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Introduction

Goals and KPIs

Through our high-performance culture, we aim to create long-term sustainable value for all our shareholders and other stakeholders by managing risk and capturing opportunities related to environmental stewardship, stakeholder engagement and governance. We align our sustainability goals and KPIs across four key pillars: enabling the energy transition, driving resilient operations, achieving world-class safety and championing people.

Enabling the energy transition

  • 2050

    We aim to have net-zero
    GHG emissions
    As part of our energy transition action plan, we expect that investing in decarbonization, diversification and digitalization, or the “3Ds,” will help drive our ESG commitments to help us achieve our net-zero aim.
  • 2045

    We aim to deliver 100% renewable or zero-carbon energy to electric utility customers at SDG&E
    Consistent with California Senate Bill 100 (100% Clean Energy Act of 2018), it is the policy of the state that renewable energy resources and zero-carbon resources supply 100% of retail sales of electricity to California end-use customers and 100% of electricity procured to serve all state agencies. SDG&E estimates Renewable Portfolio Standard (RPS) program compliance in 2021 at 55%.1
  • 2030

    We aim to reduce our Sempra California and Mexico (non-LNG) operational scope 1 and 2 GHG emissions 50% compared to a 2019 baseline
    As part of our ongoing assessment related to goals, we will continue to re-assess our interim goals as necessary taking into account risks presented by regulatory developments and grid resilience needs and other relevant factors, including technological advancements that are economically and technically feasible and the level of coordination and support from governments and among industry participants.
    We aim to deliver 20% renewable natural gas to core customers at SoCalGas.
    SoCalGas achieved over 4% renewable natural gas (RNG) deliveries to core customers in 2021 and is on track to reach 20% by 2030. The company aims to provide 5% renewable natural gas by the end of 2022 and 20% renewable natural gas by 2030 to its “core service” as defined in SoCalGas’ Tariff Rule No. 23, by 2030. SoCalGas will need the support of state regulators, such as establishing RNG targets or goals to be considered by the CPUC as part of Senate Bill 1440, in order to meet its 2030 goal. We can provide no assurance that we will receive the required support of state legislators.
    We aim to reduce fugitive emissions from our natural gas transmission and distribution system 40% from our 2015 baseline.2 SDG&E, SoCalGas and IEnova efforts contribute to this goal.
    Through the implementation of a strong methane management program, as of 2020, SoCalGas and SDG&E have collectively achieved a reduction of more than 19% in fugitive methane emissions from the baseline year. For more information on how we are reducing methane emissions, see Environment.3
    We aim to eliminate 100% of natural gas vented during planned transmission pipeline work at SDG&E and SoCalGas, excluding emergency repairs.
    During pipeline testing we capture natural gas that would otherwise be released into the atmosphere. SoCalGas and SDG&E have reduced these emissions by more than 57% and 69%, respectively, compared to a 2015 baseline, preventing the release of more than nearly 60,000 metric tons of CO2e (127,765 MCF) since 2015.
  • Each Year

    We aim to operate our existing LNG infrastructure at a GHG emissions intensity 20% less than our 2020 baseline.4
    In 2021, Sempra LNG exceeded this goal with a GHG emissions intensity of 28% less than baseline. This was a result of several key initiatives at Cameron LNG including operational enhancements and a reliability-centered maintenance program to reduce flaring and fugitive emissions; enhanced methane monitoring to help minimize leaks; and updating the gasification process for LNG vessels.
    We aim to actively partner with companies and institutions across the LNG supply chain to reduce scope 2 and 3 emissions.
    As one example, the Veritas initiative is working to develop methane measurement and reconciliation protocols across six segments of the natural gas value chain, from production through liquefaction. Sempra Infrastructure has been participating in the development of the LNG protocols and is preparing to conduct demonstration projects for the LNG segment.
    We aim to enroll 90% of eligible customers in alternative rates for energy programs at SDG&E and SoCalGas.
    Protecting energy affordability helps enable a just energy transition. Energy affordability is particularly important for the lower-income utility customers served by the California Alternative Rates for Energy (CARE) program. The California Public Utilities Commission sets CARE enrollment rate goals. Sempra California works hard to meet or exceed these goals.
    Oncor aims to fulfill 100% of new renewable energy requests for interconnection.
    Oncor directly connects approximately 12,000 megawatts of renewable power to the ERCOT5 grid; according to ERCOT4 statistics, this amount of power can serve approximately 2.2 million typical Texas homes.

CARE enrollment rate 6, 7

Megawatts of renewable energy connected by Oncor to Texas’ grid

Megawatts of renewable energy connected by Oncor to Texas’ grid

Driving resilient operations

Each year

We aim to achieve electric reliability in the top quartile.

Oncor and SDG&E compile reliability data for North American utilities based on data obtained through public sources and through participation in industry benchmarking forums.

SDG&E was recognized by PA Consulting as co-recipient of the National Reliability Award. The company also received the Grid Sustainability Award, and the Regional Reliability Award for the Western Region for the 16th consecutive year, once again demonstrating outstanding reliability performance and system resilience. Operating conditions and methodology for determining performance vary by location.

Oncor is near meeting its goal of achieving top quartile reliability on the industry’s primary benchmark for reliability, system average interruption duration index (SAIDI-nonstorm). Oncor’s performance in this area continues to improve, and the target remains to be in the top quartile by the 2022 benchmarking cycle.

Average outage duration, in minutes (SAIDI)8

Average number of outages per customer (SAIFI)9

Average number of outages per customer (SAIFI)9

Achieving world-class safety

Each year

We aim to achieve zero employee and contractor fatalities.

It is with great sadness that we report in 2021 an SDG&E employee was fatally injured while operating a vehicle. The incident was thoroughly investigated, and SDG&E identified the cause and took action to prevent reoccurrence. No other employee or contractor fatalities occurred in 2021. We continue to work to strengthen employee and contractor safety.

Improve employee and contractor OSHA recordable injury rates and lost work-time incident rates.

Safety is our top priority. Through our safety-focused culture, employee recordable and lost time incident rates continue to trend down. We continue to work to identify areas where we can enhance a safe working environment for employees and our contractor workforce.

Voluntary employee turnover rate

Contractor safety incidents, per 100 full-time workers10

Contractor safety incidents, per 100 full-time workers10

We aim to participate in emergency planning processes in 100% of the communities we serve.

Our operating companies participate in community emergency planning activities, including mutual aid and training simulation exercises with first responders. Other actions in 2021 included meeting with state and regional partners to refine emergency protocols to support vulnerable communities.

For example, SDG&E met quarterly with the wildfire safety community advisory council and held wildfire webinars and safety fairs for the general public. In 2021, customers in over 2,600 vehicles participated in five drive-through safety fairs and over 400 people logged into wildfire safety webinars hosted by SDG&E.

SoCalGas, through its first responder program, completed 237 pipeline safety and awareness presentations to the California Governor’s Office of Emergency Services, county and city fire departments, county coordinators and forest protection parks and recreation personnel in all 12 counties that it serves. SoCalGas assembled and executed a company-wide virtual functional exercise and conducted 4 multi-agency emergency drills with its gas storage facilities. SoCalGas also revised, enhanced and conducted eight summer and winter curtailment workshops in partnership with SDG&E.

We aim to train 100% of critical employees in emergency management and response.

Our operating companies prepare for significant disasters or emergencies each year. They develop operational contingency plans and practice implementing them. 24/7 emergency operations facilities are staffed by employees specifically trained in emergency response, including Federal Emergency Management Agency (FEMA) and National Incident Management System training. 174 SoCalGas employees were trained on FEMA 100 and 200 in 2021. A series of drills were carried across our operations to prepare for emergency conditions, including severe weather events and their potential impacts to our infrastructure.

Whenever energy service is threatened or affected by a serious or widespread event, such as a wildfire or earthquake, SDG&E activates its Emergency Operations Center (EOC) to coordinate restoration of gas and electric service. For weather related potential impacts like Public Safety Power Shutoffs due to Red Flag Warnings, SDG&E EOC activates to confirm appropriate notifications are made and to mitigate wildfire risks. EOC responders work closely with public officials, law enforcement, fire departments and others to help manage the incident, protect public safety and keep communities informed. All EOC responders are required to complete several trainings to meet the eligibility to serve as a responder. In 2021, SDG&E had 448 active responders.

Championing people

Each year

We aim to provide 30+ training hours per employee

Employees on average completed 17.7 hours of training in 2021.11 Opportunities for developmental training for employees have been evolving throughout the pandemic, with many in-person courses either shifting online or being temporarily unavailable. We remain committed to developing our employees with formal training via classroom, workshops and training courses; mentoring, coaching and peer-to-peer social forums; and experiential on the job assignments and rotations.

We aim to achieve or maintain workforce diversity consistent with that of the communities where we operate

Company-wide data demonstrates our consistent commitment to gender and ethnic diversity. Please see Introduction for performance data and other information on how we work to create a high-performance culture.

We aim to achieve a voluntary employee turnover rate of 5% or less

We recognize that employees may decide to voluntarily leave the company for a wide range of reasons, including retirement. We saw a minor increase in turnover during the pandemic due to employees reevaluating their options and some choosing to change fields or the part of the country in which they prefer to live during these uncertain times. At 7%, our overall turnover still remained lower than industry average.

We aim to achieve a company-wide employee engagement survey score in the top quartile

In 2021, we conducted our biennial employee engagement survey, resulting in an overall engagement score of 87%, with some of our companies achieving record high scores for those companies. Employee engagement has remained at or above 78% since 2011. We strive for continued improvement, analyzing survey results across a wide range of factors, and take action as a result. Leaders have shared the results with their teams with the objective of creating concrete action plans for areas of improvement. Our results are well above external benchmark comparisons.

Voluntary employee turnover rate

Employee engagement12

Employee engagement12

  1. SDG&E annual estimates of RPS compliance are likely to vary year-over-year due to portfolio rebalancing related to portfolio allocations to load-serving entities (LSEs) and customer load departure to local Community Choice Aggregators (CCAs).
  2. IEnova’s baseline is 2019.
  3. Data for 2021 will be finalized in June 2022 and reported in our 2022 sustainability report.
  4. This goal is through 2025. Cameron LNG, the primary LNG operating asset, achieved its first full year of operations in 2021. As the LNG business gains operational history and continues to grow, we expect to establish new goals.
  5. Electric Reliability Council of Texas, Inc., the independent system operator and the regional coordinator of various electricity systems within Texas.
  6. 2020 figures reported last year have been updated per final regulatory filings. 2021 figures are preliminary pending regulatory filings.
  7. In 2020 and 2021, eligibility for CARE expanded and enrollment increased above 100% of eligible customers as a result of the COVID-19 pandemic’s negative impact on socioeconomic conditions.
  8. System average interruption duration index
  9. System average interruption frequency index
  10. We continue to improve the completeness of contractor safety data. Oncor is not included. 5-year rolling average data will be provided when available.
  11. Data includes professional development courses and does not include ethics and compliance or other mandatory training.
  12. Based on employee responses to a subset of questions in an anonymous survey conducted every other year. Excludes data from Oncor and our South American businesses sold in 2020. In 2019 and 2021, the external benchmark compares Sempra results against the top quartile of other U.S.-based companies utilizing the Qualtrics third-party survey vendor. Prior year external benchmark numbers from previous vendors reflect aggregated data from Fortune 500 companies.

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