As Vice President of Talent Management for Sempra, Deborah Martin is responsible for helping advance Sempra’s high-performance culture. Maintaining the company’s reputation as a top workplace is one of her highest priorities, working with departments across our company to recruit, maintain and develop top-tier talent to advance the global energy transition. Learn more about Martin in this Q&A:
What are some immediate and long-term goals as Sempra’s new vice president of talent management?
My ultimate goal is to build on the success of our high-performance culture so that we can continue to be an employer of choice and continue to attract, retain and develop some of the best talent. A big part of our culture is living our values — do the right thing, champion people and shape the future.
In this role, I have the position of working with the departments within our organization that have extensive interaction with our employees. These groups include human resources, organizational development, benefits, ethics and compliance and compensation. These teams bring new talent into the organization, develop that talent, provide top-notch benefits to support that talent, and provide avenues for investigation and remedying problems when we don’t quite get it right. I want to help ensure we are championing our people with every interaction and at every stage of this process.
What trends do you see in the talent landscape within the energy sector? We are currently in a highly competitive market for talent. What differentiates Sempra and our family of companies from others as a best place to work?
As with the talent landscape in general, employees are becoming more discerning in where they want to work, whether it is in terms of compensation and benefits or looking for a culture that is a good fit for them. Sempra offers an exceptional culture, and we are constantly working to improve and evolve. Recently, we were named to the list of Top Places to Work in San Diego by The San Diego Union-Tribune, and it was especially gratifying because the result was entirely based on feedback from our employees.
Sempra is the recipient of many awards that recognize and validate our efforts, including being named one of Fortune Magazine’s World’s Most Admired Companies for 2022, for the 12th time, and being named one of America’s Most Responsible Companies by Newsweek for the fourth consecutive year. Additionally, Sempra was named to The Wall Street Journal’sManagement 250 list, exhibiting a five-star rating in the employee engagement and development category.
One of the awards I really believe sets us apart is the recognition we have received for our sustainability efforts. We have been recognized by Investor’s Business Daily as the number one company for both sustainability and financial performance. For sustainability, Sempra ranked first in the U.S. Utility Sector, and was 13th overall on the list. Our company’s focus on sustainability means a lot to me personally, as sustainability is central to our corporate strategy, underpinned in Sempra’s proactive management of environmental, social and governance risks and opportunities.
Our high-performance culture drives our mission to be North America’s premier energy infrastructure company. What does Sempra’s culture mean to you?
From my perspective and in my experience — this is a place where you can own your career. If you look around Sempra, you see that many employees change roles. For example, I am a lawyer that transitioned to a business role, and there are many other colleagues with similar stories.
We also provide an abundance of resources for employees to grow and learn in their current positions and areas of expertise. We invest a substantial amount in employee development, and we are working to make those resources easier for employees to access. But more fundamentally, we lead with empathy and allyship.
A great example of how we embrace and encourage those concepts is our enterprise-wide annual Diversity and Inclusion Summit, where we bring in experts and outside speakers to help us improve and thrive. This inspiring event, which we have put on for the last decade, helps us create a culture of belonging that allows our employees to thrive as individuals and collectively lifts up the company as a whole.
At Sempra, we believe we have one of the best workforces in the industry and that our high-performance culture continues to be our differentiator. Across our family of companies, our 20,000 employees regularly respond to challenges with composure and resilience, while maintaining our world-class safety standards and delivering energy with purpose. Learn more about how we develop top-tier talent and maintain our high-performance culture.
The Lone Star State is harnessing the power of the sun to help reduce energy costs, especially in underserved areas where electricity use can consume a disproportionate share of monthly budgets. For families in the Colonias communities in the Rio Grande Valley along the Texas-Mexico border, any cost increases in basic needs like electricity, educational supplies and even food create situations where people have to make uncomfortable choices.
Recently, Sempra Foundation, along with trusted nonprofit Solar Electric Light Fund (SELF), began a pilot solar program in the Colonias to address energy access and help reduce the burden of choosing one basic need over another.
“The individuals and families we are supporting in these communities lack access to basic infrastructure and are struggling to make ends meet,” said Lisa Alexander, director and board chair of Sempra Foundation. “Helping these families access more affordable electricity with a solar solution has a tremendous ripple effect. The positive impact goes well beyond their utility bills.”
The Colonias are rural, unincorporated communities with concentrated pockets of poverty that are physically and legally isolated from neighboring cities. According to the Texas Department of Housing and Community Affairs, the typical annual income for a family of four in the Colonias is about $12,000 to $15,000, and the average annual expenditure of electricity is about $1,600, almost 10% of their income. This explains why in Hidalgo County, 38% of the residents live at the poverty level compared to 26% in the rest of Texas.
To equip these families with affordable electricity in what the energy industry considers a “last mile” territory, Sempra Foundation with SELF embarked on this new solar energy pilot program to provide much-needed relief. Not only is solar installation a great option for this area, it’s also one that contributes to a broader Sempra Foundation effort to help improve lives and build stronger, more resilient communities by expanding energy access.
Sempra Foundation partnered with SELF because of that organization’s extensive experience designing and implementing solar projects for underserved populations around the world to advance their levels of healthcare, education, water and food security, and economic development.
Working in the Colonias was also made easier by a trusted social services member of the community called Proyecto Azteca, a team that knew the conditions intimately and had already built relationships with residents. With their help, 14 homes opted in to receive a solar photovoltaic (PV) system to significantly reduce electrical energy costs.
Life in the Colonias demonstrates the importance of energy in helping communities thrive. With access to energy, children can study after dark, food and water can be heated and cooled and people can be healthier and more productive. Addressing these basic needs with this solar installation is one way Sempra Foundation can help make a difference through philanthropic investments that produce sustainable and responsible change.
Since assuming the helm of Sempra nearly five years ago, Martin has led transformational change across the Sempra family of companies, reflecting a leadership philosophy that was instilled in him over the course of his earlier military career. Martin holds a Bachelor of Science degree from the United States Military Academy at West Point. Upon graduation, he was commissioned as an officer in the U.S. Army where he served as an air-cavalry pilot in the 4th Squadron, 3rd Armored Cavalry Regiment.
In celebration of Veterans Day and Military Families Month, Martin reflects on the experiences in the U.S. Army that helped shape his views on leadership and service.
Photo: Jeffrey Martin, United States Military Academy at West Point
Talk about what inspired you to consider a career in the U.S. Army.
My decision to serve was inspired by two factors. First, I grew up in a small town in Western North Carolina in a family with a tradition of military service. I always looked up to my father, who was a great role model. He had served in the U.S. Army during the Korean conflict in the 1950s. He was assigned to the 25th Infantry Division, also known by the nickname “Tropic Lightning” due to its mission set in the Asia-Pacific region.
Second, when I was in high school, 70 Americans were taken hostage at the U.S. Embassy in Iran. The year was 1979. This became known as the Iran Hostage Crisis and was one of the first overt acts of terrorism against the U.S.
I was looking at a variety of colleges at the time. In a nod to my family’s history of military service and the sense of patriotism that swept across America during the hostage crisis, I chose to serve my country. In 1980, I accepted an appointment to the United States Military Academy at West Point, where I received a general engineering degree.
Tell us about your early experiences during your service.
After graduating from West Point in 1984, I was commissioned as a 2nd Lieutenant. Over the next 24 months, I completed three military training programs: the U.S. Army Infantry Officers' School, Airborne School and Flight School. The challenging nature of these training assignments further prepared me to serve in the Third Armored Cavalry Regiment as a helicopter pilot and flight platoon leader. At the time, it was near the end of the Cold War and our primary mission was to spearhead the Army’s response to any Soviet threat to Western Europe. I left the Army with the rank of Captain in December 1989, and the Cold War officially ended two years later.
How did your experience in the Army shape your view on leadership?
When I look back on my time in the Army, there are two general takeaways:
First, I learned a lot about the value of serving an ideal greater than oneself. There is so much value in the concept of service to others, and it was truly rewarding to serve with so many young men and women from all different backgrounds, who cared so much about our country.
Second, I learned that people often make the mistake of associating leadership with creating followership — and unfortunately that can lead to an over-reliance on one’s title or position in an organization to accomplish things. Instead, what is far more important is being intentional about creating new leaders at every level of an organization. The credo that comes to mind is "to measure your success on how those around you succeed." That means whether your focus is on winning on the battlefield or in corporate America, leadership is all about raising up those around you and bringing out the best in people, teams and organizations.
This is a philosophy that our team has embraced at Sempra, where we are focused on building a high-performing culture. That translates into delivering safety and operational excellence, leveraging leadership and employee development, embracing our differences and building a strong sense of belonging at the company.
Photo: Jeffrey Martin’s Promotion Ceremony, Fort Bliss, Texas, 1988; joined by R.J. Martin (father)
How has this experience inspired your leadership of an organization like Sempra?
I start with the proposition that everyone wants to be successful and contribute to our company’s growth. Second, it is important to remind yourself every day that it is an honor to work with so many talented people around a common mission of finding new and innovative ways to better serve society.
At Sempra, we have been successful in creating a leadership position in some of the largest economic markets in the world and that comes with the responsibility of combining the scale of our energy network with innovation and new technologies to help better serve our customers. With a corporate culture that values service to others, it is also exciting to play a role in helping to solve some of society’s greatest challenges, including playing a leadership role in ensuring that energy is cleaner, abundant and more affordable.
I am honored to lead and serve alongside 20,000 employees, including more than 800 veterans and active reservists across our family of companies. As we look to create a culture of high-performance at Sempra, it is important to pause on days like today to extend our sincere gratitude to those around us who have served — or still serve — in the U.S. Armed Forces.
At Climate Week in New York City, Lisa Larroque Alexander, Sempra senior vice president of corporate affairs and chief sustainability officer, appeared on “NYSE Floor Talk” to discuss Sempra’s role in the energy transition.
“Energy networks like ours are squarely at the center of important clean energy trends,” said Alexander. “Transmission and distribution networks are the backbone of the energy transition and at Sempra we couldn’t be more pleased to play a role.”
Watch the video to learn more about Sempra’s work to enable the energy transition by expanding energy choice while enabling reliable and affordable electrification of consumer markets:
With a series of different challenges unfolding in Europe, including the ongoing war in Ukraine, global energy leaders gathered in London for the Energy Intelligence Forum. Topics of discussion ranged from updates on market dynamics to supply concerns and the need for critical new investments to establish a cleaner and more secure global energy system. Also at the conference, a keynote leadership dialogue was held with Jeffrey Martin, chairman and chief executive officer of Sempra, who outlined the growing role of American liquefied natural gas (LNG) in helping to meet the energy security needs of trading partners in Europe and Asia.
U.S. LNG: security and sustainability
Martin expressed optimism that the U.S. could out-compete global peers in offering lower-emission LNG exports in the coming decades. Current LNG operators, including Sempra Infrastructure, are already pursuing cleaner technologies such as electric drives, carbon capture and hydrogen. Martin also noted that the recently enacted Inflation Reduction Act provides further incentives for these investments while advancing the broader policy goal of reducing U.S. emissions by 40% by 2030 compared to 2005.
“We think hydrogen certainly will have a big role to play as the LNG space evolves,” he said. “As we build new export facilities, we are planning ahead with a view toward leveraging common areas in development to allow us to more cost-effectively bring hydrogen into the mix further down the line.”
Additionally, Sempra is a founding partner of a methane emissions measurement and tracking initiative called Veritas to certificate emissions. Working with upstream producers to certify feed gas and cargoes as low-emission creates another opportunity for the U.S. to further demonstrate its position as a sustainability leader to countries importing U.S. LNG.
“Innovation and developing new technologies should be framed as a leadership opportunity,” said Martin. “Between now and 2030, and in the decades that follow, we expect America to compete aggressively to deliver a lower emissions profile across the LNG value chain compared to other international alternatives.”
Green electrons and green molecules
Sempra is the owner of one of the largest energy networks in North America, with roughly 300,000 miles of transmission and distribution assets. Although Sempra’s operating companies do not produce energy in any significant way, the company’s networks deliver energy to more American consumers than any other utility. “In many ways, that is why we have such a relentless focus on continuing to decarbonize the energy we deliver,” Martin shared.
California, which is the 5th largest economy in the world, is a prime example of how certain regions are already making significant progress toward a decarbonized future. San Diego Gas & Electric Company, owned by Sempra, is a recognized leader in providing energy from renewable sources. Also, by 2030, California is expected to be well on its way to phasing out the sale of new gasoline-powered cars, which would advance the electrification of the transportation sector with the associated build out of charging infrastructure and vehicle-to-grid power systems.
“At Sempra, we are going to try to electrify as many aspects of the communities we serve as we can, but we also recognize there will be some areas that are hard to electrify, like heavy-duty transportation, as well as certain commercial and industrial processes,” said Martin.
This gap could be served through clean molecules such as green hydrogen. Martin shared with the audience that Sempra’s subsidiary, Southern California Gas Company, has developed plans to establish a major hydrogen hub to serve the greater Los Angeles region. Today, Los Angeles is home to the nation’s largest manufacturing base and two of the busiest container ports in America. Serving manufacturing and heavy-duty trucking needs through cleaner fuel sources is increasingly recognized as a critical success factor in delivering a low carbon future.
Building energy networks for the future
By 2030, Martin expects exports of American LNG will more than double with the principal benefit of reducing the market’s reliance on coal for power production. Combined with an aggressive expansion of renewable power and electric battery storage, the global energy mix has the potential to be reformed significantly by the end of the decade.
“It’s exciting to see the United States has made a decision to take an affirmative leadership role in transitioning to a lower carbon and more sustainable society,” said Martin. “At Sempra, we are committed to doing our part.”
This article 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 or implied in any forward-looking statements. These forward-looking statements represent our estimates and assumptions only as of the date of this article. 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 article, forward-looking statements can be identified by words such as “believes,” “expects,” “intends,” “anticipates,” “contemplates,” “plans,” “estimates,” “projects,” “forecasts,” “should,” “could,” “would,” “will,” “confident,” “may,” “can,” “potential,” “possible,” “proposed,” “in process,” “construct,” “develop,” “opportunity,” “target,” “outlook,” “maintain,” “continue,” “progress,” “advance,” “goal,” “aim,” “commit,” 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 expressed or implied in any forward-looking statement include risks and uncertainties relating to: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, in rates from customers or a combination thereof; 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), Comisión Reguladora de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) the U.S., Mexico and states, counties, cities and other jurisdictions therein and in other countries in which we do business; the success of business development efforts, construction projects and acquisitions and divestitures, including risks in (i) being able to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) realizing anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent or approval of partners or other third parties, including governmental and regulatory bodies; civil and criminal litigation, regulatory inquiries, investigations, arbitrations, property disputes and other proceedings, including those related to the natural gas leak at Southern California Gas Company’s (SoCalGas) Aliso Canyon natural gas storage facility; changes to laws and regulations, including certain of Mexico’s laws and rules that impact energy supplier permitting, energy contract rates, the electricity industry generally and the import, export, transport and storage of hydrocarbons; cybersecurity threats, including by state and state-sponsored actors, to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-parties with which we conduct business, all of which have become more pronounced due to recent geopolitical events and other uncertainties, such as the war in Ukraine; failure of foreign governments, state-owned entities and our counterparties to honor their contracts and commitments; 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 debt service obligations; the impact of energy and climate policies, laws, rules and disclosures, as well as related goals and actions of companies in our industry, including actions to reduce or eliminate reliance on natural gas generally and any deterioration of or increased uncertainty in the political or regulatory environment for California natural gas distribution companies and the risk of nonrecovery for stranded assets; the pace of the development and adoption of new technologies in the energy sector, including those designed to support governmental and private party energy and climate goals, and our ability to timely and economically incorporate them into our businesses; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or subject us to liability for damages, fines and penalties, some of which may be disputed or not covered by insurers, may not be recoverable through regulatory mechanisms or may impact our ability to obtain satisfactory levels of affordable insurance; inflationary and interest rate pressures, volatility in foreign currency exchange rates and commodity prices, our ability to effectively hedge these risks, and their impact, as applicable, on San Diego Gas & Electric Company’s (SDG&E) and SoCalGas’ cost of capital and the affordability of customer rates; the availability of electric power, natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid or limitations on the withdrawal of natural gas from storage facilities; the impact of the COVID-19 pandemic on capital projects, regulatory approvals and the execution of our operations; the impact at SDG&E on competitive customer rates and reliability due to growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Community Choice Aggregation and Direct Access, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC’s (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor’s independent directors or a minority member director; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those that have been imposed and that may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, impact our ability to do business with certain counterparties, or impair our ability to resolve trade disputes; and other uncertainties, some of which are difficult to predict and beyond our control.
These risks and uncertainties are further discussed in the reports that Sempra 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, sec.gov, and on Sempra’s website, sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure, Sempra Texas, Sempra Mexico, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra Infrastructure, Sempra Texas, Sempra Mexico, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.
Energy is critical to a just and prosperous world, yet many lack access to cleaner fuels or reliable power. Sempra Foundation is addressing the issue of energy access for those living in poverty, helping to deliver energy with purpose, while advancing a better future for all.
In Mexico, the use of open-fire stoves is common among marginalized populations. An estimated 4% of households cook using firewood, with percentages as high as 30% in more rural communities. According to the Clean Cooking Alliance, globally, some four million people die prematurely every year from illnesses associated with smoke from cooking. This includes women and children who may spend up to 10 hours a week gathering fuel for cooking, impacting their ability to seek educational opportunities.
Last year, Sempra Foundation announced a $500,000 donation to Fundación Mozcalti to provide cleaner cook stoves to vulnerable and indigenous communities. Fundación Mozcalti’s mission is to empower vulnerable communities in Mexico with a focus on education, health, basic needs and social entrepreneurship. As a result of the collaboration, more than 12,000 people in 28 communities have now benefitted from the new cook stoves in the states of Baja California, Chihuahua, Morelos, Nuevo León and Puebla.
Recipients were from remote communities where resources are scarce and energy affordability is a major concern:
“When we spoke with community members in Mexico, we learned that many women and children were suffering with health issues after years of inhaling smoke, including respiratory illnesses, vision problems and terrible burns,” said Beatriz Palomino Young, senior corporate citizenship manager for Sempra. “Many others shared that cooking food for others in the community was a source of income for their families but noted how much they struggle to pay for the wood they needed to fuel open fire cooking.”
The new cook stoves are helping reduce the likelihood of health impacts and are also portable, making it much easier and less expensive to prepare and sell food at local markets. This directly supports the economic prosperity of families in these areas.
“It’s been so helpful because it’s a lot easier to do our jobs, like make flour tortillas for our clients,” said Ana Maria, restaurant owner in San Antonia Necua, Mexico, who has already begun utilizing her cleaner cook stove in her restaurant. For those who cook indoors for large families multiple times a day, the air quality has improved dramatically.
Given the success of the project, a second round of 2,400 more cookstoves are now being distributed to 32 more communities across six states in Mexico. These projects are part of a broader effort by Sempra Foundation to help improve lives and build stronger, more resilient communities by expanding energy access.
Recently, Sempra and San Diego Gas & Electric employees marched in the annual San Diego Pride Parade. This year’s participation marks over 15 years of engagement with our San Diego LGBTQIA+ community and allies, emphasizing our dedication to advancing diversity and inclusion and cultivating a culture of belonging.
The parade began with Sempra’s Senior Vice President of Diversity & Community Partnerships Mitch Mitchell leading a contingent of more than 50 employees and their families through the parade route. The marchers were followed by one of San Diego Gas & Electric’s “bucket trucks”, which ignited cheers and celebration from parade onlookers with each beep of its horn.
“Marching alongside our LGBTQIA+ employees was an experience truly representative of the culture we are building here at the Sempra family of companies,” said Mitchell. “We welcome all and recognize the collective power of our different perspectives.”
Our employees were eager to march alongside their colleagues, noting that our participation is a testament to our goal to help advance a better future for all within our companies and across the communities we serve.
“It was very meaningful to me,” said Bunny Rambo, an executive assistant at Sempra. “The mission of Pride aligns with the values I live by. I was proud to walk as a team and represent our organization’s culture of acceptance and inclusion. I feel grateful to work at a place that embraces us as individuals and sees the incredible value that diversity brings to business.”
Our high-performance culture is driven by excellence in diversity and inclusion, and we take pride in being supporters and advocates to our LGBTQ+ workforce by fostering a culture of belonging. Sempra is honored to be named a “Best Place to Work for LGBTQ Equality” by the Human Rights Campaign, for receiving a perfect score on the organization's Corporate Equality Index (CEI) for the 14th consecutive year.
Across our family of companies, we are happy to affirm and support our LGBTQIA+ employees and believe that celebrating our differences not only helps make us a stronger company, it helps us better serve and represent the communities where we operate.
See more great photos from Pride 2022 on our Instagram, then keep exploring our long-standing commitment to diversity and inclusion.
Since debuting on the New York Stock Exchange nearly 25 years ago, Sempra has demonstrated the ability to deliver long-term sustainable value to shareholders through strategic energy infrastructure investments. On July 20, Jeffrey W. Martin, Sempra’s chairman and chief executive officer, visited the floor of the stock exchange as a special guest on CNBC to celebrate the debut of Mad Money’s new studio and to discuss an evolving set of investment opportunities in the energy space.
Jim Cramer, host of Mad Money, and Martin discussed the important role of U.S. energy companies in supporting future economic growth, among other topics. They also talked about the expected need to more than double domestic exports of liquefied natural gas (LNG) by the end of the decade. The build-out of new LNG facilities is critical to assisting America’s trading partners in Europe and Asia as they look to improve their energy security and transition to lower carbon energy sources.
“Over time, we think the energy grid will expand and benefit from innovation and new technologies,” said Martin. “At the end of the day, it is all about competition and that is one of the reasons we are so bullish on the U.S. We have the most skilled workforce in the world and combined with the depth of our capital markets and commitment to innovation, we envision America continuing to extend its leadership position in the world.”
In part, future economic growth is expected to come from the continued integration of the U.S. market with the economies of Canada and Mexico.
“There is an intersection of opportunity right now where there will be a reshoring of industries from Asia back to North America,” said Martin. This translates into significant economic opportunity for the U.S., Canada and Mexico.
Martin further discussed the strong growth potential in the company’s core utility platforms.
“California is the fifth largest economy in the world, Texas is the ninth,” said Martin. “These states are also the biggest energy markets in the U.S. and Sempra has been fortunate to build leading utility franchises in both markets with the goal of ensuring energy is more abundant, increasingly clean and — just as importantly — affordable.”
This article 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 article. 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 article, forward-looking statements can be identified by words such as "believes," "expects," "intends," "anticipates," "plans," "estimates," "projects," "forecasts," "should," "could," "would," "will," "confident," "may," "can," "potential," "possible," "proposed," "in process," "under construction," "in development," "opportunity," "target," "outlook," "maintain," "continue," "goal," "aim," "commit," 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: California wildfires, including the risks that we may be found liable for damages regardless of fault and that we may not be able to recover all or a substantial portion of costs from insurance, the wildfire fund established by California Assembly Bill 1054, in rates from customers or a combination thereof; 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), Comisión Reguladora de Energía, U.S. Department of Energy, U.S. Federal Energy Regulatory Commission, Public Utility Commission of Texas, and other regulatory and governmental bodies and (ii) states, counties, cities and other jurisdictions in the U.S., Mexico and other countries in which we do business; the success of business development efforts, construction projects and acquisitions and divestitures, including risks in (i) the ability to make a final investment decision, (ii) completing construction projects or other transactions on schedule and budget, (iii) the ability to realize anticipated benefits from any of these efforts if completed, and (iv) obtaining the consent or approval of partners or other third parties, including governmental entities and regulatory bodies; the resolution of civil and criminal litigation, regulatory inquiries, investigations and proceedings, arbitrations, and property disputes, including those related to the natural gas leak at Southern California Gas Company's (SoCalGas) Aliso Canyon natural gas storage facility; changes to laws, including changes to certain of Mexico's laws and rules that impact energy supplier permitting, energy contract rates, the electricity industry generally and the ability to import, export, transport and store hydrocarbons; cybersecurity threats, including by state and state-sponsored actors, to the energy grid, storage and pipeline infrastructure, information and systems used to operate our businesses, and confidentiality of our proprietary information and personal information of our customers and employees, including ransomware attacks on our systems and the systems of third-party vendors and other parties with which we conduct business, all of which have become more pronounced due to recent geopolitical events and other uncertainties, such as the war in Ukraine; failure of foreign governments and state-owned entities to honor their contracts and commitments; 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 debt service obligations; the impact of energy and climate policies, legislation, rulemaking and disclosures, as well as related goals set and actions taken by companies in our industry, including actions to reduce or eliminate reliance on natural gas generally and any deterioration of or increased uncertainty in the political or regulatory environment for California natural gas distribution companies and the risk of nonrecovery for stranded assets; the pace of the development and adoption of new technologies in the energy sector, including those designed to support governmental and private party energy and climate goals, and our ability to timely and economically incorporate them into our business; weather, natural disasters, pandemics, accidents, equipment failures, explosions, acts of terrorism, information system outages or other events that disrupt our operations, damage our facilities and systems, cause the release of harmful materials, cause fires or subject us to liability for property damage or personal injuries, fines and penalties, some of which may not be covered by insurance, 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 electric power and natural gas and natural gas storage capacity, including disruptions caused by failures in the transmission grid or limitations on the withdrawal of natural gas from storage facilities; the impact of the COVID-19 pandemic, including potential vaccination mandates, on capital projects, regulatory approvals and the execution of our operations; the impact at San Diego Gas & Electric Company (SDG&E) on competitive customer rates and reliability due to the growth in distributed and local power generation, including from departing retail load resulting from customers transferring to Community Choice Aggregation and Direct Access, and the risk of nonrecovery for stranded assets and contractual obligations; Oncor Electric Delivery Company LLC's (Oncor) ability to eliminate or reduce its quarterly dividends due to regulatory and governance requirements and commitments, including by actions of Oncor's independent directors or a minority member director; volatility in foreign currency exchange, inflation and interest rates and commodity prices, including inflationary pressures in the U.S., and our ability to effectively hedge these risks and with respect to inflation and interest rates, the impact on SDG&E's and SoCalGas' cost of capital and the affordability of customer rates; changes in tax and trade policies, laws and regulations, including tariffs, revisions to international trade agreements and sanctions, such as those that have been imposed and that may be imposed in the future in connection with the war in Ukraine, which may increase our costs, reduce our competitiveness, impact our ability to do business with certain current or potential counterparties, or impair our ability to resolve trade disputes; 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 Sempra 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, and on Sempra's website, www.sempra.com. Investors should not rely unduly on any forward-looking statements.
Sempra Infrastructure, Sempra Texas, Sempra Texas Utilities, Oncor and Infraestructura Energética Nova, S.A.P.I. de C.V. (IEnova) are not the same companies as the California utilities, SDG&E or SoCalGas, and Sempra Infrastructure, Sempra Texas, Sempra Texas Utilities, Oncor and IEnova are not regulated by the CPUC.
More than one-tenth of the U.S. population relies on the Sempra companies for energy to power their lives. Our 20,000 employees build and operate electric and natural gas infrastructure with an unwavering focus on safety for our workforce, customers and the communities we serve. Here are eight examples of safety excellence across the Sempra enterprise:
Over 37,000 power poles in SDG&E’s high-fire threat district inspected by drones.
3,000 miles of transmission lines evaluated for vegetation encroachment using Light Detection and Ranging (LiDAR) technology by Oncor Electric Delivery.
Over 160 Super Safe Kids safety shows conducted by Oncor to help Texas kids stay safe around electricity.
89 million hours worked without an occupational injury or illness involving days away from work during construction of Cameron LNG, earning a Perfect Record Award from the National Safety Council.
100% of Sempra Infrastructure’s critical employees trained in emergency management response.
100% of Southern California Gas Company’s approved pipeline construction contractors required to have a formal safety management system program, starting 2023.
237 pipeline safety and awareness presentations made by SoCalGas to the California Governor’s Office of Emergency Services and personnel at counties, cities and park and recreation departments in 2021.
As part of our commitment to achieve world-class safety, we aim to train 100% of critical employees in emergency management response, to participate in emergency planning processes in 100% of the communities we serve, and to have zero employee and contractor fatalities each year. Learn more about our safety approach and work to advance a better future for all in our interactive 2021 corporate sustainability report.
Last month, two deserving U.S. Army veterans stepped through the doors of their new Texas homes made possible in part with a supporting $50,000 grant from Sempra to Operation Homefront, a national nonprofit whose mission is to build strong, stable and secure military families. Operation Homefront’s Permanent Homes for Veterans program, along with residential homebuilder PulteGroup’s Built to Honor program, constructed the Houston-area suburban homes to recognize the sacrifices each family has made for our country while helping enable and empower these veterans for what comes next.
A day of celebration
U.S. Army veterans Kisha Dorsey and James Ford were joined by family members, friends and new neighbors, as well as representatives from other key organizations instrumental in making the dream of homeownership a reality. Both Dorsey and Ford explained how much they have been looking forward to the ribbon-cutting event since the initial groundbreaking in January, and shared their excitement about being new homeowners.
Kelly Prasser, Sempra Infrastructure senior manager of external affairs, represented Sempra at the event, providing remarks before both families were introduced on the podium for the special presentation of home ownership.
“Supporting Operation Homefront gives us the opportunity to live our values and to give back to veterans and their families who have made such great sacrifices for all of us, and we can’t thank you enough for your service,” Prasser said during her remarks. “Across our family of companies, we employ more than 800 veterans, and our company is stronger because of their contributions and commitment every day.”
Both Dorsey and Ford were surprised with a tree seedling from the Muster Oak, a historic Texas tree, on behalf of Harris County Commissioner Jack Cagle and the Houston parks department, in gratitude for their service to our nation. The Muster Oak has historical significance in Texas, as these trees would mark a meeting place in Fayette County where men and women would gather before departing for war. The tree was particularly special to Ford, who is planning to pursue a Ph.D. in ecology and evolutionary biology at Rice University in Houston beginning this year. Dorsey expressed her gratitude for the gift as well and is looking forward to seeing it grow as her family enjoys their new yard and home.
Championing people by supporting veterans
Dorsey and Ford are the recipients of the 72nd and 73rd Built to Honor homes and are two of more than 700 veterans Operation Homefront has helped through its Permanent Homes for Veterans program. Since 2020, Sempra has donated over $70,000 to Operation Homefront and is honored to champion people and strengthen our Texas communities.
Sustainability and safety are interconnected, and at Sempra we understand that our business resides at the intersection of these two important elements of a modern energy ecosystem. Safe and reliable energy infrastructure empowers communities around the world. June is National Safety Month and a chance to recognize and continually innovate our safety approach, which underpins how we deliver energy to 40 million consumers. To help advance our mission to be North America’s premier energy infrastructure company and coordinate with reputable global standards, Sempra strives to align our company’s safety approach with Sustainable Development Goals (SDGs) adopted by the United Nations (UN).
Read on to find out how three of the SDGs closely align with our company’s safety focus:
UN SDG 3 - good health and wellbeing
The third United Nations SDG is focused on ensuring healthy lives and promoting wellbeing for all. Sempra helps advance this goal by building new transmission and distribution infrastructure that enables more renewable energy with support from cleaner fuels and is designed to be increasingly resistant to the effects of a changing climate, such as wildfires, sea level rise and increasing temperatures.
Infrastructure resiliency can help communities stay safe and healthy by keeping essential services, including hospitals and grocery stores, powered. For example, San Diego Gas & Electric Company (SDG&E) is deploying micro-grid technology to help maintain power for critical facilities and communities that are often subject to public safety power shut offs during extreme weather events.
UN SDG 8 - decent work and economic growth
The eighth SDG is focused on promoting inclusive and sustainable economic growth, full and productive employment, and decent work for all. Our value to champion people and our unwavering commitment to safety for our workforce and for the communities we serve aligns with this goal. Sempra supports the protection of labor rights and the promotion of safe and secure working environments for all workers and strives to create a culture of safety where employees feel protected physically and psychologically. Field employees at Sempra operating companies are trained to ‘stop the job’ during situations that are potentially hazardous to workers, the public, our equipment, or the environment. This safety-focused culture helped decrease our company-wide employee recordable incident rate in 2021.
UN SDG 11 - sustainable cities and communities
The eleventh SDG aims to make cities and human settlements inclusive, safe, resilient, and sustainable. This goal aligns with our investment in cleaner transportation and our focus on reducing emissions across our enterprise. Transportation is a major source of greenhouse gas emissions and air pollution in California. Southern California Gas Company (SoCalGas) and SDG&E are transforming their fleets to 100% zero-emission vehicles. SoCalGas is advancing projects to explore zero-emission vehicles for the transit and heavy-duty truck industry, such as hydrogen fuel cell technology. Meanwhile, SDG&E has built 3,260 electric vehicle charging stations and has thousands more planned.
In every corner of our business, we’ve integrated safety for our employees and communities alike. Learn more about our safety culture and how our business approach supports the UN Sustainable Development Goals in our latest Corporate Sustainability Report.
Across the Sempra family of companies, we are committed to serving the communities where we own and operate facilities. One example is Energía Costa Azul (ECA) LNG, located north of Ensenada in Baja California, Mexico.
In 2020, ECA LNG Phase 1, currently under construction, became the only LNG export project in the world to reach a final investment decision. Since then, and in accordance with our focus on energy security and sustainability, a budget of 500 million pesos was allocated to a comprehensive social investment program defined in coordination with community leaders, social organizations, and local authorities and then voted on in a public consultation. We expect the program to be fully implemented by 2024.
Our commitment to our communities
In 2021, the program benefitted approximately 150,000 residents through important contributions including the donation of equipment and the construction and rehabilitation of public facilities. These contributions included:
Road infrastructure improvements;
Construction and upgrades of recreation and sports areas;
Public safety facility enhancements;
Equipment to improve public services;
Vehicles and uniforms for police and firefighters;
Rehabilitation or construction of three different local parks; and
Paving of multiple streets.
At Sempra, we remain steadfast on our mission to be North America’s premier energy infrastructure company. Our values — do the right thing, champion people, shape the future — are at the heart of everything we do, advancing a better future for all.
As Vice President of Talent Management for Sempra, Deborah Martin is responsible for helping advance Sempra’s high-performance culture. Maintaining the company’s reputation as a top workplace is one of her highest priorities, working with departments across our company to recruit, maintain and develop top-tier talent to advance the global energy transition. Learn more about Martin in this Q&A:
As Chairman and Chief Executive Officer of Sempra, 
When I look back on my time in the Army, there are two general takeaways:
