Globally, different methodologies are used to measure organisationsʼ sustainability performance. CLPʼs 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)
The HKICPA has developed the Hong Kong Sustainability Disclosure Standards (“the Hong Kong Standards”) on a full alignment basis with the international standards by International Sustainability Standards Board (ISSB). The HKICPA issued the final Hong Kong Standards at the end of 2024 with an effective date of 1 August 2025. CLP has prepared its 2025 Annual Report in accordance with HKFRS S1 and in compliance with 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. In 2025, CLP has provided further detailed information about financial effects arising from climate-related risks, encompassing both physical and transition risks. Physical risks, such as extreme weather events and changing climate patterns, may result in increased operational costs and asset impairment. Transition risks, including shifts in policy, market preferences, and technological advancements towards a low-carbon economy, can lead to changes in asset values, compliance costs, and potential reallocation of capital. CLP assesses and discloses these effects in its annual reporting to ensure transparency and to help stakeholders understand how climate-related risks influence the Group’s financial performance and strategic planning. In addition, CLP published a comprehensive climate transition plan titled CLPʼs Climate Vision 2050: Powering an orderly transition in March 2024.
The Australian Accounting Standards Board (AASB)ʼs Australian Sustainability Reporting Standards (ASRS)
In Australia, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Act 2024 became effective in early September 2024. This legislation mandates that 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) in 2024. The AASB has confirmed that these standards closely align with the ISSB’s IFRS S1 and IFRS S2 requirements, ensuring comparability and consistency in global sustainability disclosures. As stipulated, entities are required to make climate-related disclosures for annual financial reporting periods commencing on or after 1 January 2025, with phased implementation for different entity sizes. As a response to this, EnergyAustralia has published a standalone 2025 Sustainability Report covering the required climate-related disclosures.
The Stock Exchange of Hong Kongʼs 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 with reference to 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. 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.
In November 2025, the ISSB announced plans to address investor needs by initiating standard-setting activities aimed at introducing additional disclosure requirements for nature-related risks and opportunities not already covered in the explicit provisions of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information and IFRS S2 Climate-related Disclosures.
To support this initiative, the ISSB will leverage the TNFD framework, adopting its holistic perspective on nature that encompasses all aspects rather than focusing on specific subtopics. The ISSB intends to incorporate TNFD’s recommendations, metrics, and guidance, including the Locate, Evaluate, Assess, Prepare (LEAP) approach where appropriate.
The ISSB aims to publish an Exposure Draft outlining these incremental disclosure requirements in October 2026.
International and Local Sustainability Assurance Standards
The International Auditing and Assurance Standards Board (IAASB) published ISSA 5000 in December 2024. It serves as a global assurance standard, establishing principles and requirements for providing either limited or reasonable assurance over sustainability information—including climate-related and broader ESG disclosures—prepared under any suitable reporting framework, such as the HKEX ESG Reporting Code, HKFRS, GRI, and TNFD. The standard is both principles-based and scalable, encompassing all phases of the engagement lifecycle: acceptance, planning and risk assessment, materiality determination, evidence gathering (including controls, data, and estimates), evaluation, and reporting, as well as associated ethical and independence requirements.
The effective date of the standard is set for assurance engagements concerning sustainability information for periods commencing on or after 15 December 2026, with early adoption permitted.
In Hong Kong, HKICPA issued in March 2025 the HKSSA 5000 “General Requirements for Sustainability Assurance Engagements”, which is fully aligned with ISSA 5000 and is the overarching local standard for sustainability assurance. HKSSA 5000 will be implemented according to the same timeline, enabling utilities and other listed issuers to plan for the assurance of sustainability information for financial years 2027, or earlier subject to voluntary adoption.
Mandatory assurance is expected to be conducted in accordance with HKSSA 5000, which is fully harmonised with ISSA 5000. Following further consultations by HKEX and relevant financial regulators regarding Mandatory HKSDS Reporting, entities subject to such requirements must secure limited assurance covering:
Scope 1 and 2 greenhouse gas emission disclosures from the third financial year of Mandatory HKSDS Reporting;
All remaining mandated disclosures under HKSDS from the fifth financial year of the reporting regime.
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