Annual Report 2023

Our People & Planet Plan is creating a more inclusive and sustainable future that supports communities, our planet and each other.

Through five group-wide goals, we’re accelerating action on issues that matter deeply to our business and society, and where we’re well-placed to make a world of difference – from achieving net zero and creating the diverse and inclusive team we need to get there, to contributing to the communities we’re all part of.

People and Planet 
Goal 1

By 2030, we want to create an engaged team that reflects the full diversity of the communities we serve

Key: Progress against goals

● On Track     ● Behind

(1) Based on 2021 Census data for working populations. Towards this, we aim to be 40% women, 16% ethnically diverse, 10% disability, 3% LGBTQ+ and 3% ex-service by the end of 2025.

Since we launched our goals in 2021, we’ve seen strong progress as better recruitment and retention practices provided an initial boost to the majority of our diversity goals which improved by up to 4%. In particular, diversifying senior levels and growing disability representation are areas for us to work on. Attracting more women into engineering is also challenging given our large Field engineering team reflects the existing male-dominated market, which impacts our overall Group performance that would otherwise be on track.

We’re taking action. This includes quarterly tracking of tailored Diversity, Equity and Inclusion (DE&I) Action Plans and dashboards for each business, expanding talent development programmes for under-represented groups, embedding succession planning and diverse shortlisting for senior roles, and inspiring more women into engineering. In 2024, we’ll continue to embed our Action Plans to drive the improvement we need to succeed.

People and Planet 
Goal 2

By 2030, we want to recruit 3,500 apprentices and provide career development opportunities for under-represented groups (2,000 apprentices by the end of 2025)

Key: Progress against goals

● On Track     ● Behind

(2) Base year 2021.

This is equivalent to hiring an apprentice every day over the next decade. Since 2021, we’ve hired 1,198 apprentices and helped over 750 trainees professionally qualify in areas like gas and whitegoods. Our Ex-Forces Pathway programme also hired 227 people against our ambition to recruit 500 veterans, reservists, spouses and partners, and will be rolled into 2024-25. Progress against our goal in 2023 was slightly behind where we wanted to be as we slowed recruitment to focus on operational stability across our customer-facing business. Meanwhile, 14% of our Smart Energy Apprentices were women as we work towards our 50% ambition by 2030. This is higher than the gas engineer average of 0.2% women.

We’re strengthening recruitment and marketing campaigns, which we hope will get us back on track in the years ahead.

People and Planet 
Goal 3

By 2030, we want to inspire colleagues to give 100,000 days to build inclusive communities (35,000 days by the end of 2025)

Key: Progress against goals

● On Track     ● Behind

(3) Base year 2019.

People and Planet 
Goal 4

By 2050, we want to help our customers be net zero (28% GHG intensity reduction by end of 2030)

Key: Progress against goals

● On Track     ● Behind

(4) Net zero goal measures the greenhouse gas (GHG) intensity of our customers’ energy use including electricity and gas with a 2019 base year of 183gCO₂e/kWh , normalised to reflect acquisitions and divestments in line with changes in Group customer base. Target aligned to the Paris Agreement and based on science to limit global warming, corresponding to a well below 2°C pathway initially and 1.5°C by mid-century.

In 2023, we provided energy, services and solutions that cut the GHG intensity of the energy our customers use by 10% against the 2019 base year – equivalent to the annual emissions of more than 860,000 homes. Savings were largely driven by our renewable and low carbon energy tariffs alongside energy efficiency and optimisation solutions like air source heat pumps and Hive Active Heating. This was up from the 6% reduction achieved in 2022 and was largely due to a rise in the zero-carbon content of our reported electricity fuel mix, which improved by 5% to 80% compared to the UK national average of 55%.

We’ll continue to help customers reduce their emissions by focusing on energy efficiency and optimisation services alongside low carbon technologies and cleaner energy.  

People and Planet 
Goal 5

By 2045, we want to be a net zero business (40% GHG reduction by the end of 2034)

Key: Progress against goals

● On Track     ● Behind

(5) Net zero goal measures scope 1 (direct) and 2 (indirect) GHG emissions based on operator boundary. Comprises emissions from all operated assets and activities including the shipping of Liquified Natural Gas (LNG) alongside the retained Spirit Energy assets in the UK and Netherlands. Non-operated nuclear emissions are excluded. Target is normalised to reflect acquisitions and divestments in line with changes in Group structure against a 2019 base year of 2,132,680mtCO₂e . It’s also aligned to the Paris Agreement and based on science to limit global warming, corresponding to a well below 2°C pathway initially and 1.5°C by mid-century.

Our total GHG emissions reduced by 21% against the 2019 base year in 2023. This was up from the 5% reduction delivered in 2022 and was largely driven by reduced emissions from our Whitegate power station as well as our gas production operations. Sustainable savings were also secured via the gradual roll-out of our electric vehicle road fleet and across our property portfolio.

We’ll continue to drive emissions out of our business and identify opportunities wherever possible to support the adoption of lower carbon energy for customers – from securing up to 800MW of low carbon and transition assets by 2025, to exploring the conversion of our Rough gas storage facility to store hydrogen and more.