SoCalGas Completes Green Financing Supporting Company Sustainability Goals
The company becomes the first gas-only utility in the U.S. to issue public green bonds
LOS ANGELES – November 15, 2022 – Southern California Gas Co. (SoCalGas) has successfully issued $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 and 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 ambitious 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 and its position as a leader 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 towards its goals. The inaugural green bonds will build upon SoCalGas’ position as a leader in sustainability and innovation. Just 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.
This year alone SoCalGas:
• 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 the resiliency and reliability of 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 a 20% emissions reduction 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 1,500 electric vehicle chargers at 67 company facilities.
For more information about SoCalGas’ sustainability efforts, visit https://www.socalgas.com/sustainability.
Please click here for a PDF of information on SoCalGas’s sustainability efforts
Headquartered in Los Angeles, SoCalGas® is the largest gas distribution utility in the United States. SoCalGas delivers affordable, reliable, and increasingly renewable gas service to 21.8 million consumers across 24,000 square miles of Central and Southern California. Gas delivered through the company’s pipelines will continue to play a key role in California’s clean energy transition—providing electric grid reliability and supporting wind and solar energy deployment.
SoCalGas’ mission is to build the cleanest, safest and most innovative energy company in America. In support of that mission, SoCalGas aspires to achieve net zero greenhouse gas emissions in its operations and delivery of energy by 2045 and to replacing 20 percent of its traditional natural gas supply to core customers with renewable natural gas (RNG) by 2030. Renewable natural gas is made from waste created by dairy farms, landfills, and wastewater treatment plants. SoCalGas is also committed to investing in its gas delivery infrastructure while keeping bills affordable for customers. SoCalGas is a subsidiary of Sempra (NYSE: SRE), an energy infrastructure company based in San Diego. For more information visit socalgas.com/newsroom or connect with SoCalGas on Twitter (@SoCalGas), Instagram (@SoCalGas) and Facebook.