Sempra Energy (stock ticker: SRE) is a holding company with energy infrastructure investments in North America. Their businesses invest in, develop and operate energy infrastructure and provide electric and gas services to customers through regulated public utilities. Sempra is headquartered in San Diego, California.
SRE's Role in Drawdown
Sempra has five reportable segments, two of which are regulated public utilities.
Their SDG&E business is a regulated public utility that provides electric and gas services to ~3.5 million customers in Souther California. Their SolCalGas is also a regulated public utility that owns and operates natural gas distribution, transmission and storage systems that supplies natural gas to a population of ~22 million in Southern and central California.
Their Sempra Texas Utilities business is comprised of their equity method investments in a couple of holding companies, and their Sempra Mexico segment includes the operating companies of their subsidiary, IEnova, as well as certain holding companies and risk management activities. Lastly, their Sempra LNG business develops, builds, operates and invests in natural gas liquefaction export facilities, including natural gas pipelines and infrastructure.
In all, Sempra passes the Climate Index criteria because they produce 52% of their energy from renewables and 48% from fossil fuels. It has no coal power generation.
SRE: What We Like
We're impressed by Sempra's thorough sustainability disclosure. Their sustainability report includes data on scope 1, 2 and 3 emissions - something that very few companies manage to do.
On top of their disclosures, Sempra has also set net-zero goals (p. 22) for the years 2030 and 2050.Some notable targets include:
Reducing their California utility and Mexico non-liquified natural gas GHG emissions intensity 20% compared to their 2020 baseline
Operate their liquified natural gas infrastructure at a GHG emissions intensity 20% less than their 2020 baseline
Aiming to reduce scope 3 emissions by 2030 through a variety of stratefies
Aiming to achieve net-zero scope 1, 2 and 3 emissions by 2050
Also commendable is the fact that Sempra explicitly expects (p. 4) their suppliers to track environmental metrics, reduce greenhouse gas emissions, restore land, minimize energy and water use, reduce waste, and reuse and recycle materials. Such a detailed list of expectations for suppliers is rare, and it's key to making Sempra's entire value chain more green.