Tc Energy Corporation · TSX:TRP
Tc Energy — ESG Presentation (June 2022)
35 slides from Tc Energy's sustainability presentation, Jun 14, 2022
Slide 1: ESG as a strategic driver
ESG as a strategic driver ESG FORUM | JUNE 14, 2022, 8 A.M. EDT
Slide 2: Land acknowledgement
Land acknowledgement Bi OO OO DOOO00 0000 2) —
Slide 3: Forward looking information and non-GAAP measures
Forward looking information and non-GAAP measures This presentation includes certain forward looking information, including but not limited to, statements related to future dividend and earnings growth, future EBITDA growth, the future growth of our core businesses, our anticipated capital programs,
Slide 4: ESG as a strategic driver
OUR APPROACH ESG as a strategic driver ENVIRONMENTAL SOCIAL GOVERNANCE Committed to our principles Building vibrant, healthy A framework for of environmental stewardship, communities and businesses, accountability, management, protection and performance. focusing on safety first. risk mitigation and
Slide 5: Refreshed scorecard to align to our strategy
25% 2022 CORPORATE SCORECARD Progressing ESG priorities, including safety Refreshed scorecard to align to our strategy 50% Delivering financial results Advancing other key strategic 25% priorities, including growth and energy transition 5
Slide 6: Today's agenda
Today’s agenda Embedding energy Partnering with Empowering our people Open Q&A period transition into our stakeholders and to deliver solutions business strategy communities 8:00 a.m. – 8:40 a.m. 8:40 a.m. – 9:00 a.m. 9:00 a.m. – 9:15 a.m. 9:15 a.m. – 9:45 a.m. Introduction and overview: Overview: F
Slide 7: Embedding energy transition into our business strategy
Embedding energy transition into our business strategy FRANÇOIS POIRIER, PRESIDENT AND CEO JUNE 2022
Slide 8: A transition to lower-emitting energy that also meets demand
THE CHALLENGE A transition to lower- emitting energy that also meets demand JUNE 2022 8
Slide 9: Energy transition is a catalyst for growth and long-term shareholder value
THE OPPORTUNITY Energy transition is a catalyst for growth and long-term FPO shareholder value TC Energy has an immense opportunity to leverage our competitive strengths and be a leader. JUNE 2022 9
Slide 10: Across all scenarios in 2050 abundant amounts of energy still in use
INTERNATIONAL ENERGY AGENCY: 2021 WORLD ENERGY OUTLOOK Across all scenarios in 2050 abundant amounts of energy still in use TOTAL GLOBAL C02 COMBUSTION TOTAL WORLD ENERGY CONSUMPTION (Mt CO2) (EJ) 40,000 600 34,156 550 33,903 479 30,000 413 400 392 344 20,000 20,762 200 10,000 8,170 0 0 0 2020 2050
Slide 11: Our climate goals
ROAD TO 2050 Our climate goals Reduce GHG emissions intensity from our operations by 30% by 2030 Position to achieve net zero emissions from our operations by 2050
Slide 12: Five focus areas with quantifiable emissions reductions
THE WAY FORWARD Five focus areas with quantifiable emissions reductions CUMULATIVE ABATEMENTS 2020 2030 2050 i Modernizing our 10-20% of identified reductions systems and assets (Scope 1) Decarbonizing our energy 70-80% of identified reductions consumption (Scope 1+2) Investing in low-carbon EVALUAT
Slide 13: Leveraging our differentiated strengths to originate new opportunities
ROAD TO 2050 Leveraging our differentiated strengths to originate new opportunities and create shareholder value across all scenarios • Synergistic footprint • Dominant incumbent position • Strategic relationships and partnerships • Organizational capabilities • Financial strength NOVEMBER 5, 2021 1
Slide 14: Synergistic footprint
DIFFERENTIATED STRENGTHS Synergistic footprint Natural gas pipelines 93,300 km Connecting cleaner-burning fuel from premier basins to highest demand centres and LNG export points.
Slide 15: Synergistic footprint
DIFFERENTIATED STRENGTHS Synergistic footprint Natural gas pipelines 93,300 km Connecting cleaner-burning fuel from premier basins to highest demand centres and LNG export points. Liquids pipelines 4,900 km Transporting ~20% of the western Canadian oil that goes to the U.S. Midwest and Gulf Coas
Slide 16: Synergistic footprint
DIFFERENTIATED STRENGTHS Synergistic footprint Natural gas pipelines 93,300 km Connecting cleaner-burning fuel from premier basins to highest demand centres and LNG export points. Liquids pipelines 4,900 km Transporting ~20% of the western Canadian oil that goes to the U.S. Midwest and Gulf Coas
Slide 17: Dominant incumbent position
DIFFERENTIATED STRENGTHS Dominant incumbent position Natural gas pipelines 93,300 km Connecting cleaner-burning fuel from premier basins to highest demand centres and LNG export points. Liquids pipelines 4,900 km Transporting ~20% of the western Canadian oil that goes to the U.S. Midwest and Gul
Slide 18: Established relationships and strategic partnerships
DIFFERENTIATED STRENGTHS Established relationships and strategic partnerships • Customers • Landowners • Communities • Indigenous rightsholders • Environmental organizations • Governments • Cross-industry 2021 community giving map: $27 million directed to causes that matter to people who live there.
Slide 19: Organizational capabilities
DIFFERENTIATED STRENGTHS Organizational capabilities 3,650+ 7,000+ employees 180 strategy, sustainability, energy transition and origination 160 stakeholder relations 3,050+ 280 land and environment 245 regulatory, compliance and legal 345 financial and risk management 670 corporate services 5,320 o
Slide 20: $25 billion secured capital program
DIFFERENTIATED STRENGTHS $25 billion secured Expanding our $6.3B highly efficient capital program NGTL system Maintaining our $2.5B critical systems and connecting to West Portfolio expected to deliver Coast LNG a weighted average unlevered after-tax IRR of ~8 per cent. $4.4B Extending the life of e
Slide 21: Originating new opportunities
DIFFERENTIATED STRENGTHS Originating new opportunities 1. Reducing emissions on our current systems while meeting rising demands for energy. 2. Helping industries and customers decarbonize their operations and meet their sustainability goals. 3. Adding renewable and lower-emissions power that is rel
Slide 22: Road to 2050: alignment with IEA priorities
ROAD TO 2050 IEA four key priorities to keep the door to 1.5°C open TC Energy alignment with key IEA priorities Increase low emissions share of electricity generation • Growing access to LNG markets — Coastal GasLink, 2020 x 1.8 U.S. natural gas XPress projects • Bruce Power Life Extension 2030 • Pu
Slide 23: Consistent with risk/return preferences
CAPITAL ALLOCATION Consistent with risk/return preferences Commercial opportunities Expected 7-9% IRR Incumbency Long-term contracted Market fundamentals or rate-regulated GHG profile Risk preferences met Stakeholder relations / Organizational capabilities project executability Capital allocation de
Slide 24: Embedding energy transition into our business strategy
Q & A PA N E L Embedding energy transition into our business strategy R O L A N D M U W A N G A , V I C E - P R E S I D E N T, ENERGY TRANSITION – TECHNICAL & O P E R AT I O N S S T R AT E G Y O M A R K H AY U M , V I C E - P R E S I D E N T, E N E R G Y O R I G I N AT I O N A N D D E V E L O P M E
Slide 25: Technology Maturity
Customer demand accelerating maturity of low carbon technologies Technology monitoring and engagement optimizes deployment of capital Low-CO2 CCUS Hydrogen RNG DAC3 Hubs Wind Flow Hubs Battery CCUS CCUS Solar Hydro (Local)2 Flow Batteries Technology Maturity Hydrogen Pyrolysis Nuclear Renewable SMR1
Slide 26: Embedding energy transition into our business strategy
Q & A PA N E L Embedding energy transition into our business strategy R O L A N D M U W A N G A , V I C E - P R E S I D E N T, ENERGY TRANSITION – TECHNICAL & O P E R AT I O N S S T R AT E G Y O M A R K H AY U M , V I C E - P R E S I D E N T, E N E R G Y O R I G I N AT I O N A N D D E V E L O P M E
Slide 27: Partnering with stakeholders and communities
Partnering with stakeholders and communities PAT R I C K M U T TA R T , S E N I O R V I C E - P R E S I D E N T, S TA K E H O L D E R R E L AT I O N S JUNE 2022
Slide 28: Virginia Reliability Project delivers energy solutions in a fair and equitable manner
EARLY ENGAGEMENT Virginia Reliability Project (VRP) delivers energy solutions in a fair and “I have worked hard in my career to equitable manner oppose poverty. VRP offers the kind of direct economic investments that make a real difference for underserved communities.” Lamont Bagby, Member, Virginia
Slide 29: TC Energía partnership supports bridge reconstruction in local village
COMMUNITY BENEFIT TC Energía partnership supports bridge reconstruction in local village “The Municipal Assembly is very grateful to TC Energy. Tlahuiltepa is a partner and friend of the company…” Chavez Cobos Municipal President of Tlahuiltepa JUNE 2022 29
Slide 30: Co-creating value with Indigenous communities
NATION BUILDING Co-creating value with “We want to be partners. We want to Indigenous communities be involved in the lifecycle of the project from ground-breaking to reclamation. Having the option to get involved in equity opens up the opportunity to have long-term economic benefit from a project th
Slide 31: Developing meaningful partnerships
Q&A Developing meaningful partnerships T I F F A N Y M U R R AY , D I R E C T O R , I N D I G E N O U S R E L AT I O N S , C O A S TA L G A S L I N K JUNE 2022 31
Slide 32: Empowering our people to deliver solutions
F I R E S I D E C H AT Empowering our people to deliver solutions JOEL HUNTER, EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER DAWN D E L I MA, E X EC U TI V E V I C E - PR ESI DE NT C O R P O R AT E S E R V I C E S , C H I E F I N C L U S I O N AND DIVERSITY OFFICER JUNE 2022 32
Slide 33: We welcome your questions
Q & A PA N E L We welcome your questions M O D E R AT O R : J O E L H U N T E R EXECUTIVE VICE-PRESIDENT AND CHIEF FINANCIAL OFFICER JUNE 2022 33
Slide 34: Sustainability and ESG reports
Sustainability and ESG reports 2021 Report on GHG Emissions 2021 ESG Datasheet Reconciliation Action Plan Sustainability Reduction Plan Reporting across the ESG spectrum available at TCEnergy.com/ESGDirectory JUNE 2022
Slide 35: Thank you!
Thank you! JUNE 2022