2023 Sustainability Report / About this Report / Reporting scope and data verification

Reporting scope and data verification

This report covers the CLP Group’s sustainability performance for the calendar year ending 31 December 2023. It is published at the same time as the CLP 2023 Annual Report. The CLP 2023 Sustainability and Annual Reports were published in March 2024, in tandem with the 2024 edition of CLP’s Climate Vision 2050.

GRI reference: 2-2, 2-3, 2-4

CLP reviews its reporting scope regularly to ensure that the material impact of the Group’s overall portfolio is covered. Any assets that were operating and later sold during the year have been included in the reporting scope. In 2023, assets added to the reporting scope included the Bobai wind farm, Hong Kong LNG Terminal Limited (HKLTL), Darlington Point Energy Storage, and Riverina Energy Storage System II. With the change in ownership of Apraava. Apraava’s non-financial data on operational control basis has been removed from CLP Holding’s accounts from 2023, while those on equity basis continues to account for the data according to CLP’s equity share in the asset. This is adjusted to align with other joint ventures, on the condition that the same level of transparency and disclosure is maintained in Apraava’s public disclosures. A separate standalone Apraava data table with key non-financial data metrics can be found in the Section ESG data table.

In 2023, the following data points have been adjusted:

Health, Safety and Environment (HSE): To enhance the credibility of data quality, one of the existing environmental metrics, mercury as an air pollutant, is now independently assured.
CLP Group's GHG emissions intensity on an equity / equity plus long-term capacity and energy purchase basis: This metric refers to the ratio of the equity and purchase portion of GHG emissions to the equivalent portion of the power sent out from CLP Group’s generation and energy storage portfolio where CLP has an equity interest and long-term purchase arrangements. Starting from 2023, the scope expands to cover spot purchases, including electricity purchased from the National Electricity Market in Australia and electricity sent to the grid in Hong Kong (i.e. through the Feed-In-Tariff Scheme or from other renewable energy assets).

GRI Reference: 2-5

KPMG has provided limited assurance on a selected set of ESG data in this report, in accordance with:

The International Standard on Assurance Engagements 3000 (Revised), Assurance Engagements other than Audits or Reviews of Historical Financial Information; and
In respect of GHG emissions, the International Standard on Assurance Engagements 3410, Assurance Engagements on Greenhouse Gas Statements.

Download 2023 Independent Assurance Statement

Below are the Group's boundary definitions for each of the main categories of data included in this report. Please refer to CLP's 2023 Annual Report for more details on the entities included in the consolidated financial statements.

Finance

Selected financial figures are extracted from the Annual Report and the consolidated financial statements of CLP Holdings Limited and its subsidiaries (the Group). For a detailed description of the financial reporting scope, please refer to the Material Accounting Policies - Consolidation and Equity Accounting on pages 221-222 of the 2023 Annual Report.

GHG emissions

CLP Group’s total CO₂e emissions (on an equity basis)

Includes the Group’s generation and energy storage portfolio, transmission and distribution, retail and other business activities where relevant, covering GHG emissions from Scope 1, 2 and 3.

Scope 1 CO₂e

Includes the Group’s generation and energy storage portfolio, transmission and distribution infrastructure, coal mines and fuel storage facilities that are:

Owned by CLP, where assets are included on an equity basis (i.e. data is calculated according to CLP’s equity share in the asset); and
In operation during the reporting year.

Scope 2 CO₂e

Includes the Group’s generation and energy storage portfolio, transmission and distribution infrastructure, coal mines, fuel storage facilities and offices that are:

Owned or rented by CLP, with assets and offices included on an equity basis (i.e. data is calculated according to CLP’s equity share in the asset); and
In operation during the reporting year.

Scope 3 CO₂e

Includes indirect emissions (not included in Scope 2) that occur in the value chain of CLP. It includes emissions from the Scope 3 categories relevant to CLP (see the GHG Accounting Methodology for details).

GHG emissions

CLP Group's generation and energy storage portfolio (CO₂/CO₂e on an equity/ equity plus long-term capacity and energy purchase basis)

Data is consolidated on an equity basis with two variations:

Equity basis includes assets in the Group’s generation and energy storage portfolio that are:
- Owned by CLP, where assets are included on an equity basis (i.e. data is calculated according to CLP’s equity share in the asset); and
- In operation during the reporting year.
Equity plus long-term capacity and energy purchase basis adds on to (1) by including assets in the Group’s generation and energy storage portfolio whose capacity and energy are purchased by CLP to meet customer demand, and where:
- The purchase agreement duration is at least five years; and
- Capacity or energy purchase is no less than 10MW.

GHG emissions

CLP Group's generation and energy storage portfolio (CO₂/CO₂e on an operational control basis)

Includes the Group’s generation and energy storage portfolio, coal mines or fuel storage facilities that are:

Majority owned by CLP or under CLP’s operational control, defined as entities that have full authority to implement CLP’s operating policies;
In operation during the reporting year; and
Having a material impact on the environment.

Unless otherwise stated, 100% of the performance data for in-scope assets is reported without adjustments based on CLP's equity share.

GHG emissions intensity of CLP Group’s generation and energy storage portfolio

(on an equity/equity plus long-term capacity and energy purchase basis)

Equity basis:

The GHG emissions intensity of the portfolio owned by CLP. This is the ratio of the equity portion of GHG emissions to the equivalent portion of the power sent out from CLP Group’s generation and energy storage portfolio where CLP has an equity interest. This includes Scope 1 and Scope 2 emissions.

Equity basis includes the assets in the Group’s generation and energy storage portfolio that are:

Owned by CLP, where assets are included on an equity basis (i.e. data is calculated according to CLP’s equity share in the asset); and
In operation during the reporting year.

2. Equity plus long-term capacity and energy purchase basis:

The GHG emissions intensity of electricity supplied to CLP’s customers (i.e. portfolio owned by CLP and purchased electricity that is sold to CLP’s customers) is the ratio of the GHG emissions to the equivalent portion of the power sent out from CLP Group’s generation and energy storage portfolio where CLP has an equity interest and long-term purchase arrangements. This includes Scope 1, Scope 2 and Scope 3 emissions (part of Category 3: direct emissions from generation of purchased electricity that is sold to CLP’s customers).

Equity plus long-term capacity and energy purchase basis includes the assets in the Group’s generation and energy storage portfolio which are:

Owned by CLP, where assets are included on an equity basis (i.e. data is calculated according to CLP’s equity share in the asset) and in operation during the reporting year;
The Group’s generation and energy storage portfolio whose capacity and energy are purchased by CLP to meet customer demand, and where:
- The purchase agreement duration is at least five years; and
- Capacity or energy purchase is no less than 10MW.

In addition, spot purchases including electricity purchased from the National Electricity Market in Australia and electricity sent to the grid in Hong Kong (i.e. via theFeed-In-Tariff Scheme or from other renewable energy assets) are also included.

GHG emissions intensity of electricity sold

CLP Power Hong Kong Limited (CLP Power)

Includes power generation assets involved with the delivery of electricity to CLP Power customers, where:

The CO₂ and CO₂e emissions are from generation assets owned or controlled by CLP Power/ CAPCO in Hong Kong only (i.e. excluding nuclear power generation, which does not result in significant carbon emissions); and
The kWh is from the total electricity sales for CLP Power.

Environment

Resource use,air emissions and environmental compliance

Includes the Group’s generation and energy storage portfolio, transmission and distribution infrastructure, coal mines and fuel storage facilities that are:

Majority owned by CLP or under CLP’s operational control, defined as entities that have full authority to implement CLP’s operating policies;
In operation during the reporting year; and
Having a material impact on the environment.

Unless otherwise stated, 100% of the performance data for in-scope assets is reported without adjustments based on CLP's equity share.

Asset management

Energy sent out, fuel use (on an operational control basis)

Data is consolidated on an operational control basis. It includes those assets in the Group’s generation and energy storage portfolio that are:

Majority owned by CLP or under CLP’s operational control, defined as entities that have full authority to implement CLP’s operating policies; and
In operation during the reporting year.

Unless otherwise stated, 100% of the performance data for in-scope assets is reported without adjustments based on CLP's equity share.

Asset management

Generation and energy storage capacity, energy sent out

Data is consolidated on an equity basis with two variations:

Equity basis: includes assets in the Group’s generation and energy storage portfolio that are:
- Owned by CLP, where assets are included on an equity basis (i.e.data is calculated according to CLP’s equity share in the asset); and
- Under construction (for generation and energy storage capacity only) or in operation during the reporting year.
Equity plus long-term capacity and energy purchase basis adds on to (1) by including assets in the Group’s generation and energy storage portfolio whose capacity and energy are purchased by CLP to meet customer demand, and where:
- The purchase agreement duration is at least five years; and
- Capacity or energy purchase is no less than 10MW.

People

Includes people employed by CLP entities and their subsidiaries. This also includes CLP employees who are assigned to work in joint ventures, joint operations or associates.

Safety

Includes the Group's generation and energy storage portfolio, transmission and distribution infrastructure, coal mines, fuel storage facilities and offices that are:

Majority owned by CLP or under CLP’s operational control, defined as entities that have full authority to implement CLP’s operating policies; and
Under construction or in operation during the reporting year.

Unless otherwise stated, 100% of the performance data for in-scope assets is reported without adjustments based on CLP's equity share.

Governance

Includes breaches of the Code of Conduct and convicted cases of corruption associated with people employed by CLP entities and their subsidiaries. This also includes cases associated with CLP employees who are assigned to work in joint ventures, joint operations or associates.