Reporting Our Sustainable Value
Social and environmental performance is just part of our business
TransAlta has been reporting on sustainability for over 25 years. In 2021, we released our sixth integrated annual report. We report our sustainability information in an integrated annual report, which combines our sustainability and financial performance. This is an industry-leading practice and TransAlta is one of few companies to do this in North America. We believe sustainability impacts should be evaluated, managed and communicated alongside our financial impacts and in turn, show their impact on financial, environmental and societal value.
Our key material ESG or sustainability data is subject to a third-party assurance through Ernst & Young (EY) to ensure its accuracy. We report on over 80 environment and social indicators.
Our reporting is guided by leading ESG reporting frameworks, including Integrated Reporting (IR), Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB) and Task Force on Climate-related Financial Disclosures (TCFD) to help inform discussion and provide context on how ESG affects our business.
In 2021, we released our sixth integrated report, which covers our financial and sustainability results in 2020. Key elements of our ESG disclosure are guided by our sustainability materiality assessment. Our materiality assessment is developed through evaluation of key sector-specific research on materiality issues and supported by internal and external engagement on key sustainability issues.
Disclosure content is structured using non-traditional capitals (including, natural, human, social and relationship, intellectual and manufactured capital) as per guidance from the International Integrated Reporting Framework. This approach ensures our investors are informed on how the management and performance of non-traditional capitals contribute to financial value.
Sustainability performance highlights for 2020 are outlined below:
- We have reduced our annual emissions by over 25 million tonnes of CO2e since 2005, which is approximately 61 per cent – the equivalent annual GHG emissions of a small country.
- Today, we are proud to be one of the largest producers of wind power in Canada and the largest producer of hydro power in Alberta — we have grown our renewable energy capacity from approximately 900 MW in 2000 to over 2,500 MW in 2020.
- Our renewable energy facilities prevented over 2.9 million tonnes of CO2e emissions in 2020 through renewable energy production, equivalent to removing approximately 630,000 cars from the road in 2020.
- We continue to increase financial value from natural or environmental capital-related business activities, while minimizing our environmental footprint and potential risk factors related to environmental impacts. Comparable EBITDA from renewable energy generation in 2020 was $353 million (2019 — $341 million).
- In 2020, SO2 emissions were reduced by 83 per cent over 2005 levels and NO2 emissions were reduced 68 per cent over 2005 levels. We continue to capture 80 per cent of mercury emissions at our coal facilities and, by the end of 2025, mercury emissions will be eliminated.
- In 2020, CDP (the global disclosure system for environmental impacts known formerly as Carbon Disclosure Project) recognized TransAlta with an A- score, ranking the Corporation among industry leaders on climate change management.
- In 2020, TransAlta formed an Equity, Diversity and Inclusion Council which developed a long-term strategy for the company, including adopting a Diversity and Inclusion Pledge which was unanimously supported by our Board and executive team.
- In 2021, we achieved a certification from Diversio for our commitment to measuring, tracking and improving Equity, Diversity and Inclusion.
- In 2021, TransAlta was once again added to the Bloomberg Gender-Equality Index — recognition of our focus on Equity, Diversity and Inclusion.
- Our Indigenous youth education target ensures ongoing Indigenous youth education support and, in 2021, we are establishing a new companywide Indigenous cultural education and awareness target.
- Our Community Investments totaled approximately $2.2 million in 2020, to community organizations like The Calgary Stampede, United Way and many more.
- In 2020, The Globe and Mail reported that we moved from a ranking of 48 to 14 in their annual Board Games. Board Games assesses the work of Canada’s largest Board of Directors against a rigorous set of governance criteria (well beyond the minimum set by regulators), covering board composition, compensation, shareholder rights and disclosure. The Board Games are undertaken by The Globe and Mail in collaboration with the University of Toronto.
- Business Model, Strategy, and Materiality
- CEO Letter to Shareholders
- Sustainability Performance Indicators and Assurance Statement
- 2020 Sustainability Targets Update
- 2021 Sustainability Targets
- Climate Disclosure aligned with TCFD
- Manufactured Capital Performance
- Social and Relationship Capital Performance
- Natural Capital Performance
- Governance and Risk Management
- Plant Summary