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Approach to sustainability

Sustainability governance overview

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

The CLP Board has overall responsibility for CLP’s environmental, social and governance (ESG)​ strategy and reporting.

As shown in the diagram below, the governance of sustainability is integrated into the corporate governance structure. Two of the Board Committees, the Sustainability Committee and the Audit & Risk Committee, have separate but complementary roles in ESG management.

Sustainability Governance Overview

Board oversight

For CLP Group, sustainability governance has been embedded in the corporate governance structure – 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 material risks, as well as ensures the assurance of the sustainability data is appropriate.

Read about our Corporate Governance

In 2020, the Sustainability Committee as well as the Board spent significant time in considering the longer term issues impacting CLP, with particular focus on:

  • Innovation and digitalisation – Management provided an overview of the impact of digitalisation and the associated changing competitive landscape along with a review of the actions being taken and investments made by CLP in this area. Potential business opportunities in the areas of energy-related services and the critical success factors for developing data centres were discussed.

  • Climate change and Climate Vision 2050 – The Sustainability Committee had the benefit of a briefing from a leading external expert on climate change which included a comprehensive update on developments in climate change and provided the Committee an external perspective on how CLP was performing and progressing on climate action. The expert session was complemented by management’s briefing on the broader climate action landscape and the Committee and management had an open dialogue on the directional approach that CLP should be taking in line with the Climate Vision 2050 and the updating of CLP’s decarbonisation targets.

Management roles

Alignment with the Sustainable Development Goals

CLP has prioritised four of the 17 Sustainable Development Goals (SDGs) considered most relevant, and where the Group can make a significant impact.

Following the announcement of the United Nations SDGs in 2015, CLP developed its set of Sustainability Principles to guide the Group’s activities and better align business objectives with value creation. It has also prioritised four of the 17 SDGs that are considered as most relevant to the business and where CLP is expected to make the biggest impact.

The four SDGs prioritised by the Group are:

  • Climate Action (SDG13)

  • Affordable & Clean Energy (SDG7)

  • Decent Work & Economic Growth (SDG8), and

  • Industry, Innovation & Infrastructure (SDG9).

Their relationship with CLP's business strategy is outlined in the diagram below:

In the latest review of the CLP Value Framework, the Sustainability Principles were fully integrated into CLP’s Values and Commitments to underscore how integral sustainability is to the Group's long-term development. Along with the prioritised SDGs, CLP’s Value Framework sets a foundation for articulating the Group’s sustainability priorities in support of its longer-term business strategy.

In 2019, CLP joined the World Business Council for Sustainable Development SDG Sector Roadmap Working Group for electric utilities. This project aims to establish the priority SDGs for the sector, identify key opportunities to contribute to the SDGs, and encourage stakeholders in the sector to take collective actions for greater impact. CLP’s priority SDGs are in line with the preliminary recommendations from the Working Group. Further information will be available in the final report, which is expected to be released in mid-2021.

SDG alignment

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