The year 2023 was a time of gradual recovery from the shocks of COVID-19. Yet turbulence continued in the form of an unsettled economic outlook, complex global trade relationships, and geopolitical tensions in Ukraine and the Middle East.
These uncertainties have highlighted the importance of preparedness for disruptions and the need to seize opportunities that could arise in the short, medium or long term. On a positive note, the energy sector received some good news as international fuel prices softened from their peak, alleviating fuel cost pressures. Energy transition has remained a key item on the global agenda with governments being urged to translate their commitments to carbon-neutrality by the mid-21st century into actions.
In the third year of adopting the double materiality approach, CLP continued to assess its business sustainability from both the financial and impact perspectives. In re-examining its material topics, CLP took further steps by developing a systematic portfolio of its sustainability-related impacts, risks and opportunities (IROs) described at a higher level of granularity than previously. In particular, the approach to define, assess and address these risks and opportunities were largely adopted from the latest International Financial Reporting Standards (IFRS) S1 – General Requirements for Disclosure of Sustainability-related Financial Information issued in June 2023. This transparent and up-to-date assessment of its sustainability-related IROs, when combined with appropriate management measures, enables CLP to ensure that its strategy is purpose-aligned and adaptable in an ever-changing business landscape.
On this basis, financially material topics and associated risks and opportunities that could reasonably be expected to affect the Company’s prospects are discussed in the Annual Report, while impact material topics relating to positive or negative impacts on people, the environment and the economy are covered in this Sustainability Report.
In light of growing concern for nature conservation, CLP dedicates a chapter in this report to discussing nature-related topics and with reference to the final recommendations of the Task Force on Nature-related Financial Disclosures (TNFD) published in September 2023. CLP has continued to adopt a stakeholder-centric approach, highlighting how CLP manages the interests of its customers, people, partners and the wider community from their perspectives.
In 2023, CLP also conducted a review of its Climate Vision 2050, with the aim of further accelerating its transition to a net-zero future. Climate-related disclosures are integrated into the latest edition of the CLP's Climate Vision 2050: Powering an orderly transition and in the Annual Report, in which the disclosures make reference to ISSB's IFRS S2 Climate-related Disclosures.
This report aims to provide insightful and informative perspectives, offering a balanced view of CLP's sustainability efforts. Feedback on this report is welcome and can be shared through CLP’s online survey form or via email at .
