Adapting & Changing to Meet the Needs of Customers DIGITAL REPORT 2021
IN ASSOCIATION WITH:
CENTRICA: ADAPTING & CHANGING CENTRICA
TO MEET THE NEEDS OF CUSTOMERS
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Discover the history of Centrica, its strategy, business operations and sustainable efforts
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roud to be founded on a heritage of 200 years, serving customers in homes and businesses, Centrica is driven by its purpose to help customers live sustainably, simply, and affordably. “As the pace of change continues to accelerate, we will respond by focusing colleagues and technology on helping businesses and households to use energy more efficiently and sustainably,” states Centrica. The History of Centrica Founded in 1997 following the demerger of British Gas, Centrica took on the gas sales, gas trading, services and retail business, and the gas production business of the North and South Morecambe gas field. Over the next 20 years, Centrica continued to grow its operations, making several company acquisitions, including Direct Energy, Dyno-Rod, Clockwork Home Services (Via Direct Energy), Home Warranty of America (Via Direct Energy), Bord Gáis Energy, NEAS energy and ENER-G Cogen International Limited. Today, Centrica is an FTSE 250 company, with 23,846 employees, 9.2million residential customers, 17,700 electric vehicle charging points, and revenue of £20.8bn. “Our company is founded on a proud 200-year heritage of serving customers in homes and businesses. From our early days centrica.com
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Centrica - People and Planet plan
supplying gas and coal to being an energy and services company today, we have adapted and changed to meet the needs of our customers,” comments Centrica. The Centrica Business Model Designed to focus on meeting the changing energy supply, services, and solutions needs for its customers, Centrica provides its offerings to both consumers and businesses, helping them transition to a lower-carbon future. For its consumer customers, Centrica provides supply, and home services and solutions, ranging from protection, installation and smart heating to the supply of gas and electricity. “We want to make people’s lives simpler by providing seamless, time-saving services that are affordable and sustainable. Understanding and satisfying consumer needs is critical to our success,” says Centrica. 6
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CENTRICA’S FIVE GROUP PRIORITIES 1. Customer obsession 2. Operational excellence 3. Most competitive provider 4. Cash flow growth 5. Empowered colleagues
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Centrica is ‘a trusted energy partner’ for its business customers, providing energy and solutions to help businesses operate more efficiently and sustainably to achieve commercial success. Its services range from energy supply to energy trading and optimisation and business services and solutions. At the heart of its success, Centrica places its values, culture and code. “Care, delivery, collaboration, agility and courage are values we developed through conversations with employees [...] By living our values, we will be better able to fulfil our purpose and satisfy the changing needs of our customers.” Centrica divides its code of conduct into six key areas: 1. 2. 3. 4. 5.
Operating safely and securely Conducting its business with integrity Valuing people Treating customers fairly Protecting assets, information and interests 6. Working responsibly with communities and government Centrica’s People and Planet Plan Committed to supporting every colleague to be themselves and every customer to live more sustainably, Centrica is committed to Sustainable Development Goals (SDGs) five (gender equality), eight (decent work and economic growth) and seven (affordable and clean energy). People As part of these SDGs, Centrica has set bold targets for 2030, with ambitions to create an engaging and inclusive team that reflects the full diversity of the communities they serve, recruit 3,500 apprentices and provide centrica.com
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CENTRICA’S CORE STRATEGY PILLARS Sustainability: “We are committed to a cleaner and greener future, and we are making changes in order to achieve this. We will reduce our own emissions to reach net-zero and will help our customers to reduce theirs.” Simplicity: “We are simplifying and modernising our business to allow us to put customers at the heart of everything we do with the aim of making their lives simpler and easier.” Affordability: “Being able to reach netzero in an affordable way is core to our customers’ futures, so we are striving to provide energy, services and solutions that deliver value.”
“ We’re continuing to find solutions to some of the key challenges related to decarbonisation” CENTRICA career development opportunities for under-represented groups, and inspire colleagues to give 100,000 days to build inclusive communities. “Our People & Planet Plan aims to create a more inclusive and sustainable future that supports our communities, our planet and each other. The Plan builds on progress made in previous years and accelerates action through five global goals that are focused in areas that matter deeply to our business and society, and where we’re well placed to make a world of difference,” explains Centrica. centrica.com
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To this effect, over the next decade, Centrica aims to have 47% of leaders female, 14% ethnic minority, 15% disability, 3$ LGBTQ+, and 3% ex-services. whilst recognising that it’ll be tough to achieve this target given the industry being heavily maleorientated, Centrica believes that “aiming high is the right approach to deliver the change we all need and want.” In addition, Centrica plans to expand its opportunities across partnerships, recruiting 1,000 new apprentices by 2022, with ambitions for 50% of them to be women, and continue to inspire its colleagues to build inclusive communities via its charity 10
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partnerships, which it is currently on track to deliver 10,000 volunteer days by 2022. Planet As part of its environmental SDGs, Centrica’s targets are centred around its customers and business, helping its customers reach net-zero by 2050 and become a net-zero business by 2045. Customers “Climate change is one of the greatest challenges facing society. And with around 90% of our total carbon emissions coming from our customers, the biggest thing we
can do to fight it is to help them use energy more sustainably,” says Centrica, which is why the company offers its customers energy efficiency and optimisation products such as Hive, fuel switching technologies such as electric vehicle charging solutions, and cleaner energy supply with green tariffs and a cleaner fuel mix. Reducing the carbon intensity of its customers by 18% from 2019 (the annual emissions of 1.7mn UK households), Centrica is on track to achieve its milestone of 28% carbon intensity reduction by 2030. “The world of energy is evolving rapidly: it is becoming decentralised as distributed
“ The world of energy is evolving rapidly: it is becoming decentralised as distributed technology supports decarbonisation” CENTRICA
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“ Our company is founded on a proud 200-year heritage of serving customers in homes and businesses” CENTRICA technology supports decarbonisation; choice and power are shifting to the customer, and technology and digitalisation are accelerating the pace of change. We are responding to these trends by focusing investment on our customer-facing businesses,” says Centrica. The Business Moving away from being asset-based to focusing on services and solutions, Centrica reports that as a business, it emits more than 80% less carbon than it did a decade ago. “Recognising the urgent need to make net-zero a reality, we have accelerated our commitment to being a net-zero business by 2045, five years ahead of our previous target
and the UK deadline. We are also committed to helping our customers be net-zero by 2050,” adds Centrica. Wanting to continue its leading example and driving emissions out of its business, Centrica is committed to completing its strategic transformation to exit interest in exploration and production, converting its fleet to electric, and expanding its energy efficiency, onsite generation and green tariffs. “Towards our net-zero target, our total carbon emissions decreased by 18% from 2019, with savings largely linked to less upstream generation and production. As a result, we're on track against our milestone goal to deliver 40% carbon reduction by 2034,” states Centrica. By the end of 2020, Centrica proudly reported a CDP A-Grade as a world leader for action and disclosure on climate change, an 18% reduction in its carbon emissions, 10, 548 days volunteered since 2019 and featured in The Times Top 50 Employers for Women. “As well as providing a wide range of energy efficiency and optimisation solutions – like Hive, smart meters and boiler upgrades – we’re also providing a low carbon energy supply with 100% zerocarbon electricity for all UK customers,” say Centrica, who adds that “we’re continuing to find solutions to some of the key challenges related to decarbonisation. We’re launching a trial to test the role heat pumps could play in cutting emissions from household heating in an affordable way. And, we’re working in partnership to build the world’s first net-zero industrial cluster in the UK by 2040, using ground-breaking hydrogen, carbon capture and storage technology.”
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Centrica plc
Millstream, Maidenhead Road, Windsor, Berkshire SL4 5GD T 01753 494000 centrica.com
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