Majority of company’s issuance directed towards expanded opportunities for diverse suppliers
CHARLOTTE, N.C. – Reinforcing the company’s leadership in sustainability, Duke Energy (NYSE: DUK) successfully launched the utility industry’s first sustainable commercial paper notes.
Duke Energy plans to disburse or allocate an amount equal to net proceeds from the sustainable commercial paper notes to fund expenditures and programs related to enabling opportunities for diverse businesses. This includes suppliers certified by a third-party organization or government agency as being minority-, women-, veteran-, service-disabled veteran-, LGBT-, disability-owned, or a Historically Underutilized Business Zone (HUBZone) business.
“We’re leading the industry’s largest clean energy transformation and are focused on achieving this transition in a way that also supports our communities and society at large,” said Steve Young, Duke Energy’s executive vice president and chief financial officer. “This includes maintaining a diverse and inclusive workforce, investing in diverse suppliers and small businesses, bringing jobs and investments into the communities we serve, and ensuring the transition to cleaner energy happens in a way that is equitable for everyone involved.”
The majority of the issuance of sustainable commercial paper notes will be disbursed or allocated to eligible projects from the Socioeconomic Advancement and Empowerment category of the company’s Sustainable Financing Framework. Some examples include procurement of products and services from diverse suppliers; education assistance related to technology, infrastructure, and professional development for minority populations; and resources to identify and fund businesses with diverse founders such as mentoring programs and access to professional services and networking.
Duke Energy expects to have $300 million to $650 million of sustainable commercial paper notes outstanding at any given point over the next 12 months.
Duke Energy’s Sustainable Financing Framework defines the investment areas aligned to the company’s clean energy strategy, further enabling it to issue green and sustainability bonds, loans or other financing instruments.
A leader in sustainability
Duke Energy is leading the largest, most ambitious clean energy transition in North America, in collaboration with stakeholders across all of its service territories. The company has set enterprise-wide emission reduction goals – to reduce carbon emissions from electricity generation by at least 50% and to achieve net-zero methane emissions from its natural gas distribution businesses by 2030 and to achieve net-zero emissions from electricity generation by 2050. The 2050 net-zero goals also include Scope 2 and certain Scope 3 emissions.
Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America’s largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio, and Kentucky. The company employs 28,000 people.
Duke Energy is executing an aggressive clean energy transition to achieve its goals of net-zero methane emissions from its natural gas business and at least a 50% carbon reduction from electric generation by 2030 and net-zero carbon emissions by 2050. The 2050 net-zero goals also include Scope 2 and certain Scope 3 emissions. In addition, the company is investing in major electric grid enhancements and energy storage and exploring zero-emission power generation technologies such as hydrogen and advanced nuclear.
Duke Energy was named to Fortune’s 2022 “World’s Most Admired Companies” list and Forbes’ “America’s Best Employers” list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos, and videos. Duke Energy’s illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.
The notes to be offered under the commercial paper note program have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the notes under the company’s commercial paper note program.
Cautionary language concerning forward-looking statements
This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on management’s beliefs and assumptions. These forward-looking statements are identified by terms and phrases such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will," "potential," "forecast," "target," "outlook," "guidance," and similar expressions. Various factors may cause actual results to be materially different than the suggested outcomes within forward-looking statements; accordingly, there is no assurance that such results will be realized. These risks and uncertainties are identified and discussed in Duke Energy’s most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission (“SEC”) and available at the SEC’s website at www.sec.gov. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than Duke Energy has described. Duke Energy expressly disclaims an obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Media contact: Neil Nissan
Analyst contact: Jack Sullivan