I want to congratulate every member of the Southcross team on their individual contributions to building a sustainable company that values excellence. I couldn’t be prouder to serve as your chief executive.

Pat Giroir, CEO

Pat Giroir, Southcross Energy CEO

I’m very pleased to introduce Southcross Energy Partners’ first Corporate Sustainability Report which covers calendar year 2020, a transformative year for Southcross. It was a year of sweeping change. I am incredibly proud of our entire team’s focus on creating a sustainable company with a deep commitment to excellence and discipline.

At Southcross, we have a strong belief that sound Environmental, Social and Governance (ESG) practices are integral to building a resilient business and creating long-term value for all our stakeholders, including our investors, customers, employees, contractors, the communities where we work, and the public at large. We also understand that these are just words unless we execute on them. In 2020, our first foundational step was the creation of an ESG Policy, a Socially Responsible Investment Policy, and a Health, Safety and Environment (HSE) Policy, and a Code of Business Ethics. All are included in this report.

This report also publishes Southcross’ 2020 Environmental, Social and Governance metrics according to the comprehensive reporting template developed by the Energy Infrastructure Council (EIC) in collaboration with GPA Midstream and released in December 2020. In addition, this report provides many examples of important company accomplishments in each of these areas.

There are multiple examples of our efforts to protect the Environment and reduce our carbon footprint. It starts with establishing best practices, eliminating air emission sources, improving operational efficiencies, and utilizing control technologies.

On the Social side, health and safety is always our most important priority and embedded in every decision we make at Southcross. We go above and beyond to protect our employees, contractors, and the public by establishing a right and obligation to stop any unsafe work, manage the integrity of our pipelines and facilities, and make the public aware of our operations. And when COVID-19 impacted the U.S., we rapidly put a comprehensive plan in place to protect our employees and their families and ensure business continuity. We strive to have a positive impact on the communities where we work. Last year, we contributed computer equipment to the Houston Independent School District. This year, we established a Social Committee that is developing a go-forward community engagement plan. At Southcross, we celebrate the diversity of our team and treat each other with dignity, respect, and compassion.

On the Governance side, when Southcross emerged from bankruptcy in early 2020, we did so with an entirely new Leadership Team and new Board of Managers composed of four out of five independent directors and advisers. We established a culture of excellence across the organization, right-sizing the delegation of authority and enacting many new, disciplined processes.

In closing, I want to congratulate every member of the Southcross team on their individual contributions to building a sustainable company that values excellence. I couldn’t be prouder to serve as your chief executive.

Sincerely,

Pat Giroir, CEO

Pat Giroir, CEO