San Diego-based utility holding company Sempra on Thursday renewed its commitment to a “lower carbon future” backed by a $48 billion capital investment strategy in an annual report on sustainability.
“Our aim is to help advance the transition — and the world — to a lower carbon future, one that balances the need for cleaner energy with the necessity of reliability and resiliency for a rapidly changing world,” said Jeffrey W. Martin, chairman and CEO.
The report cites Sempra’s support for renewable energy, electric vehicles, energy storage and clean hydrogen fuel backed by a commitment to spend $48 billion over five years “to help deliver cleaner forms of energy to our stakeholders in California and Texas and to
our partners internationally.”
For San Diego, that commitment has resulted in Sempra’s San Diego Gas & Electric unit reaching 50% renewable energy in 2023.
Also detailed in the 150-page document is the company’s support for safety, good governance, community engagement and general environmental goals.
Sempra’s commitments come at a time when conservative voices in the financial world have criticized “environmental, social, and governance” goals, and some states — notably Texas — have divested from banks that support such goals.
Lisa Larroque Alexander, Sempra’s senior vice president of corporate affairs and
chief sustainability officer, said the company’s focus on sustainability has been inspired by California and has proven to be convincing in other markets
“By virtue of our California roots, we’ve had the privilege of being on the forefront of many trends,” she said. “When we’re in Texas, translating sustainability into value for shareholders as well as stakeholders does resonate there very well.”
She cited climate change as a global challenge, and noted in her written introduction to the report that Sempra is striving to adapt.
“We imagine a future increasingly resilient to severe weather, where businesses and people of all ages and backgrounds thrive with access to secure, affordable and cleaner energy,” she wrote.
The company’s increasing use of renewable energy in the United States comes as its Sempra Infrastructure unit has emerged as a major supplier of liquified natural gas to world markets. Alexander pointed out that LNG is much cleaner than the coal it replaces, and can serve as a reliable backup energy source as renewables expand.
The report was released in conjunction with the company’s annual shareholders meeting, during which the SanDiego350 climate action group planned a protest outside Sempra headquarters over LNG exports.