To Our Stakeholders:
Welcome to EnLink’s fifth annual Sustainability Report, which details our sustainability progress throughout 2022. It was a banner year for EnLink and my first with the company, having joined as chief executive officer in June.
Here are a few of our company’s many highlights from 2022:
- Prioritizing Safety: EnLink exceeded our own safety record for the third consecutive year, achieving a total recordable incident rate of 0.26, which is 61% better than the industry average¹, and set a company record by achieving a full year without a single lost-time injury, earning us the “Perfect Record Award” from GPA Midstream.
- Emissions Reductions: In 2022, we reduced our methane emissions by approximately 2,900 metric tonnes (MT). When combined with our 2021 reductions of approximately 1,500 MT of methane, we are currently 63% completed with our 2024 near-term emissions goal of lowering our scope 1 methane emissions intensity by 30% over 2020 levels.
- Providing Solutions for Industrial Emitters: Beyond our own emissions, EnLink’s Carbon Solutions team is pursuing opportunities to reduce industrial greenhouse gas emissions in the Mississippi River corridor, one of the highest CO₂-emitting regions of the United States, and announced a landmark agreement to provide carbon transportation for ExxonMobil in support of a carbon capture and sequestration (CCS) project, for which CF Industries is the anchor customer. Both the International Energy Agency and the Intergovernmental Panel on Climate Change agree that broad CCS deployment is necessary to reduce existing emissions and put the world on a path to achieve emissions reduction targets.
- Community Support: Our employees gave their time and energy to community nonprofits in 2022. Employees utilized our community service paid time policy that gives each employee up to eight hours of paid time off to volunteer, volunteering approximately 1,300 hours’ time companywide.
- Paid Childbirth Recovery Leave: We improved our parental leave policy, granting employees who give birth up to 10 weeks of 100% paid childbirth recovery, emphasizing our commitment to fostering a diverse and inclusive work environment.
- Leadership Diversity: I joined EnLink in June 2022 and, as a Mexican American, am proud to be our company’s first Hispanic CEO and to add to the diversity of our EnLink Board of Directors. EnLink’s four-person executive leadership team, with me on board, now includes two leaders with ethnic diversity and one woman.
While last year had several significant achievements, I look forward to the “Future of Midstream” that EnLink is building, coupling traditional midstream (oil and gas delivery) with new midstream (carbon transportation solutions). We’re providing energy products critical to powering our modern society and promoting America’s energy independence, while also offering solutions to reduce greenhouse gas emissions across multiple industries that utilize these products. We consider this an energy “transformation,” not a transition, as we believe the world’s energy mix will continue to include hydrocarbons, while adding in cleaner, synthetic sources, like hydrogen, as well as renewables. EnLink has what it takes to succeed through this transformation.
First, we have a strong, traditional midstream business that is 90% natural gas and natural gas liquids based. Natural gas is a cleaner fossil fuel that is critical to our energy transformation. While U.S. natural gas production increased 91% from 2005 to 2021, total CO₂ emissions declined 18.4%². In short, natural gas is facilitating a reduction in CO₂ emissions while continuing to provide the energy resources a modern society needs and contributing to U.S. energy independence.
Second, EnLink has a clear path in the energy transformation through our growing carbon transportation business, as we have the industry’s first definitive CO₂ transportation agreement. You can read more about our Carbon Solutions business in this report.
And finally, EnLink has the financial resources, discipline, and flexibility that makes us a sustainable investment. These pillars create what we called our “CARBON” approach at a recent EnLink Investor Day:
I’m proud to say that EnLink is stronger today than it has ever been, and we’re building an even stronger, more sustainable company. Thank you for your interest in our journey.
Chief Executive Officer
- The GPA Midstream Association classifies companies that complete 1 million or more midstream operational workhours in one year as Division I. The 2022 industry average for GPA Division I companies, EnLink’s peer group, is 0.67. EnLink calculates TRIR by multiplying the number of recordable injuries by 200,000 work hours and dividing by EnLink's total actual work hours.
- EIA U.S. Natural Gas Production and U.S. Emissions by Energy Source
The information and data (collectively, “Information”) provided in EnLink’s 2022 Sustainability Report (“Report”) reflects content as of and for the period ending December 31, 2022, unless otherwise indicated. Such Information in this Report is for informational purposes only. EnLink does not make, and hereby expressly disclaims, any representation or warranty as to the accuracy or completeness of the Information contained herein. This Report is being published on August 1, 2023, and EnLink has no obligation or duty to (1) update or correct the Information, (2) provide additional details regarding the Information, or (3) continue to provide the Information, in any form, in the future. EnLink reserves the right, in its sole discretion, to modify, update, change, delete, or supplement the Information from time to time without notice. The Information should not be interpreted as any form of guaranty or assurance of future results or trends. EnLink is not expressly incorporating by reference any of the Information into any filing of EnLink made with the United States Securities and Exchange Commission or in any other filing, report, application, or statement made by EnLink to any federal, state, or local governmental authority. This Report contains information based upon EnLink’s role in the broader economy, environment, and society and for the purpose of responding to issues that are important to a wide range of interested parties. While events, scenarios, and efforts discussed in this report may be significant, any significance should not be read as necessarily rising to the level of materiality of the disclosures required under U.S. federal securities laws, which have distinct and specific concepts of materiality.