2017 COMMUNITY - NW Natural€¦ · NOTABLE NUMBERS FROM THIS YEAR’S REPORT community and 150+ nonprofit groups 5 PROGRAMS WE SUPPORT shareholder contributions distributed $978,000

COMMUNITY &SUSTAINABILITYANNUAL REPORT

2017

2017 Employee Volunteer of the Year Marilyn Webber

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NW Natural (NYSE:NWN) is a 159-year-old natural gas distribution company serving nearly 740,000 utility customers in Oregon and Southwest Washington. Headquartered in Portland, NW Natural employs about 1,200 in communities across the region.

NOTABLE NUMBERS FROM THIS YEAR’S REPORT

community and nonprofit groups150+

5 PROGRAMS WE SUPPORT

shareholder contributions distributed$978,000

4 CORPORATE PHILANTHROPY

3 LETTER FROM THE CEOJ.D. Power ranking

#1

biked during May challenge8,500 MILES

14 LIVING OUR VALUES

fire personnel receiving natural gas safety training1,242

15 SAFETY AND RELIABILITY

Gas Assistance Program$165,000

8 CARING CUSTOMERS

goal for carbon savings by 2035

10 LOW CARBON PATHWAY30%

awards to organizations our employees support43

9 EMPLOYEE VOLUNTEERS

IntegritySafetyService EthicCaringEnvironmental Stewardship

US

VALUES

ABOUT

OUR CORE

Produced by NW Natural Corporate Communications

Photo CreditsDALE HEADRICK • Cover, Marilyn Webber; Page 4, Cascadia Tech Academy; Page 6, SOLVE Riverside Cleanup; Page 9, Marilyn Webber; Brody Wilson and Melinda Rogers at Oregon Food Bank; Page 13, Bill Edmonds and David Anderson; Page 14, Portland Pride Parade; Page 14, NW Natural Appliance Store team; Page 15, Lourdes Fosdick and Todd Felix, Emergency Operations Center

ROBBIE MCCLARAN • Page 3, David Anderson, Columbia Boulevard Wastewater Treatment Plant

CORKY MILLER • Page 15, Get Ready Camas

OTHER • Page 5, Astoria, courtesy Jennie Baker/Portland Center Stage; Page 6, Village Gardens planting, courtesy Janus Youth Programs; Bridge Meadows community, courtesy Bridge Meadows; Page 7, Skylar and Sean, courtesy Justin Tucker/CASA for Children; Page 8, Salem Center employees, courtesy Michael Davis; Page 16, Parks event, courtesy Benjamin Brink/Portland Parks and Recreation

03/18

to key partners since 2003$2.5 MILLION

PROGRAMS OF FOCUS6

12saved in partnership with Energy Trust of Oregon6.3

ENERGY EFFICIENCYMILLIONTHERMS

OVERVIEWIMPACT

CONTENTS

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David Anderson at Portland’s Columbia Boulevard Wastewater Treatment Plant. In 2017 the city announced it will build a renewable natural gas (RNG) processing facility and vehicle fueling station at the site in partnership with NW Natural.

Welcome to NW Natural’s 2017 Community and Sustainability Annual Report. I’m pleased to share with you some of the many ways we’ve represented our company’s core values: Integrity, Safety, Service Ethic, Caring and Environmental Stewardship.

Over the past year, we continued to deliver on our long-standing commitments across Oregon and Southwest Washington, with nearly $1 million donated through our corporate philanthropy programs. NW Natural employees contributed time and money as well: to community service and volunteer efforts, environmental stewardship initiatives, safety education and training, and more.

As President and CEO, I’ve found that a key measure of success comes not from what you tell your customers, but from what your customers tell others about you.

According to the 2017 J.D. Power Gas Utility Residential Customer Satisfaction Study our customers had good things to say hey ran ed s first in the West for the fifth consec ti e year r o erall score placed us among the nation’s top two, where we’ve landed 10 of the past 11 years. This year, we also received top marks in the West from our business customers.

art of this ongoing s ccess comes from re ecting the values of those we serve. That’s one of the main reasons we e nderta en a significant new initiati e a Low Carbon Pathway that leads toward a goal of 30 percent carbon savings by 2035.

We believe that our pipeline system can help commu-nities close the loop on waste, reduce air pollution and carbon emissions, and support diverse and innovative energy and economic opportunities. One way we’re doing this is by teaming up with Portland’s Bureau of Environmental Services to begin producing renewable natural gas (RNG) from waste materials at the city’s largest wastewater treatment facility.

Through partnerships like this, we can continue to deliver the service our customers expect while leading the way to a cleaner energy future for all.

Thank you for your support, as customers, stakehold-ers and community members, in helping us meet the opportunities ahead.

David H. AndersonPresident & CEO

Visit www.nwnatural.com/content/CommunityReport/2017/ to view this annual report online.

THE CEOLETTER FROM

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NW Natural shareholders contribute nearly $1 million to our Corporate Philanthropy Fund each year. Through this fund we’re able to support children and families, community arts, education and the environment.

“The mission of our corporate giving is to invest here at home,” says Von Summers, community relations manager at NW Natural. “We support organizations committed to helping children and families at risk, to those most vulner-able among us, to people making a difference in education, the arts, and preservation of our environment.”

SOME OF THE 150+ PROGRAMS WE SUPPORT EACH YEAR:EDUCATION:Helping learners of all ages and backgrounds• Portland State University Foundation: $15,750 • Oregon State University Foundation: $10,800 • Friends of the Children: $10,000 • Portland Community College Foundation: $10,000 • SMART: $8,000 • Junior Achievement: $5,400 • All Hands Raised: $5,000 • Community Transitional School: $5,000 • “I Have a Dream” Foundation: $5,000 • The Library Foundation: $5,000 • Schoolhouse Supplies: $5,000

Cascadia Tech Academy: $5,000In 2017 students from Cascadia Technical Academy’s Construction Technology program completed a home in Vancouver’s Glen Village neighborhood. NW Natural contributed a high-efficiency natural gas furnace and tank-less water heater to this year’s home. Cascadia Tech gives students interested in the trades a head start on the career path with hands-on training to prepare them for jobs in the construction industry. The student-built homes have an excel-lent reputation with builders and inspectors, says program instructor Lance Landis. “The students build the home and do the lion’s share of the work. I’m here to provide guidance.” Proceeds from the home sale benefit the school.

ENVIRONMENTAL STEWARDSHIP:Working to preserve land, water and habitats• Forest Park Conservancy: $7,500 • The Freshwater Trust: $7,100 • Columbia Springs: $5,000 • Northwest Earth Institute: $5,000 • The Nature Conservancy: $5,000

Friends of Trees: $7,500NW Natural volunteers joined Friends of Trees and the City of Lake Oswego in plant-ing 1,300 native trees, shrubs, and herbaceous plants to help restore River Run Park, an important habitat area adjacent to the Tualatin River. Volunteers got a break from the cold February weather with breakfast snacks and hot drinks under a NW Natural tent. The company is a longtime sponsor of Friends of Trees, which has planted nearly half a million trees and native plants since 1989 at many locations throughout our territory.

HEALTH AND HUMAN SERVICES: Delivering critical care in our communities• LifeWorks NW: $12,000• Virginia Garcia Memorial Foundation: $10,000 • Community Warehouse: $5,000• Guide Dogs for the Blind, Inc.: $5,000• Impact NW: $5,000 • KIDS Center: $5,000• Metropolitan Family Service: $5,000• New Avenues for Youth: $5,000• The Dougy Center: $5,000

Transition Projects: $5,000 At its downtown Portland Resource Center, Transition Projects serves more than 700 people experiencing homelessness each day, with access to basic services and a safe place to stay, as well as restrooms, showers, clothing and more. In January 2017, NW Natural employees collected and delivered nearly 1,000 pairs of new and like-new socks, four bins filled with additional garments and a donation of $5,000. Through programs in multiple locations, Transitions Projects reaches more than 10,000 people each year, connecting those in need to emergency and short-term shelters, and helping those who are ready find longer-term housing and stability.

GIVINGCORPORATE

Cascadia Tech construction technology students at work on a new home in Vancouver.

Portland Center Stage: $12,500 In Portland Center Stage’s original production Astoria: Part One, an exceptional cast of 16 actors recreated the story of the Astor Expedition (1810-1813), a dramatic but largely forgotten effort to establish the first American settlement and global trading hub in the Pacific Northwest. The pair of expeditions over land and by sea marked a turning point in the opening up of the North American continent. NW Natural is proud to have sponsored this important addition to our shared regional history.

ARTS AND CULTURE: Enriching local communities with a diversity of experiences• Literary Arts: $10,500 • Oregon Symphony Foundation: $10,000 • Lan Su Chinese Garden: $7,500• Ethos Music Center: $5,000• Japanese Garden Society: $5,000 • Oregon Museum of Science & Industry: $5,000

Portland Center Stage actors recreate scenes from the Astor Expedition.

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Bridge Meadows Helping kids thrive in an intergenerational communityA community in North Portland is proving that it takes a village to raise a child. In an attrac-tive, well-maintained complex known as Bridge Meadows, 30 children formerly in foster care are thriving with their adoptive parents and a loving circle of 30 elders. Designed to serve children, families and seniors, Bridge Meadows provides more than just affordable housing. The bonds forged between the people who live there change lives.

The team behind Bridge Meadows is replicating the model. In Beaverton, a new community opened in 2017 with 41 units, nine family town-homes, and 32 apartments for elders. Beginning in Spring 2018, the Dorothy Lemelson House and New Meadows Program in North Portland will provide former foster care youth a safe place to live while they pursue education and job train-ing, and develop self-sufficiency skills.

Janus Youth ProgramsChanging lives, building futuresWhen it comes to helping young people most at risk, Janus Youth Programs operates on the front lines. The nonprofit works with teens many of us don’t see: runaways, young parents and those who have suffered abuse or have been incarcerated.

As the largest provider of services to high-risk adolescents and young adults in the Northwest, Janus serves approximately 6,000 young people in Oregon and Washington each year. Those services include providing shelter for 200 youth each night and working with 400 young people every day. With a net-work of 40 programs that address both immediate and longer-term needs, the Portland-based organization brings stability to the youth it serves, helping them get on track to leading safe, healthy and productive lives.

NW Natural’s signature philanthropic effort, Programs of Focus, provides ongoing support to a select group of nonprofits. Our 2017-2019 recipients receive $35,000 per year for three years from the Corporate Philanthropy Fund, plus in-kind resources and volunteer support from NW Natural employees.

Since 2003, NW Natural has donated more than $2.5 million to its Programs of Focus. Past recipients include Forest Park Conservancy, Friends of the Children, Oregon Food Bank, Start Making A Reader Today (SMART) and others. Organizations are selected through a rigorous review that considers mission, service area, impact of sustained funding, volunteer opportunities and more, with a priority given to nonprofits serving children and families at risk.

FOCUSPROGRAMS OF

The power of a stable family and a web of community support creates an environment of safety and security at Bridge Meadows.

Janus’s Village Gardens program offers over 80 garden plots to neighbors in North Portland affordable housing communities, a youth-run organic farm, cooking and nutrition classes, job opportunities and more.

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Court Appointed Special Advocates (CASA) Representing children in foster careChildren who have been abused or neglected often face a whole new level of trauma as they move through the foster care and court system. That’s when Court Appointed Special Advocates (CASA) for Children of Multnomah, Washington and Columbia Counties steps in. The nonprofit provides specially trained, volunteer advocates— CASAs—who represent and protect the interests of children through the process, making sure their voices are heard and their needs are met.

CASAs are empowered by the court to represent children most at risk in an overburdened child welfare system. During the legal process, they connect with family members, teachers, doctors, therapists and caseworkers. Based on what they learn, they provide the presiding judge with an unbiased picture of the child’s situation and advocate for the best possible outcome for the child. Approximately 500 active CASA volunteers invest their time representing 1,100 children in Multnomah, Washington and Columbia counties.

American Red Cross – Cascades Region Responding to emergencies, helping people prepareWhen disaster strikes, a Red Cross team is usually one of the first on the scene. While responding during a disaster is an important part of what the nonprofit does, helping people prepare is just as important. For the Red Cross Cascades Region—which serves Oregon and South-west Washington—preparedness means being ready for earthquakes, tsunamis, wildfires and home fires. In 2016, the Red Cross launched its “Prepare Out Loud” initiative. The outreach program teaches families and individuals how to take simple steps to prepare for a disaster and share how they’re preparing with others. Additionally, NW Natural hosts up to 10 Get Ready events with the Red Cross each year, to help families throughout our territory prepare for a natural disaster.

SOLVE Many hands keep Oregon clean and greenWhen Oregonians volunteer with SOLVE they be-come hands-on stewards of the state. Removing litter from beaches, planting trees and removing invasive plants are just a few of the ways SOLVE volunteers roll up their sleeves to make a visible difference. Each year, 35,000 volunteers participate in nearly 750 cleanup projects that bring together individuals, communities, businesses, families, friends and neighbors. A small Portland-based staff manages the activities with the support of volunteer captains and coordinators around Oregon. SOLVE also provides guidance, supplies and trash removal services for individuals and communities who organize their own events.

NW Natural volun-teers took part in the SOLVE Annual Beach and Riverside Cleanup, scouring the sands of Sauvie Island for litter and debris. This year’s statewide cleanup netted 76,500 pounds of litter and marine debris across 141 sites.

Siblings Skylar and Sean were reunited and supported with help from their CASA volunteer.

A Red Cross team at Get Ready Happy Valley.

oregon state parksfoundationpreserving our natural & historic wonders

PAPERLESS BILLSFOR DEVELOPING

SKILLS

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customers

Minding the GAPNW Natural’s Gas Assistance Program (GAP) gives the gift of warmth to families in need. Contributions from customers and shareholders totaled $165,000 for the 2017 heating season.

NW Natural covers program costs and our shareholders match the first $60,000 in contributions. Community Action Networks distribute funds throughout our territory. Visit our website and select Gas Assistance Program to make a tax-deductible donation.

Smart Energy Customer Signups Raise Over $18,000 for Oregon ParksNW Natural’s Smart Energy program and the Corporate Philanthropy Fund contributed $18,800 to the Oregon State Parks Foundation in 2017, in recognition of customers who volunteered to offset emissions from their natural gas usage during a summer enrollment campaign. Foundation funds go toward enhancing visitor experiences at Oregon’s 255 state parks.

Paperless Billing Campaign Raises $15,000 for Boys & Girls ClubsDuring April and May, 3,000 NW Natural customers who opted-in to paperless billing didn’t just save paper—they helped provide a safe place for kids to go after school and during summer breaks. The Boys & Girls Clubs’ mission is to enable young people to reach their full potential as productive, caring and responsible citizens. NW Natural’s Corporate Philanthropy Fund donated $5 for every customer that went paperless to Boys & Girls Clubs in Albany, Corvallis, Emerald Valley (Eugene), Portland, Salem, Southwest Oregon (Coos Bay) and Southwest Washington.

NW Natural teams up with our customers to help out special community and nonprofit causes throughout the year. Here are some of the ways we’re sharing in the caring.

CARING

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volunteers

Volunteer of the Year: Marilyn WebberOur 2017 Volunteer of the Year Marilyn Webber puts the “human” in humane, spending several hours after work each week at the Oregon Humane Society walking shelter dogs, rain or shine. The Office Services manager handles pups that have some of the most challenging behaviors. Webber, who has fostered and adopted rescue animals, recently earned an Emergency Animal Services certification enabling her to join other trained volunteers in respond-ing to emergency situations, such as hoarding conditions, puppy mills and natural disasters.

Spirit of GivingEmployees and retirees pledged and donated $123,000 during the 2017 Spirit of Giving campaign. Contributions are matched by the company’s shareholder Corporate Philanthropy Fund donations dollar for dollar, raising the 2017 total to nearly $240,000. These donations support our nonprofit partners: Black United Fund of Oregon, EarthShare Oregon, United Way, and Work for Art along with others chosen by individuals.

EMPLOYEEAs individuals and teams, our employees give time and resources to community causes that make a difference. From sponsored group activities through work, fundraising campaigns, or personal commitments to ser-vice on boards and committees, NW Natural employees embody our values of service and caring. Highlights from 2017 include:

Oregon Food BankHelping others feeds the human spirit. The Oregon Food Bank collects food from farmers, manufacturers, wholesalers, retailers, indi-viduals and government sources. NW Natural employees regularly volunteer at the Oregon Food Bank to repackage food for redistribution through a network of regional food banks and community agencies serving Oregon and Clark County, Washington.

NW Natural Salem Center employees sorted and packed up more than 30 barrels of school supplies collected by the Salem-Keizer Education Foundation. Paper, pens, backpacks and more were distributed to students in need in time for the 2017-2018 school year.

Dollars for DoersDollars for Doers supports the many organizations where employees regularly volunteer outside of work, from delivering meals to home-bound elders and planting trees, to coaching youth sports and serving on volunteer fire departments. This year’s Doers received 43 awards for up to $500, contributing more than $16,000 in shareholder funds given directly to the nonprofits they care about most.

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OperationsReducing the carbon intensity of our product begins with our own opera-tions. Thanks to the support of our regulators and customers, we’ve already replaced all known cast iron and bare steel pipe in our system, which means we’ve addressed one of the key emissions issues for natural gas utilities. As a founding member of the U.S. Environmental Protection Agency’s Methane Challenge we’ve committed to pipeline management practices that produce environmental benefits by limiting methane releases.

Natural Gas Supply CollaborativeWe’re also looking upstream to our suppliers to promote methane- reduction. As a member of the Natural Gas Supply Collaborative, NW Natural joins other natural gas purchasers advocating for increased transparency in gas production practices. Initially, our goal is to encourage natural gas producers to provide accessible, clear and thorough discussion of important environmental and social issues through their company websites and annual reporting.

Innovations in TechnologyWe’re working with other gas utilities and nonprofit organizations like the Gas Technology Institute and the Northwest Energy Efficiency Alliance to encourage innovation through products like Zero Net Energy homes, solar thermal heating systems and other progressive technologies that use less energy.

Environmental stewardship is a core value at NW Natural, guiding the choices we make as a company and as employees. That value is at the heart of an initiative we’re calling our “Low Carbon Pathway.”

When we consider the implications of climate change and evolving carbon policy, the key question becomes: What can NW Natural do as a natural gas utility to reduce greenhouse gas emissions and help our region meet its climate goals?

The answer lies in our Low Carbon Pathway. We’ve set a voluntary carbon goal of 30 percent savings by 2035, based on 2015 emissions. We believe that we have an important role to play in achieving a low-carbon future, and that we can do so effectively and equitably by lever-aging our distribution system, one of the most modern in the U.S.

Established in 2016, our Low Carbon Pathway continued to take shape in 2017 as we took steps necessary for comprehensive carbon reductions and savings through new practices and partnerships, such as these:

PATHWAYlow carbon

WORKING TOWARD A LOW-CARBON FUTURE

GET TO KNOW OUR LOW CARBON PATHWAY

OUR CARBON SAVINGS GOAL: 30% BY 2035

NW NATURAL has an important role to play in helping our region move to a low-carbon, renewable energy future. That’s why we’ve developed our Low Carbon Pathway and it’s why we invite you to join us.

Together, we can conserve, offset and innovate to address climate change.

Natural gas is today’s cleanest energy option to reliably meet our region’s biggest energy needs. For example, NW Natural delivers more energy in Oregon than any other utility,1 yet the use of natural gas—in customer homes, businesses and industry—represents 8 percent of Oregon’s total greenhouse gas emissions.

Using NW Natural’s existing pipeline system, one of the most modern in the U.S., will help us achieve these carbon reductions affordably.

To support our goal, we’ll need to vet new ideas and explore new approaches. As a public utility, we’ll also need to earn the support of customer groups and policymakers, as well as gain the

While that may be a pretty efficient starting point, we know we can do even better.

So NW Natural’s mission is to work with all our stakeholders—policymakers, regulators and customers—on a voluntary carbon savings goal.

approval of our regulators to pursue new, low-carbon solutions.

We embrace the journey ahead. We feelconfident we can help the Northwest be a pioneer in driving these innovations forward in smart, cost-effective ways.

We will achieve our goal by driving reductions in each of the following categories:

Source: Oregon DEQ In-Boundary GHG Inventory 2015 Preliminary data.

2015 emissions associated with our customers’ gas use and company operations. What is our starting point?

WHAT ABOUT WASHINGTON?Our Clark County customers’

natural gas use accounts for half a percent (0.5%) of the

greenhouse emissions in Washington state.2

1Public Utility Commission of Oregon 2015 Utility Statbook.2 Washington Department of Ecology 2012 GHG Inventory.

OREGON GREENHOUSE GAS EMISSIONS

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CAMPAIGNLESS WE CANEarly on we recognized that for our Low Carbon Pathway to succeed, we’d need the support and engagement of customers, builders and trade allies, policymakers, energy advocates and others.

We also realized that we needed to find an easier way to communicate these goals.

This year we launched a new public awareness campaign, “Less We Can.” With these three simple words we’re inviting customers and community partners to conserve, offset and innovate as part of the company’s efforts to address climate change.

Over the next year and beyond, NW Natural will continue sharing the Less We Can message in a variety of ways, including bill inserts to customers, television and digital advertising, and a campaign website, lesswecan.com. And, we will continue to provide clean, safe, reliable and affordable energy today as we evolve to an even cleaner tomorrow.

NW Natural was among the first utilities in the U.S. to “decouple” the cost of maintaining our pipelines

from the natural gas within them. This means our rates are structured so that we have no financial incentive to sell more gas—allowing us to mean it when we say we want customers to use less.

DID YOUKNOW?

NW Natural customers received this bill insert introducing our Low Carbon Pathway.

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Low Income WeatherizationOur low-income programs focus on delivering warmth, savings, education and positive health outcomes.

NW Natural’s Low-Income Energy-Efficiency programs work with com-munity action agencies in Oregon and Washington, to identify qualifying homeowners and renters, who may be extremely low-income, have disabilities or speak a language other than English.

In-home audits help identify cost-effective improvements as well as potential safety issues. Measures may include furnace repairs or upgrades, insulation, air and duct sealing, energy education and an energy saver kit, smoke and carbon monoxide detectors and more. An average project reduces gas usage by 20 percent.

Thanks in part to a revamped funding and program delivery model, natural gas efficiency projects were completed at 372 households. NW Natural continues to improve and refine these efforts through pilot projects, new partnerships and ongoing customer education and outreach.

A Decade of Smart Energy NW Natural was the nation’s first stand-alone local distribution company to launch a carbon offset program. Since then, customers who’ve participated in Smart Energy have contributed to the offset or future offset of more than 730,000 total tons of carbon emissions from natural gas use—equivalent to removing 142,000 cars from the road for a year.

Smart Energy dollars help fund projects that prevent release of green-house gases, such as farms that capture methane from cow manure or organic waste. The captured methane, known as biogas, is an on-demand renewable energy source that can reduce emissions by replacing fuels with higher emissions. NW Natural works with The Climate Trust to ensure that only verified high-quality offsets are purchased and retired for the Smart Energy program.

Through this optional program, an average NW Natural residential cus-tomer pays $5.50 a month to participate in the program. Commercial customers can choose to offset 100 percent of their carbon dioxide emissions for the year (based on their last 12 months gas usage) or offset a percentage of their emissions with a fixed monthly rate as low as $10 per month.

We’re counting on our customers to help us achieve our carbon savings goal through effi-ciency and offsets. The good news is that many efficiency upgrades can keep homes warm and comfortable while saving energy. Working together, we can use less and offset the rest.

Energy Efficiency and Energy TrustNW Natural’s energy-efficiency programs are run through Energy Trust of Oregon, a non-profit serving the residential, commercial and industrial customers of investor-owned gas and electric utilities in Oregon and Southwest Washington.

Energy efficiency represents the single largest and most affordable component of our Low Carbon Pathway. Through our partnership with Energy Trust and our customers, we expect to have saved enough energy by 2035 to heat 230,000 homes annually. That’s about the same amount of homes Oregon anticipates adding over the next decade.

Among the dozens of available measures are cash incentives for window replacement at home, restaurant cooking equipment upgrades, training on strategic energy management pro-cesses and many more. In 2017, Energy Trust helped NW Natural customers save nearly 6.3 million therms.

I used to turn the thermostat all the way up because the heat went out the windows. Now I set it at 65 degrees and my home is still warmer than it used to be.

— Weatherization workshop participant and NW Natural customer

CUSTOMERSlow carbon pathway:

NW NATURAL CUSTOMERS SAVED

THAT'S ENOUGH TO HEAT NEARLY

IN 2017

6.3 MILLION THERMS

10,000 HOMES FOR ONE YEAR

Animal Waste

Heat

Fuel

Food Waste

Agricultural Waste

ConditioningEquipmentAnaerobic

Digester

RenewableNatural Gas

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What makes energy “renewable?” It comes from a source that’s readily replenished, such as wind, sun-light and … poop? Yes, organic waste has enormous potential as a source for renewable natural gas (RNG).

Organic materials like food and agricultural waste, wood waste, and even human waste produce methane as they decompose. Methane is the primary ingredient in natural gas. We can capture this “biomethane,” condition it to pipeline quality, and then use this interchangeably with conventional natural gas.

With RNG, we can fuel heavy-duty vehicles or add it into our existing pipeline system to serve homes and businesses. In doing so, we’re not just delivering renewable energy—we’re closing the loop on waste and cutting carbon emission.

From Waste to RenewablesNW Natural is partnering with the City of Portland to put renewable natural gas (RNG)—produced from the city’s largest wastewater treatment plant—in its pipe-line and into vehicles. In 2017, construction began on a production facility at the Columbia Boulevard Wastewater Treatment Plant in north Portland. When complete, this facility will recover and clean biogas from sewage to pipeline quality for injection into NW Natural’s pipe-line. The project also includes a compressed natural gas vehicle fueling station for city vehicles.

According to the city, this will be Portland’s single largest climate action project: cutting greenhouse gas emissions by 21,000 tons annually and replacing 1.34 million gallons of dirty diesel fuel with clean renewable natural gas—enough to run 154 garbage trucks for an entire year. The city anticipates that sale of renewable credits will generate upwards of $3 million in revenue annually.

CNG for Cleaner Fuels and Greener FleetsThe transportation sector produces more than a third of Oregon’s greenhouse gas emissions. In particular heavy-duty vehicles powered by diesel emit nitrogen oxides (NOx) and particulate matter that cause smog. We can begin solving this environmental and health crisis with clean, natural gas engines for trucks and fleets.

Large trucks with new natural gas engines produce 90 percent fewer nitrogen oxides compared to the cleanest diesel engine. No other technology on the market today provides that combination of environ-mental benefits all at once. And by adding RNG, that same truck’s greenhouse gas emissions can drop 80 percent below diesel.

The city of Portland is NW Natural’s first “Schedule H” customer. This tariff approved by the Oregon Public Utility Commission allows the utility to install and maintain compression facilities for customers who need on-site fueling, but who may not be ready to purchase the equipment outright. NW Natural builds and maintains the fueling equipment.

RNGlow carbon pathway:

Bill Edmonds and David Anderson at Portland’s Columbia Boulevard Wastewater Treatment Plant. In 2017 the city announced it will build a renewable natural gas (RNG) processing facility and vehicle fueling station at the site in partnership with NW Natural.

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Bike Challenge Fifty veteran and novice bike riders at NW Natural racked up more than 8,500 miles during the May 2017 Bike More Challenge. Participants, including 10 first-timers, pedaled to and from work through 11 days of rain, and temperatures ranging from 41° to 91°F. Sponsored by The Street Trust (formerly the Bicycle Transportation Alliance), this fun, free annual competition encourages people to try commuting by bike.

Reduce, Reuse, RecycleWhat do you get when you take the company headquarters at One Pacific Square, several hundred employees, some empty bins and a team of eager volunteers?

• Five tons of shredded and recycled paper• 700 pounds mixed recycling• One dumpster of trash filled mostly with

old binders that couldn’t be salvaged• Many records to be filed and archived• Space for doing things instead of stacking things• A trumpet

During the company’s office clean-out day in 2017, piles of reusable office supplies and electronics items were sorted for reuse onsite or donated to Goodwill Industries, the Canby School District, and Free Geek’s electronics salvage service.

NW Natural employees, friends and family members turned out on a Sunday in June for the 43rd Annual Portland Pride Parade, one of the many activities supported by the company’s Diversity & Inclusion Council.

Be Well and Do Good WorkWellness programs at work encourage employ-ees to take the healthy steps they need to feel healthier, whether through exercise, nutrition, or mental well-being.

One of the most popular activities is the annual Healthy Wage weight loss challenge. In 2017, 67 NW Natural employees combined to shed 957 pounds, good enough for second place among the 21 energy companies competing in the national three-month challenge.

VALUESliving our

NW Natural’s Appliance Store lost 13.4 percent of total body weight to beat out 13 other employee teams and win the top prize of $2,000 in this year’s Healthy Wage challenge.

IF A DISASTER HITS, ARE YOU READY?

How prepared are you for an earthquake or other disaster? Every September for the last six years, NW Natural has teamed up with the Red Cross Cascades Region to host Get Ready events around our territory.

In 2017, more than 2,000 people attended these free community events, which included safety demonstrations, materials from local preparedness groups and activities for kids.

Todd Felix and Lourdes Fosdick at the new Emergency Operations Center at the Sherwood Business Continuity Center, part of NW Natural’s continued efforts to prepare for emergency events or natural disasters.

NW Natural is joined by the fire department and American Red Cross at Get Ready Camas.

AND RELIABILITYSAFETYThe customers and communities we serve depend on NW Natural for the safe and reliable delivery of natural gas. Our commitment to safety means ongoing training of employees and partners, as well as system and operational improvements.

In 2017 we achieved all our targets for keeping our customers and system safe by arriving on the scene of damages in approximately 25 minutes or less, and responding to odor calls in approximately 30 minutes or less.

We also stepped p trainings with fire depart-ments and first responders ore than fire personnel attended nat ral gas safety classes in 2017.

NW Natural’s Emergency Management and Business Continuity teams worked with other departments to deepen emergency backup capabilities at our facilities, strengthening the company's ability to respond to disasters or other emergencies.

During an emergency, maintaining lines of communication is essential. This year we deployed a cache of handheld and stationary satellite phones throughout the company, ensuring continuous contact even if cellular and landline service becomes unavailable.

The company rolled out cybersecurity enhancements for mobile devices, along with “phishing” awareness and training and other information system security improvements.

Get Ready

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220 NW SECOND AVENUEPORTLAND, OREGON 97209NWNATURAL.COMGIVING

COMMUNITY

In 2017 NW Natural set 251 tents for community events (valued at $116,000).TENT

LOANPROGRAM

ASTORIAAstoria Crab Fest

PORTLANDSunday Parkways

THE DALLESThe Dalles

Farmers Market

LEBANON/ALBANYABC House

Runaway Pumpkin Run

PORTLANDMomentum Gathering

Community Cycling Center

PORTLANDOregon Ballet Theater

at Washington Park

HAPPY VALLEYNW Natural

Street of Dreams

TUALATINWest Coast

Pumpkin Regatta

HILLSBOROProject Homeless

Connect

THE DALLESHelping Hands

Holiday Campaign

COOS BAYBay Area Chamber

Meet & Greet

EUGENEFriends of Trees

Community Planting

NEWPORTOregon Coast YouthSymphony Festival

SALEMSalem Construction

Career Day

RIDGEFIELDDozer Days

HOOD RIVERHood River

Harvest Festival

NW Natural hosts an event thanking sponsors of Portland’s Summer Free for All Movies and

Concerts in the Park series.

Every Region, Every SeasonNW Natural sponsors a range of community events throughout our territory all year long. Here’s a sample of some festivals, fundraisers and family gatherings.