GRI reference: 102-43 , 102-44

CLP’s Stakeholder Engagement Framework provides open and transparent channels for stakeholder input, and a review and consideration process where concerns about CLP's business are responded to in a timely manner. It includes the following steps:

1. Aligning engagement objectives with business objectives

2. Mapping issues and concerns

3. Identifying relevant stakeholders

4. Developing a communications and engagement plan

5. Conducting the engagement activities

6. Capturing feedback and reporting on outcomes.

The effectiveness of CLP’s approach to stakeholder engagement is captured through a number of measures, which include stakeholder feedback, outcomes following engagement, positive and/or negative news about the Company, brand perception ratings, and recognition and awards.

Strategies and procedures

GRI reference: 102-40, 102-42, 102-44

CLP's business activities involve a diverse range of stakeholders. For each project, key stakeholder groups are identified and prioritised based on how they will be impacted, and their influence on the success of the business. CLP has a wide range of easily accessible public engagement channels to enable it to receive concerns, interest or feedback at any time during the year.

CLP’s Stakeholder Engagement Framework

As one of the largest investor-owned power businesses in Asia serving over 80% of Hong Kong’s population and operating in other jurisdictions, CLP has a diverse range of stakeholders to serve. This includes governments which drive regulations, customers, asset owners and communities that CLP is liable for, as well as employees, suppliers and contractors who contribute to its operational success.

The Company is committed to responding to stakeholders’ concerns about the business in a timely manner. These concerns vary depending on the location and context and therefore require different actions or responses. General complaints about the Company are typically handled by the Public Affairs team who work with the relevant business units to resolve the issues at hand.

The tables below summarise the key stakeholders, their key concerns during the year, and how they were engaged. During 2020, some of the in-person communication channels moved online due to the COVID-19 pandemic.

Lenders, investors and shareholders

Governments and regulators

Suppliers and contractors

Employees

Residential, commercial and industrial customers, electricity boards, grid companies

Community groups, legislators, NGOs, industry and professional organisations, academia

GRI 415-1 Political contributions

CLP’s policy is to remain politically neutral and to avoid making political contributions. For public policy developments which apply to the electric utility industry, the Group develops carefully considered positions and seeks to provide input to support the decision-making process. By bringing its industry expertise to the table, CLP can add value to the discussion on how best to structure rules for the energy industry going forward, as both technology and public demand evolves.

CLP’s responses to major public policy consultations – in addition to the Group-wide positions on critical issues such as climate change – are published and accessible on the Company's websites. For example:

• CLP Power Hong Kong’s response to the consultation on the long-term decarbonisation strategy for Hong Kong is available here.

• EnergyAustralia worked with the industry to consult with the Australian Government on the National Energy Guarantee (NEG) on discussions regarding how the Company could best balance the transition to clean energy and maintain reliability in the energy system. The submission made in 2018 can be found here.

None of CLP's businesses receive any significant government financial assistance. The businesses do take up government financial incentives or subsidies which are in place to encourage market participants to behave in certain ways. Examples of such incentives include tax holidays and preferential tariffs for renewable investment or financial assistance from export credit agencies.

CLP supports and actively participates in a range of organisations to enable the Company to keep abreast of different stakeholders’ views, navigate policy uncertainties and shape informed policy making. The contribution is made through paying membership fees, making donations, providing sponsorships, and giving input to policy position papers.

The table below outlines the total amount CLP has contributed to organisations which seek to influence public policy.

The Group is committed to contributing to programmes which support healthy, resilient and sustainable community development over the short and long term. In line with the CLP Group Community Initiatives, Sponsorship and Donation Policy on community engagement, the Company aims to:

• Support projects or programmes that reflect the needs and expectations of local communities and are sensitive to prevailing cultures, traditions and values

• Support projects or programmes that are systematically managed with clearly identified objectives and expected outcomes

• Engage in long-term partnerships with credible international, national, regional and local community organisations, non-governmental organisations and charities

• Support projects or programmes that offer the opportunity for CLP’s employees to be involved, and

• Regularly evaluate the outcomes and impacts of the contributions.

Strategies and procedures

CLP’s community investment strategy is guided by the CLP Group Community Initiatives, Sponsorship and Donation Policy, which sets out principles and directions in the implementation of community initiatives across all business units and functions. The policy, alongside with the Company’s corporate governance and internal control measures, as well as a standardised online reporting platform, aim to facilitate a coherent and transparent approach in the assessment, design, review and reporting of CLP’s community activities. This helps ensure resources are effectively deployed to serve the community’s needs in a timely manner. 

The strategy focuses on four key areas: Environment, Education and Development, Community Wellbeing, and Arts and Culture. Each business unit implements the strategy according to local conditions and community needs.

CLP’s Community Initiative Approach

Monitoring and follow-up

CLP understands that community needs evolve over time. The policy is reviewed every three years to ensure it aligns with the Company’s development and changes in the external environment.

Different socio-economic impact measurement tools that evaluate the social impact of community initiatives have been benchmarked. The most suitable tools are used to review the effectiveness of CLP's community initiatives.

CLP has a standardised online reporting system for reviewing and reporting its community initiatives. The system is designed to enhance the overall effectiveness and efficiency of these initiatives by aggregating data on themes, partners, spending, beneficiaries, volunteer hours and impacts.

2020 was a difficult year for many communities. It commenced with the Black Summer bushfires in Australia , which was quickly followed by the COVID-19 pandemic and its global impact. In response, each of CLP’s business units tailored programmes to provide assistance and relief to the communities where they operate. Some case studies are featured below. This was in addition to a range of other programmes that the Company has in place in support of the four pillars under the CLP Group Community Initiatives, Sponsorship and Donation Policy. The focus on youth continues to run across these pillars.

In 2020, CLP’s community programmes have benefitted 918,000+ people, compared to 615,000+ in 2019. Local community initiatives on Community Wellbeing accounted for the majority of direct beneficiaries across all community initiatives, with a weighting of 65%.

As a result of social distancing restrictions from the pandemic, the number of volunteer hours as well as number of programmes initiated or supported decreased in 2020. The amount donated by CLP for charitable and other community purposes however increased to HKD$27.00 million. Community spending by theme and geography is summarised in the charts below.

Since its launch in 2018, the Workplace Giving programme of EnergyAustralia has received strong support from the majority of employees, who continue to donate up to 1% of their salaries to charity partners. EnergyAustralia is well on the way to achieving a target of A$1 million in donations in the first three years of the programme. The programme was recognised with a Silver Award for "Best Overall Programme" in the Workplace Giving Australia Awards 2020. EnergyAustralia was also recognised as one of the "Top 10 Best Workplaces to Give Back" in the Good Company Awards 2020.

Providing opportunities to young people

The pandemic brought about economic downturns across CLP markets, leading to fewer opportunities for fresh graduates or those who are just starting in their careers. Understanding the challenges they face, CLP kept up its efforts to support youth across its business areas in the Asia Pacific. In collaboration with various partners, tailor-made plans were put in place to help address the needs of local youth.

In Hong Kong, Vocational and Professional Education and Training (VPET) plays a vital role in broadening learning opportunities of school leavers and in-service personnel. In collaboration with the Vocational Training Council (VTC), CLP Power set up the CLP Award for VPET students. The award assists students who are studying power engineering or related programmes in the 2020/21 academic year and need financial support. The CLP Community Energy Saving Fund (CESF) allocated HK$1.5 million to the Award, providing a subsidy of HK$20,000 to each eligible student. The Award not only provides training opportunities to these students in the energy sector, but also helps nurture a new generation of talent for Hong Kong's power engineering industry.

In 2020, CLP Power established a new Graduate Internship Programme. It offers internships to recent university graduates for a 12-month period. The programme covers a wide range of projects suitable for university graduates from different disciplines, such as business, engineering, environmental affairs and information technology. Fifty nine graduate interns joined CLP in Hong Kong to gain work experience, half of which were in environmental fields.

Creating Hope for the Young Generation

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In Mainland China, CLP's youth initiatives included:

• Supporting 700 students from 19 schools under the CLP Support-a-Student Programme.

• Funding to upgrade facilities at three schools in Sichuan with more than 800 students benefitting from the CLP Support-a-School Programme.

• The launch of the Guangxi Ethnic Minority Community Project to improve the study environment and school facilities for youngsters from ethic minorities, and also to equip local women from ethic minorities with skillsets to bring sustainable income to their families.

During the COVID-19 lockdown, the volunteer mentoring team at EnergyAustralia continued to serve the community and mentor students by moving its in-person mentoring to an online platform.