'Canada First': Hydro One's Energy Sovereignty Mission

While much of the conversation around the energy transition centres on renewables and emissions, the practical challenge of building and maintaining infrastructure is just as important.

That aspect of the transition is already a major focus for Hydro One, one of the largest utilities in Canada.

The firm, which is responsible for 98% of electricity transmission and distribution across Ontario, recently published its 2025 Sustainability Report, reflecting on the progress it made last year.

The report paints a picture of a company increasingly moving towards local sourcing and community-led investment. This, Hydro One says, will make it more resilient for the future, and better prepared for growing energy demand.

But why exactly does the company want to reduce its reliance on international suppliers?

The rationale is that by sourcing more materials and services domestically, Hydro One can avoid delays, control costs and ensure that grid upgrades can move ahead at satisfactory speeds.

This is an approach that is becoming increasingly popular across the energy sector of late.

Is the age of a globalised energy sector coming to an end?

It will come as no surprise that Canada, like almost every country the world over, is feeling the consequences of the energy crisis that is still unfolding in the Middle East today.

But while the closure of the Strait of Hormuz has shaken the energy world to its core, supply shocks are an all too common occurrence in the modern world.

Take the Trump administration's slew of tariffs early last year, for example. Before that, the global economy was destabilised by the Russia-Ukraine War and the COVID-19 pandemic too.

After so many price shocks in recent years, governments and companies alike have begun considering how they can better insulate themselves from supply chain pressures going forward.

For Hydro One, the result of that is a 'Canada First' procurement strategy that last year saw 91% of its total spending going to Canadian suppliers.

This approach is intended to support the timely delivery of energy infrastructure as Ontario’s electricity needs continue to grow, particularly with increased electrification across transport, industry and homes.

The company is also investing directly in domestic manufacturing capacity. It has committed around CA$165m (US$120m) to engineering firm Northern Transformer to expand its Ontario facility, helping to ensure that essential components such as power transformers are produced within Canada.

“Hydro One’s sustainability strategy is evolving to enhance our focus on the areas that create the greatest value for our business and the communities we serve – safe, reliable service, community resilience, electrification and long-term affordability across Ontario,” says Lisa Pearson, Executive Vice President, Corporate Affairs at Hydro One.

“We are building a resilient, sustainable business designed to endure shifts in our operating environment and will continue to reflect this focus in our business and future sustainability reports.”

Shared ownership in energy infrastructure

Alongside procurement changes, Hydro One is reshaping how energy projects are developed by expanding partnerships with Indigenous communities.

Through its First Nation Equity Partnership Model, the company enables nearby First Nations to take ownership stakes of up to 50% in new transmission projects. This gives communities a direct financial interest in infrastructure that supports regional electricity supply.

By the end of 2025, all five First Nation partners involved in the Chatham to Lakeshore Transmission Line in Ontario had invested, making it the first project of its kind to reach roughly half Indigenous ownership.

Hydro One also reported spending CA$216m (US$158m) with Indigenous businesses in 2025, representing 7.1% of its total procurement and exceeding its 2026 target ahead of schedule.

Improving operations and reducing emissions

While supply chains and partnerships are central to its strategy, Hydro One is also making changes within its own operations to support a more sustainable energy system.

In 2025, the company recorded an injury rate of 0.68 per 200,000 hours worked, significantly below the industry average. Environmental performance also improved, with 96% of spills recovered and approximately 1.5 million litres of oil waste recycled.

A major focus is the electrification of its vehicle fleet. By December 2025, 57% of Hydro One’s sedans and SUVs were electric or hybrid, surpassing its initial 50% target.

The company is working towards full fleet electrification by 2030 and has already installed 148 charging stations across 57 locations in Ontario.

These efforts contribute to a broader reduction in operational emissions, with Hydro One cutting its greenhouse gas output by 27% since 2018.