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Message from the President and Chair
Patrick D. Daniel President & Chief Executive Officer, Enbridge Inc.
James J. Blanchard Chair, CSR Committee of the Board
Patrick Daniel and James Blanchard
We believe that Enbridge will remain one of the most sustainable corporations in the world only if we set clear targets and submit our performance to a thorough and transparent reporting process. The scorecard that follows is designed to provide readers with an accurate accounting of our economic, environmental and social performance. At Enbridge, a comprehensive system of stewardship and accountability is in place to ensure we have a strong corporate governance culture built on integrity, accountability and transparency. Because CSR performance constitutes a key indicator, every business unit has to measure its performance and meet our targets.
Financial Performance
Being a sustainable company starts with solid financial performance. Enbridge had another excellent year in 2006, delivering strong financial results and continuing its superior returns to shareholders. Our 2006 earnings were $615.4 million, or $1.81 per common share, compared with $556.0 million, or $1.65 per common share in 2005. Adjusted earnings per share (EPS) increased 9.4 per cent to $1.74, which sustains our 10-year EPS growth rate of 10 per cent. Total shareholder return last year was 14.3 per cent, with a 10-year average of 19.1 per cent, and a 53-year average of 13.3 per cent.
Protecting the Environment
Protection of the environment is of paramount importance at Enbridge. To achieve a strong environmental performance which will meet our stakeholders’ expectations we must set clear targets and goals, continually improve the way we operate, and constantly set new challenges to improve our performance. In our 2006 CSR Report, we committed to put mechanisms in place to continually evaluate the effectiveness of our environment, health and safety programs. We are proud to say that an environmental compliance audit was conducted at seven facilities in 2006 with no significant adverse findings.
Managing Climate Change
Enbridge takes the issue of climate change very seriously and is prepared to work with all levels of government and key non-government associations to ensure that the energy industry is an active participant in the development and implementation of climate change solutions. Government regulations regarding climate change mitigation must be applied across all sectors of the economy, involving both energy consumers and producers, if they are to address this issue and adopt clear climate change policies and greenhouse gas (GHG) reduction actions that make a real difference.
Enbridge is already responding to the climate change challenge in a number of ways.
First, we’ve set GHG emission reduction targets and we publicly report on our progress. Several years ago, Enbridge set a corporate target to reduce our Canadian direct GHG emissions by 15 per cent below 1990 levels by 2005. We actually exceeded that target, achieving an 18 per cent reduction. Our new target is to reduce our Canadian direct GHGs to 20 per cent below 1990 levels by 2010.
Secondly, we believe in full transparency when it comes to public reporting of our GHG emissions. We have taken a further step in this direction by expanding our public reporting in this report to include our sponsored investments in the United States.
Thirdly, we’re investing in and encouraging the use of renewable and alternative energy including wind power and new energy technology such as fuel cells. We’re involved in three wind-power projects in western Canada and one that we plan to build in Ontario. Combined, these projects will produce enough energy to meet the power requirements of more than 90,000 homes.
Meeting our Responsibility
In January 2007, Enbridge was once again named to the list of the Global 100 Most Sustainable Corporations in the World. We’re very proud of this recognition, but we also recognize the need to raise the corporate social responsibility bar. This takes on even greater importance as we proceed with more than $8 billion in pipeline and terminalling projects. This expansion, which represents the most intense capital program in the history of our company, is putting us in touch with more communities than ever before.
As a result, Enbridge’s objective to communicate with stakeholders to identify and address issues will be even more important. Key actions we have taken recently include engaging with more than 70 First Nations and Métis communities, holding a series of open houses for landowners in western Canada and developing more effective communication tools. The feature story in this report about our Waupisoo Pipeline project underlines how we interact with and respond to our stakeholders and how, every day, we are learning by practicing corporate social responsibility.
Working with our Employees
We believe that great companies are judged by what they do, not by what they say. Throughout this report, you will find examples of what we’re doing, and have done, to be a leader in the area of corporate social responsibility. And that’s where every one of our 5,000 employees plays an instrumental role.
It’s no secret that people want to work for and with companies that are environmentally and socially responsible, practice good governance, and invest in the communities where they do business. Our CSR Report is one of the most important and transparent ways our company has for communicating how we are doing in meeting our social obligations. And while our current leadership on CSR is a source of pride for us, we will continue to reach for even higher levels of performance.
 Patrick D. Daniel President & Chief Executive Officer |
 James J. Blanchard Chair, CSR Committee of the Board |
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