Governance

Supply Chain Management and Human Rights

Equitrans is committed to working with suppliers who share our values and our dedication to quality, safety, and environmental responsibility. We recognize that a sound, sustainable, and ethical supply chain is important to our operations and reputation, and we believe that seeking out a diverse supplier base provides exposure to varied perspectives; allows us to impact a wider range of communities; and makes us a more effective business by helping to mitigate potential supply chain disruptions.

 

Our Approach to Supply Chain Management and Human Rights

2-6
Activities, value chain and other business relationships

2-24
Embedding policy commitments

3-3
Management of material topics

204-1
11.14.6
Proportion of spending on local suppliers

205-2
11.20.3
Communication and training about anti-corruption policies and procedures

406-1
11.11.7
Incidents of discrimination and corrective actions taken

414-1
11.10.8
11.12.3
New suppliers that were screened using social criteria

414-2
11.10.9
Negative social impacts in the supply chain and actions taken

2-6
2-24
3-3
204-1
205-2
406-1
414-1
414-2

Equitrans supply chain includes all third-party providers involved with and connected to our Company, such as contractors, vendors, and suppliers, and we believe responsibly managing our supply chain is critical to our success. Our Core Values guide everything we do, from how we treat our employees to how we interact with the broader community. We believe in being good stewards of the environment, promoting diversity and inclusion, and operating with integrity in all aspects of our business. Therefore, we expect the same from our supply chain partners.

In early 2023, Equitrans elevated the organization’s awareness of human rights and environmental justice by launching a Companywide training program, which is mandatory for all employees and available to our contractor workforce.

We maintain a supplier base that is 99% domestic and, therefore, are required to comply with U.S. labor laws. Regardless, our suppliers are required to comply with Equitrans’ Code of Business Conduct & Ethics (Code of Conduct) and Supplier Code of Conduct, and are frequently evaluated on safety standards. Detailed information on our supply chain ethics and integrity can be found in the respective subsection below.

When selecting providers, Equitrans involves organizations from the local operating area and seeks out groups with diverse ownership backgrounds. In particular, we strive to partner with minority- and locally owned businesses whenever possible and recognize that a diverse supply chain helps to drive innovation, safety, and economic value for our minority and local communities. Additional information regarding diversity in our supply chain can be found in the respective subsection below.

Supply Chain Integrity and Ethics

Contracts for new suppliers incorporate Equitrans’ Code of Conduct and Supplier Code of Conduct to ensure our standards and expectations are clear. Our Code of Conduct details Equitrans’ standards on ethical behavior and provides resources to address any Code of Conduct questions or concerns. Mirroring Equitrans’ Code of Conduct, our Supplier Code of Conduct requires Equitrans' suppliers to confirm their commitment to a broader set of social workforce policies, including topics such as anti-corruption and discrimination.

Each year, typically during December, Equitrans sends a compliance letter to remind select suppliers of our Supplier Code of Conduct requirements. The list of supplier recipients is based on certain criteria and excludes suppliers with whom Equitrans has spent less than $10,000 annually and/or law firms that must follow their own Code of Conduct as part of their licensing. In 2022, Equitrans utilized a total of 965 suppliers and 787 of those suppliers received an annual compliance letter from our legal and compliance team.

Every three years, Equitrans' supply chain team takes additional steps to ensure our suppliers and contractors receive the most current Supplier Code of Conduct, and each supplier/contractor is required to sign an electronic acknowledgment form. In addition, Equitrans communicates policy updates to our suppliers and contractors through ISNetworld and several internal contractor liaisons. Furthermore, on an annual basis, suppliers are reminded of their commitment to honor the Supplier Code of Conduct through receipt of the annual compliance letter.

New suppliers receive a master agreement and our Supplier Code of Conduct, which outlines Equitrans’ Human Rights Policy and reinforces our expectation for ethical, legal, and socially responsible business practices. Additionally, depending on the anticipated monetary spend and scope of work, a supplier’s credit review and insurance documents may also be reviewed before work begins. These measures are designed to ensure that our contracted workers are protected and treated fairly.

In 2022, a total of 787 suppliers received the Company's annual compliance letter, reminding them of their commitment to honor Equitrans' Supplier Code of Conduct.

Anyone outside of Equitrans is able to report a suspected violation of the Company’s Code of Conduct and is able to do so anonymously if they so choose. Each of our suppliers receive information regarding how to report a suspected compliance violation, which can be done via phone using our toll-free Compliance Hotline (844-513-8109) or online via the EthicsPoint platform. When an instance of non-compliance is reported, Equitrans’ Compliance Network, consisting of leaders from our legal, human resources, and environmental teams, will undertake an investigation. The responsibilities of our Compliance Network include facilitating compliance with laws, regulations, and Equitrans’ Code of Conduct and policies.

Equitrans practices zero tolerance when it comes to compliance. Should Equitrans find a compliance issue, we work diligently with the supplier to resolve and re-establish compliance. If a resolution cannot be achieved, suppliers that are found to be non-compliant with Equitrans’ requirements are subject to immediate remedial action or contract termination. In 2022, the Company terminated one contract with a supplier due to safety deficiencies; removed two contractor employees from Equitrans projects for improper time reporting; and paused work with another supplier due to a human rights violation.

Human Rights

Equitrans Midstream has a zero-tolerance policy for any form of human rights abuse, including forced labor, child labor, and harassment or discrimination. Given the nature of our business activities within our existing operational footprint, Equitrans does not generally encounter a significant human rights risk. Regardless, this does not diminish our commitment to respect human rights in all our actions with employees, local communities, customers, and other stakeholders. We work with our business partners to ensure they share our commitment and have similarly rigorous policies and protection measures in place. Equitrans contributes to the preservation of human rights through:

  • Promoting inclusion
  • Having zero tolerance for discrimination
  • Protecting employees’ rights to form unions and collectively bargain
  • Prohibiting the use of modern slavery, human trafficking, forced labor, and child labor
  • Guaranteeing fair work hours, compensation, and benefits

In early 2023, Equitrans elevated the organization’s awareness of human rights and environmental justice by launching a Companywide training program, which is mandatory for all employees and available to our contractor workforce. Additionally, we expect to conduct appropriate due diligence to ensure we maintain our commitment to protecting human rights and will strive to create open channels of communication with anyone potentially impacted by our activities. For information regarding our commitment to human rights and environmental justice, please see our Human Rights Policy and Environmental Justice Policy.

Diversity in Our Supply Chain

Equitrans’ commitment to diversity and inclusion extends to our supply chain. As an element of our sourcing practices, 99% of our supply source is from the United States, and, in 2022, 60% of Equitrans’ total supply chain budget was utilized on local suppliers. Equitrans defines a local supplier as any materials or service provider that receives payment in one of our primary operating states of Pennsylvania, West Virginia, or Ohio.

We recognize that utilizing a diverse range of suppliers benefits the local community, as well as the viability of the overall economy, and we emphasize the inclusion and support of local suppliers, which helps us reduce our environmental footprint and gain valuable insight into the culture of our operating areas.

In 2022, 60% of Equitrans’ total supply chain budget was utilized on local suppliers.

As part of our evaluation, we also include diverse-owned organizations when feasible. Since 2018, Equitrans’ share of expenditures awarded to minority-, women-, and veteran-owned businesses has been steadily monitored and tracked, and we continue to seek opportunities to build on our existing supplier base, while establishing new relationships with diverse suppliers.

Evaluating Our Supply Chain Management

Equitrans tracks, analyzes, and reviews supply chain data on a routine basis to identify gaps and areas of improvement, and we continue to identify ways to increase diversity in our sourcing activities. The hiring and management of Equitrans’ suppliers is contingent on their ability to adhere to our Code of Conduct and Supplier Code of Conduct, as well as to applicable laws and regulations, and safety and environmental, social, and governance (ESG) standards. Through our online supplier management database, ISNetworld, suppliers must undergo an extensive onboarding process. Our supply chain and safety departments collaborate to identify appropriate grading requirements and determine Equitrans’ supplier scorecard. New suppliers must submit questionnaires, safety programs, and insurance documentation for review and are required to achieve a passing grade before we execute a master agreement or issue purchase orders.

 

In 2022, approximately 69% of our suppliers completed Equitrans’ sustainability practices survey.

All suppliers registered in ISNetworld receive questions from Equitrans regarding their approach to environment, social, and governance principles, including their associated practices and performance. Ultimately, we select third-party organizations that are able to effectively perform the required services or provide the goods sought, while also believing in and abiding by Equitrans’ Core Values and demonstrating respect for human rights. We also prioritize suppliers that focus on safety performance and compliance, diversity and inclusion, and environmental stewardship. When we work with businesses that share our values, we are able to build trust and create lasting relationships, which contribute to our long-term success and sustainability goals.

In 2022, Equitrans partnered with a third-party to collect survey data regarding our supplier companies’ sustainability programs. Approximately 69% of our suppliers completed the voluntary questionnaire, giving Equitrans more visibility into the maturity of their sustainability practices and programs. Building on this evaluation, we are developing an Equitrans-specific sustainability questionnaire for critical suppliers.

Equitrans is committed to the safety of our contractor partners, employees, and the environment, and we work to uphold our requirements by encouraging an open dialogue with our suppliers should an issue arise. We take our Code of Conduct, Supplier Code of Conduct, and safety and ESG standards seriously, and we expect all contractors and suppliers to uphold our Core Values.

Highlight Stories

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. 

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.

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

Employee Generosity — Giving Back To Our Communities

Equitrans Midstream is committed to making a difference in our communities, and the United Way is just one way we can join together to support those in need. For our 2022 campaign, we selected the United Way of Washington County as our primary United Way affiliate, which aligns with our Company headquarters’ location. Employees also had the opportunity to donate to the United Way of their choice by selecting from other United Way affiliates 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!

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

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.  

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.  

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.

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