Pacific Gas & Electric focuses on corporate social responsibility as a core value and strategic business practice. It summarizes CSR initiatives that create shared value by aligning philanthropic and environmental programs with business objectives. These include partnering with community organizations, leveraging employee volunteerism, and investing in signature programs around workforce development, environmental leadership, and emergency response to benefit stakeholders and California communities.

1. Corporate Social Responsibility
at Pacific Gas & Electric Company
Mills College- “It Pays to be Nice”
April 2009

2. In these economic times, companies face many challenges
in staying successful
Compliance Risk Mitigation Cost Savings Marketing / Brand
Reputation with Customers Operational Excellence Financial Metrics
Long-term Strategy
Rewarded Shareholders
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3. A View Back in Time
• The business of business is business
• Giving Back Programs disassociated from business
objectives
– Eliminate appearance of:
• conflicts
• self-interest
• self-promotion
• Changing business world, e.g. competitiveness,
customer expectations
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4. Prevailing Wisdom
• “…focus has been on the tension between business
and society rather than on their interdependence.”
• “The result is often a hodgepodge of uncoordinated
CSR and philanthropic activities disconnected form the
company’s strategy that neither make any meaningful
social impact nor strengthen the firm’s long-term
competitiveness.”
Strategy and Society: The Link Between Competitive Advantage and Corporate
Social Responsibility
by Michael E. Porter and Mark R. Kramer
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5. CSR is becoming more important in how stakeholders
value the long-term prospects of companies.
Source: Sustainable Asset Management, November 2008
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6. How markets compare and value CSR initiatives will be
critical to its success within a company.
CSR =
CSR =
Competitive
Being Good
Advantage
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7. PG&E focuses on CSR as one of its core values
The Corporate Responsibility Report highlights some of the ways
we are striving to fulfill our global responsibilities and meet
our ethical obligations. This accountability starts with our 15
million customers, nearly 20,000 employees, investors,
regulators, partners and communities within California. It
ultimately extends to everyone who shares PG&E’s interest in
ensuring a clean, secure energy future.
Peter A. Darbee
Chairman of the Board, CEO and President,
PG&E Corporation
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8. OUR VISION The
leading
utility in the
United States
Delighted Customers
OUR GOALS
Energized Employees
Rewarded Shareholders
Environmental Leadership
Customer Focus
OUR STRATEGIES
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
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9. What We Do
• From Earth Day to Change a
Light Campaign…
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10. Mission and Key Strategies
To be the leading corporate citizen in the diverse
communities we serve by:
– Sharing our energy expertise and resources to promote solutions
for the communities we serve
– Expanding our community partnerships and philanthropic initiatives
to create more environmentally sustainable communities
– Engaging the commitment and involvement of our employees and
retirees in the intersection of the needs of our communities and
PG&E’s business interests
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11. How?
• Clear, meaningful demonstration of commitment of the
company’s values
– Environmental leadership
• Community engagement, particularly with underserved
communities
– Issues important to the community; business issues of
importance to the company
• Employee engagement—”energized” employees and retirees
who are our ambassadors
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12. Focus Areas for Community Leadership
√
Company priority
Workforce development
√
Community need
Environmental leadership
√
Weather emergency Strategic, territory-wide impact
support
√
Outreach to both diverse Engages diverse communities
and underserved
√
communities Ability to leverage resources
√
Marketing/PR opportunities
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13. Community Relations
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14. Community Engagement
• Freeze hits the Central Valley 1/11/07
• Governor declares state of emergency
– $1 billion dollar impact to growers
– 12,000 farm and packinghouse workers to lose jobs
• PG&E Relief Plan includes donations to food banks, increase in
REACH Plus credit, and community assistance days
• Community Relations takes the lead in planning Community
Assistance Days
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15. Orange Cove Community Outreach Day
• Community Partners
– City of Orange Cove provides facilities and community outreach
– EOC provides bilingual volunteers and on-site LIHEAP assistance
– Fresno Food Bank provides groceries on-site
• Results
– Over 500 households participate
– 324 REACH Plus applications completed; $46,973 awarded in credits to
customers
– 86 CARE applications completed
– Media coverage by KFSN, KGPE, Univision, freelance reporter working for
NPR
– 15-20 PG&E energized volunteers; employee food drive generates about 1,000
food items
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16. Volunteer Program
www.pgevolunteers.com
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17. Volunteer Program Components
Volunteer Events
Company-sponsored: Signature events. Staff time and company
resources are utilized to plan, promote and manage these strategically
aligned volunteer activities. Events include (but not limited to):
Earth Day
Habitat for Humanity
Junior Achievement
Red Cross
Salvation Army
Employee or retiree sponsored: Events proposed and managed by
an employee's or retiree's, including fundraisers not necessarily aligned
with business objectives. Supported only as volunteer program staff
assistance and company resources are available. Events aligned with
5Es will have the highest priority for these resources.
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18. Volunteer Program Components
Program Initiatives
Executive Nonprofit Board Participation
Team Building Events
Recognition of Volunteerism
Frederick W. Mielke Awards
Enhanced Community Service Awards
Jefferson Awards
New Employee Orientation
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19. PG&E’s employees volunteer throughout the service area
In 2008, our employees 2008 marked our seventh consecutive
volunteered more than 1,730 hours Earth Day partnership with the
at food banks throughout the California State Parks Foundation
service territory
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20. Campaign for the Community
MORE THAN GIVING…
GIVING BACK

21. RESULTS!
2007 Increase
2008
Total $’s $3,889,649 7.8%
$4,100,000
Donors 7699 7079 8.7%
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22. Philanthropy
A Financial Investment in Our
Communities

23. CSR = Philanthropy?
Philanthropy = CSR?
• Philanthropy is not a standalone issue
• Critical element of how a company demonstrates its
corporate citizenship
• Maximize business and societal benefits through
alignment of philanthropy programs with business
strategy
• Find the shared value
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24. Shift Happens
• Shifts:
– Metrics
– Results and social impact orientation
– Refocused giving
– Visibility and maximizing corporate brand
• Reputation
• Competitive Edge
• Stakeholder engagement
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25. PG&E Environmental Program Strategy
• Signature Programs
• “Green” grants to community partners
• Leveraging opportunities for other utility programs,
e.g. energy efficiency, low income programs, etc.
• Volunteer opportunities as part of the grantmaking
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26. Signature Programs
• Existing Programs
– Solar Schools- largest program of its kind:100
schools, 2000 teachers trained, 100,000 students
benefiting
– Solar Habitat- an exclusive partnership
– PowerPathway™
• Programs Under Consideration
– High School Academy Program
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27. PG&E’s 2008 Charitable Spend: $18.7 Million
Benchmarking Charitable Contributions
2008 Charitable Contributions
(% of Pre-Tax Earnings from Operations)
Breakout
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28. PG&E Charitable Spending History
19.7
20
18.7
18.3
18
16 14.7
14
illions of Dollars
11.9
12
9.4 9.1 9.1
10 8.7 8.4 8.6
7.5
8 6.7
M
6
3.9 3.6
2.9
4
2
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Company Spending Foundation Spending
Total Spending Campaign for the Community
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29. Community Reach: Santa Cruz Predatory Bird Research Group
Mission of Santa Cruz Predatory Bird Research Group:
To use the example of the Peregrine Falcon recovery as inspiration for tackling
today’s environmental challenges
PG&E’s Part:
• For several years, Peregrine Falcons had used PG&E’s San Francisco
downtown headquarters as a nesting spot
• In 2005, PG&E partnered with the UCSC PBRG to build nest boxes and install
web-cameras to document the peregrines’ life cycle
• In 2009 the female peregrine laid four eggs; we hope that each will be fertile
• UCSC scientists band a leg of each new peregrine chick to trace its
development
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30. Community Reach: National Parks Foundation
• Lead sponsor of NPF’s “Parks Climate
Challenge”
– High school students from underserved
communities will learn about climate
change at North Cascades National Park
• Students selected from high schools in the
Bay Area, Seattle, Colorado, Chicago, and
Washington, DC
• NPF will collaborate to produce an
“Electronic Field Trip”
• Kick-off event in Washington, DC
– Local high school students participate in
a Climate Change-related service project
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31. Habitat Build in Biloxi Contest
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35. BUILD A GREAT COMPANY
THEN HELP BUILD A
GREAT WORLD

36. Questions?
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