Management Approach

Managing Financial Capital

We commit to maintaining long-term stability and growth in shareholder value, in recognition of the importance of social and environmental issues to our shareholders and our shared values.
Most Material Topic : Economic Performance

Financial performance

We continued to generate economic value by powering the sustainable development of society and contributing to the economic health of our stakeholders.

In our Value Framework, we have published our Commitment to the responsible management of our investment and business risks and investing to build on and preserve the value of our assets, capabilities and relationships.

The power industry is known for its high investment costs, capital intensity and long payback periods with compounding risk factors. The ability to arrange timely, cost-effective, diversified, multiple-tenured and sustainable funding is a critical factor in managing and expanding our business.

With our growing, cross-border portfolio of businesses, we are exposed to multiple risks of liquidity, financing and refinancing, foreign exchange, interest rates, counterparties and compliance. Risk management is a key component in CLP’s Financial Framework. A holistic risk management framework with effective implementation helps CLP protect profit and improve the reliability of cash flows to contribute to the financial strength of CLP and create value for shareholders.

Read more in our Annual Report

Indirect economic performance

We create economic value not only for our shareholders, but also for our otherstakeholders. CLP generates revenue by selling electricity and gas to our customers. The economic value generated is then redistributed to our various stakeholders – suppliers and contractors, employees, capital providers, governments and the community. The indirect economic value that we create is an important part of what makes our business sustainable. Specifically for the community, we create positive indirect economic impact on the society as many of our community programmes are geared towards education, better health care and quality of life improvement in rural areas, all of which are known to contribute indirectly to economic improvement.

Communicating with shareholders

The Shareholders’ Communication Policy forms the basis for extensive and effective ongoing engagement with our shareholders and the investment community. We have different means of two-way communications, including general meetings such as Annual General Meeting, financial and sustainability reports, announcements, CLP website, investor meetings and analysts briefings. We regard these means as important channels to properly inform our shareholders of CLP’s performance and clarify the company’s future direction where appropriate.

Read more about our Shareholder Services

Anti-competitive behaviour

CLP is committed to compliance with competition and antitrust laws in force in all countries in which we operate – in line with our Code of Conduct and the CLP Group Competition Policy Statement. All CLP directors, officers and employees are expected, in his or her conduct of the company’s business, to observe and comply with competition laws.