Previous Targets

Enbridge has previously set and met enterprise-wide and business unit specific GHG emissions reduction targets. Between 2005 and 2010 we achieved an initial target to reduce direct emissions from our Canadian operations to 15% below 1990 levels. Between 2010 and 2011 we achieved an additional 6% reduction below 1990 levels, for total reductions of 21% below 1990 levels. In 2012, our GDS business set a new target to reduce the emissions intensity of its operations relative to total number of customers. The goal was to reduce emissions intensity by 5% between 2011 and 2015. The target was achieved ahead of schedule, largely on the strength of the accelerated cast iron replacement program (see below).

Development of New Targets and Metrics

We set out to establish new targets in 2015 but our acquisition of Spectra Energy delayed that effort so that we could implement targets reflective of a larger and more diverse asset base and strategy. From now through 2020, Enbridge business units will each work to develop next-generation targets for reducing the emissions intensity of our operations (Scope 1 and Scope 2).

Current Metrics

It is widely recognized that there is a need to develop consistent approaches for measuring and reporting corporate GHG emissions. In the absence of both consistent methodologies for measuring emissions and third party assurance for reporting emissions, it is very difficult to compare the performance of one company against that of another.

We provide GHG data on an absolute basis in our sustainability report. In this report, we have chosen to provide emissions intensity data. We have done this for two primary reasons. First, as this report contends, reducing global GHG emissions will require concerted action across the entire energy system. More specifically, emissions reduction progress needs to be made in each part of the energy system—this includes more efficient transportation of oil and gas. An intensity metric allows for meaningful comparison of corporate performance within each part of the value chain and across our different businesses. Second, an intensity metric provides the only meaningful way to measure emissions reduction progress year over year when a corporation's asset base and/or its level of business activity is growing. It allows for meaningful analysis of corporate progress as our business grows organically and through acquisition.

We will continue to account for industry trends relating to metrics and we anticipate modifying our metrics as industry standards evolve.

The metric we report in the chart on Page 25 shows the emissions intensity of each of our core businesses on a volumetric basis. Our LP business has no significant Scope 1 emissions as crude oil is pushed through the pipes using electric pumps. The numbers provided show that the emissions intensity of our LP assets has gone up slightly, due in large part to throughput increases. As throughput increases, so do Scope 2 emissions because electric pump stations must work harder to push oil through the pipeline.

The following graphic shows where emissions come from within the oil value chain. It demonstrates that our crude oil transportation business makes up a very small portion of total GHG emissions on a lifecycle basis. It also shows that Enbridge's emissions are well below the industry average within the midstream sector.

Enbridge has a larger role in the natural gas value chain with both a gas transportation business (GTM) and a distribution and storage business (GDS), whose emission intensity for Canada and U.S. is shown on the chart on Page 25. In order to move natural gas through a pipeline, the gas needs to be pressurized at compressor stations located along the route. Compressor stations can be fueled by natural gas or electricity. The chart on Page 25 shows higher Scope 1 emissions for GTM Canada than GTM U.S. Similarly, GTM U.S. has higher Scope 2 emissions than GTM Canada. While there are many factors that determine the GHG intensity of different systems, the differences that appear in our metric are explained primarily by the fact that GTM U.S. uses more electric compressor stations than GTM Canada.

Enbridge Green Power Production

Moreover, since our metric, as we define it, captures all emissions from Enbridge-operated pipelines—irrespective of our level of ownership and in accordance with Greenhouse Gas Protocol guidelines—the increase in GTM’s emission intensity is a direct result of converting the Alliance Pipeline into an Enbridge-operated pipeline. Alliance has higher emission intensity because it is a long-haul pipeline and travels through jurisdictions with high-emission electricity grids. Enbridge’s Scope 2 emissions intensity is expected to improve significantly as provincial electricity grids lower their emissions.

GDS has primarily Scope 1 GHG emissions from natural gas combustion used to power line heaters, compressors and turbines used in the distribution and storage of natural gas. GDS has limited Scope 2 emissions as electricity is used primarily for office buildings. As the chart on Page 25 shows, GDS emissions intensity decreased slightly from 2017 to 2018.

The impact of our renewable energy production does not appear in the chart on the following page. Enbridge has the capacity—either operating or under construction—to generate more than 1,700 MW (net) of zero-emission energy in North America and Europe. The graphics above illustrate the impact of our production on GHG emissions. The graphic above shows that Enbridge produced enough zero-emission power in 2018 to supply more than 485,000 homes for one year. It also shows how many tonnes of CO2e would be avoided if our renewable energy projects were used to replace coal-fired generation.

While the data depicted on the following page is helpful as we monitor and look to continuously improve our performance, we will look for meaningful ways to incorporate our renewable energy assets into the metrics we use below.

Task Force on Climate-related Disclosure Index

These recommendations were released in June 2017. This index references where information that addressed the recommendations can be found.