SAN DIEGO, April 28, 2021 /PRNewswire/ -- Sempra Energy
(NYSE: SRE) today released its 2020 Corporate Sustainability
Report, highlighting the company's actions to create long-term
value for shareholders and other stakeholders by managing risks and
capturing opportunities related to environmental, social and
governance (ESG) factors. The company's actions are anchored to its
four key sustainability pillars:
- Achieving world-class safety;
- Enabling the energy transition;
- Driving resilient operations; and
- Championing people.
View the full details in the report at:
sempra.com/sustainability/sustainability-report.
"Over the last two decades, the United
States has doubled its gross domestic product, while
registering the largest absolute decline in energy-related
CO2 emissions of any country in the world," said
Jeffrey W. Martin, chairman and CEO
of Sempra Energy. "We think there is an opportunity to continue
making real progress and are committed to advancing critical new
infrastructure investments that support decarbonizing the economies
of North America, while making
lower- to zero-carbon energy sources available to our global
partners. Our multi-factor approach to managing our business is
directly aligned with the value proposition of creating durable
value for our shareholders, customers, employees and other
stakeholders."
Achieving World-Class Safety
Safety underpins the high-performance culture seen across the
Sempra Energy family of companies, where community safety is
prioritized and every employee feels responsible for their own
safety as well as the safety of others. The Sempra Energy board of
directors oversees this mandate across the organization through its
Safety, Sustainability and Technology Committee.
The unprecedented challenges presented by COVID-19 reinforced
the company's unwavering commitment to health and safety.
Identified among the country's critical infrastructure, Sempra
Energy and its operating companies activated business continuity
plans and safety protocols aimed at identifying and mitigating
risks while continuing to work to deliver energy safely. Through
these actions, Sempra Energy's safety performance improved in 2020
with all operating companies achieving decreases in their employee
recordable injury rate. Examples of safety highlights at each of
Sempra Energy's operating companies can be found on pages 55 and
80 of the report.
Enabling the Energy Transition
Sempra Energy and its family of companies have been advancing
programs to decarbonize, diversify and digitalize its energy
infrastructure while continuing to work hard to deliver safe,
reliable and affordable energy to more than 36 million consumers
across North America. The
company's "3Ds" framework supports its enterprise-wide goal to
achieve net-zero emissions by 2050 across scopes 1, 2, and 3 for
its operations and the customers it serves. Sempra Energy is
investing in the energy infrastructure needed in the following
three key areas to expand its energy systems and help achieve its
climate goals:
- Decarbonization: Reducing the carbon content of energy in
critical economic sectors – industrial, transportation and power
generation – and emitting no more carbon in its operations than it
removes from the atmosphere.
- Diversification: Bringing new lower- to zero-carbon fuel
choices to every market it serves, coupled with the expansion of
advanced energy networks and storage to improve resiliency.
- Digitalization: Integrating real-time information and
cutting-edge analytics to benefit network operators and consumers
with improved operational reliability and safety.
"Climate is at the center of our business strategy. That is why
we have introduced an action-oriented framework around these three
areas in this year's report – all with a focus on building a
stronger and more growth-oriented business, while allocating
capital with a view toward emitting less carbon dioxide than we
remove from the atmosphere by the middle of this century," said
Lisa Alexander, senior vice
president of corporate affairs and chief sustainability officer for
Sempra Energy. "We are optimistic about the future and committed to
living our values – doing the right thing, championing people, and
shaping the future – and I could not be more proud of the
contributions of our more than 19,000 employees towards serving our
stakeholders every day."
The company's action plan towards net-zero emissions includes
interim goals and infrastructure deployment plans through three
time periods: 2025, 2030 and 2050. Planned activities are outlined
on page 22 of the report.
Driving Resilient Operations
Amidst the pandemic, employees across the Sempra Energy family
of companies have continued to deliver essential energy to more
than 36 million consumers in North
America. With global energy demand projected to increase by
50% by 2050 according to the U.S. Energy Information
Administration, resilient energy infrastructure will take on even
greater importance. That is why Sempra Energy is continuing to
invest in and expand its energy transmission and distribution
networks. Examples include, among others:
- Oncor Electric Delivery Company LLC (Oncor) connected more than
60 central-station renewable generators to the energy grid in 2020
with the capability of producing 11,000 megawatts of energy, while
also connecting more than 40% of the state's wind generation
capacity to the energy grid through its transmission
facilities.
- San Diego Gas & Electric (SDG&E) is leveraging
artificial intelligence and satellite technology to improve
wildfire mitigation initiatives and help keep its communities safe
from wildfire risks with one of the largest utility-owned weather
monitoring networks in the nation.
- Southern California Gas Co.'s (SoCalGas) natural gas system
provides flexible fuel delivery, long-term storage and reliable
energy, especially for critical end-uses. The flexibility of
natural gas as an energy resource has been critical in helping
California's electricity providers
increase renewable energy penetration.
- Sempra LNG's design standards for infrastructure resiliency
were demonstrated as Cameron LNG experienced the effects of two
Category 4 hurricanes in 2020 with no injuries and minimal damage
to the newly constructed liquefaction facilities.
- IEnova, as a top renewable energy generator in Mexico, is making critical infrastructure
investments with a goal of achieving 97% availability for its
renewable generation fleet by 2030 and supporting clean and
sustainable economic growth in Mexico.
Championing People to Advance a High-Performance
Culture
Sempra Energy is continuing to advance its high-performing
culture centered on the company's vision, mission and values to
provide a clear sense of purpose for its more than 19,000 employees
with an unwavering focus on safety.
Other key factors in the company's high-performance culture are
a commitment to workforce development and training and a focus on
fostering an inclusive environment where diverse perspectives and
backgrounds are embraced. In 2020, Sempra Energy created an
enterprise-wide action plan centered on five strategic pillars
designed to advance the company's goals for promoting diversity,
economic prosperity and social justice. The five pillars
include:
- Leading from the top
- Accelerating engagement
- Creating opportunity
- Driving conscious inclusion
- Partnering with our communities
Learn more about Sempra's action plan on page 57 of the
report.
Sempra Energy's operating companies are also committed to
promoting an inclusive supplier base that represents the
communities they serve. Moreover, the Sempra Energy family of
companies is championing people with a focus on promoting economic
opportunity and well-being within these communities. Actions taken
include, among others:
- SDG&E and SoCalGas purchased more than $1.7 billion in goods and services from
businesses owned by women, minorities, service-disabled veterans
and members of the LGBTQ community in 2020, marking the eighth
consecutive year that each company's supplier diversity spending
exceeded 40% in total, consistently surpassing the California
Public Utilities Commission's goal of 21.5%.
- Oncor's supplier diversity accounted for nearly $335 million or 12% of its procurement spend,
while the company issued $450 million
in sustainable bonds with proceeds designated for investments or
expenditures with women- and minority-owned suppliers.
- Sempra Energy, its operating companies and the Sempra Energy
Foundation contributed nearly $52
million to charities and other nonprofit civic and community
groups in 2020. This includes more than $14
million to support community-based organizations engaged in
responding to the COVID-19 pandemic.
Guidelines for the Report
This is the company's 13th annual sustainability
report. This year's report draws guidance from leading global
disclosure frameworks, including the Global Reporting Initiative,
Sustainability Accounting Standards Board, Task Force on
Climate-Related Financial Disclosures and the United Nations
Sustainable Development Goals, together with the company's
stakeholder materiality assessment introduced in its 2019 report.
In addition, the report pilots 22 of the World Economic Forum's
Stakeholder Capitalism Metrics introduced in Fall 2020.
About Sempra Energy
Sempra Energy's mission is to be North
America's premier energy infrastructure company. The Sempra
Energy family of companies have more than 19,000 talented employees
who deliver energy with purpose to over 36 million consumers. With
more than $66 billion in total assets
at the end of 2020, the San
Diego-based company is the owner of one of the largest
energy networks in North America
serving some of the world's leading economies. The company is
helping to advance the global energy transition by enabling the
delivery of lower-carbon energy solutions in each market it serves,
including California, Texas, Mexico
and the LNG export market. Sempra Energy is consistently recognized
as a leader in sustainable business practices and for its
long-standing commitment to building a high-performing culture
including safety, workforce development and training, and diversity
and inclusion. Sempra Energy is the only North American utility
sector company included on the Dow Jones Sustainability World Index
and was also named one of the "World's Most Admired Companies" for
2021 by Fortune Magazine. For additional information about Sempra
Energy, please visit Sempra Energy's website at www.sempra.com and
on Twitter @SempraEnergy, and
sempra.com/sustainability/sustainability-report for Sempra Energy's
latest sustainability report.
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are based on assumptions with respect to the future,
involve risks and uncertainties, and are not guarantees. Future
results may differ materially from those expressed in any
forward-looking statements. These forward-looking statements
represent our estimates and assumptions only as of the date of this
press release. We assume no obligation to update or revise any
forward-looking statement as a result of new information, future
events or other factors.
In this press release, forward-looking statements can be
identified by words such as "believes," "expects," "anticipates,"
"plans," "estimates," "projects," "forecasts," "should," "could,"
"would," "will," "confident," "may," "can," "potential,"
"possible," "proposed," "in process," "under construction," "in
development," "target," "outlook," "maintain," "continue," or
similar expressions, or when we discuss our guidance, priorities,
strategy, goals, vision, mission, opportunities, projections,
intentions or expectations.
Factors, among others, that could cause actual results and
events to differ materially from those described in any
forward-looking statements include risks and uncertainties relating
to: California wildfires,
including the risks that we may be found liable for damages
regardless of fault and that we may not be able to recover costs
from insurance, the wildfire fund established by California
Assembly Bill 1054 or in rates from customers; decisions,
investigations, regulations, issuances or revocations of permits
and other authorizations, renewals of franchises, and other actions
by (i) the Comisión Federal de Electricidad, California Public
Utilities Commission (CPUC), U.S. Department of Energy, Public
Utility Commission of Texas, and
other regulatory and governmental bodies and (ii) states, counties,
cities and other jurisdictions in the U.S., Mexico and other countries in which we do
business; the success of business development efforts, construction
projects and major acquisitions and divestitures, including risks
in (i) the ability to make a final investment decision, (ii)
completing construction projects or other transactions on schedule
and budget, (iii) the ability to realize anticipated benefits from
any of these efforts if completed, and (iv) obtaining the consent
of partners or other third parties; the resolution of civil and
criminal litigation, regulatory inquiries, investigations and
proceedings, and arbitrations, including, among others, those
related to the natural gas leak at Southern California Gas
Company's (SoCalGas) Aliso Canyon natural gas storage facility; the
impact of the COVID-19 pandemic on our capital projects, regulatory
approval processes, supply chain, liquidity and execution of
operations; actions by credit rating agencies to downgrade our
credit ratings or to place those ratings on negative outlook and
our ability to borrow on favorable terms and meet our substantial
debt service obligations; moves to reduce or eliminate reliance on
natural gas and the impact of volatility of oil prices on our
businesses and development projects; weather, natural disasters,
pandemics, accidents, equipment failures, explosions, acts of
terrorism, computer system outages and other events that disrupt
our operations, damage our facilities and systems, cause the
release of harmful materials, cause fires and subject us to
liability for property damage or personal injuries, fines and
penalties, some of which may not be covered by insurance (including
costs in excess of applicable policy limits), may be disputed by
insurers or may otherwise not be recoverable through regulatory
mechanisms or may impact our ability to obtain satisfactory levels
of affordable insurance; the availability of electric power and
natural gas and natural gas storage capacity, including disruptions
caused by failures in the transmission grid, limitations on the
withdrawal of natural gas from storage facilities, and equipment
failures; cybersecurity threats to the energy grid, storage and
pipeline infrastructure, the information and systems used to
operate our businesses, and the confidentiality of our proprietary
information and the personal information of our customers and
employees; expropriation of assets, failure of foreign governments
and state-owned entities to honor their contracts, and property
disputes; the impact at San Diego Gas & Electric Company
(SDG&E) on competitive customer rates and reliability due to
the growth in distributed and local power generation, including
from departing retail load resulting from customers transferring to
Direct Access and Community Choice Aggregation, and the risk of
nonrecovery for stranded assets and contractual obligations; Oncor
Electric Delivery Company LLC's (Oncor) ability to eliminate or
reduce its quarterly dividends due to regulatory and governance
requirements and commitments, including by actions of Oncor's
independent directors or a minority member director; volatility in
foreign currency exchange and interest and inflation rates and
commodity prices and our ability to effectively hedge these risks;
changes in tax and trade policies, laws and regulations, including
tariffs and revisions to international trade agreements that may
increase our costs, reduce our competitiveness, or impair our
ability to resolve trade disputes; and other uncertainties, some of
which may be difficult to predict and are beyond our
control.
These risks and uncertainties are further discussed in the
reports that Sempra Energy has filed with the U.S. Securities and
Exchange Commission (SEC). These reports are available through the
EDGAR system free-of-charge on the SEC's website, www.sec.gov, and
on the company's website, www.sempra.com. Investors should not rely
unduly on any forward-looking statements.
Sempra North American Infrastructure, Sempra LNG, Sempra
Mexico, Sempra Texas Utilities, Oncor and Infraestructura
Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies
as the California utilities,
SDG&E or SoCalGas, and Sempra North American Infrastructure,
Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova
are not regulated by the CPUC.
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SOURCE Sempra Energy