Slide 1: NiSource ESG Update
NiSource ESG Update September/October 2021 | NYSE: NI | nisource.com
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains “forward-looking statements,” within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Investors and prospective i
Slide 3: Premier Regulated Utility Business
PREMIER REGULATED UTILITY BUSINESS COLUMBIA GAS OF KENTUCKY COLUMBIA GAS OF MARYLAND Significant Scale NI across Six States LISTED COLUMBIA GAS OF OHIO NATURAL GAS NYSE COLUMBIA GAS OF PENNSYLVANIA COLUMBIA GAS OF VIRGINIA ~3.2M 10%–12% Gas Customers NIPSCO GAS Compelling expected annual total NIPSC
Slide 4: NiSource's Long-Term Strategic Aspirations
NiSource’s – Long-Term Strategic Aspirations Aspirations are the pillars through which NiSource can prioritize and deliver on long-term risk-adjusted strategy Customer – Financial – Achieve top quartile satisfaction, meet customer Deliver industry-leading, risk-adjusted, long-term expectations as th
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS Key Financial Commitments / Stats Diverse Portfolio of Sustainable Assets with 1 Significant Renewable Investment Opportunities 7%-9% 10%-12% Projected NOEPS* CAGR Expected Utility Rate 2021-2024 Base Growth CAGR Proven History of Consistent Earnings and 5%-7% 2021-2024 2 Rate-
Slide 6: Electric Operations
ELECTRIC OPERATIONS We are making significant progress accelerating our energy transition to replace existing electrical assets with more renewable alternatives Progress to Date Energy Transition Goals 2020 – Present: “Your Energy, Your Future” Completed First Two Renewable Projects continues to adv
Slide 7: Natural Gas Distribution
NATURAL GAS DISTRIBUTION Natural gas is critical to the US’ diverse energy portfolio - our operations are strategically located adjacent to abundant, low-cost resources Strategic Investments to Capitalize on Natural Gas with Roadmap to Sustainability Current – 2024: 2025 – Beyond: Safety and Moderni
Slide 8: Our Sustainable Approach to ESG
OUR SUSTAINABLE APPROACH TO ESG Environmental Social Governance • Driving toward 90% reduction1 in • Transformation focused on customer • Leadership enhancements support greenhouse gas emissions by 2030, safety, reliability and affordability commitment to customer service and inclusive of a 50% redu
Slide 9: Driving Environmental Benefits
DRIVING ENVIRONMENTAL BENEFITS Generation transition to retire 100% of coal by 2028 and pipeline replacements continue to drive improved environmental performance Key Updates Greenhouse Gas • Generation Transition Advances Reductions from Cleaner generation 2005 Levels • Received regulatory approval
Slide 10: Committed to Continuing to Enhance Social Responsibilities
COMMITTED TO CONTINUING TO ENHANCE SOCIAL RESPONSIBILITIES Continuing to take proactive steps to enhance our social practices Key Updates • SMS (Safety Management System) is established and continues to mature as the NiSource core operating model • Expanded deployment of advanced leak detection tech
Slide 11: Robust Governance Framework
ROBUST GOVERNANCE FRAMEWORK* Continued enhancements to our best practices governance framework Key Updates • Continuing the commitment to an independent and diverse board with the 2020 addition of Lloyd Yates • Chief Safety Officer has dual reporting relationship to the CEO and the ES&S Committee (p
Slide 12: Continuing to Focus on Strengthening NiSource Disclosures & Reporting
CONTINUING TO FOCUS ON STRENGTHENING NISOURCE DISCLOSURES & REPORTING Comprehensive NiSource ESG Reporting • Integrated Annual Report (IAR) • Form 10-K/10-Q • Proxy Statement • LINK https://investors.nisource.com/financial-filings-and-reports/quarterly-and-annual-materials/default.aspx • SASB (New R
Slide 13: NiSource ESG Rating Trends Are Mixed, Generally Favorable
NISOURCE ESG RATING TRENDS ARE MIXED, GENERALLY FAVORABLE AND NEAR OUR TARGET OF TOP QUARTILE Where Rating is Used or Trend NiSource Rating Information Audience Able to View Results One of 7 North American utilities; on index 7 years in a row Bloomberg Terminals 73rd percentile in 2020, up from 69th
Slide 14: Appendix – additional information
Appendix – additional information | NYSE: NI | nisource.com
Slide 15: Executive Summary
EXECUTIVE SUMMARY Strategic Framework and Important Actions Strengthened Commitment to Safety and a Sustainable Strategy for All Stakeholders Safety and Risk Management Robust Risk Framework Helps Drive Toward Sustained Industry Leadership in Safety Environmental Initiatives Continuing to Build on F
Slide 16: The U.S. Regulated Utility Investment of Choice
THE U.S. REGULATED UTILITY INVESTMENT OF CHOICE Safety and environmental leadership will continue to drive customer value and sustainable growth Strong Clear Path to Drive Benefiting Customers Committed to Foundation Incremental Growth and Communities Shareholder Value • Regulatory diversity • Enhan
Slide 17: Important Strategic Actions at NiSource
IMPORTANT STRATEGIC ACTIONS AT NISOURCE Strengthening Commitment to Safety and a Sustainable Strategy for all Stakeholders • NiSource On-track to Achieve Environment Targets – 90% Reduction in Green House Gas (GHG) by 2030 (from 2005 Levels) – Including a 50% reduction in methane emissions from core
Slide 18: Safety Performance and Emergency Response
SAFETY PERFORMANCE AND EMERGENCY RESPONSE Driving Toward Sustained Industry Leadership in Safety • Safety Management System (SMS) vision is to lead and exceed anchored Key by three pillars 2020 YE Performance Goal Status – Culture - all employees are empowered to identify and report risks Category –
Slide 19: Continuing to Enhance Environmental Stewardship
CONTINUING TO ENHANCE ENVIRONMENTAL STEWARDSHIP The ESS Committee Provides Oversight over Environmental Stewardship Initiatives and Execution Environmental Impact Targets Eliminating Owned Coal Generation by 2028 and Replacing with Cleaner and Lower-Cost Energy Achieving: Emissions Reductions 2020 R
Slide 20: Robust Framework for Risk Management and Oversight
ROBUST FRAMEWORK FOR RISK MANAGEMENT AND OVERSIGHT The Board and Management Have Both Augmented Committees and Structures to Facilitate the Board’s Oversight of Senior Management and Risk Management Board Oversight Management Oversight The Board sets the strategy for the five-year operating plan and
Slide 21: Expanding Diversity, Creating an Inclusive Culture
EXPANDING DIVERSITY, CREATING AN INCLUSIVE CULTURE AND DEVELOPING ENGAGED EMPLOYEES Prioritizing Inclusion, Equity and Diversity • Diversity is a critical consideration for NiSource’s Board, as evidenced by its current strong representation of diversity, setting expectations from the top Progress/Re
Slide 22: Board Composition and Evaluation
BOARD COMPOSITION AND EVALUATION Diverse, Refreshed Board with a Broad Range of Relevant Experience and Skills Rigorous Board Evaluation and Selection Process Diverse Composition • Annual and ongoing evaluation of full Board, Board Committees and individual Directors overseen by the Nominating and G
Slide 23: NiSource Board of Directors
NISOURCE BOARD OF DIRECTORS Directors with a Wide Range of Experience and Expertise Peter A. Altabef Theodore H. Bunting, Jr. Eric L. Butler Aristides S. Candris Age: 62 Age: 62 Age: 61 Age: 70 Elected: 2017 Elected: 2018 Elected: 2017 Elected: 2012 Occupation: Occupation: Retired Occupation: Pres.
Slide 24: NiSource Board of Directors
NISOURCE BOARD OF DIRECTORS Robust Experience, Independent Perspectives and the Necessary Skills to Support NiSource Strategy Area of Expertise % of Directors Commentary Industry Experience Ensures Board has the knowledge to keep abreast • Gas Distribution or Transmission 50% of industry trends and
Slide 25: Management Overview
MANAGEMENT OVERVIEW Skills and Experience to Lead Commitment to Safety, Customer Experience and Stakeholder Value Joe Hamrock Pablo Vegas Donald Brown Violet Sistovaris • President and CEO since July 1, • EVP/COO & President NiSource Utilities • EVP/CFO & President, NiSource Corporate • EVP & Chief
Slide 26: 2020 Executive Compensation Overview
Average Say-On Pay Vote for the 2020 EXECUTIVE COMPENSATION OVERVIEW Last Five Years is 97% Compensation Committee changes to 2021 incentive programs to better align with long-term ESG initiatives Pay Element Form Performance Element Rationale and Link to Strategy (% of 2020 CEO / NEOs pay) • Review
Slide 27: Compensation Practices
COMPENSATION PRACTICES Reflects Best Practices We DO have these practices: Incentive Award Metrics Tied to Key Company Performance Measures Share Ownership Guidelines for Executive Officers and Directors Double-trigger Severance Benefits Upon a Change-in-control Limited perquisites Compens
Slide 28: Governance Practices
GOVERNANCE PRACTICES Reflects Best Practices We DO have these practices: Majority Vote Standard to Elect Directors Director Resignation Absent Majority Vote Equal Voting Structure (Single Class) Separated Chair and CEO Roles Proxy Access Shareholder Ability to Call Special Meeting We DO
Slide 29: Setting a New Standard in Customer Experience
SETTING A NEW STANDARD IN CUSTOMER EXPERIENCE Focused on Achieving Top-Tier Customer Satisfaction and Dependable Service • Fostering a Customer-centric Culture, Enhancing our Processes and Implementing New Technologies to Meet Customers’ Changing Key Performance 2020 Status Milestone Expectations Ca
Slide 30: NiSource Cyber Initiatives
NISOURCE CYBER INITIATIVES • The Chief Information Security Officer and Chief Information Officer Manage Cybersecurity at NiSource and Provide Regular Updates to the Cybersecurity Sub-Committee, Which Then Reports to the Full Risk Management Committee • The Audit Committee Provides Independent Board
Slide 31: NiSource Key Relationships
NISOURCE KEY RELATIONSHIPS NiSource Engages with Various External Organizations and Peers in Order to Share Information and Advance our Cyber Intelligence Program Information Sharing Government Relationships Industry Associations Partnerships | NYSE: NI | nisource.com 31
Slide 32: Political Engagement
Political Engagement NiSource is Committed to Being a Good Corporate Citizen in the Communities in Which it Conducts Business, Which Includes Participating Constructively in the Political Process Where Legal and Appropriate Political Spending Policy • In January of 2021, NiSource’s Executive Leaders