Creating Shareholder Value

Governance & Risk

Most of what goes right with an enterprise — and most of what goes wrong with it — can be traced back to decisions made at the top.

Good corporate governance and risk oversight promote well-informed, effective decision-making and ensure that Dominion Energy remains a reliable steward of the resources in our care and a trusted partner to our customers and communities.

Governance Structure

For Dominion Energy, governance extends beyond the top of the organizational chart. It encompasses the manner in which we operate, including the management of risk.

Dominion Energy’s experienced, engaged and diverse Board of Directors oversees the company’s management and direction and is led by our Chair and an active, independent Lead Director with robust and well-defined duties. The Board has a fiduciary duty to uphold business and investor interests. Accordingly, our Board of Directors has oversight of the company’s environmental performance and sustainability initiatives, along with our long-term growth strategy.

The Board of Directors operates through five committees: Audit, Compensation and Talent Development, Finance and Risk Oversight, Nominating and Governance, and Sustainability and Corporate Responsibility (SCR). The Board formed its SCR Committee in 2018 and in 2021 separated its former Compensation, Governance and Nominating Committee into two committees – Compensation and Talent Development and Nominating and Governance – in its ongoing effort to incorporate governance best practices.

Sustainability and Corporate Responsibility Committee

The SCR Committee is composed of independent directors who oversee the company’s performance as a sustainable organization and responsible corporate citizen, including oversight of strategies, activities, and policies regarding environmental sustainability, climate strategy, corporate social responsibility, and public issues of significance that might affect company stakeholders — including shareholders, employees, customers, and the communities in which the company operates. Each of the SCR Committee’s meetings in 2020 was devoted primarily to environmental, social, and governance (ESG) matters.

Management

Effective management of the company’s strategy and operations starts with the CEO and the senior leadership team, which consists of six senior officers who report to the CEO. Together, they develop and oversee the company’s sustainability strategy and initiatives.

The senior leadership team carries out oversight of climate strategy3 specifically through the following governance structure:

  • A Climate Council – composed of the CEO, the CEO’s leadership team, and operating unit presidents – which develops and oversees sustainability strategy and initiatives and reviews the company’s sustainability commitments and performance (meets quarterly);
  • A Climate Working Group – composed of senior leadership and subject-matter experts – which manages key initiatives at the direction of the Climate Council (meets monthly); and
  • A Net Zero Team – composed of a subset of the Climate Working Group plus business-unit advisers – which supports the Climate Council on achieving climate goals and evaluates policy and technology developments in clean energy.

Human Rights, Workplace Expectations, and Supplier Expectations

Dominion Energy believes every person has a right to be treated with dignity and respect; to exercise autonomy and self-determination; to receive fair and equal treatment; and to work in a safe and supportive workplace regardless of individual attributes or membership in a demographic class. This commitment to human rights covers all of the company’s operations and sets the expectation for suppliers as well.

Supplier Code of Ethics and Business Conduct

Dominion Energy expects all suppliers to share our commitment to ethics and compliance. Our Supplier Code of Ethics and Business Conduct outlines these minimum expectations, including in the areas of human labor practices, responsible sourcing, environmental compliance, sustainability, and the health and safety of suppliers’ employees.

Risk Oversight

Dominion Energy’s Board of Directors oversees our long-term strategy and the various risks the company faces, including climate-related risk. The Board believes that the company’s interests are advanced by responsibly addressing these risks, whether they are operational, financial, regulatory, or strategic in nature.

While the Board and its committees oversee risk policies, company management carries them out. The company has robust enterprise risk management (ERM) processes embedded throughout the organization. We identify and assess, at least annually, major risks at the corporate level and for each of our key operating segments and report those findings to the Board. We are committed to discussing our approach to risk management in our external reporting, including our SEC filings and our most recent Climate Report.

The company’s approach has always been to employ the Precautionary Principle — which is to minimize known risks and mitigate risks that are not yet fully understood, but for which there are indications of possible future events or outcomes.

In 2020, we announced our support for the TCFD and its recommendations, which provide guidance to organizations on providing information to investors, lenders, insurers, and others on the business risks and opportunities presented by climate change.

Cybersecurity

Our Strategy

We recognize cyber threats as a key risk for our company and our industry. To minimize that risk, we employ an extensive system of rigorous security protocols, overseen by experts responsible for protecting against cyberattacks. We deploy cybersecurity controls using a defense-in-depth approach, strengthening our posture to identify and prevent external attacks as well as insider threats. We revise the cybersecurity strategic plan at least annually and provide status updates and performance metrics to the Board of Directors and senior leadership.

We maintain industry-leading relationships with government agencies, trade groups, and other energy sector elements — including the Federal Bureau of Investigation (FBI), the Department of Homeland Security (DHS), and the Electricity Information Sharing and Analysis Center (E-ISAC) — to obtain actionable intelligence information, to mitigate threats, close gaps, and identify vulnerabilities, and to help assess the overall security posture of the organization. These partnerships are instrumental components of our cybersecurity program to ensure that information and critical infrastructure remain protected from cyber threats.

Political Participation

As a company whose operations are subject to extensive regulation throughout its multi-state service areas, Dominion Energy participates in the political process at the local, state, and national levels. We believe an open, transparent, and accessible political process is one of the most important components of a successful democracy, so we encourage all our stakeholders to participate. We support both the letter and the spirit of all applicable federal and state laws governing our political activities and our actions, holding ourselves to the highest ethical standards. By actively participating in the political process, we help shape policies that advance our business strategies and goals, promote effective public and government relations, and serve the interests of key stakeholder groups.

Dominion Energy operates a political action committee, or PAC, which is strictly voluntary and nonpartisan. Membership is open to eligible employees and shareholders.

We strive to conduct our business as transparently as possible engaging elected officials, regulators, environmental and safety agencies as well as community and business leadership in hopes of building public trust and forming lasting and mutually beneficial partnerships.

We routinely evaluate our approach to political contributions and participation. To learn more, please visit our Political Contributions & Participation website.

Transparency

Every year we voluntarily report the corporate political contributions we make to tax-exempt 527 organizations, 501(c)(4) organizations that appear to use some funds for political purposes, trade associations and other tax-exempt organizations to which we contribute $50,000 or more, the portions of our payments attributable to lobbying, and payments greater than $50,000 in the aggregate to national 501(c)(3) tax-exempt organizations whose predominant purpose is to provide venues for the exchange of ideas on matters of public policy. Dominion Energy's policies ensure that all corporate political donations made by the company are in full compliance with all applicable federal and state election laws, rules and regulations. In addition, we disclose our political contributions on the website of the Federal Election Commission and the electoral board website of the states in which we contribute to state and local elections. Because of such efforts, the Center for Political Accountability has again recognized Dominion Energy as a “trendsetter” for transparency regarding political contributions disclosure. Contribution reports can be found hereClick to open Contributions Reports page.

We maintain a lobbying and political contributions policy, which is available here Click to open Dominion Energy Lobbying and Political Contributions Policy PDF. The policy governs Dominion Energy’s lobbying activities, including direct, indirect, and grassroots lobbying; our participation in trade associations; and our political contributions.

To increase accountability, the Audit Committee of our Board of Directors maintains oversight of political contributions and lobbying.