California Water Service Group Bolsters Environmental, Social, and Governance Program, Reaffirms Commitment to Safe and Reliable Water Supply for Communities

Rhea-AI Summary

California Water Service Group (NYSE: CWT) has released its 2023 ESG Report, showcasing significant achievements and ongoing efforts in its environmental, social, and governance (ESG) program. Key highlights include a commitment to reduce greenhouse gas emissions by 63% by 2035, $383.7 million invested in infrastructure, and saving nearly 95 million gallons of water annually through conservation programs. The company achieved 100% compliance with water quality standards, secured $83 million in funding for customer arrearages, and donated over $1.5 million to community organizations. Workforce engagement efforts included $728,000 invested in training and a doubling of veteran hires. Governance achievements feature a diverse Board of Directors and 27.2% of net procurement with diverse suppliers.

Positive

• Commitment to reducing Scope 1 and 2 GHG emissions by 63% by 2035.
• Invested $383.7 million in infrastructure development.
• Saved close to 95 million gallons of water annually through conservation programs.
• Achieved 100% compliance with federal and state water quality standards.
• Secured $83 million in funding to relieve customer arrearages.
• Donated more than $1.5 million to local community organizations.
• Invested $728,000 in employee training and continued education.
• Doubled veteran hiring rate to 8%.
• Awarded $10,000 in college scholarships to employees' children.
• Maintained an engaged and diverse Board of Directors with 36% gender diversity and 18% ethnic diversity.
• Spent 27.2% of net procurement with diverse suppliers.

Negative

• None.

Group Releases 2023 ESG Report, Highlighting Recent Progress and Achievements

SAN JOSE, Calif., May 22, 2024 (GLOBE NEWSWIRE) -- As part of its dedication to enhancing the transparency of its environmental, social, and governance (ESG) program, California Water Service Group (Group or Company) (NYSE: CWT) today released its 2023 ESG Report and ESG Analyst Download. The ESG Report—which is aligned with recognized reporting frameworks and standards, including the Sustainability Accounting Standards Board Water Utilities & Services Industry Standards, the Recommendations of the Task Force on Climate-Related Financial Disclosures, and the Global Reporting Initiative Standards—details progress made by Group’s subsidiaries on the Company’s ESG focus areas last year, while the supplemental ESG Analyst Download provides key ESG data and metrics.

This year’s ESG Report highlights both ongoing efforts to support Group’s ESG strategy and objectives along with significant achievements in 2023, such as how the Company is working to:

• Protect the planet, by committing to a science-aligned target to reduce Scope 1 and 2 greenhouse gas emissions by 63% by 2035 (from a 2021 base year); investing $383.7 million in infrastructure to deliver safe, reliable water to customers; and saving close to 95 million gallons of water annually by California customers implementing the Company’s conservation programs last year.
• Serve customers, by achieving 100% compliance with primary and secondary federal and state water quality standards; applying for (and then receiving in 2024) $83 million in funding from the California Extended Water and Wastewater Arrearage Payment Program to relieve customers of past-due balances incurred during part of the pandemic; and donating more than $1.5 million to local community organizations.
• Engage its workforce, by investing $728,000 in employee training and continuing education for an average of 13.6 hours of training per employee; doubling its veteran hiring rate from 2022 to 8%; and awarding $10,000 in college scholarships to children of employees.
• Govern with integrity, by maintaining an engaged and diverse Board of Directors, with 36% gender diversity and 18% ethnic diversity; discussing ESG-related matters throughout the year at various committee meetings and with the full Board of Directors; and spending 27.2% of net procurement with diverse suppliers.

“Our ability to provide safe, reliable, and affordable water service to our customers and communities every day is tied directly to our commitment to ESG matters,” said Martin A. Kropelnicki, Chairman and CEO. “Doing the right thing is already part of how we operate day in and day out, and I am pleased with the strides we continue to make in our ESG focus areas year over year.”

About California Water Service Group
California Water Service Group (NYSE: CWT) is the largest regulated water utility in the western United States. It provides high-quality, reliable water and/or wastewater services to more than 2.1 million people in California, Hawaii, New Mexico, Washington, and Texas through its regulated subsidiaries, California Water Service, Hawaii Water Service, New Mexico Water Service, and Washington Water Service, and its utility holding company, Texas Water Service. 

Group’s purpose is to enhance the quality of life for customers, communities, employees, and stockholders. To do so, it invests responsibly in water and wastewater infrastructure, sustainability initiatives, and community well-being. The company’s 1,200+ employees live by a set of strong core values and share a commitment to protecting the planet, caring for people, and operating with the utmost integrity. The company has been named one of “America’s Most Responsible Companies” and the “World’s Most Trustworthy Companies” by Newsweek and a Great Place to Work^®.  More information is available at www.calwatergroup.com.

This news release, the ESG Report and the ESG Analyst Download (collectively, the 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 ESG Disclosures include Group’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 Group’s ability to make ESG investments without the support of the Company’s regulators, and actual results may differ. Because of this, Group advises all interested parties to carefully read and understand Group’s disclosure on risks and uncertainties found in Forms 10-K, 10-Q, and other reports filed with the Securities and Exchange Commission (SEC). Group 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. Group may determine to adjust any objectives, goals, and targets or establish new ones to reflect changes in the Company’s business.

Historical, current, and forward-looking ESG-related statements and data in the 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 ESG Disclosures may not be considered material for SEC reporting purposes, and the use of the term “material” in the 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 Group, which means that third-party data or methodologies may not be comparable to Group’s data or methodologies.

Website references and hyperlinks are provided for convenience only, and the content on the referenced websites is not incorporated by reference into, nor does it constitute a part of, this news release.

Media Contact
Yvonne Kingman
ykingman@calwater.com
310-257-1434

FAQ

What are the key highlights from California Water Service Group's 2023 ESG Report?

Key highlights include a commitment to reduce GHG emissions by 63% by 2035, $383.7 million invested in infrastructure, saving nearly 95 million gallons of water annually, and achieving 100% compliance with water quality standards.

How much did California Water Service Group invest in infrastructure in 2023?

California Water Service Group invested $383.7 million in infrastructure in 2023.

What is California Water Service Group's commitment regarding greenhouse gas emissions?

The company has committed to reducing Scope 1 and 2 greenhouse gas emissions by 63% by 2035 from a 2021 base year.

How much water did California Water Service Group save through conservation programs?

The company saved close to 95 million gallons of water annually through their conservation programs.

What funding did California Water Service Group secure for customer arrearages?

California Water Service Group secured $83 million from the California Extended Water and Wastewater Arrearage Payment Program.

How much did California Water Service Group donate to local community organizations?

The company donated more than $1.5 million to local community organizations.

What were California Water Service Group's workforce engagement efforts in 2023?

Workforce engagement efforts included investing $728,000 in employee training, doubling the veteran hiring rate to 8%, and awarding $10,000 in college scholarships.

What is the diversity composition of California Water Service Group's Board of Directors?

The Board of Directors has 36% gender diversity and 18% ethnic diversity.