ELT Briefing on First Wave of Business Transformation Initiatives

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ELT Briefing on First Wave of Business Transformation Initiatives

  1. 1. Green Supply Chain Gun Shim Senior Director, Supply Chain
  2. 2. Why are we here today? OUR VISION The leading utility in the United States OUR GOALS Delighted Customers Energized Employees Rewarded Shareholders Environmental Leadership OUR STRATEGIES Customer Focus Operational Excellence • We act with integrity and communicate honestly OUR VALUES and openly • We are passionate about meeting our customers’ needs and delivering for our shareholders • We are accountable for all of our own actions: these include safety, protecting the environment, and supporting our communities • We work together as a team and are committed to excellence and innovation • We respect each other and celebrate our diversity SUPPLY CHAIN STRATEGIES – TIED TO COMPANY AND SHARED SERVICES PRIORITIES People Envt Strategy Service Supplier Cost Operational Safety Excellence Excellence Development Excellence Diversity Excellence Excellence 2 GREEN SUPPLY CHAIN PROGRAM
  3. 3. • The Green Supply Chain Program will link up the company and our preferred suppliers to explore and engage in environmental supply chain To work with our suppliers to adopt more environmental and sustainable business practices To green PG&E’s internal supply chain and business operations To reduce the adverse environmental impact of the company's purchasing decisions • Green “CoOps” are the five main objectives for supplier participation in the Green Supply Chain Program Commitment – to be more environmentally responsible Outreach – to educate others about environmental responsibility Operations – to reduce environmental impacts Products and Sservices – to purchase or produce green Supplier Collaboration – to engage in environmental partnerships What is the Green Supply Chain Program? 3
  4. 4. Supplier Successes and Innovation As a participant in the Green Supply Chain Program, suppliers are challenged to develop a collaborative innovative green project which ultimately helps PG&E and the supplier reduce the overall carbon footprint of the product or service purchased. • Partnered with Service & Sales to conduct energy audit at Fong Brother’s facility Saved 300+ kWh and $50K savings/yr GREEN SUPPLY CHAIN PROGRAM • Sponsored McFarland Cascade through EPA’s GSN Lean and Clean Review Saved over 2 million gallons of water by reusing for dust control • Implemented green criteria in scorecard with Okonite to encourage green innovation Redesigned cable for SF reliability project to prevent retrenching of 10 miles of road • Awarded first Green Supplier of the Year award to Southwire Converted 31% fleet to hybrid and reduced 95% lead additives from all products 4
  5. 5. Integration, Lessons Learned & Employee Awareness Proactive employee engagement ensures the success of the Green Supply Chain Program. By integrating employees into the Program, we are able to educate and create awareness around the changing environmental landscape relative to the utility supply chain. • Sourcing Green evaluation criteria in RFPs Supplier scorecards • Supply Chain Operations New lighting retrofits at warehouses • Line of Business Green Champions Sustainable remediation Removal of desktop printers 5
  6. 6. Stakeholders and Customers The Green Supply Chain Program’s initiatives can now be recognized by our customers and other stakeholders through various channels of communication. These initiatives are examples of how PG&E is “walking the talk” when it comes to environmental leadership. Examples of Initiatives with a Customer Focus • 100% post-consumer-waste logos on PG&E business cards and stationary • 13 million customer billing envelopes sent out monthly are now produced via Green-E certified wind-power and also contain a biodegradable window film • Green Supply Chain Program highlighted on a one-page spread in the 2008 (and 6 2009) CRR report
  7. 7. Partnerships and Recognitions Over the last two years, the Green Supply Chain Program has been recognized as a leader in the utility industry. Key initiatives from the Program illustrate PG&E’s proactive and innovative efforts to go above and beyond business expectations. • Co-founded the Electric Utility Industry Sustainable Supply Chain Alliance Lead an inter-utility category team to define and develop environmental best practices for utility wood poles Partnered with EEI and EPA’s Green Suppliers Network • Spoken and recognized at multiple utility and supply chain conferences across the nation in 2008 and 2009 7
  8. 8. Green Supply Chain Program’s Five Year Strategy The Green Supply Chain Program has laid out its five year strategy with the intent of becoming a best-in-class program across industries, creating a domino effect to influence PG&E’s employees, customers, suppliers and beyond. To be recognized as a best-in-class Green Supply Green Supply Chain Program across industries Chain Sustainable Report carbon footprint of segments within the utility supply chain 2013 Solutions 2012 Track carbon footprint of specific utility products 2011 Monitor and quantify results of innovative green projects with suppliers 2010 Create database of suppliers who provide green utility products and services 2009 Recognized as a leading Green Supply Chain 8 Program in the utility industry
  9. 9. Q&A Green Supply Chain Sustainable Solutions Greensupplychain@pge.com 9

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