NORTHLAND POWER INC. Powering
Possibility
2023 Sustainability Report
Powering
Possibility
At Northland, we're powering not only communities, but limitless possibilities. In this report, learn about our commitment to building a greener planet. Uncover the stories behind our sustainability initiatives and learn more about our dedication to minimizing environmental impact, demonstrating social responsibility and driving economic resilience. Our 2023 Sustainability Report is not just a collection of facts, it's a testament to our unwavering quest to build a better world for generations to come - where renewable energy unlocks a future of boundless possibilities.
Table of Contents
3 | About | 14 | Business Units |
3 | About This Report | 15 | Poised for Growth |
4 | About Northland | 16 | Northland's Business Units |
5 | Performance Highlights 2023 | 17 | Onshore Renewables |
6 | Ratings and Rankings | 18 | Oneida Energy Storage Project |
7 | Letter from Our CEO | 19 | Offshore Wind |
9 | Message from Our | 20 Hai Long Wind Farm | |
10 | Executive Chair | 21 | Efficient Natural Gas |
A History of Powering | and Utilities | ||
11 | Possibility | 22 | Thorold Generating |
Northland's Sustainability | Station Optimization | ||
Priorities |
Northland Power2023 Sustainability Report
- Governance
- Corporate Governance
- Our Board of Directors
- Responsibility for Sustainability
- Ethics and Accountability
- Risk Management
- Sustainable Supply Chain
- Environment
- Emissions Summary 2023
- Decarbonizing Our Value Chain
- Toward Net Zero
- Emissions We Help to Avoid
- Climate Risk Outlook
- Climate Opportunity Outlook
- Biodiversity
- Social
- Health, Safety and Environment
- Diversity, Inclusion and Belonging
- Talent Attraction and Development
- Investing in Leadership
- Tomorrow's Energy Leaders
- Indigenous Engagement
- Local Communities
2
About | Business Units | Governance | Environment | Social | Performance Index |
About
This Report
Reporting Boundaries
This report contains information and data covering January 1 to December 31, 2023, unless otherwise specified, with comparative information for the years 2019-2022. We measure Environmental, Social and Governance (ESG) key performance indicators (KPIs) using an operational control approach. We also measure specific KPIs related to health and safety, talent management and community for our project offices and sites. Consistent with the Greenhouse Gas (GHG) Protocol's definition, we define operations as being under our operational control where we have full authority to introduce and implement operating policies. Site data represents total facility performance, not only
our financial share of the operation. The report's information and data account for the direct impacts of all material components of Northland's global activities, except where otherwise noted. All amounts are in Canadian dollars (CAD) unless otherwise specified.
Frameworks Used
This report has been prepared with reference to the Global Reporting Initiative (GRI) Universal Standards, and as noted under "Reporting Boundaries," covers the full 2023 calendar year. We align with global best practice standards and frameworks, including those of the GHG Protocol and the Electric Utilities & Power Generators
standard from the Sustainability Accounting Standards Board (SASB) version 2023-12. We also follow the recommendations of the Taskforce for Climate-Related Financial Disclosures (TCFD) and respond to the CDP's climate change questionnaire.
As signatories of the United Nations Global Compact (UNGC), we commit to applying its
10 principles in the areas of human rights, labour, environment and anti-corruption in our strategy, culture and everyday business. We endorse and have signed on to Equal by 30.
A complete list of applicable KPIs is available in the Northland 2023 ESG Performance Data & GRI Index, and can also be accessed by clicking Performance Index in the navigation menu.
Accessibility
This report complies with the Accessibility for Ontarians with Disabilities Act (AODA) standards.
Audience
We have drafted this report to meet the needs of our many stakeholders, with a focus on investors, analysts and rating agencies interested in our ESG policies, programs, practices and performance. For additional information, please see the Sustainabilitysection of our website.
Assurance
Northland received independent third-party limited assurance, conducted by EY, over the following material KPIs for 2023:
- Scope 1+2 GHG emissions
- Total electricity generated
- GHG emissions intensity
- Total recordable incident rate
EY provided limited assurance on the allocation of Northland's Green Financing proceeds in line with the Use of Proceeds described in our Green Financing Framework. The assurance statement can be found here. Our Manager of Global ESG Strategy and Reporting managed the assurance engagement, with oversight and executive management from our Chief Administrative & Legal Officer (CALO) and Corporate Secretary.
Significant Changes
and Restatements
There are no significant changes or restatements of information from previous reporting periods.
Related Disclosures
- 2023 CDP Climate Change
- 2023 ESG Performance Data & GRI Index
- 2023 Annual Information Form ("AIF")
- 2023 Annual Report
- 2024 Investor Day Presentation
- 2024 Management Information Circular (MIC)
- Northland Power's Green Financing Framework
- Northland Policies
Northland Power2023 Sustainability Report | GRI 2-2,2-3,2-4 | 3 |
About
Northland
Northland is a global power producer. We are dedicated to helping the global energy transition by producing electricity from clean, renewable resources. Founded in 1987, Northland has a long history of developing, building, owning and operating clean and green power infrastructure assets. We own and manage a diversified generation mix, including offshore wind (in which we are a global leader), onshore renewables and energy storage, and efficient natural gas. We also supply energy through a regulated utility. Northland owns or has an economic interest in 3.4 GW of gross (2.9 GW net) operating capacity. We also have a strong pipeline of projects in various stages
of development totalling over 12 GW of potential capacity, including 2.4 GW already under construction. We have six countries with active development. Please see page 16for more information on our three business units.
Learn more about our projects here.
Operating
Early-Stage Development
Mid/Late-Stage Development/Construction
Headquarters
About | Business Units | Governance | Environment | Social | Performance Index |
Scotland: | ||||
Canada: | Development: 2,340 MW | |||
Operating: 1,246 MW | ||||
Construction: 250 MW | Toronto, ON: | Europe: | ||
Headquarters | ||||
Operating: 1,184 MW | South Korea: | |||
Construction: 1,140 MW | ||||
Development: 3,450 MW | ||||
U.S.: | Spain: | |||
Operating: 220 MW | ||||
Operating: 559 MW | Taiwan: | |||
Construction: 1,022 MW
Mexico:
Operating: 130 MW
Colombia:
Electric Utility
Operating: 16 MW
Northland Power2023 Sustainability Report | GRI 2-2,2-3,2-4 | 4 |
Performance
Highlights 2023
About | Business Units | Governance | Environment | Social | Performance Index |
31%
reduction
Target: 65% reduction of GHG emissions intensity (Scope 1+2 location-based tCO₂e/MWh) by 2030 (from a 2019 baseline)
3.4 GW
operating capacity
Target: additional 5.8 GW of growth through 2027
1,362,040 tCO2e
Scope 1 + 2 (location-based) GHG emissions
10,380 GWh
Total electricity generated
2,568,618 tCO2e
Avoided emissions
$12.8 billion
New green financings
0.131 tCO2e/MWh | 1,344 | ||||||||
38% | 40% | GHG emissions intensity | Employees | ||||||
0.52 | Scope 3 | ||||||||
women | women | ||||||||
Total recordable incident rate | reporting | ||||||||
Target: 30% women on | Target: 30% women on the | Assessed 7 categories of Scope 3 | |||||||
Executive Leadership Team | Board of Directors | ||||||||
emissions, working toward our | |||||||||
2040 net zero target | |||||||||
Progress | Target | This metric has been assured to a limited level by EY. Refer to our Performance Index for further detail. | |||||||
Northland Power2023 Sustainability Report | 5 |
Ratings and
Rankings
About | Business Units | Governance | Environment | Social | Performance Index |
B
CDP Climate
B-
CDP Supplier
Engagement
Report
AA
MSCI
25.5
Sustainalytics ESG Risk Rating (Comprehensive)
C+
ISS ESG
55
S&P Global CSA
Awards & Recognition
• 9th on Best 50 Corporate Citizens | Hai Long Offshore Wind Project: | Baltic Power Offshore Wind Project: |
Corporate Knights | • Best Infrastructure Deal (North Asia) | • Europe Deal of the Year |
• Best Greater Toronto Employer 2024 | ||
• Best Project Finance Deal (North Asia) | PFI Awards | |
(based on 2023 data) | • Renewable Energy Deal of the Year, | |
• 90 Top Businesses in Canada for | • Best Sustainable Finance Deal (North Asia) | |
Offshore Wind, Europe | ||
Finance Asia Achievement Awards | ||
Executive Gender Balance | IJ Global Awards 2023 | |
"Women Lead Here," The Globe & Mail | • Renewable Energy Deal of the Year, | |
(based on 2023 data) | Offshore Wind APAC | |
IJ Global Awards 2023 | ||
Northland Power2023 Sustainability Report | 6 |
About | Business Units | Governance | Environment | Social | Performance Index |
Letter from
Our CEO
As I look back over the past year, I'm proud of our teams around the world for their resilience, commitment and relentless determination to push our business forward amidst challenging market dynamics.
Reflected in our values and reinforced by our people, 2023 required us to be strategic and deliberate in our decision-making and focused on our priorities and goals.
Despite industry headwinds, our teams continued to drive performance and delivered important milestones for Northland, the industry and key markets globally. Our achievements laid the groundwork to support energy transition efforts for the long-term and further highlighted the importance of ensuring our environmental, social and governance priorities are aligned and executed responsibly across our business.
At the heart of Northland is our belief in powering a better world for generations to come. As experienced developers, we approach ESG through the lens of ongoing progress and commit to established priorities around climate change mitigation, biodiversity and ecosystem management, human rights and sustainable supply chain and long-term business sustainability.
Our commitment to decarbonizing the planet is core to our DNA, and our projects unlock our greatest potential to move the needle on sustainability. In 2023, we delivered another 300 MW into operations, including at our Bluestone (112 MW) and Ball Hill (108 MW) facilities in the United States and our La Lucha solar facility in Mexico. Last year, we also initiated the largest construction program in Northland's history after successfully securing $15 billion in project financing and reaching financial close on two major offshore wind projects, Hai Long (1.0 GW) in Taiwan and Baltic Power (1.1 GW) in Poland, as well as our first battery energy storage project, Oneida (250 MW), in Canada.
The scale and significance of these three projects will directly impact our work in climate mitigation once they come online. Collectively, these projects represent 2.4 GW of added generating capacity and will move the needle on decarbonization targets in their respective regions. Together, Hai Long and Baltic Power will have the capacity to provide more than 2.5 million households with clean energy and avoid ~5 million tonnes of CO2 per year. Oneida, with its capacity to save and store energy, will enhance grid reliability and affordability in the growing region of Southern Ontario and reduce greenhouse gas emissions by 1.2 million tonnes over the project's lifespan. All three can be categorized as first-of-their-kind for various reasons and act as the blueprint for projects to follow in their footsteps in these regions.
At the corporate level, last year we set and committed to important targets to reach net zero emissions by 2040 and further progress our Diversity and Inclusion metrics related to gender, race and pay parity; and we made conscious efforts to raise the bar on our corporate Health and Safety programs - establishing new benchmarks for success and initiatives to support these goals.
Mike Crawley,
President and Chief Executive Officer
Northland Power2023 Sustainability Report | GRI 2-22 | 7 |
About | Business Units | Governance | Environment | Social | Performance Index |
We prioritized our people, beginning the year in our new business structure organized by key generating technologies and designed to further support cross- collaboration and knowledge sharing. We opened a new refreshed corporate head office in Canada that brought with it greater opportunities for in- person interaction and collaboration, and through this, we've been able to drive a more engaged culture among Northlanders. Globally, our focus on attracting and retaining top talent in the sector remained strong. We invested in new development opportunities for people managers, continued existing programs focused on enhancing the well- being of Northlanders and introduced new training around important topics like mental health.
In our key markets, we made continued and conscious efforts to work in partnership, embarking on new relationships with industry leaders and continuing to look for meaningful ways to support and sustain local communities and the economies in which we operate. We created pathways to jobs, supported Indigenous engagement and involvement in our projects, and worked to establish deeper roots, trust and integrity with local stakeholders.
The following pages of this report tell a larger story of our ESG priorities and all that we have worked to achieve this past year. To Northlanders globally - these stories and results are because of your hard work and continued commitment. A heartfelt thank you.
Success in this sector isn't measured by one year, one program or even a handful of targets. It is instead measured by the ability to set into motion real, sustainable and long-lasting change. Incrementally, good processes become best practices and it's then that we begin to see tangible improvements for greater impact.
Now, with our three major projects in construction, we enter a new chapter in our business - one focused on execution and guided by a set of strategic business priorities established by senior management.
2024 will be another defining year for Northland. As I transition out of the role of CEO, one I've held for six years, I look forward to working closely alongside John Brace, our Chairman of the Board and Northland's previous CEO, who is now stepping into the role of Executive Chair. John will bridge the
gap between my role and our future CEO to carry forward our commitments, priorities and long-term strategy. This is an opportunity to strengthen our already solid foundation.
Each year brings with it change, but one thing remains true - the demand for renewable power is here to stay. With positive trends demonstrating continued and accelerating demand for renewable power and growing capacity from investors, governments and corporations, there are exciting opportunities ahead of us. As our sector evolves and our business matures, we remain curious, humble and heads down on the task of building a net zero future. Together, we're powering possibilities.
On behalf of Northland, I thank you for your ongoing support and confidence. I am excited about the next chapter in our story.
Sincerely,
Mike Crawley,
President and Chief Executive Officer
Nordsee One German North Sea
"Our commitment to decarbonizing the planet is core to our DNA, and our projects unlock our greatest potential to move the needle on sustainability."
Mike Crawley,
President and Chief Executive Officer
Northland Power2023 Sustainability Report | GRI 2-22 | 8 |
About | Business Units | Governance | Environment | Social | Performance Index |
Message from
Our Executive Chair
"Northland's ESG priorities are synonymous with our company's purpose to build a carbon-neutral world. Overseen by the Board of Directors and led by the senior executive team, Northland's ESG strategy is structured to draw insight and expertise from across the organization, while remaining closely aligned with the Company's strategic objectives. In 2023, we narrowed our focus and established new priorities, underpinned by risk mitigation and financial responsibility, that will enable us to push the business forward responsibly. Now, as Northland executes on 2.4 GW of projects in construction, these efforts will make significant contributions towards our commitment to minimize environmental impact, uphold social responsibility and drive economic resilience for the business. We take our responsibility to protect our planet, our people and our environment seriously, and hold ourselves accountable through the work that we do."
John Brace,
Executive Chair
Grand Bend
Ontario, Canada
Northland Power2023 Sustainability Report | GRI 2-22 | 9 |
About | Business Units | Governance | Environment | Social | Performance Index |
A History of
Powering Possibility
Northland has been supporting cleaner power generation for more than 35 years while embracing innovative technology and earning a reputation for safety and responsible operations.
1987
Northland is founded by Jim Temerty, becoming one of Canada's first independent green energy producers.
1990s
Supporting Canada's transition away from coal with biomass and natural gas.
1997
Northland (TSX : NPI) shares begin trading on the Toronto Stock Exchange.
2000s
Diversification of project portfolio to include solar and wind.
2020 | 2016 | 2015 | 2014 | 2010s | ||||||||||
Acquisition of Colombian | Expansion into Asia. Laying | Expansion into German offshore | Northland is the first Canadian | Northland develops | ||||||||||
regulated utility (EBSA). | foundations for projects in | market with Nordsee One | company in the European | partnerships with First Nations | ||||||||||
Taiwan and Korea. | and Deutsche Bucht offshore | offshore wind market, with our | on onshore wind and solar | |||||||||||
wind projects. | Gemini project becoming the | projects in Ontario. | ||||||||||||
largest project financing and the | ||||||||||||||
second-largest offshore wind | ||||||||||||||
project globally. | ||||||||||||||
2021
Northland Board includes 30% women directors, since increased to 40%.
Construction commences on first development projects in the United States.
2022
Delivering clean energy to more than 1 million homes globally.
2023
Northland achieves financial close on Hai Long and Baltic Power offshore wind projects.
Bluestone and Ball Hill onshore wind farms in New York State commence operations.
2024
Anticipating the addition of further Board diversity, considering dimensions of identity other than gender.
Focused on execution of the construction on Hai Long, Baltic Power and Oneida projects.
Northland Power2023 Sustainability Report | 10 |
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Northland Power Inc. published this content on 29 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 April 2024 11:18:03 UTC.
