Governance
Please click on the tiles below for more information about Essential’s responsible business operations and corporate governance practices.
Download the ReportGovernance and Ethics
Governance and Ethics
An organization is only able to fulfill its responsibilities to its many stakeholders through strong governance and a culture of ethics consistently embodied at all levels. Some issues generally related to governance include the role of the board of directors and how the code of ethics drives the way a company operates. For Essential, we ensure this consistency through how we provide adequate oversight of our sustainability activities and strategy, including how we keep the board of directors and leadership abreast of trends. Essential has carefully considered its structure to maximize its ability to carry out its significant responsibilities as a utility with the utmost integrity and ethical foundation.
Essential’s corporate governance policies are available on Essential’s website for download. These policies comprise a critical complement to this Sustainability Report and our data disclosures. As board-approved documents, they represent the most formal articulation of Essential’s sustainability commitments to our stakeholders. The performance and achievements noted in our Sustainability Report are consistent with the directives and bedrock principles the board has explicitly outlined for the organization in these approved policies.
- Sustainability and Environmental Policy
- Human Rights Policy
- Human Rights to Water Policy
- Political Spending Policy
- Code of Ethical Business Conduct
- Conflict of Interest Policy
- Equal Employment Opportunity and Anti-Harassment Policy
- Labor Rights Policy
- Corporate Governance Guidelines
We hold ourselves to the highest corporate governance standards, ensuring effective oversight, accountability, and transparency across all levels of the organization. By cultivating a board with diverse expertise and upholding robust governance structures, we reinforce our dedication to ethical leadership and responsible decision-making. These principles guide our long-term strategy and support sustainable business practices that create enduring value for our stakeholders. More information about our board of directors can be found in our Proxy Statement.
Data Security and Privacy
Data Security and Privacy
Essential is committed to the safe, secure and reliable operation of its information technology and operations technology systems. Essential has a robust and longstanding cybersecurity program, which is aligned to the National Institute of Standards and Technology (NIST) Cybersecurity Framework.
AAs cybersecurity threats continue to evolve and increase in both sophistication as well as complexity, the Essential strategy has been to operate utilizing a risk based approach.
Governance: The information security and cybersecurity program is overseen by a diverse and cross-functional committee of senior business leaders. This committee meets quarterly and is charged with ensuring that cyber risk is managed and that the program is aligned to business goals and objectives. Updates are also provided to the board’s risk committee quarterly and the full board once a year.
Risk Management: The information security organization is responsible for ongoing vulnerability assessments and threat analysis to essential assets such as customer and employee data, critical business systems and industrial control environments. Risk assessments are executed quarterly in conjunction with a third party to promote objectivity. Information security and cybersecurity risk management functions are also integrated into the enterprise risk management program. There have been no security breaches in the past year across our enterprise and Essential maintains a cybersecurity insurance policy to promote resiliency and reduce risk.
Controls, Policy & Compliance: Essential has implemented enterprise-wide security policies, standards and controls that incorporate best practices in security engineering, technology architecture and data protection, which support regulatory compliance. The information security controls framework has been developed around the NIST Cybersecurity Framework but also incorporates best practices from ISO 27001 Information Security Management Systems, CIS Critical Security Controls and ISA 99 Industrial Automation and Control Systems Security. An annual review of Essential’s security framework controls is conducted in conjunction with a third party to promote objectivity.
Awareness, Training & Assessment: Essential has created a corporate culture that is conscious of cybersecurity, with a focus on continual assessment, development and improvement. Essential has implemented specialized programs, such as computer-based training, enterprise-wide communications, presentations, phishing simulations and focused training for specific roles. We have developed and implemented a general cybersecurity training program required for all employees annually.
Supply Chain
Supply Chain
Being good stewards of community natural resources aligns with being good community partners, because we provide gas, water and wastewater treatment locally. We recognize that, in many cases, our customers are also our suppliers and vendors. We recognize the importance to partner with suppliers who work and live in a community within the footprint of our infrastructure. These deep, multifaceted connections between Essential and fellow community members enrich and strengthen neighborhoods, as well as develop a more resilient local economy.
In 2024, Essential made over $1 billion in controllable spend purchases related to our gas, water and wastewater businesses. We are proud to say that more than half of this spend was with suppliers from within the states in which we operate.
Building Supplier Resources
In addition to our efforts to maximize business with vendors local to the communities we serve, Essential is committed to building broad and sustainable supplier resources to ensure the company has access to the most highly qualified vendors and business partners. This means removing potential barriers to becoming a supplier to Essential and ensuring that all potential vendors, including diverse-owned vendors, have equal opportunity and equal access to our supply chain.
Essential operates in diverse communities. Insofar as we strive to source from and partner with businesses owned by individuals in our local communities, it is critical to ensure that all suppliers in our local communities have the opportunity to compete for our business. To that end, our Supplier Code of Conduct reflects our commitment to ensure equal opportunity and equal access. We also monitor our spend with diverse suppliers to ensure that we identify any potential barriers to access to our supply chain.
In addition, we engage in pipeline-building activities, such as outreach to organizations that work with diverse suppliers. For example, the Essential purchasing department is a member of the National Minority Supplier Development Council, Eastern Minority Supplier Development Council, Women’s Business Enterprise National Council, Women’s Business Enterprise Center East, and Women’s Business Development Center. We regularly participate in networking events sponsored by these and other organizations, and we engage with other companies with mature supplier diversity programs to understand and take advantage of their outreach activities.
Ultimately, all decisions about who we invite to be part of our supply chain are based strictly on merit- qualifications, experience, capacity, service, and competitive cost.
Supplier Code of Conduct
Essential has established a Supplier Code of Conduct define the basic requirements for suppliers of goods and services and their responsibilities to the environment and their stakeholders. We are committed to purchasing from suppliers that strive to improve the environmental quality of our water, wastewater, and gas operations, and that use reasonable efforts to minimize pollution and improve environmental protection and sustainability. Our suppliers are also responsible for the health and safety of their employees, which includes controlling exposure to hazards, taking reasonable efforts and precautionary measures against accidents and occupational hazards, providing education and training in health and safety issues and having reasonable health and safety management systems. We also expect suppliers to subscribe to the principles of nondiscrimination, follow high standards of business ethics and professional conduct and adhere to our Human Rights Policy.