Enbridge and partners recently unveiled the largest energy-related Indigenous economic partnership transaction in North America to date.
The continent’s leading energy infrastructure company and 23 northern Alberta First Nation and Métis communities made the announcement on September 28, 2022 in Edmonton. Through a newly-created organization called Athabasca Indigenous Investments (Aii), the landmark agreement sees the communities acquire an 11.57 per cent interest in seven Enbridge-operated pipelines in the Athabasca region of northern Alberta for $1.12 billion.
“Our partner logo theme – Seven Pipelines, Seven Generations – speaks to the long-term value potential of these assets, which will help enhance quality of life in our communities for many years to come,” said Justin Bourque, Aii President.
The investment by Aii fits with commitments Enbridge made in its recently-released Indigenous Reconciliation Action Plan (IRAP), building on a growing track record of engagement with Indigenous communities and employees.
“We are very pleased to be joining our Indigenous partners in this landmark collaboration,” said Al Monaco, President and Chief Executive Officer of Enbridge. “We believe this partnership exemplifies how Enbridge and Indigenous communities can work together, not only in stewarding the environment, but also in owning and operating critical energy infrastructure. We are looking forward to working with the Aii and deepening our relationship well into the future.”
Alberta Indigenous Opportunities Corporation (AOIC) assisted Aii with the transaction’s financing. The Alberta Crown corporation, formed in 2019, bridges the gap between Indigenous groups seeking commercial partnerships in major projects and their financial capacity. The AOIC was delegated the authority to provide $1 billion in loan guarantees to reduce the cost of capital for Indigenous groups and to support their ability to raise capital to invest in natural resources, agriculture, telecommunications, and transportation projects.
Aii is a partnership of 23 diverse Treaty 6 and Treaty 8 First Nations and Métis communities. Participating communities include: Athabasca Chipewyan First Nation; Beaver Lake Cree Nation; Buffalo Lake Métis Settlement; Chard Métis Nation; Chipewyan Prairie First Nation; Conklin Métis Local 193; Cold Lake First Nations; Elizabeth Métis Settlement; Fishing Lake Métis Settlement; Frog Lake First Nation; Fort Chipewyan Métis Local 125; Fort McKay First Nation; Fort McKay Métis Nation; Fort McMurray 468 First Nation; Heart Lake First Nation; Kehewin Cree Nation; Kikino Métis Settlement; McMurray Métis Local 1935; Mikisew Cree First Nation; Onion Lake Cree Nation; Saddle Lake Cree Nation; Willow Lake Métis Nation; Whitefish Lake First Nation.
Please click here to read the full Enbridge news release.
Building Indigenous relationships
Enbridge has released its inaugural Indigenous Reconciliation Action Plan (IRAP), one of the first such documents to take a North America-wide approach. The Enbridge IRAP is intended to reinforce the company’s goal of being a leader in Indigenous engagement, economic participation, and reconciliation.
Unveiled on September 20, 2022, the plan articulates and tracks the company’s progress against 22 commitments to continue building strong relationships with Indigenous communities across North America and advance reconciliation.
“We believe our business can play a critical role in advancing reconciliation, and that means acknowledging the truth and learning from the complicated and challenging history of Indigenous peoples,” said Enbridge President and CEO Al Monaco. “We need to understand the past in order to move forward.”
Enbridge has been building relationships with Indigenous communities for many years and engaging with Indigenous nations, tribes, governments, and groups over the lifecycle of our assets, working to incorporate input into project plans and operations and to maximize economic benefits. The IRAP is a key next step, allowing Enbridge to measure and report on progress against those commitments.
The IRAP builds on Enbridge’s performance-based environmental, social and governance (ESG) goals introduced in November 2020 and its Indigenous Update Report, released earlier this year. The IRAP was developed recognizing the Truth and Reconciliation Commission’s Call to Action #92 and the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP).
Fifty members of Indigenous groups across Canada and the U.S. provided input that helped shape the commitments and priorities detailed in the plan.
The company’s commitments are organized into six categories (“pillars”) that include People; Employment and Education; Community Engagement and Relationships; Economic Inclusion and Partnerships; Environmental Stewardship and Safety; Sustainability, Reporting and Energy Transition; and Governance and leadership.
Examples of Enbridge’s IRAP commitments include:
- Increasing Indigenous representation in the company’s workforce.
- Providing more opportunities for Indigenous economic participation, such as procurement and financial partnerships.
- Increasing Indigenous inclusion in environmental reviews.
- Establishing an Indigenous Advisory Group reporting to senior management.
“We are a values-driven organization, and therefore we recognize the deep and meaningful connections that Indigenous Nations have to water, land and the environment. We’ve learned not to walk into Indigenous communities with all the answers, but rather to listen carefully to concerns and ask questions that further our understanding,” Monaco said, adding, “We instill trust by listening carefully and working together—and delivering on the promises we make.”
