Enbridge Sets Wide-Ranging ESG Targets Covering Emissions, Diversity, Disclosure and More
North American energy infrastructure company Enbridge announced today the launch of a wide-ranging set of ESG commitments. The company’s new sustainability initiatives will see Enbridge aim for net zero GHG emissions by 2050, increased workforce and board diversity, improved safety and ESG reporting, among other goals.
Al Monaco, President and Chief Executive Officer of Enbridge, said:
“Sustainability is integral to our ability to safely and reliably deliver the energy people need and want. How well we perform as a steward of our environment, a safe operator of essential energy infrastructure, and as a diverse and inclusive employer is inextricably linked to our business success and our ability to create long-term value for all stakeholders.
“While ESG has garnered more attention in recent years, Enbridge’s commitment to strong ESG practices and performance has long been core to how we do business and we’re proud to be recognized as a leader. Our new commitments represent the next stage of our progression to ensure we are positioned to grow Enbridge sustainably for decades to come.”
Enbridge’s new environmental commitments include goals covering emissions as well as safety. The company stated that it aims to achieve net zero emissions from its business by 2050, and introduced an interim goal to reduce the intensity of GHG emissions from operations by 35% by 2030. Initiatives to reach these targets will include modernizing equipment, building and operating solar power generation facilities, investing in renewables and low carbon energy, and purchasing carbon offsets and credit to balance remaining emissions. On the safety front, the company is aiming for a 10% improvement in 2021 on Total Recordable Incident Frequency (TRIF) rate for employees and contractors, and will implement a new voluntary industry standard criteria for pipeline system safety performance.
Enbridge introduced several social goals, including increasing representation of diverse groups within the company’s workforce by 2025 including acceleration of existing goals of 28% from Racial and Ethnic groups, and strengthening Board diversity with an increased goal of 40% representation of women and new goal of 20% of Racial and Ethnic groups by 2025. The company also said it will increase procurement from diverse suppliers and suppliers that support and invest in diversity and inclusion, and will contribute to Indigenous reconciliation through employment strategies and training.
Enbridge stated that it will continue to align its reporting with best practices as outlined by disclosure frameworks such as those set out by the Global Reporting Initiative (GRI), the Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosure (TCFD).
“We are committed to delivering strong ESG performance that sustains our industry leadership. In linking a broader set of ESG goals to compensation, we not only achieve greater accountability, we put ourselves in position to succeed in transitioning to a safer, cleaner and affordable energy future.”