SJW : 2022 Corporate Sustainability Report

SUSTAINABILITY REPORT

2022

TABLE OF CONTENTS

3 Introduction
CEO Letter	4
SJW Group - 2022 at a Glance	5
Mission, Vision, and Values	7

8	Our Team
	Our Team	9
	Health and Safety	11
12	Environmental
	Stewardship
	Greenhouse Gas Emissions	13
	Conservation - Using Water Wisely	14
	Water Quality	16

17 Social Responsibility

Cybersecurity	18
Commitment to Infrastructure
Investment	18
Stakeholder Engagement	19
Customer Engagement	19
Community Outreach and
Charitable Giving	20
Supplier Diversity	21

22 Addendum

2

I N T R O D U C T I O N

3

Letter from Eric Thornburg for SJW Group

The SJW Group team continues to be a force for good in the communities we serve in California, Connecticut, Maine, and Texas!

We are passionate about delivering high- quality water and service while being a good steward of the environment and contributing to the quality of life in our communities.

This shines through in the day-to-day service of our skilled and dedicated team members.

We also remain committed as an organization to being a leader with our environmental, social, and governance initiatives.

Among the many ways we delivered on these commitments in 2022:

• Greenhouse Gas (GHG) Inventory - A group- wide inventory was updated to continue measurement of GHG reduction efforts.

• • Reducing Carbon Emissions - With the GHG inventory, SJW Group has committed to reducing Scope 1 and 2 emissions by 50% from 2019 levels by 2030 (science-based target aligned with the Paris Agreement).
• Health and Safety - Protecting the health and safety of our employees is a top priority. We aim to make the workday the safest eight hours of the day for each employee. In 2022, SJW Group improved its incident rates compared to 2021.
• Environmental Policy - SJW Group continues to be committed to all the applicable laws and regulations that govern our operations so we can be good stewards of our watershed lands and resources.
• Diversity, Equity, and Inclusion (DEI) - Our DEI initiatives evolved to include bias training for all employees and the continued work of our national employee-led DEI Council. The Council added a DEI holiday in 2022 - one additional day off for all of our employees to choose any holiday they wish to celebrate or use the day in-service.

• Giving Back - We donated $400,000 in 2022 to charitable and nonprofit organizations such as food banks, community gardens, local schools, toy drives, and much more.
• Supplier Diversity - Our results improved substantially as San Jose Water led the way by increasing its addressable diverse spend to 35.7% in 2022. Across the country, our total diverse spend increased to $62 million.
• Environmental Stewardship - Our efforts to protect natural resources for generations to come are strengthened by our partnerships in open space protection and ongoing open space and water company land initiatives in California, Connecticut, Maine, and Texas. Our employees engage in environmental stewardship throughout the year, including river and watershed cleanups, protecting animals on our land, and partnerships with land trusts to ensure we protect our precious resources.

At SJW Group, we have over 750 trusted, passionate, and socially responsible professionals delivering life-sustaining,high-quality water and exceptional service to families and communities while protecting the environment and providing a fair return to shareholders.

These professionals live and breathe our mission and vision to enhance our efforts to track, monitor, report, and continuously improve our performance in the areas of ESG. Taking care of our precious land and water resources and our employees, customers, and communities allows us to be a leading force as a responsible water utility. We will continue to leverage our collective strength with the expertise of our local leadership to honor our commitment and improve the lives of our employees, customers, and communities.

With the progress we made collectively in 2022, I look forward to a sustainable future with enthusiasm and a commitment to serving customers, communities, employees, investors, and the environment at world-class levels.

In service,

Eric W. Thornburg

President & CEO

SJW Group

I N T R O D U C T I O N

4

SJW Group

Large National Pure-Play Water/Wastewater Provider With Deep Local Expertise

Committed to Sustainably Serving Our Communities

2022 AT A GLANCE

O U R C O M P A N YO U R E S G C O M M I T M E N T

160

years of history

$219M

infrastructure

investment

1.5M	754	Operations in
people served	talented employees	California, Connecticut,
	across 4 states	Maine, and Texas

O U R C A P I T A L A N D C U S T O M E R S

63	$60M	Texas Water Company
customer growth
miles of pipeline	invested in	4xover 16years
replaced/installed	Saco River Drinking Water
	Resource Center

50%	$62M	44%	$400,000
GHG reduction	spent with	of board are	charitable
by 2030	diverse suppliers	women	donations

2 0 2 2 G R E E N H O U S E G A S E M I S S I O N S

100%	Beginning Fleet	Continued investment	Progress to
green energy	Electrification Plan	in solar arrays	GHG reduction goal
purchases at
Texas Water Company

I N T R O D U C T I O N

5

ASSETS

SJW Group

750+

Corporate

HQ

5,400+

	39
	400+
New England HQ	5
	300+
	160+
	~1.5M

Miles of pipe

Water treatment plants

Wells

Wastewater facilities

Water storage facilities

Pumping stations

People served across CA, CT, ME, and TX

I N T R O D U C T I O N	6

Mission, Vision, and Values

OUR MISSION

Trusted, passionate, and socially responsible professionals delivering life-sustaining,high-quality water and exceptional service while protecting the environment, enhancing our communities, and providing a fair return to shareholders.

OUR VISION

Our vision is what we aspire to…

"To serve our customers and communities, employees, shareholders, and the environment at world-class levels."

OUR VALUES

•

•

•

•

Teamwork and Respect

Straight Talk and Transparency

Integrity and Trust

Service and Compassion

I N T R O D U C T I O N	7

OUR TEAM

8

Our Team

SJW Group is a team of over 750 employees who work and live in their communities and are passionate about delivering a reliable supply of high-quality drinking water and exceptional service.

SJW Group is a mission-driven company that strives to be an employer of choice in the communities we serve. We do this by offering a positive and engaging workplace and compensating employees at fair wages as benchmarked by the market and other companies as reasonable and appropriate. Training and professional development programs are available for all employees. All of SJW Group's subsidiary companies comply with applicable state and federal employment regulations, including minimum wage, overtime, maximum hours, and other

An anonymous employee satisfaction and engagement survey is distributed semiannually through an independent survey administrator to complement additional other anonymous and direct feedback from employees to company leadership.

2020

Employee Satisfaction	81.5%
SJW Group a Good Place to Work	85.3%
2021
Employee Satisfaction	80%
SJW Group a Good Place to Work	80.1%
2022
Employee Satisfaction	83.3%
SJW Group a Good Place to Work	83.9%

Labor Relations

San Jose Water includes a unionized workforce. Both the Utility Workers Union of America, AFL-CIO, Local 259 and the Operating Engineers Local Union No. 3 of the International Union of Operating Engineers entered into three-year agreements with San Jose Water through a vote of their memberships in 2022. The new contracts are in effect from January 1, 2023, to December 31, 2025. SJW Group's Freedom of Association Policy can be found here: Freedom of Association Policy

	Gender Distribution in Management
	Roles		26%
		26%	Identifying as female	74%
		74%	Identifying as male

applicable laws, rules, and regulations.

Workforce Demographics

	Total
754	Workforce

362 228 77 87

CALIFORNIA

CONNECTICUT

MAINE

TEXAS

		Age	Gender	Ethnicity			Race
12%	12%		20%		20%
						3.5%
				39%
26%	24%					1%
				61%	80%		62%	9%
			26%					1%
									3.5%
		20-29	12%	39% identifying as female	Hispanic or Latino	20%		White		62%
		30-39	26%	61% identifying as male	Not Hispanic or Latino	80%		Two or More Races		3.5%
		40-49	26%					Native Hawaiian & Other
		50-59	24%					Pacific Islander		1%
		60+	12%					Asian		9%
								American Indian or Alaska Native	1%
								Black or African American		3.5%
								Hispanic		20%

O U R T E A M 9

Commitment to Ethics in the Workplace

At SJW Group, we hold ourselves to a high standard of ethical conduct and are committed to living our corporate values each day. One way we make sure that our staff is aware of these standards is by requiring annual review and acknowledgment of the company's Code of Conduct, Insider Trading Policy, and Human Rights Policy by all employees and the Board of Directors. In this way, anti- corruption and human rights training is provided to all employees, up through and including the management board. Additionally, SJW Group management team members complete quarterly Sarbanes- Oxley Act reviews that promote our ongoing commitment to ethical conduct. Executive oversight for our anti-corruption program extends to the Board of Directors.

SJW Group encourages employees to report violations of any policy anonymously and without fear of retaliation or reprisal. A confidential whistleblower hotline and website are available for

employees to report any violations of laws, SJW Group's Code of Conduct, Human Rights Policy, or any commitments made to the Connecticut Public Utilities Regulatory or Maine Public Utilities Commission promoting local control of Connecticut Water Company and the Maine Water Company. The hotline is also available as a grievance mechanism for any employees or stakeholders. These reports will be reviewed by leadership up to and including the board's Audit Committee.

• Number of inquiries to the hotline in 2020:	0
• Number of inquiries to the hotline in 2021:	0
• Number of inquiries to the hotline in 2022:	0
Click to view SJW Group policies:
Code of Conduct
Corporate Charter Policies
Human Rights Policy
Whistleblower Policy

Diversity, Equity, and Inclusion

SJW Group's ongoing work toward a more inclusive, diverse workforce where each employee can feel comfortable as their true self was at the center of a number of initiatives in 2022.

The nationwide Diversity, Equity and Inclusion Council, an employee-led advisory council, continued to meet monthly to review, expand, and improve company work toward a more diverse, equitable, and inclusive workforce. Council meetings are facilitated by CEO Eric Thornburg with executive sponsorship by Willie Brown, Vice President, General Counsel and Corporate Secretary.

In partnership with Bias Sync, all employees were offered monthly micro-learning training videos on topics such as tips for using inclusive language, using empathy to be an ally, and dealing with difficult conversations.

The company also announced in 2022 the creation of a new employee floating holiday - a day that employees can use to celebrate a holiday, occasion, or commemorative celebration important to them, or use to engage in community service.

At the board level, SJW Group values diverse perspectives and will continue to meet the requirements of California AB 979, which designates minimum appropriate levels of representation by board members from underrepresented communities, defined as individuals who self-identify as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identify as gay, lesbian, bisexual, or transgender.

Each SJW Group subsidiary is committed to being an Equal Opportunity Employer and by policy prohibits unlawful discrimination, including that which is based on race, color, religious creed, religious belief or clothing or grooming practices, sex, gender, gender identity, gender expression, marital/domestic partner status, age, national origin, citizenship, ancestry, physical or mental disability, medical condition, pregnancy, genetic information or characteristics (or those of a family member), sexual orientation, military and veteran status, status as a victim of domestic violence, or any other consideration made unlawful by federal, state, or local laws. These policies also prohibit unlawful discrimination based on the perception that anyone has any of those characteristics or is associated with a person who has or is perceived as having any of those characteristics.

O U R T E A M 10