At PG&E, we are mindful that we not only provide a vital service to communities throughout northern and central California, but that we are also a part of them. We are committed to conducting our business in a way that provides for the safety of our employees and our communities, protects our environment, allows local economies to grow and flourish, respects the individuals who both deliver and consume our products and use our services and engenders the trust of everyone with whom we interact and do business. Simply put, we are working to create a sustainable business that supports our vision and the type of company we strive to be.

To ensure that we are meeting these objectives, we continually assess our performance and progress across a variety of indicators. This 2007 Corporate Responsibility Report provides information on performance metrics and activities occurring in calendar-year 2007, except when otherwise noted. It is a way of sharing with our stakeholders the progress we made and the steps we took in 2007 to serve our customers better, to make PG&E a great place to work, to give back to our communities and to protect the environment.

 

Stakeholder Engagement

In preparing this report, PG&E sought the review and advice of outside stakeholders through Ceres, a network of investors, environmental groups and other public interest groups that work with companies and investors to address sustainability challenges. The Ceres stakeholder team is an independent group drawn primarily from the Ceres coalition and represents a range of constituencies that have expertise in environmental, social, labor and governance issues. In reviewing this report, the team considered whether the company adequately reported on its sustainability performance and key impacts, including goals, targets, systems, data and initiatives. The Ceres stakeholder team provided extensive feedback to PG&E, encouraging more discussion of our challenges, as well as specific issues such as the reliability of our infrastructure and our efforts to minimize impacts on biodiversity. This important feedback informed the preparation of the final version of this report.

Defining Key Issues

PG&E took a multifaceted approach to identifying the key issues for this report. We drew upon the feedback from the stakeholder review process facilitated by Ceres. We also engaged a wide network of employees at many different levels to identify and provide substantive input and feedback on the issues. Our thinking was also informed by the key accomplishments and challenges addressed at an annual meeting of PG&E's leadership team, as well as issues identified in PG&E's 2007 Annual Report to Shareholders and in discussions within the Public Policy Committee of the PG&E Corporation Board of Directors.

How to Provide Feedback and Learn More

The complete report, as well as a Summary Report, can be viewed and downloaded at www.pgecorp.com and www.pge.com/environment, where stakeholders can contact us to solicit additional information and also offer comments and suggestions on this and future reports. Stakeholders can also access information at www.pge.com on tips to improve the energy efficiency of their homes and businesses and reduce their carbon footprint, including participating in our ClimateSmart™ program.

The complete report was printed and distributed to all PG&E employees, as well as key stakeholders such as investors, public officials, non-profit and corporate leaders, and customers. A summary version was also printed and distributed as a complementary resource.