Dominion Energy® The Business Case for Diversity in the Law Dominion Energy® The Business Case for Diversity in the Law “Time For Action” May 7, 2018

The Business Case for Diversity In Law WHY CARE ABOUT DIVERSITY? It Is The Right Thing To Do Better Decisions and Better Outcomes (diverse groups work harder) Empathy Reveals Blind Spots (environmental justice) Allows the Team to Mirror the Customer (or the Opposition) Society Changes (gender roles) The Laws Reflect the People (sexual identity) We Can’t Lag Behind that Change (solar) Source: https://hbr.org/2016/09/diverse-teams-feel-less-comfortable-and-thats-why-they-perform-better May 7, 2018

Diverse Teams Yield Better Outcomes 2009 analysis of 506 companies found that firms with more racial or gender diversity had more sales, more customers and greater profits. 2016 analysis of more than 20,000 firms in 91 countries found that companies with more female executives were more profitable. 2011 study showed that management teams exhibiting a wider range of educational and work backgrounds produced more innovative products. 2006 study of mock juries found that when black people were added to a jury, white jurors processed the case facts more carefully and deliberated more effectively. 2009 study showed that diverse teams were twice as likely to get to the correct answer as homogenous teams. Source: https://hbr.org/2016/09/diverse-teams-feel-less-comfortable-and-thats-why-they-perform-better May 7, 2018

The Paradoxes-”Color-Blind” and “Gender- Neutral” Working Hard but Can’t Move the Needle May 7, 2018

Many Diversity and Inclusion Programs are Toothless Tigers May 7, 2017

Many Diversity and Inclusion Programs are Toothless Tigers Too Many Programs Not Enough Action Law is a Relationship Business Building Relationships Requires Personal Investment Innovation is Required to get Different Outcomes A True Commitment Requires an Institutional Resolve Can’t keep doing the same things and expecting a different outcome bankreformnow.com.au

How to Truly Improve Diversity and Inclusion Law Departments and Law Firms Must Begin to Think and Do Things Differently: Recruit Earlier and at Different Places (eg: Joe Montana and Tom Brady) Hire Differently (1Ls, Same-day onsite) Mentor and Sponsor Openly (Make them know they are supported) Promote When They are Ready (Don’t use artificial tracks) Be Deliberate about Business Development/Client Exposure Don’t Let Scrooges Supervise Departments (People quit because of bad bosses) Confront the Myth of Meritocracy*: Leadership and Motivation Matter as much as Grades and Law Review in Practice Eliminate the Procedural Games that we know are Manipulated: i.e. Job descriptions, short postings and stacked interview panels (fit decisions) What is the more significant risk?—reverse discrimination or loss of competitiveness? Why is the tail waging the dog? *2003, the Minority Corporate Counsel Association commissioned a study titled “Creating Pathways to Diversity—The Myth of Meritocracy: A Report on the Bridges and Barriers to Success in Large Law Firms.” May 7, 2018

What Firms Can Do Change leadership’s mindset Diversity isn’t simply a PR move, it’s vital to the Firm’s success Help increase the critical mass of diverse students in law school Initiatives or scholarships for legally inclined high school and college students who are inclined to pursue careers in law Mentoring and Sponsorship programs for diverse associates Ensure that diverse associates get client contact Create a “Diversity Partner” position with matching responsibilities Provide training that helps partners become aware of implicit biases May 7, 2018

What General Counsel Can Do: Create Direct Relationships with diverse associates/partners at law firms Relationships with big clients are key to promotion in firms Direct origination/billing credit to them Withhold fees from law firms that don’t meet targets (see HP’s new policy) Bonus firms that meet targets in leadership ranks (see Microsoft’s policy) Create a meaningful dialogue between outside counsel & yourself Explain diversity policy & why it’s important to maintain your business Conduct diversity surveys Hold diversity forums to bring In-House and Diverse Counsel together Hold senior in-house attorneys accountable for diversity spend goals ENFORCE your policies: Only 1/23 of managing partners report losing business over a failure to meet a client’s diversity demands Relationships: Companies can now track who specifically is doing work for them – ensure that diverse attorneys are doing substantive work and building relationships with you Providing bonuses: Microsoft did this and it increase “diverse representation” in their law firms’ management committees from 31.2% to 34.4% Enforcement: Audit diversity statistics from firms OR build actual relationships with diverse attorneys to ensure they’re doing real May 7, 2018

Dominion Energy Legal Diversity Initiatives Goal: To encourage the development of substantive relationships with diverse legal service providers in order to ensure a consideration of broad perspectives and approaches in the development of legal solutions and strategies to facilitate our client’s business objectives. Each legal group will support achieving a total of 100 points by awarding matters to a diverse or veteran owned firm (worth 2 points) or in the alternative a minority lead attorney when the firm is not diverse (worth 1 point). Two additional points can be earned for use of a diverse or veteran owned firm or a minority lead attorney when the firm’s/attorney’s billable hours on the matter are greater than 100 hours. (Factor in merit pay consideration) Diverse Attorney In-House Counsel Forum Bi-Annual Diversity Survey Leadership Council on Legal Diversity Participation (Two Fellows and 2 LCLD 1L students) Diversity Scholarship Program coupled with Internships On-site Interviewing and Hiring for Exceptional Diverse Candidates Five Employee Resource Groups Women Focused Leadership Development Program with Male Ally participation Company-wide Annual Diversity and Implicit Bias Training Note: The word “qualified” is not included in the goal because it is always presumed. May 7, 2018