Net Zero Carbon Goals by 2035
Net Zero by 2035
CenterPoint Energy has committed to be the first combined electric and natural gas utility with regulated 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’ average goals.
But we don’t just want to achieve emission reductions faster. Our Net Zero goals are based on actionable decarbonization pathways taken on our operating systems – both electric and natural gas – within our footprint. We intend to achieve our Net Zero goals through active measures to reduce emissions and minimal reliance on carbon offsets. And we will report those emission reductions in a transparent and timely manner using standard disclosure frameworks.
In addition to our industry-leading Net Zero goal, CenterPoint Energy intends to be a leader in enabling our customers to transition to a cleaner energy future by being the first utility to set a meaningful Scope 3 emission reduction goal across our entire multi-state footprint. Specifically, CenterPoint Energy is committed to help our residential and commercial customers reduce GHG emissions attributable to their use of natural gas 20-30% by 2035.
ACCELERATE TO NET ZERO BY 2035
PATHWAYS TO NET ZERO
CenterPoint Energy is a leading energy partner dedicated to ensuring equitable access to safe, clean and resilient energy, while continuing to reduce carbon emissions and transition our customers and communities to a clean energy future. We are executing on an ESG strategy we believe will deliver even more growth and value creation. To support our strategy, we’ve set our sights on a target aligned with the Paris Agreement and commit to Net Zero (Scopes 1 and 2) by 2035.
Looking ahead, we are embarking on a new phase of our journey and are positioned to advance clean energy transition by interconnecting renewable developments, batteries and behind-the-meter solutions and providing a reliable, safe and modern grid that serves as a resilient platform for energy delivery. The company is committed to the continued development of alternative fuels programs, including renewable natural gas, that would provide customers new energy choices. The company currently has 54 MW of solar that is operational, along with 1 MW battery storage.
CenterPoint Energy has announced plans in Indiana to retire 730 MW of coal-fired generation in favor of 700-1,000 MWs of solar generation and 300 MW of wind. The retirement of the majority of our coal-fired power generation units and the planned investment of $ 1.3B dollars by 2025 will reduce our carbon emissions by over 80% across our electric footprint. The addition of two natural gas combustion turbines in Indiana for reliability will maintain our commitment to a clean energy future while preserving the local economic value created by our facilities and providing our customers an affordable option for delivering abundant, safe and reliable energy.
CenterPoint Energy is building a Smart Energy Future, with a durable energy grid prepared to embrace new technologies and renewables, including universal solar, battery storage and wind. We are continuing to invest in enhanced leak detection and repair, along with the modernization of our natural gas infrastructure, and are committed to eliminating remaining legacy cast-iron pipe in all our service territories.
The actions we are taking today as part of our electric generation transition plan are expected to meet the long-term target set by the Paris Agreement to limit global temperature increases to 2° Celsius by 2100. CenterPoint Energy is committed to sustainability and, as we implement our Net Zero plan, we intend to continuously assess steps to meet the Intergovernmental Panel on Climate Change’s short-term target of limiting global warming to 1.5° Celsius.
We are integrating our industry leading Environmental, Social, and Governance (ESG) commitments into CenterPoint Energy’s 10-year strategic plan.
Our first step is to eliminate carbon emissions from our own operations. We are committed to environmental sustainability and reducing carbon emissions, as well as leveraging opportunities to build on our efforts by participating in the growth of renewable energy in Indiana, Minnesota and Texas.
To achieve our Net Zero goals, CenterPoint Energy will take the following steps:
- Partnering with customers to offer affordable conservation and energy-efficiency programs;
- Continuing to develop alternative fuel programs;
- Collaborating with our suppliers to lower their methane emissions; and
- Piloting and supporting innovation.
The actions we are taking today and the plans we are making for tomorrow are responsible, equitable and ambitious.
Net Zero Disclaimer: 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 Energy’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 Energy’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. In addition, 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 estimates do not take into account the emissions of transport customers and emissions related to upstream extraction. Please also review the section entitled “CenterPoint Energy Cautionary Statement” included on this website.