The materiality assessment findings have been consolidated into six key material topics, with five identified as financially material and five as impact material.
Capitalising on growth in AI and digital technologies
Navigating geopolitical risks
Accelerating decarbonisation efforts
Enhancing grid resilience and flexibility
Improving environmental performance
Managing physical climate risks
Protecting customer data and privacy
Strengthening cyber security measures
Cultivating agile ways of working
Fostering diversity, equity, and inclusion
Promoting safety, health and wellbeing
Upskilling and reskilling employees
Ensuring resilient operations and supply chains
Ensuring thriving communities
MATERIALITY ASSESSMENT
Materiality Matrix
This interactive map shows the results of the double materiality assessment.
Click on a megatrend to read more and see how it relates to other material topics.
Click on a material topic or sub-topic to find out the linkages between them, why they are material in financial and/or impact terms and where to read more
Click on a filter to find out the material topic, value chain and time horizon of each material topic or sub-topic. You may select multiple filters at a time.
MEGATREND
Distributed energy
Energy systems are decentralising, reshaping economies and democratising global access to energy. Main drivers for the shift include advanced technologies, Virtual Power Plants (VPPs), and locational pricing. Consumers are increasingly seeking more control over their energy use, driving demand for decentralised solutions, and opting for a more responably priced and personalised energy system service. Traditional utilities must innovate, adopt new technologies and redefine their roles.
MEGATREND
Electrification
Demand for electricity is expected to grow as cities, transport systems and industries electrify in line with economic development and population growth. With advances in economies brought upon new use purposes for electricity uses such as EVs, heat pumps and AI technology. To meet the rising demand of energy generation, upgraded and expanded grids are crucial to fully realise the benefits of rapid renewable energy growth and will require significant investment and digital solutions.
MEGATREND
Geopolitics and supply chain resilience
Intensifying geopolitical tension may complicate efforts to secure power generation technologies. Structural deficits are driving a shift from four decades of neoliberalism to greater government intervention, with profound implications for business. Growing protectionism also underscores the need for utilities to diversify supply chains and leverage local or regional innovation. Global conflicts in Russia and Middle East are destabilising energy markets, complicating efforts to ensure reliable and affordable fossil fuel supply.
MEGATREND
Decarbonisation
The energy sector urgently needs to shift from being the largest emitter to leading the global effort to achieve net-zero emissions, in support of the transition unprecedented investments. Global clean energy investment needs to triple to $4 trillion annually by 2030. While global renewable energy capacity continues to grow but remains China-centric. Companies internationally face increasingly stringent disclosure obligations due to rising investor demand for climate-related information. In addition to transitioning, climate-driven extreme-weather events have become more frequent creating operational and financial impacts for the energy sector.
MEGATREND
Changing societal expectations
Societal expectations are set to change with shifting demographics leading to global energy demand. Expected factors of population growth, urbanisation, and the rise of huge middle classes in China and India, whose energy-intensive consumption patterns are increasingly mirroring those of the West. The cost-of-living has escalated concerns around energy equity, creating more pressure on utilities and governments to ensure accessible, reasonably priced and clean energy for all. Consumer expectations are also evolving, with a growing preference for personalised and sustainable energy solutions. Building trust and offering tailored solution emphasising on affordability, sustainability and reliability will reduce the consumer’s concerns on greenwashing complaints.
MEGATREND
Nature loss
The accelerating loss of species and habitats threatens productivity, exasperates social challenges and elevates operational risks. Over half of the global GDP is highly dependent on nature and the ecosystem services it provides. Utilities are exposed to risks driven by nature loss and compounding effects of climate change with many plants being situated near shorelines to secure access to water for cooling purposes. In response to biodiversity loss, investors demand on standards for nature risk assessments and reporting, promoting companies to make stronger commitments to biodiversity and ecosystem preservation. As the energy transition drives demand for critical minerals and strains habitat, businesses are adopting circular designs for clean energy products – emphasising durability, reusability, repairability and recyclability.
MEGATREND
Data use and cyber security
Customer data breaches have become a recurring headline with cyber attacks becoming increasingly sophisticated. Utilities, specifically smart grids, face heightened risks due to expanding digital vulnerabilities. In protection of customer data breaches, stricter data privacy regulations are thus imposed, restricting utilities’ capacity to leverage customer data for product and service innovation. Governmentsare strengthening its cyber operations to ensure the prevention of data stealing or disruptions to critical infrastructures.
MEGATREND
Disruptive technologies
Artificial intelligence (AI) developments advances technology in various industries. In utilities, AI optimises distribution, improving grid performance an driving the evolution of smart energy infrastructure capable of managing both the transition and rising energy demand. However, oil and gas majors as well as tech giants are new market entrants that may one day leverage their financial clout and technology expertise, innovating and reshaping how energy is produced, distributed and consumed. Consumers are empowered by new digital technologies and desire a personalised energy solutions to emphasise customer service, convenient and engagement such as managing costs and tracking their environmental impacts.
MEGATREND
Future of work
Ongoing labour shortages and the rise of AI highlights the shrinking labour pool necessary in the energy sector. Growth in AI requires employee retraining to address the skill gap and improve productivity. Furthermore, complications in attracting and retaining talent is also impacted through younger employees’ expectations for purpose and meaning in their work. Companies that embrace a diverse, equitable and inclusive workplace, flexible work arrangements and purpose-driven work are likely to see higher employee satisfaction and retention.
MATERIAL TOPIC
Net-zero transition
CLP is transitioning to low-carbon energy by phasing out coal, investing in non-carbon energy infrastructure, managing climate-related risks and meeting environmental responsibilities. The transition creates opportunities in renewable energy, transmission, distribution and energy storage. In line with Climate Vision 2050, CLP is committed to reducing carbon emissions to meet business and government targets while ensuring energy reliability and affordability, and addressing potential risks including grid instability, stranded coal assets and geopolitical uncertainties.
FINANCIALLY MATERIAL
Delays in phasing out coal-fired plants could lead to regulatory penalties and higher compliance costs related to emissions management. CLP must balance these risks against the substantial investments needed for grid modernisation and renewable energy integration. Extreme weather events are increasing infrastructure repair costs and insurance premiums, highlighting the need for proactive risk management. Opportunities exist in battery storage and green energy technology investments, such as hydrogen plants, which can enhance grid reliability and generate new revenue streams. CLP can also capitalise on shifting supply chains to expand in Asian markets, leveraging its regional expertise. Successfully navigating these challenges while meeting emissions targets is critical to maintaining stakeholder trust and preserving CLP’s market position. Failure to do so could lead to reputational damage, regulatory penalties and delays in capital investments, hindering competitiveness in an evolving energy landscape.
IMPACT MATERIAL
By improving air and water quality management, CLP protects community health and ecosystems, especially in water-stressed regions. Investments in climate-resilient infrastructure and grid improvements enhance energy reliability for customers and communities. CLP’s expansion into sustainable energy solutions including solar installations, nuclear energy and electric vehicle charging provides a larger share of zero-carbon power to consumers and supports the long-term resilience of the wider economy. These efforts collectively strengthen CLP’s reputation, building trust with stakeholders and contribute to social equity and economic progress in the regions it serves.
MATERIAL TOPIC
Energy growth opportunities
CLP is focused on providing reliable, sustainable energy at a reasonable cost. As electrification and digitalisation raise demand for low-carbon energy, it is well-positioned to capture new energy growth opportunities through investing in lower-carbon electricity infrastructure and providing decarbonisation solutions to customers.
FINANCIALLY MATERIAL
Rising electricity demand globally presents significant growth opportunities for CLP. But regulatory uncertainties could impact profitability. Evolving net-zero policies may accelerate coal plant closure and increase transition costs, affecting CLP’s operations, investment decisions, reinforcing the need for affordable energy solutions. Despite these risks, CLP’s expertise in electrification and renewable positions it to capitalise on growing demand for low-carbon electricity. This creates new revenue streams in sectors like transport and EV infrastructure. Leveraging Chinese supply chain relationships could help reduce project costs and expand CLP’s market share in China and other markets.
IMPACT MATERIAL
By improving energy affordability and reliability, CLP contributes to community wellbeing and economic stability, particularly in urbanising regions. Adapting to regulatory changes is essential for maintaining market position and ensuring reliable energy services. CLP’s efforts in building a closed-loop EV ecosystem, including taxis and personal vehicles, advances cleaner transportation solutions that promote community health and align with national decarbonisation goals. Expanding into new markets fosters economic growth by creating jobs. These efforts enhance CLP’s reputation as an energy sector innovator and trusted partner in the transition.
MATERIAL TOPIC
Digital innovation and cyber security
CLP is prioritising digital innovation to improve operations and provide smarter energy services while ensuring cyber security. It is continuously enhancing its digital capabilities to become a data-driven and secure utility. Digitalisation is crucial for transforming the energy sector, enabling CLP to create a more efficient, connected and customer-centric business.
FINANCIALLY MATERIAL
CLP’s digital innovation initiatives offer opportunities for cost efficiencies through AI-driven network diagnostics and smart grid infrastructure, which also support the growing energy demands of new technologies. However, these digitalisation efforts come with inherent risks, including potential implementation challenges, scalability issues, and the possibility of not meeting customer expectations. The increasing threat of cyberattacks on critical infrastructure could disrupt operations exposing CLP to regulatory penalties and significant financial losses. CLP also faces rising costs for cyber security investments and compliance with stricter data privacy regulations which add to operational complexity. Failure to manage the implications of AI on employees may result in job displacement and skill gaps, jeopardising workforce stability. To safeguard its financial performance and reputation, CLP must balance technological advancements with robust cyber security measures and comprehensive risk management.
IMPACT MATERIAL
Investing in cyber security is crucial for CLP to protect its infrastructure and customer data, which is essential for maintaining trust and reliability among consumers and regulators. By integrating AI and digital technologies, CLP can enhance grid efficiency and empower customers with improved energy management tools, offering cost savings and greater control over their energy use. Investments in smart grid infrastructure and energy storage provide scalable solutions that accommodate emerging technologies and support the integration of renewable energy sources, benefiting both the environment and customer. However, CLP must carefully manage the potential for job displacement and skill gaps resulting from technological advancements.
MATERIAL TOPIC
Future-ready workforce
CLP is dedicated to making its workforce future ready by attracting, developing and retaining diverse talent; upskilling and reskilling employees; embedding new, more agile operating models and ways of working; and ensuring its workplaces are safe and inclusive for all. Talent acquisition to fill skills gaps and training are essential, as are adopting new ways of working and supporting employees to innovate and take calculated risks to improve our business. Continuous investment in training and development and in process and policy improvement, enables CLP to attract top talent, innovate to seize opportunities and enhance employee satisfaction.
FINANCIALLY MATERIAL
Attracting and developing talent is essential for CLP to capitalise on the financial opportunities associated with the transition to a digitally-enabled, low-carbon future. By focusing on upskilling and reskilling, CLP addresses talent gaps while enhancing capabilities in new areas critical for growth. Promoting safety, health and well-being ensures operational efficiency and reduces costs associated with workplace incidents. While fostering diversity, equity and inclusion strengthens CLP's employee value proposition, helping to attract and retain productive talent, particularly younger workers. Cultivating an agile organisational culture enables CLP to adapt quickly to market changes, fostering innovation and improving competitiveness.
IMPACT MATERIAL
Ensuring workplace safety and upholding high labour standards are essential for the wellbeing of employees, contractors, and service providers. Promoting diversity, equity and inclusion supports social mobility by providing opportunities to a broader range of individuals. Effective upskilling and reskilling initiatives enhance employee satisfaction and performance. Cultivating an agile organisational culture fosters innovation and open communication, improving employee engagement and retention. However, failure to adequately prepare employees for the energy transition and ongoing digitalisation could lead to job insecurity and negative community impacts.
MATERIAL TOPIC
Operational and supply chain resilience
The accelerating pace of environmental, technological, regulatory and social changes has reinforced the importance of business resilience. CLP recognises the strategic value of anticipating, withstanding and learning from disruptive events, especially in response to the growing threats posed by climate change and cyber crime.
FINANCIALLY MATERIAL
Geopolitical dynamics and rising protectionism could impact CLP’s operations by potentially increasing costs and complicating access to critical technologies. As global policies evolve, CLP is actively exploring diverse technology partnerships both in Mainland China and internationally to bolster its operational resilience and innovation capacity. Regulatory considerations in certain markets may affect project timelines, while disruptions in regions such as the Middle East, Europe, or Asia could influence fossil fuel supply and maritime trade routes, leading to increased costs and potential customer impacts.
MATERIAL TOPIC
Community stewardship
CLP recognises its obligations to meet evolving stakeholder expectations around the positive role businesses should play in society. This includes demonstrating leadership in its decarbonisation ambitions, investing in green energy solutions that support the electrification of society and transparently reporting on its ESG performance. Environmental stewardship extends to actively managing CLP’s dependencies and impacts on nature. Employee and supplier wellbeing is another priority. The Group recognises the importance of ensuring ethical human rights practices in its value chain, as well as of supporting employees and communities impacted by the energy transition.
IMPACT MATERIAL
Business activities which meet the expectations of stakeholders benefit people, especially customers, suppliers and local communities. By addressing education, women’s empowerment, social inclusion, diversity and energy poverty, CLP enhances the wellbeing of local communities and supports socio-economic development. Group expertise in building resilient energy infrastructure helps communities adapt to climate change, ensuring reliable and sustainable energy access. Conversely, failing to provide a just transition for employees affected by the closure of coal-fired power plants could result in negative economic, health and social impacts for workers, their families and communities.
SUB-TOPIC
Acting as a trusted stakeholder
CLP is committed to being a trusted partner in the energy transition by upholding high standards in labour practices, working with communities impacted by coal-fired plant closures, managing tariff adjustments transparently and meeting emissions reduction targets. These efforts are crucial for maintaining trust with customers, communities, investors and governments.
FINANCIAL RISK
Missing greenhouse gas emissions intensity reduction targets and failing to deliver on Climate Vision 2050 could erode investor confidence in CLP's ability to profitably manage the energy transition, potentially resulting in a lower share price, higher capital costs and reduced access to funding.
FINANCIAL RISK
Public sensitivity to any potential electricity tariff adjustments may affect progress of government-approved electricity infrastructure investments/service lines.
Failing to meet greenhouse gas emissions intensity reduction targets (by 2030) could erode CLP's trust with customers, investors and governments, and jeopardise efforts to position the Company as a leader in the energy transition.
NEGATIVE IMPACT
Failing to provide a 'just transition' from coal to low-emissions energy may result in negative economic, health and social impacts for workers, their families and communities.
CLP is navigating an evolving regulatory landscape across multiple markets, focusing on maintaining profitability and operational stability. This involves managing uncertainties in energy policies and adapting to diverse regulatory frameworks, which vary by jurisdiction.
FINANCIAL RISK
Uncertainty in Australian energy and decarbonisation policies could affect EnergyAustralia's operations and energy transition plans.
FINANCIAL RISK
Evolving net-zero policies internationally may push CLP to accelerate its coal-fired power plant closures, forcing it to bear the transition costs (such as revenue loss, decommissioning costs) ahead of schedule.
FINANCIAL RISK
Potential adverse changes in energy regulations in the markets where CLP operates may affect its operating environment and business model in the long term.
CLP is strategically positioned to capitalise on the growing electrification trends by developing a closed-loop electric vehicle (EV) ecosystem and expanding EV infrastructure internationally. These initiatives aim to drive EV adoption and diversify revenue streams.
FINANCIAL OPPORTUNITY
Supporting the electrification of various transportation segments including commercial vehicles, taxis, ferries and private cars can generate diverse business opportunities for energy suppliers.
FINANCIAL OPPORTUNITY
CLP can leverage its EV charging expertise in Hong Kong and Mainland China in other markets to develop potential new opportunities from transport electrification.
FINANCIAL OPPORTUNITY
Electrification needs to quadruple by 2050 globally, offering CLP opportunities to diversify into new lines of business and establish joint ventures with potential partners.
As the US decouples from China, CLP can capitalise on increasing intra-Asian trade to fill technological gaps left by the possible withdrawal of companies subject to American political influence. Leveraging strong Chinese supply chain relationships through the Belt and Road Initiative allows CLP to reduce project costs and expand market share in China-friendly markets.
FINANCIAL OPPORTUNITY
CLP can capitalise on potential gaps in Asian energy markets left by the withdrawal of some companies due to geopolitical concerns.
FINANCIAL OPPORTUNITY
CLP can leverage its strong supply chain relationships in Mainland China to seek potential energy investment opportunities in Asian markets in China's Belt and Road Initiative.
CLP is focused on ensuring energy affordability and reliability amid changing demographics and rising fuel costs. This involves addressing high energy bills, meeting increasing electricity demand and managing tariff pressures, particularly in Hong Kong market.
FINANCIAL RISK
Potential volatility in natural gas supply may affect gas-fired power generation in Hong Kong and increase costs, leading to possible pressure to adjust electricity tariffs.
FINANCIAL RISK
With energy affordability a growing concern for Hong Kong customers and the Government, CLP is expected to continue delivering reliable, sustainable energy at reasonable cost.
FINANCIAL OPPORTUNITY
Ageing populations, rising incomes and urbanisation in Asian markets have continued to support growth in electricity demand, presenting opportunities for CLP and other energy suppliers.
High energy bills and an associated increase in customer disconnections due to non-payment could result in a loss of customers and increased customer dissatisfaction.
CLP is strategically expanding its offerings by developing new products and services. This involves leveraging emerging opportunities in electrification and distributed energy to drive growth and innovation.
FINANCIAL OPPORTUNITY
Increasing use of battery storage enables CLP to enhance energy dispatch and strengthen energy reliability. Improved flexibility to respond to demand fluctuations helps stabilise the power grid and enhance supply resilience.
FINANCIAL OPPORTUNITY
Developing expertise in low-carbon energy technologies such as green hydrogen will help CLP attract investors and customers eager to participate in the energy transition.
FINANCIAL OPPORTUNITY
Utilities should meet growing customer demand for low-carbon energy with a diversified range of distributed energy solutions including solar energy, home batteries and EV charging.
As renewable energy infrastructure comes to the end of its lifecycle, there will be opportunities for remanufacturing of industry machinery, reducing waste and conserving resources.
Capitalising on growth in AI and digital technologies
CLP is leveraging AI and digital technologies to enhance operational efficiency and support the energy transition. This includes using AI for network maintenance, capitalising on AI-driven energy demand, managing the impact of AI on the workforce and implementing front-of-meter innovations like smart meters.
FINANCIAL RISK
CLP's digitalisation agenda could be derailed by cost and time over-runs, an inability to scale, disruptions caused by imperfect implementation and/or failing to meet customer expectations.
FINANCIAL OPPORTUNITY
CLP can capitalise on AI's growing energy demands by investing in energy infrastructure to deliver reliable and scalable energy solutions to data centres.
FINANCIAL OPPORTUNITY
Leveraging AI to improve network diagnostics and realise cost efficiencies in maintenance operations.
Providing consumers with smart meters and other 'front-of-meter' innovations, giving them an opportunity to participate as partners in the energy transition and realise energy bill savings.
NEGATIVE IMPACT
Failure to assess and manage the potential implications of generative AI on CLP's workforce could lead to job displacement, skill gaps and job insecurity for employees.
CLP is focused on navigating geopolitical risks that could impact energy security, project development and technology supply chains. This involves managing the ramifications of conflicts that threaten fossil fuel supplies and addressing shifts in global trade policies affecting green technology.
FINANCIAL RISK
Trade policies aimed at limiting dominance of materials and technologies from countries where CLP sources its equipment and properties may increase CLP’s cost of acquisition and project execution.
FINANCIAL RISK
Regulatory changes in Hong Kong, Mainland China, Australia and India could increase operational costs and complexity for utilities.
FINANCIAL RISK
Escalation of geopolitical conflict in the Middle East, Europe or Asia may threaten energy security, shipping and prices. Even a temporary lapse in the security and affordability of fossil fuel supply could force CLP to pass on costs, leading to a loss of customers and/or significant tariff implications.
FINANCIAL RISK
While CLP is a regional business, its strong presence in Hong Kong and proximity to Mainland China may create complications for its operations in other markets amid geopolitical tension.
CLP is leveraging growing support for nuclear energy to increase its share of zero-carbon power, while progressively phasing out coal-fired plants. This strategy aims to balance the need for reliable, low-carbon electricity with the challenges of reducing emissions and air pollution from existing fossil fuel assets.
POSITIVE IMPACT
Leverage growing public support (in Hong Kong and overseas) for nuclear energy as part of a sustainable energy mix. This would include promoting more use of nuclear energy to provide a larger share of zero-carbon power to consumers.
NEGATIVE IMPACT
A delay in CLP's phase-out of its coal-fired plants will result in ongoing carbon emissions and air pollution.
CLP is focused on enhancing grid resilience and flexibility to support the clean energy transition. This involves addressing inadequate infrastructure and integrating distributed energy resources, which are crucial for maintaining reliability and energy access.
FINANCIAL RISK
Ageing and insufficient power grid infrastructure may constrain ability to accommodate distributed energy resources and renewable connections, potentially compromising supply reliability and hindering the low-carbon transition.
CLP is committed to enhancing its environmental performance by addressing key issues such as coal phase-out, air and water pollutants and potential contamination from ash seepage. These efforts are crucial for reducing environmental impacts and meeting regulatory standards.
NEGATIVE IMPACT
Excessive water and/or air pollution as a consequence of CLP's operations could lead to environmental damage, especially in regions with water stress.
NEGATIVE IMPACT
Potential seepage from ash repositories leading to surface/ground water contamination.
CLP faces significant challenges from climate-related extreme weather events, which pose risks to infrastructure and business operations. These events, such as cyclones, fires and floods, can lead to costly repairs and increased insurance premium, impacting overall financial performance.
FINANCIAL RISK
Climate-related extreme weather events such as wildfires, windstorms and heatwaves may damage CLP's energy infrastructure and impact business operations.
FINANCIAL RISK
Repairs and maintenance of energy infrastructure will increase operational costs as extreme weather events become more common.
FINANCIAL RISK
Increased risks of extreme weather events may result in higher insurance premiums and affect profitability.
CLP is committed to protecting customer data and privacy by implementing robust security measures and complying with evolving data protection regulations. While this may increase operational complexity and compliance costs, CLP recognises this is crucial for safeguarding customer information and maintaining stakeholder trust.
FINANCIAL RISK
Tightening data privacy regulations could increase operational complexity and compliance costs.
CLP is actively strengthening its cyber security measures to protect critical infrastructure, customer data and operational technologies against cyberattacks. This includes investing in advanced cyber defence measures and adapting to tightening data privacy regulations to mitigate the risks of operational disruption, financial loss and reputational damage.
FINANCIAL RISK
The increased vulnerability of smart grid technology to cyberattacks on critical infrastructure poses a significant risk of operational disruptions, regulatory penalties and reputational damage.
FINANCIAL RISK
Insufficient investment in advanced cyber security systems and digitisation could leave CLP vulnerable to cyberattacks and data breaches. As AI integrates more deeply with operational technology, these vulnerabilities could intensify.
FINANCIAL RISK
A major cyber security breach would present a serious risk to CLP's financial position and reputation, causing a loss of market share.
A successful cyberattack on one of CLP's Operational Technologies (OT) systems, or to a lesser extent its IT systems, could affect the operationality of power plants or grid infrastructure, causing outages and disruption that adversely impact customers.
CLP is committed to cultivating an agile organisational culture by shifting from a traditional hierarchical structure to a more flexible environment that fosters innovation and open communication. This approach aims to attract younger talent with digital skills and develop leadership capable of navigating a rapidly evolving energy market.
FINANCIAL RISK
CLP is required to strike a balance between operating a regulated business in Hong Kong and being agile to business uncertainties and unforeseen risks. This may affect responsiveness to industry megatrends and market dynamics, potentially limiting the company's capacity to capture emerging opportunities and resulting in reduced operational efficiency, lost revenue opportunities and diminished competitiveness in a rapidly evolving energy market.
CLP can continue to embrace new ways of working decentralised decisionmaking and encourage employees to take calculated risks and try new things.
NEGATIVE IMPACT
Younger employees, equipped with digital and the energy transition skills, may have different expectations compared to previous generations. This shift requires CLP to hire and train executives with the contemporary leadership skills to manage them effectively.
CLP is committed to enhancing its employee value proposition through inclusive people policies that acknowledge different life stages and offer greater flexibility. These efforts aim to increase social mobility, remove barriers to career progression and boost productivity and morale. A lack of progress on DEI could alienate younger workers and hinder the company’s ability to attract and retain talent.
POSITIVE IMPACT
People policies that acknowledge different life stages and offer employees greater flexibility can increase social mobility, remove barriers to career progression and enhance productivity and morale.
NEGATIVE IMPACT
Lack of progress on diversity, equity and inclusion could hurt CLP's employee value proposition, especially with younger workers.
CLP is dedicated to ensuring a safe and healthy working environment for its employees, contractors and service providers. This commitment is essential for maintaining workforce wellbeing and operational efficiency.
NEGATIVE IMPACT
Failing to provide a safe working environment could undermine the physical and mental health, safety and wellbeing of employees and contractors.
NEGATIVE IMPACT
Failure to identify and act on poor labour standards and human rights practices in CLP's operations and supply chain could result in physical and psychological harm to workers and violation of labour rights.
CLP s committed to developing a future-ready workforce by focusing on upskilling and reskilling employees to meet the demands of a digitally-enabled, low-carbon future. This involves addressing talent gaps, enhancing employee training and adapting to new market dynamics.
FINANCIAL RISK
Failure to attract and develop the talent required for a digitally-enabled, low-carbon future will hamper CLP's ability to meet its strategic objectives and expand capabilities in new areas.
Failure to reskill employees for the age of renewables, digitisation and decentralised energy systems may lead to job losses or changes in job requirements, negatively affecting employee wellbeing, satisfaction and job security.
NEGATIVE IMPACT
CLP's decarbonisation, digitalisation and non-Scheme of Control expansion in Hong Kong and Mainland China could create significant challenges in succession management, talent acquisition and cultural adaptation.
CLP is focused on securing essential technologies and resources to maintain operational resilience amidst geopolitical tensions and technological dependencies. This involves managing risks associated with global competition and securing next-generation grid technologies.
FINANCIAL RISK
Operational resilience is foundational to CLP’s position as an essential service provider and maintaining reliability is core to the business. Many nations are moving towards increased geopolitical competition and away from free trade. CLP's technological dependencies may compromise its innovation capacity and access to critical platforms and tools.
FINANCIAL RISK
Intensifying US-China tensions may complicate efforts to secure advanced US technologies such as semiconductors.
CLP has a long tradition of serving its local communities through wide-ranging engagement and investment programmes. These include the provision of financial assistance – such as subsidised energy – to people and community sectors in need and of ongoing support for those impacted by the phase-out its coal-fired power plants and other structural changes to the energy system.
POSITIVE IMPACT
CLP's capabilities in building high-quality energy infrastructure could help communities adapt to a hotter climate and support a more climate-resilient energy system.
POSITIVE IMPACT
CLP continues to serve local communities through long-standing engagement and investment programmes related to education, empowerment of women, healthcare access, poverty alleviation, social inclusion, diversity and eliminating energy poverty.
POSITIVE IMPACT
CLP provides assistance to people and different community sectors to support the provision of affordable energy, including a HK$100 million Fuel Cost Subsidy programme to subsidise the energy costs of 150,000 families in need.
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