Environmental
At UGI, we practice responsibility throughout our business. We emphasize the necessity to reduce our environmental impact and encourage conservation and energy efficiency. As a distributor of our nation’s most affordable, efficient and cleanest fossil fuels, we provide the foundation to power businesses and enrich the lives of our customers. Climate change creates a challenge that UGI must address in order to continue to serve our customers’ energy needs. UGI believes that safe, reliable, affordable, innovative and efficient operations will create sustainable investment opportunities and long-term value for our stakeholders.
Reducing Our Emissions – Environmental Transparency, Action, & Progress Towards a Sustainable Future
2020 was the first year that UGI streamlined its carbon reporting methods and assumptions across its businesses. UGI has a number of goals that will be monitored using the Environmental Management System (“EMS”) and we demonstrated progress on these goals in the “Our Commitments” section.
We are proud to report a 34% reduction in our Scope 1 emissions year over year and are on track to meet our enterprise-wide goal to reduce Scope 1 (direct) GHG emissions by 55% over the remaining four years.1
Managing our own emissions not only plays a key role in the long-term sustainability of the Company, but it also promotes safety and efficiency.
UGI’s ESG team works with members of the finance and environmental teams across our four businesses to capture and monitor environmental data. After the data is compiled by UGI’s ESG team, it is reported to the leaders of the businesses, senior management, and the Safety, Environmental, and Regulatory Compliance (“SERC”) and Corporate Governance Committees of UGI’s Board of Directors. The 2019–2021 figures presented herein have been reviewed and verified by UGI’s Internal Audit department. The Company plans to have independent, external assurance of its environmental data in future reports.
Scope 1 Emissions2
| Indicator: Greenhouse Gas Emissions | 2019 Results in Metric tons of CO2 equivalent | 2020 Results in Metric tons of CO2 equivalent | 2021 Results in Metric tons of CO2 equivalent |
|---|---|---|---|
| Total Scope 1 Direct Emissions | 1,389,597 | 1,239,139 | 820,557 |
TRANSPARENCY
UGI remains committed to enhancing its disclosures and reporting metrics for stakeholders.
ACTION
UGI began the process of evaluating upstream, downstream, and supply chain emissions across our businesses in Fiscal 2021.
PROGRESS
UGI disclosed Scope 3 emissions for Fiscal 2021 results.
Scope 3 Emissions5
Scope 3 emissions in our businesses come primarily from the extraction (upstream) and combustion (downstream) of the molecules we distribute. The third material aspect of our Scope 3 emissions stems from our supply chain.
To calculate supply chain emissions, we gathered the top 25 procurement vendors by total spend. We then applied industry-based carbon emission factors per dollar of spend to arrive at supply chain emissions. While we are committed to refining this process in the future, this approach allowed us to focus on material sources of emissions while setting the framework for the future. Typical indirect emissions, such as business travel and employee commuting, are not material to UGI’s Scope 3 emissions and are therefore not included.
| Indicator: Greenhouse Gas Emissions | 2021 Results in Metric tons of CO2 equivalent |
|---|---|
| Combustion | 34,347,901 |
| Extraction | 7,861,992 |
| Supply Chain | 491,214 |
| Total Scope 3 Emissions | 42,701,107 |
Methane
Increasingly, methane emissions have been a focus of both UGI and our stakeholders. We take methane emissions seriously and continue to work towards highly efficient methane management. As such, UGI Utilities is a partner in the Environmental Protection Agency’s (“EPA”) Natural Gas STAR and Methane Challenge programs. Participation in these programs signals a commitment to reduce methane emissions and furthers our goal to be a more efficient natural gas distribution company. Among the largest operators in the Commonwealth of Pennsylvania, UGI Utilities has the highest proportion of contemporary mains – nearly 90%. Through our pipeline replacement and betterment activities, investment in efficient assets, continuous improvement of our leak detection and repair programs, and other efforts, UGI Utilities’ operational fugitive methane emissions decreased by 90% over the last 20 years. During this time, the scope of our operations doubled. Therefore, our commitment to reduce methane emissions remains critically important to both the environment and the safety of the communities we serve. To achieve 2030 and 2040 target emission reductions, UGI Utilities will need to reduce emissions by 35% by 2030 and 55% by 2040 from current levels.
Leak Detection and Repair
| A Leak | An underground leak that is non-hazardous at the time of detection and can be reasonably expected to remain non-hazardous. Repair – No required repair time line, but must be resurveyed within 15 months of the original finding |
| Occurrences decreased nearly 20% over the last six years (2015-2021) | |
| B Leak | An underground leak that is recognized as being non-hazardous at the time of detection, but justifies a scheduled repair based on probable future hazard. Repair – Must be resurveyed within 7.5 months of the original finding, and must be repaired within 15 months of original finding |
| Occurrences decreased over 68% over the last six years (2015-2021) | |
| C Leak | An underground leak that represents an existing or probable hazard to persons or property, and requires immediate repair or continuous action until the conditions are no longer hazardous. Repair – Must be repaired immediately |
| Occurrences decreased over 44% over the last six years (2015-2021) |
Air Quality
Not only is air quality an important contributor to climate change, it impacts our relationship with the communities in which we operate. We recognize our responsibility to control air emissions, including nitrogen oxides, sulfur dioxide, volatile organic compounds, hazardous air pollutants, and particulate matter from our operations to minimize environmental risks and impacts to human health. UGI actively works to reduce air emissions by maximizing operational efficiency and ensuring compliance with federal and state requirements. 88% of Energy Services facilities operate near areas of dense populations, however, all of our facilities with an air permit are operating below our permit limits6.
Water Management
While UGI does not use a significant amount of water resources in its regular business activities, we recognize the importance of maintaining water quality. Access to clean water is a universal human right. UGI acknowledges the Human Right to Water which, as defined by the United Nations, means access for everyone to sufficient, safe, acceptable, physically accessible, and affordable water.
UGI recognizes that climate change and increased periods of dry weather may lead to falling reservoir and ground-water levels, which could impact water availability and quality.
Energy Services uses water as a part of regular business activities, and attempts to minimize its use of fresh water under normal operations at the majority of its facilities and/or pipeline infrastructure. There is occasional freshwater usage for midstream operations, and Energy Services follows the conditions outlined by relevant regulatory agencies (e.g. Pennsylvania Department of Environmental Protection (“PADEP”) Bureau of Clean Water).
Water Recycling Program
Energy Services Hunlock Unit 4 facility (located in Hunlock, Pennsylvania) utilizes a water injection system to reduce nitrogen oxide (NOx) emissions. Water used in this process is responsibly sourced from the municipal water authority and, after use, the water is transported to a recycling facility. Similarly, the Hunlock Combined Cycle facility sources water from the municipal water authority and utilizes it in its water injection system to reduce NOx emissions. The Hunlock facility also sources water directly from the Susquehanna River to be used in its once-through cooling process. Wastewater generated at the facility through various cleaning processes represents a significantly smaller amount, is transported to a wastewater recycling facility or discharged back to the Susquehanna River via Hunlock’s permitted National Pollutant Discharge Elimination System (“NPDES”) effluent outfalls. In efforts to offset the amount of water needed to be withdrawn from the Susquehanna River, stormwater captured in the facilities’ 90,000 gallon underground stormwater vault is beneficially reused in the facilities’ cooling process. All water intake and use at these facilities is authorized and closely monitored by PADEP and the Susquehanna River Basin Commission (“SRBC”).
The peak shaving process at the Bethlehem LPG facility located in Bethlehem, Pennsylvania, includes the use of a single, 4-stage compressor that utilizes municipal water for cooling. The water is supplied to a system of aftercoolers by a 4-inch diameter line branching from the facility’s main water supply line, and then is discharged into the storm drain on site. The water does not come into contact with any other substances during the cooling process, so there is minimal possibility of the water being contaminated before being returned to the water authority.
The EPA Clean Water Act NPDES10 permit establishes effluent limitations through the implementation of best management practices in order to reduce the discharge of pollutants into waters of the United States. In the Commonwealth of Pennsylvania, all discharges must comply with the applicable regulations found in 25 PA. Code Chapters 91-96, 102, and 105. Discharges authorized under a NPDES permit require the permittee to incorporate routine representative sampling, as well as follow strict recordkeeping, analytical testing procedures, and quality assurance and control requirements. Reporting is done through the use of Discharge Monitoring Reports (“DMRs”), which are provided to the PADEP electronically on a monthly, quarterly, and annual basis.
The SRBC is an interstate agency with a mission to protect the water resources within the Susquehanna River Basin. Water allocation and management are closely regulated by the SRBC through consumptive use agreements. Water intake and outfalls quantities that make up Energy Services’ daily water usage are tracked and reported to the SRBC. Likewise, water quality standards are upheld through stringent sampling protocols. The SRBC recently completed facility audits at both the Hunlock Creek Combined Cycle and Unit 4 facilities with favorable results and no compliance issues.
Streams and Wetland Resources
Energy Services thoroughly considers water resources during the pipeline rights-of-way routing process, as well as the siting of facility locations. As part of this process, a desktop review is completed to minimize impacts to watercourses, wetlands, and floodways, which includes research of agency-managed databases (e.g. United States Fish & Wildlife Service’s National Wetland Inventory). Energy Services will engage with certified ecologists to identify and delineate streams, wetlands, and floodways to further promote water resource avoidance and impact minimization. If water resource impacts are deemed unavoidable, Energy Services will obtain state and/or federal water obstruction and encroachment permits prior to construction, and follow all environmental laws and permit conditions during construction and restoration.
Storm Water
To prepare for precipitation events experienced during project construction, Energy Services will deploy numerous stormwater best management practices designed to contain stormwater and filter out sediment as the water leaves the construction site, allowing clean water to continue though the hydrological cycle. At locations where permanent impervious surfaces are created, Energy Services follows all applicable regulations to create long-term solutions to capture and clean stormwater at its facilities.
2021 Water Use at Energy Services’ Operations
| Hunlock Facilities Water Use (Thousands of Cubic Meters) | 2019 Hunlock Combined Cycle | 2019 Hunlock 4 | 2020 Hunlock Combined Cycle | 2020 Hunlock 4 | 2021 Hunlock Combined Cycle | 2021 Hunlock 4 |
|---|---|---|---|---|---|---|
| Total Water withdrawn from Susquehanna River 11 | 12,501 | NA | 21,499 | NA | 30,899 | NA |
| Total City Water Used12 | 75 | 7 | 121 | 15 | 129 | 11 |
| Total Water Discharged back to River (Outfalls 001, 003 & 004)13 | 12,466 | NA | 21,366 | NA | 30,758 | NA |
| Total Water Removed from Site for Recycling | 0.02 | 0.20 | 0.01 | 0.26 | 0.01 | 0.55 |
| Total Stormwater collected and reused for Once-Through Cooling Process | 13 | NA | 10 | NA | 12 | NA |
| Percentage (%) of Water Recycled and Reused | 11% | 3% | 5% | 2% | 4% | 5% |
| Percentage (%) of water consumed/ withdrawn from locations with High or Extremely High Water Risk14 | 0% | 0% | 0% | 0% | 0% | 0% |
| Bethlehem LPG Facilities Water Use (Thousands of Cubic Meters) | 2019 Bethlehem LPG | 2020 Bethlehem LPG | 2021 Bethlehem LPG |
|---|---|---|---|
| Total City Water Used | 0.74 | 0.78 | 1.15 |
| Percentage of water reused | 0% | 0% | 0% |
| Percentage of water recycled | 100% | 100% | 100% |
| Percentage (%) of water consumed/withdrawn from locations with High or Extremely High Water Risk15 | 0% | 0% | 0% |
Waste Management
Although waste represents a small portion of UGI’s overall environmental impact, effective waste management is important to UGI’s overall sustainability efforts. UGI is committed to proactively reducing waste from our operations and effectively managing the waste that is generated. Proper management of hazardous and non-hazardous waste promotes safe operations and the health and well-being of our employees, communities, and the environment. While UGI’s businesses do not regularly generate hazardous waste, UGI adheres to EPA’s rules and regulations for hazardous waste reporting.
UGI Utilities Universal Waste Management policy establishes a standardized process for managing hazardous and nonhazardous waste generated by UGI Utilities or contractors conducting work on behalf of UGI. The policy provides guidance on the proper handling, storage, transportation, and disposal of Universal Waste as designated by the EPA. This policy, combined with training and compliance audits, forms the basis of our waste management approach.
In Fiscal 2021, AmeriGas generated 9,850 pounds of hazardous waste. Energy Services had a one-off event at its Bethlehem LNG facility that generated 14,341 gallons of hazardous waste, of which 8,953 gallons were solidified and disposed of at the landfill and 5,388 gallons were treated at a wastewater treatment facility. UGI Utilities generated approximately 12,500 pounds of hazardous waste in 2021.
Universal Waste Recycling and Conservation Efforts
Throughout Fiscal 2021, UGI continued its waste recycling and conservation efforts across its offices, facilities, and site locations, which include having labeled recycling bins (glass, paper, plastics, etc.) throughout offices and facilities and replacing existing lighting with more efficient LED light bulbs.
In addition, UGI has a well-established information technology (“IT”) recycling program across its businesses and works with local companies to recycle old electronics.
Spotlight on Energy Services’ conservation and recycling efforts
At the Wyomissing headquarters office location, engineers and architects were instrumental in incorporating energy-efficiency and conservation measures during construction to ensure that multiple waste mediums (light, energy, refuse, etc.) would be appropriately handled and recycled. In particular, UGIES’ headquarters has been equipped with an energy-efficient Lutron lighting system16, which includes energy conservation measures such as daylight harvesting and bulb timers, among others. These purposeful and innovative design and construction applications result in less frequent bulb replacements and ultimately less waste. Additional Leadership in Energy and Environmental Design (LEED) aspects were incorporated into the design, and include elements such as mechanical-electric-plumbing (MEP) low flow fixtures with water sense flushometers and Cradle to Cradle Certified carpeting. These carpets are assessed for impacts on human health and the environment17, and can be recycled through an Environmental Guarantee program18.
Environmental Management System
UGI’s EMS helps us comply with applicable regulations, minimize our impact on the environment and continually improve our processes. UGI’s Environmental, Sustainability and HSSE Policies are the core of our EMS and:
- support UGI’s environmental goals;
- support UGI’s legal and regulatory disclosure practices;
- provide greater insight into UGI’s operational environmental footprint which helps inform ways in which we can improve the efficiency of our operations and reduce our overall carbon footprint by focusing on things such as:
- switching from diesel engines to CNG, bio-diesel, and LG-fueled vehicles;
- implementing carbon capture technology at compressor stations;
- continuing to replace cast iron and bare steel pipe with contemporary materials;
- fostering ongoing improvements in efficiency;
- maximizing “Green Power”; and
- monitoring new technology that can support UGI’s GHG reduction targets;
- establish programs, data collection, and streamlined assumptions to meet objectives and targets and ensure data accuracy; and
- monitor and measure progress towards environmental goals.
Wherever we do business, our activities will be consistent with sound environmental practices and we will:
- govern and hold ourselves responsible for doing business the right way as we meet our compliance obligations and interact with regulatory agencies;
- protect the natural environment from potential harm and degradation as we understand and reduce, where practical, the environmental impact of our activities;
- encourage social responsibility as our employees serve and participate in our communities;
- implement and maintain management systems with the focus on continual improvement to enhance environmental performance;
- establish environmental objectives compatible with the strategic direction of our company; and
- communicate and share our environmental values and policy with our employees and interested stakeholders.
Biodiversity
At UGI, we believe biodiversity is an essential component of a healthy environment. In 2021, Energy Services implemented a biodiversity policy to address key responsibilities surrounding the identification, avoidance, minimization, and mitigation of habitats and ecosystems in the communities we serve. Objectives within the biodiversity policy are aligned with UGI’s Code of Business Conduct and Ethics and establish a basis for our commitment to recognizing, addressing, maintaining, and enhancing biodiversity.
UGI is committed to environmental responsibility, and continues to challenge itself to site, authorize, construct, operate, and maintain its assets and facilities in a manner that allows for minimal to no adverse impacts to the biodiversity in which we are located and operate. The Company seeks to preserve and promote existing flora and fauna species, their habitats, and ecosystems whenever practicable, with a heightened focus on rare, threatened, or endangered species and habitats as per the Endangered Species Act of 1973.
The Intersection of Operational Excellence and Biodiversity- UGI Wins National Recognition & Diamond Awards
UGI won the American Council of Engineering Companies Pennsylvania (“ACEC/PA”) 2022 National Recognition Award for the Bethlehem LNG project. This award is a prestigious distinction honoring projects that achieved exceptional engineering excellence. The Bethlehem LNG facility is a two million gallon LNG storage, trucking, and peak shaving asset in Pennsylvania. The LNG facility provides natural gas to the territory during periods of extreme cold weather when other traditional supply sources become more constrained.
The Bethlehem LNG project also received the ACEC/PA 2022 Diamond Award, which celebrates organizations that develop innovative projects that positively impact communities in the Commonwealth of Pennsylvania. These awards honor innovative and accomplished projects that have demonstrated immense creativity, dedication and resourcefulness.
During construction of the Bethlehem LNG facility, Energy Services committed to restoring and stabilizing a nearby ravine that had eroding embankments that were becoming highly unstable. The project team experienced numerous hurdles and washouts due to multiple storm events in 2021. Despite those challenges, and as an example of UGI’s operational excellence and commitment towards protecting and improving biodiversity in the communities we serve, the team converted the chasm into a successfully functioning stream located within a Pennsylvania state-designated watershed for migratory fishes. This not only serves as an example of UGI’s operational excellence, but also as an example of commitment towards protecting and improving biodiversity in the communities we serve.
The Bethlehem LNG project highlights the capabilities and resilience of our strongest asset, our people. Our project team successfully completed this state-of-the-art LNG peaking and trucking facility, despite the challenges of weather and COVID-19. From the creative use of a brownfield site to the careful restoration of a severely eroded stream, Energy Services remains focused on the commitments to our customers while supporting our
communities and protecting the environment.
Modernizing Facilities – Greater Efficiency, Lower Emissions, Lower Expenses
AmeriGas
The UGI and AmeriGas headquarters is LEED certified Silver, served by a 60 kWp roof-mounted solar photovoltaic energy system and features an electric car charging station.
UGI Utilities
UGI Utilities recently completed a new state-of-the-art solar carport at its Denver, PA, headquarters. The array consists of 1,078 solar panels and works in tandem with the building’s efficient Combined Heat and Power (“CHP”) system. When the sun is shining, UGI Utilities draws power from the solar array, and throttles down its CHP system to ensure maximum use of renewable energy. In Fiscal 2021, operating for only part of the year, the solar panels at Denver generated approximately 65 megawatt-hours of electricity and reduced emissions by 46 metric tons of CO2. In 2022, we expect the solar panel array to generate an estimated 400 megawatt-hours of power. UGI Utilities also features an electric car charging station.
What is CHP?
CHP systems, also known as cogeneration systems, generate electricity and useful thermal energy in a single, integrated system. Heat that is usually wasted in conventional power generation is recovered as useful energy, eliminating losses that occur when heat and power are generated separately. Cogeneration systems can operate at levels as high as 80% efficiency, compared to 45% with conventional methods. Most CHP projects have a natural gas engine or turbine radiating heat that is captured and used in a heating application. The heat is then used to drive an absorption cooling machine that produces cooling. The natural gas engine or turbine is coupled with an electric generator to produce electric power.
UGI International
In 2021, UGI International leased a new office in Vienna that is supplied exclusively by renewable electricity. This new, modern office has enabled a variety of energy savings and also offers electric car charging stations in Vienna.
UGI International’s office in Warsaw, Poland was recently relocated to Warsaw FOREST19, a Building Research Establishment Environmental Assessment Methodology (“BREEAM”) certified development. BREEAM provides independent third-party certification of the assessment of the sustainability performance of individual buildings and infrastructure projects. Certified facilities enhance the well-being of the occupants and help protect natural resources. We expect the move to this new facility to provide a number of environmental benefits to plant operations, including energy savings, risk minimization, and higher efficiency.
TRANSPARENCY
UGI International supports the enterprise-wide commitment to reduce emissions and is actively making operational investments to reduce our overall carbon footprint.
ACTION
UGI International invested over $50,000 to install new and efficient LED lighting systems in place of older/outdated flood lighting systems at terminals and depots.
PROGRESS
As a result, our total CO2 energy savings from this investment has reached 0.212 kg/KwH, which is the equivalent of nearly 19 tons of reduced Scope 2 emissions.
Energy Services
Greater Efficiency — Compressor Station Upgrades
In 2021, UGI re-assessed the Gibraltar compressor station in an effort to replace high-bleed pneumatic controllers. Replacing these controllers will lower air emissions at this particular facility. These compressor station upgrades include plans to install and change current relays to low bleed relays and operate them at 35-40 pounds per square inch in gauge max. The upgrades are expected to improve bleed rates well beyond industry standards, without impacting valve function.
Solar-powered Generation
Energy Services has a track record of success with solar projects, both at our own facilities and at our customers’ sites. Energy Services owns and operates facilities with 13.5 megawatt-hours of solar-powered generation capacity. These facilities include solar farms at our Temple LNG site and at our Steelton Propane Air & LNG facility.
Reducing our Customers’ Emissions – Affordability, Reliability and Responsibility
Customer Conversions
UGI predominantly markets and distributes natural gas and LPG. These two energy sources are cleaner than alternatives, such as coal and heating oil. In terms of power generation, natural gas emits 50% – 60% less CO2 when compared to a typical coal plant. Converting customers from heavier hydrocarbons remains a driving factor behind our commitments to our stakeholders.
Over the past ten years, UGI Utilities has converted nearly 100,000 households to natural gas. The reduction in GHG emissions from these conversions is equivalent to removing more than 55,806 cars from the road for one year.
Energy Efficiency and Conservation (“EE&C”) Programs
UGI Utilities offers a variety of energy efficiency programs to residential and commercial electric and gas customers. These EE&C programs are designed to encourage customers to install high energy efficiency appliances (i.e. Energy Star Rated) over less expensive, standard efficiency appliances, by providing incentives to offset the incremental equipment cost. UGI Utilities has 733,000 electric and gas customers that qualify for the EE&C program. The residential customers enrolled in our program had energy cost savings of $2.2 million in Fiscal 2021.
Since inception,20 UGI Utilities has invested over $47 million in energy conservation programs which has led to lower gas consumption of 747,000 MCF and approximately 58,000 fewer Mwh.
Save Smart Efficiency Rebate Program
Over the past three years, the UGI Save Smart Efficiency Rebate Program is responsible for saving 584,360 MCF of natural gas, resulting in 32,032 metric tons of carbon not entering the atmosphere. In Fiscal 2021, the program has issued over $8.6 million in rebates to customers that have chosen to pursue energy efficiency upgrades.
UGI International also offers a range of financial incentives for individuals and businesses that are interested in energy savings projects, such as condensating boilers, insulation, and more efficient appliances.
Recycling Programs
The UGI Electric Energy Efficiency & Conservation Appliance Recycling Program offers rebates to customers who turn in eligible appliances. The program provides free pick-up and disposal of old, inefficient refrigerators, freezers, dehumidifiers and window air conditioning units. All units are disposed of in an environmentally responsible manner.
UGI Utilities received the 2021 RAD Champion award. The RAD Champion award recognizes the top 10 partners with the highest number of units processed with foam recovery.
Since becoming a RAD Partner in 2013, UGI Utilities has responsibly disposed
refrigerators
air conditioning units
freezers
dehumidifiers
Modernizing the Fleet
UGI International’s central region outsources its fleet, but our team worked closely with our fleet management company to ensure modernization of their fleet. This cooperative relationship aligns with our commitment to reduce emissions. All trucks are now equipped with modern EURO 6 engines and AdBlue is used as an additive to reduce pollutant emissions. AdBlue reacts with nitrogen oxide gas (NOx gas) created by engines and breaks it down into harmless nitrogen and water vapor.
In addition, our Energy Services and Utilities teams have been working with customers to convert truck fleets to cleaner burning, affordable, and abundant CNG. UGI Utilities fuels the Lehigh and Northampton Transportation Authority (LANta) natural gas bus fleet, which had 57 CNG buses in 2021. AmeriGas now delivers to over 500 customers nationwide who use propane for their delivery trucks and school buses.
Fleet Conversions
The demand for propane and CNG vehicle fleets continues to increase as an attractive alternative to traditional diesel vehicles. Propane fueled vehicles emit less carbon dioxide than diesel vehicles. Similar to propane, CNG burns more cleanly than diesel and can reduce emissions by as much as 90%. Reducing our fleet’s carbon footprint is an important aspect of our commitment to reduce GHG emissions.
LPG & CNG Vehicle Summary
| Business Unit | 2019 | 202021 | 2021 |
|---|---|---|---|
| AmeriGas | 312 | 278 | 320 |
| UGI Utilities | 96 | 114 | 129 |
Fuel Sources
AmeriGas purchased 12.5 million gallons of diesel fuel and drove 113 million miles in Fiscal 2021. The combustion of fuel in our fleet makes up approximately 80% of our Scope 1 emissions at AmeriGas. Along with route optimization technology and the increased use of LPG-powered engines, increasing the use of bio-diesel is another way for the AmeriGas team to reduce Scope 1 emissions over time. In 2021 alone, AmeriGas’ use of bio-diesel increased nearly 40% when compared to Fiscal 2020. While total bio-diesel purchases remain low as an overall percentage, the team continues to make solid progress to ensure it operates efficiently and sustainably.
Expanding Our Reach – UGI’s Businesses Increase Membership in Organizations Focused On Sustainable Operations
- Our Nation’s Energy Future (“ONE Future”): The ONE Future coalition was formed in 2014 by natural gas production, transmission and distribution companies with a focus to collectively achieve
reductions in the average rate of methane emissions across member facilities equivalent to a level of 1% (or less) of total natural gas production. - Natural Gas Supply Collaborative (“NGSC”): NGSC is a voluntary organization of natural gas purchasers, including utilities and power generators, whose members are committed to promoting safe and responsible practices for natural gas supply. Collectively, NGSC members deliver enough natural gas to meet the needs of more than 60 million households.
- The American Biogas Council (“ABC”): Biogas systems protect the air, water, and soil by recycling organic material, like food waste and manure, into renewable energy and soil products. Members receive regular updates on legislative activities, funding opportunities, and opportunities to engage stakeholders that have interests in biogas. The ABC represents over 250 companies and 2,800 individuals throughout the biogas supply chain that are dedicated to maximizing the production and use of biogas from organic waste.
- The Renewable Fuels Association (“RFA”): UGI has recently joined the RFA as an Associate Member. RFA is a leading trade association working to drive expanded demand for American-made renewable fuels and bio-products worldwide. Their vision is to help the world breathe easier with the power of renewable fuels.
UGI is pleased to join the Renewable Fuels Association and its members to become actively engaged in the advancement of ethanol as part of our energy transition pathway. We believe that a range of environmentally responsible energy solutions is required to meet the demands of our global economy.
- Goal uses 2020 as the baseline year.
- Scope 1 emissions do not include emissions from the Mountaineer acquisition, which closed in 2021 and was not considered as part of Scope 1 reduction goal. Emissions from Mountaineer can be found in the Appendix.
- Fiscal 2019 Scope 2 emissions comprised of UGI Utilities, AmeriGas, and the North and West regions of UGI International.
- Fiscal 2020 Scope 2 emissions comprised of UGI Utilities, Midstream & Marketing, AmeriGas, and all regions (West, North, East and Central) of
UGI International. - Historically, we reported Scope 3 figures for UGI International related to outsourced fleet activities. That business outsources approximately 80% of its fleet operations and we considered this as indirect Scope 3 emissions. After further consideration, UGI decided to include those figures in our Scope 1 calculation. Although not technically direct operations, the outsourced fleet operates on our behalf and we think it is appropriate to classify these as Scope 1 emissions.
- “Dense population” refers to urbanized areas with populations greater than 50,000. Facilities or locations are considered to be in an urbanized area if they are in a census tract or block within 49 kilometers (30 miles) of an urbanized area. This aligns with the U.S. Census Bureau’s definition contained in Federal Register, Vol. 76. No. 164.
- 2019 air quality figures are attributable to the addition of compressor stations, expansion of gathering systems, and includes five months of UGI Appalachia system.
- 2020 figures include the full year of UGI Appalachia system.
- 2021 reduction in air quality figures are largely attributable to the sale of UGI's ownership stake in Conemaugh coal fire generation facility.
- US Environmental Protection Agency. NPDES Permit Basics. Sept 28, 2021. Accessible online at https://www.epa.gov/npdes/npdes-permit-basics.
- All water intake is regulated by the SRBC.
- All water intake is regulated by the SRBC.
- All water discharges are covered by PADEP NPDES Permit PA0008664.
- High/Extremely High Water Risk as defined by the World Resources Institutes Aqueduct online mapper tool, accessible online via
https://www.wri.org/aqueduct - High/Extremely High Water Risk as defined by the World Resources Institutes Aqueduct online mapper tool, accessible online via
https://www.wri.org/aqueduct - Lutron. Whole Building Systems. 2022. Accessible online via https://commercial.lutron.com/us/en/whole-building-systems/vive.
- The Carpet and Rug Institute. Green Label Plus. Accessed April 18, 2022 online at https://interfaceinc.scene7.com/is/content/InterfaceInc/Interface/Americas/WebsiteContentAssets/Documents/Certificates/GLP0820-2020/wc_am-glp0820.pdf.
- ShawContract. Environmental Product Declaration. Accessed April 18, 2022 online at https://qmsview.shawinc.com/viewer/doc/4609.
- Warsaw FOREST is a green office campus between Wola, Śródmieście and Żoliborz
- 2012 for electric customers and 2017 for gas customers
- The decline in LG units from Fiscal 2019 to Fiscal 2020 is due to efforts aimed at sizing the fleet properly based on certain utilization standards. As a result, many older vehicles were disposed.