Sempra Energy : SoCalGas ASPIRE

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ASPIRE 2045

S A F E

Sustainability and Climate Commitment to Net Zero

Letter From Scott Drury

At SoCalGas we live by three values: do the right thing, champion people, and shape the future. These values permeate our company. They guide how we think and drive our actions. As one of America's largest energy providers, our values are the lens through which we see every opportunity and challenge. From energizing the lives of 22 million Californians, to contributing to the competitiveness of the world's fifth largest economy, our values are the foundation of all we do.

Our mission is to build the cleanest, safest, most innovative energy company in America. With our values providing a strong foundation, our mission statement presents an actionable framework of purpose and intent. At SoCalGas, we're dedicated to leading the transition to a decarbonized energy system. Through collaboration and partnership, California can develop clean energy solutions at scale and serve as a global beacon for energy innovation.

Driven by our values and mission, SoCalGas is excited to embark on ASPIRE 2045, a sustainability strategy that includes a bold commitment to achieve net zero greenhouse gas emissions in our operations and delivery of energy by 2045.

ASPIRE 2045 is a natural extension to our decades-long industry leadership. We were the first gas utility in America to install smart meters and pioneered renewable natural gas. We are leading in hydrogen innovations and outperforming mandated emissions reduction targets.

While impossible to predict what the energy ecosystem will look like more than two decades from now, we know it must be clean, safe, reliable, and resilient. Californians will need an increasingly integrated and decarbonized portfolio of energy sources and tools that are affordable, scalable, and can meet critical peak periods of energy demand. Our success, economic competitiveness, and quality of life depend on it.

Scott Drury

C H I E F E X E C U T I V E O F F I C E R

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D E C A R B O N I Z A T I O N

Reducing carbon intensity across all economic sectors is foundational to achieving net zero. It requires energy efficiency, renewable electricity, renewable gases, long duration storage, carbon management, and other technologies to be viable at scale.

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D I V E R S I F I C A T I O N

Developing a diversified portfolio of clean energy sources, distributed networks, tools, and applications is the only way to achieve society's clean energy goals. Diversification also serves as a necessary risk management tool, delivering resiliency to the system and protecting against the uncertainties of the future.

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D I G I T A L I Z A T I O N

Deploying advanced technologies and analytics to improve planning, safety, resiliency, and the integration of real-time information to benefit participants across the

energy value chain.

S C O T T L E T T E R C O N T I N U E D . . .

Innovation and the rapid development of new technologies will be vital to our success. Three SoCalGas capabilities are integral to achieving California's energy transition and net zero goals.

1. Decarbonization: Reducing carbon intensity across all economic sectors is foundational to achieving net zero. It requires energy efficiency, renewable electricity, renewable gases, long duration storage, carbon management, and other technologies to be viable at scale.
2. Diversification: Developing a diversified portfolio of clean energy sources, distributed networks, tools, and applications is the only way to achieve society's clean energy goals. Diversification also serves as a necessary risk management tool, delivering resiliency to the system and protecting against the uncertainties of the future.
3. Digitalization: Deploying advanced technologies and analytics to improve planning, safety, resiliency, and the integration of real-time information to benefit participants across the energy value chain.

We believe we can shape the future. SoCalGas' role in the world is greater than the molecules we deliver. A successful energy transition requires leadership, innovation, effective policy, and broad collaboration.

We are excited to share our net zero climate commitment, which is just one element of our environmental, social, and governance initiatives. Throughout 2021, we will share additional plans and commitments, including: advancing our industry-leading diversity, equity, and inclusion programs for employees; increasing economic opportunities for diverse suppliers; and engaging in the communities we are privileged to serve.

On behalf of the amazing women and men of SoCalGas, we look forward - with great enthusiasm - to working with you to achieve ASPIRE 2045.

Scott Drury CEO

T H E E V O L U T I O N O F E N E R G Y

What's Inside

SUSTAINABILITY AT SOCALGAS

CLIMATE COMMITMENT TO NET ZERO

LEADERSHIP IN THE ENERGY TRANSITION

OUR PROGRESS TO NET ZERO

WHAT'S TO COME

SUSTAINABILITY

A T S O C A L G A S

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