Investors Applaud Duke Energy’s Expanded Net-Zero Emissions Commitment
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Stefanie Spear, sspear@asyousow.org, 216-387-1609
BERKELEY, CA—FEB. 10, 2022—Duke Energy Wednesday announced a commitment to increase the greenhouse emissions it will bring within its net-zero-by-2050 greenhouse gas (GHG) reduction target, including upstream methane leakage during production of natural gas, customer use emissions, and purchased power emissions. These value chain emissions can account for a third to more than a half of utilities’ emissions and are currently not accounted for in the vast majority of industry climate targets. This announcement follows investor representative As You Sow’s recent shareholder proposal and engagement with Duke on this issue.
“We applaud Duke’s decision to strengthen its net-zero commitment to encompass all of its major emissions,” said Daniel Stewart, energy program manager of As You Sow. “As the country’s largest power producer, Duke’s announcement is momentous and demonstrates a shift in industry ambition. This is the sort of climate leadership investors want to see from the energy industry.”
In the last 12 months, peer utilities have begun to make emission reduction commitments that incorporate value chain emissions. Xcel Energy incorporated its customers’ use of natural gas into its net-zero target. Sempra set net-zero targets that cover full value chain emissions. PSEG will include customer use of natural gas as part of its net-zero commitment to the Science Based Targets initiative.
“Including emissions from customer use and the production of natural gas ensures that utility decarbonization decisions will address the full range of emissions from the natural gas system, one of the largest sources of national GHG emissions,” Stewart said. “The science is firm that the entire economy must decarbonize to achieve net-zero emissions. We encourage all peers to follow Duke’s leadership.”
As You Sow has filed similar resolutions with DTE Energy, Dominion Energy, and Southern Company, requesting the inclusion of the full range of Scope 3 emissions in net-zero targets.
Customer use of natural gas for heat in residential and commercial buildings makes up 10% of U.S. GHG emissions. At the state and local levels, efforts are quickly growing to address these emissions. More than 50 cities in California — and recently New York City — have passed plans to phase out natural gas in buildings and support building electrification to reduce emissions.
“Achieving net-zero emissions requires utilities to support the most cost-effective and robust reduction of building emissions,” Stewart continued. “Investors are concerned that utilities are increasingly distracted by technologies with limited climate and cost-effectiveness, such as renewable natural gas and hydrogen. We would like to see increasing efforts to support the opportunity that building electrification offers to economically and fully reduce greenhouse gas emissions.”
To learn more about As You Sow’s work on climate change, click here.
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As You Sow is the nation’s leading shareholder advocacy nonprofit, with a 30-year track record promoting environmental and social corporate responsibility and advancing values-aligned investing. Its issue areas include climate change, ocean plastics, pesticides, racial justice, workplace diversity, and executive compensation. Click here for As You Sow’s shareholder resolution tracker.