DEI 2015 Sustainability Report

LAGUNA PARÓN, HUASCARÁN NATIONAL PARK - PERUPROTECTING NATURAL RESOURCES IN PERUHuascarán National Park, a UNESCO World Heritage Site in the world’s highest tropicalmountain range, has turquoise glacial lakes and is home to diverse species such as thespectacled bear and the Andean condor. This spectacular location lies near DEI’s Cañóndel Pato Hydroelectric Plant.To protect this unique natural setting while promoting economic and social developmentin the area, Duke Energy Peru engaged in two important endeavors: 1) participationin a workshop to update Huascarán National Park’s Master Plan, and 2) collaborationwith an NGO on a training session to prepare environmental leaders to manage riskand disasters that might be caused by climate change.The 2016-2020 Master Plan aims to preserve the ecosystem in the Huascarán Parkarea while facilitating actions or planned activities related to socio-environmentalissues, water utilization and the management of new infrastructure projects. Theworkshop focused on four themes: Projects and Infrastructure, Conservation, Tourismand Environmental Education. Several stakeholders including the municipalities ofHuaylas, Yungay, Chillas and Mancos participated, along with DEI and representativesof various communities and organizations.Our collaborative risk management training also focused on the long-term health ofthis special area. Ninety-seven people participated in the training, which focused onenvironmental care and solid waste management. To bring the session’s messages tolife, participants had the opportunity to tour the section of Huascarán National Parkthat is home to a road system known as the “climate change route,” a model for thepreservation and care of natural resources.DEI remains committed to the economic, social and environmental well-being ofthe communities within our areas of operation. We help create awareness aboutenvironmental protection and bring knowledge and information regarding climatechange to the communities where we operate. 2015 SUSTAINABILITY REPORT / 51 /

REDUCING CARBON INTENSITY While thermoelectric power generation comprises a relatively low portion of our overall energy portfolio, it still results in a significant local and regional environmental footprint and could contribute to global climate change over time. In Ecuador, El Salvador and Guatemala, where our operations rely on fuel oil and coal, our carbon intensity is significantly greater than the countries that use hydro and natural gas. DEI aims to increase the share of energy generated using low-carbon technologies and renewable sources in support of the Duke Energy corporate goal of lowering carbon intensity to 0.94lbs/kWh by 2020. DEI is pleased to report that we improved carbon intensity from 0.28 pounds per kilowatt-hour in 2014 to 0.24 pounds per kilowatt-hour in 2015. We improved carbon intensity from 0.28 pounds per kilowatt-hour in 2014 to 0.24 pounds per kilowatt-hour in 2015. G4-EN18 2015 CO2 Emissions Intensity from Generation by Business Unit (in Pounds/kWh) 2.00 1.9922 1.80 1.6060 1.5556 1.60 1.40 Argentina Brazil 1.20 Chile Ecuador 1.00 El Salvador Guatemala 0.80 Peru DEI Total 0.60 0.3106 0.2716 0.40 0.0004 0.0008 0.2448 0.20 0.00 To help achieve our carbon footprint goal, we implemented our customized CO2 assessment tool to establish a carbon footprint baseline for evaluating new projects. This tool allows us to project the carbon emissions and intensity of our energy portfolio for different generation scenarios. In 2015, 86 percent of all new business projects we explored included renewable energy. We will continue to use this CO2 assessment tool to evaluate future projects and identify opportunities to reduce our carbon footprint. SMS EMISSIONS GUIDELINES The SMS Air Quality Management guideline sets DEI’s approach to achieve compliance with all relevant permitting, emissions monitoring and reporting requirements. At a minimum, DEI commits to keep the emissions from operations within the limits established at each facility. DEI has several processes in place for evaluating air emissions and air quality, and for monitoring system effectiveness. All facilities track the release of carbon dioxide (CO2), nitrogen oxides (NOX), sulfur dioxide (SO2) and particulate matter (PM). Monthly reports from each facility and business unit help us to measure performance and share this information across the organization. As a result, our emissions have steadily decreased over the past several years.\ 52 \ DUKE ENERGY INTERNATIONAL

G4-EN212015 NOx, SO2, and PM Emissions from Generation (Pounds/MWh)Country/Business Unit Fuel NOx SO2 PMArgentina Hydro + Natural Gas 0.77 0.01 0.02Brazil HydroChile Hydro + LFO 0 0 0Ecuador LFO 0.0011 0.0001 0.0001El Salvador HFO + LFOGuatemala HFO + LFO + Coal 2.05 0.28 0.1Peru Hydro + Natural Gas + HFO + LFO 13.6 15.39 0.79Total 14.86 19.12 2.82 0.74 0.02 1.40 0.01 0.15 1.442011–2015 Historical Other Emissions(NOx, SO2, PM) from Generation (in Tons/Year)25,000 17,342 19,613 15,351 12,791 11,82720,000 15,001 18,275 14,191 11,807 11,43615,000 1,21110,000 20155,000 767 1,440 2,022 1,585 0 2011 2012 2013 2014 NOX SO2 PMAcross DEI, we utilize fuels that produce lower amounts of ash and sulfur and low NOX combustiontechnologies to reduce PM, NOX and SO2 intensity, the amount of these pollutants released perkilowatt-hour (kWh) of energy generated. Measuring emission levels over time helps us anticipatepotential risks and take preventive action to optimize the expected life and performance of ourequipment, which further lowers our costs. As part of a focus on continuous improvement, anindependent third party verifies all emissions monitoring systems and results.In addition to emissions from generation, we also continually monitor the emissions of our vehiclefleet and report this data to stakeholders on an annual basis.G4-EN302011–2015 Historical Vehicle Fuel Consumed (in U.S. Gallons)250,000 207,861200,000150,000 92,803 108,947 61,411 114,861 109,422100,000 3,729 38,282 54,639 2013 40,702 38,094 50,000 7,789 9,455 Ethonol 6,763 6,763 0 2012 2011 Gasoline 2014 2015 Diesel 2015 SUSTAINABILITY REPORT / 53 /

ENERGY EFFICIENCY Through better tracking, greater employee awareness and good operating practices, DEI has decreased our electricity use since 2013. To further improve our performance, in 2015 we developed a new Energy Efficiency Management guideline that provides the criteria for improving efficient and sustainable energy performance across the organization. It also offers guidance to lower our carbon footprint associated with energy utilization, consumption, generation, transmission and other energy resources. DEI will adopt and implement this guideline in 2016. G4-EN3 2011–2015 Historical Electricity Use (in kWh) 400,000,000 369,857,834 350,000,000 300,000,000 152,474,833 148,659,358 250,000,000 127,847,708 200,000,000 91,553,617 150,000,000 100,000,000 2011 2012 2013 2014 2015 Kilowatt Hours 50,000,000 0 2011–2015 Historical Direct Energy Usage by Primary Source 120,000 98,280 120,000 100,000 100,000 80,000 60,000 94,386 75,445 80,000 74,802 76,631 60,000 40,000 40,000 23,940 20,527 20,000 20,000 24,696 20,664 26,430 0 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Heavy Fuel Oil (in Thousands of Gallons) Light Fuel Oil (in Thousands of Gallons) 700,000 599,239 300,000 248,146 600,000 250,000 200,000 500,000 375,024 228,766 400,000 421,759 262,653 168,679 146,248 300,000 150,000 100,000 200,000 253,558 100,000 50,000 0 0 2011 2012 0 2013 2014 2015 2011 2012 2013 2014 2015 Natural Gas (in Thousands of Cubic Meters) Coal (in Metric Tons)\ 54 \ DUKE ENERGY INTERNATIONAL

Water Quality & AvailabilityMinimizing the impact of electricity production on water quality, in terms of chemical, nutrients andthermal pollution. Ensuring the short and long-term availability of water for electricity generationwhile supporting all other uses. G4-DMA, G4-EN9 maintain the strength of fish and other wildlife GOAL 2.4 populations surrounding hydroelectric dams.Water plays an essential role in DEI’s electricity Our thermoelectric plants regularly measure ENVIRONMENTALgeneration—as the fuel for hydroelectric ground and surface water around their STEWARDSHIPoperations, and for steam generation and locations, in addition to monitoring wastewatercooling equipment in thermoelectric plants. discharge. At an absolute minimum, DEI’s With the objective of reducingProviding reliable energy to our customers standard is to keep water quality within the the environmental impactrequires us to draw water from local lakes parameters of each facility’s environmental of our operations on theand rivers. Freshwater scarcity is a serious operating license. Looking ahead, we will communities we serve,issue in Latin America, and can be particularly continue to utilize advances in technology DEI will work towardsharmful to the social and economic growth of to improve measurement and performance ensuring efficient energydeveloping areas. It also directly affects the across the company. consumption and wastehealth of local families, many of whom are and water reduction.DEI employees. Therefore, as a steward of DEI also recently developed a Waterour natural resources, we continue to pursue Stewardship guideline that will go into effect inopportunities to reduce water demand through 2016. This will support the existing frameworkplant modernization, equipment optimization in reducing potential environmental impactsand energy efficiency efforts. related to water, defining realistic goals and objectives for water management, optimizingDEI transparently engages customers and efficiency and informing future design projectscommunities about how our facilities minimize and investment decisions.impacts from water utilization. By workingtogether with stakeholders, we can maintain WATER FOOTPRINT ASSESSMENTSa sustainable supply of freshwater to meetthe needs of all who live near DEI facilities. G4-EN27SMS WATER GUIDELINES In pursuit of DEI’s Strategic Goal 2.4: Environmental Stewardship, during 2015The Wastewater Quality and Potable Water we assessed our water footprint at 14 of 25Management Guidelines within the SMS power plants, representing 56 percent of DEI’shelp us manage plant water discharges and total operations. We plan to complete the finalsafeguard the freshwater supply within our assessment of Chilean operations in earlyoperating areas—meeting or exceeding local 2016. Understanding our water footprint willregulatory requirements at all times. Over help us increase electric generation sustainability.two-thirds of DEI’s generating capacity comes Under continuous improvement, we will updatefrom hydropower plants. These facilities this data every year to re-evaluate each facility’scontinually monitor the health and levels water footprint and optimize DEI’s utilizationof reservoirs, and carry out programs to of this resource.In 2015, we conducted water footprint assessments in 14 of 25power plants, representing 56 percent of DEI’s total operations. 2015 SUSTAINABILITY REPORT / 55 /

DUQUECO RIVER, BIO BIO REGION - CHILE WATER FOOTPRINTS FOR RESPONSIBLE WATER USE In 2015 DEI used the ISO 14046 framework to conduct water footprint assessments in Ecuador, Brazil, Argentina, El Salvador, Guatemala and Chile. These environmental impact assessments evaluate impacts on human health and ecosystems to identify strategies for efficient and responsible water use. This effort aims to develop realistic and achievable water consumption goals for DEI’s operations. Juan C. Villagrán, DEI’s Director, Sustainability & EHS Global Systems led the effort, supported by technical experts and plant personnel. Plants visits focused on: U nderstanding the electricity generation processes that directly use water; A ssessing the water balance of operations; Identifying important supply chain components to estimate indirect use of water; and T ransferring knowledge to plant operations, supply chain and EHS teams about how to conduct water footprint assessments. Water footprint assessments in 2015 followed the successful evaluation at operations in Peru, where we adopted measures to reduce or compensate for water usage. Duke Energy Peru is proud to be the first company in the energy sector in Peru to complete a water footprint assessment.\ 56 \ DUKE ENERGY INTERNATIONAL

MEASURING WATER USEDEI uses standard industry metrics to track our water usage: Water Withdrawal—The total volume of water removed from a water source such as a lake, river or aquifer. A portion of this water is returned to the source at a later stage of the energy production cycle, and is available to be reused. This metric measures the amount of water used in our power generation processes to cool generation equipment and to produce steam for electricity generation. W ater Consumption—The amount of water removed for use that is not returned to the original source. W ater Intensity—The measure of how much water is “consumed” compared to the amount of electricity generated (water consumption divided by electricity generated).While our Argentina operations withdraw the most water, business units in El Salvador andGuatemala have the greatest consumption. Argentina’s Alto Valle Thermoelectric Plant has twocombined cycle units that require a high water volume for both the steam cycle system and coolingsystem. It is equipped with an open cycle cooling system that takes water from the Neuquén River;after the water runs through the system once, it discharges directly back to the river. This resultsin a high water volume utilization and low consumption due to evaporation. In Central America,specifically Las Palmas II Guatemala, a cooling tower system and steam cycles have high waterconsumption due to evaporation.G4-EN82015 Water Withdrawal, Discharge & Consumption,DEI Total by Business Unit (in Cubic Meters)45,000,000 42,389,450 40,760,933 Argentina40,000,000 Water Withdrawal B razil35,000,000 1,628,517 Chile30,000,000 Water Discharge Water Consumption Ecuador25,000,000 El Salvador20,000,000 Guatemala15,000,000 Peru10,000,000 5,000,000 02011–2015 Historical Water Use (in Cubic Meters)70,000,000 0.15 0.1660,000,000 0.0950,000,000 0.14 Water40,000,000 Withdrawal30,000,000 0.1220,000,000 0.09 0.10 Water10,000,000 Consumption 0.08 0.05 0.08 0 2014 Water Intensity 56,665,478 0.06 (m3/MWh 1,279,633 generated) 60,951,492 0.04 2,937,056 37,210,560 0.02 1,769,700 38,389,067 0 889,197 42,389,450 1,628,517 2011 2012 2013 2015 2015 SUSTAINABILITY REPORT / 57 /

ELECTRONIC WASTE RECYCLING IN CHILE Duke Energy Chile employees showcased their commitment to reducing DEI’s environmental footprint by recycling obsolete electronic equipment, which contains small amounts of heavy metals. The proper handling of this equipment at the end of its useful life keeps toxic materials out of landfills. The warehouse at Duke Energy Chile’s Yungay Plant had accumulated electronic equipment such as power sources and computers that had been removed from service. Rather than disposing of this equipment, DEI’s Warehouse Coordinator, Mauricio Soto, delivered two truckloads to the recycling fair in nearby Los Ángeles. By taking this equipment to the fair, DEI cleared 700 kilos of materials from our warehouse and saved money by avoiding transportation and final disposal costs—and demonstrated DEI’s environmental stewardship. Event organizers recognized DEI’s contribution with three quillay trees as a symbol of our commitment to safeguard our planet. These trees remind us that we can always do a little bit more to care for our environment. Waste Reduction Minimizing the amount of waste that we produce, and reusing or recycling waste instead of disposing of it in a landfill. G4-DMA SOLID WASTES—FUEL COMBUSTION BY-PRODUCTS DEI produces various types of waste streams The source of fuel and type of combustion from office and administrative operations, technology determine the quality and quantity construction sites and, most notably, the of solid wastes our power plants generate: hazardous and non-hazardous waste resulting from electricity generation. Therefore, DEI C oal-fired power plants generate fly ash, focuses on waste reduction, reuse and bottom ash and boiler slag from combustion recycling. By recycling waste, we reduce our of coal. impact on the environment and surrounding communities. In addition, efficient reuse of Combustion turbines and diesel engines leftover materials enhances sustainability by utilizing liquid fuels (heavy fuel oil and diesel) lowering demand for limited natural resources. produce little or no solid wastes. We also strive to provide a safe working Natural gas-fired power plants create environment for employees and contractors essentially no combustion by-products through proper protections and management because of the negligible ash content, systems that minimize the risk of negative regardless of the combustion technology. health effects from hazardous waste exposure. Externally, DEI protects the well-being of By recycling waste, we reduce surrounding communities by minimizing our impact on the environment environmental contamination from leaks, spills and surrounding communities. and improper disposal, which could cause widespread damage to soil and groundwater.\ 58 \ DUKE ENERGY INTERNATIONAL

REDUCING ENVIRONMENTAL FOOTPRINT BY PROMOTING RECYCLING PRACTICES IN CHILESMS WASTE MANAGEMENT GUIDELINES HAZARDOUS WASTE MANAGEMENTThe Waste Management, Storage and DEI classifies our materials as hazardous orTransportation Guideline of the SMS outlines non-hazardous according to local regulationsrequirements for managing waste generation, or internationally recognized standards.labeling, storage and transportation. It also Non-hazardous wastes are nontoxic andprovides direction to effectively track and noncorrosive, and do not pose significantmeasure performance across the company. dangers when managed. Examples includeThrough the DEI Sustainability Strategy, we set scrap metal, wood, cardboard and paper.goals and measure our performance relative to Hazardous—flammable, corrosive, reactiveexpectations for this topic, and use inspections or toxic—wastes such as solvents, chemicals,to verify compliance at the facility level. EHS pesticides, paint thinners and contaminatedstaff in each country oversee business unit soil require special handling and expensivewaste management activities. Each region disposal procedures. We rigorously addressproduces monthly and annual records that our waste generation and pursue methods thattrack all relevant waste streams. minimize risk to our employees, contractors, communities and the environment.The most effective way to limit our wasteliability is to create less. We adopt a systematic In 2015, we implemented a new goal toapproach that first attempts to prevent, minimize our risks from hazardous wastes.reduce, reuse, recover and/or recycle waste Using 2012 as a base year, DEI will increasebefore considering the removal and disposal the amount of non-hazardous waste recycledof materials. For example, the fly ash from by 10 percent by 2016 and decrease theDEI’s thermoelectric plants becomes an amount of hazardous waste produced by 15input in cement and concrete products, and percent by 2019. Compared to our 2012our chemical suppliers routinely collect their baseline, hazardous waste decreased by 70containers for reuse. When beneficial reuse is percent in 2015. In 2015, our non-hazardousnot feasible, such as with our non-hazardous waste recycling increased more than 30 percentcoal by-products, disposal takes place at over the previous three-year average.authorized landfills. 2015 SUSTAINABILITY REPORT / 59 /

POLLUTION PREVENTION EFFORTS - DUKE ENERGY GUATEMALA RESPONSIBLE CLEANING & WASTE HANDLING IN GUATEMALA The steam generators at our Las Palmas II Plant require chemical cleaning to maintain the unit’s efficiency and availability. Removing deposits improves the transfer of heat and enables flow, prevents corrosion and reduces the risk of failures or ruptures. A team of Duke Energy Guatemala employees devised an effective cleaning solution that keeps the generators operating smoothly—reducing the risk of burns or other safety concerns for our employees. DEI personnel handled the entire chemical cleaning and waste handling procedure with consultation, monitoring and support by EHS teams to ensure that the generated waste was disposed of based on international standards and in accordance with domestic laws. Congratulations to our 1st place PMC team winners!\ 60 \ DUKE ENERGY INTERNATIONAL

G4-EN23Historical Hazardous & Non-HazardousWaste Generation, 2011–2015 (in Tons)50,000 13,190 Hazardous Waste40,000 Generation30,000 188 75 5720,000 126 302 277 Non-Hazardous10,000 103 139 606 Waste Generation, 30,801 53,740 Landfill 0 47 360 Non-Hazardous 179 Waste Generation, 23,918 Recycling Fuel Combustion By-Products 2012 2013 2014 20152015 Hazardous & Non-Hazardous Waste Generation,DEI Total by Business Unit (in Pounds)Business Hazardous Waste Non-Hazardous Fuel CombustionUnit Generation Waste Generation, By-Products Landfill and RecyclingArgentina 1,512 0Brazil 8,585 46,297 0Chile 29,211 904,377 0Ecuador 8,873 0El Salvador 36,840 10,582 0Guatemala 103,127 26,380,439Peru 0 357,720 0DEI Total 29,722 132,750 26,380,439 114,743 210,872 1,765,725ENVIRONMENTAL EDUCATION PROGRAM 2015 SUSTAINABILITY REPORT / 61 /

CREATING A WORLD-CLASS SAFETY CULTURE\ 62 \ DUKE ENERGY INTERNATIONAL

SAFETY CULTURE & QUALITY WORKFORCEIntroduction/Overview WHY IT MATTERSProviding the safest possible working conditions for employees and The success and future of ourcontractors is one of our core values paving the Road Ahead. We organization depends on thecontinually review our safety management approach to identify and fill safety, quality, creativity andgaps and ensure that we equip our workforce with the best available engagement of DEI’s greatestpractices and procedures to do their jobs safely. The end goal is to asset: our workforce.have each employee and contractor leave the workplace safe andhealthy, every day.Creating a world-class safety culture is just one way in which DEIstrives to improve workers’ satisfaction and our overall performance.The company’s future growth and success relies upon our abilityto attract, develop and retain the best available talent across LatinAmerica. We embrace the challenge of engaging and developing thenext generation of diverse and skilled employees to help us achieveour long-term sustainability goals.The company’s future growth and success relies upon ourability to attract, develop and retain the best available talentacross Latin America.SAFETY STAND DOWN, PLANICIE BANDERITA - DUKE ENERGY ARGENTINA 2015 SUSTAINABILITY REPORT / 63 /

Worker Safety & Health Implementing programs to protect the safety and health of employees and contractors.GOAL 3.1 G4-DMA identify potential risks and establish action plans for continual improvement. Our companySAFETY The safety of employees and contractors is routinely enlists a third party to review andCULTURE our most important responsibility; DEI’s safety re-certify our EHS Management System under performance directly affects their well-being. Occupational Health and Safety AssessmentThrough the pursuit, innovation Our emphasis on employee and contractor Series (OHSAS) 18001.and implementation of safety appeals to individuals who are lookinginternational best practices, to gain marketable skills and training that other Together, the EHS Policy and ManagementDEI is committed to companies may not provide. By focusing on System provide an organized approach formaintaining a world-class workplace safety, we both attract and retain decision making based on risks, opportunitiessafety culture, ensuring the most talented workers and improve the and impacts across our company. We recentlycontractors and employees well-being of the people who live and work in updated practices to improve the scope,leave the workplace healthy the communities where we operate. efficiency and quality of facility reviews. DEIand safe. leaders aggressively address audit findings in In addition, a strong safety culture enhances each business unit to ensure high performance DEI’s reputation with government and industry across the organization. regulators. Actively managing health and safety performance minimizes our risk of incurring We base our practices on international standards fines, increased audits, higher insurance and consider local and regional laws as they premiums, work stoppages and less favorable apply to our operations. Each business unit rates. By avoiding these sanctions, we improve has adopted local policies and programs that our ability to produce reliable and affordable align with DEI’s corporate policies, allowing electricity for customers. facilities to address health and safety issues specific to their regions. When implementing SAFETY CULTURE new safety management tools, we adhere to the most stringent available guidelines, which often DEI trains employees and contractors to take exceed local compliance standards. This allows personal responsibility for their own safety DEI facilities to adapt quickly to evolving EHS and embrace a proactive approach to avoid legislation and guidelines at the local level. dangerous situations at work. Each business unit has active safety committees that vary G4-LA5 in size determined at the facility level, led by an Environmental, Health and Safety (EHS) In 2015, 113 employees participated in safety representative. Employees volunteer to serve committees across our business units. as members on a rotational basis. These committees open lines of communication Number of Employees between EHS managers and employees. Involved in Safety Committees They are responsible for supporting the implementation of policies and goals, 5 Argentina investigating safety incidents, managing training 38 Brazil activities, crisis management and planned 12 Chile emergency responses. We also link employees’ 10 Ecuador compensation to safety and health performance 18 El Salvador to increase engagement behind DEI safety goals. 10 Guatemala 20 Peru Our EHS Policy promotes standards and best practices that extend beyond regulatory compliance to ensure that DEI remains an industry leader in workplace safety. We conduct regularly scheduled audits at each facility to\ 64 \ DUKE ENERGY INTERNATIONAL

2018-YEAR ZERO SAFETY STRATEGYDEI plans our strategic approach to organizational safety in five-year cycles. Our current strategy,2018-Year Zero, began in 2014. It reflects DEI’s bold goal to achieve zero recordable employeeinjuries during a full calendar year by 2018. The strategy has five focus areas to make this ambitiousgoal a reality:2018-Year Zero Focus Areas Why It MattersLeadership and Engagement Senior leadership sets the tone for a zero-injury culture through direct communication and coaching of managers and employees.Risk Management Proactively identifying workplace hazards and risks is essential toCommunication improving safety performance and achieving a zero-injury culture.Safety Performance Frequent communication of goals and expectations, supported by channels for open discussion of safety across the organization, are crucial to build a zero-injury culture. Continuous assessment of safety performance helps identify gaps and is vital to attain a zero-injury culture.Contractors Management Contractors are held to the same high safety and health standards expected of our employees actively contribute to a zero-injury culture.DEI’s Strategic Goal 3.1: Safety Culture guides us in embedding safety into the way we operate.Through DEI’s safety programs, we have made significant progress toward achieving our 2018-YearZero goal. These programs are characterized by senior leadership setting a strong vision and settingan example for safety management; a focus on empowering the people behind DEI’s operations andprocesses; and thorough tracking and measurement of safety leading—rather than lagging—indicators.KEYS TO LIFEKeys to Life is a DEI-wide program designed to identify high-risk activities known to cause fatalitiesand serious injuries, and define behaviors and controls necessary to prevent them. The programsupports DEI’s safety culture by establishing the behaviors and expectations necessary to preventfatalities and serious injuries, improving employees’ safety and quality of life. In 2015, business unitsintegrated action plans for each facility to address potential risk areas. EHS Managers continue to sharebest practices and success stories with their peers to reinforce Keys to Life behaviors in all facilities.NEAR-MISS MANAGEMENTTwo-way employee communication on safety issues is critical in building a zero-injury culture.Our Near-Miss Management Program establishes expectations for employees and contractors toidentify, report and properly manage unsafe workplace behaviors. The program requires proactivelyaddressing unsafe conditions so we may prevent injuries from occurring. To expand a proactivesafety culture, executives share near-miss information and lessons learned during monthly meetings.SAFETY BEHAVIOR STANDARDSOver the last eight years, Safety Behavior Standards (SBS) have developed a more successfuland engaged workforce that understands which negative behaviors to avoid and which positivebehaviors to emphasize to improve our safety culture. Over the years, we have introduced a seriesof initiatives to improve safety leadership behaviors at different levels. In early 2015, we concludedgap assessments of the SBS, which provided additional insight on actions that will further evolveour safety culture. 2015 SUSTAINABILITY REPORT / 65 /

WHEN SAFETY & FAMILY MEET The Duqueco Hydroelectric Complex in Chile is located more than 90 minutes from the city where most Duke Energy employees live. This distance impeded employees’ family members from visiting this remote location—until this year. In November 2015, 55 family members participated in the plant’s first family site visit, experiencing the trip their loved ones make daily. Visitors learned about the electricity generation process and the role of each employee. This experience was all new for family members, who for years had heard about the complex without ever visiting it. A Duke Energy Chile team prepared group activities designed to achieve the excursion’s two objectives: 1) to strengthen bonds and generate more interaction; and 2) to extend the safety message to family members so they could internalize its importance. To reinforce company safety measures, all visitors used safety equipment during the visit (hard hats, safety glasses, anti-slip gear, etc.). Family days such as these emphasize for each employee and contractor the importance of leaving the workplace safe and healthy to return home to loved ones. In 2015, we experienced the best contractor safety performance in our history. To build upon this success, we developed a set of specific Contractor Safety Behavior Standards (SBS) by benchmarking against the contractor safety frameworks of several industry leaders. The new Contractor SBS will serve both as a means of training DEI contractors and as a way to assess, provide feedback and/or select contractors based on their performance. In 2015, we experienced the best contractor safety performance in our history. JUST CULTURE FRAMEWORK Our newly developed Just Culture Framework helps employees at all levels to understand the expectations and consequences of both positive and negative safety behaviors and to close gaps in our safety performance. Managers and supervisors use the framework as a coaching tool to identify, reward and encourage positive safety behaviors at their facilities, and provide guidance when employee safety behaviors fall below expectations. We plan to implement the Just Culture Framework across our business units in 2016. G4-LA8 Health and Safety topics included in formal agreements with trade unions mirror those covered by DEI EHS Management System and DEI EHS Compliance Guidelines. This encompasses our EHS policy, 19 EHS management system guidelines and more than 90 EHS compliance guidelines in all. WORKER SAFETY & HEALTH PERFORMANCE Our results demonstrate the effectiveness of DEI’s Safety Culture. We are pleased to share our progress toward our 2018-Year Zero goal of zero recordable employee injuries during a full calendar year.\ 66 \ DUKE ENERGY INTERNATIONAL

FAMILY DAY AT THE YUNGAY PLANT - DUKE ENERGY CHILEG4-LA62011–2015 Safety & Performance403530 8 1 Employee Injury 13 2 Contractor Injury 9 Serious Employee Injury25 1 7 13 Serious Contractor Injury 2 Fatality* 10 9 *Non-preventable vehicle accident.20 1 215 2014 201510 17 13 13 5 1 5 4 0 2012 2013 20112013–2015 Employee TICR & LWCR 2013–2015 Contractor TICR & LWCR0.4 6 1 20 0.32 5 4 0.8 4 0.67 0.75 0.820.3 0.27 0.6 0.51 0.4 4 3 0.66 150.2 3 0.13 2 0.13 0.14 3 1 0.46 0.44 0.46 0.56 0.14 3 0.13 2 3 100.1 0.07 2 0.19 5 0.07 3 1 0.2 2 2 1 1 0.0 2 13 8 7 7 300 0 2012 2013 2014 2015 2011 2012 2013 2014 2015 0 2011 Lost Workday Cases Restricted Workday Cases Total Incident Case Rate (TICR) Other Recordable Incidents Lost Workday Case Rate (LWCR) 2015 SUSTAINABILITY REPORT / 67 /

SAFETY IS A SHARED CULTURAL VALUE AT DEI A YEAR WITHOUT RECORDABLE INJURIES Thanks to the work and dedication of all of our employees, on April 23, 2015, DEI completed one fiscal year (12 consecutive months) without a recordable incident involving employees. To celebrate this achievement, DEI carried out a Safety Stand Down of approximately 30 minutes at all plants and offices. In addition to congratulating personnel on this great achievement through meetings and talks, the groups discussed and reinforced: H ow following our international and local safety programs—such as Behavior Standards, Approaching Others and Keys to Life, Opportunities for Improvement and Safety Leaders—can achieve a Zero Injury Culture. T he idea that the personnel who work each day make DEI the safest place in Duke Energy. T hat at DEI, safety has moved beyond being a priority and has become a value in our business culture. H ow our safety culture depends on the commitment of everyone at DEI, even during challenging times. In total, DEI has worked more than three million hours without a recordable incident. This achievement proves that our 2018-Year Zero goal of zero recordable employee injuries during a full calendar year is possible.\ 68 \ DUKE ENERGY INTERNATIONAL

DENTAL HEALTH PROGRAM PARTICIPANTS - DUKE ENERGY GUATEMALADENTAL HEALTH IN GUATEMALAIn July 2015, Duke Energy Guatemala began the Boquitas Sanas (Healthy Little Mouths)Program with personnel from the Palmas II and Arizona Plants and their families.Dina Hernandez, Regional Human Resources Manager, explained that this preventivehealth program aims to improve the dental health of Duke Energy Central Americaemployees’ children ages 4 to 17.“Pediatric dentists will share advice about proper dental hygiene and dental healthhabits, which will, in turn, prevent disease,” Dina Hernandez commented.Doctor Sucely Rosario explained to the children the techniques for brushing their teeth,as well as the type of toothbrushes that are the most recommended for their use. Thetalk covered aspects such as the importance of twice-yearly visits to the dentist andthe application of fluoride to prevent cavities. At the end, all of the children received aparticipation diploma, as well as dental care kits appropriate for their age.The program will continue with similar talks directed toward our employees, both atthe central offices as well as at the plants, in order to reinforce good dental habits inpersonnel and their families. 2015 SUSTAINABILITY REPORT / 69 /

EMPLOYEE HEALTH & WELLNESS In addition to our focus on safety, we encourage our workforce to take a proactive approach to personal health and well-being. Healthy food options are available in all offices and facilities. DEI’s employee wellness workshops share ways to avoid risks related to stress and sedentary work environments. Additionally, in 2015, facilities in Chile began offering health exams for the prevention or early detection of occupational or general illnesses. Initiatives such as our Live Well Program keep employees engaged in achieving and maintaining a healthy lifestyle. In 2015, several business units updated their program to promote a range of activities for employees and their families. In Argentina, an online portal provides healthy tips on balanced diets, exercise, social activity, relaxation techniques and preventative medical exams. Peru’s Live Well, Live in Family program helps employees find a balance between personal, family and work life. Employee Attraction, Development & Retention Identifying skill and talent gaps in the workforce and then implementing programs to develop and/or acquire talent and improve employee engagement, retention and satisfaction. G4-DMA DEI’s future success depends upon the quality of our employees, who are the best in the industry. To grow and remain competitive in our markets, we must develop succession programs to transfer the accumulated knowledge and wisdom of our current labor force to prepare the next generation of workers for success in their careers. DEI needs to hire people with the right abilities and create a culture that demonstrates the value our company places on their development. Meeting DEI’s Quality Workforce SSP requires attracting and retaining individuals by providing them the tools and resources they need to excel in their careers. Efforts to increase employee engagement also help us retain our talented workforce, thereby reducing hiring costs. EMPLOYEE RECOGNITION Employees deserve acknowledgement for their valued contributions and dedication to DEI. To show appreciation, each facility participates in our Time of Service and Safety Performance recognition programs. To supplement corporate programs, many business units recognize employees through unique approaches. Program Who Is Recognized Behavior Business Units Perfect Day Employee of the month Strengthening our SBS and proactive El Salvador, Program risk management Guatemala and Peru Super Safe Individual employees Demonstrating exceptional safety and Brazil Program security behaviors Manager of Facility managers Recognizing consistent leadership Brazil the Year and teamwork Safety Leader Outstanding employee Exceptional health and safety performance Ecuador Program of the month Thank You! Individual employees Inspiring others and reinforcing our Argentina and Peru Program corporate values of integrity, safety, responsibility, respect, communication, inclusion and teamwork\ 70 \ DUKE ENERGY INTERNATIONAL

EMPLOYEE ENGAGEMENT SURVEYThe annual employee opinion survey provides an opportunity to learn about the issues mostimportant to our workforce. It provides valuable feedback to senior leaders about DEI’s strengthsand weaknesses so we may identify ways to improve our organization.In 2015, Duke Energy collaborated with the Hay Group to redesign and distribute the employeesurvey. DEI achieved an 89 percent response rate—the highest in our history. Survey results showthat 74 percent of DEI employees fall into the “most effective” category, indicating they are bothhighly productive and highly engaged in the workplace. This far surpasses the industry averageof 55 percent at high-performing companies.2011–2015 Safety & PerformanceMost Effective 55 74 GOAL 3.3 48 EMPLOYEEFrustrated 6 ENGAGEMENT 12 13 DEI Recognizing that our High Performing (Norm) workforce is our greatestDetached 8 General Industry (Norm) asset, DEI will leverage the 11 knowledge, best practices 12 and collaboration skills of our valued workforce, throughLeast Effective 13 the implementation of an 22 international cross-country 27 training program. 0 20 40 60 80 GOAL 3.4Employees believe that sustainability is core to DEI’s operations. An overwhelming 92 percent of EMPLOYEEemployees who responded believe their actions play a part in helping the company do business in a RETENTION &way that benefits people, the planet and profits. Additionally, 97 percent of respondents agreed that DEVELOPMENTDEI holds contractors to the same environment, health and safety standards as employees. Lookingahead, the senior management committee will use these results to develop action plans based upon As part of our commitmentthe survey results. to retain, develop and attract top-tier employees,INTERNATIONAL DEVELOPMENT ASSIGNMENT DEI will leverage the knowledge, best practicesThe International Development Assignment provides opportunities to enhance innovation and and collaborative skills of ourefficiency across our workforce. Employees selected to the program go on temporary assignments valued workforce throughat DEI facilities outside of their home country to do their jobs in a different work environment. an international professionalDuring this time, they learn new ways to solve problems and reach goals working with new development program.colleagues. Individuals who participate also enjoy the personal growth opportunities providedby working in a different culture.In response to the popularity of this program, we set a goal to increase the number of employeeson international assignments by 25 percent from 2012 to 2018. In 2015, 12 employees—fiveEHS employees and seven from other departments—participated in an international professionaldevelopment program.CONTINUOUS IMPROVEMENT PROGRAMDEI’s workforce continues to display creativity and innovation through our Continuous ImprovementProgram, or Programa de Mejora Continua (PMC). Over the last 15 years, employees have embracedthe challenge of designing projects that increase efficiency, reduce costs, minimize impacts andimprove safety. The projects developed through this program have contributed over $62.5 million intotal savings—$14.7 million in 2015 alone. In 2015, we updated and standardized PMC evaluationcriteria to consider the sustainability and replicability of each project. A total of 180 employees fromall seven business units submitted 60 projects, and a committee of regional managers chose projectwinners from each country. 2015 SUSTAINABILITY REPORT / 71 /

2015 PMC Project WinnersGOAL 1.4 Business Unit Project Goals Key Outcomes ArgentinaCONTINUOUS Retrofitting of Greatly increase worker Cost savings of $80,000.IMPROVEMENT Brazil Electrical Panels safety through re-designsPROGRAM/PMC and retrofits of new switches Low-cost, replicable solution Chile Safety Device to Assist and fuses. to enhance safety.As our organization Ecuador Heavy Liftingcontinues to drive innovation El Salvador Strengthen safety culture Reduced risk andand sustainable solutions, Guatemala Kaplan Rotor Blades by reducing the risks increased work versatilityDEI will leverage the Peru Assembly posed to workers during and performance.Continuous Improvement normal operations.Program (PMC) database Reduction of Industrial 70 percent decrease in liquidto develop projects across Waste at the Yungay Allow flexible movement industrial waste.all DEI operating regions. Thermal Plant of Kaplan turbine rotor blades during a periodic Water Optimization at preventive maintenance. Electroquil Plant Lower the environmental Cooling Charge Air to impact, risk and removal Improve Diesel Engine costs associated with liquid Performance industrial waste. Procedure for Use fewer chemicals to treat Reduced costs and enhanced Chemical Cleaning of water, and more efficient employee safety. Steam Generators water use over time. Portable Hoisting System Enhance power yields $680,000 in total benefits. for Maneuvers on on diesel engines through Re-injection Wellheads more efficient processes and design. Reduce operational risk and Cost savings of increase efficiency of over $800,000. generating units. Ensure proper response time Saving of approx. $20,000 per for execution of maintenance event and reduction of safety activities of re-injection risks related to logistics and wellheads. presence of flammable gases. Since the program’s inception, PMC projects have contributed over $62.5 million in total savings—$14.7 million in 2015 alone.\ 72 \ DUKE ENERGY INTERNATIONAL

EMPLOYEE DIVERSITY & INCLUSIONDEI values the unique life experiences our employees bring to work. Therefore, we promote various engagement practices thatsupport diversity of thought. For example, DEI’s Open Door Policy and Talk With the Leader Program work together to advanceopen dialogue between employees and their managers and executives. These discussions continue to spread across DEI as popularforums for employees to express thoughts, concerns, opinions and ideas with their leaders.G4-10, G4-11, G4-LA12011–2015 Workforce Demographics100.0% 1,200 30.0% 90.0% 80.0% 1,180 1,000 25.0% 27% 27% 70.0% 1,187 60.0% 25% 15% 24% 50.0% 1,243 20% 40.0% 1,246 24% 30.0% 1,184 20.0% 10.0% 800 20.0% 0.0% 600 15.0% 14% 14% 15% 16% 18% 19% 19% 16% 400 10.0% 200 5% 5.3% 5.0% 4.0% 5.0% 3.3% 0 0.0% 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Total Workforce Females Females in Management Turnover Unionized EmployeesTurnover of our valued employees remains low and, as a result, the average tenure of DEI employees continues to rise.Years of Service (% of workforce)100% 8% 14% 16% 19% 25% 80% 26% 20% 18% 15% 8% 60% 14% 16% 16% 21% 24%40% 50% 50% 45% 41% 52% 2013 2014 201520% 11–15 Years More than 15 Years0% 2012 2011 6–10 Years Less than 5 Years 2015 SUSTAINABILITY REPORT / 73 /

G4-EC6 DEI has hired local (country nationals) presidents at five out of seven business units—all except Central America. Job Classification (% of workforce) Educational Level as Percent of Workforce 2015 100% 11% 10% 10% 11% 11% 80% 14% 15% 14% 15% 15% 8% Post 60% 20% 27% 28% 26% 27% Graduation/ MBA 40% 4 0% University 55% 48% 48% 48% 47% 31% Technical 20% Studies 21% High School 0% 2014 2015 2011 2012 2013 Supervisory Technical/Operational Managerial Professional TRAINING & DEVELOPMENT G4-DMA, G4-EU18, G4-LA10 In 2015, 99.5 percent of employees completed EHS training, with an average of 83 training hours per employee. Moving forward, we plan to reach our goal of 100 percent workforce participation in EHS training. Additionally, the Duke Energy Contractor Policy requires DEI to verify that contractors are trained to carry out the activity for which they were hired. The Talent Manager and My Training programs offer skills management and opportunities for continued education to all employees. As a part of our Sustainability Management System, DEI trains all new hires on sustainability awareness as a part of the onboarding process. In 2015, 100 percent of new DEI employees completed the sustainability training. G4-LA9 2011–2015 Employee Training Training Hours 2011 2012 2013 2014 2015 65,815 83,610 94,951 92,799 98,024 Average hours of training per employee 56 70 76 74 83 97.0% 96.0% 99.0% 99.3% 99.5% Successful completion of EHS training by employees (%)\ 74 \ DUKE ENERGY INTERNATIONAL

ENSURING RELIABLE SUPPLY OF ELECTRICITY - DUKE ENERGY ARGENTINACROSS-TRAINING FOR CONTINUITY IN ARGENTINAGiven the essential role DEI plays in delivering reliable energy to our areas of operation, it is vitalthat our plants operate continuously. Therefore, Duke Energy Argentina developed a cross-trainingprogram designed to ensure the continuity of critical processes during employee vacations, leavesof absence or for effective crisis control and efficient recovery from business interruptions.Graciela Risorte, Planning & Accounting Department Manager, explained how the programwas implemented in her department and invited other departments to participate. Under thiscross-training system, employees teach their coworkers to perform their work-related tasks.Employees who need to perform the tasks while their colleagues are away can refer to detailed,yet easy-to-understand, manuals for critical processes. Using this process, facilities reduce therisk of incurring service interruptions due to absent personnel.This training creates benefits for DEI by optimizing resources, facilitating the sustainability ofcritical tasks and smoothing the process in the event of any type of rotation within the department.An additional benefit of this cross-training program is the personal and professional developmentemployees receive as they learn new roles and responsibilities within the organization. 2015 SUSTAINABILITY REPORT / 75 /

PROMOTING EDUCATION AND PUBLIC SAFETY IN OUR COMMUNITIES\ 76 \ DUKE ENERGY INTERNATIONAL

SOCIAL COMMITMENTIntroduction/Overview WHY IT MATTERSDEI’s success depends upon the health and prosperity of the regions Our success links inherentlyin which we operate. Thriving communities become excellent to the positive relationshipsenergy customers and support construction of new power plants. with the strong communitiesBy supporting our communities, we demonstrate our enduring that we serve.commitment to local and regional development. We are thereforecommitted to advancing long-term economic and social well-beingthrough our material topics of: Public Safety C ommunity Development V olunteerismSuccessful management of these topics requires clear andopen dialogue with our stakeholders and community members.Strengthening our communities requires a sustained effort anda strong collaboration with local governments. We work closelywith regional leaders to build a safe and reliable infrastructure indeveloping areas. These lasting improvements pave the way foradditional economic growth and better quality of life for the customersand communities we serve—for this generation and the next.Organizations that engage the communities where they operatepossess a broader sense of respect and stronger corporate values.DEI’s social commitment raises the awareness of employees, whoare proud to help create a positive impact in the lives of others.Each year, our workforce devotes thousands of volunteer hours to arange of activities, such as constructing and repairing new homesand classrooms, donating supplies and raising funds for charitiesand other local services. The actions of our staff continue to provideneighboring families with meaningful opportunities for future growthand success. We highlight many of our 2015 engagement activitiesin the following pages.DEI’s social commitment raises theawareness of employees, who are proud tohelp create a positive impact in the livesof others. 2015 SUSTAINABILITY REPORT / 77 /

Community DevelopmentContributing our resources to environmental, cultural, social, economic and infrastructuredevelopment programs to make communities stronger and more resilient. G4-DMA DEI stakeholder priorities and Duke Energy corporate investment priorities.As one of largest private generators ofelectricity in South and Central America, our H ealth and well-beingoperations need our communities’ support andacceptance. We communicate openly with Educationeach community and work to develop a clearunderstanding of their unique needs in areas E conomic and workforce developmentsuch as education, recreation, environmentalprotection, infrastructure, health and safety. We E nvironmentcarefully align the company’s objectives withthe expectations of our neighbors, including C ommunity impact and cultural enrichmentlocal indigenous populations who rely upon thenatural environment for survival. As corporate WOMEN ENTREPRENEUR PROGRAMcitizens, we have a responsibility to advanceeconomic and social development. DEI’s signature community development program, Emprendedoras Latinas (LatinSupporting our communities’ strength and American Women Entrepreneurs), continues toresiliency makes good business sense as a expand and demonstrate excellence in socialStrategic Goal, and DEI stakeholders view innovation. The program empowers local womenour company as a leading example of social to develop the skills to participate in theircommitment in Latin America. We have been families’ economic success. In 2015, severalworking for years to drive social innovation and DEI regions, including Argentina, Brazil, Chile,sustained economic growth in the areas where Ecuador, El Salvador and Guatemala, celebratedwe operate. Our social investments have covered the first group of women entrepreneurs’many areas of community development. graduation from the two-year program.In 2015, we drafted a Social Responsibility A total of 149 women participated andInvestment guideline that sets the minimum developed new skills to start local businessesrequirements needed for DEI business units that contribute to the growth of theirto obtain corporate funding to invest in local communities. The graduates learned howcommunity philanthropic efforts. It also provides to make a business plan, set an appropriateguidance on social investment activity at the price for the products they will sell and attractbusiness unit level. To enhance the impact of new customers to expand their business.our social investments, DEI will focus resources Upon completion of the program, DEI donatedin the following areas, which address key global startup equipment and resources for the newconcerns addressed by the United Nations women entrepreneurs. The new businessSustainable Development Goals and align with ventures resulting from this year’s program include cosmetology; marketing and seamstress services; a carwash and retail stores that sell food, shoes and handmade crafts.We have been working for years to drive social innovation andsustained economic growth in the areas where we operate. WORKING WITH OUR COMMUNITIES\ 78 \ DUKE ENERGY INTERNATIONAL

POWER OF INNOVATION AWARD - DUKE ENERGY BRAZILDUKE ENERGY BRAZIL AWARDSWINNERS OF THE INNOVATION PRIZEDuke Energy Brazil and the Programa Universidad Solidaria (University Partnership Program)presented three groups of university students the Power of Innovation award in Sao Paulo,Brazil. This program aims to promote economic development in our operating areas andunderscores DEI’s commitment to supporting the vitality of our communities.This year’s winning projects focused on the following areas: Technical support and training for garbage collectors to improve waste collection, reuse and recycling in the city of Piraju. P roviding small rural producers in the city of Jacarezinho with food dehydrators that operate from renewable energy. D evelopment of a skills-training program to members of a deaf community in Ibipora.Each winning team in this year’s program received $16,000 to implement their project.For the second straight year, DEI provided financial support and technical assistance to theuniversity program. The students who participate in this program benefit both personallyand professionally from the training and experience they receive. 2015 SUSTAINABILITY REPORT / 79 /

G4-SO1 E cuador: Provided daily breakfasts to the school “Soldaditos del Futuro” to benefit In addition to our signature program, the health and academic performance of each business unit determines engagement 170 schoolchildren. activities at the local level. To assist in their decision-making, our business units conduct E l Salvador: Co-sponsored an interactive a Sustainability Risk and Impact Assessment exhibition at the Tin Marin Children’s Museum to establish the social risk for their operations. in San Salvador to educate children about Regional leaders also use other resources, electricity generation and promote efficient including stakeholder mapping and DEI’s resource use. Indigenous People Policy, to identify specific activities that will have the greatest positive G uatemala: DEI operations provide free health impact. This process ensures that DEI’s services to community members surrounding community involvement accurately reflects the the Arizona Plant by covering the operation diverse needs of each location. Some highlights costs of the local clinic, including salary of DEI engagement in 2015 include: expenses, medicine and medical equipment. A rgentina: The women of Duke Energy Peru: Donated surveying services, grid Argentina participated in a mentoring program construction materials and technical organized by the Voces Vitales Foundation management to help expand electricity and the UN Population Fund. The six-month availability to the rural community program provided personal mentoring, training of Hualcayan. and networking connections for young women with leadership potential. G4-EC7 B razil: DEI donated more than $150,000 In 2015, DEI invested nearly $2.3 million in to support medical professionals’ training in community development. This 12.8 percent minimally invasive surgery techniques and decrease from 2014 aligns with decreased other tools used to treat cancer patients. financial performance in 2015. However, despite this lower total investment, our efforts positively Chile: Employees volunteered alongside affected over 204,000 lives in 2015, a 67 teachers and other community members percent increase over the previous year. This to paint and provide new furniture in six reflects an enhanced ability to identify low-cost, school classrooms. high-impact social commitment initiatives. Moving forward, our goal remains to increase social program funding 20 percent over 2011 totals by 2019. Cumulative Community Investments, By Type & Year (in Thousands of U.S. Dollars) Area 2011 2012 2013 2014 2015 Charitable, Other 76 306 96 395 344 Education/Culture/Recreation 961 Economic Development/Entrepreneurship 549 1,388 1,408 1,441 399 Environmental Stewardship 474 387 185 372 32 Health Care 303 143 303 38 518 Infrastructure 227 136 225 216 41 Volunteerism Program 265 251 172 225 40 DEI Total 67 1,894 2,611 2,389 2,335 2,754\ 80 \ DUKE ENERGY INTERNATIONAL

CONTRIBUTING TO THE GROWTH AND RESILIENCE OF OUR COMMUNITIESRESPONSIBLE ACTION IN PERUThe Responsible Action Day (DAR) is the name given to Duke Energy Peru’s volunteerprogram, in which groups of employees dedicate time and effort to support a localinstitution. These efforts contribute greatly to the growth and resiliency of our communities.This year, more than 60 Duke Energy Peru employees volunteered in various parts of thecountry. In Huipoca, Ucayali, 20 employees from the Aguaytia Thermoelectric Plantorganized a DAR to benefit 60 students of the Casiero Huacamayo School. The volunteerspainted and cleaned the building, replaced the roof and made improvements to the cafeteria.Another group of volunteers from Carhuaquero participated in a DAR at the schoolin San Carlos, Cajamarca. They worked to install new windows, lighting and bathroomfixtures and painted the perimeter fence and kitchen. The team’s efforts directlyenhanced the learning environment of 40 local students.Finally, 23 DEI workers provided support to Kantaya, a nonprofit organization that improvesthe education of underprivileged children who live in Ventanilla. Our employees dedicated theirfree time during this DAR to renovate the facility and make arts and crafts with the children.In addition, DEI employees who were unable to attend took up a collection of gifts to presentto the children. 2015 SUSTAINABILITY REPORT / 81 /

Volunteerism Sharing our time and talent to strengthen the communities and environment where we operate.GOAL 4.2 G4-DMA Committees at each business unit help determine volunteer opportunities and organizeCOMMUNITY Maintaining a robust volunteer program programs for each facility throughout the year.INVOLVEMENT enhances the lives and well-being of people who To enhance our overall impact, we prioritize live near DEI operations. It also drives positive activities by the number of people who willUnderstanding the importance dialogue and strengthens our relationship with benefit from a project. Stakeholders are alsoof engaging our communities, community leaders. Volunteering builds greater free to submit volunteer requests to DEI forDEI will enhance the social awareness in employees, who are proud consideration. Some facilities promote volunteerdevelopment and support to work for a company that engages in positive days of service to maximize staff participationfor cultural and social transformation of the communities where they in organized events, as Duke Energy Peru doesinitiatives within the areas live. Our volunteer program generates a closer with their Responsible Action Day. For example,that we operate. bond between employees and their neighbors employees in El Salvador spent their Volunteer and reinforces DEI’s reputation as a socially Day in 2015 making repairs and planting 200 responsible company. trees in the Acajutla Botanical Park. Our Volunteerism Program enables our DEI continues to work toward the Strategic workforce to give back to the communities Goal of supporting cultural and social initiatives where they live and work, demonstrating their within our communities. The success of the commitment to creating a positive impact in Volunteerism Program is due to the enthusiasm others’ lives. In 2015, 397 DEI employees and and collaboration of all employees across the their relatives invested 2,280 hours of their organization. We take great pride in these time in a wide range of activities, including: achievements and look forward to the next step. Looking ahead, we will begin conducting C ommunity assistance surveys with local communities to obtain feedback on our efforts. The results will inform E ducation future volunteer strategies and lead to stronger engagement efforts as a company. Assistance to the elderly E nvironmental restoration In 2015, 397 DEI employees and their relatives invested 2,280 hours of their time. Historical Volunteerism Program Participation, 2011–2015, DEI Total Year Number of Number of Number of Lives Volunteers Hours Positively Affected 2011 2012 930 6,599 6,917 2013 859 6,284 2,968 2014 749 4,500 2,877 2015 766 3,360 6,527 397 2,280 13,028\ 82 \ DUKE ENERGY INTERNATIONAL

VOLUNTEER EFFORTS IN CENTRAL AMERICAVOLUNTEER EFFORTS IN CENTRAL AMERICAIn August 2015, DEI constructed two new ecologically friendly classrooms at theCoeducational Rural Public School in Escuintla, near the Arizona Plant. The projectutilized sustainable materials and design, including a rain collection system.For the dedication of the new classrooms, a group of 197 volunteers, includingDuke Energy Guatemala employees and their families, organized a VolunteerDay at the school. The volunteers painted the new classrooms, the sports court,bathrooms, floor and wall murals, planted new trees and provided new equipmentto the school.After the work was completed, the School Director, Professor Jaime Mazarigeos,presented a Certificate of Recognition to DEI and underscored the importance ofthe new classrooms, which provide 60 new students with a comfortable indoorlearning environment.Gustavo Franco, an Operator II from at the Arizona Plant, was part of the volunteergroup. “Each year I participate with my family in the Volunteer Day, because itis an important activity for the company and the community, in which we alldonate our time and labor to complete a social responsibility project,” Gustavosaid. “Volunteering is unquestionably one of the main activities that makes meproud to work for Duke Energy International.” 2015 SUSTAINABILITY REPORT / 83 /

PROMOTING SAFETY AWARENESS AND EDUCATION SAFE COEXISTENCE WITH TRANSMISSION LINES The Social Responsibility department at Duke Energy Peru organizes several events throughout the year that align with our commitment to prevent accidents and ensure the safety of our neighboring communities. In the Province of Leoncio Prado, Huanuco Region, we held eight workshops on the topic of safety, easements and environmental protection for 471 students and 108 parents at four schools. Employees also hosted public training for residents in 54 locations around the Aguaytia Plant. These meetings covered important topics such as safe behaviors near gas pipelines and rights-of-way, respecting the signage and safety zone near transmission lines and how to report hazards. At the conclusion of these public events, the participants committed to sharing the information they received with other community members and promoting a culture of safety throughout our areas of influence.\ 84 \ DUKE ENERGY INTERNATIONAL

Public SafetyProviding education and awareness to prepare for both natural and manmade disasters, as well asto prevent incidental contact with electric power lines and natural gas lines. G4-DMA DEI facilities and in surrounding communities. These simulations vary by location and involveDEI takes responsibility for minimizing potential such emergencies as fires, fallen transmissionhazards near residential zones and educating lines, hazardous and non-hazardous spills andcommunity members to avoid contact with natural gas leaks. These preparedness activitiespower lines and gas pipelines. We also use help protect and provide confidence to ourenvironmentally responsible and cost-effective employees, contractors and the public in themethods to maintain rights-of-way for our unlikely event of an incident. We are proud totransmission lines. A failure to do so may result report that in 2015, there were zero reportedin significant property damage, accidental injury injuries to the public involving DEI assets.or death and could result in serious regulatoryfines and loss of trust from stakeholders. PUBLIC EDUCATIONEMERGENCY RESPONSE In 2015, all business units continued to support public safety programs. In Argentina, over G4-EU25 150 students toured DEI facilities to learn more about generating electricity, environmentalWe maintain effective public safety programs responsibility and safety. Duke Energy Brazilthat educate the people living in areas where holds regular public meetings to communicatewe operate. The SMS Crisis Management and reservoir and river levels and potential risksEmergency Preparedness and Response Plan in areas most likely to experience floodshelps EHS Managers anticipate and plan for or droughts. Brazil facilities also utilize ana variety of outcomes and proactively train Emergency Operation System during periodseach member of the workforce. All facilities of significant rainfall or drought to minimizeroutinely conduct emergency preparedness impacts to surrounding communities. In Eldrills to reduce the occurrence and severity of Salvador, Guatemala and Peru, a public healthemergency situations, and to identify potential and safety training program teaches childrengaps in their emergency response procedures. and parents about the importance of electricity to the country’s development, as well as dangersWe also work with local emergency responders associated with playing near transmission linesto hold annual emergency response training and equipment.that simulate a variety of situations both withinWe are proud to report that, in 2015, there were zero reportedinjuries to the public involving DEI assets.SAFE AND RELIABLE OPERATIONS - DUKE ENERGY EL SALVADOR 2015 SUSTAINABILITY REPORT / 85 /

GRI G4 CONTENT INDEXThe GRI Content Index below indicates the reported disclosures and the direct answer or thelocation of information in this report. No data in this report have been externally assured.General Standard DisclosuresGENERAL STANDARD DISCLOSURES PAGE NUMBER / DIRECT ANSWERSTRATEGY AND ANALYSIS G4-1 4–5ORGANIZATIONAL PROFILEG4-3 Duke Energy InternationalG4-4 10–11G4-5 Houston, TexasG4-6 9G4-7 DEI is a wholly-owned subsidiary of Duke Energy Corporation, an investor-owned corporation trading on the New York Stock Exchange under the symbol, DUK.G4-8 9G4-9 9G4-10 73Additional Sector Requirement DEI does not have plans to track contractor data.G4-11 73Additional Sector Requirement DEI does not have plans to track contractor data.G4-EU1 10–11G4-EU2 10–11G4-EU3 DEI is a wholesaler of generated electricity. In 2015, DEI had 130 customer accounts. Of these customers, 67 were distributors of electricity, and 59 who purchased power through negotiated Power Purchase Agreements.G4-EU4 DEI operates 842km of transmission lines in Chile, Ecuador, Guatemala and Peru.G4-EU5 Information is not available. The markets DEI operates within do not have regulated cap and trade systems in place.G4-12 42G4-13 NoneG4-14 Risks are assessed by each business unit without a specific reference to the precautionary principle.G4-15 DEI has referenced outside frameworks, including GRI, the GRI Electric Utilities Sector Supplement, CDP, DJSI and local initiatives in shaping its sustainability strategy.G4-16 19IDENTIFIED MATERIAL ASPECTS AND BOUNDARIESG4-17 Figures related to our equity investment in National Methanol Co., a Saudi Arabian regional producer of MTBE, are not included in this report. Additional details can be found at www.duke-energy.com.G4-18 22G4-19 22G4-20 23G4-21 23G4-22 No information in this report has been restated from a previous report.G4-23 None\ 86 \ DUKE ENERGY INTERNATIONAL

GENERAL STANDARD DISCLOSURES PAGE NUMBER / DIRECT ANSWERSTAKEHOLDER ENGAGEMENT G4-24 20G4-25 20G4-26 20G4-27 21REPORT PROFILE G4-28 3G4-29 3G4-30 3G4-31 3G4-32 This report has been prepared ‘in accordance’ with GRI’s G4 Sustainability Reporting Guidelines Core option. No data in this report have been externally assured.G4-33 NoneGOVERNANCE G4-34 15–16ETHICS AND INTEGRITY G4-56 41G4-57 41MOQUEHUE LAKE, PATAGONIA REGION - ARGENTINA 2015 SUSTAINABILITY REPORT / 87 /

Specific Standard DisclosuresMATERIAL ASPECTS DMA & INDICATORS PAGE NUMBER / DIRECT ANSWER OMISSIONS DEI MATERIAL TOPICECONOMICEconomic Performance G4-DMA 29 Profitability G4-EC1 30 ProfitabilityMarket Presence G4-EC2 36 Competitive Electricity Prices G4-DMA 70 Employee Attraction, Development & Retention G4-EC6 74 Employee Attraction, Development & RetentionProcurement Practices G4-DMA 42 Supply Chain Sustainability Supply Chain Sustainability G4-EC9 43 Competitive Electricity Prices Competitive Electricity PricesAvailability G4-DMA 32and Reliability G4-EU10 32 Emissions & Air Quality Emissions & Air QualityENVIRONMENTAL Water Quality & Availability Water Quality & AvailabilityEnergy G4-DMA 50 Water Quality & Availability Protecting Natural & G4-EN3 54 Cultural Resources Protecting Natural &Water G4-DMA 55 Cultural Resources Emissions & Air Quality G4-EN8 57 Emissions & Air Quality Emissions & Air Quality G4-EN9 55 Emissions & Air Quality Waste ReductionBiodiversity G4-DMA 48 Waste Reduction G4-EN12 48 Protecting Natural & Cultural ResourcesEmissions G4-DMA 50 Water Quality & AvailabilityEffluents and Waste G4-EN15 50 Water Quality & Availability G4-EN18 52 Protecting Natural & G4-EN21 53 Sector-specific Cultural Resources G4-DMA 58 guidance is Protecting Natural & G4-EN23 61 not applicable. Cultural Resources Additional Sector No PCBs were disposed of during Radioactive nuclear Emissions & Air Quality Requirement the reporting period. waste does not Emissions & Air Quality apply to DEI. 49 G4-EN24 55Products and Services G4-DMA 55Compliance G4-EN27 48 G4-DMA G4-EN29 48Transport G4-DMA 53 G4-EN30 53\ 88 \ DUKE ENERGY INTERNATIONAL

MATERIAL ASPECTS DMA & INDICATORS PAGE NUMBER / DIRECT ANSWER OMISSIONS DEI MATERIAL TOPICENVIRONMENTAL G4-DMA 42 Supply Chain Sustainability G4-EN32 All new suppliers are evaluated Supply Chain SustainabilitySupplier Environmental based on specific criteria set byAssessment the organization. Though no formal Employee Attraction, compliance screening has been Development & RetentionSOCIAL executed on an annual basis to date, Employee Attraction, contracts will be discontinued if Development & RetentionLABOR PRACTICES AND DECENT WORK vendors do not comply with our Employee Attraction, standards and local regulations. Development & RetentionEmployment G4-DMA 70 Worker Safety & Health Worker Safety & Health G4-LA1 73 Worker Safety & Health Employee Attraction, G4-EU18 74 Not applicable; Development & Retention Contractors go Employee Attraction, through their own Development & Retention safety training Employee Attraction, based on the Development & Retention job description. Ethics & ComplianceOccupational G4-DMA 64 Ethics & ComplianceHealth and Safety G4-LA5 64 Ethics & Compliance G4-LA6 67 Ethics & ComplianceTraining and Education G4-DMA 74 Ethics & Compliance G4-LA9 74 Ethics & Compliance G4-LA10 74 Supply Chain Sustainability Supply Chain SustainabilityHUMAN RIGHTS Non-Discrimination G4-DMA 41 G4-HR3 41Child Labor G4-DMA 41 G4-HR5 No incidents of child labor were brought to our attention in 2015. Limiting the likelihood of such incidents requires annual supplier briefings on our standards and expectations.Forced or G4-DMA 41Compulsory Labor G4-HR6 No incidents of forced or compulsory labor were brought to our attention in 2015. Limiting the likelihood of such incidents requires annual supplier briefings on our standards and expectations.Indigenous Rights G4-DMA 42 G4-HR8 No violations of indigenous rights were reported in 2015. 2015 SUSTAINABILITY REPORT / 89 /

MATERIAL ASPECTS DMA & INDICATORS PAGE NUMBER / DIRECT ANSWER OMISSIONS DEI MATERIAL TOPICHUMAN RIGHTS Supply Chain Sustainability Supply Chain SustainabilitySupplier Human G4-DMA 42Rights Assessment G4-HR10 100 percent of suppliers are briefed Community Development on our Human Rights standards set Community DevelopmentSOCIETY G4-DMA within the Supplier Code of Conduct. Community DevelopmentLocal Communities 78 Ethics & Compliance Ethics & Compliance G4-SO1 80 Ethics & Compliance Ethics & Compliance G4-EU22 DEI did not develop any projects in Ethics & Compliance 2015 that physically or economically Ethics & Compliance displaced people. Ethics & Compliance Supply Chain SustainabilityAnti-Corruption G4-DMA 41 Supply Chain Sustainability G4-SO3 41 Public Safety Public Safety G4-SO4 41 Customer Engagement Customer EngagementAnti-Competitive G4-DMA 41 Ethics & ComplianceBehavior G4-SO7 See Duke Energy Form 10-K Ethics & Compliance Reliable ElectricityCompliance G4-DMA 41 Reliable Electricity G4-SO8 See Duke Energy Form 10-K Volunteerism VolunteerismSupplier Assessment G4-DMA 42for Impacts on Society G4-SO9 All new suppliers are evaluated based on specific criteria set by the organization. Though no formal compliance screening has been executed on an annual basis to date, contracts will be discontinued if vendors do not comply with our standards and local regulations.PRODUCT RESPONSIBILITY Customer Health G4-DMA 85and Safety G4-EU25 85Product and G4-DMA 39Service Labeling G4-PR5 39Compliance G4-DMA 41 G4-PR9 NoneAccess G4-DMA 32 G4-EU30 35NON-GRI MATERIAL ASPECTS G4-DMA 82 Indicator 82\ 90 \ DUKE ENERGY INTERNATIONAL

LAS PALMAS II 83 MW THERMOELECTRIC PLANT - DUKE ENERGY GUATEMALA 2015 SUSTAINABILITY REPORT / 91 /

GLOBAL REPORTING INITIATIVE ABOUT OUR DATAThe Global Reporting Initiative (GRI) is a recognized international framework for economic, environmental and This report contains the best data available at time of publication. Social and environmental data can besocial performance disclosure. We provide a detailed response to GRI indicators on our website, including challenging to accurately measure. We correct and report errors in prior-year data when found, and we workindicators in GRI’s Electric Utilities Sector Supplement. to continually improve our data measurement, gathering and reporting processes to increase the integrity of information presented.FORWARD-LOOKING INFORMATIONCautionary statements regarding forward-looking information and the value of underlying assets; the results of financing efforts, including the ability to obtain financing on favorable terms, which can be affected by various factors, including credit ratings, interest rate fluctuationsThis document includes forward-looking statements within the meaning of Section 27A of the Securities Act and general economic conditions; declines in the market prices of equity and fixed income securities andof 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on resultant cash funding requirements for defined benefit pension plans, other post-retirement benefit plans,management’s beliefs and assumptions and can often be identified by terms and phrases that include and nuclear decommissioning trust funds; construction and development risks associated with the“anticipate,” “believe,” “intend,” “estimate,” “expect,” “continue,” “should,” “could,” “may,” “plan,” completion of Duke Energy Registrants’ capital investment projects, including risks related to financing,“project,” “predict,” “will,” “potential,” “forecast,” “target,” “guidance,” “outlook” or other similar obtaining and complying with terms of permits, meeting construction budgets and schedules, and satisfyingterminology. Various factors may cause actual results to be materially different than the suggested outcomes operating and environmental performance standards, as well as the ability to recover costs from customerswithin forward-looking statements; accordingly, there is no assurance that such results will be realized. in a timely manner or at all; changes in rules for regional transmission organizations, including changes inThese factors include, but are not limited to: state, federal and foreign legislative and regulatory initiatives, rate designs and new and evolving capacity markets, and risks related to obligations created by the defaultincluding costs of compliance with existing and future environmental requirements or climate change, as of other participants; the ability to control operation and maintenance costs; the level of creditworthiness ofwell as rulings that affect cost and investment recovery or have an impact on rate structures or market counterparties to transactions; employee workforce factors, including the potential inability to attract andprices; the extent and timing of costs and liabilities to comply with federal and state laws, regulations, and retain key personnel; the ability of subsidiaries to pay dividends or distributions to Duke Energy Corporationlegal requirements related to coal ash remediation, including amounts for required closure of certain ash holding company (the Parent); the performance of projects undertaken by our nonregulated businesses andimpoundments, are uncertain and difficult to estimate; the ability to recover eligible costs, including amounts the success of efforts to invest in and develop new opportunities; the effect of accounting pronouncementsassociated with coal ash mitigation such as coal ash impoundment retirement obligations and cost related issued periodically by accounting standard-setting bodies; the impact of potential goodwill impairments; theto significant weather events, and earn an adequate return on investment through the regulatory process; ability to reinvest prospective undistributed earnings of foreign subsidiaries or repatriate such earnings on athe costs of decommissioning Crystal River Unit 3 and other nuclear facilities could prove to be more tax-efficient basis; the expected timing and likelihood of completion of the proposed acquisition of Piedmontextensive than amounts estimated and all costs may not be fully recoverable through the regulatory process; Natural Gas Company, Inc. (Piedmont), including the timing, receipt and terms and conditions of anycredit ratings of the Duke Energy Registrants may be different from what is expected; costs and effects of required governmental and regulatory approvals of the proposed acquisition that could reduce anticipatedlegal and administrative proceedings, settlements, investigations and claims; industrial, commercial and benefits or cause the parties to abandon the acquisition, and under certain specified circumstance pay aresidential growth or decline in service territories or customer bases resulting from variations in customer termination fee of $250 million, as well as the ability to successfully integrate the businesses and realizeusage patterns, including energy efficiency efforts and use of alternative energy sources, including anticipated benefits and the risk that the credit ratings of the combined company or its subsidiaries may beself-generation and distributed generation technologies; federal and state regulations, laws and other efforts different from what the companies expect; and the ability to successfully complete future merger, acquisitiondesigned to promote and expand the use of energy efficiency measures and distributed generation or divestiture plans. Additional risks and uncertainties are identified and discussed in the Duke Energytechnologies, such as rooftop solar and battery storage, in Duke Energy service territories could result in Registrants’ reports filed with the SEC and available at the SEC’s website at www.sec.gov. In light of thesecustomers leaving the electric distribution system, excess generation resources as well as stranded costs; risks, uncertainties and assumptions, the events described in the forward-looking statements might notadvancements in technology; additional competition in electric markets and continued industry occur or might occur to a different extent or at a different time than described. Forward-looking statementsconsolidation; political, economic and regulatory uncertainty in Brazil and other countries in which Duke speak only as of the date they are made; the Duke Energy Registrants expressly disclaim an obligation toEnergy conducts business; the influence of weather and other natural phenomena on operations, including publicly update or revise any forward-looking statements, whether as a result of new information, futurethe economic, operational and other effects of severe storms, hurricanes, droughts, earthquakes and events or otherwise.tornadoes; the ability to successfully operate electric generating facilities and deliver electricity to customersincluding direct or indirect effects to the company resulting from an incident that affects the U.S. electric grid Copyright 2016 Duke Energy Corporation • All rights reservedor generating resources; the impact on facilities and business from a terrorist attack, cybersecurity threats,data security breaches, and other catastrophic events such as fires, explosions, pandemic health events orother similar occurrences; the inherent risks associated with the operation and potential construction ofnuclear facilities, including environmental, health, safety, regulatory and financial risks; the timing andextent of changes in commodity prices, interest rates and foreign currency exchange rates and the ability torecover such costs through the regulatory process, where appropriate, and their impact on liquidity positions