Fortis Inc. Releases 2024 Climate Report
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Insights
An analysis of Fortis Inc.'s 2024 Climate Report suggests a proactive approach in addressing climate-related risks and opportunities within the energy sector. The inclusion of climate scenario analysis is a strategic tool that allows Fortis to anticipate and plan for various environmental futures, thus potentially reducing the volatility of its operations and investments. By evaluating both low and high emissions scenarios, Fortis is acknowledging the uncertainty in future climate conditions and preparing for a range of outcomes, which is a prudent approach to risk management.
From an economic standpoint, the assessment of physical risks and opportunities for priority assets is crucial. It indicates a comprehensive understanding of how climate hazards can affect infrastructure and service delivery. This can have direct implications on the cost of capital and insurance premiums for the company. The focus on resiliency and mitigation activities suggests that Fortis is investing in adaptation measures that could lead to long-term cost savings and operational stability, which is likely to be favorably viewed by investors concerned with sustainability and risk exposure.
Fortis Inc.'s emphasis on enhanced disclosures on climate governance and the progress on established emission targets reflects an industry trend towards transparency and accountability. As investors increasingly factor in Environmental, Social and Governance (ESG) criteria into their decision-making, Fortis's detailed reporting could position it as a leader in the eyes of sustainability-focused investors. This could potentially result in a more stable investor base and could even command a premium in the market.
Moreover, Fortis's commitment to cleaner energy solutions aligns with the global shift towards renewable energy sources. As policies and market preferences evolve, Fortis's strategy to invest in these solutions may not only mitigate transition risks but also capture new growth opportunities in the energy market. The ability to support policy advancements further indicates that Fortis is actively engaging with regulatory developments, which could facilitate smoother transitions and potentially provide a competitive edge.
The 2024 Climate Report by Fortis Inc. highlights the company's efforts in climate action, notably their progress since the 2019 baseline year. The report's focus on climate-related impacts and the establishment of emission targets is indicative of Fortis's strategic alignment with the Paris Agreement and the broader United Nations Sustainable Development Goals (SDGs). The proactive measures in assessing and preparing for climate change impacts demonstrate a commitment to sustainability that may resonate with stakeholders who prioritize corporate social responsibility.
Furthermore, the report's findings on transition risks and opportunities using an enterprise risk management framework suggest a holistic approach to integrating climate considerations into corporate strategy. This could enhance Fortis's reputation as a responsible business, potentially leading to stronger partnerships and customer loyalty. It is also an indication of the company's readiness to adapt to a low-carbon economy, which could be a decisive factor for long-term business viability in the face of stringent future environmental regulations.
ST. JOHN'S, Newfoundland and Labrador, March 11, 2024 (GLOBE NEWSWIRE) -- Fortis Inc. ("Fortis" or the "Corporation") (TSX/NYSE: FTS) today released its 2024 Climate Report. This report builds on our 2022 TCFD and Climate Assessment and further details our understanding of climate-related impacts across the Fortis group of companies.
New in this report:
- Climate scenario analysis using low and high emissions scenarios over three time horizons.
- Physical risks and opportunities assessed for priority assets using nine climate hazards. Transition risks and opportunities assessed using a framework based on enterprise risk management principles.
- Mitigation and resiliency activities across Fortis utilities.
- Enhanced disclosures on climate governance at Fortis and its utilities.
- Climate action and progress on established emission targets since the 2019 baseline year.
"With the knowledge gained from climate scenario analysis, we can make more informed decisions to minimize climate-related risks, maximize strategic growth opportunities, and increase the resilience of our operations while delivering cleaner energy our customers can afford," said David Hutchens, President and Chief Executive Officer, Fortis Inc. "We will continue to assess and prepare for how climate change impacts our business to position Fortis well for the future."
Fortis' current business strategy addresses the risks and opportunities identified in this report and informs future work to advance the preparedness of our utilities for climate impacts. Fortis remains focused on achieving emissions reduction targets, investing in cleaner energy solutions, enhancing resiliency of energy delivery assets, and supporting policy advancements.
About Fortis
Fortis is a well-diversified leader in the North American regulated electric and gas utility industry with 2023 revenue of
Fortis shares are listed on the TSX and NYSE and trade under the symbol FTS. Additional information can be accessed at www.fortisinc.com, www.sedarplus.ca, or www.sec.gov.
A .pdf version of this press release is available at: http://ml.globenewswire.com/Resource/Download/35e12e86-8cc8-41d3-aa80-e9d82a37c98f
For more information, please contact:
| Investor Enquiries Ms. Stephanie Amaimo Vice President, Investor Relations Fortis Inc. 248.946.3572 investorrelations@fortisinc.com | Media Enquiries Ms. Karen McCarthy Vice President, Communications & Government Relations Fortis Inc. 709.737.5323 media@fortisinc.com |
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