Praxis withdraws Duke Energy proposal on clean energy
Company agrees to publicly address renewable energy plans
As part of its climate change advocacy with electric utilities, Praxis Mutual Funds® co-filed a shareholder proposal with Duke Energy. Led by the Nathan Cummings Foundation, the proposal asked the company to detail how it can increase its deployment of renewable energy to reduce emissions and protect shareholder value.
After several dialogues, Duke agreed to expand its sustainability report to include its plans for responding to the challenges posed by slower growth in consumer demand for electricity and increases in consumers generating their own power, such as through rooftop solar panels. Duke will also include links to information on the scenarios it uses for planning, including variations in carbon costs and the adoption of energy efficiency measures. In response, Praxis and the other investors withdrew their resolution.
Long-term investors are interested in this information because of the growing recognition that solar power and energy storage technologies could be disruptive to utilities like Duke. Proactive utility companies could limit the negative effect of disruptive technologies on their business, and may even benefit from changes in the industry. Praxis will continue to be in conversation with Duke about its efforts in this area.