Sustainability Philosophy

As we refine our sustainability strategy, it is critical for us to understand what aspects of sustainability our stakeholders value – and which ones they value most.

In early 2022, we conducted a Sustainability Priorities assessment in partnership with the Electric Power Research Institute (EPRI). We undertake this work periodically to better understand which sustainability issues our stakeholders consider most material – and also how certain issues rank in terms of priority compared to others. This is one important way we ensure we are listening to those who matter, as results inform our sustainability strategies and reporting.

The process involved detailed research and multiple rounds of direct engagement with both internal and external stakeholders — including customers, employees, investors, non-governmental organizations (NGOs), suppliers, and community leaders. First, an extensive review of internal and external literature was used to create a preliminary list of sustainability issues and accompanying descriptions. The list was then refined through engagement with company representatives and external stakeholders. Finally, stakeholders were surveyed on the priority each issue merited and also the perceived impact our company can have on that issue. The resulting list of Sustainability Priorities was presented to members of the Dominion Energy leadership team for validation.

The matrix included in this report reflects the results of this process. Though the matrix suggests certain issues hold more importance than others, it is imperative to note that each issue is a priority for Dominion Energy and our stakeholders and influences the company’s sustainability strategy.

This report seeks to capture Dominion Energy’s actions and disclosures in these critical areas.

The company’s commitments reflect our priorities as a company, together with a judgment about how best to support customers, employees, investors and the communities we serve. Those commitments are consistent with the United Nations Sustainable Development Goals (UN SDGs), which provide a blueprint for businesses, governments, and other organizations to work together.

As the table nearby demonstrates, our business focus areas — and the commitments we have made to guide our progress in each of these — map to many elements of the UN SDGs. We know our company can play a key role in advancing sustainable development.

While our Sustainability & Corporate Responsibility Report (SCR) largely reflects our accomplishments from the preceding year, we recognize that our stakeholders are interested not only in how we have performed, but also in what we commit to do in the future. Whether through one of the nation’s largest solar and renewable gas portfolios, or the largest proposed offshore wind farm on this side of the Atlantic Ocean, Dominion Energy is committed to leading the clean-energy transition. We continue serving our 7 million gas and electric customers safely, reliably, affordably, and sustainably. Our core commitments include:

• Serving our customers by safely delivering reliable, affordable, and sustainable energy.
• Strengthening our communities through our energy-assistance programs, charitable giving, and focus on environmental justice.
• Empowering our employees to reach their full potential.
• Serving our investors by earning returns on and being good stewards of their investments.
• Protecting the environment by cutting emissions and preserving natural resources.

Historically, we have outlined our “Performance Against Commitments” and “Forward-Looking Commitments” as separate documents, and since 2018 we have mapped sections of our SCR Report to the UN SDGs. This year we are taking a different approach by combining these documents and mapping to the UN SDGs our business priorities, performance, and commitments. Grounding our approach to commitments in an internationally recognized framework of sustainable targets enables us to provide more meaningful performance updates.

This new format dictates some changes in how we describe our commitments. Some items that were previously listed as commitments – for example, the commitment to discuss environmental, social, and governance (ESG) matters at each regularly scheduled meeting of our Board of Directors — have become integrated into our culture. Rather than a goal, they now define a standard for how we operate. Henceforth, any forward-looking commitments referenced in the Business Focus column are intended to reflect aspirational goals – especially those against which we can be measured.

Dominion Energy’s sustainability focus extends to the way we finance our daily operations. In 2021, the company entered into two sustainability-linked credit facilities totaling $6.9 billion, including a $6 billion master credit facility that ties certain pricing parameters to the achievement of annual renewable electric generation and diversity and inclusion milestones. A separate $900 million credit facility, believed to be one of the earliest such financing structures in the market, provides a reduced interest rate when our borrowings are used to fund clean generation infrastructure or social investments such as supporting diverse-owned businesses, enhancing diversity within our workforce, or supporting marginalized populations within our communities. In addition, we issued $1 billion in green bonds in 2021 to finance eligible clean energy projects. Taken together, these financings support our sustainability objectives and provide additional flexibility to finance our potential $37 billion, five-year growth capital plan — more than 85% of which is slated for emissions-reduction and enabling investments.