Enbridge’s ESG goals: ‘It’s about performance, not promise’

Enbridge’s Al Monaco responds to BlackRock chairman Larry Fink’s 2021 letter to CEOs

Climate risk is investment risk, according to the world’s largest asset manager—and a global pandemic has brought that into sharper focus than ever.

In recent weeks Larry Fink, the chairman and CEO of BlackRock Inc., published his 2021 letter to CEOs, declaring that the COVID-19 pandemic of 2020 “has presented such an existential crisis—such a stark reminder of our fragility—that it has driven us to confront the global threat of climate change more forcefully.”

At Enbridge, we believe climate change requires serious solutions. We’re committed to delivering the energy mix of today and tomorrow—and helping to meet those needs in ways that are ethical, sustainable and socially responsible—en route to achieving company-wide net-zero emissions by 2050.

In short, we are in lock step with BlackRock’s views.

“From my perspective this year’s letter (from BlackRock) again hits the mark and is consistent with our values and business strategies at Enbridge,” wrote Al Monaco, Enbridge’s President and CEO, in a Feb. 22, 2021 letter to BlackRock’s chairman.

“We also know that setting aggressive ESG (environmental, social and governmental) goals is not enough. Performance matters. That is why the accelerated goals we put in place—on everything from safety to greenhouse gas emissions and diversity of our workforce—are linked to executive and employee compensation,” he added.

In his missive to CEOs, BlackRock’s chairman spoke of private-sector companies supporting non-profits, innovating to keep food and essential services flowing, and responding to calls for racial equality during a tumultuous 2020—“and strikingly, amid all of the disruption of 2020, business moved forcefully to confront climate risk.”

Mr. Monaco, in his letter to Fink, outlined Enbridge’s sustainability steps in 2020:

  • Our strict adherence to safety, continued delivery of energy as an essential service, and corporate citizenship focus on the areas of greatest community need in the face of COVID-19.
  • Our work in discovering lower-carbon solutions as we create a bridge to the energy future.
  • Our Net Zero by 2050 commitment as a meaningful next step in our GHG emissions reduction journey.
  • Our focus on building a more diverse, equitable and inclusive culture.

“Like you and your team at BlackRock,” wrote Mr. Monaco, “Enbridge is driven by a belief that how we do things is as important as what we do.”