Ron Farrow

This document outlines Port Houston's comprehensive sustainability strategy, detailing ongoing and new initiatives across environmental, social, safety, and governance (ES2G) dimensions. Key strategic goals include optimizing infrastructure, strengthening partnerships, and enhancing stewardship. The plan sets an ambitious goal to achieve carbon neutrality by 2050, emphasizing carbon footprint reduction, resiliency, and economic impact through collaboration and technological upgrades.

This document provides an update on Port Houston's progress and future plans across Environment, Social, Safety, and Governance (ES2G) initiatives. Key strategic areas include achieving carbon neutrality by 2050 through technology upgrades and alternative energy, expanding the Houston Ship Channel (Project 11), and promoting environmental stewardship. Social efforts focus on community engagement, green space development, maritime education, and advancing Diversity, Equity, and Inclusion (DEI) through 14 initiatives over the next five years. The plan also emphasizes maintaining high safety standards, fostering business equity through S/MWBE programs, and ensuring transparent governance. The overarching vision is to be America's Distribution Hub for the Next Generation, driving regional prosperity through optimized infrastructure, strong partnerships, and a commitment to its people and the region.

The Port Commission meeting included discussions on the Houston Ship Channel's ranking as the number one U.S. waterway and its economic impact. Updates were provided on Channel expansion efforts (Project 11), including the upcoming award of a contract for the Beltway 8 Dredged Material Placement Area and progress on existing dredging contracts. Operational highlights included container volume statistics, with a record-breaking March driven by strong export volume. The meeting also touched on the tariff situation and its potential impact on Port Houston's expenses. Organizational changes were announced, including retirements and new appointments within the leadership team. Additionally, the commission approved the Port Authority's Fiscal Year 2024 Annual Comprehensive Financial Report (ACFR).

The Port Commission approved the proposed 2023 operating budget and capital plan, which includes $579 million for Operating Capital Improvement Projects and $99 million for Project 11, the expansion of the Houston Ship Channel. Capital plans continue for accelerated container capacity additions. Tariff rate changes were also approved, effective January 2023, to align fees with escalating operating costs and support infrastructure investment.

This ES2G (Environment, Social, Safety, and Governance) Report for Port Houston outlines the organization's commitment to sustainability and regional prosperity. It details numerous ongoing activities and introduces a Sustainability Action Plan comprising 27 new initiatives. The plan focuses on key areas such as clean energy, air quality, circular economy, community strengthening, and transparency, aiming to achieve the vision of being America's Distribution Hub for the Next Generation and driving regional prosperity through collaborative efforts and continuous improvement. The report references a broader '2040 Plan' for long-range strategic planning.