CLP’s nature-related strategy

Following the initial biodiversity sensitive area analysis conducted in 2023, the SEC endorsed the Nature Plan, including the establishment of an internal taskforce, the implementation approach, and the outcomes of pilot nature-related assessments, which adopted an interactive LEAP approach in 2024. These assessments also utilised the widely recognised Integrated Biodiversity Assessment Tool (IBAT) and Exploring Natural Capital Opportunities, Risks and Exposure (ENCORE) tools, and referenced the Roadmaps to Nature Positive by World Business Council for Sustainable Development (WBCSD), where applicable.

In 2025, CLP further advanced its nature-related initiatives for both existing assets and new investment projects, as outlined below.  

CLP’s approach to nature-related assessment and 2025 progress

Drawing on experience gained from the first pilot nature-related assessment in 2024, an asset-level guideline for assessing nature-related risks and opportunities was established in 2025. During the year, one thermal generation asset applied this guideline and commenced a further pilot nature-related assessment, adding to CLP’s nature-related risk and opportunity profile.

CLP is also strengthening its approach to identifying the exposure to significant biodiversity risks in its new investment projects, so as to achieve the goal of ‘no net loss of biodiversity’. The scope and level of commitment for this approach are currently being finalised.

Outcome and way forward

The findings from these asset-level nature-related assessments are being consolidated into CLP’s Group-level nature-related risk profile, and the associated risks and opportunities reviewed accordingly. Insights gained from the pilot assessments have also been integrated into the CLP Group 2025-27 HSE Strategy. Finalising the scope and commitment of the applicable investment projects will also support the early identification of potential biodiversity risks.

A full-scale assessment of nature-related dependencies, impacts, risks, and opportunities is more than just a one-off exercise. CLP’s iterative approach forms part of its enduring commitment to nature stewardship, enabling it to prioritise measures that help avoid or mitigate negative impacts and create opportunities for restoring the natural environment. It also supports CLP’s efforts to develop relevant roadmaps for the next stage of its nature-related initiatives.

In 2025, CLP furthered its efforts to implement its CE Strategy throughout its operations. In addition to ongoing internal communications via broadcasts and the e-communication platform, CE-related webinars were shared with employees. A series of roadshows were held at major Hong Kong offices to engage employees and enhance their awareness of CE practices. For further information on implementing the CE Strategy in CLP’s sustainable procurement practices, please refer to the Case Study: Advancing circularity in CLP procurement.

As CLP prepares to decommission coal-fired power plants as part of its energy transition, the Company recognises the need to identify CE opportunities in the decommissioning and demolition process. A CE study was kick-started at the end of 2025 to develop an effective approach to identify opportunities to implement the CLPʼs CE Strategy in the process for retiring coal-fired power plants.

For details on CE-related initiatives and programmes in 2025, please refer to the Waste management and materials use section.

Circular Economy (CE) implementation framework

These targets have been calibrated to reflect the decline of coal-fired power in CLPʼs asset portfolio, and to reaffirm the Groupʼs commitment to continual improvement in environmental performance, particularly in reducing air emissions, water use and waste generation.

CLP’s comprehensive strategy to reduce air pollution and enhance water and waste management across all aspects of its operations has enabled it to achieve all the environmental targets set for 2025, and meet its medium-term improvement goals. CLP will continue to keep tracking its progress towards its 2030 environmental targets in continual improvement of its environmental performance.

For more information on performance against group environmental targets, please see the Air emissions, Water and Waste management and materials use sections.