CenterPoint Energy Sustainability
CenterPoint Energy is committed to providing investors and other stakeholders with information about the company’s environmental, social and governance (ESG) priorities and key issues, while also highlighting relevant data and examples. Our ESG reporting discusses our business, operations and strategies; how we engage with our stakeholders, approach environmental stewardship, support our communities, and provide a safe, inclusive workplace; and our plans to achieve our Net Zero goals.
Dave Lesar
President and Chief Executive Officer
LEADERSHIP MESSAGE
A Message from Dave Lesar, President and Chief Executive Officer
Dear Stakeholders,
At CenterPoint Energy, our ESG commitments are foundational to our premium value proposition. Two of the three pillars of our value proposition directly underpin these ESG commitments, providing sustainable, resilient and affordable customer service, and supporting a sustainable positive impact on our environment and communities, and directly contribute to our third pillar – sustainable growth for shareholders.
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ABOUT THIS REPORT
CenterPoint Energy is committed to providing investors and other stakeholders with transparent information about its ESG priorities and key issues, while also highlighting relevant data and examples. This website demonstrates our progress on ESG topic that are integral to our long-term performance.
Net Zero by 2035 Goals
Actionable, Measurable, Transparent
CenterPoint Energy has committed to be the first combined electric and natural gas utility with electric generating assets to achieve Net Zero for its Scope 1 and Scope 2 greenhouse gas emissions by 2035 – fifteen years ahead of our peers. But we don’t just want to achieve emission reductions faster. Our goals are based on actionable pathways taken on our electric and natural gas operating systems within our footprint. We intend to achieve our Net Zero goals through measurable emission reductions and minimal reliance on carbon offsets. Further, we will report our emission reductions in a transparent manner.
Net Zero Disclaimer: Our Scope 1 emissions estimates are calculated from emissions that directly come from our operations. Our Scope 2 emissions estimates are calculated from emissions that indirectly come from our energy usage, but because Texas is in an unregulated market, our Scope 2 estimates do not take into account Texas electric transmission and distribution assets in the line loss calculation and exclude emissions related to purchased power between 2024E-2026E. Our Scope 3 emissions estimates are based on the total natural gas supply delivered to residential and commercial customers as reported in the U.S. Energy Information Administration (EIA) Form EIA-176 reports and do not take into account the emissions of transport customers and emissions related to upstream extraction. While we believe that we have a clear path towards achieving our net zero emissions (Scope 1 and Scope 2) by 2035 goals, our analysis and path forward required us to make a number of assumptions. These goals and underlying assumptions involve risks and uncertainties and are not guarantees. Should one or more of our underlying assumptions prove incorrect, our actual results and ability to achieve net zero emissions by 2035 could differ materially from our expectations. Certain of the assumptions that could impact our ability to meet our net zero emissions goals include, but are not limited to: emission levels, service territory size and capacity needs remaining in line with company expectations (inclusive of changes related to the sale of CenterPoint’s Natural Gas businesses in Arkansas and Oklahoma); regulatory approval of Indiana Electric’s generation transition plan; impacts of future environmental regulations or legislation; impacts of future carbon pricing regulation or legislation, including a future carbon tax; price, availability and regulation of carbon offsets; price of fuel, such as natural gas; cost of energy generation technologies, such as wind and solar, natural gas and storage solutions; adoption of alternative energy by the public, including adoption of electric vehicles; rate of technology innovation with regards to alternative energy resources; CenterPoint’s ability to implement its modernization plans for its pipelines and facilities; the ability to complete and implement generation alternatives to Indiana Electric’s coal generation and retirement dates of Indiana Electric’s coal facilities by 2035; the ability to construct and/or permit new natural gas pipelines; the ability to procure resources needed to build at a reasonable cost, the lack of or scarcity of resources and labor, the lack of any project cancellations, construction delays or overruns and the ability to appropriately estimate costs of new generation; impact of any supply chain disruptions; changes in applicable standards or methodologies; and enhancement of energy efficiencies.