The Sustainability Performance Scorecard reports the progress made on our commitments. The table also highlights our commitment focus areas and planned next steps.
Deliver on financial commitments in 2008 and beyond
In 2008 and 2009, we achieved diluted earnings per share of $1.81 and $1.32, and net income – controlling interests of $1,129 million and $848 million respectively.
Successfully execute $4+ billion, multi-year expansion program
Since 2007, placed into service 42 expansion projects totaling $3+ billion, contributing a combined return on capital employed of greater than 12%. In 2010, we will place $900 million of projects into service.
Continue to improve stakeholder outreach program; establish stakeholder outreach principles and approach
In 2009, we adopted and implemented stakeholder engagement principles and a framework for improvements.
Initiate implementation of a company-wide sustainability program
Sustainability is being systematically integrated company-wide. This Sustainability Report addresses our progress.
Benchmark our sustainability performance against leading sustainability indices
In 2008 and 2009, Spectra Energy was named to the Dow Jones Sustainability North America Index, and the Carbon Disclosure Leadership Index. In 2009, we were recognized as the top energy company on the Carbon Disclosure Leadership Index.
Deliver on financial and capital project commitments.
Strengthen relationships with key stakeholders by continuously improving engagement and communications.
Continuously improve customer satisfaction levels by focusing on reliability and customer responsiveness.
Successfully implement Supply Chain Excellence program to improve supplier relationships, strategic sourcing, sustainability and enhanced technology.
Continuously improve performance in the Dow Jones Sustainability Index and Carbon Disclosure Leadership Index.
Conduct annual assessment of the board of directors
Self-assessments of the board of directors and board committees were performed in accordance with our Principles of Governance and the committee charters.
Begin to consider integration of sustainability into risk management and investment decisions
Sustainability considerations integrated into company-wide risk management framework.
Establish environmental health and safety (EHS) auditing function
The EHS Management System auditing function was established and has conducted 24 audits representing 87% coverage of the types of physical assets in the corporation.
Approve Sustainability Charter, appoint oversight committee
Our Sustainability Charter was approved in early 2008. Greg Ebel, Spectra Energy’s president and CEO, is the executive sponsor of the oversight committee.
Maintain strong corporate governance systems.
Conduct independent, third-party review of ethics and compliance program.
Implement enhanced ethics and compliance training.
Advance our zero injury and zero work-related illness safety culture
We were saddened by two safety related deaths in 2009 – an employee of Spectra Energy and an employee of our non-operated joint venture, DCP Midstream, and by two contractor fatalities in 2008. Our employee lost workday safety performance improved slightly from 2008 to 2009 and recordable safety performance diminished from 2008 to 2009.
Seek to improve contractor safety performance
Contractor recordable safety performance improved from 2008 to 2009 as a result of providing safety training, support and oversight to contractor companies.
Continue to comply with the Code of Business Ethics (Code), internal policies, and applicable laws and regulations
In 2009, the Code was extended to contractors, suppliers and service providers. All employees and contractors received Code training; specialized groups received additional training.
Evaluate feasibility of a company-wide integrated operations management system
A company-wide Operations Performance Assurance framework was developed in 2009 integrating: safety, reliability, integrity, compliance and environmental performance management systems.
Continuously improve safety performance, targeting at least 10% recordable incident improvement for employees and contractors in 2010.
Implement Contractor Safety Management programs across Spectra Energy.
Implement Operations Performance Assurance framework company-wide, incorporating discretionary maintenance spend, supply chain management and EHS management system.
Implement our EHS data protocol and management systems (EPASS) including greenhouse gas emissions
EPASS has been implemented and broadened to enable organization-wide learning from environmental incidents. Scope and accuracy of environmental performance reporting improved.
Continue to assess possible environmental impacts and consider strategies to minimize and mitigate these impacts.
Environmental Strategy Framework was developed in 2009 that enables understanding of impacts and reduction or management of remaining impacts.
Continue to develop projects and customer focused programs that reduce greenhouse gas emissions
Approximately 2.9 million tonnes of cumulative CO2e emissions have been avoided or reduced from 2007–2009 by operating seven carbon capture and storage facilities, running demand side management programs, and focusing on operational efficiency.
Develop environmental footprint and energy efficiency metrics while continuing to improve performance reporting.
Extend environmental performance requirements to contractors and suppliers.
Conduct pilot waste minimization projects to evaluate waste reduction opportunities.
Continue to develop projects and customer-focused programs that reduce greenhouse gas emissions.
Continue to assess feasibility of Fort Nelson Carbon Capture and Storage project to enable a decision regarding full project execution.
Launch our high-performance competencies
Launched high performance competencies in 2007 and are integrating them into employee programs and performance management process.
Continue to design personal development plans for employees
Implemented performance management process, which includes the tools for employees to create personal development plans, across Spectra Energy.
Identify competency-based training needs
In 2008, business units developed workforce action plans, updated annually, to identify and forecast staffing and training needs. The plans link identified competency training needs to employee development programs.
Develop metrics and goals to support a high-performance organization
In 2009, developed measures to support a high performance organization and become the “employer of choice”.
Establish and support employee resource networks
Employee Resource Networks that create a supportive environment for diverse employee populations have been established.
Continue to increase transparency and reporting of Human Resource metrics.
Continually assess and implement Workforce Action Plans to ensure business sustainability.
Implement Knowledge Sharing in three departments in 2010.
Implement action plans responding to the results of the employee survey and measure progress.
Prepare candidates for management positions using succession planning and employee development with emphasis on women and diversity candidates.
Maintain commitment to philanthropy and employee volunteerism
Philanthropic contributions have increased every year. A strategic review of community relations and corporate philanthropy in 2009 resulted in strengthening our programs.
Develop metrics to assess the impact of contributions
Performance metrics for community relations and corporate philanthropy were developed in conjunction with the 2009 strategic review. Metrics will be implemented in 2010.
Implement the integrated preparedness program
Our integrated preparedness program is fully implemented; regular training and drills ensure preparedness. In 2008, we successfully responded to two hurricanes and minimized disruptions.
Advance supplier diversity program
We purchased $60 million of goods and services from diverse suppliers in 2009. Where appropriate, we work with diverse suppliers to help build their capacity to meet our standards
Contribute lasting value to communities by implementing the strategic plan for corporate philanthropy in 2010 and beyond.
Union Gas will progress its Demand Side Management programs for low-income retail customers targeting conservation of natural gas, water and electricity use.
Successfully launch a program to train our employees to be ambassadors for Spectra Energy.
Further progress the supplier diversity program; implement new supply chain sustainability benefit tracking process.
Demonstrate that Spectra Energy is always ready to respond by continuously improving our integrated preparedness program in cooperation with local communities.