Transparent Progress. Sustainable Solutions.

Ever-Green is committed to advancing the sustainability of systems, from conception through implementation. Our 2025 reporting demonstrates the company’s dedication to transparency as an ethical and conscientious organization.

Leadership Sustainable Development Statement

Every system Ever-Green Energy operates or develops is rooted in a community: a downtown, a campus, or a neighborhood. Ever-Green’s 2025 Environmental, Social, and Governance (ESG) report reflects a year when that connection deepened. From technology milestones, growing and renewed partnerships, to industry recognition earned by teams working across the country, I am proud of the work we advanced this past year. Ever-Green remains committed to sustainability, transparency, and to the partners, people, and communities who make this work meaningful.

The start of 2025 was marked by a new partnership as we welcomed Hennepin County Energy Center as an Ever-Green operation. The City of Duluth renewed its agreement with Ever-Green to continue its management of Duluth Energy Systems, a partnership now more than a decade strong, delivering reliable district energy across downtown Duluth, Canal Park, and the East Hillside neighborhoods. The International District Energy Association held its 2025 annual conference in the Twin Cities, where our team members presented work across our operations, including Milwaukee Regional Medical Center Thermal Plant and the Board of Water & Light in Lansing, Michigan, to nearly 900 of our industry peers. We were also proud to welcome 60 conference attendees from across the country and around the globe to tour the District Energy St. Paul and the University of Minnesota plants.

Technological innovation continued to be at the forefront of Ever-Green’s work. District Energy St. Paul received a recognition from the Midwest Cogeneration Association for a three-year fuel flexible pilot conducted in partnership with Caterpillar, and the Department of Energy. The results demonstrated that a 2 MW combined heat and power (CHP) generator set can successfully operate on 100% hydrogen fuel, validating the technology while advancing Ever-Green’s understanding of next-generation fuel options.

As the energy landscape changes rapidly, the ability to switch between fuel sources –biomass, natural gas, hydrogen, geothermal, and beyond– becomes critical, not only from an innovation standpoint but also for securing an energy resilient future. Proving out these technologies has been a defining theme of this past year. Thermal energy networks, particularly geothermal technologies, have been emerging as a compelling next-generation energy solution that can be deployed at scale to connect communities with local renewable thermal energy.

This year brought significant milestones across our geothermal projects. At Oberlin College in Ohio, a decade of partnership produced something worth celebrating: the campus achieved carbon neutrality through a steam-to-hot-water conversion, closed-loop geothermal heat pumps, and deep energy efficiency work. Transforming the College’s century-old steam system not only resulted in true carbon emission reductions of 86% since 2007, but the campus now also saves 5 million gallons of water annually, and system energy efficiency has improved by 30%. In the Greater East Side of Saint Paul, construction work continues at The Heights, a Saint Paul Port Authority redevelopment, where an aquifer-based geothermal technology will be installed to serve several light industrial buildings and residential buildings including affordable housing. For its sustainability efforts, The Heights received LEED Platinum Certification from the U.S. Green Building Council, and the Economic Development Association of Minnesota recognized the redevelopment project with its 2025 Innovation Award. Thanks to long-term collaboration and strong community advocacy, this project remains at the forefront of energy innovation in the country, and we are proud to be a partner in this work. Alongside the hydrogen pilot partnership, District Energy St. Paul, in partnership with the City of Saint Paul, commenced a State of Minnesota funded geothermal feasibility and pre-design study for Mount Airy Homes, a public housing community and a District Energy customer for over 40 years. These projects, rooted in real systems and real communities, reflect that geothermal is a proven and scalable community-level solution.

Looking ahead, we are closely watching the growing opportunity around data center waste heat reuse, which holds real promise for district energy systems to capture and redistribute heat generated from data centers as a byproduct. In Saint Paul, the Clean Heat St. Paul initiative seeks to recover waste heat from the effluent of Metropolitan Council’s Water Resources Recovery Facility and integrate it into District Energy St. Paul using heat recovery systems. Developed in collaboration with the City of Saint Paul, the Metropolitan Council, and Xcel Energy, Clean Heat St. Paul has the potential to achieve substantial reductions in greenhouse gas emissions. The project is currently advancing through planning and stakeholder engagement stages. The road ahead for energy transition is not without challenges, but we remain steadfast and optimistic about the potential of innovative thermal resources.

The energy systems of the future will be smarter, cleaner, more resilient, and more interconnected. Ever-Green intends to be part of building that future by doing the hard work of proving what is technically and financially possible in partnership with the communities we serve. I am grateful to our employees and board members for their continued dedication to excellence in the work we do, and for the trust our partners place in us.


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. Environmental stewardship, operational excellence, and a commitment to transparency drive us to publish our ESG reports on a voluntary basis. This helps us assess company progress and growth opportunities while providing important information for our customers, partners, and stakeholders.

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 sections present key ESG metrics disclosed with reference to the Global Reporting Initiative (GRI) Standards. The GRI framework is the world's most widely used sustainability reporting system with a stakeholder-focused approach. The structure of the standards helps us identify and communicate material topics most relevant to our operations, and the communities we serve. We continue to monitor existing and emerging GRI standards applicable to our organization as well as other relevant ESG frameworks to maintain alignment with robust reporting practices and our stakeholders' needs. 

The latest metrics cover the reporting period from January 2025 to December 2025. There have been no significant changes to Ever-Green's size, structure, and ownership within this reporting period. 

Vision and Progress

Ever-Green works with partners to transform campus and community energy systems to their full potential for a sustainable and resilient future. Each system is unique in its configuration, and understanding each partner’s goals is a top priority for Ever-Green. 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 under Governance. To learn more about the company’s values and legacy, visit the about section of the website. 

    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 efficiency and decarbonization. Applying decades of experience in locations with varied fuels, regulations, and climates, we help partners reach their environmental goals through means that are economically feasible, reliable, flexible, and resilient in the face of change and uncertainty.

    Advancing efficiency, decarbonization, and environmental stewardship are important to our organization. Ever-Green provides technical expertise to partners 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.

    Ever-Green plans and develops systems that balance reliability, cost-effectiveness, and sustainability. The company’s approach to decarbonization is holistic, starting with improving efficiencies, reducing the energy needed, and then moving to low-carbon solutions using proven technologies. This applies both to existing and new energy systems utilizing low-carbon fuels and energy sources like biomass, solar thermal, and geothermal. Besides operations, maintenance, and management services, Ever-Green’s portfolio includes holistic project development services from concept to operation. We enable our partners from a variety of sectors and campuses – including healthcare, higher education, and development— to move their decarbonization and energy efficiency plans cost effectively. We also partner with higher education institutions to provide pro-bono carbon neutrality planning and consulting services. 

    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 campus heating, cooling, and power 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 partners, 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. 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 Building 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 and cooling sectors 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, industrial waste heat capture including data centers, and many other emerging low-carbon technology solutions. 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 discloses data on air emissions, waste management, and water management for facilities over which the company holds operational control. Operational control is determined on a facility-by-facility basis. For facilities operated under operations, maintenance, and management (OMM) agreements, operational control is defined as the authority to introduce and implement operating procedures and ensure day-to-day regulatory compliance, including compliance obligations under air, water, and waste permits. 

    Air emissions from Ever-Green operations are associated with fuel combustion and electricity purchased to produce and deliver heating, cooling, and electricity.  Ever-Green currently reports on Scope 1 and 2 greenhouse gas emissions from facilities over which it holds operational control.  

    Air emissions from systems operating under OMM agreements are excluded from Ever-Green's ESG reporting when both of the following conditions are met: the client independently reports its own Scope 1 and Scope 2 emissions data, and the client has specifically requested exclusion from Ever-Green's reporting.  

    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. Gases included in the calculations include methane, nitrous oxide, and refrigerant-based gases.

    Emissions are also included from the combustion of gasoline and diesel in company-owned fleet and mobile equipment.  Following an upgrade to our telematics system in 2025, average monthly mileage was estimated to account for data transfer between the legacy and new systems. In instances where fuel consumed by a fleet vehicle was not known, mileage for the previous year and information from the EPA's fueleconomy.gov were used to estimate consumption.  In fiscal year 2025, Scope 1 emissions increased due to the addition of four new operations. This is an indicator of company growth rather than a change in performance at existing facilities. 

    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 2025 at the time of reporting, the previous year's emission factor was utilized. Where utility-specific data was unavailable, the EPA eGRID subregional emission factor was applied.

    Renewable Energy Certificates retired by District Energy St. Paul in 2025 were used to offset market-based 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. District Energy St. Paul also reuses wood ash generated from the combustion of biomass to enrich farm soil as a liming agent, and for sludge solidification. This reduces the need for commercial lime and solidification agents while diverting landfill waste.  For operations sharing a building with other businesses or tenants, waste is commingled and only the total building waste tonnage are tracked. As a result, waste volumes from these shared facilities are excluded from Ever-Green's reported totals to avoid gross overestimation. We aim to improve our data collection methodology as well as to increase waste reduction and recycling efforts across the company. 

    Waste Stream Metric Tons
    Disposal 2,579
    Recycled* 67
    Beneficial Reuse 6,468

    *Scrap metals, used oil, universal wastes. 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 that encourages, supports, and celebrates employees of all backgrounds and beliefs. 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 maintains and enforces a Non-Discrimination and Anti-Harassment Policy and Compliance Procedure. Ever-Green trains all employees on harassment and discrimination across all locations, and has a thorough, documented process for reporting all perceived incidents of discrimination, harassment, or retaliation. We also conduct employee surveys to help assess the strengths of the company as well as areas for improvement.  Employees have consistently identified people and culture as organizational strengths. Investments in employee health and well-being, professional development opportunities, and employee pride in the work they do are some of the contributing factors.

    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 3,275 hours of training (which averages to be over 15 hours per employee) to its employees in 2025. 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 on a variety of topics such as customer care, system specific operational learnings, safety, and environmental sustainability. Training on information security, sexual harassment, 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 current and emerging leaders for their role in the organization.

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

    Annual performance reviews are a cornerstone of our talent development process, giving employees and managers a structured opportunity to assess the past year and set meaningful goals for the year ahead. New hires receive a 6-month performance review to support their early development and goal setting. Managers are equipped with the necessary tools and training to guide each employee toward their individual development goals.  

    Ever-Green offers a competitive benefits package to all employees, including medical, dental, and vision insurance along with voluntary benefits that promote mental, behavioral, and preventive health. A comprehensive wellness program driven by employees across the organization supports and promotes health, community, social, and financial well-being.

    While specific benefits may vary based on collective bargaining agreements, both union and non-union employees have access to the company-sponsored benefit program, which includes: 

    • 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, bus passes, or ride share
    • 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 grounded in the belief that safety does not occur by chance—it is the result of careful attention to the work performed by all those involved, including managers and supervisors.

    Our Safety Approach

    Ever-Green provides employees with impactful in-person and hands-on training for critical skills development, complemented by a flexible learning management for ongoing education and knowledge reinforcement. Classroom-based trainings are strategically employed where interactive discussions and direct instructor guidance are more valuable. Employees receive thorough training in risk recognition and mitigation and are encouraged to report all observed work-related hazards through clear notification pathways to supervisors or a member of the management team, and the Environmental, Health and Safety (EHS) department.

    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 and improved overall compliance. Identified risks are addressed promptly and minor issues corrected immediately, with a formal tracking system in place for complex risks requiring additional resources. Hazard mitigation strategies follow a well-defined hierarchy of controls, prioritizing elimination of risks, then substitution to replace the hazard with a safer alternative, engineered controls to isolate people from the hazard, administrative controls to change the way people work, and personal protective equipment as a last resort. Ever-Green will never retaliate against employees who are reporting unsafe conditions or voluntarily removing themselves from hazardous work areas. This approach creates a safe and healthy work environment for all employees.

    Incident Response

    Upon receiving a report of a work-related incident, Ever-Green team members adhere to the procedures outlined in the Incident and Injury Reporting and Incident Investigation Policies. Investigations are led by supervisors, managers, or the EHS department in collaboration with the affected employee and others who have knowledge of the incident, process, and conditions. The goal is always to determine root causes and implement corrective actions to prevent recurrence and ensure employees receive proper care. 

    Proactive Safety

    In addition to reporting incidents, Ever-Green maintains a culture of proactive safety by tracking monthly metrics on trainings, inspections, near misses, safety committee meetings, and good catches. The Good Catch program provides employees with the opportunity to analyze and interpret patterns in hazard recognition, helping our teams apply preventive corrective measures to a broad range of tasks and environments. Measuring proactive safety indicators reinforces that safety and well-being are at the core of every task. Examples of good safety tips and lessons learned are shared among employees across our operations.

    Managing Health Risk

    Employees in roles with increased potential for exposure to conditions that could adversely impact their 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 improved controls are needed, following the hierarchy of controls. Results of health monitoring are kept private and only provided to those responsible for reviewing records and determining next steps. Employees with access to these records participate in HIPAA training annually to maintain awareness of privacy laws and internal policies.

    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 has established a joint management-worker health and safety committee for its Minnesota locations. The committee members meet monthly to review work-related incidents and share ideas, suggestions, and lessons learned to increase safety awareness. This provides a system to encourage transparent reporting of injuries, illnesses, and incidents. These efforts are coordinated with other departments to drive engagement, and the committee activities are communicated to non-members to encourage broader participation in fostering a strong safety culture and supporting 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
    • First aid and bloodborne pathogens 
    • Hazard communication/right to know
    • Heat stress
    • 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 improve 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. In 2025, a total of 175.5 volunteering hours were logged by Ever-Green employees.  

    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. Employees are required to consult the CEO or the Chief Legal Officer to clarify whether any program, material, or other information is considered confidential or proprietary. Any situation in which Ever-Green’s proprietary information has or may have been compromised is reported immediately to Ever-Green’s Chief Legal Officer. 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 our information security program. This program includes directives for industrial control systems to address their unique security posture: they are segmented from the general IT networks. Training is provided to all employees on a routine basis and targeted training is also conducted if the situation arises. Assessments and penetration testing are completed regularly, with the outcomes prioritized in ongoing efforts. Cyber insurance acts as the backstop of all cybersecurity efforts, working as a final guardrail in the instance of a 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 served by the systems. 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. Materiality surveys are conducted that form the basis of this ESG report which also helps us gauge stakeholder concerns and perspectives internally 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. Inputs for the survey are provided by employees, board members, and clients.  The material topics were primarily determined by our core values as well as by researching industry trends, and drawing on topic nomenclatures from global ESG frameworks, namely the Sustainability Accounting Standards Board (SASB) and GRI to confirm alignment with energy-sector materiality considerations. Metrics and disclosures described throughout the report are prepared in reference to the GRI standards.  

    In the latest materiality survey, Ever-Green stakeholders were asked to rank the importance of each topic by 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 experienced and engaged board of directors reviewing 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 for general operating purposes or in connection with political activities.

    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 the Chief Legal Officer. 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, 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
    • Greater Saint Paul Building Owners and Managers Association
    • International District Energy Association
    • Saint Paul Chamber of Commerce
    • Saint Paul Downtown Alliance
    • Saint Paul Emergency Management Council 
    • Saint Paul Port Authority 
    • Minneapolis Downtown Council 
    • Minneapolis Regional Chamber of Commerce
    • Sewer Thermal Energy Network
    • University of Minnesota Institute on the Environment

    Closing

    Ever-Green will continue to build on this progress by advancing innovation and sustainability across our systems, strengthening stakeholder relationships, and improving the quality and scope of our ESG data over time. We update the ESG metrics annually. Transparency is an ongoing commitment, not just an annual exercise, and we welcome dialogue with our partners, customers, and communities. Reporting inquiries can be directed to Antara Mandal (Senior Environmental, Sustainability, and Policy Specialist), or Amy Stanton (Director of Environmental Health and Safety).  

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