CLP’s working group on scenario analysis
To help implement the TCFD recommendations, CLP has established a cross-functional working group to analyse and manage the climate risks and opportunities of the Group's key markets.
This working group is coordinated by the Group Sustainability Department with participation from fleet management, renewable energy, financial planning, risk management and investor relations. A broad range of other business functions are also engaged in the process, including business development and planning, legal and policy, innovation, health and safety, environment, human resources, and representatives from each business unit.
In 2020, this working group focused on deepening the analysis on the implications of a range of climate scenarios for CLP’s business units.
The Sustainability Executive Committee (SEC) reviewed the material climate risks and opportunities across all key markets and selected scenarios. The SEC and the Board Sustainability Committee have considered the various scenarios put forward in updating the carbon intensity targets for the years 2030, 2040 and 2050, including the deliberation of setting a net-zero target for 2050. How the financial impact of the climate risk and opportunities could be assessed in the analysis of these scenarios was also discussed, and the working group's study on climate scenario analysis will continue to inform the discussions in the coming year.