2023 Sustainability Report

Our 2030 Zero Carbon Plan is squarely focused on eliminating carbon from our power supply by 2030 – the most ambitious carbon reduction plan of any large utility in the United States. As such, we’re committed to reducing our operational greenhouse gas emissions (GHG). This includes Scope 1 (direct emissions), Scope 2 (indirect emissions) and Scope 3 (indirect emissions associated with SMUD’s supply chain).

• In affecting Scope 1 (direct emissions), SMUD developed a fleet acquisition policy to prioritize zero emission vehicles and electrification of equipment. We initiated a process to better identify potential opportunities to reduce fleet emissions through actions such as vehicle electrification, renewable diesel and reducing idle time. Our newly installed GPS equipment is helping track miles traveled, fuel consumed and idling times more accurately.
• SMUD is participating in federal, state and local grant opportunities to maximize fleet electrification funding and programs.
• SMUD offers a broad range of programs to incentivize employee participation in reducing work trips, cutting commute time and reducing emissions. A partnership with Sacramento Regional Transit District provides employees reduced fare tickets for light rail and bus transportation. To encourage the use of electric vehicles (EV), SMUD offers EV purchase discounts and workplace charging opportunities. Our van pool program was launched in 2023, we have a carpool program and also provide infrastructure (indoor bike storage, showers, and lockers) to support bicycle commuters.
• In 2023, just under 1,200 of SMUD’s employees participated in remote work agreements for a hybrid office/remote work structure. Annually, SMUD participates in a statewide Clean Air Day challenge with activities, incentive programs and support for reduced vehicle trips, increased bicycle and alternative transportation use and other ways to achieve cleaner air throughout the service area.
• In affecting Scope 2 (indirect emissions), SMUD is purchasing Renewable Energy Credits (RECs) or renewable power (Greenergy) to cover 100% of our operational Scope 2 emissions.
• In affecting Scope 3 (indirect emissions associated with supply chain), SMUD is defining reporting boundaries and reporting significant emissions. In 7 categories, 3 (employee commute, business travel and energy related activities) are easily defined. Three additional categories (purchased goods and services, capital goods, upstream transportation and distribution)­ are reported using a spend-based approach that relies on published economic and emissions data. We recently identified the top 20 emission sources associated with purchased goods and services. The final category – waste generation – is based on the weight of waste sent to the landfill. 

To meet our priorities of managing air quality, water and waste, we'll improve operational efficiency, minimize our operational impacts and ensure the short- and long-term quality and quantity of resources.

• SMUD continues to participate in green business certification programs. Our Headquarters (HQ), Customer Service Center and Field Reporting Facility (FRF) buildings were certified by the Sacramento County Business Environmental Resource Center (BERC) in 2023.
• SMUD initiated a project to install native, drought tolerant landscaping in a pilot project on the northwest side of our HQ building. The project, which is critical to minimizing water usage, was completed in the remaining grass areas around the HQ in 2023.
• Reducing air emissions through fleet electrification is in direct alignment with the 2030 Zero Carbon Plan. In 2023, we continued to maximize the use of existing zero emission vehicles in our fleet, which are measured by “zero emission miles” monthly and annually.
• We continued working to ensure compliance with the California Air Resource Board’s new Advanced Clean Fleets rules for medium- and heavy-duty trucks.
• We remained compliant with all other California state emissions programs, including: Large Spark Ignition, DOORS (an online tool for reporting vehicle inventories and actions taken to reduce vehicle emissions), HDIM/SMOG (a clean truck check program) and the Portable Equipment Registration Program.

Incorporating sustainability in our purchasing decisions will positively impact our direct and indirect environmental footprint. We can achieve this by minimizing supply chain impacts, avoiding negative environmental implications throughout the supply chain and prioritizing local resources.

• SMUD implemented the Supply Chain Risk Management Framework, which leverages a matrix to identify the most critical materials, services and technologies. An annual review process for this framework was put in place, as well as a process for quarterly mitigation plan updates in key categories.
• Additionally, SMUD conducts an annual Sustainable Supply Chain Alliance (SSCA) The Sustainability Project survey for suppliers. As one of 100 members with representation from 27 leading utilities, we're part of an effort that diverted 3 billion pounds of material from landfills. The SSCA conducts a Maturity Framework Assessment annually, with SMUD showing strong improvement year over year.
• In 2023, SMUD incorporated a Supply Chain Risk Program to systematically identify, evaluate and manage potential risks associated with procurement, contracting and logistics. Additionally, we created a Supplier Code of Conduct.
• SMUD’s efforts saw an increase in 2023 of almost 30,000 electric miles driven by our fleet and an 18% increase in tool electrification. We have a bold goal of 100% hand tool electrification by the end of 2024.
• In 2023, SMUD started tracking exempt (free stock materials) and saved over $1 million through this new tracking process.
• In collaboration with Okonite and All Wire, we started a wood reel recycle and reuse program. More than 450 wood reels were reused and respooled with wire. Additionally, 2,087 wood pallets were recycled and reused instead of going to the landfill.

We’re committed to sustaining our operations and generating power, despite the obstacles presented by the environments in which we operate. SMUD is committed to avoiding impacts and ensuring the resilience of our surrounding environment.

• We're developing a proposed framework for climate adaptation management for use across SMUD, which focuses on 2030 Zero Carbon Plan execution and ensures that we meet industry and market standards. We're also assessing available climate data and tools to support internal decision-making.
• SMUD's final Habitat and Conservation Plan application, which covers operations, maintenance and new construction, was published in the Federal Register in December 2023. Public comment started in January 2024.
• We received approval from the California Department of Fish and Wildlife and U.S. Fish and Wildlife Service on the Conservation Easement for our Rancho Seco II Solar Project to add a 216-acre parcel to our mitigation strategy that expands upon our landscape-level protection.
• SMUD continues to support a Pollinator Program through urban forest development and community partnerships. We completed installing Phase 1 of a native plant pollinator garden at our Orangevale substation, in coordination with the Cripple Creek trail project.
  • The Initial Monarch Candidate Conservation Agreement with Assurances recommendation was completed. A modified recommendation and multi-year budget request is in process.
  • SolaBee hives were installed at 4 SMUD locations.
  • We profiled SMUD employees in a “Meet the Beekeepers” internal publication.
  • We collaborated with the California Native Plant Society Sacramento Chapter on Earth Day with a native plant giveaway and then used donated plants at the Orangevale Substation pollinator garden.
  • We collaborated with SMUD's Tradeshow, Environmental Services and Sustainable Communities teams to purchase 10,000 Central Valley Native Seed packets to give away at SMUD’s 2024 events.
  • We participated in a collaborative project with El Dorado Community Services District for a bike park and pollinator garden within our easement was initiated.
• The Right-of-Way Stewardship Council (ROWSC), an accreditation program that establishes standards for responsible, environmentally sustainable right-of-way vegetation management, completed an accreditation desk audit of SMUD's practices and procedures. The ROWSC Accreditation program evaluates environmental stewardship standards of excellence for utility vegetation management along rights-of-way. The goal of the program is to promote and recognize vegetation management industry best practices that maintain and protect grid reliability, safety and provide ecological and natural resource, species and habitat benefits.

SMUD's committed to building a culture of sustainability among our employees. Employee engagement is critical and 100% sustainability awareness training is a baseline goal for creating that culture.

• Continuing our decades-long participation in organizations benefiting the community, SMUD is an active member in environmental organizations such as Valley Vision, Business Environmental Resource Center, Sacramento Transportation Management Association, Capital Region Climate Readiness Collaborative, Sacramento Environmental Commission and the Sacramento Clean Cities Coalition and Environmental Council of Sacramento.
• SMUD provided $15,000 to Valley Vision in 2023 to support the Cleaner Air Partnership (CAP). CAP is a collaboration between Breathe California Sacramento Region, the Sacramento Metropolitan Chamber of Commerce and Valley Vision. SMUD has been a member of CAP since 2018, and staff actively participate in its Executive Committee, on the Air Quality Team during the Metro Chamber’s annual Cap-to-Cap federal advocacy program to Washington, D.C. and CAP Quarterly Luncheons.
• By participating in community events such as Earth Day and Clean Air Day, SMUD sends a clear message, to employees and customers alike, that a clean energy future is achievable – and necessary. In 2023, SMUD had 33% employee participation in California Clean Air Day – nearly meeting our goal of 35%.
• By partnering with local schools to promote environmental sustainability education programs.
• Through our Learning Management System, we're piloting a sustainability awareness training program for all employees to complete every 3 years. The pilot already has 34 registered participants, 20 of whom have completed the training.
• Our internal recognition program supports employee recognition for leadership in environmental sustainability and acknowledges their efforts to reduce SMUD’s environmental footprint in alignment with our 2030 Clean Energy Vision.

A carbon footprint is the total amount of greenhouse gasses that are generated by our actions. Some examples of SMUD’s carbon impacts are electricity usage, fuel purchases and air travel. By tracking our progress against a baseline, SMUD creates accountability in our actions and goals for further reductions.

Total metric tonnes of carbon dioxide equivalent by year

SMUD tracks and collects data on emissions from the fuel used in our mobile fleet, electricity consumed at SMUD buildings and any fuel used for comfort heating at Upper American River Project (UARP) facilities. This data reflects a total from both anthropogenic and biogenic emissions (from usage of renewable biodiesel in some fleet vehicles). Also included are estimated emissions savings from employees using rideshare programs.

SMUD's electricity usage by year (kWh)

SMUD collects data on energy used at all SMUD buildings. Total energy used is shown based on metered data. This also takes into account the solar electricity generated at the East Campus Operations Center.

Gallons of fuel purchased by year

SMUD’s fleet of forklifts, heavy construction equipment, trailer mounted generators, boats, cars, trucks and SUVs use fuel obtained on site at the main campus and the UARP, as well as through fueling stations. Data is collected, compiled and reported to internal business partners on a quarterly basis. Data collected includes the type of fuel, location, date and vehicle ID.

Sheets of paper used by year

SMUD boasted almost 11% reduction in paper use in 2023. Even as use is declining, we continue to evaluate the programs that use printed materials and collaborate within departments on reducing paper usage. This is being accomplished by analyzing content, relevancy, design, volume, frequency and end use goals.

Single-use water bottles used by year

SMUD continues to evaluate options for providing hydration, especially to field staff who typically encounter 100+ degree temperature days July through September. Concerns include health and hygiene, along with durability of any product.

Number of air travel trips

The COVID pandemic had a dramatic effect on air travel in 2020 and 2021. Travel began to rebound in 2022 as health and travel concerns lessened. SMUD encourages employees to exercise good judgement in using air travel, considering options for virtual and local meetings first, with particular focus on rideshare and mass transit.

Waste diversion is the process of diverting waste from landfills. SMUD has focused on keeping materials such as concrete, metal and wood out of the waste stream. Establishing goals has spurred creative thinking and partnerships for material reuse, resulting in cost savings.

2023 waste diversion statistics

Sacramento experienced unprecedented storms during the winter of 2023, resulting in damage to 425 utility poles. Utility poles cannot be recycled, which added to the overall waste stream. Additionally, we began tracking utility poles and wet spoils (soil that cannot be recycled) in 2023.

Total tons of waste and recycled material

Top recycled materials

Concrete	Transformers	Transformer oil	Wood

Greenergy is a program that allows SMUD's residential and commercial customers to elect using renewables from state and local renewable energy sources for a small charge added to their bill. SMUD’s sources for Greenergy are solar, wind and large hydroelectric. As a newer option for Clean PowerCity^® Champions, our Greenergy program is poised for growth. Renewable energy sources are key to improving our air quality and creating a better, cleaner environment.