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Helping People Today, Securing Energy for Tomorrow

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CORPORATE RESPONSIBILITY PERFORMANCE REVIEW 2014 Helping people today, securing energy for tomorrow In this document we provide a performance update on WHAT'S IN THIS REVIEW our key corporate responsibility focus areas. Additional content is available on our website: centrica.com/cr IN THIS REVIEW ELSEWHERE ON THE WEB 03 INTRODUCTION 03 Chief Executive’s introduction Explore over We prioritise our areas of focus by 05 Our business 100 metrics in understanding which issues matter to our 06 Key performance indicators our interactive stakeholders, their relevance to Centrica and data centre. our ability to influence them. 09 PRIORITISING SAFETY 10 Keeping our customers and people safe Search our data centre > See our materiality matrix > 11 HELPING OUR CUSTOMERS Keep up-to-date 12 Helping customers with their energy bills with our blogs, case 13 Supporting people in need studies, videos and 14 Innovating to provide more choice infographics. 15 The connected home 16 Improving customer service View our stories > 17 SUPPORTING OUR PEOPLE AND COMMUNITIES 18 Building our people’s skills 19 Investing in communities 21 Engaging local communities 22 SECURING ENERGY RESPONSIBLY 23 Sourcing future energy supplies 25 REDUCING CARBON EMISSIONS Find out about our approach 26 Reducing our carbon footprint to corporate responsibility. 27 Focusing on customer carbon Browse our web pages > CORPORATE RESPONSIBILITY PERFORMANCE REVIEW 2014 2 CHIEF EXECUTIVE’S VIDEO Corporate INTRODUCTION responsibility at Centrica See what this means to us in practice. 2014 was a challenging year for the energy industry. Public trust in our sector continues Across our company, we will work to rebuild further to go to improve customer service to be low. We are a customer-facing trust by helping people today and securing and we are committed to ensuring we have company, and we must serve our customers energy for tomorrow. That means helping the right capabilities and systems to do competitively and with integrity. Safety, our customers, supporting our people and this. Since 2009, we have invested over compliance and our conduct – the way in communities, while delivering reliable and £230m to upgrade our customer service which we go about our business – is front of competitive future energy supplies and systems in the UK. We are developing new mind for everyone in the company. services, in a safe and responsible way. ways for our customers to interact with Concerns about pricing and competition energy through innovative technologies, Helping people today remained in the spotlight throughout the such as Hive Active HeatingTM, which year. The Competition and Markets Authority The safety of our people, customers and gives households greater control over their launched an investigation into the energy communities is my highest priority. As a heating and energy bills. For customers market in the UK. I believe the energy market company, we have robust safety systems who struggle to pay for energy, we provide is competitive but it is beneficial to have a in place and I am committed to equipping energy assistance and financial support. In full analysis to help restore consumer trust. our people with the skills and tools to keep 2014, we helped nearly 1.8m vulnerable themselves, each other and our customers customers in the UK. safe. Our rate of total recordable injuries improved by 34% in 2014, to 0.50 per We also bring benefits to our local 100,000 hours worked compared with 0.76 in communities throughout the UK, North 2013. However, our lost time injury frequency The safety of our people, America and Republic of Ireland. For rate increased by 27% to 0.14 per 100,000 customers and communities example, during the five-year construction hours, up from 0.11 in 2013. This was mainly is my highest priority.” of our Cygnus North Sea gas project, 4,820 due to improved rigour in reporting. skilled jobs will be created and we expect it Iain Conn We are listening to our customers and to contribute £1.3bn to the UK economy. Chief Executive focusing on delivering a strong service at competitive prices. We know we have CORPORATE RESPONSIBILITY PERFORMANCE REVIEW 2014 3 CHIEF EXECUTIVE’S INTRODUCTION CONTINUED... Securing energy for tomorrow we are well placed to be at the forefront of the longer term trends in the global energy As well as directly serving customers and market and the transition to a lower carbon communities, we play a vital role in securing economy. In so doing, we are capable of the energy they need. One of Centrica’s supplying and serving the needs of our 34% 27% strengths comes from its diverse energy customers and other stakeholders. Our rate of total recordable injuries portfolio. We cover oil and gas exploration However, our lost time injury improved by 34%, to 0.50 per 100,000 and production, power generation, gas frequency rate increased by 27% Looking ahead hours worked compared with 0.76 in 2013. to 0.14 per 100,000 hours, up from storage and energy trading. We are able to 0.11 in 2013. This was mainly due to manage weather, commodity and market risk It is my belief that Centrica has a vital role in society; what we do is central to improved rigour in reporting. for our customers, so they can have secure people’s energy needs. But I know there is and reliable energy supplies. We must also more to be done. Our priorities are safety, secure energy in a way that is efficient and compliance and conduct, serving our competitive, and which minimises adverse customers competitively and with integrity, social and environmental impacts. developing new offers and services while In addition to fulfilling an important role providing secure and reliable energy today, I also believe Centrica is well supplies. We are undertaking a strategic positioned for the future. We have a review, which will report back in the summer, focus on gas, which will continue to be an to ensure Centrica is on the best footing to important part of the energy mix in the fulfil these priorities for the long term. coming decades. It is cheaper than any other energy source apart from coal, is Iain Conn more reliable than wind and is the lowest Chief Executive 1.8m carbon fossil fuel. This focus, alongside We helped nearly investments in energy efficiency, low carbon 1.8m vulnerable nuclear and renewables and our leadership households in the UK. in the installation of smart meters, means CORPORATE RESPONSIBILITY PERFORMANCE REVIEW 2014 4 OUR BUSINESS OUR VISION IS TO BE THE LEADING INTEGRATED ENERGY COMPANY, WITH CUSTOMERS AT OUR CORE Centrica Energy is a leading Centrica Storage has the largest British Gas is the leading Direct Energy is one of the Bord Gáis Energy is a leading international energy business gas storage facility in the UK, residential and business largest retail providers of supplier of gas, electricity delivering a balanced mix of storing and processing gas for energy and services electricity, natural gas and home and energy services to gas and oil production, power utilities, traders and producers. provider in the UK. services across North America. homes and businesses in generation and energy trading. the Republic of Ireland. EMPLOYEE NUMBERS: 2,280 EMPLOYEE NUMBERS: 305 EMPLOYEE NUMBERS: 28,814 EMPLOYEE NUMBERS: 5,980 EMPLOYEE NUMBERS: 280 OPERATING PROFIT: £737m OPERATING PROFIT: £29m OPERATING PROFIT: £823m OPERATING PROFIT: £150m OPERATING PROFIT: £7m CUSTOMER ACCOUNTS: 23.6m CUSTOMER ACCOUNTS: 4.2m CUSTOMER ACCOUNTS: 0.6m SOURCE IT GENERATE IT PROCESS IT STORE IT TRADE IT SUPPLY IT SERVICE IT SAVE IT We invest in We generate power Our onshore gas Our gas storage facility In the UK and North We supply energy to We provide peace We offer innovative gas and oil exploration through our wind farms, terminals ensure high at Rough is the largest America we trade gas homes and businesses of mind with central low carbon, energy and production in nuclear and gas-fired quality gas enters the of its kind in the UK. and power to ensure in the UK, North heating, boiler and efficient products the Atlantic basin, power stations. transmission system. our customers have a America and the cooling maintenance and services to help particularly in the reliable and competitive Republic of Ireland. and breakdown our customers better North Sea and Canada. energy supply. cover products. manage their energy. KW The Cygnus North Sea The power we generated Our gas processing Our Rough storage Our 20-year agreement We have helped Across the business, We calculate that the gas project will be able globally through our terminals in the UK at facility represents with Cheniere, to export nearly 1.8m vulnerable we carried out products we have to meet the demand of investments in nuclear Barrow and Easington, more than 70% of liquefied natural gas households in the UK, over 10m engineer installed in UK homes and 1.5m UK homes at peak and renewable energy in East Yorkshire, the UK’s current (LNG) from the US, more than any other jobs in homes and businesses since 2010 have output – 5% of the UK’s helped avoid nearly processed over 210bn storage capacity. remains on track for energy supplier. businesses, and had saved over 13mtCO2e, total gas production. 8.4mtCO2e. cubic feet of gas. first delivery due by more than 13m calls equivalent to the average the end of 2018. with customers. annual emissions of 2.6m UK homes. OUR INTEGRATED BUSINESS MODEL GIVES US OPPORTUNITIES THROUGHOUT THE ENERGY VALUE CHAIN CORPORATE RESPONSIBILITY PERFORMANCE REVIEW 2014 5 KEY PERFORMANCE Data centre Explore over 100 metrics and
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