With minimal exceptions, this edition of our annual Sustainability and Corporate Responsibility Report covers the activities of Dominion Energy for the calendar year 2020. While we are proud of this record, we are focused on key developments that will drive future actions and carry out our strategy to become the most sustainable energy company in the country.
Addressing Climate Change
Dominion Energy is committed to doing our part to address climate change. We are reducing carbon and methane emissions
in our operations. We are also helping our customers do the same.
We have worked for two decades to diversify and transform our generation portfolio to support our low-carbon goals. At the same time, we have implemented an aggressive plan to reduce methane emissions from our gas infrastructure. We will continue transitioning our fleet and working to reduce carbon and methane emissions across our electric and natural gas infrastructure.
In February 2020, we announced a new emissions reduction goal: net zero emissions of both carbon dioxide and methane, from both our electric and gas businesses, by 2050. In November 2020, we announced our formal support for the Task Force on Climate-related Financial Disclosures (TCFD). In July 2021, our company released a new Climate Report. The report examines the risks and opportunities presented by global warming, details how Dominion Energy is addressing them, and incorporates a scenario analysis exploring pathways to a carbon-free future.
Over the past several years, Dominion Energy has taken steps to narrow its strategic focus to premier, state-regulated, sustainability-focused, utility operations. In 2020, we announced the sale of substantially all our gas transmission and storage business. This strategic repositioning will allow the company to highlight the value of our increasingly green energy profile — something frequently emphasized by investors and stakeholders alike — and to focus even more on fulfilling utility customer needs and positioning the company for a prosperous and increasingly sustainable future.
Social Justice & Diversity
Dominion Energy’s core value of ethics embodies our belief that everyone has the right to be treated with dignity, fairness,
and respect, and that everyone has a duty to treat others the same way. Dominion Energy has long been committed to the principles
of diversity, equity, and inclusion (DE&I), and has supported the cause of social justice for many years.
In 2020, as the nation grappled with unresolved inequities, Dominion Energy approached questions of racial and social justice with a sense of purpose. For example:
- We created the HBCU Promise, a six-year, $25 million commitment in support of Historically Black Colleges and Universities to provide a long-term path to address educational and economic inequity;
- We created a $10 million educational equity scholarship fund to help students from underrepresented communities1 defray the cost of higher education, which we know is the greatest equalizer;
- We established a $5 million fund to support nonprofits doing the work of social justice and community rebuilding, including the We Care Rebuild Project and Lawyers' Committee for Civil Rights Under Law;
- We launched a series of company conversations led by our senior-most executives about race and social justice to bring greater awareness and a supportive environment for employees to speak openly about current events; and
- We announced a new personal holiday to honor Juneteenth.
We plan to continue with these and other efforts in the coming years. Dominion Energy also seeks to promote social justice through other avenues.
These include our Environmental Justice policy (see the corresponding section in this report),
as well as our commitment to diversity, equity, and inclusion, starting at the executive level: Diverse individuals make up more than half our CEO’s executive leadership team.
In 2021, we also produced our first DE&I report, which covers our actions in these areas in detail, particularly regarding EEO-1 demographic workforce data. That report notes the progress we have made — such as increasing our diverse hiring rate by 13.4 percentage points from 2016 through 2020. We continue to increase diverse representation in our workforce, and we have steadily increased the share of our procurement spending devoted to diverse suppliers. Finally, the report provides a frank assessment of areas where we still have room to improve.
For Dominion Energy, social justice is not a fad; it is an enduring ideal that we will continue to pursue.
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 the first of its kind globally, 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 $32 billion, five-year growth capital plan — over 80% of which is slated for emissions-reduction and enabling investments.
The Flexible Workplace
During the course of the coronavirus pandemic, we learned important lessons from our employees — including how effectively many of our roles can be done from home. Although employees who had been working remotely began returning to the office or worksite in July 2021, we also began piloting a hybrid work model. For the first year, employees in flexible roles have the opportunity to work remotely part of the time, enabling them to reduce travel and travel-related emissions while maintaining in-person relationships with their colleagues and supporting our One Dominion Energy core value.