Measuring Sustainability

In 2009, PG&E took several important steps toward more fully integrating sustainability into our business, both from a governance and strategic perspective. We created a new position, Chief Sustainability Officer, which reports to the Chairman and CEO of PG&E Corporation. The Chief Sustainability Officer is responsible for developing and coordinating the company’s sustainability strategy and initiatives and overseeing PG&E’s sustainability reporting and measurement programs.

For the first time, we also set a specific target—December 31, 2014—for realizing our vision of becoming the leading utility in the United States. Our vision is premised on achieving four goals, namely delighted customers, energized employees, rewarded shareholders and environmental leadership. Taken together, these four goals comprise PG&E’s integrated approach to sustainability, and the company has established specific metrics to determine how we are performing across these various dimensions.

The chart below includes the five-year targets associated with our goals, as well as selected initiatives.

Going forward, we will be reporting on our progress toward meeting these goals, and we will continuously assess the programs and initiatives that underpin them and make adjustments, as needed, along our sustainability journey.

Measuring Sustainability 2010 – 2014

Goals Selected Initiatives Five Year Targets
Energized Employees
  1. Enhance opportunities for professional growth and development
  2. Foster a safe and healthy work environment
  3. Build a culture of high performance and accountability
  4. Integrate diversity and inclusion into all we do
First quartile for employee engagement

Top 25% in employee engagement compared to “most admired companies”
Delighted Customers
  1. Improve electric reliability and build a smarter energy grid
  2. Offer high-quality service at a reasonable cost
  3. Expand customer billing and payment options
  4. Improve customer and field service performance
  5. Continue to better understand and respond to the unique needs of different customers
First decile for customer satisfaction

Top 10% performance in all four J.D. Power and Associates customer satisfaction studies: residential electric, residential gas, business electric, business gas
Environmental Leadership
  1. Strengthen compliance systems
  2. Reduce our operational footprint
  3. Foster clean and renewable energy solutions, while managing costs
  4. Advocate for strong federal climate change legislation
First decile for environmental leadership

Top 10% score on annual RiskMetrics/ Innovest ranking, which compares PG&E’s environmental performance to other utilities
Rewarded Shareholders
  1. Maintain and enhance our utility infrastructure and service reliability through capital investment
  2. Manage costs and productivity consistent with regulatory authorizations
  3. Earn shareholder incentives for excellent performance, where applicable
First quartile for total shareholder return
(share price appreciation + dividends paid)

Top 25% total shareholder return compared to other peer utilities