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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>Sempra Energy</p>
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<strong>Year:</strong>
<p>2026 </p>
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<strong>Issue Area:</strong>
<p>Corporate Governance </p>
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<strong>Focus Area:</strong>
<p>Independent Board Chairs </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p><strong>RESOLVED</strong>: Shareholders request that the Board of Directors adopt an enduring policy, and amend the governing documents as necessary in order that 2 separate people hold the office of the Chairman and the office of the CEO as soon as possible.</p>
<p><strong>SUPPORTING STATEMENT</strong>:</p>
<p dir=”ltr”>The Chairman of the Board shall be an Independent Director. A Lead Director shall not be a substitute for an independent Board Chairman.<br>&nbsp;<br>The Board shall have the discretion to select an interim Chairman of the Board, who is not an Independent Director, to serve while the Board is required to seek an Independent Chairman of the Board on an accelerated basis. This policy could be phased in when there is a contract renewal for our current CEO or for the next CEO transition although it is better to adopt it now.</p>
<p dir=”ltr”>An independent Board Chairman&nbsp;at all times improves corporate governance by bringing impartiality, objective oversight, and external expertise to board decisions, mitigating conflicts of interest, enhancing transparency, and boosting shareholder confidence.&nbsp;</p>
<p dir=”ltr”>This detached perspective allows the chairman to focus on&nbsp;shareholder interests,&nbsp;strengthen management accountability, and provide critical checks and balances, ultimately contributing to long-term sustainability and credibility.&nbsp;</p>
<p dir=”ltr”>This may be a particularly good time to consider the merits of this proposal. Sempra stock was at $80 in 2020 and at only $91 in late 2025 during a robust stock market.</p>
<p dir=”ltr”>Several unfavorable news reports and developments regarding Sempra Energy emerged in 2025.&nbsp;<br><br>In February 2025, Sempra reported disappointing fourth-quarter 2024 results and cut its 2025 earnings-per-share outlook. Following this lowered forecast, Sempra’s stock dropped by nearly 20% in a single day, leading the S&amp;P 500 in declines. While the company’s stock trended upward at times, it has been a significant underperformer compared to the broader utility sector throughout 2025.</p>
<p dir=”ltr”>Sempra’s second quarter 2025 revenue fell short. GAAP earnings were also significantly lower compared to the same period in 2024.&nbsp;<br><br>Analysts have pointed to Sempra’s exposure to “regulatory shifts and policy risks” in its key markets of California and Texas as a major risk factor.&nbsp;</p>
<p dir=”ltr”>In January 2025, and reiterated after a September transaction,&nbsp;S&amp;P Global&nbsp;assigned a “negative outlook” to Sempra’s credit rating. The negative outlook was based on several risk factors, including:&nbsp;<br>• Sempra had a minimal financial cushion for its consolidated financial measures.<br>• Sempra faces execution risks related to the construction of large liquefied natural gas projects, including the Port Arthur LNG project.<br>• The credit rating could be lowered if Sempra subsidiary San Diego Gas &amp; Electric were to cause a significant wildfire.&nbsp;&nbsp;</p>

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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> John Chevedden</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>Chevedden Corporate Governance</span></div>
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<h4>Resolution Details</h4>
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<strong>Company:</strong>
<p>Sempra Energy</p>
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<strong>Year:</strong>
<p>2025 </p>
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<strong>Issue Area:</strong>
<p>Environment </p>
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<strong>Focus Area:</strong>
<p>Environmental Justice </p>
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<strong>Status:</strong>
<p>Filed</p>
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<h2>Resolution Text</h2>
<p>WHEREAS: Sempra has a greater than 50% stake in Cameron LNG Phase I, a Liquefied Natural Gas (LNG) terminal located near northern Calcasieu Lake in Hackberry, Louisiana (“the Facility”).1 The Facility began its full commercial operations in August 2020 and has one of the largest LNG export capacities in the country.</p>
<p>LNG plants emit carbon monoxide, sulfur dioxide, and volatile organic compounds.2 Long-term exposure to these pollutants can lead to heart disease, certain types of cancer, and damage to the reproductive system and internal organs.3 Pollution from LNG terminals “compound the health, economic and educational disadvantages” already faced by nearby communities, leading to increased illnesses that cause work and school absences, as well as increased health care expenses, and an increase in premature deaths.4</p>
<p>Operational problems at the Facility have led to widespread community concern regarding environmental injustices.5</p>

According to a report by the Louisiana Bucket Brigade, the Facility has had 67 total accidental releases since export operations began in 2020, averaging nearly two accidental releases per month.6
A recent report on the health impacts of the Facility estimates the health costs related to the facility to be more than $124 million, accounting for 245 lost workdays, 2,495 lost school days, and 5,000 reported cases of asthma symptoms.7

<p>As Parnassus Investment recently noted, “It’s in both the companies’ and neighboring communities’ best interests for companies to prevent, minimize and remedy the harms associated with their chemical use and operational pollution. If they fail to do so, they may jeopardize the long-term growth, longevity and competitiveness of their businesses—and ultimately shareholder value.”8</p>
<p>Stakeholders have raised concerns regarding the adverse health effects of LNG operations in Louisiana. The Facility has released reports summarizing community outreach programs, but has not released metrics on adverse health impacts related to its operations. Investors are recommending that companies operating in pollution-heavy industries take a proactive approach to environmental justice to mitigate material risk, while ensuring that fenceline communities have access to clean, safe, and healthy environments.</p>
<p>BE IT RESOLVED: Shareholders request that Sempra disclose an environmental justice report on the health and economic impacts that the Cameron LNG Phase I Facility has had on fence line communities.</p>
<p>SUPPORTING STATEMENT: Proponents suggest the report include current actions taken by Sempra to address adverse health impacts of its Facility on surrounding communities and actions planned to be taken; data on the Facility’s accidental emissions releases including type, frequency, and amount; frequency of flaring events; information on associated health impacts of unplanned releases; and noise complaints associated with Cameron LNG Phase I operations.</p>
<p>1 https://www.sierraclub.org/dirty-fuels/us-lng-export-tracker</p>
<p>2 https://www.environmentalhealthproject.org/post/liquefied-natural-gas-lng-health-and-climate-impacts</p>
<p>3 https://www.environmentalhealthproject.org/post/liquefied-natural-gas-lng-health-and-climate-impacts</p>
<p>4 https://fossilfreeciti.org/wp-content/uploads/2024/09/Citi-Funding-Fossil-Fueled-Environmental-Racism-in-the-Gulf-South.pdf, p.22</p>
<p>5 https://www.citizen.org/article/insurers-secretly-back-lng-boom-in-the-gulf-coast/</p>
<p>6 https://labucketbrigade.org/wp-content/uploads/2023/01/Gas_Export_Spotlight_CameronCalcasieuPass.pdf,p.5</p>
<p>7 https://fossilfreeciti.org/wp-content/uploads/2024/09/Citi-Funding-Fossil-Fueled-Environmental-Racism-in-the-Gulf-South.pdf,p.23</p>
<p>8 https://www.parnassus.com/updates/article/investment_case_for_environmental_justice</p>
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<h3>Lead Filer</h3>
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<div class=”views-field views-field-nothing”><span class=”field-content”> Olivia Knight</span></div><div class=”views-field views-field-title views-field-field-shareholder”><span class=”field-content”>As You Sow</span></div>
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