The Purpose Coalition & Centrica: Breaking Down Barriers Impact Report

Centrica Breaking Down Barriers Impact Report

Forewords

0.1 Rt Hon Justine Greening

Chair of the Purpose Coalition and Former Secretary of State for Education

Transforming the energy landscape is crucial to expanding access to opportunity and is key to delivering the change our country needs. It supports a just transition to net zero, ensuring no one is left behind.

The Purpose Coalition, alongside its partners, is committed to this goal, particularly in light of the societal and economic uncertainties brought on by the pandemic and geopolitical unrest. Energy insecurity has been a significant challenge, exacerbating the cost-of-living crisis that continues to threaten many.

The energy sector, therefore, has a pivotal role in shaping a fairer future. This report highlights how Centrica, one of our leading energy companies, is leveraging its extensive reach and visibility to create a positive social impact for its customers, employees, and communities. Having worked closely with the Purpose Coalition for several years, Centrica has already produced an initial report assessing its social impact and identifying areas for further improvement. The company understands the immense potential businesses have to be a force for good and is committed to deepening its impact across the 15 Purpose Goals.

This report reflects the outcomes of that commitment. It demonstrates how Centrica is using its leadership position to focus on supporting the most deprived areas and influencing the broader equality of opportunity agenda. By developing greener technologies, Centrica is enabling a greener, fairer and more sustainable transition. Its apprenticeship and training programmes, coupled with a workforce

that mirrors the diversity of the communities it serves, are essential for driving economic growth and enhancing social mobility across the country. The report sets a benchmark for other businesses looking to challenge themselves to enhance their social impact and rigorously measure their progress.

As we move forward, the collaboration between the Purpose Coalition’s Breaking Down Barriers Commission and the Government is more critical than ever. We are working hand in hand with policymakers to ensure that the private sector is fully integrated into national efforts to create a society where opportunity is not just a promise but a reality for everyone.

Centrica’s work, as highlighted in this report, underscores the potential for businesses to act as true forces for good. By focusing on sustainable and inclusive growth, they are helping to build a future where everyone, regardless of their background, has the chance to succeed. This report is both a reflection of the achievements to date and a call to action for continued collaboration and innovation as we strive to create a fairer, more inclusive Britain.

0.2 Nick Forbes CBE, Chair of the Breaking Down Barriers Commission and Former Member of Keir Starmer’s Shadow Cabinet as Labour Leader of the Local Government Association

This report marks a significant step forward in the ongoing efforts of the Breaking Down Barriers Commission to dismantle the obstacles that limit opportunities for so many in our society. It underscores the crucial role that businesses can and must play in creating a more equitable and inclusive UK, in alignment with the Government’s Fifth Mission – breaking down the barriers to opportunity.

The Breaking Down Barriers Commission, as part of the Purpose Coalition, has long advocated that businesses are not merely economic entities but powerful drivers of social change. Centrica’s commitment to this cause is evident in its strategic efforts to align with the Purpose Goals, particularly in breaking down barriers to opportunity.

The energy sector has faced immense challenges since the publication of Centrica’s first report, with energy concerns remaining central to both the economy and the broader well-being of the country. Centrica’s continued focus on social impact and value is clearly reflected in this report, which highlights its progress in widening access to opportunity.

Centrica’s report exemplifies how businesses can actively contribute to creating a more inclusive society by dismantling barriers that limit opportunities. The insights and strategies outlined here not only showcase Centrica’s leadership but also serve as a practical blueprint for other organisations. The Breaking Down Barriers Commission aims to provide resources and guidance for companies committed to fostering greater equality of opportunity, and Centrica’s approach stands as a compelling model for others to follow.

“Centrica’s continued focus on social impact and value is clearly reflected in this report, which highlights its progress in widening access to opportunity.”

0.2 Gary Booker, Chief Customer Officer, Centrica

Two years ago, in partnership with the Purpose Coalition, we published our first Impact Report mapping our activity in the UK against the Purpose Goals, marking a significant step in Centrica’s commitment to boosting social mobility across the UK. That report set out our vision and the concrete steps we were taking to ensure that our business continued be a driving force for positive social change. We focused on key areas including education, open recruitment, health and wellbeing, and harnessing the energy transition. We had a clear objective to break down barriers and create opportunities for everyone, regardless of their background. While there is still a long way to go, this report and our continued partnership with the Purpose Coalition is evidence of our commitment.

Since then, the world has faced unprecedented challenges. The turbulence we’ve all experienced from the ongoing impacts of the pandemic to geopolitical tensions has highlighted the importance of energy security and sustainability. In the face of these challenges, Centrica has not only maintained its commitment to social impact but has intensified its efforts. Our focus remains on supporting our customers, colleagues, and communities through these difficult times while driving forward the transition to a greener and fairer future.

This new report, two years on, reflects the progress we’ve made and the lessons we’ve learned along the way. It showcases how Centrica has continued to align its operations with the Purpose Goals, expanding our impact across even more areas. From increasing our apprenticeship intake and developing new green technologies to enhancing our support for the most vulnerable in society,

we have sought to deepen our contribution to breaking down barriers to opportunity.

At Centrica, we believe that businesses have a responsibility to act as forces for good. The initiatives and strategies detailed in this report not only demonstrate our ongoing commitment but also provide a roadmap for how other organisations can similarly rise to the challenge. By working together across industries, with government, and within our communities we can ensure that the transition to net zero is both just and inclusive, leaving no one behind.

I am proud of what we have achieved so far, but I am even more motivated by what lies ahead. As we continue this journey, I look forward to building on the foundations we have laid, pushing the boundaries of what is possible, and, most importantly, making a real difference to the lives of those we serve. This report provides an overview to our ongoing efforts, and I invite you to explore how Centrica is helping to shape a greener, fairer future for all.

1. Introduction

1.1. An

Introduction to Centrica

Centrica is a leading energy services and solutions company with a history of serving both residential and business customers for over two centuries, managing businesses across the energy value chain. Some of Centrica’s most recognised household brands include British Gas, Hive and Bord Gáis.

It is dedicated to creating a greener, fairer future and is taking significant steps to reduce emissions, both for its customers, within its own operations, and proactively across Britain - aiming to be a net zero business by 2045, and helping its customers reach net zero by 2050.

The company has continued to innovate, widening its range of services, which include not only traditional boiler maintenance and repair but also cutting-edge work in areas such as electric vehicle (EV) charge point installations, smart meters, hydrogen energy development, heat pumps, and solar and battery storage projects, all of which will be critical if Britain is to meet its clean energy and energy security ambitions.

It is also innovating in its approach to its colleagues.

With a significant UK workforce of over 21,000 in the UK alone, including 7,000 engineers and technicians, Centrica is at the forefront of the energy transition, driving forward initiatives that contribute to a sustainable future.

Critically, it also recognises that its employees are the core of its success and it upholds one of the UK’s leading colleague offerings, always striving to enhance this through open feedback and inclusion.

During a period of significant energy market volatility, Centrica has also prioritised its customers and communities across Britain. The company has created an extensive range of support mechanisms and flexible tools, including building on the comprehensive successful work of the independent charity - the British Gas Energy Trust –which, whilst providing support and advice to those most in need, is also developing policies and ideas to make the country more financially secure.

As part of its dedication to social impact and breaking down the barriers to opportunity for its customers, its colleagues, and the communities it serves, Centrica has been a leading member of the Purpose Coalition since 2021.

Its first Impact Report, launched November 2022, focused on tracking and assessing its impact across several of the most relevant Purpose Goals:

Since the first Impact Report, Centrica has progressed significantly against these Purpose Goals, which will be demonstrated within Section 2 of this report.

The Purpose Coalition and Centrica are also widening the tracking and assessment of looking at the organisation’s approach to five more Purpose Goals, further illustrating the development of its impact:

“Since the first Impact Report, Centrica has progressed significantly against these

1.2. Breaking Down Britain’s Barriers

The Purpose Coalition measures organisations against a set of sector-relevant social impact criteria. The Purpose Goals outline 15 interconnected impact barriers to opportunity. By drawing on expertise provided by academia and business, the Goals are designed to specifically address some of the unique challenges facing the UK.

The Coalition’s cross-party work brings together the UK’s most innovative leaders, parliamentarians and businesses to improve, share best practice, and develop solutions for improving the role that organisations can play for their customers, colleagues and communities by breaking down barriers to opportunity.

The Purpose Coalition is chaired by Rt Hon Justine Greening, the UK’s former Secretary of State for Education, Transport and International Development. The cross-party team includes Nick Forbes CBE, who recently served in Sir Keir Starmer’s Shadow Cabinet and leads the Purpose Coalition’s work with the Labour Party, Rt Hon Anne Milton, former Minister for Apprenticeships and a Minister in the Department for Health and Social Care and Lord Walney, former No 10 Advisor to Gordon Brown and Labour Member of Parliament for Barrow and Furness.

The Goals were designed following Justine Greening’s experience - as Secretary of State for International Development - leading the UK’s delegation to the convention of the United Nations (UN) that established the 2015 UN Sustainable Development Goals (SDGs). The Purpose Goals apply the SDGs in a UK context.

The SDGs as interlinked goals emphasise the interdependent environmental, social, and economic aspects of development and centralise the role of sustainability. At the time, Justine recognised how transformative a common set of accessible but ambitious goals could be in galvanising action to effect change.

After leaving Government in 2019, Justine established the Purpose Coalition and Social Mobility Pledge with the intention of galvanising UK economic and social actors to improve social mobility in the UK. The Purpose Goals focus on key life stages and highlight the main issues that need to be resolved to break down barriers to opportunity in the UK. The Goals are intended to guide ambition, provoke action, and measure progress.

“The Purpose Coalition measures organisations against a set of sector-relevant social impact criteria. The Purpose Goals outline 15 interconnected impact barriers to opportunity. ”

1.3. Centrica’s role in Breaking Down Barriers to Opportunity

Centrica is uniquely positioned among energy companies in the UK and Ireland, operating across the entire energy value chain through a combination of distinct yet complementary businesses.

At the heart of Centrica’s mission is its Purpose: “energising a greener, fairer future.” This purpose drives every aspect of its operations and reflects a commitment to breaking down barriers to opportunity that exist across Britain.

One of the key areas where Centrica has made a significant contribution is in improving energy security.

In recent years, the importance of securing energy supply has grown, and Centrica has risen to the challenge, playing a leading role in ensuring reliable energy provision for the UK and Ireland. The re-opening of the Rough storage field, has improved the UK’s gas storage capacity, and reduced prices for consumers during the height of the energy crisis, the company’s strategic investments in Liquified Natural Gas (LNG) agreements have been crucial in safeguarding energy supplies. These efforts not only enhance energy security but also demonstrate Centrica’s dedication to supporting communities and maintaining affordability during the energy transition.

Centrica’s commitment to a greener future is further exemplified by its Green Focused Investment Strategy.

This ambitious plan, unveiled in 2023, outlines Centrica’s intention to invest up to £4 billion until 2028 in areas such as security of supply, renewable energy generation, and customerfocused solutions.

Through these investments, Centrica aims to empower customers by providing them with the tools and knowledge to better manage their energy usage, thus reducing costs and promoting sustainable practices. The business’ focus on green electricity generation, including solar, and green hydrogen, aligns with its longterm goal of supporting the energy transition and achieving net zero. Beyond its operational achievements, Centrica places a strong emphasis on social impact.

Its profits are reinvested with a purpose, allowing Centrica to contribute significantly to society. In 2023, Centrica encouraged its employees to engage with their local communities, resulting in over 7,200 volunteer days and £4 million donated to charitable causes. Centrica has also committed substantial resources to support customers during the energy crisis, with £140 million voluntarily donated to provide support with energy bills, which is more than any other energy company in the UK.

Through major partnerships with organisations like Team GB, ParalympicsGB, and Scottish Rugby, Centrica is also making a lasting impact on grassroots sports across the UK, showcasing how the journey towards net zero can bring opportunities to communities and facilities nationwide.

Centrica’s commitment to its purpose is not just about achieving business success - it’s about ensuring that this success translates into broader social impact. Through a focus on a greener, fairer future, Centrica is breaking down barriers to opportunity, supporting its employees, and delivering tangible benefits to society.

Centrica’s ‘People & Planet Plan’ is centred around five Group-wide goals that are designed to accelerate action on critical issues for both the business and society, areas where Centrica is uniquely positioned to make a significant impact. These timebound goals include achieving net zero, fostering a diverse and inclusive workforce essential for realising this target, and contributing positively to the communities where Centrica operates.

In 2023, Centrica made substantial progress towards most of these goals, although some targets were behind schedule. This is partly due to the complex nature of transformative initiatives and the interdependence with Government policy.

Centrica’s approach aligns closely with the Purpose Goals outlined in its 2022 Impact Report, which places people at the heart of its commitment to breaking down barriers to opportunity at all levels. These Purpose Goals are integral to the ‘People & Planet Plan’, reinforcing the company’s commitment to energise a greener, fairer future.

By continuing to work closely with key stakeholders including colleagues, communities, and government bodies Centrica is confident in regaining momentum and meeting its goals in the years ahead. Through these efforts, Centrica aims to fulfil its purpose while also positively contributing to the United Nations Sustainable Development Goals (SDGs).

“Through these efforts, Centrica aims to fulfil its purpose while also positively contributing to the United Nations Sustainable Development Goals (SDGs). ”

2. Mapping Centrica’s Activity Against the Purpose Goals

2.1.1. Prioritising Apprenticeships

In the last Impact Report, Centrica’s People & Planet Plan goal to recruit 3,500 apprentices by 2030 was outlined, as well as providing career development opportunities for underrepresented groups through this pathway.

2.1. Goal 3: Positive Destinations Post 16+

Ensuring that every young person has the opportunity to choose the right path for them post 16 is vital in breaking down barriers to opportunity.

Whether they wish to pursue higher education, training or employment, supporting young people to make the right choices in order to fulfil their potential is an important aspect of social mobility.

As one of the UK’s largest employers, Centrica supports the ideals of Goal 3 through its focus on apprenticeships, providing career pathways and opportunities to thousands of people across all backgrounds.

In this time, Centrica has made significant strides in its People & Planet Plan apprenticeship pledge, recruiting 1,198 apprentices between 2021 and 2023. This broad initiative is central to the creation of high-quality jobs that will support the company to deliver an excellent service to its customers, while creating opportunities and achieving its internal net zero targets.

Recognising the importance of inclusion across its talent pipeline, through the People & Planet Plan, Centrica underpinned this as a focus for the pledge. While the organisation has faced challenges in reaching this goal through its apprenticeship programme to date, the proportion of women taking part in its Smart Energy Apprenticeship Scheme – 14% in 2023 – is significantly higher than the national average of 0.2% for female gas engineers.

Throughout 2024, Centrica has intensified its recruitment, marketing, and volunteering campaigns to inspire more women and other underrepresented groups to pursue careers in the energy sector.

It is also set to increase its apprenticeship intake in the years ahead to reach the goal, remaining committed to its apprenticeship pledge and the wider People & Planet Plan, with a clear focus on creating a diverse and skilled workforce.

2.2. Goal 5: Open Recruitment

Companies and their employees thrive when they are made up of a diverse workforce, drawing upon the skills and experiences of people from all backgrounds.

By ensuring that opportunities to progress at the company are open to all, Centrica contributes strongly to Goal 5 and continues to work towards its ambitious inclusivity targets.

2.2.1. Delivering against Key Targets

In the previous report, Centrica’s recruitment practices and focus on achieving an inclusive and diverse workforce was outlined. It has made significant progress since the publishing of this first report and is breaking down the barriers to opportunity at this critical stage through a proactive approach. As outlined in the 2022 report, by 2030 Centrica aims to achieve ambitious diversity targets across the company and among its senior leaders, with goals including 48% of roles held by women, 18% by individuals from ethnically diverse backgrounds, 20% by people with disabilities, 3% by LGBTQ+ individuals, and 4% by ex-service personnel.

In 2023, Centrica’s progress towards these goals showed promising trends. Across the business, women currently make up 30% of the workforce, with this figure rising to 41% when excluding field engineers. Among senior leaders, 32% are women, reflecting steady progress towards the 2030 target. In terms of ethnic diversity, 15% of the overall workforce and 9% of senior leaders come from ethnically diverse backgrounds. For disability representation, 3% of the workforce

identifies as having a disability, with a slight decrease to 2% among senior leaders, with the same figures also aligning with LGBTQ+ representation. Ex-service personnel make up 2% of the workforce.

Whilst improvements of up to 4% have been achieved against each goal area, Centrica acknowledges that they need to dig deeper to drive further systemic change that is needed to achieve the 2030 goal through continued focus on embedding and evolving Diversity, Equity and Inclusion (DE&I) Positive Action Plans across the business.

2.2.2. Inclusive Pathways

Centrica’s commitment to inclusive recruitment is supported by its award-winning Graduate & Summer Placement Programme and the Ex-Forces Pathway programme, and the organisation has made progress since the previous report in fostering inclusive pathways.

These initiatives are central to Centrica’s People Strategy and its vision for a Workforce for the Future. The business places a strong emphasis on career mobility and internal talent development, supported by a future-focused Talent Framework and Talent Review approach. This framework equips people managers with the tools they need to understand the current strengths of their teams and to develop the skills required for future success.

To meet its net-zero commitments and continue serving its customers with up-to-date skills and technologies, Centrica is investing significantly in its customer-facing teams and training academies. This includes developing new apprenticeship pathways and building purpose-built training locations. These efforts ensure that Centrica’s workforce is not only diverse and inclusive but also equipped with the skills necessary to drive the company’s future growth and sustainability.

Goal 8: Good Health & Wellbeing

Centrica is making substantial contributions to the Purpose Coalition’s Goal 8: Good Health & Wellbeing, particularly through its comprehensive and evolving approach to colleague wellbeing. Since 2015, Centrica has placed a strong emphasis on the holistic health, safety, and wellbeing of its 21,000-strong workforce, recognising that its colleagues are the “beating heart” of the business. This commitment has been continuously reinforced since the inaugural Impact Report in 2022, with significant advancements made in supporting the physical, mental, and financial wellbeing of employees.

Key initiatives include the creation of the Colleague Support Foundation, launched in July 2023, which has already provided financial assistance to over 100 employees, distributing around £130,000 to help colleagues during times of personal crisis, such as covering funeral expenses or helping those faced with eviction. This fund exemplifies Centrica’s commitment to supporting its employees’ wellbeing in a tangible and impactful way.

Centrica has ensured that its employees share in the company’s success, directly linking their wellbeing to the business’s performance. This not only fosters a sense of shared purpose and motivation but also contributes to the financial wellbeing of its workforce, further aligning with the goals of the Purpose Coalition.

2.3.1. Healthcare Plan

Centrica has made significant strides in its leading Healthcare Plan over recent years, ensuring that it provides comprehensive and inclusive support for its colleagues and their families.

Initially, healthcare coverage was limited to senior leadership, however recognising the inequality in this approach, Centrica expanded its Healthcare Plan to include all employees and their dependents. As a result, nearly 20,000 colleagues and 3,500 dependents are now enrolled in the plan, marking a substantial increase since the first Impact Report, where just over 16,000 employees and 3,000 dependents were enrolled on healthcare plan.

This unique Healthcare Plan is sector-leading across the UK, particularly in its promotion of ill-health prevention and its flexibility in adapting to the changing needs of Centrica’s workforce. With an investment of around £8 million in treatments, including significant procedures such as hip and knee replacements, the plan has had a direct and meaningful impact on the health and wellbeing of its members.

Centrica stands out as one of the few organisations in the UK offering truly any-time benefits through its Benefits Plus platform. This platform, alongside a wide range of education materials and the innovative Wellbeing on Wheels service - where British Gas vans are repurposed to provide functional health assessmentsdemonstrates Centrica’s proactive approach to employee health. These health assessments can then be used to develop personalised plans to improve the wellbeing of colleagues.

Centrica’s commitment to health, safety, and wellbeing is underpinned across all of its operations.

“Centrica’s comprehensive Healthcare Plan and its ongoing developments illustrate its dedication to supporting the health and wellbeing of its colleagues”

Through offering education, tools, and resources, Centrica fosters a healthier, happier workforce, which in turn contributes to a more prosperous workplace. The Healthcare Plan, with its extensive range of benefits - including nutritional advice, physical health, emotional wellbeing support, and specific initiatives like menopause assistanceprovides peace of mind to colleagues and their families.

Centrica also raises awareness of often overlooked or taboo health issues through its proactive health programmes. The business has hosted a number of events on topics including the menopause, men’s mental health, and suicide prevention, attended by thousands of colleagues, experts, and GPs. These events not only provide practical support but also drive future health action plans based on ongoing reporting and analysis of health metrics.

Centrica’s comprehensive Healthcare Plan and its ongoing developments illustrate its dedication to supporting the health and wellbeing of its colleagues, ensuring that they, and their loved ones, receive the care and attention they need in both their professional and personal lives.

2.3.2. Leadership on the Menopause and Fertility Support

Feedback and insights from employees are integral to the continuous improvement of the Healthcare Plan, and to Centrica’s wider health and wellbeing colleague offering. Through the Peakon platform, Centrica’s wellbeing team receives 3,500 comments each quarter, which inform ongoing enhancements to employee benefits and health services.

As a result, one of the major developments since the 2022 Impact Report has been the organisation’s leadership and deepening of its work on menopause and fertility support for staff, and their families, through the Healthcare Plan.

Acknowledging the importance of these oftenoverlooked aspects of employee wellbeing, Centrica in October 2021 introduced comprehensive menopause guidelines to its 21,000 colleagues. Initially, this was aimed to raise awareness and encourage open conversations about what is still unfortunately a workplace taboo.

Since then, Centrica has supported a significant number of colleagues and their families through menopause support through the Healthcare Plan where colleagues can consult directly with a GP - reducing the burden on the NHS and ensuring

tailored support through various tests and assessments. On top of this, it hosts webinars attended by over 300 people as a platform for open education and discussion.

Building on this comprehensive package, most recently, Centrica has also introduced the Pathway to Parenthood programme –available to all employees as part of the Healthcare Plan. This offers financial support for fertility treatments including IUI, IVF, and egg or sperm donation and storage up to £15,000.

Recognising the emotional and physical demands of fertility treatments, Centrica provides five days of leave per year for employees undergoing fertility treatment, adoption, or surrogacy. Since its launch, 62 colleagues and their families have already benefitted from this support.

Through these initiatives, Centrica is not only addressing the specific needs of colleagues going through menopause or fertility challenges but also setting a benchmark in the UK for comprehensive employee support. Its proactive approach ensures that its workforce feels valued and supported, helping to create a healthier, happier, and more inclusive workplace.

2.3.3. Partnering with Team GB and Paralympics GB

As part of its focus on wellbeing and inclusion, Centrica established a strategic partnership with Team GB and Paralympics GB, as part of the 2024 Summer Olympics in Paris.

Through the partnership, Centrica introduced an innovative initiative using the ‘GoJoe’ app - a social interaction and fitness platform designed to be inclusive and accessible to all employees.

Unlike traditional step challenges, the GoJoe app’s three-week activity challenge encourages participation in a wide range of over 45 sports and activities, making it suitable for everyone, regardless of fitness level. This initiative was part of Centrica’s broader Road to Paris campaign, which seeks to inspire colleagues to channel their inner athlete in celebration of the Olympic and Paralympic Games.

Hosted by Paralympic champion Ellie Simmonds, the challenge has brought colleagues together in teams of up to 20, promoting a sense of community and teamwork. The goal being not just about accumulating points to win, but about supporting one another to stay active, connected, and engaged. This emphasis on collective effort and wellbeing aligns with Centrica’s broader health and wellbeing strategy.

On top of the virtual challenge, Centrica conduct a series of roadshow events across its offices. These events serve as a platform to raise awareness about the various health benefits available to employees, including the Healthcare Plan, and to encourage them to make use of these resources.

The roadshows also provide an opportunity for colleagues to come together in person, reinforcing the importance of staying active and connected, especially in a work environment where wellbeing is a top priority.

2.4.4. Employee Recognition

Centrica has implemented a comprehensive Employee Recognition platform designed to celebrate and reward the contributions of its employees across the organisation.

This platform is closely aligned with Centrica’s core values: Care, Courage, Collaboration, Delivery, and Agility, and includes a specific focus on wellbeing and inclusion.

Through this initiative, Centrica empowers line managers to allocate up to 10,000 points per quarter to their team members, with 1,000 points equivalent to £10 in vouchers. These points serve as tangible recognition of the employees’ efforts, allowing them to redeem rewards while simultaneously reinforcing the company’s commitment to valuing its people.

As well as recognising individual contributions, Centrica’s Recognition Tool also plays a crucial role in internal engagement. Through participating in various activities and demonstrating behaviours that align with Centrica’s values, employees can earn points that are converted into monetary rewards. This system not only boosts morale but also ensures that managers are aware of their team members’ achievements, which is beneficial for both professional development and overall job satisfaction.

Centrica’s focus on recognising and rewarding its employees is a critical aspect of the business’ wider commitment to creating a positive and inclusive work environment where everyone’s contributions are acknowledged and appreciated.

“Through the partnership, Centrica introduced an innovative initiative using the ‘GoJoe’ app”

2.3. Goal 13: Harnessing the Energy Transition and Net zero

Centrica recognises that high energy prices, growing climate consciousness, and supportive government incentives are driving increased interest in green technologies for homes and businesses. In response to these trends, Centrica is actively contributing to the Goal 13 - Harnessing the Energy Transition and Net Zero, by providing innovative solutions that support customers on their journey to sustainability.

Centrica installs, maintains, and optimises a range of devices in customer homes, such as Hive thermostats, EV chargers, solar panels, and heat pumps, which are crucial in helping individuals and businesses transition towards net zero. Additionally, Centrica offers a Home Health Check for residential customers, which assists them in understanding the energy dynamics of their homes and identifying potential pathways to increase their energy efficiency achieve net zero emissions.

Climate change and the need to decarbonise remain central concerns for Centrica’s customers and key stakeholders across society. The impacts of climate change have become increasingly evident over recent years, with hotter summers, extended droughts, unprecedented flooding, and extreme weather occurring more frequently. As a leading energy company in the UK and Ireland, Centrica remains focused on driving the transition to net zero, in line with its broader strategy to support sustainable development and meet the Purpose Coalition’s 13th goal.

Through these initiatives, Centrica is not only addressing immediate energy concerns but is also playing a pivotal role in the energy transition, aligning its actions with its long-term strategy to achieve a greener, fairer future.

2.4.1. Leading the UK’s Energy Transition through Green Investment

Centrica is leading the UK’s energy transition, driving forward with significant green investments aimed at being a net zero business by 2045.

Central to this ambition is an extensive investment programme that commits over 50% of total capital expenditure to green taxonomy investments through 2028. This strategic shift is part of Centrica’s wider commitment to transforming the energy landscape, ensuring that both the organisation and its customers can meet net zero targets by 2050.

To facilitate this transition, Centrica has established a new business dedicated to providing comprehensive green home services for residential customers. This initiative, coupled with partnerships to explore decarbonisation opportunities for existing power generation and storage assets, highlights the company’s proactive approach to reducing carbon emissions and fostering sustainable energy solutions.

A key aspect of Centrica’s strategy is the optimisation of energy flows, both at the grid level and within individual homes. Through leveraging advanced trading and optimisation technologies, Centrica is improving the value of renewable energy assets and enabling customers to reduce the cost and carbon footprint of household energy devices, such as electric vehicles and home batteries. Its investment in batteries and gas peakers is designed to meet the immediate flexibility needs of the grid, while also exploring innovative energy storage solutions to support the future energy system.

In response to the evolving energy market, Centrica has significantly increased its investment in renewable and low-carbon energy sources. The expansion of gas storage capacity at the Rough facility, alongside partnerships with US and Norwegian partners to secure gas supplies, demonstrates Centrica’s commitment to ensuring energy security while advancing towards a greener future.

Looking ahead, Centrica plans to invest up to £600 million to £800 million annually until at least 2028, focusing on flexible and renewable power assets, smart meter technology, and customers. This investment trajectory marks a substantial increase from previous years, with at least 50% of capital expenditure planned to go into green taxonomy eligible projects.

In 2023 alone, Centrica made notable progress in its green investment strategy, with a net investment of £114 million in solar, battery, and gas-peaking projects. This includes the commencement of commercial operations at the Codford solar farm and the acquisition of the Roundponds solar farm, bringing the company’s operational capacity to 132MW. These efforts contributed to a 21% reduction in emissions from the 2019 base year, further solidifying Centrica’s position as a leader in the UK’s transition to a net zero future.

2.4.2. Pioneering British Hydrogen Storage and Production

In Centrica’s first Impact Report, the organisation’s role in producing and storing hydrogen as a clean energy source was outlined. Since then, the organisation has made significant strides in this area, as part of its wider focus on increasing the UK’s energy security and resilience.

Centrica is playing a central role in driving forward the UK’s hydrogen storage and production capabilities, a critical component of the nation’s strategy to achieve a net zero power grid by 2030. In the context of global energy market instability, hydrogen storage is increasingly important for maintaining stable energy prices and protecting households and communities from market volatility. Centrica’s efforts are central to bolstering the UK’s energy security and contributing to the decarbonisation of key sectors like aviation and transportation, which are among the largest emitters.

Centrica has been closely collaborating with the Department for Energy Security and Net Zero to advocate for the benefits of hydrogen storage, as detailed in its first Impact Report in 2022.

A central part of this work is the aim to repurpose Centrica’s Rough gas field to accommodate up to half of the UK’s projected hydrogen storage needs. This project alone – subject to securing a regulatory model for this investment - is estimated to generate over 2,000 jobs, marking a significant contribution to both the economy and the energy transition.

On top of Rough, Centrica is also advancing the development of other hydrogen storage facilities, including Salt Caverns, while Rough is being fully prepared for its potential new role. These efforts are part of Centrica’s broader commitment to enhancing the UK’s energy infrastructure and ensuring a smooth transition to a low-carbon future.

Centrica has made progress against its Climate Transition Plan, as outlined in the first Impact Report, reflecting its commitment to achieving net zero by 2045 and assisting its customers in reaching net zero by 2050. Critically, the organisation is currently ahead of its targets and has made sector-leading progress since 2022, which it will be reflecting on in an updated Plan in 2025.

Central to these plans is the transformation of the Easington gas terminal into a major green and blue hydrogen production hub. The H2H Easington project is set to deliver up to 1.2GW of blue hydrogen and 1GW of green hydrogen by the end of the decade, with further expansion in the 2030s. This ambitious project includes a proposal for a green hydrogen electrolyser, planned to be operational by 2029, which is expected to reduce the terminal’s CO2 emissions by 100,000 tonnes annually.

The H2H Easington project will not only support sustainable aviation fuel production but also bring substantial economic benefits, including an estimated £1.5 billion in gross value added over 35 years and the creation of thousands of jobs.

More widely, the organisation is helping position the UK as a European leader in blue hydrogen production and storage. Blue hydrogen, produced primarily from natural gas through steam reforming, is a key transitional technology that allows the UK to reduce carbon emissions while scaling up green hydrogen capabilities.

“A key element of Centrica’s progress involves supporting customers in reducing their carbon footprint.”

2.4.3. Climate Transition Plan

Centrica has made progress against its Climate Transition Plan, as outlined in the first Impact Report, reflecting its commitment to achieving net zero by 2045 and assisting its customers in reaching net zero by 2050. Critically, the organisation is currently ahead of its targets and has made sector-leading progress since 2022.

The business reported a significant reduction in its greenhouse gas (GHG) emissions, cutting them by 21% against the 2019 base year. This marks a notable improvement from the 5% reduction achieved in 2022, largely driven by decreased emissions from the Whitegate power station and its gas production operations.

A key element of Centrica’s progress involves supporting customers in reducing their carbon footprint. In 2023, Centrica introduced a number of incentives to encourage the adoption of low-carbon technologies.

In 2023, Centrica’s efforts to decarbonise energy use resulted in a 10% reduction in the GHG intensity of the energy provided to customers, compared to 2019. This achievement is equivalent to cutting the annual emissions of more than 860,000 homes and was primarily driven by the increased zero-carbon content in Centrica’s electricity fuel mix, which rose to 80% from the UK national average of 55%.

Looking ahead, Centrica is committed to continuing its efforts to reduce emissions across its operations and to support the broader adoption of low-carbon energy among its customers. This includes securing up to 800MW of low-carbon and transition assets by 2025, such as solar power, battery storage, and flexible generation solutions. Through these initiatives, Centrica is dedicated to driving meaningful progress towards a sustainable, net zero future.

2.4.4. New Business and Net Zero

Centrica’s Net Zero business unit is playing a central role in focusing the organisations efforts on residential decarbonisation for its customers – with a significant focus on heat pumps, EV chargers, solar panels, and the Hive smart home service.

Through the Hive brand, the business is energising a greener, fairer future by providing homes with a low-carbon energy operating system. Through its range of eco-tech, Hive offers simple and affordable solutions that give customers choice and control.

The business is dedicated to delivering low-carbon eco-tech solutions to customers and communities across Britain and is integral to Centrica’s broader strategy of becoming a net zero business by 2045.

2.4.5. Heat Pumps

Since the launch of the first Impact Report, Centrica has made industry-leading progress towards the promotion and installation of heat pumps.

British Gas has launched the UK’s lowest heat pump rate to make this low-carbon technology even more accessible and encourage its adoption. This offer includes a special electricity rate of just 14p/ kWh for the first year, potentially saving households up to £450 compared to traditional gas heating.

British Gas has also introduced the Warm Home Promise, guaranteeing that customers will only have a heat pump installed if it can heat their homes as effectively as a traditional boiler. This initiative addresses a significant barrier to heat pump adoption, offering reassurance and a money-back guarantee if the system does not perform as expected.

Leveraging its large-scale engineering workforce, British Gas is ensuring the successful installation and maintenance of heat pumps. Engineers are being upskilled through Centrica’s centres of excellence across the UK, preparing them to deliver these new, greener solutions.

With competitive pricing, expert installation, and comprehensive support, British Gas is leading the way in making heat pump technology more widespread across the UK, contributing to the reduction in household carbon emissions.

“Engineers are being upskilled through Centrica’s centres of excellence across the UK, preparing them to deliver these new, greener solutions.”

2.4.6. EV Charging

Centrica is making significant strides in EV charging through its Hive brand, reflecting its commitment to decarbonising communities across the UK.

The Hive platform plays a central role in these efforts, offering customers smarter and more costeffective EV charging solutions. The Hive EV Charging integrates seamlessly with the Hive app, allowing users to control their charging schedules and access money-saving tariffs. This integration helps users manage their energy usage more efficiently, offering significant benefits such as reduced energy costs and a lower carbon footprint right from their homes.

In 2023, British Gas introduced the latest Hive EV charger, which is one of the smallest on the market and priced at £739 including VAT. This new charger is designed to offer an affordable home charging solution. It works in conjunction with a new British Gas EV tariff that provides off-peak electricity at under 10p per kWh between midnight and 5am. To incentivise adoption, British Gas offers £100 credit on the energy bill for customers switching to this EV tariff and £50 Hive vouchers with every charger order.

British Gas has also introduced a year of free home charging through its FreeCharge promotion for new customers purchasing a Hive EV charger. The Hive SmartCharge service, part of this offering, enables customers to charge their EVs during the cheapest times of the day, potentially saving up to £298 per year. By leveraging this service, customers can benefit from a 4p/kWh saving on their EV charging costs.

Despite not yet meeting its ambitious installation goals, Centrica is progressively increasing the number of EV chargers fitted outside homes each year. The business’ focus remains on making low-carbon technologies more accessible and convenient, encouraging the widespread adoption of electric vehicles and contributing to the UK’s net zero ambitions.

“This new addition will further empower customers to reduce their reliance on fossil fuels”

2.4.7. Hive Service

Hive, Centrica’s smart home service, has been a central part of the company’s efforts to help customers reduce energy consumption and carbon emissions.

Since its launch in 2013, Hive has become one of the UK’s most popular eco-tech brands, now present in over 2 million homes. The platform offers a range of smart technologies, including thermostats, lights, plugs, and now EV chargers, all designed to help customers manage their energy use more efficiently.

Hive’s recent innovations include the launch of the Hive Solar and Battery service, which allows customers to generate, store, and manage renewable energy at home. This new addition will further empower customers to reduce their reliance on fossil fuels, lower their energy bills, and contribute to a greener future. Hive’s technology provides customers with the information and tools they need to make informed energy decisions, tailored to their specific property and circumstances.

Through the efforts of Hive, Centrica is not only transforming its business model but also playing a crucial role in the UK’s energy transition. Through an underpinning focusing on scalable and mature low-carbon technologies like heat pumps, EV chargers, and smart home solutions, Centrica is helping its customers reduce their carbon intensity and move towards a sustainable future.

2.5. Goal 14: Achieve Equity through Diversity and Inclusion

All too often, leadership roles are given to those from the most privileged backgrounds, despite the fact that a diverse workforce which represents the wide range of backgrounds and experiences of our society is essential in helping companies to make better decisions based on a variety of voices.

Centrica’s commitment to promoting the ideals of Goal 14 by working to create a culture of inclusivity and diversity, including diversity of gender, ethnicity, sexuality, disability and other challenges that can lead to disadvantage, is an important part of their work to break down barriers to opportunity for all.

2.5.1. Achieving an Inclusive Culture through Data Capture and Employee Engagement

Centrica is deeply committed to fostering an inclusive culture and a diverse workforce, a commitment that is directly linked to its efforts in data capture and employee engagement.

The business has established a range of dialogue channels - including colleague networks, a Shadow Board, townhalls, and structured engagement with trade unions - to ensure that the voices of its employees are heard and valued.

These interactions are central to Centrica’s strategy of co-creating a fairer, safer, and more inclusive workplace, supported by comprehensive reward packages, training programmes, and Diversity, Equity, and Inclusion (DEI) Action Plans.

A key part of Centrica’s approach is its use of data capture to improve employee wellbeing. Through adopting a risk-based approach, it has uncovered significant health challenges among its workforce, such as physical inactivity, weight management, and overall wellbeing. This data-driven insight has led to targeted efforts to promote physical activity and improve both the physical and mental health of its employees.

Employee engagement at Centrica has seen continuous improvement, with the latest survey showing a score of 7.7 - just below the top quartile performance for the sector. This positive trend is a testament to Centrica’s ongoing efforts to create a more inclusive and supportive workplace, where employees feel connected to its purpose and strategy.

An engaged and motivated workforce is central to Centrica’s success, as employees are the driving force behind the company’s operations. This is reflected in Centrica’s Flexible First Policy which ensures all employees have the right to flexible working as is suited to their role. It acknowledges

“Centrica’s commitment to an inclusive culture and a diverse workforce goes beyond internal policies.”

the need for working and employment practices that fit to individuals’ varied and unique personal circumstances, with the organisation offering flexible hours, working from home opportunities, or part-time work.

The Shadow Board, introduced in 2021, is a key element of Centrica’s engagement strategy. Sponsored by the Centrica Leadership Team, this initiative brings together colleagues from various business units and functions to offer an on-theground perspective on strategic decisions. The Shadow Board has played a vital role in fostering closer relationships between the business’ networks and British Gas Field colleagues, ensuring that the diverse voices across all levels of the organisation are heard and acted upon.

Centrica’s commitment to an inclusive culture and a diverse workforce goes beyond internal policies. It recognises that diversity is essential for innovation and long-term success. Through its DEI Action Plans, based on its extensive employee feedback, Centrica is dedicated to breaking down barriers and ensuring equal opportunities for all employees.

Centrica is actively listening to its employees, using data to drive health and wellbeing initiatives, and continuously striving to improve engagement. Centrica is creating a workplace where everyone can thrive, contributing to the organisation’s overall success and resilience.

2.5.2. Breaking Down Pay Gaps

Centrica is actively working to break down pay gaps as part of its commitment to fair reward practices. The business ensures that all employees are paid at least the Real Living Wage in the UK and upholds principles of equal pay. Despite these efforts, Centrica recognises that pay gaps persist, largely driven by the concentration of men in higher-paid roles, such as engineering, and the predominance of women in valued but lower-paid positions, such as customer service.

In 2023, Centrica made progress in addressing these disparities, with its median gender pay gap improving by 9%, bringing it down to 14%. However, the company also observed a 1% increase in its median ethnicity pay gap, which now stands at 11%. This gap, like the gender pay gap, is influenced by the distribution of roles within the company.

Centrica is fully committed to reducing these pay gaps over time as part of its broader mission to transform its business, the energy sector, and society. It continues to focus on creating a more equitable workplace, where fair pay and opportunities are available to all employees, regardless of gender or ethnicity.

2.5.3. Achieving an Equitable Culture

Centrica is working to achieve and nurture an equitable culture rooted in its core values of Care, Delivery, Agility, Courage, and Collaboration.

These values form the foundation of the company’s organisational culture and are supported by ‘Our Code’, which outlines the fundamental standards for engagement and collaboration. This code, accessible on Centrica’s website, guides decision-making processes and reinforces the company’s commitment to integrity.

The Group Chief Executive plays a vital role in maintaining this culture by regularly updating the Board on employee engagement issues. One key tool in this process is the quarterly ‘Our Voice’ survey, which provides the Board with valuable insights into the company’s cultural landscape. This survey is complemented by feedback from various other sources, including dedicated colleague engagement meetings, which the Board finds particularly informative. These engagements allow Directors to connect directly with employees, offering a clearer understanding of the workforce’s perspectives and concerns.

Centrica’s Board is also focused on creating a culture that emphasises colleague development and digital enablement to ensure the company is future-ready. This commitment extends to diversity, equity, and inclusion, which remain top priorities. As of 31st December 2023, Centrica met the diversity targets outlined in both the FTSE Women Leaders Review and the Parker Review, achieving over 40% female representation on the Board and ensuring at least one Director comes from a minority ethnic background.

2.5.4. Colleague Networks

Since the release of its first Impact Report, Centrica has made significant progress in developing and expanding its Colleague Networks, which are crucial for fostering an inclusive and supportive workplace.

These networks address a range of areas, including gender, sexual orientation, family, community, disability, health and wellbeing, and ethnicity.

Currently, Centrica operates 14 distinct colleagueled networks, all of which are linked to the broader goals of wellbeing and equity, diversity, and inclusion. These networks are instrumental in driving positive change across the organisation, improving its culture, and creating a more inclusive environment where employees can thrive and be themselves.

One notable success is the Centrica Forces Network, which supports colleagues who have served in or are currently serving in the Armed Forces, as well as those interested in supporting this community. The network has been particularly successful with its Armed Forces pathway, which integrates talented veterans, reservists, and military spouses into the organisation. This network’s efforts have been recognised with a shortlist for Employee Network of the Year at the British Diversity Awards.

The Carers Network is another example of Centrica’s commitment in supporting its employees. Celebrating its 20th anniversary in 2024, this network connects colleagues who are carers, offering a platform to share experiences and resources. Centrica’s dedication to carers is reflected in its industry-leading Carers Leave Policy and its status as a Carer Confident Ambassador, a title it has maintained for years.

For colleagues with disabilities, Centrica has implemented extensive policies to ensure equal access to career development and opportunities. It actively promotes disability representation. The Diverse-ability network, launched in 2017, has expanded to include the neurodiversity network and The Fertility Sanctuary, providing essential support and feedback to improve inclusivity. Centrica’s commitment extends to partnering with The Valuable 500 initiative, which advocates for disability inclusion, and participating in its Generation Valuable mentoring programme to support the development of disabled talent.

Centrica is also a Level 2 Disability Confident Employer and collaborates with Scope and the Business Disability Forum to improve its approach to disability matters. Plans for 2024 include launching the Great Minds programme, aimed at normalising conversations around disability and furthering the company’s inclusivity efforts.

Since the first report, Centrica’s colleague networks have evolved significantly, playing a key role in fostering an equitable and inclusive workplace that reflects the diverse communities it serves.

3. Benchmarking Centrica’s Wider Activity Against the Purpose Goals

3.1. Goal 2: Successful School Years:

Centrica, through its British Gas brand, is actively supporting Purpose Goal 2: Successful School Years. This goal focuses on ensuring young people have a strong foundation during their school years, which is critical for their future success.

Centrica has implemented several initiatives that align with this goal. One significant effort is the “Get Set for Positive Energy” programme, run in partnership with Team GB and ParalympicsGB. This programme works directly with schools across the UK, aiming to inspire and engage young people in the importance of sustainability and energy awareness. Through this initiative, British Gas encourages students to think about the future of energy and their potential role in it, fostering early interest in STEM (Science,

Technology, Engineering, and Mathematics) careers, which are essential for the energy transition.

Additionally, Centrica’s extensive apprenticeship programme, which includes a strong focus on diversity and inclusion, supports young people post-school by providing them with career development opportunities. The company is committed to creating 3,500 apprenticeships by 2030, targeting underrepresented groups and encouraging more young people to consider careers in the energy sector.

These initiatives not only support educational outcomes but also contribute to broader social mobility goals by equipping young people with the skills and opportunities they need to succeed in a rapidly changing world.

3.2. Goal 6: Fair Career Progression

3.2.1. Ensuring Progression through Financial Security

Centrica is dedicated to enhancing the financial security and career progression of its colleagues through a range of supportive initiatives.

As an accredited member of the Living Wage Foundation, Centrica ensures that all UK employees receive at least the Real Living Wage. In response to the cost of living crisis, the business has prioritised raising the salaries of its lowest-paid staff, with increases ranging from 7.8% to 9.5%, compared to an average of 6% across the wider workforce. Salary levels for management are determined based on role, experience, performance, and competitive market rates, with fair standards negotiated in collaboration with trade unions.

In terms of pension and savings, Centrica offers a Defined Contribution Scheme with a generous employer contribution of 10% of salary, while the

Defined Benefit pension scheme remains open for future accrual for existing members. The Lifestyle Savings programme further supports employees with discounts on everyday shopping and large purchases.

The Recognition platform allows colleagues to recognise each other’s performance and values, with over 258,000 acknowledgements given in 2023. All UK employees can participate in the Share Incentive Plan, which offers the opportunity to purchase company shares and receive free matching shares if held for at least three years.

Employees also benefit from annual free shares via the Profit Share plan, with field and customer support staff participating in quarterly and annual performance-based incentives.

More widely, Centrica supports its employees with discounts on energy bills, new boilers, HomeCare cover, and energy-efficient products such as electric car charging points and solar and battery storage solutions. The company also promotes community involvement by allowing time off for volunteering and operating a Give As You Earn scheme for tax-efficient charitable donations. The Colleague Support Foundation provides additional assistance for those facing extreme financial difficulties when other support mechanisms have been exhausted.

“Salary levels for management are determined based on role, experience, performance, and competitive market rates, with fair standards negotiated in collaboration with trade unions.”

3.2.2. Learning and Development for all

Centrica is committed to advancing learning and development across its workforce through a range of strategic initiatives.

It is actively embedding DE&I Action Plans within each business unit, supported by dashboards that are reviewed quarterly to ensure continuous improvement and accountability. This approach aims to create a more inclusive environment where progress is monitored and driven at every level.

In its efforts to support learning and development, Centrica had rolled-out a new and engaging My Learning Campus platform that enables all colleagues to access a wide-range of on-demand training that help colleagues develop in their roles, whilst targeting talent development programmes to over 150 colleagues from under-represented groups in order to help drive more diversity in senior roles. This expansion is complemented by improved succession planning and diverse shortlisting practices, which are designed to strengthen the senior leadership team and ensure a broad range of perspectives within the company.

Centrica is also focused on inspiring more women to pursue careers in engineering through targeted apprenticeship programmes, aiming for 50% by 2030. This initiative is part of a broader strategy to increase diversity within the team and support the growth of talent in areas traditionally underrepresented by women.

“Centrica is dedicated to providing a broad range of training opportunities to support and develop its staff.”

3.2.3. Wide-ranging Training

Centrica is dedicated to providing a broad range of training opportunities to support and develop its staff, aiming to break down barriers to opportunity and foster an inclusive workplace.

One of the key initiatives is the rollout of the Courageous Conversations about Race training programme. This programme is designed to educate colleagues on racial issues and empower them to confidently challenge unacceptable behaviour. By doing so, it helps to create a more respectful and supportive work environment for everyone.

As well as addressing diversity and inclusion, Centrica is also prioritising mental health within its training programmes. It has significantly expanded its network of mental health first aiders, with the number increasing to over 100 thanks to a focused recruitment campaign.

On top of this, 55% of Centrica’s leaders have completed mental health training, reflecting a strong commitment to mental health awareness at all levels of the organisation.

Looking ahead, Centrica plans to make this mental health training more accessible to all employees in the coming year. This move is intended to further embed mental health awareness into the company culture, ensuring that support is available to everyone and that mental health challenges are addressed proactively.

Through these initiatives, Centrica is not only improving the skills and knowledge of its workforce but also working to eliminate barriers to opportunity, creating a more inclusive and supportive workplace for all employees.

3.3. Goal 7: Widening Access to Savings, Responsible Credit and Financial Inclusion

3.3.1. Supporting Customers

Throughout 2023, Centrica has made significant strides in supporting its customers amidst a challenging energy landscape. Despite market volatility and elevated energy prices, the business has actively worked to shield consumers from financial strain and provide essential support.

Centrica’s vertically integrated model has proven advantageous, allowing the business to capture value across its business and invest in a diversified asset portfolio. This strategic approach positions Centrica for growth and resilience, even in fluctuating market conditions.

To directly assist customers, Centrica has more than doubled its energy support fund to £140 million, marking it as the largest voluntary support package offered by an energy supplier in the UK and Ireland. Since 2022, £134 million of this fund has been allocated in the UK, including £60 million donated to the British Gas Energy Trust for cash support and community aid. £2 million has also been given to front-line charities like StepChange.

The remaining funds have been managed by British Gas to support residential and business customers, especially those on prepayment meters. This includes launching ‘You Pay: We Pay’, a first of its kind initiative where they 100% match energy payments made by customers who are in or facing fuel poverty.

Centrica has also introduced innovative energy solutions such as PeakSave, Hive SmartCharge, and the Dimplex Quantum Storage Heater tariff, which help customers access cheaper energy rates at specific times.

Recognising the need for comprehensive customer service, Centrica invested in training for engineers and customer service systems, and recruited an additional 700 front-line staff in the UK. These efforts have improved customer satisfaction, with the British Gas Services Engineer Net Promoter Score rising by seven points to +71, and the British Gas Energy Touchpoint NPS gaining four points to +17 in 2022-23.

It has also focused on improving its support channels, including providing discounts on energy bills and home services for employees. The company is also working closely with regulators and parliamentarians to ensure customer protection and effective communication of available support.

Centrica’s proactive measures and substantial investments in customer support demonstrate its commitment to helping individuals and communities navigate financial challenges while striving to improve service and engagement across its operations.

3.3.2. British Gas Energy Trust

The British Gas Energy Trust (BGET), including the Scottish Gas Energy Trust, is an independent charity organisation established in 2004 and funded solely by British Gas. Its primary mission is to alleviate the impacts of poverty, with a particular focus on fuel poverty.

Since its inception, BGET has been a significant force in providing financial assistance, having invested nearly £200 million to support more than 700,000 individuals and families in managing their energy costs and household budgets.

BGET employs several best practices to maximise its impact, including a holistic support approach that combines financial aid with practical services such as money and energy advice. This strategy ensures a high social return on investment (SROI) by addressing both immediate financial needs and helping individuals manage their energy usage and finances more effectively. The Trust also prioritises overall wellbeing, aiming to improve not only financial stability but also mental health and housing conditions.

A key aspect of BGET’s work involves local and tailored support that is available in areas of greatest social need. Through funding projects in partnership with frontline charities and communitybased organisations, the Trust ensures that aid is customised to meet the specific needs of diverse communities. This approach includes direct grants and support aimed at individuals facing various vulnerabilities, such as low-income households and those with serious health conditions.

In recent years, BGET has significantly increased its impact, with its funding and the number of people it helps having tripled since 2020. The Trust is now the only charity in the sector accessible to customers from all energy companies, and its work has provided valuable internal insights for British Gas, particularly regarding financial wellbeing and its effect on customers’ quality of life.

One of BGET’s notable initiatives is its partnership with Post Offices to run pop-up events across England, Scotland, and Wales. Since September 2023, these events have provided support and information to over 1,200 people, offering services like income maximisation, help with energy debt, and energy efficiency measures. Collaborating with local charities, the pop-ups address complex issues such as mental health and housing support, ensuring that help reaches those most in need.

To further improve its support, BGET has convened roundtable discussions across deprived communities in 2024 to mark its 20th anniversary. These events have brought together charities and key community stakeholders to explore effective interventions for alleviating fuel poverty and to share insights on addressing the complex challenges faced by various disadvantaged groups. Each roundtable focused on different themes, such as young people, carers, rural communities, and mental health, culminating in a final report to guide future funding and support strategies.

Overall, BGET’s comprehensive approach to financial inclusion and its commitment to breaking down barriers to opportunity reflect its dedication to improving the lives of individuals affected by fuel poverty and financial hardship.

3.3.3. The British Gas Energy Trust’s Social Return on Investment

Funded solely by British Gas, the Trust has been instrumental in addressing the increasing challenges posed by the cost-of-living crisis, the COVID-19 pandemic, and the war in Ukraine, all of which have driven a sharp rise in fuel poverty. In the financial year 2023/24 alone, BGET’s programmes generated £49 million in net benefits to society. The Funded Organisations programme, in particular, contributed £32 million in net benefits, underscoring the Trust’s critical role in addressing the growing fuel poverty crisis and improving overall wellbeing in the UK.

From April 2020 to March 2024, BGET generated £264 million in social value, significantly surpassing its operational costs of £61 million. For every £1 spent by the Trust, £5.50 in social value was created, including improvements in individual wellbeing and broader economic gains such as reduced NHS costs and increased tax revenues. The Trust’s efforts focus on those most in need, with a substantial proportion of its support directed towards the 20% most deprived areas in England, Scotland, and Wales.

Critical to the Trust’s impact is its holistic and tailored approach. BGET provides a range of services, including grants for fuel debt relief, emergency fuel vouchers, and funding for organisations that deliver money and energy advice. This integrated support addresses both immediate financial needs and long-term financial stability, resulting in a wide-ranging positive effect on beneficiaries’ lives. Notably, the Trust’s grants to advice organisations yield the highest social return on investment (SROI) at £6.50 per £1 spent, highlighting the importance of support available at the heart of communities.

The Trust also places emphasis on building the capacity of organisations and charities- from StepChange to Scope and more- that support

vulnerable households. Through improving the ability of these organisations to deliver vital services, BGET ensures that its impact extends beyond individual recipients to benefit communities as a whole.

BGET focuses its support on some of the most vulnerable individuals and communities across the UK. Primarily, the Trust targets low-income households, often among the poorest 15% of the population, with typical household incomes ranging between £18,000 and £20,400. A significant portion of beneficiaries live in deprived areas, with the Trust directing much of its funding to communities facing the highest levels of poverty.

Residents of social housing are also a key focus, making up 60% of direct grant recipients. This group is more likely to experience fuel poverty due to limited financial resources and energy inefficiency in their homes. BGET also supports individuals who face barriers to employment, including those dealing with long-term illness, caring responsibilities, or unemployment.

On top of this, the Trust is addressing the needs of ethnic minority households, who are often disproportionately affected by fuel poverty compared to national averages. By concentrating its efforts on these groups, BGET ensures that its resources reach those who are most in need, delivering impactful and targeted support to some of the most vulnerable communities in the UK.

BGET’s work is delivering a profound social impact, directly improving the financial stability and wellbeing of individuals by helping to grow life-long money and energy management skills that are crucial to building a more inclusive and sustainable future, while also contributing to wider benefits to communities across Britain. The Trust’s multifaceted strategy, which addresses the complex nature of fuel poverty, makes it a leader in reducing the effects of this growing issue across the UK.

3.4. Goal 9: Extending Enterprise

3.4.1.

Stakeholder Engagement

Centrica actively leverages stakeholder engagement to drive its enterprise growth and improve its operations across various dimensions. In 2023, it continued to foster robust relationships with its stakeholders through a systematic and strategic approach to engagement.

The Board of Centrica regularly engages with major shareholders to gather their perspectives on critical issues such as the company’s performance, strategic direction, and ESG issues. These interactions provide valuable feedback that helps shape the company’s strategies and align them with stakeholder expectations.

Centrica’s engagement strategy is subject to periodic reviews to ensure its effectiveness and relevance. This continuous improvement approach helps Centrica to not only respond to stakeholder concerns but also to proactively address emerging issues and opportunities, ultimately contributing to the company’s long-term success and sustainable growth.

Through collaborations with key organisations across the housing sector, British Gas is implementing cutting-edge energy solutions.

One significant part of these partnerships involves the installation of smart meters, which are supplied for 75-80% of new homes built in the UK. This widespread deployment illustrates British Gas’ role as a trusted partner in the energy sector. These smart meters provide valuable data on electricity usage patterns, enabling British Gas to assess when and how energy is consumed across different properties.

Leveraging this technology, British Gas monitors electricity usage to identify peak periods and the types of devices consuming the most energy. In understanding these patterns, British Gas can purchase electricity at lower rates during off-peak times and pass these savings on to customers. It also uses the insights gained to offer tailored advice on energy usage, helping customers optimise their energy consumption and reduce their costs.

To extend its reach and impact, British Gas has also focused on engaging with social housing tenants. For instance, in Coventry, British Gas conducted surveys to gather feedback from households about their energy needs and available options. This outreach, conducted in collaboration with local partnership organisations, was crucial in securing the engagement and support of individual households and communities.

3.5. Goal 12: Building Homes & Sustainable Communities

3.5.1. British Gas Community

British Gas is actively engaged in community partnerships across the UK housing sector to modernise energy systems and enhance efficiency in various properties and areas.

Through these strategic partnerships and technology-driven approaches, British Gas is not only modernising energy infrastructure but also providing valuable, bespoke advice to customers, contributing to more efficient energy use and cost savings.

3.5.2. Decarbonising Social Housing

Centrica is leading in decarbonising social housing across the UK through several innovative partnerships and projects aimed at improving energy efficiency and reducing carbon emissions.

One key initiative involves Centrica's social housing business, PH Jones, which has teamed up with Broadacres, a major housing association in North Yorkshire. This partnership focuses on improving the energy efficiency of Broadacres' social housing stock.

To date, the partnership has installed heat pumps in 100 homes, and with plans for further installations, the initiative aims to reduce the energy requirements, carbon footprint, and utility bills of these homes. The project is designed to make homes warmer and more energy-efficient, contributing significantly to Broadacres’ carbon reduction goals.

British Gas has also recently joined a consortium with NatWest, Places for People, Sero, and Tallarna to transform the retrofitting of social housing. This trial, which will be piloted on 1,000 homes owned by Places for People, introduces a new financial model that quantifies the environmental, financial, and health benefits for residents. The model also addresses the challenge of high upfront costs associated with net zero retrofits for landlords.

The consortium explores alternative financing solutions, including using revenue from solar power generated by the homes, retrofit credits, and government grants to repay capital costs. This approach aims to lower the financial barriers to upgrading social housing and bring energy savings to residents. Pineapple Sustainable Partnerships, which leads the consortium, provides a streamlined process for retrofitting by managing everything from energy needs assessments to funding and implementation. This not only simplifies the decarbonisation journey for landlords but also ensures that homes are healthier, more comfortable, and energy efficient.

The success of this project could offer a scalable solution for the entire sector, enabling widespread adoption of energy-efficient upgrades. NatWest is further supporting this initiative by hosting roundtables to discuss the project's potential impact on the housing sector. Interested parties are encouraged to reach out to Pineapple Sustainable

Partnerships to learn more and participate in this transformative effort.

3.5.3. Supporting Communities

With a dedicated budget of £2 million, Centrica’s charity programme supports local charities and volunteering partners in three key areas: assisting people with their current energy needs, building a more sustainable energy future, and supporting local communities.

The Big Difference Programme is meanwhile an employee-led charity and partnerships initiative launched by Centrica shortly after its first Impact Report and is focused on tackling poverty, supporting health and helping children and young people. This programme is guided by employee applications and focuses on leveraging the passion and reach of Centrica's 21,000 colleagues to make a substantial impact in local communities.

In 2023, the programme donated and fundraised around £4 million for around 1,000 good causes, with an average donation of £1,500 each. This included significant contributions to energy bill support, with £140 million donated since 2022 to help customers through the energy crisis, and additional support in Ireland.

Volunteering is a central underpinning of the programme, with a goal of contributing 100,000 days by 2030 and 35,000 days by the end of 2025. In 2023, employees exceeded expectations by contributing 7,228 days of volunteering, surpassing the annual target of 4,000 days. This achievement reflects the programme's success in embedding team targets and expanding opportunities for employee engagement, with a vision to involve one in three colleagues in volunteering by 2030.

The programme also includes the Energy for Tomorrow Fund, which supports community organisations on their journey to net zero with an annual budget of up to £600,000. This fund has backed 36 initiatives so far, including ten new organisations in 2023.

4. Analysis

Since Centrica’s inaugural Impact Report, the organisation has broadened and deepened its commitment to addressing social challenges and unlocking opportunities for individuals and communities across Britain.

This latest report highlights how Centrica has applied best practices and extended best practice across its original Purpose Goal focus, as well as a number of new Purpose Goals which detail its widened approach. These include creating inclusive career pathways, embedding diversity and inclusion, prioritising employee wellbeing, and leading the transition to a sustainable energy future.

4.1.

Creating Inclusive Career Pathways

Centrica has made significant strides in creating career pathways that are open to all, particularly through its focus on apprenticeships. Its commitment to recruiting 3,500 apprentices by 2030 is a clear demonstration of its dedication to providing young people with access to high-quality jobs, regardless of their background. Since 2021, Centrica has already recruited 1,198 apprentices, offering critical opportunities for career development in the energy sector.

The organisation has also placed a strong emphasis on increasing diversity within its apprenticeship programmes, with a particular focus on encouraging more women to join traditionally male-dominated fields. In 2023, 14% of Centrica’s Smart Energy Apprenticeship Scheme participants were women, a substantial increase compared to the national average of just 0.2% for female gas engineers. This progress highlights Centrica’s commitment to addressing gender imbalances in technical roles and creating an inclusive talent pipeline.

Through initiatives like the Graduate and Summer Placement Programme and the Ex-Forces Pathway, Centrica has expanded its recruitment approach. These programmes offer targeted opportunities for underrepresented groups, ensuring that diverse talent has the support needed to progress within the company.

This proactive approach to inclusive recruitment is helping Centrica break down barriers to opportunity and build a more representative and innovative workforce.

4.2. Embedding Diversity and Inclusion Across the Workforce

Centrica has taken a strategic approach to embedding diversity and inclusion at all levels of the organisation.

It has set ambitious D&I targets to be achieved by 2030, including aims for women to hold 48% of roles and individuals from ethnically diverse backgrounds to hold 18% of positions. As of 2023, Centrica has made solid progress, with 30% of its workforce being women, rising to 41% in non-field roles, and 15% of its overall workforce coming from ethnically diverse backgrounds.

Centrica’s best practice in D&I includes its use of data capture and employee engagement tools, such as the Peakon platform, to continuously assess and improve its diversity metrics. This data-driven approach enables the organisation to identify areas for improvement and adapt its strategies accordingly. The Shadow Board initiative also brings together diverse voices from across Centrica to inform strategic decisions, ensuring that a wide range of perspectives is considered in leadership discussions.

Since its first Impact Report, Centrica has also continued to make progress in addressing pay gaps. While challenges remain, Centrica has reduced its median gender pay gap by 9%, and its focus on DE&I Action Plans and diverse shortlisting practices is driving continuous improvement.

This commitment to creating an equitable workplace is reflected in Centrica’s proactive steps to address systemic issues and promote career progression for all employees.

4.3.

Prioritising Employee Wellbeing

Centrica continues to recognise the importance of employee wellbeing as a foundation for a productive and motivated workforce.

The expansion of its Healthcare Plan to cover all employees and their dependents marks a significant step in ensuring that all colleagues have access to comprehensive health support. This initiative now reaches nearly 20,000 employees and 3,500 dependents, offering sector-leading benefits including ill-health prevention, physical and mental health support, and even coverage for significant procedures like hip replacements.

Centrica’s focus on wellbeing is demonstrated further through the launch of the Colleague Support Foundation, which has provided over £130,000 in financial assistance to employees facing personal crises. This fund reflects Centrica’s commitment to supporting its employees beyond the workplace, addressing financial wellbeing and emotional resilience.

Most recently, it has introduced the Menopause and Fertility Support programme and the Wellbeing on Wheels service, ensuring a proactive approach that reaches out to all employees. The introduction of the Pathway to Parenthood programme, offering financial support for fertility treatments and adoption, further reinforces this commitment to providing comprehensive and inclusive health benefits.

4.4. Driving the Energy Transition and Sustainability

Centrica is critical to the UK’s energy transition. It is leading in role, evident Centrica is making significant green investments and developing innovative solutions aimed at reducing carbon emissions. Centrica is committed to becoming a net zero business by 2045 and has made industryleading progress in supporting customers on their journey towards sustainability.

Key initiatives include the installation of heat pumps and EV chargers, as well as the introduction of the Hive Solar and Battery service, which enables customers to generate, store, and manage renewable energy in their homes.

British Gas, is also playing a crucial role in making green technologies more accessible by offering the UK’s lowest heat pump rate and expanding the installation of EV charging points.

Centrica’s long-term strategy is underpinned by green investment, with over 50% of its capital expenditure committed to green taxonomy projects through 2028.

This investment in low-carbon technologies not only helps reduce the carbon footprint of households and businesses but also supports the creation of high-quality green jobs across the UK, contributing to both economic growth and environmental sustainability.

4.5. Community Engagement and Social Impact

Centrica’s social impact extends beyond its workforce and customers, with the business actively engaging in community initiatives that support local charities and vulnerable groups.

The British Gas Energy Trust (BGET), fully funded by Centrica, has been instrumental in providing financial assistance to individuals facing fuel poverty. In 2023, Centrica more than doubled its energy support fund to £140 million, marking it as the largest voluntary support package from any UK energy supplier.

Centrica’s commitment to supporting local communities is also displayed through its employee-led Big Difference Programme, which focuses on tackling poverty, supporting health, and helping young people. Its goal of contributing 100,000 days of volunteering by 2030, with over 7,000 days completed in 2023, highlights its dedication to making a positive impact at the grassroots level.

In summary, Centrica’s latest report showcases the company’s comprehensive approach to breaking down the barriers to opportunity across Britain.

Through its inclusive career pathways, commitment to diversity and inclusion, focus on employee wellbeing, leadership in the energy transition, and community engagement, Centrica is setting a benchmark for social impact that supports both its colleagues, customers, and wider society.