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Corporate Responsibility Report 2003 What Matters to You

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Corporate Responsibility Report 2003 What Matters to You Centrica ‘We aim to build positive relationships by developing a sustainable approach to doing business.’ Sir Roy Gardner, Chief Executive Corporate Responsibility Report 2003 What matters to you... Our first responsibility is to meet our customers’ needs for essential services. Through our business activities, we are an integral part of local communities. We create wealth for employees, generate taxes to government, create jobs among suppliers and deliver a fair reward to investors who finance our business. Centrica Energy manages Centrica Business Services One.Tel provides a fresh In Canada, Direct Energy our gas production and aims to be recognised as the and innovative approach in Essential Home Services offers electricity generation most innovative and flexible providing a range of landline, gas and electricity and a range capabilities, along with provider of energy and other mobile and internet services of home services in Ontario. third party supply and essential services to the UK across the UK. In Texas, we supply electricity transportation contracts. business community. under the Direct Energy, WTU Retail Energy and CPL Retail Energy brands to homes and businesses. We supply gas under the British Gas is the market The AA provides reassurance Luminus, our joint venture Energy America brand in leader in delivering gas, and services to motorists energy business in Belgium, Michigan, Ohio and electricity and telecoms to in the UK and Ireland. Our and Luseo Energia, our Pennsylvania. Direct Energy millions of homes across roadside assistance remains business to business brand Business Services provides the UK. As well as energy at the core of our activities in Spain, provide us with a comprehensive energy and telecoms, we offer and we are the UK’s number launch pad into the markets solutions to businesses customers an increasing one insurance intermediary. of continental Europe. throughout Canada and choice of complementary The AA is also a growing in Texas. home services. provider of personal loans and financial services. Every day matters Every day our businesses touch the lives of millions of people. Through our leading brands, we provide warmth, comfort and peace of mind. People know us through our brands, but behind those brands lies the skill, knowledge and expertise of thousands of employees. £1,058m £17.9bn www.centrica.com/responsibility 2003 Operating Profit. 2003 Group turnover. ...matters to us “…by understanding our impact on society, the economy and the environment, we can build positive relationships that benefit our shareholders through the development of a sustainable approach to doing business.” Corporate responsibility is often thought of as a new concept. and friends and our relationships go beyond the provision In reality, companies have always had to address issues of of good quality products and services. For example the social and environmental responsibility as a core part of £150 million ‘here to HELP’ programme is providing a package doing business. of products, services and advice to make 500,000 homes warm, safe and comfortable. This programme aims to However, the recent external focus on corporate responsibility improve living conditions and the quality of life for families, has provided an impetus for businesses of all sizes to challenge older people and people with disabilities in some of Britain’s their existing practices and to focus on introducing increasingly most deprived communities. We also have a responsibility rigorous processes into their work. We have embraced this to help our customers be more environmentally responsible challenge. when using our products and services. Our vision is given substance by core values and business My management team and I are committed to ensuring that principles, which are intended to inform every aspect of our we manage the social, economic and environmental impacts organisation and define the way we work. This report describes of our businesses and report on our progress. We believe this how we put our values and principles into practice in terms of: approach will enable us to continue to evolve and develop our corporate responsibility strategy. We recognise that is key to – supporting our employees in the workplace continuing business success. – our pride in delivering good-quality products and services for our customers in the marketplace I hope you find this report interesting. I would welcome your – our responsibility in managing our impacts on the feedback on any aspect of our policy and initiatives. You will environment find the appropriate contact details throughout this report. – investing in our local communities We have many millions of customers world-wide. Each of these relationships is built on trust and hence everything we do and every decision we make is based on our values. Sir Roy Gardner Our products are essential for our customers, their families Chief Executive Contents Introduction 01 Our business 02 Workplace 06 Marketplace 12 Community 18 Environment 22 Looking ahead 26 Assurance statement 28 42,573 44m £6.6m Further information/links 29 More than 42,573 employees More than 44 million Contributed to community across the business. customer relationships. causes in 2003. Centrica plc Corporate Responsibility Report 2003 01 Our business A business with values Corporate responsibility is an important part of our culture, identity and business practice. At the heart of our approach is a clear articulation of our vision, strategy and values underpinned by our business principles. We aim to grow our Building a better business developments during the year Our principles are designed earnings and cash flow Since Centrica was formed included further investments to help every employee play within a prudent risk in 1997, the company has in power generation, the a full part in protecting and management framework. gone through a significant Competition Commission enhancing our reputation in transformation. We were clearance of our aquisition a manner that is consistent During 2003, our share essentially a UK gas supplier of the Rough gas storage with our values. We have price outperformed the in a monopoly market. facility and the sale of the also produced more detailed market by nearly 10%. Today we sell a wide range Goldfish credit card and business practice guides to Since our demerger of products and services personal loan business. help our employees make the in February 1997 to 31 in the UK and overseas, values and principles a reality December 2003 we have competing strongly in Principles in practice in their day-to-day conduct. out-performed the highly competitive markets. Underpinning the FTSE100 Index by 221%. transformation of our The full version of our In 2003, we reported record business has been a principles can be found at group performance following single vision: to be a leading www.centrica.com/ a challenging year in which supplier of essential services businessprinciples the performance of British in our chosen markets. Gas was impacted by an adverse combination of This vision is supported warm weather and high by an integrated set of commodity costs. Group core values and business turnover was up 25% to principles that define the £17,931 million and operating way we work. profit increased by 14% to £1,058 million. Our operating We aim to ensure that profit in North America more all Centrica employees are than doubled to £130 million familiar with our values and and we reported strong principles, and can apply growth in the core business them consistently and of the AA, leading to a 27% rigorously. A copy of our increase in operating profit. business principles is Other major business available to every employee. Our history Centrica is created Centrica announces UK domestic gas Centrica Centrica acquires Centrica enters the energy following the its entry into the market becomes acquires Canadian energy markets of Continental demerger of UK domestic fully open to the AA for company, Direct Europe through 50% British Gas plc electricity market competition £1.1 billion Energy share in Luminus N.V., Belgium 1997 1998 1999 2000 2001 Multi-million pound Centrica partnership is launched environment between British Gas website launches Our CR achievements and Help the Aged 02 Centrica plc Corporate Responsibility Report 2003 “Centrica is committed to the highest First 12% ethical standards. To deliver against this commitment we have developed a set of principles that set out how Centrica was named 2003 Utility Earnings up 12% in 2003. Company of the Year in the Utility we operate responsibly to create Industry Achievement Awards. the kind of service our customers, suppliers, business partners and colleagues expect.” Sir Roy Gardner, Chief Executive Vision, Strategy, Values Our vision is to be a leading supplier of essential services in our chosen markets in order to provide maximum value to our shareholders. Our distinctive strategy Sharing knowledge and Pride Challenge is to create value for best practice Pride comes from the We are constantly striving shareholders through: Making Centrica greater satisfaction of our customers for continual improvement; than the sum of its parts both and from delivering high we are never satisfied. Deepening our by implementing common quality products and services. We engage constructively relationships processes and by sharing We’re proud of our staff with advocates and critics with customers knowledge, best practice and and their achievements, from within and outside Gaining and retaining learning across the company. and we recognise and the company. We do this valuable customers by reward success. to maintain our competitive understanding their needs Our values are the edge and deliver and offering them tailored core of our corporate Trust consistently outstanding products and services philosophy: Trust is at the heart of our shareholder returns. through our strong brands. relationships with customers. Passion for customers Trust means doing what we Support Managing risk in the This value is central to the say and acting with integrity.
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