Longtime PG&E Iron Works Supplier Sets the Pace on Sustainability Practices and New Required Assessment

Tracy-based Madruga Iron Works has made metal covers and frames for PG&E since the 1970s. But there’s nothing retro about its approach to innovation and sustainability.

Today, Madruga’s offices and manufacturing facilities use LED lighting. The company installed solar panels in 2021, and it promotes the “circular economy,” where it collaborates with local companies to recycle steel materials.

Madruga also got a head start on a new annual supplier sustainability assessment that comes with being a PG&E supplier.

By 2025, all PG&E suppliers will be mandated to complete the assessment, which asks suppliers to report on their environmental, social and governance practices and provide data to validate their performance. In return, suppliers receive valuable insights and benchmarking regarding their environmental sustainability programs.

“Environmental stability is so important. We need to be mindful of our impact on the world, so we don’t destroy our home and instead restore the environments we’ve damaged,” said Madruga Vice President Betsy Madruga Weber.

Company representatives enrolled in two PG&E training classes, which help suppliers prepare for the annual assessment and are held from early July through November. The class called Greenhouse Gas Calculation and Reporting shows a company how to do GHG accounting and set reduction goals. Its companion class, Supplier Environmental Assessment Overview, explains how to complete the assessment and how PG&E will use the information.

“I applaud Madruga for taking the initiative to conduct a thorough environmental sustainability evaluation of their facilities and operations and for reporting their performance during our annual supplier sustainability assessment,” said Paul Quickert, PG&E Supply Chain Responsibility Expert Consultant.

How they did it

Weber’s daughter, Jillian, was a summer intern at Madruga and focused on sustainability. Jillian, who holds a bachelor’s in environmental science and is in a graduate program for sustainable business practices at the University of Oregon, completed the supplier sustainability assessment and formalized the company’s sustainability policy.

Jillian helped gather information about materials used by suppliers in manufacturing and incorporated data from the monthly energy, fuel, water and waste bills to calculate the emissions emitted in each area.  

The GHG Calculation and Reporting class enabled Madruga to determine which sources (such as combustion, forklifts and trucks and refrigeration and air conditioning equipment) release the most carbon dioxide. It also helped them determine how much carbon dioxide was produced by their energy sources.

“These two classes cover areas where businesses can have the most impact to create positive environmental change,” said Jillian.

More sustainable practices to come

Based on the assessment, Madruga is developing plans for transitioning forklifts to electric and company vehicles to electric or hybrid, implementing a cardboard recycling program and reducing emissions from propane space heaters by moving to electric.

“PG&E Electric Operations is thankful for suppliers like Madruga who provide us with quality products,” said Principal Category Leader Trent Lara. “These products support everyday business and critical initiatives, such as our 10,000-mile undergrounding project, while supporting our sustainability goals.”

“I’m very grateful to PG&E for the support they’ve given us as a small company through training and information,” said Weber. “PG&E is showing us by example that they’re there to help smaller suppliers be environmentally sustainable businesses.”