Sustainability Strategy and Oversight
At CenterPoint Energy, we recognize climate change is one of the defining public policy issues of our time. That’s why we continue to work towards significantly reducing our GHG emissions while seeking to provide safer, more reliable and affordable services to our customers. The Board of Directors is actively involved in overseeing and guiding our work in this area and has delegated oversight responsibility of certain sustainability-related matters to its committees.
The Governance, Environmental and Sustainability Committee is the highest governance body charged with oversight responsibility of the company’s programs, practices, initiatives, reporting and strategies relating to environmental and sustainability matters, including climate change issues and the company’s pathways and progress toward achievement of its Net Zero and GHG emissions reduction goals. The committee is also responsible for overseeing significant environmental hazards, legislative and regulatory developments affecting sustainability and climate-related disclosures, and the company’s compliance with applicable environmental regulations.
The Governance, Environmental and Sustainability Committee, the Board or both receive quarterly reports from representatives of the company’s sustainability group regarding the company’s environmental and sustainability activities and risks, including risks related to climate change and significant environmental hazards, as well as the achievement of the company’s Net Zero and GHG emissions reduction goals, among others.
The Audit Committee is also charged with reviewing legislative and regulatory developments affecting sustainability and climate-related disclosures within the financial reporting framework, monitoring developments in integrated reporting for these areas for alignment with financing reporting and reviewing the disclosure controls and procedures relating to the company’s sustainability disclosures required by applicable law or regulation.
The Human Capital and Compensation Committee is the highest governance body charged with oversight responsibility of the company’s human capital management practices.
The Safety and Operations Committee, which was formed in April of 2024, is the highest governance body charged with oversight responsibility of the company’s safety matters, including its safety performance, risk management, strategy, processes and initiatives, key performance indicators, and any significant safety incidents or events. It is also charged with oversight of the company’s utilities operations, including its utilities strategies, risk management, performance, metrics, initiatives, as well as emergency preparedness and response practices and performance and compliance with facilities and operations-related regulations and standards.
Senior management executes the company’s sustainability strategy by working with partners, customers, employees and other stakeholders on such initiatives, including the company’s efforts to reduce GHG emissions across our operations and throughout the supply chain.
Our Corporate Sustainability department implements the company’s sustainability strategy and reporting, communications, data collection and responses to investor surveys, ratings and rankings.
Sustainability Practices and Performance
CenterPoint Energy seeks to integrate our sustainability practices, progress and performance into our company strategy, Enterprise Risk Management program and stakeholder engagement. In 2023, a percentage of certain executive compensation was tied to sustainability performance.
Beginning in 2022, the Human Capital and Compensation Committee incorporated a GHG emissions reduction target as a performance objective for senior executives’ long-term incentive awards, having a 5% weight, to incentivize and track the company’s progress toward its Net Zero and Scope 3 GHG emissions reduction goals. Employees at all levels of the company contribute to achieving these goals.