CLP’s nature-related governance

For their roles and responsibilities, as well as details of the key nature-related issues discussed in 2025, please refer to the Sustainability governance section.

Under the Board’s oversight, the CLP Group CEO has ultimate accountability for reporting on the governance and performance 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 Health, Safety, Security and Environment governance, strategy, performance and assurance. In 2025, the committee undertook a review of the Group’s environmental governance approach and its overall performance. It also received the results of the first stage of the Group-level nature-related risk assessment for assets under its operational control, and provided feedback on the initial scope and commitments on biodiversity for new investment projects where relevant.

Internal HSE assurance audits, which included environmental aspects, were carried out at selected assets to ensure compliance with relevant HSE directives and standards. Audit reports were submitted to the COO and senior management of relevant business units for approval.

It is also responsible for defining appropriate environmental policies, directives and standards under the Groupʼs HSE Management System to drive continuous improvement. In implementing these goals, it works closely with different business units to ensure that relevant environmental policies, directives and standards are properly applied, and that improvement strategies are effectively embedded and implemented across CLP. In addition, it is driving continual improvement via the ISO 14001 environmental management system, which is mandated across operational controlled assets, and is enhancing the existing environmental evaluation framework throughout the value chain for procurement. Please refer to the Supply chain sustainability management section for details of CLP’s green procurement activities.

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

Processes are in place to ensure CLP understands the relevant emissions and other nature-related laws and regulations relating to its new investment projects and existing assets, and stays abreast of any updates to relevant existing regulations and emerging legislation. 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 2025 that had or may have a significant impact on CLPʼs business units are listed below.

There were six emissions and other nature-related breaches recorded by EnergyAustralia in 2025, none of which resulted in any prosecution or fines:

• There were two administrative licence breaches associated with Tallawarra Power Station. The first breach occurred due to the late submission of the Compliance Report for Tallawarra Power Station to the local Authority; although an extension request was submitted and a verbal endorsement was received prior to the due date, the formal written approval was granted after the due date. The second breach resulted from missing weather monitoring data required for report submission, which was caused by a data logger malfunction. Both incidents were promptly reported to the relevant local authority, and no further regulatory action was taken.
• The third breach related to a short-term carbon monoxide (CO) licence limit exceedance at Jeeralang Power Station during low-load operations, which was reported to the local authority with no further regulatory action.

• The fourth breach related to a minor battery sulfuric acid spill at Yallourn Power Station. The waste contractor removed the contaminated material for treatment but failed to log it in the government waste tracker as required. The incident was reported to the local authority, and no further action was taken.
• The fifth breach related to wastewater discharge from an unlicensed point at Yallourn Power Station due to fire service pond pipe leakage. It was reported to the local authority, and no regulatory action followed.
• The last breach related to an unauthorised visible plume observed from Newport Power Station’s chimney during unit start-up after an outage, before combustion had begun. This visible plume was probably due to dirt and debris inside the boiler being washed to the top of the boiler after the deluge system operated. The incident was reported to the regulatory authority, and no further action was required.