Sustainability governance

Overview

A strong governance framework is key to ensuring that the sustainability issues CLP faces are incorporated into the corporate agenda.

Sustainability Governance Structure

Board oversight

The CLP Board has overall responsibility for CLP’s ESG strategy and reporting. The governance of sustainability is integrated into the corporate governance structure throughout the Group – from Board-level committees to management-level Group functions and business units.

As one of the Board Committees, the Sustainability Committee has a primary role in overseeing the management of the Group’s sustainability issues and is supported by the Sustainability Executive Committee. The Audit & Risk Committee retains oversight and responsibility for short-term business risks and for the assurance of sustainability data.

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In 2019, the two committees as well as the Board spent significant time in consideration of the impact of climate change on CLP:

  • Climate Vision 2050 – This included the consideration of how CLP should be managing its portfolio and projects in light of the risks and opportunities brought by climate change. In reviewing the revised Climate Vision 2050 publication, the Sustainability Committee and the Board not only considered the drafting of the documentation itself, but also the implications, both short term and long term, for the Group's underlying portfolio and projects.

  • Task Force on Climate-related Financial Disclosure (TCFD) – Another important climate-related work stream was the TCFD disclosures and scenario analysis, where the Sustainability Committee studied and examined the ongoing work in this area. The Committee recognised that this remained a developing area and supported management's work with other electricity utilities and consultants to formulate accurate and meaningful climate-related financial disclosures. The Audit & Risk Committee was briefed on the preparatory work that CLP was doing in the area of the TCFD and the proposed engagement of a consultant to assist CLP in developing the relevant scenarios which would form the basis of the disclosures.

Management roles


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