Dominion Energy, Inc. · NYSE:D
Dominion Energy — ESG Presentation (November 2022)
48 slides from Dominion Energy's sustainability presentation, Nov 21, 2022
Slide 1: ESG Update Materials Fall 2022
ESG Update Materials Fall 2022
Slide 2: Important note for investors
Important note for investors This presentation contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Dominion Energy. The statements relate to, among other things, expectations, estimates and projections concerning the busine
Slide 3: Committed to industry-leading ESG performance
Dominion Energy Committed to industry-leading ESG performance ▪ Our vision is to be the most sustainable energy company in America ▪ Our corporate purpose is to safely deliver reliable, affordable, and sustainable energy to our customers while operating as an employer of choice and creating value fo
Slide 4: Premier state-regulated utility operations
Premier state-regulated utility operations OH VA UT NC 90% state- SC regulated utility segments Utility operations in attractive states ✓ Customer/economic growth 10%¹ ✓ “Common sense” regulation Contracted Assets ✓ Sustainability Long-term contracted zero-carbon generation and Cove Point LNG (50%)
Slide 5: Industry leading ESG profile
Industry leading ESG profile Committed to safe, reliable, affordable and sustainable energy and achieving net zero by 2050 Core values 70% reduction Net Zero 44% Safety, Ethics, Excellence, In OSHA recordable rate Net Zero Scope 1, 2, and 3 Reduction in enterprise- Embrace Change, One since 2006 CO2
Slide 6: Delivering on our commitments: Environmental scorecard
Delivering on our commitments ESG scorecard Environmental Business focus Latest progress and initiatives $73B Net Zero by 2050: Scope 1, 2, and material ✓ ✓ Expanded Net Zero commitment to Scope 2 and 3 emissions 15 solar facilities placed in service in 2021, totaling ~360MW Enterprise-wide decarbon
Slide 7: Delivering on our commitments: Social scorecard
Delivering on our commitments ESG scorecard Social Business focus Latest progress and initiatives $48.6M Workplace safety ✓ 0.53 OSHA recordable incident rate through YTD Sept 2022; ~65% safer than industry average Contributed to community betterment in 2021 Investing in our ✓ 40th program year of E
Slide 8: Delivering on our commitments: Governance scorecard
Delivering on our commitments ESG scorecard Governance Business focus Latest progress and initiatives ESG and climate oversight across CEO, Board, and Effective Board ✓ Independent Lead Director with clearly defined role and oversight responsibilities Management ✓ All Board committees 100% independe
Slide 9: Governance: Board of Directors
Governance Board of Directors Board expertise (% of directors) Diversity, tenure & age Risk management 100% Corporate governance 100% Human capital / talent management 100% 38% 31% 15% Financial or accounting 100% Leadership 100% Customer satisfaction and/or service 85% Gender and ethnic Female Mino
Slide 10: Effective Board and management governance
Governance Effective Board and management governance Oversight of select climate matters ▪ ESG strategy is a cornerstone of overall business strategy ▪ Prioritizes sustainability and clean energy Board of ▪ Oversees the company’s management and direction and is led by the Chair and an active, indepe
Slide 11: Accountability driven by core values & aligned incentives
Governance Accountability driven by core values & aligned incentives Short-term incentive scoring criteria¹ Long-term incentive ▪ Robust stock-ownership requirements for officers At least — We believe that industry-leading ESG-performance 30% will result in higher long-term returns (including stock
Slide 12: Pay for performance
Governance Pay for performance, placing a substantial portion of NEO¹ compensation at risk CEO target direct compensation mix (2022) Operational goals ▪ Employ various performance measures for our annual and long-term incentive programs. Examples include measures surrounding: ― Employee Safety 89% P
Slide 13: Political participation and contributions
Political participation and contributions Participation Transparency ▪ Actively participate at local, state and national levels ▪ Voluntarily report political and lobbying contributions on our ▪ Contribute to activities affecting our business consistent with website including: our corporate values a
Slide 14: Review of Climate-Related Lobbying and Trade Associations
Political participation and contributions 2021 Review of Climate-Related Lobbying and Trade Associations ▪ In order to support the clean-energy transition while staying true to our public service and fiduciary commitments, Dominion Energy engages in direct lobbying activities and participates in tra
Slide 15: Reporting history and frameworks
Governance Reporting history and frameworks Overview Latest published & link Sustainability and “Flagship” sustainability disclosure with detailed reporting on ESG strategy including Corporate Responsibility governance, performance, comprehensive methane and carbon metrics, and September 2022 Report
Slide 16: Third-party ESG assessments
Third-party ESG assessments Dominion Energy’s independent 3rd party scoring reflects best-in-class ESG performance Dominion Energy Sector average “Leadership “Leadership Lower score = better “Trendsetter” ✓ 94 band” band” “Leader” ✓ A- ✓ A- AA 31 83 B B 25 A CDP—Climate CDP—Water MSCI Sustainaly
Slide 17: Third-party ESG assessments: track record
Third-party ESG assessments Track record of participation and improvement A 91 91 91 94 94 A- A- A- A- A- AA AA Scoring methodology B B B changed in 2020 A A Lower score = better BBB 33 28 25 F ’17 ’18 ’19 ’20 ‘21 ’17 ’18 ’19 ’20 ‘21 ’18 ’19 ’20 ’21 ‘22 ’18 ’19 ’20 ’21 ‘22 ’18 ’19 ’20 ’21 ‘22 CPA-Zi
Slide 18: ESG awards
ESG awards Actions Speak Louder U.S. Department Fortune Forbes Forbes Forbes of Labor 2022 2022 2022 2022 2021 World’s Most America’s Best America’s Best Best Employers HIRE Vets Admired Employers for Employers for for Medallion Companies Women Diversity Veterans (Platinum) Human Human Southeastern
Slide 19: Enterprise-wide Net Zero carbon and methane by 2050
Environmental Scope 1: Interim and long-term climate goals 55% Reduction in 65% 80% Reduction in Reduction in carbon emissions methane emissions methane emissions from electric from gas from gas operations by operations by operations by 2030 2030 2040 Enterprise-wide Net Zero carbon and methane from
Slide 20: Scope 2 and 3: Net Zero by 2050
Environmental Scope 2 and 3: Net Zero by 2050 Support federal Sustainability focused Encourage suppliers to Requesting methane fuel procurement adopt Net Zero supplier emissions regulations practices commitments disclosures Scope 3 emissions categories: NET ZERO Scope 3 ✓ LDC customer end use ✓ Purc
Slide 21: Scope 1: Progress through 2021
Environmental Scope 1: Progress through 2021; aligned with GHG protocol and TCFD recommendations Emissions reductions by business since baseline¹ Select drivers ✓ 3,500+ MW of fossil-fired capacity retired Enterprise-wide ✓ 7,200 MW of fossil-fired capacity divested² CO2e (carbon and 44% ✓ 2,185 MW
Slide 22: GHG emissions reporting
Environmental GHG emissions reporting Annual corporate GHG inventory Forecasting a path to Net Zero by 2050 ▪ Comprehensive annual corporate inventory of greenhouse gas ▪ A globally leading climate and energy consultant conducts emissions third-party scenario analysis ― Includes sources beyond those
Slide 23: Scope 3: Emissions across the value chain
Environmental Scope 3: Emissions across the value chain Scope 3 as share of total value chain¹ Scope 3 strategy Natural gas ▪ Requesting emissions disclosures supply chain ▪ Encouraging responsibly sourced gas and net zero goals ▪ Transforming owned electric generation fleet to distribute Electric f
Slide 24: Scope 1: Achieving enterprise-wide Net Zero by 2050
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon and methane by 2050 Enterprise-wide CO2e¹ 44%↓ ~70%— 80%↓ Net Zero Baseline 2021A 2035E 2050E Medium-term Long-term Informal planning phases Our capital investment plan aligns with and supports our Net Zero goal ¹ Scope I carbon and me
Slide 25: Medium-term electric generation strategy
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon and methane by 2050 Medium-term electric generation strategy Owned generation dispatch (MWh) by fuel type¹ ▪ Transform the generation mix ― Up to $50B in zero-carbon generation and energy Coal Gas Zero-carbon storage through 2035 ― Ret
Slide 26: Virginia carbon-free electric generation and storage
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon and methane by 2050 Virginia carbon-free electric generation and storage Offshore wind Solar Energy storage Nuclear relicensing ✓ Largest regulated offshore ✓ 2.2 GW of enterprise-wide ✓ Three existing pilot ✓ Own and operate four wind
Slide 27: Renewable electric generation capacity
Environmental Achieving enterprise-wide Net Zero carbon and methane by 2050 Renewable electric generation capacity¹ 29.6GW 4.2GW 2021 2025 2030 2035 Total solar Hydro Wind Total battery storage ¹ Conforms with VA IRP Plan B filed in September 2022 and DESC IRP Williams 2030 Reference Case filed in S
Slide 28: Coal capacity
Environmental Achieving enterprise-wide Net Zero carbon and methane by 2050 Coal capacity (GW) Share of gen. dispatch 47% 8.1 12% 5.4 1% 3.9 2.6 2.6 <1% 100% Renewable Portfolio Standard 0.6 in VA by 2045 2005A 2021A 2026E 2031E 2035E 2045E 2045E+ DESC proposes to retire coal-only stations by the en
Slide 29: Components of investment base
Environmental Components of investment base: Coal-fired generation—, Zero-carbon— Percentage of total investment base¹ Zero-carbon: Renewable² Zero-carbon: Nuclear Electric transmission/distribution Other Coal Coal: 6% Coal: 4% Other Other Electric transmission/distribution Zero- Electric carbon +
Slide 30: Gas Distribution business strategy
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon and methane by 2050 Gas Distribution business strategy Methane emissions from natural gas operations ▪ Accounts for 6% of Dominion Energy’s Scope 1 CO2e Thousand metric tons ▪ 38% reduction in methane from natural gas operations throug
Slide 31: Decarbonization initiatives extend beyond 5-year plan
Decarbonization initiatives extend beyond 5-year plan Benefits customers, communities, environment Gas distribution modernization / RNG Nuclear life Electric grid transformation Up to $8B ~$73B Up to $15B Emissions Energy extension reduction and storage Up to $4B¹ enabling Solar Up to $4B Offshore U
Slide 32: Long-term strategy: 2036 to 2050
Environmental Achieving Net Zero Scope 1, 2, and 3 by 2050 Long-term strategy: 2036 to 2050 ▪ In the medium-term (through 2035), current technology supports substantial progress towards our commitments ▪ As we advance, we will remain guided by our core value of ethics to ensure a Just Transition ▪ F
Slide 33: Preparing for the green economy: Just Transition
Environmental Preparing for the green economy: Just Transition Approach Actions Speak Louder ▪ The Just Transition is a principle that a healthy ▪ For our communities we have and will continue to : economy and a clean environment can and should ✓ Support economic development to create both direct an
Slide 34: Preparing for the green economy: Environmental Justice
Environmental Preparing for the green economy: Environmental Justice Approach Actions Speak Louder ▪ Committed to ensuring a voice in decisions about ✓ Formal Environmental Justice (EJ) policy adopted in siting and operating energy infrastructure is given to all 2018 people and communities, regardle
Slide 35: Cross sector emissions reduction
Cross sector emissions reduction Programs to benefit our customers, communities, and the environment 11% ▪ Electric Highway Coalition to build electric vehicle (EV) charging across major highways in the Eastern U.S. 27% ▪ Smart Charging pilot for EV charging infrastructure rebates 13% Transportation
Slide 36: Generation by fuel type
Environmental Generation by fuel type Electric generation by fuel type (Mwh) Future: Past: Present: 2035 2005 2021 (est) Renewable 1% 7% 31% 69% zero carbon Nuclear 44% 41% 38% 99% Natural gas 4% 40% 29% zero/low carbon Coal 47% 12% 1% Other 4% 0% 0% Note: Historical data pro forma for SCANA merger.
Slide 37: Safety – OSHA recordable incident rate
Employees Safety – OSHA recordable incident rate¹ ~65% safer than industry average 100 employees each work year 1.78 Number of recordables per 1.50 1.44 1.34 1.32 1.06 1.02 1.04 1.00 0.92 0.88 0.80 0.65 0.68 0.62 0.53 0.41 0.46 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 38: Safety: security teams, programs, and partnerships
Social Safety Security teams, programs, and partnerships A culture of physical and cyber security ▪ Centralized security organization that regularly provides Chief Security Officer briefings to the Board of Directors and senior leadership ▪ Focused on protecting critical infrastructure as well as cu
Slide 39: Customer Experience
Social Customer Experience 3Q 2022 Net Promoter® Score¹ Recent Escalent awards 24 Most Trusted Easiest To Do Business Brand Business Customer Residential Residential Champion 18 DESC DESC DEUWI 2022 2022 2021 Residential Most Trusted Business Customer Business Customer Champion Partner Champion DESC
Slide 40: Typical residential electric customer bills
Social Typical residential electric customer bills Current rate (cents per kWh)¹ Projected customer bill CAGR² (13%) (17%) ✓ Fuel savings offset new investment 16.0 13.9 13.3 2.3% 1.8% CAGR CAGR 2019 - 2035 2022 - 2036 US Avg. Dominion Energy Dominion Energy Dominion Energy Dominion Energy Virginia
Slide 41: Affordability relative to the national utility averages
Social: Affordability relative to the national utility averages: Average residential electric and gas customer bills as % of median household income¹ DEV’s and DESC’s affordability has improved Dominion Energy by 10% and 14% more than the national electric Gas Distribution’s affordability utility av
Slide 42: Company giving
Social Company giving Charitable foundation giving (2021) Select initiatives ▪ 2021 Critical Community Needs grants program totaled more than $1.5 million to 200+ organizations supporting basic Community Vitality human needs, including food, shelter and medical care ▪ Energy assistance 10% Education
Slide 43: Social justice and educational equity commitments
Social Diversity, Equity, & Inclusion: Social justice and educational equity commitments Progress towards our commitments ▪ Since 2020 we have committed to providing over $40M to support social justice and educational equity ― $5M of grants fulfilled to organizations with a history of advancing soci
Slide 44: Diversity, Equity, & Inclusion: Progress towards our commitments
Social Diversity, Equity, & Inclusion: Progress towards our commitments Total workforce representation 80.0% 79.3% 78.0% 77.6% ▪ Commitment to increase workforce diversity to 40% by year end 2026¹ ▪ 35.5% diverse workforce representation² at year end 2021, a 2%+ increase over just the last 24 months
Slide 45: Diversity, Equity, & Inclusion: Diverse representation
Social Diversity, Equity, & Inclusion: Diverse representation Total workforce representation as of YE2021¹ Senior leadership representation as of YE2021² Non-minority male 7.6% Minority male 14.8% 29.9% 14.4% 35.5% Female Minority Non-minority female 13.1% Diverse 64.5% Minority female Gender divers
Slide 46: Diversity, Equity, & Inclusion: Progressing on our commitments
Social Diversity, Equity, & Inclusion: Progressing on our commitments Our DE&I journey continues ✓ Board-level oversight — In 2021 the Compensation, Governance and Nominating Committee of the Board became two standing committees: Compensation and Talent Development (CTD) Committee and the Nominating
Slide 47: Diversity, Equity, & Inclusion: Supplier relationships
Social Diversity, Equity, & Inclusion: Supplier relationships Overview Percentage of total procurement¹ from diverse suppliers Dominion Energy works to ensure that a Represents over $1B of annual spend spectrum of businesses can participate in Increased by $200M+ or 24.5% between 2020 our procuremen
Slide 48: Supply Chain sustainability
Social Supply Chain sustainability Overview Industry-leading initiative ▪ Supply Chain sustainability commitments: ― Collaborative engagement and supplier education will drive innovation, best practice implementation, and GHG reduction activities. ▪ In September 2022, Dominion Energy held its second