Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change & Greenhouse Gas (GHG) Emissions
• Grid Modernization & Innovation
• Renewable Energy & Distributed Energy Resources
• Safety & Health
• Diversity & Inclusion
• Employee Engagement & Workforce Development
• Governance, Transparency & Compliance
• Affordability & Access
• Community Development
• Customer Relations
• Cyber & Physical Security
• Environmental Footprint
• Infrastructure Reliability & Resilience
• Local Air Quality
• Public Policy Engagement
• Service & Product Innovation
• Transportation Electrification
• Water Use & Management

Environmental Achievements

• 46% of the electricity delivered to customers in 2017 came from carbon-free resources.
• Reduced CO2e emissions from owned electricity rate to 250 lbs/MWh (from 429 lbs/MWh in 2015).
• Added 547.1 MW of solar to the grid in 2017.
• Reduced hazardous waste disposed by 47% from 2016 to 2017 (16,939 tons to 9,035 tons).

Social Achievements

• Named Utility of the Year by Utility Dive.
• Ranked #1 utility for energy storage nationally.
• Donated $21.8 million in philanthropic funding.
• Awarded $40,000 scholarships to 30 high school seniors through the Edison Scholars program.
• Improved customer satisfaction scores in both residential and business segments according to J.D. Power & Associates surveys.

Governance Achievements

• Enhanced voluntary ESG disclosure by reporting through a pilot program developed by the Edison Electric Institute (EEI).
• Formed a Sustainability Council including a cross-functional group of company leaders.
• Separated the chair and CEO positions on the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Devastating wildfires in California due to climate change.
• Not meeting reliability goals in 2017.
• DART rate worse than industry norms.
• Two contractor fatalities in early 2018.

Mitigation Strategies

• Working to make operations more resilient to climate change.
• Engaged with state and federal officials to address wildfires.
• Implementing a three-year improvement roadmap for reliability.
• Dedicated additional senior leadership, time, and attention to improve safety culture.
• Investing in safety training, communications, and hazard awareness programs.

Supply Chain Management

Supplier Audits: Monitors approximately 2,600 suppliers and other third parties for governmental watch lists, adverse media, and other potential risk exposures.

Responsible Procurement

• Supplier Code of Conduct
• Supplier Integration Initiative (reducing inbound trucks by 70%)

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Extreme weather events
• Sea-level rise

Opportunities

• Growth in clean energy, efficient electrification, and grid modernization.

Reporting Standards

Frameworks Used: GRI Standards 100, 200, 300, and 400 (2016), GRI Electric Utility Sector Supplement

Sustainable Products & Innovation

• Hybrid Enhanced Gas Turbine System
• Energy storage technologies

Awards & Recognition

• Utility of the Year (Utility Dive)
• Champion Award (Energy Storage North America)
• Business Customer Champions Award (MSI)
• Utility Small and Midsized Business Customer Satisfaction Award (eSource)
• Pro Bono Award (Public Counsel)

Environmental Metrics

ESG Focus Areas

• Clean Energy Transition
• Environmental Protection
• Customer Service
• Community Engagement
• Governance
• Employee Well-being
• Safety
• Diversity & Inclusion
• Supply Chain Sustainability

Environmental Achievements

• Reduced Scope 3 emissions by 13.6 million metric tons CO2e
• Reduced SF6 emissions by 0.102 million metric tons CO2e
• Improved NOx emissions rate of UOG
• Reduced Amount of Hazardous Waste Disposed by 4,553 tons
• Increased Habitat Protected, Enhanced or Restored by 457 acres

Social Achievements

• Increased Supplier Diversity Spend to $2.21 billion
• Increased Community Investments to $23 million
• Improved Customer Satisfaction scores (J.D. Power)
• Improved Diversity metrics across workforce, management, and executives

Governance Achievements

• Increased Board of Directors female representation to 36%
• Reduced Number of Air Permit Noncompliance Events With Fine to 0
• Reduced Number of Water Permit Noncompliance Events With Fine to 0

Climate Goals & Targets

Environmental Challenges

• Increased CO2e emissions from delivered electricity rate
• Increased consumptive fresh water use
• Increased System Average Interruption Duration Index (SAIDI) and System Average Interruption Frequency Index (SAIFI)
• Increased employee OSHA recordable rate, lost workday case rate, and DART rate (attributed to wildfire mitigation efforts)
• Decrease in Supplier Diversity Spend Percentage despite increased spend

Mitigation Strategies

• Developing and executing a plan in 2020 to address employee injuries related to wildfire mitigation
• Strengthening safety requirements for contractors
• Implementing more safety requirements for both prime and subcontractors in 2020
• Continued commitment to achieving greater than 40% spend with diverse business enterprises

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity Spend

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires

Transition Risks

• Not disclosed

Opportunities

• Increased renewable energy

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
• Diversity & Inclusion
• Safety
• Environmental Stewardship
• Community Investment
• Customer Satisfaction
• Supplier Diversity

Environmental Achievements

• Increased habitat protected, enhanced, or restored to 5,195 acres
• Reduced CO2e emissions from owned electricity rate from 225 lbs/MWh in 2019 to 227 lbs/MWh in 2020 (Note: This is a worsening metric, explained by lower hydroelectric output and increased peaker plant use due to factors like drought and wildfire damage)
• Reduced NOx emissions from UOG to 109.2 metric tons

Social Achievements

• Increased female representation in the workforce to 32%
• Increased diverse race/ethnicity representation in the workforce to 61%
• Improved customer satisfaction scores in J.D. Power & Associates surveys for both residential and business customers
• Increased community investments through contributions by shareholders and employees

Governance Achievements

• Increased female representation on the Board of Directors to 36%
• Increased combined diversity (female and/or diverse race/ethnicity) on the Board of Directors to 64%

Climate Goals & Targets

Environmental Challenges

• Increased Scope 1 emissions due to increased emissions from SCE’s transportation fleet and facilities stemming from COVID-19 employee and contractor protections and wildfire-related and other emergency operations
• Increased CO2e emissions from owned electricity rate due to lower output from SCE's hydroelectric facilities and increased use of peaker plants
• Increased environmental-related settlements, fines, and penalties due to incidents like damage caused during storm-damaged access road repairs in Mission Canyon
• Decreased supplier diversity spend rate percentage due to rising wildfire insurance costs and limited diverse suppliers
• Decreased employee and retiree volunteer hours due to COVID-19 restrictions
• Increased amount of hazardous waste disposed due to increased field project work, including wildfire response

Mitigation Strategies

• SCE updated its contractor safety management standard in 2020
• SCE is conducting a $15 million company-funded restoration to the Mission Canyon area
• SCE continues to work towards its 2030 and 2045 RPS and carbon-free power goals
• SCE uses SF6 alternative technologies when practicable and seeks to phase out additional SF6 gas-insulated equipment classes as the alternative technology becomes available

Supply Chain Management

Responsible Procurement

• Supplier Diversity Spend: $2.4 billion

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Drought

Reporting Standards

Frameworks Used: SASB, TCFD, GRI, SDGs

Environmental Metrics

ESG Focus Areas

• Climate Change
• Wildfire Mitigation
• Clean Energy Transition
• Electrification
• Governance

Environmental Achievements

• Reduced GHG emissions (Scope 1, 2, and 3) - specific numbers not provided, but a net-zero commitment by 2045 is stated.
• Submitted first Climate Adaptation Vulnerability Assessment (CAVA) to the CPUC.

Social Achievements

• Not disclosed

Governance Achievements

• Established robust governance structure for climate-related risks and opportunities, involving Board committees and executive-level sustainability steering group.

Climate Goals & Targets

Environmental Challenges

• Climate change-driven wildfires
• Transitioning to a decarbonized energy supply (reliability risks)
• Meeting California's aggressive climate goals

Mitigation Strategies

• Investing over $800 million to advance EV adoption and proposing additional investment in building electrification.
• Hardening the grid against wildfires.
• Conducting climate adaptation vulnerability assessments.
• Developing long-term resource plans to meet reliability needs and GHG emission reduction requirements.
• Exploring long-duration energy storage and low/zero-carbon fuel generation (hydrogen).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Temperature
• Precipitation
• Sea-level rise

Transition Risks

• Reliability risks associated with transitioning to decarbonized energy supply

Opportunities

• Investments in EV charging infrastructure and building electrification

Reporting Standards

Frameworks Used: TCFD, SASB, GRI, Edison Electric Institute ESG/Sustainability reporting template

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
• Electrification
• Diversity, Equity & Inclusion
• Public Safety
• Workforce Safety & Health

Environmental Achievements

• Reduced GHG emissions from SCE's delivered power (though specific numbers are estimates and subject to change based on final data)

Social Achievements

• Achieved zero serious injuries to the public from failure of SCE’s electrical system in 2018 and 2021
• Achieved zero employee fatalities in 2018-2022
• Achieved zero contractor fatalities in 2023

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Fluctuations in SCE-bundled load
• Variability in economic dispatch of generation resources
• Availability of new technologies
• Market forces affecting medium- and heavy-duty vehicle adoption
• Challenges in achieving gender parity in executive roles

Mitigation Strategies

• Annual review and update of emissions projections
• Methodology refinements to improve accuracy of sustainability metrics
• CPUC decision D.18-05-040, OP 2, to reduce minimum number of sites and extend deadlines for commitments

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: GRI, TCFD

Certifications: Null

Third-party Assurance: Third-party verification of SCE’s 2022 Scope 1, 2, and 3 inventories by The Climate Registry (TCR)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed