2024 Sustainability Report / Our Sustainability Agenda / Digital innovation and cyber security

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.

In 2024, CLP successfully
deployed 26 use cases of innovative technologies
including AI across the Group,
against a target of 19

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Organised an Innovation Carnival competition to inspire employees’ innovative attitudes and behaviours

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Connected over 2.68 million smart meters for CLP Power’s residential and Small and Medium Enterprises (SME) customers since 2018

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By investing in Artificial Intelligence (AI) and smart grid solutions, CLP is optimising energy management, improving network resilience and improving energy affordability. The Company is also advancing smart meter installations to provide real-time data insights, helping customers manage their energy usage more effectively. Balancing digital transformation with robust cyber security measures and regulatory compliance is crucial to safeguarding operations.

CLP operates in an ever-evolving cyber security threat landscape, necessitating robust measures to address these threats. CLP’s security policy safeguards the operation by minimising risks and managing business threats, regularly updating standards to keep pace with technological advancements. To ensure that our cyber defences remain resilient and effective, CLP has conducted comprehensive internal and external validation of its security measures, and carried out a cyberattack simulation exercise (“Red Team”) to identify areas that need further strengthening. At the same time, CLP is integrating Artificial Intelligence (AI) principles into its governance approach, ensuring ethical and secure AI development aligned with its core values. This approach is promoting responsible innovation, mitigating risks such as data breaches and algorithmic bias, and enhancing transparency, accountability and trust. Overall, CLP's comprehensive security and AI strategy is supporting its sustainable growth, and helping it to maintain its reputation as a forward-thinking industry leader.

Why is this topic material to stakeholders?

By investing in cyber security, CLP is protecting its infrastructure and its customer data, protection which is essential for maintaining trust and a reputation for reliability among consumers and regulators. Through the integration of AI and digital technologies, CLP is enhancing its grid efficiency and empowering customers by offering improved energy management tools providing greater control over energy use as well as cost savings. Investments in smart grid infrastructure and energy storage are providing scalable solutions that can accommodate emerging technologies and support the integration of renewable energy sources, benefiting both the environment and customers. Alongside these advances, CLP is carefully managing their potential to lead to job displacements or skill gaps.

Customers