About the Report

PG&E Corporation and its operating subsidiary, Pacific Gas and Electric Company, (together referred to in this report as PG&E unless noted otherwise) publish this annual report to share our vision and goals for the long term sustainability of PG&E as a provider of safe, reliable and affordable electricity and natural gas to our customers; as a responsible steward for the environment; as a major employer that promotes diversity and encourages employees to always “do the right thing;” as an important partner in the economic vitality of California; as a supporter of the many local communities we serve; and as a corporation that maintains high corporate governance standards and practices.

This report explains the progress we are making, and the challenges that remain, as we focus on getting back to basics in order to elevate our performance and fulfill our commitments to customers and other stakeholders.

Defining Key Issues

In developing and writing this report, PG&E engaged with the non-profit organization, Ceres, and an independent group of stakeholders representing a range of interests that have expertise in environmental, social, labor, governance and other issues. Included in this group were leaders from different stakeholder constituencies, such as customers, suppliers, investors, environmental and community groups, and workforce development experts.

In reviewing plans for this report, this group provided feedback on our key sustainability issues, as well as our performance addressing these issues; they also provided input on how we should report on these issues.

Through this review process, the group provided extensive feedback to PG&E, including encouraging discussion of the major challenges of the past year and the steps we are taking to strengthen our business operations and restore the trust and confidence of our customers and other stakeholders. The extensive feedback helped identify our key issues and informed the preparation of the final version of this report.

In addition, PG&E engaged a wide network of employees at different levels to identify and provide substantive input and feedback on the key issues. Our thinking was informed by numerous other sources, including the key accomplishments and challenges addressed at an annual meeting of PG&E’s leadership team, issues identified in the company’s Annual Report to Shareholders and dialogue within the Public Policy Committee of the PG&E Corporation Board of Directors.

How to Provide Feedback and Learn More

Stakeholders can contact us to solicit additional information and offer comments and suggestions on this and future reports.

Stakeholders can also visit www.pge.com for tips to improve the energy efficiency of their homes and businesses and reduce their carbon footprint.

Cautionary Language Regarding Forward-Looking Statements

This Corporate Responsibility and Sustainability Report and the Messages from the Chairman and Chief Sustainability Officer contain forward-looking statements that are based on current expectations and various assumptions that management believes are reasonable.

These statements and assumptions are necessarily subject to various risks and uncertainties, the realization or resolution of which may be outside of management’s control. Actual results could differ materially from those expressed or implied in the forward-looking statements. For a discussion of some of the factors that could cause actual results to differ materially please see our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2011 and the information incorporated in such report (the “2011 Annual Report”).