Climate Policy Engagement Analysis
Climate Policy Engagement Overview: Centrica appears to be actively engaged on UK and European climate policy, including renewable energy and energy efficiency policies. However, the company appears to hold inconsistent positions on these policies and it also advocates in favor of a long-term role for fossil gas in the energy mix.
Top-line Messaging on Climate Policy: Centrica’s top-line messaging on climate policy is positive. The company stated support for the UK’s target to reach net zero emissions by 2050 in its Climate Policy Positions Publication from February 2024. In the same publication, the company supported the aims of the Paris Agreement and the UNFCCC process to limit global warming below 1.5°C. The company also supported the need for government policy to respond to climate change in its 2022 Annual Report, published in March 2023.
Engagement with Climate-Related Regulations: Centrica appears to have inconsistent positions on renewable energy policy and energy efficiency measures in 2023 and 2024. Centrica CEO, Chris O’Shea, supported Power Purchase Agreements to support renewable energy development in a press release in February 2023. However, in an August 2023 Response to Energy Security and Net Zero Committee Inquiry, Centrica appeared to advocate for the weakening of renewable energy policy by suggesting that it should broaden to apply to other "low-carbon" technologies.
In relation to energy efficiency, in a January 2023 consultation response, Centrica supported government intervention to provide energy efficiency subsidies and investments. However, in a February 2023 consultation response, the company did not appear to support any non-market-based demand-side management measures in the EU Electricity Market Design.
Positioning on Energy Transition: Centrica supports the decarbonization of transport and the building sector, however, the company appears to advocate a long-term role for fossil gas and hydrogen in varying forms in the energy mix in 2023 and 2024. In a consultation response in January 2023, Centrica supported the phase out of gas boilers from 2035 and the introduction of heat pumps. The company also advocated for government support to transition to low-carbon heating in a consultation response in January 2023 and supported the electrification of light-duty vehicles in its Climate Policy Positions publication from February 2024.
However, Centrica appears to advocate for the long-term role of fossil gas in the energy mix and continues to support hydrogen for domestic use. In the company’s 2023 Annual Report, published in February 2024, Centrica Chair, Scott Wheway, appeared to advocate for a continued role for fossil gas, without placing clear conditions on the need for CCS or specifying timelines a transition away from this energy type. The company CEO, Chris O’Shea, also appeared to advocate for fossil gas as a transition fuel in a press release in February 2024 and advocated for hydrogen for domestic heating in an article in EnergyVoice in July 2023.
Industry Association Governance: Centrica has disclosed a list of its industry association memberships in its 2023 Industry Association Review, published in 2024, with links to the entities’ own disclosures. However, the company has excluded material evidence of indirect climate policy engagement identified by InfluenceMap's database for more than three industry associations. The company is also a member of the International Association of Oil and Gas Producers (IOGP) which has generally negative positions on the energy transition.
A detailed assessment of the company's corporate review on climate policy engagement can be found on InfluenceMap's CA100+ Investor Hub here.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically.
This summary was last updated in Q3 2024.