Case studies

Climate change

Pre-Investment Carbon Intensity Assessment

• Assesses the proposed project’s impact on the Group’s portfolio carbon intensity levels, and confirms how the potential investment will fit into CLP's Climate Vision 2050.

N/A

Health & Safety (H&S)

H&S reviews the risks associated with technology throughout the project lifecycle and industrial best practices with a focus on preliminary planning for mitigation of critical risks.

H&S reviews the onboarding of key contractors by evaluating contractor competence and capabilities, and reviewing the terms and specification in contracts. Through targeted interventions CLP challenges the risk exposure to its workforce, with a firm vision to achieving zero harm.

Environment

Pre-Investment Environmental Risk Assessment – Environmental Due Diligence (EDD)

• Is mandatory for any potential acquisition or project.

• Identifies the environmental-related risks that may be material to the proposed project. In 2020, development of a physical climate risk tool commenced. It takes into account future climate projections to facilitate the identification of potential physical climate risks to the proposed project for further analysis.

• Proposes potential mitigation measures and recommendations (e.g. environmental impact assessments, environmental management systems) as part of the budget requirement for project execution.

Environmental Impact Assessment (EIA)

• Mandatory prior to project construction and applicable to all projects over which CLP has majority ownership or operational control.

• Supported by a series of Health, Safety, Security and Environment standards and guidelines.

• Guided by the Biodiversity Impact Assessment Guideline on managing biodiversity risks where appropriate, and considers the IUCN Red List of Threatened Species and national conservation lists of threatened species.

Social

Social Due Diligence (SDD)

• Is mandated for any potential acquisition or project to collect information about the impacts of the target investment or project on its surrounding community.

• Identifies potential red flags early and helps CLP develop and maintain a constructive relationship with the host community throughout the project’s lifecycle and ensures the Group meets its policy obligations.

• Assesses the impacts of land acquisition, displacement and resettlement, restriction of access, community safety, influx (i.e. effect on local area services, supplies and infrastructure by the project or operational staff), working conditions and cultural heritage.

• Suggests mitigating solutions to any issues raised.

CLP works closely with the communities, NGOs and relevant stakeholders where CLP’s investment and projects are located to develop social programmes and initiatives that address the needs of the people living or working nearby. This approach is in line with CLP’s community initiative policy.