Committed to
Industry-leading
Net Zero Carbon Emissions Goals by 2035
Net Zero by 2035 and Scope 3 Goals
CenterPoint Energy is the first combined electric and natural gas utility with generation to announce its Net Zero goals for its Scope 1 and Scope 2 greenhouse gas emissions (GHG) by 2035, fifteen years ahead of certain of our peers’ average goals. This overall Net Zero by 2035 goal is a companywide goal across our electric, natural gas, and power generation businesses for both Scope 1 and 2 emissions.
In addition to our Net Zero goals, CenterPoint Energy strives to be a leader in enabling our customers to transition to a cleaner energy future. We have set a 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 end use of natural gas by 20-30% by 2035 from a 2021 baseline. This Scope 3 goal is comparable to emission reductions for both our Scope 1 and 2 Net Zero goals.
Guided by our carbon policy, we intend to achieve our Net Zero goals through active measures to reduce emissions and minimal reliance on carbon offsets. We will report these emission reductions in a transparent and timely manner using standard disclosure frameworks.
To achieve our Net Zero and Scope 3 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.
2021 Greenhouse Gas Emissions
Scope 1, 2, and 3 GHG Emissions (million metric tons of CO₂ equivalent)
2021 GHG Emissions by Scope and Source
Scope 1
20.2%
90.4%
ELECTRIC GENERATION1
7.4%
NATURAL GAS OPERATIONS2
0.8%
FLEET VEHICLES
1.4%
SF6 EMISSIONS3
Scope 2
0.1%
81%
FACILITY
ELECTRICITY USE
19%
POWER LINE LOSSES4
Scope 3
79.7%
100%
NATURAL GAS SUPPLIED TO
END USE CUSTOMERS5
- Electric Generation as reported under Subpart D of the mandatory Greenhouse Gas Reporting Program (GHGRP) as required by the US EPA. Scope 1 GHG emissions from Electric Utility Power Generation are third-party verified and registered with the EPA Clean Air Markets Division.
- Natural Gas Local Distribution Company (LDC) operations Subpart W GHG emissions are determined using emissions factors and calculations as required by the EPA’s rule for the mandatory GHGRP.
- Electric Transmission Substation and Distribution equipment GHG emissions in the form of SF6 are determined using emissions factors and calculations as required and reported under Subpart DD of the EPA’s rule for the mandatory GHGRP.
- Does not include line loss attributable to CenterPoint Energy’s Houston Electric Transmission and Distribution assets.
- Subpart NN indirect emissions are GHG emissions reported to the US EPA based on the amount of natural gas supplied to all end-use customers.
Climate Modeling for 2° and 1.5° Scenarios
To support our strategy, our Net Zero goals for Scopes 1 and 2 emissions by 2035 is aligned with the Paris Agreement.
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. 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.
Mitigating SF6 Emissions
Sulfur hexafluoride (SF6), a GHG, is an insulating gas used in high-voltage electric transmission and distribution switchgear equipment. Since 1999, CenterPoint Energy’s electric operations business has been actively involved in SF6 emission programs with the U.S. Environmental Protection Agency (EPA).
Participating in the Methane Challenge
The EPA Natural Gas STAR Program provides a framework for partner companies with U.S. oil and natural gas operations to implement methane reducing technologies and practices, as well as to document their voluntary emission reduction activities. CenterPoint Energy joined the program in 1997 and submits its reports annually.
To achieve a cleaner energy future and reduce greenhouse (GHG) emissions, CenterPoint Energy is:
- Enacting our long-term electric generation transition plan.
- Investing in research and development projects, infrastructure modernization and renewables, like solar and wind energy.
- Offering effective and affordable energy conservation and energy efficiency programs.
- Providing more consumer choices for alternative transportation fuels and expanding electric vehicle infrastructure in Indiana and Texas.
- Partnering with our natural gas suppliers to take meaningful steps to lower methane emissions across the natural gas value chain.
- Piloting a green hydrogen production facility in Minneapolis to study the effects of blending hydrogen with our natural gas system.
- Investing in methane reduction technologies:
- Employing ZEVAC® (Zero Emission Vacuum and Compressor), an innovative and environmentally responsible technology that uses compressed air to suction a pipeline segment, transferring the gas to an adjacent pipeline so it is not released into the atmosphere.
- In 2021, Texas Gas Operations employed ZEVAC equipment for first time in the state to minimize methane release and natural gas flaring for a project near Fresno.
- Employing ZEVAC® (Zero Emission Vacuum and Compressor), an innovative and environmentally responsible technology that uses compressed air to suction a pipeline segment, transferring the gas to an adjacent pipeline so it is not released into the atmosphere.
- Operating the world’s second largest fleet of state-of-the-art Picarro Surveyor™ leak survey technology, which is far more sensitive and faster at locating methane leaks than traditional methods.
- Based on our 2021 performance, we anticipate an approximately 33% reduction in methane emissions by 2035 resulting from our pipeline modernization efforts.
ACCELERATE TO NET ZERO BY 2035
Scope 3 Customer End Use Goal by 2035
*As measured from Form EIA-176 for residential and commercial customers.
Scope 1 GHG Emissions from the Direct Operations of CenterPoint Energy Assets
|
Scope 1 GHG Emissions Result From the Direct Operations of CenterPoint Energy Assets |
2018 | 2019 | 2020 | 2021 |
|---|---|---|---|---|
| Electric Generation CO2e Metric Tons | 5,961,697 | 6,071,283 | 4,620,963 | 6,370,671 |
| SF6 CO2e Metric Tons |
1,053 |
3,625 |
24,633 |
101,320 |
| Natural Gas Operations CO2e Metric Tons |
605,074 |
540,975 |
533,572 | 519,190 |
| Fleet CO2e Metric Tons | 76,872 | 68,171 | 58,105 | 57,600 |
| Total Scope 1 Emissions CO2e Metric Tons | 6,644,696 | 6,684,054 | 5,237,273 | 7,048,781 |
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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 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. Please also review the section entitled “CenterPoint Energy Cautionary Statement” included on this website.