The Foundation of Our Future
Safety is not only our top priority, it is one of our core values and a way of life for us. At UGI, we are committed to providing a safe and healthy workplace for our employees, and to making safety a priority in all of our interactions with colleagues, customers and the communities we serve.
We maintain a strong safety culture and emphasize the importance of everyone’s role in identifying, mitigating, and communicating safety risks across the Company. UGI believes the achievement of superior safety performance is an important short-term and long-term strategic initiative. As of Fiscal 2018, safety is included as a component of the annual bonus calculation for executives and non-executives, reinforcing our commitment to safety across our organization.
Our Health, Safety, Security, and the Environment (“HSSE”) Policy provides the framework for integrating safety performance into our core business activities. UGI’s safety efforts begin with UGI’s Board of Directors, where the SERC Committee is responsible for the governance and oversight of environmental, health and safety matters, including compliance with applicable laws and regulations. The SERC Committee works to ensure that the Company maintains a culture focused on protecting the health and safety of our employees, contractors, customers, the public, and the environment. In addition, each of our businesses has a safety team that is responsible for overseeing the safety of our operations, reinforcing our values, and enhancing our safety culture.
UGI is committed to continuously improving our safety performance. As part of that commitment, we have robust training programs that ensure that field employees can safely execute their job responsibilities. Our safety programs are required to comply with both OSHA and industry-specific regulations.
Beginning in Fiscal 2021, UGI businesses began tracking Near Misses, which are defined as unplanned events that did not result in injury, illness, or damage, but had the potential to do so. UGI will report Near Misses in future ESG reports.
|Lost Time Injury Rate (LTIR) per 200,000 work hours — employees||1.59||1.52||1.31||1.28|
|Total recordable incident rate (TRIR) per 200,000 work hours — employees||4.12||3.49||3.52||3.08|
|Number of Fatalities — employees||1||0||0||0|
|Employee fatality rate |
per 200,000 work hours
|Number of fatalities — contractors||0||0||0||0|
Employees of UGI’s businesses drove approximately 153 million miles in Fiscal 2020, which is less than the 167 million miles driven in Fiscal 2019. Part of the decrease is due to investments in efficiency through route optimization. While the total numbers of miles driven remains high, UGI is committed to lowering its year-over-year AVIs through a combination of technology enhancements, employee awareness, and training.
|Accountable Vehicle Incident Rate||5.20||4.26||4.16||2.96|
Our Fiscal 2020 AVI rate decreased sharply when compared to Fiscal 2019 across our Natural Gas and Global LPG businesses, which drove a combined 153 million miles.
As part of our effort to continually improve fleet safety, we installed Fleetmatics on 100% of UGI Utilities’ fleet and 32% of UGI Energy Services’ fleet. Fleetmatics tracks vehicle location, speed, speed limit, acceleration, braking, cornering, and idle time.
AmeriGas requires DriveCams in all delivery vehicles, such as bobtails, ACE beverage trucks, cylinder trucks, and over the road tractors. AmeriGas implemented Airsweb as its incident tracking system to provide better visibility into trends, which allows its safety teams to take action and build safer practices and working environments. This data drives stronger engagement of the front lines through regional safety directors and field safety managers, who partner with the local district and operations managers to proactively respond to potential areas of concern. Safety training materials and topics presented at monthly meetings are driven by field data and designed to be more interactive and engaging for our employees, incorporating positive stories that promote the safe actions our team members take on a daily basis.
UGI’s dedication to safety also extends to our contractors. At UGI Utilities, our standard contract language includes expectations that contractors maintain current operator qualifications (OQ) needed for job requirements. UGI also provides training to satisfy these qualifications. Contractors are required to comply with all applicable laws, regulations and industry standards.
The UGI Utilities Contractor Safety Improvement team is in the process of implementing a Contractor Management System (“CMS”). The industry leading platform, ISNetworld, the same system utilized at UGI Energy Services, will be implemented to manage and track vendor performance in health, safety, environment, quality, and contract performance. The platform will facilitate improvements in leveraging this information across the Natural Gas line of business.
Public safety is always a top priority. Education and engagement with local stakeholders help us prevent safety incidents and reduce third-party damage to pipelines. Each year, UGI Utilities issues a public awareness mailer in our service territories detailing the importance of calling “811” at least three days before the start of any digging project. In addition, the UGI Utilities Pipeline and Public Safety team provides safety training to excavators, plumbers, emergency responders, and other utility partners to help them stay safe when working near our systems. We also offer training programs such as safe digging training for excavators, cross bore awareness training for plumbers, and natural gas & electric training for emergency responders.
UGI Utilities was recognized by the American Gas Association for leading practices related to emergency response. During Fiscal 2020, UGI Utilities’ emergency response rate was 99.9% within 60 minutes, putting us in the top quartile compared to our peers. In addition, we had a record year and responded to 98.9% of emergencies within 45 minutes.
During 2020, the COVID-19 pandemic forced us to change the way we do business, but our commitment to meeting the needs of our customers did not change. As an essential service provider, our teams focused on providing the same level of safe, reliable, and dependable service to families and businesses who depend on us. UGI proactively communicated with our customers to share COVID-19 updates about our response, protocols, and resources through a variety of mediums, including our website, newsletters, emails, and social media. In addition, we promoted self-service features so that customers could easily conduct business with us from the security of their homes or businesses.
UGI evaluates the customer experience through various channels, including interactions with customer service representatives through the call center, direct mail, telephone, email, and online surveys. UGI believes customer feedback provides great insight into our operations and can focus our attention on areas that need improvement. We measure customer experience by the following metrics:
- reliability of customer deliveries;
- responsiveness of phone calls;
- customer retention and loyalty;
- availability; and
- variety and ease for our customers to conduct business.
UGI Utilities gauges customer satisfaction through the JD Power survey. JD Power measures customer sentiment on six drivers of utility satisfaction and benchmarks that performance against other utilities of the same size and geographic location. The data is reviewed on a quarterly basis and actionable items are created to address any concerns in the customer experience.
UGI Utilities achieved “Most Trusted Brand” status for the third consecutive year in the 2020 Cogent Syndicated Utility Trusted Brand & Customer Engagement™: Residential report from Escalent, a leading human behavior and analytics firm. UGI received the highest score among natural gas companies in the East Region Utilities Brand Trust Performance.
Our teams are dedicated to providing excellent customer service. We review customer feedback daily and proactively contact customers regularly to ensure customers are receiving their expected level of service. We monitor our performance through a Net Promoter Score (“NPS”). NPS is a focus at all levels of our organization, from the front lines to the CEO.
The COVID-19 pandemic has had a significant impact on the economy and the families and businesses we serve. UGI Utilities continued to assist customers experiencing difficulty in paying bills with its flexible payment programs, Customer Assistance Program (CAP), as well as providing donations to qualifying customers from its Operation Share Fuel Fund. In addition, on March 13, 2020, UGI suspended the disconnection of natural gas or electric service due to non-payment of bills in line with guidance and direction received from Pennsylvania government authorities. Beginning March 25, 2020, and continuing in force as of the date of this publication, UGI Utilities continues to waive Late Payment Charges for accounts identified as having a household income at or below 300% of the Federal Poverty Level.
We understand that there are times when our customers need additional assistance. UGI is committed to helping customers who make a sincere effort to pay their bills, which is why we offer a variety of energy assistance programs, referrals to local agencies, participation in fuel funds, or payment arrangements. These comprehensive assistance programs ensure that we support our customers when they need us the most.
Customer Assistance Program (CAP)
Offers special reduced payment plans and debt forgiveness based on a customer’s income and usage.
Low-Income Usage Reduction Program (LIURP)
Is a weatherization program that provides home energy-saving measures to limit heat loss and help lower utility bills. The program is available to low-income customers with higher-than-average energy usage.
Provides financial assistance to families unable to pay their natural gas or electric bill due to unemployment, disability, significant medical expenses or other hardships.
Low-Income Home Energy Assistance Program (LIHEAP)
Is a federal program that offers financial assistance to qualified income-eligible customers.
Customer Assistance and Referral Evaluation Services (CARES)
Provides referrals to community-based agencies and programs for those in need during a temporary crisis.
Additional information can be accessed at: ugi.com/assistance-programs.
Natural gas plays a significant role and has a positive economic benefit to the communities in which we operate. Over 90% of our natural gas supply is sourced in Pennsylvania and within 100 miles of our customer base, which was not the case a decade ago. This advantage has benefited our customers who see lower energy costs. Our average customer today versus ten years ago spends approximately $1,000 less per year.
Driving operational efficiencies across our LPG
businesses is an important component of our Global LPG strategy. At AmeriGas, we have identified over $140 million of permanent annual savings that will be realized by the end of Fiscal 2022 and delivered through accelerated investments in:
- customer digital experience;
- customer relationship management;
- operations process redesign and specialization;
- distribution and routing automation;
- sales effectiveness;
- procurement and general and administrative; and
- supply and logistics.
Similar initiatives are underway at UGI International to identify synergies across all 17 European countries in which we operate with the goal of centralizing certain enabling functions and directing our operating teams
to focus their attention on customer service and safe operations through the establishment of two centers of excellence. One center will be focused on commercial excellence to identify and execute projects to continuously improve our customer experience and the other center will be focused on operational excellence across our distribution network and filling plants. UGI International has identified over €30 million of permanent benefits
by Fiscal 2022.
UGI understands the importance of protecting our stakeholders’ personal information and privacy, and we are committed to safeguarding our customers, employees, and business partners from data risk. Effective security is a team effort involving participation and support of every UGI user who interacts with data and information systems. Safeguards used to protect customer data include:
- maintaining comprehensive information security policies and procedures;
- performing risk assessments to identify and address new and changing risks to protect systems and sensitive data; and
- training employees in the proper handling of personal data.
At UGI, we embrace the diversity and uniqueness of individuals and cultures and the varied perspectives they provide. We recognize that our success depends upon the commitment and capabilities of a diverse and inclusive workforce to create greater value for all. We want all employees to be respected and valued, while offering everyone the opportunity to enhance their careers. By fostering an environment that values diversity, we can leverage talent, unique perspectives, and varying employee experiences to ensure continued long-term success. UGI has several policies that reinforce our commitment to an inclusive workplace.
Our Code of Business Conduct and Ethics (the “Code of Conduct”) includes expectations related to our work environment, including guidelines to prevent workplace harassment. We recently launched enhanced Code of Conduct training, as well as Diversity & Inclusion training for all employees. UGI continues to increase its focus on representation of women and people of color across our businesses with a goal that our workforce represents the communities in which we operate.
UGI is an equal employment opportunity employer. We comply with all applicable employment-related laws and regulations and do not tolerate discrimination against anyone based on characteristics protected by law, such as; age, race, religion, gender, color, national origin, veteran status, disability, and sexual orientation.
We are proud to report that in 2020, UGI proactively increased domestic hourly employees pay rate to a minimum of $15/hour.
In addition to the Code, our Anti-Discrimination/Anti-Harassment Policy supports UGI values by enabling employees to work in a culture that emphasizes and promotes the spirit of mutual respect within the UGI community; encouraging integrity by being respectful in our working relationships and the reporting of improper conduct; and ensuring that employees are treated fairly with respect to all aspects of their employment. In support of these efforts, UGI provides Anti-Discrimination/Anti-Harassment training.
Our Anti-Discrimination/Anti-Harassment Policy supports UGI values by:
- enabling employees to work in a culture that emphasizes and promotes the spirit of mutual respect within the UGI community;
- encouraging integrity by being respectful in our working relationships and the reporting of improper conduct; and
- ensuring that employees are treated fairly with respect to all aspects of their employment.
Diversity in the Workforce
In Fiscal 2020, UGI’s leadership team recommitted to creating a culture of belonging, inclusion, diversity, and equity to further promote and maintain a diverse workplace through recruitment, training, education, and leadership development.
UGI has launched several initiatives to foster diversity and inclusion and to support diverse segments of our workforce.
In Fiscal 2020, UGI introduced the BIDE Initiative, which is designed to enhance and expand UGI’s efforts to be “part of the solution” in creating a workplace culture where differences in cultural perspectives, life experiences, and differences in viewpoints are nurtured. We believe UGI’s BIDE Initiative helps align our core values (safety, integrity, respect, sustainability, reliability, and excellence) with leadership’s actions and our employees’ work environment.
UGI continues to support the activities of Employee Resource Groups:
Black Organizational Leadership & Development (“BOLD”) is focused on inclusion, equity, education, and empowerment for black employees and their allies, and will assist leadership with communication, talent recruitment and retention, and development opportunities for black employees. BOLD will focus on professional development by creating mentoring opportunities, increasing exposure through networking and career development events, broadening our outreach to black talent, and sponsoring activities such as lectures featuring distinguished speakers. The group aims to support and promote UGI’s BIDE Initiative by providing cultural insight from an employee, customer and community partner perspective.
Women’s Impact Network (“WIN”) is an organization that aims to foster an environment for women and their allies to be recruited, retained, developed, and advanced as leaders within the UGI Family of Companies. Membership in WIN offers exposure to various professional development opportunities, including speaker series events, group engagement activities, virtual group discussions, and partnerships with local organizations. WIN was first established at AmeriGas and introduced to UGI employees in 2020.
UGI believes that veterans play a vital role in building a diverse and collaborative workplace. The Veteran Employee Team (“VET”) focuses on recruiting and retaining veterans, as well as creating growth for and goodwill towards military veterans. VET members include Active Duty, Reserve, and National Guard veterans of the Army, Navy, Marines, Coast Guard, and Air Force, their families, and partners committed to supporting military veteran employees. Similar to WIN, VET was first introduced at AmeriGas and was expanded in 2020 to UGI. UGI’s focus in 2021 is to implement existing, and potentially new, VET initiatives that align with UGI’s culture and priorities.
UGI strives for diverse representation at all levels of its business.
We believe that Board diversity is critical to effective governance. In assessing Board composition, UGI ensures that our Board has the right mix of background, experience, and diversity of perspectives to support our business. In assessing director candidates, UGI considers a number of qualifications, including independence, knowledge, judgment, character, leadership skills, education, experience, financial literacy, standing in the community and the ability to foster a diversity of backgrounds and views. We look to complement the Board’s existing strengths, recognizing that diversity is a critical element to enhancing board effectiveness.
Similarly, we believe diversity of management is crucial to position our business for continued success. UGI is proactively expanding its reach to ensure active consideration of diverse candidates for all leadership positions
and continues to be committed to ensuring that we are considering all qualified applicants in our hiring process. Women currently represent 35% of UGI’s corporate officers.
As part of our continued commitment to enhancing opportunities for diversity in our workforce, all executives
have a D&I component in their annual bonus plan effective Fiscal 2021. The executive team will be evaluated on the effectiveness of the Company’s development of a multi-dimensional strategy to deepen and improve the organization’s commitment to D&I, supporting the Company’s BIDE initiative, and establishing a roadmap to achieve excellence in D&I and brand UGI as an employer of choice for diverse candidates.
As of September 30, 2020, UGI and its subsidiaries had more than 11,200 employees worldwide. Our Human Resources team is responsible for enabling the attraction and retention of high quality talent and supporting management in fostering an environment where employees feel supported and encouraged in their professional and personal development.
Maintaining a robust pipeline of talent is crucial to UGI’s ongoing success and is a key aspect of succession planning efforts across the organization. The competition for attracting and retaining talent has increased in recent years. UGI understands this challenge and the importance of providing appropriate training that provides growth,
developmental opportunities and multiple career paths. In addition to technical training, UGI provides tuition reimbursement, online learning through LinkedIn learning, and leadership development through UGI University and UGI Academy to promote professional development for our employees.
UGI University is a leadership development program for emerging leaders across all domestic and international business units. In addition to completing personal assessments and leadership and team effectiveness training, participants engage directly with executive leaders of each business, gaining a broader understanding of UGI and the stakeholders it serves.
UGI Academy is a leadership development program that provides UGI International’s emerging leaders an opportunity to learn more about UGI Corporation, including our culture, values and strategic direction. Participants engage in self-assessments, meet colleagues from across the business, engage with the UGI executive management team and sharpen skills that will equip them for future success.
Human Library Organization
UGI recently established a partnership with the Human Library Organization, a global not-for-profit learning platform that hosts personal conversations designed to challenge stigma and stereotypes and create a safe space for dialogue where topics are discussed openly between “human books” and their readers. The Human Library is a thought leader when it comes to Diversity & Inclusion in the workplace, partnering with companies that are committed to incorporating social understanding and cultural awareness as a part of their business model in relation to their workforce, partnerships, clients and customers. UGI has also committed to a sponsorship role with the Human Library for the creation of a digital learning platform that will expand access to the Human Library’s offering across the globe.
UGI has a long history of strengthening the communities we serve both by providing financial assistance and supporting employee volunteer efforts. Our employees actively participate in their communities by serving on non-profit boards, acting as mentors and coaches and volunteering as firefighters, among other activities. In addition, UGI offers paid volunteer leave for full-time eligible employees.
In 2020, UGI employees continued this tradition of community support by donating over 37,000 hours to community-based organizations. More than 550 employees volunteered these hours and participated in a variety of activities such as helping students with school-related initiatives, delivering meals to the home-bound, cleaning and repairing community parks and facilities, coaching youth sport programs, and serving as volunteer firefighters and emergency responders. In addition to donating their time and expertise, UGI employees continued to generously donate to the annual United Way campaign that provides critical financial assistance to human service agencies across our service territory.
UGI was recognized by the Philadelphia Business Journal as a winner of the 2020 Faces of Philanthropy Awards Program for its sponsorship with the Museum of the American Revolution. UGI has sponsored the Museum of the American Revolution’s citizenship program since its inception three years ago. The program aligns with our BIDE Initiative by providing educational support for individuals applying and studying for their citizenship exam with the ultimate goal of enabling their full participation in our democracy.
Helping from Home
UGI began its Helping from Home initiative in April 2020 as employees found innovative ways to make a difference in their communities during the COVID-19 pandemic. These efforts include donations to community response funds and food banks, giving blood, supporting Customer Assistance Programs, providing educational resources
for children, recognizing military service, making masks with home sewing machines, creating face shields from personal 3D printers, and donating to medical professionals.
Rooted in Education
UGI has a long history of supporting education in its communities. We believe that robust and successful education programs empower our communities and ensure their ongoing success. UGI employees have consistently volunteered for educational programs designed to enhance academic achievement, and UGI provides more than $1 million in financial support each year to support innovative school programs.
UGI’s educational support encompasses a number of areas of focus that include:
- Early Childhood Literacy – UGI has partnered with Reading is Fundamental (“RIF”) for 30 years. The program provides more than 50,000 books to more than 18,000 first-grade students each year. UGI has distributed more than 1 million books to first graders throughout our service area, which spans the Commonwealth of Pennsylvania and parts of Maryland.
- STEM (Science, Technology, Engineering, Mathematics) – Recognizing the continuing need for skilled, technical workers across the economy, UGI supports initiatives such as S.P.A.R.K.S. (Science Projects Are Really Kids’ Stuff), Pennsylvania College of Technology’s SMART (Science and Math Applications in Real-World Technologies) Girls, and Wilkes University’s W.E.B.S. (Women Empowered by Science) summer camp, and many other programs designed to spur student interest in technical careers.
- Career Awareness and Exploration – Studies indicate that students with a strong career focus are more academically engaged and less likely to drop out of school. UGI employees participate in programs focused on specific careers, mentoring, and other activities designed to help students identify educational and work options, such as Berks County’s Students Interacting with Business.
UGI has partnered with its local United Way for nearly 100 years, beginning in 1922 when the United Way of Greater Philadelphia ran its first workplace campaign in our region. The longstanding partnership between UGI and the United Way stands as an enduring tribute to both organizations. Each year, UGI employees coordinate a campaign designed to raise funding for the United Way and its mission of addressing community needs. Since 1995, annual employee giving has increased 500% and the average employee participation rate is approximately 90%.
In 2020, UGI employees set a record for total dollars pledged to the local United Way, with contributions in excess of $1.2 million.
UGI’s commitment to the United Way and its mission does not end with the conclusion of the annual campaign. Throughout the year, UGI employees dedicate their time and talents to participate in United Way Days of Caring events throughout the Company’s service area. Volunteers perform a variety of tasks – from painting and repair work to outdoor clean-up and landscaping – that provide local non-profit organizations with hands-on assistance.
Diversity in our Supply Chain
We have a responsibility to manage our activities and business relationships within our supply chain in a way that positively impacts our communities and supports diverse businesses. The first step in this process is to offer all suppliers a fair opportunity to participate.
Diverse suppliers increase competition in the marketplace, improve savings, enable innovation, and benefit our customers, communities, and employees. UGI is committed to increasing our work with qualified and certified diverse suppliers, which are measured by majority of ownership and control and include one or more of the
- Minority-owned Business Enterprise (MBE)
- Women-owned Business Enterprise (WBE)
- Veteran-owned Business Enterprise (VBE)
- Person with Disabilities-owned Business Enterprise (PDBE or DISABLED)
- Lesbian, Gay, Bisexual, Transgender-owned Business Enterprise (LGBT)
In order to provide the appropriate leadership and focus in this area, UGI created a new position, the Global Head of Supplier Diversity & Responsible Sourcing, within UGI’s
Procurement Organization to improve UGI’s overall spending with diverse suppliers.
In January 2021, UGI appointed Alisa E. Harris to this position.
To further reinforce UGI’s commitment to supplier diversity, UGI established an objective to improve spend with diverse Tier I and Tier II suppliers by 25% by 2025.
Diversity in Our Communities
As part of the BIDE Initiative, UGI established new partnerships with the Urban Affairs Coalition and Big Brothers Big Sisters, and committed $500,000 to partner organizations in our communities to combat racial inequality and systemic racism.
Additionally, UGI recently made a gift of $300,000 to Penn State Harrisburg to support educational equity and diversity in science, technology, engineering, and math (“STEM”) education programs. A $250,000 donation, which was matched by the University, created the UGI Diversity, Equity and Inclusion Scholarship. To enhance UGI’s endowed scholarship, UGI contributed an additional $50,000 to create the Diversity and STEM Advancement Program Fund. This non-endowed fund will provide annual support for five years to enrich both diversity and STEM initiatives at the college.
- Figures presented are consolidated across all businesses: UGI Utilities, Energy Services, AmeriGas, and UGI International
- 2019 and 2020 figures include UGI Appalachia
- 2019 and 2020 figures include UGI Appalachia
- Figures presented are consolidated across all businesses: UGI Utilities, Energy Services, AmeriGas, and UGI International
- 1 Workforce Demographic data is only for UGI’s domestic business units.