December 27, 2021

Hawaiʻi Gas , Hawaii USA , COP for 2021

To our stakeholders,

I am pleased to confirm that Hawaiʻi Gas reaffirms its support of the Ten Principles of the United Nations Global Compact in the areas of Human Rights, Labour, Environment and Anti-Corruption. In this our first annual Communication on Progress, we describe our actions to integrate the Global Compact and its principles into our business strategy, culture and daily operations. We are also committed to share this information with our stakeholders using our primary channels of communication.

Yours sincerely,

Alicia Moy
President and CEO

At Hawaiʻi Gas we describe our values as Kīnāʻole “doing the right thing, in the right way, at the right time, for the right reasons, the first time.” This links to our company values:
o Integrity & Respect – We act with integrity and show respect to our colleagues, customers, and community.
o Accountability – We hold ourselves accountable for delivering on our promises.
o Teamwork & Collaboration – We share information and ideas to create solutions together.
o Excellence – We are committed to providing exceptional service and value.
o Safety – We will ensure the health & safety of our employees and our products and services; we will also be a good steward of the environment.

At Hawaiʻi Gas we commit to providing our employees with:
o A safe work environment
o Fair and competitive compensation
o Equal employment, development, and advancement opportunities
o Open lines of communication and recognition for contribution
o A company culture that:
 Respects the dignity of the individual, while promoting teamwork
 Promotes a quest for excellence and innovation
 Promotes honesty, fairness, and integrity

Diversity is recognized as a value within Hawaiʻi Gas because we know that this is what drives our company and the world forward. All employees and contractors are responsible and encouraged to build a collegial atmosphere in each of our offices, free of discrimination and harassment on any basis. Values such as respect, teamwork, integrity, fairness, and honesty are constantly reinforced and encouraged as an intrinsic part of our company culture.

A diverse and inclusive workforce is at the core of our vision, mission, and values. It is represented in the commitments we make as a business by addressing gaps and challenges we are aware of to make a greater impact on our employees, their families, and for the greater good of the communities in which we live and work.

• Raising awareness among all of our employees, starting with our Executive Leadership team.
• Implementing Human Resource policies and procedures supporting human rights at Hawaiʻi Gas , Hawaiʻi Gas treats all clients, partners, and employees with integrity, respect, fairness, and honesty.
• All of our employees are required to act in an ethical manner as responsible corporate citizens.
• In 2021, Hawaiʻi Gas conducted a Diversity, Equity, and Inclusion (DEI) engagement survey to understand employee views on company culture, leadership, resources and support, and the feedback from employees has informed Hawaiʻi Gas and its operating businesses’ DEI priorities.
• Hawaiʻi Gas established a DEI Committee comprising cross-departmental employees. The committees’ focus is to partner with leadership to advance DEI initiatives, assist in the development of DEI strategy and reporting, and raise awareness and provide DEI educational opportunities for employees. In 2021, Hawaiʻi Gas Launched company-wide DEI training for all employees.
• Our policies prohibit discrimination in hiring practices and promotion and advancement of all individuals. Hawaiʻi Gas is an equal opportunity employer.

• Hawaiʻi Gas completed its second year of participation in GRESB, which is a mission-driven and investor led organization providing standardized and validated Environmental, Social and Governance (ESG) data to external stakeholders.
• Hawaiʻi Gas provides annual compliance training and evaluations for our employees.
• Hawaiʻi Gas has implemented an annual engagement survey to track employee satisfaction. This year we had 80% of respondents indicate that they are proud to work at Hawaiʻi Gas .
• Hawaiʻi Gas tracks, monitors, and responds to any employee complaints.
• Hawaiʻi Gas tracks, monitors, and responds to any customer complaints

• Hawaiʻi Gas supports the UN Global Compact principles on labour standards in addition to following local laws on labour rights.
• Hawaiʻi Gas provides equal employment opportunities to all employees and applicants for employment without regard of race, color, religion, creed, gender, national or ethnic origin, age, marital or veteran status, sexual orientation, any handicaps, or disabilities.
• Diversity is recognized as a value within our company because we know that this is what drives our company and the world forward. All employees and contractors are responsible and encouraged to build a collegial atmosphere in each of our offices, free of discrimination and harassment on any basis. Values such as respect, teamwork, integrity, fairness, and honesty are constantly reminded and encourage as an intrinsic part of our company culture.
• A diverse and inclusive workforce is at the core of our vision, mission, and values. It is represented in the commitments we make as a business by addressing gaps and challenges we are aware of to make a greater impact on our employees, their families, and for the greater good of the communities in which we live and work

• Hawaiʻi Gas has an open-door policy to enable employees to report grievances. We measure areas of performance and generate corrective actions as needed.
• Hawaiʻi Gas provides employees with a Code of Business Conduct with information about the laws, regulations and principles of business conduct that guide our behavior. The Code of Business Conduct describes the resources available for advice and confidential reporting of legal and regulatory compliance issues as well as business conduct concerns.
• Training on the Code of Business Conduct is given annually, and it is mandated that all of our employees, officers and directors read, review, discuss and understand our Code of Business Conduct on an annual basis.
• Our company does not tolerate any discrimination or harassment by anyone within our company. To assure this, we have procedures established so employees can raise any complaints and concerns to Human Resources.
• Reporting can also be done anonymously through a Hotline.
• Hawaiʻi Gas ensures that each report is investigated and resolved, and that the person who submits the concern receives a response.
• Hawaiʻi Gas is committed to building a talent pipeline to ensure Hawaiʻi Gas reflects a Diverse, Equitable, and Inclusive workforce at all levels of the organization by integrating DEI into recruitment/hiring practices, Total Rewards, and other Talent Management initiatives.

• HG completed the second year of participation in GRESB, a mission-driven and investor-led organization providing standardized and validated Environmental, Social and Governance (ESG) data to external stakeholders.
• Hawaiʻi Gas tracks several DEI metrics including employees by gender, age, and ethnicity.
• Over 75% of Hawaiʻi Gas employees are under collective bargaining.
• Hawaiʻi Gas also provides D+I metrics to Hawaii Green Growth, a local Local2030 Hub, that tracks local ESG metrics in support of the SDG goals.
• Hawaiʻi Gas has aligned goals and key performance indicators with DEI principles including KPI’s for the Executive Leadership Team.

• Hawaiʻi Gas is committed to reducing its carbon footprint and supporting the state of Hawaii’s clean energy goals. Hawaiʻi Gas has also undertaken several initiatives to reduce our energy consumption through energy efficiency measures and on-site renewable energy.
• Hawaiʻi Gas is currently working on its companywide Green House Gas Inventory baseline measuring our Scope 1, 2, and 3 emissions, and has developed a clean energy plan to decarbonize our fuel source and reduce the company’s carbon footprint to support the state of Hawaii’s net zero carbon goals by 2045.
• Hawaiʻi Gas has been using hydrogen in our utility fuel mix for many years and we are excited to explore new opportunities to improve clean energy options for the state. Our vision is to be an industry leader in transitioning to zero-emissions fuel sources, like hydrogen, safely, affordably and reliably.
• Hawaiʻi Gas is actively pursuing renewable natural gas (RNG) and hydrogen, both of which already exist in our energy portfolio, yet have room for continued growth through exploration and innovation.

• Hawaiʻi Gas is participating in the H2@Scale initiative, led by the U.S. Department of Energy’s (DOE’s) Hydrogen and Fuel Cell Technologies Office (HFTO) within the Office of Energy Efficiency and Renewable Energy (EERE) which brings together stakeholders to advance affordable hydrogen production, transport, storage, and use while increasing revenue opportunities in multiple energy sectors. It includes DOE funded projects at National Labouratories and in collaboration with industry to accelerate hydrogen research, development, and demonstration activities. Due to our high levels of hydrogen already in our pipes Hawaiʻi Gas was approached to participate in the Hydrogen Infrastructure HyBlend study. HyBlend is focused on materials compatibility R&D, technoeconomic analysis, and life cycle to assess the feasibility of hydrogen blending in the US natural gas pipeline infrastructure.
• Hawaiʻi Gas is collaborating with Cadent, the largest gas distribution network in the United Kingdom, to support and enable hydrogen as a viable energy source for the gas utility of the future.
• We have implemented individual environmental and waste policies applicable to employees to minimize its impact on the environment.
• We have put into place an environmental management system that consists of environmental standards and permits implemented by its Environmental Health, and Safety (EH&S) department.
• Hawaiʻi Gas has developed and implemented a clean energy plan that will:
o Reduce our own energy footprint through energy efficiency initiatives
o Decarbonization of fuel source through increasing renewable natural gas and hydrogen
o Diversify into other renewable energy and clean technologies
o Allow us to participate and invest in clean energy projects and carbon offset programs.

• HG completed the second year of participation in GRESB, which is a mission-driven and investor-led organization providing standardized and validated Environmental, Social and Governance (ESG) data to external stakeholders.
• Reducing our own carbon footprint as a company is an example of our commitment to supporting the state of Hawaii’s clean energy goals. Hawaiʻi Gas has several initiatives in progress that will define, measure and track greenhouse gas emissions and energy conservation across our own facilities and fixed assets.
• Hawaiʻi Gas engaged a third party to develop a greenhouse gas (GHG) emissions inventory of the company’s operations.
• Hawaiʻi Gas is part of Hawaiʻi Green Growthʻs Green Your Business initiative where Sustainable Business Forum’s (SBF) members enrolled in Hawaiʻi Energy’s Continuous Energy Improvement (CEI) Program help improve and measure energy efficiency through facility upgrades, employee education, and operational and behavioral changes in industrial facilities and offices. Hawaiʻi Gas enrolled its Kamake’e Office in the program. Since inception:
o Energy Efficiency Savings to Date = 25,399 kWh
o Percent energy use reduction in 2020 = 21.73%
o Energy Use Reduction since 2014 = 240,236 kWh or CO2 equivalent reduced = 44,495 lbs
o Reduction equivalent to = 37 passenger vehicles driven for I year

• Hawaiʻi Gas supports the UNGC principles on anti-corruption. We work strongly against corruption in all its forms, including extortion and bribery.
• Hawaiʻi Gas ’s policy is to maintain high standards of ethical and legally compliant behavior in all of its business activities.

• Code of Business Conduct: sets forth our commitment to safe, ethical, and legally compliant business practices and outlines the values by which employees are expected to be guided.
• Within the Code of Business Conduct, Hawaiʻi Gas has a specific policy on Anti-Corruption which sets forth prohibitions on the payment or acceptance of bribes, and our commitment to comply with all applicable local, state, and federal laws.
• All Hawaiʻi Gas employees are required to participate in yearly code of business conduct training and agree to comply with all policy requirements set forth in the code of business conduct including the anti- corruption policy

• Hawaiʻi Gas completed its second year of participation in GRESB, which is a mission-driven and investor led organization providing standardized and validated Environmental, Social and Governance (ESG) data to external stakeholders.
• Hawaiʻi Gas ’s Code of Business Conduct obligates employees to report possible violations of policy or law.
• The Company strives to have an open-door policy that facilitates reporting to senior managers and prohibits retaliation against anyone who reports a concern, asks a question in good faith, or assists in an investigation of an ethics or compliance matter.
• Reporting can also be done anonymously through a Hotline. Calls to the Hotline are directed to a third-party company where questions or concerns are recorded.
• Hawaiʻi Gas has responsibility to ensure each report is investigated and resolved, and that the person who submits the concern receives a response.