Corporate Responsibility and Sustainability Report 2022

Workforce Safety Strategy

PG&E’s workforce safety strategy is rooted in standardized management systems—both our existing ISO 55001 certified asset management structure and the addition of ISO 45001 health and safety requirements—to drive continuous improvement in our public and workforce safety performance over time. Focus areas include:

We also continue to take a multifaceted approach to protect the safety of the public through our operations. These public safety efforts—which involve numerous departments and coworkers—include vegetation management, electric grid sectioning, process safety for gas and electric operations, and asset management.

Safety Governance and Leadership

We have combined our Safety and Risk organizations under the leadership of our Executive Vice President, Chief Risk Officer and interim Chief Safety Officer (CSRO), with the aim to further integrate our risk and safety management responsibilities. We are committed to significantly improving our safety performance by strengthening our risk-based focus, so we understand our risks, prioritize our work, and use controls to reduce them, and continuously measure and improve risk reduction.

The CSRO reports to the PG&E Corporation CEO and is responsible for setting our safety and risk strategy, establishing governing standards for safety and risk management, and supporting our operational teams as they execute their work.

The PG&E Corporation and Pacific Gas and Electric Company Boards of Directors are responsible for oversight of safety. The Boards oversee the business and affairs of PG&E by providing oversight on corporate policies and goals and holding management accountable for results. This requires directors who are independent, meet criteria defined by the Board and our regulators, and participate actively in the Board and its committees.

The Safety and Nuclear Oversight (SNO) Committees of the PG&E Corporation and Pacific Gas and Electric Company Boards oversee matters relating to safety, risk, wildfire safety, and operational performance. The Committees receive regular safety reports from management that include performance metrics, reporting on serious incidents, and actions to improve employee, contractor, customer, and public safety. Areas of focus for the SNO Committees include:

• Safety programs, promotion of safety culture, and long-term and short-term safety plans
• Wildfire risk reduction and performance against the wildfire safety commitments made by the Utility
• Operational performance and risks related to the Utility’s nuclear, generation, and gas and electric transmission and distribution facilities
• Cybersecurity

In 2021, the SNO Committees continued to receive regular updates on the execution of the Wildfire Mitigation Plan (WMP), engage with senior leadership, and report out to the Boards on a regular basis on progress. In addition, the Chair of the SNO Committees personally interacts with the CPUC on an ad hoc basis to provide insight on the WMP.

The Boards hold regularly scheduled meetings, and the SNO Committees must meet at least six times per year. Members of PG&E management regularly attend Board and Committee meetings. The SNO Committees’ charters specifically require regular review with the CSRO of PG&E’s long-term safety goals and objectives, as well as current staffing and budgeting needs.

Within management, responsibility for safety is shared by our functional groups. This approach is strategic, practical, and founded upon the best practice of the industry, recognizing that the hazards within each functional group may be different. We believe that the people closest to the work know the most about the inherent risk associated with performing it. Encouraging our coworkers to speak up helps us to better understand and address those risks.

Our Lean operating system includes daily, weekly, and monthly operating reviews at every level of the organization, cascading up to senior leadership, which improves our ability to identify and resolve safety concerns.

PG&E has also implemented the Regional Service Model to better address local issues and incorporate the needs and concerns of our customers into operating decisions. This includes a regional field safety organization led by five regional Safety Directors, who advise and support our functional groups as they implement health and safety programs with a focus on:

• Improving our safety culture
• Identifying hazards to reduce risk exposure
• Observing and inspecting safety practices
• Investigating safety incidents
• Conducting safety tailboards and training
• Preparing for and responding to emergencies

Comprised of management, union, and grassroots team members, our Safety Councils are responsible for executing plans across the business to reduce and eliminate exposure to safety hazards. Grassroots safety teams consisting of frontline coworkers also share ideas and partner to develop effective solutions to reinforce a strong and proactive safety culture.

Contractor Safety

A key area of our workforce safety strategy involves strengthening contractor safety. We value our contractors and are working to operationalize a shared commitment to public and workforce safety. PG&E contractors and subcontractors include roughly 22,000 individuals from approximately 1,600 contractor companies, supporting PG&E’s diverse work activities.

Our Contractor Safety Program requires contractors performing medium- and high-risk work to meet prequalification requirements to perform work for or on behalf of PG&E. Our Contractor Safety Standard and associated contractor safety oversight procedures set requirements for managing contract work, including procedural steps for each functional group. These procedures include providing post-job safety performance evaluations of contractor work and sharing lessons learned resulting from safety incidents.

Contractors who perform medium- and high-risk work must notify PG&E of all SIF events—both potential and actual. Contractors jointly investigate SIF-potential and SIF-actual events with PG&E to increase our learning from all types of serious incidents.

2021 Milestones

Employee Safety

Improving Safety Culture:

• We continued to prioritize having our leaders spend time with our front-line crews in the field. Across PG&E, the time supervisors spent in the field with their crews during 2021 averaged 61%, which is an increase from 52% at end-of-year 2020. We implemented a leadership and engagement standard to set expectations for leadership. We also continued our Safety Connections program, which encourages these safety conversations.
• We developed an enterprise safety communication network, including our grassroots team members, and held monthly meetings with a focus on improving awareness about safety incidents and lessons learned, and improving the effectiveness of safety communications.
• We introduced a “Start with Six” program that identifies the six essential elements to delivering an effective pre-job tailboard. Topics include physical and mental ability to work, having the required tools, and on-site COVID protocols.

Reducing Serious Injuries:

• We updated or developed technical standards for various priorities, including ergonomics, excavations, job hazard analysis, and motor vehicle safety.
• We continued to improve our capabilities with investigating incidents, completing more than 98% of our SIF investigations in 30 days or less.
• We completed more than 150,000 field safety observations, including about 95,000 with contractor crews and about 60,000 with employee crews.

Improving Motor Vehicle Safety:

• We launched a new mobile app to enable coworkers to document 360-degree safety walkarounds of their vehicles; coworkers documented more than 16,000 walkarounds.
• We launched a scorecard to measure unsafe driving events such as hard acceleration and hard braking and provide an individual driver score, which includes parameters to trigger coworker corrective actions.
• We completed two technology pilots—one blocking mobile devices while driving and another introducing an in-cab camera system to reduce distracted driving. Both are being further implemented in 2022.

Strengthening Ergonomics and Preventing Injuries:

• We’ve conducted about 19,000 virtual home office ergonomic evaluations since March 2020. We also launched a new machine learning predictive model that identifies high-risk coworkers, so we can prevent or reduce serious ergonomic symptoms and injuries.
• We enhanced our “industrial athlete” program by supporting injury management plans with tailored stretch and flex programs, workshops, and coaching sessions—completing 18,000 trainings.
• We used software to analyze industrial ergonomic high-risk tasks and began developing solutions to reduce risk—identifying solutions for more than half of the 32 tasks we analyzed in 2021.
• We focused on how to lift safely, and more than 1,100 supervisors completed tailboards on this topic with their teams, reaching about 11,000 coworkers.

Contractor Safety

PG&E’s field safety observations program includes observing the work of our contractors, which includes PG&E safety professionals conducting unannounced job site safety observations. In 2021, PG&E conducted about 95,000 observations of contractor crews.

Other highlights of our contractor safety work included:

• Conducted workshops to identify potential causes of the most common fatal incidents in the vegetation management industry and developed an action plan to address the findings.
• Enhanced our prequalification evaluation criteria to ensure a review is conducted for contractors that have experienced a fatality within the last three years.
• Implemented a more comprehensive safety observation program required for contractors who perform medium- and high-risk work.
• Implemented a process to ensure discontinued contractors, either at an individual or company level, do not return to PG&E through an alternate contractor.
• Completed a review of approximately 2,000 contract vendors to confirm compliance with motor vehicle carrier regulations.

Measuring Progress

Tragically in 2021, three team members from our contractor workforce lost their lives while working for PG&E and another three sustained serious injuries. No one should lose their life or sustain a serious injury while at work.

We saw promising signs of progress by ending 2021 with a 25% reduction in our Days Away, Restricted, and Transferred (DART) rate and an 11% drop in the Occupational Safety and Health Administration (OSHA) recordable rate compared to 2020. We also saw improvement in our contractor DART and OSHA recordable rates.

The data below provides PG&E employee safety statistics for 2019 through 2021:

• OSHA Recordable Rate ^{Footnote 1}
• Days Away, Restricted, and Transferred (DART) Rate ^{Footnote 2}

• 1. The OSHA Recordable Rate measures how frequently OSHA recordable occupational injuries and illnesses occur for every 200,000 hours worked, or for approximately every 100 employees. ¹
• 2. The DART Rate measures how frequently DART cases (injuries that results in days away, restricted or transferred duty) occur for every 200,000 hours worked, or for approximately every 100 employees. ²
• 3. The SIF rate measures how frequently SIF events occur for every 200,000 hours worked, or for approximately every 100 employees. A SIF event includes fatalities, life threatening injuries, and life altering injuries.³
• 4. The SIF actual count includes fatalities, life threatening injuries, and life altering injuries.⁴
• 5. Timely Reporting of Injuries is the percentage of work-related injuries reported to our 24/7 Nurse Care Line within one day of the incident.⁵

Although the total DART rate for contractors decreased by 26% over the prior year, there were a significant number of SIF incidents related to vegetation management and electric construction work. To address this, we analyzed the key contributors and are creating management plans for high-risk work. The data below provides PG&E contractor safety statistics for 2019 through 2021:

• OSHA Recordable Rate ^{Footnote 1}
• Days Away, Restricted, and Transferred (DART) Rate ^{Footnote 2}

• 1. The OSHA Recordable Rate measures how frequently OSHA recordable occupational injuries and illnesses occur for every 200,000 hours worked, or for approximately every 100 contractor employees.
• 2. The DART Rate measures how frequently DART cases (injuries that results in days away, restricted or transferred duty) occur for every 200,000 hours worked, or for approximately every 100 contractor employees.²
• 3. The SIF rate measures how frequently SIF events occur for every 200,000 hours worked, or for approximately every 100 contractor employees. A SIF event includes fatalities, life threatening injuries, and life altering injuries.³
• 4. The SIF actual count includes fatalities, life-threatening injuries, and life altering injuries.⁴

We saw an increase in employee motor vehicle safety statistics, which we are addressing by deploying technology to help reduce distracted driving, including in-cab cameras and cell phone blocking. The following table provides employee motor vehicle safety statistics for 2019 through 2021:

• 1. The Preventable Motor Vehicle Incidents Rate measures how frequently drivers have an incident that could have been reasonably avoided per 1 million miles driven.¹
• 2. The Serious Preventable Motor Vehicle Incidents Rate measures preventable incidents that resulted in any party needing treatment away from the scene, any vehicle being towed, or $5,000 in damage to a PG&E vehicle. The rate is measured per 1 million miles driven.²

PG&E also actively tracks several leading indicators that can inform adjustments that need to be made before a potential incident occurs. These measures will help us more deeply embed safety in our operations and to encourage coworkers to speak up. They include:

• Closure of SIF investigations within 30 days
• Overdue SIF-related corrective actions
• Timely reporting of injuries through our Nurse Care Line
• Safe Driving Rate measuring hard braking and hard acceleration behavior in PG&E motor vehicles