Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate change
• Health and safety
• Vulnerable customers
• Supply chain
• Employees
• Local communities
• Responsible procurement

Environmental Achievements

• Reduced UK office energy usage by 8.36%
• Energy efficiency products supplied resulted in 17.53m tonnes of lifetime CO2 savings
• Reduced carbon intensity of electricity generation by 2% to 371g CO2/kWh
• Achieved 84% score in the Carbon Disclosure Project, ranking as top utility in Europe

Social Achievements

• Supported around 2.2m vulnerable households with discounted fuel, benefits advice, and other services
• Decreased Lost Time Injury (LTI) rate by 50%
• Improved employee engagement score by six percentage points to 66%
• Reduced employee attrition from 14.6% to 8.8%

Governance Achievements

• Conducted a comprehensive review of corporate responsibility strategy
• Established a Corporate Responsibility Committee
• Implemented responsible procurement programme, with 101 suppliers signing contracts with CR clauses

Climate Goals & Targets

Environmental Challenges

• Need to transform the business to meet the needs of a low-carbon future
• Aligning Venture’s processes with Centrica’s
• Embedding climate change strategy across the business, particularly in North America where regulatory frameworks are less developed
• Embedding a health and safety culture
• Addressing the needs of vulnerable customers in North America
• Embedding responsible procurement commitments among suppliers
• Maintaining momentum in business principles training

Mitigation Strategies

• Reviewed CR strategy in 2009 to coordinate activities
• Investing in energy efficiency, smart metering, and microgeneration
• Introducing a new Group Environment policy and reassessing key targets
• Embedding health, safety, and environment metrics into annual performance reviews
• Developing a more strategic approach to vulnerable customers in North America
• Reporting on supplier contracts with responsible procurement clauses as a KPI
• Developing a shorter annual declaration of business principles

Supply Chain Management

Supplier Audits: 5 trial audits in 2009

Responsible Procurement

• Group Responsible Procurement and Supplier Management Policy
• CR clauses in contracts
• Supplier assessment questionnaire

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: UN Global Compact

Certifications: ISO 14001

Third-party Assurance: Corporate Citizenship

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• EnergySmart tariff
• Energy360 service
• Smart meters
• Microgeneration technologies

Awards & Recognition

• NQA Environmental Leadership Award
• AARP International Innovative Employer Award
• 25th Anniversary Women in Science & Engineering Award
• UK Employers Forum on Age award

Environmental Metrics

ESG Focus Areas

• Energy Affordability
• Greenhouse Gas Emissions
• Air Quality
• Water Management
• Workforce Health & Safety
• Integrity of Gas Delivery Infrastructure
• Community Relations
• Security, Human Rights & Rights of Indigenous Peoples
• Reserves Valuation & Capital Expenditures
• Business Ethics & Transparency
• Management of the Legal & Regulatory Environment
• Critical Incident Risk Management

Environmental Achievements

• Reduced Scope 1 emissions to 996,130 tCO2e
• Delivered 1,140,059 MMBtu of gas savings under the ECO regulatory scheme and Smart meter installation scheme in the UK
• Delivered 76,449 MWh of electricity savings under the Smart meter installation scheme in the UK

Social Achievements

• Spent nearly £217m supporting vulnerable customers in 2020
• Achieved a Total Recordable Incident Rate (TRIR) of 1.26 per 200,000 hours in electric utilities and 0.41 per 200,000 hours in oil and gas exploration and production

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• A range of factors may affect affordability of gas and electricity. These can include political and regulatory intervention, external risks associated with COVID-19, commodity price fluctuations, the extent to which the market is competitive as well as weather events.

Mitigation Strategies

• Ensuring customers in vulnerable circumstances receive the help they need.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• 6% reduction in total GHG emissions from 2019 levels
• 70% reduction in emissions over the last decade
• GHG intensity of customers’ energy use reduced by 6% from 2019

Social Achievements

• Recruited over 1000 apprentices by the end of 2022 towards a target of 3,500 by 2030
• Launched British Gas Zero, a new business unit to support customers with the journey to net-zero

Governance Achievements

• Incorporated climate transition KPIs into incentive plans for Executive Directors and other key colleagues
• Board-level oversight of climate-related issues
• Climate change identified as a Principal Risk since 2021

Climate Goals & Targets

Environmental Challenges

• Escalating cost of green energy certification
• Need to keep costs down for customers during the energy crisis
• Reduced energy demand driven by improved efficiency and changing consumer behaviour
• Increased frequency and intensity of extreme weather events

Mitigation Strategies

• Exploring all options to decarbonise energy supply in a robust and affordable way
• Delivering energy efficiency and optimisation services, alongside low carbon technologies
• Building a zero-emission road fleet in the UK by 2025
• Cutting UK property emissions by a further 50% by 2030
• Exiting remaining activities in oil and gas exploration and production
• Redirecting investment into assets that drive the transition forward
• Flood and extreme weather risk assessments

Supply Chain Management

Supplier Audits: 65% of supplier-related Scope 3 emissions covered by Carbon Reduction Plan requirement

Responsible Procurement

• Carbon Reduction Plans for suppliers with spend over £5m
• Responsible Sourcing Policy

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts
• Reduced demand for natural gas

Opportunities

• Growth in low-carbon energy sources
• Development of low-carbon products and services
• Investment in renewable energy assets

Reporting Standards

Frameworks Used: TCFD, GHG Protocol

Certifications: ISO 14001

Third-party Assurance: DNV

UN Sustainable Development Goals

• Goal 7
• Goal 9
• Goal 11
• Goal 13

People & Planet Plan goals contribute to these SDGs

Sustainable Products & Innovation

• Hive smart home energy management products
• EV charging solutions
• Heat pumps
• Solar PV

Environmental Metrics

ESG Focus Areas

• Net Zero
• Customer Support
• Colleague Engagement
• Energy Security
• Responsible Sourcing

Environmental Achievements

• Reduced total GHG emissions (scope 1 and 2) by 21% from 2019 base year to 1,681,475 tCO2e.

Social Achievements

• Launched the Centrica Colleague Support Foundation, providing grant funding to colleagues in extreme financial difficulty.
• Improved colleague engagement score to 7.7 (out of 10).

Governance Achievements

• Appointed three new independent Non-Executive Directors, enhancing Board diversity and expertise.
• Completed a Board self-evaluation to assess effectiveness.

Climate Goals & Targets

Environmental Challenges

• High customer debt due to cost of living crisis.
• Regulatory scrutiny in retail energy supply.
• Climate change impacts on assets and operations.
• Cybersecurity threats.
• Supply chain disruptions.

Mitigation Strategies

• Developed additional support processes to help customers repay debt.
• Continuous engagement with policymakers and regulators.
• Green-focused investment strategy to address climate change.
• Cyber Security Change Programme to enhance security capabilities.
• Increased supplier audits and responsible procurement practices.

Supply Chain Management

Supplier Audits: 20 on-the-ground site inspections and over 6,500 remote worker surveys/year

Responsible Procurement

• Responsible Sourcing Policy
• Risk-based supplier training and due diligence

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Sea level rise
• Heat waves

Transition Risks

• Policy changes
• Market shifts
• Technology disruptions

Opportunities

• Growth in low-carbon heating and transport markets
• Investment in renewable energy assets

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: DNV Business Assurance Services UK Limited

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Heat pumps
• EV chargers
• Smart meters
• PeakSave tariffs

Awards & Recognition

• The Times Top 50 Employers for Gender Equality