2009 Community Citizenship annual report
who we are To many, NW Natural is the company that warms homes and provides fuel for the regional economy. But we do much more than that. We plant trees in neighborhoods, read to school children, and serve on nonprofit boards that help our communities thrive. We offer our expertise and provide both corporate and in-kind contributions. We look for innovative ways to reduce our region s carbon footprint while continuing to meet growing energy demands. We invest time and resources, and look for ways to improve because it s the right thing to do. In short, community citizenship is our legacy and it is one of our most prized values. the communities we serve Based in Portland, Ore., NW Natural serves about 668,000 residential, commercial and industrial customers in Oregon and Southwest Washington. Our Regional Community Affairs Managers represent NW Natural in outlying service areas, ensuring that we remain in touch with local interests and goals. These employees act as ambassadors for the company, serving on local boards and participating in civic activities. 1. North Coast - Teresa Accuardi 2. Northern Willamette Valley - Bruce Anderson 3. Columbia Gorge - Tonya Brumley 4. Southern Coast - Linda Kennedy 5. Central & Southern Willamette Valley - Kip Much 6. Central Coast - Lynn Nelson 1 2 3 4 5 6 2
Organizations we supported in 2009 African American Health Coalition Albina Rotary Club Foundation Altrusa International of Albany American Association of University Women American Cancer Society American Cancer Society - Jefferson Unit American Leadership Forum Angels Anonymous Animal Aid Asian American Youth Leadership Conference Asian Reporter Foundation Astoria Music Festival Audubon Society of Portland Autism Speaks Basic Rights Oregon Beaver Athletic Scholarship Fund Beaverton Education Foundation Bicycle Transportation Alliance Big Brothers Big Sisters Black United Fund of Oregon Blanchet House of Hospitality Blosser Center for Dyslexia Resources Bonnie Hays Small Animal Shelter Boy Scouts of America, Cascade Pacific Council Boys & Girls Club of Salem Bradley-Angle House Camp Fire USA Camp Fire USA - North Bend Canby Educational Foundation CASA of Benton County CASA of Linn County CASA of Marion County Cascadia Behavioral Healthcare, Inc. Catholic Charities Central Catholic Central City Concern CEPA/St. Helens Community Foundation Chess for Success Childpeace Montessori School Children s Cancer Association Children s Center of Clackamas Children s Relief Nursery Children s Trust Fund of Oregon City Club of Portland Clackamas County Children s Commission Clackamas Women s Services Clark County Food Bank Classic Wines Auction, Inc. Classroom Law Project Clatsop Community Action Columbia County Disaster Relief Columbia County Community Action Columbia Land Trust Columbia Slough Watershed Council Community Action Organization Community Energy Project Community Transitional School Community Warehouse Concordia University Coos County Public Health Coquille Valley Elks Crisis Pregnancy Center of Portland Metro Disabled American Veterans Doernbecher Children s Hospital Foundation Dougy Center Dress For Success Oregon Duck Athletic Fund Earth Share of Oregon Employers for Education Excellence F.I.R.S.T. Food for Lane County Forest Park Conservancy Fort Dalles Rodeo Association Fort Vancouver Regional Library Foundation Freshwater Trust Friends of Ridgefield National Wildlife Refuge Friends of the Children Friends of the Salem Senior Center Friends of Trees George Fox University Girl Scout Council - Columbia River Golden Bond Rescue Grantmakers of Oregon & SW Washington Greater Albany Rotary *Look It Up Project Green Empowerment Guide Dogs for the Blind, Inc. Habitat for Humanity Hearing Loss Association of Lane County Helping Hands Gleaners, Inc. Hillsboro Artists Regional Theatre Holy Redeemer Parish Home Builders Foundation Hood River County 4-H FFA Livestock Hood River Eyeopeners Lions Club Huckleberry Festival Illahee Society Incight Indigo Rescue Innovation Partnership Innovative Services NW J.A. Lawrence Ministries, Inc. Japan-America Society of OR JOIN: A Center for Involvement Junior Achievement Kids on the Block Kiwanis Knight Cancer Institute LaSalle Catholic College Preparatory School Lebanon Basic Services Lebanon High School Equestrian Team Leukemia & Lymphoma Society Liberty Restoration, Inc. Library Foundation Life By Design LifeWorks Northwest 3
Organizations we supported in 2009 (Continued) Lincoln County Food Share Links, Inc. - Portland Chapter Linn Benton Food Share Loaves & Fishes Lower Columbia River Estuary Partnership Oregon Historical Society Oregon Humane Society Oregon Independent College Foundation Oregon League of Conservation Voters Oregon League of Minority Voters Providence Portland Medical Foundation PSU Corporate Partners PSU Foundation Q Center REACH Community Development Tigard High School Parent Support Organization Tigard-Tualatin School District 23J Transition Projects Tualatin Hills Park Foundation Tualatin Riverkeepers Make a Wish Foundation of Oregon, Inc. Oregon Mentors REAP Union Gospel Mission March of Dimes Oregon Newspaper Foundation Rotary Club of Albina United Way of Clatsop County Marion-Polk Food Share Oregon Partnership Rotary Club of Canby United Way of Columbia County Marrow Foundation Oregon Repertory Singers Rotary Club of White Salmon-Bingen United Way of Lane County Mayor s Charity Ball in McMinnville Oregon Symphony Salem-Keizer Education Foundation United Way of Lincoln County MDS Foundation, Inc. Oregon Zoo Foundation Salvation Army United Way of Linn County Medical Teams International OSU Foundation Salvation Army: The Dalles Branch United Way of Mid-Willamette Mercy Corps International Parents of Murdered Children Saturday Academy United Way of Southwestern Oregon Metropolitan Family Service Mid-Columbia Community Action Mid-Columbia Economic Development District Mist-Birkenfeld Volunteer Association Mist-Birkenfeld Helping Circle Mt. Hood Snowmobile Club Planned Parenthood of the Columbia/Willamette Pleasant Valley Elementary Portland Art Museum Portland Business Alliance Portland Chamber Orchestra Portland Classical Chinese Garden Schoolhouse Supplies Self Enhancement, Inc. Shu-Ren Silverton Community Charity Ball Sisters of the Road Café Skamania County Council on Domestic Violence United Way of the Columbia Gorge United Way of the Columbia-Willamette United Way/Gas Assistance Program Urban Arts, Inc. Urban League of Portland Vancouver National Historic Reserve Trust Mt. Pleasant Elementary Portland Community College Skanner Foundation Vernonia High School Multnomah Bar Foundation Portland Festival Symphony SMART/Oregon Children s Foundation Volunteers of America Muscular Dystrophy Portland French School Soroptimist Int l of Albany Walk & Knock Vancouver Food Drive Myrtle Point Lyons & Leo s Club Portland Jazz Festival Southern Poverty Law Center Wasco County Fair and Rodeo NAACP - Salem/Keizer Branch Portland Opera Special Olympics Wasco County Youth Livestock Auction Nancy Devereux Center Portland Parks Foundation Special Olympics - Yamhill County Washington County Museum National Marrow Donor Program Portland Rescue Mission Special Olympics Lane County Washington Gorge Action Programs Native American Youth and Family Center The Nature Conservancy Neighborhood House, Inc. Newberg School District Foundation North Clackamas Education Foundation North Wasco County School District #21 Ed. Foundation Portland Schools Foundation Portland State University Simon Benson Awards PovertyBridge PPS-Marysville Pregnancy Resource Centers PricewaterhouseCoopers Children s Charity Tournament Springfield High School St. Jude Children s Research Hospital Stand for Children SW Community Health Center The Bell/Blazers Classic The Dalles Lions Club Theodore Roosevelt Women s Scholarship Association West Albany High School White Salmon Spring Festival Woodstock Elementary School Work for Art Youth Impact Zonta Club of Coos Bay Area Northwest Earth Institute Northwest Regional Education Service District NW Business for Culture Open House Ministries Open Meadow Oregon Burn Center at Emanuel Oregon Coast Aquarium Oregon Coast Community Action Oregon College of Oriental Medicine Oregon Community Foundation Oregon Food Bank 4
Philanthropy: community investment helping children and families at risk Children are the future and they require a healthy, safe and supportive environment to grow. One of the greatest barriers to families is economic instability. According to the National Center for Children in Poverty at Columbia University, 44 percent of American children grow up in families that are struggling to make ends meet. Employment, education and family structure are just a few of the variables that play an important role in predicting the likelihood that a child will endure economic hardship. A thriving community depends on successful children and families, which is why NW Natural focuses a significant portion of our corporate giving on helping children and families at risk. We have formed partnerships with Start Making A Reader Today (SMART), Oregon Food Bank and the Audubon Society because of the impact these organizations have on our most vulnerable population. Each program, whether it provides an enriching experience or personal assistance, shapes children s lives for the better. gas assistance program Tough economic times made staying warm a luxury for many. While low-income customers may obtain assistance through federal programs, often these funds run out before the heating season ends. The Gas Assistance Program (GAP) bridges the gap between public assistance and need. GAP is funded by NW Natural shareholders and customers. NW Natural pays all of the program costs so that 100 percent of all donations go directly to recipients. During the 2008-09 heating season, GAP provided more than $200,000 to more than 1,600 low-income customers. annual charitable giving campaign Each year, NW Natural employees contribute thousands of dollars to hundreds of charitable organizations through our Annual Charitable Giving Campaign. We sweeten the deal for employees and our funding organizations by matching employee contributions dollar for dollar. Contributions can be made through Black United Fund of Oregon, Earth Share of Oregon, United Way and Work for Art. Last year NW Natural and its employees contributed a total of $289,500 to nonprofit organizations and programs through the giving campaign. 5
community investment (Continued) Oregon Food Bank s Learning Gardens pair mentors with novices and teach low-income participants how to grow a portion of their own food. serving the community for 150 years and counting Last year, NW Natural celebrated our 150th anniversary as a company. To mark this significant milestone, we donated $150,000 to the Oregon Food Bank network. The funds were distributed in the many regions the company serves communities that have played a vital role in its long and successful history. The gift came at a time when the need for emergency food in Oregon and Southwest Washington was sharply on the rise. Oregon Food Bank has been NW Natural s Signature Program for four years. NW Natural s donations to the food bank are entirely funded by shareholders. Bank, Astoria; Columbia Pacific Food Bank, St. Helens; FOOD for Lane County, Eugene; Lincoln County Food Share, Newport; Linn Benton Food Share, Corvallis; Marion-Polk Food Share, Salem; Mid-Columbia Community Action Council, The Dalles; Washington Gorge Action Program Food Bank, Bingen; Oregon Food Bank Metro Services, Portland; and Oregon Food Bank Washington County Services, Hillsboro. NW Natural volunteers helped repackage bulk food so that it could be distributed to hungry families. Oregon Food Bank used the donation to fuel its fleet and to support the regional food banks in NW Natural s service territory. The food banks in NW Natural s service area include: Clark County Food Bank, Vancouver; Clatsop Regional Food 6
NW Natural volunteers have packed backpacks full of supplies for every student at Vernon Elementary School since 2004 through Tools for Schools. The program provides supplies to Portland Public Schools in low-income neighborhoods. 7
Volunteerism: strengthening communities Planting trees increases the value of neighborhoods, intercepts pollutants and helps prevent stormwater from polluting rivers. Volunteers have long been a keystone of a healthy community, but they have been essential during the recent economic downturn. A survey conducted by the Corporation for National and Community Service in partnership with Johns Hopkins Nonprofit Listening Project reveals that volunteers have allowed organizations facing staff reductions to maintain or increase the number of people served. NW Natural supports its employee through recognition programs and provides opportunities for employees to volunteer together with friends and family. dollars for doers From patrolling snowy slopes for skiers who need assistance to helping abandoned pets transition to a new home, NW Natural volunteers have broad interests. Every year, employee volunteers are invited to apply for a Dollars for Doers grant. The program grants up to $500 to the nonprofit agencies and projects most important to employee volunteers. Last year, we gave $20,500 to 45 organizations on behalf of employees. volunteer sabbatical Our Volunteer Sabbatical program gives a selected employee up to three months to work with a nonprofit, helping to complete an important project or bringing the organization to a new level in serving the community. This year, NW Natural selected Darlene Maurer, a compliance specialist in engineering. Darlene will spend her sabbatical working for the Willamette West Habitat for Humanity, which serves Washington County. She will work on several projects, including developing a safety training video for volunteers and holding a fundraising breakfast. Darlene will also organize volunteers and serve as a construction site coordinator, helping Habitat to finish a 10-lot subdivision. 8
the numbers How much NW Natural employees contributed to the 2009 Annual Charitable Giving Campaign: NW Natural matching corporate gift to 2009 Annual Charitable Giving Campaign: Organizations/projects requesting funding from NW Natural: Organizations/projects receiving funding from NW Natural: Dollar value of tents loaned for community events: Number of tents borrowed for community events: Number of customers assisted through GAP during 2008-2009 heating season: Total amount of GAP funds contributed during 2008-2009 heating season: NW Natural corporate gift to GAP: Customer contribution to GAP: $142,000 $147,500 2,212 332 $160,000 558 1,600 $200,000 $50,000 $130,000 Last year, NW Natural made a $150,000 contribution to Oregon Food Bank in commemoration of our 150th anniversary. corporate since 2005* giving 2005 $825,000 2006 $850,000 2007 $935,000** 2008 $985,000 2009 $1,030,000 * Contributions equal 1 percent of the company s pretax income on a three-year average. ** The NW Natural Board approved an extra $50,000 in contributions to GAP. The base budget was $885,000. total 2009 contributions $1,030,000 6% 14% 37% 43% $56,000 Employee Volunteer and Recognition Programs: Dollars for Doers and Above & Beyond $147,500 Charitable Giving Campaign Umbrella Organizations: Black United Fund of Oregon, Earth Share of Oregon, United Way and Work for Art $388,700 Civic, Cultural Educational and Environmental $437,800 Helping Children and Families at Risk 9
Environmental Stewardship: providing for the future After more than a century-and-a-half of service, we like to say, We grew up here. And just like anyone from the Pacific Northwest, we know the value of nature s gifts and the importance of taking care of resources. We are developing innovative ways to help our customer s reduce energy consumption, move toward renewable energy and help find climate change solutions. helping our customers get smart Use less, offset the rest. Smart Energy is a voluntary program that allows customers to offset the carbon dioxide associated with their natural gas use. Funds raised through Smart Energy are helping farmers build biodigesters in our region. These biodigesters capture methane from animal waste and turn it into a renewable energy. More than 8,000 residential and 225 commercial customers have signed up for Smart Energy, offsetting 44,000 tons of carbon dioxide since the program began in 2007. This is the equivalent of reducing the emissions of 4.5 million gallons of gasoline. We are partnering with The Climate Trust, an internationally recognized organization that quantifies, verifies and retires each carbon offset. Our commercial partners that have taken the lead in reducing their carbon footprint include Chinook Winds Casino Resort, Grand Central Bakery, Miller Paint Co., Oregon Convention Center, PARR Lumber, Rose Garden Arena/Portland Trail Blazers and the U.S. Fish & Wildlife Service. Lincoln City: the first Smart Energy City. Lincoln City has a lofty goal becoming carbon neutral. But the city is taking realistic steps to use less energy, rely on more renewable energy resources, and offsetting greenhouse gas emissions. To help the community achieve its goal, city leaders accepted the Smart Energy Challenge. The idea is to have 5 percent of all NW Natural customers in the city sign up for Smart Energy and they reached their goal in December. The city itself is also a Smart Energy customer, offsetting half its emissions each month. Beefing up our Bio IQ (Biogas Intellectual Quotient). Climate change is a complex issue, so we launched the Smart Energy Challenge to help our customers learn more about the various ways lifestyle choices contribute to greenhouse gas emissions. The Challenge also educated participants about Smart Energy and how biodigesters can reduce emissions. More than 16,000 participants answered questions that earned entry into a prize drawing for a vacation package for four to Crater Lake Lodge or one of three tankless water heaters with installation. Biodigester. Smart Energy s first biodigester project, built at Threemile Canyon Farms near Boardman, Ore., was completed in November. NW Natural partnered for this project with the farm s operators and Bonneville Environmental Foundation. Waste from 1,200 cows will be loaded into the digester and turned into biogas. The digester is expected to produce enough energy to replace 70,000 gallons of propane and reduce carbon emissions by approximately 5,000 metric tons annually. The pilot project is testing a low-cost, innovative design that uses old tires to encourage bacteria growth, which speeds biogas production. The model may be a good design for small farms. 10
Smart Energy customers have offset more than 44,000 tons of greenhouse gases. This is the equivalent of using 4.5 million fewer gallons of gasoline. 11
providing for the future (Continued) energy efficiency: a plentiful resource One of the most cost-effective energy resources we have is energy efficiency. Several years ago, NW Natural developed a partnership with Energy Trust of Oregon to help customers reduce their consumption through weatherization programs and rebates. Between 2003 and 2009, NW Natural customers have saved 34.3 million therms. This is enough energy to heat more than 67,724 homes. We are excited to bring that partnership to our Washington customers as we now partner with Energy Trust in Washington. Clean Energy Works. Sometimes the best energy-efficiency measures are unaffordable simply because they require a large initial capital outlay. NW Natural collaborated with the City of Portland and several other business and agencies to pilot a program that makes big energy-efficiency projects achievable. Clean Energy Works allows homeowners to obtain low-interest loans to make costeffective energy-efficiency improvements and repay the loan on their utility bills. The innovative pilot program was created by the City of Portland to help homeowners save energy, reduce carbon emissions as part of the regional Climate Action Plan, and create jobs. The pilot was funded in part by federal stimulus money and over time the city hopes to expand it to all Portland homes. A similar effort is under way at the state level in Oregon. Low-income weatherization. We ve worked with community action agencies to revamp the Oregon Low-Income Energy Efficiency Program and provide more qualifying home owners with free weatherization. The program helps homeowners tighten up drafty houses, saving energy and money. Last year, 276 homes were weatherized with the help of our partners. Paperless Billing rakes in cash for local charities. Who doesn t love saving stamps, trees and time? Paperless Billing accomplishes all of those things, but we ve sweetened the deal. Each year, we ask current and new Paperless Billing customers to vote for one of four local nonprofits. NW Natural divides its contribution based on the percentage of votes each organization receives. So far, we ve given $90,000 in the past four years and have signed up more than 86,000 paperless customers. If every one of NW Natural s customers signed up for paperless billing, we could save 336,000 pounds of paper from bills and envelopes; 46,350 therms of energy from the paper-making process, and 873,600 pounds of carbon dioxide emissions could be avoided from the paper-making process. 12
providing for the future (Continued) Green Team pushes sustainability to new levels. We wouldn t ask our customers to reduce their carbon footprint without taking a hard look at our own practices. This year, NW Natural formed a Green Team to focus on the three main areas contributing to our emissions: fleet, facilities and purchasing. The Green Team spent its first year determining a baseline of current emissions, conducting audits, studying results and weighing solutions. Each area is using this information to develop short and longterm reduction strategies as they being implementing emission reduction projects. Specific projects include replacing an air compressor system at one of our resource centers and testing two compressed natural gas trucks (CNG) to see if the lower emission vehicles are practical for broader use. The move to explore CNG trucks was the result of one employee s idea to use solar-powered trucks. Research indicated solar-paneled trucks would not be an effective way to operate power tools at job sites, but that CNG trucks may be a good alternative. Sustainability Network. While our Green Team is tackling concrete ideas, the company s Sustainability Network allows employees to explore energy issues and how to become more sustainable at home. Each month the network hosts brown bags featuring guest speakers that cover a variety of topics. The network also hosts Northwest Earth Institute reading groups, giving employees an opportunity to read in depth on a sustainability topic and explore the topic during group discussion. This year we convened groups to discuss food sustainability with coursework entitled Menu for the Future. 13
Social Responsibility: with respect, dignity and integrity safety is our priority Public and employee safety are our top priority and we have the safety record to prove it. Since installing our first transmission line in 1956, we have successfully designed, constructed, owned, operated and maintained more than 600 miles of transmission pipeline. Our systematic approach to pipeline safety design it right, build it right, and operate/maintain it right has given us a record of no transmission line failures. NW Natural follows federally mandated pipeline safety codes and commonly designs and builds pipelines to specifications that exceed regulatory standards. Our philosophy is that one injury is too many. We provide employees targeted safety education and training, high-quality personal protective equipment, and continually look for opportunities to integrate safety improvements into our work practices. This has resulted in earning one of the lowest employee accident rates in the natural gas utility industry. We also supply instruction, including live fire suppression training, and support to emergency responders throughout our service territory. Videos, interactive computer-based education, and traditional localized training provide a thorough safety education program and effective communication between NW Natural and responding fire agencies. making safety fun for kids While we focus on a variety of ways to educate the public about natural gas safety, we ve found the most reliable messengers are kids. Through our partnership with Radio Disney AM1640, last year we reached more than 42,000 people with our natural gas safety messages. Radio Disney hosted 32 events throughout our service territory that featured fun activities and games focused on natural gas safety. NW Natural also provides natural gas safety education to school children during one-hour Super Assemblies where kids play games and earn prizes. The effectiveness of this program was highlighted when a child who had attended an assembly urged his parents to call 8-1-1 before digging in the yard. A focus on safety and training has earned NW Natural one of the lowest employee accident rates in the natural gas industry. 14
with respect, dignity and integrity (Continued) diversity NW Natural sponsors a Diversity Council to oversee its educational and developmental opportunities for employees. The council consists of a cross section of employees throughout the company. In addition, NW Natural also promotes diversity in the community through the following programs: Providing a $30,000 grant to the Urban League that will fund scholarships for African-American youth wishing to attend Portland Community College. Recipients will be selected based on need and leadership potential by the Black United Fund. The grant is in response to a statewide report that revealed that black Oregonians remain at or near the bottom of every meaningful social and economic measure, in particular, education. Funding ten $1,000 scholarships for students from under-represented populations, such as students of color and first-generation students. The scholarships are in partnership with Oregon Independent College Foundation and its 10 member institutions. Supporting Big Brothers Big Sisters with a three-year, $30,000 commitment to its Big Dreams Campaign. A recent study conducted by Harris Interactive found that adults mentored as children in Big Brothers Big Sisters are better educated, more socially responsible and wealthier than their peers. what we believe in We provide safe, reliable and affordable energy in an environmentally responsible way to better the lives of the public we serve. Our core values are based on the ideals our employees hold true about NW Natural. They are: Integrity Safety Service Ethic Caring Environmental Stewardship 15
Printed on recycled paper. 03/10 Photo Credits Pg 2 Lower left corner: headshots, copyright Bruce Beaton. Pg 6 Food Bank volunteers: copyright Corky Miller. Pg 7 Backpack stuffing: copyright Corky Miller. Pg 8 Tree planting: copyright Corky Miller. Pg 13 CNG refueling station Corky Miller. Pg 14 Safety trainee: copyright Corky Miller. 220 NW 2nd Avenue Portland, Oregon 97209 nwnatural.com Phone: 503.226.4211