The Committee’s objective is to oversee management and advise the Board on matters required to enable:

• the CLP Group to operate on a sustainable basis for the benefit of current and future generations;

• sustainable growth by maintaining and enhancing CLP Group’s economic, environmental, human, technological and social capital in the long term; and

• the effective management of CLP Group’s sustainability risks.

In particular, the Committee reviews and evaluates the adequacy and effectiveness of CLP Group-level frameworks including the Sustainability Framework, Climate Vision 2050, HSSE Framework, and the Responsible Procurement aspects of CLP’s Procurement Framework.

Between 1 January 2019 and the date of this report, the Committee met four times (including three times in 2019 and once in 2020). Below is a summary of how the Committee spent its time during the periods.

Looking ahead, the Committee will strengthen its role and place a stronger emphasis on overseeing the impact on the Group’s strategy of longer-term emerging sustainability issues. This will ultimately support the CLP Group's objective to operate on a sustainable basis for the benefit of current and future generations.

Overview of work conducted by the Sustainability Committee in 2019

	2019			2020
	February	September	November	February
Sustainability matters – risks, opportunities and emerging issues
Sustainability reporting / ESG indices performance
Health, Safety, Security and Environment
Community investment activities

Risks are managed at both the strategic and operational levels to support the long-term sustainability of growth objectives, while at the same time supporting the operational needs of the current business.

In relation to sustainability issues, the ARC is responsible for ensuring the data in the Sustainability Report is appropriate, including assurance of the accuracy of metrics and reporting. CLP’s independent auditor is also responsible for assuring key ESG data, and their findings and observations are presented to senior management and the Board through the ARC.

The SEC is chaired by the CEO as part of the role’s executive-level responsibility for economic, environmental and social matters. Set up in 2016, it comprises the corporate senior management team of:

• Mr Richard Lancaster (Chief Executive Offer), Chairman, also Chairman of the Sustainability Committee;

• Ms Quince Chong (Chief Corporate Development Officer), also a member of the Sustainability Committee;

• Mr Geert Peeters (Chief Financial Officer);

• Mr David Smales (Chief Operating Officer), who was appointed in October 2019 following the retirement of Mr Derek Parkin in September 2019;

• Mr David Simmonds (Group General Counsel & Chief Administrative Officer); and

• Ms Eileen Burnett-Kant (Chief Human Resources Officer), who was appointed in September 2019 following the retirement of Mr Roy Massey in June 2019.

The SEC steers the sustainability strategy of the Group and approves relevant deliverables. In 2019, the Committee convened six times, including before each Sustainability Committee meeting. These meetings provide a platform for the executive team to initiate or develop strategic sustainability projects, shape and receive progress updates on current projects and to engage in strategic discussions on emerging issues. Four of the meetings in 2019 reviewed and advised on strategic sustainability projects, and the other two meetings were designed as special topic workshops to deep dive into emerging issues. Meetings are facilitated by CLP’s Director – Group Sustainability.

Key themes discussed in 2019 included:

• climate change-related risks and opportunities, and CLP’s response to the TCFD recommendations, including the development of climate scenarios for further analysis;

• Climate Vision 2050 and CLP Group’s strategy in decarbonisation, including the strategic decision not to add additional coal-fired power generation assets to the CLP portfolio and the commitment to convert CLP’s vehicle fleet to electric under EV100;

• enhancement of labour practices amongst the workforce and supply chain;

• response to ESG-related public consultation;

• performance on key sustainability indices and how benchmarking results can drive improvements in operational performance;

• preparation and development of the Sustainability Report, including reporting standards and the assurance of key metrics.

The CEO and CFO also hold management responsibilities for the assurance of ESG data, and jointly sign off the General Representation Letter connected with the assurance process.

GSD aims to embed sustainability into existing processes and systems by informing the development of the business strategy and planning processes. The department monitors sustainability issues and informs the SEC and Sustainability Committee of emerging risks and opportunities. It leads corporate reporting on sustainability and facilitates identifying improvement areas for operational performance. GSD also manages the Group’s climate change strategy, including reporting the progress on Climate Vision 2050 and TCFD implementation.

GSD is also tasked with developing capacity within the organisation to better manage emerging sustainability risks and opportunities material to the business. It communicates and works closely with other Group functions and business units via the Group Sustainability Forum; a quarterly meeting to share experiences in operationalising sustainability across the Group and to communicate CLP’s sustainability vision internally. Awareness raising activities and events are also being held regularly.