Our Nature strategy

In 2024, the SEC endorsed the Nature Plan 2024, which included the establishment of an internal taskforce to implement pilot nature-related assessments.

The 2024 pilot nature-related assessments focused on pilot programmes that adopt the iterative LEAP approach, referencing the sector-specific guidance for electric utilities and power generators issued by TNFD in June 2024. The results of these pilot programmes support the development of the CLP nature-related risks and opportunities profile.

Assets selected for the pilot programmes in 2024 were based on findings from initial biodiversity sensitive area analysis in 2023. These assets were either located in close proximity of the key biodiversity-sensitive areas or potentially had nature dependencies or impacts. These pilot programmes followed the LEAP approach below:

CLP’s approach to nature-related assessment

At the “Locate” stage, location-specific information was consolidated to analyse the condition of CLP's assets. This included results from Integrated Biodiversity Assessment Tool (IBAT), Climate Assessment Tool, Environmental Impact Assessment (EIA) reports, Environmental Management Systems (EMS), Group Operations Information System (GOIS) and meteorological data as well as observations from CLP's assets. 

Moving to the “Evaluate” stage, a list of ecosystem services dependencies and impact drivers on nature for the respective assets were compiled. Each was assigned a materiality rating, making reference to the ENCORE database and the findings from the "Locate" stage.  

Subsequently, at the “Assess” stage, asset-specific risks were further derived based on associated dependencies and impact drivers with a higher materiality rating, which were then categorised into physical, transition and systemic risks. Each risk category was rated for prioritisation, and efforts made to identify opportunities where possible and applicable. Through applying asset-specific information during the iterative LEAP process, insights were gained to support the development of the LEAP process specific to CLP. 

Outcome and way forward

The findings of these pilots are serving as a reference for validating the methodologies being used in the nature-related assessments of other assets. While it is a time-consuming process to comprehensively assess nature-related dependencies, impacts, risks and opportunities, the findings from these asset-level nature-related assessments will be consolidated into CLP’s corporate-level nature-related risk profile, and the associated risks and opportunities reviewed. This will help CLP to prioritise the actions needed to avoid or reduce negative impacts, and to promote opportunities to restore the natural environment.

The insights derived from the pilot programmes have also been integrated into the CLP Group 2025-27 HSE Strategy, strengthening CLP’s readiness to address nature-related risks and opportunities. Following the pilot assessments, the use of IBAT during the project inception stage became an established practice in 2024 to avoid biodiversity-sensitive investment projects and minimise nature-related risks. A review of the environmental management systems of CLP's operationally controlled assets has begun which includes its nature-related issues. The significant environmental aspect registers of CLP Power’s Generation Business Unit for operation and maintenance activities were reviewed to include nature-related impact drivers and dependencies, along with associated mitigation measures, in 2024. Additionally, in 2024, EnergyAustralia announced that it will be an adopter of TNFD.

Following the formation of the CLP Group Circular Economy Steering Committee in 2023, a comprehensive CE Strategy was developed, encompassing the three pillars of Circular Design and Input, Circular Use and Value Recovery.

The three pillars of CLP’s CE strategy represent a comprehensive framework under which CE concepts can be integrated into CLP's operations. The CE Strategy is also applicable at every stage of the project and asset lifecycle, presenting opportunities to enhance circularity throughout all phases of operations.

A CE baseline survey has been conducted across CLP’s operationally controlled assets to identify CE-related initiatives and programmes currently being implemented. At the end of 2024, a CLP Group implementation guideline was also issued to support the execution of the CE strategy within its operations, and to foster further CE initiatives.

CE-related knowledge and messages are communicated through internal broadcasts and via the business communication platform on a monthly basis, to help foster a CE-centric culture and enhance CLP staff engagement.

For details on CE-related initiatives and programmes in 2024, please refer to the Waste management and material use section.

Circular Economy (CE) framework

These targets cover air emissions (sulphur dioxide, nitrogen oxides and total particulate matter), freshwater consumption and waste generation for all its operationally controlled assets.

The current targets were formulated based on the environmental target-setting methodology reviewed in 2023, and are focused on analysing performance in terms of reducing environmental discharges. For details, please refer to the Air emissions, Water and Waste management and material use sections.