Localisation & Equity Ownership Redefine Hydro One Strategy

When people talk about the global energy transition, they usually focus on carbon goals and renewable energy. However, for top utilities in North America, a primary challenge is the supply chain.

Canadian utility Hydro One’s 2025 Sustainability Report shows the company is focusing more on local sourcing to protect itself from global economic ups and downs.

By choosing local suppliers and building strong community ties, Hydro One aims to shield itself from outside disruptions and gain the trust it needs to expand the grid.

Domestic supply chain focus

Against the global backdrop of conflict, increasing costs and supply chain constraints, Hydro One has shifted to a 'Canada First' buying strategy. In 2025, 91% of Hydro One’s spending went to Canadian suppliers, the report states.

The company said this move is intended to ensure Ontario gets the infrastructure it needs as electricity demand rises.

Beyond simply buying from local suppliers, the company also invested in Canadian manufacturing sites. It has committed about C$165m (US$120m) to engineering firm Northern Transformer to help expand its Ontario factory.

This means Canada’s power transformers are being made locally.

“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.”

Economic reconciliation as an operational pillar

Alongside its supply chain work, Hydro One is taking a new approach to working with Indigenous communities.

The company uses its First Nation Equity Partnership Model to turn infrastructure projects into opportunities for economic reconciliation with the local indigenous communities.

With this model, nearby First Nations can invest in up to half of the ownership of new transmission line projects.

By the end of 2025, all five First Nation partners in the Chatham to Lakeshore Transmission Line in Ontario had invested, making it the first project to reach about 50% Indigenous ownership.

In 2025, Hydro One also spent C$216m (US$158m) with Indigenous businesses, which is 7.1% of its total spending and ahead of its 2026 goal.

Electrification progress of the fleet

Procurement and partnerships are key strategies, but Hydro One’s internal results also show strong performance.

In 2025, the company had a recordable injury rate of 0.68 per 200,000 hours worked, well below the industry average.

Hydro One also focused on the environment, recovering 96% of spills and recycling about 1.5 million litres of oil waste.

The utility is tackling climate change by switching its fleet to electric and hybrid vehicles. By December 2025, 57% of its sedans and SUVs were electric or hybrid, beating its 50% target.

The company aims for full conversion by 2030. To help with this, it has set up 148 charging stations at 57 sites across Ontario.

Since 2018, Hydro One has also cut its greenhouse gas emissions from operations by 27%.