A MESSAGE FROM OUR PRESIDENT AND CEO 

We all recognize the increasing urgency for responsible action on climate change. Our business strategy and actions today matter, and following through on commitments has never been more important. 

When you think about the impact of cumulative carbon emissions, the sooner we reduce them, the greater ability we have to contain rising global temperatures. At Fortis we set measurable goals and we are working hard to achieve them. We have established targets to reduce scope 1 emissions 50% by 2030 and 75% by 2035 (2019 base year) towards our 2050 net zero goal. To date, our actions have resulted in a 33% decrease in scope 1 emissions, marking considerable progress towards these targets. We undertake this work while also keeping customer affordability front and centre. 

We are also committed to being prepared to adapt to future climate scenarios. Building on our 2022 TCFD and Climate Assessment, our 2024 Climate Report provides investors and stakeholders new and more detailed climate-related information across our group of companies using two climate scenarios. We assessed physical and transition risks and opportunities over different time horizons in order to identify potential business impacts. 

The findings indicate that our current business strategy positions the company to perform well in the climate scenarios assessed. Continued focus areas for Fortis include achieving emissions reduction targets, enhanced focus on resiliency and adaptation of electricity delivery assets, and even greater investments in cleaner energy solutions for our natural gas operations. Going forward, these insights will enhance our strategy, investment decisions and risk management processes. 

With the knowledge we gain from climate scenario analysis, we can make more informed decisions to minimize climate-related risks, maximize climate-related opportunities, and increase the resilience of our operations while delivering cleaner energy our customers can afford.

We have also enhanced our governance of, and strategy related to, climate risks and opportunities, and outlined the steps Fortis utilities are taking today to mitigate the impacts of climate change and prepare for the future. We remain focused on the right things to get the right results today that will position Fortis well for the future.

David G. Hutchens

President and CEO

Fortis Inc.

2024 Climate Report