Our Social Performance

STAKEHOLDER ENGAGEMENT

Enbridge's stakeholders are drawn from all sectors of society affected by Enbridge's operations. They include employees, suppliers, customers, investors, government agencies, environmental groups, business partners and local communities. The time and effort we put into developing positive relationships with these stakeholders is an essential part of being good neighbours and operators in our different geographic regions. This engagement occurs in many different ways, including through:

• project consultation
• public awareness programs
• customer engagement
• relations with indigenous peoples
• discussion forums with policymakers

In Canada, voter turnout is low among young people. That is why Enbridge is a national founding partner of programs such as Student Vote that develop grassroots leadership and nurture students' ability to understand the importance of civic participation. Student Vote is a non-partisan, educational initiative that started in 2003 and is designed to inspire electoral and community participation among students under the legal age of voting. After a successful trial run in Ontario, the program expanded to include Canada's 2004 federal election. In the spring of 2004, more than 2,300 schools registered across the country and received learning materials to use during the election campaign, including posters, riding maps and ballots. With over 650,000 students participating, this was the first student education initiative undertaken in conjunction with a federal election. In November 2004, with support from corporate sponsors such as Enbridge, over 63,000 students across Alberta participated in a similar initiative, called Student Vote Alberta. Students registered their schools, set up mock polling stations and cast ballots that would later be tallied and compared with live ballots. Results were then shared with local and national media and discussed in classrooms across the province. About 60,000 students in Alberta were involved in this program during the provincial election.

PROJECT CONSULTATION

We regard discussing our project proposals at an early stage with our stakeholders as extremely important. It is vital that Enbridge and our employees ensure that stakeholders are aware of our plans and activities - including what we are doing, why we are doing it and how we plan to do it. Dialogue with our stakeholders also opens opportunities to listen and respond to concerns and suggestions. Some examples of project consultation in 2004 are provided below.

Alaska-Canada gas pipeline

When Enbridge announced plans in spring 2004 to take a leadership position in a broad coalition of commercial interests to build and operate the $20-billion Alaska-Canada Natural Gas Pipeline, an ambitious stakeholder engagement program was developed. We attended conferences and met with government officials, regulatory agencies, economic development authorities and several Aboriginal organizations in Alaska, Yukon, British Columbia and Alberta. In these meetings, we focused our efforts on better understanding stakeholder issues and raising awareness of Enbridge's track record as an experienced operator of cross-border natural gas and crude oil pipelines.

Gateway Project

Stakeholder consultation has also been essential as we continued to advance our proposal for the Gateway Project, our pipeline proposal to move crude oil and petroleum products from the Edmonton hub to the west coast of British Columbia. In 2004, we met with more than 70 Aboriginal communities along the proposed pipeline route. Because many of these communities have no experience with crude oil pipelines, our efforts were focused on informing them about the project proposal and Enbridge's business plans, as well as listening to issues and expectations they have about pipeline development.

East Texas gas pipeline expansion

Our U.S. Natural Gas Business has expanded our East Texas gas pipeline system by adding a 172-kilometre (107-mile) pipeline section. In 2004, we met with more than 60 local and state government officials and more than 500 landowners to discuss our project plans for the 36-inch intrastate pipeline. On the basis of these efforts, we successfully acquired land for the pipeline right-of-way and began project construction on schedule in late 2004. The project was completed in June 2005.

LNG project in Quebec

In Quebec, Enbridge has joined with Gaz de France and Gaz Métropolitain, Quebec's largest natural gas distributor, in proposing the construction of a $700-million liquefied natural gas terminal in the St. Lawrence River region near the City of Lévis. In 2004, the companies launched a public involvement program including presentations to municipal councils, meetings with landowners, open house information sessions and the distribution of brochures to local residences and businesses focusing on several sites. In early 2005, we presented our final site selection proposal. We will prepare an extensive analysis of the project's impacts and submit it to provincial and federal government authorities in the coming months. The public will be invited to take part in public hearings to review these studies.

PUBLIC AWARENESS PROGRAMS

Reaching out to stakeholders with targeted and planned communications is a key part of enhancing awareness of our pipelines and our company's reputation. The right outreach program can help prevent accidents, improve the response if there is an accident, and develop positive relationships.

In 2004, we distributed mailings to stakeholders along all our liquids pipelines in Canada and the United States, the Vector pipeline (a joint venture that Enbridge operates) and to over half of our natural gas pipelines in mid-continent and southern United States. During the year, we contacted more than 13,000 stakeholders along our pipeline rights-of-way in Canada and more than 580,000 stakeholders in the United States.

Our Liquids Pipelines operations increased efforts to provide more detailed information on topics of interest to landowners in Western Canada, including deep tillage activities across pipelines. In Ontario, we partnered with utilities and industry to distribute pipeline safety brochures to residences and businesses along a 72-kilometre (45-mile) pipeline corridor in the Greater Toronto Area.

Our U.S. operations joined an industry-wide effort to improve communications with local stakeholders by helping develop a new American Petroleum Institute consensus standard. The standard describes how public awareness messages - on issues like pipeline reliability, damage prevention, hazards and emergency preparedness - must be delivered, and how often.

CUSTOMER ENGAGEMENT

We operate Canada's largest natural gas distribution company and deliver gas to 140,000 business customers and 1.5 million residential customers in Ontario. Enbridge Gas Distribution is committed to providing fair and reasonable service to our customers. Customer feedback gathered through regular surveys helps gauge our performance against our commitment and adjust service where necessary.

Enbridge Gas Distribution conducts annual surveys of business customers and monthly surveys of residential customers. These surveys are used to better understand customer needs. We also discuss industry and customer issues with an Enbridge-led industry advisory council, consisting of heating, ventilating and air conditioning (HVAC) contractors, manufacturers, agents, brokers, marketers and industry associations.

During the past five years, Enbridge Gas Distribution's customer satisfaction levels have remained relatively stable. Despite the changing Ontario energy marketplace, this stability illustrates customers' continued attraction to natural gas as a reliable and safe energy product.

RELATIONSHIP WITH INDIGENOUS PEOPLES

Enbridge has a long history of dealing with indigenous communities in Canada and the United States, and of pursuing progressive relationships with these communities. Our Indigenous Peoples Policy lays out key principles for relations with indigenous peoples, such as respect for traditional ways and land, heritage sites, the environment and traditional knowledge. The policy is also designed to ensure a consistent and thorough approach to consultation and engagement with Aboriginal communities.

In 2004, Enbridge established the position of corporate manager of Aboriginal Affairs to oversee practical application of our Indigenous Peoples Policy and our company's relationships with the different First Nations and Métis communities near our existing and proposed pipeline developments. This manager provides advice to senior management and our business units to support our company's business and CSR objectives.

Guided by our policy, we are striving to build sincere and open dialogue with indigenous peoples. Much of the work during the year to support our policy was focused on northern Alberta and British Columbia, where we are increasing our presence.

As part of the consultation process in support of the proposed Gateway pipeline to link Alberta oil sands to a port on the B.C. West Coast, we engaged 70 First Nations and Métis communities in 2004. We also met with First Nations communities near Fort McMurray, Alberta to review our plans for expansions to the Athabasca pipeline system to handle future oil sands production from the Long Lake and the Surmont projects. Part of our discussion focused on opportunities for Aboriginal employment and capacity-building during construction of these pipeline facilities.

Enbridge, in partnership with the Dominion Institute, launched two national projects that create opportunities for Canadian Aboriginal writers to revisit historic events in Canada’s history. The initiative is intended to encourage all Canadians to explore the significance of these events from the perspective of First Nations peoples. The first national project announced was the launch of Our Story in early 2004, a book of short stories featuring nine leading Canadian Aboriginal authors who were invited to write about a defining moment in Canadian history and its significance for First Nations peoples. The book includes Aboriginal writers such as Tantoo Cardinal, Tom King, Tomson Highway and Drew Hayden Taylor. Copies of the book were widely distributed to government politicians, First Nations leaders and schools along our liquids pipeline right-of-way in Canada. The patron of the project was Adrienne Clarkson, the Governor General of Canada. “The purpose of the book was to focus on Aboriginal stories from points of time in history,” says Lyle Neis, Manager, Aboriginal Relations. “Stories, such as those in the book, are very valuable as a way to understanding the perspectives of our Aboriginal communities and neighbours.” The launch of the book was combined later in the year with the announcement of the Canadian Aboriginal Youth Writing Challenge, which provides an opportunity for Aboriginal youth between the ages of 15 to 18 across the country to write a story about a defining moment in history and have their voices heard. In addition to encouraging their creativity and talent, the competition and the resulting stories will help educate Canadians about their history. Winners of the challenge will be announced in September 2005.

DISCUSSION FORUMS WITH POLICYMAKERS

We look for opportunities to participate in policy discussions where we can make a relevant and meaningful contribution. During the year, we made numerous submissions to government on proposed legislation and other forums on energy industry policy. Our aim is to promote a competitive and sustainable energy industry and to find innovative solutions to current North American energy supply and demand issues.

In 2004, we participated in a variety of forums to discuss energy infrastructure issues with policymakers in Canada and the United States.

For example, almost 100 government stakeholders and leaders from utilities, power producers and groups critical to Enbridge Gas Distribution's business came together for a half-day forum the company hosted in Toronto in June. Called the Ontario Energy Forum, the event was initiated by Enbridge Gas Distribution, in close consultation with the Ontario Minister of Energy's Office, to exchange views and enhance the ability of provincial government members to communicate with constituents on energy-related matters. Similar outreach efforts are planned for 2005.

Woodrow Wilson forums highlight Canada-U.S. energy issues

During the year, Enbridge sponsored two forums, one in Calgary and another in Washington, D.C., as part of an initiative of the Canadian Institute of the Woodrow Wilson International Center for Scholars. These events helped to profile energy infrastructure issues among key policymakers in Canada and the States.

The Calgary event promoted continued cross-border collaboration on energy issues and a vision of North America as an integrated business community. The Washington event, which featured presentations and round table discussions by senior American and Canadian government officials and energy industry representatives, highlighted the need for increased efficiency and coordinated action by governments, regulators and industry on North American energy projects. As a result of the forums, Enbridge President and CEO Pat Daniel used subsequent speaking engagements to issue a "call to action" to keep continental energy infrastructure issues at the top of the political agenda in Canada.

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At Enbridge, there are no dividing lines between good business practices and being a responsible company — one that is ethical, is a steward of the environment, is safe, engages its stakeholders and is attentive to social needs.

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