Slide 1: ESG Forum: Bridge to the Energy Future
ESG Forum ZENBRIDGE Bridge to the Energy Future September 28, 2021
Slide 2: Legal Notice: Forward Looking Information
Legal Notice Forward Looking Information This presentation includes certain forward looking statements and information (FLI) to provide potential investors and shareholders of Enbridge Inc. (Enbridge or the Company) with information about Enbridge and its subsidiaries and affiliates, including manag
Slide 3: Agenda
Agenda 1. Bridge to the Energy Future Al Monaco 25 minutes 2. Emission Goals & Pathways Pete Sheffield 15 minutes E 3. Sustainable Operations Michele Harradence 20 minutes 4. Low Carbon Innovation Matthew Akman & Malini Giridhar 20 minutes Break 10 minutes 5. Stakeholder & Indigenous Engagement Pete
Slide 4: Al Monaco
Heidlersburg Compressor Station (Texas Eastern) and Solar Self-Power Facility Al Monaco President & Chief Executive Officer
Slide 5: Our Energy Perspectives
Our Energy Perspectives Global Energy Outlook Enbridge – Bridge to the Energy Future • Energy demand is increasing • Differentiated service provider • Economic growth depends on low-cost, • Comprehensive ESG & emissions targets reliable, secure energy supply • Gradual, but deliberate, transition of
Slide 6: Access to Energy is Not Universal
Access to Energy is Not Universal ~2.6B people live without electricity or ~46% of non-OECD energy demand natural gas for cooking1 remains coal and traditional biomass2 64% China 64% India 59% Africa OECD Non-OECD <0.1B ~0.5B people people Sustainably addressing energy poverty is critical to meeting
Slide 7: Society's Dual Challenge
Society’s Dual Challenge 1 Meeting energy demand…1 2 …while lowering GHG Emissions1 (Megatonnes of oil equivalent - Mtoe) (Energy–related Gigatonnes CO2e emissions) 18 000 Lower 40 16 000 Emission 35 Base Case Scenario (STEPS2) 14 000 30 12 000 Biomass 25 10 000 Wind & Solar Hydro 20 8 000 Nuclear <
Slide 8: Conventional Energy Is Essential
Conventional Energy Is Essential Everyday Products Depend on Critical to Meeting Petrochemical, Industrial Conventional Energy and Transportation Energy Requirements Petrochemicals1 Oil (liquids) demand1 (Mtoe) (MMb/d) Electronics Pharmaceuticals Sporting equipment Appliances Industrial Industrial H
Slide 9: Lowering Energy Sector Emissions
Lowering Energy Sector Emissions Globally, 2,125 GW • Energy efficiency & Natural gas …which is central of coal power Reduce enables reliable & to lower U.S. power generation still to be replaced3 conservation efforts lower carbon sector emissions2 baseload1… (2019: Realized capacity factors) Modern
Slide 10: Sustainable Development is Required
Sustainable Development is Required Top 15 Energy Producers by ESG Score1 Environmental Social Governance Energy Reserves 300 500 450 Energy Reserves (billion boe) Aggregate E, S, and G Score 250 400 350 200 300 150 250 200 100 150 100 50 50 - 0 Australia Canada United UAE Kuwait Qatar Russia China
Slide 11: Investment in Low-Carbon Innovation
Investment in Low-Carbon Innovation Global Emissions Reduction Drivers1 Large Increases in Annual Low-Carbon Investment3 (SDS vs. STEPS - Gigatonnes CO2e emissions) Annual Low Carbon 2020 2025 2030 2035 2040 Investments4 ~$750B ~$1,500B >$2,200B 0 Current IEA IEA Behaviour & Efficiency Drivers State
Slide 12: We are Transitioning Our Business
We are Transitioning Our Business 1949 Today Single Purpose Crude Oil Pipeline Diversified Energy Delivery Company 100% 46 % of EBITDA 2009 2017 2021 comes from Natural Gas First solar Acquired First Hydrogen & Low Carbon1 power farm injection to gas project 2002 2016 2020/21 First onshore First off
Slide 13: Our Assets are Critical Conduits...
Our Assets are Critical Conduits... UK Supply natural gas to markets with Belgium >170 MM people Germany France Deliver natural gas utility service to markets with ~15 MM people Transport crude oil sufficient to meet ~25% of N.A.’s demand Produce enough renewable energy to power ~900,000 homes3 $180
Slide 14: Well-Positioned for Energy Transition
Well-Positioned for Energy Transition Conventional Growth Low-Carbon Growth Optimize / Exports Modernize Solar/ RNG H2 CCUS Expand Assets Wind Liquids 1 Pipelines Gas 1 Transmission Gas Distribution Renewable Power Embedded conventional and low-carbon growth opportunities across our businesses (1) S
Slide 15: Strengthening Low-Carbon Execution
Strengthening Low-Carbon Execution Expanding Low-Carbon Focus with Advancing Low-Carbon Strategy through Dedicated New Energies Team Strategic Partnerships President & CEO New Develop N.A. low-carbon solutions across H2, RNG, CCUS, & Renewables Gas Gas Renewable Power & Liquids Transmission Distribu
Slide 16: ESG Integrated Into Our Business
ESG Integrated Into Our Business Business Strategy Sustainable Operations Stakeholder Engagement Energized Workforce E S G Alberta Solar One, AB At Enbridge, our approach to ESG is core to everything we do 16
Slide 17: Our Differentiated Approach
Our Differentiated Approach • World-class safety & integrity • Climate leadership • Low-carbon innovation Environment • Lifecycle community engagement • Investment in sustainable benefits United Nations Sustainable Development Goals1 Stakeholder Social • Diverse and inclusive workforce Trust • Stron
Slide 18: Differentiated Services in Action
Differentiated Services in Action Enbridge Ingleside Energy Center (US Gulf Coast) Line 3 Replacement Project (Right-of-Way) Undeveloped Terminal Land 3,500 60 MW Individual community Solar facility1 engagements Wrenshall, MN – Sept 2021 • Committed to net-negative emissions, • World-class environme
Slide 19: Factored Into Capital Investments
Factored Into Capital Investments • Fund Safety and Integrity first ESG & Energy Transition Embedded in Investment Review Process • Disciplined approach to growth Strategic Fit Risks • Consider a range of ESG factors and energy transition scenarios Base • Fundamentals • Capital • Credit Assessment •
Slide 20: Our Performance Highlights
Our Performance Highlights ESG Ratings and Rankings 99.999 % Crude oil delivered ~$8 B invested ~55 in renewable energy million tonnes of carbon emissions safely from 2017-20 since 2002 avoided through DSM1 programs since 19952 Top among N.A. (Reaffirmed June 2021) midstream (Nov 2020) 19 % leadersh
Slide 21: Ambitious and Achievable Commitments
Ambitious and Achievable Commitments Environmental Social Governance • Achieve net-zero • Achieve new diversity and • Representation on the Board of emissions by 20501 inclusion goals by 2025 40% women and 20% ethnic 2025 and racial groups by 2025 • Reduce emissions Today Goal intensity 35% by 20301
Slide 22: Strong Organizational Alignment
Strong Organizational Alignment Robust Board ESG Goals & Committee Embedded in Aligning financing strategy to ESG Goals Oversight Business Plans Board committees Multi-year business responsible for specific plans incorporate areas of ESG oversight well-defined ESG goals Feb. 2021 $1.0B Sustainabilit
Slide 23: Today's Speakers
Today’s Speakers Pete Sheffield Melissa Harper SVP & Chief Human Chief Sustainability Officer Resources & Inclusion Officer Washington D.C. Houston Karen Uehara Matthew Akman SVP Strategy, Renewables & VP & Corporate Secretary New Energies Calgary Toronto Malini Giridhar Michele Harradence VP Busine
Slide 24: Emission Goals & Pathways
Emission Goals & Pathways Pete Sheffield Chief Sustainability Officer
Slide 25: Our Emission Goals
E Our Emission Goals Reduce emissions Net zero intensity 35% by 2030 emissions by 2050 Aligned to UN SDG: Minimizing our impact on the environment is core to our strategy Emissions referenced are Scope 1 and 2 GHG emissions 25
Slide 26: Setting Our Emissions Goals
E Setting Our Emissions Goals • ~2-year process involving Long-term Model to Evaluate Reduction Pathways internal and external experts • Established robust evaluation and decision-making model to Capital Business Allocation Strategies optimize emission reduction investments Ambitious Technology & Ac
Slide 27: Our Pathway to Net Zero
E Our Pathway to Net Zero Modernization and innovation 2018 Increase efficiency and reduce emissions intensity baseline 2030 35% Procuring low-emissions electricity lower emissions intensity1 Solar self-powering of our facilities & “greening of the grid” Net-Zero Nature-based solutions 2050 Emission
Slide 28: Emission Reductions To Date
E Emission Reductions To Date Scope 1 & 2 Emissions Performance1 • ~10% reduction in methane emissions 20 compared with 2018 18 16 • Operating efficiency • ~10% reduction in Scope 2 emissions due to regional power grid greening (emissions in mmtCO2e) 14 Scope 2 • Solar self-power 12 • Lower carbon g
Slide 29: Lowering Scope 3 Emissions
E Lowering Scope 3 Emissions Diversification New Low-Carbon Energy Conservation Storm Fisher RNG Hohe See Wind Farm Enbridge Gas Inc. • Renewable energy since 2002 • Investment in low-carbon energy • Enabling utility customer (RNG, H2, CCUS) conservation efforts since 1995 • Expanding natural gas sy
Slide 30: Tracking Scope 3 Performance
E Tracking Scope 3 Performance • Committed to reporting Enbridge upstream Contributions to lower Scope 3 emissions emission intensity1 3rd-party Emissions (kCO2e/GJ delivered) (cumulative million tonnes CO2e) • Introduced new metrics to 13.0 12.9 2018 2019 2020 2024 Secured Projects 20242 track perf
Slide 31: Sustainable Operations
Sustainable Operations Michele Harradence SVP & Chief Operations Officer, Gas Transmission & Midstream
Slide 32: Safety is a Core Value
E Safety is a Core Value Safety Culture • Safety and operational reliability are core Leadership Framework to everything we do • We believe that every incident can be prevented Our Goal: • Strong embedded safety culture: Vigilance Zero Ownership Incidents ‒ Leading investment in system integrity ‒ C
Slide 33: Protecting the Environment
E Protecting the Environment Reducing our water use 99% of water used in hydrostatic Water • Maintaining water quality through testing safely returned to its stringent operating practices natural environment Limiting our footprint Wetland enhancement project Land • Actively managing potential effect
Slide 34: System Safety and Integrity
E System Safety and Integrity Comprehensive Approach to Safety and Environmental Protection System Safety During Operations • Route selection Prevention Detection Mitigation Design • Strict standards for design & materials • Codes & regulations Life Cycle • Strict procurement controls System Constru
Slide 35: Safety in Action: Pipeline Inspections
E Safety in Action: Pipeline Inspections • Invested $6B in the fitness of Liquids Liquids Pipelines Pipelines1– US (2017-2019) our systems since 2017: 5 900 – ~135,000 Pipeline inspections 4.5 Total Barrels Released / Billion Barrel Miles 800 Total Inspection Miles / Total Miles of Pipe 4 700 – ~1,6
Slide 36: Safety in Action: Line 5 & Great Lakes Tunnel
E Safety in Action: Line 5 & Great Lakes Tunnel Environmental Protections Exceed Committed to Great Lakes Tunnel Pipeline Safety Standards Making System Even Safer Intelligent Ventilation Duct remotely-controlled No Anchor Zone: 24/7 valves Precautionary infrared camera, patrol shut down boat monito
Slide 37: Safety in Action – Record
E Safety in Action – Record Total Recordable Incident Pipeline System Safety Events1 Frequency (per 200,000 hours worked) Liquids Pipelines Natural Gas Pipelines Employees Contractors 1.2 20 40 1.0 30 0.8 0.6 10 20 0.4 10 0.2 0.0 0 0 2018 2019 2020 2017 2018 2019 2020 2017 2018 2019 2020 Our relentl
Slide 38: Gas Transmission Integrity Program
E Gas Transmission Integrity Program Kilometers of Pipe Inspected (Thousands) • Accelerated integrity programs to 30 ensure system-wide pipeline fitness 20 • Applied skills from Liquids Pipelines 10 to Gas Transmission 0 2017 2018 2019 2020 Terrace Mountain, PA • Employing advanced in-line inspectio
Slide 39: Modernizing Our Systems
E Modernizing Our Systems Modernization Program • Replacement of older, less efficient compressors on gas transmission systems $0.5-1B • Expected to reduce GHG emissions by 25% Annually at replaced compressors through 2024+ Delmont Compressor Station, PA Line 3 Replacement • Replacement of 990 miles
Slide 40: Driving Industry Innovation
E Driving Industry Innovation Developing New Inspection Leveraging Technology to Partnered with Industry to Tools to Meet our Standards Enhance our Capabilities Share Expertise Pipeline Research Next generation in-line inspection tool Technology & Innovation Lab Council International • Partnered wit
Slide 41: Methane Emission Abatement
E Methane Emission Abatement • Goal to exceed federal and state Approach requirements with inspections and reporting • Piloting recompression • Plan and execute work to reduce emissions technology to avoid venting at compressor • Through design, construction, and operations stations and segments • R
Slide 42: Low-Carbon Innovation
Low-Carbon Innovation Matthew Akman Malini Giridhar SVP Strategy, Renewables & New Energies VP Business Development & Regulatory, GDS
Slide 43: Our Low-Carbon Portfolio Today
E Our Low-Carbon Portfolio Today Ireland ~2 million UK Germany tonnes of CO2e emissions avoided France annually Wind Solar & Other RNG/H2 Capacity • 4.9 GW • 260 MW • RNG: 1,400 GJ & equivalent homes (1.9 GW net) (154 MW net) (Q1 2023) powered by renewables • >900,000 homes • >40,000 homes • H2: 283
Slide 44: Deep Wind & Solar Expertise
E Deep Wind & Solar Expertise Core Partnerships • Resource assessment • Permitting/regulatory Development • Local partnerships • Supply chain relationships • Major projects expertise Construction • Technical expertise Offshore wind power, as we have seen, illustrated and • JV partner & self-operatio
Slide 45: Growing Offshore Wind Portfolio
E Growing Offshore Wind Portfolio Potential to power Global OSW1 Installed Capacity Forecast Albatros | 2019 >600,000 Ireland homes with (GW) UK renewable energy 180 Dunkirk | 580 MW2 160 +64GW U.S. Rampion | 2018 Hohe See | 2019 140 Germany Other Asia Calvados | 2024 120 Fécamp | 2023 France 100 +6
Slide 46: Powering Our Assets With Solar
E Powering Our Assets With Solar Alberta Solar 1, AB Heidlersburg, PA Lambertville, NJ Emissions Reduction Potential 10.5 MW 2.5 MW 2.25 MW (Year 1 ktCO2e reduction) Operating Approved Near-Term Facilities Facilities Potential Vesper, WI | 2022 ~20 Adams, WI | 2022 ~50 Portage, WI | 2021 Flanagan, I
Slide 47: Low-Carbon Energy Innovation
E Low-Carbon Energy Innovation RNG Hydrogen Carbon Capture ENB’s Competitive Advantage Low-cost RNG injected Green H2 produced from Carbon capture offers into pipeline to decarbonize renewables and blended into customers a full value chain Existing asset footprint gas supply natural gas decarbonizes
Slide 48: Investing Across RNG & H2 Value Chain
E Investing Across RNG & H2 Value Chain Capture Upgrade Injection Production Capture Transport Storage RNG Hydrogen RNG grows to ~3%+ of total N.A. natural H2 grows to ~7% of total N.A. natural gas demand by 20401 gas demand by 20402 Food waste Green hydrogen Biogas cleaned Blending added to Electro
Slide 49: Building on RNG Capabilities
E Building on RNG Capabilities Expanding Utility Portfolio Strategic Partnerships Current Canada gas projects reduce Sufficient ONTARIO Utilities targeting energy to power OTTAWA RNG Disco Road | 2023 93,000 10% 13,000 tCO2 emissions RNG use homes RNG Stanton Farms | 2022 annually by 20301 RNG Ingre
Slide 50: Early Investment in Hydrogen
E Early Investment in Hydrogen Power-to-Gas • First N. American utility scale Power-to-Gas facility (2MW) 2018 Pilot Project with • Provides electrical grid balancing and energy storage Hydrogenics • 280,000+ kg of H2 produced since inception • N. America’s first H2 / Natural gas blending facility 2
Slide 51: Next Frontier - Carbon Capture
E Next Frontier - Carbon Capture Capabilities • Large pipeline & storage infrastructure base • World-class project execution • Strong customer & Indigenous relationships • Financial strength & capacity • ESG leadership Potential to reduce capital costs by Annual Tonnes CO2e1 Svante Partnership • App
Slide 52: Break
ESG Forum ZENBRIDGE Break 10 minutes
Slide 53: Stakeholder & Indigenous Engagement
Stakeholder & Indigenous Engagement Pete Sheffield Chief Sustainability Officer
Slide 54: Lifecycle Engagement Approach
S Lifecycle Engagement Approach ENGAGE Committed to building respectful and Identify and engage UNDERSTAND mutually beneficial relationships with local and Understand regional concerns, stakeholders 1 interests and opportunities Engagement plans in place for Community 4 Canadian and U.S. regions Eng
Slide 55: Indigenous Inclusion
S Indigenous Inclusion Understand the Recognize legal and Recognize importance Engage in forthright and Extend project benefits history and culture constitutional rights of the UNDRIP sincere consultations to communities • Improve our understanding • Recognize and respect • Support the commitments •
Slide 56: Line 3R Project – Working in Partnership
S Line 3R Project – Working in Partnership Canada U.S. (completed 2019) (under construction) 1,100+ workers 761 workers (20% of overall workforce) (7% of overall workforce) $480MM spent US$304MM spent1 Indigenous Participation Cultural surveys completed during development >300 route modifications in
Slide 57: Enriching Lives Across Our Footprint
S Enriching Lives Across Our Footprint Community Employment Goods & Services Taxes Paid Engagement Purchased >2,200 >12,000 ~10,000 $3B Organizations supported People employed by Businesses supported by Delivering benefits to local by initiatives providing Enbridge driving $1.2B in our $8 billion in
Slide 58: Energized & Diverse Talent
Energized & Diverse Talent Melissa Harper Chief Human Resources & Inclusion Officer
Slide 59: Our Core Values
S Our Core Values Safety Our core values are our foundation • Define how we work together and make decisions • Guide our communities and stakeholder engagement Respect Integrity Inclusion is a core value • Reflects its importance to our business and community • Supports stronger employee engagement
Slide 60: Values in Action – Covid-19 Response
S Values in Action – Covid-19 Response Provided Workforce safety: relief funding to • Daily Health Assessment; >150 Indigenous and • Face coverings, distancing, cleaning Tribal Groups procedures Leadership Engagement Health & Wellness • Staggered return to workplace Donated Work prioritization: ~$7m
Slide 61: Diversity, Equity & Inclusion
S Diversity, Equity & Inclusion Ambitious Workforce Representation Goals1 Pathways to Achieve Goals Representation as at June 30, 2021 50% Current 2025 Goals Engage & Empower Employees 40% Educate and equip people to connect on a personal 40% level, to amplify others, and to consciously include Raci
Slide 62: Putting our Diversity Plans in Action
S Putting our Diversity Plans in Action Engage & Empower Employees Embed Equity Elevate Diverse Talent Creating space for real conversations Enhanced recruitment practices to Diversity dashboard provides a through leadership and employee improve visibility to diverse talent snapshot of enterprise-wi
Slide 63: Extending Our Commitments to Suppliers
S Extending Our Commitments to Suppliers Health & Safety • Increasing procurement from diverse suppliers • Tracking Tier 1 (direct suppliers) and Tier 2 Reporting Environment (subcontract, supplier’s supplier) diverse dollars Supplier Code • In 6 months, over 50 key suppliers are reporting, of Condu
Slide 64: Our Path Forward
S Our Path Forward Measurement • Diversity, Equity & Inclusion goals • Enterprise-wide dashboard Transparency • Sustainability Report Accountability • Embedded in compensation Leading North American Employer Committed to sustaining our leadership by achieving our diversity, equity, and inclusion goa
Slide 65: Strong Governance
Strong Governance Enbridge Board of Directors Karen Uehara VP & Corporate Secretary
Slide 66: Our Approach
G Our Approach Board Governance Principles Our ESG Goals Accountability Strong Committee oversight and risk • 40% women and 20% ethnic management practices and racial groups on Board by 2025 • Sustain leading ESG reporting Independence 10 of 11 independent directors, including standards Board Chair;
Slide 67: Diverse and Independent Board
G Diverse and Independent Board1 Gender Diversity Committee Chair Diversity Racial and Ethnic Diversity 36% 80% Women 4 of11 Women 4 of 5 2 of11 Women Women Directors Directors 64% Chairs 20% Men Men 18% Racial & Ethnic Minorities Independence Tenure Age 9% 50s Non-independent: CEO Independent: 10 2
Slide 68: Comprehensive ESG Oversight
G Comprehensive ESG Oversight Board of Directors Corporate Social Human Resources Audit, Finance Safety & Reliability Governance Responsibility & Compensation & Risk Committee Committee Committee Committee Committee E Climate risk Emissions goals Asset integrity Incident response Indigenou
Slide 69: Board Succession Planning
G Board Succession Planning Business Judgment • Annual Board skills matrix review • Maintains inventory of potential Skills and Experience director candidates and engage 3rd party search firms as necessary Effective Residency Board • Board and Committee composition composition Diversity included in
Slide 70: Risk Management Approach
G Risk Management Approach Safety & Operations Annual Corporate Risk Assessment (e.g. integrity, emergency response plans) • Bottom-up review of enterprise-wide risks Security (e.g. physical, cybersecurity, 24/7/365) • Assess potential impact of each risk Financial • Develops continuous management a
Slide 71: Risk Management in Action - Cybersecurity
G Risk Management in Action - Cybersecurity Monitoring all systems Applying World-Class Capabilities 24x7x365 Applying NIST1 Framework Working With Industry to ensure safe operations Enbridge Cybersecurity Operation Centre Technology Modern and next generation security controls Continuous assessment
Slide 72: Transparent ESG Reporting & Disclosure
G Transparent ESG Reporting & Disclosure Management Annual Sustainability Reporting History and Approach Information Circular Report • 20 years of Annual Sustainability Reports • Follow GRI and SASB standards • Aligned with UN Sustainable Climate Change Indigenous Engagement Development Goals Resili
Slide 73: Q&A
Qs&A CENBRIDGE
Slide 74: Closing Remarks
Closing Remarks Al Monaco President & Chief Executive Officer
Slide 75: Committed to Continued ESG Leadership
Committed to Continued ESG Leadership Our ESG Goals • Safe and reliable operations • World class environmental protections • Alignment with stakeholder objectives • Assets well-positioned for energy transition • Disciplined low carbon investment Continuous improvement towards a goal of A comprehensi
Slide 76: For More Information
For More Information Sustainability and Emissions Low Carbon and Innovation • Sustainability at Enbridge • Renewable Energy • Enbridge 2020 Sustainability Report • Alberta Solar One • Net Zero by 2050 • Walker Comcor RNG Partnership • Economic Benefits by State and Province • Gazifère’s Hydrogen Inj
Slide 77: For More Information
For More Information Diversity & Inclusion and Projects and Acquisitions Indigenous Engagement • Diversity & Inclusion at Enbridge • Line 3 Replacement • Line 3 Tribal Engagement • Line 5 • Line 3 Cultural Resource Survey • Moda Midstream • Tribal Monitoring
Slide 78: Contact Information
Contact Information Rebecca Morley Vice President, Investor Relations 1-800-481-2804 Investor.Relations@enbridge.com