Centrica outlines new commitments on net zero and accelerates decarbonisation plan

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Centrica has unveiled an updated Climate Transition Plan, which forms the basis for how the company will tackle the urgent challenge of climate change. The plan, originally published in 2021, will see Centrica’s commitments expanded to reflect developments in net zero thinking from the last three years.

Most notably, Centrica has brought forward its target to become a net zero business to 2040, five years ahead of the 2045 timeline set by the original plan and ten years ahead of the widely accepted point at which global society needs to reach net zero. In addition to this ambitious corporate target for becoming net zero, Centrica has maintained its commitment to get customers to net zero emissions by 2050. 

The goals set in the new Climate Transition Plan build on the progress made by Centrica in delivering against its existing carbon reduction targets having so far delivered around a 20% reduction in its business emissions alongside a 10% reduction in its customers’ energy GHG intensity since 2019.

The Climate Transition Plan contains a new ambition for all Centrica customers in the UK and Ireland to be supplied by renewable or zero carbon power by 2030. This commitment builds on the company’s existing work to help households and businesses alike reduce their carbon footprints while maintaining reliable and affordable energy supply. Customers will also benefit from investments in efficiency and cleaner energy infrastructure.

Centrica announced in 2022 that it would no longer invest in the exploration of new oil and gas fields, however Natural Gas will continue to be an important transition fuel for some time and Centrica plans to grow its Liquified Natural Gas (LNG) business. Therefore, reducing the emissions from global shipping will be a key feature of the plan and the company has set a new ambition to cut shipping emissions rapidly in the 2030s. In addition, Spirit Energy, which is majority owned by Centrica, has committed to reach net zero by 2035 from its gas production activities as has Centrica Energy Storage + which aims to develop Europe’s largest hydrogen store. 

Centrica’s updated plan also makes bold new commitments on employees. The plan estimates that around 6,500 new jobs will be created through the transformation of the Rough gas storage site, Easington, and Morecambe, into hubs for low-carbon infrastructure. These roles will be critical in achieving the targets set out in the plan. Additionally, Centrica has built on its commitment to recruit 3,500 new apprentices by 2030 and the ambition for 50% of these roles to be filled by women, with a new ambition to upskill 3,000 engineers with green skills by 2030.

Centrica has also reiterated its commitment to investing between £600m-£800m a year until 2028 in low carbon generation, security of supply, and customers with an ambition to grow green investment to over 50% between 2023 and 2028.

Chris O’Shea, Chief Executive of Centrica, commented: “The impacts of climate change are undeniable and the need for urgent action has never been clearer. We know the energy transition will pose challenges, but we also know that it presents an incredible opportunity to create a healthier, more sustainable planet while driving economic growth. Our updated Climate Transition Plan demonstrates the bold action we will take to accelerate progress, invest in innovative solutions, and ensure a fair and inclusive transition for all. We’re fully prepared to play our part in this journey and I’m excited that we’ve been able to agree such an ambitious, comprehensive plan.”

James Rushen, Centrica’s Head of Environment, added: “Accelerating our target to become a net zero business to 2040 shows the scale of our ambition on climate change. Our new Climate Transition Plan is more detailed and transparent than ever before and contains a new set of credible but challenging ambitions right across the group, to deliver net zero within our business whilst driving a just transition for our colleagues and customers. It’s a great example of how we’re energising a greener, fairer future.”