Centrica (CNA) ESG Update summary

Strategic approach and business model

• Committed to being a net zero business by 2040, five years earlier than previously targeted, with a 50% GHG reduction by 2032 (from 2019 levels).

• The plan aligns with the Transition Plan Taskforce (TPT) framework, addressing emissions, risks, opportunities, and supporting an economy-wide transition.

• The integrated business model spans the energy value chain, including generation, storage, retail, and optimization, with decarbonization strategies tailored to each segment.

• Over 50% of investments between 2023-2028 are targeted for green activities, including renewables, flexibility, and customer solutions.

• Climate Ambitions include net zero baseload power by 2034-39, gas production and storage by 2035, and LNG shipping by 2035.

Emissions targets and progress

• Achieved over 70% reduction in own emissions over the past decade; Scope 3 emissions from customer energy use represent 90% of value chain emissions.

• Brought forward Scope 1 and 2 net zero target to 2040 (from 2045), and increased interim reduction goal to 50% by 2032.

• Aims to help customers achieve net zero by 2050, targeting a 28% reduction in GHG intensity by 2030.

• Decarbonization of assets like Whitegate Power Station and Rough gas storage is planned, with net zero ambitions for baseload power, gas production, storage, and LNG shipping by 2034-2039.

• No further investment in new oil and gas exploration; existing reserves to be depleted by early 2030s.

Key levers and customer initiatives

• Four main levers for customer emissions: grid decarbonization, gas decarbonization, energy efficiency, and fuel switching.

• Targets include supplying 100% renewable or low-carbon power by 2030 and engaging at least a third of customers in green tariffs.

• Expanding smart services, aiming for 80% of UK electricity customers to have access to smart meters by 2030.

• Targeting 20,000 heat pump sales per year by 2030 and 5 million devices connected to the Hive platform.

• Zero emissions vehicle fleet by 2030, with 100% electric cars by 2026 and vans by 2030.