We want to lead by example and demonstrate to customers and wider stakeholders, that we’re committed to energising a greener, fairer future by taking decisive action to reduce our own emissions.
Whilst our direct Scope 1 and 2 emissions are a relatively small component of our value chain emissions, we can be more definitive in the actions we intend to take to reduce emissions because we’ve more control over them. That’s why in 2024, we took the decision to strengthen our climate targets. We’re now focused on achieving a 50% reduction in GHG emissions by 2032 (our interim target against a 2019 base year), as we work towards being net zero by 2040 (our long-term target). This compares to our previous target of a 40% reduction in GHG emissions by 2034, with net zero by 2045.
Every part of our business has a part to play in our Climate Transition Plan because we can’t achieve net zero without an enterprise-wide transformation. Some parts will, however, have a greater role than others to play and progress will be delivered at different paces. The chart below shows our main activities together with our analysis of the key decarbonisation levers and their relative contribution to deliver our targets.
Centrica (Scope 1 & 2) decarbonisation by activity
We conducted an enterprise-wide review that involved the leadership across all of our business units, to identify opportunities that help achieve Centrica's net zero targets and establish aspirational ‘stretch' ambitions for each business area to drive progress.
In particular, our asset strategy has evolved significantly and we’re now more confident in setting clear ambitions to achieve net zero for the majority of our assets by 2035-39, underpinned by our green investment ambition. It is through these ambitions that we effectively manage the risk of locked-in GHG emissions or stranded assets.
The table below shows Centrica’s net zero targets, supported by our new set of Climate Ambitions to help achieve them:
Climate Transition Plan
We’ve been able to go further and faster in our latest Climate Transition Plan than ever before. We plan to advance delivery against our net zero targets with a new suite of enhanced Climate Ambitions – from achieving 20,000 heat pump sales a year and 5 million Hive connected devices by 2030, to forming a joint venture to build Europe’s first ammonia-fired power station in Ireland.
