2020
Before major investments receive funding approval from the Investment Committee, they are subject to a multidisciplinary review process which includes both financial and non-financial components. Non-financial considerations include safety, security, social, climate change and environmental risks. Early assessment enables a reduction in the business and reputational risks associated with a project and helps guide stakeholder engagement.
Some financial institutions have adopted the Equator Principles to set minimum standards for determining, assessing and managing environmental and social risk. In 2020, around 70% of CLP’s new debt funding supporting the Group's investment projects with no recourse to CLP Holdings came from banks which have adopted the Equator Principles. This increased from around 50% in 2019.
Details of the non-financial review during pre-development and development of projects are summarised in the table below. For project execution and operation, on-going management is conducted in accordance with CLP operational standards and guidelines.
Pre-development | Development | Execution and operation | |
---|---|---|---|
Climate change | Pre-Investment Carbon Intensity Assessment
| N/ | On-going management in accordance with CLP operational standards and guidelines |
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)
| Environmental Impact Assessment (EIA)
| |
Social | Social Due Diligence (SDD)
| 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. |