Sustainability Consulting

NRG Energy, Inc. faced significant challenges as a large power generation company, particularly regarding its high-emission coal power plants and the need to transition to a lower carbon footprint. Recognizing the urgency of addressing emissions, NRG aimed to align its business strategy with a science-based target that would not only reflect its commitment to sustainability but also make economic sense. The company understood that the long lifespan of its power generation assets necessitated a long-term vision, and thus, it sought to set an ambitious absolute emissions reduction goal rather than an intensity target, which would not sufficiently address the need for substantial carbon reduction.

The tailored solution involved a comprehensive approach to setting and implementing the science-based target. NRG leveraged its existing data and modeling capabilities, supported by strong leadership and external guidance from organizations like CDP. The process of setting the target included extensive internal communication to ensure that all stakeholders understood the implications of transitioning away from high-emission plants. This involved a year-long effort to engage employees, reassuring them about job security and offering retraining for those affected by plant transitions. The collaborative nature of this initiative fostered a cultural shift within the company, emphasizing the importance of sustainability across all levels.

As a result of these efforts, NRG Energy committed to reducing absolute scope 1, 2, and scope 3 business travel greenhouse gas emissions by 50% by 2025 and achieving net-zero emissions by 2050, using 2014 as the baseline year. This ambitious target not only positions NRG as a leader in the energy sector but also addresses the growing demand from customers and investors for sustainable practices. The proactive stance taken by NRG has garnered attention across various industries, inspiring other companies to follow suit in their sustainability efforts.