Centrica Plc: Innovation, Sustainability, and Stakeholder Report

This report provides a comprehensive analysis of Centrica Plc's approach to innovation and sustainability. It begins with a personal reflection on the importance of sustainability in the modern business environment, highlighting the impact of industrialization, global warming, and the role of governmental regulations. The report then delves into Centrica Plc's operations, emphasizing its role in the energy sector and its commitment to sustainable practices. It examines Centrica's initiatives, such as Centrica Innovations, and its focus on renewable energy sources and smart grid technologies. The report also explores relevant literature on sustainability in the energy industry, the company's key stakeholders (customers, colleagues, investors, government, suppliers, communities), and provides recommendations for managers to enhance sustainability efforts, such as employee training and high-quality product delivery. The conclusion reinforces the significance of sustainability for achieving a competitive edge in the marketplace.

Innovation and the
Sustainable Organisation

Contents
INTRODUCTION...........................................................................................................................1
PART A...........................................................................................................................................1
Section # 1: Reflection...........................................................................................................1
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 #6 Recommendations for Managers..........................................................................5
Section #7 Conclusions..........................................................................................................6
Section #8 References............................................................................................................6
Section #9 Appendix from Seminar Diary Notes...................................................................7

INTRODUCTION
Innovation is the creation of new production or addition of value to the existing products
and services with a view to gain the attention of large number of people. In today’s modern era
and hyper competitive era, the organisations ensure that they undertake steps to undertake
innovation in a manner such that sustainable practices can be integrated along with it. The
present report is based on Centrica Plc which is a multinational company dealing in energy and
related services, having its headquarters within Windsor, United Kingdom. The major activity of
this organisation is to supply gas and electricity to companies as well as consumers of Ireland,
UK and North America. This report is divided into two parts. The first part consists of reflection.
The second part comprises of overview of company and its sustainability offerings along with
literature on sustainable practices. Also, it comprises of organisation’s sustainability benchmark
and stakeholders. Further, it includes recommendations for managers as well as diary notes of
seminars.
PART A
Section # 1: Reflection
In today’s modern and hyper competitive era, with fast development of industrialisation,
concerns associated with issues or challenges such as global warming, pollution and renewable
sources have gained massive awareness as they are found to largely be affecting the ecosystem in
a negative manner. With a view to put an end to unethical and illegal business approaches,
practices and processes and promoting the concept of sustainability, governments all across the
globe have enforced several laws and legislations like the Environment Act 1995, Environmental
Protection Act 1990 and more such types of regulations. During the tenure of taking lectures, I
gained knowledge by way of a Brundtland report formulated by the World Commission of
Environment and Development. As per the results and findings of this report, organisations
should lay emphasis upon certain essential concepts and practices for promoting, fostering and
supporting the agenda of sustainability within corporate world. This comprises of latest and
innovative technologies, ethical procedures, practices and approaches, innovative techniques
sustainability and many other such concepts. By facilitating the execution of technological
advancement, companies can largely enhance their operational and functional activities to come
up with eco-friendly and green offerings. In the modern era, the population has largely become
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aware of the concept of sustainability and thus, it now prefers to acquire products and services
from such entities which provide eco friendly or organic and sustainable products. Thus, with the
view to gain the attention of people as well as to retain them for a long duration of time, it is
significantly relevant for businesses to come up with effective software so as to launch products
while incorporating innovations within them.
In order to gain a strategic and competitive edge over rival firms, organisations should also
execute strong and effective sustainable practices and/or approaches such as reduction of
wastages, minimisation of carbon emissions, making significant investment in Corporate Social
Responsibility initiatives and many more. Reduction of waste will assist in minimising the
impact of industrialisation upon the natural ecosystem, thereby also minimising the carbon
footprints from manufacturing. While carrying out CSR activities, organisation will be able to
improve its global brand image within the society and the target audience. Further, it also aids in
promotion and encouragement of sustainable practices within an organisation with a view to
target the right audience more effectively and efficiently. It is essential for companies to focus
upon certain tools and techniques to gain competitive advantage. These comprise of analysis of
external factors that impact upon business operations and functioning, research and development,
competitive analysis etc. in this regard, Porter’s five forces model provides assistance to
organisations in analysing the bargaining power of suppliers and buyers, threats of a new
industrial entrant, threat of substitute products and rivalry position through the help of which
appropriate strategies can be effectively developed. By making use of such kinds of tools and
techniques, an entity can ensure its long term existence in competitive market place. Besides this,
the classroom lectures also helped me in gaining knowledge about the changes that must be
taken up by businesses with a view to foster sustainability within the organisational premises. In
this relation, companies can make use of solar technology, optimise water utilisation, human
resource management with a view to enhance the overall productivity and performance of
business. This would aid in inflating the life cycle of products and services for a long period of
time within a market. Thus, from overall study, I gathered knowledge base regarding the concept
of sustainability through the use of innovation together with the ways in which it will prove to be
advantageous for organisations in running the business in an effective manner.
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PART B
Section #2 Company and its sustainability offerings
Centrica Plc is one of the biggest gas supplying companies that provide offerings to local
people of United Kingdom and also one of the biggest electricity supplying entities functioning
under the name of British Gas within Wales and England and Scottish Gas within Scotland. This
organisation holds Bord Gáis Energy within Ireland. It also actively provides household facilities
inclusive of plumbing. This organisation is listed on LSE and is also a part of FTSE 100 Index.
This organisation has been well renowned for the measures undertaken by it in order to promote
the subject of sustainability across the globe. It has gained massive recognition from
government, other companies and consumers for its effective and strong vision towards adoption
of sustainable approach. This cause has always been fostered and supported by Centrica Plc as
the enterprise looks upon it as a contribution towards the welfare of society and conservation of
environment.
Centrica has adopted a number of innovative measures with a view to bring about
sustainability across the organisational premises. In this regard, the company formed Centrica
Innovations within the year 2017 with the help of an initial investment of initial £100m with a
view to determine, incubate and bring about new innovations as well as technologies. Over the
course of time, the organisation has been committed to provision of new and unique offerings to
consumers and ensuring to stay at the heart of technological advancements that would speed up
the energy transition. Further, the enterprise emphasizes upon transformation of broader
electricity system or commonly regarded as ‘grid’ by way of smaller scale of distributed
generation organised and managed near the demand locations and by provision of flexibility
within grid to aid intermittent renewable. The company is also a top market player in relation to
storage projects based upon creation of large scale centralised batteries, for instance: 49MW
Roosecote battery store situated at the location of Cumbria. Centrica Plc has also started the
Cornwall Local Energy Market Trial to carry out testing upon 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 interests within the areas of
nuclear plants that are low-carbonic as well as gas-fired.
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Section #3 Relevant Literature
The understanding of overall gas and electricity supply industry is changing in
accordance with the implications that sustainability has upon businesses. In this regard, it is
essential for executive leadership of Centrica Plc to also pay more emphasis upon the new
innovations and technologies that constitute opportunities for the long term economic viability of
various types of utilities (SUSTAINABILITY: “AN IN-DEPTH LOOK AT VALUE CREATION”,
2019). For this, recycling programmes should be set up within the organisational premises.
The climate change as well as need for renewable sources has become the cause of
concern for utility companies. Looking upon this aspect serves as the key opportunity for
Centrica Plc to undertake effective measures and gain strategic edge in market (Is the energy
industry meeting its sustainability goals?, 2019).
The existing business models are constantly being challenged and further, new
technologies and innovative approaches are being taken up with a view to effectively respond to
the environmental concerns together with the market dynamics and huge prices of creating
unconventional resources (Smart technologies and advanced solutions are required, 2019).
These challenges should be considered as driving factors by Centrica Plc with a view to give
significant contribution towards environmental interests.
Sustainability has become a concern associated with adopting the most appropriate and
suitable technology for enhancing the safety as well as environmental performance of an
organisation (Oil and gas production and oil refining sector, 2019). Thus, sustainability presents
lucrative opportunities for Centrica Plc to enhance the market position across the globe.
The governments are increasingly taking up the responsibility of ensuring reliable
sustainable practices undertaken by organisations under accountable regulatory frameworks
(Utilities (water, gas, electricity) sector, 2019). In this regard, Centrica Plc also has the potential
to look into this aspect and consider sustainability as a legal obligation.
The implementation of deployment of smart grids, renewable generation, energy storage
solution, distributed energy resources (DER) and electrification of transportation are some of the
key trends that have been shaping the transformation of production, transmission as well as
distribution of electricity (Can Energy Be Secure, Affordable, and Sustainable as the Sector
Transforms?, 2019). These key trends provide opportunities for Centrica Plc and this
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organisation has the potential as well as scope to undertake measures to execute sustainability
across the entity.
It is expected that growth of renewable resources will drive further growth within battery
storage capacity while simultaneously declining the installation cost leading to disruption of
traditional business model of power generation as well as distribution (Gas & Electricity, 2019).
Centrica Plc should also update its business model so that sustainable approach can be
incorporated within day to day activities.
Section #4 Chosen company’s Sustainability Stakeholders
Centrica Plc works in coordination and cooperation with six stakeholder groups with a
view to promote the concept of sustainability within the organisational premises. Such
sustainability stakeholders are examined as under:-
Customers: Listening to the views and opinions of customers allows the company to provide
such products as well as services which possess the potential to satisfy their rapidly evolving and
changing needs.
Colleagues: Feedback from our people helps create a culture where everyone is motivated and
able to deliver for our customers.
Investors & shareholders: Views from investors and shareholders support the company to run
and grow our business while generating sustainable returns.
Government & regulators: Engaging government and regulators helps the energy system
function in the interests of customers.
Suppliers: Collaboration with suppliers assists in reducing the organisational risk within the area
of supply chain and thereby raises the standards across the company’s communities.
Communities & NGOs: Input from NGOs as well as communities enables the company to share
expertise as well as create stronger communities for future.
Section #6 Recommendations for Managers
From the above made discussion, it has been analysed that sustainability is considered as
the most important way through survival of company becomes easier at market place. With
reference to Centrica, it is recommended to its manager to conduct some training and
developments sessions through which information about sustainability can become common
among employees and they could also work hard for attaining it quickly. Along with this, it is
also advised to company to emphasis on providing high quality products (gas and electricity) to
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customers so that they their trust on Centrica Plc can be enhanced. This will ultimately contribute
in the enhancement sustainability of the company at marketplace.
Section #7 Conclusions
On the basis of above discussion, it can be concluded that sustainability is a concept that
must be taken into account by the business organisations so as to achieve a competitive edge
over rivals and to gain the attention of aware customers. Further, it has been analysed that there
is a sustainability benchmark that is set by every organisation so as to ensure significant
contribution towards the welfare of society and preservation of environment. Besides this, it has
been evaluated that the managers of every global and well reputed organisation must look into
this concept with a view to gain the attention of increased number of people, thereby, enhancing
the position of company in market place.
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
SUSTAINABILITY: “AN IN-DEPTH LOOK AT VALUE CREATION”. 2019. [Online]. Available
Through:<http://eprijournal.com/sustainability-an-in-depth-look-at-value-creation/>.
Is the energy industry meeting its sustainability goals?. 2019. [Online]. Available
Through:<https://www.weforum.org/agenda/2018/11/the-energy-trilemma-are-we-
meeting-our-sustainability-goals/>.
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Smart technologies and advanced solutions are required. 2019. [Online]. Available
Through:<https://new.siemens.com/in/en/company/topic-areas/sustainable-energy/oil-
gas.html>.
Oil and gas production and oil refining sector. 2019. [Online]. Available
Through:<https://www.ilo.org/global/industries-and-sectors/oil-and-gas-production-oil-
refining/lang--en/index.htm>.
Utilities (water, gas, electricity) sector. 2019. [Online]. Available
Through:<https://www.ilo.org/global/industries-and-sectors/utilities-water-gas-
electricity/lang--en/index.htm>.
Can Energy Be Secure, Affordable, and Sustainable as the Sector Transforms?. 2019. [Online].
Available Through:<https://www.brinknews.com/can-energy-be-secure-affordable-and-
sustainable-as-the-sector-transforms/>.
Gas & Electricity. 2019. [Online]. Available Through:
<https://www.ethicalconsumer.org/energy/shopping-guide/gas-electricity>.
Section #9 Appendix from Seminar Diary Notes
1. The Case of Energy
In today’s world evolution has been raised at highest speed because of changing
technology. Individuals belonging to this century are using technology at high level which
automatically develops requirements of more energy to be supplied so that demand could be
fulfilled. The increasing requirement automatically becomes main reason of constant burning of
fossil fuels that result in release CO2. All these activities contribute equally into green house
effects on Earth. As being responsible humans, it is the responsibility of each of us to take
certain actions our own level in order to use available scarce resource in optimum manner. Along
with this, it can be said that the responsibility is not only limited to take best possible actions at
own level but it is also required by every individual to aware maximum people about actual
situations and also convince them to take initiative of adopting all possible preventive action. It
can be said that every single effort can contribute into saving of the energy. This saving will
secure energy and resources for future generations.
2. The Case of Waste and Limits of Growth
Increasing population is placing negative impact over the resources as numbers of people
who are consuming them are increasing day by day. This is because, when number of people
increases then their requirements also increases. As a result, available resources are consumed in
faster manner now. This can be well understood with the help of an example, for instances
people in a particular city are increasing. This will develop requirement of more urban area as
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they requires place to stay. As a result, the surrounded area which was being used by people for
farming is now used by builders to build home for extra population. This results in reduction of
crop growth but at the same it will increase use of vehicles and increase in production of CO2.
This enhancement converts into raise in green house effect that impacts upon both the climate as
well crop production and water supply.
3. Clean and Green Innovation: Closing the Loop
This section of the study is related to the waste. It has been analysed that consumers of
the resources are wasting many of the available products without even using them in effective or
satisfactory manner. It is essential for every consumer to understand importance of natural
resources and use alternative way to use them in effective manner. One of the common ways is
related to recycling as it is effective method through which scarce resources can be used in the
effective manner as the users are consuming them in many alternative ways. This secures
precious resources and helps individuals in saving it for next generations.
4. The case of Zero Emission Vehicles (ZEV)
Automobile industry requires investments at every level as with the changing time
numerous of innovation are taking place in the car such as replacement of petrol and diesels with
the batteries. In today’s time car became one of the most common commodity that is being
required by all humans in order to satisfy their needs. But their satisfaction is becoming is
trouble for them nature as it has increased pollution level which have also created many type of
respiratory diseases like asthma and many others. For this, automobile industry has introduced
green vehicles which do not require diesels to work. But according to the studies, it has been
analysed that these green vehicles are also not 100% free from burning of fuels. Therefore, it is
required by the automobile industry to focus on vehicles that are operated because of hydrogen
fuels. Along with this, companies are also required to launch these vehicles at low cost in order
to influence interest of all as they are affordable.
5. Business Model Innovation for Sustainability
Sustainability in the company cannot be attained by single initiative but instead it
requires support of the every available stakeholder to work collaboratively in order to understand
required changes so that desired sustainability can be achieved by companies. Therefore, for
attaining sustainability it is required by all to understand its actual need and place equivalent
initiative for its quick achievement. For this, it is required by consumers to understand how
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waste can be reduced, investigator have to find out innovative technique and technology to
become sustainable, producers are required to restrict their spending etc. In addition to this while
talking about businesses companies are required to carry out some campaign, inform consumers
about sustainability in order to aware them about its importance and value in the growth of the
company.
6. Critiquing a Sustainability Report
Business organisations are developing their availability of information to customer and
also alerting them about the sustainability. The term sustainability is mainly considered as the
major pillar of every company which helps them in enhancement of their survival. These
companies also know about the importance sustainability. The main reason behind informing
customers about stability of the company is to assure them that the company is reliable. The
sustainability also helps company in building up of relationship of customers towards them and
retaining these customers for longer period of time with their company. Along with this, the
company also aware its customers about the changes through the announcement of sustainability
report. But in order to implement these challenges the company requires large funds and also
needs feasible time limit so that work can be effectively.
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