Safety

GRI reference: 403-1, 403-2

CLP's commitment to continually improving its HSE performance for the benefit of its employees, contractors, customers and the public, remains steadfast. This covers the construction of new projects, operations and decommissioning.

With the establishment of its independent Group Security function in May 2021, CLP removed physical security from the scope of its Health, Safety, Security and Environment (HSSE) Policy, and rolled out a new integrated HSE Policy. The HSE Policy sets out the high-level expectations driving the direction of the HSE Management System (HSEMS), which the Group is currently refreshing.

HSEMS core components and relationship

The diagram above shows the core components of the Group's HSEMS and their inter-relationships.

The HSEMS helps implement CLP's commitment to continually improving HSE performance and the requirements of the Group’s new HSE Policy. It is supported by a suite of standards with mandatory requirements, methodologies and other supporting tools.

The refresh of the HSEMS aims to:

• Establish a risk-based HSEMS to meet the objectives set out in the HSE Policy;
• Further improve clarification of mandatory requirements within the CLP HSEMS Standards;
• Enable the Group’s regional organisations to incorporate HSEMS Standards into their business programme; and
• Promote and encourage conformity to internationally accepted standards for occupational health and safety (ISO 45001) and environmental management (ISO 14001).

The transition to the refreshed system is progressing, and focuses on developing four areas of the existing HSEMS:

• Leadership and commitment;
• Planning and support;
• Operational enablers; and
• Monitoring, learning and improving.

Strategies and procedures

To support safe operations, CLP has in place a Health, Safety and Environment Improvement Strategy (HSE Improvement Strategy). It has clear objectives, focus areas and timelines, and sufficient resources to achieve its objectives, including HSE professionals and an appropriate budget.

Following the five pillars of the Group's HSE Improvement Strategy, an annual improvement programme is developed, approved and communicated to staff and contractors in each business unit. Recommendations are implemented on agreed timelines and programme process is monitored regularly. Read more in Occupational health and safety below.

Operational responsibilities

The Group HSSE Committee, chaired by the CEO, has the highest executive responsibility on HSSE-related issues. The Group Operations Leadership Team and the Global HSE Team conduct monthly meetings to coordinate, monitor and share knowledge and experience in HSE practices across the Group. Special focus is given to achieving an overall higher level of safety performance.

In addition, various HSE committees have been established to engage employees at the operational level. These committees also involve project partners and contractors. HSE professionals facilitate the overall engagement effort and advise on HSE matters, while the responsibility for implementing high levels of HSE standards rests with line management.

Hierarchy of operational responsibilities

GRI reference: 403-1, 403-2, 403-3, 403-5, 403-7, 403-8

The CLP Group’s HSE Improvement Strategy in 2021 was based on five pillars, they are:

• Uplifting the safety culture;
• Rethinking risk;
• Involving stakeholders;
• Maintaining a healthy and engaged workforce; and
• Ensuring environmental sustainability.

Each pillar emphasises a key principle for effective HSE management. The pillars aim to uplift the Group’s safety culture across all operating regions, promote more proactive risk management, and engage employees, contractors and other key stakeholders in collectively implementing changes to improve safety performance.

Goals and targets

CLP is committed to ensuring all its activities and operations focus on the elimination of fatalities, life-changing injuries, and the occurrence of significant HSE events.

Monitoring and follow-up

The CLP Safety Performance Monitoring and Reporting Standard sets out the safety performance indicators and requirements of safety data reporting. The indicators show trends and can help identify areas which may require more attention to prevent an incident from occurring. CLP has used targeted engagements and worker insights to aide in the development of more comprehensive and effective incident prevention interventions.

Safety performance is reported internally on a monthly basis. Safety performance data and associated insights gained are collected and presented in the monthly meetings between the Group Operations Leadership Team and the Global HSE Team. The data and insights are also reported on a quarterly basis to the Group HSSE Committee, chaired by the Chief Executive Officer.

CLP’s Incident Management Standard sets out the minimum requirements for the implementation and maintenance of a safety incident management system across the Group. In the event of a major incident, the CLP Group Incident Investigation Panel (IIP) and Investigation Report Format Standard are followed. The IIP, chaired by senior members of staff from outside the business unit in which the accident occurred, conducts a thorough investigation. The IIP’s reports are critically reviewed by the Group Chief Operating Officer and the regional Managing Director. The intention is to identify the factors contributing to the incident and the actions required to prevent a recurrence.

Training and awareness

Personnel will only be asked to do work in areas in which they are deemed capable and competent to perform their roles. This requires the careful selection, placement, training, ongoing competency assessment and authorisation of employees, with third-party independent assessment where appropriate. A system is in place to identify and deliver the training necessary to ensure an individual's competence and knowledge in understanding the hazards, risks and control measures associated with their work.

At the asset level, there is flexibility to structure health and safety measures and design more specific approaches in providing relevant training. This includes monitoring the percentage of contractors who have undertaken this training. Safety training requirements are in all contracts and all contractors are expected to undergo safety training relevant to their duties. Spot checks are conducted to ensure compliance.

Continuous improvement

Thorough investigations are conducted into all incidents that have the potential to cause serious injuries. The aim is to move beyond simply looking at human error as a cause, and to understand the more complex latent conditions that contribute to incidents. CLP is committed to understanding how decisions and actions would be made by employees at a particular point in time in their work. CLP is also committed to learning from those closest to the work, to understand their challenges and identify practical improvement opportunities.

CLP is committed to ongoing efforts to find new and better ways of working by learning from investigations into incidents, as well as adopting best practices. For instance, in 2020, the Group conducted a significant overview of its operations involving underwater diving, with the express goal of reducing such activities where possible. Major progress has been made through both adopting technology and redesigning systems and equipment to reduce underwater diving. Increased use of Remote Operated Vehicles for cooling water system inspection and remote dredging equipment for cooling water system cleaning has helped to reduce both the hours and frequency of manned diving work required.

Another example was the recent introduction of Human and Organisational Performance pilot programmes in some business units, providing its people with core skills to support their teams in learning and driving performance improvement. A central component of this capability lift is the formation of operational Learning Teams who actively seek to understand and solve issues faced by those working on the frontline.

SASB reference: IF-EU-320a.1; GRI reference: 403-4, 403-5, 403-6, 403-9, 403-10, EU17, EU18

There was an observable improvement in several key safety metrics when comparing the Group’s 2021 performance against 2020. This is summarised in the table below.

Improving HSE management

During 2021, CLP businesses implemented the necessary changes set out by the 2021 HSE Improvement Strategy. The HSE Improvement Plan was assessed and refreshed for the next three-year period (2022-24), with an emphasis on becoming a learning organisation. The five pillars of the HSE Improvement Strategy remain critical to its continuity and ongoing approach. They address the emerging needs of the business moving forward.

This year's health and safety activities against each pillar are summarised below. Information on the environmental sustainability pillar is included in the Environment section.

GRI reference: 416-1, 416-2

While the Group’s HSE Management System Standard sets out an overarching approach to managing the safety risks in operations, responsibility is also taken for preserving public health and safety, including for people who work or live in close proximity to electricity supply lines.

CLP operates a transmission and distribution network in Hong Kong, as well as transmission networks in Shenzhen, China and Madhya Pradesh, India. Working near electricity supply lines can pose safety concerns. The Hong Kong and Mainland China operations conduct regular construction site inspections and provide cable plans and safety talks to road work contractors and site management personnel to enhance safety awareness at all locations.

EMF arising from power systems can be of public health concerns. CLP’s power supply equipment fully complies with the guidelines issued by the International Commission on Non-Ionizing Radiation Protection. Regular EMF measurements of power supply equipment are carried out jointly with the Electrical and Mechanical Services Department of the Hong Kong Government. The measured EMF levels continue to be well below the guideline limits.

Regarding customer health and safety, CLP Power has customer service centres conveniently located in its supply areas in Hong Kong to provide assistance on product safety, as well as advise on energy efficient products, energy saving tips and other account management issues. In 2021, there were no reportable cases of CLP products affecting customer health and safety in Hong Kong.

Maintaining proper Health, Safety and Environment management practices for transmission towers is important to keep the general public safe.

SASB reference: IF-EU-540a.2

Since 1985, CLP has held a 25% equity share in the Guangdong Daya Bay Nuclear Power Station (GNPS), which provides roughly one third of the electricity supplied to CLP’s customers in Hong Kong. In 2017, CLP’s nuclear portfolio was expanded with a 17% equity investment in Yangjiang Nuclear Power Co. Ltd. which operates Yangjiang Nuclear Power Station (YNPS) in Guangdong. Nuclear power has proven to be a reliable, cost-competitive and clean source of energy. To realise the Group’s decarbonisation vision, CLP continuously seeks investment opportunities for new capacity in low-carbon energies, such as nuclear power.

Nuclear risk management

The safe and steady operation of the two nuclear power stations remains a top priority. The defence-in-depth principle of safety is applied across the full spectrum of areas - from design, site selection, operation, radiation protection, environmental monitoring, to emergency preparedness. The safety principle of "As Low As Reasonably Achievable" (ALARA) is also applied to ensure robust radiation protection.

The two nuclear power stations have achieved good safety performance over the years. This achievement is a result of:

• Adopting best international practices, including the International Atomic Energy Agency Nuclear Safety Standards, in its operations;
• A well-trained and qualified workforce;
• Well-established safety practices and procedures; and
• Comprehensive risk analysis and mitigation.

Nuclear waste management

GNPS follows national policy and international practices for nuclear waste management. The station stores its spent nuclear fuel on-site in dedicated storage facilities.

The back-end management of the fuel cycle remains on site for a number of years before being passed on to a service provider licensed by the Mainland Chinese Government for reprocessing. The service provider is supervised by the National Nuclear Safety Administration (NNSA) and its environmental impact is monitored by the Ministry of Ecology and Environment (MEE). The policy in Mainland China on reprocessing spent nuclear fuel is similar to that of a number of European countries.

As the minority owner of GNPS, CLP is not in a position to report on the back-end management of the fuel cycle in China, including the status of the reprocessing plants for spent fuel.

Low- to intermediate-level solid radioactive waste is packed and stored in a dedicated facility on-site on an interim basis, and is secured to prevent unauthorised access. The waste is transferred to a final repository operated by a service provider, using the shallow burial method commonly adopted in the United States, France and the United Kingdom. The operation of the off-site repository is under the supervision of the national nuclear regulator and relevant nuclear safety regulations.

Monitoring and follow-up

Radiation exposure for workers is closely monitored and managed by plant operators both collectively and at an individual level as part of operating protocols. Workers incur most of their radiation dosage during planned refuelling outages, when much of the work is undertaken at the nuclear generating units. The level of radiation dosage is typically associated with the number of planned outages carried out at the units, which require inspection and maintenance activities in radiation-controlled areas.

Training and awareness

An on-site training school provides professional training on operational procedures for nuclear sites. The training aims to enhance nuclear safety and systematically minimise human error. There is a once-every-two-years requalification mechanism to ensure operator professionalism and competency in plant operation.

In line with good business practice, GNPS has also provisioned for the expenses associated with the future decommissioning of the plant as required by relevant laws and regulations.

GRI reference: 306-3 (2016), 306-1, 306-2, 306-3

The average dose rate in 2021 was less than 0.4 mSv per person per year. For the purpose of comparison, the background radiation dose rate for Hong Kong is 2.4 mSv per person per year from the natural environment.

The charts below show the amount of spent nuclear fuel and low- to intermediate-level radioactive nuclear waste from GNPS over recent years. The amounts of both types of waste are related to the number of planned refuelling outages in each year.

One planned refuelling outage was carried out in GNPS in 2021, the same as in 2020. The total quantity of spent nuclear fuel generated in 2021 was similar to that of 2020.