Dominion Energy Broadens Net Zero Commitments

Rhea-AI Summary

Dominion Energy is expanding its Net Zero commitments to encompass emissions beyond its direct operations, targeting both Scope 2 and material categories of Scope 3 emissions. This ambitious initiative aims for Net Zero carbon and methane emissions by 2050. The company plans to engage with suppliers and customers to decarbonize, initially focusing on three critical areas: electricity purchased for the grid, fuel for power stations, and consumption by gas customers. Supported by state officials and industry leaders, Dominion is investing in cleaner energy solutions, including renewable natural gas and hydrogen technology.

Positive

• Dominion is expanding its Net Zero commitments beyond direct operations.
• Focus on engaging suppliers and customers to reduce Scope 2 and Scope 3 emissions.
• Investment in renewable energy and innovative technologies like hydrogen.

Negative

• None.

RICHMOND, Va., Feb. 11, 2022 /PRNewswire/ -- As one of the nation's leading clean-energy companies, Dominion Energy is broadening efforts to limit greenhouse gas emissions. Building on plans to achieve Net Zero carbon and methane emissions from power generation and natural gas operations by 2050, Dominion Energy will now work to achieve Net Zero for emissions outside of the company's direct operations. These include emissions generated downstream by customers and upstream by suppliers.

Dominion Energy's Net Zero commitments are among the boldest yet in the utility sector.

"These commitments are a natural next step, building upon our industry-leading programs to drive down carbon and methane emissions within our own operations. We are now formalizing our efforts to help customers and suppliers decarbonize, as part of our work to build a clean and sustainable company. Setting goals helps drive the innovation and focus we need to succeed. We're already making progress on these vital goals and will continue to do so in the months and years to come," said Robert M. Blue, Dominion Energy's chair, president and CEO. "As we do, we will never lose sight of our fundamental responsibility to customers — to provide safe, reliable and affordable energy around the clock."

With today's announced expansion, Dominion Energy's Net Zero commitments not only cover those emissions within the company's direct control, they now cover what are known as Scope 2 and material categories of Scope 3 emissions. Scope 2 emissions are those emitted from electricity the company consumes, but does not generate. Scope 3 emissions are generated downstream of company operations by customers and upstream by suppliers.

Notably, the company will focus on achieving progress in three material Scope 3 categories: electricity purchased to power the grid, fuel for our power stations and gas distribution systems, and consumption by natural gas customers. These areas cover nearly all of the Scope 3 emissions measured and reported in the company's 2021 Climate Report. The company plans to reduce these emissions through programs focused on supplier engagement, customer empowerment, constructive public policy and technology innovation. 

Consistent with company strategy, Dominion Energy is investing to make electricity and natural gas cleaner. Among other things, the company is building industry-leading solar and renewable natural gas (RNG) portfolios, developing the largest offshore wind project in North America, modernizing gas distribution networks, relicensing nuclear plants and piloting use of hydrogen.

Here are some of the steps Dominion Energy is taking to address the expanded Net Zero commitments:

• Supporting federal methane regulation.
  
  
• Developing and advancing procurement practices that encourage transparency through enhanced disclosures by upstream suppliers on their emissions and GHG reduction programs, including specific commitments.
  
  
• Preferencing offers for Responsibly Sourced Gas and/or those suppliers committed to Net Zero, consistent with the company's reliability, service and cost obligations.
  
  
• Developing plans, which will require collaboration with policymakers and regulators, to increase access to RNG for Dominion Energy customers, such as the company's voluntary GreenTherm program.
  
  
• Pursuing innovative use of clean-burning hydrogen. A company pilot program in Utah confirmed that distribution system and appliance performance are not impaired with at least a 5% hydrogen blend.
  
  
• Pursuing reductions in the carbon intensity of power sourced from the market, consistent with the company's responsibility to maintain customer reliability and affordability.
  
  
• Continued investment in energy efficiency, working with state regulators as the company develops new and expanded programs to promote conservation by customers.

Support offered for Dominion Energy's Net Zero plans: 

• Utah Gov. Spencer J. Cox: "Dominion has a commitment to community and quality of life. As a strong strategic partner with the state of Utah, I applaud their efforts to adapt, find new solutions, and continue to provide affordable and durable energy, while looking for ways to lead through innovation."
  
  
• Sean McGarvey, President of North America's Building Trades Unions: "Transitioning to a clean energy economy requires investments in infrastructure across the whole value chain, from renewable energy to modernizing our electric grid and natural gas systems, to utilizing domestic supply chains. This has been the cornerstone of the unionized construction industry. Dominion Energy has been a strong partner with the Building Trades as the company undertakes these projects and continues to expand its use of domestic manufacturing. We applaud this new commitment and look forward to a continued partnership in executing the projects necessary for their achievement."
  
  
• Nat Keohane, President, Center for Climate and Energy Solutions (C2ES): "Achieving zero-emissions electricity and reducing methane emissions from natural gas are must-have elements of meeting Paris Agreement goals. Dominion's expansion of its net-zero target is a step toward meeting those objectives and provides an important signal to the marketplace. We look forward to working with Dominion as it continues to escalate ambition and eliminate climate pollution."

About Dominion Energy
About 7 million customers in 13 states energize their homes and businesses with electricity or natural gas from Dominion Energy (NYSE: D), headquartered in Richmond, Va. The company is committed to sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050. Please visit DominionEnergy.com to learn more.

This news release includes certain "forward-looking information." Examples include information as to our commitment to achieve net zero and plans as to how to achieve that goal. Our ability to reach this goal is influenced by many factors that are difficult to predict, involve uncertainties that may materially affect actual results and are often beyond our ability to control or estimate precisely. We have identified and will in the future identify in our SEC Reports on Forms 10-K and 10-Q a number of factors that could cause actual results to differ from those in the forward-looking statements. We refer you to those discussions for further information. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which it is made.

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SOURCE Dominion Energy

FAQ

What are Dominion Energy's new Net Zero commitments?

Dominion Energy is expanding its Net Zero commitments to include emissions generated by suppliers and customers, targeting Scope 2 and material Scope 3 emissions.

When does Dominion Energy aim to achieve Net Zero emissions?

Dominion Energy aims to achieve Net Zero carbon and methane emissions by 2050.

What are Scope 2 and Scope 3 emissions?

Scope 2 emissions come from electricity the company consumes but does not generate, while Scope 3 emissions include those generated downstream by customers and upstream by suppliers.

How is Dominion Energy planning to reduce emissions?

The company plans to reduce emissions through supplier engagement, customer empowerment, public policy advocacy, and technology innovation.

What technologies is Dominion Energy investing in for cleaner energy?

Dominion Energy is investing in renewable natural gas, solar energy, and exploring hydrogen technology.