Corporate Responsibility and Sustainability Report 2022

Our Approach

Embedding Safety in Our Operations

Through our Workforce Safety Strategy, many factors come into play when making sure our operations are safe, including training, daily safety tailboards, updates to safety protocols and programs, safety observers in the field, and a robust SIF program that evaluates the root causes of accidents and near misses and provides corrective actions to prevent them from happening again.

We take a multifaceted approach—including strict adherence to COVID-19 safety protocols in accordance with current CDC, state, and county health guidelines and ordinances—to protect the safety of the public through our operations:

• Electric Operations: Includes efforts to harden our infrastructure, modernize the grid, and execute our Community Wildfire Safety Program to continue to mitigate the risk of our equipment igniting fires.
• Gas Operations: Includes achieving and maintaining best-in-class asset management certifications, meeting all compliance standards, and maintaining rigorous pipeline safety management systems.
• Power Generation: Includes safely operating the Diablo Canyon Power Plant and our natural gas-fired generation facilities and continuing to inspect and maintain our hydroelectric system according to strict safety guidelines.

Community Wildfire Safety Program

See Our Progress on Wildfire Safety The fire season in California is starting earlier and ending later due to climate change, and fires are becoming larger and spreading faster. Our wildfire safety program is evolving each year to reflect lessons learned and incorporate new information.

In 2021, we achieved and exceeded the goals of our Wildfire Mitigation Plan. We also announced our plans to underground 10,000 miles of powerlines in high fire risk areas and successfully piloted the use of Enhanced Powerline Safety Settings, which turn off power quickly and automatically if the system detects a problem.

Gas Safety

See Our Progress on Gas Safety Our 2022 Gas Safety Plan demonstrates PG&E’s commitment and progress in implementing processes, programs, and procedures to achieve our vision to become the safest and most reliable natural gas utility in the nation. Our plan outlines the work we accomplished in 2021 and also includes:

• How we’ve improved visibility into our work through the Lean operating system, strengthening how we govern the safety culture of our gas operations organization.
• How we’ve further aligned the goals of our gas operations with enterprise goals ranging from risk-informed work to relentless execution.

Emergency Preparedness and Response

To prepare for major weather events and natural disasters—earthquakes, wildfires, floods, heavy winds, and blizzards—PG&E relies upon our enterprise-wide Emergency Preparedness and Response (EP&R) organization, through which we continually review and strengthen our catastrophic emergency response plans, to maintain:

• Clearly defined organizational structures, roles, and responsibilities,
• Restoration priorities that incorporate community needs to help customers get back to normal,
• Effective logistics plans that support restoration needs,
• Technology that is ready and available to support our response,
• Employees who are trained and fully understand their emergency roles, and
• Employees who are personally prepared for emergencies and ready to respond at home and at work.

In 2021, under the direction of EP&R, PG&E activated our Emergency Operations Center to fully coordinate our activities during several events, including PSPS, atmospheric river winter storms, capacity shortage events, and wildfires.

In an emergency situation, we coordinate and communicate with police, fire, and other officials in an effort to keep the public and first responders safe. PG&E maintains a secure First Responder website, where emergency officials can access training materials and infrastructure information and maps.

Cyber and Physical Security

PG&E operates infrastructure that has been deemed critical to our national and economic security. As such, we are firmly committed to working with other gas and electric providers, other essential industries, and government officials to develop and implement state-of-the-art security strategies and best practices.

PG&E’s Enterprise Protection organization demonstrates our commitment to addressing evolving threats and complex cyber and physical security risks. We seek to continually improve our services through strategic deployment of our resources, standardizing security practices and policies, and reinforcing and promoting security awareness across the enterprise.

Our Enterprise Protection organization leads our efforts to detect, monitor, and respond to cybersecurity threats and attacks. To test and refine our ability to respond to threat scenarios, we hold an enterprise-wide training exercise each fall and participate in the national GridEx grid security cyber exercise every other year.

As PG&E’s technological footprint expands, the need to protect our people, assets, and information from attacks becomes even more essential. We have made investments in key areas to modernize the security infrastructure and to build service capability, providing the security team with the tools they need to manage challenges to our critical infrastructure. As part of this commitment, PG&E participates in the Cybersecurity Risk Information Sharing Program, which is a threat monitoring and intelligence sharing program sponsored by the U.S. Department of Energy.

Once risks are identified and prioritized, we develop mitigation plans to protect the enterprise and reduce risk. The approach includes continually evolving our capabilities to address tactics used by our adversaries amid a changing technology landscape. PG&E has around-the-clock centralized security monitoring operations for threat detection, situational awareness, incident management, and emergency response to proactively defend PG&E from both cyber and physical threats.

2021 Milestones

Emergency Preparedness and Response

• Evolved our Wildfire Safety Operations Center into a Hazard Awareness and Warning Center—expanding our scope and capabilities to monitor for a wider range of natural disasters and emergencies.
• Maintained our Emergency Response Center in Vacaville, a 30,000-square-foot facility with redundant power and telecom infrastructure.
• Hosted 80 training workshops to better prepare firefighters, police, public works officials, and other authorities to respond to emergencies involving electricity and natural gas. We also met with more than 350 local fire entities to address contingency planning for gas-related events.
• Awarded a $1.4 million grant to the California Fire Foundation to support local fire departments and the California Professional Firefighters to promote emergency preparedness and safety.

Public Safety Awareness

• Expanded the Safety Action Center, a dedicated safety webpage featuring information about wildfire risks and what customers can do to keep their home, family, or business safe. Launched in 2019, it has reached more than 1 million Californians.
• Urged customers to update their contact information, as part of a campaign encouraging customers to have a plan for the growing threat of climate-driven extreme weather and wildfires.
• Encouraged customers and contractors to call 811 before digging, the best safeguard and the first line of defense to preventing strikes on underground utility lines.
• Emphasized safety around downed power lines by providing safety tips online and through an extensive public advertising campaign.
• Maintained a standalone cloud-based website specifically for emergencies, including PSPS content and tools for easier usability for customers.
• Promoted public safety around PG&E waterways, including dam safety and encouraging customers to take extra precautions around hydroelectric facilities and dams, where water flows can change rapidly.
• Took a stand against scams as part of the Utilities United Against Scams, a consortium of more than 100 U.S. and Canadian energy companies.

Measuring Progress

PG&E tracks our public safety performance via a set of public safety metrics with the aim of continuous improvement. In 2021, customer welfare—prioritizing public and workforce safety—represented 75% of management’s annual at-risk performance-based pay. Financial stability was weighted at 25%. This breakdown was continued in 2022.