Building a Speak-up Safety Culture

At PG&E, nothing is more important than the safety of the public, our employees and our contractors. Our ability to reach our safety objectives relies on a safety culture where every member of our workforce is not only encouraged to speak up if they see a potential safety or compliance risk, but has a responsibility to do so.

Our most recent employee survey shows promising signs that we are building the culture we aspire to achieve. At the same time, we recognize that our work on safety is never done, and we are more committed than ever to achieving the culture required to be the safest gas and electric provider in the United States.

The vital importance of our safety commitment was underscored last year by the August verdict that found Pacific Gas and Electric Company guilty of 6 of the 12 charges brought by the federal government in a case stemming from the 2010 gas pipeline explosion in San Bruno: the convictions included one count of obstructing a federal agency proceeding and five counts of violating federal pipeline safety regulations.

Even though it involved events of the past, this was a painful verdict. Ultimately, we made the choice not to appeal the jury’s decision, concluding that was the right outcome for everyone.

Nothing can ever give back the San Bruno victims and their families what they lost. The best way we can honor them is to demonstrate, through our actions, an unwavering dedication to the safety of the public, our employees and contractors.

With that in mind, we will be focused on fulfilling the terms of the probation and working with a court-appointed outside monitor to become the safest, most reliable energy company in the country.

Tony Earley, Executive Chair of the Board, PG&E Corporation

Safety Culture Roadmap

Building on a comprehensive third-party evaluation of our leadership, processes, people and technology, PG&E developed a long-term safety culture roadmap to direct our work. We refine this roadmap every year to ensure our work drives the culture we need to improve public, employee and contractor safety. As we plan for the future, our focus remains centered on building our “speak up for safety” culture through benchmarking and continuous improvement.

Safety Governance and Leadership

The PG&E Corporation and Pacific Gas and Electric Company Boards of Directors are broadly responsible for oversight of safety at PG&E. The Nuclear, Operations and Safety (NOS) Committee of the PG&E Corporation Board is specifically responsible for overseeing safety policies and issues related to Pacific Gas and Electric Company’s operations and facilities, as well as goals, programs, policies and practices with respect to promoting a strong safety culture.

In addition, the NOS Committee reviews the impact of significant changes in laws and regulations affecting safety and operational performance, and also advises the Compensation Committee of the PG&E Corporation Board on appropriate safety goals for inclusion in PG&E’s executive compensation program and plans. Additionally, as part of its responsibility for reviewing proposed major capital projects, the Finance Committee of the PG&E Corporation Board reviews capital projects and programs with safety implications, such as projects and programs to enhance public or employee safety.

Pacific Gas and Electric Company’s Vice President of Safety and Health leads safety for our business, while our Safety and Health organization partners with PG&E’s lines of business to help guide safety process improvements; develop and deploy new initiatives, training, technology, incident investigation protocols, compliance programs and metrics; and conduct industry benchmarking to identify best safety practices.

The following management-level committees and teams are working to engrain safety into our business:

Safety and Risk Committee: guides our safety strategy and assures continuous improvement in safety performance. The Committee meets regularly to review performance and address gaps and barriers. In addition to the PG&E Corporation CEO and President, members include Pacific Gas and Electric Company’s President and Chief Operating Officer, additional senior PG&E officers and leaders from the International Brotherhood of Electrical Workers and the Engineers and Scientists of California labor unions.
Safety Steering Committee: ensures that strategies and programs are reviewed prior to discussion at the Safety and Risk Committee and also provides a forum for learning across lines of business and continuous improvement associated with the approved strategies.
Line of Business Safety Councils: responsible for executing plans to reduce and eliminate exposure to possible safety incidents. The Councils are composed of management, union and grassroots team members. These efforts are supported by grassroots safety teams comprised of frontline employees who share ideas and partner to come up with effective solutions to reinforce a safety-first culture.

Building a safety culture

In 2016, we saw continued progress on a number of measures in our all-employee survey, including:

An 85 percent favorable rating on a new safety index comprised of eight questions, which was the highest rating among all categories.
A 93 percent agreement rating with each of the following statements: “My work group follows safe work practices without taking short cuts,” “I feel free to stop my work if I believe conditions are unsafe,” and “I feel comfortable discussing safety issues with my supervisor.”

An 84 percent positive response to “I can safely share my thoughts, concerns, and opinions with my supervisor,” which was a 5 percentage point increase from our 2014 survey results.

While these results are encouraging, we know there is much more work to do. We recognize our obligation to safety, and we understand that maintaining our vigilance is essential to the safety of the public, our employees and our contractors. Our journey to drive a “speak up for safety” culture is at the heart of how we approach our work each day.

At PG&E, the primary responsibility for public, employee and contractor safety lies within each line of business. This approach is both strategic and practical, and comes from understanding that the hazards and risks within each line of business are different. We also believe that the people closest to the work know the most about the inherent risks associated with performing the work, and can best find the ways to mitigate those risks.

Key safety leadership development and employee engagement initiatives include:

Safety leadership development for upper management: Officers and directors attend a workshop that creates alignment around safety leadership principles and safety culture.
Safety leadership development for operational leaders: Superintendents through crew leaders attend a series of three workshops over nine weeks that teaches practical safety and safety leadership skills related to high-hazard field operations. Management employees also receive one-on-one in-field coaching to increase self-awareness and effectiveness of their behaviors.
Further integration within our hiring process: PG&E uses pre-hire tests for roles ranging from operating clerks to lineworkers and system operators to assess candidates’ predisposition to follow safe practices. We are also working to determine other jobs where this test may be used.
Safety kick-off meetings: At the beginning of the calendar year, dozens of teams across our service area hold meetings to share key safety themes. These meetings reinforce the importance of safety in our daily work.
Strengthening job requirements for field safety specialists: All Corporate Field Safety Specialists go through a rigorous safety professional development program based on best-in-class standards.

Corporate Responsibility and Sustainability Report 2017