Dominion Energy, Inc. · NYSE:D
Dominion Energy — ESG Presentation (March 2019)
53 slides from Dominion Energy's sustainability presentation, Mar 25, 2019
Slide 1: Investor day ESG session
Investor day ESG session March 25, 2019
Slide 2: Important note to investors
Important note to 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 busines
Slide 3: Agenda
Dominion Energy Agenda CEO Perspective Governance Social Responsibility Environmental Conclusion Q&A Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 3
Slide 4: Our core values underpin ESG approach
Dominion Energy Our core values underpin ESG approach Embrace One Dominion Safety Ethics Excellence Energy Change (Teamwork) Best in class ESG Innovative Our highest Sustainable performance culture drives priority is keeping Doing right and performance helps drive long- approach to our employees doi
Slide 5: Agenda
Dominion Energy Agenda CEO Perspective Governance Social Responsibility Environmental Conclusion Q&A Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 5
Slide 6: Board refreshment and diversity
Dominion Energy Board refreshment and diversity Productive mix of age and tenure Board diversity a focus Age Mix Board Tenure Diverse 66 – 71 8 – 11 Years 11+ Years (4 Directors) (3 Directors) (2 Directors) (3 Directors) 46% Under 60 Average Other Dominion Energy under 60 (6 Directors) Tenure: (9 Di
Slide 7: Diverse Board expertise supports our strategy and ESG priorities
Dominion Energy Diverse Board expertise supports our strategy and ESG priorities Percent of Directors with significant expertise in strategic areas Corporate leadership 100% Experienced leaders capable of overseeing execution of strategy and challenging Corporate governance 100% management team Fina
Slide 8: Board committees demonstrate ESG focus and risk oversight
Dominion Energy Board committees demonstrate ESG focus and risk oversight Compensation, Sustainability and Governance and Finance and Risk Corporate Audit Nominating Oversight Responsibility Evaluates Oversees financial Oversees performance Oversees integrity of compensation policies, includ
Slide 9: Sustainability and Corporate Responsibility (SCR) Committee
Dominion Energy Sustainability and Corporate Responsibility (SCR) Committee SCR Committee oversees our company’s performance as a sustainable organization Composed of five independent Directors; chaired by Helen Dragas Meets at least three times annually Structure Conducts annual committee per
Slide 10: Executive compensation program highlights
Dominion Energy Executive compensation program highlights Program emphasizes variable incentive pay tied to challenging performance goals CEO: 90% of annual direct compensation opportunities tied to performance or stock-based Average officer: 76% of annual direct compensation opportunities tie
Slide 11: Agenda
Dominion Energy Agenda CEO Perspective Governance Social Responsibility Environmental Conclusion Q&A Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 11
Slide 12: Corporate culture supports effective human capital management
Dominion Energy Corporate culture supports effective human capital management Corporate Culture at Dominion Energy Formed around five core values Guided by robust ethics and compliance program Committed to innovation and embracing change Training and development Employee engagement Education
Slide 13: Workforce diversity
Dominion Energy Workforce diversity Diversity and inclusion (D&I) mission Best Employers for “To create a diverse and inclusive workplace Diversity (2018) that reflects the communities we serve” Best Employers for Women (2018) Current D&I initiatives Strategic oversight Recruiting CEO of Dominion
Slide 14: Supplier diversity
Dominion Energy Supplier diversity Supplier diversity is the right thing to do—it’s good Dominion Energy uses six business strategy and builds stronger communities supplier diversity classifications Dominion Energy partners with a number of advocacy organizations that help us develop relationshi
Slide 15: ESG program spans the entire organization
Dominion Energy ESG program spans the entire organization Board-level oversight: Dominion Energy Sustainability and Corporate Responsibility Committee—composed of Board of Directors five independent Directors—oversees company’s approach to environmental, social and reputational matters Board its
Slide 16: Environmental justice policy aids community engagement
Dominion Energy Environmental justice policy aids community engagement “Dominion Energy will be guided in meeting environmental justice expectations of fair treatment and sincere involvement by being inclusive, understanding, dedicated to finding solutions, and effectively communicating with our cus
Slide 17: Committed to robust ESG reporting and disclosure
Dominion Energy Committed to robust ESG reporting and disclosure Enhanced disclosures Status Reporting Standard Dominion Energy Sustainability and Online and Corporate Responsibility Report available now Edison Electric Institute (EEI) and American Gas Association (AGA) ESG/Sustainability Templa
Slide 18: Energy Innovation: Three-pronged approach
Dominion Energy Dominion Energy Innovation | Three broad categories of innovation strategies Three-pronged approach Grow the Business and Earnings Grow the Culture Enhance Performance Adjacent & exponential Ideation / innovation Utilize new technologies markets challenges guide accelerator B
Slide 19: Energy Innovation: Grow the business and earnings
Dominion Energy Dominion Energy Innovation | Grow the business and earnings Customer Solutions Autonomous Electric focused on using Transportation as a Dominion Energy’s community Grow the Business and Earnings assets to reduce sustainability solution Adjacent & exponential customer emissions mark
Slide 20: Energy Innovation: Grow the culture
Dominion Energy Dominion Energy Innovation | Grow the culture 15 Crowdsourcing Won Corporate Challenges completed Innovation Award from in 2018 across the Plug & Play Tech Center company to seek/draw Grow the Culture in 2018 out creative solutions Ideation / innovation challenges guide accelerator
Slide 21: Energy Innovation: Enhance performance
Dominion Energy Dominion Energy Innovation | Enhance performance Internal Knowledge Evaluating Articulating Network to solve Solar Tracker System to business and potentially reduce sustainability Enhance Performance environmental impacts challenges during construction Utilize new technologies Bi
Slide 22: Agenda
Dominion Energy Agenda CEO Perspective Governance Social Responsibility Environmental Conclusion Q&A Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 22
Slide 23: Transitioning to a clean energy future with new emissions reduction targets
Dominion Energy Transitioning to a clean energy future with new emissions reduction targets Intensity targets announced in Dec. 2018 Supplemental March 2019 emissions targets 60% 55% 80% reduction in reduction in reduction in carbon intensity by carbon carbon 2030 (vs. 2000) emissions by emissions b
Slide 24: Leadership on carbon intensity reductions
Dominion Energy Leadership on carbon intensity reductions Intensity target: 60% reduction in carbon intensity by 2030 (vs. 2000) Strategy to achieve 60% carbon intensity reduction 0.587 Continue transition to cleaner Million metric tons CO2 / Net MWh generation, including development of additional
Slide 25: Leadership on carbon emissions reductions and new targets
Dominion Energy Leadership on carbon emissions reductions and new targets Dominion Energy carbon emissions (million metric tons) Supplemental target: • 55% reduction in carbon emissions 70 Achieved 27 million metric ton by 2030 (vs. 2005) reduction (47%) since 2005 • 80% reduction by 2050 (vs. 2005)
Slide 26: Past success in methane reduction primes company for target
Dominion Energy Past success in methane reduction primes company for target Cumulative methane saved (billion cubic feet) Methane target: 50% reduction in methane Projected Projected - 2010 2011 2012 2013 2014 2015 2016 2017 2022 2030 emissions by 2030 from 2010 levels (5) Reduce or eliminate gas
Slide 27: Leadership in transparency
Dominion Energy Leadership in transparency Climate CDP Water CDP Describes how the company identifies and Provides an insight on current and future manages climate change risks and water-related risks and opportunities opportunities—and how this has factored into our financial planning process
Slide 28: Leadership in transparency (cont'd)
Dominion Energy Leadership in transparency (cont’d) EEI and AGA sustainability reporting templates Climate Report EEI and AGA templates: Lays out two hypothetical “two degree” scenarios which both address significant Provide a common set of metrics reductions in carbon emissions by 2050 target
Slide 29: Lowering our own carbon footprint
Gas Infrastructure Group Lowering our own carbon footprint Dominion Energy Utah Employees Participate in the “Clear the Air Challenge” • One month voluntary challenge to Clean the Air by reducing vehicle emissions – Eliminate unnecessary trips – Use public transportation, trip- chain, bike, walk or
Slide 30: Lowering our customers' carbon footprint
Gas Infrastructure Group Lowering our customers’ carbon footprint Driving Sustainable Change Building on Historic Success $200+ million customer rebates in Utah since 2007, resulting in energy savings equivalent to annual consumption of 93,000 homes $70 million spent in Ohio since 2008 on full-
Slide 31: Lowering our customers' carbon footprint: Renewable Natural Gas
Gas Infrastructure Group Lowering our customers’ carbon footprint Renewable Natural Gas (RNG) Attracting RNG onto Our System Waste methane from hog and What is RNG? dairy farms, food waste, landfills Equivalent to and wastewater treatment 100% Around-the-Clock Reduction in GHG RNG generates 24/7 on-
Slide 32: Lowering our communities' carbon footprint
Gas Infrastructure Group Lowering our communities’ carbon footprint Largest RNG Partnership in History How Agricultural RNG Works $250-million joint venture Global Industry between Dominion Energy & Leaders Smithfield Foods Four Initial 4 initial projects in NC, VA and UT Projects Lead to with goal
Slide 33: Providing broadband to underserved rural Virginia
Power Delivery Group Providing broadband to underserved rural Virginia Vision Leverage existing fiber and targeted expansion to serve as “middle mile” broadband resource for unserved customers VA Framework DOMINION ENERGY VIRGINIA as middle mile resource • Establishes middle-mile pilot 3rd Party ISP
Slide 34: EnergyShare Program – Serving communities in need
Power Delivery Group EnergyShare Program – Serving communities in need Energy Bill Home Education & Assistance Weatherization Outreach 22,000 homes since 820,000 families 1,000 communities program expanded in assisted since 1982 reached 2015 Made possible by partnerships with more than 75 non-profit
Slide 35: Electric vehicle strategy: Mission 2030
Power Delivery Group Electric vehicle strategy 3B X 30 MISSION 2030: DRIVING RESULTS By 2030, drive over 3 Billion miles of electric transportation in Virginia resulting in the avoidance of 1 Million Tons of Carbon Emissions. Please refer to page 2 for risks and uncertainties related to projections
Slide 36: Electric vehicle strategy
Power Delivery Group Electric vehicle strategy Comprehensive strategy to: 1 Accelerate electric vehicle adoption internally and externally 2 Maximize grid utilization 3 Reduce greenhouse gases through beneficial electrification initiatives PATH TO SUCCESS • Provide a seamless process to install char
Slide 37: Electric vehicle strategy near-term initiatives
Power Delivery Group Electric vehicle strategy near-term initiatives WALK THE TALK VA SCC FILING – SUMMER 2019 internal initiatives to external initiatives to facilitate demonstrate commitment electrification EMPLOYEES COMPANY FLEET CUSTOMERS INFRASTRUCTURE Workplace charging Launch online electric
Slide 38: Online Customer Educational Tool
Power Delivery Group Electric vehicle strategy near-term initiatives Online Customer Educational Tool digital toolkit to help our customers make smart transportation decisions FEATURES EV Basics Savings Calculator CO2 Reduction CO2 Reduction EV Models Incentives and Tax Credits Charger Finder Please
Slide 39: A Success Story – Reducing 2005 Carbon Footprint
Power Generation Group A Success Story – Reducing 2005 Carbon Footprint Dominion Energy Virginia Generation Plan: Embracing a Clean Energy Future 2017 IRP @ Year 2030 Capacity Nameplate (MW) Fossil Fuel Steam (coal, gas, oil) 5,151 Combined Cycle (gas) 8,156 Subtotal Fossil 13,307 Renewable Solar /
Slide 40: A Success Story – Reducing 2005 Carbon Footprint
Power Generation Group A Success Story – Reducing 2005 Carbon Footprint Embracing a Clean Energy Future Dominion Energy Virginia Generation Plan: 2017 IRP 2018 IRP @ Year 2030 @ Year 2030 Capacity Nameplate (MW) Fossil Fuel Steam (coal, gas, oil) 5,151 2,239 Combined Cycle (gas) 8,156 6,304 Subtotal
Slide 41: A Success Story – Reducing 2005 Carbon Footprint
Power Generation Group A Success Story – Reducing 2005 Carbon Footprint Embracing a Clean Energy Future Dominion Energy Virginia Generation Plan: 2017 IRP 2018 IRP @ Year 2030 @ Year 2030 Capacity Nameplate (MW) Fossil Fuel Steam (coal, gas, oil) 5,151 2,239 57% Combined Cycle (gas) 8,156 6,304 Redu
Slide 42: A Success Story – Reducing 2005 Carbon Footprint
Power Generation Group A Success Story – Reducing 2005 Carbon Footprint Embracing a Clean Energy Future Dominion Energy Virginia Generation Plan: 2017 IRP 2018 IRP @ Year 2030 @ Year 2030 Capacity Nameplate (MW) Fossil Fuel Steam (coal, gas, oil) 5,151 2,239 Combined Cycle (gas) 8,156 6,304 Subtotal
Slide 43: A Success Story – Reducing 2005 Carbon Footprint
Power Generation Group A Success Story – Reducing 2005 Carbon Footprint Embracing a Clean Energy Future Dominion Energy Virginia Generation Plan: 2017 IRP 2018 IRP @ Year 2030 @ Year 2030 Capacity Nameplate (MW) Fossil Fuel Steam (coal, gas, oil) 5,151 2,239 Combined Cycle (gas) 8,156 6,304 Subtotal
Slide 44: A Success Story – Reducing 2005 Carbon Footprint
Power Generation Group A Success Story – Reducing 2005 Carbon Footprint Embracing a Clean Energy Future Dominion Energy Virginia Generation Plan: 2017 IRP 2018 IRP @ Year 2030 @ Year 2030 Capacity Nameplate (MW) Fossil Fuel Steam (coal, gas, oil) 5,151 2,239 Combined Cycle (gas) 8,156 6,304 Subtotal
Slide 45: Generation Forward – Solar Site Pollinators
Power Generation Group Generation Forward – Charter Examples Solar Site Pollinators Evaluate and install pollinator friendly plants. Vegetation must provide ample ground cover, not exceed specific heights and provide annual erosion control; pilot forthcoming Drivers of success: Environmental sus
Slide 46: Generation Forward – Laser Technology Containment Liner Coating
Power Generation Group Generation Forward – Charter Examples Laser Technology – Containment Liner Coating Use laser technology ablation rather than solvents/manual paint-removal of the containment liner coating prior to and in preparation for repair/re-coat. Effort will result in ~33% reduction in
Slide 47: Agenda
Dominion Energy Agenda CEO Perspective Governance Social Responsibility Environmental Conclusion Q&A Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 47
Slide 48: Years of progress as an environmental and social steward
Dominion Energy Years of progress as an environmental and social steward… 1.5M >50% Volunteer hours Reduction in OSHA-recordable $0.3B injuries Charitable giving including EnergyShare ~50% program Reduction in carbon emissions Environmental Justice Policy 10 Bcf Adopted Reduction in methane in 2018
Slide 49: Has positioned us to continue setting ambitious goals
Dominion Energy …Has positioned us to continue setting ambitious goals 55% 130,000 Reduction in volunteer hours in carbon emissions 2019 by 2030 and 80% Reduction by 2050 Innovation, Technology and Sustainability 50% (ITS) Council Reduction in chaired by CEO methane emissions by 2030 Please refer to
Slide 50: ITS Council drives execution of strategic projects
Dominion Energy ITS Council drives execution of strategic projects Innovation team 3rd party technical Senior management (SVP + team) advisors Innovation, Technology, and Sustainability Council Board of Directors (Chaired by CEO) Behind the Off-shore Electric Marine teams throughout Solar RNG meter
Slide 51: Recent ESG accomplishments
Dominion Energy Recent ESG accomplishments 2018 “Trendsetter” 2018 World’s Most 2018 Best Employers Award Admired Companies for Women 2018 Military Times “Best 2019 Best Company to 2018 Best Employers for Vets Employer” Work For for Diversity Ranked in top quartile of utilities 4th largest solar fle
Slide 52: Our core values underpin ESG approach
Dominion Energy Our core values underpin ESG approach Embrace One Dominion Safety Ethics Excellence Energy Change (Teamwork) Best in class ESG Innovative Our highest Sustainable performance culture drives priority is keeping Doing right and performance helps drive long- approach to our employees doi
Slide 53: Agenda
Dominion Energy Agenda CEO Perspective Governance Social Responsibility Environmental Conclusion Q&A Please refer to page 2 for risks and uncertainties related to projections and forward looking statements. 53