Company: SREA
Filing Date: 2025-03-28
Form Type: DEF 14A
Source: 0001140361-25-010983
Chunk: 16

Company: SEMPRA
Filing Date: 2025-03-28
Form: DEF 14A
Chunk 16
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 importance of critically evaluating directors and their contributions to the board in connection with the re-nomination decision, including their collective skills, qualifications and experience, feedback from the annual board evaluation, and individual performance, attendance, participation, independence and outside board and other affiliations.

| 2025 Proxy Statement |     | 11 |

TABLE OF CONTENTS Corporate Governance

Thoughtful Board Refreshment Our board is committed to thoughtful board refreshment designed to maintain balanced and varied board composition and tenure. To this end, the board has onboarded 36% of its current directors over the past five years, including three new directors who have joined since last year’s annual meeting of shareholders and who are up for election for the first time this year. Our board refreshment efforts are supported by the Corporate Governance Committee, which is responsible for identifying qualified candidates for consideration as members of the Board of Directors, consistent with criteria approved by the board. The chart below summarizes the committee’s ongoing and proactive refreshment process. For a further discussion of the Corporate Governance Committee’s role in our board refreshment process, see “Board Committees—Corporate Governance Committee” below. The Board’s Role in Risk Oversight Risks are inherent in our business operations, including, among others, safety, health and operational risks, human capital risks, regulatory and compliance risks, climate and other environmental risks, cybersecurity risks, business and financial risks and reputational risks. Sempra’s board has ultimate responsibility for risk oversight. Consistent with this responsibility, our Corporate Governance Guidelines provide that the specific functions of the Board of Directors include assessing and monitoring risks and risk management strategies. The board reviews key aspects of our businesses, including, among others:

| • | The appropriate capital structure for our businesses |

| • | Utility investment plans consistent with state policy objectives and regulatory review and approval of significant investments |

| • | Non-utility investment policies, including requiring contractual commitments from third parties to purchase a substantial portion of the capacity or output of major non-utility projects before commencing construction on the projects, subject to exceptions |

| • | An employee compensation program that encourages and rewards sustainable growth in our businesses and is within an acceptable risk profile |

| • | Commitment policies that require board review and/or approval above certain dollar thresholds |

| • | The company’s commitment to high-performance culture with a focus on key areas of our operations, such as safety, sustainability, culture and belonging and customer service |

| • | With respect to investments in which we do not operate or control the applicable entity, careful selection of business