HAWAI‘I GAS | 2022 Sustainability Report

2022 SUSTAINABILITY REPORT

HAWAI‘I GAS Doing the right thing. In the right way.

At the right time. For the right reasons.

About Our Report

4

Our Business

5

A Letter From Our CEO

6

Company Key Facts

8

A Brief History of Hawai‘i Gas

10

2

Our Vision 13 Our Products 14 Assesing Our ESG Priorities 18 Environment 21 Proposals For RNG And Hydrogen 23 Reducing Energy Use at Hawai‘i Gas Offices 26 Greenhouse Gas Reduction 30 Distribution Integrity Management 33

Social 34 Diversity, Equity + Inclusion 34 2022 DE+I Goals 37 Occupational Health and Safety Plan 40

Activities That Impact Our Communities 43 Support for Education and Social Programs 46 Customer Satisfaction 46 Making A Difference For Hawai‘i 48 2022 Employee Kudos 49

Governance 50 Policies And Governance 52 Annual Compliance Training 53

Partnering For The Future 55 Sustainability Business Forum 55

GRI Context Index 58

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ABOUT OUR REPORT Our second standalone annual sustainability report describes Hawai‘i Gas’s continued commitment to sustainability. We strive to ensure the sustainable growth of our business while keeping the well-being of our community and planet at the forefront. Central to our approach is the delivery of essential services with a strong emphasis on cost, safety, reliability and reducing our carbon footprint.

Tracking our sustainability initiatives and reporting on our progress aligns with our promise to be transparent and forthcoming with all our stakeholders.

This report, published in December 2023, covers the period from January 1, 2022, to December 31, 2022.

It highlights the progress we have made in a host of areas as well as objectives we continue to strive to achieve since publishing our first sustainability report last year.

At the end of this report, you will find a reference to the Global Reporting Initiative (GRI) standards, which we follow to ensure comprehensive and standardized reporting. These standards help us maintain consistency and comparability across our sustainability reporting efforts.

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OUR BUSINESS The Gas Company, LLC, doing business as Hawai‘i Gas, is headquartered in Honolulu, Hawai‘i, on the Island of O‘ahu. It has been the only franchised gas utility in the State of Hawai‘i since 1904. In July 2022, ownership of Hawai‘i Gas was transferred from Macquarie Infrastructure Holdings LLC to a new owner, Argo Infrastructure Partners, LP (Argo).

As an independent infrastructure fund manager, Argo seeks to derive its investment returns from responsible and sustainable investing, thus paving the way for Hawai‘i Gas to further commit to a reduction in its carbon footprint in pursuit of a clean energy future.

As part of the ownership change, Hawai‘i Gas restated its support for Hawai‘i’s clean energy goals and made commitments to: • Strengthen and accelerate our clean energy • Continue to do our part to support Hawai‘i's transformation and support further development goal of carbon neutrality by 2045. of the Hawai‘i Gas regulated utility clean and • Continue to maintain charitable contributions at renewable energy portfolio. $300,000 per year.

• Participate in an Integrated Resource Plan • Provide a revenue rate credit of $7 million (IRP) that examines our renewable energy amortized over a nine-year period and a minimum sources and certain incentive mechanisms level of clean energy transformation capital that may accelerate our transition to cleaner expenditures to be determined in the IRP docket. renewable sources.

• Continue our efforts to increase the production and use of renewable natural gas and hydrogen.

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Letter from the CEO

CLEAN ENERGY FUTURE A LEADER IN HAWAI‘I’S JOURNEY TO A

2022 ushered in a new era for Hawai‘i Gas. The acquisition of Hawai‘i Gas by Argo Infrastructure Partners positions the company to move deliberately forward to a carbon neutral future – for the future of our planet, the benefit of our customers across the Hawaiian Islands and for the good of the company. Climate change is upon us and Hawai‘i Gas stands with others around the state and the globe to address it head on.

Innovative technologies have defined Hawai‘i Gas for decades.

As a critical infrastructure utility in a tiny chain of islands in the middle of the Pacific Ocean, it’s our kuleana to innovate, engage best practices and find new technologies to serve our islands. Separated by thousands of miles from any other gas utility and resources, we can’t lean on other gas utilities or other states. In that spirit, Hawai‘i Gas has been blending hydrogen into the pipeline since 1974, decades before it became a favored clean energy solution. Similarly, our reuse of naphtha to create synthetic natural gas (SNG) also dates back decades. Hawai‘i Gas has also used RNG produced at the City and County of Honolulu’s award-winning Honouliuli Wastewater RNG facility since 2018 and has led the nation in blending up to 15% hydrogen. In Hawai‘i, innovating and discovering how to optimize existing resources is a necessary way of life.

Hawai‘i Gas made meaningful commitments to benefit our customers and communities as part of the company’s change of control. These commitments, detailed in this report, ground everything we do, accelerate Hawai‘i Gas’s clean energy transformation and support innovative development of Hawai‘i Gas’s regulated clean and renewable energy portfolio.

Our first-ever Integrated Resource Plan (IRP) brought together a diverse group of stakeholders to collectively chart our clean energy future in an innovative, sustainable and affordable blueprint. The IRP, now filed with the State of Hawai‘i Public Utilities Commission (PUC) and awaiting approval, provides a road map that will guide Hawai‘i Gas as technologies, discoveries and challenges come into view.

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Along with the IRP, Hawai‘i Gas moved ahead on a number of initiatives in 2022 worth highlighting, including: • Upgrading almost 300,000 therms from biogas to renewable natural gas (RNG, or biomethane).

• Continuing to pursue work to capture and upgrade more biogas flared from O‘ahu’s wastewater treatment facilities.

• Collaborating with multiple national and international stakeholders to innovate new technologies to further clean energy development.

• Partnering with Oceanit and the U.S. Department of Energy to pilot breakthrough technology to safely transport hydrogen through the U.S. Natural Gas Infrastructure.

Leading Hawai‘i Gas into our clean energy future is the honor of a lifetime. Serious, meaningful work vital to the security and prosperity of the State of Hawai‘i sits squarely with our employees, partners and customers to meet these challenges. Hawai‘i Gas is committed to make this clean energy future a reality.

Sincerely, Alicia Moy President & CEO

HAWAI‘I GAS CUSTOMERS

COMPANY KEY FACTS

90%

Residential 10% Commercial

NUMBE CUSTOMERS Utility

36,000

362

Number of Employees in 2022

1,100 m

of Gas Utility

75% Men | 25% Women

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GAS CONSUMPTION

75%

88%

of employees under collective bargaining in 2022

Commercial 12% Residential

Utility Sales (in therms)

ER OF S SERVED Non-Utility

34,000

miles

y Pipelines

33.8 million Non-Utility Sales (in therms)

26.5 million Volume (in therms)

60.2 million 9

HAWAI‘I GAS A BRIEF HISTORY OF

1904

After receiving approval from the U.S. Congress and President Theodore Roosevelt, the Honolulu Gas Company is incorporated.

1905 1948

Gas flows for the first time from Iwilei plant to residential and commercial customers in Honolulu.

New equipment installed at Iwilei plant to remove tar from wastewater discharged into Kapālama Drainage Canal.

1954

New office and demonstration building opens at 1050 Bishop Street.

1960

U.S. Patent awarded for wind-resistant “Gas-Fired Lū‘au Torch.”

1974

New plant is built at Campbell Industrial Park to produce Synthetic Natural Gas (SNG).

PRI’s pollution-free refinery and SNG plant receive the first annual Blue Sky Award from the American Lung Association.

2009 2011 2012

The effort to diversify our supply sources begins, leading a few years later to a pilot Renewable Natural Gas (RNG) Plant in Kapolei — our first attempt to develop a renewable product.

Pilot program begins to explore the feasibility of producing RNG from animal fats and plant oils.

Officially rebranded as Hawai‘i Gas – The Clean Energy Company, reflecting our vision for Hawai‘i’s clean energy future.

A hydrogen vehicle service center is built at our Kamake‘e facility in partnership with General Motors.

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2013

2014

2016

Initiated plans to import Liquefied Natural Gas (LNG) to diversify our supplies.

We are the first company to import LNG to the state for emergency backup use and for supply diversification.

Awarded a contract to produce RNG from the City and County of Honolulu’s Honouliuli Wastewater Treatment Plant.

Our Waihonu Solar Farm comes online.

Capable of supplying enough power for 1,000 homes, the 6.54 MW project is a milestone as the company expands beyond gas.

2017

State of Hawai‘i Public Utilities Commission approves installation of RNG equipment at Honouliuli Wastewater Treatment Plant.

2018 2019

2020 2021

Processing biogas from Honouliuli Wastewater Treatment Plant to produce utility RNG begins. This contributes up to 800,000 therms of carbon-negative renewable fuel annually for customers served through our O‘ahu pipeline.

Hawai‘i Gas completes its first baseline greenhouse gas inventory and submits its first ESG (Environmental, Social and Governance) GRESB (Global Real Estate Sustainability Benchmark) report.

Hawai‘i Gas joins the United Nations Global Compact Network and participates in the Ambition Accelerator.

Hawai‘i Gas releases its first stand-alone ESG Report.

2022

A new chapter begins. Hawai‘i Gas announces approval of the company’s acquisition by Argo Infrastructure Partners.

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OUR VISION Throughout its history, Hawai‘i Gas has been a pioneer in the gas utility industry.

In the 1970s, our Synthetic Natural Gas (SNG) process was developed to meet Hawai‘i’s environmental needs at the time as well as ensure the state would have a reliable energy source. Today, Hawai‘i Gas is again at the leading edge of its industry given our integration of both Renweable Natural Gas (RNG) and hydrogen into our fuel supply mix and distributing it through the utility pipeline system. Hawai‘i Gas continues to aggressively pursue cost-effective local renewable energy projects to reduce Hawai‘i’s reliance on imported oil. A key priority for Hawai‘i Gas is to integrate as much cost-effective RNG and zero-carbon hydrogen into its fuel supply mix as possible, contributing to affordability, resilience and sustainability for our customers and Hawai‘i’s communities. Hawai‘i Gas plays a vital role in Hawai‘i's energy portfolio by providing clean, reliable and cost-effective energy to commercial and residential customers. With support from Argo, we are committed to supporting Hawai‘i's clean energy and carbon neutrality goals and will continue to look toward new, innovative and economic ways to incorporate renewable energy sources while also reducing greenhouse gas emissions.

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OUR PRODUCTS Synthetic Natural Gas (SNG) Natural gas is not naturally occurring in Hawai‘i. Hawai‘i Gas produces SNG at our plant at Campbell Industrial Park by converting naphtha — a petroleum byproduct — into synthetic natural gas. Our O‘ahu facility — in operation for more than 47 years — is the only SNG plant in Hawai‘i. The production process is approximately 85% efficient, whereas electricity generation from oil-derived fuels is approximately 32% efficient. As a result, our synthetic natural gas delivers nearly three times more energy to the end-user per barrel of oil compared to electricity produced from oil. Learn more about SNG here.

In 2022, an additional 724,720 barrels of oil were avoided by Hawai‘i Gas customers on O‘ahu who used gas energy instead of electricity, which is predominately sourced from oil. This amounts to savings of $84,848,187 based on an average cost of $117.08 per barrel of fuel oil.1 Since 2000, approximately 50% of the hydrogen used to produce SNG has been from recycled water from the Honouliuli Wastewater Treatment Plant. Recycled water is combined with methane and other gases to produce hydrogen and additional methane in Hawai‘i Gas's utility processes.

1

Hawaii Revised Statutes (HRS) § 269-45, Gas Utility Companies Renewable Energy Report 1 Id.

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Hydrogen

Carbon Capture

As part of our process of making SNG on O‘ahu, we have been blending 10% to 12% hydrogen — reaching as high as 15% — and are assessing ways to further increase the proportion of hydrogen we carry.

We implement carbon capture at our SNG plant and sell the captured carbon to distributors for uses including carbonation of soda and beer and making concrete. Additionally, we have unique opportunities with respect to carbon offsets and other carbon reduction frameworks as new technologies develop in these areas.

Blending hydrogen into the existing natural gas infrastructure has benefits for energy storage, resiliency and emissions reductions. Hydrogen produced from renewable resources can be injected into natural gas pipelines and the blend can then be used by conventional end users of natural gas to generate power. However, the long-term impact of hydrogen on materials and equipment is not well understood, which makes it challenging for utilities and industries to plan for blending at a large scale.

As a pioneer in hydrogen blending in gas utility systems, we share information and resources with selected partners to advance the use of hydrogen in utility systems worldwide.

Stanford University Student Visit Students from Stanford University visited the Hawai‘i Gas SNG Plant during the summer of 2022. There, they learned how SNG is made and distributed through more than 1,100 miles of pipelines.

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Renewable Natural Gas (RNG) Hawai‘i Gas was first in the state to capture and process biogas from the City and County of Honolulu’s Honouliuli Wastewater Treatment Plant. The facility produces up to 800,000 therms of energy per year — enough gas for more than 6,000 homes¹. This is the equivalent of avoiding the need for approximately 15,000 barrels of oil and reduces greenhouse gas emissions equal to the amount produced by 400 cars annually. Additionally, since 2018 the city has generated revenue of approximately $1.85 million through its sale of biogas to Hawai'i Gas. The Honouliuli RNG Facility equipment, painted an eye-catching bright green, captures gases that are a by-product of wastewater treatment and turns them into clean-burning biomethane. The wastewater feedstock is upgraded through a multi-step process to create renewable natural gas in the form of biomethane.

Liquefied Natural Gas (LNG) LNG is transported to Hawai‘i in conventional intermodal cryogenic containers from the Continental U.S. Hawai‘i Gas is authorized by the PUC to displace up to 30% of its SNG production with LNG, which can also be renewable, to diversify its supply to utility customers on O‘ahu.

Liquefied Petroleum Gas (LPG) LPG is a generic name for a mixture of hydrocarbon gases, typically propane and butane, which can be used for the same purposes as natural gas and SNG. Because it liquefies at relatively low pressure and ambient temperatures, LPG can be transported efficiently and stored in cylinders or tanks. We operate the state’s largest LPG distribution and storage network.

Thanks to its portability, propane increases Hawai‘i's energy resilience by providing a backup source of energy during natural disasters.

Propane is also an approved clean alternative fuel under the Clean Air Act and is used in certain rural areas of O‘ahu and on the neighbor islands where there is little or no access to the utility natural gas system.

16 1

Based on average household use of 11 therms/month by Hawai‘i Gas customers.

Given our geographic make-up in Hawai‘i, Hawai‘i residents and businesses depend on propane for certain applications, which is why Hawai‘i Gas is committed to exploring ways to blend renewable energy with propane in support of Hawai‘i's clean energy goals.

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ESG PRIORITIES ASSESSING OUR

In 2022, Hawai‘i Gas conducted a materiality risk assessment, which provides a framework for Hawai‘i Gas to analyze which environmental, social and governance (ESG) topics are material to its business and stakeholders.

The assessment provides insights on which ESG topics are most important to Hawai‘i Gas and how it identifies and addresses related risks. The purpose of a materiality assessment is to determine which ESG topics have the greatest impact on the organization’s financial and operational performance, such as reputational or regulatory impacts, cash-flow disruptions, project delays, or labor or local community disputes.

The ESG topics are selected based on their specific relevance to the gas utilities industry, with reference to leading ESG industry standards, including GRESB and the Sustainability Accounting Standards Board (SASB).

The 2022 materiality risk assessment informed our ESG strategies and our efforts to align our activities with the key ESG issues identified by the assessment.

Risk Assessment Hawai‘i Gas also conducted an ESG risk assessment, which allows Hawai‘i Gas to analyze relevant risks to its operations and determine appropriate mitigation and management practices. Hawai‘i Gas evaluates its material ESG topics by gauging the relative severity and likelihood of associated ESG risks to Hawai‘i Gas to determine an overall risk rating.

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Risk Rating Framework 1

2

3

4

5

NEGLIGIBLE

MINIMAL

MODERATE

SEVERE

CATASTOPHIC

1

Low

Low

Low

Medium

Medium

2

Low

Low

Medium

Medium

High

3

Low

Medium

Medium

High

High

4

Low

Medium

High

High

Very High

5

Medium

Medium

High

Very High

Very High

RARE

UNLIKELY

POSSIBLE

LIKELY

ALMOST CERTAIN

How We Measure ESG Performance

HAWAI‘I GAS GRESB SCORES

The Global Real Estate Sustainability Benchmark (GRESB) is an industry-driven organization that assesses and benchmarks the environmental, social and governance (ESG) performance of real assets. GRESB assessments represent what investors and the industry consider to be material issues in the sustainability and performance of real asset investments and are aligned with various international reporting frameworks, including the Sustainability Accounting Standards Board (SASB), the Paris Climate and regional and country specific disclosure guidelines and regulations. Hawai‘i Gas is a GRESB participant and submits its ESG reporting through the GRESB framework.

100 80 60 40 20 0

Hawai‘i Gas significantly improved its GRESB scoring from 60 in 2019, to 68 in 2020, 85 in 2021 and 89 in 2022. We are committed to continual ESG improvement across the company, supported by our new owner, Argo Infrastructure Partners, which has participated in GRESB assessments for seven years and is committed to continuing to do so.

2019

2020

2021

2022

Continued support by Argo Infrastructure Parnters of submittal to the GRESB ESG Infrastructure Asset Assessment

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ENVIRONMENT INTEGRATED RESOURCES PLANNING In January 2022, the State of Hawai‘i Public Utilities Commission (PUC) launched a transformative initiative requiring Hawai‘i Gas to undertake Integrated Resource Planning (IRP). The goal is the creation of an actionable roadmap aligning with state energy policies and objectives while ensuring the delivery of secure and reliable utility services at reasonable costs.

The dynamic and ever-changing global, national and local energy landscapes present a unique challenge for our business, situated as we are at the end of the supply chain in the vast expanse of the Pacific Ocean. The uncertainties lie in identifying technically feasible and available resources for the future, which demands a forward-thinking approach.

To kickstart the process, an IRP stakeholder advisory group was assembled.

Comprised of more than 20 participants from state and county governments, environmental advocates, utility organizations and industry professionals, the group met more than a dozen times to explore possibilities, assess the impact on ratepayers, consider potential Hawai‘i Gas investments in technology and examine upcoming innovations.

The culmination of this extensive effort is the 2023 Hawai‘i Gas IRP Report, a comprehensive document that aims to identify short- and long-term goals and ambitious action items.

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The IRP report lays out the bedrock for the development of a resource plan and the Hawai'i Gas Action Plan. Both plans will be based on distinct potential future scenarios, each presenting a unique set of circumstances: STATUS QUO This scenario envisions no changes to the current circumstances, as Hawai‘i Gas maintains its capacity to meet projected customer demand using the existing baseload-SNG feedstock supplies from Par Hawai‘i.

TECHNICALLY FEASIBLE WITHOUT PAR HAWAI‘I In this scenario, Par Hawai‘i becomes inaccessible within various timeframes. However, Hawai‘i Gas still faces a regulatory and political landscape that pushes for increased decarbonization efforts.

TECHNICALLY FEASIBLE WITH PAR HAWAI‘I This scenario explores circumstances where Hawai‘i Gas can access current baseload-SNG feedstock from Par Hawai‘i, aligning with a regulatory and legal landscape promoting further decarbonization efforts.

MAXIMUM GREEN HYDROGEN AND RNG This scenario delves into a legal and political landscape where legislative changes may necessitate maximum renewable energy adoption. It imagines a scenario where the priority is to meet the State's energy goals promptly, irrespective of technical feasibility or cost considerations.

In conclusion, the Hawai‘i Gas IRP process is a vital step toward shaping a sustainable, resilient and forward-looking future for our utility services. By navigating the uncertainties and leveraging the expertise of diverse stakeholders, we are poised to forge a path that aligns with State energy aspirations and embraces technological advancements, leading us into a greener and brighter future.

MORE RNG OPPORTUNITIES:

“

Hawai‘i Gas is actively pursuing additional partnerships, including additional opportunities with the City and County

RNG REPRESENTS AN OPPORTUNITY TO CREATE A NEW INDUSTRY AND

of Honolulu, for new biogas resources, which could contribute additional RNG to Hawai‘i Gas's fuel mix.

In addition to biogas from landfills and wastewater treatment

DRIVE JOB GROWTH IN HAWAI‘I

plants, Hawai‘i Gas continues to assess the use of energy crops

WHILE HELPING THE STATE REACH

scalable in Hawai‘i — to produce biomethane. To minimize the

ITS CLEAN ENERGY GOALS.” — Alicia Moy, President & CEO, Hawai‘i Gas

— the only local RNG feedstock sources that are potentially cost of producing biomethane from energy crops, it is key to select an energy crop that: 1) maximizes energy production per acre of land; 2) minimizes water requirements; and 3) utilizes the most efficient pre-treatment, digester and purification technology available. In 2022, Hawai‘i Gas continued to collect scientific and market data through confidential agreements to assess the viability of energy crop projects coupled with advanced treatment and anaerobic digestion technology.

1

See Docket No. 2021-0098, Decision and Order No. 38478 filed on June 29, 2022 (Decision and Order No. 38478), at 6-7, 95-96.

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PROPOSALS FOR

RNG AND HYDROGEN In 2022, Hawai‘i Gas began developing a request for proposals for additional purchases of renewable natural gas (RNG) and renewable hydrogen. Both are necessary for the company to continue to decarbonize.

Increased use of RNG and renewable hydrogen have long been part of the Hawai‘i Gas strategic plan and are expected to play a significant role in Hawai‘i’s clean energy future and our efforts to achieve carbon neutrality.

Hawai‘i Gas has used RNG produced at the City and County of Honolulu’s Honouliuli Wastewater RNG facility since 2018 and has led the nation in blending up to 15% hydrogen into its gas mix since 1974. This long history of using both RNG and hydrogen puts Hawai‘i Gas ahead of other gas utilities in terms of diversifying its gas fuel supply and using RNG and hydrogen together in its gas pipelines.

New sources of these renewable and clean fuels will enable the company to further diversify its fuel supply and reduce its overall carbon footprint in line with the State’s climate goals.

RNG, for example, can be produced from sources such as landfills, construction and demolition waste, bio-crops, food waste and dairy farms. Renewable hydrogen can be produced using renewable electricity for electrolysis and steam methane reforming of RNG. Hawai‘i Gas is seeking proposals from local and national suppliers who can provide up to 65,000 therms of RNG or up to 2,300 kg per day of renewable hydrogen.

Together, these are the equivalent of replacing nearly all the utility’s synthetic natural gas (SNG).

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Support for a Clean Hydrogen Hub We are excited to be part of the State's application to the U.S. Department of Energy to become a regional clean hydrogen hub.

The potential Hawai‘i Pacific Hydrogen Hub (H2Hub) promises to create a thriving hydrogen infrastructure that can generate

jobs, attract more investments and diversify our economy. Contributing to the State's application for the H2Hub has been a privilege for Hawai‘i Gas and we eagerly await the results.

Integrating Hydrogen in Our Fuel Mix Hawai‘i Gas can currently handle up to 15% hydrogen in our fuel supply mix on O‘ahu, making us the leading utility in the country for hydrogen use. That said, transporting hydrogen under high pressure is a challenge for steel pipelines as it can penetrate pipes and cause brittleness.

To address this, we are collaborating with Oceanit — a Hawai‘i-based science and engineering company known for its expertise in problem-solving — to test its HydroPel technology in our pipeline network. HydroPel creates a nano-protective barrier on the interior of pipes to minimize hydrogen penetration, reduce metal diffusion and prevent pipe brittleness. It also creates an ultra-slick surface, which reduces drag and lowers the costs associated with compressing

and transporting hydrogen gas. To learn more, watch the video: HydroPel: Enabling Hydrogen Energy Transformation with Existing Natural Gas Pipelines.

While Hawai‘i Gas operates its pipelines at safe pressure levels, the risk of hydrogen embrittlement is a concern for pipeline infrastructure across the Continental U.S. With the support of the U.S. Department of Energy, our pilot project can help overcome the technological challenges of integrating green hydrogen into the natural gas supply mix. If successful, this innovation can be scaled to serve the nation's extensive 3 million miles of natural gas pipelines, accelerating the transition to a cleaner, sustainable energy future nationwide.

Participation in National HyBlend Study Hawai‘i Gas is a participant in HyBlend, an ongoing study led by the National Renewable Energy Lab (NREL) addressing technical barriers to blending hydrogen in natural gas pipelines.

The HyBlend study includes research and development for materials compatibility, techno-economic analysis and life cycle analysis that will inform the development of publicly accessible tools characterizing the opportunities, costs and risks of blending.

The HyBlend team comprises six national laboratories: NREL, Sandia National Laboratories (SNL), Pacific Northwest National Laboratory

(PNNL), Oak Ridge National Laboratory (ORNL), Argonne National Laboratory (ANL) and the National Energy Technology Laboratory (NETL) and more than 20 participants from industry and academia.

This two-year project was selected by the U.S. Department of Energy’s Hydrogen and Fuel Cell Technologies Office (HFTO) in the Office of Energy Efficiency and Renewable Energy (EERE) through the H2@Scale 2020 Cooperative Research and Development Agreement Call.

The team will receive funding of more than $10 million from EERE, with an additional $4 to $5 million in contributions from participants.

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ENERGY & WATER CONSUMPTION AND EFFICIENCY As a company, we are committed to improving our energy efficiency.

We monitor energy consumption across our operations to understand our consumption patterns.

REDUCING ENERGY USE AT HAWAI‘I GAS OFFICES As part of our effort to decarbonize our operations, we participated in the Hawai‘i Energy Incentive Program and completed an energy efficiency review at several company-owned facilities to identify areas for improvement and set out a plan for future implementation of green technology. Older lighting was replaced with energy-efficient LED lights and solar PV systems were installed at five offices across the state. Overall, we were able to save more than 4,000 kWh of electricity by replacing old lighting with LEDs.

2022 SOLAR ELECTRICITY GENERATION AT OUR SITES (in kWh)

Kaua‘i

20,571

Kamake‘e

Maui

80,000

61,714 Hilo

82,286

Statewide Total

274,194

Kona

29,623

KAMAKE‘E FACILITY ENERGY USAGE 600,000

kWh

500,000 400,000 300,000 200,000 100,000 0

2014

2015

2016

2017

2018

2019

2020

2021

2022

Calendar Year

Energy Efficiency Initiatives at Kamake‘e Office Our Kamake‘e office is part of Hawai‘i Green Growth’s Green Your Business initiative, which aims to measure and improve energy efficiency in industrial facilities and offices through upgrades, employee education and operational and behavioral changes. Since 2014, the Kamake‘e Office has reduced its energy usage from 551,253 kWh per year to 382,004 kWh in 2022, a reduction of more than 31%.1 1

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Usage increased from 286,132 kWH in 2021 to 382,004 kWH in 2022 post-Covid as employees returned to the office.

Water In alignment with our commitment to resiliency and sustainable practices, Hawai‘i Gas conducted a comprehensive water audit as an important component of our company initiatives. The audit provided a 4-year assessment of water consumption — from 2019 through 2022 — at our main facility, located in Kaka‘ako (Kamake‘e).

This evaluation focused on all aspects of our business operations relating to conservation and efficiency opportunities, ranging from irrigation controls, low-flow toilets, faucets, showerheads and cooling tower efficiencies

to new technologies and processes, to minimize the amount of water consumed onsite.

Through this analysis, we gained valuable insights into our water usage patterns, pinpointing areas of efficiency and opportunities to reduce consumption, cost and our carbon footprint. We are continually dedicated to responsible water stewardship while demonstrating our progress toward mitigating water-related impacts to Hawai‘i and advancing our corporate sustainability goals.

Waihonu Solar Farm Our commitment to help achieve a carbon neutral future for Hawai‘i includes diversifying into other renewable and clean technologies and continuing to expand our energy portfolio. Although they are a small part of our business now, they represent our commitment to seek out ways to provide our customers with the energy they need to thrive while being mindful of our carbon footprint.

current (AC) electricity for use by Hawai‘i Electric’s customers via the electric utility’s grid. A 20-year project commissioned in 2016, the farm continues to produce renewable energy to residents living and working on O‘ahu.

The Hawai‘i Gas Waihonu Solar Farm on O‘ahu is an example of our commitment. It produces a combined output of 6.5 megawatts of electricity — enough to power approximately 1,000 homes — generated by 26,232 solar modules and 13 inverters. Waihonu is situated on 12 acres of the privately owned 143-acre campus of Honbushin International Center in Mililani — land that was historically used by Dole to grow pineapple.

Waihonu Solar Farm is contracted to sell electricity to Hawaiian Electric under a power purchase agreement.

The direct current (DC) electricity generated by the farm’s solar panels is converted by onsite inverters to alternative

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GREENHOUSE GAS REDUCTION With the support of new ownership, Hawai‘i Gas continues to focus on initiatives to reduce greenhouse gas emissions. Significant progress is already occurring and is anticipated to accelerate with access to capital made possible by Argo Infrastructure Partners.

The 2019 Hawai‘i State GHG Emissions Report, published in April 2023, reveals that the energy sector at 19.44 MMT CO2 Eq. accounts for more than 88.4% of all emissions in the state. Emissions from transportation accounted for the largest share of energy sector emissions (54.9%), followed closely by stationary combustion (42.8%). Emissions from oil and natural gas systems, waste incineration and non-energy uses comprised a relatively small portion of energy sector emissions (2.2%).

There are no natural gas exploration, production, processing or transmission systems in operation in Hawai‘i. Sources of emissions in the natural gas systems category include fugitive emissions from propane and synthetic natural gas and are among

the lowest contributors to the state’s total GHG emissions, accounting for only about 0.611%.

(Hawai‘i Gas is committed to decarbonizing our fuel source and reducing our carbon footprint by investing in new sources of renewable energy, such as hydrogen and RNG.) In 2022, Hawai‘i Gas emitted 68,490 metric tons of carbon dioxide equivalent (tCO2e). Scope 1 direct emissions from sources owned or controlled

by Hawai‘i Gas accounted for 64,521 tCO2e and Scope 2 indirect emissions from electricity, steam, heating or cooling purchased for use in Hawai‘i Gas’s activities accounted for 3,969 tCO2e.

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SUMMARY OF SCOPE 1 AND 2 EMISSIONS (tCO2e) SCOPE

2022

PERCENT OF TOTAL IN 2022

Scope 1 Emissions

64,521

94%

Stationary Fuels

112

0%

On-Road Vehicles

1,946

3%

Off-Road Equipment

460

1%

Refrigerants

30

0%

SNG Plant

54,806

80%

Transmission

11

0%

Distribution

8,378

12%

RNG

(1,223)

-2%

Scope 2 Emissions

3,969

6%

Purchased Electricity

3,969

6%

Net Total

68,490

100%

HAWAI‘I GAS EMISSIONS BY GREENHOUSE GAS (MT C02e) GAS

2022

PERCENT OF TOTAL IN 2022

CO2

59,141

86.3%

CH4

9,217

13.6%

N2O

101

0.3%

HFC, PFC, SF6 and NFF3 Emissions

30

0.0%

Net total

68,490

100%

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DISTRIBUTION INTEGRITY MANAGEMENT Hawai‘i Gas conducts a distribution integrity management program (DIMP) and a bare steel renewal program to prevent leaks in our pipeline system.

The programs stem from the 2020 Federal PIPES Act that mandates system oversight with an enhanced focus on environmental protection. Investment in these robust monitoring programs helps mitigate emissions from our gas distribution system.

Water Our SNG plant uses reclaimed and recycled water from the City and County of Honolulu’s Honouliuli Wastewater Treatment Plant. From 2019 to 2020 — due in part to the slowdown in our activities during the COVID-19 pandemic — we experienced a decrease in total water discharge. However, as Hawai‘i reopened to visitors, we experienced an uptake in activity that resulted in an increase in total water discharge from 2021 (23.4 ML) to 2022 (28 ML).

WATER CONSUMPTION METRIC

UNIT

2022

Groundwater

Megaliters (ML)

28

Seawater / Brackish Water

Megaliters (ML)

0

Surface Water

Megaliters (ML)

0

Total Water Discharge

Megaliters (ML)

0

Non-compliances

Number

0

Waste In 2022, Hawai‘i Gas was a small-quantity hazardous waste generator, with most of our hazardous waste associated with equipment maintenance and repair tasks. We track hazardous waste across the full operational cycle at our SNG plant and all our employees abide by waste management procedures and applicable regulatory requirements. This allows us to ensure safe handling and disposal of hazardous waste for the health and safety of our employees and to protect the natural environment.

HAZARDOUS AND NON-HAZARDOUS WASTE GENERATED METRIC

UNIT

2022

Non-hazardous

Pounds (lbs)

12,230

Hazardous

Pounds (lbs)

1,184

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SOCIAL DIVERSITY, EQUITY + INCLUSION The strength of Hawai‘i Gas is due largely to the many backgrounds, cultures and experiences of our people.

That’s why we consider diversity, equity and inclusion (DE+I) as fundamental to our mission, vision and values and crucial to our success and growth. Our DE+I policies and procedures are intended to cultivate a workplace where everyone feels welcome, heard, included, respected and able to express their authentic selves.

Hawai‘i Gas adheres to the United Nations Global Compact (UNGC) Principles on Human Rights with respect to our DE+I focus. The principles include: • Raising awareness of DE+I among our employees, starting with our executive leadership.

• Implementing policies and procedures that support human rights.

• Requiring all employees to act in an ethical manner as responsible corporate citizens.

• Implementing policies to prohibit discrimination in hiring practices and promoting equal access to promotion and advancement.

In 2022, we launched several new training programs to help employees understand the factors that influence who we are and how we see others.

The programs include modules to become a DE+I ally and agent for change (required of all employees), new leadership mindsets to drive DE+I (for management) and other courses reflective of our commitment to create a culture of integrity, mutual respect and inclusivity.

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2022 GENDER RATIO

(Percentage of individual employees that identify as)

Gender Diversity Hawai‘i Gas is a proponent of gender diversity. We recognize that it helps companies attract and retain talented individuals while also introducing different viewpoints, ideas and market insights that result in better problem-solving and superior performance at the business unit level.

Building a diverse, inclusive corporate culture starts at the top. Of our executive leadership team, 40% are female, those being our CEO and CFO. In 2022, female employees at Hawai‘i Gas totaled 25% of our workforce.

Women: 25%

Men: 75%

Ethnic Diversity The Hawaiian Islands have a rich history of migration. Over time, it has resulted in Hawai‘i’s population becoming a blend of many cultures and made us home to one of the world’s most ethnically diverse populations. According to the 2020 census, approximately 40% of Hawai‘i residents are non-white and encompass a wide range of ethnicities, including Pacific Islander, American Indian, Alaskan Native, Asian, Hispanic, Black African and Black Caribbean.

At Hawai‘i Gas, we promote ethnic diversity to ensure our people are representative of the communities they serve.

The ethnic makeup of Hawai‘i Gas remained relatively stable from 2021 through 2022. Our largest ethnic group of employees are of Asian descent, followed by those claiming two or more ethnicities, then Native Hawaiians or Pacific Islanders.

HAWAI‘I GAS ‘OHANA

by Ethnicity in 2022

Asian: 43.47% Two or more ethnicities: 23.4% Native Hawaiian/Pacific Islander: 18.24% White (Non-Hispanic): 8.81% Hispanic/Latino: 5.17% Black/African American: 0.3%

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DE+I GOALS 2022

Our DE+I goals are focused on three principles.

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02

Creating a Culture of Diversity, Equity + Inclusion Developing a culture of DE+I requires building a company that reflects diversity and equity at all levels and learning from each person’s individual strengths. We look to employees across our company to gain insight into a diverse range of perspectives, experiences and expectations. What we learn enables us to develop plans to improve our communication with employees, earn trust in leadership and manage change more effectively.

Employee Engagement

THE HIGHEST-RANKING SURVEY RESPONSES INCLUDED:

Companies that engage with and support their employees also have better hiring and retention rates and higher productivity. We continued our engagement journey from 2021, and distributed our 2022 survey aimed at identifying areas where employee engagement can be improved. In 2022, 68% of employees responded to the survey, a 21% increase over the previous year.

"I am proud to work here." " The people I work with most closely are committed to producing top quality work."

"I love the people I work with."

OPPORTUNITIES FOR IMPROVEMENT INCLUDED: "We effectively manage change in our organization."

The information collected from the 2022 survey aligns with the 2021 survey. While there was a slight improvement of 2% in 2022’s overall survey score, we remain committed to continuing to enhance employee engagement for the company’s future, continued success.

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" If I contribute to the organization's success, I know I will be recognized." " When the organization makes changes, I understand why."

Investing in Our People We are working to attract a diverse workforce at all levels of our company. One way we do this is by integrating DE+I into our recruitment practices and following proven talent acquisition and management initiatives.

We are also developing recruitment and hiring strategies that attract more female applicants to roles traditionally dominated by men. Promoting more women to senior leadership positions will also help ensure a more balanced representation.

Cheryl Lien-Fu‘a is the epitome of what our efforts are all about. Cheryl joined Hawai‘i Gas out of college as a meter reader. Today, she manages an entire Hawai'i Gas facility. Her job is demanding but rewarding and she hopes to inspire the next generation of leaders in the energy industry. You can watch her story here. If you are interested in a career in Hawai'i's energy future, learn more at hawaiigas.com/careers.

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WAVE (Women Are Valuable Energy) WAVE is our first employee resource group (ERG). ERGs are essential in fostering a diverse and inclusive workplace and provide a supportive environment for employees to connect, grow and contribute to the company's success.

Formed in 2018, WAVE is a forum created to support and empower women within the company and the broader community through education and training, which have been proven to contribute to success and advancement in the workplace.

WAVE seeks to: Quality Jobs and Careers

• Empower women and promote gender equality and inclusivity.

Hawai‘i Gas is participating in Good Jobs Hawai‘i, a coalition of businesses, educators and community partners working to help people in Hawai‘i get high-quality jobs and careers while ensuring employers meet their needs for a skilled, local workforce.

• Offer various professional development opportunities for women to enhance their skills and advance their careers.

• Facilitate networking events and forums

One of 32 workforce initiatives awarded funding nationally through the American Rescue Plan Act, Good Jobs Hawai‘i is focused on transforming Hawai‘i’s workforce in four in-demand industries — healthcare, IT, clean energy and creative industries. The funding will expand sector partnership employer collaboratives, fund training programs in the University of Hawai‘i Community College system, provide jobseekers with much needed support services, and connect skilled, local workers with quality jobs in participating organizations.

to connect women at Hawai‘i Gas with other professionals, leading to career growth and personal support.

• Engage in community service and volunteer activities to give back to the community.

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Environmental Health and Safety Safety is our top priority. The Environmental Health and Safety (EHS) Department is dedicated to safeguarding the well-being of our employees, communities and the environment. Our EHS Department plays a pivotal role in maintaining the highest standards of safety, compliance and environmental stewardship at Hawai‘i Gas.

each year and internal safety and compliance audits to ensure safety policies and compliance procedures are working effectively.

Process Safety (PSM) and Risk Management Program (RMP) regulations apply at our SNG facility.

A dedicated safety management professional works on-site at the facility to ensure the safety of our plant operators and the surrounding community.

Our EHS team continuously identifies, assesses and mitigates risks to ensure that every aspect of our operations is carried out with the utmost focus on the well-being of our employees, contractors and the public.

At Hawai‘i Gas we track both lagging and leading safety metrics. Lagging and leading indicators allow Hawai‘i Gas to continually assess and improve safety performance and helps to prevent incidents and continuously improve our safety processes.

The EHS Department conducts a range of Occupational Health and Safety training sessions

LAGGING AND LEADING HEALTH & SAFETY METRICS At Hawai‘i Gas, we use several common lagging (ORIR, LTIFR, DLFR) and leading (Near Misses, Safety Observations, Safety Training Completed) safety metrics to evaluate the safety performance of our business. The primary safety metrics are shown in the tables below.

2016

2017

2018

2019

2020

2021

2022

ORIR

1.53

4.12

1.79

2.39

1.76

2.06

0.86

LTIFR

0.31

2.06

1.19

0.90

0.59

1.71

0.40

DLFR

55.02

81.44

91.58

63.71

67.91

22.16

12.31

2016

2017

2018

2019

2020

2021

2022

Safety Observations %

87%

82%

84%

81%

85%

92%

89%

% Safety Training Completed

89%

84%

86%

90%

97%

90%

99.4%

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OH&S Risk Management and Incident Response Plan We take Environmental and Social Responsibility very seriously at Hawai‘i Gas and have an Occupational Health and Safety (OH&S) risk management and incident response plan that guides our actions. We exercise environmental responsibility to protect natural resources and social responsibility to manage the impact of our operations on communities, customers, employees and investors and to protect property belonging to our customers that has been entrusted to our care.

We exercise OH&S responsibility by managing health and safety impacts affecting employees who work in our facilities or who are delivering our products and services to our customers

and customers or other individuals who are visiting our facilities. We conduct due diligence before making new investments and manage environmental, social and OH&S risks during construction and operation of our facilities.

We have environmental and waste policies for our employees to minimize environmental impacts and have put in place an environmental management system consisting of environmental standards and permits, administered by our Environmental Health and Safety (EHS) Department. At our Synthetic Natural Gas (SNG) plant, we use reclaimed and recycled water and track water usage and the management of hazardous waste, disposed using specialist contractors.

Specific Policies and Training for EHS We have developed specific Environmental representative, shall coordinate and Health and Safety (EHS) policies and approve all work activities related training on: to Asbestos Containing Materials (ACM) including: Lead: Any employee who may be occupationally exposed to lead will be • Ensuring employees are trained informed regarding the most important to identify and report any ACM that safety concerns and procedures related has deteriorated in a manner that to lead exposure. Each employee who is may result in fiber release. subject to exposure to lead at or above • Being knowledgeable about practices the Action Level, or for whom the possibility and procedures for asbestos of skin or eye irritation exists, will participate management and maintaining an in an annual training program. appropriate level of training.

Asbestos: The EHS Manager serves as We have implemented a risk management the Asbestos Program Manager for all system for specific parts of the company.

Hawai‘i Gas operations. The Asbestos Policies and procedures for EHS follow Program Manager, or their designated ISO 9001.

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Pro-Active Safety In 2022, Hawai‘i Gas began to focus more on proactive safety activities to prevent injuries and incidents. We are developing new key performance indicators that will be rolled out in 2023 with a focus on four leading safety indicators: safety observations, near misses, hazard observations and safety wins. Another focus has been on proactive injury management. We quickly address injuries with onsite first-aid providers and then have those providers follow-up immediately following the injury to ensure employee’s get proper care so injuries do not escalate into avoidable more serious injuries.

One Call Program – Call 811 Before Digging Construction or excavation work can inadvertently damage pipes and release emissions that are harmful to the environment and people. To mitigate the risk, Hawai‘i Gas is part of the Hawai‘i One Call Program, which enables residential and commercial property owners to dial 811 before doing any digging and have Hawai‘i Gas check the work location for buried gas lines.

Hawai‘i Gas responded to 8,267 One-Call requests in 2022, an average of 22 per day. That number was down slightly from 8,532 requests in 2021.

Excellence in Safety Award The Hawai‘i Gas Excellence in Safety Award is awarded to safety leaders who strive to keep our Hawai‘i Gas ‘ohana, our customers and our community safe. This award honors employees who have displayed exemplary dedication to safety and proper training of the workforce. Winners are nominated by their peers.

Our 2022 winner, Derick Kekona, has shown consistent leadership for more than four years as a member of the SNG Plant’s instrumentation and electrical team as well as in other areas of operation.

At least twice in 2022, Derick's situational awareness helped prevent potentially dangerous safety issues during emergency situations when he noticed fatigue overtaking the tech teams on two different repair projects and sent them home to rest rather than risk creating an unsafe work environment.

Our hats are off to Derick, who knows to put worker safety first and foremost in decision-making.

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Derick Kekona

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OUR COMMUNITIES ACTIVITIES THAT IMPACT

The desire to be a force for good in Hawai‘i has been a priority for many years. We support communities statewide through partnerships with local nonprofit organizations whose missions are to improve the overall quality of life of residents. We also work with local charities and sponsor events that enhance the vitality of our neighborhoods.

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HAWAI‘I GAS KŌKUA GIVING The Kōkua Giving program provides financial assistance to nonprofits and community groups engaged in activities related to education, environmental conservation, cultural preservation and social services.

Hawai‘i Gas values community involvement and seeks to make a positive impact by investing in projects aligning with our mission and values. There are three main program areas: Corporate Giving and Sponsorships Giving is focused on support for organizations and events aligning with our top businesses, which include the food industry, travel and tourism, industrial and construction, education, hospitals, and organizations dedicated to conservation.

Community Engagement Our community engagement encourages employees to become directly involved in their communities through volunteerism at various events and activities supported by Hawai‘i Gas. Employee Matching Program When a Hawai‘i Gas employee makes a personal donation to an eligible nonprofit organization, Hawai‘i Gas matches the employee's contribution with a corresponding donation up to $500. The matching amount is typically equal to the employee donation, effectively doubling the impact of the employee's charitable gift. By empowering and incentivizing our employees to give back to the community, we amplify our positive impact on various charitable projects and causes.

IN A LEAGUE OF THEIR OWN On September 8, 2022, a grand celebration

Blangiardi presided over a special ceremony,

and parade was held in honor of Honolulu’s

extending his heartfelt congratulations to the

2022 Little League World Series Champions.

team. The festivities grew to include various

The event featured a vibrant procession with

local restaurants and businesses, who treated

marching bands, firetrucks, local baseball

attendees to complimentary food and

teams and others all uniting to celebrate the

giveaways. Hawai‘i Gas was also on hand to

remarkable achievement of the Honolulu team.

pay tribute to these deserving young champions, firing up our Cruisin’ Cooker grill and serving

The parade wound its way through downtown

up approximately 1,000 hot dogs with chips to

Honolulu, culminating in a festive gathering in

all who joined in the celebration.

front of Honolulu Hale. Honolulu Mayor Rick 44

A DAY ON THE LAND In the midst of Maunalua’s dense residential development, highrise condominiums and a bustling shopping center, lies a cultural treasure tucked away in plain sight. Once slated for development, Hāwea Heiau and Keawāwa Wetland Complex is now owned for community, by community. In 2014, the Trust for Public Land, Livable Hawai‘i Kai Hui and the community safeguarded these lands in perpetuity for generations to come.

Hāwea offers treasures at every turn: petroglyphs, a spring, a heiau, traces of house structures and agricultural terraces, and one of the oldest niu (coconut) groves on O‘ahu. Native wildlife thrives here, including the endangered ‘alae ‘ula (Hawaiian moorhen), ‘auku‘u (black-crowned night heron) and pinao (Hawaiian dragonfly). We welcome your staff and families to join us for a day of learning and mālama ‘āina. Volunteers will help care for the ‘āina by removing invasive plant species, planting native species and more!

SUPPORT FOR ALOHA UNITED WAY Every year, the Hawai‘i Gas ‘ohana comes together to support the AUW mission through various fundraising events that will ultimately assist families facing food insecurity, homelessness and other financial hardship. In 2022, $56,970 was raised under the banner of Change Tomorrow Today.

PLASTIC-FREE JULY The Hawai‘i Gas Sustainability Committee and the Australian Consulate-General in Honolulu teamed up and took on the Plastic-Free July challenge aimed at reducing plastic waste. Our employees were challenged to find alternative and reusable replacements for the plastic products they use every day and continue using them for a day, a week, a month or permanently.

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SUPPORT FOR EDUCATION AND SOCIAL PROGRAMS Hawai‘i Gas actively supports a host of community initiatives. Among these are: Culinary Scholarships Awarded each year to culinary students in the University of Hawai‘i Community College System.

Hawai‘i Regional Science Bowl A STEM competition for young learners.

‘Ewa Weed and Seed Cooking Program A community initiative promoting sustainable agriculture, environmental awareness and healthy cooking practices through education about local plants and cooking workshops incorporating locally sourced ingredients.

Hawai‘i Gas also supports academic units at the University of Hawai‘i that have a positive impact on the community and promote workforce development in key industries.

These include: UH College of Engineering Hawai‘i Gas offers financial contributions and provides grants that help fund research, scholarships and various academic programs within various engineering disciplines.

UH School of Travel Industry Management Hawai‘i Gas offers scholarships, sponsors educational events, provides mentorship opportunities and participates in career development programs.

CUSTOMER SATISFACTION To better respond to the needs of our customers, Hawai‘i Gas routinely evaluates the performance of our team members. In 2022, our Voice of Customer (VOC) program began collecting feedback from customers who recently interacted with us. The feedback we receive from VOC surveys plays a crucial role in our commitment to providing outstanding customer service, recognizing and appreciating the efforts of Hawai‘i Gas team members, driving innovation and development through data-driven decision-making, and measuring our performance against industry benchmarks. By building long-term customer relationships across Hawai‘i, we strive to proactively address issues and drive change, ultimately reinforcing our customer-centric business approach and commitment to the community.

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“

LISTENING TO OUR CUSTOMERS IS NOT JUST A BUSINESS STRATEGY, IT'S OUR COMPASS. WE GAIN VALUABLE INSIGHTS INTO WHAT MATTERS MOST TO THEM AND HOW WE ARE DOING. THIS IS ESSENTIAL FOR OUR GROWTH AS WELL AS TO ENSURE THAT WE ALIGN OUR EFFORTS WITH THE NEEDS AND EXPECTATIONS OF OUR COMMUNITY. TOGETHER, WE CAN BUILD A MORE SUSTAINABLE AND CUSTOMER-CENTRIC FUTURE." — Kendall Horner, VP Strategy & New Markets

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MAKING A DIFFERENCE FOR HAWAI‘I Our efforts to help protect and preserve the things we cherish about our island home is evidenced in various ways. The most genuine of these is the commitment of our employees to give their time in support of cultural activities that perpetuate the practices, places and traditions of Hawai‘i.

Lā ‘Ohana Loko I‘a Many of our employees joined the Pacific American Foundation volunteer family workday at Waikalua Loko Fishpond in Kāne‘ohe, O‘ahu. The order of the day was to have some fun and clean the pond, but it was also an opportunity to learn about fishponds and their significance in Hawaiian culture, both past and present.

Hāwea Heiau and Keawāwa Wetland Complex The Day on the Land, an event organized by the Trust for Public Land, has been a favorite activity for Hawai‘i Gas for many years. Hawai‘i Gas volunteers and their families spent a day removing invasive species and planting native plants and trees in the Hāwea Heiau and Keawāwa Wetland Complex. The trees will eventually stand as a woodland border between the wetland and the surrounding residential community of Moanalua.

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EMPLOYEE KUDOS

2022

Voices of our Customers Despite responding to an earlier emergency that threw off his schedule, Bernard “Mack” McDonald still made sure an O‘ahu customer’s gas was turned back on instead of rescheduling it to another day.

willing to answer my questions when we first established service. Our deliveryman, Phil, is excellent. He's always smiling and very careful when navigating our long and narrow driveway!" #kauaiaswhy

A customer on Maui wanted to personally thank Jayson Medeiros: "After our installation, Jayson called and let us know service started. It was a nice personal touch. We’ve been in our new home for three weeks and are very happy with our gas stove."

A customer in Kona on the Big Island praised Ryan Cantor for delivering gas with aloha: "Ryan delivered our gas and filled our large tank quickly.

He is friendly and always spends a few minutes to chat about local things! He's always so personable — like he's filling his own Aunty and Uncle's tank."

On Kaua‘i, a satisfied customer had great things to say about Lawton Sugihara and Phil Butac: "Lawton was attentive, courteous and always

Business Modernization Approximately three years ago, Hawai‘i Gas embarked on a transformative journey aimed at modernizing our business processes and aligning our operational framework with contemporary practices. A substantial facet of this initiative involved modernizing the company's technological infrastructure to accommodate these evolving requirements.

By October 2022, a significant milestone was reached with the successful launch of updated customer information, billing and work management systems. The company is currently engaged in two significant projects — a self-service customer portal and a sales automation system, both aimed at delivering top-tier customer service.

Beyond the enhancements made in technology for operational and sales functions, Hawai‘i Gas also implemented numerous advancements in cybersecurity protocols, communication services, tools for internal collaboration, employee self-service capabilities and internal IT methodologies. These measures have equipped the company to meet future challenges.

Regarding administrative and support aspects, Hawai‘i Gas has strategic plans to further enhance the technologies underpinning Human Resources, Finance and Accounting and Legal functions. These initiatives underscore the company's commitment to cutting-edge technologies aligning with the demands of a contemporary business landscape.

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GOVERNANCE Hawai‘i Gas is regulated by the State of Hawai‘i Public Utilities Commission (PUC). We report publicly to the PUC on material incidents related to clients, customers, contractors, the community, employees, regulators, public authorities, special interest groups and suppliers, and are held accountable to our customers.

We also communicate on these topics with our employees via internal communications. In addition, we report on any material misconduct, penalties, incidents and accidents to our parent company.

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POLICIES AND GOVERNANCE Hawai‘i Gas Board Oversight and Structure With the acquisition of Hawai‘i Gas by Argo Infrastructure Partners, the Hawai‘i Gas Board of Directors has been realigned and now consists of President and CEO Alicia Moy, three local external directors and two internal directors from Argo.

Hawai‘i Gas President and CEO Alicia Moy is responsible for the implementation of the strategy and business affairs of the company under the direction of the Board of Directors. Her bio is available at HawaiiGas.com.

Material areas such as audit, risk and compensation are reviewed and approved by Argo. Conflicts of interest are managed and mitigated under the Code of Business Conduct, which addresses issues such as corruption, bribery and fraud.

The Board’s remuneration is dependent on competitive benchmarking, while that of senior executives is dependent on financial performance and the achievement of quantitative and qualitative metrics, such as those pertaining to safety, Environmental, Social and Governance (ESG), and DE+I. The senior decision maker for both ESG and climate-related risks and opportunities is part of the Board of Directors. The senior management of Hawai‘i Gas and its operating businesses have ESGrelated and DE+I-related key performance indicators as part of their compensation plans.

Code of Business Conduct In 2022, all Hawai‘i Gas officers and employees received training in a Code of Business Conduct developed under Argo Infrastructure Partners ownership.

We do not excuse misconduct because it is directed or requested by someone else. We cooperate in investigations.

Our Code of Business Conduct outlines the commitment each of our officers and employees must make to act with integrity, keep promises, comply with all applicable laws and raise concerns when things do not seem right. Their commitment is essential to Hawai‘i Gas’s reputation and long-term success as we work to earn the trust of our customers, vendors, business partners and investors. The Code of Business Conduct also extends to officers and employees of all Hawai‘i Gas affiliated companies.

Respect for People & Company We respect the rights of the people we work with.

We invite and encourage diversity, equity and inclusion and seek to uphold environmental, social and governance stewardship in our workplace and in the communities where we live and work. We protect Hawai‘i Gas’s assets and reputation.

While the Code of Business Conduct is extensive, it is based on the following foundational principles: Integrity in Business We conduct business affairs with the highest standards of integrity. We tell the truth. We keep our promises to customers, vendors, business partners, investors and each other. We act in good faith, free from conflict of interest, fulfilling the trust that others have placed in us. We avoid even the appearance of improper behavior. We are personally accountable.

Respect for the Law We comply with all laws and regulations governing our business. We raise concerns about possible violations of law or policy and never retaliate against anyone for speaking up in good faith.

The Code of Business Conduct also provides guidance on how these principles should be applied and describes specific Hawai‘i Gas policies that provide more detailed guidance.

To learn more about the Hawai‘i Gas Code of Business Conduct, please contact the Hawai‘i Gas Human Resources Department at 800-828-9359.

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Cybersecurity With the acquisition of Hawai‘i Gas by Argo Infrastructure Partners, the Hawai‘i Gas Board of Directors has been realigned. The success of Hawai‘i Gas must now be supported by its digital information and technological infrastructure. This digital reliance, however, also ushers in heightened cybersecurity risks.

configuration management, robust backups and vigilant email threat management.

Our security framework extends beyond technology alone.

Recognizing the pivotal role employees play in cybersecurity, we place immense value on cultivating a well-informed workforce. We diligently conduct periodic security training sessions that arm our staff with insights into prevailing threats, safe practices and the art of maintaining resilient passwords.

To further bolster our commitment to having everyone play their part, we have incorporated annual cybersecurity goals for our employees.

To maintain a firm grasp of the ever-evolving threat landscape, we rely on a comprehensive spectrum of information sources. These encompass reports from renowned cybersecurity firms, insights from government agencies, active participation in industry forums and vigilant tracking of news updates. By assimilating this wealth of knowledge, we glean insights into vulnerabilities, attack methodologies and emergent malware trends. Augmenting this intelligence, our ongoing risk assessments meticulously pinpoint vulnerabilities and quantify their potential impacts, empowering us to counter emerging threats proactively.

Preparedness serves as our cornerstone in the face of potential cyber upheavals. Our meticulously laid-out incident response plans delineate the precise sequence of actions to be undertaken upon the detection of an attack. This encompasses swift containment protocols and meticulously crafted strategies for system restoration. Rigorous testing and proactive updates ensure the ongoing efficacy of these plans, positioning us to tackle unforeseen challenges.

Our commitment to secure data access manifests through stringent role-based access controls. This judicious approach ensures access to sensitive company and customer information is granted exclusively to essential personnel. Augmenting this, we fortify our defenses with multi-factor authentication, erecting an additional barrier that mitigates unauthorized access. Our arsenal includes top-tier cybersecurity tools that holistically manage digital security, from access control and patch management to encryption, password fortification, malware defense,

At Hawai‘i Gas, cybersecurity isn’t merely a requisite, it’s an ethos woven into our operations. Our approach embodies constant vigilance, proactive fortification and an unwavering commitment to safeguarding our digital realm. By seamlessly blending cutting-edge technology, well-trained personnel and robust contingency measures, we stand resilient against the dynamic and ever-evolving landscape of cyberthreats.

ANNUAL COMPLIANCE TRAINING Hawai‘i Gas requires its employees to complete an annual compliance training reinforcing our company’s continuous commitment to our Kina‘ole values, ethics and compliance, which allows us to maintain a healthy, safe and productive work environment. Training for 2022 included:

2022 CYBERSECURITY METRICS GOAL 1 | Phishing Reports Two or fewer: 66% Three or more: 34% GOAL 2 | Completion of Annual Cybersecurity Training Complete: 92% Overdue: 7% Not started: 1%

• Global Cybersecurity Basics • Becoming a DEI Ally and Agent for Change (assigned to All Employees) • Adopting New Leadership Mindsets to Drive DEI • Hawai‘i Gas Code of Business Conduct Awareness

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THE FUTURE PARTNERING FOR

United Nations Global Compact Initiative Hawai‘i Gas is the only company from Hawai‘i participating in the United Nations Global Compact Initiative, a voluntary leadership platform created for the adoption of sustainable and socially responsible business practices. Launched in 2000, the UN Global Compact is the largest corporate sustainability initiative in the world, with a network of over 95,000 companies and 3,000 non-business participants committed to building a sustainable future.

RNG Coalition Hawai‘i Gas is a leadership member of the Coalition for Renewable Natural Gas (RNG Coalition), the public policy advocate and education platform for North America’s renewable natural gas industry. The RNG Coalition advocates for sustainable development, deployment and utilization of renewable natural gas to ensure present and future generations will have access to domestic, renewable, clean fuel and energy.

HEC Climate Coalition Pledge As leaders of Hawai‘i’s largest organizations and institutions, the members of the Hawai‘i Executive Collaborative (HEC) recognize the impact of climate change on our island home. As a signatory to the HEC Climate Coalition Pledge, Hawai‘i Gas is committed to take actions to reduce emissions, increase our resiliency and leverage our collective capacities to support an equitable transition to a climate-resilient economy, society and environment for everyone in Hawai‘i.

SUSTAINABILITY BUSINESS FORUM (SBF) The Sustainability Business Forum (SBF) is a publicprivate partnership committed to advancing economic, social and environmental goals. One of its aims is to connect indigenous knowledge and systems-thinking evolving over generations with modern science, technology and policy to support scalable solutions that can be applied globally. Hawai‘i Gas is proud to be a participating member and supporter of the following SBF initiatives:

leaders in innovation, providing a holistic approach to solutions grounded in a legacy of systems thinking.

Hawai‘i Green Growth (HGG) A United Nations Local2030 hub that brings together diverse stakeholders committed to economic, social and environmental priorities. The hub highlights islands as

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Aloha+ Challenge A statewide commitment to achieve Hawai‘i’s sustainability goals and a locally driven framework to implement the United Nations Sustainable Development Goals. The challenge aims to develop community-based 2030 goals and measurable targets across six priority areas: clean energy transformation; local agriculture; natural resource management; solid waste reduction; green workforce and education; and smart sustainable communities.

EMPLOYEE HAPPINESS

75%

2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

SUCCESSES AT A GLANCE

of employees under Collective Bargaining.

68% of employees participated in employee satisfaction survey.

"I am proud to work here" amongst highest-ranking responses.

Supporting Good Jobs Hawai‘i to help Hawai‘i residents working in in-demand industries.

DIVERSITY & EQUAL OPPORTUNITY Launched new DE+I training.

40%

25% Women on staff.

91% Black, Indigenous and Persons of Colour (BIPOC) amongst Hawai‘i Gas employees.

Gender diverse executive leadership.

Incorporated DE+I into recruitment practices.

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COMMUNITY RELATIONSHIPS Raised

$56,700

for Aloha United Way.

Provides grants, contributions, scholarships and funds research to UH College of Engineering.

Sponsors the Hawai‘i Regional Science Bowl.

PARTNERSHIPS & INNOVATION GHG REDUCTION 85% Efficiency in SNG production.

Selling captured carbon to distributors.

31% Reduction in energy consumption from 2014–2022.

Contributed to the State's application for the H2Hub. Up to 15% Hydrogen in mixed fuel supply.

Participating in HyBlend to address technical barriers to blending hydrogen in natural gas pipelines.

ESG COMMITMENTS GRESB score of 89, a 21% increase from 2020.

Integrated Resources Planning launch.

Developed specified EHS training and policies.

4,000 kWh of electricity saved by upgrading to LEDs.

57

GRI CONTE GRI STANDARD NUMBER

GRI STANDARD / TOPIC STANDARD FOR MATERIAL TOPICS: GRI 11 - OIL & GAS 2

CATEGORY

GRI 2: General Disclosures 2021 The organization and its reporting practice

DISCLO NUMB

2-1

2-1

2-1

2-1

2-2

2-3 Activities and Workers

2-6

2-7 Governance

2-9

2-15

2-18

2-19

2-2 Stakeholder Engagement

2-2

2-3 302

GRI 302: Energy 2016 Energy

302

302 303 305

GRI 303: Water and Effluents Water GRI 305: Emissions 2016 Emissions

303

305 305 305

305 305 305

305

403

GRI 403: Occupational Health and Safety 2018 Occupational Health and Safety

40

403

403

405

GRI 405: Diversity and Equal Opportunity 2016 Diversity and Equal Opportunity

40

413

GRI 413: Local Communities 2016 Local Communities

413

58

ENT INDEX

OSURE BER

DISCLOSURE

LOCATION

1-a

Legal name

Who We Are

1-b

Nature of ownership and legal form

Who We Are

1-c

Headquarters location

Back Page

1-d

Countries of operation

Who We Serve

2a

List all its entities included in its sustainability reporting

About This Report

3-a

Specify the reporting period for and the frequency of its sustainability reporting

About This Report

6-a

Activities, value chain and other business relationships

Who We Are

7-a

Employees

Company Highlights 2021

9-a

Governance structure and composition

Policies and Governance

5-a

Conflicts of interest

8-a

Evaluation of the performance of the highest governance body

Policies and Governance

9-b

Remuneration policies

Policies and Governance

20

Process to determine remuneration

Policies and Governance

29

Approach to stakeholder engagement

Stakeholder Engagement

30-a

Collective bargaining agreements

Company Highlights 2021

2-1-b

Energy consumption within the organization

Energy Efficiency Initiatives at Kamake’e Office

2-4-a

Reduction of energy consumption

Energy Efficiency Initiatives at Kamake’e Office

3-5-a

Water Consumption

5-1-a 5-1-b 5-1-c

Direct (Scope 1) GHG Emissions

Greenhouse Gas Reduction

5-2-a 5-2-b 5-2-c

Energy indirect (Scope 2) GHG emissions

Greenhouse Gas Reduction

5-7

Nitrogen oxides, sulfur oxides and other significant air emissions

Greenhouse Gas Reduction

03-1

Occupational health and safety management system

Environmental Health & Safety (EH&S)

3-4

Worker participation, consultation and communication on occupational health and safety

Occupational Health & Safety (OH&S) Plan

3-5

Worker training on occupational health and safety

Specific Policies and Training for EH&S

05-1

Diversity of governance bodies and employees

Gender Diversity

3-1

Operations with local community engagement, impact assessments and development programs

Anti-corruption

Water

59

Activities That Impact Our Communities

HAWAI‘I GAS

2022 Sustainability Report

HEADQUARTERS

745 Fort Street, 18th Floor — TOPA Financial Center, Honolulu, HI 96813

This Sustainability Report was produced with the support of Delphi.

Designed by Anthology FINN Partners.