Message From Linda Coady, Chief Sustainability Officer

Dear Reader,

Welcome to Enbridge’s 2016 CSR & Sustainability Report.

2016 was the year we announced our intention to combine with Spectra Energy to create the largest energy infrastructure company in North America, and further diversifying our asset mix for transporting, transmitting and distributing oil and natural gas, and for generating power and renewable energy.

As our combination with Spectra did not complete until the first quarter of 2017, we will be issuing two separate CSR & Sustainability Reports for 2016: this report, which pertains to the environmental, social and governance performance of legacy Enbridge assets; and another, which we will issue later in the second quarter of 2017, which will pertain to the performance of legacy Spectra assets.

Both reports will be available online in PDF formats. Due to the combination, neither will reflect the current structure, size and scope of our company. However, taken together, they provide the foundation required to begin building a combined report. In our 2017 CSR & Sustainability Report, to be released in 2018, we plan to report on the combined company.

In the meantime, this 2016 CSR & Sustainability Report on legacy Enbridge assets includes the following new features that will also be part of our combined reporting moving forward:

  • prioritization of our material sustainability-related topics into two categories: 1) Priority Areas; and 2) Areas that Enable Continuous Improvement (please see the chart below);
  • more information on our Performance Objectives related to each topic;
  • three-year summaries of the Key Performance Indicators relevant to each topic; and
  • more detailed descriptions of our CSR and sustainability accountabilities at the governance and management levels.

As always, we have included a frank discussion of our significant sustainability challenges and opportunities. We have expanded discussion of our policies, strategies and management systems that support the inclusion of local stakeholders and Indigenous communities in our projects and operations. And we have expanded discussion of how we are integrating climate and energy considerations into our capital allocation and business strategy, and into our engagement with local communities.

Readers of our CSR & Sustainability Reports in previous years will know that we have been working to improve our systems for data management to support third-party assurance of our performance data on safety, spills and releases, and GHG emissions. They will also know that we have been working to establish second-generation targets for GHG emissions reduction and energy efficiency across all of our business segments and functions.

Our combination with Spectra requires that we take a careful look at how the data systems, controls, and performance metrics across the Spectra legacy assets align with or complement the systems we have established at Enbridge. Completing this process will enable us to establish objectives that reflect our combined company and ensure the integrity of our safety and environmental data that our business and stakeholders expect.

We prepared this report using the Global Reporting Initiative (GRI) G4 sustainability reporting guidelines. In planning for our future reporting, we will also be taking other reporting frameworks into consideration. These include the Sustainability Accounting Standards Board (SASB) industry standards, the United Nations Sustainable Development Goals (SGDs), and recent recommendations from the G20 Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD). As you will see, many of our current CSR and sustainability priorities speak to priorities associated with the SDGs and the TCFD. We are reviewing them to ensure continued alignment moving forward.

I welcome your input on our sustainability reporting efforts. And I thank the many people at Enbridge who work for our company because they believe in the environmental, social and economic value that can be created when we do our jobs well. The time and talent they contribute to making this report better every year is making a difference.

Sincerely,

Linda Coady

April 2017