Transparent Progress. Sustainable Solutions.

Ever-Green is committed to advancing the sustainability of systems, from conception through implementation. Our 2024 reporting demonstrates the company’s dedication to transparency as we act as an ethical, conscientious corporation.

Leadership Sustainable Development Statement

I am excited to present Ever-Green’s 2024 environmental, social, and governance (ESG) report. The report highlights our commitment to accountability and transparency by providing key ESG metrics for the systems we develop and operate. I am proud of the work we have done in the past year, which was filled with fruitful collaborations and growth. Our team remains committed to sustainability and energy efficiency while centering the needs of our partners, people, and the communities we serve.  

Our partnership with higher education institutions has reached new and exciting heights. At Oberlin College, we helped to complete the installation of 850 geothermal wells and a steam to hot water conversion for a century-old system. The geothermal system is being commissioned and serving the campus with carbon neutral heating and cooling. We welcomed the operation of district energy systems at the University of Minnesota – Twin Cities as well as the Hennepin County Energy Center in our areas of responsibility this year. We are excited to continue to provide reliable energy to support these vibrant community assets. In partnership with Second Nature, our team will continue to provide pro bono consulting services to Penn State Harrisburg to evaluate the current conditions for incorporating biomass into the campus energy system. 

It was also a year of technology firsts across the country. In October, we broke ground on one of the first commercial aquifer thermal energy storage (ATES) in the US at The Heights, a Saint Paul Port Authority brownfield redevelopment in East Saint Paul. When completed, the 112-acre mixed-use redevelopment will bring 1,000 new housing units, and 1,000 living wage jobs to the community. The ATES system will serve ten buildings with energy efficient and sustainable energy, decreasing energy burden on the east side. In San Francisco, we commissioned a sustainable district energy system at Mission Rock, a Bay area redevelopment from a partnership with San Francisco Giants, and Tishman Speyer. The team also put a new black water recycling system in service that will recycle 50,000 gallons water per day for non-potable purposes in the Mission Bay neighborhood. Once fully built out, the district energy and black water recycling systems will reduce energy usage by 24,000 MMBtu, water and non-potable water usage by 23 million gallons per year, sewer discharge by 16 million gallons per year, and CO2 emissions by 1,600 tons per year.

Looking forward, Ever-Green will continue to work with partners to find technically and financially feasible solutions that drive advancement and decarbonization of the systems on which we work. We remain optimistic about the potential of waste heat capture from wastewater treatment plants. District Energy St. Paul completed a feasibility study that considers the integration of heat captured from Minnesota’s largest wastewater treatment plant. With partners at the Metropolitan Council and the City of Saint Paul, the team will continue to look for funding opportunities to implement this innovative approach that repurposes unused thermal energy already in our community to reduce emissions. The proposed system would capture the heat from the effluent of the water treatment process and integrate it with the District Energy St. Paul’s system to supply its customers with carbon free heating.  

As technology advances and energy systems transform, Ever-Green is committed to operating with excellence and serving communities as a trusted partner. I am thankful to our dedicated employees, board members, and partners for achieving another successful year bolstering our communities. Ever-Green’s future continues to be bright.  


Sincerely,
Luke Gaalswyk
President and CEO

ESG Framework

Ever-Green’s ESG commitment extends throughout our business and operations, building from the company values that guide our everyday and long-term actions. We formally adopted a company ESG Policy that serves as the foundation for future company actions and guides our annual reporting of ESG metrics. Our ESG Policy is shaped by our employees, board of directors, customers, and the communities we serve.

The following information contains key ESG metrics and details with reference to the Global Reporting Initiative (GRI) Standards. The latest metrics are for the reporting period January 2024 – December 2024. There have been no significant changes to Ever-Green’s size, structure, and ownership within this reporting period.

Ever-Green updates the ESG metrics annually. We welcome feedback on these reporting efforts and guiding principles directing our company to be good stewards. Reporting inquiries can be directed to Amy Stanton, Director of Environmental Health and Safety.

Goals and Progress

Ever-Green works to continuously advance the energy systems we manage and our day-to-day operations. Implementing the materiality assessment survey, which takes stock of the ESG topics most important to our stakeholders, has bolstered this effort to include a larger audience in driving change across the organization while assisting in focusing on goals that are important to those that matter most to the company: our customers, communities, and team members.

Read more about the materiality survey in section Materiality Assessment 2025 under Governance.

    Environmental

    As a community energy system developer and manager, Ever-Green is on the frontlines of pursuing a sustainable future. Our team works collaboratively with operational partners and local communities to act as environmental stewards through the continuous improvement of operations and investment in system decarbonization. Applying decades of experience in locations with varied fuels, regulations, and climates, we help clients reach their environmental goals through means that are economically feasible, reliable, flexible, and resilient in the face of change and uncertainty.

    Advancing decarbonization and environmental stewardship are important to our organization. Ever-Green provides technical expertise to clients who are working to develop low-carbon energy systems to address the impacts of climate change. We work collaboratively with our operations partners and local communities to continually improve our operations and contribute to planning for a more sustainable future.

    The United Nations Sustainable Development Goals are a holistic blueprint to achieving an equitable, sustainable future. Given Ever-Green’s diverse involvement in utility operations, management, and development, the company has the opportunity to contribute to several of these goals.

    The Sustainable Development Goals that apply to our areas of work are as follows:

    Good Health and Wellbeing
    Ever-Green stakeholders value the safety and well-being of all team members including employees and contractors.  The company supports the wellbeing of our team through the implementation of robust safety policies and training, as well as promoting healthy choices through our wellness activities and educational opportunities. The company also plays an integral role in maintaining the wellbeing of several communities by supporting the function of medical campuses.
    Quality Education
    Ever-Green plays a role in the function of higher education campuses where we operate and manage the campus heating and cooling systems. For campus projects and studies, Ever-Green supports academic enrichment by managing project interns, supporting course curriculum, and creating student engagement opportunities. The company has a long history of developing educational opportunities to advance energy literacy from providing facility tours and guest lectures for college courses to creating public art to promote community dialogue. Additionally, Ever-Green provides educational assistance, both internally to employees and through external scholarships to those outside the company.
    Water and Sanitation
    Water is critical for our facilities in the storage and distribution of thermal energy. Additionally, it is a valuable resource in the communities we serve. Ever-Green prioritizes its conservation and responsible management by following best management practices and adhering to compliance codes that work to minimize the release of hazardous chemicals and materials while conserving the resource where possible.
    Sustainable Energy
    Ever-Green is committed to developing low-carbon energy solutions to address the impacts of climate change. The company works collaboratively with operations partners, utility customers, and local communities to continually improve our operations and contribute to planning for a more sustainable future. Alongside clients, Ever-Green works to utilize proven technologies with innovative solutions that are financially viable, resilient to changing markets and reliability threats, flexible, and environmentally responsible. Advancement of the energy systems managed by Ever-Green is one of the company’s high priorities. Ever-Green takes a holistic approach to decarbonization, starting with improving efficiencies, reducing the energy needed, and then moving to low-carbon solutions. This applies both to existing and new energy systems utilizing low-carbon fuels and energy sources like biomass, solar thermal, and geothermal, while also improving system efficiencies. The company also works closely with energy system customers to improve their building efficiencies by providing energy use data as well as engineering support for efficiency projects. In Saint Paul customers can apply for financial support through an efficiency program.
    Economic Growth
    Ever-Green’s utilities provide exceptional energy services that support local businesses and economic growth. Additionally, our team members participate in community conversations around economic development, local services, and community initiatives. Examples include local development organizations like Chambers of Commerce and the Owners and Managers Associations. As Ever-Green expands and continuously improves, the company explores and deploys technological upgrades that optimize resource efficiency in consumption and production to reduce carbon emissions, improve efficiency, and maximize the economic value of the energy used.
    Reliable Infrastructure
    Reliable infrastructure is essential to Ever-Green’s ability to distribute heating and cooling to customers. Our energy systems benefit from well-maintained city, state, and federal infrastructure including roads, flood mitigation, and electricity and water utility infrastructure.
    Sustainable Cities and Communities
    Ever-Green is committed to reducing environmental impacts on the cities where we operate. Our district systems provide efficient, cost-effective, and reliable energy services to a variety of end users including the systems that serve the downtown core of multiple cities as well as medical and college campuses. As Ever-Green integrates low-carbon technologies, district systems can decarbonize multiple buildings at once. In addition to our services, Ever-Green is also continuously improving its waste reduction and recycling efforts to minimize environmental impacts.
    Sustainable Consumption and Production
    Sustainable management and efficient use of natural resources is paramount to company activities and goal setting. To further this commitment, the company has adopted sustainable practices and reporting. Reducing the inputs necessary for production of thermal energy is an ongoing process. This includes conversion from steam to hot water, which improves efficiency and saves water. Steam to hot water conversions also expand opportunities for our systems to integrate renewable fuels and technology.
    Climate Action
    Through its decarbonization and energy efficiency efforts, Ever-Green aims to reduce greenhouse gas emissions in the building heating sector to mitigate the impacts of climate change. The company has studied the feasibility of innovative systems that utilize aquifer thermal energy storage and wastewater energy capture, and industrial waste heat capture including data centers. These technologies will support reductions in greenhouse gas emissions. Ever-Green also works closely with its property insurance carrier to identify and mitigate potential future climate change risks. The risks associated with climate change are physical risks that can have detrimental financial implications if not addressed. These risks, including extreme precipitation-related events, extreme temperatures, and sea level rise, vary across different locations and over time. While many of these risks have long-term horizons, Ever-Green has taken steps to mitigate current risks such as installing flood barriers and conducting structural integrity inspections of buildings. The company will continue to reassess these risks and work on additional strategies to address future risks of climate change.

    Ever-Green works with clients to deliver heating, cooling, and electricity. Emissions details are shared for energy systems where Ever-Green has operational control, meaning wherever the company is contracted to operate or directly owns a system.

    CO2e Emissions Scope 1

    Scope 1 emissions for normal operating conditions of the district heating systems are generated from the combustion of natural gas and wood biomass. Fuel oil and coal are used in some operations as a backup fuel when natural gas curtailments occur, or to supplement high demand during extremely cold weather. EPA November 2015 CO2 Emission factors were used in calculations for Scope 1 emissions. Emissions are also included from the combustion of gasoline and diesel in company-owned fleet and mobile equipment. In instances where fuel consumed by a fleet vehicle was not known, mileage for the year and information from the EPA’s fueleconomy.gov were used to estimate consumption.

    CO2e Emissions Scope 2

    Scope 2 emissions are calculated from electricity purchased for each operation. If an emission factor from the electrical utility provider was not available for 2024, the previous year’s emission factor was used. If the electrical utility provider did not release region-specific data, the emission factor from the EPA eGRID’s subregion was used. Renewable Energy Credits retired by District Energy St. Paul for 2024 were used to offset emissions from electrical usage for the heating and cooling systems.

    Water is an essential resource for delivering efficient heating and cooling to the communities and campuses Ever-Green serves. The company is committed to operating and managing utilities in a way that reduces the risk of potential negative environmental impacts. Water is withdrawn from city water supplies and groundwater wells for process use and is monitored for potential contamination in accordance with discharge permits. The water leaving Ever-Green facilities meets regulations set by the US Environmental Protection Agency Clean Water Act, as well as state regulatory requirements and those set by municipal wastewater treatment plants. Water not directly discharged to a wastewater treatment system or surface water body is lost due to evaporation or distribution system losses.

    Ever-Green has taken important steps to help reduce waste throughout our operations. Our teams work to minimize, reuse, or recycle the waste before resorting to disposal. Waste can be generated from routine operations and maintenance tasks, construction, and other support tasks. Waste such as scrap metal, electronics, paper, used oil, and batteries are sent to facilities where they can be processed and recycled. At our Saint Paul offices and District Energy St. Paul plant, the team also composts food waste through a local service provider and commercial compost facility. In 2024, Energy Park Utility Company operated by Ever-Green was awarded a grant through the BizRecycling program in Minnesota that helped to set up recycling services. As a result of this effort, approximately 144 pounds of waste was recycled at the site last year. Moving forward, we aim to continue to increase recycling initiatives and improve waste data collection efforts across the company.

    Waste Type Volume Units
    Landfill 7,708 Metric Tons
    Recycled (scrap metals, used oil, universal waste, etc.)* 37 Metric Tons
    Beneficial Reuse 11,152 Metric Tons

    *Excludes single stream recycling from office locations.

    Utility Emissions and Fuel Mix Data

    Due to varying operational factors, size, and customer needs, the utility emissions data and heating fuel mix percentages reported below are not directly comparable across all locations.

    CoolCo Cooling CO2e Emissions

    District Energy St. Paul Heating CO2e Emissions

    District Energy St. Paul Cooling CO2e Emissions

    District Energy St. Paul Heating Fuel Mix Percentage

    Duluth Energy Systems Heating CO2e Emissions

    Duluth Energy Systems Heating Fuel Mix Percentage

    Energy Park Utility Company Heating CO2e Emissions

    Energy Park Utility Company Cooling CO2e Emissions

    Energy Park Utility Company Heating Fuel Mix Percentage

    Milwaukee Regional Medical Center Heating CO2e Emissions

    Milwaukee Regional Medical Center Cooling CO2e Emissions

    Milwaukee Regional Medical Center Heating Fuel Mix Percentage

    Social

    Ever-Green’s greatest asset is our people. We strive to build a culture of inclusion and respect through investment in equity, health, and wellbeing. This commitment starts from within and extends into the communities we serve.

    Ever-Green is an equal opportunity employer committed to a work environment in which all individuals are treated with respect and dignity. All employees should be able to work in an environment that promotes equal employment opportunities and is free from any form of harassment. Ever-Green prohibits any form of harassment, discrimination, racism, and retaliation.

    Ever-Green supports an environment where all employees are welcome, valued, and able to do their best work. Ever-Green maintains and enforces a Non-Discrimination and Anti-Harassment Policy and Compliance Procedure. We also conduct employee surveys to help assess the strengths of the company as well as areas to identify improvements. The value we place on our people and creating an inclusive environment has been recognized in these surveys as one of our strengths.

    Ever-Green works to advance employee skills by encouraging and supporting professional development and education through diverse pathways that best suit individual needs.

    Ever-Green Energy University (EGE•U) is the professional training institute of Ever-Green coordinated by the Human Resources department. This program provides training opportunities for employees from their first day of employment to retirement. EGE•U is a multifaceted approach to employee learning and development that is purpose-driven, promoting the foundational elements of Ever-Green’s company values — exceptional service, excellence, people, integrity, respect, environmental stewardship, and community. The program encourages employees to invest in themselves through the company’s commitment to developing, encouraging, and promoting high-quality talent.

    Ever-Green provided more than 4,156 hours of training (which averages to be over 24 hours per employee) to its employees in 2024. Training courses are offered to equip employees with the knowledge and skills required to perform their jobs and advance in their professions in a safe and ethical manner. In addition to job-specific training, EGE•U provides a wide range of voluntary training and learning opportunities such as topics on mental and physical wellness, nutrition, customer care, system specific learnings, and environmental sustainability. Training on information security, sexual harassment, unconscious bias, and workplace safety are required to be taken by all employees. Workplace safety training covers a variety of topics based on job requirements and systems being operated.

    EGE•U is structured into four schools:

    ONBOARDING provides new employees the opportunity to get to know the organization through an orientation process.

    PROFESSIONAL DEVELOPMENT offers employees diverse learning opportunities encouraging growth in knowledge, skill, and ability.

    LEADERSHIP TRAINING is practical leadership development offered specifically to hone the skills of leadership for their role in the organization.

    ORGANIZATIONAL LEARNING educates employees on the foundational elements of Ever-Green through staff-led training, roundtables, and tours.

    As one component of the talent development process, Ever-Green conducts annual performance reviews to assess employee overall performance during the previous year and provide a guide for goal setting and individual development in the coming year. Additionally, each manager is provided with the necessary tools and training to help each employee work toward their individual development goals.

    Ever-Green offers a competitive benefits package to employees, including medical, dental, and vision insurance. The company offers voluntary benefits that promote mental, behavioral, and preventative health. Additionally, a comprehensive wellness program driven by employees across the organization supports and promotes health, community, social, and financial wellness initiatives.

    Employee benefits can vary depending on collective bargaining agreements. Ever-Green offers a range of benefits to our non-union employees and union employees represented by a collective bargaining agreement providing for participation in the company-sponsored benefit program including:

    • Medical insurance with choice of co-pay or high-deductible plan
    • Health savings account with additional company contribution
    • Flexible spending account
    • Dental insurance
    • Vision insurance
    • Employee basic and voluntary life and AD&D insurance
    • Dependent basic and voluntary life insurance
    • Short-term and long-term disability
    • Group accident insurance
    • Critical illness insurance
    • 401(k) retirement plan
    • Emergency travel protection
    • Identity theft protection
    • Employee assistance program
    • Paid time off and eleven paid holidays
    • Paid leaves of absence
    • Tuition reimbursement program
    • Company-paid parking or bus passes
    • Pet insurance

    Educational Assistance
    Ever-Green’s educational assistance program encourages professional development through formal education. Our employees’ knowledge and unique skillsets are fundamental to our company. To foster continued education and professional growth, Ever-Green offers an educational assistance program to which all regular, benefit-eligible, full-time and part-time employees are eligible and encouraged to apply. Through the program, Ever-Green provides reimbursement of 90% of the cost of tuition and books up to $5,250 per calendar year.

    Retirement Transition
    The Voluntary Employee Retirement Notice (VERN) program provides an incentive to eligible employees who are contemplating near-term retirement to give Ever-Green advance notice of their plans and to participate in a more orderly transition and transfer of essential knowledge before their final day of work. The VERN program is also a proactive step in Ever-Green’s talent management strategy, which includes providing meaningful professional development opportunities to prepare our employees for success in their current and future roles within the organization.

    Parental Leave
    Parental leave entitlement varies by location. Ever-Green follows applicable federal and state regulations. Parents who have not met the federal and/or state eligibility requirements may be eligible for two weeks of paid parenting leave for the birth or adoption of a child under the company’s leave policy. All employees are entitled to parental leave and those who have opted to exercise this right have all returned to work following their leave within this reporting period.

    Ever-Green strives for a positive safety culture and adherence to the highest safety standards for its employees, and also those engaged in the company’s work. Company decisions and policies are created with the foundational belief that safety does not occur by chance and is the result of careful attention to the work performed by all those involved, including managers and supervisors.

    Our Safety Approach

    Our commitment to safety excellence is reflected in our comprehensive training program. We leverage a multi-faceted approach, providing employees with impactful in-person, hands-on experiences for critical skills development. Complementing this, our learning management system offers accessible and flexible resources for ongoing education and knowledge reinforcement. Furthermore, we strategically employ classroom-based training when the subject matter benefits most from interactive discussion and direct instructor guidance, enabling our workforce to be well-prepared and empowered to maintain a safe working environment.

    We empower our employees to be proactive in maintaining a safe environment by providing thorough training on risk recognition and mitigation. For safety concerns that require further intervention, we have established clear reporting pathways to supervisors and facility management. To ensure a robust safety culture, our workplaces undergo regular inspections by Environmental Health and Safety (EHS) personnel, dedicated safety committees, external consultants, and regulatory bodies, all contributing to the identification of potential hazards. Identified risks are addressed promptly, with minor issues corrected immediately. For more complex risks requiring additional resources, we implement a tracking system for timely resolution. Our hazard mitigation strategies are guided by a well-defined hierarchy of controls, prioritizing the most effective measures. Company preference in resolving risk is always to eliminate it entirely, otherwise make a substitution which replaces the hazard with a safer alternative, utilize engineering controls to isolate people from the hazard, issue administrative controls to change the way people work, and as a last resort, utilize personal protective equipment to protect the employee. Employees are expected to report all observed work-related hazards and hazardous situations. Reports may be submitted informally, in a verbal, written, or electronic message to a supervisor, a member of the management team, or the EHS department.

    Employees receive training to minimize unnecessary risks and avoid situations where factors may lead to injury or adverse health effects. Reporting unsafe conditions or voluntarily removing themselves from hazardous work areas will not result in negative consequences. This approach creates a safe and healthy work environment for all employees.

    Incident Response

    In the event of workplace incidents or injuries, an immediate response is essential. Upon receiving a report of a work-related incident, Ever-Green team members adhere to the procedures outlined in the Incident and Injury Reporting Policy and Incident Investigation Policy. Ever-Green works to see that all employees receive proper care and that incidents are thoroughly investigated to determine root causes and proactive steps to prevent recurrence. The investigation is led by the employee’s supervisor, manager, or the EHS department, who work with the affected employee and others who have knowledge of the process, risks, and can contribute to identifying and implementing corrective actions.

    Proactive Safety

    In addition to reporting incidents, Ever-Green maintains a culture of proactive safety by tracking essential safety metrics. The proactive safety metrics include monthly numbers on trainings, inspections, near misses, safety committee meetings, and good catches. Good catches were implemented by the company to provide employees the opportunity to analyze and interpret patterns in hazard recognition that assists our teams in more effectively applying preventative corrective measures to a broad range of tasks and environments. Proactive safety tracking focuses on safety and well-being at the core of every task. It also initiates dialogue among employees to share examples of good safety tips across different operations.

    Managing Health Risk

    Employees in roles with increased potential for exposure to conditions that could adversely impact health are enrolled in health monitoring programs overseen and deployed by licensed health care professionals. Monitoring employee health conditions and early identification of impacts helps to indicate where risks are not properly being mitigated by the company, or where there is a need for improved controls, following the hierarchy of controls by preferred control method. Results of health monitoring are only provided to employees who can help to review records and determine if additional monitoring and controls are needed and kept private from the rest of the company. Employees who have access to these records participate in HIPAA training annually, so they are aware of privacy policies and Ever-Green’s expectations.

    Health and Safety Committees

    The Minnesota Occupational Health and Safety Administration (MNOSHA) requires that all employers with more than 25 employees are required to establish a joint labor-management safety and health committee for their workplace. Ever-Green is committed to providing a safe workplace and protecting the wellbeing of its employees and has established a joint management-worker health and safety committee for its Minnesota locations. Members meet monthly to:

    • Generate and communicate ideas that lead to increased safety awareness
    • Establish a culture that promotes reporting of injury, illness, and incident
    • Review work-related incidents
    • Provide a system to report hazards and safety related suggestions
    • Coordinate efforts of the committee with other company departments to facility active engagement
    • Communicate activities with non-members and encourage their involvement in efforts to promote a strong safety culture
    • Provide general support for the implementation of a comprehensive safety program


    Safety Training

    Safety training is provided to all employees upon beginning work and periodically throughout the year. It is delivered through a variety of mechanisms, including in-person classroom, virtual, and on-the-job-training. Training topics vary based on job responsibilities, applicability, risk, and awareness needs, and may include but are not limited to:

    • Asbestos awareness
    • Confined space
    • Control of hazardous energy/lockout tag out
    • Cranes, hoists, and rigging
    • Driver and fleet safety
    • Electrical safety
    • Emergency response
    • Ergonomics
    • Excavation and trenching
    • Fall protection
    • Fire prevention
    • Hazard communication/right to know
    • Hot work
    • Hearing conservation
    • Incident reporting
    • Mobile equipment
    • Personal protective equipment
    • Physical security
    • Powered industrial truck
    • Respiratory protection
    • Traffic flow
    • Walking working surfaces


    Safety Programs

    To mitigate negative occupational health and safety impacts to employees and those engaged in work at facilities the company operates, Ever-Green has created A Workplace Accident and Injury Reduction (AWAIR) program. The objective of this program is to maintain a safe and healthy workplace. The program outlines the following:

    • Roles and responsibilities for managers, supervisors, and employees for implementation of the safety and health programs and policies as well as how continued participation of managers will be established, measured, and maintained
    • The established methods used to identify, analyze, and control new or existing hazards, conditions, and operations
    • Communications plan to all affected employees, so they are informed of work-related hazards and controls
    • Process for workplace accidents investigation and corrective action implementation
    • Enforcement of safe work practices and rules

    Volunteerism

    Ever-Green is committed to supporting activities that enhance the communities we serve. The volunteer program offers Ever-Green team members the opportunity to share in this effort by providing time away from work to participate in activities that serve and support the community. Ever-Green currently provides eligible employees up to eight hours per calendar year of paid time off to use for group volunteer activities sponsored by the company. Employees logged 178.850 hours of total volunteer hours in 2024.

    Human Rights

    No operations or corporation suppliers are considered to have significant risk for incidents of forced or compulsory labor.

    Corruption

    Regular training surrounding conflict of interest is conducted to minimize the potential for corporate corruption. Additionally, external audits take place annually for both the parent company and Ever-Green. All operations are assessed for risks related to corruption. There have been no confirmed incidents in this reporting period.

    Certain customer-related information constitutes confidential and proprietary information. Any information that belongs to Ever-Green, or its customers, is maintained in confidence whether it is marked “confidential” or “proprietary” or not. Employees may not copy or distribute any confidential or proprietary program, material, or other information which they have access to due to their employment with Ever-Green, other than for approved use. This restriction applies during and after employment with Ever-Green or any of its affiliates. If in doubt whether any program, material, or other information is confidential or proprietary, employees are required to consult the CEO or general counsel before disclosure. Any situation in which Ever-Green’s proprietary information has or may have been compromised is reported immediately to Ever-Green’s general counsel. Employees who violate this policy may be subject to discipline up to and including termination and legal action.

    Ever-Green’s cybersecurity initiatives are essential in protecting internal, customer, and partner information and supporting reliable energy service delivery. Ever-Green’s cybersecurity framework is guided by the information security program. This program includes directives for industrial control systems to address their unique security posture. The industrial control systems are segmented from the IT networks. Training is provided to all employees on an annual basis and targeted training is also conducted if the situation arises. Assessments and penetration testing are completed annually, with the outcomes being prioritized in ongoing efforts. Cyber insurance acts as the backstop of all cybersecurity efforts, working as a final guardrail in the instance of a technological breach. Employees who completed the trainings were evaluated on their individual cybersecurity proficiency through phishing simulations and testing. This allowed the information systems team to customize training and provide additional guidance and education when needed.

    Governance

    Strong, dependable governance that operates with integrity is essential in maintaining Ever-Green’s practice of conducting business to the highest standard. Through governing policies and board oversight, the company preserves accountability and a culture of achieving excellence.

    Ever-Green works with a range of individuals and organizations to understand the priorities, goals, and needs of the customers and communities we serve. Collaborating with stakeholders enriches our understanding of the benefit that our services can provide and can expand the reach and partnership of Ever-Green operations at the community, regional, and national levels. This may include groups and individuals served by utility systems, or potentially served by future systems under design, as well as those interested in the environmental, social, and economic considerations of the work.

    We consult with the following key stakeholders for input that influences Ever-Green’s operational and strategic direction, as well as ongoing initiatives:

    Customers: For the utility businesses we manage, Ever-Green works closely with customers to understand their needs, so that we can align our operational goals with their priorities.

    Communities we serve: Ever-Green works closely with community organizations and leaders to understand the priorities around economic development and community services to help bolster community goals.

    State agencies: Ever-Green works with state agencies responsible for commerce, energy, environmental protection, natural resources, and labor to understand state policy priorities and confirm compliance with regulatory requirements.

    Local government agencies: Ever-Green partners with local government units that are responsible for planning, climate action, workforce, economic development, and finance to assist with fulfilling their goals as it pertains to our business.

    Other key partners: Other stakeholders include partners involved in the planning and execution of regional well-being, climate action, community engagement, energy planning, business development, higher education, and technological advancement.

    Stakeholder Engagement

    The energy systems that Ever-Green operates, manages, and maintains have a range of engagement approaches based on the system owners, customers, and communities that they serve. Our team members are engaged in community activities and work closely with building owners and customers. We respond to customer and community inquiries. We host customer events and regularly provide updates on the systems and company news. Each year, District Energy St. Paul and Duluth Energy Systems customers have the opportunity to respond to a customer satisfaction survey to provide direct feedback.

    When pertinent, meetings are hosted with local officials to discuss how our energy projects and energy operations intersect with local initiatives, anticipated policy changes or goals, rules and regulations, and opportunities to work together. Ever-Green participates in local, regional, and national working groups focused on workforce, environmental stewardship and climate action, equity, workplace safety, policymaking, industry advancement, training, and technology exchange. Additionally, customer and materiality surveys are conducted so that stakeholder concerns and perspectives are considered as the company develops and grows.

    Understanding the goals and values of Ever-Green’s stakeholders is critical in shaping future company operations, partnerships, and investment decisions. In 2025, Ever-Green conducted its second materiality survey to identify the impacts of materiality topics on the company and its stakeholders. The material topics were determined by our core values as well as by researching industry trends, and global ESG frameworks namely Sustainability Accounting Standards Board (SASB) and GRI standard topics for energy and related industries. We conducted a survey in which Ever-Green stakeholders were asked to rank the importance of each topic considering the impact if the company’s performance improved or declined in the said topic. The feedback provided was analyzed and the importance of each material topic is given below.

    Impact on Ever-Green Energy

    The results from the materiality assessment underscored our stakeholder’s high prioritization of system reliability, cybersecurity, and business ethics and integrity. While these were the top ranked topics overall, the materiality assessment also revealed important insights and feedback for Ever-Green’s operations. To understand the patterns of our stakeholders’ responses, the results from the survey were analyzed using factor analysis, which grouped topics with similar response patterns. This helped in identifying four main themes showing what matters the most to our stakeholders:

    1. Operational Excellence: Our stakeholders place a high value on core business operations driven by resilient and affordable systems, business integrity, and overall stability.

    2. Environmental Stewardship: Our stakeholders prioritize practical management of environmental resources such as those that conserve water, reduce waste and air pollution, and reuse resources wherever possible.

    3. Community Impact: Our stakeholders care about the impact we have on the communities where we operate. This includes employee and customer safety, fairness and inclusion in practices, and philanthropy.

    4. Climate Impact: Decarbonization and climate change concerns are strongly grouped together by the stakeholders, indicating Ever-Green should prioritize climate impacts and energy transition goals.

    This analysis reflects Ever-Green’s own core values, demonstrating that our business model has been designed by the needs of our customers and stakeholders, and providing useful insights to the company priorities and value to continue operating responsibly. In addition to the materiality survey, our annual customer surveys continue to show a growing interest in renewable energy among our stakeholders in Saint Paul and Duluth. This information is continuously shaping Ever-Green’s ESG policy and goals. Additionally, this survey will be updated in response to feedback collected and re-distributed in future surveying cycles.

    Ever-Green has been led by an exceptional board of directors since its inception. The board has several essential responsibilities, including reviewing, editing, and approving the company’s purpose, values, strategy, reported information, and sustainability policy. The board is also responsible for identifying and managing economic, environmental, and social topics and their impacts, risks, and opportunities, including the implementation of due diligence processes. To understand stakeholder perspectives in this work, materiality surveys are conducted and presented to the board.

    The board of directors convenes the following committees:

    • Audit and Risk
    • Personnel and Compensation
    • Governance and Social Responsibility

    Committees are responsible for decision-making on economic, environmental, and social topics. These topics are reviewed and prioritized by committees for full board review and approval annually. Additionally, special learning sessions with the engagement of external speakers from a variety of relevant backgrounds are presented to the group regularly.

    Ever-Green conducts a comprehensive enterprise risk assessment every three to four years that identifies action items related to organizational risk, including economic, environmental, and social topics. The identified action items are then shared with and reviewed and approved by the board and the relevant committees.

    Integrity is a core value of the organization and its people. The company strives for excellence in business conduct and is committed to accountability and fairness, an approach that informs our policies and procedures, and day-to-day operations. All employees review, acknowledge, and, when necessary, receive training on Ever-Green’s employee handbook. The handbook and conflict of interest policy contain provisions that provide direction to employees on how to seek advice and guidance about ethical and lawful behavior and how to report related concerns. Reporting can be directed to the office of the general counsel, human resources, the CEO, or the board. Financial transparency and diligence are essential to business ethics and sustainability. The organization completes consolidated financial statements annually.

    Financial Disclosure

    No company funds or other assets are paid or furnished, directly or indirectly, to a political party or political candidate or incumbents. No political contributions are made by employees in the name of Ever-Green or any affiliate. Ever-Green has not received financial assistance from any government during the reporting period.

    Conflict of Interest

    If an employee is unsure whether a transaction, activity, or relationship constitutes a conflict of interest, they are encouraged to discuss it with their manager or company general counsel. An officer of the company must approve any exceptions to the Conflict of Interest Policy in writing. The governing body plays a key role in mitigating conflicts of interest. They are responsible for reviewing and approving the conflicts of interest policy, and if needed, arbitrate any conflicts. If a conflict arises, it must be reported to the company general counsel.

    Ever-Green maintains the practice of continuous improvement to identify areas of opportunity and vulnerability where we can make an impact on operations and projects. Implementing our materiality assessment survey has bolstered this effort by including a larger audience in driving change across our organization and focusing on goals that are important to those that matter most to our team members, customers, and the communities we serve.

    Ever-Green’s parent organization, District Energy St. Paul: Ever-Green’s parent organization, District Energy St. Paul, was founded over 40 years ago as a public-private partnership. This legacy remains with Ever-Green today, with collaborative partnerships and organizations providing opportunities to connect, learn, and grow as a business. Our partners are key to our connection to business, environmental, and industry collaboration:

    • Area Partnership for Economic Expansion
    • Bioeconomy Coalition
    • Citizens Utility Board
    • City of Duluth
    • City of Saint Paul
    • Clean Energy Economy Minnesota
    • Climate Smart Municipalities
    • Duluth Chamber of Commerce
    • Ecolibrium3
    • Fresh Energy
    • Global Minnesota
    • Greater Saint Paul Building Owners and Managers Association
    • International District Energy Association
    • Saint Paul Chamber of Commerce
    • Saint Paul Downtown Alliance
    • Saint Paul Port Authority
    • Sewer Thermal Energy Network
    • University of Minnesota Institute on the Environment