Engaging Stakeholders

Photo: Linda Cicero

PG&E’s sustainability efforts have been, and will continue to be, informed by our diverse stakeholders. We use a variety of formal and informal methods and venues to engage with our stakeholders. In 2010, we added a new, formal feedback mechanism to our stakeholder feedback strategy, by expanding our engagement with Ceres, a leading nonprofit that works with companies to address sustainability challenges. We conducted a Chief Executive Officer-level feedback session, facilitated by Ceres, on PG&E’s sustainability program. This rich discussion included thought leaders from different stakeholder constituencies, such as business customers, investors, environmental and community groups, and renewable energy companies.

Several outcomes and work streams emerged from that meeting. Importantly, at the request of several stakeholders, we joined leading investors and corporations in signing on to a set of sustainability commitments developed by Ceres, including a commitment to report on our sustainability program to the full Board of Directors of PG&E Corporation, in addition to the Board’s Public Policy Committee. We also gained valuable insights from the formal stakeholder feedback we received on a draft outline of this report.

In addition to regular engagement with a vast and diverse array of stakeholder groups, PG&E is regulated by a range of federal and state government agencies. Pacific Gas and Electric Company is regulated primarily by the California Public Utilities Commission and the Federal Energy Regulatory Commission, while the Nuclear Regulatory Commission regulates the licensing, operation and decommissioning of our nuclear generation facilities. As a result, we are engaged in multi-stakeholder public processes convened by these and other regulatory agencies.

The chart below shows highlights of our stakeholder engagement with an array of other stakeholder groups in 2010, including customers, non-governmental organizations, employees, investors, suppliers and our labor unions.

Category	Selected Examples of Groups	Channels of Engagement	Examples from 2010
Customers and Communities
Business and residential customers	5.2 million electric accounts 4.3 million natural gas accounts	Use of customer data and insights to drive our decision-making and help simplify our customer service offerings and the way we engage with customers Regular customer surveys Business customer account representatives focused on customer energy solutions Gas service representatives Customer call centers, local offices and helplines Financial assistance programs for low-income customers Online tools to help customers see how and when they use energy Staff dedicated to engage in regular dialogue	We initiated a system-wide listening tour in which PG&E’s President and other senior officers spent time in the field hearing candid, and sometimes difficult, feedback directly from customers on a broad range of issues. We continue to actively incorporate what we learn to help improve the way we are doing business. We launched a stand-alone website, www.pgecurrents.com, to share our perspective directly with our customers and other stakeholders.
Non-governmental organizations	Environmental organizations Community organizations	Active participation of officers and other employees on non-profit boards Support for local programs through community investments Employee volunteer program Meetings, conferences and community events Participation in coalitions and networks Staff dedicated to engage in regular dialogue	The California Desert Renewable Energy Working Group is an informal and diverse group working to protect ecosystems, landscapes and species while supporting the timely development of solar energy resources in the California desert. In 2010, together with this group, we submitted recommendations to the U.S. Department of Interior for improving and streamlining the Bureau of Land Management’s processing of solar energy applications in a way that avoids or minimizes harm to California’s natural environment.
Employees
Current, Prospective and Retired Employees	Employee Resource Groups (ERGs) PowerPathway™ Program	Clear vision, values, and guiding behaviors for all employees Annual employee satisfaction survey Awards to recognize employee leadership on diversity, safety, volunteering and the environment Mentoring program Regular briefings, meetings and communication PG&E Learning Academy Active recruiting Monthly newsletter sent to all retirees	ERG employee leaders meet regularly with senior management, bringing important issues to the leaders of the company. Each ERG is sponsored by a company officer. The ERGs help employees develop their careers, gain leadership skills and get involved in the community.
Labor Unions	Approximately two-thirds of our employees are covered by collective bargaining agreements with three labor unions: IBEW, Local 1245 ESC/IFPTE, Local 20 SEIU, United Service Workers West	Joint learning sessions on key topics Co-hosted sessions on the importance of employee and public safety Labor and management joint engagement to simplify business processes	We worked with our unions in many important areas last year, such as enhancing technical training programs, fostering health and wellness, expanding our PowerPathway™ program and rolling out numerous initiatives to promote a strong culture of safety.
Business Community
Investors	As of December 31, 2010: Approximately 72 percent of PG&E Corporation’s shares were held by institutional investors The top 50 institutional investors owned approximately 57 percent of our stock	Quarterly earnings calls and press releases Annual investor conference One-on-one meetings and industry conferences Required disclosures Surveys from socially responsible investors	We engaged more than 85 of the top industry analysts and investors at our annual investor conference. We hosted approximately 20 meetings for investors and analysts at our corporate headquarters. We attended sell-side conferences or met with investors at their offices.
Suppliers	Diverse suppliers (women-, minority- and disabled-veteran-owned businesses) Small businesses Large businesses	Annual Supplier Conference, which includes supplier awards Supplier Diversity Program with specific spending targets Green Supply Chain Program Facilitating supplier-to-supplier mentoring relationships Engagement with ethnic chambers of commerce, veteran business organizations, and other groups to reach diverse suppliers	To exceed our aspirational goal for supplier diversity, we worked with our prime suppliers to identify new opportunities to engage diverse suppliers. This included asking prime contractors to set goals and report subcontracting monthly, detailing their progress toward these goals. We also launched Diverse Suppliers Go Green, a program focused on training diverse suppliers on ways to become more competitive by establishing their own sustainability programs; measuring, reducing and reporting their environmental footprint; and defining their green business opportunities.

Engaging Stakeholders

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