How Nature is governed at CLP

This approach ensures that nature-related and sustainability matters are an integral part of the Group's corporate agenda. As part of the Group's overall sustainability management, the Board-level Sustainability Committee (SusCom) maintains oversight of nature-related impacts, risks and opportunities and has a role in evaluating the adequacy and effectiveness of CLP’s Health, Safety and Environment (HSE) Governance Framework and HSE Management System, supported by the CLP Group Health, Safety, Security and Environment (HSSE) Executive Committee.

Under the Board’s oversight, the CLP Group CEO has ultimate accountability for reporting the performance and governance of HSE management to SusCom, while the authority for day-to-day decision-making on HSE governance and assurance matters across CLP is delegated to the Group COO. The CLP Group HSSE Executive Committee, also chaired by the CEO, appoints senior executives to review and evaluate CLP’s overall governance, strategy, performance and assurance in Health, Safety, Security & Environment. In 2024, this committee endorsed the CLP Group 2025-2027 HSE Strategy, which reaffirms CLP’s nature-related agenda, including the refinement of its risk management process with reference to the TNFD.

It is also responsible for defining appropriate environmental standards for the Group's operations and driving continuous improvement. In implementing these goals, it works closely with different business units to ensure that relevant environmental standards and policies are properly applied and that improvement strategies are being effectively implemented across and embedded in CLP. In coordinating with different business units, it is driving continual improvement of the ISO 14001 environmental management system in ways that go beyond compliance, and enhancing existing environmental evaluation criteria throughout the value chain for procurement and tender specifications.

Various cross-functional working groups have also been established to manage environmental and nature-related initiatives. Their work includes reviewing and refining nature-related frameworks, undertaking the first stage of corporate-level nature-related assessments, developing and implementing circular economy strategies and plans and setting out medium- and long-term environmental targets.

Established processes are in place to ensure CLP understands the relevant emissions and other nature-related laws and regulations relating to its new investments, and also stays abreast of any updates to existing regulations and emerging legislation in this field. Where compliance with new laws and regulations requires a transitional period, CLP will work transparently with regulators where appropriate as it establishes its business practices and makes the investments necessary to satisfy the new requirements.  

CLP closely monitors developments in emissions and other nature-related regulatory requirements. New and/or amended laws and regulations that emerged in 2024 that had or may have a significant impact on CLP's business units are listed below.

In 2024, all five emissions and other nature-related breaches, none of which resulted in any prosecution or fines, were recorded by EnergyAustralia: 

• One related to a short-term carbon monoxide (CO) licence limit exceedance at Jeeralang Power Station during low-load operations. It was reported to the local Authority and no further regulatory action was taken.
• Another breach related to an administrative licence breach by the Yallourn Coal Mine due to the delayed publication of the Yallourn Mine Offset Management Plan online. This was reported to the local Authority, and no further regulatory action was taken.

• The third breach related to a failure to fulfil the licence requirement regarding emissions calculation methodology at Tallawarra B Power Station as the data collected for emissions calculation was invalid due to a defect in the measurement equipment. This was reported to the Environmental Protection Agency (EPA) and its consent was obtained to apply alternative methodologies for emissions calculation until the issue is rectified. No further regulatory action was taken.

• The fourth breach related to a Total Organic Carbon (TOC) licence limit exceedance at Newport Power Station’s drain. The TOC exceedance at the drain was suspected to be caused by algae in the sample, which was not related to discharges from Newport Power Station. It was reported to the local Authority, and no further regulatory action was taken.
• The final breach related to a technical non-compliance caused by a contractor undertaking depositional dust monitoring at PineDale mine for Mount Piper Power Station. It was reported to the regulatory authority, and no further regulatory action was taken.