Building a better & brighter future - 2020 Sustainability Report

Building a better & brighter future - 2020 Sustainability Report

a better
& brighter
2020 Sustainability Report
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
2020 Sustainability Report               Chair & CEO Messages   Hydro One At-A-Glance       Our Approach                       People                     Planet                Community                               Appendices                                                          2

About This Report
Hydro One Limited (referred to as “Hydro One” or                                        relevant leaders review and approve
                                                                                        our annual sustainability report. As part
“the company”) is committed to building a better and                                    of this year’s report, the greenhouse
brighter future for all. Through our business, we are                                   gas (GHG) emissions data for 2020 has
growing and evolving to stand up for people, the planet                                 been verified by GHD Limited.5

and communities across Ontario.                                                         This report reflects our performance
                                                                                        from January 1 to December 31, 2020.
                                                                                        The information contained within
Our 2020 Sustainability Report           sustainability reporting standards;1
                                                                                        this year’s report is for Hydro One
provides a balanced account of our       the Sustainability Accounting Standards
                                                                                        Limited.6 In instances where data is only
environmental, social and governance     Board (SASB);2 the Canadian Electricity
                                                                                        available for Hydro One Networks Inc.
(ESG) performance and is intended        Association’s (CEA) Sustainable
                                                                                        (Hydro One Networks), it will be noted
to provide stakeholders, partners,       Electricity Company™3 designation;
                                                                                        with an asterisk (*). All financial figures
our customers and communities            and our most recent sustainability
                                                                                        are reported in Canadian dollars.
with a better understanding of how       materiality assessment.                                                                                                                 Table of Contents
Hydro One manages the opportunities
                                         For the first time, our report has also                                                                                                 Message from Our Chair ..................................................................3
and challenges associated with
                                         been prepared broadly following the
our business.                                                                                                                                                                    Message from Our President and CEO ......................................4
                                         recommendations of the Task Force on           1 The GRI core sustainability reporting standards are global standards for
                                                                                          sustainability reporting. The GRI index can be found in the appendix.                  Hydro One At-A-Glance ...................................................................5
Hydro One is committed to releasing      Climate-related Financial Disclosures          2 SASB is an independent non-profit organization whose mission is to develop and
                                                                                          disseminate sustainability accounting standards that help public corporations
                                                                                                                                                                                 Our Approach .......................................................................................8
an annual sustainability report          (TCFD).4 This initial TCFD disclosure
                                                                                          disclose material, organization decision-useful information to investors. The
                                                                                          SASB table can be found in the appendix.
                                                                                        3 Sustainable Electricity Company™ brand is a designation established by the
                                                                                                                                                                                 People .................................................................................................... 13
and to continuously increasing the       report describes our company’s current           CEA, based primarily on ISO 26000 Guidance on Social Responsibility.
                                                                                        4 The TCFD was established by the Financial Stability Board to develop consistent

transparency and accountability          efforts toward climate change and acts           climate-related financial risk disclosures for use by companies, banks and
                                                                                          investors in providing information to stakeholders. The TCFD table can be found
                                                                                          in the appendix.
of our ESG disclosures. We are           as a foundation for future reporting.          5 The letter of assurance from GHD Limited can be found in the appendix.
                                                                                        6 Through Hydro One Limited’s fully owned subsidiary Hydro One Inc., we acquired
                                                                                                                                                                                 Community ......................................................................................... 32

guided in our reporting by the                                                            the business and distribution assets of Peterborough Distribution Inc. (PDI), and
                                                                                                                                                                                 Appendices .........................................................................................49
                                         Hydro One’s Board of Directors, the              acquired Orillia Power Distribution Corporation (OPDC) in 2020. All financials

Global Reporting Initiative (GRI) core
                                                                                          in this report include PDI and OPDC from August 1, 2020 and September 1, 2020,
                                                                                          respectively. No other data in the report includes PDI and OPDC as full integration
                                         company’s disclosure committee and               did not take place until June 1, 2021.                                                 Forward-looking Statements ...................................................... 67
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
 2020 Sustainability Report          Chair & CEO Messages              Hydro One At-A-Glance          Our Approach               People          Planet                 Community                       Appendices              3

 Message from Our

                              Building a better and brighter                          This past year, we also reinforced Hydro One’s
                                                                                      commitment to improving our safety culture and
                              future for all. Hydro One’s vision                      strengthening our partnerships with Indigenous
                              has been brought to life this past                      communities by establishing the Board’s new
                              year by the extraordinary efforts                       Indigenous Peoples, Safety & Operations
                                                                                      Committee.7 We also enhanced the Board’s
                              of our employees at every level                         governance structure to recognize the importance
                              of the company as well as our                           of regulatory and public policy matters within the
                                                                                      electricity sector.
                              partners in communities across
                              the province.                                           The challenges of the past year have highlighted
                                                                                      the need for a more diverse, equitable and inclusive
                                                                                      society. For our own part, we are working toward
                              As the pandemic underscored the importance
                                                                                      greater representation around the boardroom
                              for organizations to contribute to a more
                                                                                      table. We are fortunate to benefit from diverse
                              sustainable world, Hydro One has focused its
                                                                                      perspectives, with Indigenous representation and
                              effort to support customers and communities.
                                                                                      gender parity at the Board level. I’m pleased that
                              Building a strong sustainability culture is a top
                                                                                      we have already surpassed our Catalyst Accord
                              priority for the Board of Directors and we have
                                                                                      commitment to achieve at least 30% female board
                              established a robust committee structure to
                                                                                      members by 2022.
“We have already              oversee the company’s environmental, social
                              and governance (ESG) program.                           Leadership starts with the Board and we will

 surpassed our Catalyst       At the Board level, we now have greater oversight
                                                                                      continue to enhance the rigour and oversight of
                                                                                      our governance practices. On behalf of the Board,
 Accord commitment            of ESG matters through the review and approval
                              of the company’s sustainability priorities and
                                                                                      I want to thank Mark and the Hydro One team for
                                                                                      their unwavering support this past year, and for all
 to achieve at least 30%      goals. We are pleased that this year, the company
                              committed to achieve net-zero greenhouse gas
                                                                                      the work you do to protect our people, the planet
                                                                                      and the communities we serve.
 female board members.”       (GHG) emissions by 2050 with a target of a 30%
                              GHG reduction by 2030.
 Timothy Hodgson              In addition, we elevated the review of Hydro One’s
                              annual sustainability report to the full Board,
                              underscoring the improved transparency and
                              accountability of our ESG disclosures.

                                                                                                                                             7   Previously the Health, Safety, Environment and Indigenous Peoples Committee.
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
 2020 Sustainability Report          Chair & CEO Messages               Hydro One At-A-Glance          Our Approach                People        Planet              Community                Appendices   4

 Message from Our

President & CEO
                              It has been a difficult year filled                      a tragic loss of one of our employees in 2020 to a       Through our Pandemic Relief and Connected for
                                                                                       third-party motor vehicle incident and in 2021 we        Life programs, we provided critical support to
                              with unparalleled uncertainty and                        are again grieving the loss of an employee due to        customers in their time of need, offering peace of
                              historic challenges. With those                          a roadside third-party vehicle incident. Our entire      mind and financial relief.
                              challenges came the opportunity                          executive team is committed to eliminating life-
                                                                                                                                                We also feel a deep responsibility to support the
                                                                                       altering serious injuries and fatalities at Hydro One
                              to energize life for our customers                       and we have developed a strategy to achieve this         communities we serve through this crisis and we
                                                                                                                                                are proud to support 35 local organizations that
                              and communities in Ontario. From                         goal and make sure all of our employees go home
                                                                                       safely at the end of the day.                            are working to keep our communities safe.
                              the outset of COVID-19, Hydro
                                                                                                                                                We know many Ontarians feel uncertain about the
                              One has been focused on our                              Protect the Planet: As one of the largest electricity
                                                                                                                                                future. Hydro One stands ready to help Ontario
                                                                                       utilities in North America, we are uniquely positioned
                              responsibility to keep Ontarians                         to support the electrification of the province.          emerge stronger from the global pandemic,
                              safe and to power the province                           Through our expansive grid and influence, we will        delivering safe and reliable power that will be critical
                                                                                                                                                to rebuilding businesses and promoting job creation,
                              through the pandemic.                                    help our customers, partners and suppliers to
                                                                                                                                                growth and investment across the province.
                                                                                       achieve their climate change goals and accelerate
                                                                                       Ontario’s transition to a low-carbon future.             I want to thank our employees for energizing life
                              We have seen our Hydro One team rise to the
                                                                                       We are doing our part to ensure Ontario’s                for our customers and communities under such
                              challenge, and consistently go above and beyond
                                                                                       grid infrastructure remains flexible, resilient          difficult circumstances. I am truly proud of what
                              to support one another, our customers and
                                                                                                                                                we have achieved this past year in support of our
“Hydro One stands             communities. Thanks to their efforts, Hydro One
                              successfully executed our strategy while providing
                                                                                       and prepared for the future. Hydro One’s
                                                                                       climate leadership is emphasized by our public           vision for a better and brighter future for all.

 ready to help Ontario        reliable power to Ontario hospitals, health care
                              facilities, businesses and homes.
                                                                                       commitment to achieve net-zero GHG emissions
                                                                                       by 2050. Over the coming years, we will accelerate
 emerge stronger from         It has been a pivotal 18 months for our company.
                                                                                       our climate mitigation strategies and explore new
                                                                                       technologies to further reduce emissions.
 the global pandemic.”        The pandemic has deepened our sense of purpose
                              to energize life: put people first, protect the planet   Keep Communities Safe and Strong: Ontarians are
                              and keep Ontario communities safe and strong.            counting on us and we are here for them.
 Mark Poweska
 President & CEO
                              Put People First: In 2020, we altered the way we         We continue to support Indigenous partners,
                              work in order to protect our employees while doing       last year sourcing $42 million in goods and
                              our part to prevent the spread of COVID-19. I am         services from over 80 Indigenous businesses.
                              thankful the safeguards we put in place resulted         Partnering on projects and expanding long-term
                              in a low COVID-19 case incident rate at our              relationships with Indigenous communities will
                              workplace compared to the Ontario and Canadian           continue to be our focus. We continue to build
                              national averages.                                       strong relationships with Indigenous communities,
                                                                                       customers and employees by supporting
                              Our commitment to improving the safety culture at        education and training, removing barriers
                              Hydro One is paramount and we have seen a steady         and improving engagement while increasing
                              decrease in the number of recordable injuries            business opportunities.
                              over the past 10 years. However, we experienced
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
2020 Sustainability Report                    Chair & CEO Messages   Hydro One At-A-Glance   Our Approach   People   Planet   Community   Appendices   5

Hydro One’s Business Network

Corporate Profile
Hydro One Limited (TSX: H)
Hydro One Limited, through its wholly-owned subsidiaries, is Ontario’s largest
electricity transmission and distribution provider with approximately 1.4 million
valued customers, approximately $30.3 billion in assets as at December 31, 2020,
and annual revenues in 2020 of approximately $7.3 billion.
Our team of approximately 8,700 skilled and dedicated employees proudly build and
maintain a safe and reliable electricity system which is essential to supporting strong
and successful communities. In 2020, Hydro One invested approximately $1.9 billion
in its transmission and distribution networks, and supported the economy through
buying approximately $1.7 billion of goods and services.
We are committed to the communities where we live and work through community
investment, sustainability and diversity initiatives. We are designated as a Sustainable
Electricity Company by the Canadian Electricity Association.
Hydro One Limited’s common shares are listed on the TSX and certain of Hydro
One Inc.’s medium term notes are listed on the NYSE. Additional information can be
accessed at, or
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
2020 Sustainability Report                                         Chair & CEO Messages            Hydro One At-A-Glance       Our Approach              People            Planet          Community                                                                          Appendices                         6

Hydro One’s Business Network

Our Business Network and Role in                                                                                                                                                                                                                                            Electricity Generation Sources

Ontario’s Electricity System

                                                                                                                                                                                                                                                                                 (increased to higher voltage)

Our Rate Regulated Business                                        Our Other Business                                         Our Role as a Transmission
Transmission: Our transmission system transmits                    Our other business consists principally of our             and Distribution Company

high-voltage electricity from nuclear, hydroelectric, natural      telecommunications business, Hydro One Telecom Inc.        Our provincial transmission and distribution system safely

                                                                                                                                                                                                  Hydro One’s role in the Ontario electric power system
gas, wind and solar sources to distribution companies              (Hydro One Telecom). Hydro One Telecom offers              and reliably serves communities throughout Ontario.
and industrial customers across Ontario. Our system                comprehensive communications and information               Hydro One’s transmission business operates and maintains                                                                                           Transmission System
accounts for approximately 98%8 of Ontario’s transmission          technology services and solutions (for example, cloud      most of the high-voltage transmission system that carries
capacity with approximately 30,000 circuit kilometres of           services, managed services and security-based              electricity from generators to local electric utilities or
high-voltage transmission lines. We also own and operate           services) that extend beyond its fibre-optic network,      large industrial customers, such as manufacturers.
25 cross-border interconnections with neighbouring                 in a competitive and commercial market. We also
provinces and the United States, which allows electricity to       invested in IvyTM, a joint venture between Hydro One and   Through our distribution business, we also operate and                                                                                                  Transformer
                                                                                                                                                                                                                                                                                (decreased to medium voltage)
flow into and out of Ontario.                                      Ontario Power Generation Inc. (OPG), which provides        maintain low-voltage distribution systems that carry
                                                                   electric vehicle (EV) charging network services.           electricity from transformer stations to distribution
Distribution: Our distribution system is the largest9 in                                                                      stations, to pole-top transformers through power lines,
Ontario. It consists of approximately 124,000 circuit                                                                         and into homes and businesses.
kilometres of primary low-voltage power lines serving

approximately 1.4 million customers, mostly in rural areas.                                                                   A mix of private companies and government-owned
                                                                                                                                                                                                                                                                                 Distribution System
As well, Hydro One Remote Communities Inc. (Hydro One                                                                         entities generate power for all of Ontario and the sources
Remote Communities) serves customers in one grid-                                                                             of power are determined by the Independent Electricity
connected and 21 off-grid communities in Ontario’s                                                                            System Operator (IESO).
far north.
                                                                                                                                                                                                                                                                                 (decreased to lower voltage)

                                                                                                                                                                                                                                                          Industrial, Commercial and Residential Customers
8   Based on revenue approved by the Ontario Energy Board (OEB).
9   Based on customers (per OEB yearbook).
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
2020 Sustainability Report                                         Chair & CEO Messages         Hydro One At-A-Glance              Our Approach                 People   Planet           Community              Appendices                           7

Our 2020 ESG Highlights

 People                                                                               Planet                                                                             Community

     Stronger Safety Culture We launched an employee-led Safety                           Sustainability Leadership Our sustainability progress was again                  Standing Up for Communities Our community partnerships supported
     Improvement Team that made concrete recommendations to improve                       recognized, with Corporate Knights placing us on its annual list of              Ontarians through the COVID-19 pandemic, helping local and Indigenous
     the safety culture of our organization to eliminate life-altering serious            Best 50 Canadian Corporate Citizens and the CEA redesignating                    communities respond to emerging and urgent needs for critical food,
     injuries and fatalities at Hydro One. These recommendations have been                Hydro One as a Sustainable Electricity Company.                                  medical, safety and other supplies.
     incorporated into our multi-year safety implementation plan.
                                                                                          Greener Ontario We officially launched our innovative joint venture Ivy          Progressive Indigenous Relations We increased total procurement
     Best Employer, 6th Year For the sixth consecutive year, Hydro One                    Charging Network™ (Ivy) to support a greener transportation sector.              spending with Indigenous businesses to $42 million, our highest annual
     has been recognized by Forbes on its list of Canada’s Best Employers                 Since launching, Ivy opened 23 fast charging sites across Ontario, and is        spend to date. In addition, the Canadian Council for Aboriginal Business
     for 2021, reflecting our commitment to create a diverse, inclusive and               on track to have more than 160 fast chargers across approximately 60             advanced Hydro One to a Silver level certification in its Progressive
     engaged workforce.                                                                   locations in Ontario by the end of 2021. The network is designed to make         Aboriginal Relations program, from our Bronze level in 2017.
                                                                                          charging on-the-go easy and convenient while supporting a better and
     Emergency Response Award The Edison Electric Institute (EEI) presented               brighter future for all through a greener transportation sector.                 Supporting Customers To address issues of affordability, we introduced
     Hydro One with an Emergency Response Award, for its restoration efforts                                                                                               measures to support our customers as they navigate the challenging
     following a severe wind storm. This is the 11th award we have received               Pollinator Habitat Program The Electricity Distributors Association              times brought on by the COVID-19 pandemic. Through our Pandemic
     from the EEI for demonstrating our industry-leading storm response and               awarded Hydro One with an Environmental Excellence Award for                     Relief Program, we provided financial assistance and increased payment
     restoration efforts.                                                                 supporting Ontario’s biodiversity through its Pollinator Habitat Program.        flexibility to residential and small business customers experiencing
                                                                                          Since the program started in 2015, more than 125 hectares of restored            hardship. We ensured customers experiencing hardship stayed connected
                                                                                          habitat have been created across the province.                                   by extending a ban on home and business disconnections and suspending
                                                                                                                                                                           late payment fees for all our customers.
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
2020 Sustainability Report               Chair & CEO Messages   Hydro One At-A-Glance   Our Approach   People   Planet   Community   Appendices   8

Hydro One is committed to being an industry
leader in sustainability. We understand that
our long-term performance depends on
incorporating sustainability into all aspects of
our business. We remain focused on what
matters – on standing up for people, the planet
and communities across Ontario.

Priorities and Commitments        9
A Better Brighter Future          10
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
2020 Sustainability Report                                  Chair & CEO Messages             Hydro One At-A-Glance      Our Approach             People            Planet      Community             Appendices                              9

Our Approach

Our Sustainability
Priorities and
Our vision for a better and brighter
future for all guides our sustainability
priorities. With the identification
of our key ESG issues through our
materiality assessment, we understand
what matters most to our business,
stakeholders, customers, Indigenous
communities and community partners.
                                                            People                                                     Planet                                                   Community

As a transmission and distribution company, we are          Diversity, Equity and Inclusion                            Climate Change Mitigation and Adaptation                 Indigenous and Community Partnerships
focused on executing the sustainability priorities
of our corporate strategy where we believe we can           PRIORITIES                                                 PRIORITIES                                               PRIORITIES
make the greatest impact: diversifying our talent               Set broader diversity and inclusion hiring goals           Achieve established targets for GHG reductions           Continue to support the Ontario economy through
across our workforce and creating an equitable and                                                                                                                                  partnerships
inclusive work environment; effectively managing the            Identify, eliminate and prevent systemic barriers in       Continue to include climate change considerations
impact of climate change on our business, supporting            the workplace                                              in decisions and plans to ensure grid resiliency         Build safe communities by supporting youth initiatives
Ontario in unlocking the electrification potential of our                                                                                                                           that promote safety training and safe play
economy, and reducing our environmental footprint;
and on strengthening our Indigenous and community           GOALS                                                      GOALS                                                    GOALS
partnerships in order to build the socio-economic               Hydro One signed the BlackNorth Initiative Pledge          Hydro One is committed to achieving net-zero             Hydro One is committed to increasing our Indigenous
capacity across the province.                                   and is committed to achieving 3.5% Black executives        GHG emissions by 2050. We have established a             procurement spend to 5% of the company’s purchases
                                                                and board directors, and 5% Black student hires            target to achieve a 30% GHG reduction by 2030.           of materials and services by 2026.
In 2020, we made significant commitments to advance
                                                                by 2025.
our performance in these priority areas. We plan to                                                                        We plan to convert 50% of our fleet of sedans and        As part of our community investment program,
annually review our priority areas and publicly report          As a signatory to the Catalyst Accord, Hydro One           SUVs to electric vehicles or hybrids by 2025 and         we are committed to ensuring that 20% of our
our progress on achieving these goals in our future             is committed to achieving at least 30% female              100% by 2030.                                            corporate donations and sponsorships support
sustainability reports.                                         executives and board members.                                                                                       Indigenous communities.
Building a better & brighter future - 2020 Sustainability Report
Hydro One Limited
2020 Sustainability Report                                    Chair & CEO Messages                        Hydro One At-A-Glance                  Our Approach              People             Planet           Community             Appendices                              10

Our Approach

A Better
Brighter Future
Energizing Life: Our Vision, Mission and                      Management Approach and Governance                                                Management-level Sustainability Oversight Hydro                 • Diversity, equity and inclusion council: The Senior Vice
Corporate Strategy                                            Strong governance strengthens our practices and
                                                                                                                                                One’s sustainability approach, program and strategy is            President Strategy and Growth and Vice President
                                                                                                                                                overseen at an executive level by the Chief Corporate             Tax co-chair this council whose role is to highlight and
Over the past year, our leadership team virtually connected   performance, and upholds our values and standards
                                                                                                                                                Affairs and Customer Care Officer, supported by the               support the diversity, equity and inclusion programs
with nearly 7,000 employees to share our vision, mission      in an ethically responsible manner. We have adopted a
                                                                                                                                                extended executive team with accountability in key areas          throughout Hydro One.
and strategy and to listen and learn from frontline           sustainability oversight and management structure to
                                                                                                                                                – such as diversity, equity and inclusion, climate change
employees about how they can best be supported in             ensure accountability at all levels of the company.                                                                                               Underscoring the importance of ESG, Hydro One
                                                                                                                                                mitigation and adaptation, and Indigenous Relations.
executing our strategy. These grassroots engagement                                                                                                                                                             directly links a variety of ESG measures to compensation
                                                              Board-level Sustainability Oversight Hydro One’s Board                            These executives are critical to enabling the successful
sessions helped to connect the entire Hydro One team                                                                                                                                                            outcomes through our short-term incentive plan. The
                                                              of Directors oversees the company’s approach to                                   implementation of our sustainability program.
with the vision, mission and corporate strategy.                                                                                                                                                                2020 Corporate Performance Scorecard included safety,
                                                              environmental, social and governance matters relating to
                                                                                                                                                Due to its cross-functional nature, ESG is managed by           system reliability and customer measures, with additional
                                                              the long-term health and sustainability of the company.
                                                                                                                                                various leadership level committees within the company.         ESG indicators included on individual scorecards. We
                                                              This oversight includes reviewing and approving the
   Our vision                                                                                                                                   These include our:                                              will continue to review the ESG indicators linked to
                                                              company’s key sustainability priorities and its annual
   is for a better and brighter future for all.                                                                                                                                                                 our compensation plans as we further develop our
                                                              sustainability report.                                                            • Sustainability committee: The Chief Corporate Affairs         program. For more information on how we integrate ESG
                                                                                                                                                  and Customer Care Officer chairs Hydro One’s                  measures into our compensation plans, please review our
   Our mission                                                The Board of Directors’ Indigenous Peoples, Safety
                                                                                                                                                  leadership level sustainability committee, which
                                                              & Operations Committee10 is mandated to oversee                                                                                                   Management Information Circular.
   is to energize life for people and                                                                                                             provides strategic advice and perspectives on current,
                                                              the company’s programs and approaches related to
   communities through a network built                                                                                                            emerging and key sustainability issues. This committee        Our ESG program is guided by our Code of Business
                                                              our sustainability objectives, including in the areas of
   for the possibilities of tomorrow.                                                                                                             provides directional oversight for all other ESG-related      Conduct and supporting policies, which uphold our vision,
                                                              Indigenous Relations, safety and the environment.
                                                                                                                                                  committees at the company.                                    mission and values. Our employees complete annual
   Our corporate strategy                                     The Governance & Regulatory Committee11 oversees Hydro                                                                                            refresher training on the Code of Business Conduct, which
                                                                                                                                                • Climate change committee: The Chief Safety Officer            includes information on our anti-fraud and anti-corruption
   supports Hydro One’s vision, driving us                    One’s regulatory, customer and public policy matters.
                                                                                                                                                  (CSO) chairs the leadership level environment
   to deliver an improved safety culture,                                                                                                                                                                       policies. For more information on these policies and
                                                              The Human Resources Committee oversees Hydro One’s                                  and climate change committee that focuses on                  programs, please visit our website.
   a more reliable grid for our customers,                                                                                                        effectively managing environmental risks including the
                                                              diversity, equity and inclusion programs and initiatives,
   high customer satisfaction, sustainable                                                                                                        implementation of our climate change program.                 Ombudsman The Office of the Hydro One Ombudsman
                                                              and our wellness programs, including our support for
   business practices and a lower                                                                                                                                                                               provides a confidential, impartial and independent
                                                              employees’ mental health.
   environmental footprint.                                                                                                                     • Strategic policy committee: The Chief Regulatory              review of customer complaints that could not otherwise
                                                                                                                                                  Officer and Vice President Stakeholder Relations              be resolved by the company. The Ombudsman reports
                                                                                                                                                  co-chair the leadership level strategic policy committee,     directly to the Board to ensure independence. For more
                                                                                                                                                  which is responsible for developing the company’s             information, please visit the Office of the Hydro One
                                                                                                                                                  strategic regulatory and policy positions and initiatives,    Ombudsman at
                                                              10 Previously the Health, Safety, Environment and Indigenous Peoples Committee.     including ESG considerations, for the company.
                                                              11 Previously the Governance Committee.
Hydro One Limited
2020 Sustainability Report                                  Chair & CEO Messages        Hydro One At-A-Glance              Our Approach               People             Planet            Community        Appendices                   11

A Better Brighter Future

Customer, Partner, Stakeholder and
                                                            KEY EXTERNAL STAKEHOLDERS          HOW WE ENGAGE WITH THEM
Indigenous Community Engagement
                                                            AND PARTNERS
More than ever, engaging with our customers, partners,
stakeholders and Indigenous communities during the
                                                            Customers                          •   Virtual engagement with Ontarians to inform the decisions in our upcoming investment plan
COVID-19 pandemic has been critical to addressing their
                                                                                               •   Proactive outreach to support customers struggling to pay bills
evolving needs and to protect society’s most vulnerable.
                                                                                               •   Regular satisfaction surveys and focus groups
Throughout 2020, we leveraged technology to                                                    •   Ongoing exchanges with account executives and customer service representatives
successfully and meaningfully engage with an even
greater number of stakeholders and community members.       Communities                        • Dedicated Community Relations team
Given that in-person engagement was not possible, we                                           • Virtual participation and presentations by Hydro One staff to communities to receive feedback on proposed infrastructure
pivoted to virtual engagement through direct video calls,                                        development plans
virtual public sessions, and virtual conferences.                                              • Community investment and sponsorship opportunities

The following table provides a snapshot of how we
                                                            Investors                          •   Press releases, quarterly reports, quarterly investor and financial media calls, annual report
engaged with our stakeholders, partners and rights
holders throughout 2020.                                                                       •   Virtual annual general meeting of shareholders
                                                                                               •   Virtual investor events
                                                                                               •   Directors, including Board Chair, as appropriate, engage virtually with shareholders

                                                            Regulators and Government          • Advocacy on behalf of our customers for relief during the pandemic
                                                                                               • Virtual interaction with all levels of government and our main regulator, the Ontario Energy Board
                                                                                               • Advocacy on policy affecting our business including developing a regulatory framework that facilitates investment and operation of
                                                                                                 distributed energy resources; modernizing the environmental assessment process; identifying areas of growth across the province; and
                                                                                                 expanding broadband internet

                                                            Unions                             • Joint committees for key initiatives
                                                                                               • Collective bargaining
                                                                                               • Regular calls with the three largest unions to address the impact of the COVID-19 pandemic on the workforce and on other key issues

                                                            Non-Governmental Organizations     • Virtual participation in industry association conferences and events, councils, committees and working groups
                                                            and Industry Associations          • Partnerships with industry associations and shared advocacy activities
                                                                                               • Joint presentations to the regulator, the Ontario Energy Board

                                                            KEY RIGHTS HOLDERS                 HOW WE ENGAGE WITH THEM

                                                            Indigenous Communities             •   Dedicated Indigenous Relations team
                                                                                               •   Virtual engagement with Indigenous communities to inform the decisions in our upcoming investment plan
                                                                                               •   Virtual community-specific engagement plans with capacity funding agreements for proposed major infrastructure development projects
                                                                                               •   Proactive outreach to provide Indigenous-owned businesses the opportunity to provide goods and services to Hydro One
                                                                                               •   Offering opportunities for employment and training for Indigenous community members
                                                                                               •   Community investment and sponsorship opportunities
Hydro One Limited
2020 Sustainability Report                                 Chair & CEO Messages   Hydro One At-A-Glance   Our Approach   People   Planet   Community                       Appendices                                12

A Better Brighter Future

Public Policy at Hydro One

Hydro One’s approach to public policy is founded on
the priorities of our corporate strategy and focuses on
advocating for our customers and all Ontarians. In 2020,
we targeted our efforts toward supporting our customers
through the pandemic and successfully advocating
for customer relief measures and greater choice in
pricing plans.
We also considered Hydro One’s role in the post-pandemic                                                                                   households engaged in virtual
                                                                                                                                                town hall meetings
economic recovery. We are proud of the role we play
in enabling economic growth through investments,
supporting local jobs and helping rapidly growing
domestic industries.

Looking forward, Hydro One plans to continue to
consider the policy landscape and changes required
to enable energy innovation – including the integration
of distributed energy resources, the wider adoption of
EVs and how energy infrastructure can be leveraged to                                                                                           1.4M                                13,500
enable broadband.                                                                                                                          customers reached through           kits of emergency food and supplies
                                                                                                                                             Your Power, Your Choice            sent to First Nations communities
                                                                                                                                                    campaign                            through GlobalMedic

                                                                                                                                                  210                           300,000
                                                                                                                                            virtual investor meetings               meals donated through
                                                                                                                                                                                        Feed Ontario
Hydro One Limited
2020 Sustainability Report               Chair & CEO Messages   Hydro One At-A-Glance   Our Approach   People   Planet   Community   Appendices   13

Hydro One puts people first. We stand up for
customers, communities and each other. Every
day, our employees help us achieve our goal
of building a better and brighter future for
all. Our commitment is to provide a safe work
environment, a diverse, equitable and inclusive
workplace and rewarding opportunities for our
employees to reach their full career potential.

Health and Safety                14
Employees and the Workplace      17
Hydro One Limited
2020 Sustainability Report                                                       Chair & CEO Messages             Hydro One At-A-Glance         Our Approach   People   Planet   Community   Appendices   14


Health and Safety                                                                    ESG Corner
                                                                                     Key ESG policies, programs and management
                                                                                     systems guiding our actions include:

                                                                                           Health and safety policy
                                                                                           Public safety policy
                                                                                           Health, safety and environmental
                                                                                           management system (HSEMS)

Approach                                                                         Performance
As part of Hydro One’s commitment to be the safest and                           Safety is at the core of everything we do. However, our
most efficient utility, we realigned our health and safety                       leading recordable injury rate was muted by the tragic
leadership team in 2020 under the leadership of the CSO.                         loss of an employee during the year to a third-party motor
                                                                                 vehicle accident. We remain focused on eliminating
Our health and safety approach is guided by our Health,                          life-altering serious injuries and fatalities through risk
Safety and Environmental Management System (HSEMS),12                            reduction strategies, implementing our overarching safety
which is aligned with the Occupational Health and Safety                         principles, and conducting investigations with enhanced
Assessment Specification (OHSAS) 18001 standard. Our                             corrective actions.
system applies to all Hydro One activities, products and
services, as well as to our contractors. We plan to update                       Near miss and safety catch reporting is a reflection of
our HSEMS to align with the ISO 45001 standard, which will                       a strong safety culture and our employees’ willingness
eventually replace OHSAS 18001.                                                  to report events when they occur, since they can be a
                                                                                 precursor to more serious incidents. A near miss is an
                                                                                 unplanned event that had the potential to result in an
                                                                                 injury, illness or damage. A safety catch is an unsafe
                                                                                 condition or situation that could have resulted in an
                                                                                 incident but did not due to a timely intervention.

                                                                                 In our drive for continuous improvement, we have an
                                                                                 ambitious target in 2021 of increasing this number by 15%
                                                                                 because we believe a high number allows us to understand
                                                                                 trends, introduce best practices and improve performance.
                                                                                 We continue to review the near misses and safety catches

12   Hydro One’s HSEMS is aligned with the International Organization for
                                                                                 to incorporate trends into our training packages.              Near miss and safety catch
     Standardization 14001 Environmental Management Systems and the
     Occupational Health and Safety Assessment Series 18001 internationally
     recognized standards. Our HSEMS is supported by various operational
                                                                                 How an organization responds to events can greatly influence
                                                                                 whether workers feel comfortable reporting incidents,
                                                                                                                                                reporting is a reflection of a
     policies and related guidance documents as well as operational procedures
     and controls.                                                               which ultimately prevents serious injuries and fatalities.     strong safety culture.
Hydro One Limited
2020 Sustainability Report                                        Chair & CEO Messages              Hydro One At-A-Glance    Our Approach              People             Planet          Community            Appendices                           15

Health and Safety

Key Programs and Future Initiatives                               From this work, the Safety Improvement Team put forth     The safety improvement plan is supported by our
                                                                  recommendations to help Hydro One improve its safety      Human Success program that is designed to create a
To support our unwavering commitment to safety, we
                                                                  culture, which forms the foundation of our multi-year     safer work environment. The Human Success program
established an employee-led Safety Improvement Team.
                                                                  safety journey. These recommendations include:            combines five tools that help workers anticipate and
This team was comprised of 18 fully dedicated employees
                                                                  •   transforming our culture by creating a unified        catch errors, and learn from past events. This creates a
who all share a common goal – eliminating life-altering serious
                                                                      safety vision                                         working culture that empowers people to speak up and
injuries and fatalities at Hydro One. The cross-functional
                                                                                                                            reinforces behavioural habits to minimize the likelihood
team brought their different perspectives to the task             •   enhancing training for our apprentices                of errors that may result in workplace injury, customer
of looking at how to improve immediate frontline safety
                                                                  •   simplifying our safe work principles                  interruptions or damage to assets. We will continue to roll
issues and boosting the company’s overall safety culture.
                                                                  •   creating a learning culture                           out this training across the business.
The team connected with more than 4,200 workers across
                                                                  •   conducting investigations with enhanced corrective    Our safety program also extends to support our
the company and completed an analysis of Hydro One’s
                                                                      actions                                               employees’ mental health and we offer a variety of
historical safety performance. They took an in-depth look
                                                                  •   developing robust safety analytics capabilities       resources to support them. We provide virtual classes
into the causes of recent life-altering serious injuries and
                                                                                                                            and trainings to our employees to address and promote
                                                                                                                                                                                               Keeping Employees Safe from
fatalities, and a grassroots approach to understanding            •   simplifying the health and safety guidelines and      mental health and resiliency in the workplace. An example          the Spread of COVID-19
the current safety culture at Hydro One. The Safety                   procedures to make them understandable for our        of this is The Working Mind, an evidence-based program
Improvement Team also made connections with                           frontline employees                                                                                                      Throughout the COVID-19 pandemic, our
                                                                                                                            developed by the Mental Health Commission of Canada
several external organizations, sharing lessons learned,                                                                                                                                       decisions and actions have been guided by
                                                                                                                            to promote mental health and reduce the stigma around
organizational experiences and best practices.                                                                                                                                                 two principles – protecting our employees
                                                                                                                            mental illness in the workplace. In 2020, we saw an
                                                                                                                                                                                               and maintaining the safe and reliable supply
                                                                                                                            increase in employee uptake of these resources, with
                                                                                                                                                                                               of electricity to our valued customers and
                                                                                                                            most virtual classes filling up quickly.
                                                                                                                                                                                               communities. Our Emergency Response
                                                                                                                            To remove the barriers to accessing mental health                  and Business Continuity team coordinated
                                                                                                                            support, we also expanded our benefit coverage for our             our response to the COVID-19 pandemic.
                                                                                                                            employees. We continue to offer our employees support,             To substantially limit workplace outbreaks,
                                                                                                                            counselling and resources because we understand that               we developed a COVID-19 safety plan that
                                                                                                                            good mental health will help us take care of ourselves             introduced modified work procedures,
                                                                                                                            while also becoming better advocates, team members,                enhanced protective equipment protocols,
                                                                                                                            family members and friends.                                        active monitoring and reporting policies and
                                                                                                                                                                                               workplace flexibility initiatives. We also added
                                                                                                                                                                                               virtual care services (for an interim period) to
                                                                                                                                                                                               ensure that employees and their families could
                                                                                                                                                                                               access health care services from their homes.
                                                                                                                                                                                               With our workforce experiencing few COVID-19
                                                                                                                                                                                               infections and workplace transmissions, this
                                                                                                                                                                                               illustrated that our COVID-19 protocols were
                                                                                                                                                                                               effective. We are confident that our COVID-19
                                                                                                                                                                                               safety protocols will continue to allow us to work
                                                                                                                                                                                               safely and control the spread of COVID-19.
Hydro One Limited
2020 Sustainability Report                                                                     Chair & CEO Messages                    Hydro One At-A-Glance           Our Approach             People             Planet     Community   Appendices       16

Health and Safety

We plan to take the following actions in 2021 to help us
build a stronger safety culture at Hydro One:                                                                                                                                                                                  Our safety program
• Roll-out the plan to deliver on the recommendations                                                                                                                                                                          extends to support our
  made by the Safety Improvement Team. This multi-
  year plan will help us to ensure everyone comes home
                                                                                                                                                                                                                               employees’ mental health.
  safe at the end of the day.
• Provide Human Success training to all team members.
• Focus on reducing the stigma associated with mental
  illness in our workplace by ensuring people leaders have
  focused training that encourages them to demonstrate
  psychologically safe and healthy behaviours.

                                                                                                                                                                         Safeguarding Employee Wellbeing

Lost time injury frequency rate                                Total recordable injury rate                               Serious injury and fatality rate               We have taken many actions to safeguard our
(days lost per 200,000 hours worked)13                         (number of recordable injuries per                         (number of serious injuries and fatalities     employees’ mental, physical and financial health,
                                                               200,000 hours worked)14                                    per 200,000 hours worked)
                                                                                                                                                                         but there is no doubt the past year of stress,

14.5                                                           0.87                                                       0.2
                                                                                                                                                                         strain and uncertainty has had an impact on
                                                                                                                                                                         their personal lives. In addition to our support
                                                                                                                                                                         programs provided to all employees, we also
       28.3                                                             1.1                                                                  0.2         0.2             have specific resources to support our diverse
                                                                                                     0.87                                                                employee groups:
                                      14.5                                                                                      0.1                                      • Diversity and inclusion webinars, which cover
                                                                                                                                                                           topics such as anti-racism, allyship and raising
                                                                                                                                                                           children to embrace diversity

                                                                                                                                                                         • Our employee resource groups (ERG), which
       2018           2019           2020                             2018           2019           2020                       2018         2019        2020
                                                                                                                                                                           are voluntary, employee-led groups dedicated
Our lost time injury frequency rate is                         Our recordable injury rate increased                       Our goal is to have a workplace free             to fostering a diverse and inclusive work
declining as employees are needing less                        slightly in 2020 but remained below 1.0,                   of life-altering serious injuries and            environment at Hydro One
time off to recover from their injuries.                       which is considered world class among                      fatalities. To help us on this journey
                                                               peer utilities. Hydro One has made                         we use the Edison Electric Institute           • Our employee family assistance program
                                                               tremendous progress in reducing the                        guidelines for serious injuries and also
                                                                                                                                                                           (EFAP), which provides confidential support for
                                                               rate of recordable injuries, which has                     conduct investigations after any serious
                                                               declined by approximately 90% over the                     or potentially serious event, which              employees and their loved ones’ wellbeing. The
                                                               past 10 years.                                             allows us to learn from the incident and         EFAP program includes support for dealing
                                                                                                                          improve our safety culture. Tragically in        with racism and gender discrimination
                                                                                                                          2020 we had a fatality that resulted from
                                                                                                                          a third-party motor vehicle accident.

13 We are using a new online portal to calculate the lost time injury frequency rate and 2018 is now our baseline year.
   We have updated the 2018 and 2019 data accordingly.
14 As our performance started improving, in 2019 we began reporting this metric to two decimal points.
Hydro One Limited
2020 Sustainability Report                                  Chair & CEO Messages                         Hydro One At-A-Glance    Our Approach               People             Planet         Community   Appendices                                     17


                             Employees and
                             the Workplace
                                                                                                                                                                                                           Average number of employees16

                                                                  ESG Corner
                                                                  Key ESG policies, programs and management
                                                                  systems guiding our actions include:                                                                                                     8,700
                                                                          Code of Business Conduct                                                                                                                            8,800
                                                                                                                                                                                                                8,600                       8,700
                                                                          Diversity and inclusion policy
                                                                          Workplace violence, human rights and
                                                                          anti-harassment procedure

                                                                                                                                                                                                                 2018          2019          2020
Approach                                                    2020 Performance                                                                                                                               On average, Hydro One had 8,700 skilled
This past year has underscored that our people and          Despite the shift in our operations brought on by the                                                                                          and dedicated employees (approximate)
culture are critical to the success of our business. We     pandemic, we continued to align our organizational and                                                                                         in 2020.

believe in investing in our people and preparing our        leadership structures and accountabilities to support
workforce for our ever-evolving customer and business       our corporate strategy. In 2020, we advanced our talent
needs. We take a proactive approach to identifying and      management, recruitment, development and succession
                                                                                                                                                                                                           Employees eligible to retire within
recruiting talent and to building the skills and capacity   plans – all of which are critical to ensuring the execution of
                                                                                                                                                                                                           five years/10 years
of our team. Enabling effective people leadership and       our long-term corporate strategy.
developing employee capabilities is a key priority for

                                                            Our talent acquisition team filled 11 roles at the leadership
Hydro One.
                                                            level15 – including the Chief Operating Officer and Chief            The majority of the
                                                            Human Resources Officer, and promoted internally for the
                                                            role of Chief Safety Officer, Vice President Distribution            leadership-level roles                                                             34%             35%             34%
                                                            and Vice President Customer Service. The majority
                                                            of these leadership level roles were filled by internal
                                                                                                                                 were filled by internal                                                     23%             23%
                                                                                                                                 candidates, of which 50%
                                                            candidates, of which 50% were female or diverse People
                                                            of Colour.

                                                            Our succession planning seeks to ensure we have highly
                                                                                                                                 were female or diverse
                                                            skilled and talented employees available and ready to step           People of Colour.                                                              2018            2019             2020
                                                            into senior leadership and other critical roles. Our 2020
                                                                                                                                                                                                              Five Years
                                                            talent review process yielded emergency replacements
                                                            for all of our leadership roles and 79% of what we deem              We successfully renewed two collective agreements                            10 Years

                                                            to be critical positions – those positions that perform a            with the Power Workers’ Union (PWU) that are mutually                     The percentage of employees eligible to
                                                            function without which it would be difficult to achieve our          beneficial. The agreements include extended physical                      retire over the next five years is trending
                                                                                                                                 and mental health benefits, with a renewed emphasis on                    down, further relieving pressure on our
                                                            strategic objectives.
                                                                                                                                                                                                           workforce planning.
                                                                                                                                 diverse and inclusive practices, and provide Hydro One
                                                                                                                                 with the flexibility we require to successfully execute our
                                                                                                                                                                                                           16 This number includes regular and
                                                            15 Considered to be Vice President level and above.                  corporate strategy.                                                          non-regular employees.
Hydro One Limited
2020 Sustainability Report                                      Chair & CEO Messages                 Hydro One At-A-Glance             Our Approach                      People                Planet   Community   Appendices   18


     The Power to Give

    Employee giving campaign                                                                                          2020 Power to Give Results

    Even during a challenging year our employees    In 2020, this need for connection was greater
    recognized the urgent challenges presented by   than ever. Over the course of the year, we
    COVID-19 and found creative ways to give back   saw more than 80 employee Ambassadors
    where we live, work and play.                   from across the province help raise more than
                                                    $800,000 in funds, host virtual and in-person
    Power to Give is Hydro One’s annual employee-   events and donate to local food banks. Our
    run fundraising campaign. It provides an        employees have shown us that each and every                        Over                                                             Over

                                                                                                               $210K                               80                             6,000
    opportunity for employees to connect to their   one of us has the Power to Give.
    communities, causes and colleagues.
                                                    Heather Dearing, a Team Lead in Stations
                                                                                                                  donated during            local Ambassadors who                 food items donated
                                                    Construction Services, coordinated a                        Power to Give months       help raise funds for causes               by employees
                                                    province-wide food drive in areas where                                                   across the province
    Employee and pensioners donations               construction crews were working. The teams
                                                    donated and personally dropped off over
                                                    6,000 food items and monetary donations

    $0.8M                                           to local food banks. Amid an urgent call for
                                                    food donations, our employees are helping
                                                    to address challenges facing many families
         $1.3                                       during this unprecedented time.

                                                    Monica Deneire, a Customer Care and
                                                    Indigenous Relations coordinator, worked
                                                                                                                3,870                      $800K
                                                    with the Customer Care team to host multiple                 hours volunteered           total amount raised by
                                                                                                                   by employees                employees in 2020
                                                    virtual events including a virtual 50/50 draw
                                                    to raise over $5,000 to support the Downie
                                                    Wenjack Fund (DWF). The DWF aims to build
         2018        2019        2020               cultural understanding and create a path
    In 2020, our employee and pensioner             toward reconciliation through awareness,
    donations decreased, mainly related to          education, and connections between
    COVID-19 restrictions which meant that          Indigenous and non-Indigenous Peoples.
    traditional fundraising activities could
    not take place.                                 It is initiatives like these that build, strengthen
                                                    and energize life in communities across Ontario.
Hydro One Limited
2020 Sustainability Report                                    Chair & CEO Messages             Hydro One At-A-Glance         Our Approach              People            Planet        Community             Appendices                           19


   Great Partnerships

   Our ability to problem-solve and be nimble throughout
   the pandemic would not have been possible without
   the partnership of our unions. We held daily discussions
   with our three largest unions on protecting the health
   and safety of our employees and to quickly respond
   to any emerging workplace issues. Union leadership
   were also invited to speak alongside the Executive
   Leadership Team during all-company calls designed to
   keep teams connected and informed as we adjusted
   our operations in response to the global pandemic.

   Supporting Our Casual Workforce

   Hydro One’s casual workforce is made up of employees
   who are hired to perform specific jobs during the year.
   The collective agreements covering casual employees
   do not include paid sick leave, which is typical in our    Key Programs and Future Initiatives                           We plan to take the following actions in 2021 to
                                                                                                                            build a strong team:                                        Investing Responsibly
   industry. As the pandemic evolved, we wanted to make       We encourage all Hydro One employees to learn and take
   sure we supported our casual workforce so they did         the initiative to develop their capabilities. We provide      • Continue to develop our people by providing
   not have to choose between their health, their family      professional development and training programs for both         development and critical growth opportunities to          Hydro One’s Pension Plan considers ESG factors in
   and a paycheque. When faced with an unprecedented          individuals and people leaders. Our annual performance          strengthen our internal talent pool.                      its investment monitoring framework and is aligned
   province-wide shutdown in March, we felt it was only       management program holds every manager accountable                                                                        with industry best practices. The Plan’s investment
                                                                                                                            • Renegotiate a mutually beneficial collective agreement    managers have, in varying ways, integrated ESG
   right to provide casual workers with two weeks’ paid       for building effective teams and managing people.
                                                                                                                              with the Society of United Professionals, which           considerations into their investment process.
   leave of absence. Later in the year, Hydro One also        Through our tuition assistance program, Hydro One
                                                                                                                              represents approximately 1,800 Hydro One employees.
   chose to provide casual employees with additional paid     provides financial support for eligible programs that meet
                                                                                                                                                                                        Over the past year, the Plan successfully developed a
   COVID-19-related sick leave and paid time off to be        employees’ career goals as well as the business needs of      • Work with employees to provide safe opportunities to      Responsible Investing Framework which outlines the
   vaccinated, to help keep our employees, their families     the organization.                                               support important causes, achieving a 25% employee        plan’s commitments and approaches to embed ESG
   and our communities safe. We believe that Hydro One                                                                        participation in Hydro One’s Power to Give campaign.
                                                              Hydro One also provides safety, technical and                                                                             considerations across its investments. The Framework
   is the only one of our peers to provide this level of
                                                              environmental learning opportunities for employees.                                                                       sets out how it intends to enhance the way ESG
   support to our casual workforce.
                                                              Our trades and non-trades staff benefit from safety and                                                                   factors are integrated into the investment decision-
                                                              regulatory compliance training to help Hydro One meet                                                                     making process. The responsible investing initiative is
                                                              our regulatory obligations. As a training delivery agent of                                                               a journey, and the Plan will continue to evolve its ESG
                                                              the Ministry of Labour Training and Skills Development, we                                                                practices along with industry best practices.
                                                              also provide technical learning opportunities to external
                                                              utilities, government agencies and private companies.
Hydro One Limited
2020 Sustainability Report                                      Chair & CEO Messages              Hydro One At-A-Glance         Our Approach             People              Planet     Community                  Appendices                  20


Diversity, Equity                                                   ESG Corner                                                   Board Diversity17                                            The Catalyst Accord

& Inclusion                                                         Key ESG policies, programs and management
                                                                    systems guiding our actions include:
                                                                                                                                                                                              The Catalyst Accord is a global non-profit
                                                                                                                                                                                              organization dedicated to gender parity in
                                                                           Diversity and inclusion policy                                                                                     the workplace. As a signatory to the Catalyst
                                                                                                                                                                                              Accord, Hydro One remains committed to
                                                                           Diversity, equity and inclusion council
                                                                                                                                             50%                                              maintaining 30% female board members and
                                                                                                                                                                                              30% female executives. While we surpassed
                                                                                                                                             Directors                                        our Catalyst Accord commitments to achieve
                                                                                                                                                                                              gender parity at the Board level, we did not
                                                                                                                                                                                              reach our goal of representation of women in
                                                                                                                                                                                              executive positions. With our strong pipeline
                                                                                                                                                                                              of female talent at the Director level, we are
                                                                                                                                                                                              still firmly committed to reaching this level
                                                                                                                                   Female (50%)                                               of representation.
                                                                                                                                   Indigenous (10%)
                                                                                                                                   Disability (10%)                                           Our Commitment: Achieve 30% female board
                                                                                                                                                                                              directors and executives.

Approach                                                        2020 Performance                                                 Hydro One’s Progressive, Gender-
We seek to create a workforce that reflects the diverse         We advanced many of our diversity, equity and inclusion          balanced Independent Board of Directors
populations of the communities where we live and work.          (DEI) initiatives; however, much work remains. We began          We value diversity at all levels of Hydro One and
We benefit from a collaborative and inclusive culture           important conversations in 2020 to help broaden our              our commitment extends to ensuring a gender-
sustained and complemented by the strength of different         understanding of diversity beyond gender and toward a            balanced Board of Directors. With the appointment
backgrounds, perspectives, ideas and insights. We value         more inclusive and equitable society. We are committed           of Stacey Mowbray, the current composition of our
diversity, equity and inclusion and stand for racial equality   to ensuring our workforce better reflects communities            Independent Non-Executive Board is five women
at all levels of our organization. Hydro One is currently       across Ontario. We will continue to engage our employees         (50%) and five men (50%). We believe this balance
developing our new People strategy, which will reinforce        as we transform our culture and align our new People             makes us one of the most gender-progressive
our commitment to diversity and to creating an equitable        strategy with our greater purpose of energizing life             boards in North America, reflecting best practice in
and inclusive work environment where employees have a           in Ontario.                                                      board diversity and surpassing our Catalyst Accord
sense of belonging.                                                                                                              commitment to maintaining at least 30% female
                                                                At the executive level, representation of women and              board members.
                                                                Indigenous people both decreased, while at the employee
                                                                level, representation of both women and visible minorities       Based on self-identification, there is one board
                                                                remained steady during the year. We continue to partner          member that identified as an Indigenous person
                                                                with our unions to provide more inclusive and diverse            and one board member that identified as having
                                                                workplace opportunities across our regular workforce and         a disability. To view the Board’s diversity policy,
                                                                to develop diversity hiring goals, particularly for our field    please visit our website.
                                                                staff and apprentices.
                                                                                                                                                                                          Photo taken before the COVID-19 pandemic.
17   Hydro One’s Independent Non-Executive Board Members
Hydro One Limited
2020 Sustainability Report                                                                   Chair & CEO Messages                           Hydro One At-A-Glance    Our Approach           People            Planet         Community                      Appendices   21

Diversity, Equity & Inclusion

Executive diversity (% of executive management)19
   2018        2019          2020                                                                                                                                      Diversity, Equity and Inclusion
                                       66.5     68.1
                                                                                                                                                                       We launched our DEI symposium in October
                                                                                                                                                                       as Hydro One’s flagship DEI event. Our three
                                                                                                                                                                       largest unions – the PWU, Society of United
    33.5     31.9                                                                                                                                                      Professionals (Society) and the Canadian Union
                      25.8                                                                                            24.6     24.5                                    of Skilled Workers (CUSW) co-sponsored
                                                                                                              15.2                                                     the symposium.
                                                                           2.9      3.4      1.6
                                                                                                                                                                       Senior executives and our three largest union
           Women                                Men                           Indigenous                      Visible minorities                                       leaders participated as speakers and panellists
                                                                                                                                                                       in this virtual event, with participation at its
Representation of visible minorities in executive positions remained steady, while representation                                                                      highest level ever at 600+ employees. The
of women decreased by approximately 6%.                                                                                                                                theme, “Inclusive Leadership,” recognized the
                                                                                                                                                                       strategic importance of inclusion throughout
                                                                                                                                                                       our organization for team problem solving,
                                                                                                                                                                       employee engagement and retention in delivering
Employee diversity (% of regular employees)
                                                                                                                                                                       Hydro One’s vision, mission and values.
   2018        2019          2020
                                                                                                                                                                                                                          Photo taken before the COVID-19 pandemic.

                                       75.6     75.9     76.0

    24.3     24.1     24.0
                                                                                                              12.6    12.8     12.9
                                                                           2.5      2.3      2.2                                                 1.6    1.5    1.3

           Women                                Men                           Indigenous                      Visible minorities                  Individuals with
                                                                                                                                                    a disability
Representation of both women and visible minorities remained steady during the year.

18 Diversity data is based on employees voluntarily self-identifying. All percentages were calculated based on yearly averages for regular employees.
   Data for 2018 has been updated for comparison to 2019 and 2020.
19 Executive is defined as Vice President and above roles.
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