Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee engagement and safety
• Ethics and governance
• Rates and reliability
• Customers and communities
• Compliance
• Water
• Climate change and emissions
• Environmental impact
• Supply chain

Environmental Achievements

• Decreased CO2 emissions rate for power generation by 23% compared to 2010 baseline
• Provided 43% of SDG&E customers' electricity from renewable sources
• Completed 422 megawatts of renewable power projects, bringing total to 2,297 megawatts
• Reduced facility electricity consumption 0.4% over 2016 at SDG&E (nearly 30% reduction from 2003 baseline)
• Reduced facility water consumption 11% at SoCalGas compared to 2007 baseline

Social Achievements

• Achieved employee recordable injury rate of 1.78 cases per 100 full-time workers
• 43% of SDG&E and 42% of SoCalGas spending went to Diverse Business Enterprises (DBEs)
• Contributed 1.07% of annual pretax income to communities

Governance Achievements

• Nearly 70% of board members were women and/or people of color by May 15, 2017
• 97% of agency inspections resulted in no notice of violation (NOV)

Climate Goals & Targets

Environmental Challenges

• Aliso Canyon natural gas leak
• Climate change impacts on infrastructure (extreme weather, drought, wildfires)
• Regulatory changes related to climate change and emissions
• Reputational risks associated with climate change and operational challenges
• Maintaining energy affordability and reliability while transitioning to renewable energy

Mitigation Strategies

• Comprehensive testing and infrastructure upgrades at Aliso Canyon
• Strengthening infrastructure to withstand extreme weather and wildfires
• Implementing energy efficiency programs for customers
• Investing in renewable energy and energy storage
• Developing and implementing advanced monitoring technologies and practices

Supply Chain Management

Supplier Audits: 120 audits in 2016

Responsible Procurement

• Sustainability-related questions for prospective suppliers
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Drought
• Wildfires
• Sea level rise
• Hurricanes and flooding

Transition Risks

• Regulatory changes
• Market shifts
• Decreased demand for natural gas

Opportunities

• Development of low-carbon energy infrastructure
• Increased demand for renewable energy and energy-related services

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: null

Third-party Assurance: Third-party assurance for 2015 GHG emissions; working towards assurance for other data in future years

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Renewable meter adapter
• Power-to-gas system

Awards & Recognition

• Forbes magazine named Sempra Energy one of America’s best large employers for 2016
• Forbes magazine named Sempra Energy one of the 100 most trustworthy companies in America
• Dow Jones Sustainability North America Index
• A- from CDP for strong climate disclosure and performance
• Highest score for transparency on the Center for Political Accountability’s CPA-Zicklin Index

Environmental Metrics

ESG Focus Areas

• Energy Affordability
• End-use Efficiency
• Integrity of Gas Delivery Infrastructure
• Greenhouse Gas Emissions
• Air Quality
• Water Management
• Workforce Health and Safety
• Grid Resiliency

Environmental Achievements

• Percentage fulfillment of RPS target 100%
• Number of reportable pipeline incidents reduced from 8 to 1
• Percentage of distribution pipeline that is unprotected steel reduced from 16% to 0%

Social Achievements

• Number of residential customer electric disconnections for non-payment, percentage reconnected within 30 days increased to 91%
• Total recordable incident rate (per 100 full-time workers) of 1.79

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

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

• Safety
• Workforce Engagement
• Resilient Operations
• Energy Transition

Environmental Achievements

• Achieved a 35% reduction in CO2 emissions from power generation compared to 2010 baseline.
• 99.17% and 98.03% of natural gas reached its destination in 2019 at SoCalGas and SDG&E respectively.
• Reduced 2019 energy consumption in employee-occupied facilities below their 2018 baselines (SDG&E and SoCalGas).

Social Achievements

• Employee engagement of 85% in 2019 survey.
• Approximately 92% of respondents stated they agree or strongly agree with the statement “Overall, I am satisfied with this company as a place to work.”
• Announced over $7 million in philanthropic commitments to support community-based charities.

Governance Achievements

• Eleven of the 13 directors nominated to stand for election in May 2020 qualify as independent.
• More than 55% of 113 audits in 2019 were linked to Sempra’s top six identified enterprise risks.
• Implemented an enterprise-wide system to collect ESG data.

Climate Goals & Targets

Environmental Challenges

• Two employee fatalities in 2019.
• Companywide recordable injury rate increased.
• Climate change impacts on infrastructure and operations.

Mitigation Strategies

• Thorough investigation of fatalities and actions taken to prevent reoccurrence.
• Strengthening employee and contractor safety programs.
• Incorporating climate projections into planning processes and strengthening infrastructure.

Supply Chain Management

Responsible Procurement

• Sustainability-related questions included in requests for proposals (RFPs) at California utilities.
• Emphasis on using local suppliers when feasible.
• Monitoring supplier performance.

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Extreme weather events
• Sea-level rise
• Droughts
• Floods

Transition Risks

• Regulatory changes
• Market shifts away from natural gas

Opportunities

• Growth in lower-carbon energy sources (renewable natural gas, renewable energy, hydrogen)
• Development of energy-efficient products and technologies

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB, TCFD, Edison Electric Institute and American Gas Association combined ESG template

Certifications: ISO 14001 (Mexico facilities)

Third-party Assurance: Lloyd’s Register Quality Assurance, Inc. (SDG&E and SoCalGas, 2018 GHG emissions); Cameron-Cole, LLC (Termoeléctrica de Mexicali, 2018 GHG emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Activities contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• Renewable natural gas
• Hydrogen
• Energy storage

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Economic Prosperity
• Safety
• Reliability
• Affordability
• Governance
• Public Safety
• Disaster Preparedness and Response
• Employee and Contractor Safety
• Infrastructure Security
• Climate Risk and Resilience

Environmental Achievements

• Improved safety performance with decreases in the employee recordable injury rate at every operating company.
• 98% of all agency inspections resulted in no Notices of Violation (NOV).
• Reduced fugitive methane emissions by nearly 17% from the 2015 baseline.
• Customer energy efficiency programs saved approximately 333 gigawatt-hours of electricity and approximately 41.2 million therms of natural gas.

Social Achievements

• Donated over $14 million to local community COVID-19 relief efforts.
• Maintained employee engagement at or above 78% since 2011.
• Achieved another year of strong support for supplier diversity, with SDG&E and SoCalGas purchasing over 40% of goods and services from diverse suppliers.
• Improved safety performance with decreases in the employee recordable injury rate at every operating company.

Governance Achievements

• Updated the charter of the SS&T Committee to strengthen and clarify the way in which the board oversees and considered sustainability and other ESG matters.
• A percentage of certain executive compensation is tied to ESG goals.
• Named a Trendsetter by the Center for Political Accountability, receiving a score of 95.7 out of 100 in its annual Zicklin Index for transparency and disclosure practices.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and communities.
• California wildfires increasing costs and difficulties in obtaining insurance coverage.
• Potential for regulatory changes and technological advancements to impact natural gas infrastructure.
• Climate change posing risks to infrastructure and operations.

Mitigation Strategies

• Activated an enterprise-wide leadership team to share best practices and help operating companies identify and mitigate risks.
• Implemented comprehensive health and safety protocols.
• Invested more than $2.0 billion since 2007 in wildfire mitigation efforts.
• Modeling and planning for climate impacts, including sea-level rise and extreme weather events.
• Strengthening infrastructure and updating operational protocols.

Supply Chain Management

Supplier Audits: Approximately 40% of total SDG&E and SoCalGas’ supplier spend completed a sustainability assessment.

Responsible Procurement

• Supplier code of conduct
• Incorporation of sustainability criteria in RFPs
• Annual sustainability assessments of key suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Storms
• Droughts
• Floods
• Sea-level rise

Transition Risks

• Regulatory changes
• Market shifts
• Technological advancements
• Reduced demand for natural gas

Opportunities

• Development of low-carbon energy solutions
• Investment in renewable energy infrastructure
• Innovation in energy efficiency and storage

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs, World Economic Forum Stakeholder Capitalism Metrics

Certifications: ISO 14001

Third-party Assurance: Lloyd’s Register Quality Assurance, Inc. and Cameron-Cole, LLC (for 2019 GHG emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)

Company activities contribute to these goals through various initiatives related to renewable energy, economic development, diversity and inclusion, and climate change mitigation.

Sustainable Products & Innovation

• Renewable natural gas
• Hydrogen
• Smart grid technologies
• Energy storage solutions

Awards & Recognition

• Numerous awards and recognitions for ESG performance, including those listed on page 2.

Environmental Metrics

ESG Focus Areas

• reliability
• affordability
• greenhouse gas (GHG) emissions
• energy transition
• public safety
• disaster preparedness and response
• employee and contractor safety
• infrastructure security
• climate risk and resilience

Environmental Achievements

• In 2021, Sempra LNG exceeded its GHG emissions intensity goal with a 28% reduction from the baseline.
• Customer energy efficiency programs at Sempra California surpassed goals and saved approximately 466 gigawatt-hours of electricity and more than 46 million therms of natural gas.
• SoCalGas achieved over 4% RNG deliveries to core customers in 2021.

Social Achievements

• Overall employee engagement reached a company historical high of 87% in 2021.
• SoCalGas increased spend with Black and African American-owned businesses by 49%.
• Sempra California achieved high levels of spending with DBEs. SDG&E and SoCalGas collectively purchased 39.1% (or $936 million) and 42.4% (or over $973 million), respectively, of goods and services from diverse suppliers.

Governance Achievements

• Sempra was named a Trendsetter by the Center for Political Accountability for the sixth consecutive year, receiving a score of 95.7 out of 100 in its annual Zicklin Index for transparency and disclosure practices.
• A percentage of certain executive compensation is tied to ESG goals.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Wildfires in California
• Climate change impacts on infrastructure
• Meeting aggressive emission reduction targets
• Maintaining affordability of energy for customers
• Cybersecurity threats

Mitigation Strategies

• Investing in new technologies (decarbonization, diversification, digitalization)
• Wildfire prevention and mitigation programs
• Infrastructure hardening and resilience measures
• Emissions reduction strategies and targets
• Energy efficiency programs and customer assistance programs
• Robust cybersecurity protocols and programs

Supply Chain Management

Supplier Audits: Annual sustainability assessments for key suppliers (SDG&E and SoCalGas); sustainability survey for critical suppliers in Mexico.

Responsible Procurement

• Supplier code of conduct
• Integration of social responsibility, environmental stewardship, financial, and governance aspects into supply chain decision-making

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Droughts
• Floods
• Storms
• Sea level rise

Transition Risks

• Changes in environmental regulations
• Increased emission reduction requirements
• Shifting public attitudes on natural gas
• Policies restricting natural gas use
• Technological stagnation

Opportunities

• Investments in decarbonization, diversification, and digitalization of energy networks
• Development of low- and zero-carbon energy resources and technologies
• Expansion of renewable energy sources
• Growth of distributed energy resources

Reporting Standards

Frameworks Used: GRI Standards: Core option, SASB Standards, TCFD, UN Sustainable Development Goals, Edison Electric Institute (EEI) and American Gas Association (AGA) combined ESG template, Certain World Economic Forum Stakeholder Capitalism Metrics, CDP Climate and Water questionnaires

Certifications: ISO 14001 (56% of facilities in Mexico)

Third-party Assurance: Cameron-Cole, LLC and Lloyd’s Register Quality Assurance (limited assurance for 2021 GHG emissions data; reasonable assurance for 2020 data for SDG&E and SoCalGas); Deloitte Asesoría en Riesgos, S.C. (limited assurance for 2021 GHG emissions data for Mexico and U.S. LNG operations)

UN Sustainable Development Goals

• 3
• 5
• 6
• 7
• 8
• 9
• 10
• 11
• 12
• 13

The report details how Sempra's initiatives contribute to these goals.

Sustainable Products & Innovation

• Renewable natural gas
• Green hydrogen
• Energy storage technologies
• Smart grid technologies

Awards & Recognition

• Numerous awards and recognitions are listed in the introduction.

Environmental Metrics

ESG Focus Areas

• Public safety
• Employee and contractor safety
• Disaster preparedness and response
• Reliability
• Affordability
• GHG emissions
• Energy transition
• Infrastructure security
• Climate risk and resilience

Environmental Achievements

• Reduced fugitive methane emissions by 37% since 2015 at SoCalGas
• Achieved GHG emissions intensity of 41% less than the 2020 baseline
• Reduced vented emissions from planned transmission work by approximately 94% and 98% in 2021, at SoCalGas and SDG&E respectively
• Provided 59% clean energy to SDG&E customers in 2022
• Installed 947 kW of solar energy at SDG&E’s facilities
• Replaced 36% of SoCalGas’ over-the-road fleet with alternative fuel vehicles
• Electrified approximately 23% of SDG&E’s light-duty vehicle fleet
• Renewable energy generated directly contributed to avoiding 1,293,088 tons of carbon dioxide equivalent emissions in 2022 at Sempra Infrastructure

Social Achievements

• Supported programs and causes related to climate action, energy access and more with nearly $40 million in charitable donations
• Decreased employee lost work-time incident rate by 18% in 2022 compared to 2021
• Decreased contractor recordable incident rate by 34% and lost work-time incident rate by 39% compared to 2021
• Achieved an overall 2021 employee engagement score of 87%
• Provided over 16,000 learning opportunities and approximately 69,000 total hours of training
• Spent a combined average of nearly 30% of total supplier spend on diverse suppliers, representing over $2.4 billion at Sempra California and Oncor in 2022

Governance Achievements

• 20% of a component of executive annual performance-based bonus plan is tied to safety, environmental, social and governance performance measures
• 95% of all agency inspections of our businesses resulted in zero NOVs in 2022
• No incidents of corruption or bribery were identified in 2022

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Wildfires
• Drought
• Sea level rise
• Extreme weather events
• Increased deployment of distributed energy resources
• Shifting public attitudes on the use of natural gas
• Regulatory changes and more aggressive emissions requirements
• Technological stagnation
• Cybersecurity threats

Mitigation Strategies

• Investing in new technologies, programs and procedures to detect methane leaks and manage gas infrastructure
• Investing in a dedicated fire science and climate adaptation team
• Implementing enhanced planning and preparation efforts for seasonal impacts
• Developing emergency response action plans
• Integrating climate risk into business strategy
• Investing in grid modernization, renewable integration projects, energy efficiency programs, energy storage options, and electric vehicle infrastructure
• Developing and working to bring to market lower- and zero-carbon energy sources
• Offering enhanced energy conservation tools
• Maintaining a proactive cybersecurity program

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Integrating social responsibility, environmental stewardship, financial and governance aspects into decision-making

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Flooding
• Severe weather
• Sea level rise
• Drought

Transition Risks

• New environmental regulations
• More aggressive emissions requirements
• Changes in public attitudes towards natural gas
• Technological stagnation
• Competition from third-party energy storage alternatives

Opportunities

• Development of energy-efficient products and services
• Investment in renewable energy and energy storage
• Expansion of distributed networks
• Integration of real-time information and cutting-edge analytics

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB guidelines, TCFD guidelines, UN SDGs, World Economic Forum Stakeholder Capitalism Metrics—Core

Certifications: ISO 14001 (Sempra Infrastructure Mexico facilities), ISO 45001 (85% of Sempra Infrastructure Mexico facilities)

Third-party Assurance: SCS Global Services, Cameron-Cole, LLC, Deloitte Asesoría en Riesgos, SC (partial)

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

The report details how Sempra's initiatives contribute to these goals.

Sustainable Products & Innovation

• [H2] Innovation Experience (SoCalGas)
• Angeles Link (SoCalGas)
• Renewable hydrogen projects (Sempra Infrastructure)

Awards & Recognition

• Investor's Business Daily 100 Best ESG Companies
• Fortune ‘World’s Most Admired Companies’
• Newsweek ‘America’s Most Responsible Companies’
• Many others listed in the report

Environmental Metrics

ESG Focus Areas

• Safety
• Climate Change and Resilience
• Decarbonization
• Diversity & Inclusion
• Community Engagement
• Economic Prosperity
• Governance
• Human Rights
• Supply Chain Sustainability
• Cybersecurity

Environmental Achievements

• SoCalGas reported methane emissions reductions of approximately 39% from a 2015 baseline, surpassing California’s target of 20% by 2025 and nearly meeting its 2030 target of 40% reduction.
• SDG&E increased its energy storage capacity in 2023 by reaching commercial operations on two additional utility-owned facilities totaling 171 MW.
• Over 85,000 tons of waste diverted from the landfill in 2023, recycling and investment recovery efforts accounted for nearly 48,000 tons diverted and recouped more than $10 million.

Social Achievements

• Sempra scored in the 81st percentile in the 2023 employee engagement survey.
• More than 65 new people managers at Oncor were trained through a management orientation program.
• Sempra, our businesses and the Sempra Foundation, empowered our communities with $30.5 million in community contributions.

Governance Achievements

• Sempra was recognized as a trendsetter for the eighth consecutive year for its civic transparency by the Center for Political Accountability.
• Implemented a political reporting and compliance plan, including launching an improved political compliance training program.
• No incidents of corruption or bribery were identified in 2023.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate-related risks (wildfires, extreme weather)
• Meeting ambitious GHG emission reduction targets
• Maintaining affordability of energy services
• Cybersecurity threats

Mitigation Strategies

• Investing in safe and resilient operations
• Developing alternative sourcing strategies
• Implementing innovative technologies (e.g., WiNGS, ELS, microgrids)
• Engaging with stakeholders and communities
• Strengthening cybersecurity measures
• Implementing robust risk management frameworks

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Diverse supplier spend targets

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Extreme weather events
• Sea level rise
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Reduced demand for natural gas
• Stranded assets

Opportunities

• Development of low-carbon energy solutions
• Investment in renewable energy infrastructure
• Growth in energy storage and electric vehicle markets

Reporting Standards

Frameworks Used: GRI Universal Standards, SASB Standards, TCFD Guidelines, UN SDGs, World Economic Forum Stakeholder Capitalism Metrics

Certifications: ISO 14001, ISO 45001

Third-party Assurance: SCS Global Services, Cameron-Cole, LLC, Deloitte Asesoria en Riesgos, SC (partial)

UN Sustainable Development Goals

• SDG 3
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Alignment with UN SDGs described on page 127.

Sustainable Products & Innovation

• Renewable natural gas (RNG)
• Hydrogen
• Energy storage
• Electric vehicle infrastructure
• e-natural gas

Awards & Recognition

• Dow Jones Sustainability North America Index
• The Wall Street Journal’s Best-Managed Companies
• Forbes America’s Best Employers for Diversity
• Numerous other awards listed in the report