Slides from Greg Kandankulam, Senior Manager, Sustainability, NRG, presented at the Sustainable Purchasing Leadership Council's 2018 Summit in Minneapolis, MN.
6. 6
NRG ENERGY, INC. PROPRIETARY AND CONFIDENTIAL
Supply chain
goals and
actions
1.CDP Supply Chain
Program
2.Supply chain carbon/water
footprint
3.Supplier risk assessment
Actions
4.Natural Gas Supply
Collaborative
Achieve GHG & water disclosures
from 80% of major suppliers by 2020
Reduce supply chain carbon and
water intensity 25% by 2025
Develop and implement NRG
responsible sourcing principles
Supply Chain Goals
SUSTAINABLE PURCHASING LEADERSHIP COUNCIL
7. 7
NRG ENERGY, INC. PROPRIETARY AND CONFIDENTIAL
1. CDP Supply Chain
Program
Approach:
- Asked over 300 suppliers
representing 90% of spend to
disclose climate and water
information through CDP
Key results:
- Became the only energy company
named to CDP’s supplier
engagement leaderboard
- Achieved a first-year supplier
response rate of 34% for climate and
22% for water
SUSTAINABLE PURCHASING LEADERSHIP COUNCIL
8. 8
NRG ENERGY, INC. PROPRIETARY AND CONFIDENTIAL
2. Supply chain
carbon/water
footprint
NRG partnered with Trucost to calculate
its supply chain footprint and found:
- Fossil fuels account for 58% of
spending, but 94% of supply chain
GHGs and 71% of water
- Transitioning from coal to gas could
increase supply chain footprint
SUSTAINABLE PURCHASING LEADERSHIP COUNCIL
9. 9
NRG ENERGY, INC. PROPRIETARY AND CONFIDENTIAL
3. Supplier risk
assessment
NRG assessed sustainability risk across 10
categories
SUSTAINABLE PURCHASING LEADERSHIP COUNCIL
SOCIAL RISKS
- Employment/labor risk
- Local communities/reputation risk
- Occupational health and safety risk
- Compliance risk
- Tier 2, Tier 3 supplier risk
ENVIRONMENTAL RISKS
- Pollution (effluents and waste)
- GHG and energy intensity
- Exposure to climate change /extreme weather
- Water supply risk
- Land use and biodiversity risk
Coal Ngas Gas
Trans
Oil O&M Coal
Trans
EPC SGA
RiskLevel
Social Risk Environmental Risk
Spend Categories
Cat 1 Cat 2 Cat 3 Cat 4 Cat 5 Cat 6 Cat 7 Cat 8
11. 11
NRG ENERGY, INC. PROPRIETARY AND CONFIDENTIAL
3. Supplier risk
assessment
SUSTAINABLE PURCHASING LEADERSHIP COUNCIL
Puente Power
Project Oxnard, CA
Aliso Canyon Gas Leak
Los Angeles, CA
12. 12
NRG ENERGY, INC. PROPRIETARY AND CONFIDENTIAL
4. Natural Gas
Supply
Collaborative
Approach
Joined with companies representing 29%
of gas deliveries and 13% of gas-fired
generation in the U.S.
Issued a white paper calling on gas
producers to enhance disclosure of data
involving:
1. Methane and air emissions
2. Water management
3. Chemical use
4. Community and safety
SUSTAINABLE PURCHASING LEADERSHIP COUNCIL
Available at
www.mjbradley.com/ngsc
14. 14
Conclusion
- Data-driven approach revealed
natural gas to be a key priority
- NRG cannot accomplish its
supply chain carbon and water
goals without engaging natural
gas producers
- Responsibly produced gas is
critical to ensuring long-term
license to operate
15. NRG Energy Inc.
910 Louisiana
Houston, TX77002
Greg Kandankulam
Greg.kandankulam@nrg.com
914-393-3677
Thank you!