Our strategy to create a more sustainable future

 

ASPIRE 2045: 
Our Sustainability Strategy

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Innovating our business to create lasting benefits for stakeholders by doing the right thing, championing people, and shaping the future.

Building on our March 2021 Climate Commitment we aim to achieve net zero greenhouse gas emissions in our operations and delivery of energy by 2045, our strategy focuses on the five areas below where we can have a strong, positive impact on our communities, our company, and our stakeholders.

For more information on SoCalGas’ support of California’s clean energy goals read the full 2023 Corporate Sustainability Report.

Our sustainability goals strive to align with many of the United Nations Sustainable Development Goals (UN SDGs). They also align with Sempra's sustainability strategy described in its 2023 Sustainability Report

Learn more about our ASPIRE 2045 Sustainability Strategy from our FAQs and Factsheet.

Our commitment to a better tomorrow

Accelerating the transition to clean energy

The transition to cleaner energy is an environmental and societal imperative. SoCalGas is setting the goal to advance the use of lower-carbon or zero-carbon fuels, such as hydrogen and renewable natural gas, in support of our customers and California’s climate goals.

 

Shaping The Future with Clean Renewable Hydrogen: Angeles Link

SoCalGas has proposed Angeles Link, a clean renewable hydrogen system, to help decarbonize Central and Southern California, decrease demand for fossil fuels, and accelerate California’s climate and clean air goals.

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Converting waste to energy

In aiming to achieve net-zero greenhouse gas emissions in our operations and delivery of energy by 2045, SoCalGas is targeting delivery of 20% renewable natural gas (RNG), produced from organic waste, to core customers by 2030. As of year-end 2023, SoCalGas is delivering more than 5% RNG.

Innovating How Clean Energy Is Created And Delivered

Our [H2] Innovation Experience is North America's first-ever clean, renewable hydrogen-powered microgrid and home. This project demonstrates how net-zero gas made from renewable electricity can be used in pure form or as a blend to fuel clean energy systems and communities of the future.

Investing In Research, Development And Demonstration (RD&D)

SoCalGas and Bloom Energy co-funded an innovative hydrogen blending project at Caltech to demonstrate the potential to displace fossil fuel use and advance decarbonization. The project creates hydrogen, which is then blended into Caltech’s natural gas network and run through fuel cells, generating electricity for campus buildings.

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Goals:

  • In collaboration with our Research Development and Demonstration (RD&D) partners, fund $400M for projects in the areas of clean fuels1 and hydrogen technology and infrastructure by the end of 20252.
  • Complete five hydrogen pilot projects by 2025.
  • Develop hydrogen infrastructure solutions for the 2028 Olympics.
  • Deliver 20% renewable natural gas to core customers by 20303.
  • Demonstrate technical capability for gas distribution to safely support up to 20% hydrogen blend by 2030.
  • Establish a hydrogen industrial cluster by 2030.

 

Footnotes:

  1. Clean fuels is defined as alternative fuels that have a net zero carbon footprint. Hydrogen, biogas, synthetic natural gas, biofuels, and several synthetic gaseous and liquid fuels fall in that category, as long as their production process and their end use do not lead to net-positive carbon dioxide emissions.
  2. Goal of $400M is an aggregate co-funding target cumulative of 5 years, inclusive of 2021-2025.
  3. Specifically, we aim to provide 20% renewable natural gas to our “core service” as defined by SoCalGas’ Tariff Rule No. 23, by 2030.

Protecting the Climate and Improving Air Quality in Our Communities

SoCalGas is focused on helping to improve air quality and taking actions to decarbonize our operations and support our customers in reducing their carbon footprints.

 

Cleaner Fleet, Lower Emissions

SoCalGas continues to invest in alternative fuel vehicles. More than 40% of our fleet has been converted to either hydrogen fuel cell, hybrid, battery electric or renewable natural gas-powered vehicles, which reduce greenhouse gas emissions, and improve air quality. By 2025, we plan to complete installation of over 1,500 electric vehicle chargers to further expand our clean fleet.

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Reducing Facility Emissions

Over 93% of electricity used at the approximately 100 SoCalGas facilities included in our ASPIRE 2045 sustainability goal is powered by renewable resources. This furthers our aim to achieve net-zero emissions in our operations by 2045.

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Achieving Methane Emission Reductions

SoCalGas is committed to helping to achieve the state's methane emissions reduction goals. Through 2023, we have reduced methane emissions by 36%, compared to a 2015 baseline – passing the state’s 2025 goal and nearing the state’s 2030 goal of a 40% reduction.1

Reducing ‘Blowdowns’ Helps Environment

At times, SoCalGas performs a ‘blowdown’ to release gas from a pipeline prior to performing certain types of maintenance. Reducing blowdowns through alternative practices in 2023 cut natural gas emissions by about 328,000 million cubic feet. That’s equivalent to removing around 39,000 cars from the road for a year.

Goals:

Footnotes:

  1. Based on goals established in California Senate Bill (SB) 1371 and SB 1383.
  2. See SB 1371, available here
  3. Excludes compressor, transmission, and meter and regulator facilities.
  4. Dependent on functional application and availability of vehicle products.

Increasing Clean Energy Access and Affordability

We believe the reliable and affordable supply of clean fuels is vital for an equitable transition to sustainable energy. Every year, more than 180,000 California households and businesses access SoCalGas customer energy efficiency and assistance programs.

 

Helping Customers Reduce Energy Use, Save Money

The most affordable unit of energy is the one you don’t use. That’s why energy efficiency programs are proven ways to help customers reduce energy use, save money and reduce greenhouse gas emissions.

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Energy Efficiency Programs Save Energy, Money

In the last five years, our programs have saved customers over $349 million and 237 million therms – equivalent to the natural gas consumption of 163,000 households annually. The programs have also reduced GHG emissions by over 1.25 million metric tons, equal to removing about 297,000 cars from the road each year.

Making Customer Bills More Affordable

SoCalGas offers several programs for customers having difficulty paying their bills. Our CARE program offers a 20% monthly bill discount to qualified customers, while our Medical Baseline program provides additional natural gas at the lowest rate for customers with qualified medical conditions.

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Water partnerships Deliver Customer Savings

By partnering with over 20 municipal utilities and water agencies, we’re helping reduce the energy needed for water consumption and heating by installing low-flow faucet aerators and high-efficiency toilets at customers’ homes. These efforts have helped customers save up to 1 billion gallons of water in a year.

Goals:

  • Exceed state energy efficiency goals by 25% or more each year.
  • Enroll 90% or more of eligible low-income customers in alternative rates for energy programs every year.
  • Manage gas procurement costs effectively for core customers and achieve top quartile of lowest average monthly residential bill compared to our top 50 peers nationwide every year1.
  • Develop new clean energy programs for customers by 2025.
  • Engage our diverse Community Advisory Council quarterly through discussions and surveys to collaborate on issues around clean energy access and affordability.

 

Footnotes:

  1. Third-party peer data used to track progress on this goal will be sourced from American Gas Association (AGA); Top 50 IOUs by Total Customers.

Advancing Diversity, Equity, and Inclusion

A sustainable future involves the meaningful participation of all. Advancing diversity, equity and inclusion (DEI) in the communities we serve, and in the workplace, promotes transparency and trust. It expands opportunity, sparks innovation and helps achieve measurable social impact.

 

Investing in Diverse & Underserved Communities

SoCalGas cares deeply about the health and livelihood of our communities. Our goal is to invest $50M in diverse and underserved communities from 2022-2026. After just two years, we’re nearly halfway there with $23M in cumulative spend though 2023.

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Awarding Grants for Innovative Climate Solutions

In 2023, we demonstrated our community commitment by awarding $400,000 in Climate Champion grants to local nonprofits with projects focused on resilient energy, clean air, and organic waste to help reduce, mitigate, or sequester greenhouse gas emissions.

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Supporting a Sustainable Future through Diverse Partnerships

Partnering with diverse suppliers brings innovative solutions vital to achieving sustainability goals. That’s why we aim to increase total annual Diverse Business Enterprise (DBE) procurement to 45% by 2025. We’ve nearly reached this goal two years in advance, with 2023 DBE procurement at 44%.

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Collaboration Advances Climate Goals

Five years ago, Native-American-owned Hal Hays Construction was awarded its first SoCalGas contract to build a new regional base in Bakersfield. The building earned LEED Gold Certification from the US Green Building Council for its environmental benefits. Since then, the firm has worked on over 100 SoCalGas jobs, including building a compressed natural gas refueling station. This work helps decarbonize our facilities and our fleet.

Goals:

  • Take actions to lead the utility industry in racial and ethnic diversity representation in leadership roles by 2025 1.
  • Take actions to grow representation of women in leadership roles and overall workforce by 2025 1.
  • Plan to invest $50M to positively impact diverse and underserved communities over the next five years2.
  • Help diverse businesses meet contractual requirements to work with us by increasing supplier participation in Technical Assistance Programs (TAPs) by 30% by 2025.
  • Increase our total annual Diverse Business Enterprise spend to 45% by 2025.

Footnotes:

  1. "Leadership role" is defined as a management position of supervisor, team lead, manager, director, and/or officer of the Company.
  2. “Diverse” is defined as Black, Indigenous and People of Color, inclusive of American Indian or Alaska Native, Asian, South Asian, Southeast Asian, Black or African American, Hispanic, Latino or Spanish Origin, Middle Eastern or North African, and Native Hawaiian or other Pacific Islander (BIPOC). “Underserved” is defined as people sharing a particular circumstance, such as homelessness, low income, ill, in-crisis, disabled, LGBTQIA, military/veterans, immigrants, seniors, youth, and students.

Achieving World-Class Safety

As the nation’s largest gas distribution utility, safety has been – and will remain – our core value. Our comprehensive approach to safety helps to sustain the well-being of the public, our employees and contractors, as well as the integrity of our infrastructure.

 

Safe Digging Program Helps Prevent Pipeline Damage

Digging near buried pipelines while planting, doing yard maintenance, or during demolition work can damage pipelines, cause injury, property damage and loss of utility service. Our damage prevention program has helped decrease the pipeline excavation damage rate by more than 26% since 2020, supporting public and infrastructure safety.

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Working with our Employees to Enhance Safety

SoCalGas knows that our employees have solutions to improve safety. To that end, we implemented a “Learning Team” process to engage cross functional, frontline teams of employees to explore and identify learning and improvement opportunities. Learning Teams encourage employees to raise concerns, exhibit a questioning attitude, and embrace a culture of safety and learning.

Supporting Customers During Extreme Weather Events

Following a massive snowstorm in Lake Arrowhead in March 2023, over 180 SoCalGas team members rapidly deployed, along with first responders, to assist more than 800 customers. Using innovative technologies, like methane mapping, employees identified potential safety hazards and allocated resources where they were most needed, improving public and system safety.

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Enhancing Safety, Reliability at Mobile Home Parks

The Mobilehome Park Utility Conversion Program transitions aging, privately owned, master-metered systems to new, utility-owned systems at mobile home parks throughout Central and Southern California, strengthening safety and reliability for thousands of mobile home residents. As of year-end 2023, SoCalGas has converted over 25,000 mobile homes.

Goals:

  • Train 100% of identified employees in emergency management and incident response each year.
  • Require 100% of approved pipeline construction contractors to have a formal safety management system program as part of contract requirements starting 2023 1.
  • Enhance damage prevention program to decrease the rate of excavation damages to pipelines by 40% by 2030 compared to a 2020 baseline.
  • Aim to achieve zero employee and contractor fatalities each year 2.

Footnotes:

  1. "Approved pipeline construction contractors" defined as a contractor classified under the North American Industry Classification System (NAICS) code 237120, pre-qualified, and approved by SoCalGas.
  2. Goal is based on anticipated program expansion approval from the California Public Utilities Commission.

SoCalGas Settlement Agreement

SoCalGas has reached a settlement with the State of California on Consent for Permanent Injunction and Civil Penalties.

Our Renewable Natural Gas Commitment:

SoCalGas’s mission is to build the cleanest, safest, and most innovative energy infrastructure company in America. That mission includes a dedication to increasing the supply of renewable natural gas (“RNG”) to our consumers. Most of SoCalGas’s fuel portfolio is, at present, comprised of non-renewable natural gas derived from fossil fuels. RNG deliveries to our customers represent just under 5% of our existing deliveries as of the end of 2022. For context, however, SoCalGas distributed RNG throughout Central and Southern California in 2020 equivalent to approximately 130% of the natural gas needs of Santa Barbara County. SoCalGas has a goal of delivering 20% RNG to our residential and small commercial and industrial customers by 2030. SoCalGas remains committed to providing increasingly renewable natural gas to its consumers. This is part of our aim to achieve net zero greenhouse gas emissions in our operations and delivery of energy by 2045.