PPL

PPL has set a target to reduce its scope 1, 2 and 3 emissions by 70% by 2035, 80% by 2040 and 100% by 2050, compared to 2010. However, PPL has not set sufficient short-term targets prior to 2035. PPL’s targets could not be assessed in the benchmark as the company states that it plans to use offsets but has not quantified them. The company should clearly report any offsets it intends to use to allow for a complete analysis of its targets and progress against them.

PPL’s emissions intensity trend for its purchased power for resale between 2017 and 2022 could not be assessed due to a lack of data. Despite relying on purchased power for resale for more than 50% of its delivered power, the company does not provide sufficient data on the generation sources for its purchased power. PPL should report the figures for its power purchased for resale by generation source.

More than half of PPL’s sold electricity comes from the company’s purchased power for retail. As a consequence, engaging with its suppliers is integral for the company to reduce its value chain emissions. However, no evidence was found to suggest the company engages with suppliers on climate change issues or greenhouse gas (GHG) emissions reduction through strategies. The company can improve on this by developing a comprehensive supplier engagement strategy to influence its suppliers to cut down their emissions.

PPL has a comprehensive, public trade association policy. Yet, it lacks a detailed review process to assess the climate positions of its associations. PPL tries to influence the positions of trade associations it is a member of if their position does not align with those of the company. However, PPL is a member of the American Gas Association (AGA) which promotes the use of fossil gas in the future energy mix. PPL’s Chief Operations Officer is also a board member of AGA. PPL should demonstrate stronger support for decarbonisation by severing its links with trade associations that hold a negative stance on climate policies.

PPL has set a target to reduce its scope 1, 2 and 3 emissions by 70% by 2035, 80% by 2040 and 100% by 2050, compared to 2010. PPL’s targets could not be assessed in the benchmark as the company states that it plans to use offsets but has failed to quantify them.

PPL plans to bring 1 gigawatt (GW) of solar and 125 megawatts (MW) of battery storage capacity online. The company has also committed to phase out unabated coal by 2050. PPL aims to retire 1.5 GW of its coal power capacity by 2028 coupled with another 500 MW by 2037. Further, PPL’s Solar Share programme, once completed, will have a capacity of 4 MW. This subscription-based programme gives residential, business, and industrial customers the opportunity to share in local solar energy generation and receive credits on their monthly bills.

Almost 100% of the company’s current energy generation is from fossil sources, mainly coal. The company’s low-carbon capital expenditure (CapEx) in 2022 accounted for only 1% of its total CapEx. PPL focuses its research and development (R&D) efforts on technologies such as solar power; hydrogen from renewable sources; battery storage; carbon capture, use and storage (CCUS); smart meters and monitoring technologies. PPL also focuses on non-mature technologies such as demand response, smart grids, vehicle-to-grid and direct air capture.

The company’s emissions intensity trend for its own power generation between 2017 and 2022 remained static instead of decreasing. Further, PPL’s emissions intensity trend for its purchased power for resale between 2017 and 2022 could not be assessed due to the lack of reported data. Despite relying on purchased power for resale for more than 50% of its delivered power, the company does not provide sufficient data on the generation sources for this power.

PPL plans to grow its solar power capacity from 8 MW in 2022 to 1 GW by an unspecified date. It has set a target to reduce its scope 1, 2 and 3 emissions by 70% by 2035, 80% by 2040 and 100% by 2050, compared to 2010. However, PPL’s emissions reduction targets and transition planning are severely hindered by its insufficient low-carbon CapEx. PPL’s significant reliance on coal and fossil gas in the present and the future is inconsistent with the company’s commitments.

The company discloses the categories of stakeholders it engages with on a just transition and how they are identified. However, no evidence was found of the company’s commitment to social dialogue. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, it offers development programmes for craftworkers and line workers, leadership development programmes, and mentoring programmes. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain. The company does, however, have a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including the gender and race/ethnicity of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity, or of the company’s commitment to gender equality and women’s empowerment.

The company commits to protecting personal data. It also has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. However, it can improve disclosure on its privacy statement, global tax strategy, corporate income tax paid in different jurisdictions, lobbying and political engagement policy and expenditure on lobbying activities.