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Responding to climate change Harnessing the power of technologyReinforcing cyber resilience and data protection Building an agile, inclusive and sustainable workforce
CLP Sustainability Report 2019 / Material topics / Responding to climate change

Responding to
climate change

Responding to Climate Change infographic

Year in review

The last year has seen unprecedented pressure on government and business for more ambitious climate action.

The “school strikes for climate” initiated by Greta Thunberg, a determined Swedish teenager, now have a global following of climate activists. Others resorted to different tactics such as the non-violent civil disobedience movement started by Extinction Rebellion. Investors and asset managers have also realised the gravity of the “climate emergency” and are increasingly focused on the materiality of climate-related financial risks to businesses. Pressure on companies to enhance their disclosure in accordance to the recommendations of the Task Force for Climate-related Financial Disclosure (TCFD) has gained significant momentum.

At CLP, mitigating the Group’s impacts on climate change is firmly embedded within the business strategy. Board and Senior Management oversight on climate issues is integrated into the organisation’s governance and enterprise risk management system. Set in 2007, the Climate Vision 2050 provides the entire CLP Group with a clear trajectory to guide its transition towards a sustainable, low-carbon future, and CLP is firmly committed to SDG 7 and 13 as part of this strategy.

The Group has enhanced its disclosure on climate issues this year and structured the discussion based on the four pillars of the TCFD’s recommendations. This will help stakeholders better understand how the Group manages climate-related risks and opportunities, their impact on the business as well as the progress in managing these risks. CLP’s Climate Vision 2050 was used as the basis for conducting preliminary scenario analysis to assess the ongoing impact of climate change to the business.

The CLP Group has also enhanced how it measures its climate impact and actions through new quantitative metrics. The Group is now detailing how it will be meeting its 2050 targets going forward, including how much is being invested in different fuel types as well as different energy transition enablers. In 2019, the Group’s carbon intensity has decreased to 0.62kgCO2/kWh, and the proportions of renewable and non-carbon emitting energy of the generation portfolio have increased to 13.7% and 24.9%, respectively. In addition to direct emissions, a comprehensive review of the Group’s GHG profile was conducted to measure and manage the carbon footprint along the value chain. For the first time, CLP is disclosing its scope 1, 2 and 3 emissions on an equity basis to provide a more comprehensive overview of its carbon footprint.

The lack of concrete actions from COP25 in Madrid does not impede CLP’s ambition to make decarbonisation a reality. To the contrary, CLP will continue to enhance its engagement and partnerships with stakeholders in the transition towards a low-carbon future.

Responding to Climate Change - 2019 Key Metrics

Outlook

The year 2020 will be an opportunity for an interim review of CLP’s Climate Vision 2050 and its decarbonisation and clean energy targets.

The lack of significant progress for climate action at COP25 in Madrid may take more time to resolve. Regulatory certainty that supports long-term investment for a low carbon transition is not yet fully in place in many markets. Nevertheless, addressing climate change by decarbonising the Group portfolio will remain a principal focus for CLP’s future business development.

CLP is on track to achieve its emission intensity targets, while there remain some challenges in meeting the clean energy targets. Progress has been made in diversifying the Group's portfolio of generation assets by fuel type and geography, but the 2018 strategic partnership with CDPQ in India along with the slower uptake of renewable energy in other key markets has slowed growth in the renewables portfolio in the short term.

The updated Climate Vision 2050 commits the Group not to invest in any additional coal-fired generation assets, and phase out coal from all operations by 2050. There is also a strong commitment to revisit the commitments and targets made under the Vision, and to progressively strengthen them. As a way to track the progress of the targets, CLP will benchmark its ambitions against the globally recognised Science Based Targets initiative backed by the United Nations and accepted internationally.

The decarbonisation of the generation portfolio is only one component in the Group’s vision. CLP sees significant growth opportunities in emerging low carbon technologies in transmission and distribution, electric vehicles and smart services.

CLP will also be taking additional steps to further refine its climate scenario analysis, as part of an effort to update the enterprise risk management register on a longer-time horizon. This will enable the enhancement of not only the TCFD-related financial disclosure but also the further integration of climate risks and opportunities into long-term business planning and investment decisions.

Climate Vision 2050 - Tile image

Climate Vision 2050

The new publication chronicles how CLP's Climate Vision 2050 has evolved over the years. It is integrated into CLP’s strategies on asset portfolio management, guiding the Group in managing climate-related opportunities and risks.

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Response to TCFD

As part of CLP's participation in the WBCSD TCFD Preparer Forum for Electric Utilities, the Company has undergone a comprehensive review of how the recommendations are met and has adjusted its disclosure accordingly.

Read more below
TCFD tile image

Highlights

CLP's disclosure following TCFD recommendations, the Company's progress against Climate Vision 2050, and their investments that facilitate the transition to a low carbon economy.


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