Governance

CLP recognises its critical role in minimising environmental impacts. Its care for the environment is stated clearly in the Group’s Health, Safety and Environment (HSE) Policy, which requires CLP to:

• Protect the environment, including preventing pollution and minimising the risk of environmental incidents;
• Strive to use resources including water and energy efficiently, and minimise emissions, discharges and waste; and
• Minimise any adverse impacts of its operations on biodiversity by protecting endangered fauna and flora and promoting ecological conservation.

One of CLP’s environmental responsibilities is the conservation of biodiversity. Recognising rising biodiversity loss globally, CLP is maintaining its goal of “no net loss of biodiversity”. Through various initiatives, the Group has demonstrated its dedication to safeguarding habitat quality and preserving the biodiversity of specific ecosystems in the regions where it operates. 

This approach ensures that nature, along with other sustainability issues are part of the corporate agenda. As part of overall sustainability management, the Board-level Sustainability Committee (SusCom) has oversight of nature-related impacts, risks and opportunities and has a role in evaluating the adequacy and effectiveness of the CLP’s Health, Safety, Security and Environment (HSSE) Framework, supported by the Sustainability Executive Committee (SEC) and the CLP Group HSSE Executive Committee.

The SusCom and SEC holds the primary responsibility of overseeing the management of the Group’s sustainability matters, including nature-related topics. For details of their roles and responsibilities as well as the key nature-related agenda discussed in 2023, please refer to the Sustainability Governance sections.

Under the Board’s oversight, the CLP Group CEO has ultimate accountability for reporting the performance and governance of HSE management to the SusCom, while delegating the authority for day-to-day decision-making on HSE governance and assurance issues across CLP to the Group COO. Also chaired by the CEO, the CLP Group HSSE Executive Committee appoints senior executives to review and evaluate CLP’s overall governance, strategy, performance and assurance in Health, Safety, Security & Environment. In 2023, a nature-related agenda, including the Group’s revised medium- and long-term environmental targets considering nature dependencies and impact drivers, was endorsed by HSSE Executive Committee.

The Environment Team of the Group HSE Department is responsible for providing expert advice on environmental issues and impacts, ensuring timely reporting, and coordinating the implementation of the Environmental Pillar of the Group HSE Improvement Strategy. It is also responsible for defining appropriate environmental standards for operations, driving continuous improvement and promoting a positive engagement culture. During execution, it works closely with different business units to ensure that relevant environmental standards and policies are properly adopted and the improvement strategies are being effectively implemented and embedded across CLP. Through coordinating with different business units, it drives continual improvement of the ISO 14001 environmental management system in ways that go beyond compliance, and to enhance existing environmental evaluation criteria throughout the value chain for procurement and tender specifications.

Various working groups have also been established to manage environmental and nature-related initiatives, led by the Environment Team of the Group HSE Department and supported by relevant functional teams and regions. Their work includes conducting reviews on nature-related frameworks, undertaking the first stage of group-level TNFD nature assessments, developing and implementing circular economy strategies and plans, and setting out medium- and long-term environmental targets.

SASB reference: IF-EU-140a.2; GRI reference: 2-27, 201-1, 306-3 (2016)

Established processes are in place to ensure understanding of relevant emissions and other nature-related laws and regulations for new investments, as well as updates to existing regulations and emerging legislation in this field. Where compliance with new laws and regulations requires a transition period, CLP, where appropriate, works transparently with regulators as it establishes the business practises and makes the investments necessary to satisfy the new requirements.  

CLP closely monitors developments in emissions and other nature-related regulatory requirements. A summary of the new and/or amended laws and regulations that emerged in 2023 that had or may have a significant impact on CLP's business units are listed below.

In 2023, all of the five emissions and other nature-related breaches were recorded by EnergyAustralia: 

• Two related to short-term carbon monoxide (CO) licence limit exceedances. One of these exceedances occurred during a low-load operation stack emission test for diesel firing at Jeeralang Power Station, while the other occurred during a recommissioning run after a summer-readiness outage at Newport Power Station. Both incidents were reported to the local Authority and no further regulatory action was taken.
• Another breach related to a dust control issue at Yallourn Power Station. EnergyAustralia subsequently responded to the local Environment Protection Authority (EPA) by updating its Risk Management and Monitoring Programme (RMMP) for dust control. After assessing the updated RMMP, the EPA considered that appropriate mitigation measures had been taken, and the case was closed with no further actions.

• The fourth breach related to unauthorised vegetation clearing activities in the ash dam areas of Tallawarra Power Station. EnergyAustralia immediately communicated with the local EPA to explain the cause and apologise by demonstrating a good record of environmental performance and a strong commitment to biodiversity and community engagement. No EPA actions were incurred.
• The final breach related to the brine conditioned ash and salts emplaced in the Ash Repository at Mount Piper Power Station over an authorised maximum height. EnergyAustralia has developed mitigation measures to relocate the overheight materials and raise awareness through training and visual markers. The incident was reported to the local EPA and no further regulatory actions were incurred.