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2019 Sustainability Report
For the
Possibilities
of Tomorrow
Our 2019 Sustainability Report provides a balanced account of
our environmental, social and governance (ESG) performance
and is intended to give stakeholders a better understanding of
how Hydro One manages the opportunities and challenges
associated with our business.
Our report addresses many of the sustainability elements included
in Hydro One’s new corporate strategy. The report starts with
People and Potential as our talent supports our strategy and
then has the following section structure: Plan, Design and Build
a Grid for the Future, Be the Safest and Most Efficient Utility,
Be a Trusted Partner, Advocate for Our Customers, and
Innovate and Grow the Business.
Hydro One is committed to producing an annual sustainability
update and to continuously increase the transparency and
accountability of our ESG disclosures. We are guided in
our reporting by the Global Reporting Initiative (GRI) Core
Sustainability Reporting Standards
1
; the Sustainability Accounting
Standards Board (SASB)
2
; the Canadian Electricity Association’s
(CEA) Sustainable Electricity Company™
3
designation; and our
most recent (2018) sustainability materiality assessment.
As part of this report, the greenhouse gas (GHG) emissions
data for 2019 has been verified by GHD Limited.
4
This report reflects our performance from January 1 to
December 31, 2019. The information contained within this
report is for Hydro One Limited. In instances where data is only
available for Hydro One Networks Inc. (Hydro One Networks),
it will be noted with an asterisk (*). All financial figures are
reported in Canadian dollars.
Hydro One Limited (referred to as “Hydro
One” or “the Company”) is committed
to creating a brighter, sustainable future
for all Ontarians. Through our business,
we are growing and evolving to meet the
expectations of our customers, employees,
communities, regulator, Indigenous peoples
and shareholders.
ABOUT THIS REPORT
1. The GRI core sustainability reporting standards are global standards for sustainability
reporting. The GRI index can be found in the appendix.
2. SASB is an independent non-profit organization, whose mission is to develop and
disseminate sustainability accounting standards that help public corporations disclose
material, organization decision-useful information to investors. The SASB table can be
found in the appendix.
3. Sustainable Electricity Company™ brand is a designation established by the CEA, based
primarily on ISO 26000 Guidance on Social Responsibility.
4. The letter of assurance from GHD Limited can be found in the appendix.
3
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
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 mission and strategy, including our approach to
sustainability and stakeholder engagement; statements about planning,
designing, and building a grid for the future, including statements
about environmental impacts of and on our operations, maintaining
and improving reliability, investments in technology, infrastructure, and
facilities, meeting future demands, actions with respect to our greenhouse
gases and fleet, climate change, our environmental stewardship activities,
and advancing our environmental programs; statements related to
health, safety and efficiency, including environmental management
and stewardship programs, improving our safety culture; COVID-19,
and increasing efficiency and productivity; statements related to our
relationships with Indigenous customers and communities, including
actions to strengthen our Indigenous partnerships, procurement and
employment opportunities, and building and investing in community
partnerships, partnerships with government, and other industry partners;
statements about supply chain initiatives; statements about advocating
for our customers, including customer connections, relationships with
government and industry and supporting local economic growth,
supporting customer accessibility and affordability; statements about
growth, including Energy Impact Partners and the Ivy Charging Network;
statements about charitable giving; statements about building the talent
and capacity of our employees; statements about collective bargaining
and working collaboratively with our unions; and statements about
diversity and inclusion.
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.
4
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
49
INNOVATE AND
GROW THE BUSINESS
5
6
10
14
20
27
32
41
49
53
Message from our President and Chief
Executive Officer (CEO)
Hydro One At-A-Glance
Our Approach to Sustainability
People and Potential
Plan, Design and Build a Grid for the Future
Be the Safest and Most Efficient Utility
Be a Trusted Partner
Advocate for Our Customers
Innovate and Grow the Business
Appendices (ESG performance table, SASB
Chart, GRI Index, GHD Letter of Assurance)
Table of Contents
41
ADVOCATE FOR
OUR CUSTOMERS
20
PLAN, DESIGN &
BUILD A GRID FOR
THE FUTURE
32
BE A TRUSTED
PARTNER
14
PEOPLE AND
POTENTIAL
27
BE THE SAFEST
AND MOST
EFFICIENT UTILITY
10
OUR APPROACH TO
SUSTAINABILITY
5
Hydro One Limited
Sustainability Report 2019
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Message from Our
President and CEO
Message from Our
President and CEO
The events of 2020 have put a
spotlight on the collective responsibility
that governments, companies and
individuals share in building a more
sustainable world with equal, inclusive
opportunities for people of all races,
orientations and backgrounds. During
this historic moment, corporations will
be evaluated for their commitment and
contributions to helping customers and
communities, standing up for employee
equity and inclusion, and responsibly
adapting to a changing world.
Our vision of a better and brighter future for
all and our mission to energize life for people
and communities through a network built for the
possibilities of tomorrow are more important
now than ever. Our greater purpose – to
energize life – will be guided by our core values
and the actions we take now and into the future.
As an essential business, we carry a great
responsibility in the critical role we play in
powering the province. At Hydro One, we
are doing everything we can to protect our
employees, energize life in Ontario and stand
up for customers and communities.
When I took the helm a little more than a year
ago, Hydro One had undergone a period of
significant change and challenge. Since then, a
clear vision and Ontario-focused strategy have
provided the direction and stability to emerge
from this challenging time stronger and more
committed to being customer-driven, sustainable,
safe and efficient. An underpinning to this is our
workplace diversity and inclusion policy which
reinforces our commitment to providing an
equitable and inclusive work environment that
celebrates diversity as a strength.
I am proud of our progress toward becoming
a sustainability leader in the utilities sector. By
embedding sustainability into our business
planning and decision-making, we are focusing
on what matters most – looking out for the
future of our customers, our people, our industry,
Ontarians and our planet.
We took action in 2019 to improve safety,
reliability, efficiency, customer service and
our relationships with Indigenous communities,
industry and government – these actions have
prepared us for the unprecedented situation we
are navigating today.
Our sustainability program focuses on reducing
the impacts of climate change, building strong
partnerships with Indigenous communities and
diversifying our talent to better represent the
communities where we live and work. Through
our ongoing efforts, I am proud to say we
achieved our re-designation as a sustainable
electricity company from the Canadian
Electricity Association.
Last year, we were recognized with an award
for our contributions to the Indigenous economy
by increasing our procurement spend with
Indigenous businesses to $41.3 million. We also
completed a large-scale Indigenous-owned
transmission project, the Niagara Reinforcement
Line, with our partners, the Six Nations of the
Grand River Development Corporation and the
Mississaugas of the Credit First Nation.
Through our community investment program,
Building Safe Communities, we trained over
200,000 young people to play safe or save a life
and provided 125 donations and sponsorships
to over 70 community organizations.
Our commitment to people and building a
positive and inclusive workplace earned us
the distinction of appearing on the Forbes
Best Employer list for the fifth consecutive year.
Through the initiative of our highly engaged
employees we were also recognized with a
workplace diversity and inclusion award for our
Employee Resource Groups. We are proud of this
achievement, but know that we have work to do
in addressing systemic biases including racism.
We are committed to listening, understanding and
examining our own assumptions in order to take
action to promote racial equality.
While Hydro One’s reportable injuries have
declined to industry-leading rates, we have
seen an increase in serious injuries. In March,
we tragically lost one of our colleagues who
sustained a fatal injury during a forestry incident
in the Minden area. This is not acceptable to
me and I personally will not rest until we have
eliminated serious injuries from our organization.
Safety and social responsibility are now in sharp
focus around the world. Since the pandemic
began, we adapted quickly. We’ve found
new ways to collaborate, we’ve developed
innovative solutions and we’re more in tune
than ever with the needs of our customers and
communities. Once this chapter is over, we will
be safer, more flexible and more efficient.
Our Company has a century-long legacy
of solving challenging problems through
ingenuity, determination, and resilience. We
will emerge from this situation a stronger and
more sustainable Company, and we will do it
in partnership with our employees, customers,
communities, Indigenous peoples, governments
and industry.
Mark Poweska, (he/him)
President and CEO
“Our sustainability program focuses
on reducing the impacts of climate
change, building strong partnerships
with Indigenous communities and
diversifying our talent to better
represent the communities where we
live and work.”
Mark Poweska
President & CEO
6
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Hydro One
At-A-Glance
Our Sustainability Snapshot Hydro One’s Business Network Our Corporate Mission & Strategy Highlights
As a transmission and distribution company,
we are focused on three priority areas where
we believe we can make the greatest impact.
We are focusing on the impact of climate change
on our business and on how we can reduce
our environmental footprint; strengthening our
Indigenous and community partnerships in
order to build socio-economic capacity across
the province; and diversifying our talent across
our workforce.
We will publicly share our progress towards
achieving these goals in our annual
sustainability update.
Our Sustainability
Snapshot
Our vision of a better and brighter
future for all guides our sustainability
priorities. Through the identification
of our key sustainability issues, we
understand what matters most to our
business, stakeholders and partners.
Our Role in Ontario’s Electricity System
Our provincial transmission and distribution
system safely and reliably serves communities
throughout Ontario. Hydro One’s transmission
business operates and maintains most of the
high-voltage transmission system that carries
electricity from generators to local electric
utilities or large industrial customers, such as
manufacturers. Through our distribution business,
we also operate and maintain low-voltage
distribution systems that carry electricity from
transformer stations to distribution stations, to
pole-top transformers through power lines, and
into homes and businesses.
A mix of private companies and government-
owned entities generate power for all of
Ontario and the necessary sources of power
are determined by the Independent Electricity
System Operator. The clean power Hydro One
delivers over our transmission and distribution
lines comes from approximately 96% zero-
carbon emitting sources.
5
5. As determined by the Canadian Energy Regulator, Ontario’s electricity mix has increased from 90% to 96% zero-carbon
emitting sources over the period 2014–2018.
www.statista.com/statistics/482978/ontario-electricity-production-by-energy-source
www.cer-rec.gc.ca/nrg/ntgrtd/mrkt/nrgsstmprfls/on-eng.html
Our Role as a Transmission and Distribution Company
Transmission
System
Distribution
System
Transformer
(increased to
higher voltage)
Electricity
Generation
Sources
Industrial, Commercial
and Residential
Customers
Transformer
(decreased to
medium voltage)
Transformer
(decreased to
lower voltage)
Transmission Distribution
Climate Change and Extreme
Weather
• Establish a GHG reduction target
• Continue to include climate
change considerations into grid
resiliency decisions and plans
Our Sustainability
Priorities
Diversifying Talent
• Set broader Diversity and
Inclusion hiring goals
• Eliminate unconscious bias in the
workplace through programs that
address systemic discrimination
Indigenous and Community
Partnerships
• Continue to build the Indigenous
economy through partnerships
• Build safe communities by
supporting youth initiatives that
promote safety training and
safe play
7
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Hydro One
At-A-Glance
Hydro One’s
Business Network
Hydro One Limited, through its wholly-
owned subsidiaries, is Ontario’s largest
electricity transmission and distribution
provider with approximately 1.4 million
valued customers, approximately
$27.1 billion in assets as of December 31,
2019, and annual revenues in 2019 of
approximately $6.5 billion. Our team
of approximately 8,800 skilled and
dedicated employees proudly builds and
maintains a safe and reliable electricity
system, which is essential to supporting
strong and successful communities. In
2019, Hydro One invested approximately
$1.7 billion in its transmission and
distribution networks and supported the
economy through buying approximately
$1.5 billion of goods and services.
CORPORATE PROFILE
6. Based on revenue approved by the Ontario Energy Board (OEB).
7. Based on customers (per the OEB yearbook).
Our Unregulated Business
Our unregulated business consists principally
of our telecommunications business, Hydro
One Telecom Inc. (Telecom), which provides
telecommunications support for Hydro One’s
transmission and distribution businesses as well
as other business customers. Telecom offers
comprehensive communications and information
technology services and solutions (cloud
services, managed services and security-based
services) that extend beyond the core fibre and
connectivity services it has traditionally offered.
Our other segment also includes corporate
activities such as the deferred tax assets which
arose on the transition from the provincial
payment in lieu of tax regime to the federal
tax regime at the time of the Company’s
initial public offering in 2015 and reflects the
revaluation of the tax basis of Hydro One’s
assets to fair market value.
Our Regulated Business
Transmission
Our transmission system transmits high-voltage
electricity from nuclear, hydroelectric, natural gas,
wind and solar sources to distribution companies
and industrial customers across Ontario. Our
system accounts for approximately 98%
6
of
Ontario’s transmission capacity with 30,122
circuit kilometres of high-voltage transmission
lines. We also own and operate 25 cross-border
interconnections with neighbouring provinces
and the United States of America, which allow
electricity to flow into and out of Ontario.
Distribution
Our distribution system is the largest
7
in Ontario.
It consists of 123,422 circuit kilometres of primary
low-voltage power lines serving approximately
1.4 million customers, mostly in rural areas. As
well, Hydro One Remote Communities serves
customers in one grid-connected and 21 off-grid
communities in Ontario’s Far North.
For the year ended December 31 2019, Hydro
One’s transmission and distribution business
segments accounted for 99% of the Company’s
total revenues, net of purchased power.
Our Sustainability Snapshot Hydro One’s Business Network Our Corporate Mission & Strategy Highlights
8
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Hydro One
At-A-Glance
STRATEGIC PRIORITY AREAS OF FOCUS
Plan, Design and Build
a Grid for the Future
• Plan, design and build a reliable grid for today and tomorrow and embrace new technology, such as
distributed energy resources, to enable customer choice.
• Increase focus on grid resilience in order to reduce the frequency and duration of outages.
• Consider climate change and sustainability factors in our planning to increase resilience and lower our
environmental footprint.
Be The Safest and Most
Efficient Utility
• Transform and improve our safety culture through robust safety analytics and grass-roots
employee engagement.
• Empower field operation teams to drive efficiency, productivity and reliability.
• Focus on efficient capital delivery to support our ongoing growing work program.
Be a Trusted Partner • Build and grow relationships with Indigenous peoples, government and industry partners.
• Proactively address community concerns and establish strong partnerships with our customers through
local investment and economic development for the benefit of all Ontarians.
Advocate for Our Customers
and Help Them Make
Informed Decisions
• Enrich the customer experience by acting as their trusted energy advisor, helping them save money, and
offering new products and services to meet their energy needs.
• Help our customers make informed decisions with deeper insights and leverage our position as
energy experts.
Innovate and Grow
the Business
• Invest responsibly in our core transmission and distribution business.
• Pursue incremental regulated and unregulated business opportunities through innovation and our focused
presence in Ontario.
Our mission is to energize life for
people and communities through a
network built for the possibilities of
tomorrow. We are mindful that our
decisions today are key to creating a
more sustainable tomorrow.
Our Code of Business Conduct and supporting
policies guide the decisions and actions of
Hydro One’s employees, officers and directors.
For more information on these policies and
programs, please visit our website.
Hydro One’s corporate strategy will help us
attain our mission while making a positive
impact. Our corporate strategy is expected to
enhance shareholder value by delivering an
improved safety culture, a more reliable grid
for our customers, high customer satisfaction,
sustainable business practices and a lower
environmental footprint.
Our Corporate
Mission & Strategy
Our Sustainability Snapshot Hydro One’s Business Network Our Corporate Mission & Strategy Highlights
9
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Hydro One
At-A-Glance
Highlights
Hydro One employees
demonstrate sustainability
leadership in the workplace,
helping to ensure we operate
in a safe, socially and
environmentally responsible
manner. Here are some of the
awards and recognition our
teams received in 2019:
Best Employer, 5th Year
For the fifth consecutive year,
Hydro One has been recognized
by Forbes in its list of Canada’s
Best Employers for 2020,
underscoring our commitment to
creating an engaged workforce
and positive working environment.
Best Corporate Citizen
For the fifth consecutive year,
Corporate Knights has included
Hydro One on its list of Canada’s
best 50 corporate citizens,
ranking us 16 in 2019.
Leadership in Indigenous
Procurement
Hydro One received the CEA’s
2019 Continuous Performance
Improvement Award in recognition
of our leadership in providing
Indigenous procurement
opportunities in a mutually
respectful manner.
Top Customer Service
The Ontario Energy Association
(OEA) awarded Hydro One
Networks the 2019 OEA Customer
Service Award.
Diversity and Inclusion
Champions
We received the Workplace
Diversity and Inclusion Award
from Electricity Human Resources
Canada in recognition of our eight
Employee Resource Groups. These
voluntary groups of employees
with shared sets of interests,
experiences and perspectives help
promote the values of Hydro One.
Award Recognition
Helped customers save the
amount of power 20,500
households use in a year
– read more in Accessibility
and Affordability.
Environment
Social
Governance
96%
of the energy we transmit and distribute
comes from zero-carbon emitting sources.
See Climate Change.
Achieved our Catalyst Accord
commitments of gender
diversity and launched
a diversity and inclusion
council – for more information
see Diversity and Inclusion.
Established a safety
improvement team.
$41.3 million
Increased our procurement spending with
Indigenous businesses to $41.3 million –
our highest-ever annual Indigenous spend.
More in Indigenous Partnerships.
See Health and Safety. Read our Assurance Statement.
Increased transparency
in our ESG reporting.
Established a corporate-wide
sustainability committee led by
senior management – for more
information see Our Approach
to Sustainability.
Received our Sustainable Electricity
Company brand re-designation from
the Canadian Electricity Association.
Approximately
1.5 million
fewer paper bills mailed out through the
success of our e-billing program – read
more in Customer Service.
Our Sustainability Snapshot Hydro One’s Business Network Our Corporate Mission & Strategy Highlights
10
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Our Approach
to Sustainability
Our
Approach to
Sustainability
At Hydro One, we understand that our long-term
performance depends on incorporating sustainability
into all aspects of our business. For us, sustainability
means that we are committed to operating safely in
an environmentally and socially responsible manner
and to partnering with our customers and community
stakeholders to build a brighter future for all.
In 2020, we are focusing on the impact of climate
change on our business and on how we can reduce
our environmental footprint; strengthening our
Indigenous and community partnerships in order to
build socio-economic capacity across the province;
and diversifying our talent across our workforce.
These priority areas will be reviewed annually and
updated as required.
11
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Our Approach
to Sustainability
Management Approach and Governance Identification of Key Sustainability Issues Stakeholder Engagement
Management Approach
and Governance
Board-level Sustainability Oversight
Hydro One’s Board of Directors has oversight of
sustainability through its strong governance and
committee structure. The Chief Corporate Affairs
and Customer Care Officer provides quarterly
status updates to the Governance Committee,
which oversees management’s implementation
of Hydro One’s sustainability strategy,
framework, reporting and communications.
The Health, Safety, Environmental and
Indigenous Peoples (HSEIP) Committee oversees
the effective occupational health, safety and
environmental policies and programs at Hydro
One and our relationship with Indigenous
communities. The HSEIP Committee reviews
significant health, safety and environmental
incidents, including regulatory inspections
and changes to the regulatory landscape. It
also reviews climate change matters and is
responsible for reviewing Hydro One’s climate
change strategy.
The Human Resources Committee oversees
Hydro One’s diversity and inclusion program
and initiatives and our wellness programs,
including our support for employees’
mental health.
Management-level Sustainability Oversight
Oversight and accountability at the
management level resides with the Chief
Corporate Affairs and Customer Care Officer,
while leadership is provided by the executives
responsible for key functional areas. Early
in 2020, a new sustainability team was
established, reporting directly to the Chief
Corporate Affairs and Customer Care Officer.
The team is responsible for the development
and deployment of Hydro One’s sustainability
strategy and program. The team works closely
with Hydro One’s sustainability committee, led
by senior level management, which provides
strategic advice and perspectives on current,
emerging and key sustainability issues.
Hydro One’s disclosure committee reviews and
approves the accurate disclosure and reporting
of our sustainability practices and performance,
as well as the timely, accurate and complete
disclosure of developments that have a material
impact on the Company.
Ombudsman
The Office of the Hydro One Ombudsman
provides a confidential, impartial and
independent review of complaints that could
not otherwise be resolved by the Company.
The Ombudsman reports directly to the Board
(through its Governance Committee) to ensure
independence. For more information, please
visit the Office of the Hydro One Ombudsman
at www.HydroOneOmbudsman.com
12
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Our Approach
to Sustainability
Hydro One conducted a formal process in 2018
to identify the key sustainability issues that matter
most to our business, stakeholders and partners.
Through this assessment, ten priority issues
were identified as important to Hydro One’s
business and appear in the upper right corner
of the matrix. These issues form the basis for our
sustainability disclosures and are reflected in this
report. In previous years, we had a stand-alone
section on business model pressures – however,
in this year’s report, this was incorporated into
individual sections.
Identification of Key
Sustainability Issues
Plan, design, and build a grid for
the future
Be the safest and most efficient utility
People and potential
Advocate for our customers
Be a trusted partner
Innovate and grow the business
Stakeholder Interest
Business Impact
Customer service
Reliability
Accessibility and
affordability
Air emissions
Resource
management
Contaminated lands
Climate change
and extreme events
Land and
biodiversity
Public health and safety
Talent
Health
and safety
Governance
Business model
pressures
Infrastructure
renewal and
modernization
Community
engagement
Supply chain
Indigenous
community
engagement
High
HighLow
Management Approach and Governance Identification of Key Sustainability Issues Stakeholder Engagement
A Matrix of Hydro One’s Key Sustainability Issues
13
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Our Approach
to Sustainability
Management Approach and Governance Identification of Key Sustainability Issues Stakeholder Engagement
Stakeholder
Engagement
We have an unwavering commitment
to focus on what really matters to our
stakeholders: exceptional customer
service, safety, efficiency and
sustainability.
We strive to be a trusted partner to all
stakeholders, including customers, investors,
government, Indigenous communities and
the Ontario public. We understand that we
must continuously earn their trust by being a
reliable partner and good neighbour, and by
being inclusive, open and transparent in our
engagements.
We work to enhance our relationships with
industry and government and to advocate for
our customers on matters of affordability and
innovation so they have flexibility and choice.
As a trusted leader in the energy sector, we seek
to advance energy-related innovations and
policies that benefit all Ontarians.
The table describes some of the ways that we
work with our stakeholders and partners.
OUR KEY EXTERNAL
STAKEHOLDERS HOW WE ENGAGE WITH THEM
Customers
• Regular satisfaction surveys and focus groups
• Account executives and call-centre agents
• Local engagement programs
• Hosting an annual large customer conference
• Monthly newsletter with energy-saving tips and advice
• High usage and outage alerts and toll-free numbers and direct mail
Investors
• Press releases, quarterly reports, quarterly investor and financial
media calls, annual report
• Annual general meetings of shareholders
• Investor events including conference attendance, Investor Day and
non-deal roadshows
• Directors, including Board Chair, as appropriate, engage
with shareholders
Regulators and
Government
• Advocacy on behalf of customers, business customers and
Indigenous communities
• Regular interactions with all levels of government, including
Members of Parliament, Members of Ontario Legislature and
municipally elected officials
• Advocacy on design and implementation of environmental
regulatory obligations
Unions
• Joint committees for key initiatives
• Regular executive-level and local meetings
• Collective bargaining
• Mature dispute resolution mechanisms
• General consultations on an issue-by-issue basis
Non-Governmental
Organizations and
Industry Associations
• Industry association conferences and events
• Regular meetings and conferences
• Participation on committees
• Joint representations to regulators
• Collaboration on advocacy initiatives
OUR KEY PARTNERS HOW WE ENGAGE WITH THEM
Indigenous Peoples
• Dedicated Indigenous relations department
• Engagement by staff and senior leaders with Indigenous communities
• Community-specific information sessions related to proposed
infrastructure development plans
• Indigenous procurement workshops and networking sessions
with contractors
• Recruitment of community members to act as liaisons between local
communities and Hydro One
• Community investment, sponsorship and participation at local events
• Representation at post-secondary schools, training and employment
centres and job fairs
Communities
• Dedicated community relations team
• Hosting and attending public events
• Advocacy for community and local economic development
electricity needs
• Community information centres related to proposed infrastructure
development plans
• Participation and presentations by Hydro One staff at town halls
and council meetings
• Robust consultation plans that provide multiple opportunities for
community feedback
• Community investment, sponsorship and participation at local events
• Project-specific information tours and meetings
• Representation at post-secondary schools, training and employment
centres and job fairs
14
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
People and
Potential
Our people make Hydro One strong and
unique. Our people strategy is designed to
inspire employees and prepare our workforce
for our evolving needs. We will continue to
develop a diverse workforce with the skills
and experience to match the demands of our
new corporate strategy and our ever-evolving
customer and business needs.
15
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Approach
We understand the success and strength of
our business rests with our people. When we
develop their skills, we are investing in both
their success and ours. We take a proactive
approach to identifying and recruiting talent and
to building the skills and capacity of our team.
Performance
We reconfirmed succession plans at the
executive, vice president and director levels of
the Company during 2019, while identifying
high-potential employees at the senior manager
level and above. The identification of critical
roles was also an important part of the process
last year. These are roles that would have an
adverse impact on our business if left vacant for
a significant period of time.
For the first time in 2019, we identified critical
roles using defined criteria that included: the
impact on business, skill set and knowledge
required, and the level of risk associated with not
filling this role. These factors helped our leaders
assess these roles using a consistent approach
across the organization. We continue to focus
on ensuring these roles have robust succession
plans with a deep pipeline of talent that can be
developed in an accelerated manner in order to
mitigate risk should the role become vacant.
Key ESG policies, programs and
management systems guiding our
actionsinclude:
Code of business conduct
Respect in the workplace policy
Employees and
Workplace
Employees and Workplace Diversity and Inclusion
We continued to focus on the development of
high-potential employees and on ensuring they
each had a successor identified. We shared
our action plans with the Human Resource
Committee of the Board.
We also successfully renewed a mutually
beneficial two-year collective agreement with
the Society of United Professionals, covering
approximately 1,500 employees in professional
and supervisory roles. In addition we ratified
agreements with a number of Building Trade
Unions through the Electrical Power Systems
Construction Association.
Average Number of Full-Time Employees
Regular and non-regular
On average, Hydro One had 8,800 skilled
and dedicated regular and non-regular
employees (approximate).
2019 2018 2017
8,800
8,600
8,300
Employee and Pensioners Donations
($ millions)
We saw a decrease in our employee and
pensioner donations in 2019 due to our switch to
an online platform. As more people gain comfort
with donating through this platform, we anticipate
that our numbers will once again increase.
2019 2018 2017
$0.9M
$1.3M
$1.2M
8. We have updated our methodology and data for 2017 and 2018 so they can be compared to 2019.
Employees Eligible to Retire Within
Five Years/Ten Years
8
(% of workforce)
The percentage of employees eligible to retire
over the next five years remains steady, relieving
some pressure on our workforce planning.
5 Years
10 Years
2019 2018 2017
23
35
23
27
34
37
16
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Key Programs & Future Initiatives
In 2019, our talent and recruitment team filled
approximately 800 vacancies, with many of our
senior leadership positions filled internally. This
demonstrates the success of our well-structured
succession planning program in support of
our long-term business strategy. The team
also recruited several internal and external
candidates for critical leadership roles including
the Chief Executive Officer, Chief Safety Officer,
Chief Human Resources Officer, Chief Financial
Officer, Chief Operating Officer and Chief
Legal Officer.
We plan to take the following actions in 2020
tobuild our team:
• Identify critical roles for the execution of
our new corporate strategy and successors
for those roles, ensuring accelerated
development plans are in place to support
those individuals as well as those with ‘high’
and ‘medium’ potential.
• Support executive review of our existing
operating model to improve organizational
effectiveness, role clarity and decision-
making authority.
• Renegotiate two collective agreements
withthe Power Workers’ Union and
additional Building Trade Agreements
through the Electrical Power Systems
Construction Association.
Employees and Workplace Diversity and Inclusion
THE POWER OF GIVING
Hydro One employees are the driving force behind
our Company’s achievements – achievements that
ultimately go beyond delivering electricity. Our
employees are also powering the well-being of the
communities we serve and making a difference in the
daily lives of our customers and their fellow Ontarians.
Power to Give is Hydro One’s annual employee-run
fundraising campaign. It provides an opportunity
for employees and pensioners to connect to their
community, causes and colleagues. In 2019, the Power
to Give campaign supported hundreds of charities
across the province through financial donations
and volunteering.
We strongly believe that each and every one of us
has the Power to Give.
Cassondra Fonseca, a Hydro One Professional
Engineer and Senior IT Security Specialist, founded
Camp Engies to promote engineering to girls in
Grades 5-8. Through Power to Give, Hydro One has
supported Camp Engies since inception. In 2019,
Camp Engies educated over 200 girls in engineering
activities designed to relate engineering to everyday
life. Teaching them were 24 women engineer volunteers
– mainly current or past Hydro One employees – who,
through their example and mentorship, helped instill the
campers with confidence and a love for engineering.
Dusti Shedler, a Stations Support Clerk, works out
of Hydro One’s Northwest region. For the past
10 years she has been extensively involved in leading
the area’s Power to Give campaign.Dusti has raised
thousands of dollars by organizing and participating
in events to raise money for local charities and is a
huge advocate for volunteering. One of her favourite
events is the annual Bocce Ball tournament, which
in 2019 alone raised $1,200 for the Faye Peterson
House, a women’s shelter that provides critical
services to the community. 
RESPONSIBLY INVESTING
IN OUR EMPLOYEES
People are the cornerstone of our strategic
direction and we believe in investing in our
people. The Company’s pension plan for
its employees recognizes that ESG factors
can affect investment risk and return and
therefore integrates ESG factors into its
investment decision-making, selection
and monitoring processes. The plan monitors
its investment managers to ensure that they
incorporate ESG factors into their research
and investment process.
Our employees are powering
the well-being of the
communities we serve and
making a difference in the daily
lives of our customers and their
fellow Ontarians.
17
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Diversity and Inclusion
Approach
We seek to create a workforce that reflects
the diverse populations of the communities
where we live and work. We benefit from a
collaborative and inclusive culture sustained
and complemented by the strength of different
backgrounds, perspectives, ideas and insights.
We value equity, diversity and inclusion and
stand for racial equality at all levels of our
organization. Hydro One is guided in our work
by our diversity and inclusion policy.
Performance
While we maintained our Catalyst Accord
commitments to gender parity in the workplace,
representation of women in executive and
regular positions decreased slightly, on average,
over the year. Representation of visible minorities
at the executive level increased; however,
representation at the employee level showed
little growth.
We will refocus our efforts and work
collaboratively with our unions to work towards
gender and visible minority parity across
our regular workforce and to develop diversity
hiring goals, particularly for our field staff
and apprentices.
We are cognizant that much work remains in
advancing diversity and inclusion at all levels of
our Company to better reflect where we work and
the communities we represent across the province.
Employees and Workplace Diversity and Inclusion
Key ESG policies, programs and
management systems guiding our
actionsinclude:
Diversity and inclusion policy
9. Diversity data is based on employees voluntarily self-identifying. We have updated our methodology and all percentages were calculated based on yearly averages for regular employees.
Data for 2017 and 2018 have been updated so they can be compared to 2019.
10. Defined as Vice President and above roles.
The Catalyst Accord
The Catalyst Accord is a global non-
profit organization dedicated to gender
parity in the workplace. As a signatory
to the Catalyst Accord, Hydro One
remains committed to maintaining at
least 30% female board members and
30% female executives.
Executive Diversity
10
(% of executive management)
Diversity
9
Employee Diversity
(% of regular employees)
2017
33.9
66.1
1.7
6.3
33.5
66.5
2.9
15.2
2018
31.9
68.1
3.4
24.6
2019
2019 2018 2017
2017
22.5
77.4
2.4
12.0
1.6
2018
24.3
75.6
2.5
12.6
1.6
2019
24.1
75.9
2.3
12.8
1.5
2019 2018 2017
Women
Men
Indigenous
Visible minorities
Individuals with a disability
18
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Employees and Workplace Diversity and Inclusion
Key Programs & Future Initiatives
We focus on creating a workplace culture that
reflects the diversity of the communities where
we live and work.
2019 was a pivotal year for diversity and
inclusion. In addition to our diversity and
inclusion policy being recognized as a key
corporate policy, we launched a diversity and
inclusion council. This group, comprised of
directors from across Hydro One, has a mandate
to advocate for and drive change throughout
the organization on diversity and inclusion
programming, initiatives and policies.
We also strengthened Hydro One’s recruitment
process to reduce potential bias in our hiring
practices. We brought in an external expert to
help us identify some of the possible unconscious
biases in the Company’s recruitment processes
– such as in interview questions and job
posting placements – and how we could form
partnerships to attract diverse candidates.
We have incorporated all recommendations
regarding non-biased interview questions and
accessible job postings and we are currently
working to institute a structured, consistent
method of screening resumes to reduce the
potential for anchoring and affinity bias.
We also ran a pilot of our Step Up initiative
which focuses on psychological safety, respect
in the workplace and empowering employees to
act when they see inappropriate, disrespectful
or non-inclusive conduct in the workplace.
In 2019, we held 58 facilitated sessions for
1,800 employees, receiving feedback that they
were highly relevant and helpful in opening up
necessary dialogue on inclusive behaviours.
We plan to take the following actions in 2020
to create an inclusive work environment:
• Develop and make publicly available our
diversity and inclusion hiring targets and
action plans.
• Continue to partner with our unions and
embed leading diversity and inclusion
practices, including anti-racism, into our
recruitment process to build a diverse team
and enable consistent, unbiased candidate
assessments.
• Begin to deliver our Step Up program to
corporate employees and expand it to
include field employees across all lines
of business.
• Take a leadership role in the fight against
racism by initiating a dialogue with our Black
employees with the objective of listening and
understanding. These conversations will help
to inform the creation of meaningful racial
equality programming to address system
change.
• Create a racial equality commitment
statement and supporting action plans to
combat systemic racism in our business.
PANDEMIC RESPONSE
To ensure the health and safety of our employees,
we are offering extensive health resources to
help employees stay safe during this time. This
includes online screening and self-assessment
tools; providing ongoing Employee and Family
Assistance Programs; and, new health services
including 24 hours, 7 days a week virtual doctor
support. We continue to share physical and
mental health resources available to support our
employees. Our employees are proud of the role
they play in energizing life for communities and
people and we are proud to support them every
step of the way.
HYDRO ONE’S PROGRESSIVE, GENDER-DIVERSE
BOARD OF DIRECTORS
We value diversity at all levels of Hydro One and its commitment
extends to ensuring a gender-diverse Board of Directors. With
the announcement of Susan Wolburgh Jenah
1
in 2019, the
composition of our Independent Non-Executive Board is five
women (50%) and five men (50%), making us one of the most
gender progressive boards in North America. It also reflects best
practices in board diversity and surpasses our Catalyst Accord
commitment to maintaining at least 30% female board members.
The Board has a diversity policy that formalizes Hydro One’s
commitment to diversity and its desire to maintain a board
comprising talented and dedicated directors whose skills,
experience, knowledge and backgrounds reflect the diverse
nature of the business environment in which we operate, including
an appropriate number of female directors. To view the policy,
please visit our website.
TAKE PRIDE, TAKE LEADERSHIP
PrideOne encouraged 45 employees, including
a member of the Board, to march in the 2019
Toronto Pride Parade for the first time. Rainbow
flags were also raised in over 40 Hydro One
locations across the province.
Female
Male
50%
Female Directors
Board Gender Diversity
2
1. Became a director on January 1, 2020
2. Hydro One’s Independent Non-Executive Board of Directors
19
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
an effort to end the stigma associated with
mental illness.
•
Indigenous Network Circle (INC) creates
awareness around Indigenous relations and
culture, and advocates for change through
a learning environment. INC’s objective
is to develop and foster leaders through
knowledge, understanding and respect.
• Lean In empowers and supports women in
their professional development, enabling
organizations to address their gender
leadership gaps. Lean In circles are small
groups of employees who meet regularly
tolearn and grow.
• People in Energy provide its members with
personal and professional development. Its
mission is to support passionate and diligent
employees and to build future leaders of our
industry, as well as raise awareness about
the broader energy sector.
• Mosaic is a multicultural network that
fosters awareness, appreciation and
collaboration through a richer understanding
of our employees’ cultural heritage and
identity differences. Mosaic aims to be an
action-oriented, global and diverse force
that eliminates barriers, adventurously
collaborates and unites differences by
building a strong foundation that generates
forward-thinking leaders. Their vision is to
drive innovation through differences.
• Men Advocating for Real Change is a
network of men advocating forchange to
achieve gender equality intheworkplace.
• PrideOne is Hydro One’s first LGBTQ2S+
ERG and supports a diverse and inclusive
corporate culture for Hydro One’s LGBTQ2S+
employees, including allies, so that all
employees can be their authentic selves
atwork.
Our Employee Resource Groups (ERGs) have
been instrumental in pushing Hydro One to
be more diverse, more inclusive and more
equitable. Group members raise important
issues, advocate for employees and challenge
Hydro One to be a better employer.
At Hydro One, eight ERGs have now been
established, each with an executive sponsor and
chaired by employees. Collectively, the ERGs
have approximately 1,200 members and have
the support of Hydro One’s President and CEO
and Executive Leadership Team. In recognition
of our ERGs, Hydro One recently won the
Workplace Diversity and Inclusion Award from
Electricity Human Resources Canada.
• Women in Trades, Technology and
Engineering (WTTE) promotes and
advocates for women in trades, technology
and engineering at Hydro One. WTTE’s
vision is to create a workplace culture that
includes, empowers and inspires more
women to participate at all levels of the
organization with a special focus on the
areas of trades, technology and engineering.
• Accessibility and Inclusion Network provides
a forum for employees with disabilities and
their supporters to share information, raise
awareness and provide advice for ensuring
the inclusion of people with disabilities within
Hydro One. The network has expanded its
reach to raise awareness on mental health in
Diverse People,
Inclusive Workforce
POSSIBILITIES OF TOMORROW
Employees and Workplace Diversity and Inclusion
20
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Be the Safest and
Most Efficient Utility
People and
Potential
Plan, Design and Build
a Grid for the Future
Plan, Design
and Build a Grid
for the Future
We are planning, designing and building a grid that
meets the needs of Ontarians today and into the
future. This means improving reliability by investing
in technology that will allow us to modernize our
grid. Sustainability is also central to our strategy. As
we prepare for more severe storms, we will consider
climate change in our planning to increase resiliency
and lower our environmental footprint. We will also
continue to minimize our environmental footprint
by prioritizing and managing the environmental
impacts of our business.
21
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Be the Safest and
Most Efficient Utility
People and
Potential
Plan, Design and Build
a Grid for the Future
Grid Resiliency
and Modernization
Approach
We continue to invest in our existing
infrastructure to maintain a reliable and resilient
grid, while embracing new technology for
tomorrow. These investments help ensure we
have a grid that is more reliable, resilient to
fluctuations in weather, minimizes the risk of
environmental impacts and can meet the current
and future demands in the province.
Hydro One is actively involved with the OEB
and the Independent Electricity System Operator
(IESO) to ensure technological advances and
distributed energy resources are appropriately
integrated into the grid. This approach allows us
to meet our obligations to the people of Ontario,
while adapting our business model to balance
these opportunities with the risks inherent in the
utilities sector. It also supports our mandate to
make wise investment decisions on behalf of our
customers, communities and shareholders.
Performance
In 2019, we made capital investments of
approximately $1.7 billion to expand the
electricity grid and renew and modernize
existing infrastructure. In southwestern Ontario,
for example, we worked with community
leaders and customers to bring more power
to the region, building a second high-voltage
transformer station in Leamington to support
economic growth.
We also completed the installation of our
distributed energy resource management system
(DERMS), a technology that enables us to
have real-time control of the electricity flowing
through our distribution system. This technology
will help to meet the increasing energy demands
of the province.
Key Programs & Future Initiatives
We continue to adapt our design and equipment
standards to address the impacts of climate
change. To support this work, in 2019, we
conducted a corporate-wide grid resiliency
assessment of our system to identify risks and
opportunities related to the impact of climate
change and extreme weather on our assets.
We are working to address these risks and
opportunities, including updating our design
standards. On the transmission side of our
business, we are focusing on system renewal to
address deteriorated and aging infrastructure. In
addition to verifying the adequacy of our design
standards and improving where appropriate,
we are upgrading the transmission system to
Grid Resiliency and Modernization Climate Change Environmental Management
align with the requirements of Northeast Power
Coordinating Council and North American
Electric Reliability Corporation.
On the distribution side, we are actively
participating in two specialized industry
committees (Overhead Systems/Underground
Systems) that are reviewing recommendations to
modify design standards and address findings
of the joint Canadian Standards Association–
Natural Resources Canada climate change
adaptation report. We also regularly review our
distribution material specifications to account for
changes in national standards and to ensure we
are ordering the proper equipment to address
climate change.
We plan to take the following actions in 2020
to renew and modernize our infrastructure:
• Automate the grid and deploy solutions to
ensure the grid can withstand more extreme
storms and weather events. We will focus on
installing technologies that improve outage
response times and minimize impacts.
• Improve grid flexibility to integrate and
operate distributed energy resources (DER)
enabling customer choice, through the use of
our DER management system.
• Evaluate our existing transmission line and
station design standards against historic
climate trend data to ensure our standards
can meet the challenges of changing
climate conditions.
PANDEMIC RESPONSE
Maintaining safe and reliable electricity to hospitals, homes,
grocery stores and essential services across Ontario is critical now
more than ever as we navigate the COVID-19 pandemic. Through
our distribution modernization program we have installed nearly
1,000 sensors on our distribution system to better determine the
cause of an outage and smart switches that allow specific problem
areas to be isolated remotely, minimizing the amount of residents
impacted by a power outage. During this pandemic, this technology
has allowed our crews to be more efficient and to reduce the need
for them to physically patrol a line. These modernization efforts
have contributed to our social distancing practices while ensuring
the safe and reliable supply of power.
$1.7B
Invested to renew and
modernize Ontario’s
electricity system
22
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Be the Safest and
Most Efficient Utility
People and
Potential
Plan, Design and Build
a Grid for the Future
Climate Change
Approach
We are committed to reducing our carbon
footprint and to managing the impacts of
climate change on our business.
Our actions are guided by Hydro One’s climate
change strategy, our climate change policy
and by the recommendations of the Taskforce
on Climate-Related Financial Disclosures
11
.
Responsibility to implement our climate change
program rests with our cross-functional
director-level climate change committee.
Performance
As an electricity transmission and distribution
company, we do not emit a material amount of
GHG emissions. However, we recognize that
GHG emissions are important to many of our
stakeholders and for 2019, we are reporting
Scope 1 and Scope 2 GHG emissions. We
have calculated these emissions, which have
been verified by a third party
12
, using the most
recent Canadian emission factors published by
Environment and Climate Change Canada in
April 2020.
Overall, Hydro One’s total reported GHG
emissions
13
in 2019 are estimated to be
320,641 metric tonnes of carbon dioxide
equivalents (tCO
2
e).
The primary sources of Scope 1 emissions are
our vehicle fleet, fossil fuel based electricity
generation in Hydro One Remote Communities
operations, sulphur hexafluoride (SF₆)
14
releases
15
and fuel consumption
16
. We reduced
Scope 1 emissions by almost 3% from our
baseline emission levels established in 2018 by
repairing equipment that led to less SF₆ leaks
and through our fleet initiatives.
The primary source of Scope 2 emissions
17
is line
losses. When power is delivered over transmission
and distribution lines a small amount of the
electricity, generated from 96% zero-carbon
emitting sources
18
, is consumed or lost as heat
19
.
Our Scope 2 emission were 5% lower than our
baseline emissions from 2018 primarily due to
reduced line losses as a result of weather changes
compared to the previous year.
Key Programs & Future Initiatives
A critical element of building a sustainable
grid for the future is to ensure we reduce our
GHG emissions. In 2019, Hydro One avoided
8,075 tCO
2
e of emissions as a result of
renewable energy technology, conservation
programs, and the increase of customers
choosing the e-billing option on their bill. These
avoided emissions are equivalent to a year’s
exhaust from 2,300 passenger vehicles
20
.
Key ESG policies, programs and
management systems guiding our
actions include:
Environment policy
Climate change policy
11. The Taskforce on Climate-Related Financial Disclosures is an organization that developed voluntary, consistent climate-related financial risk disclosures for use by companies in providing information
to investors, lenders, insurers and other stakeholders.
12. GHD Limited verified Hydro One’s GHG Emission report for the compliance period of January 1 to December 31, 2019. The letter of assurance can be found in the appendix.
13. Hydro One’s GHG Inventory is aligned with the GHG Protocol Corporate Accounting and Reporting Standard; ISO 14064-1:2018; Greenhouse Gas Emissions: Quantification, Reporting and Verification
Regulation (O.Reg. 390/18). Emission Factors are from Canada’s National Inventory Report 1990–2018 and Global Warming Potential (GWP) from the IPCC Fifth Assessment Report, 2014 (AR5).
14. SF₆ is used to insulate high-voltage circuit breakers and gas-insulated switchgear.
15. Hydro One Remote Communities serves 22 communities in Ontario’s north. Due to the lack of grid connection in the majority of these communities, Hydro One Remote Communities generates
electricity to meet their obligation under Section 26 of the Electricity Act, 1998, Ontario.
16. Fuel consumption includes natural gas, propane, fuel oil and diesel.
17. Scope 2 emissions are not directly controlled by Hydro One and are subject to the composition of energy generated and dispatched through the Ontario grid for consumption.
18. As determined by the Canadian Energy Regulator, Ontario’s electricity mix has increased from 90% to 96% zero-carbon emitting sources over the period 2014–2018.
www.statista.com/statistics/482978/ontario-electricity-production-by-energy-source, www.cer-rec.gc.ca/nrg/ntgrtd/mrkt/nrgsstmprfls/on-eng.html
19. The average Ontario system grid emissions 5 year average is 34 gCO
2
e/kWh (2014–2018). Source of data: 2020 National Inventory Report Canada Part 3, page 74 “Consumption Intensity”
and https://ec.europa.eu/info/sites/info/files/business_economy_euro/banking_and_finance/documents/200309-sustainable-finance-teg-final-report-taxonomy-annexes_en.pdf
20. Calculated from https://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/calculator/ghg-calculator.cfm
GHG Emission Classification
Scope 1 – Direct emissions from sources
owned or controlled by Hydro One
(e.g., use of fossil fuels in our owned and
operated fleet vehicles).
Scope 2 – Indirect emissions from the
generation of acquired and consumed
electricity, steam, heat, or cooling from
sources owned or controlled by an external
organization (e.g., from energy purchased
to use in our facilities and line losses).
Scope 1 Emissions tCO
2
e Percentage
58,810.4
52,172.5
45,852.8
6,925.6
163,761.3
Vehicle fleet
Generation
SF₆
Fuel consumption (natural gas, propane, fuel oil, diesel)
Total
36%
32%
28%
4%
Scope 2 Emissions tCO
2
e Percentage
156,075.9
771.4
156 , 8 4 7. 3
Line losses
Electricity use
Total
99. 5%
0.5%
Grid Resiliency and Modernization Climate Change Environmental Management
2019 GHG Emissions
23
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Be the Safest and
Most Efficient Utility
People and
Potential
Plan, Design and Build
a Grid for the Future
In 2019, we began the process of establishing
programs and targets to reduce GHG emissions
from three sources: fuel use in fleet vehicles,
SF₆ gas release, and electricity and natural gas
consumption at Hydro One facilities. We will
measure and track our reduction progress
annually in our sustainability report with regular
program updates to our executive leads
throughout the year. In 2020, we plan to develop
emission reduction programs and targets that
will be implemented over the ensuing five years.
Decreasing the amount of fossil fuels Hydro
One’s vehicle fleet consumes will help us to
reduce our overall carbon footprint. That is why
we are planning to convert 50% of our fleet of
sedans and SUVs to electric vehicles or hybrids
by 2025. We are also developing a GHG
metric tracker to better monitor carbon dioxide
emissions and we are working to reduce the
number of vehicles we use. In fact, since 2017
we have removed 1,200 vehicles from our fleet.
We plan to take the following actions in 2020
to manage and mitigate GHG emissions:
• Set and implement a corporate GHG
emissions reduction target (based on
percentage of tCO
2
e), incorporating realistic
reduction targets from fleet vehicles, SF₆ gas
releases and facility energy efficiency.
• Conduct a climate risk assessment and
scenario planning as we work toward aligning
our disclosures with the Taskforce on Climate-
related Financial Disclosures.
SHOWCASING SUSTAINABLE ENERGY PRACTICES
Hydro One is actively exploring building automation
technologies to help reduce our overall energy consumption.
These technologies could ultimately make our facilities’ energy
use carbon neutral, extend the life of our assets and reduce
our costs.
In 2019, our Real Estate team began piloting new sustainable
energy management solutions for potential deployment across
our facilities. Hydro One’s Connected Buildings Pilot is testing
a new web portal at four Hydro One sites – Perth, Sudbury,
Markham and Barrie – that uses enhanced web-enabled
thermostats, sensors and controllers to allow for real-time
monitoring of electricity consumption and performance at these
buildings. This remote-control command system generates
automatic alerts should there be excessive energy consumption
in building heating and cooling systems, baseboards, lighting
panels or main building service.
In 2020, the pilot is running in Perth and Sudbury and initial
results indicate the system is generating savings and insights on
GHG emission reductions. The pilots in Markham and Barrie are
in process but delayed due to COVID-19.
Main Sources of GHG Emissions in Ontario and Canada
21
Totals might not add up to 100% due to rounding.
Ontario 2018
(%)
Canada 2018
(%)
Transportation Residential and
Commercial
Waste Oil and Gas Industry Agriculture, Forestry,
Construction and
Light Manufacturing
Electricity
2
27
25
13
13
11
9
729.3 Mt
CO
2
e
21. All data is from the Environment and Climate Change Canada’s National Inventory Report 1990-2018: Greenhouse Gas Sources and
Sinks in Canada, Part 3. https://unfccc.int/ghg-inventories-annex-i-parties/2020
22. All data is from the Environment and Climate Change Canada’s National Inventory Report 1990–2018: Greenhouse Gas Sources
and Sinks in Canada, Part 3. https://unfccc.int/ghg-inventories-annex-i-parties/2020
24
5
2
3
165 Mt
CO
2
e
35
13
18
Grid Resiliency and Modernization Climate Change Environmental Management
Hydro One’s electricity sector emissions
(SF
6
, line losses, and generation) have on
average accounted for 7.2% of Ontario’s total
electricity sector emissions from 2014–2018.
In 2018, our Scope 1 and 2 emissions were
estimated to account for approximately 0.2%
of Ontario’s GHG emissions
22
.
24
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Be the Safest and
Most Efficient Utility
People and
Potential
Plan, Design and Build
a Grid for the Future
Our Environmental Management
Plans and Components
CLIMATE CHANGE
MANAGEMENT PLAN
Climate change adaptation,
resiliency and mitigation;
SF₆ gas management
RESOURCE
MANAGEMENT PLAN
Air, water and waste
management; chemical
management including
polychlorinated biphenyls (PCBs)
CONTAMINATED
LAND MANAGEMENT
PLAN
Spills and land assessment
and remediation
ENVIRONMENTAL
STEWARDSHIP PLAN
Environmental planning;
community and Indigenous
relations; biodiversity
enhancement; land
management; heritage
resources
Environmental
Management
Climate change is just one of
the environmental risks facing
Hydro One. Our environmental
management program is important
in helping us effectively manage
key aspects of our activities that
can impact the environment.
Approach
Our approach centres around four
management plans that are linked to our
top environmental considerations.
We regularly review our activities to assess
the risk of impacting the environment. In
addition, we closely track and consider
emerging environmental issues across North
America’s infrastructure – such as wildfire risk,
floods and the potential for environmentally
related project delays – to ensure we have
the right plans and programs in place. Our
environmental management programs,
under our combined Health, Safety and
Environmental Management System
(HSEMS
23
), have been effective in helping us
address these emerging industry-wide issues.
Performance
Our environmental management programs play
a critical role in helping us manage our impacts
on the natural, built and social environments, as
well as in lowering our environmental footprint.
Environmental Stewardship & Assessment
Our environmental work is guided by
our commitment to actively consult with
communities, partners and stakeholders to
inform, seek input and address their concerns.
Our goal is to build partnerships based on trust
and cooperation.
These practices are incorporated in our
infrastructure projects and programs through
the execution and completion of environmental
assessments (EA), the environmental permitting
process and developing environmental
protection plans.
Key ESG policies, programs and
management systems guiding our
actions include:
Environment policy
Health, safety and environmental
management system
We conduct environmental studies to help
minimize the impact of our work on natural
habitats and ecosystems. The results of these
studies inform the planning of large capital
projects and routine infrastructure maintenance
programs. Depending on what we discover, we
might make design changes to avoid sensitive
areas, conduct work during certain times of the
year, put in place measures to prevent impacts
to watercourses, or consider a variety of other
measures to protect the environment.
As part of our natural environment protection
initiatives, we continue to enhance wildlife and
vegetation biodiversity through the introduction
of native pollinator-friendly plants across the
province. In 2019, we planted 20* hectares
of pollinator-friendly plants. These plants not
only support insects that pollinate other plants,
they also serve to limit growth of vegetation that
could encroach on infrastructure and power
lines – limiting the risk of an outage or fire.
The environmental assessment process
allows us to identify the potential
environmental effects of our projects
(both positive and negative) and apply
mitigation measures where necessary.
23. Hydro One’s HSEMS is aligned with the International Organization for Standardization 14001 Environmental Management Systems
and the Occupational Health and Safety Assessment Series 18001 internationally recognized standards. Our HSEMS is supported
by various operational policies and related guidance documents as well as operational procedures and controls.
BUILDING CAPACITY IN INDIGENOUS COMMUNITIES
Hydro One recognizes the importance of developing long-term capacity
within Indigenous communities. That is why we made sure the environmental
consultant we hired for the Waasigan Transmission Line project demonstrated
the same level of commitment to supporting local Indigenous communities
and businesses as Hydro One.
Our chosen consultant was directed to involve local Indigenous businesses
and individuals whenever possible in their proposals, building business and
qualified worker capacity within Indigenous communities and identifying
opportunities for joint ventures and partnerships.
We plan to implement a training and skills development program for the
Waasigan Transmission Line project that will aim to develop local Indigenous
communities’ skills and capacity in northwestern Ontario in support of the
Individual EA phase of the project. More information on this project is included
in the Trusted Partner section.
Grid Resiliency and Modernization Climate Change Environmental Management
25
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Be the Safest and
Most Efficient Utility
People and
Potential
Plan, Design and Build
a Grid for the Future
capital projects and sites with larger spills. One
of the sites remediated during the year was the
Merivale Transformer Station site located in
the Ottawa region, which was destroyed by a
tornado in September 2018.
Key Programs & Future Initiatives
We plan to take the following actions in 2020
to advance our key environmental programs:
• Integrate enhanced biodiversity initiatives
into four capital projects.
• Successfully complete and/or significantly
advance the EAs on key projects.
• Assess and remove oil-filled electrical
equipment with ≥50 ppm PCBs and
appropriately dispose of PCB waste
according to planned targets and legal
requirements.
• Assess and remediate contaminated sites
according to target projects (19 sites in 2020).
• Recover spills and manage spilled liquid
material to meet target (90%).
• Review and optimize location of spill
response trailers and equipment across
the province.
Number of environmental inspections, orders and warnings* 2019 2018 2017
Number of inspections/investigations by Ministry of Environment,
Conservation and Parks
11 4 12
Number of inspections/investigations resulting in orders/
actions being issued
0 0 0
TURTLE CONSERVATION
Protecting turtles around Cootes Paradise in the Hamilton area is a priority
for both local stakeholders and Hydro One. Turtles have existed for millions
of years and are an important part of the local ecosystem.
Yet, turtles are dying around Cootes Paradise when they try to cross the road.
Sadly, most of the turtle deaths are females of breeding age, resulting in a huge
loss to the population. In an effort to protect the turtles, Hydro One installed
600 feet of turtle barrier fencing to prevent roadside crossing.
We will continue to work with local organizations to monitor the area and make
adjustments if needed, so that we can help protect as many turtles as possible.
The processes in place through our
HSEMS enabled Hydro One to
maintain a record of zero orders or
actions resulting from regulatory
inspections and investigations.
Resource Management
Resource management includes our management
of water, waste and PCBs. Hydro One has well-
established programs in place for matters relating
to water and waste and we continue to phase
out PCB-containing equipment at our sites.
Contaminated Land Management Program
Hydro One has well-established processes
regarding the management of contaminated
lands, including a spill response program and
a land assessment and remediation program.
Hydro One’s team of specially trained responders
share on-call duties providing 24 hours a day,
7 days a week spill management services,
supported by external environmental contractors.
Our goal, when responding to spills, is to prevent
or mitigate potential impacts on the environment
and to minimize customer service interruptions.
In 2019, we recorded 355 spills*, with 23 spills*
resulting from extreme windstorms, the majority
occurring during one storm in November. Our
recovery rate for liquid spills in 2019 was 96%*.
In 2019, we remediated or assessed 24
Hydro One sites* that have been historically
contaminated, exceeding our planned target
of 22*. Our environmental services team also
completed assessment and remediation for
As part of our natural
environment protection
initiatives, we continue
to enhance wildlife and
vegetation biodiversity
through the introduction
of native pollinator-
friendly plants across
the province.
Grid Resiliency and Modernization Climate Change Environmental Management
26
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Be the Safest and
Most Efficient Utility
People and
Potential
Plan, Design and Build
a Grid for the Future
Some of the ways we do this include:
• Tree removal: Trees that have a higher
potential of falling are removed before they
can cause a power interruption.
• Tree pruning: If trees grow too close to the
electrical system, they require pruning to
make sure they don’t cause outages or fires
by contacting wires. We use risk and growth
modelling to determine which trees are likely
to cause outages and prune only the high-
risk trees.
• Underbrush control: We need to ensure
the area under the power grid is clear so
vegetation doesn’t come into contact with
wires. We do this by promoting the growth
of plants that won’t grow too tall and require
future maintenance.
Promoting tree conservation
Every year our forestry service team sponsors
Arbour Week to promote tree conservation and
encourage tree planting.
In 2019, 172 Hydro One forestry technicians
and staff visited 47 junior schools across Ontario
and spoke to nearly 4,300 students about the
importance of trees to our ecosystem and the
need to be safe around electrical wires.
What do trees have to do with electricity?
Trees cause more than 30% of power outages
in Ontario and in heavily forested areas, the
percentage of tree-related outages can be
higher. Hydro One’s forestry services team has
an important role to play in keeping the lights
on. With over 90 years of experience, our
Forestry Services team is often called
upon to provide their environmental
stewardship expertise to other utilities across
North America.
As a team, we understand the important role
forests and trees play in absorbing carbon and
reducing our global carbon footprint but we also
need to make sure they don’t cause outages. To
do this, our team understands natural habitats,
rare or threatened plant and animal species, and
different vegetation management techniques.
This allows us to protect as much vegetation as
possible while ensuring our customers have a
reliable source of power.
Stewarding Forestry
Resources
POSSIBILITIES OF TOMORROW
Grid Resiliency and Modernization Climate Change Environmental Management
27
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
People and
Potential
Be the Safest and
Most Efficient Utility
Be the Safest
and Most
Efficient Utility
We are deeply committed to continually
enhancing our culture of safety to ensure every
employee returns home safely every day. We
believe a safe utility is an efficient utility and a
healthy safety culture fosters a high degree of
accountability and discipline across all aspects
of our business.
28
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
People and
Potential
Be the Safest and
Most Efficient Utility
Health and Safety Efficiency
Health and Safety
Approach
We are guided by our HSEMS, which is
aligned with the Occupational Health and
Safety Assessment Specification (OHSAS)
18001 and drives the identification of health
and safety risks. Our HSEMS applies to all
Hydro One activities, products and services,
as well as to our contractors.
Performance
Hydro One’s reportable injuries rates have
declined in recent years and are considered
industry leading. While this performance is
encouraging, we have seen an increase in the
number of serious injuries across our workforce,
which is unacceptable. In March 2019, we
tragically lost a colleague who sustained a fatal
injury during a forestry incident in the Minden
area. The memory of our lost colleague only
strengthens our commitment to an injury-
free workplace.
Our newly appointed Chief Safety Officer
(CSO), Darlene Bradley, oversees the safety
improvement team. This team is comprised of
a diverse cross-section of employees who are
dedicated to eliminating incidents from the
workplace that result in injuries.
A key aspect of improving workplace safety
is proactively identifying error-likely situations
that could result in harm. Our human success
program is designed to do just that, using
tools and reinforcing behavioural habits to
minimize the likelihood of errors that may result
in workplace injury, customer interruptions or
damage to assets. We delivered human success
training to all field supervisors in 2019.
Through a safety culture campaign, we are
highlighting each individual’s connection
to safety management. We have created a
monthly safety communications campaign that
is designed to raise overall awareness and
deliver guidance on eliminating our highest
riskactivities.
We are also making headway on improving
our safety data collection, reporting, audits
andassessments:
• Following 29 field location audits across
the province, we were recertified under
the OHSAS 18001 program. The auditors
recognized our strengths to be: our strong
commitment by management; awareness
of health and safety at all levels of the
organization; keeping areas that can lead
to slips, trips and other incidents clean of
debris; and, high training levels. Six minor
non-conformities were identified and all
have been addressed through corrective
action plans.
• Over 6,000 employees participated in a
safety perception survey and assessment,
which included 14 site visits and over 180
direct interviews. The survey underscored
that employees are committed to improving
our safety culture. With the appointment of
our CSO and safety improvement team, we
are acting on that feedback and holding
ourselves accountable to improve Hydro
One’s safety culture.
Key ESG policies, programs and
management systems guiding our
actionsinclude:
Health and safety policy
Public safety policy
Health, safety and environmental
management system
Incidents and Lost Time
Total Annual Recordable Injury Rate
(number of recordable injuries per
200,000 hours worked)
We achieved industry-leading safety
performance in 2019 with a 29%reduction in
the number of recordable injuries compared
to 2018.
0.8
0.82019
1.1
1.2
2018
2017
Lost Time Injury Severity Rate
(calendar days lost per 200,000
hours worked)
Our lost time injury severity rate increased in
2019. This was largely becauseanumber of our
employees needed time off to recover following
thetragic fatality of one of our colleagues in
March 2019.
6.9
6.92019
2.2
8.6
2018
2017
PANDEMIC RESPONSE
Our employees are powering the province, and it is our responsibility to protect
them. To do so, we have adjusted our operations and are concentrating on system
safety and reliability as well as longer-term work that will help to restart the
economy. To maintain physical distancing, we are splitting field crews, deploying
work digitally, staggering start times and minimizing travel within the province.
More than 3,000 of our teammates are now working from home enabling us to
support our field crews. Our customer contact centre agents are also working
from home, where they continue to support our customers. This is part of our plan
to ensure the safety of our workforce during this unprecedented time.
29
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
People and
Potential
Be the Safest and
Most Efficient Utility
Key Programs & Future Initiatives
Sustainable Safety Improvements
Our new safety improvement team comprises
18 fully-dedicated employees who all share a
common goal – eliminating serious injuries and
fatalities at Hydro One.
The cross-functional team was established in
2019 and is committed to improving immediate
frontline safety issues and boosting the
Company’s overall safety culture. It has the full
support of Hydro One’s CEO, Chief Operating
Officer, CSO and the union leadership at the
Power Workers’ Union, the Canadian Union
of Skilled Workers and the Society of United
Professionals.
The safety improvement team is planning to meet
with external companies known for their safety
leadership to learn about their successes and
challenges, as well as host internal workshops
and interviews to better understand employees’
concerns about our safety culture.
We plan to take the following actions in 2020
tobuild a stronger safety culture at Hydro One:
• Transform and improve our safety culture
by acting on the findings of the safety
improvement team, the safety perception
survey results, and through the leadership
and performance initiatives introduced by
ourCSO.
• Continue to roll out our human success
program training to 4,000 employees and
benchmark ourselves against peer initiatives
and North American best practices. We
anticipate COVID-19 may impact or delay
some of this training effort.
• Enhance learning and prevention measures
by employing an integrated reporting system
that accounts for near-misses and enables
effective responses to safety investigations
reporting:
°
Develop a safety analytics program to
identify and learn from incident pattern
recognition for life-altering incidents and
near-miss frequency rates.
°
Introduce a near-miss mobile application
with a 2020 goal of 4,000 incidents
reported, to understand trends, introduce
best practices and improve performance.
“Safety needs to have the profile and authority it
deserves. It is imperative to the sustainability of our
business that we work together and learn from the
best. We need to be much more proactive in order
to eliminate injuries and deliver world-class safety
performance across the business.”
— Scott Vicary, Safety Improvement Team Leader
Health and Safety Efficiency
30
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
People and
Potential
Be the Safest and
Most Efficient Utility
What is your first area of focus?
It is critical employees know that my team and
I want to hear their concerns about our safety
culture. My first area of focus will be finding
new ways to learn from our great cross-section
of people throughout the Company. Whether
it be from the safety improvement team, which
will be travelling across the province to speak
with frontline employees, or from feedback
we receive from our safety calls, my aim is to
encourage an open dialogue that produces an
honest exchange of ideas. I want employees to
see their ideas result in real changes.
What are some of the challenges you face
in this role?
I want to ensure we are open to new ways of
working safely and that we do not take safety
for granted. Changing our ideas of what it
means to work safely is going to require a culture
shift. This is our ultimate goal and I look forward
to this challenge.
What are you looking forward to most?
Hearing inspirational success stories encourages
my work. Stories of when things went the right
way because people put into action a safe
practice from their training. For example, the
time when an employee had a heart attack in a
meeting and colleagues saved his life by putting
their CPR training into action. Or the time when
an employee saw a driver crash into a pole and
a passerby was going to reach into the car to
help but the employee stopped him because
he knew the environment was unsafe to do so.
These meaningful moments where we played it
safe are important to share. They make us think
about how we could be safer in our day-to-day
lives, both at work and at home.
Darlene Bradley was recently named
our first-ever CSO after holding a
number of diverse roles at Hydro One
for the past 32 years, including Acting
Chief Operating Officer; Vice President,
Planning and Engineering; and Director,
Sustainment Investment Planning.
What do you hope to accomplish as our CSO?
I hope to accomplish two important things:
that no one takes safety for granted and that
we create a workplace where every employee
is committed to their personal safety and each
other’s safety every day.
Our Unwavering
Commitment
toSafety
POSSIBILITIES OF TOMORROW
Health and Safety Efficiency
A CONVERSATION WITH
HYDRO ONE’S CHIEF SAFETY OFFICER
31
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
People and
Potential
Be the Safest and
Most Efficient Utility
Health and Safety Efficiency
Efficiency
Approach
We are pursuing a number of initiatives to
enhance the efficiency, productivity and
reliability of our work. This means empowering
our people with the right tools and the right work
in a safe environment free from unnecessary
burden. It also means challenging our thinking
and working to create efficiencies in our
corporate support functions. Finally, we are
looking at how we can drive efficient capital
delivery so we can deliver on our work program
to build and maintain a safe and reliable grid
for our customers.
Performance
Hydro One’s commitment to achieving efficiency
and productivity improvements is central to
the planning and execution of work programs.
We established a productivity plan in 2015,
which has allowed us to implement a number
ofinitiatives to reduce costs while maintaining
orimproving service quality for customers.
In our efforts to promote efficiency, in 2019,
approximately 500 members of our forestry
services team began using mobile tablets in the
field to efficiently plan their work. In support of
our growing capital work programs, we partnered
with contractors to improve the predictability of
our project outlook, with more upfront focus on
risk assessment and project planning.
We also continued to optimize our shared
services portfolio – which includes our supply
chain and real estate functions – pursuing
opportunities to monetize our land holdings and
continuing to increase efficiencies in procurement
of materials and services.
Through this work and other initiatives, we saw
a 49.3% increase in annual total productivity
savings in 2019 over 2018.
Key Programs & Future Initiatives
Hydro One remains committed to growing
and achieving incremental savings by pursuing
a number of strategic initiatives to engage with
employees in driving productivity, reliability
and efficiency.
We are committed to passing on productivity
savings to customers by directly embedding our
future savings into the rate application filings
and business plans.
We plan to take the following actions in
2020toincrease efficiency and productivity
atHydro One:
• Empower our field operators to focus
onthework that matters and streamline
theiractivities in order to improve overall
gridreliability.
• Explore how we can optimize corporate
support by looking at everything from
centralizing functions and employing lean
process improvements, to automating
business processes and analytics-enabled
decision-making.
• Continue to prioritize rigorous capital
planning and execution so we can
successfully deliver efficient capital on behalf
of all stakeholders.
Productivity Savings
(millions of dollars)
We experienced an increase in savings
through efficiency measures such as
fleet capital optimizing and corporate
cost reductions.
2019 2018 2017
$202.3
$135.5
$89.5
Hydro One’s commitment to
achieving efficiency and productivity
improvements is central to the
planning and execution of
work programs.
32
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
Be a Trusted
Partner
Hydro One is committed to being a trusted partner
to Indigenous peoples, industry stakeholders,
government, communities, customers and all Ontarians.
Our goal is to build and grow relationships to deliver
greater value for our customers and shareholders.
Our shared success depends on our ability to build
trust as a reliable partner and good neighbour.
33
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
Indigenous Partnerships Community Relations Powering Economies
Approach
We firmly believe that positive and proactive
relationships with Indigenous peoples will
benefit all communities. We are committed
to creating a company-wide framework for
guiding Indigenous partnerships, procurement
and employment opportunities that is based on
an engagement culture of mutual respect and
understanding. Our strategy and approach are
informed by Hydro One’s Indigenous relations
policy and our participation in the Progressive
Aboriginal Relations program of the Canadian
Council for Aboriginal Business.
Across Ontario, 104 First Nations communities
are served by Hydro One Networks and Hydro
One Remote Communities. Understanding and
responding to their concerns is vital to maintaining
our status as a trusted partner. We have taken
numerous actions to address common issues
raised by community leadership and customers
in a number of engagement sessions.
Key ESG policies, programs and
management systems guiding our
actionsinclude:
Indigenous relations policy
Stakeholder engagement policy
Community relations policy
Indigenous
Partnerships
KEY CONCERNS ACTIONS TAKEN TO ADDRESS ISSUES
• First Nation communities felt disproportionately
impacted by high electricity costs at the
individual customer and community levels.
• Hydro One implemented a local program to helpcustomers reduce and manage their
payment arrears.
• Provincial initiatives delivered by Hydro One, including the Fair Hydro Plan, the First Nations
conservation program and the Affordability Fund Trust, helped customers with their bills.
• Frequent or lengthy outages impacting
electricity supply toreserve residential and
business customers.
• First Nation community growth plans limited
by existing capacity.
• First Nation communities power system strategy developed to make capital investments to
both distribution and transmission assets servicing First Nation communities with the goal to
improve reliability.
• Aging assets are being replaced and new technologyis being leveraged to reduce the number
and duration of unplanned outages.
• Number of planned outages has been reduced by bundling renewal work where possible.
• Hydro One is performing forestry maintenance more frequently to reduce tree-related outages.
• Piloting battery storage solutions to improve reliability.
• Outdated access rights/permits and
compensation issues for transmission and
distribution assets on reserve land.
• Notification protocols for planned and
un-planned disconnection work.
• Progressed with negotiations to settle outstanding occupancy matters.
• Developed a plan to address access rights in a fair and timely manner.
• Developed communication protocols with communities to share updates on planned work.
• Indigenous communities expressed interest
in more procurement, ownership and other
business opportunities.
• Increased available procurement opportunities and delivered numerous workshops to
engage Indigenous businesses.
• Entered into a partnership agreement related to the Niagara Reinforcement Project with
two First Nation communities.
• Indigenous communities are interested in
more employment opportunities and training.
• Increased employment with new permanent hires and set targets and developed plans to
increase Indigenous employment.
• Developed partnerships with key organizations and universities to recruit Indigenous employees.
• Created the Indigenous Network Circle, an internal group of Indigenous employees promoting
Indigenous employment and training.
Performance
We worked to increase Indigenous
representation in our workforce. We continue
to partner with organizations to break down
barriers to Indigenous employment across the
province. In particular, we support organizations
that address larger socio-economic issues
and those that provide training opportunities.
In 2019, we hired two full-time Indigenous
employees, seven temporary Indigenous
employees and an additional 75 Indigenous
employees on a term or contract. We fell just
short of meeting our hiring goal for Indigenous
regular employees of 2.48% in 2019 and will
continue to strive to achieve this goal in 2020.
However, we met our summer hiring goal, with
15% of positions filled by Indigenous students.
34
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
Indigenous Partnerships Community Relations Powering Economies
In 2019, we increased our procurement
spending with Indigenous businesses by
4.8% to $41.3 million – our highest-ever
annual Indigenous spend. We partnered with
73 Indigenous businesses to procure these
goods and services, ultimately helping to
build capacity, support direct and indirect job
opportunities and drive economic development
across the province.
Hydro One has a dedicated community
investment program to support Indigenous
communities. This program supports four key
pillars: youth, education, recreation and culture.
These pillars were determined based on input
from communities and in consideration of the
Truth and Reconciliation Commission’s Calls
toAction.
As part of this program, in 2019, we returned
as a presenting sponsor of the 2019 Little
Native Hockey League tournament – an annual
gathering that brings together over 2,500
competitors from Indigenous communities across
Ontario. With our partner Indspire, we also
awarded the Leonard S. (Tony) Mandamin
Scholarships to 20 Indigenous students enrolled
in colleges and universities across Ontario.
We collaborated with the Canadian Union
of Skilled Workers leadership to promote
Indigenous hiring through specialized training
programs offered in both Ottawa and Sudbury.
In partnership with the Infrastructure Health and
Safety Association (IHSA) and the Congress of
Aboriginal Peoples, we hired seven Indigenous
trainees from IHSA’s Line Crew Ground
Support Program to work on lines projects in
eastern Ontario.
We continue to strengthen our relationships with
the customers we serve. In 2019, we held almost
600 one-on-one sessions with our customers.
We also conducted an Indigenous customer
satisfaction survey – achieving an almost 90%
customer satisfaction level. The positive result
reflects our ongoing effort to be a key presence
in First Nation communities and the impact of
the decreases in electricity bills for on-reserve
Indigenous customers.
Indigenous Procurement Spend
($ millions)
2019 2018 2017
$41.3
$39.4
$24.1
~90%
Achieved almost 90%
customer satisfaction with
our Indigenous customers.
CHAMPIONING INDIGENOUS BUSINESSES
In September 2019, we hosted the Hydro One Indigenous
business fair – a showcase for over 40 Indigenous businesses
from across the province. The fair offered these businesses
an opportunity to network with Hydro One representatives
while highlighting their products and services. It was also
an opportunity for these businesses to learn more about our
procurement needs and Hydro One’s commitment to increasing
procurement from Indigenous businesses.
The fair, which was held in Toronto and complemented the nine
procurement workshops we ran across the province, will become
an annual event as we continue to pursue mutually beneficial
relationships with Indigenous businesses.
Ronald Wells, owner of Indigenous business Cancom Security
and provider of security services at various Hydro One sites,
noted, “Cancom Security has grown from 200 guard staff to over
1,200 since we began working with Hydro One. This relationship
has given us credibility and opened several doors to grow and
build throughout Ontario. It is a mutually beneficial and strong
relationship between Cancom Security and Hydro One, and is
reflective of Hydro One’s commitment to First Nations businesses.”
We firmly believe that
positive and proactive
relationships with
Indigenous peoples will
benefit all communities.
35
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
Indigenous Partnerships Community Relations Powering Economies
SUPPORTING EQUITY PARTNERSHIPS WITHFIRSTNATIONS
Hydro One operates on the traditional territories of many Indigenous
communities across the province. As such, we have a responsibility to help
grow the Indigenous economy while building meaningful relationships based
on mutual respect.
In 2019, Hydro One completed a major transmission project, the Niagara
Reinforcement Line, which is now owned in partnership with two First Nations,
Mississaugas of the Credit First Nation and Six Nations of the Grand River First
Nation, through the Six Nations of the Grand River Development Corporation.
Construction of this 76-kilometre transmission line was completed by A6N,
an Indigenous-owned contractor, and placed in-service in August 2019. This
partnership model enables the delivery of critical infrastructure that delivers
economic value to the people of Ontario, while ensuring key benefits flow to
local First Nation communities such as overall capacity building, along with
direct and indirect job opportunities.
“The Niagara Reinforcement Line will not only generate millions of dollars of
benefit for the Six Nations community, it’s also a step forward for Indigenous
participation in the economy,” said Matt Jamieson, President and Chief
Executive Officer, Six Nations of the Grand River Development Corporation.
“We have proven our ability to partner and have demonstrated unprecedented
capacity to leverage our skilled labour to drive economic development, not
only within our community, but across Ontario.”
Key Programs & Future Initiatives
We continue to pursue partnerships at the
college and university level to bolster our
Indigenous hiring levels. For example, we
developed a partnership with McMaster
University’s Indigenous Service Centre. During
the summer of 2019, Hydro One Indigenous
employees attended a Fire Talk session hosted
by McMaster’s Indigenous Education Council,
and spoke about their work experience with
Hydro One.
Builder of Choice
Hydro One is undertaking development
work to build the largest transmission line
project in nearly a decade between Thunder
Bay, Atikokan and Dryden. The Waasigan
Transmission Line traverses an area with nine
municipalities, ranging from large urban
centres to traditional territories of several
Indigenous communities.
Supporting local Indigenous communities and
businesses is important to Hydro One. As part
of our EA process for Waasigan Transmission
Line project, Hydro One will employ a unique
corridor modeling program for the first time to
solicit feedback from key regional stakeholders
and Indigenous communities early in the process.
This values-driven assessment supports the
identification of alternative routes, taking into
account potential impacts to Indigenous rights,
socio-economic, technical and environmental
factors. To further support this unique modelling
approach, Hydro One organized community
information centres to solicit community feedback,
build local relationships and collect local
knowledge that are vital input into the EA study.
We plan to take the following actions in 2020
to strengthen our Indigenous partnerships:
• Continue to implement our multi-year
Indigenous hiring plan and continue
engagement with Indigenous communities on
our customer programs and capital projects.
• Progress meaningful consultations with over
30 Indigenous communities on the Waasigan
Transmission Line and the Chatham by
Lakeshore Line through virtual meetings or
in-person if possible.
• Attain higher recertification in the Canadian
Council for Aboriginal Business Progressive
Aboriginal Relations program to reflect our
achievements with Indigenous communities
to date.
• Engage First Nations and Métis customers as
part of our investment plan and rate filing.
“The Niagara
Reinforcement Line will not
only generate millions of
dollars of benefit for the
Six Nations community,
it’s also a step forward for
Indigenous participation in
the economy.”
— Matt Jamieson, President and CEO, Six Nations
of the Grand River Development Corporation
36
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
Indigenous Partnerships Community Relations Powering Economies
Community Relations
Approach
Our shared success depends on our ability
to build trust as a reliable partner and good
neighbour for our customers, communities
and the people of Ontario. We strive to
build strong relationships with communities
to support our work program through best-
in-class engagement practices. We monitor
and measure our performance against
leading international standards, and align our
efforts with the International Association of
Public Participation standards. Our proactive
engagement includes two-way dialogue, with a
goal to fully consult and advise our stakeholders
throughout a project lifecycle to ensure projects
move smoothly and to achieve our vision as a
good neighbour and partner of choice. We
are committed to sharing the benefits of our
socio-economic development initiatives, building
consensus and investing in our communities.
Performance
We integrate community considerations into the
earliest stages of asset planning and design for
our capital projects, always seeking to strike
a balance between Hydro One’s plans and
community needs.
Building strong relationships with communities
and stakeholders is an important element in
bringing capital investments into service. In
2019, the community relations team continued to
build trust and a local presence by:
• providing support to 30 forestry projects in
areas such as Ottawa, Oakville, Mississauga;
• providing support to 83 capital projects in
key areas such asToronto, Thunder Bay,
Dryden, Leamington, Ottawa; and
• hosting more than 130 meetings related
to capital projects and 105 community
information centres and workshops.
Through our community investment program,
Building Safe Communities, we support
communities where we live and work through
our commitment to live, work and play safe.
In 2019, our signature partners included
the Advanced Coronary Treatment (ACT)
Foundation, Parachute’s Safe Kids Week,
Scouts Canada and the Little Native Hockey
League. Through these partnerships, over
200,000 young people in Ontario learned
how to play safe and how to save a life.
We also provided more than 125 donations
and sponsorships to over 70 community
organizations across the province and launched
our corporate employee volunteer matching
program to ensure employee volunteer hours go
even further.
Community Investment
Donations andSponsorships
($ millions)
2019 2018 2017
$2.8
$2.6
$2.2
Our shared success
depends on our ability
to build trust as a
reliable partner and
good neighbour.
37
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
POWERING DOWNTOWN TORONTO
Beneath the City of Toronto lies a labyrinth of underground corridors
and transmission cables that help power critical institutions such
as hospitals, colleges and universities, commercial and residential
buildings and major entertainment venues. Much of the power and
transmission infrastructure was installed in the 1950s and was long
overdue for an upgrade.
In 2019, we conducted extensive stakeholder consultations to garner
support and incorporate residential and business concerns into our
project plans. The typical methods of stakeholder engagement tracking
were enhanced through the use ofa new stakeholder management
tracking tool.This allowed us to collect community feedback, build
support for the project and develop a mutually preferred construction
route through the heart of the city.
Hydro One met extensively with government, business and residential/
neighbourhood groups, and hosted two community information centres
and a series of workshops with more than 50 municipal partners and
key stakeholder groups, to build understanding and ongoing support
for the Power Downtown Toronto project.
Indigenous Partnerships Community Relations Powering Economies
Key Programs & Future Initiatives
Throughout the year, our community relations
team provided support to advance our forestry
beautification and community restoration efforts,
and to ensure competitive procurement efforts on
key projects.
Ongoing stakeholder consultations and our
new stakeholder tracking tool helped to identify
key trends and project risks that we shared with
various regulatory bodies – specifically, concerns
that the planning and regulatory process for
large electricity infrastructure projects do not
move at the pace of business; the ongoing need
for affordable community energy infrastructure;
and the use of herbicides, through our forestry
program, on private and community land.
We plan to take the following actions in 2020to
enhance our status as a trusted partner and to
build and invest in our community partnerships:
• Through community meetings – virtually or in
person – support our work on the Waasigan
Transmission Line, Chatham by Lakeshore Line
and Power Downtown Toronto projects.
• Refresh our employee giving campaign,
Power to Give, to increase engagement and
participation across the province.
• Build new community partnerships to address
the challenges faced by communities due to
COVID-19.
PANDEMIC RESPONSE
As a trusted partner, Hydro One partnered with Feed
Ontario to help the province’s food banks support
individuals in need. We committed $300,000 worth of
food to its COVID-19 Emergency Food Box Program, and
are also matching additional employee donations made to
Feed Ontario through our Power to Give campaign.
Hydro One is also supporting First Nations and Métis
communities in providing critical aid to address the
COVID-19 pandemic. Through a new partnership with
GlobalMedic, a registered Canadian charity specializing
in disaster relief and aid, 10,000 kits of food and safety
supplies have been delivered to First Nations communities
impacted by the pandemic. Hydro One is also supporting
the Métis Nation of Ontario’s pandemic relief fund
and its 31 Community Councils in providing necessities
such as food, medical and pharmaceutical supplies to
its vulnerable citizens. Together, these partnerships will
directly support the well-being of community members so
they can focus on what matters most – their loved ones.
Our employees have stood ready to lend a helping hand
and to support the province in keeping Ontarians safe
and to slow the spread of COVID-19. In April 2020,
our customer service team began supporting Ontario’s
Ministry of Health in its efforts to inform returning travelers
of Canada’s mandatory quarantine measures to combat
COVID-19. We are proud to offer a lending hand to
protect the most vulnerable in society and support the
communities where our crews work and live.
38
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
A Safer Future for Kids
Each year in Ontario, 50,000 children visit
the emergency department for fall-related
injuries. That is why Hydro One is a sponsor of
Parachute’s Safe Kids Week, an annual public
awareness campaign to raise awareness about
preventable childhood injuries. In 2019, more
than 150 community partners across Canada
joined us for Safe Kids Week, with Parachute
and HydroOne providing more than 115 toolkits
to run community events across theprovince.
A Safer Future for Communities
With 80% of out-of-hospital cardiac arrests
occurring at home or in public places, research
shows that early CPR combined with early
defibrillation can increase the chance of survival
by up to 75%. With that in mind, we have been
supporting the ACT Foundation since 2000. The
ACT Foundation is a national charity working
to ensure high school students receive CPR and
defibrillation training. Our funds support training
students on how to save a life and helping the
ACT Foundation to bring their programming
to more rural and First Nations schools.
Communities power Ontario, and we are
grateful to play a part in making them safe.
Hydro One’s signature community investment
program is Building Safe Communities. We
partner with organizations across Ontario that
support safety training and safe play. In 2019
alone, we provided training to about 200,000
youth across Ontario toteach them lifesaving
skills and how to play safe.
In addition to joining community fairs and
festivals across Ontario, here are just some of the
safety initiatives our Building Safe Communities
program supports:
Head Safe
Hydro One and Scouts Canada partnered in
2019 to launch Head Safe – a new hands-
on program aimed at educating families on
the impacts of head injuries, the importance
of prevention and safe return to play. With
concussions representing more than one in
fivestudent injuries treated in Ontario, we
want to ensure that families prepare for any
outdoor adventures with safety in mind.Head
Safe provides youth, volunteers and families
in over 25,000 households with essential
educational tools – head injury first aid, how to
recognize the early symptoms of a concussion,
important safety measures to protect against
head injuries and role play on how to respond
toreal-lifescenarios.
Building Safe
Communities
POSSIBILITIES OF TOMORROW
Indigenous Partnerships Community Relations Powering Economies
“Our commitment to safety goes beyond the
workplace to building safe communities where we
live, work and play. Our partnership with Scouts
Canada will make a difference by providing
young people with the tools and training to
prevent and treat head injuries.”
— MarkPoweska, President and CEO
39
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
Indigenous Partnerships Community Relations Powering Economies
Powering Economies
Approach
Hydro One maximizes the value we bring to
Ontario communities through our economic
contributions. Our contributions include
taxes paid, employee wages and benefits,
procurement spending and community
investment. We recognize that a strong, diverse
supplier community is essential to the province’s
economic vitality.
As a partner in the province’s economic
development, regional suppliers play a large
role in supporting our work programs and
projects. Our approach is guided by our
supplier code of conduct, which outlines our
expectations of all suppliers to Hydro One.
We also conduct biannual reviews of our
suppliers using a vendor embargo review
tool to screen against companies that are
designated terrorist organizations or that are
subject to international embargos. If a supplier
is flagged from this review, we will cease all
business relations with them.
Performance
In 2019, we added approximately $1.5 billion in
economic value to cities, towns and communities
through buying goods and services. One of
the biggest contributions we make is through
the creation of high-quality employment
opportunities, and we directly employ an
average of approximately 8,800 people.
Key ESG policies, programs and
management systems guiding our
actions include:
Supplier code of conduct
24. Hydro One operates within the OEB’s regulatory framework for electricity transmitters and distributors, which is designed to support the cost-effective planning and operation of the electricity
network and to provide an appropriate alignment between a sustainable, financially viable electricity sector and the expectations of customers for reliable service at a reasonable price. As
Hydro One operates in a regulated environment, the OEB approves both the revenue requirements and the rates charged by Hydro One’s regulated transmission and distribution businesses.
Under the OEB’s regulated framework, the rates are designed to permit the Company’s transmission and distribution businesses to recover the allowed operating costs and to earn a formula-
based annual rate of return on its rate base. Rate base represents the Company’s investments in sustaining and developing capital assets. This regulatory framework has the effect of deferring
the generation of revenues into future periods over the useful life of the capital assets. This number does not include economic value generated or distributed outside of Canada.
25. We define Ontario goods and services purchased by the vendor address.
26. Economic value distributed as defined by the GRI disclosure 201-1. This is not a financial reporting indicator and should not be confused with our year-end financial statements.
27. Economic value generated includes revenues and gains on asset dispositions.
28. Economic value distributed includes capital expenditures which is recovered in revenues over the life of the asset as per OEB's regulatory framework. The capital expenditure amounts are
presented as gross figures and include all payments related to capital work. Therefore, they are different to the year-end numbers presented in our 2019 financial statements.
29. Payments to suppliers include the cost of goods and services provided by vendors and contractors including amounts paid for the cost of power. Excludes amounts paid to Indigenous
businesses as separately disclosed.
30. Payments to employees include wages and benefits paid to employees and pensioners as well as severance.
31. Payments to providers of capital include dividends paid, interest on debt, and costs to secure capital including amounts paid to credit agencies.
32. Payments to government include amounts paid for income taxes, excise taxes, payroll taxes and property taxes. Excludes deferred taxes.
33. Payments to Indigenous businesses include amounts spent on the purchase of goods and services.
Supporting Economies:
• $7.3 billion, approximately, in economic
value distributed across Canada
24
• $1.5 billion of goods and services
purchased
• 79% of total procurement spent with
Ontario suppliers
25
, supporting local
goods and services
Economic Value Distributed
26
Economic Value as of December 31, 2019. All amounts in millions of dollars.
Economic Value
Generated
27
Economic Value
Distributed
28
$6,481
Revenues
$7,457
Payments to
Suppliers
29
$4,574
Payments to
Employees
30
$1,323
Payments to
Providers of
Capital
31
$1,102
Payments to
Governments
32
$414
Payments to
Indigenous
Businesses
33
$41
Community
Investments
$3
Operating Costs: $3,662
Capital Expenditures: $912
Operating Costs: $529
Capital Expenditures: $794
Economic Value Distributed
26
Economic Value as of December 31, 2019. All amounts in millions of dollars.
40
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Be a Trusted
Partner
We also saw savings through our transformer
oil recycling program. In 2019, we recycled
over 500,000 litres of clean transformer oil,
reducing our costs and our emissions related to
the purchase, transportation and refining of this
mineral oil.
Our liquid and non-hazardous waste
management programs also recycle metal and oil
from the disposal of oil-filled electrical equipment.
In 2019, we recycled 1,050 tonnes of equipment
waste and over 3 million litres of oil, resulting in
approximately $3.5 million in rebates.
We plan to take the following actions in 2020
toadd value to our supply chain and power
localeconomies:
• Continue to support Ontario businesses, work
with Indigenous-owned companies, and
work with suppliers to expand Indigenous
participation in their contracts.
• Expand the supplier performance
management program by 28 new suppliers.
• Review our supply chain to ensure we have
enough critical goods stockpiled with our
suppliers in light of COVID-19.
Key Programs & Future Initiatives
We strive to be a supply chain leader through
programs and technologies that protect people
and manage impacts on the environment. We
pursue alignment with suppliers that share our
vision of sustainability and safety while providing
the right material or service at the right place,
at the right time, and for the best value.
We launched a supplier performance
management program in 2019 to develop
closer ties to our supplier base and to improve
overall coordination. As part of this program, we
continue to educate our team on ways to identify
and foster First Nation procurement opportunities.
Through this, we have successfully expanded our
supplier base of Indigenous businesses.
Cost Savings Through Recycling
We have achieved significant productivity
savings through our cost recovery model.
In 2019, we achieved approximately $30
million in savings for costs or materials related
to our recycling, recovery and technology
enhancements in our fleet program.
Indigenous Partnerships Community Relations Powering Economies
Amount of Transformer Oil
Recycled Annually
(litres)
Hydro One’s transformer oil recycling program
cleans and reuses transformer oil. On average,
we recycle half a million litres of oil annually,
which positively benefits the environment and
saves costs.
515,071L
515,0712019
584,726
539,653
2018
2017
In 2019, we recycled over
500,000 litres of clean
transformer oil, reducing
our costs and our emissions
related to the purchase,
transportation and refining
of this mineral oil.
41
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
Advocate for
Our Customers
Customer satisfaction is central to the success
of Hydro One’s business. We are committed to
advocating for our customers and to helping them
find the right solutions based on their unique needs.
Those solutions include helping our customers save
money, providing them with actionable insights,
and expanding their access to energy offerings to
become the provider of choice to customers.
42
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
Customer Service
Approach
The electricity industry is evolving and so are the
needs of our customers. Technological advances
and the growth in distributed energy sources
are changing our industry, bringing opportunities
to deliver new energy products and services to
our customers.
Hydro One will continue to advocate for
our customers and help them make informed
decisions. We are transforming our customer
experience by creating digital channels that
enhance existing services, introducing new
services and offering innovative solutions to
meet their energy needs. We are focused on
making it easier to do business with Hydro
One, and addressing our customers’ needs for
affordability and reliability.
Performance
We enhanced Hydro One’s status as a
trusted partner by introducing a new power
factor correction service to help customers
whose large equipment impacts the quality
of their electrical supply; by advocating for
our seasonalcustomers; and, by providing
dedicated account executives for large
transmission and distribution customers.
In an effort to be more environmentally
conscious and save money, Hydro One became
the first utility in Ontario to auto-enroll customers
in e-billing. Through the success of our e-billing
program, we mailed out approximately
1.5 million fewer paper bills in 2019.
To support our large customers, in 2019, we
hosted an energy conference to generate
awareness around changes in the province’s
energy landscape. Following feedback from the
conference, our account managers undertook
an evaluation of our connection process and are
rolling out improvements as part of a focused
project to make connections simpler. Various
other customer initiatives are also underway,
including a tracking tool that enables customers
to monitor the progress of their connection
request from start to finish.
We also increased the number of new
distribution customer connections, responded
to requests for more power from customers,
and brought a second transmission station into
service in Leamington.
Customer Service Accessibility & Affordability Reliability
Key ESG policies, programs and
management systems guiding our
actions include:
Customer Commitments
34. This includes the customer group of +50KW.
Customer Satisfaction
Distribution – Residential and
Small Business*
In 2019, we achieved a residential and small
business customer satisfaction score of 86% –
our highest in over a decade. The increase can
be attributed to improved customer experience,
reliability, rates and the strength of the Hydro
One brand.
2019 2018 2017
86%
76%
71%
The improvement in our commercial and
industrial customer satisfaction rate reflects
improved communication, service quality and
advocacy on behalf of Hydro One’s customers.
Distribution
34
– Commercial
and Industrial*
Transmission*
Transmission customer satisfaction was
87%, reflecting our continued focus and
commitment to this customer segment.
86%
Customer satisfaction
score for our distribution
residential and small
business customers*
2019 2018 2017
79%
77%
73%
2019 2018 2017
87%
90%
88%
43
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
PANDEMIC RESPONSE
Hydro One is committed to providing
customers with relief, choice and
flexibility now and in the future. We
were the first utility in Ontario to launch
a Pandemic Relief Fund which provides
financial assistance and payment
flexibility to customers experiencing
hardship. Through this program, we are
able to help our customers avoid the
stress of falling behind by connecting
them to the right programs to meet their
unique needs. We have also returned
about $5 million in security deposits
to more than 4,000 businesses across
the province, suspended late fees and
extended our Winter Relief Program
to ensure no customer is disconnected.
We will continue to advocate for
choice, relief and flexibility on behalf
of our customers as they navigate this
unprecedented situation.
Key Programs & Future Initiatives
Connecting Our Customers with
Real-Time Information
We are finding innovative ways to use technology
to better serve our customers, including the
introduction of a new portal for our commercial
and industrial customers to help them track their
usage, improve their energy efficiencies and
reduce their costs.
We also updated Hydro One’s customer outage
map and application, which includes advanced
features, such as short message service (SMS)
outage alerts, weather radar and street level
detail. Other new features include the ability to
view outage information for individual homes,
cottages or businesses and receive updates
every 10minutes as information comes in from
crews on-site. We have enrolled approximately
500,000 customers for proactive outage
alerts, providing them with convenient and
real-timeinformation.
We plan to take the following actions in 2020
to enhance the customer experience and make
iteasier to do business with Hydro One:
• Grow relationships with government and
industry partners to advocate on behalf of
customers for relief, flexibility and choice.
• Increase the number of new connections for
our distribution customers in response to high
volumes and requests for access to power.
• Continue to power up local communities and
support local economic growth across all of
Ontario where business continues to expand.
Customer Service Accessibility & Affordability Reliability
500,000
Customers enrolled for
proactive outage alerts.
We are finding
innovative ways to use
technology to better
serve our customers.
SUPPORTING LOCAL ECONOMIES
In recent years, the greenhouse industry in southwestern Ontario has been
booming in and around Leamington. We heard from local government and
business leaders that this community needed significantly more power to
support the growth it was experiencing. We worked collaboratively with the
IESO and local community leaders to understand the needs in the area so
that new infrastructure could be built to support the growing demand
for electricity.
We advocated for a new, major transmission line to provide 400 additional
megawatts of power to the Leamington area. This collaborative advocacy work
was a success: in June of 2019, the IESO requested Hydro One build a new
transmission line from Chatham to Lakeshore.
We will continue to work with our customers to better understand their emerging
needs and ensure we have a power grid that supports local economies.
44
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
HELPING OUR CUSTOMERS SAVE FUEL COSTS
We introduced a new fuel-switching program in 2019 to provide
our residential customers with the support they need to effectively
switch their fuel source from propane to electricity – potentially
saving them up to $600 annually on their fuel bills. The fuel-
switching program targets residential customers that use oil and
propane for space and water heating, in areas where there is no
natural gas infrastructure. This program will help them save money
by switching to electricity.
Customer Service Accessibility & Affordability Reliability
Approach
Hydro One continues to advocate for our
customers on the issues that matter most to
them, including lower rates, improved reliability,
environmental protection and customer
experience. We remain sensitive to the needs
of our low-income customers, providing advice
and guidance on programs that will help them
reduce their electricity bill.
Performance
We advocate in various policy forums to
ensure customer concerns about affordability,
commercial competitiveness and reliability are
heard by regulatory authorities. Through our
enhanced digital channels, we have advised
customers on energy-efficient solutions and
opportunities to reduce their costs, particularly
where alternative fuels are more expensive.
We focus on making the cost of adopting better
technology more affordable, for example, by
providing fuel-switching incentives.
We deliver energy retrofit programs that help
customers save energy and money, including the
Affordability Fund Trust, which provides eligible
customers with energy-saving measures and
retrofits at no cost.We administer this program
on behalf of 64 Ontario local distribution
companies. Beneficiaries of this program are
those who would not qualify for other low-income
assistance programs, yet struggle to afford their
electricity. In 2019, over 25,000 Hydro One
customers participated in this program.
For Ontarians who are behind on paying their
electricity bill and face having their service
disconnected, we offer the Low-income Energy
Assistance Program (LEAP) – a one-time only
emergency payment. For those who qualify,
LEAP pays up to $500 of the amount owing on
a bill and up to $600 if the customer’s home is
electrically heated.
35. Estimated gross savings as calculated by Hydro One.
36. Calculation estimate based on the amount of power the average household uses per year.
Accessibility &
Affordability
We help our customers save on their electricity costs by providing
energy conservation advice and offering a toolbox of energy
conservation solutions including through our Affordability Fund Trust.
The energy savings in 2019 are equivalent to the amount of power
that 20,500 households use in a year
36
.
185,017MWh
35
2019 Energy Savings from
Conservation Programs*
We advocate for our customers on
the issues that matter most to them,
including lower rates, improved
reliability, energy conservation and
customer experience.
45
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
OVER HALF THE COST COMES
FROM GENERATION
54.6¢
DISTRIBUTION AND
TRANSMISSION
27. 5¢
11. 5¢
1.9¢
4.5¢
Customer Service Accessibility & Affordability Reliability
Key Programs & Future Initiatives
In 2019, we realized productivity savings of
$202.3 million, which brings the total saved
since 2015 to over $450 million. We understand
affordability is a key concern and we will continue
to do our part to drive costs out of the system and
pass on these savings to our customers.
As a trusted energy advisor, our customer
solutions team plans to offer new programs to
our commercial and industrial customers that
will drive energy efficiency, sustainability and
reliability. These include:
• Refrigeration efficiency program: For
commercial and industrial customers, this new
refrigeration efficiency program offers up
to $2,500, with customers choosing from a
menu of services and retrofits. We anticipate
customers could save about $100 monthly on
their electricity bills.
• Strategic energy manager pilot: This is a
pilot behavioural energy efficiency program
for up to 12 large industrial or multi-site
commercial customers. The program aims
to deliver 3% kWh savings after one year
by advising our customers on how they can
change their behaviour so they consume less. 
• Power factor correction pilot: This pilot
program aims to increase system efficiency
and to save our customers money. When the
provincial restrictions on business are lifted,
we expect to offer this service to a subset of
our large customers in 2020.
RECONNECTING OUR MOST VULNERABLE CUSTOMERS
A customer from one of our First Nations communities had recently
fallen behind on paying their bills, making every day a struggle. The
customer was so far in arrears, they had been living without power.
This dire situation was brought to the attention of our Indigenous
relations teams, who quickly pulled together a plan to reconnect their
service and help them to make manageable payments on their account.
We reduced the customer’s balance by crediting back late payment
charges, reducing the remaining balance by half, and by setting up
monthly payments that the customer has been able to maintain since
Hydro One reconnected their service.
We also enrolled our customer in Ontario’s Electricity Support
Program and helped them to leverage the First Nations delivery credit
to keep their bills down in the future. Our goal is to help them get their
account back into a healthy status, and maintain that healthy status.
Now rather than being overwhelmed and anxious about their
finances, our customer says they are no longer worried about opening
their bill because they know they can work with Hydro One to find the
right energy solution. With their power back on and their account in
good standing, our customer says they are now enjoying making their
home a “home” once more.
We plan to take the following actions in 2020 to
support customer accessibility and affordability:
• Enhance our digital capabilities to reduce
operational costs and increase customer
engagement.
• Provide customers with insights on their usage
so they can more effectively manage their
energy consumption, as well as keep them
informed of changes and best practices in the
energy landscape.
Explaining Your Hydro One Bill
Did you know? On every Hydro One bill, only 27.5 cents on every dollar goes to Hydro One.
Based on 2019 rates and prices for a typical medium density household using 750 kWh a month.
Electricity
Time-of-use and tiered electricity prices
are set by the OEB. Hydro One collects
electricity charges and passes them to the
IESO. These charges are used to cover the
cost of electricity generation.
Regulatory Costs
Primarily paid to the IESO to manage
electricity supply and demand in the
province.
Taxes
Paid to provincial and federal governments.
Other Delivery Costs
For line losses paid to generators, and a
Smart Metering Entity charge paid to IESO.
Hydro One’s Delivery Costs
This is the amount approved and used
to build, maintain and operate 153,000
kilometres of powerlines, 52,000 steel
towers and 1.6 million wood poles over its
960,000 square-kilometre service area for
its customers.
• Provide energy retrofits at no cost to our
residential customers through the continued
implementation of the Affordability Fund Trust.
Affordability will remain a key focus of our
customer service in 2020 as we anticipate the
COVID-19 pandemic will continue to impact our
residential, business and commercial customers.
In recognition of this, we voluntarily proposed
deferring rate increases for our transmission
customers. We will also continue to advocate for
affordability for all of our customers.
46
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
Customer Service Accessibility & Affordability Reliability
Reliability
Approach
Hydro One is committed to maintaining a
reliable electricity system. We do this by
replacing, repairing and upgrading equipment
to keep the public safe and to reduce the number
of power outages. We invest in technology that
allows us to modernize Hydro One’s grid. In
addition, we collaborate with the IESO and our
customers to ensure our infrastructure investment
plan meets the capacity needs of customers,
communities and the provincial economy.
Performance
We are continuously working to improve the
reliability of Ontario’s power supply, including
reducing the number and duration of distribution
interruptions our customers experience and
maintaining the top tier performance of the
transmission system to support continued growth
in the province of Ontario.
We measure our reliability performance based
on our system average interruption frequency
index (SAIFI), system average interruption
duration index (SAIDI), and our distribution
customer average interruption duration index
(CAIDI) numbers.
For 2019, we aimed to reduce our distribution
SAIDI to an average of six hours per customer
per year. Unfortunately, equipment failures and
severe weather hindered our ability to achieve
this target, moving the annual distribution SAIDI
to seven hours. It is important to note that over
the 10-year average duration of outages
experienced by our customers
37
, reliability has
improved by almost 35%. Additionally, in 2019,
customers experienced
38
the least number of
interruptions since 2017.
37. Including loss of supply and force majeure.
38. Including loss of supply and force majeure.
39. Our distribution SAIDI and SAIFI numbers do not include any force majeure events. We define a force majeure event to have occurred when electricity service to 10% or more of our
distribution customers has been interrupted by an event.
Hours CAIDI
(per customer per year)*
Distribution CAIDI is a key measure of success
in delivering reliable power to our customers.
2.8
2.82019
3.1
3.4
2018
2017
Distribution
39
Interruptions SAIFI
(per customer per year)*
Distribution SAIFI performance declined slightly
due to equipment failures and severe weather.
2.5
2.52019
2.2
2.3
2018
2017
Hours SAIDI
(per customer per year)*
Distribution SAIDI performance declined
slightly due to equipment failures and
severe weather.
7. 0
7.02019
6.8
7.9
2018
2017
Our CAIDI improved by
9.7% in 2019 mainly due
to distribution system
modernization and
an improved ability to
restore power faster and
more efficiently.
47
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
Transmission
40
Interruptions SAIFI
(per delivery point per year)*
The improvement in Transmission SAIFI
performance was due to fewer equipment and
weather-related problems.
1.0
1.02019
1.2
1.1
2018
2017
Hours SAIDI
(per delivery point per year)*
Our transmission SAIDI performance improved
slightly due to faster restoration times when
there were electrical contacts by objects and
equipment problems.
0.6
0.62019
0.8
0.6
2018
2017
Key Programs & Future Initiatives
We are maintaining and improving the reliability
of our distribution system by advancing two
keyinitiatives:
• We are expanding our distribution
modernization program to install devices that
enable remote monitoring and control of the
system to determine when and where outages
occur and remotely take action to restore
power. We have installed almost 1,200
sensors and sectionalizing devices. In 2019,
this resulted in savings of over 5.8 million
customer interruption minutes.
• We are advancing our vegetation
management program, which trims problem
trees and vegetation more often to improve
the overall safety and reliability of the system.
In 2019, 2.4 hours per customer were caused
by tree-related outages as compared to
2.8 hours per customer in 2018.
For our transmission system, our efforts to
maintain and improve our reliability performance
centre around the following initiatives:
• Renewal investments to proactively replace,
repair and upgrade equipment to minimize
the risk of power outages.
• Post-event investigations and corrective action
planning to better understand the root causes
of significant system outages. This work helps
us identify and implement corrective actions
and drive continuous improvement.
• Employing advanced analytics and
newtechnologies for online monitoring
ofcritical transmission assets. This allows
ustoidentify any maintenance needs or
assets at risk of failure in order to minimize
theimpact of outages, as well as identify
outage fault locations and to allow for
quickoutage restoration.
• Improving performance by addressing
“outlier” reliability issues through our
strategicinvestments.
Customer Service Accessibility & Affordability Reliability
40. The Transmission SAIDI and SAIFI numbers do not include any events with more than 10,000 MW*minutes unsupplied
energy, initiated by uncontrollable causes, such as weather, environment, or foreign object interference. Due to change
in methodology our previously published 2017 and 2018 SAIDI/SAIFI has been updated and no longer include force
majeure events.
PANDEMIC RESPONSE
We recognize our critical role in supporting families, the economy and those on
the frontlines fighting this virus. That is why we have taken several steps to support
essential services during this time including: proactively patrolling power lines that
feed hospitals and other critical infrastructure; prioritizing projects that enable our
food supply, from connecting greenhouse growers to powering food depots and
grocery stores and; connecting new homes to ensure people have shelter.
Our crews have demonstrated that we can execute a coordinated response to
any outages in this new environment, quickly and safely and without any delay
to restoration times. We are proud of the role that we play in energizing life for
Ontarians, now and in the future.
We plan to take the following actions in
2020 to improve the reliability of Ontario’s
power supply:
• Further roll out our distribution modernization
program to install devices that enable remote
monitoring of the system to determine when
and where outages occur and remotely take
action to restore power.
• Improve storm preparedness and response,
leveraging tools and technology, with more
people on call.
48
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Advocate for
Our Customers
POSSIBILITIES OF TOMORROW
Celebrating 20 Years of Partnership
and Innovation with Remote and
First Nations Communities
Ontario’s Far North covers 42% of the
province’s land mass and is home to
24,000 people, 90% of them First Nations.
The region provides essential habitat for
more than 200sensitive species, including
species at risk likewoodland caribou and
wolverine. It is home to Ontario’s only
populations of polar bears, beluga whales
and snowgeese.
Hydro One Remote Communities has been
generating and delivering electricity to
thousands of customers across Ontario’s Far
North for over 20 years
41
. In that time, we
have worked hard to build trust and ensure
the remote communities we serve benefit from
our presence. Since the cost of living in the
Far North is high, we operate our business to
break-even and we do not make a profit.
Operational Excellence
In such a harsh and unforgiving climate,
reliability is at the heart of what we do. Our
electricians, line maintainers, mechanics,
engineers and technicians respond to
emergency power outages 24 hours a day,
7 days a week. In 2019, our generation
availability was 99.9% across our entire
system– one of the most reliable of
comparable companies in Canada.
Most of the communities we serve are “off-
grid”, meaning they are not connected to the
Customer Service Accessibility & Affordability Reliability
electricity grid. Currently, the most reliable and
cost-effective method to generate power in these
remote communities is using diesel generators.
The team also powers remote communities by
operating 20 distribution systems and two mini-
hydro stations, and by supporting 17 customer-
owned renewable projects.
Innovative Partnerships
We invest in renewable generation and offer
the communities we serve the opportunity to
sell renewable electricity to us. This program
enables the connection of renewable energy
projects in northern communities while reducing
the impact of diesel fuel emissions.
August of 2019 marked the official opening
of the Giizis Energy Micro Grid in Kiashke
Zaaging Anishinaabek (Gull Bay First Nation)
– a fully integrated solar power and renewable
energy-storage system that is 100% community
owned. Hydro One Remote Communities is a
contributor and the operating partner of this
unique project.
One of the mini-hydro stations we own and
operate is Shoulderblade Falls – a 20+ year
partnership with Deer Lake First Nation.
Located on the Severn River, Shoulderblade
Falls began operating in 1998 and since then,
has reduced community diesel use on average
by a third each year.
Enhancing Community Capacity
We have built strong relationships in the
communities we serve. Seventeen of the
communities we serve are First Nations and
many of our suppliers and contractors are First
Nation enterprises. We often contract with local
Band Councils for services and provide local
employment opportunities for plant operation
and maintenance, meter reading, environmental
remediation and janitorial work.
In 2019, we enhanced our community outreach,
held 14 community meetings, and worked with
the Ontario Native Women Welfare Association
to promote customer affordability programs.
Our team also attended high school career fairs
to talk to youth about career opportunities in the
energy field, participated in the Opiikapawiin
Services Youth Energize workshop and
Kitchenuhmaykoosib Inninuwug’s Energy Day.
Outstanding Customer Service
Hydro One Remote Communities directly
services over 4,200 customers and we
understand that for each one, the cost of living
in the Far North is high. The communities
we serve have the lowest electricity rates in
Ontario, making our monthly bills affordable.
Our staff also works with customers to help
make paying the bills easier.
In our latest Hydro One Remote Communities
survey, we achieved 93% customer satisfaction
levels, with customers rating us highly because
they consider our service reliable, there are
few problems and they have electricity when
needed. This is the second highest satisfaction
level we have received since we began tracking
customer perceptions in 2003.
Environmental Leadership
We respect the land and water and work hard
to reduce the overall environmental impact of
our business. Our integrated Environmental
and Health and Safety Management System
– registered to the ISO 14001 environmental
standard since 2002
42
– helps us demonstrate
continual improvement in environmental,
health and safety performance and to better
manage the environmental aspects and safety
hazards and risks associated with our work.
We focus on reducing the amount of material
lost to the environment through spills and
releases; reducing air emissions by optimizing
or implementing new renewable energy
technologies; and controlling and reducing
noise emissions from our operations.
41. Hydro One Remote Communities Inc. was created 20years
ago from the demerger of Ontario Hydro for the purpose
of serving Ontario’s off-grid communities in the Far North.
Many relationships with First Nations communities pre-date
this period, with the expansion into remote areas of Northern
Ontario beginning in the late 1960s.
42. This is a standard of the International Organization for
Standardization that sets out the criteria for an environmental
management system and can be certified to.
Not only do we provide
sustainable, reliable and
affordable power to over
15,000 people, we are
helping remote communities
build capacity and innovate
for the future.
49
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Innovate and
Grow the Business
Innovate and
Grow the Business
Hydro One is pursuing emerging technologies
and responsible investment opportunities that
add value to our business, provide our customers
with alternative energy solutions, and help us
deliver a more environmentally sustainable
future. The electrification of the economy
presents powerful opportunities for future
economic and social growth.
50
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Innovate and
Grow the Business
Approach
Growth and innovation are central to our efforts
to provide value for our customers, shareholders
and stakeholders across communities in Ontario.
Sustainability is powering growth and innovation
at Hydro One. It is transforming how we think
about the energy products, services and
solutions we offer our customers. It is fostering an
entrepreneurial culture that is creating economic
and social value for all Hydro One stakeholders
including our employees, business partners and
the communities we serve.
While we continue to invest responsibly in our
core transmission and distribution businesses, we
are pursuing innovative sustainability investments
that are designed to energize life for people and
communities in Ontario today and into the future.
Performance
With a focus on innovation, in 2019, we made
investments of approximately $4.4 million in
research and development to advance leading-
edge technologies and practices. This included
investments with key sector organizations,
including the Electric Power Research Institute
and the Centre for Energy Advancement through
Technological Innovation. We also partnered
with organizations such as Energy Storage
Canada to advance discussions around energy
storage opportunities.
We are exploring the promise of new energy
storage and microgrid technologies to help
improve reliability of supply to our customers.
These emerging storage solutions, which lower
customer dependency on diesel generators,
include large scale battery energy storage
systems at the community level and, eventually,
the installation of residential storage batteries in
customer homes.
In 2019, we introduced a battery energy storage
system with Aroland First Nation, a community
located near Nakina in the Thunder Bay region.
Between 2013 and 2017, Aroland averaged
11 outages and 57 hours of power interruptions
per year. The installation of a centralized battery
system just outside the First Nation is nearly
complete. The system will allow the community
to be supplied by the battery energy storage
system during an upstream supply interruption.
This pilot will provide extensive insights into
the battery energy storage system technology
and will also improve reliability of electricity by
reducing the duration of customer outages by
about 60% once it is in service.
In 2019, we approved the building of a new
grid control centre in Orillia, which will serve as
one of our innovative technology hubs and will
ensure the safe, reliable delivery of electricity to
communities across Ontario for years to come.
We expect to invest approximately $150 million
to build this state-of-the-art grid control centre.
Innovative Sustainability
Investments
Innovative Sustainability Investments
PANDEMIC RESPONSE
Hydro One has adapted to ensure the health and safety of our employees and
the reliability of our system. Through these unprecedented challenges, we have
found new ways to collaborate and find innovative solutions to meet the needs of
our customers and communities. In an effort to maintain physical distance, we are
now deploying work digitally, which has resulted in increased productivity and
efficiency. To reduce the potential spread of an illness, employees engineered a
make-shift handwashing station to ensure good hygiene while on job sites with no
running water. Employees also designed a wipe dispenser, which were distributed
across Ontario to help keep employees safe.
51
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Innovate and
Grow the Business
Key Programs & Future Initiatives
Hydro One is innovating to better position
our business for the future. We have made a
capital commitment to Energy Impact Partners
(EIP), joining global innovators in our field and
learning from the best in the utilities sector.
EIP is the world’s largest utility-backed
innovation venture capital fund focused on
technologies reshaping the future of the energy
industry – a future that is increasingly electrified,
digitized, decarbonized and decentralized.
EIP partners with utilities to make investments in
emerging energy technology companies, taking
a collective investment approach that will help
us accelerate and de-risk our innovation efforts.
EIP will also offer us insights into emerging
technologies and business models, with a
research team that will help us tackle many
emerging challenges we face in the changing
utility landscape.
We are also committed to using new technology
and services to meet our customers’ evolving
needs while supporting a sustainable future
through our joint venture Ivy Charging
Network™ (Ivy). Ivy is building Ontario’s largest
and most connected electric vehicle fast-charger
network with 73 locations across Ontario that
will be, on average, less than 100 kilometres
apart. The network is designed to make charging
on-the-go easy and convenient while supporting
a better and brighter future for all through a
greener transportation sector. The joint venture,
with assistance from the federal government will
make a real difference in the transition to a more
environmentally sustainable future.
We plan to take the following actions in 2020
to innovate and grow our business:
• Continue to use 3D technology to illustrate and
articulate our project plans during stakeholder
meetings, allowing the public to visualize
future developments. This technology gives
our customers and community stakeholders
the ability to view the surroundings of existing
assets, as well as to identify the benefits and
potential issues discovered during all phases
of the planning process.
• Improve reliability for customers by piloting
a battery storage program that targets
customers who are experiencing poor
reliability from our Pointe-Au-Baril and Trout
Creek feeders.
• Establish an energy management services
business to help commercial and industrial
customers reduce their peak energy use.
Innovative Sustainability Investments
Our joint venture Ivy Charging
Network™ is building Ontario’s
largest and most connected electric
vehicle fast-charger network with
73 locations across Ontario.
52
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Appendices
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Connect with Us
Discover more about sustainability
at Hydro One:
www.HydroOne.com/about/sustainability
For information about this report,
please contact:
Jessica Bentley-Jacobs
Head, Sustainability
Sustainability@HydroOne.com
For Investor Relations,
please contact:
Omar Javed
Vice President, Investor Relations
Investor.Relations@HydroOne.com
Hydro One’s corporate office
is located at:
483 Bay Street
Toronto, ON
M5G 2P5
Receiving your feedback is a key element of our
reportingprocess. It helps us to address the issues
thatmatter most to our stakeholders. Please email
us at Sustainability@HydroOne.com
This report is primarily published
in electronic format tominimize its
environmental impact. Please think
beforeprinting.
Follow Hydro One
Twitter
@HydroOne
Facebook
@HydroOneOfficial
Instagram
@HydroOneOfficial
LinkedIn
/company/hydro-one
www.HydroOne.com
53
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
Appendix
43. We define executive level as VP and above. Diversity data
is based on employees voluntarily self-identifying. We have
changed our calculation methodology and now all values
represent averages over the year. We have updated 2017 and
2018 data so it can be compared to the new methodology used
in 2019.
44. Improved data management led to establishment of 2018 as the
baseline year for GHG data collection. Our 2018 metrics were
also adjusted to be inclusive of Hydro One Limited and update
of carbon equivalent based on 2018 adjustments reported in
Canada’s National Inventory Report, 1990-2018, Part 2, Annex
6 &13; Emission Factors.
45. The Affordability Fund Trust provides qualifying residential
customers with free home energy efficiency upgrades. The bill
savings are realized as a result of the energy efficiency measures
given to participants https://www.affordabilityfund.org
46. The Transmission SAIDI numbers do not include any events with
more than 10,000 MW*minutes unsupplied energy, initiated by
uncontrollable causes, such as weather, environment, or foreign
object interference.
47. The Distribution SAIDI numbers do not include any force majeure
events. We define a force majeure event to have occurred when
electricity service to 10% or more of our distribution customers
has been interrupted by an event.
48. The term “well founded” is used by the Office of the Privacy
Commissioner of Canada when the Commissioner has found that
an organization has failed to respect a provision of the Personal
Information Protection and Electronic Document Act.
49. Over the past three years we have seen an increase in cases
received. Hydro One welcomes this, as we believe it points to
the effectiveness of our training program and our employees’
comfort in reporting.
2019 ESG Performance Overview
INDICATOR
2019 2018 2017
Employees and Workplace
Executive diversity
43
Women 31.9% 33.5% 33.9%
Men 68.1% 66.5% 66.1%
Visible minorities 24.6% 15.2% 6.3%
Grid Resiliency and Modernization
Capital investments ($ millions) $1,667 $1,575 $1,567
Innovation
Investment in research and development ($ millions) $4.4 $5.2 $5.0
Climate Change
44
Scope 1 GHG emissions (tCO
2
e) 163,761 168,381 –
Scope 2 GHG emissions (tCO
2
e) 156,847 166,145 –
Health and Safety
Total annual recordable injury rate per 200,000 hours worked 0.8 1.1 1.2
Lost time injury severity rate per 200,000 hours worked 6.9 2.2 8.6
Lost time injury frequency rate per 200,000 hours worked 0.2 0.1 0.2
Indigenous Partnerships
Indigenous procurement spend ($ millions) $41.3 $39.4 $24.1
Community Partnerships
Community investment donations and sponsorships ($ millions) $2.8 $2.6 $2.2
Customer Service
Transmission customer satisfaction (%)* 87 90 88
Commercial and Industrial satisfaction (%)* 79 77 73
Residential and small business customer satisfaction (%)* 86 76 71
Accessibility and Affordability
Productivity savings ($ millions) $202.3 $135.5 $89.5
Bill savings through the Affordability Fund Trust
45
$2.1 $0.6 –
Reliability
Transmission System Average Interruption Duration Index*
46
0.6 hours 0.8 hours 0.6 hours
Distribution System Average Interruption Duration Index*
47
7.0 hours 6.8 hours 7.9 hours
Governance
Number of unresolved well-founded privacy complaints
48
as determined by the Privacy Commissioner of Canada 0 0 0
Number of cases received by our corporate ethics office
49
265 223 193
All information is for Hydro One
Limited unless there is an asterisk (*),
in which case the information is just
for Hydro One Networks.
54
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
SASB Table
New this year, we have included a table
containing topics and issues identified by
the Sustainability Accounting Standards
Board (SASB). We are reporting using the
SASB framework because we understand the
importance of transparent disclosures and
support efforts that seek to drive consistency
and comparability of sustainability
performance data.
As an electricity Transmission and Distribution
company, we report according to the
SASB framework for the Electric Utilities &
Power Generators industry. We address all
indicators in the standard that we consider to
be material for our business and are legally
able to report on as an Ontario-based utility.
SASB Table
50. Calculated for our Distribution business
51. To calculate the percentage of electric load delivered by smart grid technology we calculated the total amount of electrical energy
delivered to our customers with (or by) an active smart meter.
All information is for Hydro One
Limited unless there is an asterisk (*),
in which case the information is just
for Hydro One Networks.
INDICATOR
2019
Workforce Health andSafety
Total recordable incident rate 2019 Sustainability Report, Be the Safest and Most
Efficient Utility
Total fatality rate 2019 Sustainability Report, Be the Safest and Most
Efficient Utility
Near-miss frequency rate 5.8
End-Use Efficiency andDemand
Percentage of electricity utility revenues
from rate structures that are decoupled
and contain a lost revenue adjustment
mechanism
50
53% revenue from Fixed charges
47% revenue from Volumetric charges
None of our rate structures for distribution or transmission
contained a lost revenue adjustment mechanism in 2019
Percentage of electric load served by
smart grid technology*
91%
51
Customer electricity savings from
efficiency measures, by market
2019 Sustainability Report, Advocate for Our Customers
Grid Resiliency
Number of incidents of non-compliance
with physical and/or cybersecurity
standards or regulations
Hydro One is unable to disclose this information as it
is subject to the confidentiality provisions of the IESO
market rules
(1) System Average Interruption Duration
Index (SAIDI), (2) System Average
Interruption Frequency Index (SAIFI),
and (3) Customer Average Interruption
Duration Index (CAIDI), inclusive of
major event days
2019 Sustainability Report, Advocate for Our Customers
INDICATOR
2019
Energy Affordability
Average retail electric rate $0.16/kWh residential
$0.18/kWh commercial
$0.16/kWh industrial
Typical monthly electric bill for residential
customers for 500 and 1,000 kWh of
electricity delivered per month ($)
$94.39 for 500 kWh
$158.15 for 1000 kWh
Residential customer electric
disconnections for non-payment,
percentage reconnected within 30 days
70% reconnected within 30 days
Discussion of impact of external factors
on customer affordability of electricity,
including the economic conditions of the
service territory
Hydro One remains sensitive to the needs of our low-income
customers. We use four main indicators to determine which
customers could potentially have an issue with affordability –
payment history, average household income, average electricity
bill size as a percentage of total income and household average
debt. These indicators are not mutually exclusive and are used in
various combinations to help us better understand our customers.
For these customers, we then provide them advice and guidance
on programs that will help them reduce their electricity bill.
We know that in our service territory, the customers who face the
biggest challenges to electricity affordability are in the rural parts
of Ontario. These are customers with limited connections and
where housing tends to be older and less efficient.
While arrears for customers have declined in recent years, we
expect that with the impact of the COVID-19 pandemic and
associated job losses, many of our customer households will
struggle with affordability. To support these customers and
provide them with affordable solutions, we are working closely
with provincial government agencies that regulate and operate
the electricity rates and markets, and the Affordability Fund Trust.
With the impact of the COVID-19 pandemic, we are seeing
many of our commercial customers struggle with bill payments.
To support these customers, we implemented specific relief
programs like returning security deposits, providing flexibility on
payment schedules and suspending late payment charges. In
light of the economic situation we are working closely with our
industry peers and the government to evaluate what measures
can be implemented or extended to help these customers.
55
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
52. Numbers as of December 31, 2019.
53. This includes local distribution companies connected to Hydro One’s distribution system, distributed generators, street lights, sentinel lights
and unmetered scattered load.
54. Numbers as of December 31, 2019.
55. The number of customers our transmission system serves includes transmission delivery points of local distribution companies, transmission
business customers and generators, as defined by the IESO.
56. This includes distributed generators, street lights, sentinel lights and unmetered scattered load.
57. This includes local distribution companies connected to Hydro One’s distribution system.
58. This includes electricity delivered to local distribution companies, generators and transmission business customers. Transmission
delivered points are defined by the IESO and total electricity is calculated as the sum of 12 monthly peak demand from all transmission
delivery points.
59. For distribution networks, total electricity purchased in 2019.
All information is for Hydro One
Limited unless there is an asterisk (*),
in which case the information is just
for Hydro One Networks.
ACTIVITY METRIC
2019
Distribution: Number of residential, commercial,
industrial and other retail customers served (#)
52
1,226,149, residential
112,549, commercial
8,074, industrial
34,169
53
, other retail
Transmission: Number of customers served
54
683
55
Distribution: Total electricity delivered to residential,
commercial, industrial, all other retail customers and
wholesale distribution customers
12,872,825 MWh, residential
3,120,146 MWh, commercial
8,739,963 MWh, industrial
163,547 MWh
56
, other retail customers
10,585,392
MWh
57
, wholesale
distribution customers
Total electricity delivered to our Transmission system
58
230,966 MW
Length of transmission and distribution lines (km)* 2019 Sustainability Report,
Hydro One at a Glance
Total wholesale electricity purchased MWh* 27,464,605 MWh
59
SASB Activity Table
56
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
GRI Table
CATEGORY/SECTION TOPIC GRI DISCLOSURE
2019
Core Standard Disclosure GRI 102-1
Name of the organization
Hydro One Limited
Core Standard Disclosure
GRI 102-2
Activities, brands, products, and services
2019 Sustainability Report, Hydro One At-A-Glance
Core Standard Disclosure
GRI 102-3
Location of headquarters
2019 Sustainability Report, Connect with Us
Core Standard Disclosure
GRI 102-4
Location of operations
2019 Sustainability Report, Hydro One At-A-Glance
Core Standard Disclosure
GRI 102-5
Ownership and legal form
2019 Sustainability Report, Hydro One At-A-Glance
Core Standard Disclosure
GRI 102-6
Markets served
2019 Sustainability Report, Hydro One At-A-Glance
Core Standard Disclosure
GRI 102-7
Scale of the organization
2019 Sustainability Report, Hydro One At-A-Glance
Core Standard Disclosure GRI 102-8
Information on employees and other workers
2019 Sustainability Report, People and Potential
Core Standard Disclosure
GRI 102-9
Supply chain
Supplier Code of Conduct
Core Standard Disclosure
GRI 102-10
Significant changes to the organization and its supply chain
There were no significant changes to Hydro One in 2019.
Core Standard Disclosure GRI 102-12
External Initiatives
2019 Sustainability Report, Be a Trusted Partner
Core Standard Disclosure
GRI 102-13
Memberships of associations
In 2019, Hydro One was a member of the Canadian Chamber of Commerce,
Canadian Electricity Association, CD Howe Institute, Electricity Distributors
Association, Edison Electric Institute, North American Transmission Forum,
Ontario Chamber of Commerce, Ontario Energy Association, Ontario Energy
Network, Toronto Region Board of Trade, Western Energy Institute and Young
Energy Professionals.
57
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
GRI Table
CATEGORY/SECTION TOPIC GRI DISCLOSURE
2019
Core Standard Disclosure GRI 102-14
Statement from senior decision-maker
2019 Sustainability Report, Message from Our President and CEO
Core Standard Disclosure GRI 102-15
Key Impacts, risk and opportunities
2019 Sustainability Report, Our Approach to Sustainability,
2019 ESG Performance Table
Core Standard Disclosure
GRI 102-16
Values, principles, standards, and norms of behavior
Code of Business Conduct and Our Values
Core Standard Disclosure GRI 102-17
Mechanisms for advice and concerns about ethics
Code of Business Conduct, Ombudsman, 2019 ESG Performance Table
and Whistleblower policy
Core Standard Disclosure
GRI 102-18
Governance structure
2019 Sustainability Report, Our Approach to Sustainability
Core Standard Disclosure GRI 102-40
List of stakeholder groups and partners
2019 Sustainability Report, Our Approach to Sustainability
Core Standard Disclosure GRI 102-41
Collective bargaining agreements
2019 Management’s Discussion and Analysis, Hydro One Work Force
Core Standard Disclosure
GRI 102-42
Identifying and selecting stakeholders
2019 Sustainability Report, Our Approach to Sustainability
Core Standard Disclosure
GRI 102-43
Approach to stakeholder engagement
2019 Sustainability Report, Be a Trusted Partner
Core Standard Disclosure
GRI 102-44
Key topics and concerns raised
2019 Sustainability Report, Be a Trusted Partner
Core Standard Disclosure
GRI 102-45
Entities included in the consolidated financial statements
2019 Sustainability Report, About This Report
Core Standard Disclosure
GRI 102-46
Defining report content and topic Boundaries
2019 Sustainability Report, About This Report
Core Standard Disclosure GRI 102-47
List of material topics
2019 Sustainability Report, Our Approach to Sustainability
Core Standard Disclosure
GRI 102-48
Restatements of information
There are no restatements of information given in previous reports
Core Standard Disclosure
GRI 102-49
Changes in reporting
New to 2019, the information contained within this report is for Hydro One
Limited. In instances where data is only available for Hydro One Networks Inc.
(Hydro One Networks), it will be noted with an asterisk
58
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
GRI Table
CATEGORY/SECTION TOPIC GRI DISCLOSURE
2019
Core Standard Disclosure GRI 102-50
Reporting period
2019 Sustainability Report, About This Report
Core Standard Disclosure GRI 102-51
Date of most recent report
August 2019
Core Standard Disclosure
GRI 102-52
Reporting cycle
2019 Sustainability Report, About This Report
Core Standard Disclosure
GRI 102-53
Contact point for questions regarding the report
2019 Sustainability Report, Connect with Us
Core Standard Disclosure
GRI 102-54
Claims of reporting in accordance with the GRI Standards
2019 Sustainability Report, About This Report
Core Standard Disclosure GRI 102-55
GRI content index
This table is available as a stand-alone document on our website
Core Standard Disclosure GRI 102-56
External assurance
GHD Ltd. verified Hydro One’s GHG Emission report for the compliance period
of January 1 to December 31, 2019
Core Standard Disclosure 103-1
Explanation of the material topic and its Boundary
2019 Sustainability Report, About This Report and Our Approach to Sustainability
Core Standard Disclosure 103-2
The management approach and its components
2019 Sustainability Report, within the approach section of each material
People and Potential Talent GRI 405-1
Discussion on Management Approach
2019 Sustainability Report, People and Potential and Diversity and Inclusion
People and Potential Talent GRI 405-1
Diversity of governance bodies and employees
2019 Sustainability Report, People and Potential and Corporate Governance
People and Potential Talent GRI EU15
Number of employees eligible to retire within 5 years,
10 years (% of workforce, by job category)
Number of employees eligible to retire within 5 years, 10 years
(% of workforce, by region, by job category)*
Job Category 5 years 10 years 5 years 10 years
Electrical power line and cable workers 3% 4% 18% 23%
Electrical and electronics engineers 2% 3% 18% 28%
Electrical and electronics engineering technologists and
technicians
2% 3% 18% 29%
Silviculture and forestry workers 1% 1% 9% 18%
Other customer and information services representatives 1% 2% 20% 42%
Professional occupations in business management consulting 1% 2% 30% 42%
Contractors and supervisors, electrical trades and
telecommunications occupations
2% 2% 54% 66%
Power system electricians 1% 1% 22% 34%
General office support workers 1% 2% 30% 52%
Note: Ontario is the Region
% of Workforce % of NOC group
2019
59
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
GRI Table
CATEGORY/SECTION TOPIC GRI DISCLOSURE
2019
Build a Grid for
the Future
Climate Change GRI 305-1
Discussion on Management Approach
2019 Sustainability Report, Plan, Design and Build a Grid for the Future and
Climate Change
Build a Grid for
the Future
Climate Change GRI 305-1
Direct Scope 1 GHG Emissions
2019 Sustainability Report, Plan, Design and Build a Grid for the Future
Build a Grid for
the Future
Climate Change GRI 305-2
Energy indirect (Scope 2) GHG emissions
2019 Sustainability Report, Plan, Design and Build a Grid for the Future
Build a Grid for
the Future
Environmental
Management
GRI 307-1
Non-compliance with environmental laws and regulations
2019 Sustainability Report, Plan, Design and Build a Grid for the Future
Build a Grid for
the Future
Infrastructure Renewal
and Modernization
GRI 203-1
Discussion on Management Approach
2019 Sustainability Report, Plan, Design and Build a Grid for the Future and
Grid Resiliency and Modernization
Build a Grid for
the Future
Infrastructure Renewal
and Modernization
GRI 203-1
Indirect Economic Impacts
2019 ESG Performance Table
Be the Safest Utility Health and Safety GRI 403-1
Discussion on Management Approach
2019 Sustainability Report, Be the Safest and Most Efficient Utility and
Health and Safety
Be the Safest Utility Health and Safety GRI 403-1
Occupational health and safety management system
2019 Sustainability Report, Be the Safest and Most Efficient Utility
Be the Safest Utility Health and Safety GRI 403-8
Workers covered by occupational health and safety
management system
2019 Sustainability Report, Be the Safest and Most Efficient Utility
Be the Safest Utility Health and Safety GRI 403-9
Work-related injuries
2019 Sustainability Report, Be the Safest and Most Efficient Utility
Be a Trusted Partner Indigenous Relations G RI 411-1
Discussion on Management Approach
2019 Sustainability Report, Be a Trusted Partner and Indigenous Relations
Be a Trusted Partner Economic Performance GRI 201-1
Economic value generated and distributed
2019 Sustainability Report, Be a Trusted Partner
Be a Trusted Partner Procurement Practices GRI 204-1
Proportion of spending on local suppliers
2019 Sustainability Report, Be a Trusted Partner
Advocate for Our
Customers
Customer Service GRI EU3
Discussion on Management Approach
2019 Sustainability Report, Advocate for Our Customers and Customer Service
Advocate for Our
Customers
Customer Service GRI EU3
Number of residential, industrial, institutional, and
commercial customer accounts
2019 SASB Table
Advocate for Our
Customers
Accessibility
and Affordability
GRI 203-2
Discussion on Management Approach
2019 Sustainability Report, Advocate for Our Customers and Accessibility
and Affordability
Advocate for Our
Customers
Accessibility
and Affordability
GRI 203-2
Indirect Economic Impacts
2019 Sustainability Report, Advocate for Our Customers, Accessibility
and Affordability and 2019 SASB Table
60
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
GRI Table
CATEGORY/SECTION TOPIC GRI DISCLOSURE
2019
Advocate for Our
Customers
Accessibility
and Affordability
GRI EU4
Length of above and underground transmission and
distribution lines by regulatory regime
2019 Sustainability Report, Hydro One At-A-Glance
Advocate for Our
Customers
Reliability Discussion on Management Approach
2019 Sustainability Report, Advocate for Our Customers and Reliability
Advocate for Our
Customers
Reliability GRI EU28
Average Power Outage Frequency (Transmission SAIFI)
(# of interruptions per delivery point per year)
2019 Sustainability Report, Advocate for Our Customers
Advocate for Our
Customers
Reliability GRI EU28
Average Power Outage Frequency (Distribution SAIFI)
(# of interruptions per customer per year)
2019 Sustainability Report, Advocate for Our Customers
Advocate for Our
Customers
Reliability
GRI EU29
Average Power Outage Duration (Transmission SAIDI)
(# of hours per delivery point per year)
2019 Sustainability Report, Advocate for Our Customers
Advocate for Our
Customers
Reliability GRI EU29
Average Power Outage Frequency (Distribution SAIDI)
(# of hours per customer per year)
2019 Sustainability Report, Advocate for Our Customers
Innovate and Grow
the Business
Business Model
Pressures
Discussion on Management Approach
2019 Sustainability Report, Innovate and Grow the Business
Business Model
Pressures
GRI EU2
Net Energy Output – Transmission and Distribution
(%) (input)
Hydro One does not determine the energy mix for the Province of Ontario;
this is a key responsibility of the Independent Electricity System Operator (IESO).
Our Approach to
Sustainability
Governance GRI 205-1
Discussion on Management Approach
2019 Sustainability Report, Our Approach to Sustainability, Management
Approach and Governance
Our Approach to
Sustainability
Governance GRI 205-1
Operation assessed for risks related to corruption
Code of Business Conduct
Our Approach to
Sustainability
Governance GRI 205-2
Communications and training about anti-corruption
policies and procedures
o All board of directors signed a Code of Business Compliance Form and are
subject to our Code of Business Conduct.
o Employees receive annual communication through our Annual Code of
Business Conduct Refresher.
o Business partners are subject to our Code of Business Conduct and/or the
Supplier Code of Conduct.
o Board of Directors must abide by our Code of Business Conduct.
o As of Dec 31, 2019 7,507 employees completed the 2019 Code of Business
Conduct Refresher in 2019 which includes information on our Anti-Fraud and
Anti-Corruption policies.
61
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
GHD Letter
of Assurance
GHD
455 Phillip Street Unit #100A Waterloo Ontario N2L 3X2 Canada
T
519 884 0510
F
519 884 0525 W
www
.
ghd.com
July 28, 2020
Ms. Elise Croll
Director, Environmental Services
Hydro One Networks Inc.
Dear Ms. Croll:
Re: Independent Assurance Statement
The purpose of this letter is to clarify matters set out in the Assurance Report. It is not an Assurance
Report and is not a substitute for the Assurance Report.
This letter and the verifier's Assurance Report, including the opinion(s), are addressed to you and are
solely for your benefit in accordance with the terms of the contract. We consent to the release of this letter
by you for inclusion in your corporate sustainability report.
In accordance with our engagement with you, and for the avoidance of doubt, we confirm that our
Verification Report: 2019 GHG Inventory report to you (the "Assurance Report") incorporated the following
matters:
1. Boundaries of the reporting company covered by the Assurance Report:
Hydro One Limited, through its wholly-owned subsidiaries, is Ontario's largest electricity
transmission and distribution provider with approximately 1.4 million valued customers. Emissions
from Hydro One Networks Inc. (Networks), Hydro One Remote Communities (Remotes), and Hydro
One Telecom (Telecom) were included. Verification is completed at the corporate level.
2. Emissions data verified - broken down by Scope 1, and Scope 2, with figures given:
Total Entity-Wide Emissions Verified
Total Scope 1 Emissions
2: 163,793.85 tonnes CO2e
Scope 2 Emissions: 156,847.23 tonnes CO
2e
3. Period covered (e.g., '12 months to DD MM YY'):
The reporting period is between 01/01/19 and 31/12/19.
4. Verification standard used:
For the verification of the 2019 GHG Report, GHD has applied ISO 14064-3.
5. Assurance opinion (including level of assurance and any qualifications)
The GHG Protocol states, "as a rule of thumb, an error is considered to be materially misleading if
its value exceeds 5 percent of the total inventory for the part of the organization being verified".
Consistent with this, and industry practice, GHD established a quantitative materiality for this
verification of ±5 percent of the total reported GHG emissions. An individual error,
GHD
455 Phillip Street Unit #100A Waterloo Ontario N2L 3X2 Canada
T
519 884 0510
F
519 884 0525 W
www
.
ghd.com
July 28, 2020
Ms. Elise Croll
Director, Environmental Services
Hydro One Networks Inc.
Dear Ms. Croll:
Re: Independent Assurance Statement
The purpose of this letter is to clarify matters set out in the Assurance Report. It is not an Assurance
Report and is not a substitute for the Assurance Report.
This letter and the verifier's Assurance Report, including the opinion(s), are addressed to you and are
solely for your benefit in accordance with the terms of the contract. We consent to the release of this letter
by you for inclusion in your corporate sustainability report.
In accordance with our engagement with you, and for the avoidance of doubt, we confirm that our
Verification Report: 2019 GHG Inventory report to you (the "Assurance Report") incorporated the following
matters:
1. Boundaries of the reporting company covered by the Assurance Report:
Hydro One Limited, through its wholly-owned subsidiaries, is Ontario's largest electricity
transmission and distribution provider with approximately 1.4 million valued customers. Emissions
from Hydro One Networks Inc. (Networks), Hydro One Remote Communities (Remotes), and Hydro
One Telecom (Telecom) were included. Verification is completed at the corporate level.
2. Emissions data verified - broken down by Scope 1, and Scope 2, with figures given:
Total Entity-Wide Emissions Verified
Total Scope 1 Emissions
2: 163,793.85 tonnes CO2e
Scope 2 Emissions: 156,847.23 tonnes CO
2e
3. Period covered (e.g., '12 months to DD MM YY'):
The reporting period is between 01/01/19 and 31/12/19.
4. Verification standard used:
For the verification of the 2019 GHG Report, GHD has applied ISO 14064-3.
5. Assurance opinion (including level of assurance and any qualifications)
The GHG Protocol states, "as a rule of thumb, an error is considered to be materially misleading if
its value exceeds 5 percent of the total inventory for the part of the organization being verified".
Consistent with this, and industry practice, GHD established a quantitative materiality for this
verification of ±5 percent of the total reported GHG emissions. An individual error,
62
Hydro One Limited
Sustainability Report 2019
Message from Our
President and CEO
Hydro One
At-A-Glance
Our Approach
to Sustainability
Be a Trusted
Partner
Advocate for
Our Customers
Innovate and
Grow the Business
Plan, Design and Build
a Grid for the Future
Be the Safest and
Most Efficient Utility
People and
Potential
Appendices
GHD Letter
of Assurance
GHD
455 Phillip Street Unit #100A Waterloo Ontario N2L 3X2 Canada
T
519 884 0510
F
519 884 0525 W
www
.
ghd.com
July 28, 2020
Ms. Elise Croll
Director, Environmental Services
Hydro One Networks Inc.
Dear Ms. Croll:
Re: Independent Assurance Statement
The purpose of this letter is to clarify matters set out in the Assurance Report. It is not an Assurance
Report and is not a substitute for the Assurance Report.
This letter and the verifier's Assurance Report, including the opinion(s), are addressed to you and are
solely for your benefit in accordance with the terms of the contract. We consent to the release of this letter
by you for inclusion in your corporate sustainability report.
In accordance with our engagement with you, and for the avoidance of doubt, we confirm that our
Verification Report: 2019 GHG Inventory report to you (the "Assurance Report") incorporated the following
matters:
1. Boundaries of the reporting company covered by the Assurance Report:
Hydro One Limited, through its wholly-owned subsidiaries, is Ontario's largest electricity
transmission and distribution provider with approximately 1.4 million valued customers. Emissions
from Hydro One Networks Inc. (Networks), Hydro One Remote Communities (Remotes), and Hydro
One Telecom (Telecom) were included. Verification is completed at the corporate level.
2. Emissions data verified - broken down by Scope 1, and Scope 2, with figures given:
Total Entity-Wide Emissions Verified
Total Scope 1 Emissions
2: 163,793.85 tonnes CO2e
Scope 2 Emissions: 156,847.23 tonnes CO
2e
3. Period covered (e.g., '12 months to DD MM YY'):
The reporting period is between 01/01/19 and 31/12/19.
4. Verification standard used:
For the verification of the 2019 GHG Report, GHD has applied ISO 14064-3.
5. Assurance opinion (including level of assurance and any qualifications)
The GHG Protocol states, "as a rule of thumb, an error is considered to be materially misleading if
its value exceeds 5 percent of the total inventory for the part of the organization being verified".
Consistent with this, and industry practice, GHD established a quantitative materiality for this
verification of ±5 percent of the total reported GHG emissions. An individual error,
GHD
455 Phillip Street Unit #100A Waterloo Ontario N2L 3X2 Canada
T
519 884 0510
F
519 884 0525 W
www
.
ghd.com
July 28, 2020
Ms. Elise Croll
Director, Environmental Services
Hydro One Networks Inc.
Dear Ms. Croll:
Re: Independent Assurance Statement
The purpose of this letter is to clarify matters set out in the Assurance Report. It is not an Assurance
Report and is not a substitute for the Assurance Report.
This letter and the verifier's Assurance Report, including the opinion(s), are addressed to you and are
solely for your benefit in accordance with the terms of the contract. We consent to the release of this letter
by you for inclusion in your corporate sustainability report.
In accordance with our engagement with you, and for the avoidance of doubt, we confirm that our
Verification Report: 2019 GHG Inventory report to you (the "Assurance Report") incorporated the following
matters:
1. Boundaries of the reporting company covered by the Assurance Report:
Hydro One Limited, through its wholly-owned subsidiaries, is Ontario's largest electricity
transmission and distribution provider with approximately 1.4 million valued customers. Emissions
from Hydro One Networks Inc. (Networks), Hydro One Remote Communities (Remotes), and Hydro
One Telecom (Telecom) were included. Verification is completed at the corporate level.
2. Emissions data verified - broken down by Scope 1, and Scope 2, with figures given:
Total Entity-Wide Emissions Verified
Total Scope 1 Emissions
2: 163,793.85 tonnes CO2e
Scope 2 Emissions: 156,847.23 tonnes CO
2e
3. Period covered (e.g., '12 months to DD MM YY'):
The reporting period is between 01/01/19 and 31/12/19.
4. Verification standard used:
For the verification of the 2019 GHG Report, GHD has applied ISO 14064-3.
5. Assurance opinion (including level of assurance and any qualifications)
The GHG Protocol states, "as a rule of thumb, an error is considered to be materially misleading if
its value exceeds 5 percent of the total inventory for the part of the organization being verified".
Consistent with this, and industry practice, GHD established a quantitative materiality for this
verification of ±5 percent of the total reported GHG emissions. An individual error,
11212911-LTR-1-Croll-Independent Assurance Statement 2
misrepresentation, or a series of discrete errors, omissions or misrepresentations or individual or a
series of qualitative factors, when aggregated may be considered material.
The purpose of this verification was to have an independent third party assess Hydro One's 2019
GHG Report, calculations and compliance with the requirements of the ISO Standard ISO 14064
Greenhouse gases – Part 3: Specification with guidance for the validation and verification of
greenhouse gas assertions (ISO 14064-3), the GHG Protocol and associated guidance. The
verification was completed to a reasonable level of assurance.
Based on our verification, the GHG statement is, in all material aspects, in accordance with the
verification criteria and is free of material misstatements.
6. Verification provider and accreditations:
VERIFICATION BODY NAME: GHD Limited
VERIFICATION BODY CONTACT: Mr. Gordon Reusing
TITLE: Principal
Accreditations: GHD is a Canadian based company accredited by the American National Standard
Institute (ANSI)
under ISO 14065 to provide organizational level verification services.
7. Lead verifier name and relevant accreditations/professional membership:
LEAD VERIFIER: Ms. Dana Lauder
TITLE: Project Manager
8. This letter should be prepared on the verifier's letterhead or include the signature of the lead
verifier (or authorized signatory/organization responsible for issuing the Assurance
Report/statement) in the box below:
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Completed 23 July 2021

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