Building a climate resilient business, this Earth Month and beyond

This Earth Month, we are reflecting on Liberty’s approach to an increasingly prevalent phenomenon, climate change. The climate science is clear: global emissions must be halved by 2030 and reduced to zero by 2050 if we want to protect our planet and preserve a habitable environment. Simply put, humans have two choices: 1) continue emitting at our historical rates and create a world gravely different than the one we currently live in; or 2) rapidly decarbonize our economy to limit climatic changes, sustaining our beautiful environment and preserving a healthier world. Regardless, change is inevitable – whether it is a changing climate or a changing economy. The key to managing this change is understanding that we all have a role to play. And at Algonquin-Liberty, we take that role seriously. Our commitment to environmental stewardship and protecting our planet does not begin and end with Earth Month—it is rooted in our DNA every day: sustaining energy and water for life.

To demonstrate our sustainability stewardship, we’re on a mission to fully understand how our company is exposed to these inevitable changes. How are we positioned to handle a changing climate and a decarbonizing economy? How are we proactively managing these changes and ensuring that regardless of what the future holds, we remain capable and true to our purpose?

This is exactly what investors and regulators are calling on companies to do. The Securities and Exchanges Commission (SEC) and the International Financial Reporting Standards (IFRS) have all recently announced that disclosing climate impacts will be mandatory in near-term financial reporting cycles.

That is why, in conjunction with our ongoing net-zero activities, we are embarking on an in-depth climate assessment that aims to build on our Task Force on Climate-related Financial Disclosures-aligned 2020 Climate Change Report and identify how Algonquin-Liberty is impacted by climate change over the next 30 years. Relative to a changing climate, we aim to see how each of our assets will perform under various climate conditions identified in the latest Intergovernmental Panel on Climate Change (IPCC) models. This will help ensure that we are proactively planning to not only mitigate against climate risks, but also to seize the opportunities that come along with adaptation. Similarly, relative to a changing economy, we aim to see how our business model is impacted by the rapid decarbonization of the global economy, something utilities and power generators will play a central role in.

Throughout this journey of uncovering how we as a company will respond to future changes, we also need to consider our response in the context of those who may be adversely impacted. We are striving to ensure our response to these changes is as inclusive as possible. For employees impacted by changing markets, we’re actively integrating initiatives that aim to support our colleagues through that transition by exploring training, education, and redeployment opportunities. Similarly, we are actively engaging with customers and communities to develop innovative programs that build resilience to help meet the needs of our stakeholders.

Although we still have a ways to go, we continue to work through this one step at a time. We know it will take creative and inclusive solutions to solve what’s ahead, and partnership with our communities and many partners, and we remain fully committed to this vital path of action.

 From Algonquin-Liberty's Office of Sustainability to you: Happy Earth Month!