Slide 1: NiSource ESG Update November 2022
NiSource ESG Update November 2022 | 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 9%–11% Gas Customers NIPSCO GAS Compelling expected annual total NIPSCO
Slide 4: NiSource Long-Term Strategic Aspirations
NISOURCE LONG-TERM STRATEGIC ASPIRATIONS Customer – Financial – Through modernization of both our infrastructure We continue to execute on our robust financial and digital customer service channels we expect to plan, delivering industry-leading, risk-adjusted, achieve top quartile customer satisfact
Slide 5: 2021-22 Strategic Actions Underscore ESG Commitment
2021-22 STRATEGIC ACTIONS UNDERSCORE ESG COMMITMENT Continued Enhancement of Sustainability Investment, Social Engagement and Governance Focus • Net Zero emissions goal by 2040 for scope 1 and 2 emissions introduced November 2022 – Remain committed to achieving a 90% reduction in greenhouse gas emis
Slide 6: Enhanced NiSource Value Proposition Driving Sustainable Growth
ENHANCED NISOURCE VALUE PROPOSITION DRIVING SUSTAINABLE GROWTH 6%-8% 8%-10% Expected Annual Expected Annual NOEPS1 Growth Utility Rate Base 2021-2027 Growth 2021-2027 14%-16% 60%-70% Long-term FFO/ Targeted Annual Dividend 2 Debt Target Payout Ratio $30B Planned Long-Term ~$15B Infrastructure Invest
Slide 7: Our Sustainable Approach to ESG
OUR SUSTAINABLE APPROACH TO ESG Environmental Social Governance • Environmental performance is a key • Transformation focused on customer • Committed to maintaining a diverse, catalyst behind our investment strategy safety, reliability and affordability skilled and independent Board • We are committ
Slide 8: Driving Environmental Benefits
DRIVING ENVIRONMENTAL BENEFITS The Your Energy, Your Future Initiative Integrates Climate Risk Into Our Strategic-financial Planning In Order To Prioritize Environmental Performance Key Highlights Greenhouse Gas • Industry leading generation transition replaces 80% of coal generation capacity by 202
Slide 9: Advancing Social Priorities
ADVANCING SOCIAL PRIORITIES Our Social Priorities Are Founded Around a Rigorous Safety Culture, Targeted DEI Initiatives, and Support Of Our Communities Key Highlights • First annual public NiSource Safety Report published March 2022 • SMS (Safety Management System) is established and continues to m
Slide 10: Robust Governance Framework
ROBUST GOVERNANCE FRAMEWORK Our Governance Practices Promote Responsible Oversight and Balanced Expertise Within The Board Key Highlights • Committed to an independent, skilled and diverse board with the 2022 additions of Sondra Barbour, Cassandra Lee, and Bill Johnson • Independent Chairman preserv
Slide 11: ESG Disclosures & Reporting
ESG DISCLOSURES & REPORTING Links: Comprehensive NiSource ESG Reporting • Integrated Annual Report (IAR) • Form 10-K/10-Q • Proxy Statement • Sustainability Accounting Standards Board (SASB) • Enhanced Climate (TCFD) Report (Updated – Q4 2021) • Biodiversity Commitment (New in 2020) • Edison Electri
Slide 12: NiSource Is Rated and Benchmarked at or Near Top Quartile Among Peers
NISOURCE IS RATED AND BENCHMARKED AT OR NEAR TOP QUARTILE AMONG PEERS • Named to Index for 8th • Upgraded from ‘AA’ to ‘AAA’ • Member of FTSE4Good Index • Environment disclosure at 4th decile • ESG Risk Rating at 61st consecutive year in September 2022 Series • Social disclosure at 3rd decile percen
Slide 13: Appendix
Appendix | NYSE: NI | nisource.com
Slide 14: Environmental Stewardship
ENVIRONMENTAL STEWARDSHIP The Environmental, Social, Nominating, & Governance Committee Oversees Environmental Stewardship Initiatives and Execution Environmental Impact Targets Eliminating Owned Coal Generation by 2026-2028 and Replacing with Cleaner and Lower-Cost Energy Achieving: Emissions Reduc
Slide 15: Safety Performance and Emergency Response
SAFETY PERFORMANCE AND EMERGENCY RESPONSE Driving Toward Sustained Industry Leadership In Safety By applying operational rigor and continuous process improvement our Key Safety Management System (SMS) continues to mature – achieving key 2021 YE Performance Goal milestones in our risk reduction journ
Slide 16: Expanding Diversity, Creating an Inclusive Culture and Developing Engaged Employees
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 Progress/Recognition of diversity, setting expectations fro
Slide 17: Political Engagement
Political Engagement NiSource Is Committed to Being a Good Corporate Citizen In The Communities In Which It Conducts Business, Constructively Participating In The Political Process Where Legal and Appropriate Political Spending Policy • In January of 2021, NiSource’s Executive Leadership Team update
Slide 18: 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 Expectations – Launched Chatbots and Live Chat with A
Slide 19: NiSource Cyber Initiatives
NISOURCE CYBER INITIATIVES • The Chief Information Security Officer manages cybersecurity at NiSource and provides regular updates to the Cybersecurity Sub-Committee, a component of the Full Risk Management Committee • The Audit Committee provides independent board oversight • Continued implementati
Slide 20: Robust Framework for Risk Management and Oversight
ROBUST FRAMEWORK FOR RISK MANAGEMENT AND OVERSIGHT The Board and Management Engage Committees and Other Structures To Reinforce 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 oversee
Slide 21: Board Composition and Evaluation
BOARD COMPOSITION AND EVALUATION Diverse and Refreshed Board with a Broad Range of Relevant Experience and Skills Rigorous Board Evaluation and Selection Process Diverse Composition 33% • Annual and ongoing evaluation of full Board, Board Committees and individual Directors is overseen by the Enviro
Slide 22: NiSource Board of Directors
NISOURCE BOARD OF DIRECTORS Peter A. Altabef Theodore H. Bunting, Jr. Eric L. Butler Aristides S. Candris Age: 62 Age: 63 Age: 61 Age: 70 Elected: 2017 Elected: 2018 Elected: 2017 Elected: 2012 Occupation: Chairman. & Occupation: Retired Group Occupation: Pres. & CEO, Occupation: Retired Pres. CEO,
Slide 23: NiSource Board of Directors
NISOURCE BOARD OF DIRECTORS Robust Experience, Independent Perspectives and 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 be a
Slide 24: Management Overview
MANAGEMENT OVERVIEW Skills and Experience to Lead Commitment to Safety, Customer Experience and Stakeholder Value Lloyd Yates Donald Brown Melody Birmingham William (Bill) Jefferson • President and CEO since Feb. 14, 2022 • EVP and CFO since June 1, 2020 • EVP & Chief Innovation Officer since July 1
Slide 25: 2021 Executive Compensation Overview
Average Say-On Pay Vote for the 2021 EXECUTIVE COMPENSATION OVERVIEW Last Five Years is 97% Compensation Committee Periodically Refreshes Incentive Programs to Better Align with Longer-term ESG Initiatives Pay Element Form Performance Element Rationale and Link to Strategy (% of 2021 CEO / NEOs pay)
Slide 26: 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 27: 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