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Photo: Mark Poweska

A message from the President and CEO
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Photo: hand holding a see-through globe with trees in the background

Our Approach to Sustainability
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Management Approach and Governance

Core Values and Code of Business Conduct

Our core values have been essential to meeting the evolving needs and expectations of the customers, employees, communities and shareholders we serve across Ontario. These values are reflected in our Code of Business Conduct (“the Code”) and guide the decisions and actions of Hydro One’s employees, officers and directors. We also have a Supplier Code of Conduct, which supports our efforts to be a supply chain leader that protects people, manages impacts on the environment, respects Indigenous relationships and promotes energy efficiency.


The Whistleblower Policy is the companion policy to the Code. It sets out the procedures for reporting actual, potential or suspected violations of the Code, applicable laws, applicable audit practices and accounting standards and practices, as well as other matters. The Fraud Risk Management Policy and Program reinforce the expectation that all Hydro One employees must take steps to detect and report fraud and corruption.


Our commitment to developing respectful long-term relationships with our customers, employees, shareholders, Indigenous Peoples and communities in which we serve, is supported by several corporate policies and management systems.
 

In 2018, Hydro One conducted a formal materiality assessment to identify the sustainability issues that matter most to our business, stakeholders and partners.


We expect the results to guide our sustainability strategy and our disclosure approach.

 
Through the assessment, ten priority issues were identified as material to Hydro One’s business. Click here to learn more about our materiality assessment.






Customers Come First

image of a small business owner


Our customer service goal is simple - we aim to provide an exceptional experience every time. While we are focused on providing fast, flexible and convenient options, we continually strive to identify new opportunities to serve our customers better. We are working hard to keep Ontario's electricity system safe and reliable by modernizing aging infrastructure in communities across the province.

icon: 76 percent residential and business customer satisfaction

icon: 90 percent

icon: $40.8 million in bill savings through conservation programs

icon: $17.6 million in bill savings

icon: $17.6 million in bill savings



image of a customer service agentCustomer Service

Our Contact Centre agents responded to over a million customer calls in 2018, with 87% of issues resolved during the first call, a record high. This improved performance is reflected in the 93% customer satisfaction score achieved by our Contact Centre agents, another record high.


image of a mother playing with her sonAccessibility & Affordability

We work to promote a culture of energy conservation and to act as our customers' energy advisor. Over the past two years, through Hydro One's advocacy work, the average residential customers have seen an average reduction of 31% on their monthly bills as a result of government initiatives.


image of the Ontario Grid Control CentreReliability

Hydro One and Anwaatin have agreed to pilot a project that will test Hydro One's first battery storage solution for reliability at Aroland First Nation. We expect to complete the pilot during the last quarter of 2019. If successful, we hope that this solution will improve the reliability of electricity in this First Nation community by more than 60%.

Environmental Management

photo of a field with transmission towers in the background


Hydro One is improving our long-term performance by limiting the environmental impact of our activities while simultaneously increasing the resiliency of our assets to better withstand the impact of climate change and extreme weather.

Hydro One's Approach to Climate Change

Climate change, including extreme weather, continues to impact our operations. Hydro One is strengthening our oversight and management of climate change issues to be more resilient and adaptable to change, as well as to mitigate climate risks.

In 2018, we introduced a new climate change policy, which outlines our commitment to increasing the resiliency of our assets to better withstand climate change and extreme weather and managing our carbon footprint.

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Environmental Stewardship

We manage our environmental programs through our combined Health, Safety and Environmental Management System (HSEMS). This system provides a framework to meet our compliance obligations and set performance targets and initiatives to manage our environmental risks. Our HSEMS aligns with industry-leading management and standards, including the ISO 14001:2015 International Standard.

To complement our HSEMS, we also have an Environmental Policy that we recently updated to better align with Hydro One’s purpose driven Core Values. Finally our approach is guided by our internal risk analysis, audit findings, regulatory changes and input from our Environment Committee. We currently have four targeted plans to address our top environmental risks:

photo illustration of the 2018 environmental scorecard

People and Potential

photo of two office employees


Our people are what make Hydro One strong and unique. We have some of the best and brightest people working to keep the lights on for our valued customers and communities. We are proud to deliver exceptional customer service and a safe and reliable source of electricity to homes and businesses in every community we serve.

photo illustration of the lost time injury graph
illustration of the annual injury rate graph

ELECTRICAL SAFETY EDUCATION

The Hazard Hamlet program promotes and encourages the safe use of electricity. Our field staff regularly visit elementary schools, community fairs and local events to discuss electrical safety and how to avoid electrical hazards at home and in the community. We visited 95 elementary schools in 45 communities in 2018. This year, we plan to visit approximately 100 elementary schools across the province to engage with students on electrical safety.

photo of a safety presentation to children 
photo illustration of the Executive Diversity graph

 
Hydro One values diversity at all levels of our organization. Our ambition is to become an industry leader, recognized for a culture of inclusion.

While representation of women in executive positions decreased slightly to 36.4%* during the year, the representation of visible minorities in executive positions increased to 15.6%* from 11.4%*.

illustration of the Hydro One Employee diversity graph

We are advancing our Indigenous hiring plans, achieving our goal of 2.4%* of our regular workforce who self-identified as Indigenous. We are also meeting our goal for summer student hiring, with 15%* of positions filled by Indigenous students. We continue to implement our multi-year Indigenous hiring plan to enhance future performance.

Our commitment to diversity extends to ensuring a gender-diverse Board of Directors. The current composition of our Board is 60% men and 40% women. As a signatory to the Catalyst Accord, we remain committed to maintaining at least 30% female board members and 30% female executives.

Supporting Stronger Communities

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Through our Community Relations approach, we strive to be the partner of choice for communities across the province. Through our work, we create jobs, economic development and prosperity in the cities and towns we serve. We work with our Indigenous and community partners to grow the economy and contribute to the lives of Ontarians.


 

infographic: $2.6M in community investment donations and sponsorships
infographic: $1.3M in Employee and pensioner donations
infographic: $1.3B injected into Ontario's economy
infographic: 85% of total procurement spent on Ontario suppliers

 

Indigenous Relations

Hydro One provides distribution services to 88 First Nations communities and manages transmission assets on 23 First Nations reserves. Last year, we made extensive progress on strengthening our relations with these Indigenous communities.
One of our focus areas was supporting Indigenous businesses in the province. We are proud that we spent approximately $39.4** million last year — Hydro One’s highest Indigenous spend ever. This represents a 63% increase in Indigenous procurement spending from 2017.

In recognition of our work, Hydro One was selected by the CCAB as an Indigenous Procurement Champion. This further solidifies Hydro One’s reputation as a company that provides procurement opportunities to qualified Indigenous businesses.



Image of the 2018 Indspire recipients

Indspire Partnership

We continue to expand our partnership with Indspire, a national Indigenous registered charity that invests in the education of Indigenous Peoples for the long-term benefit of these individuals, their families and communities and Canada. We are proud to have signed a four-year agreement with Indspire to expand and administer Hydro One’s Leonard S. (Tony) Mandamin Scholarship. Through a matching program that Indspire offers, we have been able to double the value of the scholarship offered and provide them to approximately 20 students a year. As part of these scholarships, we offer a potential paid work experience at Hydro One.

illustration of the Building Safe Communities logo

Building Safe Communities

Our Community Investment Program is committed to giving back to communities where we live and work. Through community donations and local sponsorships, we are helping to build safe communities. We support programs, events and initiatives that focus on safety training and safe play. However, we encourage you to submit a sponsorship application explaining how your program, event or initiative will make your communities safer. Learn more.

Building a Grid for the Future

photo of a transmission tower

        
At Hydro One, we make prudent investments to improve service reliability, support our customers and increase the efficiency of our business by continually looking for ways to increase productivity. We will continue to deploy new technology for the benefit of our customers, communities and shareholders across Ontario.


infographic: $5.2M invested in research and development
infographic: $20M in emerging technologies and distributed energy resources
infographic: $985M to sustain and develop transmission infrastructure
infographic: $577M to sustain and develop distribution infrastructure

In 2018, we completed one of the largest-ever station builds in company history, bringing the flagship Clarington Station into service on-time and under budget. We are supporting economic development in the Leamington area with a new transmission station to meet increasing demand from the greenhouse sector.


We continue to improve our ability to prepare and respond to significant weather events through:

  • our proactive storm preparation and emergency response processes;

  • improved vegetation management program;

  • capital upgrades to our spill containment infrastructure; and

  • the relocation of equipment from basements when required.


For more information, visit our system investments web page.
 

POWERING UP FOR THE FUTURE IN 3D VIRTUAL REALITY

Hydro One uses 3D technology to develop our engineering designs and scan our existing stations to capture and render them in three-dimensional models. In 2018, our team successfully tested new 3D engineering applications, which will result in more accurate design drawings and fewer project execution errors.

Engineers will use terrestrial 3D laser scans and models to create video animations showing virtual views of a current station or a new design build. They will then be able to widely share that content with others for site reference, scope development, training, design clarity, construction execution review, public affairs and customer communications.

photo of a 3D-rendered city 

Video Highlights

Connect with us

Your feedback is a key element of our reporting process because it helps us to address the issues that matter most to our stakeholders. For more information, please email us at Sustainability@HydroOne.com.

Jay Armitage
 

Director of Communications

Jay.Armitage@HydroOne.com

Omar Javed
 

Vice President, Investor Relations

Investor.Relations@HydroOne.com

 


Forward-looking statements

This report may contain “forward-looking information” within the meaning of applicable securities laws. Forward-looking information in this report is based on current expectations, estimates, forecasts and projections about Hydro One’s business and the industry in which Hydro One operates and includes beliefs of and assumptions made by management. Such statements include, but are not limited to, statements related to: Hydro One’s vision and strategy; delivering value; our sustainability strategy and program; the Ombudsman; customer service; expected impacts of new legislation replacing the Fair Hydro Plan; continuing and anticipated conservation programs; our rate applications, and resulting outcomes and impacts; expected actions to support customer accessibility and affordability; ongoing and planned projects and initiatives, including expected investments, results and timing; expected future capital expenditures, including anticipated timing, results and impacts; plans for renewal and modernization of infrastructure, and other actions to support reliability; environmental matters and management of such; Hydro One’s anticipated environmental and remediation plans; climate change and anticipated related risks; plans relating to GHG reporting; Hydro One’s expected plans relating to management and/or mitigation of climate risks and adaptation to change; environmental stewardship; planned and ongoing land and biodiversity initiatives and resource management programs; health and safety initiatives and commitments; diversity and inclusion at Hydro One; talent management and succession planning; collective agreements; innovation; expectations related to work force demographics; Hydro One’s community relations approach and its relationships with communities; Hydro One’s relationships with Indigenous Peoples and communities; Indigenous procurement; charitable giving, sponsorships and community partnerships; supply chain, procurement and economic contributions; anticipated changes to the electricity sector and expected impacts of such changes, including to Hydro One’s business; new legislation, regulatory initiatives and policy relating to the electricity industry and the expected impacts of such; Hydro One’s plans to adopt new technologies and make other investments to support reliability, increased demand, customer service, business efficiencies and transformation within the electricity sector; the Distributed Energy Resource Management System; implications of energy decentralization; expectations regarding load growth; actions to improve preparation and response to significant weather events; and expectations regarding the manner in which Hydro One will operate.

Words such as “expect,” “anticipate,” “intend,” “attempt,” “may,” “plan,” “will,” “can,” “believe,” “seek,” “estimate,” and variations of such words and similar expressions are intended to identify such forward-looking information. These statements are not guarantees of future performance or actions and involve assumptions and risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed, implied or forecasted in such forward-looking information. Some of the factors that could cause actual results or outcomes to differ materially from the results expressed, implied or forecasted by such forward-looking information, including some of the assumptions used in making such statements, are discussed more fully in Hydro One's filings with the securities regulatory authorities in Canada, which are available on SEDAR at www.sedar.com. Hydro One does not intend, and it disclaims any obligation, to update any forward-looking information, except as required by law.


About this report

Hydro One is working to address the sustainability issues that matter most to its customers, employees, communities and shareholders. Our 2018 Sustainability Report aims to provide a balanced view of our key successes and challenges in advancing our sustainability performance throughout the year.

Our report is organized around five key areas: Customers Come First, Environmental Management, People and Potential, Supporting Stronger Communities and Building a Grid for the Future. Hydro One’s reporting is guided by our 2018 materiality analysis, the Canadian Electricity Association’s Sustainable Electricity Company™ designation and the Global Reporting Initiative’s Sustainability Reporting Standards.

This report reflects our performance from January 1 to December 31, 2018. The information contained within is for Hydro One Limited (referred to as “Hydro One” throughout this report) and excludes Hydro One Remote Communities Inc. and Hydro One Telecom Inc., unless otherwise noted.3 All dollar amounts are in Canadian dollars.

Data points which include both Hydro One Remote Communities Inc. and Hydro One Telecom Inc. will be denoted with a ‘*’ symbol. Data points which include Hydro One Remote Communities Inc. will be denoted with a ‘**’ symbol.