The company is targeting a 50% reduction in carbon emissions from electricity generation by 2030 and a full exit from coal by 2035, subject to regulatory approvals. They are also targeting a 50% reduction in Scope 2 and certain Scope 3 emissions by 2035, on the way to net zero by 2050.

Duke Energy completed the sale of its utility-scale solar and wind group to Brookfield and the distributed generation group to ArcLight in October 2023, facilitating its transition to a fully regulated utility.

The company closely monitors the total incident case rate (TICR) and includes safety metrics in both the short-term and long-term incentive plans based on the TICR for employees. The company delivered strong safety results in 2023, consistent with industry-leading performance levels since 2018.

Following an attack on two substations in North Carolina, the company is implementing a $500 million plan to enhance physical security and resiliency at critical substations. Recovery has been approved in North Carolina through the MYRP, with cost recovery requests in South Carolina, Florida and the Midwest expected in future rate cases.

The company's clean energy transition is subject to business, policy, regulatory, technology, economic and competitive uncertainties and contingencies, many of which are beyond its control and may make those goals difficult to achieve.

The Duke Energy Registrants' regulated electric and natural gas utility businesses are regulated on a cost-of-service/rate-of-return basis subject to statutes and regulatory commission rules and procedures. If regulatory or legislative bodies do not allow recovery of costs incurred in providing service, or do not do so on a timely basis, the Duke Energy Registrants' earnings could be negatively impacted.

EU&I owns and operates facilities necessary to generate, transmit, distribute and sell electricity. Services are priced by state commission-approved rates designed to include the costs of providing these services and a reasonable return on invested capital.

Competition in the regulated electric distribution business is primarily from the development and deployment of alternative energy sources including on-site generation from industrial customers and distributed generation, such as private solar, at residential, general service and/or industrial customer sites.

The company launched a Workload Reduction Initiative in late 2022 and continues to focus on driving productivity, increasing flexibility and prioritizing spend based on risk and strategic value to customers and investors.

The company has an adequate supply of coal under contract to meet its risk management guidelines regarding projected future consumption. Coal inventory levels may fluctuate as a result of volatility in natural gas prices and the associated impacts on coal-fired dispatch within the generation fleet.

The company is leveraging new technology, digital tools and data analytics across the business in response to a transforming landscape and its grid improvement programs continue to be a key component of its growth strategy. Modernization of the electric grid helps to ensure the system is better prepared for severe weather, improves the system's reliability and flexibility, and provides better information and services for customers.

The company expects to deploy between $170 and $180 billion of capital into its regulated businesses, driven by clean energy transition investments. These investments will drive substantial economic benefits for the communities it serves and reduce its customers' exposure to fuel volatility.

The company is targeting a 50% reduction in carbon emissions from electricity generation by 2030 and a full exit from coal by 2035, subject to regulatory approvals. They are also targeting a 50% reduction in Scope 2 and certain Scope 3 emissions by 2035, on the way to net zero by 2050.

The company is committed to continuing to build a diverse workforce that reflects the communities it serves while strengthening a culture of inclusion where all employees and customers feel respected and valued. As of December 31, 2023, its workforce consisted of approximately 23.6% women and 20.5% people of color.

The company is subject to regulations under a wide variety of U.S. federal and state regulations and policies, including by FERC, NRC, EPA and various other federal agencies as well as the North American Electric Reliability Corporation. Regulation affects almost every aspect of the Duke Energy Registrants' businesses.

There is continued concern, and increasing activism, both nationally and internationally, about climate change. The EPA and state regulators have, and may adopt and implement, additional regulations to restrict emissions of GHGs to address global climate change.