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A Message from our President and Chief Executive Officer
Our world is rapidly changing and increasingly becoming more complex, which creates both challenges and opportunities for industry to adapt and grow. At AltaGas, we are writing a bright story for a future where energy is affordable, efficient and clean. Through investment and innovation, we are taking on the world’s energy challenges as we prove that a sustainable energy future is possible and beneficial to our shareholders.
In 2019, AltaGas invested more than $1.3 billion in energy infrastructure and became the first company in Canada to export clean-burning liquefied petroleum gas (LPG) to Asia. Our disruption of the Canadian midstream sector demonstrates our overall commitment to supporting the transition to a low-carbon global economy.
Yet we have really just begun.
We are deeply committed to doing what’s right and that means respecting our environment, providing value for our customers, sustaining our communities, focusing on continuous improvement and innovation, investing in our people and growing stakeholder value.
With that in mind, I am pleased to present AltaGas’ inaugural ESG report, which outlines our ongoing efforts to improve our operational performance, minimize our environmental footprint and deliver social value.
Our ESG Journey
We have a strong team at AltaGas, governed by an experienced Board of Directors, led by a skilled senior leadership team and powered by more than 2,700 talented people who demonstrate the values that are core to our company. Thanks to them, we have the beginning of a great ESG story that manifests itself every day in our activities, and one that we will strive to improve upon in the future.
Our company has always valued supporting the communities we serve, partnering with stakeholders and delivering energy solutions in a responsible manner.
This report marks the next step in a journey that will see us consolidate performance data from across the enterprise, benchmark our current performance and establish challenging but achievable goals in our pursuit of continuous improvement. While we have undertaken risk assessments and reported on select ESG data in the past, our organization has changed significantly – adding and divesting different assets over the years.
Moving forward, we will continue to expand the scope of our efforts and enhance the breadth of our metrics and disclosure. This will continue to evolve as we develop and embed our ESG strategy in our corporate strategy.
Our world is changing and increasingly becoming more complex
which creates both challenges and opportunities for industry to adapt and grow.
Focusing on the Future
Globally, the shift to a low-carbon economy continues to shape ESG and business strategy. With demand for clean energy increasing daily, natural gas and natural gas liquids (NGLs) like propane will continue to play a critical role in supporting this transition – a core tenet of our business model.
Natural gas is abundant and serves as a cleaner, foundational fuel that is reliable, affordable and safe. Our business strategy focuses on maximizing the value of natural gas by extracting valuable NGLs and connecting these lower GHG-emitting fuels from the well sites of natural gas producers to the doorsteps of businesses and consumers around the world. We believe the energy solutions we are uniquely positioned to provide will continue to be valued by our stakeholders, and we are seeing evidence of this today.
For example, the growing demand for energy in Asia and other global markets continues to be the driving force behind our Canadian Midstream business. Currently, Asian propane consumption accounts for approximately 50 percent of total global demand. Leveraging our first-mover advantage, we are distinctively positioned to meet this demand and help improve air quality by displacing more carbon-intense energy sources like coal.
This unique export capability in turn drives growth across our integrated Midstream value chain and creates value for our company, our customers, as well as local communities and Indigenous partners.
Delivering on Operational Excellence
Core to our business and developing ESG strategy is our unwavering commitment to operational excellence. At AltaGas, this means operating a safe and reliable system, delivering cost-effective solutions, minimizing our environmental footprint and providing an exceptional customer experience across our business.
In our Utilities, this manifests itself in our accelerated pipeline replacement program where replacing aging infrastructure improves our service offering to customers, enhances reliability, lowers emissions and drives down costs. We are committed to excellence by leveraging the digitization of data, machine learning and artificial intelligence to deliver results for our stakeholders and across our businesses.
While our company has changed significantly over a short period of time, our commitment to operating in a responsible manner and creating social value has been a constant. Today our enterprise is on solid financial footing and positioned to capture new opportunities for growth.
In order to achieve this growth, we will continue to maintain and strengthen the many collaborative relationships we have established with local communities and our Indigenous partners, and earn their trust through open communications and responsible operations. We will continue to be transparent and inclusive in our approach to sustainable project development.
This ESG report is a first for our company and marks the beginning of an exciting new chapter. We are committed to maintaining our efforts to incorporate ESG metrics into our business practices and improving our monitoring and reporting.
As we continue to align and improve processes across our business divisions, we will gather and evaluate more data, focus on areas of improvement and regularly share our progress with our stakeholders.
Thank you for taking the time to read our report. I encourage you to follow our progress as we provide updates on our ESG performance in the future.
President and Chief Executive Officer
For any inquiries regarding this report or its contents, please contact ESG@altagas.ca.