Reporting frameworks
and content indices

CLP recognises the diversity of methodologies used globally to measure the sustainability performance of organisations. This report references several reporting guidelines and frameworks to ensure comparability—an approach aligned with international best practices.

Value Reporting Foundation and International Sustainability Standards Board

• The establishment of the Value Reporting Foundation (VRF), arising from the merger of the International Integrated Reporting Council (IIRC) and the Sustainability Accounting Standards Board (SASB) in June 2021, and its consolidation with the International Sustainability Standards Board (ISSB) and the Climate Disclosure Standard Board (CDSB) announced in November 2021, marked key progress towards simplification of the reporting landscape.
• VRF continues to develop disclosure requirements. For its 2021 Annual and Sustainability Reports, CLP has referenced the suite of tools currently available, namely the Integrated Thinking Principles, the Integrated Reporting Framework, and the SASB Standards for Electric Utilities & Power Generators.

The Stock Exchange of Hong Kong's Environmental, Social and Governance (ESG) Reporting Guide

• Companies listed on the Hong Kong Stock Exchange (HKEx) are required to meet the ESG Reporting Guide disclosure obligations from financial years commencing on or after 1 July 2020. The Guide was updated in 2019 after extensive consultation conducted by HKEx.

• CLP’s Annual and Sustainability Reports have adopted the new disclosure obligations since the 2019 reporting cycle. In particular, the materiality assessment process, as outlined under the mandatory disclosure requirements, has been applied to prioritise CLP's response to the "comply or explain" provisions of the Environmental and Social Aspects of the ESG Reporting Guide.

Task Force on Climate-related Financial Disclosures (TCFD)

• The TCFD develops voluntary, consistent climate-related financial risk disclosure recommendations for use by companies in providing information to investors, lenders, insurers and other stakeholders. The recommendations consider the physical, liability and transition risks associated with climate change and what constitutes effective financial disclosures across industries.
• CLP has produced a standalone Climate-related Disclosures Report in accordance with the TCFD recommendations to assist stakeholders seeking climate-related information. The report references the TCFD’s latest publications, including the Guidance on Scenario Analysis for Non-Financial Companies (October 2021), Annex: Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures (October 2021), and Guidance on Metrics, Targets, and Transition Plans (October 2021).
• Different organisations are developing frameworks and guidelines to facilitate TCFD disclosures, including the ISSB's Climate-related Disclosures Prototype, released in November 2021, and the HKEx's Guidance on Climate Disclosures (November 2021).
• Other guidance documents developed for electric utilities were also referenced. Most notably are those published by the World Business Council for Sustainable Development (WBCSD), where CLP is participating in several TCFD working groups. These documents include the WBCSD TCFD Electric Utilities Preparer Forum Report, published in June 2019, and Evaluating climate-related financial impacts on power utilities, published in November 2021.

Greenhouse Gas Emissions

• CLP's greenhouse gas (GHG) emissions are reported with reference to: the World Resources Institute (WRI) / WBCSD GHG Protocol; the Intergovernmental Panel on Climate Change Guidelines for National Greenhouse Gas Inventories (2006); the International Standard for GHG Emissions ISO 14064; and relevant local statutory guidelines where applicable.
• To facilitate implementation, in 2007 CLP developed the first version of the Group-wide GHG reporting guideline which referenced the guidelines above. This reporting guideline is reviewed in accordance with CLP's practice at least every three years. In 2019, CLP enhanced its GHG disclosure to also include Scope 3 emissions.

Global Reporting Initiative (GRI)

• The GRI is an international independent organisation which provides widely used standards for sustainability reporting. CLP’s reports have reported with reference to the GRI Reporting Framework since 2007.
• This report has been prepared in accordance with the GRI Universal Standards 2021. It also reports on the GRI G4 Electric Utilities Sector Disclosures, covering key aspects of sustainability performance which are meaningful and relevant to the electric utility sector.

Financial data

All financial data in this report is consistent with the figures published in the audited financial statements of CLP's 2021 Annual Report. These financial statements were prepared in accordance with the Hong Kong Financial Reporting Standards (HKFRS) issued by the Hong Kong Institute of Certified Public Accountants (HKICPA) and the requirements of the Hong Kong Companies Ordinance (Cap.622).