Conducting our business with integrity in a socially and environmentally responsible manner earns the trust of our customers, attracts talented new employees, and demonstrates our shared responsibility of restoring our planet. Environmental, social, and governance (ESG) initiatives are fully integrated into the policies and principles that govern our company. In our continued ESG efforts, in November 2022 we committed to set a near-term science-based target within two years.

In addition to our comprehensive Eversource Sustainability Report, we have been a leader within our trade groups, the Edison Electric Institute and the American Gas Association, working to create standardized ESG disclosures across our industry. In 2017, the nation’s electric companies adopted a common set of ESG disclosures, and in 2018, natural gas companies similarly adopted a common set of qualitative and quantitative ESG disclosures as set forth here.

Environment

We are committed to environmental stewardship and to minimizing our impact on the environment. With climate change as one of the most pressing challenges we face, we understand the importance of reducing emissions.

Implementing strategies to reduce greenhouse gas (GHG) emissions

The carbon intensity of the New England electrical grid is among the lowest in the country and is continuously supported by state reduction goals in Connecticut, Massachusetts and New Hampshire. Each state is a member of the Regional Greenhouse Gas Initiative and has its own carbon goal or action plan to reduce GHG emissions, and we work with our regulators to contribute to targeted reductions.

* Recommendation of the New Hampshire Climate Change Policy Taskforce

Our strategies focus on reducing our own emissions, helping our customers reduce their energy use, and supporting our region to facilitate achievement of state GHG reduction targets.

Energy Efficiency

Energy efficiency is one of the most effective ways to save money, create jobs, reduce GHG emissions and enhance energy security. Eversource is consistently recognized as a leader in energy efficiency by national industry organizations. We take great pride in designing and delivering solutions that are emulated by others across the country. Our energy efficiency portfolio reflects and responds to the way our customers live and use energy today and takes a multi-year approach that enables us to help customers plan for the future.

We invested $675 million in 2021 to help customers save 820 million kilowatt-hours and 14.8 million therms annually and reduce their energy costs by over $208 million  per year . Decoupled distribution rates and financial incentives awarded based on the effectiveness of our programs provide us with financial stability.

We are also committed to help the states we serve meet their Renewable Portfolio Standards, which require a certain percentage of the states’ electricity supply to come from renewable sources.

* Massachusetts requirements include Renewable Energy Portfolio Standards and Clean Energy Standards. Beginning in 2021, Massachusetts added an additional requirement to procure 20% of retail suppliers load from existing clean energy sources (CES-E). 2025 value is an estimate.

Clean Energy

Securing a clean energy future is a key priority, and we have adopted bold strategies to accelerate the transition to a low carbon economy for New England. We actively support state and federal emission reduction goals and are developing adaptation and resiliency strategies to address climate change. We are proud to be an industry leader in the development and operation of infrastructure to support clean energy.

As New England’s largest utility and a dedicated environmental steward, Eversource is committed to bringing more clean, affordable and sustainable energy to the Northeast.

Wind

Through our partnership with Ørsted, we are one of the nation’s leading developers of offshore wind. Our partnership is consistent with Eversource’s strategy to be a catalyst for clean energy development in New England.

The partnership includes three offshore wind leases totaling 557 square miles located off the coast of southeast New England with the potential to produce at least 4,000 MW of offshore wind generating capacity.

Our offshore wind projects are subject to receipt of federal, state and local approvals necessary to construct and operate the projects. The federal permitting process is governed by the Bureau of Ocean Energy Management (BOEM), and state approvals are required from New York, Rhode Island and Massachusetts.

The partnership has been awarded three long-term contracts for key offshore wind assets in the Northeast as follows:

In 2022, we announced we would be performing a strategic review of our offshore wind assets that could result in the potential sale of all or part of our 50% partnership interest. Eversource would still be working to further offshore wind by the continued build out of onshore transmission facilities to bring offshore generated energy to regional communities.

Solar

Eversource owns 22 solar facilities, four of which beneficially repurpose landfill or other brownfield sites. Collectively, these facilities produce 70 MW of generation, enough to power more than 11,000 homes.  In March 2021, a Massachusetts climate bill was passed allowing us to own and develop additional MW of solar generation facilities paired with energy storage where feasible.

Under this new legislation,  the Company has proposed its first three additional solar projects, which are being reviewed by the Department of Public Utilities. If approved, the projects will help meet the Commonwealth’s commitment to achieve net zero carbon emissions by 2050. In developing these and future solar projects, we are working with cities and towns to provide solar benefits to customers in environmental justice communities.

Eversource also manages solar incentive programs that help lower energy costs for participating customers while  supporting the region’s climate goals. To date, more than 120,000 Eversource customers have installed solar projects generating over two gigawatts  of clean energy. 

Battery Storage

Electric Vehicle Infrastructure

With the transportation sector representing an estimated 40% of New England’s emissions, we believe we have an important role to play to support more efficient mobility solutions. We are investing in charging infrastructure for the growing number of electric vehicles (EVs) and enabling our customers to adopt this cleaner mode of transportation.

In New Hampshire , we worked with stakeholders to develop and received approval for a $2.1 million make-ready program for DCFC chargers along the state’s travel corridors to supplement the distribution of VW Settlement awards, along with innovative rate structures to enable these stations.

Network Geothermal Pilot

Geothermal technology uses the stable temperature of the Earth to efficiently warm buildings in the winter and cool them in the summer through a series of shared piping, wells and heat pumps. We are undertaking an innovative networked approach for our pilot in an environmental justice community within the city of Framingham, Massachusetts.

Construction on the pilot is expected to begin in 2023. Service will be provided to a wide, cross-section of residential, apartment and commercial properties, including service to low-income customers. This pilot will use a mix of current fuel sources to help understand the emissions reductions and other benefits to customers who currently receive delivered fuels (oil or propane) or who use electric resistance and gas heating.

The purpose of the pilot is to gather sufficient data on the costs to install and operate the system, customer satisfaction and response, as well as information needed around the possibility of rolling out a larger geothermal program as an alternative energy source to other areas in our service territories. 

Our 2030 Carbon Neutrality Goal

We are dedicating ourselves to meeting an aggressive target to reduce our greenhouse gas footprint and reach carbon neutrality in our operations by 2030. Overseeing our plan to achieve neutrality is a dedicated Oversight Committee comprised of cross functional company leaders. Subcommittees are focused on pursuing reductions in our operational emissions by improving efficiency and implementing emerging technologies, engaging our employees and external stakeholders in the development and implementation of innovative strategies, and investigating opportunities to offset carbon emissions we cannot avoid. Since our base year of 2018, our GHG footprint has declined by 13%. We are focused on achieving our goal by reducing our emissions in the following five key operational areas:

• Methane: We continue to make improvements to our natural gas distribution system by replacing aging pipes to reduce methane leaks. Since 2018, we have replaced more than 447 miles of aged, leak-prone natural gas distribution infrastructure, including 125 miles in 2021 alone. Looking ahead, we plan to exceed historical upgrades with more than 140 miles of pipe replacements in 2022.   In 2021, we exceeded our Methane Challenge goal to replace 3% of cast iron and unprotected steel mains annually, by achieving 7%.  Beginning in 2022, we have adjusted our commitment to 6% annually.
• Line Loss: Line loss, or the energy lost when power is transmitted and distributed across our electric system, is the electric industry’s biggest challenge for emissions reduction. We continue to reduce the climate impact of line loss as we improve efficiencies in our transmission infrastructure and collaborate with state and regional efforts that are enabling a cleaner mix of energy in the grid.
• SF6: We are working with industry partners to research and test innovative solutions to replace sulfur hexafluoride (SF6), which is commonly used as an electrical insulator. In 2020, we began planning our first pilot project utilizing SF6 alternative technology at a substation in Preston, Connecticut, and we expect it to be in service by the end of 2022.  We are also focused on reducing SF6 emissions from our existing equipment through strong maintenance practices and the successful implementation of a detailed SF6 tracking and inventorying approach.
• Fleet: A key focus for the fleet operation is the drive to reduce emissions from fuel consumption. We are focused on continued adoption of hybrid vehicles and alternative fuel sources as substitutes for diesel and gasoline, such as biodiesel and compressed natural gas. We have developed partnerships with vendors developing innovative technologies such as Altec JEMS® and XL Fleet that specialize in emissions reducing tools and technology to help us reduce idle time, improve miles per gallon, and automate fuel reduction. Fleet management also intends to replace all overhead trucks and 50% of our fleet vehicles with hybrid alternatives by 2030.
• Facilities: We continue to pursue aggressive strategies aimed at reducing electricity and fuel use at our facilities.  In 2021, we sourced over 52,000 MWh of renewable energy for our facilities and completed the installation of a rooftop solar system at our Aquarion customer service center in Monroe, Connecticut. We are evaluating and upgrading HVAC equipment with more efficient models, including electric heat pumps.  Similarly, we are implementing measures to lower our energy use, such as efficient lighting installation, control system upgrades, and space optimization. We exceeded our 2021 goal to transition 70% of our facilities to LED lighting by achieving 86% and have now raised our goal to achieve 100%  by the end of 2022.

Environmental Stewardship

Eversource looks to protect the natural environment and minimize potential impacts from our business through strong management practices and partnerships with environmental stakeholders and state agencies. Focus areas include:

• Water resource protection and conservation
• Responsible waste management
• Land preservation
• Wildlife and habitat protection
• Effective vegetation management

Social

Workforce Development

Eversource recognizes that our employees are our most valuable asset and key to our success. We strive to attract, retain, and develop a diverse and inclusive workforce through comprehensive benefits, educational opportunities, and community programs that provide opportunities for new leaders to develop the skills we will need into the future.

Strategic workforce plans are developed every year as part of the annual business planning process to identify long range needs to ensure that we acquire, develop and retain diverse, capable talent. Eversource continuously looks for innovative ways to replenish the workforce by adapting our programs to meet business needs and build a pipeline of individuals who are technically oriented, with an interest in career advancement. The development of several unique pipeline programs in partnership with colleges and internal training has proven to be a successful strategy. 

As we emerge from the pandemic and face many workers moving toward retirement, we are focused on ensuring our current and future workforces are equipped with the necessary skill sets to transition alongside our evolving business. We’ve developed proactive recruiting strategies to attract experienced workers in highly technical and emerging roles, such as cybersecurity, renewable energy and grid modernization. We also have several established community college partnership programs in the three states we serve that feed our craft roles; multiple cohort and trainee programs in technical and other critical areas; and robust internship and apprentice programs .

At Eversource, we are dedicated to supporting our employees and their career development by providing growth opportunities, tuition assistance and a variety of field and classroom training, which supports ongoing professional growth and drives the success of our business. 

Employee development programs are aligned to strategic business plans to address immediate and long-range talent needs and promote succession within all levels of the organization. These programs include everything from pipeline development programs and technical skills and competencies for the evolving energy industry to leadership skills and behaviors necessary to effectively and ethically lead in the changing workforce.

Diversity, Equity & Inclusion

Diversity, equity and inclusion (DE&I) are core values that drive the way we do business and strengthen our bonds within our workforce. 

We are a signatory to the CEO Action for Diversity & Inclusion ™ pledge, demonstrating our ambition to advance diversity and inclusion in our workplace and to drive accountability for progress throughout our organization. We are a member of Paradigm for Parity, a coalition of business leaders dedicated to addressing the corporate leadership gender gap. We also continue to collaborate with the Edison Electric Institute (EEI), supporting the EEI DE&I Commitment with initiatives and metrics. Our DE&I Council and six employee Business Resource Groups (BRGs) help set strategy and lead the implementation of initiatives supporting our DE&I strategic goals across all three states. 

Detailed information about our DE&I progress, including demographic and EEO-1 data metrics and our policies, practices, programs and journey, can be found online in our 2021 DE&I Report.

We realize that an understanding of environmental justice is an important part of our commitment to equity. We are committed to the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income, with respect to the implementation and application of  environmental laws, regulations and policies in the context of our stewardship of the energy systems we operate.

We also know that reliable energy service is vital to public safety, community health, and the economic welfare of our customers. Our attention to reliability of the energy system often results in enhancements and repairs that could further impact environmental justice communities, even where the intended purpose of these projects and activities is a focus on reliability and growth.  We maintain that these complementary goals -- reliability and justice -- can be accomplished simultaneously with benefits for all.

Equity & Environmental Justice

Eversource is committed to being a strong environmental partner and responsible steward in the communities we serve and on behalf of our customers. This commitment requires us to be attentive to environmental justice in all communities especially those that are home to individuals and communities of color, which often are overburdened with negative, ongoing environmental impacts and justice disparities resulting from historic inequities in the development of energy infrastructure, among other things. 

We understand that an important part of our commitment to equity must include an understanding of environmental justice and we are committed to the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income, with respect to the development, implementation, and enforcement of environmental laws, regulations, policies and practices with respect to our stewardship of the energy systems we operate. We remain dedicated to fostering a pro-equity work culture with a goal to proactively engage with customers, communities and stakeholders to identify their needs upfront — so they better understand, and we are better positioned to deliver equitable solutions to all of our customers and communities.

Safety  

“Safety first and always” is an important Eversource core value – for our customers, employees and communities. Our approach is one in which all employees are empowered to proactively address hazards and are trained, prepared and able to safely conduct field-based work in an ever changing environment.  We encourage our employees to report any unsafe condition they encounter; such reports resulted in more than 2,000 potential hazards being addressed in 2021.

We work collaboratively with our union partners and industry peers to continuously learn and improve.  Human and Organization Performance (HOP), a management philosophy, and the Energy Wheel, a tool that focuses on hazardous energies known to result in serious injury or fatality (SIF) incidents, are two examples of initiatives that have been integrated into our safety systems and have further enhanced the way we work.  And we continue to expand our Safety Management System (SMS) to integrate other key safety principles into the company’s everyday operations.  

In addition to conducting our day-to-day work in the safest manner possible, we also have a responsibility to keep our communities safe. A variety of resources are provided on our website for first responders, emergency management personnel and other groups throughout our service territory.  In addition, we coordinate with local emergency response agencies to provide in-person training, so they are prepared to respond effectively and safely.

Community   

Our first priority is to provide our customers with the essential services they expect – safely and reliably delivering electricity, natural gas and water. Every day we strive to go far beyond expectations to provide our customers with excellent service, to be engaged and responsive to their needs, and to enable technologies that will help to reduce regional emissions. We are also dedicated to operationalizing equity, and we are confident that reliability and equity can be accomplished simultaneously. This requires engaging all stakeholders, including our customers and communities, with integrity, respect and dignity while working toward fair and just outcomes, especially for those burdened with economic challenges, racial inequality, negative environmental impacts and justice disparities. 

We do our best to communicate with our customers through their preferred channels and languages. As the first utility in the country to offer Spanish-language resources, we have a mobile application in Spanish, and important natural gas safety messages are translated into both Spanish and Portuguese. We are also unwavering in our commitment to protect our customers’ personal information. Our comprehensive cybersecurity program uses in-depth defense strategies consistent with the National Institute of Standards and Technology (NIST) Cybersecurity Framework.

Our Community Relations Team serves as the primary point of contact and the face of Eversource for state and local government officials and business leaders. We partner on community priorities and leverage the full benefit of Eversource’s operational, safety and advocacy experience to support the needs of town leaders, constituents and communities. During declared emergency events, a dedicated Community Liaison is assigned to conduct proactive outreach and address specific community needs. In 2021, we rolled out a new, web-based Municipal Hub site that offers municipal officials improved two-way communications. Available 24/7, this site can be accessed to provide and receive essential information. During emergency events, municipalities can report outages and set community priorities while receiving timely updates from us on events, the estimated time of restoration and other critical details .

Governance   

Our business activities are overseen by our Board of Trustees, with the goal of enhancing long-term value for shareholders while also fulfilling our customer, commercial, community and public service obligations. Sustainability is embedded into our governance processes and board-level oversight of ESG is reflected in many of the company’s financial, operational and sustainability/ESG accomplishments each year. Our risk management, long term strategy development and ethical business practices not only ensure the sustainability of our business but are critical to our commitment to providing superior customer service and supporting our communities.

Our Executive Vice President, Corporate Relations and Sustainability and Corporate Secretary works with executive-level management from key ESG areas and oversees a team of employees that engages with operational and business partners to develop and manage strategic priorities, oversee GHG emission reduction initiatives, set sustainability goals and coordinate sustainability reporting. Our sustainability team meets regularly throughout the year to assess current practices and identify improvement opportunities.

Signifying the importance of sustainability and our vision to lead our industry in ethical and responsible business practices, our Board of Trustees Governance, Environmental and Social Responsibility Committee provides primary oversight for our company’s environmental, human capital management and social responsibility programs and performance.  All trustees, officers and employees must abide by the principles of our Code of Business Conduct, which applies the same high ethical standards to all, regardless of job or level in the organization. Additionally, the Board has adopted guidelines and policies that collectively address day-to-day activities and reflect our commitment to ethical, respectful and transparent conduct.

Cyber Security

Eversource’s policies and practices continue to allow it to protect its cyber and operational assets. At the same time, the Board and its Committees continue to provide substantial and focused attention to cyber and system security. Comprehensive cyber security reports are provided and discussed at each meeting of the Finance Committee, which has primary responsibility for cyber and system security oversight at the Committee level. These reports are provided to all members of the Board and are discussed by the Board at the time the Finance Committee Chair reports on the Committee’s meetings. The reports focus on the changing threat landscape and the risks associated with the Company, describe cyber security drills and exercises, any attempted breaches, cyber incidents within the utility industry and all over the world, and mitigation strategies, including insurance. In addition, assessments by third-party experts of cyber and physical security risks to the utility industry and the Company in particular are provided periodically. Eversource regularly reviews and updates its cyber and system security programs and the Board and its Committees continue to enhance their strong oversight activities.

Additional Information