Corporate Responsibility and Sustainability Report 2017

Our Approach

PG&E employs a broad spectrum of workplace safety efforts with several key aspects:

• Setting health and safety targets to track and evaluate our performance.
• Implementing a Corrective Action Program (CAP) across our operational lines of business, allowing employees to identify and report potential safety hazards or equipment issues. Each item is tracked until the appropriate resolution is completed. The program includes a feedback loop so that employees who submit issues receive information on action taken as a result of their submission. Employees may also submit issues anonymously.
• Continuing to improve our Motor Vehicle Safety Program by adopting a phone-free driving standard, continuing to expand vehicle safety technology throughout the PG&E fleet, and customizing our training based on the type of vehicle being driven and the driving conditions typically encountered.
• Integrating health and wellness into our safety programs to allow for a more comprehensive approach to safety. Such programs include our Industrial Athlete Program and our investment in early intervention and reinforcement of the 24/7 Nurse Report Line, which provides immediate access to a trained medical professional if employees experience discomfort, pain or are injured on the job.

2016 Milestones

Employee Safety

Through our ongoing efforts, PG&E has made significant strides in employee safety with a number of highlights:

• Reinforced a “speak up for safety” culture. We continue to take concrete steps to improve our culture so that every employee is empowered to speak up about safety. PG&E developed a campaign called “Speak Up for Safety,” with posters, brochures, stickers and more. Safety is also emphasized in employee communications, from all-employee messages to safety tailboards that are discussed when field personnel begin their workdays.
• Enhanced focus on potentially serious incidents. PG&E has been working to identify the conditions that carry the greatest potential for serious injury on the job, and lines of business have begun leveraging this knowledge in field observations. PG&E is also incorporating prevention checklists into work processes to reduce potentially high-risk conditions. One module of our safety leadership training curriculum teaches leaders how to identify workplace hazards when they perform field observations. PG&E also has highly skilled investigators who examine incidents that result in serious injuries or fatalities.
• Rolled out the Corrective Action Program to additional lines of business. We implemented the program in our Gas and Electric Transmission and Distribution organizations, giving employees a way to report and track follow-up on potential safety concerns. This followed successful implementation of the program at our Diablo Canyon Power Plant and additional organizations, with use among employees continuing to grow. We rolled the program out to all organizations in 2017.
• Enhanced our Motor Vehicle Safety Program. We implemented a phone-free driving standard and standardized our training based on the type of vehicle being driven and the driving conditions typically encountered, reflecting current industry best practices. Our proposed frequency of training is now consistent with National Safety Council recommendations. We also continue to deploy in-cab monitoring equipment, which alerts drivers to at-risk behaviors and improves safety behind the wheel.
• Continued technical training for field employees. We delivered nearly 15,000 days of training on courses specifically focused on safety and compliance. This was in addition to a strong focus on safety leadership development and our knowledge and skills assessment program, which assessed more than 1,000 employees in 2016 on substation electrician grounding and switching, as well as underground grounding and switching for linemen.

Contractor Safety

We expect our contract workers to share the same commitment to safety excellence as our employees. To that end, PG&E established a Corporate Contractor Safety Program that requires contractors performing medium- and high-risk work to meet minimum prequalification requirements in order to perform work for or on behalf of PG&E. All primary contractors and subcontractors performing medium- and high-risk work have been assessed using a thorough pre-qualification safety review process.

We have also implemented oversight procedures for contractors performing medium- and high-risk work across PG&E, in addition to conducting oversight at job sites in the field and post-project evaluations as part of the Contractor Safety Program. PG&E also held multiple Contractor Safety Forums and Roundtable events in an effort to improve engagement with our contractors on safety.

Measuring Progress

PG&E uses three key metrics to track our performance on workplace safety: the Lost Workday Case Rate, Serious Preventable Motor Vehicle Incident Rate and Timely Reporting of Injuries (defined below). In 2016, we fell short of our Lost Workday Case Rate target, recording an 11 percent increase in lost workday cases. However, even as lost workday cases increased, we saw a 6 percent reduction in total lost workdays, demonstrating the effectiveness of our strategy to reduce the severity of injuries through a health- and wellness-focused approach.

We met our target for the Timely Reporting of Injuries, with performance improving by 10 percent over 2015.

The table below provides complete PG&E employee safety statistics for 2014 through 2016:

• 1. Total Lost Workdays is an internal PG&E metric that counts the number of workdays lost in the current year due to occupational injury or illness for all years of injury (current and all prior years). ^▲
• 2. Total Lost Workday Cases is the number of nonfatal occupational injury and illness cases that (1) satisfy OSHA requirements for recordability, (2) occur in the current year and (3) result in at least one day away from work. ^▲
• 3. Total Lost Workday Case Rate is the number of Lost Workday Cases incurred per 200,000 hours worked, or for approximately every 100 employees. ^▲
• 4. Total OSHA Recordables is the number of injuries and illnesses that meet OSHA requirements for recordability—those that (1) are work-related, (2) are new cases and (3) meet one or more OSHA general recording criteria. ^▲
• 5. The OSHA Recordable Rate measures how frequently occupational injuries and illnesses occur for every 200,000 hours worked, or for approximately every 100 employees. ^▲
• 6. Timely Reporting of Injuries is the percentage of work-related injuries reported to the 24/7 Nurse Report Line within one day of the incident. ^▲

The following table provides motor vehicle safety statistics for 2014 through 2016:

• 1. Number of Serious Preventable Motor Vehicle Incidents occurring that the driver could have reasonably avoided. ^▲
• 2. Number of Serious Preventable Motor Vehicle Incidents occurring that the driver could have reasonably avoided, per 1 million miles driven. ^▲

We also tracked the effectiveness of our vehicle safety technology. Of the three behaviors tracked (hard breaking, hard acceleration and speeding deemed to be excessive), we found a nearly 40 percent overall reduction in at-risk driving behaviors.

PG&E also introduced and actively tracks a number of leading—or predictive—indicators to help us more deeply embed safety in our operations and encourage employees to both speak up and seek treatment for injuries of any type. These include:

• Corrective Action Program participation rate,
• Percent of Corrective Action Program issues closed on time, and
• Percent of anonymous Corrective Action Program submissions, which continues to decrease as our speak-up safety culture empowers employees to report issues.

Additional metrics include:

• Number of near-hit reports submitted,
• Percent of corrective actions related to serious incidents and fatalities completed on time, and
• The effectiveness of corrective actions taken following incidents that result in serious injuries or fatalities.

Looking Ahead

We will continue to plan and perform our work with an unwavering focus on workplace safety through our words, actions and behaviors. In particular, our safety objectives encompass a number of key areas in 2017:

• Decrease exposure to potentially serious safety incidents,
• Leverage our in-vehicle data systems to aid our workforce in driving more safely,
• Provide a number of avenues to enable our workforce to be healthier and recover from injuries,
• Continue to make progress with our safety culture through expanded safety leadership development initiatives, our Speak Up for Safety campaign and a continued safety partnership with our unions and contractors, and
• Improve contractor safety processes and enhance program requirements.

Additionally, we will continue developing an enterprise-wide Safety Management System—a standardized framework for how to manage public, employee and contractor safety to help PG&E better prioritize, integrate and manage its safety efforts.