ESG: NRG’S TRANSFORMATION NRG has been heavily


involved in Houston, Texas, where it has its headquarters


NRG Energy’s 2025 GHG reduction target


50%


These partnerships highlight the ways in which NRG has supported the energy transition over the past decade by simplifying the provision of retail renewable energy. At the same time, it is undertaking its own transformation from an independent power producer to a leading integrated energy and home services company. NRG’s focus on serving the customer and its modern approach to power is paving the path towards a more sustainable energy future.


This transformation aligns NRG’s emissions-reduction goals with United Nations (UN) Intergovernmental Panel on Climate Change guidance to limit global warming to 1.5°C in the post-industrial era.


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It is aiming to reduce its carbon footprint by 50% by 2025, from its 2014 baseline, on the way to achieving net zero by 20503 Figure 1 on page 79).


a restructuring in 2017 and other announcements.4


(see


To achieve that goal, the company is decarbonising its existing business lines by replacing fossil fuel generators with more efficient gas-fired generators, and retiring those assets as they approach their economic end of life. Currently, gas-fired plants make up about 43% of the portfolio, with coal-fired facilities accounting for 34%.


NRG has also sold off fossil fuel assets, including 20.2 gigawatts (GW) of generation capacity, through its divestiture of its former subsidiary GenOn Energy, to creditors via


And, to support the


move away from its power-producing roots towards an asset-light energy retailing business, NRG completed its acquisition of Direct Energy in January 2021 from British utility holding company Centrica in a US$3.625bn all-cash transaction.5


Uniting sustainable goals with financing strategy In addition to the strides NRG has made in reducing the environmental impact of its operations, the company has also sought to tie its financing to the same goals. Its acquisition of Direct Energy marked the first time that a US issuer used a sustainability-linked bond


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