Mission Statement, Vision, & Core Values (2024) of Fortis Inc. (FTS)

An Overview of Fortis Inc. (FTS)

General Summary of Fortis Inc.

Fortis Inc. (FTS), founded in 1885, began as a small electric utility in Newfoundland and Labrador. Over the decades, the company expanded significantly through acquisitions and geographical diversification, emerging as a leader in the North American utility sector. Today, Fortis operates in the electric and gas distribution segments, serving around 3.4 million customers across Canada and the United States.

As of 2024, Fortis provides a wide range of services including:

• Electric power generation
• Electricity distribution
• Natural gas distribution

The company reported revenues of approximately $4.6 billion in 2023, which reflects a steady growth trajectory fueled by increasing demand for energy and strategic investments in infrastructure.

Company's Financial Performance in the Latest Reporting Period

In the latest financial reports for Q1 2024, Fortis Inc. showcased record-breaking revenue primarily propelled by their main product sales. Notably, the company reported:

• Revenue of $1.15 billion for Q1 2024, representing an increase of 6.8% year-over-year.
• Net income attributable to common shareholders of $110 million, a rise of 9.5% from Q1 2023.
• Adjusted EBITDA of $400 million, marking an increase of 8.0%.

The breakdown of revenue sources is illustrated in the table below:

Fortis has also expanded its market presence, with significant investments in renewable energy projects, reflecting its commitment to sustainability and reducing greenhouse gas emissions.

Introduction to Fortis Inc. as an Industry Leader

Fortis Inc. stands as one of the leading companies in the utility industry, characterized by its extensive service portfolio, long-standing reputation, and robust financial health. The company is renowned for its reliable service, quality customer support, and ongoing commitment to investing in infrastructure and innovation.

To further understand why Fortis is successful, the company's strategic focus on renewable energy solutions and customer-centric initiatives has played a pivotal role in positioning itself as a trusted provider in the energy market. The company continuously ranks among the top utility firms in North America, as evidenced by favorable industry comparisons in growth and customer satisfaction.

Readers can delve deeper into Fortis' successes and strategies below to uncover the factors driving its growth in the utility sector.

Mission Statement of Fortis Inc. (FTS)

Mission Statement of Fortis Inc.

Fortis Inc. operates with a mission statement that focuses on delivering reliable energy solutions while maintaining a commitment to sustainability and community engagement. This mission serves as a critical guide in achieving long-term strategic goals, ensuring that the company meets the evolving needs of its customers and stakeholders.

Customer Commitment

One of the core components of Fortis Inc.'s mission statement is a strong dedication to customer satisfaction.

• Fortis serves approximately 3.4 million customers across Canada and the United States.
• The company reported a customer satisfaction score of 87% in 2022.
• As per J.D. Power's 2023 Electric Utility Residential Customer Satisfaction Study, Fortis was ranked in the top quartile for customer service satisfaction.

Operational Excellence

Another essential component is operational excellence, emphasizing efficiency and reliability in service delivery.

• Fortis has invested around CAD 19.3 billion in capital expenditures over the next five years to enhance infrastructure and renewable energy projects.
• The company achieved a system reliability rate of 99.98% in 2022.
• Fortis aims to reduce greenhouse gas emissions by 75% by 2035 from a 2019 baseline.

Community Responsibility

The third component of Fortis Inc.'s mission statement is community responsibility, which reflects its commitment to social responsibility and environmental stewardship.

• In 2022, Fortis contributed CAD 7 million to community initiatives and charitable organizations.
• Fortis aims to provide ongoing education programs, benefiting over 500,000 people in various communities.
• As of 2023, 85% of Fortis' electricity generation comes from renewable sources, demonstrating a commitment to sustainable energy.

Vision Statement of Fortis Inc. (FTS)

Vision Statement Overview

Fortis Inc. aims to be a leader in the delivery of safe, reliable, and cost-effective energy services. The vision statement for 2024 focuses on sustainable energy solutions that contribute to the communities they serve.

Commitment to Sustainability

As part of its vision, Fortis Inc. is committed to achieving a net-zero emissions target by 2050. The company has outlined several key initiatives:

• Investment of approximately $4.5 billion in renewable energy projects by 2026.
• Reduction of greenhouse gas emissions by 30% by 2030, based on 2020 levels.
• Procurement of 80% of its electricity from renewable sources by 2025.

Enhancing Customer Experience

Fortis Inc.'s vision incorporates a strong focus on customer satisfaction. The company plans to:

• Achieve a customer satisfaction score of 90% or higher by the end of 2024.
• Implement advanced metering technologies to enhance service efficiency.
• Reduce average outage time to less than 60 minutes per customer annually.

Community Engagement and Development

Fortis Inc. envisions being a proactive community partner. Their initiatives include:

• Investing $10 million in community development programs over the next five years.
• Conducting regular forums to engage with community stakeholders.
• Supporting educational programs aiming to inspire future generations in the energy sector.

Innovation and Technological Advancement

Innovation is at the core of Fortis Inc.'s vision. The company plans to:

• Allocate $500 million for research and development in smart grid technology by 2025.
• Enhance operational efficiency by reducing costs by 10% through automation and data analytics.
• Launch a pilot program for battery storage technology to optimize energy distribution.

Table of Strategic Goals for 2024

Global Leadership in Energy Transition

Fortis Inc. envisions itself as a global leader in the energy transition. The strategic focus includes:

• Pursuing partnerships with global energy innovators.
• Participating in international forums to influence energy policies.
• Aligning operations with global sustainability standards and frameworks.

Core Values of Fortis Inc. (FTS)

Core Value: Safety

Safety is a paramount value at Fortis Inc. (FTS), reflecting the company’s commitment to the well-being of its employees, customers, and the communities it serves.

In 2023, Fortis achieved an Occupational Safety and Health Administration (OSHA) incident rate of 0.6, significantly below the industry average of 2.0. This low incident rate demonstrates the effectiveness of Fortis's safety protocols and culture.

Examples of safety initiatives include:

• Implementation of a comprehensive Safety Management System (SMS) that encompasses training for over 5,000 employees.
• Conducting more than 1,200 safety audits across various operations in 2023.
• Investing $4.5 million in safety training programs in 2023, which included First Aid and CPR certification for 1,200 employees.

Core Value: Integrity

Integrity serves as the foundation of all operations at Fortis, ensuring that ethical practices guide every decision made within the organization.

In 2023, Fortis undertook an internal audit that confirmed 100% compliance with the company’s ethical guidelines, which are strictly enforced across all departments.

Specific actions that illustrate Fortis’s commitment to integrity include:

• Creation of the Integrity and Ethics Hotline, which received over 150 reports in 2023, showcasing employees' confidence in voicing concerns.
• Conducting annual ethics training for all employees, resulting in a 95% completion rate.
• Partnership with external consultants to revise and enhance internal compliance policies, which are reviewed quarterly.

Core Value: Sustainability

Sustainability is central to Fortis’s operations, reflecting a commitment to environmental stewardship and responsible resource management.

Fortis reduced greenhouse gas emissions by 25% since 2019, with a goal to achieve a 50% reduction by 2030.

Notable sustainability initiatives include:

• Investment of $1.2 billion in renewable energy projects, including solar and wind, in 2023.
• Participation in the Carbon Disclosure Project (CDP), achieving a score of 'A-' in 2023.
• Implementation of energy efficiency programs that saved customers an estimated 300 GWh annually, translating to a $30 million decrease in energy costs.

Core Value: Customer Commitment

Customer Commitment embodies Fortis’s dedication to delivering exceptional service and value to its customers.

Fortis reported a customer satisfaction score of 87% in 2023, which is above the industry average of 80%.

Actions that demonstrate this commitment include:

• Launching a 24/7 customer support service that handled over 500,000 inquiries in 2023.
• Reinvesting $200 million in infrastructure upgrades to improve service reliability and reduce outages.
• Conducting annual customer feedback surveys, which received responses from over 10,000 customers in 2023, driving continuous improvement initiatives.

Core Value: Community Engagement

Community Engagement reflects Fortis’s responsibility to foster positive relationships and contribute to the communities it serves.

In 2023, Fortis contributed $15 million to various community development projects, benefiting over 500,000 residents.

Examples of community engagement initiatives include:

• Partnership with local organizations to support educational programs, impacting 10,000 students across multiple school districts.
• Volunteering over 20,000 hours in community service by employees in 2023.
• Organizing an annual community clean-up event, which involved more than 1,500 volunteers in 2023.