Climate Change Data

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Water shortages due to drought conditions
• Increased operating costs due to stricter environmental regulations
• Groundwater contamination
• Impact of climate change legislation on operations
• Potential for natural disasters to disrupt services
• Interest rate risk on short-term borrowings
• Dependency on water supply agreements with third parties

Mitigation Strategies

• Water Revenue Adjustment Mechanism (WRAM) and Modified Cost Balancing Account (MCBA) to decouple revenue from customer consumption
• Seeking rate relief to recover increased operating costs
• Litigation against responsible parties for groundwater contamination
• Implementing water conservation programs
• Heightened security at facilities
• Maintaining backup power systems
• Long-term water supply plans for each district
• Exploring opportunities to expand water and wastewater activities

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, drought

Transition Risks

• Regulatory changes, market shifts related to climate change

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change, Strategic Planning, and Risk Management
• Water Supply Resilience and Reliability
• Water System Resilience, Reliability, and Efficiency
• End-Use Conservation
• Drinking Water Quality and Safety
• Public Policy and Political Involvement
• Emergency Preparedness and Response
• Water Affordability and Access
• Stakeholder Engagement and Public Participation
• Cybersecurity and Data Privacy
• Energy and Emissions
• Philanthropy and Volunteerism
• Diversity, Equality, and Inclusion
• Corporate Governance
• Ethics
• Talent Attraction and Retention

Environmental Achievements

• Established a target to reduce absolute Scope 1 and 2 emissions by 63% by 2035 from a 2021 base year
• 13.9% renewable energy consumption
• Published inaugural CDP Climate Change questionnaire response
• More than 2,600 million gallons of recycled water delivered to customers for landscaping, irrigation, and industrial uses
• ~30 miles of water mains replaced to reduce water loss and improve system reliability and resiliency
• 10 straight months of water savings reached in February 2023 through joint Cal Water and customer efforts to address drought conditions

Social Achievements

• #1 in Customer Satisfaction among Large Water Utilities in the West Region in the J.D. Power 2023 U.S. Water Utility Residential Customer Satisfaction Study
• 100% compliance with the Federal Safe Drinking Water Act (SDWA) and applicable state water quality standards across the company, with zero primary or secondary violations
• $83 million in funding applied for through the California Extended Water & Wastewater Arrearage Payment Program to help customers with past-due bills
• More than 121,600 customers enrolled in the Customer Assistance Program (CAP) as of year-end 2023, offering approximately $15 million in discounts during the year
• 19 community and 5 internal Emergency Operations Center (EOC) training events completed across our operating to better prepare us and our communities for enhanced coordination and resilience during emergency events
• More than $1.5 million donated to local community organizations
• $186,077 donated through our annual Firefighter Grant Program
• $75,000 awarded in college scholarships

Governance Achievements

• Completed our first Greenhouse Gas (GHG) Protocol-aligned Inventory for Scope 1 and Scope 2 GHG emissions
• 36% gender diversity; and 18% racial/ethnic diversity on the Board of Directors

Climate Goals & Targets

Environmental Challenges

• Lack of a decision from the California Public Utilities Commission on our 2021 General Rate Case
• Complex regulatory challenges

Mitigation Strategies

• Applied for $83 million in grant funding to help customers with past-due balances accrued during the pandemic
• Established a multi-functional team to prepare and execute a robust program to meet new PFAS standards and revised lead and copper rule requirements

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Supplier Diversity Program

Climate-Related Risks & Opportunities

Physical Risks

• Changes in water availability and demand
• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GHG Protocol, SASB Water Utilities & Services Industry Standards, TCFD, GRI

Awards & Recognition

• J.D. Power 2023 Water Utility Residential Customer Satisfaction Study
• U.S. Environmental Protection Agency’s 2023 WaterSense Excellence in Promoting WaterSense Labeled Products Award
• Newsweek magazine’s 2023 “World’s Most Trustworthy Companies”