Community

GRI reference: 2-16, 2-29, 207-3, 413-1

Strategies and procedures

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.

While each business unit develops its own project-specific engagement plan depending on their needs, in developing the plan the below framework is followed:

1. Aligning engagement objectives with business objectives
2. Mapping issues and concerns
3. Identifying relevant stakeholders: CLP's business activities involve a diverse range of stakeholders. In addition to regular communications with stakeholders (such as email updates, information kits, and video stories), key stakeholder groups for each project are identified and prioritised based on issues mapping and how the stakeholders will be impacted, and their influence on the success of the business.
4. Developing a communications and engagement plan: CLP is using a wide range of easily accessible public engagement channels both formal and informal, such as surveys, focus groups, briefings, visits, events, roadshows and online channels, to enable it to receive concerns, interest or feedback at any time during the year. Drawing on past experiences, the channels for each project are selected based on the nature of the projects, and the effective means to reach the identified stakeholders.
5. Conducting engagement activities
6. Capturing feedback and reporting on outcomes: To address stakeholders’ views and concerns and identify areas for improvement in a timely manner, the effectiveness of CLP’s approach to stakeholder engagement is captured through a number of measures. They include stakeholder feedback, outcomes following engagement, media monitoring and analysis, brand perception ratings, and recognition and awards.

CLP’s Stakeholder Engagement Framework

GRI reference: 2-12, 2-25, 2-29

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.

The Company is committed to responding to their concerns about the business in a timely manner. These concerns vary depending on location and context and therefore require different actions or responses. General complaints about the Company are typically handled by the customer relations team, with the aim of resolving the issues at hand.

The following tables summarise the key stakeholders, their key concerns during the year, and how they were engaged. As with the previous year, some of the in-person communication channels moved online in 2021 due to the COVID-19 pandemic.

GRI reference: 2-28, 415-1

CLP’s policy is to remain politically neutral and to avoid making political contributions. The Company participates in a range of industry and professional bodies to discuss the major issues deemed important to the energy sector's ongoing viability and success, in particular climate change and energy.

Joining an organisation as a member is reviewed by the respective Public Affairs teams based on business objectives and engagement purposes. All membership proposals are subject to the final approval of senior management of the Group or the business unit.

GRI reference: 2-28, 201-4, 415-1

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’s pledge to fully support the Hong Kong Government’s “Hong Kong’s Climate Action Plan 2050” announced in 2021. The plan outlines long- and medium-term net-zero carbon emission targets and new measures for Hong Kong’s long-term decarbonisation strategy. This will help Hong Kong achieve carbon neutrality before 2050.
• EnergyAustralia participated in a range of reform processes run by State bodies and the national market institutions that relate to a number of reforms related to the clean energy transition, including the creation of renewable energy zones and essential energy system services.

EnergyAustralia has been the beneficiary of Government largesse as part of Tallawarra B and Yallourn:

• The Company approached the Victorian Government with the plan to retire Yallourn and transition to cleaner energy in a way that does not leave the workforce or the community behind. The plan involves Yallourn power station retiring in mid-2028, a multimillion-dollar package to support Yallourn workforce, and a commitment to build Australia’s first four-hour utility-scale battery of 350MW capacity by 2026 in the Latrobe Valley.
• EnergyAustralia is expanding its existing Tallawarra power station in the Illawarra region, following an agreement reached (A$83 million) with the Government of New South Wales. Through the agreement, Tallawarra B will become Australia’s first net-zero emissions hydrogen and gas capable power plant, with Scope 1 greenhouse gas emissions from the power station offset over its operational life.

None of CLP's other businesses receive any significant government financial assistance.

CLP also 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 table below outlines the total amount CLP has contributed to organisations which influences public policy. The contribution is made through paying membership fees, making donations, providing sponsorships and giving input to policy position papers. The large increase in 2021 was due to significant contributions to COVID-19 relief programmes in India during the year.

As part of CLP's ongoing engagements, the Company's participation focuses in organisations active in climate change and broader energy market policies.

Following is a list of organisations to which CLP devotes significant resources through membership, sponsorship and other contributions, including active participation by senior management. CLP has contributed annually over HK$250,000, in cash or equivalent, over the last three years to the organisations listed below (in alphabetical order).

Chief Executive Officer Richard Lancaster (second from right) shares his insights into business sustainability leadership at the ReThink HK 2021 conference, co-organised by the Business Environment Council.

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 an 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 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: Community Wellbeing, Environment, Education and Development, 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.

GRI reference: 201-1, 203-1, 203-2

After a record year of charitable giving during the first year of the COVID-19 pandemic (2020) and a stronger focus on community support programmes, the number of direct donations to charitable and other purposes decreased from HK$27 million in 2020 to HK$15 million in 2021. However, CLP recognises the adverse impacts of the pandemic continued to affect communities. Hence many of the assistance and relief programmes launched in 2020 were extended and new ones initiated.

In respect of the four pillars under the CLP Group Community Initiatives, Sponsorship and Donation Policy – Community Wellbeing, Environment, Education and Development, and Arts and Culture – community spending remained focused upon environmental topics. In addition, the focus on youth across all four pillars continued. Select case studies are featured in this section to showcase these programmes.

In 2021, CLP’s community programmes have directly benefitted more than 1,580,000 people, an increase from more than 918,000 in 2020. This year, the community wellbeing pillar accounted for 63% of direct beneficiaries. The CLP Retail and Catering Coupons Programme was a major programme during the year, and had an extensive reach across the Hong Kong community.

As pandemic restrictions were eased in certain regions, the number of volunteer hours contributed increased significantly in 2021, though the number of community programmes implemented was fewer. The amount donated by CLP for charitable and other community purposes decreased to HKD$15 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 reached its first A$1 million donations in May 2021 within the first three years of the programme, faster than any Australian business. The programme was recognised at Workplace Giving Australia’s 2021 awards for excellence, taking gold for best overall program (large organisation) as well as the gold award for best innovation. More information about the achievements can be found here.