Introduction

Letter from the CEO

UGI has a rich history that spans almost 140 years. During this time, the composition of our business has changed, but our dedication to sustainable operations has never wavered. We are guided by our core vision and values and believe that we play an important role in enriching the lives of our customers and communities by providing safe, reliable, efficient, and affordable energy. Our nearly 13,000 employees provide the energy to push UGI forward as we strive to deliver on our commitment to be the best in class energy provider and services company in the communities we serve.

The theme for this year’s report is “Today’s Energy, Tomorrow’s World.” The demand for sustainable energy solutions is driving consumer preferences, and UGI continues to implement innovative strategies to remain a good steward of both capital and the environment. We continue to invest in infrastructure that lowers methane and greenhouse gas emissions, eliminate carbon from our operations and offer energy-efficient solutions to our customers. In this report, we will demonstrate that UGI is making progress on key sustainability initiatives and introduce new commitments so our stakeholders can chart our progress and accomplishments along the way.

In addition to meeting the energy needs of our customers and stakeholders, we remain dedicated to safe operations. In 2019, UGI invested $55 million in safety programs across our organizations to protect our customers and employees. At UGI Utilities, the following quote is in every conference room as a reminder to stress safety and reliability in all that we do:

“I take the time to perform my work safely, every day. My family, my co-workers, and my customers are depending on me. I stand vigilant and when called upon…I’ll be there.”

This mindset is shared across all of our business units.

As we focus on building a company for the next 140 years, UGI is focused on supporting the key contributors who make UGI a sustainable company – our employees. We will always seek to provide a work environment that values the diversity — in background, experiences and skill sets — of our employees. This will always be a work in progress, but one that we take seriously. Our teams continue to deliver innovation, reliability and customer service excellence to support the UGI of tomorrow. As a leadership team, we consider it our duty to provide a safe and supportive work environment, and we do so by investing in diversity and inclusion, training and development and continuously evaluating benefit packages to remain competitive to attract talent.

In 2019, UGI and its employees donated more than $2 million and 60,000 hours of volunteer time to support causes in our communities. We are proud of these contributions and consider the commitment of these resources to be a crucial element of UGI’s culture. We strive to enhance our collaboration within the communities we serve every year as we explore new areas that align with our mission and heighten our positive impact in our communities. We continue to evaluate our ESG reporting framework to ensure that we provide relevant — and useful — data to our stakeholders. We will continue to enhance our ESG program and welcome dialogue around these topics.

 

On behalf of everyone at UGI Corporation, thank you for your interest in our company.

John L. Walsh
President and CEO

UGI Stands Against Racial Inequality

A message from our President and CEO John Walsh

As an organization, we stand in solidarity with the black community and in the fight to end systematic racism. Change does not happen overnight, but with committed leadership, listening and learning from those who have been disadvantaged, and a sincere belief to do what’s right, we can succeed and make a difference for future generations.

The senseless deaths of Breonna Taylor, Ahmaud Arbery, George Floyd, and Rayshard Brooks have highlighted the extreme injustices in our society. All of us have felt a range of emotions as we have dealt with this news. We recognize the immense responsibility we have to do more.

As I process my own thoughts and feelings in these challenging times, I have found myself drawn to several of our Company’s core values, particularly, our values focused on Respect and Integrity. While all six of our values are intertwined, these particular values speak directly to relationships and how we respect and care for each other, our customers and for the residents in the multitude of communities we serve in the U.S. and in Europe. It is the bond of unity that supports us and holds us together.

The diversity in the communities where we live and work provides us with an important source of strength and is something that we value about the communities we serve. Respecting our differences, embracing our diversity and engaging others with integrity and inclusion are critically important behaviors, particularly as we work together to address the economic and social divisions in our country.

UGI continues to seek out opportunities to have deeper, more impactful engagements with the communities we serve. As described in this report, we have a strong tradition of working to deliver support in areas such as childhood literacy, health and wellness, and safety, among others. As recent events have unfolded, it has become clear that UGI also has an opportunity to align itself with organizations that strive to eliminate racial injustice. Additionally, we understand that we have work to do at UGI. We will intensify our focus on the representation and inclusion of minorities across our businesses, with a goal that our workforce accurately represents the communities in which we operate. As a company and as leaders, we will do better in these critical areas.

At UGI, we are committed to rededicating ourselves to being kind and to expressing our care and concern in our actions toward each other, and to those around us. We strive to demonstrate our values of Respect and Integrity in our daily actions and activities. Real change begins when people join together and care for one another. UGI remains committed to doing our part, and working towards being a positive presence for all of our stakeholders as we deal with the major challenges facing our society. I ask all UGI employees to join me in living all of our core values each and every day.

UGI’s actions are guided by our core values, and we believe that actions always speak louder than words. In addition to our current community support in critical areas such as early childhood literacy, health and wellness for families, food insecurity and emergency services, UGI will commit an additional $500,000 in 2020 to partner organizations in our communities to combat racial inequality and systemic racism. Let us come together, be part of the solution and drive change.

COVID-19 and UGI’s Response

Employees

  • Implemented work-from-home procedures across the organization for over 4,000 employees
  • Revised critical work practices to protect the safety of over 7,400 field-based employees
  • Expanded existing paid leave policies for domestic employees

Customers

  • Provided uninterrupted essential service to our 3 million customers
  • Maintained a high level of safety and customer service performance
  • Temporarily suspended disconnections due to
    non-payment
  • Available 24/7 to respond to emergency calls

Communities

  • Provided critical services to hundreds of healthcare centers and testing facilities
  • Donated over $600,000 of financial support to organizations in many of the communities in which we operate to assist residents in need
  • Partnered with the American Red Cross blood drive

Our Company, our industry and the world have been challenged over the past few months by the onset of the COVID-19 pandemic. This report covers our activities during our 2019 operating period, but the world has fundamentally changed and UGI has adapted quickly. We want you to know that the health, well-being and safety of our employees, customers and communities is our top priority. We began to focus on COVID-19 as a potentially significant issue in February, as we followed global developments and began to see the impact in several European markets where we operate. Our senior team initiated regular COVID-19 planning sessions to address the critical safety, operational and business risks associated with the pandemic across all geographies.

Our primary focus areas from the outset have been the safety of our teams and our 3 million customers and continuity of the essential services we provide to those 3 million customers. By the conclusion of the second week in March 2020, on a global basis, we had launched our work-from-home plan for over 4,000 office-based team members and revised critical work practices to drive safe operations for over 7,400 field based employees and our customers.

As a provider of essential services, we recognize the urgent need for a broad range of key services to those impacted by the pandemic. We see particular needs in the areas of food security, educational continuity and temporary housing. For that reason, we announced a series of donations in the past months to food banks, educational programs and emergency services agencies who are seeing a surge in demand as our neighbors struggle with the economic impact of rising unemployment, school closures and a strain on available social services. Together, the company, our employees and our directors have contributed more than $600,000 to local food banks and other support agencies in our local communities during COVID-19.

While the challenges have been significant, our teams have done an outstanding job operating in this “new normal” work environment. Our safety and customer service performance have been outstanding. UGI will continue to adapt to ensure we do our part to keep our stakeholders safe and limit the spread of the virus.