Equitrans recognizes that climate change is one of the most critical issues facing our Company, our society, and the world — the effects of which require global efforts to reduce greenhouse gas (GHG) emissions. As an energy infrastructure company, we understand the ongoing developments and risks surrounding climate change, as well as the corresponding opportunities. As such, we must continue to focus on long-term sustainable performance — working to minimize impacts to the environment and society by pursuing climate change mitigation targets.
Approach to Greenhouse Gas Emissions
2-4
Restatements of information
3-3
Management of material topics
305-1
11.1.5
Direct (Scope 1) GHG emissions
305-2
11.1.6
Energy indirect (Scope 2) GHG emissions
305-3
11.1.7
Other indirect (Scope 3) GHG emissions
305-4
11.1.8
GHG emissions intensity
305-5
11.2.3
Reduction of GHG emissions
413-2
11.15.3
Operations with significant actual and potential negative impacts on local communities
EM-MD-110a.1
Gross global Scope 1 emissions, percentage methane, percentage covered under emissions-limiting regulations
EM-MD-110a.2
Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets
2-4
3-3
305-1
305-2
305-3
305-4
305-5
413-2
EM-MD-110a.1
EM-MD-110a.2
Equitrans acknowledges the effects of climate change present pressing challenges to society and risks to our Company; however, we believe that natural gas and its associated infrastructure is, and will remain, a critical component of our nation’s energy strategy. Consequently, we also believe that working to reduce our associated operational emissions is simply the right thing to do. Because of this, we are making strides to understand and minimize our impacts and are focusing on reducing our operational Scope 1 and Scope 2 GHG emissions.
Our internal, multi-disciplinary climate working group has identified and successfully deployed projects such as gas-to-air pneumatic conversions and compressor vent-gas recovery to help reduce methane and other emissions. In addition, we continue to evaluate existing and new technologies that can potentially be used to achieve future reductions. As we learn more about climate change and its impacts, Equitrans believes a sustainable future lies in our society’s ability, including that of natural gas infrastructure companies, to continuously do better in the area of GHG emissions.
Equitrans works to accurately track and transparently report GHG emissions to allow external stakeholders to understand our climate performance, and our GHG inventory is developed and reported in accordance with the Greenhouse Gas Protocol (GHG Protocol) requirements. To better align with existing financial reporting, Equitrans has voluntarily elected to change its GHG organizational boundary from operational control to equity share reporting, beginning with Equitrans’ 2023 Corporate Sustainability Report.
Under the equity share approach, a company accounts for GHG emissions from operations according to its equity share of the asset. The equity share reflects economic interest, which is the extent to which a company has rights to the risks and rewards associated with an asset’s operation. For example, as Equitrans owns a 60% interest in Eureka Midstream, we are including 60% of the total emissions from Eureka Midstream assets in our GHG inventory reporting.
To better align with existing financial reporting, Equitrans has voluntarily elected to change its GHG organizational boundary from operational control to equity share reporting, beginning with Equitrans’ 2023 Corporate Sustainability Report.
In this report, Equitrans outlines its Scope 1 and Scope 2 GHG emissions using the equity share consolidation approach for the past four years. A year-over-year comparison summary for 2021-2022 for emissions associated with our operations is as follows:
Scope 1 carbon dioxide and nitrous oxide emissions decreased due to an overall decrease in natural gas throughput and associated fuel combustion for operating equipment
Without reflecting the one-time Rager Mountain incident, the investigation of which is ongoing (as described below), there was a decrease in Scope 1 methane emissions associated with operations, primarily due to pneumatic device conversions and installation of vent gas recovery on select compressors
Scope 2 emissions increased due to the addition of new electricity accounts in late 2021 and mid-2022, associated with the installation of rectifiers used for cathodic protection and converting the electricity supply for three existing compressor stations from on-site generators to purchased power
In-depth information regarding Equitrans’ Scope 1, Scope 2, and Scope 3 GHG emissions, including a detailed discussion surrounding Scope 3 Emissions Category 11 – Use of Sold Products, is contained within the respective subsections below.
Scope 1 GHG Emissions
For our 2022 Scope 1 emissions, we have included additional data related to an incident that occurred at our Rager Mountain Storage facility, located in Jackson Township, a remote area in Cambria County, PA, on November 6, 2022. As part of the Company’s emergency response process, Equitrans technicians arrived on site and observed natural gas escaping from a 1 5/8" vent on a single storage well, which was working as designed to relieve pressure from the casing. Equitrans worked with a specialty well services company to resolve the venting and the flow of gas was stopped on November 19, 2022. In coordination with the Pipeline and Hazardous Materials Safety Administration (PHMSA), an independent, full root cause investigation is underway and is expected to be complete in summer 2023. As part of post-incident activities, Equitrans continues to conduct a comprehensive environmental assessment of the facility and surrounding area, as well as an extensive storage field integrity assessment. Additional information regarding the Rager Mountain incident can be found in the Public Safety and Emergency Response and the Asset Safety and Integrity sections of this report.
In light of the Rager Mountain incident, we are presenting two data sets for our 2022 Scope 1 emissions:
The first 2022 data set presents our Companywide GHG emissions associated with Equitrans’ normal course operations during 2022 and excludes Rager-related data (calculated as Companywide GHG emissions minus potential emissions associated with the one-time, Rager Mountain incident).
The second 2022 data set includes potential emissions from the estimated gas loss related to the one-time, unplanned Rager Mountain incident. Based on a comparison to the standard shut-in test performed in April 2022, the results of the inventory verification test indicated the Rager storage inventory was reduced by an estimate of approximately 1.29 Bcf. Equitrans continues to evaluate whether and to what extent all of the inventory loss was due to venting or whether some was due to potential migration.
Total Scope 1 Direct Greenhouse Gas Emissions (Metric Tons CO2e)1
1) Includes 100% of emissions from Equitrans assets and 60% of emissions from the Eureka Midstream assets; excludes MVP, MVP Southgate, and additional in-progress projects
2) The 2019, 2020, and 2021 emissions have been restated based on the change to an equity share GHG consolidation approach
3) For conservatism, and based solely on an initial inventory reduction test, assumes the potential venting of approximately 1.29 Bcf of natural gas related to the one-time incident in November 2022, the investigation of which is ongoing as of the publication of this report
Scope 1 Direct Greenhouse Gas Emissions (Metric Tons CO2e)1
20192
20202
20212
2022 (excluding one-time incident)
2022 (including one-time incident)3
Carbon Dioxide (CO2)
1,410,599
1,505,118
1,582,721
1,445,044
1,445,296
Methane (CH4)
277,597
259,537
224,475
205,153
1,059,569
Nitrous Oxide (N2O)
781
825
848
777
777
Hydrofluorocarbons (HFC)
1,922
2,309
1,806
1,925
1,925
Perfluorinated Compounds (PFCs)
0
0
0
0
0
Sulfur Hexafluoride (SF6)
0
0
0
0
0
Nitrogen Trifluoride (NF3)
0
0
0
0
0
Total
1,690,898
1,767,788
1,809,851
1,652,899
2,507,567
1) Includes 100% of emissions from Equitrans assets and 60% of the emissions from Eureka Midstream assets; excludes MVP, MVP Southgate, and additional in-progress projects
2) The 2019, 2020, and 2021 emissions have been restated based on the change to an equity share GHG consolidation approach
3) For conservatism, and based solely on an initial inventory reduction test, assumes the potential venting of approximately 1.29 Bcf of natural gas related to the one-time incident in November 2022, the investigation of which is ongoing as of the publication of this report
Scope 2 GHG Emissions
In previous sustainability reports, Equitrans reported location-based Scope 2 emissions, which are calculated by multiplying purchased electricity by emissions factors for the regional electric grid. For this current report (as of year-end 2022), we are also disclosing market-based Scope 2 emissions, which account for renewable energy purchased.
Equitrans purchased and retired 35,000 Green-e Energy certified renewable energy credits (RECs) for calendar-year 2022 operations. These 35,000 RECs represent 35,000 megawatt hours (MWh) of renewable energy generated, which in this case was from wind energy. By purchasing and retiring these RECs, 100% of the electricity purchased in 2022 that is accounted for in Scope 2 GHG emissions was supplied by renewable energy with zero carbon emissions. The small amount of remaining market-based emissions reported are from purchased heating.
Total Scope 2 Location-based, Indirect Greenhouse Gas Emissions (Metric Tons CO2e)1
1) Includes 100% of emissions from Equitrans assets and 60% of the emissions from Eureka Midstream assets; excludes MVP, MVP Southgate, and additional in-progress projects
2) The 2019, 2020, and 2021 emissions have been restated based on the change to an equity share GHG consolidation approach
Scope 2 Location-Based, Indirect Greenhouse Gas Emissions (Metric Tons CO2e)1
20192
20202
20212
2022
Carbon Dioxide (CO2)
12,371
13,407
14,847
16,148
Methane (CH4)
34
34
36
41
Nitrous Oxide (N2O)
47
46
47
57
Hydrofluorocarbons (HFC)
0
0
0
0
Perfluorinated Compounds (PFCs)
0
0
0
0
Sulfur Hexafluoride (SF6)
0
0
0
0
Nitrogen Trifluoride (NF3)
0
0
0
0
Total
12,453
13,487
14,931
16,245
1) Includes 100% of the Eureka Midstream assets; excludes MVP, MVP Southgate, and OVCX projects
2) The 2019, 2020, and 2021 emissions have been restated based on the change to an equity share GHG consolidation approach
Total Scope 2 Market-based, Indirect Greenhouse Gas Emissions (Metric Tons CO2e)1
Target
225 200 175 150 125 100 75 50 25 0
204.1
2022
1) Includes 100% of emissions from Equitrans assets and 60% of the emissions from Eureka Midstream assets; excludes MVP, MVP Southgate, and additional in-progress projects
Scope 3 GHG Emissions
In late 2022, Equitrans began work to expand our Scope 3 GHG inventory by evaluating which of the 15 Scope 3 categories were applicable to the Company and determining the best available data collection approach and emissions calculation methodology for each of the applicable categories. We acknowledge that we have not previously tracked, collected, or reported on the data sources that comprise the 15 categories of Scope 3 emissions. Therefore, we had to establish a methodology for calculating emissions that are potentially applicable to Equitrans to ensure reported data could be consistently and reliably calculated. As of publication of this report, the data collection and calculation for Equitrans’ full 2022 Scope 3 inventory is ongoing. The available results at the time of report publication are disclosed in the table below. In subsequent years, we expect to expand our Scope 3 disclosures to include additional applicable categories.
Total 2022 Scope 3 Other Indirect Greenhouse Gas Emissions by Category (Metric Tons CO2e)1
1) The data collection and calculation for the full 2022 Scope 3 inventory is ongoing; the total includes calculation results available at the time of report publication
2) Includes business travel paid for by the Company including commercial air travel, charter air travel, car rentals, and other spend-based business travel; emissions associated with hotel stays are excluded as the GHG Protocol lists that as an optional metric
3) Includes emissions from full-time and part-time employees commuting to their designated work location; excludes emissions from employees who commute using Company fleet vehicles, as those emissions are reported in Scope 1
4) Includes energy usage from office space that Equitrans leases from third parties
5) Includes energy usage from office space that Equitrans leases to third parties
Additional Discussion: Scope 3 Emissions Category 11 — Use of Sold Products
The most significant portion of GHG emissions for the full natural gas value chain comes from its combustion by its ultimate users. Deciding which companies should include those combustion-related emissions in their disclosures is a particularly complicated task that Equitrans has spent considerable time and resources evaluating. In past years, Equitrans had considered emissions from downstream users’ natural gas combustion and had provided an estimate of these emissions in our Scope 3 inventory. It was assumed that all natural gas would be combusted, so the emissions were reported for Category 11 (use of sold products) and Categories 10 (processing of sold products) and 12 (end of life treatment of sold products) were assumed to be not applicable. As Equitrans has advanced its review and understanding of the GHG Protocol guidance and considered industry best practices, we have concluded that it is not appropriate to include sold product emissions in our Scope 3 inventory. As such, Equitrans will no longer be including GHG emissions from the combustion of natural gas it transports in the Company’s emissions reporting. A complete perspective regarding this change is fully described below.
Equitrans' Perspective on Category 11
Whether these emissions should be disclosed depends on a full understanding of the midstream business model and how others in the marketplace interact with midstream service companies. Equitrans’ operations focus on natural gas transmission & storage and gathering systems, as well as water services that support natural gas production across the Appalachian Basin. Our primary responsibility is the transportation of our customers’ natural gas from Point A to Point B — meaning our customers produce and extract the natural gas and engage Equitrans to transport the gas to their customers. The vast majority of the Company’s business is conducted pursuant to long-term contracts with our customers. Pursuant to these contracts, Equitrans provides services that involve the transport our producer customers' product through our pipeline systems. Once this product reaches its destination, ownership of the product is transferred from our producer customer to their purchaser. At no point does Equitrans own the natural gas product that we transport.
The GHG Protocol provides general guidance and a number of specific recommendations for companies to identify and report applicable Scope 3 emissions. Specifically, the description of Category 11, use of sold products, is as follows:
"This category includes emissions from the use of goods and services sold by the reporting company in the reporting year. A reporting company’s scope 3 emissions from use of sold products include the scope 1 and scope 2 emissions of end users. End users include both consumers and business customers that use final products."
Per the GHG Protocol, these types of end-use emissions are to be reported “from all relevant products sold in the reporting year across the company’s product portfolio.” Equitrans transports the natural gas but cannot sell the natural gas for end-use purposes because it never owns the gas. Equitrans’ “product” is the transportation service it provides through its pipeline infrastructure — the ownership of the gas itself remains the product of our customers from receipt to its delivery point on our pipelines. Based on this definition, the use of sold products category would be appropriately accounted for by upstream companies that produce and own the natural gas resource. Accounting for the emissions associated with downstream combustion at the midstream level would not only be inconsistent with the language of the GHG Protocol, but it would also result in misleading results due to double counting of upstream producers' and midstream companies' emissions. As such, Equitrans will no longer be including GHG emissions from the combustion of natural gas it transports in the Company’s Scope 3 inventory and emissions from Category 11 (use of sold products) are not reported here.
Greenhouse Gas Emissions Reduction Aspirations
With the implementation of our Climate Policy in 2021, Equitrans announced its primary interim emission reduction targets and broader aspirations. As the main component of the natural gas we transport, we recognize that methane emissions are one of Equitrans’ largest environmental impacts. Therefore, we are targeting an interim Scope 1 and 2 methane emissions reduction of 50% by 2030 and a total Scope 1 and 2 GHG emissions reduction of 50% by 2040. Further, we are aspiring toward a net zero Scope 1 and 2 carbon goal for 2050. Emission reductions will be compared to the 2019 baseline year, which was Equitrans’ first full year of operations as a standalone company.
We hold climate change as one of our top concerns, and we will continue to be transparent about our climate journey as we track and report our emissions against the reduction targets. As our efforts evolve, we commit to exploring, and embracing where appropriate, new technologies, innovative approaches, and collaborative partnerships to do our part in addressing climate change for the benefit of all.
Scope 1 and 2 Emissions Targets
50%
reduction in Methane by 2030
reduction in Total GHG by 2040
Greenhouse Gas Reduction Strategies
Current Regulatory Requirements
The federal Clean Air Act governs and controls volatile organic compounds (VOCs) and, subsequently, methane. As of the date of this report, the overarching federal New Source Performance Standards (NSPS), 40 CFR 60 Subparts OOOO and OOOOa (Quad Oa), are the only federal oil and gas-specific regulations relevant to our operations. Many of Equitrans’ sites are subject to Quad Oa requirements, and potential affected sources can include reciprocating compressors, pneumatic controllers, storage vessels, and fugitive emission components at compression stations. Using a pre-determined walking path to ensure that all equipment is inspected, leak detection is performed across the entirety of each regulated facility. In addition, Equitrans voluntarily expanded its leak detection program to include compression and dehydration sites that would otherwise not be subject to regulatory leak detection requirements.
Future regulatory requirements, such as the proposed NSPS Subparts OOOOb and OOOOc, as well as the Inflation Reduction Act Methane Fee, are being evaluated and assessed for impact across the organization. The effect of climate change legislation or regulation on the Company’s business is currently uncertain, although such matters could negatively affect the Company’s business depending on particular rulemaking that may be adopted.
As mandated by the U.S. Environmental Protection Agency (EPA), Equitrans identifies and reports emissions for all its facilities that emit 25,000 or more metric tons of CO2e each year. To satisfy this federal requirement, an annual GHG emissions report is prepared in accordance with calculations that must follow the EPA reporting rules detailed in 40 CFR 98 Subpart W. In addition to these federal reporting requirements, Pennsylvania, Ohio, and West Virginia have state-specific methane regulations through individual permits or state reporting requirements.
Equitrans’ Voluntary Reduction Efforts
In addition to working to comply with regulatory requirements, Equitrans is constantly seeking ways to voluntarily reduce our environmental footprint. One of our primary means of identifying and reducing methane emissions is through our leak detection and repair (LDAR) team. Using an infrared camera, the team looks for leaks along our natural gas pipelines and other system equipment. If a leak is identified, the team acts quickly to make the necessary repairs. Equitrans documents all identified leaks and closely examines each repair to ensure pipeline integrity.
Often referred to as “blowdowns,” Equitrans routinely schedules the venting of accumulated natural gas not suitable for production. Prior to a scheduled blowdown, and when possible, Equitrans first safely recycles the excess gas that would have been vented at our compressor stations using suction pressure. The pressure of suction is less than pipeline pressure and ensures the excess gas moves into compressors, rather than being vented to the atmosphere. When blowdowns are required, Equitrans practices “work stacking” as a method to reduce emissions. This process involves the “stacking” of maintenance and outage activities that would typically require multiple blowdowns but are planned and executed concurrently to reduce unnecessary venting.
Another method Equitrans utilizes to reduce emissions is hot tapping. This is the process of connecting new pipelines to pressurized pipelines while allowing gas to continue to flow during the procedure. Hot tapping allows gas to remain in the pipe, eliminating the need for unnecessary blowdowns and venting of emissions to the atmosphere. Further, Equitrans replaces high-bleed pneumatic controllers with lower-emitting controllers or utilizes pneumatic controllers that operate with instrument air systems rather than natural gas, to further limit GHG emissions.
Equitrans invested approximately $5 million to reduce methane emissions during 2022.
In addition to the numerous emissions reduction initiatives listed above, our climate working group investigates various innovative technologies for potential future implementation. The current focus is on further mitigating blowdown emissions from various sources such as pipelines, pigging, and compressor stations.
For 2022, we once again reinforced our commitment to environmental stewardship by including a methane emission mitigation metric in the Companywide short-term incentive plan (STIP). Similar to the prior year, reductions were achieved by converting compressor station pneumatics from natural gas to air-driven controllers and by replacing high-bleed pneumatic devices with more environmentally friendly, low- or intermittent-bleed controllers at locations that were not fully converted to air-driven systems. Vent gas recovery was installed on select compressors to achieve further reductions. In total, approximately $5 million was invested to reduce methane emissions in 2022. The timely and safe execution of these projects required an extensive level of coordination across the organization including our project management, engineering, construction, operations, automation, land, safety, and environmental teams, as well as the climate working group.
Evaluating Our GHG Emissions Performance
In 2022, the environmental department began to build out a comprehensive GHG management program, which documents how Equitrans monitors and quantifies emissions, the planning and selection of emission reduction projects, and the overall accounting of GHGs with regard to our climate goals. This document includes procedures for potential changes to the 2019 baseline GHG emissions, which we developed to help evaluate future emission reductions and to demonstrate progress towards our climate goals. Any changes to this baseline will be made in accordance with the GHG Protocol.
As compared to the 2019 baseline, Equitrans reduced its methane emissions from standard operations by approximately 24% in 2022.
The Company continued to invest in equipment to reduce methane emissions throughout 2022. The emissions reductions associated with these changes will not be fully realized until the end of 2023, at which time all new equipment will have been operational for more than one full year. The 2022 conversion of certain pneumatic controllers (to either air-driven or low-bleed or intermittent-bleed devices) across Equitrans’ operations is expected to result in an annualized reduction of more than 800 metric tons of methane.
Excluding the emissions related to the one-time incident at our Rager Mountain Storage facility, Equitrans reduced its methane emissions from operations by approximately 24% in 2022, as compared to the 2019 baseline. This decrease was primarily due to pneumatic device conversions, reduced pipeline blowdowns, and refined compressor blowdown calculations. As a result of this decrease in methane emissions from normal course operations, there was a small decrease in methane intensity for the year.
Equitrans acknowledges the seriousness of the Rager Mountain incident and continues to work to determine the extent of the potential emissions; however, we believe including any estimated effects of a one-time incident does not accurately represent the ratio of standard operational methane emissions compared to natural gas throughput. Post-incident activities are ongoing, and Equitrans expects the independent root cause analysis for the Rager Mountain incident to be completed in summer 2023, and Equitrans will implement required actions to address the findings. Further information on the Rager Mountain incident can be found in the Asset Safety and Integrity and Public Safety and Emergency Response sections of this report.
1) Includes 100% of emissions from Equitrans assets and 60% of the emission from Eureka Midstream assets; excludes MVP, MVP Southgate, and additional in-progress projects
2) The 2019, 2020, and 2021 emissions have been restated based on the change to an equity share GHG consolidation approach
3) Does not include emissions potentially associated with the one-time incident in November 2022, the investigation of which is ongoing as of the publication of this report
The pneumatic device conversion projects completed in 2021 and 2022 have been effective in reducing methane emissions, and pneumatic devices are no longer the largest source of the Company’s operational methane emissions. We believe, however, there are additional opportunities to further reduce emissions from pneumatic devices in future years. In addition, the climate working group is evaluating reduction technologies for various types of “vented” emissions, such as blowdowns, pigging, and compressor venting.
1) Includes 100% of emissions from Equitrans assets and 60% of the emission from Eureka Midstream assets; excludes MVP, MVP Southgate, and additional in-progress projects
2) Does not include emissions potentially associated with the one-time incident in November 2022, the investigation of which is ongoing as of the publication of this report
Highlight Stories
Renewable Electricity and Scope 2 Emissions
With the publication of the Company’s Climate Policy in 2021, Equitrans established targets that include a 50% reduction in Scope 1 and 2 methane emissions by 2030 and a 50% reduction in Scope 1 and 2 total greenhouse gas (GHG) emissions by 2040. Since this time, Equitrans has aggressively focused on reducing its direct Scope 1 emissions, which included the replacement of pneumatic devices and the installation of vent gas recovery units during 2022. These activities are expected to directly contribute to a reduction in methane emissions from operations. Additional information and details on the Company’s reduction efforts can be found in the GHG Emissions and Climate Change section of this report.
Equitrans is also working to reduce its indirect Scope 2 emissions, which are emissions related to purchased utilities, such as electric generation and heat. One method of aiding in the overall reduction of indirect Scope 2 emissions is through the purchase of certified renewable energy credits or RECs. Each REC is a certificate that corresponds to the environmental attributes of electricity that is generated from a zero-emissions renewable source and delivered to the electricity grid.
For the year-ended 2022, Equitrans purchased and retired 35,000 Green-e Energy certified RECs for its operations. These purchased RECs represent 35,000 megawatt hours (MWh) of generated renewable energy, which in this case was from wind energy generated in Oklahoma and delivered to the corresponding regional electric grid. By purchasing and retiring these RECs, Equitrans is taking credit for the renewable energy generated and ensuring that it is not accounted for elsewhere in the country. By purchasing these certified RECs, Equitrans was able to account for 100% of its purchased electricity through the supply of zero-carbon renewable energy, as related to its indirect Scope 2 GHG emissions.
Inspiring the World to Reuse
As we broaden our sustainability investments, we are especially proud of our partnership with Fill It Forward, an organization whose mission is “to inspire the world to reuse” by focusing on the elimination of single-use waste, such as plastic bottles and bags. In 2021, Equitrans partnered with Fill it Forward as a means of engaging and educating employees, while at the same time elevating our many ESG (environmental, social, and governance) initiatives.
In late 2021, we launched our Fill It Forward campaign with a custom holiday gift box for employees that included reusable tote bags and bottles with individual ‘scan tags’ that acted as a re-use tracker. When the tags were scanned, the data was automatically uploaded to Equitrans’ custom group on the Fill It Forward app and was used for tracking our collective impact, such as waste diverted, emissions saved, and how much ocean pollution was prevented.
Along with helping to eliminate waste, there was a charitable component to our Fill It Forward campaign. Each employee scan unlocked a $1 donation for every reuse, which contributed funds to our chosen charitable organization — DigDeep’s Appalachia Water Project. The funds collected were used to provide clean drinking water through the installation of meter-to-home water lines for families in southern West Virginia who currently have unsafe, limited, or no water at all. Our goal was to generate 10,000 scans and raise $10,000 for the Appalachia Water Project, and we were thrilled to have reached our goal roughly six months into the campaign. In addition, as part of Equitrans’ annual holiday giving initiatives, we made a separate donation of $20,000 to the Appalachia Water Project.
Thanks to the efforts of our employees — Equitrans was the proud recipient of Fill It Forward’s Changemaker Award for 2022. This unique ESG-focused campaign was a means of engaging and educating employees, while also elevating our sustainability efforts. Together with Fill It Forward, we believe that the simple act of reusing is the first step towards creating a sustainable mindset for all generations — and as an added benefit — being able to connect families with access to safe water will ensure the health and success of communities for years to come.
Equitrans Midstream’s Impact
19,968.42
lbs of emissions saved
617.58
lbs of waste diverted from landfill
11,734.02
kwH of power saved
123.52
lbs of ocean pollution prevented
20,586 total reuses
Source: Statistics calculated by Fill It Forward, as of year-end 2022
Productivity … Redesigned
As the world continues to adapt and evolve, companies are re-evaluating their management approach and taking into consideration the individual needs and circumstances of their employees to create work-life harmonization. With the implementation of person-centric leadership practices, Equitrans took the opportunity to redesign how we operate, improving performance and engagement and increasing our ability to compete for talent.
In early 2020, Equitrans began to recognize the benefits of a flexible workplace model. We initiated a deeper dive into the concept by soliciting survey feedback from office-based employees regarding their preferred ‘workplace persona’ preferences (anchor, flex, and remote). Today, we have fully embraced a ‘person-centric’ work environment, which takes into account the physical, cognitive, and emotional needs of employees and encourages them to find the best integration between their work and personal lives. With this approach, work is no longer about where an employee is located, but about the actual work an employee does. Importantly, employees are evaluated on work produced, without consideration to where or how they worked.
Rather than conforming to legacy practices or location constraints, Equitrans’ person-centric work model is defined by flexible work experiences, intentional collaboration, and empathy-based management. For our field-based employees, who are primarily required to work onsite, we rolled out flexible work guidelines to demonstrate our commitment to our person-centric work approach. Upon implementation of this new work model, roughly 44% of employees are working remotely, 25% split their time between working remotely and at an Equitrans location, 31% work from an Equitrans location full-time, and less than 1% work part-time.
We expect our person-centric model will continue to improve employees’ satisfaction and retention, as well as help to expand our talent pool. Since implementing our workplace personas, the number of employees working in other U.S. locations has increased, and we have been able to improve gender diversity. As part of our new work model, we periodically conduct employee surveys and focus groups to obtain feedback, using the results to adjust our workplace practices, as needed.
Office-Centric vs Person-Centric Work Design
Office-Centric
Person-Centric
Provide consistent work experiences to deliver equality of experience
Provide flexible work experiences to deliver equality of opportunity
Enable serendipitous collaboration to deliver innovation by chance
Enable intentional collaboration to deliver innovation by design
Drive visibility-based management to deliver performance by inputs
Drive empathy-based management to deliver performance by outcome
Enhancing Methane Monitoring
In January 2023, Equitrans announced its status as a founding member of the newly formed Appalachian Methane Initiative (AMI), a coalition of regional natural gas operators committed to further enhancing methane monitoring throughout the Appalachia Basin and facilitating additional methane emissions reduction in the region. The AMI coalition was formed ‘for the purpose of establishing and effectuating a methane monitoring, reporting, and mitigation network throughout the geographic area known as the Appalachian Basin.’
AMI’s efforts are intended to promote greater efficiency in the identification and remedy of potential fugitive methane emissions from operations in the Appalachian Basin through coordinated satellite and aerial surveys on a geographic-basis as opposed to an operator-specific basis and taking into account advanced methane monitoring and reporting frameworks. Additionally, the coalition will seek to coordinate and share best practices in mitigating methane emissions from natural gas operations, including production and midstream, and collaborate on activities and monitor results through transparent, publicly available reporting.
For much of 2023, AMI is focusing on developing and implementing a pilot monitoring program to cover select areas of interest within the Basin’s major operating footprints, with the goal of working to develop and implement a full-Basin monitoring plan in 2024.
As part of AMI’s official launch,a news release was issued by the coalition’s founding members. We believe our membership in AMI will support our ongoing methane reduction efforts and complement our many ESG initiatives, and we look forward to working with other coalition members on advancing AMI’s initiatives.
Our Bees Are All The Buzzzzz
At Equitrans, there is a clear tone that begins at the top — sustainability is critically important to the world we live in and is also essential to the future growth of our Company. In 2023, E-Train celebrated Earth Day with the kickoff of a two-year sustainability partnership with Alvéole. Alvéole focuses on bee-friendly communities for greener cities by installing honey bee hives at business locations across the world to foster environmental awareness and educate communities on the importance of creating sustainable bee populations. In fact, according to the U.S. Dept. of Agriculture, honey bees help to produce one-third of our food supply by pollinating $15 billion worth of crops in the U.S. each year, including more than 130 types of fruits, nuts, and vegetables.
Through our new partnership with Alvéole, E-Train is hosting and supporting two honey bee hives at each of our Canonsburg, St. Clairsville, and Waynesburg offices. The hives were installed in late spring, and the bees have begun to collect nectar and pollinate thousands of flowers and plants. With the help of our assigned Alvéole beekeeper, the hives will become established, and the bees will re-emerge every spring to pollinate flora to grow food and produce E-Train’s own locally sourced honey.
Equitrans and Alvéole also established “MyHive” microsites for each of E-Train’s office locations. The MyHive sites are located on Equitrans’ intranet, and employees can access the sites at any time to find educational honey bee information and receive updates on our hives. As an added benefit, Alvéole beekeepers will conduct various on-site informational events for employees, such as beeswax candle making and honey extraction sessions.
As we continue to safely and responsibly operate our network of natural gas pipelines, water lines, and compressor stations, it’s important to remember that the decisions we make today have a lasting and positive impact on future generations. On Earth Day and every day, we must hold ourselves to a higher standard by embracing our responsibility to operate in a manner that minimizes impacts on our natural resources and — above all else — we must keep safety our top priority, always.
Managing and Protecting Pipeline Integrity
Identification and management of landslide risk is a vital aspect of Equitrans’ daily work activities; however, the risk of a landslide is not limited to the midstream industry. Landslides can occur in any type of terrain, including both hills and valleys, and can be associated with any type of ongoing construction or pre-existing land disturbance. Natural factors such as rainfall and surface runoff water can amplify their frequency or severity; and left unmanaged, landslides have the potential to impact our environment. For Equitrans, this impact may include creating unnecessary strain on our underground pipelines, which are typically located in a variety of terrains as compared to our non-linear assets. To avoid unsafe situations and protect the integrity of our pipeline network, our engineering team uses a multi-faceted approach to aggressively identify and manage areas at risk for potential landslides.
To identify potential land movement near our assets, Equitrans’ engineers utilize aerial patrols, drones with photogrammetry change detection, and routine on-site inspections — or, if required, a combination of these methods may be used. In each case, we monitor our pipeline rights-of-way looking for any indication of unstable soil, such as discoloration, downed trees, or other data that could indicate a change in topography. Following a thorough evaluation of each asset location or suspected slide area by our engineering and compliance teams, we assign a priority ranking to indicate the potential for further movement and any risk to the environment or to the integrity of the pipeline.
As a final step, Equitrans pairs the geographic location data of known and suspected landslides with National Oceanic and Atmospheric Administration (NOAA) information. This analysis is done on a daily basis and allows Equitrans to identify rainfall events that could affect the stability of existing slide-prone areas and to rapidly respond and investigate when conditions change on the ground. In accordance with a defined framework that accounts for slide priority and rain severity, personnel may be deployed to conduct visual, on-site inspections. Beyond rainfall data, we also monitor temperature data to understand freeze thaw cycles and similarly deploy personnel to evaluate sites under changing conditions. Through continued use of these evaluation tools — aerial inspections, drone imaging, and manual site inspections — Equitrans remains committed to environmental and operational safety through its robust process to identify and manage potential landslides.
In addition, Equitrans launched a Light Detection and Ranging (LiDAR) pilot program in 2020 to aid in the enhanced detection of potential landslides along our pipeline rights-of-way. Today, we conduct semi-annual LiDAR flights across thousands of miles of pipeline. The adoption of LiDAR technology and utilization of our enhanced construction standards are collectively designed to improve Equitrans’ ability to mitigate landslide risk for the safety of our employees and communities, and for the benefit of our customers, investors, and the environment.
Employee Generosity — Giving Back To Our Communities
Equitrans Midstream is committed to making a difference in our communities, and theUnitedWayis just onewaywe can join together to support those in need. For our 2022 campaign, we selected theUnitedWayof Washington Countyas our primary United Way affiliate, which aligns with our Company headquarters’ location. Employees also had the opportunity to donate to theUnitedWayof their choice by selecting from otherUnitedWayaffiliates located in our primary operating states of Ohio, Pennsylvania, or West Virginia.
To jump start our 2022 United Way campaign, we held a basket raffle during our all-employee meeting and holiday celebration in Morgantown, WV. Employee teams donated 27 individual baskets, with raffle ticket sales raising more than $11,000 in donations. This was matched dollar-for-dollar by our Corporate Local Giving Program,jump-starting our 2022 campaign with a contribution of more than $22,000 to the United Way.
Through our official United Way campaign, which is conducted annually via individual, online donations, Equitrans employees pledged roughly $57,000 in individual contributions, which was matched dollar-for-dollar through the Equitrans Midstream Foundation for a total of approximately $114,000. Additional donations were made outside of our formal campaign, and, based on totals provided by the United Way of Washington County — Equitrans’ contributions totaled more than $169,000 in 2022 — making us the top contributor in their Chairman’s Award for Top 5 Workplace Giving Campaign Partners program.
Equitrans also received the agency’s Campaign Excellence Award, which is presented to a workplace giving campaign partner that puts forth extra effort in running their annual workplace giving campaign. In addition to our traditional campaign, this award was due in part to the hosting of our special to basket raffle event, which engaged all employees and included matching funds by the Equitrans Midstream Foundation and the Company’s Corporate Local Giving Program.
The United Way of Washington County’s mission is to unite people, resources, and organization to improve lives in Washington County. Through Equitrans’ support, the various programs at United Way will be funded to serve the most pressing needs in vulnerable populations within our local operating areas. Our donation is a powerful force for change, and we thank our employees for their generosity and support!
Proactive Project Outreach
Equitrans Midstream relies on proactive community engagement and feedback to foster a culture of trust, inclusivity, and transparency, and we view our projects and operations through a lens of responsibility and accountability. In keeping with this belief, environmental justice is an important component of our stakeholder outreach activities. Our Environmental Justice Policy lays the foundation of our commitment to provide for the fair treatment and meaningful involvement of all people in any public process involving our operations, regardless of race, color, national origin, or income.
It is often said that actions speak louder than words, which was the case for the outreach team working on our Ohio Valley Connector Expansion (OVCX) project. As a critical component of the project’s pre-planning phase, our team contracted the services of an outside vendor that specialized in the identification of environmental justice communities located near the project. After consulting with the FERC, the EPA, and our contracted environmental justice specialists, Equitrans extended the OVCX project’s landowner contact radius an additional 0.5 mile to maximize the outreach efforts and ensure all stakeholders were personally aware of and involved with the project details.
In addition to our land team contacting property owners and community members within the expanded radius, the OVCX outreach team conducted multiple pop-up educational meetings and community open houses; solicited pre-paid comment and suggestion cards; distributed various informational mailings; and remained engaged with the community every step of the way by responding to questions and feedback. To better understand the needs and challenges faced by those living near the proposed project, we also met with local organizations and elected officials, as well as other key decision makers. These additional, proactive measures taken by our OVCX outreach team went above and beyond regulatory requirements to ensure consistent communication and transparency throughout the project’s lifecycle.
