Progress on key
At UGI, corporate sustainability is critical to our overall business success and we have introduced a number of commitments in our past reports to demonstrate our focus on progress towards key ESG metrics.
Scope 1 Emissions Reduction Commitment
55% Reduction by 20251
Target Date: 2025
Methane Emissions Reduction Commitment
92% Reduction by 2030, 95% Reduction by 2040
Target Date: 2040
Pipeline Replacement and Betterment Commitments
Replace all cast iron by 2027
Target Date: 2027
Replace all bare steel by 2041
Target Date: 2041
Invest $1-1.25 billion dollars by 2025
Target Date: 2025
Supplier Diversity Goal
Improve spend with diverse Tier I and Tier II suppliers by 25% by 2025
Target Date: 2025
Better align disclosure with stakeholder expectations
- Issued first ESG report
- Conducted first materiality assessment
- Issued corporate-wide policies
- Introduced SASB framework
- Established goals around Scope 1 emissions, safety, and supplier diversity
- Completed CDP disclosure
- Conducted second materiality assessment
- Received AA ESG rating from MSCI
- Alignment with SDGs
- Scope 3 emissions reported
- Plan to issue a TCFD-aligned report
Why Report Scope 3?
As a distributor of energy products and services, UGI’s activities represent only a small portion of emissions from the natural gas and LPG value chains. In future years, UGI will report on extended scope emissions (upstream and downstream activity) as we convert customers to efficient, renewable, and other low carbon energy solutions. We expect that emissions across the total value chain will decrease, better aligning UGI with the Paris Climate Accord. UGI supports the Paris Climate Accord and continues working towards carbon neutrality in our operations by 2050.
When we started our ESG journey back in 2018, we wanted to build a foundation based on transparency and dedicated to improvement. We have made tremendous strides over the last 4 years, and our intentions, which range from utilization of new reporting frameworks to establishing safety, carbon emissions, and supplier diversity goals, remain transparent. Our leadership team has adapted quickly to the evolving expectations of our stakeholders, and we remain committed to meeting these expectations so you can adequately assess our company. I’m proud of the progress we have made on our ESG journey and know we will continue to build upon our momentum for years to come.
- Scope 1 emissions reduction target does not include emissions from the Mountaineer acquisition, which closed in September 2021. The emissions from the Pine Run acquisition, announced in February 2021, will be included in the baseline 2020 number as this investment will contribute to our five year goal. The 2020 base number also takes a 5-year emissions average from the Hunlock generation facility to account for year-over-year differences in run time.
- All domestic UGI companies use the Occupational Safety and Health Administration (“OSHA”) definition for TRIs. TRIs represents the number of work-related injuries or illnesses requiring medical treatment beyond first aid, per 200,000 hours.
- UGI International reports rates in accordance with the Industrial Management System guidelines. A TRI represents a work-related recordable injury to an employee or hired staff that requires medical treatment beyond first aid, as well as one that causes death, or days away from work
- UGI Utilities and UGI Energy Services use the American Gas Association definition for AVI, which defines an AVI as a reportable motor vehicle incident in which the driver failed to do everything that reasonably could have been done to avoid the incident.
- UGI International reports rates in accordance with the Industrial Management System guidelines. An AVI represents an incident that caused or contributed to, in whole or in part, by actions of the company driver or contractor driver, or an incident that could have been avoided by the company driver, using reasonable defensive driving measures, which resulted in injury or damage, either to the vehicle, or to the object struck, regardless of value.
- AmeriGas defines an AVI as any incident that could have been preventable by the company driver.