Fortis Inc/Canada

Under our Political Engagement Policy, we disclose any findings of material misalignment between the policy-related lobbying activities of those entities to which we contribute and our corporate values and policies, and steps we have taken as a result of such findings.

2023 - There were no such findings.
2022 - There were no such findings.
2021 - There were no such findings.
2020 - UNS Energy withdrew from membership in the American Legislative Exchange Council due to the potential for misalignment with our corporate values and policies.

5.1 The Committee shall oversee issues, policies and practices pertaining to corporate governance as they apply to the Corporation by monitoring and reviewing the corporate governance practices of the Corporation and governance developments and best practices on a continuing basis and, when considered appropriate, shall report and make recommendations to the Board concerning corporate governance practices, including: (a) the Corporation's approach to and policies on governance matters, including, without limitation, ethics and business conduct, insider trading, continuous disclosure, political engagement and lobbying activity, sustainability, and cybersecurity; [...] 6.1 The Chair, or another designated Member, shall report to the Board at each regular meeting on those matters that were dealt with by the Committee since the last regular meeting of the Board.

###### Compliance and Core Policies

Fortis utilities promote compliance and ethics with employees annually to build program awareness and reinforce ethical behaviour and the culture of Fortis. We have a corporate-wide compliance framework that underpins our commitment to the highest standards of ethical business conduct. Fortis expects its utilities and employees to comply with all applicable laws, regulations and rules, exhibiting a strong culture of compliance and ethics. Fortis utilities are also required to annually certify that their own sustainability-related policies are aligned with the Fortis core policies. Our Code of Conduct is the foundation of the Fortis compliance framework. It is a broad, principles-based document which establishes the ethical expectations of the entire Fortis organization. The code requires strict compliance with all laws and regulations, specifically referencing those relating to lobbying and political contributions. The code also references the responsibilities and internal control processes for authorizing, reporting, monitoring and recording lobbying activities, and political and charitable contributions. All employees certify that they have read and understand and receive training on the code. While each Fortis subsidiary adopts its own code, the general principles and spirit of the Fortis Code of Conduct apply universally across the entire Fortis organization.

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###### At Fortis, our Political Engagement Policy governs political activities. The policy is overseen by the governance and sustainability committee of our Board of Directors. Fortis management annually reviews contributions to political entities, trade associations and other organizations. Any misalignments with our values and policies and related actions taken are then reported to the governance and sustainability committee. In 2021, no misalignments were reported. Consistent with our business model, Fortis utilities directly oversee advocacy and political engagement activities.

#### Advocacy and Political Engagement

###### We believe it is important to participate in the public policy process. We advocate
for our customers, employees, investors and the communities we serve. This
engagement helps ensure informed and balanced public policy discussions.
We also support the democratic process and we contribute to political parties,
candidates and other political entities, as permitted by law. Our Political
Engagement Policy governs our political activities, which is overseen by our
Board of Directors' Governance and Sustainability Committee.
More information is available on our website, including the latest information on
political contributions and trade association involvement.

# POLITICAL ENGAGEMENT POLICY [...] ## 4.0 POLITICAL CONTRIBUTIONS [...] 4.1 Corporate political contributions must be approved in advance by either the President and Chief Executive Officer or the Executive Vice President, Chief Financial Officer. [...] 4.4 The Chief Legal Officer will be responsible for the review of the general policy positions of any political party, candidate or organization to which Fortis proposes to contribute in advance to determine whether there is any material misalignment with our values and policies. [...] ## 5.0 TRADE ASSOCIATIONS AND POLICY ADVOCACY [...] 5.1 Fortis may participate in trade associations and other tax-exempt organizations that conduct lobbying and public policy-related activities of relevance to our business. We may also engage directly in public policy discussions, including with public officials. When engaging in such activities, Fortis will comply with applicable lobbying laws, and maintain records of such activities as required under our Anti-Corruption Policy and Anti-Corruption Procedures. [...] 5.2 The Chief Legal Officer shall be responsible for the review of proposed contributions to trade associations and other tax-exempt organizations that conduct lobbying and other public policy-related activities in advance to determine whether there is any material misalignment with our values and policies. [...] 5.3 When considered necessary or appropriate, the Chief Legal Officer may request that organizations receiving contributions confirm how such funds are being used. [...] ## 6.0 OVERSIGHT [...] 6.1 Management will annually report to the Fortis Board of Directors on political contributions and contributions to trade associations and tax-exempt organizations that conduct lobbying or public policy-related activities with an assessment of whether there is any material misalignment with our values and policies. [...] 6.2 The Governance and Sustainability Committee of the Fortis Board of Directors, which is entirely composed of independent directors, is responsible for oversight of our political activity, and shall periodically: [...] 6.2.1 review Management's reports under section 6.1; [...] 6.2.2 review policies and procedures on political expenditures, including this Policy and the Guidelines; and [...] 6.2.3 provide guidance on political engagement as needed. [...] ## 7.0 DISCLOSURE [...] 7.1 Fortis is committed to transparency and will provide periodic disclosure regarding: [...] 7.1.1 political contributions; [...] 7.1.2 contributions to trade associations and tax-exempt organizations that conduct lobbying or public policy-related activities; and [...] 7.1.3 any findings of material misalignment between the lobbying and policy-related activities of those entities referred to in section 7.1.2 and our corporate values and policies, and any steps taken as a result of such findings. [...] 7.2 Disclosures under section 7.1 will be made for Fortis and its subsidiaries, and will include: [...] 7.2.1 the name of the recipient (candidate, party, campaign, political organization trade association or other tax-exempt organization); [...] 7.2.2 the amount contributed; and [...] 7.2.3 a general description of the purposes for which the contributions were made. [...] 7.4 In addition to the disclosures described in this section 7.0, Fortis will comply with all legal requirements for public disclosure of political contributions and lobbying activities.