Engagement report: AltaGas

Objective: Obtain a deeper understanding of where the company sees itself in the context of the energy transition; press forward on objectives set out by Climate Engagement Canada (CEC).

We are heartened to see that Calgary-based AltaGas has ramped up its ambitions around the energy transition. We met with the company in February for the second time as part of our investor collaboration through the CEC. The collaboration builds on our previous solo engagements with the company, and we are happy to have more voices at the table.

AltaGas’s midstream business includes global export facilities and processing and logistics infrastructure, as well as hydrocarbon storage and handling services. Its utilities business provides natural gas to customers in the U.S. This dual-nature, and the different emissions profiles of each business, is one of the challenges AltaGas says they are facing in solidifying a company-wide emissions reduction target (a key ask of the CEC engagement). They have set an absolute target for their utilities business whereas their midstream business has an intensity target, as they work to understand their corporate-wide emissions reduction opportunities.

We discussed the importance of seeing disclosure around capital spending at the strategy level versus spending on “business as usual” activities. The company was receptive to the idea and agreed to look into it further. We also discussed the challenges of customer affordability in a high inflation environment, and how the company is striving to balance customer need with transition goals that require greater investment. Yet another topic was methane. The company agreed to consider our suggestion to pursue membership in the Oil & Gas Methane Partnership 2.0, a measurement-based international reporting framework established by the United Nations Environment Programme.

Next steps: We will continue to work with AltaGas as part of our CEC investor collaboration to advance the goals of the CEC.