Building a better & brighter future - 2020 Sustainability Report
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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
Planet.....................................................................................................24
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
Hydro One Limited
2020 Sustainability Report Chair & CEO Messages Hydro One At-A-Glance Our Approach People Planet Community Appendices 3
Message from Our
Chair
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
Chair
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.
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
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 www.hydroone.com, www.sedar.com or www.sec.gov.
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
Transformer
(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
Transmission
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
Distribution
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.
Transformer
(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).
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.
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. Our Approach Priorities and Commitments 9 A Better Brighter Future 10
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
Commitments
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.
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 www.HydroOneOmbudsman.com
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 opportunitiesHydro 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.
7,000+
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 OntarioHydro 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. People 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
People
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
25.6
0.87 employee groups:
0.78
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
People
Employees and
the Workplace
Talent
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
21%/34%
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%
21%
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
Talent
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.
$0.9
$0.8
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
Talent
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
People
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
Female
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 MembersHydro One Limited
2020 Sustainability Report Chair & CEO Messages Hydro One At-A-Glance Our Approach People Planet Community Appendices 21
Diversity, Equity & Inclusion
Diversity18
Executive diversity (% of executive management)19
2018 2019 2020 Diversity, Equity and Inclusion
Symposium
74.2
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.You can also read
