Duke Energy

Duke Energy does not report any R&D expenditure. There is no financial data available to indicate how much Duke has invested in low-carbon R&D. However, in 2022 Duke spent USD 4 million in R&D investments on smart grids. Duke Energy has also begun construction of a floating solar project. However, no investment information could be found regarding this project. In order to improve its climate transition alignment, Duke should report its total and low-carbon R&D investments.

Duke Energy has committed to a coal phase-out by 2035 across its entire business, except for the Edwardsport integrated gasification combined cycle (IGCC) plant. Duke expects its 2030 portfolio to still comprise 46% gas (increase of 4% from 2022). In 2030, Duke expects coal or oil to represent 5% of its total portfolio. Duke is targeting for net-zero scope 1 and 3 emissions by 2050. However, as a business operating in an advanced economy, to meet the International Energy Agency’s (IEA’s) Net Zero Emissions (NZE) Scenario, Duke should aim to reach net zero by 2035. In the coming years, Duke is expected to rely on gas as a transitionary fuel and describes fossil gas as a low-carbon fuel source. In order to align with a 1.5°C pathway, Duke should prioritise low-carbon energy generation, including its solar, wind and nuclear projects, over its gas-based energy assets.

Duke Energy discloses plans to decarbonise but lacks a thorough transition plan that includes short- and long-term transition actions and financial disclosures, such as low-carbon R&D investments and carbon pricing. Duke has strong greenhouse gas (GHG) emissions targets for 2030, 2040 and 2050 across its scope 1 and scope 3 emissions. It has also conducted scenario analysis focused on its scope 1 emission goals of 50% emissions reduction by 2030 and net zero by 2050. In addition to these efforts, Duke should establish a time-bound climate action plan that outlines how it will transition to a low-carbon economy. This should include updates on the progress of its scope 1 and scope 3 emissions reduction targets and its investments towards increasing its renewable energy portfolio.

Duke Energy is actively developing business models for a low-carbon future. Duke is piloting vehicle-to-grid (V2G) and vehicle-to-building electric vehicle (EV) technologies. The company also recently announced a pilot project in collaboration with Ford (still awaiting approval from the North Carolina Utilities Commission), which aims to provide incentives to customers to allow their eligible EVs to feed energy back to the grid to help balance peak demand. However, the current and future size of these business models is proportionally small in comparison to the size and scale of Duke’s fossil fuel-based electricity generation capacity. In 2022, fossil fuel power generation made up over 59% of Duke’s sold electricity portfolio.

Duke has set a phase-out date of 2035 for coal-based energy generation. The company has three emissions reduction targets relating to its scope 1 emissions. Over the next 20 years, Duke is aiming to reduce its scope 1 emissions by 50% by 2030, 80% by 2040 and 100% by 2050, compared to 2005. Duke’s climate targets are based on the assumption that all its nuclear plants are relicensed for an additional 20 years and that all coal units, except the Edwardsport IGCC, are retired by 2040. Duke is also aiming to reduce its scope 3 emissions from purchased electricity sold to end-customers by 100% by 2050, compared to 2021.

Duke Energy discloses plans to decarbonise but lacks a thorough transition plan that includes short- and long-term transition actions and financial disclosures, such as low-carbon R&D investments and carbon pricing. Duke has completed scenario analysis that is focused on its scope 1 carbon reduction goals of 50% by 2030 and net zero by 2050. Duke has stated that its general climate strategy has been influenced by climate-related risks and opportunities. It has also stated that over the next five years, its USD 63 billion capital plan is focused on clean generation and grid investment.

Duke currently owns, operates or contracts 11,900 megawatts (MW) of wind and solar power. The company aims to have 30,000 MW of wind and solar power generation by 2035. In 2022, fossil fuel power generation made up over 59% of Duke’s portfolio. Duke plans to invest more than USD 600 million in battery energy storage by 2025 to support its growing renewables portfolio. As of 2022, Duke Energy had installed smart electric meters for more than 80% of its customers.

Duke Energy’s emissions intensity decreased between 2017 and 2021. Since 2012, the company has been working to install 8.3 million smart meters across six US states. Duke Energy has committed to a coal phase-out. Between 2018 and 2022, the company has submitted 19 patent applications, 12 of which (63%) were related to low-carbon activities. Duke does not report any research and development (R&D) expenditure over the last three years. There is no financial data available to indicate how much Duke has invested in low-carbon R&D.

Duke uses an internal shadow price. However, this price is well below the IEA NZE’s 2025 recommended price of USD 75 per tonne of CO2 for advanced economies and USD 45 per tonne for developing economies. Duke has set a coal phase-out date of 2035. Over half of its coal assets are to be converted to gas plants and the remaining plants are to be shut down. Duke is expected to rely on gas as a transition fuel and describes fossil gas as a low-carbon fuel source.

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, it discloses the actions it takes to promote employment as a result of upcoming and near-term coal retirements. However, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. No relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, it develops a multiskilling program for 500 coal plant workers to provide them with the skills needed to generate reliable power. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. No evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights. However, no evidence that the company commits to respecting the ILO fundamental rights at work, nor does it expects its business relationships to respect the same commitment. Moreover, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. No evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. No evidence was found that the company commits to gender equality and women’s empowerment.

While the company commits to protecting personal data, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its corporate income tax paid for each relevant jurisdiction, no relevant disclosure was found of the global tax strategy. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no evidence that the company has a lobbying and political engagement policy, nor does it specifies that it does not make political contributions. The company discloses its expenditure on lobbying activities.