Sustainability Strategy & Oversight
CenterPoint Energy’s Board of Directors has charged the Governance, Environmental and Sustainability Committee of the Board of Directors with oversight responsibility for assessing the company’s sustainability strategy and initiatives. The Governance, Environmental and Sustainability Committee, the Board or both receive periodic reports from representatives of the ESG Council about the company’s environmental and sustainability activities and risks, including risks related to climate change. The Governance, Environmental and Sustainability Committee also helps the Board carry out its responsibility for ultimate risk oversight by focusing on environmental and sustainability matters.
CenterPoint Energy’s Vice President of Environmental and Corporate Sustainability, who reports directly to the Executive Vice President and General Counsel, has responsibility for oversight of ESG topics. Our Vice President of Environmental and Corporate Sustainability and our Vice President of Investor Relations and Treasurer oversee the company’s ESG Council.
CenterPoint Energy seeks to integrate our sustainability practices, progress and performance into our company strategy, enterprise risk management program and stakeholder engagement. A percentage of certain executive compensation is tied to ESG performance, such as diversity, equity and inclusion initiatives. Beginning in 2022, we introduced a carbon reduction goal as a weighted component of our long-term incentive performance-based awards. This new component measures the progress of our Net Zero emission and carbon emissions reduction goals and holds leaders accountable for the achievement of these goals. Employees at all levels of the company contribute to achieving these goals.
Managing ESG at CenterPoint Energy:
- The Board of Directors’ Governance, Environmental and Sustainability Committee is the highest-level committee responsible for the oversight of the corporation’s risk management and performance related to environmental topics, including climate change and other ESG matters.
- Our Executive Vice President and General Counsel and our Vice President of Environmental and Corporate Sustainability provide executive leadership on ESG matters and engage with the Governance, Environmental and Sustainability Committee of the Board on ESG priorities, including risk management and monitoring the implementation of the ESG program.
- Our ESG Council includes officers and other members of management who identify, evaluate and recommend strategic directions and opportunities that promote ESG objectives aligned with our strategy and goals.
- Senior management executes the company’s ESG strategy by working with partners, customers, employees and other stakeholders to seek to reduce carbon 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.
The Compensation Committee assists the Board in discharging its oversight responsibility for the company’s human capital management matters, including diversity, equity and inclusion initiatives and supplier diversity program. Management provides regular updates to the Compensation Committee on human capital management strategy and programs, and the Board is kept apprised of any developments in these areas. Additionally, management periodically provides updates directly to the Board on diversity, equity and inclusion initiatives.