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Environment

Environmental management

At the core of Sempra’s efforts to advance a just and orderly energy transition is a commitment to strong environmental stewardship policies and practices. From investing in technology and innovation to help achieve a net-zero future, to reducing emissions from our own operations and protecting natural resources, we strive to mitigate our environmental impact — and to enable our customers to do the same.

Sempra’s strong environmental management practices help us protect the environment and advance a circular economy. Our environmental policy details our work to reduce our environmental impact and our commitment to abide by applicable laws, regulations and permit requirements. Additional environmental policies and procedures are designed to manage issues such as preserving biodiversity, water use, recycling and waste minimization, air quality improvements and GHG and other air emissions reduction programs. Other key components of our environmental management practices include regular reviews of our performance, including environmental audits at our facilities to identify areas of potential improvement, and education and training for employees and contractors. An environmental committee brings together teams from across our companies each quarter to share suggested practices and lessons learned. Sempra’s chief sustainability officer is responsible for the company’s environmental policies, while the SS&T committee of Sempra’s board of directors considers environmental management issues as part of its oversight function.

Our operating companies utilize environmental management systems to assess and mitigate environmental risks associated with our operations. These systems identify compliance requirements and procedures, track training requirements for employees and audit our performance. For example, the environmental and safety compliance management program, used at Sempra California, helps to ensure compliance with environmental and safety laws and regulations as well as company standards. In Mexico, our major operations have ISO 14001 certifications (56% of all our facilities in Mexico).1 For new construction or major projects, specialized teams support environmental compliance from planning to project completion with the aim of being responsible stewards of natural resources.

One way we track our environmental compliance performance is through notices of violation (NOV) issued by government agencies for non-compliance with environmental regulations. In 2021, 96% of all agency inspections we received did not yield NOVs, and we received 16 NOVs and paid $15,250 in settlements and $1,100 in fines and penalties. 1 1 of the NOVs were for air quality-related issues, one was related to waste management and four were administrative in nature. While all of the Sempra companies strive for 100% compliance with all applicable regulatory requirements, when an issue is discovered we work closely with the overseeing agencies to timely make necessary corrections and maintain safe and sustainable operations.

  1. Self-reported violations are not included.
  2. The number of internal compliance assessments and audits may vary from year-to- year due to adjustment of inspection cycles as determined by risk assessments.
  3. Does not include settlements. The amount of fines and penalties paid varies from year-to-year depending on the nature of the violation and the timing of its resolution.
  1. ISO 14001 is a voluntary standard that provides a framework for organizations to improve their environmental performance by designing and implementing effective environmental management systems.

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