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ESG 2020 Annual Report

By the Numbers

Sustainability Metrics

DISCLAIMER: The standards of measurement and performance, as well as any goals disclosed in this report, are based on various assumptions made in good faith at the time of publication and are not guarantees or promises of actual future performance and should not be construed as a characterization regarding the materiality or financial impact of that information. For a discussion of information that is material to SJI, please see our Annual Report or our Form 10-K.

EEI-AGA ESG/Sustainability Metrics

The Edison Electric Institute/American Gas Association (EEI/AGA) ESG/Sustainability Template is a voluntary reporting template developed to assist gas and electric companies in providing the financial sector with comparable and consistent ESG data and information.

Measurement 2020 2019 2018 Baseline 2011
Utility System Emissions (in Metric Tons)
Direct CO2-Equivalent Emissions - Scope 1 101,792 127,761 142,234 232,741
Product-Supplied CO2-Equivalent Emissions - Scope 3 (partial) 4,553,554 4,956,154 5,064,650 5,199,791
CO2 1,788 1,887 1,991 3,112
Methane 4,000 5,035 5,610 9,185
Nitrous Oxide 0.0030 0.0030 0.0040 0.0050
 
Methane Emissions and Migration from Distribution Mains
Number of Gas Distribution Customers 706,499 694,281 684,764 -
Distribution Mains in Service 10,209 10,081 9,943 9,277
Plastic (miles) 7,135 6,860 6,484 4,464
Cathodically Protected Steel - Bare & Coated (miles) 2,714 2,774 2,865 2,956
Unprotected Steel - Bare & Coated (miles) 51 89 151 957
Cast Iron/Wrought Iron - without upgrades (miles) 292 338 418 870
Ductile Iron (miles) 17 20 24 31
Copper 0.5 0.4 0.5 0.5
 
Plan/Commitment to Replace/Upgrade Remaining Miles of Distribution Mains (# years to complete)
Unprotected Steel - Bare & Coated 2 SJG; 5 ETG 3 SJG; 6 ETG 4 -
Cast Iron/Wrought Iron 2 SJG; 5 ETG 3 SJG; 6 ETG 4 -
 
Distribution CO2e Fugitive Emissions
CO2e Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 100,003 125,872 140,242 229,626
CO2e Fugitive Methane Emissions from Infrastructure (Pipeline Main & Services), includes ductile iron for ETG 100,615 127,058 142,011 230,215
Percent Reduction from 2006 to each year 63% 53% 47% 14%
CH4 Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 4,000 5,035 5,610 9,185
CH4 Fugitive Methane Emissions from Gas Distribution Operations (MMSCF/year) 208 262 292 478
Annual Natural Gas Throughput from Gas Distribution Operations in thousands of standard cubic feet (Mscf/year) 94,209,006 102,812,976 105,001,394 96,299,261
Annual Methane Gas Throughput from Gas Distribution Operations in millions of standard cubic feet (MMscf/year) 89,499 97,672 99,751 91,484
Fugitive Methane Emissions Rate (Percent MMscf of Methane Emissions per MMscf of Methane Throughput) % 0.23% 0.27% 0.29% 0.52%
 
Blowdown Emissions Reduction Initiative
Natural Gas Volume Released during Blowdown, cf 3,363,374 779,310 2,063,349 -
Natural Gas Volume Saved, cf 5,353,654 1,402,476 97,899 -
CO2e Emissions Reduced, metric tons/yr 2,444 640 45 -
Percent CO2e Emissions Reduced, metric tons/yr 61% 64% 5% -
 
Excess Flow Valve Installation Program**
Excess Flow Valves (EFVs) 291,298 236,597 206,927 -
Total Number of Services 581,503 551,886 544,220 -
% EFVs to total Services 50% 43% 38% -
EFVs Methane Emissions Reduction, Mcf 133,165 108,159 94,595 -
 ** EFVs Methane Emissions Reduction calculation based on the EPA’s Natural Gas Star Program Partner Reported Opportunities for Reducing Methane Emissions, the estimated annual methane emission reductions is equal to 160 Mcf per installation of 350 Excess Flow Valves.

 
Tons of Municipal Waste, Landfilled*** 504 356 412 -
Tons of Municipal Waste, Recycled*** 588 798 614 -
% Recycled*** 54% 69% 60% -
*** Waste data is from all division locations based on information available at the time of the report
Water Disclosure (Office, Division sites, LNG facilities) ****
Total Water Used/Consumed, gallons 3,585,916 8,287,820 12,011,120 -
City Water Usage, gallons 3,083,567 5,178,200 6,363,200 -
Water Withdrawn from Well, gallons 502,348 3,109,620 5,647,920 -
**** 2020 water usage decreased due to reduced occupany during Covid

South Jersey Gas

Measurement 2020 2019 2018 Baseline 2011
Utility System Emissions (in Metric Tons)
Direct CO2-Equivalent Emissions - Scope 1 49,215 69,899 74,436 135,230
Product-Supplied CO2-Equivalent Emissions - Scope 3 (partial) 2,291,928 2,491,760 2,575,648 2,591,032
CO2 1,259 1,388 1,502 2,067
Methane 1,918 2,740 2,917 5,326
Nitrous Oxide 0.0020 0.0020 0.0030 0.0040
 
Methane Emissions and Migration from Distribution Mains
Number of Gas Distribution Customers 404,886 397,090 391,092 -
Distribution Mains in Service 6,918 6,830 6,697 6,144
Plastic (miles) 5,169 4,987 4,706 3,030
Cathodically Protected Steel - Bare & Coated (miles) 1,709 1,760 1,845 1,923
Unprotected Steel - Bare & Coated (miles) 40 83 145 955
Cast Iron/Wrought Iron - without upgrades (miles) 0 0 1 236
Ductile Iron (miles) 0 0 0 0
Copper 0 0 0 0
 
Plan/Commitment to Replace/Upgrade Remaining Miles of Distribution Mains (# years to complete)
Unprotected Steel - Bare & Coated 2 3 4 -
Cast Iron/Wrought Iron 2 3 4 -
 
Distribution CO2e Fugitive Emissions
CO2e Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 47,955 68,509 72,933 133,161
CO2e Fugitive Methane Emissions from Infrastructure (Pipeline Main & Services), includes ductile iron for ETG 47,041 67,582 72,023 131,137
Percent Reduction from 2006 to each year 69% 55% 52% 13%
CH4 Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 1,918 2,740 2,917 5,326
CH4 Fugitive Methane Emissions from Gas Distribution Operations (MMSCF/year) 100 143 152 277
Annual Natural Gas Throughput from Gas Distribution Operations in thousands of standard cubic feet (Mscf/year) 49,364,522 54,496,700 55,690,815 45,164,947
Annual Methane Gas Throughput from Gas Distribution Operations in millions of standard cubic feet (MMscf/year) 46,896 51,772 52,906 42,907
Fugitive Methane Emissions Rate (Percent MMscf of Methane Emissions per MMscf of Methane Throughput) % 0.21% 0.28% 0.29% 0.65%
 
Blowdown Emissions Reduction Initiative
Natural Gas Volume Released during Blowdown, cf 3,204,292 672,767 1,969,844 -
Natural Gas Volume Saved, cf 5,136,440 1,348,181 97,018 -
CO2e Emissions Reduced, metric tons/yr 2,345 615 44 -
Percent CO2e Emissions Reduced, metric tons/yr 62% 67% 5% -
 
Excess Flow Valve Installation Program **
Excess Flow Valves (EFVs) 187,375 144,299 125,762 -
Total Number of Services 350,734 322,000 315,475 -
% EFVs to total Services 53% 45% 40% -
EFVs Methane Emissions Reduction, Mcf 85,657 65,965 57,491 -
 ** EFVs Methane Emissions Reduction calculation based on the EPA’s Natural Gas Star Program Partner Reported Opportunities for Reducing Methane Emissions, the estimated annual methane emission reductions is equal to 160 Mcf per installation of 350 Excess Flow Valves.
 
Tons of Municipal Waste, Landfilled*** 355 236 275 -
Tons of Municipal Waste, Recycled*** 500 717 527 -
% Recycled*** 59% 75% 66% -
*** Waste data is from all division locations based on information available at the time of the report
Water Disclosure (Office, Division sites, LNG facilities)****
Total Water Used/Consumed, gallons 2,912,642 7,220,320 10,677,620 -
City Water Usage, gallons 2,578,976 4,324,550 5,243,550 -
Water Withdrawn from Well, gallons 333,667 2,895,770 5,434,070 -
**** 2020 water usage decreased due to reduced occupany during Covid

Elizabethtown Gas

Measurement 2020 2019 2018 Baseline 2011
Utility System Emissions (in Metric Tons)
Direct CO2-Equivalent Emissions - Scope 1 52,577 57,862 67,798 97,511
Product-Supplied CO2-Equivalent Emissions - Scope 3 (partial) 2,261,626 2,464,394 2,489,002 2,608,759
CO2 529 499 489 1,046
Methane 2,082 2,295 2,692 3,859
Nitrous Oxide 0.0010 0.0010 0.0010 0.0010
 
Methane Emissions and Migration from Distribution Mains
Number of Gas Distribution Customers 301,613 297,191 293,672 -
Distribution Mains in Service 3,291 3,251 3,246 3,133
Plastic (miles) 1,966 1,873 1,778 1,434
Cathodically Protected Steel - Bare & Coated (miles) 1,005 1,014 1,020 1,033
Unprotected Steel - Bare & Coated (miles) 10 6 6 2
Cast Iron/Wrought Iron - without upgrades (miles) 292 338 417 634
Ductile Iron (miles) 17 20 24 31
Copper 0.5 0.4 0.5 0.5
 
Plan/Commitment to Replace/Upgrade Remaining Miles of Distribution Mains (# years to complete)
Unprotected Steel - Bare & Coated 5 6 - -
Cast Iron/Wrought Iron 5 6 - -
 
Distribution CO2e Fugitive Emissions
CO2e Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 52,048 57,363 67,309 96,464
CO2e Fugitive Methane Emissions from Infrastructure (Pipeline Main & Services), includes ductile iron for ETG 53,574 59,476 69,988 99,078
Percent Reduction from 2006 to each year 55% 50% 41% 17%
CH4 Fugitive Methane Emissions from Gas Distribution Operations (metric tons) 2,082 2,295 2,692 3,859
CH4 Fugitive Methane Emissions from Gas Distribution Operations (MMSCF/year) 108 120 140 201
Annual Natural Gas Throughput from Gas Distribution Operations in thousands of standard cubic feet (Mscf/year) 44,844,484 48,316,276 49,310,579 51,134,314
Annual Methane Gas Throughput from Gas Distribution Operations in millions of standard cubic feet (MMscf/year) 42,602 45,900 46,845 48,578
Fugitive Methane Emissions Rate (Percent MMscf of Methane Emissions per MMscf of Methane Throughput) % 0.25% 0.26% 0.30% 0.41%
 
Blowdown Emissions Reduction Initiative 
Natural Gas Volume Released during Blowdown, cf 159,082 106,542 93,505 -
Natural Gas Volume Saved, cf 217,214 54,295 881 -
CO2e Emissions Reduced, metric tons/yr 99 25 0.40 -
Percent CO2e Emissions Reduced, metric tons/yr 58% 34% 1% -
 
Excess Flow Valve Installation Program**
Excess Flow Valves (EFVs) 103,923  92,298 81,165 -
Total Number of Services 230,769  229,886 228,745 -
% EFVs to total Services 45% 40% 35% -
EFVs Methane Emissions Reduction, Mcf 47,508  42,193 37,104 -
 ** EFVs Methane Emissions Reduction calculation based on the EPA’s Natural Gas Star Program Partner Reported Opportunities for Reducing Methane Emissions, the estimated annual methane emission reductions is equal to 160 Mcf per installation of 350 Excess Flow Valves.
 
Tons of Municipal Waste, Landfilled*** 149 119 137 -
Tons of Municipal Waste, Recycled*** 88 81 86 -
% Recycled*** 37% 40% 39% -
*** Waste data is from all division locations based on information available at the time of the report
Water Disclosure (Office, Division sites, LNG facilities)
Total Water Used/Consumed, gallons 673,273 1,067,500 1,333,500 -
City Water Usage, gallons 504,592 853,650 1,119,650 -
Water Withdrawn from Well, gallons 168,682 213,850 213,850 -
**** 2020 water usage decreased due to reduced occupany during Covid

Social

Measurement 2020 2019 2018
Total Employees** 1,128 1,117 1,110
Corporate 20% 18% 14%
Utility Company 77% 79% 82%
Non-Utility Company 3% 3% 4%
 
% of Employees Represented by Unions** 41% 44.3% 45.0%
Employee Turnover Rate** 8% 6.7% 6.9%
Retirements 4% 6% 3%
Employee Population Ethnicity Representation**
Male 62% 61% 63%
Female 38% 39% 37%
White 71% 72% 74%
Minority (including women) 51% 51% 49%
Non White 29% 28% 26%
Breakdown of Non-White Employees
          American Indian 1% 1% 1%
          Asian 10.7% 9% 10%
          Black 40% 42.5% 47.5%
          Hispanic 43% 42.5% 37.5%
          Two or More Races 4% 5% 4%
          Native Hawaiian or Other Pacific Islander 0.3% N/A N/A
 
Median Employee Age** 44 45 47
Employee Population Generational Representation**
Traditionalists (Over 75) 0% 0% 0.1%
Baby Boomers (56-74) 24% 31% 37.3%
Generation X (40-55) 35% 34% 32.6%
Millenials/Generation Y (25-39) 37% 34% 29.5%
I Gen/Generation Z (24 and younger) 4% 1% 0.5%
New Hire Representation
New Hire Males 70% 51% 52%
New Hire Women 30% 49% 48%
New Hire Minorities (including Women) 52% 75% 75%
New Hire Non White 38% 40% 40%
 
Median Employee Tenure** 5 6 7
Leadership Roles Held by Women 38% 39% 39%
Entry Level Engineer Positions Held by Women and Minorities**** 62% 55% 69%
Internship Program Participants 7 14 23
Employee Engagement Survey Response Rate N/A 82% N/A
Employee Engagement Survey Engagement Rate N/A 88% N/A
Employee Participation in Corporate Training/Development Programs (in hours) 5945 4,877 5,714

**Intern Population included
***Senior Engineer Positions: Engineer V and Above
****Entry Level Engineer Positions: Coordinator,Associate,  Intermediate, Level 

Safety

Measurement 2020 2019 2018
OSHA Recordable Rate 1.13 1.97 2.31
DART Rate 0.68 1.23 1.27
Preventable Auto Rate 1.34 2.8* 2.84*
SJI Fatality Rate 0.00 0.00 0.00
* Numbers are for SJG only as miles were not tracked for ETG until 2020.

Governance

Measurement 2020 2019 2018
Members of the Board of Directors 10 11 10
Female Members of the Board of Directors 3 3 3
Ethnic Diversity of Board      
          African American 1 1 1
          Asian 1 1 1
          International 1 1 1
          Other 7 8 7

SASB Gas Utility Standards

The SASB standards are intended to provide industry-specific financially material sustainability information that will provide investors with consistent decision-useful information.

SASB Code Accounting Metric SJG 2020 ETG 2020
Energy affordability
IF-GU-240a.1 Average gas retail rate for residential customers (USD per MMBtu) $14.40 $10.48
Average gas retail rate for commercial customers (USD per MMBtu) $12.28 $10.53
Average gas retail rate for industrial customers (USD per MMBtu) $5.31 $6.33
Average gas retail rate for transportation services only (USD per MMBtu) $3.65 $2.46
 
IF-GU-240a.2 Typical monthly gas bill for residential customers for (1) 50MMBtu of gas delivered per year $66.12 $50.38
Typical monthly gas bill for residential customers for (2) 100 MMBtu of gas delivered per year $122.02 $90.67
 
IF-GU-240a.3 Number of residential customer gas disconnections for non-payment Moratorium in effect during entirety of 2020
IF-GU-240a.4 Discussion of impact of external factors on customer affordability of gas, including the economic conditions of the service territory Please see this item in SASB Discussion and Analysis Section
End-Use Efficiency
IF-GU-420a.1 Percentage of gas utility revenues from rate structures that are decoupled or contain a lost revenue adjustment mechanism 81% N/A
IF-GU-420a.2 Customer gas savings from efficiency measures by market (MMBtu) 670,496 153,027
IF-GU-420a.2 Residential Total (All Program -Non CIP) Savings  333,940  
Home Performance with Energy Star Loans 18,784  
HVAC Loans 20,373  
HVAC Rebates 30,039  
Efficient Product Marketplace  131,264  
Home Weatherization for Income-Qualified Customers 718  
Home Energy Assessment with Direct Install 189  
Behavioral Program  132,573  
Commercial Customers (SJG CI Loan Program)  2,617  
Integrity of gas delivery infrastructure
IF-GU-540a.1 Number of reportable pipeline incidents 0 0
Number of corrective action orders 0 0
Notices of probable violation 0 0
IF-GU-540a.2 Percentage of distribution pipeline that is (1) cast and/or wrought iron 0% 9%
Percentage of distribution pipeline that is (2) unprotected steel 1% 0%
IF-GU-540a.3 Percentage of gas (1) transmission pipelines inspected 15% 26%
Percentage of gas (2) distribution pipelines inspected 0% 0%
IF-GU-540a.4 Description of efforts to manage the integrity of gas delivery infrastructure, including risks related to safety and emissions Please see this item in SASB Discussion and Analysis Section
Activity metrics
IF-GU-000.A Number of residential customers served 375,091 275,592
Number of commercial customers served 26,104 23,453
Number of industrial customers served 458 121
IF-GU-000.B Amount of natural gas delivered to residential customers (MMBtu) 24,382,196 22,412,856
Amount of natural gas delivered to commercial customers (MMBtu) 12,143,991 13,100,558
Amount of natural gas delivered to industrial customers (MMBtu) 15,168,019 12,116,886
Amount of natural gas transferred to a third party (MMBtu) - -
IF-GU-000.C Number of gas transmission pipelines 236 21
Length of gas distribution pipelines (km) 10,897 5,278
SASB Discussion and Analysis
IF-GU-540a.4 - Description of efforts to manage the integrity of gas delivery infrastructure, including risks related to safety and emissions
  Our system improvement efforts across our utilities focus on enhancing the safety, reliability and resiliency of our natural gas systems.   Our modernized system results in fewer leaks, and our diligent leak tracking and response program ensures timely repairs. With less natural gas escaping our system, we also see less greenhouse gas emissions.  As shown in our metrics table our infrastructure improvement programs at our utilities have resulted in a reduction in CO2 equivalent emissions from 2006 levels of 69% at SJG and 55% at ETG.  Further discussion on our infrastructure improvements can be found within the infrastructure modernization section of the ESG report.
IF-GU-240a.4 - Discussion of impact of external factors on customer affordability of gas, including the economic conditions of the service territory 
  The challenges presented to our Customers and the Country as a whole related to the financial impact of the COVID-19 pandemic has increased cases of financial hardship and in turn affected the ability for some in our service territory to pay for utility service.   In addition to the Moratorium that was placed on utility shutoffs during the last year SJG has continued to partner with providers to promote financial assistance to those in need through low income assistance programs, including the Low-Income Home Energy Assistance Program (“LIHEAP”), Payment Assistance for Gas and Electric (“PAGE”), Lifeline, Comfort Partners and NJ SHARES, as well as other grants and relief funds administered by our State and Federal agency partners.  

Other

Measurement 2020 2019 2018
Utility Customer Count 706,499 701,080 691,448
Customer Representation
Residential 92.8% 92.80% 92.80%
Commercial 7.08% 7.10% 7.20%
Industrial 0.07% 0.10% <0.10%
 
Gas Leak Hotline Calls 20,875 24,540 27,067
Gas Leak Hotline Average Call Response Time (in Minutes) 27.2 25.6 26
Customer Growth Rate 1.76 1.40% 1.40%
Total Utility Customer Bill Financial Support Given (in Millions of Dollars) 15.75 16.50 15.00
Capital Investment (in Millions of Dollars) 486.5 504.20 361.60
Salaries Paid to Employees (in Millions of Dollars) 96.4 90.30 76.80*
Total Supplies and Services Expenditures from New Jersey-Based Companies (in Millions of Dollars) 327.8 233.6** 253.7**
Total Supplies and Services Expenditures from Minority-, Service-Disabled Veteran-, Woman-Owned Businesses (in Millions of Dollars) 86.00 87.40 55.00*
Economic Earnings (in Millions of Dollars) 163.00 103.00 116.20
Annualized Dividend Declared Per Common Share (in Dollars) 1.21 1.18 1.15
*Includes only partial year data from Elizabethtown Gas and former SJI utility Elkton Gas
**Data from 2018-2019 revised to reflect more accurate methods for extracting data on New Jersey-based suppliers that SJI adapted after a forensic review of procurement records related to the acquisition of Elizabethtown Gas.