PG&E Corporation’s environmental policies, management systems and programs are designed to ensure that our operations not only meet all applicable environmental requirements, but also drive a process of continuous improvement that, wherever possible, seeks to elevate our performance above and beyond the legal and regulatory requirements.

Our experience shows that our commitment to continuous improvement not only improves performance, but also strengthens our competitive position within our industry by driving innovation and raising the bar for other companies. In many aspects of our operations, this process is already enabling us to perform at levels beyond today’s legal and regulatory requirements. In some cases, through the public policy process or through collaborative efforts within our industry, we are challenging others to achieve the same higher standards.

These accomplishments spring from the deliberate process we have put in place. This process includes developing and articulating clearly our environmental policies to our employees, contractors and communities; instituting environmental management systems and programs that meet our policy objectives; auditing our performance to ensure that objectives are met; and identifying ways to move beyond basic compliance. This process and commitment extends to the ongoing improvement of the policies, management systems and programs themselves, which we continually review and refine.

PG&E CORPORATION’S ENVIRONMENTAL POLICY

PG&E Corporation’s formal environmental policy clearly states the company’s environmental performance objectives. The policy applies to all of the company’s operations, and reflects the commitment and expectations of senior management. The policy is the foundation for the programs, initiatives and activities described in this report, all of which support the policy’s directives to achieve compliance, foster environmental excellence, manage risks and encourage innovative solutions.

Environmental Policy Statement

PG&E Corporation is committed to being an environmental leader by providing safe, economical, and reliable products and services in a responsible and environmentally sensitive manner. It is our policy to:

• Comply fully with the letter and spirit of applicable environmental laws and regulations, and seek innovative ways to exceed current standards of environmental protection, while achieving success in competitive markets;
• Develop standards and programs that foster environmental excellence as a contributor to shareholder value, and incorporate such policies into business plans;
• Develop and implement a risk-based audit plan that ensures that periodic independent reviews of all aspects of environmental performance are conducted; and
• Actively engage the talents, dedication and commitment of our employees by encouraging them to contribute innovative and thoughtful solutions for improving environmental performance.

More information about PG&E Corporation's environmental policies and practices, and our environmental justice policy, is available on our website at www.pgecorp.com.