2023 Environmental, Social and Governance Report
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2023 Environmental, Social and Governance Report|
Environmental Sustainability
Reducing Our Emissions
Our Path to a Cleaner Energy Future
Our Path to a Cleaner Energy Future
Reducing our methane emissions is a key component of our business and environmental strategy. We support the aspiration of reaching global net-zero emissions by 2050. Our commitment is that any emissions goals or targets we set will be achievable and supported by a well-articulated, long-term strategy grounded in understanding our current emissions profile with a focus on how best to leverage our existing assets and programs.
48% Emissions Reduction

We have achieved a 48% reduction in Scope 1 CO2e emissions from distribution pipelines since 2005.

Emissions Reduction

Our Scope 1 emissions reduction goal is driven by our pipeline replacement and protection plan. We continue to evaluate opportunities for further emissions reductions across Scopes 1, 2 and 3, including improving operational practices that reduce emissions, researching opportunities to replace geologic natural gas in our system with renewable natural gas, expanding energy efficiency and education programs, and implementing sustainable building initiatives. We also are evaluating future opportunities and technologies, such as carbon capture and the utilization of low-carbon hydrogen.

Scope 1

Scope 1 emissions are direct greenhouse gas (GHG)emissions from sources controlled or owned by an organization, such as our pipelines, meter sets and fleet.

Scope 2

Scope 2 emissions are indirect GHG emissions from sources controlled or owned by an organization, such as purchased electricity.

Scope 3

Scope 3 emissions are from sources not owned or directly controlled by an organization but related to its activities. This includes emissions from our customers' use of the natural gas we provide and emissions upstream of our system.

Our Emissions Reduction Goal: Reducing Emissions from Mains and Services
ONE Gas has set a goal of achieving a 55% reduction in Scope 1 emissions due to leaks from its distribution pipelines by 2035, measured from a 2005 baseline and accounting for projected system growth. We expect to achieve this goal primarily through our vintage pipeline replacement and protection program.

Utilizing the EPA-approved Greenhouse Gas Inventory Protocol, our estimated total emissions due to leaks from mains and services in 2022 was 149,315 metric tons of CO2e, compared to 289,070 metric tons of CO2e in 2005. This 48% reduction keeps us on track to achieve our 2035 goal. Pipeline replacement helps us maintain safe and reliable operations while decreasing emissions from our systems by replacing higher-emitting pipes with lower-emitting pipes.

In 2023, we adopted a new short-term incentive pay metric tied to the execution of our emissions reduction goal, driven by our pipeline replacement and protection program. We have made steady progress since announcing our emissions reduction goal in January 2022 and remain on target to reach the goal.

In addition to our pipeline replacement and protection program, we are focused on reducing operational emissions through the implementation of advanced leak detection technology and damage prevention programs.
Pipeline Replacement (Miles)
Of the $657 million in capital investments in 2022, nearly 70% was spent on system integrity and pipeline replacement projects.

460 miles of distribution mains, service lines and transmission lines were replaced in 2022.

On average, 220 miles of vintage pipelines have been replaced per year since 2014.
Pipeline Replacement (Miles)

4,560 Metric Tons

4,560 metric tons of total Scope 2 emissions measured from ONE Gas-owned and occupied facilities in 2022.

Facilities and Sustainable Building Practices
Scope 2 emissions are indirect GHG emissions from sources controlled or owned by an organization, such as purchased electricity.

In 2022, we implemented software that allows us to calculate the Scope 2 emissions from purchased electricity in the buildings we own and occupy, which totaled approximately 4,560 metric tons of CO2e. As we better understand our Scope 2 emissions, we will be able to consider a goal for reducing those emissions.

ONE Gas has incorporated sustainability considerations into our building standards for constructing new facilities to reduce our environmental impact.

Our greener building standards include the following requirements:
– Ceiling tile – 55% recycled content
– Toilet partitions – 16.5% recycled content
– Carpet tile – 100% recycled packaging content; 46% post-industrial recycled content
– Steelcase office chairs – 88% recycled content
– Steelcase workstation components – 71% recyclable; 48% recycled content
– ENERGY STAR-certified TVs and appliances
– Hot water tanks – ENERGY STAR rating of .095-.093
– High-efficiency HVAC units – 18 SEER or better (ENERGY STAR is 14.5)
– LED lights – luminous efficiency of 85%

In 2022, we completed an interior remodel at our headquarters in Tulsa for an Education and Training Area. All applicable sustainable building practices were used in the construction of the space. Our Education and Training Area is fitted with a variety of energy-efficient enhancements, including:

Lighting Control System:
– Automated lighting system to reduce energy consumption
– Brightness sensors automatically dim interior perimeter lighting to offset sunlight

Building Management System:
– Automated thermostat control to reduce energy consumption
– Automated system improves HVAC efficiency and fresh air intake
Facilities and Sustainable Building Practices