Analysis of Innovation and Sustainability in Centrica PLC's Operations

This report provides an in-depth analysis of Centrica PLC's approach to innovation and sustainability. It begins with an introduction to the concepts and then delves into Centrica's specific sustainability offerings, including their focus on renewable energy and carbon emission reduction. The report explores relevant literature on sustainable practices within the energy sector, followed by an examination of Centrica's key stakeholders, such as customers, investors, and government regulators. It also benchmarks Centrica's sustainability performance, highlighting their goals and achievements, such as reducing carbon emissions and promoting community engagement. The report offers recommendations for managers to further integrate sustainability into the company's operations. Finally, it concludes with a summary of the key findings, emphasizing the importance of sustainability in attracting customers and improving market positioning. The report also includes diary notes from seminars and references to relevant sources.

Innovation and the
Sustainable Organisation
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Table of Contents
INTRODUCTION...........................................................................................................................3
PART A...........................................................................................................................................3
Covered in PPT.......................................................................................................................3
PART B............................................................................................................................................3
Section #2 Company and its sustainability offerings.............................................................3
Section #3 Relevant Literature...............................................................................................4
Section #4 Chosen company’s Sustainability Stakeholders...................................................5
Section #5 Sustainability Benchmark.....................................................................................6
Section #6 Recommendations for Managers..........................................................................8
Section #7 Conclusions..........................................................................................................9
Section #8 References..........................................................................................................10
Section #9 Appendix from Seminar Diary Notes.................................................................11
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INTRODUCTION
Innovation can be defined as the development of a new offering with the sole motive of
meeting a market demand or closing the market gap (Schaltegger, Hansen and Lüdeke-Freund,
2016). It has become a necessity for each and every organisation in the modern era. In this
regard, many organisations are adopting sustainable practices as a measure of facilitating
innovation in an eco friendly manner within the premises of company.The present project
explores innovation and sustainability as evident within the confines of Centrica Plc. It is a
multinational firm engaged in development and provision of energy and associated facilities. It is
headquartered in Windsor, UK (Who We Are, 2020). The primary activity for this firm is supply
of electricity as well as gas to people and companies within 3 nations mainly, namely, UK,
Ireland and North America. The report is categorised into 2 sections. The first section consists of
a reflective account based on module learning. The second section constitutes introduction to
company and its sustainability offerings together with literature review upon sustainable
practices adopted by the organisation. The sustainability stakeholders and benchmark are also
included along with recommendations for the supervisors. Lastly, diary notes of seminars are
included.
PART A
Covered in PPT
PART B
Section #2 Company and its sustainability offerings
Centrica PLC is recognised as being one amongst the largest gas supply organisations
supplying offering to the residents within the confines of UK. Further, it is acknowledged as
being one amongst the largest electricity supply corporations. The entity has Bord Gáis Energy
in the confines of Ireland. Further, the concerned company is engaged in provision of household
services like plumbing and many more. It shares listing on London Stock Exchange and also a
place upon Financial Times Stock Exchange 100 Index. Over the course of time, this entity has
gained massive appreciation from government, customers, society, local authorities and
community for the initiatives it takes for the upliftment of people and preservation of
environment. By incorporating innovation and sustainability within the organisation, a company
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seeks to attract and appeal to a large base of audience, thereby retaining them for a long period of
time in future context (Sustainability. Our Approach, 2020). Thus, looking upon this, Centrica
PLC adopts a sustainability approach by incorporating sustainability as an element of the
organisational culture.
Section #3 Relevant Literature
Electric supply and gas industry is changing with the passing time in order to bring
sustainability effectively which leads to the success of the business accordingly. It is highly
important for leader of the Centrica Plc to focus on the latest technology at marketplace in order
to bring highest opportunities for them that leads to enhancement of businesses success. Here,
the respected company that is Centrica Plc must make use of recycling programmes in the
company effectively.
Changing climate along with the requirement renewable sources has ultimately created
concern among utility companies (Engert, Rauter and Baumgartner, 2016). By effectively
emphasising on this, it can be said that it simply develops opportunity for Centrica Plc which
ultimately open ups opportunity for the respective company and supports them in competitive
edge in rightful manner.
The business models that are being used by business association from the long time are
now getting challenged with the latest technologies. These latest technologies are highly
associated with the innovative approaches that ultimately help them out in working according to
environmental concern and making use of the available resources in such a manner that leads to
attainment of organisational success (Engert, Rauter and Baumgartner, 2016). These challenges
are mainly determined as the driving factors for Centrica PLC as it places significant
contribution in the direction of environmental interest.
Sustainability is determined as the effective practice or initiative taken by the company
for improving their business position at marketplace. This respective term is also concerned with
the lucrative practice that ensures that business activities executed at marketplace are not
affecting the environment in any manner (Tukker and et. al., 2017). This simply shows that
sustainability develops range of opportunities for Centrica Plc that ultimately supports business
organisations in developing their market positioning across the globe in adequate manner.
It has been further analysed that government has taken up the responsibility all the
sustainable practices adopted by business organisations must reliable and should affect anyone in
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any manner (Noe and et. al., 2017). Here, it is the core responsibility of Centrica Plc to ensure
that all sustainable practices performed by them must be executed with the legal obligation.
Centrica PLC has undertaken several initiatives for facilitating sustainability within the
company. Centrica Innovation was formed by the corporation in 2017 for determining,
incubating and fostering the introduction of innovations. This organisation focuses over
transformation of broader electricity system through smaller scale of distributed generation
organised and managed near the demand locations and by provision of flexibility within grid to
aid intermittent renewable. Further, this entity also began the Cornwall Local Energy Market
Trial for testing the use of flexible generation as well as storage, demand and rewarding
organisations and local individuals for exercising flexibility in case of energy. Furthermore, the
entity maintains interest in low carbonic and gas fired nuclear plants.
There are some of the main trends like energy storage solution, electrification of
transportation, renewable generation and many other which provides effective contribution in the
adequate production and also shapes distribution of electricity in an appropriate manner. By
acquiring these in appropriate format Centrica Plc can easily attain sustainability and improvise
its business performance at marketplace in adequate manner. Here, it is highly important for
Centrica Plc to upgrade its existing business model for attaining sustainability at market place.
Section #4 Chosen company’s Sustainability Stakeholders
It is recognised that Centrica PLC works collaboratively with 6 primary stakeholder group that
provide assistance to the organisation in promoting sustainability within the confines of the
corporation. Thus, an insight into the sustainability stakeholders for Centrica PLC is gained
beneath:-
Colleagues: These include people who carry out activities within the organisation. By taking
constant feedbacks from the individuals belonging to the organisation, Centrica PLC is able to
develop an organisational culture whereby employees stay motivated and has the potential to
deliver value for the people.
Customers: Customers are the people who make purchases of the products and services sold by
the entity. These may include schools, government, and other business and so on for Centrica
PLC. By being ears to the needs and opinions of customers prevailing in market place, the
concerned corporation is able to develop such offerings which possess the capability to meet the
never ending market demands.
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Investors & shareholders: Investors are the parties which put their money within the company.
Besides this, shareholders are parties which affect or are affected by the decisions of the
corporation. By attaining views and opinions from both these stakeholder groups, Centrica PLC
is able to facilitate growth of business while also incorporating sustainability into the corporate
culture.
Government & regulators: These are the groups which hold the power to regulate the activities
and practices of a business entity. Through the engagement of these stakeholders, the entity is
able to ensure the fulfilment of interests of people.
Suppliers: These are the individuals or companies which provide raw materials to the
corporation. Through the collaboration with the vendors, the entity is able to decrease the risks in
supply areas while also inflating the standards for communities of Centrica PLC.
Communities & NGOs: Community can be defined as the society to which the entity is
accountable for its activities. Further, NGOs are the organisations which operate with the intent
of social welfare. The input received on the part of these stakeholders provides assistance to
Centrica PLC in sharing expertise while developing stronger community for future course of
time.
Section #5 Sustainability Benchmark
Sustainability is the core element of Centrica PLC. It is incorporated by the entity within
its organisational culture so as to encourage the employees to conduct business practices in a
manner such that least harm is caused to the environment as well as the public at large.
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(Source: Our Responsible Business Ambitions 2019, 2020)
As per the above picture, it has been determined that Centrica PLC has pledged to enable the
customers to reduce the emissions as 90% of the carbon emissions of the organisation emerge
from their customer base. This is done to be aligned with the goal of Global Paris Agreement
which is to decrease global warming to an extent of below 2 degree Celsius and pursuing 1.5
degree Celsius. Through the various types of measures undertaken by the company, this utility
organisation has enabled an overall decrease of 2.6mtCO2e of carbon emissions by way of the
unique solutions and facilities delivered by Centrica PLC during the year 2019. This is almost
equal to the emissions stipulated by 900,000 homes within the confines of UK on an annual
basis.
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(Source: Our Responsible Business Ambitions 2019, 2020)
As per the above statistical picture, the aim of Centrica PLC by 2030 is to encourage individuals
to share their skill set through volunteering initiatives throughout a period of 100,000 days.
Further, the entity intends to enable facilitation of 2500 skill development opportunities for
young individuals that do not have jobs or are not pursuing education currently. At present, only
2452 days have elapsed and the quantum of volunteers is 362 young individuals. This entity
invested a sum of £167 million as community contribution in the year 2019. This included
donation made to their charity partners to enhance the quality of life for carers in Carers United
Kingdom and enhance children’ and their families’ lives through Children’s Miracle Network
Hospitals within the confines of North America. Further, the entity provided opportunities to
360 unemployed and young individuals so that they could empower themselves by
incorporating essential employability skills by way of Movement to Work.
Section #6 Recommendations for Managers
As per the information presented above, it has been determined in the light of Centrica PLC that
business managers should constantly conduct training and development session. Such sessions
would provide aid to the entity in acquainting the employees with the importance of
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sustainability so that the workforce takes measures to incorporate the same within their activities
and tasks. Besides this, it is recommended that the firm should emphasize over the provision of
high quality offerings to individuals within market place in order to instil a sense of trust and
loyalty among the people towards the brand.
Section #7 Conclusions
As per the discussion covered in the report above, it has been determined that sustainability
benchmark is stipulated by each and every corporation with the sole motive of ensuring its
contribution to conservation of nature as well as welfare of the public. It ensures that entity
works in the interest of environment. Apart from this, it has been inferred that the business
managers pertaining to any company should gain an insight into this concept for attracting and
appealing to a large base of individuals in market. As a result of this, the firm is able to inflate its
existent positioning in the global marketplace.
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Section #8 References
Books and Journals
Noe, R. A. and et. al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Schaltegger, S., Hansen, E. G. and Lüdeke-Freund, F., 2016. Business models for sustainability:
Origins, present research, and future avenues.
Baumgartner, R. J. and Rauter, R., 2017. Strategic perspectives of corporate sustainability
management to develop a sustainable organization. Journal of Cleaner Production. 140.
pp.81-92.
Engert, S., Rauter, R. and Baumgartner, R. J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production. 112. pp.2833-2850.
Tukker, A. and et. al., 2017. System innovation for sustainability 1: Perspectives on radical
changes to sustainable consumption and production. Routledge.
Doppelt, B., 2017. Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Remondino, F. and Stylianidis, E., 2016. 3D recording, documentation and management of
cultural heritage (Vol. 2). Whittles Publishing.
Breuer, H. and Lüdeke-Freund, F., 2017. Values-based network and business model
innovation. International Journal of Innovation Management. 21(03). p.1750028.
Taneja, S., Pryor, M. G. and Hayek, M., 2016. Leaping innovation barriers to small business
longevity. Journal of Business Strategy. 37(3). pp.44-51.
Online
Our Responsible Business Ambitions 2019. 2020. [Online]. Available Through:
<https://www.centrica.com/media/4194/responsible-business-ambitions-brochure-
2019.pdf>.
Stakeholder Engagement. 2020. [Online]. Available Through:
<https://www.centrica.com/media/4083/stakeholder-engagement.pdf>.
Who We Are. 2020. [Online]. Available Through:<https://www.centrica.com/who-we-are/>.
Sustainability. Our Approach. 2020. [Online]. Available Through:
<https://www.centrica.com/sustainability/our-approach/>.
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Section #9 Appendix from Seminar Diary Notes
1. The Case of Energy
In the modern era, evolution is taking place at a rapid manner owing to the advancements
taking place within the domain of technology. The people pertaining to the current era make
extensive use of technologies that tends to put pressure upon energy development and supplying
companies across the globe. In other words, this implies an increase in overall demand for
energy supply. Such demands subsequently result in continuous fossil fuel burning. It implies
release of Carbon dioxide in the air. These kinds of practices or activities have a significant
contribution towards the occurrence of green house effect upon Earth. Being responsible citizens,
each and every individual living on earth should take measures on an individual level to
optimally utilise the resources so that the scarcity and limitation of resources can be effectively
dealt with. Their responsibilities are not just confined to taking measures on an individualistic
level but to making the other individuals aware of the actual situation of the planet and the need
to adopt measures through which resources can be preserved for future generation.
2. The Case of Waste and Limits of Growth
The constant increase in population across the globe is negatively affecting the usage of
resources. The increment in the quantum of individuals imply more demand for the resources
directly putting pressure or creating demand for the same in market place. As a direct
consequence of this, the available resources are getting drained in a rapid course of time. This
can be analysed through an example. Considering a situation whereby the number of individuals
in a city is continuously enhancing, it implies increased requirement for urban area as larger
quantum of people need a play to stay. This will make the area being used by builders more than
farmers, for building homes to house extra number of individuals. As a consequence of this, the
growth of crop gets reduced while the usage of vehicles gets enhanced in a significant manner.
Also, it indicates increment in production of carbon dioxide. It results in creation of green house
effect that affects crop production, climate and supply of water in the long run.
3. Clean and Green Innovation: Closing the Loop
The respective section talks about study of waste. It can be said that consumers are
wasting available products as well as the resources for enhancing their satisfaction level. In order
to improvise the same it’s important for consumers to develop their understanding over the
existing resources and its availability in positive manner so that they can effectively make use of
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alternative resources in order to satisfy their requirements. In order to overcome this in adequate
manner recycling is determined as the effective way that contributes in securing scarce resources.
This also provides support in storing the available resources for the next generation.
4. The case of Zero Emission Vehicles (ZEV)
Capital investment is determined as the effective way through which every automobile
industry can easily boost up their business performance by bringing innovation for their success.
With reference to the present context car has taken up significant place in every individual’s life
and also become an essential commodity that is required to satisfy them in appropriate form. But
at the same time it is creating huge pollution which is affecting environment as well as health
condition of human beings too in the form of respiratory diseases like asthma and many others.
For reducing these negative impact automobile sector had introduced green vehicles which are
hundred percent free from pollution. At the same time it is highly important for the market leader
of the American industry to introduce new cars at affordable prices so that every can afford it
and live in pollution free environment.
5. Business Model Innovation for Sustainability
Business models are required to take a range of initiatives in order to gain sustainability
at marketplace. Here, it is highly important for companies to bring execute their business in such
a manner so that they can serve its customers in a lucrative manner which enhances their
satisfaction and also help company in gaining competitive edge. Here, it is highly important for
the companies to an initiative towards adopting several ways in the form of marketing which
ultimately helps them out in awarding customers about the scarce resources and supports them in
influencing to use these resources in the adequate manner. In these marketing campaigns the
company can also easily aware its customers about the sustainable practices that have been
adopted by the company which ultimately leads to the creation of effective customer base.
6. Critiquing a Sustainability Report
Companies across the globe are making use of their extensive goodwill and large scale
networking to make people aware of significance of sustainability which is regarded as pillar to
long term growth and survival in market place. The primary reason why the organisations are
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eager upon communicating to the people about the stability of the entity is that it assures the
people of their existence in market for a considerably longer period of time. It provides
assistance in developing a strong relation with consumers and facilitating their retention in the
long run. Further, the awareness about changes introduced by a company is created by way of its
sustainability reports. However, such alterations require massive funds and extensive time to be
invested by the firm.
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