Dominion Energy, Inc. · NYSE:D
Dominion Energy — ESG Presentation (November 2021)
48 slides from Dominion Energy's sustainability presentation, November 2021
Slide 1: Fall Investor Presentations (ESG)
Fall Investor Presentations (ESG) November 2021 ESG Update Materials Fall 2021 Please refer to page 2 for risks and uncertainties related to projections and forward looking statements
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: Why ESG?
Why ESG? Comprehensive stakeholder approach ▪ Our vision is to be the most sustainable regulated energy company in America ▪ This goes hand in hand with our commitment to industry-leading environmental, social, and governance performance ▪ And is supported by our core values of safety, ethics, excel
Slide 4: Strategically repositioned
Strategically repositioned Premier state-regulated utility operating segments OH VA UT 88% state- NC regulated SC utility segments¹ Utility operations in attractive states 12%¹ ✓ Customer/economic growth Contracted Assets ✓ “Common sense” regulation (Zero-carbon generation) ✓ Sustainability ¹ Based
Slide 5: Compelling investment proposition
Compelling investment proposition Comprehensive total shareholder return Industry-leading 6.5% 3.5% ~10% ESG EPS growth rate dividend shareholder through 2025 yield return profile $32B 6% Industry’s largest 5-year growth regulated capital plan annual DPS Pure-play growth state-regulated decarbonizat
Slide 6: Industry leading ESG profile
Industry leading ESG profile Committed to sustainable, reliable, affordable and safe energy and achieving net zero by 2050 Environment Social Governance Best year 42% reduction in safety (2020) Board refreshment 30%+ diverse with ~7 years in CO2e emissions 1% annual increase average tenure workforce
Slide 7: Delivering on our commitments: Environmental scorecard
Delivering on our commitments ESG scorecard Environmental Select commitments Latest progress and initiatives $72B Net Zero Scope 1 carbon and methane ✓ ✓ Energized first ever offshore wind pilot in federal waters Exceeded 100,000 acres of land to support solar goals Decarbonization-focused investmen
Slide 8: Delivering on our commitments: Social scorecard
Delivering on our commitments ESG scorecard Social Select commitments Latest progress and initiatives $58.1M Workplace safety ✓ Record-low OSHA recordable rate of 0.41 in 2020 Contributed to community betterment Investing in our ✓ Published inaugural DE&I report in 2021 in 2020 communities ✓ Publish
Slide 9: Delivering on our commitments: Governance scorecard
Delivering on our commitments ESG scorecard Governance Select commitments Latest progress and initiatives ESG and climate oversight across CEO, Board and Effective Board ✓ Separated Compensation, Governance and Nominating Oversight Committee into two committees: Management — Nominating and Governanc
Slide 10: Governance: Board of Directors
Governance Board of Directors Board expertise (% of directors) Diversity, tenure & age Risk oversight and management 100% Corporate governance 100% Human capital / talent management 100% 33% 25% 17% Financial or accounting 100% Leadership 100% Customer satisfaction and/or service 83% Gender and ethn
Slide 11: Effective Board-level climate governance and risk management
Governance Effective Board-level climate governance and risk management Board oversight of climate matters Select climate-related risks ▪ ESG strategy is a cornerstone of overall business strategy ▪ Board prioritization of sustainability and Changing stakeholder Reliability and customer Board of cle
Slide 12: ESG and climate oversight across Board, CEO, and management
Governance Select ESG and climate oversight—leadership across Board, CEO, and management Reports to Membership Climate-related roles and responsibilities Created Board Committee: Sustainability and ▪ Oversee sustainability strategy Five dedicated board October Corporate Full board ▪ Review company’s
Slide 13: Accountability driven by core values & aligned incentives
Governance Accountability driven by core values & aligned incentives Short-term incentive scoring criteria¹ Robust stock-ownership requirements At least 30% We believe that industry-leading ESG-performance of incentive scoring is will result in higher long-term returns (including stock based on ESG-
Slide 14: Political participation and contributions
Political participation and contributions Participation Transparency ▪ Actively participate at local, state and national levels ▪ Voluntarily report political and lobbying contributions to ▪ Contribute to activities affecting our business consistent with ― 527 tax-exempt political organizations our
Slide 15: Reporting history and frameworks
Governance Reporting history and frameworks Overview Frameworks/mapping Latest published & link Sustainability and “Flagship” sustainability disclosure with detailed reporting on GRI Corporate ESG strategy including governance, performance, comprehensive SASB November 2021 Responsibility Report meth
Slide 16: ESG performance: Third-party assessments
ESG performance Third-party assessments Dominion Energy’s independent 3rd party scoring reflects best-in-class ESG performance Dominion Energy Sector average “Leadership “Leadership “Trendsetter” band” band” 94 A- A- Lower score = better 81 “Just 100” B B 32 69 A 28 BBB 55 CDP—Climate CDP—Water MSCI
Slide 17: ESG scores: Third-party assessments
ESG scores Third-party assessments Track record of participation and improvement A A- A- A- 91 91 91 94 87 Scoring methodology B B B A A A 69 changed in 2020 61 Lower score = better 54 BBB BBB 47 33 28 F TBA TBA TBA ’17 ’18 ’19 ’20 ‘21 ’17 ’18 ’19 ’20 ‘21 ’17 ’18 ’19 ’20 ‘21 ’17 ’18 ’19 ’20 ‘21 ’17
Slide 18: ESG awards
ESG awards Actions Speak Louder 2021 2021 2021 2021 2021 World’s Most America’s Best America’s Best America’s Best America’s Best Admired Large Employers Employers for Employers for Employers for Companies Women Diversity Veterans Since 2010 2021 2021 2021 2021 Best for Vets: 100% (perfect) 100% (pe
Slide 19: Interim and long-term climate goals
Environmental Scope 1: Interim and long-term climate goals 55% 65% 80% Reduction in Net Zero Reduction in Reduction in Methane and carbon emissions methane emissions methane emissions carbon from gas from electric from gas from gas operations operations by operations by operations by by 2040 2030 20
Slide 20: 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 Sustainability 2.0 ▪ Requesting emissions disclosure natural gas supply ▪ Encouraging responsible gas and NZ goals chain ▪ Industry coalitions ▪ Utah pilot complete 20% Hydrogen ▪ Developm
Slide 21: Scope 1: Progress through 2020
Environmental Scope 1: Progress through 2020; aligned with GHG protocol and TCFD recommendations Emissions reductions by business since baseline¹ Select drivers ✓ 3,000+ MW of fossil-fired capacity retired Electric and gas ✓ 7,100 MW of fossil-fired capacity divested² (carbon and 42% ✓ 2,300 MW of s
Slide 22: Achieving enterprise-wide Net Zero carbon and methane by 2050
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon and methane by 2050 Enterprise-wide CO2e¹ 42%↓ ~70%— Net zero 80%↓ (conforms to 1.5o Paris Accord Goals) Baseline 2020A 2035E 2050E Medium-term Long-term Informal planning phases ¹ Scope I carbon and methane emissions; calculation cons
Slide 23: 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 $48B in zero-carbon generation and energy Coal Gas Zero-carbon storage through 2035 ― Ret
Slide 24: 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 ✓ 2.5 GW of enterprise-wide ✓ Three existing pilot ✓ Own and operate four wind
Slide 25: Renewable electric generation capacity
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon and methane by 2050 Renewable electric generation capacity¹ 29.2GW 4.2GW 2020 2025 2030 2035 Total Solar Hydro Wind Battery storage ¹ Conforms with Virginia 2021 IRP Plan B and South Carolina 2021 IRP RP8, hydro excludes DEV and DESC p
Slide 26: Gas Distribution business strategy
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon and methane by 2050 Gas Distribution business strategy ▪ Net Zero CO2e by 2040 for gas operations Gas Distribution share of D ― 65% reduction in methane emissions from gas operations by 2030 scope 1 CO2e¹ ― 80% reduction in methane emi
Slide 27: Decarbonization initiatives extend beyond 5-year plan
Environmental Decarbonization initiatives extend beyond 5-year plan; benefits customers, communities, environment 2020 – 2035 total opportunity Gas 2020 – 2025 portion of total opportunity distribution modernization Electric grid / RNG Nuclear transformation Up to $9B ~$72B life Up to $15B Total Ene
Slide 28: Long-term strategy: 2036 to 2050
Environmental Scope 1: Achieving enterprise-wide Net Zero carbon by 2050 Long-term strategy: 2036 to 2050 ▪ In the medium-term (through 2035), current technology supports substantial progress towards our commitments ▪ After that, in the years from 2036 to 2050, we will require: ― Significant advance
Slide 29: Investing in the emerging technologies of tomorrow
Environmental Investing in the emerging technologies of tomorrow Dominion Energy Innovation Team ▪ Chief Innovation Officer and dedicated Innovation Team formed in 2018 with a focus on achieving Net Zero Case Study: Spark Tank Challenge commitments ▪ Actively scouting new technologies to meet the cu
Slide 30: Coal and oil retirements through 2030
Environmental Coal and oil retirements through 20301,2 Cumulative capacity retirements (nameplate MW) 2019 2021 2023 2025 2028 2030 1.3GW 1.9GW 3.7GW 4.2GW 2030 capacity relative to 2018 levels: Coal: 64% reduction 5.6GW Oil: 66% reduction 6GW Coal + oil: ~65% reduction 3 Oil Coal ¹ Planned retireme
Slide 31: 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 32: 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 ✓ Formal Environmental Justice (EJ) policy about siting and operating energy infrastructure adopted in 2018 is given to all people and communities, regardle
Slide 33: Electrification and cross sector emissions reduction
Electrification and cross sector emissions reduction Programs to benefit our customers, communities, and the environment 10% ▪ Electric Highway Coalition to build electric vehicle (EV) charging across major highways in the Eastern U.S. 29% ▪ Smart Charging pilot for EV charging infrastructure rebate
Slide 34: Sustainability-linked financings
Environmental Sustainability-linked financings Overview ✓ $7.9B of sustainable financing issued in 2021 ✓ Two sustainability-linked credit facilities totaling $6.9B — $6B master credit facility: pricing linked to the achievement of annual renewable electric generation and diversity and inclusion mil
Slide 35: Generation by fuel type
Environment Generation by fuel type Electric generation by fuel type (Mwh) Future: Past: Present: 2035 2005 2020 (est) Renewable 1% 5% 39% ~76% zero carbon Nuclear 36% 40% 38% ~99% Natural gas 7% 45% 23% zero/low carbon Coal 52% 10% <1% Other 4% 0% 0% Note: Historical data pro forma for SCANA merger
Slide 36: Safety: OSHA recordable incident rate
Social Safety—OSHA recordable incident rate¹ 2.05 1.78 100 employees each work year Number of recordables per 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 0.41 0.48 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2019 2021 Industry average² ¹ Pro fo
Slide 37: Safety: security programs
Social Safety—security programs 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 infrastruc
Slide 38: Customer Experience
Social Customer Experience ▪ Responding to customer needs and preferences ― Clean energy options ― Easy access to account support team ― Dominion Energy Mobile app ― 800,000+ smart meters (VA and SC) ▪ Recognized for progress toward delivering better, more modern and more efficient service ― “Top Ut
Slide 39: Typical residential electric customer bills
Social Typical residential electric customer bills Current rate (cents per kWh)¹ Projected customer bill CAGR² ✓ Fuel savings offset new investment (16%) (10%) ✓ Future customer bills expected to stay low 14.0 12.6 11.7 2.1% 2.1% CAGR CAGR 2019 - 2035 2021 - 2035 US Avg. Dominion Energy Dominion Ene
Slide 40: Company giving
Social Company giving Charitable foundation giving (2020) Select initiatives ▪ 331 grants totaling $4 million in 2020 towards COVID- Health and human services 19 relief efforts ― $1M in immediate relief, including support to Education 11% local organizations that provided critical services, 28% such
Slide 41: DEI: Updates to social justice and equity commitments
Social Diversity, Equity, & Inclusion: Updates to 2020 social justice and equity commitments Progress towards $40M of commitments ▪ Fulfilled $1M commitment for We Care $4.3M $6.4M Rebuild to support minority-owned and small businesses $35M ▪ $5.9M paid towards $25M HBCU Promise to $5M support histo
Slide 42: DEI: Inaugural DE&I report
Social Diversity, Equity, & Inclusion: Inaugural DE&I report Workforce representation Pursuing improvements in our DE&I journey % of 2020 % of labor market ▪ Published external DE&I report headcount availability ▪ Published EEO-1 data Asian 2.1% 2.5% ▪ Commitment to increase workforce diversity by 1
Slide 43: DEI: Supplier relationships
Social Diversity, Equity, & Inclusion: Supplier relationships Overview Percentage of total procurement1 from diverse suppliers Dominion Energy works to ensure that a spectrum of businesses can participate in Represents over $800M of annual spend our procurement process. Including Increased by $60M+
Slide 44: Supply Chain sustainability
Social Supply Chain sustainability Overview Industry-leading initiative ▪ Supply Chain sustainability commitments: ▪ In September 2021, Dominion held the first of its kind Supply Chain Sustainability Conference ― Require 100% of identified key material and services suppliers to disclose greenhouse g
Slide 45: Appendix
Appendix 45 Please refer to page 2 for risks and uncertainties related to projections and forward looking statements
Slide 46: Compensation practices
Governance Compensation practices What we do: What we don’t do: ✓ Balance short-term and long-term incentives Allow payout of AIP awards or performance grants greater than 200% of target ✓ Place a substantial portion of NEO pay at risk and tie to enhanced shareholder value Offer long-term or ind
Slide 47: Coal-fired generation as percentage of total investment base
Environmental Coal-fired generation—, Zero-carbon— Coal fired generation as percentage of total investment base¹ Zero-carbon: Renewable² Zero-carbon: Nuclear Electric transmission/distribution Other Coal Coal: 7% Coal: 4% Other Other Electric Electric transmission/distribution Zero- transmission/d
Slide 48: 2019 CO2e emissions intensity
Environmental 2019 CO2e emissions intensity (MT / Net MWh) 1.14 Higher intensity 0.90 0.83 0.74 0.69 0.69 0.66 0.66 0.54 0.55 Average: 0.46 0.45 0.46 0.39 0.41 Lower intensity 0.27 0.27 0.27 0.22 0.22 0.10 0.05 0.07 0.00 A B C D E F D G H I J K L M N O P Q R S T U V Source: Evercore ISI equity resea