This 2022 Environmental, Social, and Governance (ESG) Report and ESG Analyst Download (collectively the “2022 ESG Disclosures”) contain forward-looking statements within the meaning established by the Private Securities Litigation Reform Act of 1995. The forward-looking statements in the 2022 ESG Disclosures include the Company’s objectives, goals, targets, progress, or expectations with respect to ESG, sustainability, and corporate social responsibility matters, and business risks, opportunities, and plans. Because they are aspirational and are based upon currently available information, expectations, and projections, they are subject to various risks and uncertainties, including limitations on our ability to make ESG investments without the support of our regulators, and actual results may differ. Because of this, the Company advises all interested parties to carefully read and understand the Company’s disclosure on risks and uncertainties found in Forms 10-K, 10-Q, and other reports filed with the Securities and Exchange Commission (“SEC”). The Company undertakes no obligation to update any forward-looking or other statements, whether as a result of new information, future events, or otherwise, and notwithstanding any historical practice of doing so. The Company may determine to adjust any objectives, goals, and targets or establish new ones to reflect changes in our business.
Historical, current, and forward-looking ESG-related statements and data in the 2022 ESG Disclosures may be based on standards for measuring progress that are still developing, controls and processes that continue to evolve, and assumptions that are subject to change in the future.
The information included in, and any issues identified as material for purposes of, the 2022 ESG Disclosures may not be considered material for SEC reporting purposes, and the use of the term “material” in the 2022 ESG Disclosures is distinct from, and should not be confused with, such term as defined for SEC reporting purposes.
Due to the inherent uncertainty and limitations in measuring greenhouse gas (GHG) emissions under the calculation methodologies used in the preparation of such data, all GHG emissions or references to GHG emissions in the ESG Disclosures are estimates. There may also be differences in the manner that third parties calculate or report GHG emissions compared to the Company, which means that third party data or methodologies may not be comparable to our data or methodologies.
Website references and hyperlinks throughout the 2022 ESG Disclosures are provided for convenience only, and the content on the referenced third-party websites is not incorporated by reference into the 2022 ESG Disclosures, nor does it constitute a part of the 2022 ESG Disclosures. The Company assumes no liability for the content contained on the referenced third-party references.
Letter from the CEO
For us at California Water Service Group, “ESG” is shorthand for doing the right thing, a value that has been foundational to this Company since its inception nearly a century ago. These three little letters represent our commitment to identifying and mitigating risks to the business; taking care of people and the planet; holding ourselves to the highest ethical standards; and enhancing the quality of life for our stakeholders by being the best and most responsible water and wastewater utility we can be.
It is a shame that the specter of politics has recently and increasingly cast a shadow over the good work being done by many businesses in the name of ESG. As I’ve said to employees throughout the company, our ESG program is not politically motivated, nor is it an excursion from our proven business strategy. We invested time and resources into conducting an ESG materiality assessment because we are focusing on the ESG topics that are pertinent to us and vital to the long-term sustainability of our business. I’m pleased to report that we continued to make good progress in these key areas during 2022, including:
- We completed an updated inventory of our greenhouse gas emissions in accordance with the Greenhouse Gas Protocol and committed to setting absolute, science-based Scope 1 and Scope 2 emissions reduction targets in 2024.
- We invested approximately $328 million in infrastructure to improve resiliency, water quality, and sustainability.
- We invested more than $6.1 million in water conservation rebates and programs for customers, helping them save approximately 180 million gallons.
- We completed a fleet study to identify optimal replacement cycles and opportunities to downsize vehicles.
- We cleared fire breaks around key facilities to minimize risk of wildfire damage and installed additional backup generators to enable us to operate during power interruptions.
- We developed and refined contingency plans for operating our water treatment plants impacted by climate change-driven events, including fires, floods, and droughts.
- We hosted 20 Emergency Operations Center training engagements in collaboration with communities across our service areas, better preparing us and our communities for enhanced coordination and resilience during emergency events.
- We contributed more than $1.58 million to charitable organizations working to enhance the quality of life in our communities.
- We hosted seven events in our communities to help low-income customers take advantage of our rate assistance and other programs.
- We provided unconscious bias training to 95% of our employees.
- We conducted surveys and focus groups to measure employee engagement, and developed a more formal and robust employee communication strategy.
Moving forward, the Board of Directors and I are committed to continuing our efforts to set goals, make progress, and communicate transparently on our ESG program. Sadly, there has been debate about the benefits of “ESG” and the long-term benefits for society. Despite this, we remain focused on our sustainability, citizenship, and corporate responsibility, because we believe that doing so is in the best interests of our customers, communities, employees, and stockholders.
Martin A. Kropelnicki,
President & Chief Executive Officer
California Water Service Group (Group, the Company, we, our or us) serves more than 2 million people in over 100 communities and is headquartered in San Jose, California. We are a leading provider of water and wastewater services and the third-largest publicly traded water utility in the United States (NYSE: CWT).
Group includes seven operating subsidiaries. California Water Service Company (Cal Water), New Mexico Water Service Company (New Mexico Water), Washington Water Service Company (Washington Water), and Hawaii Water Service Company, Inc. (Hawaii Water) are regulated public utilities that also provide certain non-regulated services. CWS Utility Services and HWS Utility Services LLC (collectively referred to as Utility Services) maintain non-utility property and provide non-regulated services to private companies and municipalities outside of California. Our seventh subsidiary, TWSC, Inc. (Texas Water), is a majority shareholder of BVRT Utility Holding Company (BVRT), which owns and develops wastewater and water utilities in Texas. The majority of our business consists of the production, purchase, storage, treatment, testing, distribution, and sale of water for domestic, industrial, public, and irrigation uses—and includes the provision of domestic and municipal fire protection services.Other services include wastewater collection and treatment. We also offer non-regulated services, such as water system operation, billing, and meter reading services under agreements with municipalities and other private companies. Additional non-regulated operations include the lease of communication antenna sites, lab services, and the promotion of other non-regulated services. Our 10-K includes more information about our operations and organization.
About This Report
Our 2022 Environmental, Social, and Governance (ESG) Report discloses activities from January 1 to December 31, 2022, representing our sixth year of ESG reporting. We align our disclosures with the Sustainability Accounting Standards Board (SASB) Water Utilities and Services Industry Standard, leverage the guidance of the Task Force on Climate-related Financial Disclosures (TCFD), and reference the 2021 Global Reporting Initiative (GRI) Universal Standards. Our 2022 ESG Analyst Download provides key performance metrics for our reporting topics.
Data and disclosures within this report cover all subsidiaries, unless otherwise stated. Since Texas Water does not have full ownership of BVRT, Texas operations are not included in our reporting. In this report, the terms “ESG” and “sustainability” are used interchangeably to indicate environmental, social, and governance practices that demonstrate our commitment and responsibility to managing our material issues. For additional information about this report, please contact our ESG Program Manager at firstname.lastname@example.org.
To enhance the quality of life for our customers, communities, employees, and stockholders
Our Core Values
- Respect and Collaboration
- Corporate Citizenship