Governance

Frame 366 (5)

Guided by Good
Governance

The Fortis Inc. Board of Directors is responsible for the stewardship of Fortis on behalf of our shareholders and other stakeholders. The Board ensures effective leadership and provides oversight for strategy, succession planning, leadership, diversity, risk management, sustainability, and corporate governance.

Three standing committees help the Board carry out its responsibilities. Each committee has a written mandate that sets out its responsibilities and areas of focus. The mandates are reviewed regularly to capture best practices and applicable regulatory requirements.

Meet Our Board of Directors
Frame 894 (1)
Governance at Fortis Companies

Governance at Fortis Companies

Fortis follows a standalone business model where Fortis utilities operate with substantial autonomy. Each of our significant operating utilities has an independent board chair and a majority of independent board members. This structure provides focused risk management oversight and governance, while operating within the broad parameters of Fortis policies, guidelines, and best practices.

Managing Risk

Our enterprise risk management (ERM) program assesses and manages risks that can potentially affect business performance and strategy.

Board OversightERM MethodologyUtility Risk Management Programs

The Fortis Board, through the Audit Committee, is responsible for understanding material risks and mitigation strategies and taking reasonable steps to ensure that management has an effective risk management system in place.

The ERM process identifies and evaluates risks by severity of impact and probability of occurrence. An internal control system is used to monitor and manage identified risks. We integrate ERM principles as part of our climate risk assessments.

Each Fortis utility has its own ERM program. Material risks are communicated to Fortis management and form part of the Fortis ERM program.

Advocacy and Political Engagement

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Governance Framework and Oversight

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Advocacy Objectives

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Advocacy and Political Engagement Disclosure

Under our operating model, Fortis and each utility oversees its own political spending. Fortis Inc. only makes political contributions in Newfoundland and Labrador, Canada, where it is headquartered.

Some jurisdictions restrict corporate political contributions, such as at the federal level in Canada and the United States. Four Canadian provinces where our subsidiaries operate also prohibit corporate political contributions: British Columbia, Alberta, Ontario and Prince Edward Island.

Fortis and its subsidiaries made corporate contributions of C$500 or more to political candidates, parties and organizations as indicated below.

2023
2022
2021
2020

We participate in trade associations that are relevant to our business. We define “trade association” as a non-profit organization founded and funded to advance members’ common business interests in the energy and utility sectors.  Trade associations advocate for our industry and educate key stakeholders, including regulators and legislators. 

Fortis and its subsidiaries made contributions of C$10,000 or more to trade associations in the energy and utility sectors as indicated below. Where a portion of contributions is attributed to political activities and therefore non-deductible under the U.S. Internal Revenue Code, this is indicated. 

2023
2022
2021
2020

Fortis and its subsidiaries support other tax-exempt organizations that may advocate on policy issues of relevance to our industry or social significance. A list of tax-exempt organizations which may conduct lobbying or public policy-related activity to which we contributed C$10,000 or more is provided below. Where a portion of contributions is attributed to political activities and therefore non-deductible under the U.S. Internal Revenue Code, this is indicated. 

2023
2022
2021
2020

Entities formed under section 501(c)4 of the U.S. Internal Revenue Code may participate in some political activities, so long as it is not their primary activity. Such organizations must not be organized for profit and must be operated exclusively to promote social welfare. Fortis subsidiaries in the U.S. made contributions to 501(c)4 organizations as detailed here.

2023
2022
2021
2020

Under our Political Engagement Policy, we disclose any findings of material misalignment between the policy-related lobbying activities of those entities to which we contribute and our corporate values and policies, and steps we have taken as a result of such findings. 

2023 - There were no such findings.
2022 - There were no such findings.
2021 - There were no such findings.
2020 - UNS Energy withdrew from membership in the American Legislative Exchange Council due to the potential for misalignment with our corporate values and policies.