HAWAI‘I GAS | 2023 Sustainability Report

2023 SUSTAINABILIT Y REPORT

HAWAI‘I GAS

Doing the right thing. In the right way. At the right time. For the right reason.

TABLE OF CONTENTS ABOUT THIS REPORT

3

LETTER FROM THE CEO

4

2023 HIGHLIGHTS

6

ABOUT HAWAI‘I GAS

8

COMPANY KEY FACTS

16

SUSTAINABILITY AT HAWAI‘I GAS

18

Our Approach to ESG Partnering for the Future

19 23

ENVIRONMENT

25

Preparing for Our Future Managing Operations

26 29

SOCIAL

34

Our Employees Our Customers Our Communities

35 44 46

GOVERNANCE

50

Sustainability Risk Management GRI Content Index

51 53 54

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ABOUT THIS REPORT Our third annual Sustainability Report describes our continued commitment to sustainability and details our progress achieved in 2023 at The Gas Company, LLC dba Hawai‘i Gas. Reporting Scope and Boundary

Reporting Standards

Tracking our sustainability initiatives and reporting on our progress aligns with our promise to be transparent with all our stakeholders. This report covers activities in the period from January 1, 2023 to December 31, 2023.

It highlights the progress we have made in addressing material environmental, social and governance (ESG) risks and opportunities, as well as the objectives we strive to achieve since publishing our first Sustainability Report in 2022.

Our ESG data is prepared with reference to the Global Reporting Initiative (GRI) Standards to provide comprehensive, consistent and standardized reporting.

Throughout the report you will see references to the UN Sustainable Development Goals (SDGs), which we contribute to as a participating company of the United Nations Global Compact.

For More Information For any questions related to information found in this report, please visit our Sustainability page.

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LE ADING T HE WAY:

PIONEERING A LEGACY Letter from the CEO >>

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"2023 was another forward moving year for Hawai‘i Gas. As we reflect on the past year, we are proud of the progress we have made as a company in furthering our ESG commitments. We have advanced our clean energy strategy and supported the well-being of our communities and employees."

Alicia Moy President, CEO

We are a critical infrastructure company in a chain of islands in the middle of the Pacific Ocean. This means it is our kuleana, or responsibility, to innovate, proactively address global challenges and be good stewards of the environment and our island communities. By doing so, we are enabling Hawai‘i Gas to thrive in a sustainable future, while providing exceptional opportunities for our employees and supporting the resiliency of Hawai‘i’s communities.

In 2023, we issued a request for proposals to increase the supply of renewable natural gas (RNG) and green hydrogen in our utility gas mix. These projects will demonstrate our commitment to renewable energy and will help further decarbonize our utility gas mix and reduce the amount of Synthetic Natural Gas (SNG) produced at the SNG Plant, which is the source of the majority of our GHG emissions.

Furthermore, we extended our RNG contract at the Honouliuli Wastewater treatment facility in partnership with the City and County of Honolulu for an additional 10 years.

Commitment to ESG In 2023, Hawai‘i Gas further integrated ESG initiatives into our organization by developing our first ESG Policy. This lays out our vision and mission to support the state of Hawai‘i’s 2045 net-negative emissions goal while providing affordable and reliable energy to our customers. Additionally, we outlined our ESG commitments as an organization, which you can read more about in this report. For the fifth year, we participated in the GRESB Infrastructure Assessment, achieving our highest score to date, consistent with the commitment of Hawai‘i Gas’s owner, Argo Infrastructure Partners, LP. (Argo) which we are a portfolio company of.

Argo is an independent infrastructure fund manager and seeks to derive its investment returns from responsible and sustainable investing.

Supporting Our Communities and Employees We recognize that 2023 presented a challenging year for many of our communities, families and employees in Hawai‘i. The Maui wildfires devastated the town of Lahaina, where over 100 lives were lost and thousands of homes and buildings destroyed. Our employees directly supported community recovery efforts through volunteering and donating over $15,000 to organizations, which Hawai‘i Gas double matched. We also ensured that propane supply levels were maintained for first responders and critical customers who were supporting the recovery efforts.

Looking Ahead We are experiencing some of the most challenging yet exciting times in our industry, and I am proud of our efforts to accelerate our ESG and clean energy strategy while maintaining reliable, cost-effective energy for our communities. I invite you to explore our latest Sustainability Report, which highlights our progress over the past year and the opportunities that lie ahead. We look forward to continuing this journey with you.

Advancing Our Decarbonization Strategy We are proud to have released our first Integrated Resource Plan (IRP) and Five-Year Action Plan in over 20 years. This extensive, over-a-year-long process involved over 20 stakeholder groups across government, industry and environmental organizations. The plan, fully supported

by Argo, provides a roadmap for how Hawai‘i Gas can help the state achieve its climate goals in an affordable and resilient way. We believe this plan will make our organization and communities stronger and more resilient, through increasing our use of renewable fuels and reducing our greenhouse gas (GHG) emissions.

Sincerely,

Alicia Moy President & CEO

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2023

HIGHLIGHTS

6

ENVIRONMEN TAL • Published our Integrated Resource Plan and Five-Year Action Plan • Issued a request for proposals (RFPs) for the supply of renewable natural gas (RNG) and green hydrogen • Conducted a physical climate risk assessment for our system

SOCIAL • Reached a new three-year labor agreement with the union • Achieved all safety targets • Donated over $300,000 and 520 employee volunteer hours to community organizations

GOVERNANCE • Submitted our fifth annual GRESB assessment, achieving a score of 94 • Set executive ESG targets linked to compensation • Conducted a comprehensive organization-wide risk assessment that included environmental and social risks

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ABOUT

HAWAI‘I GAS OUR BUSINESS The Gas Company, LLC, doing business as Hawai‘i Gas, is headquartered in Honolulu, Hawai‘i on the Island of O’ahu. Established in 1904, Hawai‘i Gas is the only government-franchised, full-service gas company manufacturing and distributing gas in Hawai‘i.

Hawai‘i Gas manufactures synthetic natural gas (SNG), blended with renewable natural gas (RNG) and hydrogen, for its utility customers on O‘ahu, and distributes liquefied petroleum gas, or LPG (propane), to utility, tank and bottled gas customers throughout the state’s six primary islands. It produces RNG at the award-winning Honouliuli Wastewater Treatment Plant on O‘ahu.

Hawai‘i Gas is proud to be part of life in Hawai‘i. We have over 350 employees and provide a range of gas and energy products to nearly every major market in Hawai‘i, including residents, food services, military, hospitality, health care, education, government, agriculture and more.

In July 2022, ownership of Hawai‘i Gas was transferred from Macquarie Infrastructure Holdings, LLC to a new private owner, Argo Infrastructure Partners, LP (Argo). As an independent infrastructure fund manager, Argo seeks to be a responsible and sustainable investor, thus paving the way for Hawai‘i Gas to thrive in a clean energy future.

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OUR VISION In the 1970s, the Synthetic Natural Gas (SNG) plant was built to provide Hawai‘i a reliable, cost-effective and cleaner source of energy than other fossil fuels, such as oil and coal. Today, Hawai‘i Gas is again at the leading edge of our industry given the integration of both RNG and hydrogen into our fuel supply mix and distributing it through the utility pipeline system. We continue to actively 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 green hydrogen into our fuel

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supply mix as possible, contributing to affordability, resilience and sustainability for our customers and Hawai‘i’s communities. We play 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 net-negative 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 PRIORITIES As part of our ownership change to Argo, Hawai‘i Gas restated our support for Hawai‘i’s clean energy goals and have made commitments to: Continue to do our part to support the state of Hawai‘i’s goal of net negative by 2045.

Strengthen and accelerate our clean energy transformation and support further development of our regulated utility clean and renewable energy portfolio.

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

Commit to a minimum level of clean energy transformation capital expenditures.

Commit to a minimum of $300,000 in charitable contributions per year.

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A HISTORY OF

HAWAI‘I GAS Throughout our history, Hawai‘i Gas has been a pioneer in the gas utility industry.

Hawai‘i Gas, founded in 1904 as the Honolulu Gas Company, has a long history of providing energy to the Hawaiian Islands.

Initially, the company focused on producing and supplying gas derived from oil for lighting and cooking. As Hawai‘i's population and energy demands grew, the company expanded its infrastructure and services. In 1974, Hawai‘i Gas built its Synthetic Natural Gas (SNG) plant in Honolulu, marking a significant shift toward using locally produced, cleaner-burning fuels. Over the years, Hawai‘i Gas has continued to evolve, incorporating renewable energy sources and exploring new technologies to meet the state's energy needs. Today, the company remains a key player in Hawai‘i's energy sector, committed to sustainability, reliability and innovation.

1904 After receiving approval from the U.S. Congress and President Theodore Roosevelt, William W. Dimond incorporates the Honolulu Gas Company.

1905 Gas flows for the first time from Honolulu Gas Company’s Iwilei plant to residential and commercial customers in Honolulu.

1974 A new plant is built at Campbell Industrial Park to produce SNG. PRI’s refinery and SNG plant receive the first-annual Blue Sky Award from the American Lung Association.

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2011 Our Renewable Natural Gas (RNG) pilot program begins at the SNG Plant to explore the feasibility of producing RNG from animal fats and plant oils.

2014 We become the first company to import LNG to the state for emergency backup use and for supply diversification.

2016 Awarded a contract to produce RNG from the City and County of Honolulu’s Honouliuli Wastewater Treatment Plant.

2018 Production of RNG at the Honouliuli Wastewater Treatment Plant begins, supplying carbon-negative renewable fuel for customers for the first time.

2019 Hawai‘i Gas completes its first baseline greenhouse gas inventory and submits to the GRESB Infrastructure Fund Assessment for the first time.

2020 Hawai‘i Gas joins the United Nations Global Compact Network and participates in the Ambition Accelerator.

2021 Hawai‘i Gas releases its first stand-alone Sustainability Report, highlighting our ESG initiatives.

2022 Hawai‘i Gas is acquired by Argo Infrastructure Partners, paving the way to further commit to our clean energy goals.

2023 Hawai‘i Gas publishes its Integrated Resource Plan and Five-Year Action Plan, illustrating a sustainable, resilient path forward for the company.

Hawai‘i Gas issues a request for proposals from local and national suppliers to provide up to 65,000 therms of RNG and up to 2,300 kg per day of renewable hydrogen.

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Meeting Hawai‘i's

ENERGY NEEDS OUR PRODUCTS Hawai‘i Gas is focused on providing reliable fuel options, supporting energy needs across all islands, and enhancing sustainability through innovations like RNG. 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 SNG. Our O‘ahu facility — in operation for almost 50 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 SNG delivers nearly three times more energy to

1

14 1 Hawai‘i Revised Statues (HRS) 269.45, Gas Utility Companies Renewable Energy Report pg.

the end-user per barrel of oil compared to electricity from 1 Hawai‘i’s electricity grid. You can learn more about our SNG process here.

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 1 utility processes.

Renewable Natural Gas (RNG) RNG is a form of gas that is produced from biomass sources, such as municipal solid waste, landfills, wastewater treatment plants, livestock farms, food production facilities and organic waste management operations. This process creates energy from rapidly renewable by-products that would otherwise be wasted or released into the atmosphere. RNG releases fewer GHG emissions during production than SNG, reducing Hawai‘i Gas’s environmental footprint.

At Hawai‘i Gas, we are very active with hydrogen initiatives both locally and at a national level. We are also participating in hydrogen-blending research and development, which is driven by nationwide interest in blending hydrogen with utility gas.

Because Hawai‘i Gas has been blending hydrogen with our utility SNG since the early 1970s, there is significant interest in our pipeline operations and experience with gas appliances.

We continue to assess ways to further increase the proportion of hydrogen we blend into our system.

In 2023, we issued an RFP for the supply of up to 2,300 kg of 3 renewable hydrogen per day.

CASE STUDY:

Liquified Natural Gas (LNG)

Creating RNG From Honouliuli Wastewater Treatment Plant

LNG is natural gas cooled down to liquid form. It is transported to Hawai‘i in conventional intermodal cryogenic containers from the Continental U.S. Hawai‘i Gas is authorized by the State of Hawai‘i Public Utilities Commission (PUC) to displace up to 30% of our SNG production with LNG to diversify our supply to utility customers on O‘ahu.

In 2018, 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 captures wastewater feedstock that is a by-product of the wastewater treatment process and upgrades the gas through a multi-step process into natural gas. You can learn more about Hawai‘i’s first RNG facility here.

Liquefied Petroleum Gas (LPG) LPG is a generic name for a mixture of hydrocarbon gases — typically propane and butane — which can be used like 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. Due to its portability, propane increases Hawai‘i’s energy resilience by providing a backup source of energy during and after natural disasters.

The process has the capacity to generate up to 800,000 therms of energy per year, equivalent to fueling more 2 than 6,000 homes. Additionally, since 2018 the city has generated cumulative revenue of approximately $1.85 million through its sale of biogas to Hawai‘i Gas. In 2023, we issued an RFP for the supply of up to 65,000 therms per day of RNG, which would substantially increase the amount we can integrate into our utility gas system.

2 3

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.

Hydrogen

Solar Energy

For the past 50 years, we have been blending 10% to 12% hydrogen — reaching as high as 15% — as part of our process of making SNG on O‘ahu. Blending hydrogen into Hawai‘i Gas’s synthetic natural gas (SNG) infrastructure offers several benefits, both from an environmental and operational perspective, as the state seeks to reduce its reliance on imported fossil fuels and move toward renewable energy sources.

In 2016, Hawai‘i Gas commissioned our first solar project, the 6.5-megawatt Waihonu Solar Farm on O‘ahu, which generates enough power for approximately 1,000 homes. Waihonu Solar Farm is contracted to sell electricity to Hawaiian Electric under a 20-year power purchase agreement.

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

Renewable hydrogen is hydrogen produced by electrolysis powered by renewable electricity or by steam methane reforming hydrogen using renewable natural gas.

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HAWAI‘I GAS CUSTOMERS:

COMPANY

KEY FACTS

89%

Residential

11% Commercial

GAS CONSUMPTION:

88%

Commercial 12% Residential

NUMBER OF EMPLOYEES IN 2023:

370

74% Men | 26% Women

59% of employees under collective bargaining in 2023

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TOTAL NUMBER OF CUSTOMERS IN 2023:

70,269 UTILITY SALES (in therms)

33.9 MILLION NON-UTILITY SALES (in therms)

25.6 MILLION

1,100 MILES

OF GAS UTILITY PIPELINES

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SUSTAINABILITY at Hawai‘i Gas

At Hawai‘i Gas we believe in Kīnā’ole:

“Doing the right thing, in the right way, at the right time, for the right reasons, the first time.”

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OUR ESG APPROACH Our commitment to sustainability is woven into our culture and reflects the values of our Islands. We believe that managing environmental, social and governance (ESG) risks and opportunities contributes to productive relationships, protects value, respects the environment and creates a better work atmosphere, while enhancing long-term financial returns.

Kīnā’ole requires us to reduce our carbon footprint; foster energy innovation and conservation; create opportunities through diversity, equity and inclusion; champion our people through employee engagement; support our local community; and lead with integrity.

UN Sustainable Development Goals The UN Sustainable Development Goals (SDGs) were adopted by the United Nations in 2015 as a universal call to action to end poverty, protect the planet and ensure that by 2030 all people enjoy peace and prosperity. There are 17 SDGs that contribute to global social, economic and environmental sustainability.

A S PART O F O U R SUSTAI NAB I LIT Y ST R AT EGY AT HAWA I‘I G A S, WE A I M TO: Ensure safety and the well-being of all Hawai‘i Gas employees is a top priority.

Make cities more inclusive, safe, resilient and sustainable for our local communities.

Improve diversity and equality within our organization.

Ensure sustainable consumption and production by diversifying our fuel stock to include more renewable sources of energy.

Ensure access to affordable, reliable, sustainable and modern energy through our products.

Take meaningful action to combat climate change and its impacts around the world and on our Island home of Hawai‘i.

Build a resilient infrastructure in our state, promote inclusive and sustainable industrialization and foster innovation, particularly in the areas of RNG and green hydrogen.

Protect, restore and promote sustainable use of terrestrial ecosystems and combat biodiversity loss across Hawai‘i.

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Materiality Assessment In 2022, Hawai‘i Gas conducted a materiality assessment to identify ESG topics relevant to our business and stakeholders. The assessment provided insights on which ESG topics are most important to Hawai‘i Gas and how we plan to address related risks.

The ESG topics were selected based on their specific relevance to the gas utilities industry, with reference to leading assessments and standards, including GRESB, the Sustainability Accounting Standards Board (SASB) Standards and Global Reporting Initiative (GRI). Our materiality assessment determined that the following ESG topics are important to Hawai‘i Gas’s business and stakeholders:

E N V I R O N M E N TA L

SOCIAL

GOVERNANCE

Air Pollution

COMMUNITY DEVELOPMENT

Audit Committee Structure/ Independence

Contaminated Land

CUSTOMER SATISFACTION

Boward Composition

ENERGY

EMPLOYEE ENGAGEMENT

Board ESG Oversight

GREENHOUSE GAS EMISSIONS

Freedom of Association

Bribery & Corruption

Hazardous Substances

Health & Safety: Community

COMPENSATION COMMITTEE STRUCTURE/INDEPENDENCE

Materials Sourcing & Resource Efficiency

Health & Safety: Employees

CONFLICTS OF INTEREST

Noise Pollution

Health & Safety: Supply Chain

CYBERSECURITY, DATA PROTECTION & PRIVACY

Physical Risk

Health & Safety: Users

Delegating Authority

Waste and Water Discharge

Inclusion & Diversity

EXECUTIVE COMPENSATION

Labour Standards & Working Conditions

Fraud

Local Employment & STAKEHOLDER RELATIONS

INDEPENDENCE OF BOARD CHAIR LOBBYING ACTIVITIES POLITICAL CONTRIBUTIONS Shareholder Rights & Whistleblower Protection

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Furthermore, Hawai‘i Gas conducted a risk assessment to determine the likelihood and severity of associated risks related to the material ESG topics identified for our business. Likelihood and severity for each risk were rated on a 1 to 5 scale, then combined to determine an overall risk rating for the ESG topic. This assessment allows us to analyze risks relevant to our operations and determine appropriate mitigation and management practices.

The table on page 20 indicates medium risks in bold.

Non-bolded in the table indicates low risk.

THE FOLLOWING RISK RATING FRAMEWORK WAS USED TO CATEGORIZE RISKS AS LOW, MEDIUM, HIGH OR VERY HIGH.

1 RARE

2 UN LI KELY

3 POSSI BLE

4 LI KELY

5 ALMOST CERTAI N

1

2

3

4

5

N EGLIGI BLE

M I N I MAL

MODERATE

SEVERE

CATASTOPH IC

Low

Low

Low

Medium

Medium

Low

Low

Medium

Medium

High

Low

Medium

Medium

High

High

Low

Medium

High

High

Very High

Medium

Medium

High

Very High

Very High

ESG Policy In 2023, Hawai‘i Gas formalized our ESG Policy to outline our approach and commitments to managing material ESG topics relevant to our business and stakeholders, as informed by our materiality assessment.

The policy applies to all our operations and employees, including all facilities, fleet and owned infrastructure throughout our communities. The Executive Leadership team is responsible for the annual review and oversight of this policy and senior management of Hawai‘i Gas is responsible for its implementation.

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OUR ESG COMMITMENTS Our ESG policy articulates our detailed commitments on material environmental, social and governance topics. We continue to make progress on these commitments and are pleased to share the initiatives undertaken in 2023 throughout this report.

Environmental Hawai‘i Gas is committed to supporting Hawai‘i’s clean energy and net negative goals and will continue to look toward new innovative and cost-effective ways to decarbonize our fuel sources. A key priority for Hawai‘i Gas is to integrate as much cost-effective renewable energy into our fuel supply mix as possible while maintaining affordable and reliable energy for our customers and community.

Social We are committed to providing a safe working environment and supporting the development of our employees. We give back to our communities through our Kōkua Giving program and are dedicated to providing exceptional service to our customers.

Governance We are committed to strong governance practices and maintaining oversight of ESG and climate-related issues at a board level. We align executive compensation with industry best practice and the company’s long term objectives integrating safety, ESG, including Diversity, Equity and Inclusion (DEI) into compensation plans. We hold a high standard of business ethics through our employee code of conduct and ensure company information is protected with advanced cybersecurity practices.

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Measuring ESG Performance

HAWAI‘I GAS GRESB SCORES

Since 2020, Hawai‘i Gas has disclosed its ESG performance annually through the GRESB Infrastructure Fund Assessment. GRESB is an industry-led organization that provides actionable and transparent ESG data to financial markets. Our participation in GRESB enables us to track our ESG performance over time and against our peers.

100 80 60 40

Over the past four years, Hawai‘i Gas improved our GRESB score from 60 in 2019 to 94 in 2023.

This is a result of ESG efforts undertaken at Hawai‘i Gas, including establishing our ESG policy, measuring and monitoring our GHG emissions, and conducting an ESG materiality assessment.

20 0

2019

2020

2021

2022

2023

PARTNERING FOR THE FUTURE We collaborate with organizations locally and around the world that share similar goals in furthering energy policy, combating climate change, and adopting sustainable and socially responsible business practices.

OUR GLOBAL ENGAGEMENTS United Nations Global Compact Initiative 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. Hawai‘i Gas submits an annual Communication on Progress (CoP), which is a key component of our commitment to the UN Global Compact. It describes the progress Hawai‘i Gas has made on UN Global Compact’s Ten Principles and is a visible expression of our continued commitment to the Compact.

RNG Coalition Hawai‘i Gas is a member of the Coalition for Renewable Natural Gas (RNG Coalition), the public policy advocate and education platform for North America’s RNG 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.

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OUR LOCAL ENGAGEMENTS HEC Climate Coalition Pledge As leaders of Hawai‘i’s largest organizations and institutions, 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 taking actions to reduce emissions, increase our resiliency and work together 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 public-private 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: Hawai‘i Green Growth (HGG) A United Nations Local 2030 hub that brings together diverse stakeholders committed to economic, social and environmental priorities. The hub highlights islands as leaders in innovation, providing a holistic approach to solutions grounded in a legacy of systems thinking.

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.

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ENVIRONMENT We are committed to supporting the state of Hawai‘i’s 2045 clean energy and net negative GHG emissions target.

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OUR DECARBONIZATION JOURNEY PREPARING FOR OUR FUTURE Introducing the Hawai‘i Gas Integrated Resource Plan In 2022, the State of Hawai‘i’s Public Utilities Commission (PUC) launched an initiative requiring Hawai‘i Gas to undertake Integrated Resource Planning (IRP). IRP is a process for Hawai‘i Gas and our stakeholders to ensure energy reliability and affordability while meeting decarbonization goals.

We are committed to transforming our energy sources and considering all resource possibilities while balancing many additional factors. After an extensive 15-month process with over 20 parties, Hawai‘i Gas released the Integrated Resource Planning Report and Action Plan in 2023. The plan assures that we:

ADDRESS

and further Hawai‘i state policies, including emissions reductions and decarbonization goals

ESTABLISH

a pathway to increase the proportion of renewable resources in Hawai‘i Gas’ fuel mix

ASSESS

supply chain reliability and resilience for Hawai‘i Gas

ENSURE

customer energy affordability

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Process

stakeholders, a mid-range resource plan was selected that balances new RNG and green hydrogen projects and the use of carbon offsets for remaining emissions from SNG production.

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 stakeholder group met throughout the year-long process to explore various resource scenarios and sensitivities, assessing the impact on ratepayers, and considering potential Hawai‘i Gas investments in technology and how innovations would evolve.

If approved by the PUC, the selected plan allows for gradual integration of renewable projects while maintaining flexibility for future adoption of emerging technologies like RNG, hydrogen, bio-naphtha, and bio-LPG.

Four scenarios were considered in the IRP, ranging from the status quo where projected customer demand is met with the existing baseload SNG to maximizing RNG and green hydrogen production in our utility mix. The resource plans were assessed based on qualitative and quantitative criteria that factored in price, safety, emissions reduction impact, supply risk and reliability. After consideration with our diverse group of

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 supporting Hawai‘i’s energy aspirations and embracing technological advancements, leading us into a greener and brighter future.

H AWA I‘I G A S A CT ION PLA N Hawai‘i Gas has developed the following key action items based on our IRP Action Plan to guide our decarbonization efforts.

2023

• Secure RNG and green hydrogen resources to displace SNG through issuing request for proposals for projects • Extend existing RNG contract at Honouliuli Wastewater plant • Evaluate less mature renewable supply resources • Implement non-supply-related infrastructure and end-use efficiencies

2024–2035

• Integrate new RNG and green hydrogen projects into Hawai‘i Gas’ infrastructure • Assess new baseload gas supply alternatives

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LOOKING BEYOND Hawai‘i Gas is grateful to everyone who supported this multi-year journey.

The IRP is an important step in our decarbonization journey, guiding us toward a meaningful strategic action plan. Our business continues to evolve, and we will report our progress as innovations, shifting fuel sources and new opportunities emerge.

Advancing RNG and Green Hydrogen Hawai‘i Gas has used RNG produced at the City and County of Honolulu’s Honouliuli Wastewater Treatment facility since 2018 and has led the nation in blending up to 15% hydrogen into our gas mix since 1974. Increased use of RNG and green hydrogen has been a part of our clean energy planning and is expected to play a significant role in the future of our island home.

In 2023, we supplied over 300,000 therms of RNG into our utility gas supply and extended our contract with the City and County of Honolulu, ensuring continued RNG production from this facility for an additional 10 years.

Hawai‘i Gas intends to replace volumes of SNG and/or propane in our utility system with a blend of RNG and green hydrogen, where feasible. In 2023, we issued an RFP for the supply of up to 65,000 therms per day of RNG and 2,300 kilograms of green hydrogen. We believe that these renewable fuels will decrease the carbon intensity of our utility fuel mix when fully operational. By September 2023, we received eight project submissions and are pleased to share that we selected one green hydrogen 4 project and one RNG project in May 2024.

CLIMATE RISK ANALYSIS Understanding climate-related risk enables Hawai‘i Gas to build a more resilient and sustainable business to navigate the challenges of climate change. With support from Argo, we conducted climate risk assessments at five key sites. The analysis used Representative Concentration Pathway 8.5, published by the Intergovernmental Panel for Climate Change, to predict future risks from physical hazards based on a business-as-usual emissions trajectory. Early risks include soil movement (subsidence) followed by rising wind and tropical cyclone risks. In the long-term, sea level rise and extreme heat risks will take priority.

These analyses will inform our future risk mitigation measures and capital planning to retain the integrity of Hawai‘i Gas’s facilities and assets.

4

Two projects were selected in May 2024, outside of our 2023 reporting period

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MANAGING our Operations

29

With th our GH green

G

SCOPE 1 AND 2 GHG EMISSIONS 2023 HAWAI‘I GAS EM ISSIONS

BY GREENHOUSE GAS

90,000

N2O – 0 .1%

60,000

CH4 – 1 3 .1 %

30,000

0

2019

2020

Scope 1 : GHG Emissions (tCO 2 e)

2021 6

2022 Scope 2:

2023

GHG Emis s ions ( t C O 2 e)

6

C O2 – 86.8%

30

HFC, PFC, SF6, N F F 3 Em issions – 0 %

he support of Argo, Hawai‘i Gas continues to focus on initiatives to reduce HG emissions by investing in new sources of renewable energy, such as n hydrogen and RNG.

REENHOUSE GAS EMISSIONS In Hawai‘i, the energy sector produces approximately 17.5 million tonnes of carbon dioxide equivalent (tCO2e) or 86% of all emissions.5 Sources of natural gas emissions include fugitive emissions from propane and synthetic natural gas, which account for about 0.6% of the state’s total emissions.

In 2023, Hawai‘i Gas emitted 69,335 tCO2e.

Scope 1 GHG emissions (direct emissions from sources owned or controlled by Hawai‘i Gas) accounted for 65,569 tCO2e and Scope 2 emissions (indirect emissions from purchased electricity, steam, heating or cooling)

accounted for 3,766 tCO2e. Our SNG plant at Campbell Industrial Park comprised approximately 80% of our total Scope 1 and 2 GHG emissions. Our Scope 1 GHG emissions increased slightly in 2023 while our Scope 2 GHG emissions decreased. Captured methane to produce RNG from the Honouliuli Wastewater Treatment Plant was equivalent to 1,395 tCO2e in 2023.

DISTRIBUTION INTEGRITY MANAGEMENT Hawai‘i Gas Distribution Integrity Management (DIM) is a comprehensive program designed to ensure the safe and reliable distribution of natural gas. The program aligns with federal regulations, specifically the Pipeline and Hazardous Materials Safety Administration (PHMSA) guidelines, which mandate pipeline operators to implement a Distribution Integrity Management Program (DIMP). Hawai‘i Gas's Distribution Integrity Management Program is a critical element of its commitment to safety, reliability, and regulatory compliance.

5 6

2021 Hawai‘i State GHG Emissions Report Scope 1 GHG Emissions represents Gross GHG Emissions and do not include negative GHG emissions from RNG production

31

MANAGING RESOURCE CONSUMPTION We are committed to improving our energy and water efficiency, as well as minimizing waste in our operations. We monitor resource consumption to identify efficiency opportunities.

Energy Hawai‘i Gas has been integrating on-site solar into our operations. In 2023, we signed a contract to install solar at our Kāne‘ohe facility site, bringing renewable energy to a total of six sites in Hawai‘i.

We also continue to assess energy efficiency opportunities at our offices. 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 use from 551,253 kWh per year to 269,151 kWh in 2023, a reduction of 51%. As a business, we consumed 966,904 MWh of energy in 2023.

In 2023, we generated over

240,000 kWh of on-site solar.

32

W AT E R C O N S U M P T I O N ( K I L O G A L L O N S)

Water As an island community, we place great importance on water. We are dedicated to responsible water stewardship while demonstrating our progress toward mitigating water-related impacts to Hawai‘i.

The SNG plant, our main facility, uses reclaimed and recycled water from the City and County of Honolulu’s Honouliuli Wastewater Treatment Plant.

100 80 60 40 20

Hawai‘i Gas also conducted a comprehensive water audit as an important component of our company initiatives. The audit provided a four-year assessment of water consumption — from 2019 through 2022 — at our main office facility, located in Kaka‘ako (Kamake‘e).

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.

0

2019

2020

2021

2022

2023

Waste 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. Waste consumption values increased in 2023 due to an increased scope of materials being included in tracking and reduced demand for waste materials that Hawai‘i Gas has historically been able to divert from landfill for reuse by others.

WASTE TYPE

UNIT

20 23

Non-Hazardous

Tonnes

240

Hazardous

Tonnes

8.65

33

SOCIAL

34

OUR EMPLOYEES At Hawai‘i Gas, we believe that our greatest asset is our people. Developing our employees is not just a strategic priority, it is a core value that defines our culture and drives our success. We understand that when our team members feel valued, supported and empowered, they are more engaged, innovative and committed to excellence.

Empowerment at Hawai‘i Gas means providing our employees with the tools, resources and opportunities they need to thrive. We invest in continuous learning and development, ensuring that our team has access to the latest knowledge and skills to excel in their roles. We will continue to invest in our people, foster an inclusive culture and empower our employees to reach their full potential.

35

EMPLOYEE ENGAGEMENT Employee engagement improves our work culture, increases job satisfaction and reduces turnover.

In 2023, after experiencing a two-week labor strike, we engaged with our employees to understand and hear their perspectives. Executive Leadership also held in-person town halls at each site to solicit feedback.

We implemented our 3R’s: “Reflect, Recover, Re-Energize” Framework to manage the re-integration of our workforce and guide our path forward as a company.

REFLECT To listen, understand and interpret objective and emotion-driven feedback.

Encourage speaking out to build trust, challenge differences and learn.

Reflect on our different perspectives.

RECOVER Reimagine and construct our recovery plan for the future. Involve others to create realistic optimism and outcomes that are believable, doable and feasible.

RE-ENERGIZE To re-energize our workplace is to recognize, appreciate and value our people.

To move from disengaged to committed employees.

Furthermore, we launched our Labor Management Committee meetings to focus on building and strengthening internal and external partnerships, and restructured roles and teams based on feedback from our employee engagement. We also implemented pilot groups for team engagement using the program Rising Team and increased management training. These employee engagement initiatives drove numerous benefits, such as improved collaboration and communication between team members.

36

37

D I V E R S I T Y, E Q U I T Y + I N C L U S I O N At Hawai‘i Gas, we foster a diverse, safe and inclusive work environment that prohibits discrimination in hiring practices, promotes equal access to promotion and requires all employees to act in an ethical manner.

O U R DE+I GO AL S ARE FOCUS E D ON T H R EE PR I NCI PLES: CREATING A CULTURE OF DIVERSITY, EQUITY + INCLUSION EMPLOYEE ENGAGEMENT INVESTING IN OUR PEOPLE

Creating a Culture of Diversity, Equity + Inclusion 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.

38

2 0 2 3 G E N D E R R AT I O

(% O F I N D I V I D U A L E M P L O Y E E S T H AT I D E N T I F Y A S)

HAWAI‘I GAS ‘OHANA B Y E T H N I C I T Y I N 20 23

Men : 74%

Wo m en : 2 6 %

Developing a culture of DE+I requires building a company that reflects diversity and equity at all levels, and learning from all of our 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.

Asian: 4 3%

W hit e ( Non-Hispanic) : 9 %

Tw o o r m o re et hni c i t i es: 2 1 %

Hispanic Latino: 6%

N at ive H awaiian/ Pac i fi c Isl ander : 2 0 %

Am eric an Indian/ Alask an N at ive: 1 % B lac k / Afri c an Am eri c an: 0 %

39

2 0 2 3 G E N D E R R AT I O NEW HIRES

In 2023, women comprised 33% of our executive leadership team, including our CEO and CFO.

Men : 6 2 %

As a male-dominated industry, we recognize there is much work to do to improve women’s representation within our company and industry. To that end, in 2022, we launched new DE+I training programs to help employees and our senior management to improve their understanding of DE+I within our company. In 2023, we continued to provide DE+I training for 100% of new hires, both management and non-management.

Wo m en : 38%

In 2023, we also set key performance indicators to monitor promotion of women employees and the gender pay gap. We are proud of the progress we have made, with women representing 21% of all promotions in 2023 and 38% of all new hires.

2 0 2 3 G E N D E R R AT I O PROMOTIONS

Me n : 79 %

Wo m en : 2 1%

CASE STUDY:

Women Are Valuable Energy (WAVE) WAVE is our first women-employee resource group.

Formed in 2018, WAVE is a forum created to empower women and promote gender equality, offer professional development opportunities, facilitate network events and engage in community service. In 2023, we introduced new co-chairs to build on the past success of shared leadership roles and to continue to make progress on promoting women’s careers within our industry.

40

Employee Engagement

Investing in Our People

Companies that engage with and support their employees on DE+I experience better productivity, improved hiring and retention rates, and more success.

Hawai‘i Gas includes DE+I considerations throughout our employee engagement initiatives, including our annual survey and related activities.

We are working to develop our employees and 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.

In 2023, we continued to invest in our employees, implementing pilot groups for Rising Team Leadership and Team Development engagement tools. We reached an agreement with our union, which will see 216 of our team members — 59% of employees under collective bargaining — receive a 15% wage increase over the next three years. We also offer our employees benefits including medical, dental and vision insurance, 401K matching and educational assistance.

We also conducted annual training on two DE+I courses for all employees at Hawai‘i Gas.

CASE STUDY:

Investing in Local Workers with Good Jobs Hawai‘i This past year, we participated for a second year in Good Jobs Hawai‘i, which is 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. Good Jobs Hawai‘i is focused on transforming Hawai‘i’s workforce in four in-demand industries — health care, IT, clean energy and creative industries. As a member of this program, we have signed on to the Good Jobs Hawai‘i Employer Talent Action Pledge.

This pledge ensures that we provide equitable pathways to quality jobs, prioritize the local workforce and take action to develop a skilled, local-talent pipeline.

ENGAGE Sector Partnerships Collective Action to Co-create Talent

COMMIT TO QUALITY JOBS Economic Stability Economic Mobility Equity, Respect & Worker Voice

PREPARE & CONNECT

HIRE & PROMOTE

Work-based Learning

Hire Qualified Hawai‘i Residents

On-the-Job Training

Upskill Current Workforce

EXCITE Spread the Word Recruit Students & Encourage Business

41

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

SAFETY

is our top priority.

At our SNG facility, a dedicated safety management professional works on-site to ensure the safety of our plant operators and the surrounding community. We have also developed specific environmental health and safety policies for lead and asbestos.

The EHS Department conducts a range of Occupational Health and Safety training sessions each year and internal safety and compliance audits to ensure safety policies and compliance procedures are working effectively. In 2023, nearly 100% of Hawai‘i Gas employees participated in these training sessions.

Building on our 2022 focus on enacting proactive safety activities, in 2023, we set a new safety target for leading indicators. The targets focused on four leading safety indicators: safety observations, near misses, hazard observations and safety wins. Our 2023 target was for 50% of our employee population to complete a minimum of two proactive safety indicator activities. Safety metrics are critical to evaluating the performance of our business.

We include our yearly safety metrics and targets in the table on page 43.

For our customers’ safety, we share safety tips on our website, such as videos on Emergency Preparedness and Gas Safety Tips.

Employee Safety Recognition Programs

contributing towards Hawai‘i Gas’ goals of achieving Hawai‘i Gas’ employees are recognized for their exemplary an “interdependent” safety culture and fostering a safe, accident-free workplace. dedication and commitment to workplace safety through two programs, Providing Extra Effort in Recognizing Throughout 2023, 38 Hawai‘i Gas employees were Safety (PEERS) and Spot Recognition. Through the PEERS recognized for their dedication to ensuring a safe working program, employees are encouraged to recognize their environment at our facilities. Some of the notable efforts peers for demonstrating a high commitment to workplace by employees included demonstrations on vehicle safety, safety. The Spot Recognition program is for supervisors identifying leak detections and shock hazards, stopping to award employees who go above and beyond to work when noticing potential hazards and spotter efforts.

7

OSHA Recordable Incidents (ORI): Total recordable work-related injuries and illnesses that result in one or more of the following: medical treatment beyond first aid, one or more days away from work, restricted work or transfer to another job, diagnosis of a significant injury or illness, loss of consciousness, or death.

8 OSHA Recordable Incident Rate (ORIR): Measures the number of employees within a year that have been involved in an OSHA work-related incident, per 100 employees.

9 Lost Time Injuries (LTI): Measures the total number of work-related injuries or illnesses that result in an employee being unable to perform their regular duties and requires them to take time off from work.

10 Lost Time Injuries Frequency Rate (LTIFR): Measures the number of lost-time injuries per million employee hours worked during a single financial year.

11 Days Lost Frequency Rate (DLFR): Measures the total lost workdays in a year per 100 employees.

12 Near Misses: Measures the total number of events that do not lead to harm but have the potential to cause illness or injury.

13 Safety Observations %: Measures the percentage of working practices and conditions that42 are deemed safe by the observer.

SAFETY METRIC

2023 TA R G E T

2019

2 02 0

2 02 1

2 02 2

2 02 3

TA R G E T S TAT U S

OSHA Recordable Incidents7

7

N/A

N/A

N/A

N/A

4

Achieved

OSHA Recordable Incident Rate8

2

0.90

0.59

1.71

0.40

1.18

Achieved

Lost Time Injuries9

3

N/A

N/A

N/A

N/A

1

Achieved

Lost Time Injuries Frequency Rate 10

1.00

0.90

0.59

1.71

0.40

0.30

Achieved

Days Lost Frequency Rate11

63.71

67.91

22.16

12.31

53.14

N/A

Near Misses12

N/A

N/A

136

139

109

N/A

Safety Observations %13

81%

85%

92%

89%

N/A

N/A

OUR 2023 SAFETY ACHIEVEMENTS Set and achieved our target for employee participation in proactive safety activities demonstrated by leading safety indicators Near misses decreased 20% since 2022 99.6% of employees participated in safety training

CASE STUDY:

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 7,001 One-Call requests in 2023, an average of 19 per day.

43

OUR CUSTOMERS We have over 70,000 customers across the islands of Hawai‘i in nearly every major industry, including residential, food and beverage, military, hospitality, health care, education, government and agriculture.

Customer Satisfaction We care about providing exceptional service and critical products to our customers for their essential needs. We are pleased to report that during the two-week labor strike in 2023, we were able to maintain our services without major interruptions despite the reduced workforce.

pricing, product offerings and technology. This invaluable feedback highlights areas of improvement, trends/suggestions, and strengths/achievements of our team. The program is a testament to our commitment to customer satisfaction and going above and beyond in providing exceptional service.

14

In 2022, we started our Voice of the Customer program to get insights on our customer service,

We use the Net Promoter Score (NPS) as a key performance indicator to assess customer satisfaction.

Our 2023 NPS was 74.94, which was higher than our target of 66 and 2022 NPS of 69.84.

Business Modernization Three years ago, Hawai‘i Gas embarked on a mission to modernize our business operations. This involved revamping our IT and infrastructure systems to meet new operational demands.

In 2022, we successfully launched updated systems for customer information, billing and job management.

Additionally, we introduced our first self-service customer portal, a system for automating sales processes, and modern telephone and contact center solutions, all designed to improve our primary goal: delivering exceptional customer service.

Furthermore, Hawai‘i Gas has enhanced our cybersecurity protocols, communication facilities, collaborative tools for staff, features that allow employee autonomy, and overall IT methodologies. These advancements have strengthened our capacity to overcome upcoming challenges and consistently provide exceptional service tailored to the needs of our customers.

14

An NPS score measures customer loyalty by looking at their likelihood of recommending a44 given business.

“Mahalo for the service, all the personnel that we have dealt with were more than PATIENT, UNDERSTANDING, and ACCOMMODATING” - Customer on O‘ahu

“Don’t ever lose your ALOHA SERVICE, it’s like GOLD nowadays!”

– Customer on Kaua’i

“I’ve used Hawai‘i Gas for 40-SOME YEARS and I’ve never had any delays or problems.

I find them very dependable” - Customer on Maui

45

OUR COMMUNITIES We consider it our kuleana, or responsibility, to support our communities statewide through partnerships with local nonprofit organizations as well as working directly with local charities to sponsor events. Our employees dedicate their time to support cultural activities that perpetuate the practices, places and traditions of Hawai‘i.

In 2023, our employees committed 520 volunteer hours to environmental, social and cultural initiatives through our Hawai‘i Gas’ Kōkua Giving Program.

"WE STRIVE TO BE A FORCE FOR GOOD AND MAKE A

DIFFERENCE

IN HAWAI‘I’S COMMUNITIES."

46

HAWAI‘I GAS’ KŌKUA GIVING PROGRAM Through our Kōkua Giving program, we provide 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.

CORPORATE GIVING AND SPONSORSHIPS We donated a total of $300,000 in 2023. Our largest donations were to: • $49,470 to the Hawai‘i Community Foundation, to support the recovery efforts of the Maui wildfires • $10,000 to Aloha United Way, which has been working for over 100 years to advance the health, education and financial stability of everyone in our community Additionally, Hawai‘i Gas made donations to support educational scholarships at community colleges through the University of Hawai‘i Foundation. Hawai‘i Gas also supported environmental and community organizations that are aligned with our company’s mission and values, and our company’s legacy organizations such as the Special Olympics and Aloha United Way.

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 per 15 donation. By empowering and incentivizing our employees to give back to the community, we amplify our positive impact on various charitable projects and causes.

In 2023, our employees donated a total of $15,985 to the Hawai‘i Community Foundation and American Red Cross. Hawai‘i Gas contributed an additional $31,970 for a total donation of $47,955, double matching the employee donations.

15

Matching is 100% of employee donation up to a maximum of 47 $500 per year per employee, minimum qualifying donation is $50 per employee

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. We highlight some of the events in which our employees participated to the right.

16

Hawai‘i Gas double-matched employee donations of $3,750 to the Maui Red Cross and $12,235 48 to HCF for a total matching donation of $31,970 and a total overall company donation of $56,970.

ENVIRONMENTAL INITIATIVES With our commitment to sustainability, we have been supporting organizations working to protect the environment and natural habitats that make Hawai‘i so special to us.

A Day on the Land — Trust for Public Lands Our employees volunteered their time to support the Trust for Public Lands “A Day on the Land” national community impact day. Hawai‘i Gas employees spent the day at Kahuku Point on O‘ahu’s North Shore clearing invasive species, planting native plants, collecting plastics and trash, and learning from locals about the habitat and history of this unique landscape.

Hāwea Heiau and Keawāwa Wetland Complex 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.

La Ohana Loko l’a Many of our employees joined the Pacific American Foundation volunteer family workdays in January and June at Waikalua Loko Fishpond in Kāne‘ohe, O‘ahu. It was a fun and fulfilling day of cleaning the pond of invasive species, catching and counting fish, and learning about the ancient Hawaiian fishponds and their significance in Hawaiian culture, both past and present.

COMMUNITY INITIATIVES Hawai‘i Gas supports organizations that give back to the communities in which we operate.

Aloha United Way Hawai‘i Gas has been a partner of Aloha United Way since 1988. In 2023, our employees donated $27,745 to the organization in addition to hosting local fundraiser campaigns statewide. Through our charity arm, we also donated an additional $10,000 to the United Way.

Susan G. Komen — MORE THAN PINK Walk In 2023, Hawai‘i Gas employees participated in this important and inspiring walk to raise money for breast cancer research.

Special Olympics Special Olympics is an organization Hawai‘i Gas and our employees have supported wholeheartedly for decades. Over 61 of our employees volunteered in 2023, supporting the incredible athletes who participated at this event.

Maui Wildfire Recovery Efforts We also supported recovery efforts of the Maui wildfires, which had a serious impact on our local communities in 2023: • Hawai‘i Gas maintained essential post-disaster propane supply levels for first responders and authorities to power equipment, laundry facilities, kitchens preparing food for those in need, and hotels across the Islands housing displaced residents.

• We donated $25,000 to the Hawai‘i Community Foundation (HCF) and double-matched employee donations of $15,985 to HCF and Maui Red Cross for a total of $56,970.

Our employees volunteered their time and supported donation hubs.

• We worked with partners to supply propane for mobile kitchens, food trucks and housing, and matched local dispenser contributions for free propane offers to customers.

49

GOVERNANCE

50

SUSTAINABILIT Y ESG Oversight With the acquisition of Hawai‘i Gas by Argo, the Hawai‘i Gas Board of Directors has been realigned and consists of President and CEO Alicia Moy, three local external Directors and two internal Directors from Argo. The President and CEO is responsible for the implementation of the business strategy and ESG under the stewardship of the Board of Directors. Material areas such as audit, risk and compensation and ESG are reviewed at least annually by the Board.

ESG Accountability In 2023, Hawai‘i Gas implemented a Compensation Committee Charter to outline the roles, responsibilities and processes of the Compensation Committee of Hawai‘i Gas’s Board of Directors.

The committee is made up of at least three non-employee board members. They ensure that executive compensation is aligned with Hawai‘i Gas’s goals and values, including sustainability and ESG objectives. Compensation of senior executives is dependent on financial and ESG performance. The senior management of Hawai‘i Gas and its operating businesses have ESG key performance indicators as part of their compensation plans.

Compliance Training Hawai‘i Gas requires our employees to complete an annual compliance training reinforcing our company’s continuous commitment to our Kīnā‘ole values, ethics and compliance, which allows us to maintain a healthy, safe and productive work environment.

In 2023, our employees participated in training on: • Global Cybersecurity Basics • Becoming a DE+I Ally and Agent for Change (assigned to all employees) • Adopting New Leadership Mindsets to Drive DE+I (assigned to leadership) • Hawai‘i Gas Code of Business Conduct Awareness

51

Code of Conduct 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.

All Hawai‘i Gas officers and employees are trained in our Code of Business Conduct, developed under the new Argo ownership. 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.

Our Code of Conduct is based on the following 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. We do not excuse misconduct because it is directed or requested by someone else. We cooperate in investigations.

RESPECT FOR PEOPLE AND 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.

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.

52

RISK MANAGEMENT Hawai‘i Gas operates critical infrastructure to deliver energy to our customers.

We have developed robust processes to manage risks related to our business and operations.

ORSA Risk Assessment In 2023, Hawai‘i Gas completed an Own Risk and Solvency (ORSA) risk assessment to determine the most material risks related to our business strategy and operations.

Each risk was assigned a magnitude of impact and likelihood of occurrence to determine an overall risk level.

Current controls for each risk were assessed to identify residual risk levels, and an action plan was developed to mitigate potential risks.

Risks assessed related to topics such as employee engagement and satisfaction, production reliability and cybersecurity.

Cybersecurity Data privacy and cybersecurity is critical to the function of our business. Our approach is informed by reports from leading cybersecurity firms, government agencies, industry forums and news updates. Our ongoing enterprise risk management includes assessing and mitigating threats proactively. We protect sensitive company data and information through deploying malware security software, consistent data backups and vigilant email threat management. We have developed an incident response plan and ensure employees are well informed on cybersecurity best practices through periodic training. Furthermore, we have initiatives in the following cybersecurity practices: • Setting company-wide cybersecurity goals.

• Regularly completing and tracking phishing exercises for all employees.

• Using two-factor authentication organization-wide.

• Implementing cybersecurity insurance.

• Developing role-based access controls for Tier 1 systems.

53

GLOBAL REPORTING INIT GRI S TA N D A R D NUMBER

G R I S TA N D A R D / T O P I C S TA N D A R D F O R M AT E R I A L T O P I C S : GRI 11 - OI L & GAS 2

C AT E G O R Y

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

DISCLO NUM

2-1

2-1

2-1

2-1

2-2

2-3 Activities and Workers

2-6

2-7 Governance

2-9

2-15

2-19 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 3-5-

305

403

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

40

403

405

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

40

413

GRI 413: Local Communities 2016 Local Communities

413

TIATIVE CONTENT INDEX

OSURE BER

DISCLOSURE

L O C AT I O N

1-a

Legal name

About this Report

1-b

Nature of ownership and legal form

Our Business

1-c

Headquarters location

Our Business

1-d

Countries of operation

Our Business

2-a

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

Our Products, Partnerships

7-a

Employees

Company Key Facts, Diversity, Equity and Inclusion

9-a

Governance structure and composition

Sustainability Governance

5-a

Conflicts of interest

Sustainability Governance

9-b

Remuneration policies

Sustainability Governance

29

Approach to stakeholder engagement

Materiality Assessment

30-a

Collective bargaining agreements

Company Key Facts, Employee Engagement

2-1-e

Energy consumption within the organization

Managing Resource Consumption

2-4-a

Reduction of energy consumption

Managing Resource Consumption

3-5-a

Water Consumption

Managing Resource Consumption

5-1-a 5-1-b

Direct (Scope 1) GHG Emissions

GHG Emissions

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

Energy indirect (Scope 2) GHG emissions

GHG Emissions

5-7

Nitrogen oxides, sulfur oxides and other significant air emissions

GHG Emissions

03-1

Occupational health and safety management system

Our Employees

3-5

Worker training on occupational health and safety

Our Employees

05-1

Diversity of governance bodies and employees

Diversity, Equity and Inclusion

3-1

Operations with local community engagement, impact assessments and development programs

Our Decarbonization Journey, Our Communities

2023 SUSTAINABILIT Y REPORT

HAWAI‘I GAS 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.