Southern California Gas Co. (SoCalGas) successfully issued US$600 million of 30-year fixed-rate “Green First Mortgage Bonds,” to directly support the company’s sustainability investments. SoCalGas issued the bonds under Sempra’s Sustainable Financing Framework and is the first gas-only utility in the United States to issue a green bond. The net proceeds from the sale of these fixed-rate green bonds are planned to help finance and/or refinance sustainability investments in any of three categories: pollution prevention and control, green buildings, or clean transportation. Eligible projects in those categories may include retrofitting and replacing older pipelines to reduce fugitive methane emissions and ready them for throughput of clean fuels such as hydrogen, advancing fugitive emissions elimination technologies, investing in LEED-certified green buildings, and investment in infrastructure to support clean transportation.
“Sustainability informs everything we do, whether it’s investing in world-class safety, accelerating the transition to clean energy and helping to meet the state’s climate goals, or championing diversity and equity,” said Jawaad Malik, vice president of strategy and sustainability and chief environmental officer for SoCalGas. “We’re pleased that investors recognize the value not just in investing in our sustainable goals and initiatives, but also in SoCalGas’ track record of innovation as we work toward our aim to have net-zero greenhouse gas emissions by 2045.”
In 2021, SoCalGas became the first and largest natural gas utility in the United States to announce its aim to have net-zero greenhouse gas emissions by 2045. Earlier this year, SoCalGas announced its Sustainability Strategy, putting words into action and setting measurable objectives toward its goals. Last month, SoCalGas was awarded the top “Business Transformation Award” at the 2022 Responsible Business Awards, hosted by Reuters Events, with the company being recognized for having established truly transformative sustainability priorities with the potential to create impact at scale in the energy sector and beyond. The company’s sustainability efforts cover a broad range of goals and initiatives aimed at achieving a safe, reliable, resilient, affordable, and equitable energy transition to net zero.
SoCalGas has achieved numerous ESG accomplishments so far in 2022:
- Announced plans to develop the Angeles Link, a dedicated clean hydrogen energy infrastructure system for delivering clean, reliable energy to the Los Angeles Basin to serve hard-to-electrify sectors of the economy such as electric generation, heavy-duty transportation, and heavy industry and manufacturing;
- Plans to unveil a renewable hydrogen microgrid and home, the H2 Innovation Experience, which showcases a renewable hydrogen microgrid that can power neighborhoods;
- Reported that in 2021 it reduced fugitive methane emissions by 37% relative to a 2015 baseline — surpassing the state’s goal of 20% emissions reductions by 2025 and nearing the state’s goal of a 40% reduction by 2030;
- Announced a proposed collaboration with the University of California, Irvine, to demonstrate how electrolytic hydrogen can be safely blended into existing natural gas infrastructure on the university’s campus, an important next step in establishing a statewide injection standard for renewable hydrogen; and
Was awarded “Leading Private Fleet” by the 2022 Advanced Clean Transportation (ACT) Expo, for becoming one of the first utilities in the nation to begin transitioning its over-the-road fleet with the purchase of 50 Toyota Mirai fuel cell electric vehicles, the conversion of 200 new Ford F-250 pickup trucks to renewable natural gas, and beginning the installation of 1500 electric vehicle chargers at 67 company facilities.
