions from operations by 35 per cent by 2030. We also commit to supporting customers in making their homes and businesses more energy efficient, which has an immediate environmental impact of up to a 50 per cent reduction in GHG emissions. Over the last 10 years, SaskEnergy has invested more than $6.3 million in rebates to help customers improve their gas appliance efficiency and we will double our annual investment in the upcoming years. Collaboration and strong relationships with customers, stakeholders and Indigenous communities — as well as a strong workforce reflective of the Saskatchewan population — will also continue to be important areas of focus. I want to thank all SaskEnergy employees for their dedication during a challenging year and for all their work, past and present, to pursue our vision of environmental sustainability and economic prosperity for future generations.

Ken From President and Chief Executive Officer

2020-21 Sustainability Report

3

About SaskEnergy

Values

About SaskEnergy

Safety

We are always committed to our personal safety, the safety of our team and the public.

As a provincial Crown corporation, SaskEnergy’s roots are deep. Our natural gas system has served Saskatchewan and its people for close to seven decades. We are defined by our commitment to environmental sustainability and economic prosperity for future generations and we strive to provide our service in a way that meets the expectations of our customers. Our number one priority is to safely provide reliable and affordable energy to our residential, business, farm, commercial and industrial customers. SaskEnergy delivers essential energy to 337 communities throughout the province and has a highly extensive rural distribution network. We are committed to a low-carbon future — both within our own operations and together with our customers through programs, services and education.

Vision

Environmental sustainability and economic prosperity for future generations.

Spirit

We support a respectful, dynamic and a diverse work environment that encourages achievement.

Corporate vision

Providing critical energy for a greener Saskatchewan and reducing our emissions from operations by 35 per cent by 2030.

Integrity

We are accountable for our decisions, our actions and the results.

Mission

Relationships

We succeed through strong internal and external collaboration, trust and open communication.

SaskEnergy delivers natural gas and energy solutions responsibly to the residents, businesses and industries of Saskatchewan.

Stewardship

We are responsible in our use of all resources.

2020-21 Sustainability Report

4

Our business

Our Business

1,100 dedicated employees working in more than 50 locations

400,000+ customers in 93 per cent of Saskatchewan communities

$21 million dividend declared to Crown Investments Corporation in 2020-21

$3.294 billion total assets in 2020-21

15,209 kilometres of transmission lines

71,305 kilometres of distribution lines

$227 million committed to responsible decommissioning of assets in the future

89% overall residential customer satisfaction rating

99.99% reliable service

2020-21 Sustainability Report

5

Our commitment to sustainability

Board Chair Vice Chair 58% of Board members 38% of Executive members 41.4% women in management roles

Our commitment to sustainability

Women in leadership

At SaskEnergy, we are focused on improving our core operations while advancing the Corporation in our environmental, social and governance (ESG) performance. As a Crown corporation and energy utility that serves the people of our province, SaskEnergy contributes to the ESG priorities of the Government of Saskatchewan to achieve our sustainability efforts. Our sustainability path is aligned with the policy direction of the Government’s Prairie Resilience: A Made-in-Saskatchewan Climate Change Strategy aimed at reducing greenhouse gas (GHG) emissions in the province. Included in this strategy is SaskEnergy’s Associated Gas Conservation Program, which is designed to help the oil and gas industry collect and conserve more of the methane that would otherwise be flared or vented into the atmosphere.

13,000 tonnes carbon dioxide equivalent (CO 2 e)

Reductions in greenhouse gas emissions from operations

Favourable rating of corporate safety by employees

88%

Reporting on performance

Record safety performance in 2020-21

1.43 recordable injuries per 100 employees

SaskEnergy’s sustainability framework is aligned with applicable standards that demonstrate our progress to date as well as our commitment to continuous improvement. This report shows SaskEnergy’s performance on 16 key indicators (page 29), including reference to the Global Reporting Initiative (GRI) standards, provincial targets, and a number of corporate performance indicators. GRI is an international, independent standards organization that helps businesses, governments and other organizations communicate the impacts of their sustainability efforts in a consistent and credible way. As ESG principles further evolve, we will evaluate our performance indicators annually while continuously improving our data gathering and sustainability reporting.

Incremental energy savings from natural gas conservation programs

127,900 gigajoules

Invested in residential and commercial rebates since 2019

$2.9 million

2020-21 Sustainability Report

6

Our commitment to sustainability

Environmental, Social and Governance Committee

Oversees SaskEnergy’s environmental strategy and sustainability initiatives, social responsibility and corporate governance. The Committee ensures SaskEnergy is in compliance with corporate standards and regulatory requirements, properly identifying and managing risks, and renewing and adopting best practices.

Governance

SaskEnergy Incorporated is a Crown corporation governed by The SaskEnergy Act. It is a designated subsidiary of Crown Investments Corporation of Saskatchewan (CIC), which effectively operates as a holding company that oversees provincial Crown corporations and ensures a fair return for the people of Saskatchewan while supporting government’s priorities. SaskEnergy’s Board of Directors is responsible for the stewardship of the Corporation and oversees the adherence to The SaskEnergy Act and its regulations. Our governance structure supports accountability to the Corporation’s customers, stakeholders, the public and its shareholder. In 2019, SaskEnergy began working with its Board of Directors to adjust the mandate of one of its three committees — the Governance and Social Responsibility Committee — to have a broader view. Collectively, these committees and the Board of Directors, which is representative of Saskatchewan communities and industry, provide direction and oversight to SaskEnergy’s sustainability activities.

Audit and Finance Committee

Oversees the Corporation’s financial performance and reporting, control systems, risk management and audit functions. These functions are also key components of the Board’s oversight of sustainability activities.

Human Resources and Safety Committee

The Human Resources and Safety Committee has a mandate to proactively address safety matters, or risks, and oversee SaskEnergy’s human resource planning, fair compensation practices, performance management and succession planning.

More information on governance, including SaskEnergy’s Corporate Governance Disclosure, Board and Executive member biographies, and stakeholder engagement, is available on saskenergy.com

2020-21 Sustainability Report

7

Our commitment to sustainability

SaskEnergy has identified the following risks as most significant:

Risk management and disclosure

Government climate policy The possibility that government(s) impose new regulations that impair or restrict operations, or prevent further development of SaskEnergy’s gas system. Public acceptance The risk of customer base declines as a result of the public perception of natural gas.

Interest groups The risk to infrastructure

SaskEnergy’s approach to risk management is to thoroughly examine our operating activities, identify current and emerging risks, effectively communicate those risks throughout the organization and actively manage them through our Enterprise Risk Management (ERM) process. While risk management is the responsibility of all levels of management, the Board of Directors and Executive Committee set the tone and provide leadership for the ERM process. As many of the risks facing the organization evolve, the Corporation’s risk management plans remain adaptive and flexible. Identified risks are monitored on an ongoing basis with the Board, Executive and management. Executive risk owners are identified for each risk and they oversee, through delegation, the existing processes and controls to manage the risk, as well as any new or additional process to further address the risk. The enterprise-wide management of risks is supported by several specifically focused programs, including: · Operational risk management – the Hazard Identification and Risk Assessment process, which is an integral component of the Unified Management System, addresses risks associated with the operation of the entire gas line system. · Financial risk management – policies including committees, programs and processes that manage relevant financial risks, most notably credit risk and commodity price risk.

development and maintenance due to public objection from a cultural, safety, environmental or societal perspective. Rate adjustment approval The risk of required rate adjustments (commodity, delivery, transportation and storage) not receiving approval.

Workforce talent The risk to organizational

Cyber security The possibility of a cyber

performance related to adapting and matching the corporate skill set to an evolving environmental and business landscape.

attack against our operating or information technology systems that results in a loss of control or breach of data.

Natural gas line or facility failure

Systemic health and safety The risk of a significant incident, or a systemic health and safety incident, occurring and the subsequent impact on employee safety and the ability of employees to operate the system.

The possibility of a natural gas line or facility failure and the impact to public safety.

Full details of SaskEnergy’s Risk Management and Disclosure are included in the 2020-21 Annual Report, which is available on saskenergy.com.

2020-21 Sustainability Report

8

Our sustainability framework

PILLAR ONE:

PILLAR TWO:

People PILLAR THREE:

Our sustainability framework

Environment

Prosperity

FOCUS

FOCUS

FOCUS

We strive to reduce our impact on all aspects of the environment and are committed to assisting our customers in reducing their environmental footprints.

SaskEnergy strengthens Saskatchewan’s economy by investing in the communities in which we live and work. We deliver affordable and reliable energy to customers, supporting the province’s standard of living.

SaskEnergy is committed to providing a safe, inclusive and engaging environment to attract and retain a workforce that can meet the evolving environmental and business landscape of tomorrow.

Sustainability for SaskEnergy means providing reliable, affordable energy to our customers today and for years to come while also acknowledging their desire for a cleaner energy future. It is about strengthening relationships with customers, communities and Indigenous groups while offering an inclusive, safe working environment to our employees. SaskEnergy’s sustainability framework includes three pillars: Environment, Prosperity and People. These pillars align with our corporate vision and set a strong foundation for our future as a sustainable energy provider for Saskatchewan.

KEY INDICATORS

KEY INDICATORS

KEY INDICATORS

· Output Based Performance Standard (OBPS) Emissions (tonnes CO 2 e per megawatt-hour)

· Customer satisfaction – SaskEnergy

· Representative workforce - Women on Board (%) - Women on Executive (%) - Women in management roles (%) - Indigenous employees (%)

· Customer satisfaction – TransGas

· GHG emissions (tonnes CO 2 e)

· Average safety service response time (minutes)

· Energy savings from natural gas conservation programs

· Total Recordable Injuries - Frequency rate - Severity rate

· Unplanned service disruptions – distribution

· Spills and releases (reportable)

· Discrimination and respect in workplace incidents

· First Responder training - Communities trained - Attendees

· Total annual hours of training per employee

2020-21 Sustainability Report

9

Pillar one: Environment

PILLAR ONE: ENVIRONMENT As an organization, SaskEnergy has long considered the impact of our own operations, as well as the impact of our customers’ activities, on the environment. We have a strong foundation set to meet stakeholder expectations. Our environmental sustainability efforts are focused on reducing emissions from our operations, supporting customers in reducing end-use emissions and protecting the local environment, including plant life, wildlife, wetlands, native prairie and species at risk.

2020-21 Sustainability Report

10

Pillar one: Environment

Environmental sustainability and stewardship in all that we do

SaskEnergy is committed to optimizing electricity use in our buildings and field facilities. An environmental strategy has been put in place to incorporate more efficient LED lighting within our offices and facilities, as well as the installation of solar panels at natural gas pressure reduction stations and compressor sites. Currently, SaskEnergy has approximately 200 solar-powered sites throughout the province, which include an 85 watt solar panel and enough battery capacity to last for seven days without solar power. It is expected that approximately 50 new solar installations per year will be implemented over the next several years. OPTIMIZING OUR ELECTRICITY USE Throughout the past 15 years, stakeholder expectations of meaningful metrics and targets have changed and industry best practices have evolved. While our path to achieving our targets requires further planning, SaskEnergy has been successfully reducing its emissions through a number of targeted initiatives. This includes emissions from our distribution and transmission systems as well as emissions related to heating offices and facilities, electricity consumption and the emissions from equipment used in operations. These emissions are measured in tonnes of carbon dioxide equivalent (CO 2 e). By using 2019 as a base year, SaskEnergy has a clear foundation using the best data available — now and into the future — to meet this ambitious target.

In early 2021, SaskEnergy engaged in stakeholder feedback sessions to determine the topics that matter most to our employees, government and the broader community. Through these sessions, stakeholders identified their top three priorities for the Corporation: · SaskEnergy’s impact on the global environment and continued performance toward reducing emissions from operations.

· Results from SaskEnergy’s investments in improving customers’ energy efficiency.

· SaskEnergy’s environmental performance with respect to minimizing the impact of our operations on local plant life, wildlife, wetlands, native prairie and species at risk.

Reducing our emissions from operations by 35 per cent by 2030

As a provider of essential energy, we are committed to delivering natural gas and energy solutions responsibly to the residents, businesses and industries of Saskatchewan. SaskEnergy has set a challenging target to reduce our emissions from operations by 35 per cent, from 2019 levels, by 2030.

2020-21 Sustainability Report

11

Pillar one: Environment

Through our work management system, the jobs completed by SaskEnergy’s Operations team are prioritized and completed according to configured rules that allow for optimum effectiveness and customer service as well as proactive maintenance. As part of the efficiencies realized, the system has resulted in a reduction of 400,000 kilometres travelled to complete the work, which is equivalent to taking more than 20 vehicles off the road. Optimizing effectiveness and reducing vehicle emissions

Photo was taken prior to the COVID-19 pandemic.

2020-21 Sustainability Report

12

Pillar one: Environment

From 2005 to 2019, we achieved a 61 per cent reduction in our emissions, which is attributable to refined emissions measurements and data, as well as operational efficiencies. Improving our operational efficiency

Leak Detection and Repair program

Emissions capturing on compressors

Emissions Data Management System

As part of our ongoing efforts to reduce methane emissions from above-ground infrastructure, we enhanced our operational Leak Detection and Repair program in 2019, which resulted in saving approximately 6,500 tonnes CO 2 e emissions in 2020. This is equivalent to taking 1,414 cars off the road.

In collaboration with industry partners, SaskEnergy installed emission-capturing devices on all new compressors, and retrofitted existing compressors, to reduce overall emissions from day-to-day operations.

SaskEnergy implemented a new Emissions Data Management System (EDMS) in 2020 to better understand and further reduce the overall environmental impact of our operations. The EDMS provides more accurate measures to improve reporting, documentation and prioritization of emissions management activities.

LOWER CARBON LINE HEATING

SaskEnergy operates hundreds of line heaters that preheat natural gas before its pressure is reduced so that gas can move from our transmission system onto our lower pressure distribution system. Keeping the gas temperature above freezing allows for the safe and reliable operation of pressure regulating stations. While older line heaters were simpler, they were relatively inefficient in terms of the amount of fuel they used to preheat the natural gas. Through SaskEnergy’s collaboration with a local manufacturing firm and the Saskatchewan Research Council, new line heaters were designed. Since initial field trials in 2003, these heaters are now widely used by utilities throughout Canada, as well as internationally, and are about 40 per cent more efficient than older heaters. SaskEnergy will continue to evaluate innovative technologies to further improve operational efficiency while reducing emissions.

2020-21 Sustainability Report

13

Pillar one: Environment

Customer rebate programs

Reducing customer emissions

SaskEnergy — through its residential and commercial Network Members — offers a number of rebate programs to assist customers in reducing their emissions and lowering their energy costs. Through these programs, SaskEnergy has invested close to $2.9 million in rebates since the beginning of 2019. · SaskEnergy’s Residential Equipment Replacement Rebate provides rebates for the purchase and installation of qualifying high-efficiency natural gas furnaces, boilers, combi-boilers, heat recovery ventilator systems (HRV), and water heaters.

Environmental sustainability is critical as we meet Saskatchewan’s demand for safe and reliable energy. It’s also important to our customers and the communities where we operate. Helping customers reduce their emissions and meet their environmental goals is an important part of SaskEnergy’s energy stewardship strategy and is an area in which immediate environmental impacts can be made. Average residential gas usage in Saskatchewan declined by 20 per cent over the last 20 years due to improved building design and more efficient natural gas appliances. Decreasing energy usage is the most effective way for customers to reduce their emissions. SaskEnergy’s customer programs support the installation of high-efficiency equipment to optimize natural gas use, allowing customers to reduce end-use emissions and save money. In addition, SaskEnergy collaborates with organizations such as the Canadian Gas Association (CGA) and the Natural Gas Innovation Fund (NGIF) and will continue to leverage investments that explore new cost-effective technologies to reduce greenhouse gas emissions in the natural gas industry. Since 2017, SaskEnergy's energy efficiency programs have helped our customers reduce GHG emissions by 18,900 tonnes CO 2 e, which is equivalent to taking more than 4,000 cars off the road. The GHG reductions achieved are a result of high-efficiency gas appliances and include gas use savings as well as emissions reductions from electricity savings. For context, a typical home uses 100 gigajoules (GJ) of natural gas each year.

· The Commercial Boiler Rebate helps offset the incremental price of a high-efficiency natural gas condensing boiler over the purchase price of standard-efficiency equipment.

· Our Commercial Space & Water Heating Rebate program offers rebates for natural gas furnaces, boilers, tankless and condensing water heaters, and infrared tube heaters in commercial applications.

In 2020, Saskatchewan’s first net zero multi-unit residential building broke ground, using natural gas — delivered by SaskEnergy — as the heating source. With advanced building envelope design and construction techniques, each unit uses less than 11 GJ of heat per year and the whole building uses about 130 GJ per year. SaskEnergy worked with industry partners through the planning and design stages of the project and funded the installation of 97 per cent efficient modulating furnaces and smart thermostats in the building. Built by Big Block Construction, the townhouse development is located in the Willowgrove neighbourhood of Saskatoon. NET ZERO HOUSING ON THE PRAIRIES

GHG Savings (tonnes CO ² e/year)

Year

Savings (GJ/year)

2017-18

38,600

2,400

2018-19

24,300

1,600

2019-20

102,300

6,600

2020-21

127,900

8,300

2020-21 Sustainability Report

14

Pillar one: Environment

SaskEnergy’s Tune-Up Assistance Program (TAP) supports income- qualified individuals and families with furnace maintenance in order to reduce costly repairs, increase efficiency and help their energy dollars go further. Since its inception in 2017, TAP has assisted more than 1,400 homeowners in 48 communities throughout Saskatchewan. In addition, it was recognized by the Canadian Gas Association (CGA) in 2020 as the recipient of the second annual Michael Mulcahy Award for Excellence and Innovation in Customer Care and Service. Award-winning assistance

Photo was taken prior to the COVID-19 pandemic.

2020-21 Sustainability Report

15

Pillar one: Environment

From project planning and design through to construction, operation and reclamation, SaskEnergy is committed to protecting the environment. This includes plant life, wildlife, wetlands, native prairie, and species at risk. Protecting the local environment

avoid environmentally sensitive landscapes and water features. In addition, we have a biosecurity policy for our planning, construction, operation and abandonment activities, which includes a variety of mitigation measures and risk-based approaches to help protect the environment, landowners and the public from biosecurity concerns. These robust procedures and processes prevent the introduction or spread of invasive species or diseases, including zebra mussels, clubroot and other weed species. As part of our commitment to biosecurity efforts, SaskEnergy engages with Indigenous communities, landowners, government and industry, and focuses on the use of new technologies to further

on recently constructed gas lines and areas of legacy reclamation concerns. We regularly work with and reach out to landowners with gas lines on their property to ask for feedback on our performance and pride ourselves on being responsive to any concern that may arise.

Land and water

The protection of land and water is an essential part of maintaining healthy ecosystems and an essential part of our business. When planning our projects, we

minimize our impacts. Each year, we spend $2 to $3 million on biosecurity measures.

In 2020, SaskEnergy launched a new environmental screening tool that improves how we review gas line projects and streamlines customer connect projects for new services. The tool analyzes projects through more than 25 data layers that screen for environmental, heritage and geotechnical considerations. With this tool, SaskEnergy can quickly respond to regulatory changes and continually upgrade metrics as additional environmental, heritage and geotechnical information becomes available. Our Pipeline Reclamation Inspection program is also key to SaskEnergy’s commitment to landowners, stakeholders, regulatory obligations and environmentally focused operations. Our goal is to proactively return a disturbed site to its former, or even better, state. Through this program, we proactively check and address crop and vegetation re-growth, as well as slumping and weed issues, Environmental screening and reclamation

2020-21 Sustainability Report

16

Pillar one: Environment

SaskEnergy actively participates in a number of environmentally focused partnerships, groups and initiatives, including the Saskatchewan Prairie Conservation Action Plan (PCAP). As a PCAP partner, we join more than 30 participating organizations across Saskatchewan to raise awareness and take action on initiatives that create environmental sustainability and conservation with a focus on native prairie. Environmental investments and partnerships

2020-21 Sustainability Report

17

Pillar two: Prosperity

v

PILLAR TWO: PROSPERITY Aligned with our vision, environmental sustainability and economic prosperity for future generations, our focus on prosperity means we support Saskatchewan's economy by investing in the rural, urban and Indigenous communities where we live and work.

2020-21 Sustainability Report

18

Pillar two: Prosperity

SaskEnergy delivers energy to residents, businesses and industry to support our standard of living while considering our impact on the environment. This aligns with our vision of environmental sustainability and economic prosperity for future generations. Whether it’s keeping stakeholders and Indigenous communities informed as part of our major projects, or our community liaisons delivering public awareness emergency response programming and training, we know that strong relationships and partnerships are key to our success. Committed to the communities we serve

A SAFE AND RELIABLE SYSTEM

The safety of the people who live and work near our gas lines and facilities is of the utmost importance. SaskEnergy is committed to designing, maintaining and operating a safe and reliable natural gas system. We take steps to ensure that every kilometre of our system is monitored and protected, including an annual aerial survey of the entire transmission system. We also complete system-wide ground-based leak surveys on a four-year cycle, and perform targeted surveys year-round in areas that are prone to ground shifting. SaskEnergy performs regular transmission system inspections, as well as visual and internal gas line examinations using the latest technology. Each year, approximately 1,200 kilometres of gas lines are inspected. Recognizing the serious implications of an energy interruption, SaskEnergy also maintains 24/7 capabilities to identify, respond to and resolve any issues with the operation of our system.

Reliability and resiliency

Natural gas provides Saskatchewan with much-needed, reliable energy — particularly during some of the country’s most extreme weather. The amount of energy that SaskEnergy delivers to our customers is greater than the amount of energy provided through any other means in the province. Natural gas is also a key fuel for much of the electrical generation in Saskatchewan, reducing the dependency on conventional coal and the carbon intensity of the electricity generation mix, while also supporting the growth of renewable energy as a backup for the variability of wind and solar. For many customers, including hospitals and large businesses, natural gas serves not only as the primary heating source but as an emergency backstop during electrical outages.

which is designed for reliability, service disruptions to our customers are rare, regardless of weather conditions. This allows business and industrial customers to operate efficiently year-round while residential customers are connected to a dependable, affordable energy source.

SaskEnergy’s service is 99.99 per cent reliable. Through our 86,000-kilometre underground gas line system,

2020-21 Sustainability Report

19

Pillar two: Prosperity

Prosperous, safe communities

Economic investment

Safety is our number one priority and is at the core of everything we do. Along with safety, collaboration is key to our success — and to economic prosperity — which is why we engage with customers, stakeholders, Indigenous and local communities during our daily operations.

SaskEnergy engages private sector companies to supplement our internal resources and provide expertise on leading practices with respect to building and maintaining our gas line system. In addition, we are committed to supporting the provincial economy through procurement processes for our natural gas infrastructure, including purchasing materials from Saskatchewan vendors, sourcing local labour and contracting Indigenous-owned businesses. Over the last several years, private contractors have performed about two-thirds of SaskEnergy’s gas construction work.

Indigenous engagement

Keeping Saskatchewan communities safe

Industry leading practices

Strong relationships are crucial to ensuring Indigenous communities have access to the benefits of natural gas. SaskEnergy serves 57 First Nations across three Treaty territories and, since 2010, we’ve connected 2,720 residents and businesses on First Nations to our system. In 2020, SaskEnergy signed the Saskatchewan Chamber of Commerce’s Indigenous Engagement Charter, demonstrating the role we play in reconciliation. We are committed to enhancing engagement and collaboration with Indigenous peoples, businesses and communities.

We’re committed to the safety of the people who live and work near our gas lines. We use sensitive leak detection equipment and odorize our gas so customers can identify any potential gas leaks. To support natural gas safety, SaskEnergy has several customer-focused programs, including advertising, odour awareness and click or call before you dig messaging. Carbon monoxide (CO) awareness is also a focus in the safe use of natural gas appliances. In 2021, SaskEnergy purchased 1,000 CO alarms to give to customers and extended its CO alarm rebate program to further support customer safety.

To ensure we have leading safety practices and technology in place, we regularly collaborate with industry associations, provincial regulatory bodies and other natural gas utilities across Canada. In the rare occasion that an emergency does occur, SaskEnergy has a robust Emergency Response program to protect employees, the public and the communities we serve. Our emergency management program is based on a mitigate, prepare, respond and recover philosophy and drives continuous education.

In 2020-21, 69.4 per cent of SaskEnergy's capital and operating expenditures were paid to Saskatchewan businesses, totalling nearly $320 million.

Independent plumbing, heating and appliance companies throughout the province are also engaged through SaskEnergy’s Network Member program, which supports natural gas customers with programs and services such as appliance upgrades, furnace maintenance and carbon monoxide safety. Currently, there are 178 Residential Network Members in 54 communities and 72 Commercial Network Members in 16 communities throughout Saskatchewan.

2020-21 Sustainability Report

20

Pillar two: Prosperity

SaskEnergy First Nations Safety Calendar

For 20 years, SaskEnergy has partnered with First Nations

communities in Saskatchewan to create safety calendars. Students in schools on First Nations that are connected to our natural gas system are invited to take part in an artwork contest related to natural gas safety. Selected artwork submissions are printed in the SaskEnergy First Nations Safety Calendar and are distributed to First Nations communities, Indigenous organizations and educational institutions throughout the province. On average, about 1,000 submissions from 60 schools are received every year.

2020-21 Sustainability Report

21

Pillar three: People

PILLAR THREE: PEOPLE

SaskEnergy takes pride in our people. We recognize it is employees who drive the success of our organization and play a pivotal role in our future sustainability.

2020-21 Sustainability Report

22

Pillar three: People

Employee health and safety

Our more than 1,100 employees are critical to our success. To attract and retain a workforce that is able to meet the evolving environmental and business landscape of tomorrow, SaskEnergy is committed to providing a safe, inclusive and engaging workplace with opportunities for growth and where all ideas are valued, respected and welcomed.

Safety is our top priority

Our goal is to see every employee go home safely at the end of each day and meet the vision of Mission: Zero — zero injuries, zero fatalities and zero suffering.

RECORD SAFETY PERFORMANCE In 2020-21, SaskEnergy recorded its lowest total recordable injury frequency rate in the history of the Corporation with 1.43 injuries per 100 employees.

COVID-19 pandemic response

The health and safety of our provincial team of employees was a key focus during the COVID-19 pandemic and in our comprehensive pandemic preparedness plan. Our priority was to maintain their health and safety while continuing to provide an essential service to our customers. In response to the pandemic, we put a number of measures into effect to protect our team, our customers and communities throughout the province. In alignment with direction from the Government of Saskatchewan, SaskEnergy successfully implemented temporary work-from-home arrangements, where possible, throughout 2020 and 2021 with no disruption to our core operations or customer service. To assist our employees in the remote work environment, technology was leveraged for digital communication, meetings, and training and development opportunities. For employees who provide an essential service in maintaining our infrastructure, it was crucial that we maintained their health and safety — and that of the broader community. Frontline employees were provided with additional personal protective equipment as well as extensive safety training that outlined protocols to follow during customer interactions, when working in customer facilities, and during operations and construction activities.

To foster a personal connection to safety practices at home and at work, SaskEnergy has a robust Safety Management System (SMS) in place. The system exists to set safety goals, assess safety risks, establish mitigating controls, and ensure that SaskEnergy staff are trained and competent with respect to safety processes, issues, regulations and procedures as they relate to their roles and our operations. Through the SMS, SaskEnergy is able to apply a broad but specific safety focus across our entire organization. It is also through this structured approach that a lens of continuous improvement is applied.

2020-21 Sustainability Report

23

Pillar three: People

Strengthening our safety culture

The safety culture within any organization is based on a combination of values, beliefs, attitudes and perceptions. These factors work together and impact the decisions, actions and behaviours that determine safety performance and outcomes. At SaskEnergy, it is imperative that a culture of safety is embedded into everything we do, each and every day. As part of this commitment, SaskEnergy participates annually in the Energy Safety Canada Certificate of Recognition (COR) Audit — an industry-recognized audit process that evaluates a company’s safety management system. In 2020-21, SaskEnergy achieved a score of 93 per cent, which the audit credited to: · employee involvement at all levels within the organization; · a commitment to creating and maintaining a safe workplace; · strong senior management support; · SaskEnergy’s detailed and up-to-date formal hazard assessment inventory; and · the extensive resource support system in place to ensure that the health, safety and well-being of employees remains a priority.

Photo was taken prior to the COVID-19 pandemic.

SaskEnergy designates one week each year as Safety Stand Up. The week provides an opportunity for employees to ‘stand up for safety’ and discuss key health and safety issues with senior leaders, including members of SaskEnergy’s Executive team who travel to locations throughout the province to meet in person and lead breakout sessions with staff. In 2020-21, these sessions were held virtually due to the COVID-19 pandemic. STANDING UP FOR SAFETY

Investing in our employees

SaskEnergy’s learning and development strategy is a key component of our commitment to provide employees with challenging opportunities for growth and support today’s workforce in meeting the demands of tomorrow.

Our strategy focuses on developing and enhancing people’s capabilities through:

The audit also noted areas for improvement, including manager site inspections and a review of key processes.

· on-demand access to digital learning; · action-based learning; · informal learning, including coaching and mentoring; · apprenticeships; · lunch and learn sessions; · employee engagement initiatives; and · fostering team effectiveness.

While our safety record is sound, we recognize there is always room to improve and that building safety culture requires visible support at all levels in the Corporation.

2020-21 Sustainability Report

24

Pillar three: People

Photo was taken prior to the COVID-19 pandemic.

SaskEnergy’s Service Technician Qualifying Position (STQP) program trains and prepares new and existing employees to become Service Technicians through written and practical exams and hands-on experience. Students learn computer skills, our work management system, and more complex instruments and equipment that SaskEnergy uses in the field. TRAINING FOR THE FUTURE

SaskEnergy has a long-standing Competency Assessment Program, which formally evaluates worker skill sets and knowledge to ensure employees are well-trained and prepared to perform safety-sensitive work. In addition, a performance management system is used to recognize achievements and to identify gaps that can be improved through formal personal development plans. Leadership within our organization is a key component in aligning our workforce to achieve our sustainability goals. SaskEnergy has used our Leadership Development Program (LDP) to prepare emerging and

current leaders to take on bigger leadership challenges through growth in the understanding of self, as well as leadership principles and SaskEnergy’s business. Since its inception in 1998, approximately 250 employees have been selected to take part in this unique development opportunity. Mentorship opportunities are also an important part of SaskEnergy’s leadership training and a growing piece of our overall learning and development strategy. Mentors share their knowledge and perspective from years of experience, nurturing the growth of SaskEnergy’s future leaders.

2020-21 Sustainability Report

25

Pillar three: People

Generation Energy (Gen-E)

SaskEnergy Aboriginal Government Employees (SAGE)

Joint Diversity Committee

Gen-E is SaskEnergy’s youth network, led by employees aged 35 and younger. By providing leadership and involvement opportunities, especially to younger employees, Gen-E strengthens our culture through engagement, connections and inspiring employees of all ages. One of the programs Gen-E leads is SaskEnergy’s ’Coffee Connections’, in which participating employees throughout the company are paired up on a quarterly basis to meet in person, or virtually, to network and learn from each other.

The SAGE network provides leadership in promoting the well-being and success of SaskEnergy’s Indigenous employees. Each June, SAGE hosts a number of activities and events to celebrate National Indigenous History Month and National Indigenous Peoples Day. These events help employees learn about, appreciate and acknowledge the contributions that First Nations, Métis and Inuit people have made in shaping Canada. Members of SAGE also support SaskEnergy’s retention and career development efforts.

SaskEnergy’s Joint Diversity Committee has a mandate to recognize and promote the diversity of our workforce. Each year, the Committee holds its popular event, Mini Mosaic, to celebrate the numerous cultures represented in our provincial workforce. The Committee also runs an interpreter program for customers and holds a variety of informative lunch and learn sessions throughout the year.

Diversity and inclusion

As SaskEnergy considers future sustainability, we must focus on maintaining a diverse workforce that is capable of meeting our environmental responsibilities while providing essential energy to the people of Saskatchewan. We believe that diversity in the workplace increases productivity, enhances problem solving and innovation, creates value, and helps to attract and retain talented people. To ensure that we can continue to meet the expectations of our diverse workforce, SaskEnergy conducts a biennial employee engagement survey. Results from the 2021 survey show that SaskEnergy’s performance with respect to diversity and inclusion is above average, with a measured improvement noted over the last three years. SaskEnergy is committed to creating an inclusive work environment that recognizes and appreciates all employee perspectives and talents. Creating network opportunities for employees to come together and collaborate is one of the ways in which we cultivate an inclusive work environment.

Stable workforce

We pride ourselves on having respectful and collaborative working relationships across the organization. Nearly 68 per cent of SaskEnergy’s employees are members of Unifor Local 649. In November 2019, SaskEnergy and Unifor signed a long-term agreement through to January 2023, which provides stability and strength to our already talented, dynamic and diverse workforce.

2020-21 Sustainability Report

26

Pillar three: People

Cultural celebration

For more than a decade, SaskEnergy’s Joint Diversity Committee has hosted ‘Mini Mosaic’ events at offices throughout the province to recognize the cultural diversity of our employees. Through this celebration of cultures, employees set up booths with information, cultural items and sample-sized portions of food to share with their colleagues. Whether showcasing their own culture, or the culture of a place they are interested in or have visited, our employees demonstrate why the diversity we have in Saskatchewan, and Canada, makes this the best place to live, work and eat!

Photo was taken prior to the COVID-19 pandemic.

2020-21 Sustainability Report

27

Our future

Our future

emissions, we will also monitor opportunities for new technologies, such as renewable natural gas (RNG), as they emerge. Collaboration and strong relationships with stakeholders and Indigenous communities, as well as continued cultivation of a strong workforce reflective of the Saskatchewan population, are also important focus areas. Our commitment to ESG principles ensures we have a strong foundation in place to serve Saskatchewan for decades to come. SaskEnergy is well equipped to make positive improvements in many areas as we progress further down our sustainability path, recognizing there are still many unknowns with respect to global energy transition and we do not have all the answers. Our planning, however, will allow us to be innovative as we identify solutions for a sustainable future. SaskEnergy is committed to maintaining a natural gas system that will reliably, effectively and affordably support Saskatchewan’s unique energy needs and economic viability as we move toward a low-carbon future.

Diligent progress on our ESG goals will support SaskEnergy in providing a valued service to the people of Saskatchewan, today and into the future. From our customers’ point of view, it is clear that there must be a balanced approach to providing reliable supplies of affordable energy while supporting climate objectives. This is essential for the standard of living of Saskatchewan residents and for the economic viability and prosperity of businesses and industries. Looking ahead, SaskEnergy will continue to support our vision of providing critical energy for a greener Saskatchewan and reducing our emissions from operations by 35 per cent by 2030, which equates to emissions reductions of 219,000 tonnes CO 2 e. This will be achieved through a number of initiatives, including leak surveys, slipstream technology and optimizing the efficiency of compressor operations. As a founding partner in the NGIF, SaskEnergy will also continue to invest in new technologies that reduce emissions in our industry. Recognizing the immediate environmental impact SaskEnergy can have by supporting customers in making their homes and businesses more energy efficient, we commit to doubling our investment in customer efficiency programs in 2021-22. As we explore additional ways to help customers reduce GHG

2020-21 Sustainability Report

28

Measures and standards: key indicators

Measures and standards: key indicators

Environment PILLAR ONE:

Organizational Strategic Measures

2021-22 Target

2017-18 2018-19

2019-20

2020-21

Output-Based Performance Standard (OBPS) Emissions (tonnes CO 2 e/MWh) 1

This measure is calculated based on a numerator of total combustion/flaring greenhouse gas emissions from transmission operations, and a denominator of total load-corrected MWh of output from compressor engines. The units are tCO ² e/MWh. This metric reflects requirements under the federal Output-Based Pricing System. Scope 1 and 2 emissions from SaskEnergy operations. This includes emissions from transmission and distribution operations (as reported to Environment and Climate Change Canada) plus emissions associated with heat and electricity for buildings and equipment used for operations.

N/A

N/A

N/A

0.62

0.68

GHG Emissions (tonnes CO 2 e) 2

511,000

491,000

338,000 3

325,000

N/A 4

Incremental Savings from Natural Gas Conservation Programs

This measure represents natural gas and GHG emissions savings achieved by customers as a result of energy efficiency programs that support gas conservation.

GJ/year 5

38,600

24,300

102,300

127,900

N/A 6

GHG emissions (tonnes CO 2 e)

2,400

1,600

6,600

8,300

N/A 6

Provincial and federal legislation requires that spills and/or releases of certain substances are reported to the appropriate regulatory body if the quantity of spilled materials exceeds the threshold volume. Threshold volumes are set for each substance or each category of substances. Spills and gas releases exceeding the volume threshold defined by regulatory bodies must be reported externally.

Spills and Releases (reportable)

5

3

3

7

0

1 GRI 305. This measure was introduced in 2020-21. 2 GRI 305 3 The significant decrease in emissions in 2019-20 is largely due to more accurate emissions factors. 4 Yearly targets have been set, starting in 2022-23, to 2030 to align with the corporate vision of a 35 per cent reduction in emissions from operations by 2030. 5 GRI 302-4 6 Yearly targets will be set starting in 2022-23 once a baseline is established in 2021-22.

2020-21 Sustainability Report

29

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31

Made with FlippingBook Ebook Creator