Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Our Environment
• Our People
• Our Community

Environmental Achievements

• Group emissions of SO2, NOx and Total Particulates decreased by around 32%, 25% and 15% respectively. CLP Group’s total CO2 and CO2e emissions decreased by around 12% compared to 2014.
• Carbon intensity of the Group’s generating portfolio improved from 0.84 kg CO2/kWh in 2014 to 0.81 kg CO2/kWh in 2015.
• Total renewable energy generation capacity and non-carbon emitting generation capacity were 16.8% and 19.5%, respectively.

Social Achievements

• Zero fatalities for employees and contractors at majority-owned assets or assets under operational control.
• Number of Lost Time Injuries improved from 23 cases in 2014 to 16 cases in 2015.
• Combined TRIR of CLP employees and contractors fell from 0.41 in 2014 to 0.25 in 2015.
• Successfully conducted the “Power Your Love” programme, saving 9.5 million kWh of electricity.

Governance Achievements

• No convicted cases of corruption.
• Six breaches of the Code of Conduct (2014: seven).
• Issued a CLP Competition Compliance Manual and conducted an extensive staff engagement programme on anti-competition law.

Climate Goals & Targets

Environmental Challenges

• Managing the energy transition, balancing fossil fuel generation with renewable energy sources.
• Regulatory and political risk for Hong Kong business.
• Energy market challenges in Australia.
• Major accident risk at construction sites or operating plants.
• The great divide in progress between developed and developing nations in tackling climate change.

Mitigation Strategies

• Working closely with governments and communities to facilitate an orderly transition to a low carbon economy.
• Targeting half of investments outside Hong Kong in renewable and non-carbon emitting energy.
• Using high-efficiency coal-fired technology in developing markets.
• Process improvements at Yallourn Power Station to prevent ash slurry discharge.
• Diversified approach: developing renewable energy capacity and thermal power only where needed, using best available technologies.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Small-scale distributed renewable energy
• Enhanced customer experience

Reporting Standards

Frameworks Used: GRI G4 Core option, Electric Utilities Sector Disclosures, Hong Kong Stock Exchange ESG Reporting Guide

Third-party Assurance: PricewaterhouseCoopers

UN Sustainable Development Goals

• 7
• 13

Environmental Metrics

ESG Focus Areas

• Climate change mitigation and adaptation
• Demand for renewables
• Changing energy mix
• Technology as enabler and disrupter
• Changing society

Environmental Achievements

• Reduced carbon intensity to 0.66 kgCO2/kWh (equity plus long-term capacity and energy purchase basis)
• Increased renewable generation capacity to 2,387MW (equity) + 652MW (long-term purchase)
• Commissioned a 550MW combined cycle gas turbine (CCGT) unit in Hong Kong
• Completed construction of CLP Laizhou II wind project (49.5MW equity MW)

Social Achievements

• Launched Power Connect program assisting around 20,000 Hong Kong households
• EnergyAssist program in Australia providing assistance for customers experiencing financial hardship
• Women in leadership increased to 22.9 percent
• Women in engineering increased to 11 percent

Governance Achievements

• Developed Operational Technology (OT) Cyber Security Policy
• Established a specialist team of cyber security professionals
• Implemented a Data Breach Response Plan in Australia
• Completed review and updating of key control policy/procedures

Climate Goals & Targets

Environmental Challenges

• Financial and economic uncertainty
• Effects of climate change (extreme weather events)
• Social unrest from inequality
• Technological disruptions
• Cybersecurity risks and data protection
• Competition for STEM-qualified individuals
• Safety incidents (1 employee and 1 contractor fatality)

Mitigation Strategies

• Announced new decarbonisation targets (Climate Vision 2050)
• Investing in advanced renewable technologies, battery storage, and demand-side management
• Strengthening cyber resilience through technology upgrades and training
• Committed to attracting diverse and high-quality talent
• Formulated a new Group-wide HSE Improvement Strategy
• Implementing a comprehensive risk management oversight

Supply Chain Management

Supplier Audits: 62 strategic suppliers assessed against sustainability requirements

Responsible Procurement

• CLP Group Procurement Strategy
• CLP Group Procurement Standard (GPS)
• Responsible Procurement Policy Statement (RePPS)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Potential stranded fossil fuel assets

Opportunities

• Growth in renewable energy
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option, GRI G4 Electric Utilities Sector Disclosures, Hong Kong Stock Exchange ESG Guide, TCFD, IIRC

Certifications: ISO 14001

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• SDG 7
• SDG 8
• SDG 9
• SDG 13

CLP's initiatives align with these SDGs through decarbonization efforts, community investment, innovation, and workforce development.

Sustainable Products & Innovation

• Smart meters
• Smart Energy Connect
• Renewable Energy Certificates (REC) scheme
• PureEnergy (Australia)

Awards & Recognition

• Sustainability and Social Responsibility Reporting Award (HKICPA)
• ESG Report of the Year, Best in ESG, Best in Reporting (BDO ESG Awards)
• Sustainability Reporting Award (Hong Kong Management Association)
• Best Risk Management Solution (Adam Smith Awards Asia)
• Family Friendly Employers award (Hong Kong)
• Fair Wage Certificate award (Hong Kong)
• Good MPF Employer award (Hong Kong)

Environmental Metrics

ESG Focus Areas

• Climate change
• Safety
• Community engagement
• People (Employee wellbeing and diversity)
• Supply chain management

Environmental Achievements

• 25.1% Non-carbon generating energy capacity (as a percentage of total capacity)
• 76% Percentage of operating earnings from non-carbon generating assets and transmissions, distribution and retail
• 44% Percentage of capital investment in non-carbon generating assets and transmissions, distribution and retail
• 660MW Capacity of energy storage solutions (pumped hydro and battery storage)
• Reduced GHG emissions intensity to 0.57 kg CO2e/kWh
• 100% utilisation rate of ash generated at Jhajjar Power Station

Social Achievements

• Launched Hong Kong’s largest battery energy storage system with the Airport Authority Hong Kong
• Promoting energy efficiency with a range of innovative solutions and installing smart meters
• HK$91m Investment in innovations to support customer solutions development
• HK$15m Total donations
• 1,580,000+ Direct beneficiaries of community programs
• 30.5% Women in leadership positions
• 51.6 Average training hours per employee
• Launched Group Labour Standards

Governance Achievements

• Successfully developing Hong Kong’s largest battery energy storage system with the Airport Authority Hong Kong
• Updated its Code on Corporate Governance to reflect the requirements under the Rules Governing the Listing of Securities issued by The Stock Exchange of Hong Kong Limited (HKEx)
• Conducted a materiality assessment process to determine the material ESG topics for reporting purposes
• Reviewed the new requirements and CLP's corporate governance practices on the Hong Kong Stock Exchange's amendments to the Main Board Listing Rules
• Conducted an internal Board Survey
• 18 breaches of the Code of Conduct reported, none financially or operationally material

Climate Goals & Targets

Environmental Challenges

• Continuation of the COVID-19 pandemic
• Global supply chain disturbances
• Widening wealth gaps
• Increased cyber threats
• Negative impact of climate change
• Regulatory uncertainty
• Competition from non-traditional utilities
• Water scarcity in some regions
• Cybersecurity threats
• Climate change impacts on assets

Mitigation Strategies

• Strengthened sustainability and financial reporting
• Updated Climate Vision 2050 with a commitment to achieve net-zero emissions by 2050
• Brought forward the date of the complete phase-out of coal-fired generation assets to 2040
• Set new science-based targets for 2030
• Strengthened risk management technology and innovative adaptation practices
• Updated climate change risk assessment of all assets in Hong Kong
• Developed a security risk management strategy
• Planned a cyber monitoring centre in Shenzhen
• Promoting energy efficiency with a range of innovative solutions and installing smart meters
• Investing in health, wellbeing, and strengthening resilience of employees
• Implementing the necessary changes set out by the 2021 HSE Improvement Strategy

Supply Chain Management

Supplier Audits: Sustainability risk assessments for all suppliers of critical projects (67% of total procurement project spend)

Responsible Procurement

• CLP’s Responsible Procurement Policy Statement
• EnergyAustralia’s Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Investment in clean electricity infrastructure
• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB Standards for Electric Utilities & Power Generators, Integrated Thinking Principles, Integrated Reporting Framework, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: PricewaterhouseCoopers (PwC)

UN Sustainable Development Goals

• SDG 7
• SDG 13

CLP's initiatives contribute to affordable and clean energy and climate action

Sustainable Products & Innovation

• Smart meters
• Battery energy storage systems

Awards & Recognition

• CII-National Awards for Excellence in Water Management
• Workplace Giving Australia’s 2021 awards for excellence
• Good Mandatory Provident Fund (MPF) Employer Award
• Best All-round MPF Employer Award
• Best ORSO (Occupational Retirement) Scheme Award

Environmental Metrics

ESG Focus Areas

• Shaping and executing the transition to net zero
• Bolstering energy security and reliability
• Aligning business activities with community, employee and customer expectations
• Reinforcing resilience in a changing operating environment

Environmental Achievements

• Reduced GHG emission intensity of electricity sold to 0.55 kg CO2e/kWh (compared to 0.57 kg CO2e/kWh in 2021)
• Reduced absolute annual greenhouse gas (GHG) emissions by around 10% compared with 2022 levels on an equity plus long-term capacity and energy purchase basis after divestment of coal-fired Fanchanggang Power Station
• Gas Turbine Upgrade Project at Black Point Power Station avoided emissions of 300 kt of CO2 and 0.4 kt of NOx in 2022
• Achieved all three air emission targets (NOx, SO2, PM)

Social Achievements

• Launched a new Supplier Code of Conduct
• Implemented a fit-for-purpose operating model in Hong Kong and Mainland China
• Offered more in-house permanent roles to selected labour supply workers in Hong Kong
• Launched various community support programmes with more than HK$220 million funding

Governance Achievements

• Updated CLP Code on Corporate Governance to reflect new requirements under the Corporate Governance Code
• Refreshed the composition of CLP Holdings Board Committees
• Set target for female Directors representation on the CLP Holdings Board to 30%

Climate Goals & Targets

Environmental Challenges

• Rising geopolitical tensions and the Russia-Ukraine war impacting global energy markets
• High and unstable fuel prices
• Cable bridge fire incident in Hong Kong affecting electricity supply to 175,000 customers
• Significant gas shortage in Australia

Mitigation Strategies

• Adopted a double materiality approach to assess business sustainability
• Exercised prudent cost management while ensuring reliable access to energy
• Immediately began work to restore power supply after the cable bridge fire incident
• Minimised the impact of fuel cost fluctuations and maintained tariffs at a reasonable level
• Implemented various air emission control measures and upgrading infrastructure with advanced emissions reduction technology

Supply Chain Management

Supplier Audits: All critical projects (51% of total procurement project spend) underwent sustainability risk assessments.

Responsible Procurement

• Supplier Code of Conduct
• Responsible Procurement Policy Statement
• Sustainability risk assessments for critical projects

Climate-Related Risks & Opportunities

Physical Risks

• Extreme heat
• Flash rain
• Coastal flooding
• Super typhoons
• Floods
• Storms

Transition Risks

• Evolving government policies
• Mainland China Emissions Trading Scheme (ETS)

Opportunities

• Investment in clean electricity infrastructure
• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, GRI G4 Electric Utilities Sector Disclosures, Integrated Thinking Principles, SASB Standards for Electric Utilities & Power Generators, TCFD recommendations

Certifications: ISO 14001:2015

Third-party Assurance: PricewaterhouseCoopers (PwC)

Sustainable Products & Innovation

• Cooling-as-a-Service (CaaS)
• Solar-as-a-Service (SaaS)
• Integrated Energy-as-a-Service (IaaS)
• Battery Energy Storage System (BESS) as a Service

Awards & Recognition

• Privacy-Friendly Awards 2021 Gold Certificate
• MPF Employer Award 5 Years+ Award
• e-Contribution Award
• Best All-round MPF Employer Award
• Best ORSO (Occupational Retirement) Scheme Award
• Hong Kong Best Member Communications Award
• The Most Attractive Employer by Shixiseng
• Best Corporate Wellbeing Programme Award
• Top Happiest Culture Award
• Association of Energy Engineers's Innovative Energy Project of the Year International Award 2022
• Outstanding Corporate Award
• Gold Award of the Volunteer Hour Award for Corporate

Environmental Metrics

ESG Focus Areas

• Climate Change
• Community Engagement
• Employee Well-being
• Supply Chain Management
• Resource Efficiency
• Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: HKEx ESG Reporting Rules and Guides

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced the Group’s GHG emissions intensity of electricity sold to 0.54kg CO2e/kWh in 2023 (14% decrease from 2019 baseline)
• Divestment from Fangchenggang Power Station in 2022 and transfer of Shiheng Power Station in 2022 reduced coal share in energy sent out from 48.2% in 2021 to 40.8% in 2023
• Operation of D1 unit at Black Point Power Station since 2020 and commissioning of offshore LNG terminal in 2023 facilitated coal phase-out by increasing gas generation capacity

Social Achievements

• Launched AUD$10 million Yallourn Transition Program in 2022 providing support to workforce for reskilling and future employment
• Launched Job Upskilling and Matching Program in 2023 to support Yallourn Power Station workers to retrain for offshore wind projects
• Engaging with local stakeholders, including employee representative organizations and local educational institutions to ensure study opportunities are developed

Governance Achievements

• Updated Terms of Reference for the Sustainability Committee on 1 January 2024
• Regular training and information sessions on sustainability-related topics for CLP Board Directors
• Senior Management Remuneration Policy considers financial, operational, safety, environmental, social, business sustainability, governance and compliance factors

Climate Goals & Targets

Environmental Challenges

• Market context, affordability and reliability of energy, and limitations as a minority joint venture partner influence decarbonisation pace
• Growing power demand in growth regions can hold up coal phase-out
• Need to balance maintaining affordability and reliable electricity access for communities during transition
• Challenges in accelerating change in Asia Pacific due to relatively young coal plants, less market influence, and workforce transition needs

Mitigation Strategies

• Strengthened 2030 GHG emissions intensity target to 0.26kg CO2e/kWh (59% reduction from 2019 baseline)
• Maintaining existing targets including phasing out coal before 2040 and ceasing development of new coal-fired plants
• Investing in renewable energy projects (374MW in equity capacity since 2021)
• Focusing on energy infrastructure investments supporting decarbonisation and renewable asset growth
• Collaborating with policymakers and partners to ensure viable and reasonably priced renewables
• Supporting workers with retraining and upskilling opportunities

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Chronic weather pattern changes
• Water stress and drought
• Wildfires
• Changes in wind speed impacting wind assets

Transition Risks

• Emerging national decarbonisation policies
• Stranded asset risks
• Carbon pricing
• Potential exposure to litigation
• Stigmatisation of carbon-intensive sectors

Opportunities

• Increased demand in low-carbon electricity
• Demand for energy storage
• Demand for electrification of transportation and industrial sectors
• Energy services and energy efficiency offerings

Reporting Standards

Frameworks Used: Science Based Targets initiative (SBTi), International Sustainability Standards Board’s (ISSB) IFRS S2 Climate-related Disclosures

UN Sustainable Development Goals

• SDG 7
• SDG 13

CLP supports the UN SDGs, with specific focus on SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action)

Sustainable Products & Innovation

• Energy-as-a-Service
• Cooling-as-a-Service