Southern California Gas Company Sets Bold Net Zero Emissions Pledge

LOS ANGELES, March 23, 2021 /PRNewswire/ -- Southern California Gas Co. (SoCalGas), the largest gas utility in the U.S., today announced the company's bold commitment to achieve net zero greenhouse gas (GHG) emissions in its operations and delivery of energy by 2045.

This commitment makes SoCalGas the largest gas distribution utility in North America to set a net zero target including scopes 1, 2, and 3 GHG emissions, which would eliminate not only its own direct emissions, but also those generated by customers' energy delivered by SoCalGas' energy infrastructure.¹  

SoCalGas' commitment aligns with the Paris Climate Agreement's recommendations and reflects the company's focus on supporting California with a resilient gas grid through the energy transition to support a carbon neutral economy.

"Our mission is to build the cleanest, safest and most innovative energy company in America," said Scott Drury, SoCalGas CEO. "We will lead the energy transition by providing clean fuels and innovative technologies essential to carbon neutrality for California. Through collaboration and partnership, California can develop clean energy solutions at scale and serve as a global beacon for energy innovation."

SoCalGas, which serves nearly 22 million residents, representing half the state's population, has a long record of emissions reduction progress in support of California's environmental goals. This includes implementing energy efficiency programs, delivering increasing amounts of carbon-negative renewable natural gas (RNG), and developing zero-carbon hydrogen technologies, among others. These efforts have resulted in carbon reductions of over 3.2 million metric tons of carbon dioxide equivalent (CO2e), the equivalent of removing more than 700,000 passenger vehicles off the road for an entire year.

Over the next five years, SoCalGas plans to invest in initiatives to decarbonize, diversify, and digitalize the business. To guide SoCalGas' path to net zero, the company released a Climate Commitment Announcement. Select commitments along SoCalGas' path to net zero include:

By 2025 to:

• Achieve net zero energy for 100% of SoCalGas' newly constructed buildings and major renovations of buildings over 10,000 square feet.
• Replace 50% of SoCalGas' over-the-road fleet with electric, hybrid, natural gas, and/or fuel cell electric vehicles.
• Establish statewide hydrogen blending standards.
• Complete five hydrogen pilot projects.

By 2030 to:

• Eliminate 100% of vented gas during planned transmission pipeline work.
• Achieve net zero energy for 50% of all SoCalGas existing buildings.
• Deliver 20% renewable natural gas.

By 2035 to:

• Operate a 100% zero emissions over-the-road fleet.
• Achieve net zero energy for 100% of SoCalGas buildings.

Key stakeholders praised the announcement, citing the need for zero and low-carbon gases that can support renewable electricity production.

"SoCalGas' bold climate pledge demonstrates their commitment to helping California reach its goal of carbon neutrality," said California Sen. Bob Archuleta. "I've fought for investments in hydrogen and other clean fuel technologies because I know that gas infrastructure will be needed to provide reliable energy in a net zero carbon economy. I'm thrilled SoCalGas is leading the nation in these innovations, and that they're beginning here in the 32^nd Senate District."

California Assemblymember Cristina Garcia commented, "To get to net zero in California, we need lawmakers and state agencies to engage the support and partnership of all stakeholders—universities, investors, communities, and businesses, including energy providers like SoCalGas. Because as California brings on more and more renewable electricity, we need to ensure we have all the tools in our toolbelt – solar, wind, hydrogen and renewable natural gas, and all other renewable clean sources–to work together to ensure grid reliability while still meeting our clean air and climate change goals." 

"Converting electricity into fuel is a critical technology that will solve many issues for storing electricity long-term and for decarbonized transportation fuels within our existing infrastructure," said Nate Lewis, George L. Argyros Professor of Chemistry at the California Institute of Technology. "The linchpin is converting electricity to fuels, and SoCalGas' dedication to these solutions will help California reach carbon-neutrality faster and more cost-effectively."

"I'm proud to help SoCalGas announce its commitment to net zero emissions by 2045," said Mayor Claudia Frometa of Downey, California. "As the birthplace of the Apollo space program and the testing site for many of the nation's greatest aviation and space endeavors, Downey has a long history of innovation. It's perfectly fitting SoCalGas announce its commitment and plan for their new Hydrogen Home right here in Downey."

For more information and our latest news, visit newsroom.socalgas.com

About SoCalGas
Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, clean and increasingly renewable gas service to 21.8 million consumers across 24,000 square miles of Central and Southern California, where more than 90% of residents use natural gas for heating, hot water, cooking, drying clothes or other uses. Gas delivered through the company's pipelines also plays a key role in providing electricity to Californians— about 45 percent of electric power generated in the state comes from gas-fired power plants.

SoCalGas' mission is to build the cleanest, safest and most innovative energy company in America. In support of that mission, SoCalGas has committed to achieving net-zero greenhouse gas emissions in its operations and delivery of energy by 2045. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. Over the past five years, the company invested nearly $7.5 billion to upgrade and modernize its pipeline system to enhance safety and reliability. SoCalGas is a subsidiary of Sempra Energy (NYSE: SRE), an energy services holding company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook. 

This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on assumptions with respect to the future, involve risks and uncertainties, and are not guarantees. Future results may differ materially from those expressed in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this press release. We assume no obligation to update or revise any forward-looking statement as a result of new information, future events or other factors.

In this press release, forward-looking statements can be identified by words such as "believes," "expects," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "target," "outlook," "maintain," "continue," or similar expressions, or when we discuss our guidance, priorities, strategy, goals, vision, mission, opportunities, projections, intentions or expectations.

Factors, among others, that could cause actual results and events to differ materially from those described in any forward-looking statements include risks and uncertainties relating to: decisions, investigations, regulations, issuances or revocations of permits and other authorizations, renewals of franchises, and other actions by (i) the California Public Utilities Commission (CPUC), U.S. Department of Energy, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S.; the success of business development efforts and construction projects, including risks in (i) completing construction projects or other transactions on schedule and budget, (ii) the ability to realize anticipated benefits from any of these efforts if completed, and (iii) obtaining the consent of partners or other third parties; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, and arbitrations, including, among others, those related to the natural gas leak at the Aliso Canyon natural gas storage facility; the impact of the COVID-19 pandemic on our capital projects, regulatory approval processes, supply chain, liquidity and execution of operations; actions by credit rating agencies to downgrade our credit ratings or to place those ratings on negative outlook and our ability to borrow on favorable terms and meet our substantial debt service obligations; moves to reduce or eliminate reliance on natural gas and the impact of volatility of oil prices on our businesses and development projects; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, computer system outages and other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires and subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance (including costs in excess of applicable policy limits), may be disputed by insurers or may otherwise not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; the availability of natural gas and natural gas storage capacity, including disruptions caused by limitations on the withdrawal of natural gas from storage facilities and equipment failures; cybersecurity threats to the storage and pipeline infrastructure, the information and systems used to operate our businesses, and the confidentiality of our proprietary information and the personal information of our customers and employees; volatility in interest and inflation rates and commodity prices and our ability to effectively hedge these risks; changes in tax policies, laws and regulations; and other uncertainties, some of which may be difficult to predict and are beyond our control.

These risks and uncertainties are further discussed in the reports that the company has filed with the U.S. Securities and Exchange Commission (SEC). These reports are available through the EDGAR system free-of-charge on the SEC's website, www.sec.gov. Investors should not rely unduly on any forward-looking statements.

Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.B. de C.V. (IEnova) are not the same companies as the California utilities, San Diego Gas & Electric Company (SDG&E) or Southern California Gas Company (SoCalGas), and Sempra North American Infrastructure, Sempra LNG, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.

¹ Scopes 1, 2 and 3 emissions

SOURCE Southern California Gas Company