accountable
Transcription
accountable
1 accountable 2008 Sustainability Report 2 About this Report This is ATCO Group’s first biennial sustainability report. Our goal is to demonstrate our accountability to employees, investors, customers, community members, suppliers and regulators. We used the Global Reporting Initiative’s (GRI) G3 Sustainability Reporting Guidelines to help determine the content. Under the GRI G3 Guidelines we achieved a C level of reporting. With more than 7,700 people in nine principal operating subsidiaries with diverse activities worldwide, preparation of this first report represents extensive effort by many of our employees. It was prepared with the best information we were able to gather, although in some cases not all data is yet available. We will build on and add to the data in coming years. We also expect to add to the stories that showcase our commitment to communities, our people, environmental innovation, our health & safety standards, and economic sustainability. The accuracy of this first report for our readers has also been of significant concern. Senior management and relevant staff have reviewed all information and believe it is an accurate representation of our performance. We undertook a variety of internal and external assurance activities on information presented in this report, including financial, environmental, health and safety performance, management system and compliance audits. Third-party assurance did not take place. Unless otherwise noted, the data covers performance for the year ended December 31, 2008, for ATCO Ltd. The terms ATCO, ATCO Group and the Corporation refer to ATCO Group as a whole. Company names are used to refer to subsidiaries, such as ATCO Gas, ATCO Power, or ATCO Pipelines. In July 2009, ATCO announced the reorganization of its operating subsidiaries into three closely aligned business groups: Utilities, Energy and Structures & Logistics. In this report, we refer to ATCO Structures & Logistics, which was formed from combining ATCO Structures, ATCO Frontec and ATCO Noise Management. Financial data is in Canadian dollars and environmental data is in metric units. Unless noted, data does not cover contractors or temporary employees. www This icon indicates additional information on a specific subject is available through our website www.atco.com. 1 inside 7 president’s message 21 employees 25 4 community environment 17 health & safety 29 performance Corporate Structure............................................................................................................................................... 3 President’s Message.............................................................................................................................................. 4 Management Approach......................................................................................................................................... 6 Environment.......................................................................................................................................................... 7 Health & Safety.................................................................................................................................................... 17 Employees........................................................................................................................................................... 21 Community.......................................................................................................................................................... 25 Performance........................................................................................................................................................ 29 GRI Content Index............................................................................................................................................... 32 2 Sustainability Through the Years Year Story 1970s ATCO Gas established a program to encourage use of natural gas as a cleaner fuel option for industrial applications and vehicles. 1988 ATCO sponsored major projects for the XV Olympic Winter Games including the dramatic flare on top of the Calgary Tower and the Canmore Athletes’ village. 1991 Founding partner of Alberta EcoTrust Foundation with continued strong partnership today. 1993 ATCO Power commissioned first Canadian cogeneration plant in Taylor, British Columbia. 1995 ATCO Pipelines began reporting under the Canadian Greenhouse Gas (GHG) Challenge Registry through the Canadian Standards Association. 2001 ATCO EnergySense founded. Delivers to customers education and outreach programs on energy efficiency. 2003 ATCO Power commissioned its first run-of-river hydro project at Oldman River, Alberta. 2004 ATCO Electric earned the Edison Electric Institute’s International Award for their completion of the Dover-Whitefish transmission line. ATCO Electric is the first Canadian company in the 77 year history of the award to win it. 2005 ATCO Gas partnered with Northern Alberta Institute of Technology (NAIT) to develop a commercial scale fuel cell. 2006 EPIC (Employees Participating in Communities) launched company wide. 2007 ATCO Gas partnered to create a leading North American community solar heating system in Okotoks, Alberta. 2009 ATCO Power and ATCO Pipelines recognized for their outstanding safety records for the fifth and sixth consecutive years, respectively. ATCO’s Worldwide Presence We have provided products and services in over 100 countries around the world. 3 Corporate Structure ATCO Group is comprised of two publicly traded companies – ATCO Ltd. (ATCO) and Canadian Utilities Limited (CU). ATCO Group is an Alberta based, international group of companies with more than 7,700 employees and assets of approximately $9.8 billion. We deliver service excellence and innovative business solutions worldwide with leading companies engaged in Utilities (pipelines, natural gas and electricity transmission and distribution), Energy (power generation, natural gas gathering, processing, storage and natural gas liquid extraction) and Structures & Logistics (manufacturing, logistics and noise abatement) and Technologies (business systems solutions). UTILITIES ENERGY STRUCTURES & LOGISTICS ATCO Electric owns and maintains safe, reliable transmission and distribution systems that deliver electric energy to customers in Alberta and Canada’s North, including Northland Utilities Enterprises and Yukon Electrical Company Limited. ATCO Power builds, owns and operates technologically advanced and environmentally progressive power generation plants in Canada, the United Kingdom and Australia. ASHCOR Technologies, a division of ATCO Power, markets fly ash produced by ATCO Power’s coal-fired generating plants as a cement product. ATCO Structures & Logistics offers complete infrastructure solutions to customers worldwide, including workforce housing, innovative modular facilities, construction, site support services, logistics support, operations management, catering and noise reduction technologies. TECHNOLOGIES ATCO Gas is an Alberta based, natural gas distribution company, serving more than one million customers in nearly 300 Alberta communities. ATCO Pipelines owns and operates more than 8,400 km of pipelines, providing natural gas transmission services to producers, industrial customers and gas distribution companies throughout Alberta. ATCO Midstream provides natural gas gathering, processing, storage and natural gas liquids solutions to customers in the Canadian natural gas industry. ATCO Energy Solutions is focused on building, owning and operating nonregulated electric assets, industrial pipelines and hydrocarbon storage facilities. ATCO Water, a division of ATCO Energy Solutions, provides municipal and industrial water and wastewater solutions. ATCO I-Tek provides large-scale billing, customer care and information technology solutions to clients all over the world. ATCO Travel is a full-service travel agency specializing in corporate travel management, vacation and group travel. Effective July 2009. www 4 president’s message I am pleased to introduce ATCO Group’s first sustainability report, which provides readers with a snapshot of our commitments, challenges and achievements in four key areas: environment, safety, employees and community. Our nine operating businesses have operations that reach across the globe and employ more than 7,700 people in a variety of industries. ATCO has experienced considerable growth and significant change since our founding more than 60 years ago. The core principles of our company, however, have remained unchanged since the 1940s and are described in our commitment to ”Excellence”, which I commend to you on page 22 of this report. ATCO Group is made up of a wide and diverse array of businesses that touch the lives of many people around the world. We have always taken our responsibilities very seriously, whether it is to the communities we have the privilege to serve, our employees’ safety, or the global environment within which we participate. 5 “ATCO Group is made up of a wide and diverse array of businesses that touch the lives of many people around the world. We have always taken our responsibilities very seriously, whether it is to the communities we have the privilege to serve, our employees’ safety, or the global environment within which we participate.” The theme of this, our first comprehensive sustainability report, is ‘accountable’. We take great pride in being accountable to the owners of our shares, our customers, our employees, our business partners and the environment. Stewardship of the environment and our strong commitment to health and safety are fundamental tenets of our business. Our ability to perform on these measures is continuously assessed and judged by governments, regulators, employees, customers and partners. It is our accountability that earns us our social license to operate and creates trust within our working relationships wherever we are in the world. I personally, along with the nearly 8,000 employees of ATCO, have a growing concern regarding the challenging tensions between growth, development and the environment. However, we are finding that our companies’ desire to address a more sustainable way to conduct business is creating many new opportunities within our organization. Most of our greenhouse gas emissions come from our coalfired generating plants which have provided consistent, reliable, low cost power to Albertans for more than 20 years. More than 15 years ago, we responded to the challenge of finding cleaner ways to produce electricity by investing in alternative energy solutions with the construction of our first gas-fired, cogeneration power plant at Taylor, British Columbia. Since that time, ATCO Power has become Alberta’s largest operator of environmentally responsible cogeneration plants, delivering much needed electricity for economic growth, while avoiding significant greenhouse gas emissions. ATCO has captured new business through the creation of a number of products and services that provide unique environmental solutions to the marketplace. This includes recycling of by-products from the generation process, providing specialized wastewater treatments, new noise abatement solutions and geothermal projects, to name a few. There are still many challenges to face and we are addressing them head on. We are actively involved in policy discussions to ensure that emerging regulations create a level playing field for new, non-emitting generation projects, while still recognizing the long-term nature of former investment decisions. ATCO Group’s success is dependant on our ability to operate in a responsible and sustainable manner today and in the future. We have thousands of men and women in our companies whose dedication and hard work is helping us to develop innovative ways to improve how we do business in the future. I am so proud of their efforts! Nancy C. Southern President & Chief Executive Officer ATCO Group 6 management approach Corporate Governance Our Boards view effective corporate governance as an essential element for the ongoing sustainability and growth of ATCO and its operations. Our procedures and processes are reviewed continually to ensure the corporations are governed effectively and to meet best practices. The ATCO Ltd. and Canadian Utilities Limited Boards each have separate Risk Review, Audit, and Corporate Governance Committees. The Chairman of each Board is not independent, and there are no members of management on the Boards other than the President & Chief Executive Officer. To facilitate the independent functioning of the Boards, independent Lead Directors have been appointed. The committees are the primary stewards of our sustainability practices. The Risk Review Committee addresses issues that could materially affect our ability to achieve strategic or operational objectives. Its purpose is to ensure that there are adequate processes, policies, procedures and means to manage and mitigate identified risks, while ensuring that adequate systems are in place to monitor and comply with all applicable environmental legislation and to conform to industry standards. The Corporate Governance – Nomination, Compensation and Succession Committee reviews the mandates of the Board and its committees on an annual basis and is responsible for making recommendations on the President & Chief Executive Officer’s objectives, executive compensation and the link to corporate performance measures. The performance measures include: Health and Safety of Employees and Contractors; Environmental Stewardship; Succession Management and the Attraction, Development and Retention of Employees, and the development of Long Term Sustainable Growth Strategies. The Committee also assesses the effectiveness of the Board, reviews the size and composition of the Board and considers persons as nominees for directors. The Audit Committee has oversight of the Corporation’s financial reporting. Its principal function is the review and recommendation to the Board of Directors of the annual financial statements. The Committee also recommends the appointment of the Corporation’s external auditor to the Board and is responsible for the compensation and oversight of the external auditor. Directors of the Corporation are appointed as Designated Audit Directors (DAD’s) of each of ATCO Group’s business segments. Each DAD meets quarterly with the senior management of their assigned principal operating subsidiaries and internal audit to review financial statements and operating results. On the websites (www.atco.com and www.canadian-utilities.com) under “Investor Relations” you can find further information on the governance structure in the Management Proxy Circular as well as further company contact information for shareowners and interested parties. www Public Policy Involvement The operating companies of ATCO communicate with policy makers at provincial and federal levels to better understand policy changes and provide input wherever possible. ATCO participates in public policy development on subjects such as greenhouse gases, air emissions, water resources and market structures. We seek to engage in discussions with government representatives to help them further understand challenges and opportunities facing our various businesses. When interacting with governments we encourage principles of fair, efficient, open and competitive markets. We work toward long-term solutions, which are critical due to the fact that many of our facilities have an economic life of more than 20 years. In general, we believe that a market-based approach to legislation results in the most cost-efficient and innovative approach to compliance. The government should set the targets, but let the market determine solutions. To ensure fair competition, regulations should create a level playing field and send the same message to all industries and interested parties. We believe fair regulations also recognize investment decisions made in the past and incorporate flexible features, such as allowing appropriate time to respond. Through participation in various industry groups, ATCO is an active contributor to the development of frameworks and government regulations. For example, we are actively engaged in discussions with various governments regarding air emissions, and are also contributing to the development of Alberta’s Land Use Framework, especially the Lower Athabasca Regional Plan. 7 environment We believe that reducing our impact on the environment is integral to the pursuit of operational excellence. We approach the avoidance or mitigation of our environmental impact with the same discipline, strategies, accountability and transparency that is the foundation of our company’s long-term success. Our Commitment • We strive to minimize our environmental impacts throughout our global operations. • We include efficiency and environmental considerations in the planning and implementation of all our projects. • We are developing a leadership position in the area of alternative energy technologies, including: cogeneration, hydro, geothermal and solar energy. • We monitor and assess our performance, and will provide related information. 8 In 2003, ATCO Power commissioned a hydroelectric generating plant at the Oldman River Dam near Pincher Creek, Alberta. As members of the Canadian Electricity Association (CEA), ATCO Electric and ATCO Power adhere to the CEA’s Sustainable Electricity program. Air Climate change is a global issue and we recognize that ATCO has a role to play in the development of cost effective, environmentally responsible solutions. Future solutions require innovative thinking along with a long-term perspective, as the economic life of these investments can be more than 40 years. Our emissions management strategy balances environmental benefits and the need for cost-effective customer solutions and includes the following actions: • Invest in the development of new reduced-emission plants (e.g. cogeneration or combined-cycle plants) or emission-free power plants (e.g. Oldman River hydroelectric plant in southwest Alberta). • Encourage change at the consumer level through ATCO EnergySense. • Find new ways to increase the efficiency of our operations, which leads to economic and environmental benefits. 9 Cogeneration and Hydroelectric Generation We started investing in alternative energy solutions more than 15 years ago, with the construction of our gas-fired, cogeneration plant at Taylor, British Columbia. As Alberta’s largest operator of cogeneration plants, ATCO has led in the construction of environmentally responsible cogeneration power plants, delivering much needed new electricity for economic growth, while avoiding significant greenhouse gas emissions. Cogeneration technology has been identified by Alberta Environment and Environment Canada as eligible for special greenhouse gas treatment and emissions credits. It delivers between 60-75 percent reductions in CO2 emissions when compared with generation from coal-fired power stations. In 2003, ATCO Power commissioned a hydroelectric generating plant at the Oldman River Dam near Pincher Creek, Alberta. This facility produces an average of about 114 gigawatt hours of emission-free power per year. Power supplied by the Oldman River project meets the energy needs of up to 25,000 households. Joint ownership of the facility was created when the Piikani Nation of Brockett, Alberta exercised their option to purchase a 25 percent ownership interest in 2007. ATCO has partnered with TransCanada Corporation to assess the possibility of developing a run-of-river hydroelectric generating facility on the Slave River near Fort Smith, Northwest Territories. The project is in the early review stage to determine whether development could occur in an economically, socially and environmentally responsible manner. We have been working with the local communities on the feasibility study. ATCO Power Greenhouse Gas Emissions since 1990 A significant portion of our emissions are a result of burning fossil fuels in our ATCO Power generation facilities. ATCO Power has voluntarily reduced its emissions intensity – a measure of efficiency – by more than 40 percent since 1990 by installing 15 environmentally progressive natural gas-fired generation facilities. Our facilities include two coal plants which have provided consistent, reliable low-cost power to Albertans for more than 20 years. We have taken significant steps toward reducing the emissions intensity at these plants, including several multi-million dollar upgrades to the steam turbines. Additional efficiency improvements at these facilities are difficult to achieve. ATCO has an opportunity to make the most significant positive impact on GHG emissions through alternative energy sources. ATCO Power Greenhouse Gas Emissions Emissions Intensity 2008 2007 2006 2005 2004 2003 2002 2001 0.00 2000 0 1999 0.25 1998 3 1997 0.50 1996 6 1995 0.75 1994 9 1993 1.00 1992 12 1991 1.25 1990 15 While ATCO Power’s generating capacity has doubled between 1990 and 2008, its absolute emissions increased by 55 percent. Emissions Intensity (t CO2e/MWh) Total Emissions (megatonnes CO2e) Total Emissions 10 Geothermal and Solar Energy Our first pilot project for geothermal energy raised the bar for sustainable building standards. The ATCO Gas Operations Centre at Viking, Alberta opened in 2009 using geothermal heating technology that draws heat energy from the earth to assist in the heating of the facility. The building has been designed to reduce carbon dioxide emissions by approximately 15 tonnes annually, compared to a conventionally built facility. Drake Landing community opened in 2007 in Okotoks, Alberta as the site of North America’s first large-scale solar thermal energy storage and distribution system. ATCO Gas provided project management during the construction and will continue to contribute by operating and maintaining the system over the four-year commissioning period. The end result is a solar powered community which receives 90 percent of its space heating requirement from energy collected through solar panels and is responsible for a four tonne reduction in carbon dioxide equivalent (CO2e) annually from each of the 52 homes for a total of 208 tonnes/year. ATCO Gas also partnered with Avalon Master Builder and Ener-West Geo-Energy Services to install, own, operate and maintain a geothermal/solar system in up to 40 new homes in Calgary’s McKenzie Towne subdivision. The system provides space heating and cooling as well as heat for a portion fo the domestic hot water requirements. ATCO Structures & Logistics’ manufacturing plant in Chile uses solar panels to heat water for the kitchen and showers for 200 workers. The facility now purchases 29 percent less energy and avoids greenhouse gas emissions. Increasing Efficiency Throughout Our Operations Energy efficiency realizes both environmental and economic benefits. Operational efficiency is integral to our drive for operational excellence at ATCO. There are examples of efficiency initiatives in every part of our company. At ATCO Power, during a two-week scheduled outage in 2007, our Osborne cogeneration station in Adelaide, Australia conducted a $1 million (AUD) technology upgrade that increased electricity output by 4.8 percent and improved the heat rate (a measure of generator efficiency) by one percent. The end result is that we produced the same amount of electricity, reduced our natural gas consumption by about one percent, and achieved a 6,000 tonne reduction of CO2 emissions (equivalent to taking 1,200 cars off the road). At ATCO Midstream, we officially opened a new pipeline in Manitoba in 2008 that captures solution gas, which would otherwise be flared, reducing GHG emissions in the area by about 18,500 tonnes annually. ATCO Electric introduced the first hybrid utility truck in Alberta in 2009, a bucket truck that operates on electricity and diesel to significantly reduce environmental impact during power line work. 11 In 2009, ATCO Electric introduced Alberta’s first hybrid utility truck, which has about 70% lower emissions than comparable trucks. ATCO Gas has been an integral player in the natural gas vehicle (NGV) industry in Canada since the 1970s through its own NGV program and by supporting Alberta businesses in their NGV needs. Through the use of natural gas in our fleet vehicles, we experience fuel cost and maintenance savings and a reduction in CO2 emissions. Each NGV is estimated to reduce GHG emissions by about 20 percent compared to a standard gas-powered vehicle. Currently, almost one third of the ATCO Gas fleet operates with natural gas and we plan to maintain this ratio as we change over our fleet. At ATCO Pipelines, our efficiency initiatives focus on a number of areas, but the most significant impact comes from preventing the venting of methane gas. Methane gas has a global warming potential 21 times greater than CO2. By combusting the methane gas the only gas released is CO2, greatly reducing the global warming impact of the releases. Encouraging Change at the Consumer Level One of our flagship programs, ATCO EnergySense, provides Albertans with energy efficiency advice and improvement services for their homes and businesses. Established by ATCO Gas and ATCO Electric, ATCO EnergySense’s team of professionals helps residential and commercial consumers become more energy efficient and contribute to minimizing environmental impacts. Since 2001, EnergySense has responded to more than 135,000 energy management requests and has completed more than 44,000 residential energy assessments. This has contributed to a reduction of over 41,000 tonnes of CO2e annually. Since its inception in 2001, ATCO EnergySense has responded to over 135,000 energy management requests and completed more than 44,000 residential and commercial energy assessments. ATCO EnergySense is expanding its education and outreach service to include a school program which incorporates an interactive 39-foot “Energy Education Mobile”. This unique resource will serve to engage students and the general public on topics related to the wise use of energy and Alberta’s energy resources. The new Energy Education Mobile will be powered by biodiesel and use solar and wind power to generate electricity. It will begin its travels in early 2010 to communities throughout Alberta. www These quantifiable examples are not an exhaustive list of our efforts, but a snapshot of some unique programs we have implemented. Combined they represent more than 65,000 tonnes of GHG emissions avoided in 2008. This is equivalent to taking more than 13,000 cars off the road each year. 12 ASHCOR Technologies, an ATCO Power division, markets fly ash, which is the non-combustible portion of coal from ATCO Power’s two coal-fired plants. By capturing and reusing this waste by-product, we have prevented approximately one million tonnes of carbon dioxide emissions from being released into the atmosphere. This is equivalent to taking approximately 200,000 vehicles off the road for a full year. Performance Managing Greenhouse Gas Emissions ATCO has experience with greenhouse gas regulations and emerging carbon markets in the jurisdictions where we have operations. This includes Alberta with the Alberta Specified Gas Emitters Regulation, and in the United Kingdom via the European Union Emissions Trading Scheme. Future regulation that could affect ATCO companies includes the proposed Canadian federal regulation and the proposed Australian program. We believe it is important to be an active participant in policy development. The Alberta Regulation requires a 12 percent reduction in emissions intensity from a 2003-2005 baseline. There are three options to achieve compliance: reducing facility emission intensity; producing or purchasing registered offsets; and/or purchasing Government of Alberta Emissions Management Fund credits. ATCO fully complies with all regulations through a combination of all three options. ATCO Power is able to recover most of the cost of compliance under current regulations because the costs for our larger facilities are mostly recovered through existing Power Purchase Agreements, where the wholesale power purchasers are responsible for the majority of these costs. In addition, a number of our cogeneration facilities are eligible for GHG credits due to their efficiency. Carbon Disclosure Project (CDP) ATCO has voluntarily reported its carbon emissions to the CDP for the past two years. CDP is an independent, not-for-profit organization that holds the largest database of corporate climate change information in the world. Greenhouse Gas Emissions Emission Sources 12,000 Emissions (thousand tonnes CO2e) 10,000 8,000 6,000 4,000 2,000 0 2006 2007 2008 Fuel Combustion - Coal 67% Fuel Combustion Natural Gas 30% Fugitive Emissions 2% Flaring and Venting <1% Vehicle Fleet <1% 13 As an owner of a run-of-river hydro project, ATCO Power has created verified offsets within the Alberta system. We are well positioned to address emerging regulations by building on existing expertise and through our ongoing strategy of developing environmentally friendly projects and exploring market-based solutions. Direct Greenhouse Gas Emissions Our greenhouse gas emissions are predominantly a result of burning fossil fuels in our ATCO Power generation facilities, and to a lesser degree, releases from ATCO Gas and ATCO Pipelines. The Greenhouse Gas Emissions graph includes historical data from ATCO Gas, ATCO Pipelines and ATCO Power only. We estimate that the remaining ATCO companies contribute less than two percent of ATCO’s total GHG emissions. We plan on further improving GHG emissions tracking and covering all ATCO companies’ emissions in our next report. In the short term, we expect emissions to continue to increase due to the growth of our power generation fleet. However, despite the rise in absolute emissions, we forsee that our emissions intensity (i.e. GHG emissions per megawatt hour) will continue a declining trend as we add new low emitting and non-emitting power sources. Air Pollutants As with greenhouse gases, the majority of our air pollutant emissions are due to ATCO Power’s coal-fired generation facilities. The exceptions are volatile organic compounds and carbon monoxide, which are emitted by ATCO Gas, ATCO Midstream and ATCO Pipelines. ATCO’s air emissions are determined through direct measurement, engineering estimates and calculations. Canadian federal regulations require several ATCO companies to report emissions under the National Pollutant Release Inventory (NPRI). Those figures are included in the table below. AIR POLLUTANT (UNIT) 2008 EMISSIONS MAJOR CONTRIBUTORS NOTES Sulphur dioxide (tonnes/year) 43,556 ATCO Power As the coal mines that supply our facilities age, the sulphur content in the coal is expected to increase. Nitrogen oxides (tonnes/year) 18,752 ATCO Power Produced as a by-product during combustion at our natural-gas fired power plants. Particulate matter (PM2.5)(tonnes/year) 501 ATCO Power Released when fossil fuels are combusted in our power plants. Carbon monoxide (tonnes/year) 969 ATCO Gas, ATCO Midstream, ATCO Pipelines Produced through combustion of fuels at compressor stations and other natural gas handling facilities. Volatile organic compounds (tonnes/year) 77 ATCO Pipelines Emissions occur when fuels and solvents vaporize into the atmosphere. Mercury (kilograms/year) 112 ATCO Power Alberta government regulations require 70 percent reductions from coal-fired facilities by 2011. Ozone depleting substances (kilograms/year) 77 ATCO Power Emissions are due to accidental releases. 14 The cooling pond for ATCO Power’s Sheerness Generating Plant is a source of recreation and irrigation for local residents. Water Consumption 99% 1% Total water diverted = 1,270 million cubic metres Returned Consumed Water ATCO understands that water is a precious resource. About 99 percent of all the water we use is returned to surface water sources. The most extensive use of water occurs at our two Alberta coal-fired power plants. Before releasing used water to the environment, extensive testing is done to ensure it meets all regulatory requirements for temperature and pollutant levels. At our Sheerness plant, water from the cooling pond is also used for irrigation by the farming community and recreation by local residents. We have implemented significant water conservation projects at both our power plants in Australia in response to heavy demands on the local water supplies due to drought conditions. Our Bulwer Island cogeneration plant saves approximately 1,800 million litres of potable (drinking) water annually (about 700 Olympic-sized swimming pools) by using recycled wastewater from the City of Brisbane’s reverse osmosis plant. Our Osborne cogeneration plant implemented a water conservation project that saves approximately 8.5 million litres of potable water every year. Our water use figures are estimated and cover process use only. Data from our non-industrial companies is not included. 15 Water Treatment Services ATCO has two businesses that provide water and wastewater services. ATCO Water, a division of ATCO Energy Solutions, was launched in September 2008 and focuses on designing, building and operating leading-edge water and wastewater infrastructure and facilities for both industry and municipalities. CU Water delivers water to municipalities and businesses in east central Alberta, while owning and operating the water distribution system in three small towns and hamlets. Providing Water for NATO Troops ATCO Structures & Logistics provides potable and non-potable (washing) water from local water wells for approximately 20,000 NATO troops at the Kandahar Airfield in Afghanistan. The water is purified in two reverse osmosis water treatment plants and one ultra-filtration plant. We maintain and manage five local water wells as well as the water storage and distribution system through trucks and an underground pipeline. In July 2007, ATCO Structures & Logistics was awarded contracts to provide support services at the Kandahar Airfield in Afghanistan for approximately 20,000 troops serving NATO’s International Security Assistance Force. 16 Land Part of our responsibility is to steward the land resources we use, and ATCO Electric’s remediation program provides an example of these activities. Initiated in 2000, this program assesses and will clean up all of the company’s operating and decommissioned isolated generating plant sites over several years. By the end of 2008, 105 sites were assessed and 74 sites were remediated with the last site to be cleaned up in the spring of 2010. Most sites were remediated by excavating the contaminated soil, hauling it to approved landfills and backfilling with clean soil. At remote locations, alternate technologies are being used to recondition the soil on-site. Protecting Biodiversity – From Planning to Implementation Identification of species-at-risk habitat is integral to planning and obtaining approval for any of our facilities. We work closely with regulators to ensure any concerns with habitat disruption are addressed. Bird-related issues on transmission lines are of special concern for us, and in 2007, ATCO Electric developed an Avian Protection Plan (APP) to address these issues. ATCO Electric employees erect a man-made raptor’s nest near electric facilities in Whitehorse, Yukon Territory. The goal of the APP is to reduce bird deaths, facility outages and equipment damage associated with bird collisions, electrocutions, nesting and perching. The APP includes a new reporting system to track bird deaths and outages at our operations. This information helps us develop strategies for nest management and measures to reduce mortality on existing poles and communication towers, as well as recommendations for incorporating raptor (e.g. hawks) protection into new structure designs, including new line routing considerations. The plan uses a staged approach for implementation across all areas of ATCO Electric operations. ATCO recognized a growing need for noise abatement in industrial facilities and created ATCO Noise Management in 1992. Now a part of ATCO Structures & Logistics, ATCO Noise Management specializes in industrial noise measurement (pictured here), control and acoustical consulting services for clients all over the world. 17 health & safety Our Commitment Providing a safe workplace for our employees is an integral part of ATCO’s goal to achieve operational excellence. We believe it is our responsibility to provide the safest possible work environment for our employees and to strive with them for an incident-free operating environment. As a responsible provider of energy and other services to the public, we also believe we must play a key role in ensuring and promoting public safety at the grassroots level through a variety of hands-on programs. Safety is a priority for ATCO. We strive continuously to improve our safety programs with the objective of achieving best practice and performance throughout our company. In the coming year, one area of focus is improving our consolidated safety reporting system. 18 Safety Excellence ATCO Power, ATCO Pipelines, ATCO Midstream and ATCO Noise Management (now ATCO Structures and Logistics) were recipients of the 2008 Best Safety Performer Award provided by the Government of Alberta and the Alberta Occupational Health and Safety Council for their “superior” health and safety records. This is the sixth consecutive year that ATCO Pipelines has been recognized by the province for its safety practices and the fifth consecutive year for ATCO Power. Only 36 of the roughly 160,000 eligible Alberta employers achieved this significant five-year milestone in 2008. Moving the Focus to Leading Indicators ATCO continues to look for new ways to reinforce a strong safety environment in its operations by challenging how we think about safety. One way we are improving is by increasing our attention on the safe work processes and the worker accountabilities that contribute to safety, rather than just focusing on addressing safety incidents after they occur. In other words, we are looking for leading, rather than lagging indicators. We believe that being proactive, rather than reactive, to safety issues will contribute to achieving our goals of operational excellence. Leading indicators may vary depending on the operating environment, so different ATCO companies have spent time defining indicators appropriate for their industry. For example, ATCO Electric has a goal of creating a Zero Injury environment and is implementing changes to identified leading indicators. To achieve this goal, there is more emphasis on employees’ accountability for safe actions throughout the work place and processes to observe and improve safety behaviours. Other indicators include safety orientations, safety observations, detailed incident investigations and sharing findings, job planning, training, inspections, safety meetings and contract management. As part of this program, our leadership teams are actively involved in demonstrating, recognizing and coaching employees on expectations. ATCO is already seeing positive results from the implementation of programs such as these. For example, ATCO Electric’s injury frequency rate has dropped by 50 percent since 2007, and the severity of injuries is at an all-time low. As an added benefit, ATCO Electric’s most recent safety perception survey indicated that two thirds of employees are also more safety conscious at home due to these initiatives. Safety Promotion in the Community In addition to making safety an internal priority, our safety promotion activities in the community are far-reaching and targeted to a number of key audiences: industrial and agricultural industry workers, school children and home owners. For Workers: ATCO Electric provides the “Seven Steps for Electrical Safety” program to workers, which includes information and demonstrations about the hazards of contacting energized high-voltage lines. ATCO Electric also participates in the “Where’s the Line” safety awareness program aimed at the agricultural industry. This program is part of the Joint Utility Safety Team, a partnership between Alberta’s electric utilities and the Government of Alberta. For Youth: The superheroes of ATCO Energy Theatre’s SuperPower show deliver an important safety message to children across Alberta. ATCO Gas and ATCO Electric sponsor the tour, which reached more than 20,000 young students in 2008. Featuring superheroes including Power Woman, Carmen Monoxide, P-Yeww and Rocket Socket, the characters in cartoon-like fashion explain the need to be cautious when dealing with electricity and natural gas. ATCO Electric also teamed up with Alberta teachers to design a school resource program for delivery in Alberta classrooms. The award-winning program is designed to teach kids in grades four through six about how electricity is generated and delivered in Alberta, how to be safe around electricity and how they can help conserve electricity. The program features a “Louie the Lightning Bug” safety video and safety presentation by ATCO Electric employees. 19 For Home Owners: ATCO Gas distributes natural gas through a network of more than 37,000 kilometres of underground pipes and service lines. In 2008, natural gas lines were ruptured or severed 876 times during excavation activities by homeowners and contractors across the province. These incidents are largely preventable and that is why ATCO takes its prevention messages very seriously. ATCO Gas delivers targeted safety education to contractors and others on the importance of locating and properly hand exposing gas lines. An integrated communications campaign features the well-known “Call Before You Dig” reminder in online, television and newspaper public service announcements. The campaign is a critical step in raising awareness of the dangers and ultimately reducing this threat to customers and the communities that ATCO Gas serves. ATCO Gas locates natural gas lines. ATCO Gas also provides safety and efficiency inspections of all natural gas appliances (e.g. furnaces, stoves and barbeques) to customers upon request. The Safety Committee at ATCO Power’s Sheerness Generating Station near Hanna, Alberta represents the achievements of its 122 employees, and external contractors. In 2009 our employees and contractors reached approximately 3.1 million hours— or nine years—without a lost-time injury. 20 These ATCO Gas employees are volunteer firefighters for the community where they live and work. Partnerships with First Responders Injury Rates Cases per 200,000 hours worked 4.0 3.5 3.0 ATCO believes in investing in projects, programs and campaigns that help save lives. Our longstanding and strong relationship with emergency services personnel Alberta-wide exemplifies how ATCO Gas and ATCO Electric value their commitment to first responders. In the past five years, ATCO Gas and ATCO Electric have invested more than $500,000 in special initiatives and partnerships with fire and emergency services across the province. This includes training for emergency responders working around natural gas and electricity, as well as ensuring they have the proper tools and resources to safely respond to emergencies. 2.5 2.0 1.5 1.0 Performance 0.5 0.0 Lost-time Recordable ATCO Alberta Average Injury Rates Several of our companies (ATCO I-Tek, ATCO Midstream, ATCO Noise Management, ATCO Pipelines and ATCO Travel) did not incur a single lost–time injury during 2008. The majority of our injuries occur within the company with the greatest amount of manual labour, ATCO Structures & Logistics. ATCO compares favourably with the general lost-time injury rate for the province of Alberta. However, our recordable injury rate of 3.5 is higher than the Alberta rate. We have used these general benchmarks because ATCO companies work in a variety of industries, including factory, field and office settings—a single industry benchmark would not be appropriate. 21 employees Our Commitment ATCO offers diverse and exceptional opportunities for its employees. We are an Albertabased company with more than 60 years of true entrepreneurial spirit – a company that has grown to have operations around the world. Our team of approximately 7,700 people in nine operating companies shares a commitment to operational excellence, healthy and safe work environments and making a positive contribution to the communities where we work and live. The diversity of opportunity provided by ATCO’s nine companies allows employees to maximize their career potential across our varied operations. ATCO employees also have a competitive pension and benefits program including a well subscribed share purchase program. 22 The culture of ATCO is best summarized by our Excellence Statement developed by ATCO Group’s co-founder and Chairman, Ronald D. Southern. “Going far beyond the call of duty. Doing more than others expect. This is what excellence is all about. It comes from striving, maintaining the highest standards, looking after the smallest detail and going the extra mile. Excellence means caring. It means making a special effort to do more.” - Ronald D. Southern, Chairman of the Board ATCO’s Policies and Code of Ethics Every ATCO employee has a responsibility for protecting and maintaining our reputation. Our policies are developed and reviewed regularly to ensure they reflect sound, lawful and ethical business practices throughout our company. Individual ATCO companies often institute their own policies to further articulate their commitments to responsible operations within their sphere of business. For example, in 2008 ATCO Power developed a Sustainability Policy in conjunction with its Sustainability Report. Our Code of Ethics sets out the conduct required of all Directors, Officers, employees and contract personnel of ATCO and its subsidiaries. Each individual reviews and acknowledges their commitment to the Code on a yearly basis. The Code communicates ATCO’s commitments to: • protection of the environment and providing a safe and healthful workplace; and • providing a workplace that is free of harassment and discrimination with equal employment opportunities based on merit and ability. Our Code of Ethics sets out the conduct required of all Directors, Officers, employees and contract personnel of ATCO and its subsidiaries and each individual reviews and acknowledges their commitment to the Code on a yearly basis. 23 Bringing Consistency Across our Companies ATCO’s subsidiaries have evolved over the years to have different interpretations of human resource policies and practices. During the past two years, we have standardized these policies and practices to ensure they represent the best industry standards, while maintaining a consistent ATCO approach to our human resource practices. This policy update set the stage for us to begin standardizing our human resource, payroll and time tracking systems. Our new human resources system, called HRXcellence, will provide the essential foundation for human resource programs and initiatives to enable us to attract, retain and develop employees with the skills we need to stay competitive. People from across the ATCO companies are implementing this program to ensure that it meets the unique needs and complexities of each company. The benefits and changes this new system brings will eventually touch every ATCO employee, creating new possibilities for career development and inter-company movement. The Code also provides important guidelines for employee behaviour on issues such as: • disclosure of information and confidentiality; • insider trading; • conflict of interest; and • political contributions. These documents help to define our expectations and provide employees with information resources to guide their actions to reflect fairness and integrity. The Code cannot capture every single integrity issue, so employees are also encouraged to discuss individual circumstances with their supervisors to clarify expectations and work together to determine the proper course of action. Leadership Training Program ATCO began developing a Leadership Program in 2008 to provide opportunities for employees in leadership roles or with identified leadership potential to build and enhance their skills and experience through experiential learning in both leadership and management practices. Our overall goal is to develop a performance driven pool of leadership talent stronger than our competitors. The program includes a customized, three-day program for senior managers, a three-day leadership program for front line leaders, as well as a three-week resident program for executives at the Ivey School of Business in London, Ontario. In addition, specific courses on project management, communications and finance are offered throughout the year. Career Mapping Career Mapping is a program designed to help people select and progress their career path within ATCO. As employees progress in the organization, they may choose to pursue a career as a people manager or as a technical/professional contributor. The Career Mapping concept includes information about how position requirements evolve as an employee moves into more senior roles. The Career Mapping program also encourages lateral career moves, while providing leaders with an overview of their workforce capabilities to ensure their goals are achieved. Communication ATCO introduced its first company-wide intranet for its employees in the spring of 2009 to enhance communication for its diverse, geographically dispersed employee audiences. ATCOInsite intranet supplements the information that employees receive through their operating subsidiary’s intranet, providing more of an ATCO-wide perspective. We also recognize that our employees work in many settings that do not allow regular access to a computer, so more traditional means of employee communication are also employed. Leaders in each of our operating companies regularly host town hall meetings with employees to provide for discussion and questions. 24 Performance Workforce Profile ATCO has grown substantially over the past five years, increasing its employee base by 29 percent. Approximately 14 percent of our workforce is located outside of Canada, reflecting the international nature of our company. The workforce profile for ATCO shows that more than 91 percent of ATCO’s employees have permanent full-time positions. Since 2006 a higher percentage of ATCO’s employee positions have become permanent – providing more stability for employees. Approximately 54 percent of our workforce (4,210 employees) are members of employee associations and unions and are covered by a total of 28 collective agreements. Diversity We do not ask our employees to self-identify into specific diversity categories, nor do we set diversity quotas. However, we do track the percentage of women in management and in our entire workforce. Turnover The voluntary turnover rate for 2008 (excluding retirements and involuntary terminations) was 12.8 percent. This relatively high turnover rate must be interpreted along with the fact that ATCO has a diverse workforce participating in a variety of activities from technical trades to staffing call centres, to providing professional services. In general, ATCO Structures & Logistics’ manufacturing operations exhibit higher turnover rates than our Utilities divisions, which is due to the project-focused nature of their work. The voluntary turnover rate for 2008, without the manufacturing operations, is six percent. ATCO has a large number of long-term employees who provide continuity and institutional knowledge. Thirty-one percent of our workforce have more than 15 years of service and 23 percent have more than 20 years of service. Workforce Gender Diversity Voluntary Turnover Rate 100 20 Women in workforce 80 29% 40 Women in senior management 20 14% 0 2006 2007 2008 Permanent Temporary Part time 15 % % 60 10 5 Women on Board of Directors 9% 0 2006 2007 2008 ATCO has a large number of long-term employees who provide continuity and institutional knowledge. Thirty-one percent of our workforce have more than 15 years of service and 23 percent have more than 20 years of service. 25 community Our Commitment ATCO is committed to creating healthy, vibrant communities where we live and work. We support hundreds of community endeavours through both financial contributions and the volunteer efforts of our employees. We are committed to: • Seeking to understand and meet the needs and interests of the communities we serve. • Facilitating open consultation with governing authorities, regulatory bodies, landowners and community groups that may be affected by our project proposals and operations. • Building mutually beneficial commercial relationships with local suppliers and contractors. 26 ATCO Electric’s Dover to Whitefish transmission line engaged local Aboriginal communities in the construction of this award-winning transmission line. Public Consultation Through our operations in numerous communities, we have an impact on many people. Caring — being a good neighbour and a responsible member of the broader community — is a core ATCO value. ATCO is committed to extensive public consultation on any new project development. ATCO Electric’s Dover to Whitefish transmission line project won an award for leadership and innovation by engaging with the Aboriginal community along the line route, and demonstrating environmental commitment by protecting the land for the wildlife impacted. We seek to engage organizations and individuals who are directly impacted by our operations, or who have a direct impact on ATCO. In some cases, such as our customers, employees, suppliers and investors, the impact is largely economic. For others, such as governments, communities, non-profit groups, and individual citizens, the impacts can be broader. Community Investment 32% 7% 61% Total: $5,035,217 Charitable Donations Gift In Kind Contributions Sponsorships Community Investment ATCO has been steadfast for nearly 60 years in its commitment to being a positive, active presence in all the communities where we work and live. ATCO supports hundreds of community endeavours through financial contributions and the volunteer efforts of our employees. ATCO’s Community Investment program makes annual donations, creates partnerships and supports our people who contribute to their communities. In 2008, ATCO’s Community Investment program total was more than $5,000,000. One of the goals of our active sponsorship program is to provide our employees with many opportunities to participate in community initiatives. 27 ATCO EPIC – Employees Participating In Communities ATCO and its people, through the company-wide ATCO EPIC (Employees Participating In Communities) fundraising program, pledged $2.7 million in 2009 to more than 500 charities and community groups across Canada. ATCO EPIC is a grassroots, employeeled fundraising initiative where employees donate to charities of their choice. ATCO honours employees’ generosity by matching the charitable donations made to health and wellness organizations and ensuring that 100 percent of the funds go directly to benefiting organizations by absorbing all administration costs. In 2008, ATCO’s corporate match exceeded $1.1 million. ATCO EPIC Time to Give Volunteering for Habitat for Humanity Giving New Life to Computers ATCO I-Tek donated more than 1,600 pieces of computer equipment in 2008 to the Alberta Computers for Schools program. The initiative provides refurbished computers to Canadian schools, public libraries and non-profit learning organizations at little or no cost. Since 2000, ATCO I-Tek has donated more than 9,250 pieces of equipment including desktop computers, laptops, monitors and printers. Elementary school students put ATCO I-Tek’s refurbished computer equipment to good use. Volunteering is a shared value between ATCO and its people, and in recognition of this, we launched ATCO EPIC Time to Give program as a companywide program in 2009. The program recognizes our many employees who embrace giving back to their communities through a donation of their time. Through the program, employees who volunteer 50 hours or more are eligible for a $150 corporate donation to a registered charity of their choice. ATCO employees volunteered nearly 15,000 hours in their communities in 2008. 28 Aboriginal Relations ATCO has been working with Aboriginal communities for many years. Our belief is that we have been able to maintain these long-term partnerships through seeking understanding and mutual respect, while also realizing that there are always improvements that can be made. Positive, long-term Aboriginal partnerships are strategic to the development, ongoing maintenance and growth of ATCO’s businesses. UQSUQ is a partnership between ATCO Structures & Logistics and the Nunavut Petroleum Corporation to lease and operate a bulk fuel storage facility and pipeline distribution system in Iqaluit, Nunavut. ATCO’s Aboriginal Policy guides its business groups to recognize the importance of working cooperatively and effectively with Aboriginal communities as it applies to their specific business activities and interests. Representatives from each of our companies come together to form ATCO’s Aboriginal Relations Team where best practices and lessons learned are shared. The goal of this cross-company group is to better understand how to engage in meaningful dialogue with Aboriginal communities for mutually beneficial and rewarding partnerships. Profile of Aboriginal Partnerships ATCO Structures & Logistics has a history of successfully partnering with Aboriginal groups to deliver capacity-building and long-term sustainability to communities in which we operate. Canada’s North Warning System and Alaska’s Radar System provide examples of our long-standing partnerships. Canada’s North Warning System (NWS) is operated and maintained by the Nasittuq joint venture between ATCO and the Pan Arctic Inuit Logistics Corporation. Nasittuq’s goal is to provide exemplary technical and management services to Canadian and U.S. government customers, while increasing opportunities for Inuit participation as trainees, employees, suppliers and owners. Nasittuq contributes to financial self-sufficiency of Inuit individuals and communities. www An integral component of ATCO Structures & Logistics’ 1987 landmark agreement with the Canadian government was the joint venture’s commitment to provide contracts and employment opportunities for northerners. Contract extensions and renewals reflect the ongoing technical stewardship and strong record in exceeding these socio-economic contract provisions. ATCO partnered with the Fort McKay First Nation to design, build and sustain the 500-room, award-winning Creeburn Lake Lodge, located north of Fort McMurray, Alberta. Creeburn opened in October 2008, and since that time, ATCO Structures & Logistics and the Fort McKay First Nation have announced additional ventures to meet housing needs in the oil sands region. performance 29 30 Performance Summary ATCO is committed to measuring and reporting our sustainable development performance in a transparent manner. Transparency holds us accountable to our shareowners, employees and customers, but it also triggers internal action. This report is a management tool that will help us identify areas where we can make further investments of resources to improve our performance. INDICATOR UNITS 2008 Environment Air Emissions 1, 2 GHGs thousand tonnes CO2e 11,866 Sulphur dioxide tonnes 43,556 Nitrogen oxides tonnes 18,752 Particulate matter (PM2.5) tonnes 501 Carbon monoxide tonnes 969 Volatile organic compounds tonnes 77 Mercury kilograms 112 Ozone depleting substances kilograms 77 million m 14 Water Use 3 3 Fines and Penalties Social $ 0 4 Employees # 7,781 Voluntary Turnover Rate 5 % 12.8 Employees In Employee Unions or Associations % 54 Health & Safety 6 Lost time injury rate Cases/200,000 hours worked 0.77 Recordable injury rate Cases/200,000 hours worked 3.50 Fatalities # 0 Diversity Women in workforce % 29 Women in senior management % 14 Women on Board of Directors % 9 # 40 Customer Privacy Breaches 7 Economic Economic Value Generated 8 $ million 3,315 $ million 1,522 $ million 466 246 Economic Value Distributed Suppliers Employees Lenders $ million 9 Shareholders $ million 95 Governments 10 $ million 150 Communities 11 $ million 5 $ million 830 Economic Value Retained 31 Notes: 1 Emissions reporting is variable. Not all companies reported for all emissions types. However, we believe that the figures cover the major sources of our emissions. The figures include emissions amounts that are required to be reported under federal, provincial, regional or other regulations, or under facility permits. 2 Different industries have varying environmental performance reporting requirements. This report reflects those approaches for our joint ventures (JV). For ATCO Power JV facilities, we are reporting on an asset ownership basis, claiming a portion of the emissions equivalent to our percentage ownership. For ATCO Structures & Logistics (ATCO Frontec) and ATCO Midstream JV facilities, we reported on an operator basis, claiming 100 percent of the emissions for the facilities we operate. 3 Includes data from ATCO Frontec, ATCO Gas, ATCO Midstream, ATCO Pipelines, and ATCO Power. Does not include water used for domestic purposes. 4 Except where otherwise noted, employee statistics do not include JV employees. 5 Does not include a percentage of our international employees where historical data was not available. 6 In some cases, JV employees were included in safety statistics. 7 All incidents were resolved successfully, and typically involved a call centre agent providing information to a caller who was not listed as an additional responsible party. One of the complaints was received through the Alberta Privacy Commissioner. 8 Economic value generated includes revenues, gains on asset dispositions, and interest income. 9 Payments to employees include the expensed cost of wages and benefits. Capitalized wages are included in payments to suppliers. 10 Payments to governments include income and property taxes. 11 Distributions to communities include donations, in-kind contributions and sponsorships. 32 GRI Content Index This report has been prepared using the Global Reporting Initiative’s (GRI) G3 Sustainability Reporting Guidelines. We self-declare this report as achieving Application Level C. For more information on the GRI please visit www.globalreporting.org. CATEGORY Stategy & Analysis Organizational Profile Report Parameters Governance, Commitments & Engagement GRI Indicator 1.1 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.10 3.11 3.12 3.13 4.1 4.2 4.3 4.4 4.12 4.14 4.15 Economic Environmental Social EC1 EN8 EN16 EN18 EN19 EN20 EN28 LA1 LA2 LA4 LA7 LA13 SO5 PR8 Description CEO statement Company name Primary brands, products, and/or services Operational structure Location of headquarters Countries where ATCO operates Nature of ownership and legal form Nature of markets served Scale of the company Significant changes during reporting period Awards received Reporting period Date of most recent previous report Reporting cycle Contact point for questions Process for defining report content Boundary of report Limitations on report scope or boundary Basis for reporting on non-wholly owned operations Explanation of information restatements Significant changes in measurement List of GRI indicators addressed Policy and current practice on external assurance of report Governance structure, including major committees under the Board Independence of Board chair Independent, non-executive directors on Board Mechanisms for shareholder participation Adoption of externally developed sustainability charters or principles Stakeholder groups engaged Basis for identification and selection of stakeholders with whom to engage Direct economic value generated and distributed Total water withdrawal Greenhouse gas emissions Initiatives to reduce greenhouse gas emissions Emissions of ozone depleting substances NOx, SOx, and other significant emissions Environmental non-compliance and fines Breakdown of workforce Employee turnover rate Employees in employee unions or associations Standard injury and lost day rates and fatalities Diversity Participation in public policy development Customer privacy breaches Page # 4-5 3 3 3 3 2 3 3 2, 30 Front inside cover 33 Front inside cover Not applicable Front inside cover Back outside cover Front inside cover Front inside cover Front inside cover, 31 31 Not applicable Not applicable 32 Front inside cover 6 6 6 6 8 6, 23, 26, 28 26 30 14, 30 9,12,30 8-11 13,30 13,30 30 24 24,30 24,30 20,30 24,30 6 30 33 Recognition One measure of our performance is the external recognition we receive for our initiatives and operational excellence. The following is a sample of the significant external recognition we have received and gives us a benchmark for our further improvement in these activities. RECOGNITION AWARDED TO Best Safety Performer ATCO Midstream ATCO Structures & Logistics (ATCO Noise Management) ATCO Power ATCO Pipelines Alberta Workplace Safety & Health RECOGNIZED BY FOR Exceptional performance in workplace health and safety Top Projects ATCO Frontec Alberta Construction Magazine Creeburn Lake Lodge Project of the Year (Honourable Mention) ATCO Structures & Logistics (ATCO Noise Management) Power Engineering Magazine Best Gas-Fired Project (XCEL Energy High Bridge Combined Cycle Project) Gold Status ATCO Pipelines Canadian Standards Association Greenhouse Gas Registry ATCO Pipelines has achieved Gold Level Status seven times since 2001 Gold Medal ATCO Power The Royal Society for the Prevention of Accidents Occupational health and safety at Barking facility Rewarding Partnerships ATCO Structures & Logistics (ATCO Frontec) Alberta Chamber of Resources/ Alberta Aboriginal Relations Innovation and best practices in Aboriginal programs Highest Customer Satisfaction in North America ATCO I-Tek Service Quality Measurement Inc. Customer service three years in a row Award of Distinction, First Place in the Temporary Building Category ATCO Structures & Logistics (ATCO Structures) Modular Building Institute (MBI) Santiago, Chile project. Awarded based on architectural excellence, technical innovation, and energy efficiency Forward-Looking Information This report contains forward-looking information pertaining to contractual obligations, planned capital expenditures, the impact of changes in government regulation, non-regulated generating capacity subject to long-term contracts, impact of commodity prices and market developments. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes that the expectations reflected in the forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. 34 1400, 909 – 11th Avenue SW Calgary, Alberta Canada T2R 1N6 Telephone: (403) 292-7500 Fax: (403) 292-7623 www.atco.com www.canadian-utilities.com