Duke Energy's Community and Sustainability Commitment: Insights for Investors

Duke Energy's Community Engagement and Stakeholder Feedback

Duke Energy actively engages with stakeholders to enhance customer options and sustainability initiatives, driven by feedback. Their collaboration with local partners has attracted over $22 billion in investments, creating 15,000 jobs, while the Duke Energy Foundation contributes over $30 million annually to community needs, reinforcing their commitment to impactful community engagement.

"Duke Energy continues to expand its scope of customer options and programs built with critical stakeholder feedback to enable these customers and prospective customers to meet their sustainability goals. Executive Order 14057 has established targets for federal agencies to reach 100% carbon-free electricity by 2030, with 50% matching on a 24/7 basis." --- (DUK, press release, 2024/06/18)

"We appreciate the feedback and we'll continue to seek innovative solutions to meet the needs of our customers." --- (SO, event transcript, 2024/05/22)

"We also work with state and local partners to help attract more than $22,000,000,000 in new capital investments, which created over 15,000 new jobs in our service territories. And I am particularly proud to report that 2023 marked our best safety performance in Duke Energy history." --- (DUK, event transcript, 2024/05/09)

""We were very fortunate to receive this funding and look forward to our continued relationship with Duke Energy." Duke Energy Foundation The Duke Energy Foundation provides more than $30 million annually in philanthropic support to meet the needs of communities where Duke Energy customers live and work." --- (DUK, press release, 2024/06/04)

""As a company, we power the lives of our customers but we also want to make a difference in the lives of the customers and communities we serve." Duke Energy Florida Duke Energy Florida, a subsidiary of Duke Energy, owns 12,300 megawatts of energy capacity, supplying electricity to 2 million residential, commercial and industrial customers across a 13,000-square-mile service area in Florida." --- (DUK, press release, 2024/06/04)

Key Sustainability Initiatives and Their Financial Impact

Duke Energy's sustainability initiatives focus on meeting customer goals while ensuring affordability and reliability. Their investments in education and decarbonization projects, such as the Green Source Advantage program, are expected to enhance community impact and financial performance, reflecting a commitment to long-term sustainability.

"We're trying to meet the load. We're trying to meet their sustainability goals, we're trying to do so in a way that protects retail customers, we're trying to meet their time lines." --- (DUK, earning call, 2024/Q2)

"Our planning process considers a host of factors, including affordability, reliability, safety, environmental impacts and resiliency as well as broader social and economic community impacts as we make generation decisions. We will continue to use this approach, one that places priority on the customers and communities we serve as we work to decarbonize in the decades ahead. Skyler, next question." --- (SO, event transcript, 2024/05/22)

"Contributions from new investments increased $0.12 per share year-over-year, primarily driven by continued growth in our renewables portfolio. Our existing clean energy portfolio increased $0.06 per share, primarily reflecting an increase in wind resources during the quarter." --- (NEE, earning call, 2024/Q2)

"It's a privilege to support so many unique initiatives this year aimed at reaching individual students with new opportunities that can drive a career and love for energy, engineering and climate resiliency. University of Florida (UF) received a $75,000 grant to support three energy-focused, education initiatives that will directly impact students in these fields." --- (DUK, press release, 2024/09/17)

""This project is a great opportunity to assist our military departments and our warfighters in their decarbonization goals and is paramount to reaching our initial goals of Executive Order 14057, Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability."" --- (DUK, press release, 2024/06/18)

Regulatory Impacts on Sustainability Commitments

Regulatory impacts on sustainability commitments are significant, as companies like Duke Energy emphasize the importance of constructive regulatory outcomes and efficient recovery mechanisms. AEP highlights proactive evaluations of compliance costs and potential legal challenges, indicating a strategic approach to navigating regulatory changes while advancing sustainability goals.

"So just as we work to confirm reality and commitments, but also then do risk adjusting, having that same kind of process and conversation with the regulatory jurisdictions in terms of understanding the reality and then understanding the financial and pricing implications." --- (SO, earning call, 2024/Q2)

"While we have many trackers in place to help mitigate regulatory lag, we have not had a rate case here in a few years and look forward to working with the parties to achieve a balanced and fair result. Looking ahead, I am proud of the progress we continue to make on the regulatory front and I remain excited about advancing our regulatory strategies in 2024 and beyond." --- (AEP, earning call, 2024/Q1)

"Our strategy will drive continued growth, underpinned by our five-year $73 billion capital plan, efficient recovery mechanisms and track record of constructive regulatory outcomes." --- (DUK, earning call, 2024/Q1)

"This same framework, including our orderly internal and external regulatory processes for long term demand planning and resource decisions, is what also positions us so well to reliably serve the significant electric load growth projected over the next decade, an opportunity we're excited about. Dan, I'll now turn the call over to you for a financial update." --- (SO, earning call, 2024/Q2)

"We continue to evaluate the applicability of the rule to current and former plant sites, and have developed preliminary estimates of compliance costs. While we are working with others and looking at potential legal challenges to the revised rules, as appropriate, we do plan to seek cost recovery through new and or existing regulatory mechanisms." --- (AEP, earning call, 2024/Q2)

Future Commitments to Community and Sustainability

Duke Energy's future commitments to community and sustainability include educational initiatives for students, significant philanthropic support for disaster preparedness, and a $73 billion capital plan focused on grid and generation investments, reflecting their responsiveness to customer demand for sustainable practices.

""Our shared work is helping high school and middle school students increase their understanding of the energy grid, prepping college students for careers in solar energy and supporting five Florida communities as they plan for an environmentally resilient future. In Volusia County, FUTURES Foundation will use a $30,000 grant to increase student engagement in three different initiatives within Volusia County Schools."" --- (DUK, press release, 2024/09/17)

"We also have customers in both states that are interested in a sustainable future." --- (DUK, earning call, 2024/Q2)

"The funds will help ensure the nonprofit can continue building capacity and resources ahead of time, keeping up with the pace of disasters and assisting customers when in need.Work with local Red Cross chapters across Duke Energy's service territories to make additional grants throughout the 2024 storm season to assist with disaster preparedness and recovery.Duke Energy Foundation The Duke Energy Foundation provides more than $30 million annually in philanthropic support to meet the needs of communities where Duke Energy customers live and work." --- (DUK, press release, 2024/05/14)

"We have clear growth visibility driven by our $73 billion capital plan, which is focused on grid and generation investments to support the growing communities we serve." --- (DUK, earning call, 2024/Q2)

Comparative Analysis with Industry Peers

Duke Energy is actively leading the industry's transition towards sustainability by building a resilient grid, positioning itself favorably against peers like NextEra Energy and Xcel Energy, which emphasize clean energy and economic development. This strategic focus enhances its competitive edge in the evolving energy landscape.

"We have a track record of beating consensus estimates, while our peers in the broader market have historically underperformed.Adding our attractive dividend yield together with a low beta, we have offered a compelling risk adjusted return over any time period that you measure, take your pick." --- (NEE, event transcript, 2024/06/11)

"If you put those criteria that data centers are looking at today, I would suggest that's true for almost any energy-intensive industry and our view that they're at some point going to overly co-locate in parts of the country where energy costs are lower and green energy could be cleaner, and that sits right across the footprint that we straddle.And so, as you look at stuff like hydrogen and clean energy production, if we get to direct their capture as a means of carbon mitigation, you could see a lot of that headquarter in itself or locating itself in our backyard as well as other manufacturing probably where transportation isn't as critical." --- (XEL, earning call, 2024/Q2)

"And what we're looking at doing is leading the industry industry's largest transition, and we're doing that to make sure that we continue to serve our customers reliably and affordably.We are also building the grid of the future, one that's smart, resilient, that's able to handle these stronger storms, this flooding, these extreme temperatures." --- (DUK, event transcript, 2024/05/09)

"Nick Campanella: I appreciate that. And maybe just one conceptual question here, just -- we've heard about economic development on your call on all of your peers' calls this earnings season, the tailwinds continue to be very strong." --- (SO, earning call, 2024/Q2)

"Because as we've said, look, we make these decisions every day as a utility as well around Florida Power and Light, and we're able to share a lot of the insights that we have from running the nation's largest rate regulated utility to help solve the complex problems that they have.But the bottom line is that in order to succeed going forward, you cannot win by being by taking a singular approach." --- (NEE, investor day, 2024/06/11)

Investor Perspectives on Sustainability Efforts

Duke Energy's commitment to sustainability is evident through their crisis collaboration, enhancing community support, and their focus on growth in generation and grid investments. These efforts not only address immediate needs but also promise long-term returns for investors, aligning sustainability with financial performance.

"We are grateful for this collaboration during Idalia, which helped shorten response times and get communities back on their feet faster. EEI EEI is the association that represents all U.S. investor-owned electric companies." --- (DUK, press release, 2024/07/02)

"And just to emphasize Brian's point we have such a wealth of opportunity here in both generation and grid investment that we see sustained growth out of our jurisdictions in a very constructive way delivering returns to shareholders over a long period of time." --- (DUK, earning call, 2024/Q1)

Metrics for Measuring Community Engagement Success

Duke Energy's community engagement success can be measured through significant donations, such as the $8 million contributed to local nonprofits, reflecting a strong commitment to community support. Additionally, the company's acknowledgment of first responders during crises highlights the importance of collaboration and appreciation in community relations.

"And they've donated over $8,000,000 to local nonprofits. I'm incredibly happy and proud to end exactly where I started, by talking about the best team in the business.Ultimately, it's our people and our culture that enable our success." --- (NEE, event transcript, 2024/06/11)

""We thank our customers for their patience, our first responders for their hard work and our neighboring utilities for their continued support in the hours and days ahead. Restoring power after a storm can be extremely challenging, as travel and work conditions may be impacted by high winds and widespread flooding."" --- (DUK, press release, 2024/08/05)

Long-term Vision for Sustainability at Duke Energy

Duke Energy's long-term sustainability vision includes meeting state objectives while delivering customer benefits, committing over $30 million annually to community support, and aiming for net-zero carbon emissions by 2050. Their initiatives also focus on workforce development and climate resiliency, reinforcing their dedication to sustainable practices.

"And as Harry indicated, we believe the plan that we've put forward in both states meet the requirements of the objectives that both states have set out and as we've said many times, our objective is to give both states the opportunity to put their fingerprints on this plan in a way that serves their needs and continues to deliver the benefits of scale that Duke Energy has offered to customers over a long period of time." --- (DUK, earning call, 2024/Q2)

"Duke Energy Foundation The Duke Energy Foundation provides more than $30 million annually in philanthropic support to meet the needs of communities where Duke Energy customers live and work." --- (DUK, press release, 2024/09/17)

""We are proud to be able to source extraordinary talent through our community college partners to join our line teams and serve as ambassadors for the company with our customers."" --- (DUK, press release, 2024/04/29)

"Solar Energy 101 | Learn how this renewable energy source works, its history and future as Duke Energy works toward net-zero carbon emissions by 2050: https://t.co/9SktMc8fwC. https://t.co/IM8gwVaEuR" --- (DUK, Twitter post, 2024/05/14)

"Duke Energy Ohio & Kentucky are pleased to announce the recipients of the 2024 Climate Resiliency Grants from the Duke Energy Foundation." --- (DUK, Twitter post, 2024/05/02)