Globally, different methodologies are used to measure organisations' sustainability performance. CLP's sustainability-related disclosures reference several reporting guidelines and frameworks to ensure comparability, an approach aligned with international best practice.
HKFRS Sustainability Disclosure Standards of the Hong Kong Institute of Certified Public Accountants (HKICPA)
In May 2022, the Financial Services and the Treasury Bureau (FSTB) confirmed that the extant Professional Accountants Ordinance (Cap. 50) provides the statutory authority for the HKICPA to issue sustainability disclosure standards concerning the practice of accounting to be applied by certified public accountants.
The HKICPA has developed the Hong Kong Sustainability Disclosure Standards (“the Hong Kong Standards”) on a full alignment basis with the ISSB Standards. The Exposure Draft of HKFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and HKFRS S2 Climate-related Disclosures were published on 16 September 2024.
Following a public consultation on the Exposure Drafts, the HKICPA issued the final Hong Kong Standards at the end of 2024 with an effective date of 1 August 2025. CLP prepared its 2024 Annual Report in accordance with HKFRS S1 and HKFRS S2.
In response to the launch of the Hong Kong Roadmap on Sustainability Disclosure and the HKFRS Sustainability Disclosure Standards, CLP’s Annual Report has continued to disclose information about sustainability-related and climate-related risks and opportunities that could reasonably be expected to affect the Company’s prospects. CLP is further making sustainability a core part of its corporate thinking and business strategy by integrating the materiality assessment process into its governance and risk management procedures, as well as disclosing its strategies and metrics in relation to significant sustainability matters. In addition, it published a comprehensive climate transition plan titled CLP's Climate Vision 2050: Powering an orderly transition in March 2024.
The International Sustainability Standards Board (ISSB)'s International Financial Reporting Standards (IFRS) S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures
In June 2023, the ISSB under IFRS issued two inaugural Sustainability Disclosure Standards, IFRS S1 – General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 – Climate-related Disclosures. IFRS S2 was developed with reference to the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). These standards have already been endorsed by the International Organisation of Securities Commissions (IOSCO) and have received strong support from a number of jurisdictions, including Australia, Mainland China, Canada, Japan, Hong Kong, Malaysia, New Zealand, Nigeria, Singapore and the UK. They are expected to inform and accelerate the development of sustainability-related regulatory initiatives globally.
In Australia, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 became effective in early September 2024. This requires relevant entities to disclose their climate-related plans, financial risks and opportunities, in accordance with the Australian Sustainability Reporting Standards (ASRS) published by the Australian Accounting Standards Board (AASB). Entities shall make climate-related disclosures for the annual financial reporting periods beginning on or after 1 January 2025. Energy Australia has developed a detailed plan in preparation for making the required climate-related disclosures.
The Stock Exchange of Hong Kong's Environmental, Social and Governance (ESG) Reporting Code
The Stock Exchange of Hong Kong (the Exchange) aligned Hong Kong’s climate-related reporting requirements with those of the ISSB in April 2024, updating the Main Board Listing rules under the Appendix C2 ESG Reporting Code. As an early adopter, CLP continues to improve its climate-related disclosure in Annual Reports, with further insights on CLP’s climate transition plan being published in CLP’s Climate Vision 2025: Powering an orderly transition.
The Exchange has established a clear timeline for implementing the climate-related disclosure requirements. Starting from 1 January 2025, all Main Board issuers are required to disclose against the Climate-related Disclosures modelling on IFRS S2 on a "comply or explain" basis. Large Cap issuers are mandated to disclose against the New Climate Requirements starting from 1 January 2026. In 2027, the Exchange plans to conduct a review, and launch a market consultation on mandating reporting for all listed companies, in accordance with the Hong Kong Standards which are fully aligned with both IFRS S1 and IFRS S2, with an expected effective date of 1 January 2028.
The GRI is an international independent organisation that provides a set of widely used standards for sustainability reporting. CLP’s reports have made reference to the GRI Standards since 2007.
This report has been prepared in accordance with the GRI Universal Standards. It also reports on matters relevant to the GRI G4 Electric Utilities Sector Disclosures, which cover aspects of sustainability performance that are meaningful and relevant to the electric utility sector.
Task Force on Nature-related Financial Disclosures (TNFD)
The TNFD develops voluntary, consistent nature-related financial risk disclosure recommendations for use by companies when providing information to investors, lenders, insurers and other stakeholders. It has issued 14 recommendations for assessing nature-related risks and opportunities in an organisation's governance, strategy, risk and impact management, metrics and targets. Its recommendations include 10 core global disclosure indicators and metrics related to dependencies and impacts on nature, as well as core disclosure metrics for organisation-level risk and opportunity assessment. CLP has made reference to the TNFD’s recommendations in disclosing its assessment of nature-based risk and of its impact on nature in the chapter Respecting Nature.
Other guidance documents developed for the TNFD have also been referenced, including the sector-specific guidance for the power and utilities sector for determining the potential financial impact of nature-related risks. Another document used has been the Roadmap to Nature Positive: Foundations for the Energy System, published by the World Business Council for Sustainable Development (WBCSD) in September 2023. CLP participated in the WBCSD’s Roadmap to Nature Positive for the Energy System working group, contributing to the guidance development.
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