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Good corporate governance and risk management form the bedrock of a sustainable business and underpin its long-term success. The Group is continuously striving to embed good corporate governance practices in its day-to-day operations through the implementation of its Value Framework.

Corporate governance framework and code

CLP has a robust corporate governance framework that promotes and safeguards the interests of its shareholders and other stakeholders. It is committed to maintaining a rigorous framework of corporate governance that upholds the Group’s credibility and reputation.

GRI reference: 2-9, 2-12, 2-15, 2-23, 2-24

CLP's corporate governance structure consists of a CLP Code on Corporate Governance, a Corporate Governance Framework, and a comprehensive set of procedures, systems, policies and guidelines.

Download the CLP Code on Corporate Governance

The CLP Code was updated in early 2023 to reflect the new requirements under the Corporate Governance Code Appendix C1 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited (the Exchange). While embracing the requirements of the Exchange's Corporate Governance Code, the CLP Code goes beyond it by building on CLP’s own standards and past experience.

The Board is CLP’s highest governance body, and is responsible for directing and supervising all its affairs in a responsible and effective manner. Some of its responsibilities are delegated to five Board Committees. The two committees most involved in sustainability-related matters are the Sustainability Committee and the Audit & Risk Committee.

Find out more about Sustainability Governance in this report
How CLP Holdings approaches corporate governance
How_CLP_approaches_corporate_governance_2023

The CLP Corporate Governance Report in the Annual Report discloses the Company's governance performance in detail. Below are the highlights from 2023.

  • Board Succession - Announced the sucesssion plans for the CEO transition and appointed an Independent Non-Executive Director (INED) whose skills, experience and background are well aligned with the Board's focus on organisational talent capability;

  • Board Committees Refresh - Refreshed the composition of CLP Holdings Board Committees;

  • Implementing Findings from Board Review - Implemented two key initiatives from the 2022 External Board Review findings including introduction of Management Briefing sessions for the Board, and updates of the CLP Holdings Board Committee Chairs to the CLP Holdings Board at Board meetings; and

  • Governance Oversight and Key Announcements - Exercised oversight of a number of material developments and announced these to the market contemporaneously, including CEO transition, key developments for the Hong Kong Scheme of Control Business and profit warning.

Read the Corporate Governance Report in the 2023 Annual Report

The Human Resources and Remuneration Committee Report covers CLP’s Remuneration Policy, including the non-financial metrics considered for executives’ remuneration.

Sustainability governance

GRI reference: 2-9, 2-12, 2-13, 2-14, 2-23

CLP’s strong governance framework ensures that the sustainability issues it faces are incorporated into its corporate agenda and business strategy. The CLP Board has overall responsibility for CLP’s sustainability reporting and performance. Sustainability governance has been embedded in the corporate governance structure

throughout the Group, from Board-level committees to management-level Group functions and business units.

Two of the Board Committees, the Sustainability Committee and the Audit & Risk Committee, have separate but complementary roles in sustainability management. These two committees are supported by the Sustainability Executive Committee and coordinated by the Group Sustainability Department. 

Sustainability_governance_2023

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