Our Vision

Introduction

We have introduced a number of pioneering and long-lasting programmes to help us meet the challenges ahead. Our energy and carbon strategy for the next five years is currently in development and we are consulting with our stakeholders on our planned approach.

British Gas is committed to tackling the issues of climate change and sustainability, to minimise the impact our operations have on the environment. We also aim to educate our customers and increase awareness of environmental issues, and encourage our employees and customers to become more responsible towards green issues.

The strategy element of the plan will enable senior management to contribute to its implementation and will ensure that the appropriate high-level commitment is secured.

An Environmental Strategy Group (ESG) will be developed to support the implementation of the initiatives in the plan. The ESG will ensure a co-ordinated approach is taken to environmental governance and stewardship and that resources are made available in the overall Centrica business plan.

Commitments and challenges

The end of 2005 saw the conclusion of the first five-year environmental action plan. Significant improvements in our performance were achieved in areas of energy management, resource use and waste management. Centrica has developed a second five-year action plan that will take us to the end of 2010.

The new plan builds on our past success and reflects current and future environmental issues and challenges. Centrica has changed significantly since the implementation of the first plan and there are likely to be significant changes to our business in the next five years. To meet these challenges, we are making commitments in three key areas: strategy, governance and stewardship.

Environmental governance

Our stakeholder dialogue programme in 2005 identified environmental issues as an area where we are expected to be leading our sector. New business growth will inevitably result in the company moving into technologies and locations where retaining such a reputation will become more challenging. Complying with national and international environmental obligations, regulatory and voluntary, is critical to the success of our business.
Environmental governance covers legal, trading, commercial and best practice.

Legal

Our power stations and upstream gas assets are regulated under the Pollution Prevention and Control (PPC) regulatory framework. Part of our obligations under PPC involve adopting the best available techniques (BAT) to reduce our environmental impact. To meet our BAT requirements we have put in place improvement programmes for each of our regulated facilities.

Trading

Trading in carbon dioxide was introduced across the EU in January 2005. Centrica has been actively involved in Phase I and secured full verification of its emissions within the set period. We are currently preparing for Phase II.

Commercial

The alignment of environmental and commercial requirements will be the main business challenge for the second environmental action plan. The link between sound environmental management and operating efficiencies, increased stakeholder perceptions and improved governance will have an effect on the financial and commercial performance of the company. A mechanism to quantify this improvement is to be implemented in key operational areas.

Best practice

A centrally co-ordinated environmental management system is to be developed and cascaded across the Group. The Group Environmental Management System (GEMS) will provide a process-led approach to applying ISO 14001 (and EMAS if appropriate).

Environmental stewardship

Centrica strives to be at the forefront of environmental stewardship. We are committed to improving our overall performance and are constantly seeking ways to extend our environmental profile. The 2000-05 environmental action plan brought about significant improvements in our performance. Our 2006-10 plan will build on earlier successes and broaden the extent of our stewardship. Key areas that will be covered are set out below.

Energy

We aim to develop energy management targets for our buildings and assets.

Waste and recycling

We will seek improvements in maintenance and waste recycling.

Supply chain

We want to influence our supply chain and will involve contractors and suppliers. The focus of the early stage of this process will be on those Centrica considers constitute the highest environmental risk as a result of what they do or supply and/or where it comes from. Support by way of training provision, competency development and assurance, cross-auditing and technical support will be provided.

Vehicle management

Our target is to develop a transport-related ISO14001 environmental management system to optimise vehicle use. This will include a purchasing policy for new and replacement vehicles (fleet and company cars), fuel use (linked to journey management) and driver training. We will also seek to influence car manufacturers on fuel efficiency and vehicle emissions.

Travel plans

Travel plans have been developed for a number of locations. These are to be reviewed and updated and actions will be taken to optimise car use and parking.

Environmental auditing

Greater emphasis will be placed upon internal capabilities for the auditing of the existing environmental management systems and the Group Environmental Management System. This will focus attention on the professional development of internal auditors and will deliver greater self-reliance and improved communications, as well as a sharing of resources and best practices.

Environmental training and competency

We want to develop a structure for environmental professionals in Centrica, covering the operational and managerial levels from green team members to the group operational environment manager. The structure will include profiling the skills and competencies required.

To support the environmental structure, the development of internal training course materials and the scheduling of training for operational and managerial levels will be further developed in the second five-year plan.

Natural Capital

Natural Capital (NC) raised the environmental profile at an operational level during the first five-year plan. NC was relaunched in 2006. The aim will be to encourage staff to contribute to environmental initiatives by considering the impact of their actions, no matter how small, on the prosperity of future generations and the environment in which those generations will live.