Kinder Morgan, Inc. · NYSE:KMI
Kinder Morgan — ESG Presentation (2022)
35 slides from Kinder Morgan's sustainability presentation, Nov 27, 2022
Slide 1: 2021 ESG Report Presentation
2021 ESG REPORT PRESENTATION EPNG natural gas arch bridge over the Colorado River, Topock, Arizona
Slide 2: Disclosure
Disclosure Policies & procedures / forward-looking statements / industry & market data General – The information contained in this presentation does not purport to be all‐inclusive or to contain all information that prospective investors may require. Prospective investors are encouraged to conduct t
Slide 3: ESG Strategy
ESG Strategy Provide energy transportation & storage services in a safe, efficient, and environmentally responsible manner for the benefit of people, communities, and businesses Environmental Social Governance Invest in low carbon future Safety-focused culture Risks & opportunities are monitored and
Slide 4: 2021 ESG Report Highlights
2021 ESG Report Highlights GHG Asset Employee Diversity & Tax Intensity Integrity Safety Inclusion Transparency CO2 0 $ 0.003 43,000 30% 42% $735mm Scope 1 & 2 miles of natural gas & decrease in TRIR(b) female or minority income taxes, property emission intensity(a) liquids pipelines inspected since
Slide 5: Recognized as an ESG Leader
Recognized as an ESG Leader Highly rated by multiple agencies improved MSCI rating to A from BBB & Moody’s ranking to #2 from #14 due to enhanced disclosure Sustainalytics #3 MSCI A FTSE #3 of 196 Refiners & Pipelines Oil & Gas Refining, of Oil & Gas of 109 Oil & Gas Storage & Marketing, Transportat
Slide 6: Benefits of Natural Gas
Our Infrastructure is Important to Fueling the Future BENEFITS OF NATURAL GAS LOWER EMISSIONS ABUNDANT & LOW COST Natural gas is the cleanest burning fossil fuel with Abundant resources are geographically significantly lower combusted emissions than coal or fuel oil dispersed, creating a competitive
Slide 7: U.S. is a Responsible Producer
U.S. is a Responsible Producer One of the lowest emissions intensity producers in the world & at unmatched scale AVERAGE UPSTREAM METHANE EMISSION INTENSITY 2020 OIL & GAS PRODUCTION mtoe SCALING FACTOR 7 1,600 6 Only 5 countries have 1,200 … & the U.S. produces more 5 lower emission intensity than
Slide 8: Further Replacing Coal Could Accelerate Emission Reduction Goals
Further Replacing Coal Could Accelerate Emission Reduction Goals POTENTIAL FOR LOWER GLOBAL EMISSIONS Mt CO2 2,005 Potential Net 6% of 2020 CO2 6,217 Reduction of 24% 18% of 2020 CO2 34,156 25,934 2020 total global CO2 emissions 2020-2050 assumed net change between potential for additional reduction
Slide 9: Renewables Growth Increases Demand for Natural Gas Deliverability Services
Renewables Growth Increases Demand for Natural Gas Deliverability Services — Renewable intermittency causes large demand swings for natural CASE STUDY: CALIFORNIA POWER GENERATION BY SOURCE gas Gigawatts — Pipeline volumes must be carefully managed in order to meet Other Wind Solar Implied Imports N
Slide 10: Positioned for the Future of Energy
Positioned for the Future of Energy Our vast network of strategically-located energy infrastructure will continue delivering energy for decades to come Moving fuels of today & the future U.S. is the world’s most responsible producer Building new infrastructure network can be difficult, of scale envi
Slide 11: Supporting a Low Carbon Future and Enabling Our Downstream Customers to Meet Their GHG Goals
Supporting a Low Carbon Future and Enabling Our Downstream Customers to Meet Their GHG Goals Investing today 1-5 years 5-30+ years — Connected 6 RNG sites to our — Potential increases in the use of — Potential hydrogen dedicated pipeline system; aggregate our existing assets and efficiency infrastru
Slide 12: Attractive Potential for Renewable Fuels
Attractive Potential for Renewable Fuels GLOBAL BIOFUELS DEMAND OUTLOOK mmbbld U.S. RNG PRODUCTION bcfd 9 3.5 3.0 2.5 6 2.0 Triples by 2030 1.5 3 1.0 Volumes are expected to grow, and premium values 0.5 could drive significant operating margin - - 2020 2030 2035 2040 2045 2050 2020 2025 2030 2035 20
Slide 13: CCUS Economics are Improving but Remain Challenged
CCUS Economics are Improving but Remain Challenged CURRENT ESTIMATED U.S. CARBON CAPTURE COST $/tonne 45Q TAX CREDITS $140 ‒ Capturer controls the tax credit Additional technological advancements ‒ Industry still contemplating economics across the value $120 & government policy could advance chain C
Slide 14: Aligned with TCFD Recommendations
Aligned with TCFD Recommendations CORE ELEMENTS OF TCFD’S RECOMMNEDED CLIMATE-RELATED FINANICAL DISCLOSURES Applicable pages in the 2021 ESG Report Governance Around climate-related risks & 83-86 opportunities Strategy Actual & potential impacts of climate- 86-103 related risks & opportunities on th
Slide 15: Scope 1 & 2 Emissions Reporting
Scope 1 & 2 Emissions Reporting Provides baseline for evaluating potential further reductions 2021 SCOPE 1 & 2 GHG EMISSION SOURCES(a) 61% combustion 17% purchased 11% vented 7% fugitive 3% process 1% flared Example sources include fuels electricity emissions emissions emissions hydrocarbons POSSIBL
Slide 16: Committed to Lowering GHG Emissions
Committed to Lowering GHG Emissions Evaluating Long-Term GHG Targets 0.003 0.03% Report Scope 1 & 2 GHG emissions, providing baseline for evaluating potential GHG reduction opportunities Scope 1 & 2 emission intensity(a) 2021 methane intensity per ONE in 2021 Future calculation Annual Leak Surveys %
Slide 17: Reducing CO2 Emissions on Houston Ship Channel
Reducing CO2 Emissions on Houston Ship Channel Adding 5 Vapor Recovery Units at Galena Park & Pasadena terminals — $64 million — 3Q 2023 in-service Expect project to reduce Scope 1 & 2 emissions by ~34,000 metric tonnes CO2e per year, or ~38% from 2019(a) — Equivalent to CO2 emissions from: 3,860,54
Slide 18: Partnering with Operators, Universities, and Government Agencies To Better Understand GHG Emissions
Partnering with Operators, Universities, and Government Agencies To Better Understand GHG Emissions Cheniere-Led QMRV Project — Focus on quantifying, monitoring, reporting, and verifying (QMRV) GHG emissions associated with the operation of natural gas gathering, processing, transmission, and storag
Slide 19: Reducing Methane Emissions for >25 Years
Reducing Methane Emissions for >25 Years CUMULATIVE METHANE EMISSIONS REDUCTIONS bcf Primary reduction strategies across our operations reported to EPA Natural Gas STAR & Methane Challenge — Conduct annual methane leak surveys on - transmission & storage assets and perform maintenance & repairs as n
Slide 20: As Founding ONE Future Member, Encourage Industry Participation due to Proven Results
As Founding ONE Future Member, Encourage Industry Participation due to Proven Results ONE FUTURE METHANE EMISSION INTENSITY — ONE Future uses science-based Transmission & storage Remaining natural gas supply chain technology and methods to 1.44% reduce emissions across the In 2014 ONE Future set a g
Slide 21: Managing Energy Consumption is Impactful
Managing Energy Consumption is Impactful Programs in place to lower Scope 2 emissions Curtail — Can quickly curtail our power demand when necessary to help maintain grid reliability — Additional benefit of monetizing our reduced energy usage — Biggest programs in California and Texas Efficiency — Im
Slide 22: Lending our Expertise and Intellectual Capital
Lending our Expertise and Intellectual Capital Research & Development efforts New York State’s Emission Measurement Project Continue to refine methane emission factors for greater accuracy Emissions Cheniere-Led QMRV Project First-of-its-kind project aiming to better understand GHG emissions IAB for
Slide 23: Land & Habitat Preservation is Key to Minimizing Environmental Impact
Land & Habitat Preservation is Key to Minimizing Environmental Impact CARBON CYCLE in gigatons commit to natural sinks restore habitats protect animals & plants average annual 2011-2020 estimated 829 811 Trees for Tucson Terminal Four Wharf Removal Bergen County Tree Planting & Fossil fuels & land u
Slide 24: Targeting Zero Incidents
Targeting Zero Incidents History of outperforming our industry & prior 3-year averages EMPLOYEE SAFETY OUR EHS PEFORMANCE VS. INDUSTRY Company-wide total recordable incident rate (TRIR) # of metrics where we performed better than the industry average (out of 31 tracked) 3 29 28 28 Industry average 2
Slide 25: Protecting Assets & Communities
Protecting Assets & Communities Asset Integrity Annual, quarterly, and monthly asset integrity reviews with Over the past 3 years, assessed — members of senior management ~33,200 miles ~9,600 miles — Monitor operations 24/7 — Visually inspect rights-of-way by air and ground — Use smart pigs to perfo
Slide 26: Engaging Stakeholders where we Live, Work, and Play
Engaging Stakeholders where we Live, Work, and Play Build trust and collaborate Multiple avenues for communicating with stakeholders Landowners Community members Emergency responders Government & regulators In-person meetings Town halls, open houses Project websites Social media Public awareness com
Slide 27: Energy and Environmental Justice
Energy and Environmental Justice Environmental Justice Energy Justice Community Outreach Affordable, reliable energy is essential to human Committed to engaging with communities, development governments, stakeholders in accordance with our core values Support energy justice by fulfilling our vision
Slide 28: Community Engagement During Permian Highway Pipeline Construction
Community Engagement During Permian Highway Pipeline Construction >150 reroutes To best accommodate landowner requests or Tribal members served as Monitors during environmental considerations PHP construction to help oversee the 5 open houses Directly notified landowners & published in local protect
Slide 29: Investing in our People & Communities
Investing in our People & Communities employer of choice 42% flexible schedules leadership programs open feedback female or minority representation in for many job functions for newly promoted & recently hired culture by engaging with employees Executive Leadership helps bring a leaders 9/80, half-d
Slide 30: Diversity Initiatives
Diversity Initiatives FEMALE MINORITY 2021 PROCUREMENT SPEND 20% management 21% management 48% 16% workforce 30% workforce Small business small business Diverse-owned(a) 13% leadership 28% leadership minority Veteran-owned training training women veteran multiple categories Nearly $1.2 billion — Set
Slide 31: Prioritize Corporate Governance
Prioritize Corporate Governance Directors are subject to annual election – not staggered elections Transparent approach to the public sector Directors are elected based on majority voting – not plurality voting(a) Political Contributions — Policy outlined in Code of Business Conduct & Ethics Proxy a
Slide 32: Board Members with Deep Experience
Board Members with Deep Experience Engage in climate-related topics, challenge management assumptions, and make thoughtful & informed decisions 40% of Board has Regulatory and EHS experience Industry / CEO or Other Accounting & Corporate Capital Regulatory Legal Risk Ethnic, Operational C-Level Publ
Slide 33: Board Committee Oversight
Board Committee Oversight safety & environmental incident rates, regulatory compliance, and financial Code of Business Conduct measurements factored diversity matters & & Ethics and cybersecurity into bonus pool ESG matters succession planning 33
Slide 34: Cybersecurity Controls
Cybersecurity Controls An integral part of our business continuity planning and emergency preparedness and response plans strategy security protocols partnerships Aligned with Commerce Department’s Separate business & operational networks DOE, FBI, Homeland Security, industry groups Framework for Cr
Slide 35: Additional ESG Resources
Additional ESG Resources ESG Disclosure Index & summarized ESG metrics available in excel format on our website ESG Report Section Page or Reference to Kinder Morgan Topic Sustainability Policies and Accounting Metrics SASB(a) GRI (Core)(b) CDP(c)(d) SDGs Published Document Electricity consumption 2