Our intent is always to comply with all legal and regulatory requirements, including those pertaining to employment practices and business conduct. We take steps to ensure that our employees conduct themselves ethically in business dealings, and we are committed to preventing all forms of corruption within the scope of our business and operations.
Our Ethics & Compliance Program is designed to minimize, to the extent possible, incidences of non-compliance and to ensure that our employees and contractors conduct their work ethically, legally and responsibly. It is also intended to minimize the impact of unethical behavior on our corporate reputation, operations and financial performance; provide internal consistency in the application of compliance and ethical standards; and demonstrate our commitment to corporate social responsibility. The program establishes the accountabilities and responsibilities for our personnel, and addresses internal investigations, audits, self-reporting and discipline. As part of the program, we routinely monitor compliance and take steps to improve our ethics and compliance culture through adherence to established policies and procedures.
The oversight of our Ethics & Compliance Program is a shared responsibility of the Audit, Finance & Risk Committee of our Board of Directors, our Executive Leadership Team and our Chief Compliance Officer. Our Chief Compliance Officer is responsible for Enbridge-wide oversight of our overall state of compliance and for enhancing our culture of ethics and integrity. At least once per year, our President & Chief Executive Officer communicates to all employees and provisioned contractors about the importance of ethical behavior through our mandatory training program on the Enbridge Statement on Business Conduct.
Our Ethics & Compliance department investigates significant compliance matters, whether they arise directly from employees, as a result of incidents, in reports received from the Ethics and Conduct Hotline, or under our Whistle Blower Policy. Depending on the nature of the matter in question, our Vice President & Chief Compliance Officer may report significant events related to non-compliance, auditing matters or general ethics issues either to the Audit, Finance & Risk Committee or to the Safety & Reliability Committee of our Board of Directors.
The Internal Audit department helps accomplish our objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of our governance and risk management processes and internal controls. It is responsible for evaluating the efficiency and effectiveness of our compliance with laws, regulations, policies, procedures and contracts.
Ethics & Compliance Policy: Through our Ethics & Compliance Policy, we provide a comprehensive system of compliance stewardship and accountability in all of our day-to-day operations. The policy outlines the structure for our Ethics & Compliance Program.
Enbridge Statement on Business Conduct: Following the merger with Spectra Energy in early 2017, we updated our comprehensive Statement on Business Conduct and communicated it across the enterprise in September 2017. The Statement includes provisions and references to various internal Enbridge policies and applies to Enbridge Inc., its subsidiaries and controlled entities, as well as their directors, officers, employees, consultants and contractors in all countries where Enbridge conducts business.
Whistle Blower Policy: Our Whistle Blower Policy is designed to protect the integrity of our accounting, auditing and financial control processes. Under the policy, employees and outside parties can confidentially report concerns about financial or accounting irregularities or unethical conduct to the chair of the Audit, Finance & Risk Committee of our Board of Directors. Complaints can also be made anonymously through our Ethics and Conduct Hotline.
Political Contributions Policy: In 2017, we introduced a new, comprehensive Political Contributions Policy that supports our commitment to the highest standard of ethical conduct in our involvement in the political process in all jurisdictions.
We are committed to the principle that no retaliatory action may be taken against anyone who raises non-compliance issues in good faith. Our adherence to this non-retaliation principle is a key component of a strong culture of compliance, and ensures that employees, provisioned contractors and the public can be confident that we will fairly and impartially review and address all issues.
As a condition of employment, employees are required to complete an online Statement on Business Conduct training course. The online training requires employees to certify their compliance with our Statement on Business Conduct during the previous calendar year. Additionally, employees are also required to disclose any actual or potential conflicts of interest.
In 2017, Ethics & Compliance Department personnel provided in-person training sessions and presentations on compliance-related issues—including anti-corruption and bribery, anti-trust issues and prevention of privacy breaches, so as to prevent all incidents of these issues—to hundreds of employees and provisioned contractors.Reporting Allegations of Non-compliance
We review these reports to the extent possible to address and resolve issues raised and confirmed as breaches with our policies or with the law.
In 2017, we received a total of 140 reports through the following channels:
Of those reports, 89 were anonymous. Some of these reports contained multiple allegations. From the 140 reports we received a total of 238 allegations, as follows:
|Financial Concerns||Human Resources||Misappropriation or misuse of assets||Policy and Process Integrity||Safety|
Our intention is to work according to all external regulations and laws to prevent fines, penalties and violations (monetary and non-monetary).
We are reporting all of our fines, penalties and violations (monetary and non-monetary) in excess of CAN$10,000 and US$10,000 (depending on the country in which they occurred).
In 2017, we remitted the following fines, penalties and violations:
|Pipeline and Hazardous Materials Safety Administration (PHMSA) U.S.||In April 2017, Enbridge paid a Civil Penalty of $33,100 concerning a Notice of Probable Violation/Compliance Order resulting from a 2015 records audit where welding issues were identified by PHMSA inspectors. The audit was associated with the BP Amoco Pipe Modification Project performed at the Cushing Terminal.
Enbridge also paid a Civil Penalty of $65,500 in January 2018. The penalty resulted from a PHMSA inspection from 2015 on the Algonquin Gas Transmission LLC and Hubline Pipelines. The penalty is based on two violations of PHMSA regulations related to external corrosion control monitoring and atmospheric corrosion control monitoring.
|Texas Commission on Environmental Quality (TCEQ) U.S.||Enbridge paid a penalty of $25,411 to the TCEQ in March 2017. The payment was a component of an Agreed Order resulting from a timeline challenge to the renewal of an Air Quality Standard Permit, and other operations representations and conduct in connection with the same permit.|
|U.S. District Court for the Western District of Michigan Southern Division||In 2016, we reached a settlement agreement, called a “Consent Decree,” which was filed with the U.S. District Court for the Western District of Michigan Southern Division. The Consent Decree was our signed settlement agreement with the U.S. Environmental Protection Agency and the U.S. Department of Justice regarding our 2010 Line 6B crude oil spill on the Kalamazoo River near Marshall, Michigan, and our Line 6A crude oil spill in Romeoville, Illinois. It stipulated that Enbridge would pay US$62 million in civil penalties, which includes US$61 million in respect of Line 6B and US$1 million in respect of Line 6A. The Consent Decree also required us to comply with a series of other measures for remediation and enhanced safety.
The Consent Decree was subject to court approval, which was obtained in May 2017. Now that the Decree has taken effect, Enbridge has paid the US$62 million fine, plus another US$5.4 million in reimbursements for environmental remediation measures.*
* In addition, the Consent Decree identified a number of enhanced safety measure that we must complete within a four-year period. These measures are, for the most part, consistent with the changes we have made to our overall approach to safety and integrity since our Marshall spill, and have largely been implemented over the past six years as part of the system-wide improvements we have made to our practices. Our compliance with the safety improvement measures specified in the Consent Decree is subject to independent verification.