Sempra : CDP Water Questionnaire

Sempra Energy - Water Security 2021

W0. Introduction

W0.1

(W0.1) Give a general description of and introduction to your organization.

Sempra Energy (doing business as Sempra and referred to in this questionnaire as "Sempra" or the "Company") is a California-based holding company with energy infrastructure investments in North America and 2020 revenues of $11.4 billion. We and our family of companies invest in, develop and operate energy infrastructure and provide electric and gas services to customers through regulated public utilities. We operate in what we believe are the most attractive markets in North America: California, Texas, and Mexico. Our businesses position us at the intersection of two broad trends: innovation in energy technology and infrastructure; and growing demand for lower- carbon energy. Sempra is committed to driving responsible strategies to meet the evolving market need for sustainable, resilient and affordable energy. This is critical to our ability to deliver long-term, sustainable value to our shareholders and other stakeholders. Our operating companies include:

• San Diego Gas & Electric Company (SDG&E), is a regulated public utility that provides electric services to, at December 31, 2020, ~3.7M consumers and natural gas services to ~3.4 million of those consumers, covering a service territory in Southern California that encompasses San Diego County and an adjacent portion of Orange County.
• Southern California Gas Company (SoCalGas), is a regulated public utility that owns and operates a natural gas distribution, transmission and storage system that supplies natural gas to, at December 31, 2020, ~22 million consumers, covering a service territory that encompasses Southern California and portions of central California (excluding San Diego County, the City of Long Beach and the desert area of San Bernardino County)
• Oncor Electric Delivery Company LLC (Oncor), is the largest regulated electric transmission and distribution company in Texas, working to provide safe and reliable service to ~10 million consumers.
• Infraestructura Energetica Nova, S.A.B. de C.V. (IEnova), develops, owns and operates, or holds interest in, energy infrastructure in Mexico in three key energy markets: gas, power and storage.
• Sempra LNG develops, builds, operates and invests in natural gas liquefaction export facilities, including natural gas pipelines and infrastructure, and buys, sells and transports natural gas through its marketing operations, all within North America.

W-EU0.1a

(W-EU0.1a) Which activities in the electric utilities sector does your organization engage in?

Electricity generation

Transmission

Distribution

W-EU0.1b

(W-EU0.1b) For your electricity generation activities, provide details of your nameplate capacity and the generation for each technology.

	Nameplate capacity (MW)	% of total nameplate capacity	Gross electricity generation (GWh)
Coal - hard	0	0	0
Lignite	0	0	0
Oil	0	0	0
Gas	1829	66.15	6009
Biomass	0	0	0
Waste (non-biomass)	0	0	0
Nuclear	0	0	0
Fossil-fuel plants fitted with carbon capture and storage	0	0	0
Geothermal	0	0	0
Hydropower	0	0	0
Wind	407	14.72	1094
Solar	529	19.13	636
Marine	0	0	0
Other renewable	0	0	0
Other non-renewable	0	0	0
Total	2765	100	7739

W0.2

(W0.2) State the start and end date of the year for which you are reporting data.

	Start date	End date
Reporting year	January 1 2020	December 31 2020

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W0.3

(W0.3) Select the countries/areas for which you will be supplying data.

Mexico

United States of America

W0.4

(W0.4) Select the currency used for all financial information disclosed throughout your response.

USD

W0.5

(W0.5) Select the option that best describes the reporting boundary for companies, entities, or groups for which water impacts on your business are being reported.

Other, please specify ((Operational control, except that we also provide water data for the Cameron LNG facility where we have a 50.2% ownership share, but do not have operational control.))

W0.6

(W0.6) Within this boundary, are there any geographies, facilities, water aspects, or other exclusions from your disclosure?

Yes

W0.6a

(W0.6a) Please report the exclusions.

Exclusion	Please explain
Water used for hydrostatic testing of some natural	Aggregated data collection for this source is not currently in place, we hope to include this in our disclosure in future years. Recycled water is typically used for
gas pipelines at our California utilities.	this process and used several times before being discharged for an alternate use such as dust control.
Water recycling/reuse in some of our operations.	While several of our facilities utilize water recycling, we are still working to capture this data from all relevant facilities.
Major construction projects and major projects	Major construction and major projects are generally excluded from the scope of our corporate data collection process.
outside the scope of normal operations.

W1. Current state

W1.1

(W1.1) Rate the importance (current and future) of water quality and water quantity to the success of your business.

	Direct use	Indirect	Please explain
	importance	use
	rating	importance
		rating
Sufficient amounts	Important	Important	Freshwater (mostly municipal water) is used across our operations, particularly in employee-occupied facilities and some power plant operations. Natural gas and
of good quality			electricity suppliers are a critical part of our supply chain. While their water sources will vary, for some, access to freshwater is vital to the provision of natural gas
freshwater available			and electricity to our companies.
for use
Sufficient amounts	Vital	Important	Salt/brackish and recycled water are particularly important to our operations. For example, our liquefied natural gas (LNG) regasification terminal in Mexico
of recycled,			withdraws seawater for use in its operations, and carefully returns it to the ocean after it's used. Termoeléctrica de Mexicali (TDM), IEnova's natural gas-powered
brackish and/or			combined cycle electricity generating plant in Mexico relies heavily on recycled/wastewater for operations. Natural gas and electricity suppliers are a critical part of
produced water			our supply chain. While their water sources will vary, for some, access to recycled, brackish or produced water is vital to the provision of natural gas and electricity to
available for use			our companies.

W1.2

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(W1.2) Across all your operations, what proportion of the following water aspects are regularly measured and monitored?

	% of	Please explain
	sites/facilities/operations
Water withdrawals -	100%	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
total volumes		terminals, and natural gas pipelines. Individual facilities monitor water on a consistent basis, including withdrawals. Their measurement methods (well
		measurement, water utility bills) will depend on what is most relevant for the facility. Data is also submitted to the corporate sustainability team annually.
		Additionally, certain facilities, such as those at our two California utilities, have goals related to water.
Water withdrawals -	100%	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
volumes by source		terminals, and natural gas pipelines. Individual facilities monitor water data on a consistent basis, depending on what is most relevant for the facility. Water for
		operations comes from different sources, depending on the nature of operations. Data on water withdrawals by source is submitted to the corporate sustainability
		team annually. Additionally, certain facilities, such as those at our two California utilities, have goals related to water.
Entrained water
associated with your
metals & mining
sector activities -
total volumes [only
metals and mining
sector]
Produced water
associated with your
oil & gas sector
activities - total
volumes [only oil
and gas sector]
Water withdrawals	100%	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
quality		terminals, and natural gas pipelines. Individual facilities monitor water data on a consistent basis, depending on what is most relevant for the facility. Data related
		to water quality parameters utilized is also submitted to the corporate sustainability team annually. Additionally, certain facilities, such as those at our two California
		utilities, have goals related to water.
Water discharges -	76-99	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
total volumes		terminals, and natural gas pipelines. Individual facilities monitor water data on a consistent basis, depending on what is most relevant for the facility. Data for water
		discharge volumes is submitted to the corporate sustainability team annually. Municipal water discharges at employee occupied facilities are not typically metered
		or tracked.
Water discharges -	76-99	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
volumes by		terminals, and natural gas pipelines. Individual facilities monitor water data on a consistent basis, depending on what is most relevant for the facility. Data for water
destination		discharges by destination is also submitted to the corporate sustainability team annually. Municipal water discharges at employee occupied facilities are not
		typically metered or tracked.
Water discharges -	76-99	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
volumes by		terminals, and natural gas pipelines. This is measured at the facility level, according to permitting and other regulatory requirements. Water treatment will vary
treatment method		based on the specific operations of the facility. Municipal water discharges at employee occupied facilities are not typically metered or tracked.
Water discharge	76-99	The term "facility" has the same definition as stated above. Water discharge quality is measured at the facility level, according to permit and other regulatory
quality - by		requirements. Our operating companies are held strictly accountable for following all environmental regulations and laws, including those related to water quality,
standard effluent		and obtaining all required permits. For example, IEnova's TDM power plant processes over 1 billion gallons of sewage annually for plant operations. After it is
parameters		used, clean irrigation-quality water is sent to the Rio Nuevo, which is considered one of the most polluted rivers of its size. Several water quality parameters are
		reviewed before water discharge. SDG&E's Palomar Energy Center, which uses reclaimed sewage water purchased from the city of Escondido, currently
		discharges water under an Industrial Use Discharge permit. Both sections of the permit have specific discharge limits and monitoring requirements, for TOCs, TSS,
		chlorine content and other parameters.
Water discharge	76-99	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
quality -		terminals, and natural gas pipelines. Individual facilities monitor water data on a consistent basis, depending on what is most relevant for the facility. For example,
temperature		at IEnova's LNG regasification terminal in Mexico, water discharge temperature is very relevant. To help maintain compliance with environmental regulations,
		seawater withdrawn for its operations must be carefully monitored for temperature changes before it is discharged again to the ocean. Data is also submitted to
		the corporate sustainability team annually. Municipal water discharges at employee occupied facilities are not typically metered or tracked.
Water consumption	76-99	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
- total volume		terminals, and natural gas pipelines. Individual facilities monitor water consumption data on a consistent basis, depending on what is most relevant for the facility.
		Data is also submitted to the corporate sustainability team annually. Certain facilities, such as those at our two California utilities, have goals related to water
		consumption.
Water	Less than 1%	For Sempra, the term 'facilities' encompasses employee occupied offices, power plants, renewable generation assets such as wind farms and solar plants, LNG
recycled/reused		terminals, and natural gas pipelines. While several of our facilities utilize water recycling, we are still working to ensure that all relevant facilities are included and
		are capturing recycled water use accurately, given the complexity of these calculations. In 2019, SoCalGas started tracking water discharges, including recycled
		water, and in October 2020, SDG&E established a goal to increase recycled water use to at least 90% at all their facilities by 2030.
The provision of	Not relevant	Access to WASH services is currently not relevant for our operations. All facilities provide safely managed WASH services.
fully-functioning,
safely managed
WASH services to
all workers

W1.2b

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(W1.2b) What are the total volumes of water withdrawn, discharged, and consumed across all your operations, and how do these volumes compare to the previous reporting year?

	Volume	Comparison	Please explain
	(megaliters/year)	with
		previous
		reporting
		year
Total	106483.25	About the	Our total water withdrawal was approximately 4% higher in 2020 as a result of the growth in our LNG operations. Water withdrawal varies year-over-year based on
withdrawals		same	the operational needs of our facilities. While we continue to improve data collection related to water, these numbers do not account for all aspects of our operations,
			including natural gas pipeline testing at our California utilities. For comparability purposes, the prior year volume was adjusted to include water withdrawn at the
			Cameron LNG facility. The volume of water withdrawn in 2019, including Cameron LNG, was 101,649 megaliters.
Total	100746.73	About the	Our overall water discharges were 6% higher in 2020. Of the total water discharged, 92% was returned to source, with negligible losses or variation in quality. Water
discharges		same	discharge varies year-over-year based on the operational needs of our facilities. In future years, we expect that total water discharge will increase with the completion
			of new facilities. For comparability purposes, the prior year volume was adjusted to include water discharged at the Cameron LNG facility. The volume of water
			discharged in 2019, including Cameron LNG, was 95,954.20 megaliters.
Total	5736.52	Lower	Our overall consumption was 7% lower in 2020 as compared to 2019 based on an organization-wide calculation (total withdrawals minus total discharges). The
consumption			variance is mainly due to an increase in water discharges at TDM, IEnova's natural gas power plant, that resulted from maintenance activities that took place in the
			cooling tower in 2020. Overall, Sempra consumed approximately 5% of the water withdrawn in 2020 and returned around 92% of the water withdrawn to the source
			of extraction. Water consumption varies year-over-year based on the operational needs of our facilities.

W1.2d

(W1.2d) Indicate whether water is withdrawn from areas with water stress and provide the proportion.

	Withdrawals	%	Comparison	Identification	Please explain
	are from	withdrawn	with	tool
	areas with	from	previous
	water stress	areas with	reporting
		water	year
		stress
Row	Yes	1-10	About the	WRI	We have mapped our facilities utilizing the WWF water risk filter 5.0 tool and WRI's Aqueduct tool. The facilities we consider to be exposed to water
1			same	Aqueduct	risks are those located in water-stressed areas considered to be 'High Risk' or 'Extremely High Risk' per the WRI mapping and that also use
					freshwater in their operations. The facilities exposed to water risks based on these qualifications consist of four SDG&E natural gas power generation
					plants, which are critical components for the reliable delivery of power to our customers. We have additional operations located in water-stressed areas
					that utilize minimal or no freshwater and have less water related risk; therefore, these facilities are not included above. In 2020, water withdrawn for
					power generation activities accounted for only 6.8% of Sempra's total water withdrawn and mainly came from reclaimed or recycled sources.
					Additionally, Sempra's use of fresh water is minimal, accounting for less than 1% of our total water withdrawn. We use alternative sources of water
					when reasonably possible to help preserve fresh water for nearby communities and mitigate any contribution to water scarcity. Based on the 2020
					water risk assessment, the four SDG&E natural gas power plants located in water-stressed areas accounted for 2.2% of Sempra's total water
					withdrawn, and 91% of that water came from reclaimed or recycled sources. Compared to last year, total water withdrawn by these four facilities is
					59% higher (1,514 in 2019 compared to 2,414 megaliters in 2020). This increase is mainly due to an increase in generation operations at Palomar
					Energy Center. The source of the water withdrawn for generation activities was all municipal waste water. Water withdrawals from water-stressed
					areas come mainly from SDG&E's natural gas power generation activities (which use predominantly reclaimed water, as noted above).

W1.2h

(W1.2h) Provide total water withdrawal data by source.

	Relevance	Volume	Comparison	Please explain
		(megaliters/year)	with
			previous
			reporting
			year
Fresh surface water,	Relevant	1.13	Higher	Fresh surface water withdrawal increased from 0.60 in 2019 to 1.13 in 2020. This increase is mainly attributed to rainwater removal from
including rainwater, water				well cellars at SoCalGas where the water is typically returned to the surface. Fresh water withdrawals vary year-over-year based on rainfall
from wetlands, rivers, and				amounts. This amount does not include rainwater removed at Cameron LNG. Overall our collected rainwater was less than 1% of total
lakes				water withdrawn.
Brackish surface	Relevant	98596.67	About the	Our seawater surface withdrawal remained about the same (5% increase in 2020). Our brackish surface water/seawater withdrawal varies
water/Seawater			same	year-over-year based on the operational needs of our facilities.
Groundwater - renewable	Relevant	112.21	Much higher	Fresh water withdrawn from ground water increased from the 27.31 reported in 2019 to 112.21 in 2020 primarily due to data that was not
				captured previously. We anticipate further variance in the amount of groundwater withdrawn as a result of increasing accuracy of water
				data captured.
Groundwater - non-	Not		<>
renewable	relevant		Applicable>
Produced/Entrained water	Relevant	84.6	This is our	Starting in 2020, SoCalGas' produced water withdrawn (recycled purple water) is included in our overall water reporting figures. Produced
			first year of	water was used to support SoCalGas' storage field operations.
			measurement
Third party sources	Relevant	7688.63	About the	Water withdrawals from third party sources come primarily from municipal wastewater and from municipal water. Our water withdrawals
			same	from these sources remained about the same (4% increase in 2020). The slight increase was mainly driven by an increase in electricity
				generation at SDG&E's Palomar Energy Center in 2020. Our water withdrawal from third party sources varies year-over-year based on the
				operational needs of our facilities.

W1.2i

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(W1.2i) Provide total water discharge data by destination.

	Relevance	Volume	Comparison	Please explain
		(megaliters/year)	with
			previous
			reporting
			year
Fresh surface	Not		<>	Upon further review, water discharges previously reported as fresh surface water in 2019 and 2020 have been reclassified as water discharged to
water	relevant		Applicable>	brackish surface water/seawater (below), as it is a more appropriate designation for this discharge. Refer to row below for explanations on the
				changes in classification.
Brackish	Relevant	99182	About the	Our seawater surface withdrawal remained about the same (5% decrease in 2020). Our brackish surface water/seawater withdrawal varies year-over-
surface			same	year based on the operational needs of our facilities (including factors such as power production, variability of plant dispatch, ambient weather, and
water/seawater				water supply quality). This figure includes water volumes previously reported as fresh surface water originating from SDG&E's Palomar Energy Center
				operations.
Groundwater	Relevant	0.82	Much lower	We continue our efforts to enhance the accuracy of water discharge data captured at SoCalGas facilities (as noted in 2019). In 2020 we experienced a
				decrease in groundwater discharged mainly due to the increased accuracy of the water data captured. This figure includes water discharged to ponds
				that are unlined and recharge the aquifer.
Third-party	Relevant	1564	Much higher	We experienced a significant increase in discharges to third-party destinations (municipal treatment plants and storage/waste lagoon) mainly attributed
destinations				to an increase in water discharged from IEnova's TDM power plant due to cleaning and maintenance activities. Our water discharged to third party
				sources varies year-over-year based on the operational needs of our facilities (including factors such as power production, variability of plant dispatch,
				ambient weather, and water supply quality).

W1.2j

(W1.2j) Within your direct operations, indicate the highest level(s) to which you treat your discharge.

	Relevance of treatment level to	Volume	Comparison of treated volume with previous	% of your sites/facilities/operations this	Please
	discharge	(megaliters/year)	reporting year	volume applies to	explain
Tertiary treatment	Please select
Secondary treatment	Please select
Primary treatment only	Please select
Discharge to the natural environment	Please select
without treatment
Discharge to a third party without	Please select
treatment
Other	Please select

W-EU1.3

(W-EU1.3) Do you calculate water intensity for your electricity generation activities?

Yes

W-EU1.3a

(W-EU1.3a) Provide the following intensity information associated with your electricity generation activities.

Water	Numerator: water	Denominator	Comparison	Please explain
intensity	aspect		with previous
value			reporting year
(m3)
0.96	Other, please specify	MWh	Higher	Sempra's water intensity from power generation activities increased by 7% year-over-year.* Though the water withdrawal for generation
	(Water consumed for			activities increased by only 4%, we experienced an overall 2% decrease in net generation compared to 2019 due to maintenance activities at
	generation activities)			IEnova's TDM power plant. *Note 2019 value was updated to .90 to correct the unit of measure.

W1.4

(W1.4) Do you engage with your value chain on water-related issues?

Yes, our suppliers

Yes, our customers or other value chain partners

W1.4a

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