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Plains Sustainability Report 2020 NASDAQ PAA & PAGP
Table of Contents
Message from our Chairman and CEO 1 Stakeholder Engagement 41
About Plains 2 Community Engagement 42
Pipelines Are Critical to Our Quality of Life 3 Community Investment 43
Our Sustainability Program 4 Spotlight: Improving Quality of Life in the Permian Basin 44
About the Report 7 Our Commitment to Indigenous Communities 45
Supply Chain Management 46
Spotlight: Building Regional Capacity for Trades Training 47
Our Approach to Health, Safety and Environment 8 Government Relations 48
Health, Safety and Environmental Policy 9
Operations Management System 9 Corporate Governance 49
Risk Management 10
Governance Framework and Structure 50
Spotlight: New Sustainability Board Committee 52
Environmental Stewardship 11 Code of Business Conduct 54
Environmental Management 12
Climate Change 12
Disclosure Chart 55
Greenhouse Gas (GHG) Emissions 13
SASB Index 61
Spotlight: Energy Management and Optimization 14
GRI Index 62
Improves Environmental Performance
Glossary of Terms 67
Biodiversity and Conservation 15
Forward Looking Statements 68
Spotlight: Stewarding Ecosystems for the Future 17
Water and Waste Management 18
Spotlight: Reducing Single-use Plastics and Paper Use 19
Operating Excellence 20
Health and Safety at Plains 21
Emergency Preparedness 25
Spotlight: Taking a Proactive Approach to Emergency Response 26
Our Approach to Pipeline Safety 27
Spotlight: Investing in Technology to Advance Pipeline Safety 29
Security and Cybersecurity 31
Spotlight: Hurricane Response During a Pandemic 32
Our Commitment to Employees 33
Our Workforce 34
Spotlight: Cultivating Connections Among Employees 35
Spotlight: Plains Responds to COVID-19 Pandemic 37
Communications 39
Human Rights 39
Spotlight: Plains Acknowledged for Safety, 40
Culture and Customer Satisfaction
Message from our
Chairman and CEO
Plains Stakeholders, We are making solid progress in a
number of sustainability focus areas. Willie Chiang
Advancing a sustainable business is
In 2020, we reported our best year for Chairman and CEO
central to all of our actions at Plains.
key safety and environmental metrics Plains
To us, sustainability means managing
and made additional enhancements to
our company well, from improving
our Community Investment program,
performance in traditional environmental,
governance practices and executive Employee Total Recordable Incident Rate (TRIR)
social and governance (ESG) areas, to
compensation frameworks, culminating (per 200,000 work hours)
making prudent long-term investment
with the addition of a new Board-level
decisions and pursuing continuous
Health, Safety, Environmental and
improvement. 0.8 ~5
Sustainability Committee. 0%
0.7 de
Our motto, "Do the Right Thing," has 0.74 cr
Integrating ESG best practices throughout ea
se
guided Plains for decades and reflects 0.6
our organization is the focus of our
our sustainability commitment. This 0.5
sustainability strategy, which is centered 0.52
commitment underpins efforts to advance 0.4
on transparency and building trust
our company values and empower our 0.3 0.38
among stakeholders; managing operating
employees to deliver critical energy 0.2
and business risks and minimizing
resources in a safe, reliable and responsible 0.1
environmental impacts; and leveraging our
way. Our sustainability commitment
people, assets and systems to maximize 0.0
is also key to our future, informing ‘18 ‘19 ‘20
value for our stakeholders. The tenets
interactions with our customers, suppliers,
of sustainability align with our values, Federally Reportable Releases
communities and colleagues, with
underpin our business strategy and offer (Number)
the ultimate goal of being the partner,
a framework to measure and report our 35
employer and investment of choice. 45%
progress. dec
rea
30
se
To better share information about our 31
Continuous improvement on our 25
sustainability commitment, in 2014 we
sustainability journey is a natural extension
began publishing an annual Report to 20 23
of our enduring drive to "Do the Right
Stakeholders and Communities specific 15
Thing." Our next steps include further 17
to our Canadian operations. In response
advancing our safety and environmental 10
to stakeholder feedback, in 2019 we
performance, assessing a GHG reduction 5
published sustainability data covering our
target, and evaluating opportunities for
full enterprise. Last year, we expanded this 0
Plains to contribute to the energy transition ‘18 ‘19 ‘20
data set over a multi-year period to address
in ways that are natural to our asset
a number of ESG areas, taking into account Total GHG Emissions - Scope 1 + Scope 2
footprint while meeting our disciplined
the Sustainability Accounting Standards (mt CO2e)
investment thresholds.
Board and Global Reporting Initiative ~20%
frameworks. Recognizing the challenges A sustainability report alone is insufficient decre
ase
2,500
inherent in comparing information to fully capture our commitment to this
across companies, in 2020 we worked effort; certain aspects of our sustainability
2,367,000
2,219,000
2,000
proactively with midstream peers on the approach – and how it encompasses our
1,929,000
Energy Infrastructure Council to develop business decisions – are best appreciated 1,500
standardized ESG disclosure metrics. We through discussion with stakeholders. We
1,000
have incorporated many of these metrics look forward to continuing this dialogue
into this year’s report, including estimates with you and always welcome your 500
of our Scope 1 and 2 greenhouse gas feedback on ways we may improve.
emissions (GHGs), which compare favorably 0
‘18 ‘19 ‘20
to our peers.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 1
About Plains
We own and operate one of the Our people, assets and systems underpin PAGP indirectly owns the non-economic
our approach to business. We are led by general partner interest in PAA as well
largest networks of critical energy
a seasoned team of officers who have an as an economic limited partner interest.
infrastructure in North America. Our average of 30 years’ experience spanning all In addition to our equity investors, fixed
assets connect key producing regions sectors of the energy industry, and an average income investors own PAA’s long-term
of hydrocarbons – crude oil and natural of 14 years with Plains or our predecessors bonds. Our investors range from individuals
and affiliates. to large institutional money managers,
gas liquids (NGLs) – to major demand many of whom are intently focused on
centers and export outlets throughout Although we have two publicly traded
sustainability metrics and improvement.
entities, Plains All American Pipeline, L.P.
North America. On average, we handle (Nasdaq: PAA) and Plains GP Holdings, L.P.
We greatly appreciate our investors and
stakeholders for their continued engagement,
more than five million barrels per day of (Nasdaq: PAGP), we have one set of operating
feedback, guidance and support as we work
crude oil and NGLs. assets and are governed by a unified and
to continuously improve our sustainability
majority-independent Board of Directors.
program and disclosures.
PAA and its subsidiaries, including Plains
Midstream Canada ULC (PMC), own
all of our operating assets and generate all
of our operating cash flow.
Our
Assets
AB
FORT
SASKATCHEWAN
EDMONTON
SK MB
KERROBERT
CALGARY ON
EMPRESS REGINA
MANITOU
MT ND
WI MI SARNIA
WY
WINDSOR
CASPER
FT LARAMIE
NE OH
IL
YORKTOWN
CA CO KS VA
PATOKA KY
CUSHING TN
AZ NM OK
WICHITA
MS AL
FALLS
EAST TEXAS
MIDLAND
ST
TX
JAMES
MOBILE FL
HOUSTON
CORPUS CHRISTI
Assets as of June 15, 2021
2 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP
Pipelines Are
As use of renewable energy sources grows,
hydrocarbon energy remains critical to
residential, industrial and manufacturing
Critical to Our needs, as well as heavy transportation
and air travel. By nearly any forecast,
Quality of Life
hydrocarbon energy will continue to play
a vital role in fighting energy poverty and
improving quality of life. While we must
increase our focus on energy conservation
and efficiency, we will continue to need all Our Values
Pipelines are not only efficient, sources of energy. We are proud of the role
we play in safely delivering critical energy Our core values serve as a compass
but they are the safest and most to communities across North America and for how we do business:
environmentally friendly way around the world.
to transport critical energy to
communities across North America Safety and
Environmental
and throughout the world.1 Each of us
Stewardship
benefit daily from abundant, affordable We conduct our operations
energy delivered via pipelines. and business in a manner
that is safe for employees,
Pipelines deliver the energy that ensures
contractors and the
our freedom of movement and enables the
environment.
heating and cooling so many of us rely upon.
Additionally, pipeline-delivered energy
is converted into thousands of products
we rely upon, ranging from electronics Accountability
to clothing, life-saving medical supplies, In conducting our business,
household products and hygiene supplies, we are accountable to each
sports equipment and more. Hydrocarbon other, our investors, our
energy is also critical in creating the basic customers and our other
building blocks required for modern stakeholders, including
society’s growth and prosperity: steel, the communities where
cement, plastics and fertilizers. we live and work.
Hydrocarbon energy plays a major role
in powering the world’s economy while Ethics and Integrity
advancing economic growth, health, In our dealings within and
welfare and social development for billions outside of the company,
of individuals around the globe. Despite we do the right thing, obey
the growing quality of life for many, the law and act with the
approximately 10% of the world’s population highest levels of honesty,
— 770 million people — live without access ethics and integrity.
to electricity.2 These individuals have limited
access to healthcare and education, and
experience higher infant mortality rates and Respect and
lower life expectancy. Society’s collective Fairness
challenge is to bring this large group out We treat each other and
of energy poverty, while simultaneously our stakeholders fairly and
improving environmental performance. with respect.
1. U.S. Department of State, 2014.
2. International Energy Agency 2019 data.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 3
Our Recently, our Board of Directors took an
additional step to formalize our sustainability
commitment by establishing a Health,
Sustainability Safety, Environmental and Sustainability
(HSES) committee. This committee provides
oversight and direction to advance our
Program culture of continuous improvement on HSES
matters. It also directly engages with our
Executive Sustainability Leadership Team,
and with representatives of our Sustainability
Our approach to sustainability Working Group. Health, Safety, Environmental
is rooted in our company values: This committee meets regularly with our and Sustainability Board
Sustainability Working Group to ensure Committee
Safety and Environmental Stewardship,
accountability and provide direction,
Accountability, Ethics and Integrity, resources and support. The Executive
and Respect and Fairness. Sustainability Leadership Team reports
Enabling and advancing quality of life is quarterly to the HSES committee and full
why we run our business, and our Board of Directors.
sustainability strategy guides how we Our Sustainability Working Group members CEO and Chairman
run it. Our sustainability strategy is centered meet frequently with stakeholders, including of the Board
on three objectives: equity and fixed income investors, as well
• Building long-term relationships of trust as ESG rating agencies, banks, credit rating
among stakeholders agencies, insurance underwriters, trade
organizations and peers to understand
• Managing operating and business risks current industry trends, preferences and
and minimizing environmental impacts evolving standards and initiatives. Executive Sustainability
• Leveraging our people, assets and Leadership Team
systems to maximize long-term value The working group is directly responsible
for advancing our sustainability initiatives. EVP and COO
Our sustainability program focuses on Each focus area is overseen by a member EVP and CFO
five areas: of our Sustainability Working Group or EVP and General Counsel
Executive Sustainability Leadership Team,
• Environmental stewardship President, PMC
who works with a team to set forth a vision,
• Operating excellence identify risks and opportunities and develop
• Commitment to employees a multi-year roadmap of enhancement
activities and key performance indicators to
• Stakeholder engagement
measure our progress.
• Corporate governance
To support the working group, in recent Sustainability Working Group
years we have increased staff time dedicated
to sustainability, including appointing a SVP, Operations
Manager of Sustainability and dedicating SVP and Treasurer
senior-level HSE resources to advance VP, HR
our effort and expand our participation in VP, HSE
industry ESG collaboration. While we are
VP, IR, Communications and
pleased with the progress we have made, we Government Relations
recognize that improving sustainability is a
VP, Land and Legal
journey, and we are committed to continuing
to advance the effort.
Dedicated Sustainability Staffing
4 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP
Our Sustainability The guiding principles of sustainability have been ingrained
in the way we do business at Plains for years. Notable activities
Journey and accomplishments related to our sustainability journey include
the following:
2010
2020
2021
Published an environmental policy
outlining our commitment to high 2019 Achieved nearly a Formed the Health,
standards of environmental compliance.
50% decrease in our total Safety, Environmental
recordable incident rate and Sustainability
Published our first over three years. (HSES) Board
Committee to assist
2014
2016
sustainability data
disclosure. Achieved a 45% with ESG oversight and
decrease in federally direction.
Completed a reportable releases
sustainability materiality over three years. Collaborated on
Published first annual Implemented a unified
Report to Stakeholders assessment. development of the
Board governance
and Communities focused Accelerated efforts to American Petroleum
structure.
on our Canadian-managed estimate and report Scope 1 Institute’s climate-
Updated our core values
operations. and 2 GHG emissions. related reporting
to include Environmental
Amended governing template.
Stewardship.
documents to provide
Initiated development and for shareholder Enhanced our governance
implementation of our framework to better Conducted significant
elections of Directors. Created “Cultivating
Operations Management align with best practices. investor/stakeholder
Connections” affinity
System. outreach.
group for employees.
Participating on the
Canadian Energy
Developed three-year Pipeline Association
2015
2018
roadmaps to advance Climate Change
sustainability focus areas. Policy Task Force and
Hydrogen Strategy Task
Helped develop the Energy Force.
Launched our employee Included safety and Infrastructure Council’s
donation-matching environmental performance Midstream ESG reporting Launching updated
program. in all executives' and template. philanthropy, employee
employees' bonus metrics. match and volunteerism
Published a comprehensive program in the U.S.
Formed the Sustainability sustainability overview
Working Group. presentation and three years Published our 2020
of sustainability data. Sustainability Report,
Established the which includes Scope 1
Executive Sustainability Increased internal dedicated and Scope 2 emissions.
2013
Leadership Team. sustainability resourcing.
Introduced an employee
volunteer program
Publicized our first in Canada.
iteration of our Life Rules
to help contractors and
employees work safely.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 5
Continuous • Advancing our operational excellence by
reducing federally reportable releases and
• Continuing to engage with sustainability
rating agencies and improve scores.
Improvement our total recordable incident rate.
• Reducing emissions and evaluating
• Evaluating alignment with Task Force on
Climate-Related Financial Disclosures
reduction targets. (TCFD) reporting.
• Pursuing energy efficiency and
At Plains, we embrace a culture of conservation opportunities and
continuous improvement, empowering evaluating reduction targets .
employees to identify opportunities • Evaluating additional energy transition-
aligned commercial strategies.
to enhance our performance through
• Advancing inclusion and diversity efforts.
targeted actions and associated
• Developing a supplier and contractor
milestones.
code of conduct.
We are focused on a number of actions and • Continuing to refine Political Action
initiatives in pursuit of ongoing advancement Committee strategies and practices.
on our sustainability journey. A few of these
• Advancing strategies to minimize waste
include:
generation.
• Executing roadmaps to advance progress • Continuing industry collaboration
in sustainability focus areas and long-term to establish and refine sustainability
sustainability strategy. reporting standards.
6 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP
About
associations, ESG and credit rating agencies, We have also worked closely with fellow
banks, insurance underwriters and others. member companies from the Energy
Infrastructure Council (EIC) to develop
the Report
In 2019, our Sustainability Working Group
a common midstream ESG reporting
conducted a materiality assessment to
framework. In this report, we have aligned
identify those sustainability issues that could
our disclosures with the EIC Midstream ESG
have the most significant impact on our
Reporting Template. We also continue to
business and be of the greatest interest to
map our disclosures in consideration of the
This report builds upon our prior our stakeholders. This assessment involved
Sustainability Accounting Standards Board
disclosures, adding qualitative and engaging with and receiving feedback
(SASB) standards for companies in the oil and
from financial stakeholders and ESG rating
quantitative information about our gas midstream industry, as well as the Global
agencies, among others. We also reviewed
Reporting Initiative (GRI) standards.
Sustainability program, processes various sustainability reporting frameworks,
and performance. peer sustainability reports, media coverage As we continue to integrate sustainable
and other materials. We used this information business practices, we intend to evaluate
The report also highlights several initiatives to set our vision and prioritize our future alignment with the Financial Stability
we are working to advance. We look forward sustainability initiatives. The topics identified Board’s Task Force on Climate-Related
to utilizing this report to continue our in the materiality assessment, as well as other Financial Disclosures and the United Nations
engagement with investors, community ESG issues determined to be meaningful, are Sustainable Development Goals.
members, peers, elected officials, industry addressed throughout this report.
Our ESG materiality assessment identified five focus areas. Within each focus area, we identified the topics
deemed to be the most potentially significant to our business from an ESG standpoint over the next
several years. Using this analysis, we planned sustainability-related continuous improvement efforts.
Environment Social Governance
Environmental Operating Commitment Stakeholder Corporate
Stewardship Excellence to Employees Engagement Governance
Emissions tracking and Personal health and Corporate governance
Corporate culture Community engagement
reduction safety best practices
Leadership development / Landowner and
Biodiversity and land use Asset integrity Committee structure
succession planning Indigenous engagement
Climate impact risk Legislation/regulation Board composition and
Damage prevention Employee engagement
management impacting operations diversity
Security management
Climate change Inclusion and diversity Contractor management Succession planning
and cybersecurity
Procurement/materials
Emergency preparedness Retention
management
Political contributions
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 7
Our Approach
to Health, Safety and
the Environment
Our commitment to Health, Safety
and Environmental Stewardship
Topics in this section
is rooted in our values. We strive
Health, Safety and Environmental Policy 9
to minimize our environmental Operations Management System 9
Risk Management 10
impact and to integrate programs
and systems that reduce risk and
prevent and mitigate incidents.
8 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPHealth,
programs and practices to minimize auditing related to our environmental and
risks, reduce releases and waste, safety systems and performance, setting
increase energy efficiency and conserve objectives, targets and deadlines in both
Safety and natural resources.
• Establish programs to analyze
areas, and driving corrective action to
generate continuous improvements.
Environmental
and mitigate health, safety and
environmental risks; investigate
significant environmental and safety
Policy incidents; internally communicate
lessons learned and prepare for and
respond to emergencies.
We are committed to adhering to
high environmental standards and
Operations
protecting the health and safety of our
employees and the communities where Management Our OMS
we operate.
Under our Health, Safety and Environmental
System Continuous
Improvement
Policy, Plains strives to:
• Comply with the laws, rules and
regulations that pertain to health,
Our Operations Management System
safety and the environment and are (OMS) is essential to achieving our Annual
applicable to our business. operational vision to be the midstream Planning
• Verify compliance through self- leader in safe, reliable, efficient and
monitoring programs and regular facility
responsible operations.
assessments, and, in a timely manner,
correct any conditions in our operations Management systems like our OMS are
Management
Review
OMS
Governance
Assessment
that could have a significant adverse a best practice that have led to meaningful
health, safety or environmental impact. safety and reliability improvements across
• Train and empower each employee multiple industries.
Gap
to recognize their responsibility and Our OMS framework incorporates both a Management
accountability to perform all activities safety and environmental management
in a manner that is safe for the employee, system that reflects the broad, integrated
their coworkers and the environment. effort that positions environmental and
• Establish and maintain corporate personal safety at the forefront of everything
controls, including periodic reviews, we do. The framework guides the way we
The focus areas of our
to ensure the policy is being properly identify and manage risk, and promotes
implemented and maintained. a learning environment and continuous OMS include:
• Participate when possible with improvement of pipeline safety and integrity. Leadership Competencies
government on a federal, state, In accordance with the American Petroleum Commitment and Training
provincial and local level in creating Institute (API) Recommended Practice 1173 Stakeholder Safety Assurance
reasonable and attainable regulations for Pipeline Safety Management Systems Engagement and Continuous
to safeguard the community, workplace and the Canadian Energy Regulator Onshore Improvement
and environment. Risk Management
Pipeline Regulations, our comprehensive OMS
Emergency
• Assess potential health, safety or supports a systematic, iterative approach to Operational
Preparedness
environmental liabilities prior to the sale, continuously improving our performance. Controls
and Response
lease, transfer or purchase of property. A key feature of our OMS is the Plan-Do- Incident
Check-Act (PDCA) cycle, which involves Information
• Establish appropriate design, Management
monitoring, recordkeeping and internal Management
construction, operating and maintenance
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 9Risk Executive oversight We put strong emphasis on creating a culture
focused on safety in both our office and field
Our Operations team and our Health, locations. We have executive-level oversight
Management Safety and Environment (HSE) team
have primary responsibility for our
of safety-related initiatives, and several
employee-led safety committees.
Plains uses a number of internal performance
HSE policies.
metrics to measure health, safety and
Plains is committed to complying with Each of these teams is led by officers environmental performance. These metrics
of the company who report directly to are reviewed regularly at the operational
the laws, rules and regulations that are
our Chief Operating Officer, who in turn and executive levels, and also with the HSES
applicable to our business. reports to our Chief Executive Officer. Key Committee and full Board of Directors.
Furthermore, we strive to align our actions HSE performance information is provided
We also incorporate key safety and
and activities with industry best practices. quarterly to our Board of Directors, including
environmental performance metrics into
our Health, Safety, Environmental and
Our OMS has been instrumental in providing the short-term incentive program that
Sustainability (HSES) Committee, which
a framework to systematically manage risk governs annual bonuses for all employees.
assists the Board with oversight of our
and support effective operations priorities These metrics include federally reportable
HSES strategies and performance.
and execution to strategy. We perform routine releases and total recordable incident rate
assessments of our compliance, as well as (TRIR). Acknowledging that any incident or
risk assessments of our health, safety and Accountability and injury is too many, 2020 was a record year
of environmental and safety performance,
environmental processes and procedures.
management marking nearly a 50% reduction in both
Our internal risk management team federally reportable releases and TRIR over
regularly reviews and assesses information
Plains employs more than 180
the past three years. Our 2021 target is to
gathered through our program, incident dedicated HSE professionals with reduce these metrics by an additional 20%.
investigation process and hazard assigned roles and responsibilities.
identification/near miss reporting program.
Using this information, they identify Using the PDCA principles, HSE team
and recommend adjustments to our risk members regularly review and/or audit
controls, spur continuous improvement existing policies, work practices and
and communicate lessons learned. improvement opportunities in our safety
and environmental performance, and initiate
corrective actions to drive continuous
improvement.
Plains employs more than
180 dedicated
HSE professionals
dedicated to achieving
zero incidents
and injuries.
10 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPEnvironmental
Stewardship
We strive to be responsible stewards
of the energy resources we rely
Topics in this section
upon to operate our business and to
Environmental Management 12
minimize the impact of our activities Climate Change 12
Greenhouse Gas Emissions 13
and operations on the environment Spotlight: Energy Management and Optimization 14
Improves Environmental Performance
and neighboring communities. Biodiversity and Conservation 15
Spotlight: Stewarding Ecosystems for the Future 17
We seek opportunities to reduce Water and Waste Management 18
emissions and improve energy Spotlight: Reducing Single-use Plastics and Paper Use 19
efficiency, while ensuring the safety
and reliability of our assets.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 11Environmental
• Providing employees with required In 2017, the Financial Stability Board’s
HSE training on regulatory compliance, Task Force on Climate-Related Financial
industry best practices, and company Disclosures (TCFD) published a series
Management •R
policies and procedures.
egularly measuring and monitoring our
of recommended climate-related
disclosures in an effort to promote
more informed investment, credit and
environmental performance through
internally and externally reported metrics. insurance underwriting decisions. The
recommendations are structured around
Protecting the environment is integral • Systematic assessment and continuous
four themes: governance, strategy, risk
improvement of our programs through
to our business. Plains is committed to: management and metrics and targets.
our OMS to comply with environmental
To increase transparency and respond to
• Empowering employees and contractors regulations and best practices,
growing interest in our climate-related
to identity and mitigate environmental prevent pollution and minimize our
practices and performance, we are assessing
risks through our Hazard Identification environmental footprint.
alignment of our future reporting with the
Program. • Ensuring integration with other Plains recommendations established by TCFD.
• Encouraging employees and contractors programs in support of our OMS.
to report any potential environmental
concerns without fear of retaliation.
• Active engagement in external
communication and collaboration on
Physical asset risks
environmental management issues with Plains is an operator of physical
our industry peers, government agencies infrastructure, and some of our assets
and the public.
have exposure to potential natural
Industry disasters or climate-related events.
Collaboration on
Environmental Issues
Climate Our assets in the U.S. Gulf Coast region are
vulnerable to hurricanes, tropical storms and
As a member of the American Petroleum
Institute (API), we participate in the
Change other sea-level risks.
As part of our ongoing physical asset risk
Environment, Health & Safety Group and the
analysis and emergency planning process,
ESG Reporting sub-committee of the Climate
Committee. we regularly assess the potential impact
The world needs responsibly produced these climate-related risks could have on our
Plains is an active member of the Energy
energy. Our goal is to help meet global assets, and identify and implement mitigative
Infrastructure Council (EIC), participating
energy demand in a responsible and measures that reinforce our ability to provide
on the ESG Working Group.
safe, reliable and efficient operations.
Our participation in the International sustainable manner.
Liquid Terminals Association includes the
Environmental, Health, Safety and Security
We are continuously looking for ways to Hurricane preparedness
Committee, the Environmental Subcommittee
manage, minimize and reduce our greenhouse
and the Vessel Emissions Working Group. gas (GHG) emissions, manage and reduce Plains follows API recommendations to
our energy consumption, and incorporate
We are also a member of the American sustainability measures into our business
prepare for future storms.
Gas Association, where we sit on the
planning. To that end, we assess, and where We maintain detailed Business Continuity
Environmental Regulatory Action Committee
feasible adopt, innovative technologies Plans (BCP) and temporary operating
and the Environmental Matters Committee.
to increase efficiencies and reduce GHG procedures, which we review and update
We are active on the Association of Oil Pipe emissions. We took a critical step this year in annually. Given that our corporate
Lines with representation on the Federal completing a comprehensive estimate of our headquarters and some of our assets are
Permitting Work Group.
Scope 1 and Scope 2 emissions, which are located in areas prone to hurricane impact,
In Canada, we are a member of the Canadian included in the disclosure chart of this report. we also maintain a detailed Hurricane
Energy Pipeline Association and participate We plan to continue refining our estimation Preparedness Manual that outlines site-
on the Environmental Working Group, the and measurement process and determining specific preparedness plans for multiple
Business Environment Standing Committee, field locations. Our BCP and temporary
ways to drive emission reductions throughout
the Climate Change Working Group, the
our footprint. We intend to provide updates on operating procedures have been tested and
Hydrogen Task Force and the Climate Change
Policy Task Force. these reduction activities in our future reports. continuously improved in response to weather
events over a number of years.
12 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPGreenhouse
Scope 3 GHG emissions estimation guidance. Total GHG Emissions - Scope 1 + Scope 2
(mt CO2e)
Plains strives to comply with the U.S.
~20%
Gas (GHG)
Environmental Protection Agency’s (EPA) decre
ase
2,500
GHG regulatory reporting requirements
and the Environment and Climate
2,367,000
Emissions
2,219,000
2,000
Change Canada GHG regulatory reporting
1,929,000
requirements, as well as provincial GHG 1,500
reporting requirement programs.
1,000
We are committed to reducing the GHG
Emissions from liquids midstream emissions from our operations, the most 500
notable opportunity for which is through
activities are significantly lower than increasing the efficiency of how we move and
0
‘18 ‘19 ‘20
that of other oil and gas industry use energy. Selected highlights of our efforts
segments. to date include:
Methane concentrations in crude oil and • Shifting meaningful volumes from
trucks to pipelines. 2020 Scope 1 Emissions Percentage Methane
NGLs are generally very low and, as a result,
our methane emissions are correspondingly • Transitioning from generator power
low, particularly when compared to peer to grid electrical power where feasible.
operators and the broader hydrocarbon
• Increasing our use of electric power for
energy industry. The bulk of our methane
pumps and other rotating equipment.
emissions are associated with our natural 98%
gas processing activities. Most of our non- • Upgrading truck engines and emission Other Gases
methane direct GHG emissions are associated control systems. 2%
Methane
with fuel combustion in our NGL processing • Using drag-reducing agents to optimize
operations and trucking activities. power use.
GHG emissions are reported within the • Scrutinizing our operations broadly to
following categories: increase efficiency and reduce energy
consumption.
Scope 1 – direct emissions from owned or
controlled sources (includes fuel combustion,
venting and fugitive emissions).
2019 Emissions in Perspective
Scope 2 – indirect emissions from the (mmt CO2e)
generation of purchased energy required
Worldwide Emissions ¹
by operations.
Scope 3 – all other indirect emissions that 43,100
occur from value chain activities. energy & non-energy sources
36,800
Estimating our GHG emissions is a critical energy sources
step in evaluating emission reduction targets.
Our 2020 report marks our initial disclosure U.S. Emissions ²
of Scope 1 and Scope 2 emissions. Our
emissions disclosure includes our Scope 1 6,600
methane emissions and our Scope 1 and 2 energy & non-energy sources
emissions intensity relative to our Adjusted 5,400
Earnings Before Interest, Taxes, Depreciation energy–related
and Amortization (EBITDA). Owing to the
evolving guidance on the estimation of Scope
Plains Emissions*
3 GHG emissions in our industry, Plains is not 2
including an estimation of Scope 3 emissions
in this report. We plan to actively monitor and * Plains emissions include Scope 1 and 2
1. Global Carbon Project, 2019.
participate in the development of consistent 2. U.S. EPA, 2019.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 13“
Spotlight
Energy management
Energy Management and continues to be an
Optimization Improves important focus area
for Plains. In 2021, we will
Environmental Performance pursue renewable opportunities
while looking for ways to improve
energy efficiency through
process optimizations, waste
heat recovery, process heater
automation, variable frequency
drives, co-generation and lighting
efficiency.”
— John Haldiman, Managing Director,
Technical Services & Energy
footprint. In 2020, our Energy Management The extent and complexities of some of our
team collaborated internally to identify NGL and gas processing facilities demand
opportunities to reduce power consumption, significant energy consumption to run
including removing pressure restrictions rotating equipment and process heaters.
on our systems, reducing flow rates and We are undertaking an effort to lower energy
enhancing the efficiency of our equipment. consumption at these facilities, which
reduces plant-wide emissions. Initiatives in
A key energy efficiency initiative has included
2020 included:
eliminating generators and connecting our
systems to the electrical grid. As we have • Changing the amine treating process at
expanded our footprint over the past few one of our straddle plants, which reduced
years, several newly constructed assets were fuel gas consumption and emissions.
brought into service in locations with limited • Utilizing a vapor recovery unit at a rail
options for immediate connectivity to the loading facility, resulting in reductions
electrical grid. In many cases, generators to flaring, GHGs and product losses.
burning diesel or natural gas powered these
• Installing variable frequency drives on
assets, emitting higher levels of greenhouse
certain existing pumps resulting in energy
gases. Plains has been actively removing
savings and evaluating all new pumps for
these generators, which drives efficiencies
variable frequency drive applications.
by reducing our energy consumption and
emissions. In 2020, the team removed 44 diesel • Upgrading fired heaters with advanced
and natural gas generators from service by instrumentation, and controls, resulting
connecting directly to the electrical grid. in lower emissions.
Optimizing our energy consumption is
• Initiating a waste heat recovery feasibility
among the most effective ways we can Plains also participates in 10 energy
study at one of our straddle plants that
reduce our GHG emissions. curtailment and demand response programs.
has a potential to reduce GHG emissions
Administered by our utility providers, these
Our dedicated Energy Management team across the entire facility.
programs work to assess each facility’s
is focused on optimizing energy usage assets and overall energy consumption, and Looking ahead, we are actively evaluating
across our operating footprint, which has to implement solutions that reduce energy opportunities to expand use of renewable
the dual benefit of reducing operating consumption during periods of high stress on energy sources, including solar, wind and
costs and improving our environmental the electrical grid. battery storage.
14 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPBiodiversity
Prior to construction, we survey the areas
proposed to identify:
and
• Environmentally sensitive areas such
as wildlife refuges, conservation areas,
threatened and endangered species’
Conservation habitats, wetlands and waterways.
• Public use areas such as parks and
recreational areas.
• Indigenous traditional lands.
We remain committed to supporting •P
reviously recorded cultural resource
healthy ecosystems, protecting sites, culturally sensitive locations,
cemeteries and other areas of historical or
ecologically and culturally cultural significance to local communities.
sensitive areas, and minimizing our • Public safety structures and areas such as
environmental footprint. dams and levees.
We employ an avoidance and minimization
Avoiding and protocol to limit environmental impacts,
minimizing impacts particularly to sensitive areas. Additionally,
where appropriate, we implement seasonal
We strive to hold ourselves to a restrictions for construction activities.
standard that meets or exceeds Our environmental diligence continues
requirements imposed by federal, state throughout the construction process and
and provincial laws and regulations. after an asset is placed into service. We
assign environmental inspectors to monitor
We endeavor to minimize our environmental construction activities for compliance with
impact and thoughtfully consider the permits and the project's Environmental
concerns of stakeholders, including private Protection Plan, and make recommendations
landowners and state/provincial and federal on erosion and sediment controls to protect
regulatory entities. the surrounding areas and waterways.
In the U.S., we engage regularly with the Construction also involves:
Army Corps of Engineers, Fish and Wildlife • Civil, cultural and environmental surveys
Service, Bureau of Land Management, along the proposed route during the
Bureau of Reclamation, state land offices, planning and routing stages.
Indigenous governments, state agencies,
• Removing obstructions and grading the
county and city officials, water resource
right-of-way, with soil set aside for re-use.
boards and levee districts.
• Stringing, welding and lowering the pipe
In Canada, we regularly engage with and backfilling the trench with stored soil.
the Alberta Energy Regulator; Alberta
• Restoring rights-of-way and work areas
Environment and Parks; Saskatchewan
as closely as possible to pre-construction
Ministry of the Environment; Saskatchewan
condition and in line with landowner
Water Security Agency; Ontario Ministry
agreements.
of Environment, Conservation and Parks;
First Nations and Environment and Climate After construction, we continue to monitor
Change Canada. the right-of-way to help ensure we have
In connection with our pipeline construction re-established vegetation and restored
and expansion activities, we prioritize affected land, which includes stabilizing
executing projects safely and effectively, streambeds, banks and natural drainage
while engaging proactively with community pathways.
stakeholders and minimizing our
environmental footprint.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 15Preserving biodiversity Environmental training
during operations Environmental training is key to our
In operating our assets, our goal is to environmental stewardship.
establish and maintain balance with, We have an extensive slate of training
programs to educate our employees on
and sensitivity to, the surrounding
best practices for erosion and sediment
natural environment. control throughout construction. Controlling
We are committed to preserving air quality, erosion and sedimentation protects
water quality, wildlife, natural habitats areas around our pipelines and facilities,
and traditional land and resource use. including wetlands and waterways. Other
We accomplish this by continuously environment-specific training at Plains
monitoring environmental regulations relates to Resource Conservation and
and changes to permit requirements, Recovery Act hazardous waste management,
and conducting pre-construction screening prevention of stormwater pollution and
of ground-disturbing activities. California hazardous waste.
When an asset has reached the end of its useful
life, we undertake environmental restoration
programs to return the location as closely as
reasonably possible to its original state.
16 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPSpotlight
“
Stewarding Ecosystems
for the Future
Partnership projects
like this are a critical
component of efforts along
the Eastern Slopes to recover
Alberta’s threatened native
trout species.”
— Elliot Lindsay, Project Biologist with
Trout Unlimited Canada
Through our Community Investment In 2020, Plains continued our tradition of Previous volunteer efforts have included:
support by safely gathering at a popular
program, Plains partners with • A fish rescue near Lethbridge, Alberta, in
recreational area in Waiparous, Alberta, to
organizations dedicated to which fish were saved by diverting them
assist with important environmental work.
from an irrigation canal back into the
environmental protection and
Volunteers from Plains helped enhance trout Oldman River before winter. This event
conservation. habitat by restoring stream banks through was in collaboration with both TUC and
We have a long-standing relationship with installing a bridge, harvesting and planting Alberta Environment and Parks.
Trout Unlimited Canada (TUC), a charitable live willow stakes and distributing woody • An initiative to increase the bull trout
organization that works to conserve, debris throughout the project area. population of the Tay River near Caroline,
protect and restore Canada’s freshwater These efforts helped to protect the stream Alberta, during which volunteers planted
ecosystems for current and future and ensure it can continue to provide live willow stakes into the water’s edge,
generations. We support TUC through direct habitat for the trout, a threatened species relocated shrubs and trees, foraged for
donations, employee-matched donations under the Canadian Species at Risk Act. branches to weave a wattle fence, and
and volunteer service opportunities. built an exclusion fence to protect the
restored area.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 17Water Waste management
Plains is committed to recycling and
and properly labeled containers, properly
maintaining waste storage areas, and
disposing of waste at appropriate facilities
and Waste reducing waste while encouraging
more sustainable material use.
that are permitted to receive such waste.
Our major office locations in Houston,
Management When feasible, we recycle steel and other
metals from obsolete pipeline and facility
Texas, and Calgary, Alberta — as well as many
of our regional and local offices — recycle and
reuse paper, cardboard, plastic and glass. As
assets, and recover hydrocarbons from a part of our commitment to reduce organic
variety of maintenance activities, which waste in landfills, our Calgary office also
are then returned to the product stream.
Water Where feasible, we employ practices that are
participates in voluntary compost programs.
designed to minimize the quantity of waste We continue to seek additional opportunities
We recognize the importance of good to minimize waste generation from our
that we generate.
water management practices, even offices and field operations.
When waste disposal is required, we strive to
though, as a midstream operator,
manage and dispose of waste in accordance
Plains is not an intensive consumer of with all applicable regulatory standards.
water. We understand the significance This involves placing waste in appropriate
of protecting water quality and
sources, as well as the need for
efficient water use.
In siting projects, our first goal is to avoid
water body impacts wherever possible
through pipeline routing and facility
placement. When that is not possible, we
employ rigorous sedimentation control
processes to protect adjacent water bodies
during construction. We also minimize the
impacts of pipeline construction across
water bodies through the use of directional
drilling as an alternative to the historical
practice of open cutting across water bodies.
We strive to meet or exceed established
federal, provincial and state water quality
regulations. We carefully monitor and
manage the water use in our operations,
with the goal of using only the minimum
required. When performing hydrostatic
testing of our pipeline and storage assets,
we plan for efficient water use by minimizing
the amount needed, reusing water when
possible, reducing the potential for
contamination and employing appropriate
approaches for treatment and returning
water to the water cycle. We have developed
detailed procedures to monitor the quality of
stormwater and wastewater before they can
be safely returned to the water cycle.
18 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPSpotlight
“
Reducing Single-use Plastics
and Paper Use
This initiative is great
for the environment
and also reduces
expenditures at our
field locations.
These are the kinds of win-win
situations we strive to find as
we continue to integrate
sustainable business practices
across our operations.”
— Dwayne Koehn, Vice President Operations
To reduce plastic consumption, Plains estimates that this change will The group also implemented eTicketing
eliminate use of 1 to 2 million plastic imaging in which digital crude oil run tickets
Plains largely eliminated the purchase
water bottles per year, and we anticipate are created and sent from mobile devices
of single-use water bottles in our field expanding the initiative to our corporate and stored in the cloud, eliminating the
locations in 2020. locations in 2021. need to print and store paper copies.
Additionally, they launched a printer
With an average field employee consuming Plains also recently eliminated plastic
paper reduction project to eliminate auto-
water from plastic bottles roughly 250 days foam products from our corporate office in
printed reports.
a year, our consumption of single-use plastic Houston. We estimate that we can eliminate
water bottles was significant. up to 500,000 cups and plates per year as part Meanwhile, the launch of a new app
of this initiative. for completing operator qualification
Today, employees at facilities with potable
performance verifications is saving
water are encouraged to use reusable cups or In the same spirit of green initiatives, our
approximately 2,800 pieces of paper a month,
five-gallon water jugs on their trucks for their Trucking team has moved towards paperless
thanks to the efforts of our Training team.
hydration needs. operations. In 2020, the team eliminated
paper copy vehicle repair orders, vehicle
inspection reports and maintenance records.
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 19Operating
Excellence
Our operational vision is to be the
midstream leader in safe, reliable,
Topics in this section
efficient and responsible operations. Health and Safety at Plains 21
Our commitment to safety excellence Emergency Preparedness 25
Spotlight: Taking a Proactive Approach to Emergency Response 26
reflects this vision and the dedication Our Approach to Pipeline Safety 27
Spotlight: Investing in Technology to Advance Pipeline Safety 29
shared by both our management Security and Cybersecurity 31
Spotlight: Hurricane Response During a Pandemic 32
and the employees who operate our
assets every day.
20 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPHealth and Safety initiatives
Employee Total Recordable Incident Rate (TRIR)
(per 200,000 work hours)
At Plains, our Health and Safety
Safety at Plains 0.8
0.7 0.74 0.66*
0.61*
Management program consists of a
number of initiatives that enhance our
0.6
~5
0.5
0% processes and procedures.
de
0.52 cre
0.4 as Stop Work Authority is intended to
Safety performance 0.3 0.38
e
prevent unsafe actions or conditions before
an incident occurs. Every employee or
We monitor our health and safety 0.2
0.1
contractor is responsible for, and authorized
performance using leading and lagging to stop, any work they deem to be unsafe
0.0
indicators and have a goal of zero ‘18 ‘19 ‘20 or noncompliant with safety policies,
recordable injuries. procedures or our Life Rules (see page 22).
Our executive leadership team has committed
Notable highlights since 2018: * TRIR average for 14 peer comparator companies.
that there will be no repercussions for any
individual who stops unsafe work.
• ~ 50% improvement in total recordable
incident rate. Our Hazard Recognition program
Employee Lost Time Incident Rate (LTIR)
• ~ 80% improvement in our lost time (per 200,000 work hours) provides processes for the proactive
incident rate. identification, assessment and control
of health and safety hazards and
• ~ 40% improvement in our motor vehicle 0.6
~8
0% management of those hazards enterprise-
incident rate. de
0.5
0.53 cr wide. Field employees in safety-sensitive
ea
Our target to improve our TRIR by 20% in se positions receive training on how to identify,
0.4
2021 is considered in all employee bonus assess and implement effective controls to
metrics, including our CEO and Executive 0.3 mitigate hazards, in line with the National
Management team. 0.2
Safety Council personnel injury categories.
0.1
0.17 The program also rewards workers
0.11 who identify and mitigate hazards in the
0.0 field through submissions into the Plains
‘18 ‘19 ‘20
incident management software system.
The findings are shared across the company.
Submissions are also used to identify trends
that lead to corresponding updates to Plains’
Employee Motor Vehicle Incident Rate (MVI) risk controls.
(per 1 million miles)
~40
1.5 %d
ecr
eas
1.40 e
1.2
0.9
0.94 0.81
0.6
0.3
0.0
‘18 ‘19 ‘20
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 21The Incident Reporting and
Investigation program enables incident
Life Rules
and near-miss learnings to be shared across
the company and industry. Plains considers
improvements to processes, procedures or
controls based on these learnings. is a set of 11 rules that our employees
The Corrective Actions Management and contractors use to guide the way we
program comprises Plains’ approach to
developing, implementing and evaluating work. We believe following these Life Rules
corrective actions. It is applied using
a system of prioritization, in consideration will help reduce personal injuries,
of factors such as criticality, risk or
operational impact.
motor vehicle incidents and
The Plains HSE Safety Committee environmental releases.
comprises field employees from each area
of the business who meet quarterly to
identify opportunities for improvement. Have work
The committee has executive oversight authorization
and includes HSE personnel who
provide mentorship and help execute
recommendations. One of the team’s recent
accomplishments was an overhaul
of Plains' work permits and
associated training.
Assess and Work safely
mitigate hazards at heights
Safely perform
Manage
hot work
confined space
activities
Safely operate vehicles Isolate and
and motorized verify energy
equipment sources
Manage ground
Be fit for duty
disturbance
Safely Don’t bypass safety
operate lifting controls and stay within
equipment system limits
22 Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGPSafety training Safety audits permanent employees. We also hold regular
contractor safety meetings to educate
Safety is an integral part of our culture, We perform routine risk assessments contractors on safety protocols that are
specific to Plains.
and we have stringent safety training of our business, including health,
programs for our employees. safety and environmental processes Our contractor safety goal is zero
Occupational Safety and Health
Last year, Plains employees completed over and procedures, to evaluate and
Administration recordable incidents. Based
90,000 training sessions related to health, recommend improvements in process on our recordable incidents in 2020, our
safety and the environment. design and performance effectiveness, target is to reduce contractor TRIR in 2021
Field-based Pipeline Operations employees efficiency and quality. to less than 0.19. This target represents
complete a comprehensive orientation and an incident rate significantly less than the
safety training program in the first 90 days of In Canada, our health and safety industry average.
their hire to review safety materials in detail management system is also audited
through the Certificate of Recognition (COR) For more information on our contractor
and familiarize themselves with regulations selection process, see our Supply Chain
governing our operations. Audit. The Government of Alberta awards
certificates of recognition to employers who Management section on page 46.
Key areas addressed through training have voluntarily applied for the COR and
include hazard management, incident operate a health and safety management Marine safety
prevention, fall protection, personal system that meets or exceeds established
protective equipment, process safety Plains has a marine operations policy that
standards. Plains scored a 98% rating in 2020.
management and emergency response. outlines various safety precautions, practices
In 2020, our employees also received training and procedures intended to prevent injuries
related to the COVID-19 pandemic and safely Contractor safety and protect employees while working or
returning to the workplace. traveling near or over water.
Our commitment to safety extends
Plains offers boater safety training to
One of the ways Plains reinforces and to contractors who contribute to our
promotes its strong safety culture is through employees involved with marine operations.
day-to-day operations.
communication and worker participation.
For example, each year we host an annual We use ISNetworld, a contractor
safety week for both corporate and field management program, to ensure we are
employees as a way to reaffirm our collective hiring contractors who are aligned with our
commitment to a safe work environment safety objectives and industry standards.
and to revisit the policies and procedures Plains’ contractor safety expectations
that help keep us safe. During these annual require our contractors to assign an
events, employees participate in a number employee, agent or subcontractor at each
of activities designed to further expand their applicable work location as the “Person
safety knowledge and awareness. in Charge” of administration of safety
requirements, including reporting of
all work-related accidents, injuries and
illnesses.
Once engaged, contractors and sub-
contractors must adhere to applicable
provisions of our Contractor Safety
In 2021, Plains employees program. This includes a requirement
completed over to report all incidents and share lessons
learned. We monitor and audit contractor
90,000 training safety performance to ensure compliance
with health and safety protocols and
sessions identify opportunities for improvement.
This information is additionally included in
related to health, safety contractor health and safety performance
metrics that are tracked internally,
and the environment. alongside similar benchmarks for
Plains 2020 Sustainability Report | plainsallamerican.com | NASDAQ PAA & PAGP 23You can also read
