We are tackling climate change by reducing emissions across our business and providing products and services that lead to a lower carbon future.
Helping customers cut their carbon emissions
More than 90% of our carbon emissions are associated with the energy consumed by our customers. So the biggest contribution we can make in tackling climate change is to help them cut their carbon by using our energy efficiency and Connected Home products, alongside the solutions offered by our DE&P business. We calculate this has saved our customers nearly 31mtCO2e since 2008 – equivalent to the annual emissions of around nine million UK homes.
Decarbonising the energy system
Centrica is revolutionising the way energy is generated, managed and consumed, by leading the transition to a decentralised energy system that enhances grid flexibility, supports renewables and reduces reliance on fossil fuels.
During 2017, we:
- created Centrica Business Solutions, a one-stop-shop for large-scale energy users to harness distributed energy products and services;
- completed a 3MW battery storage scheme for Gateshead Council, to help keep the national electricity network in balance;
- invested £62 million to acquire REstore, Europe’s leading demand-response aggregator, enabling us to counter grid imbalance by managing demand from commercial and industrial customers; and
- launched a £180 million investment programme to build three new flexible power generation facilities and one of the world’s largest battery storage facilities, to meet peaks in local demand and back-up intermittent renewables.
We are additionally playing an important role in growing the infrastructure needed to lower emissions from transport, having installed around 13,000 electric vehicle charge points since 2013.
Reducing operational impact
We have shifted away from being a largescale energy producer and now emit over 70% less carbon for every pound of revenue than we did in 2010.
In 2017, our total carbon emissions decreased by 19%. This was mainly due to the sale of our Exploration & Production business in Canada and two power plants in the UK. The average carbon intensity of our Central Power Generation remained relatively stable at 125gCO2/kWh. Instead of generating power for our customers, we will now predominantly buy it for re-sale from third parties.
Meanwhile, the internal carbon footprint of our property, fleet and travel reduced 11% in 2017. The decline was achieved through planned carbon reduction activities alongside headcount reductions arising from the reorganisation of our business. Following these changes, we are reassessing our targets for both carbon intensity of Central Power Generation and internal carbon footprint.
| Total carbon emissions | |
|---|---|
|
2017† |
4,103,348tCO2e |
|
2016(1) |
5,073,320tCO2e |
| Scope 1 | |
|---|---|
|
2017† |
4,044,754tCO2e |
| 2016(1) |
4,986,299tCO2e |
| Scope 2 | |
|---|---|
|
2017† |
58,594tCO2e |
|
2016(1) |
87,022tCO2e |
| Total carbon intensity by revenue | |
|---|---|
|
2017 |
146tCO2e/£m |
|
2016(1) |
187tCO2e/£m
|
We report on an equity basis with practices drawn from WRI/WBCSD Greenhouse Gas Protocol, IPIECA’s Petroleum Industry Guidelines for Reporting Greenhouse Gas Emissions and Defra’s Environmental Reporting Guidelines – see the Basis of Reporting at centrica.com/assurance for full details.
(1) Restated due to availability of improved data.
Find out more in our Sustainability section