Sustainability at CLP

It is not just about what we deliver, but how we deliver and so we abide by the time-honoured values, principles and commitments that have been integral to CLP’s success for over a century.

Our Value Framework

Our Value Framework reflects the moral compass of the company, articulating our values, as well as our vision, mission and commitments to our key stakeholders.

Our vision is to be the leading responsible energy provider in the Asia-Pacific region, from one generation to the next. Our mission is to produce and supply energy with minimal environmental impact to create value for shareholders, customers, employees and the wider community, in the context of a changing world.

These, together with our values and commitments made to our key stakeholders, are core to why sustainability is at the heart of our business. Having a set of unwavering values is critical when changes in our business environment are constantly evolving and the relevant rules or precedents to establish good or best practice may not yet exist. Under such circumstances, our values which are grounded in the fundamental principle of “doing the right thing”, can enable us to innovate and continue to be an industry leader in our region, while minimising potential emerging risks.

Conducting our business in a socially and environmentally responsible way is not just an ethical obligation – it is good for a sustainable business.

 

See our Value Framework and Code of Conduct

Sustainable Development Goals

In 2017, as we looked to develop actual targets, we further streamlined our focus to four priority SDGs we believed to be most relevant to our business and on which we can make a significant impact. 

Climate Action  SDG 13 – Climate Action
Affordable and Clean Energy  SDG 7 – Affordable & Clean Energy.

Climate change is undoubtedly one of the most critical environmental-related challenges for the power sector given it is one of the key sectors contributing to greenhouse gas emissions. One of the solutions for the power sector to address this challenge and to reduce its air pollutant emissions, is to provide affordable and clean energy. Our Climate Vision 2050 launched over a decade ago is testimony to how serious we are in tackling the climate change challenge and in 2017, we continued along our journey by updating our Climate Vision 2050 targets. The details of the new targets are described in the following page. In summary, they include:

  • new "Energy Transition Targets", which are a set of decadal carbon intensity reduction targets spanning out to 2050, contributing to SDG 13 under our Environment focus area; and
  • new “Clean Energy Targets”, which are renewable and non-carbon emitting capacity targets for 2030, contributing to SDG 7 and addressing both our Environment and Economic focus areas, since providing energy is our core business.
Decent Work and Economic Growth  SDG 8 – Decent Work & Economic Growth

Decent Work, a concept which incorporates contractual working arrangements and terms and conditions of work, is key to attracting and retaining the talent needed for powering sustainable business and economic growth. Hence, SDG 8 is an important priority goal covering both our People and Economic focus areas. This goal makes specific reference to equal pay for work of equal value, which is a target we have already set internally to support our gender diversity initiatives and we have also developed a set of targets to help widen the pipeline of females to support our future business strategy:

  • For Women in Leadership (WIL), achieve gender balance in leadership positions by 2030, compared to a 2016 baseline of 22%;
  • For Women in Engineering (WIE), achieve 30% of our engineers to be females by 2030, compared to a 2016 baseline of 9%; and
  • Ensure equal pay for work of equal value is maintained in all our businesses, any gender pay equity gap for females is eliminated, and will meet all relevant local compliance and disclosure standards.
Industry Innovation and Infrastructure  SDG 9 – Industry, Innovation & Infrastructure

We are an industry player in the energy infrastructure sector and we must continually innovate to sustain our business. Our infrastructure is built to support the sustainable development of the communities we operate in and so SDG 9 was deemed an appropriate priority goal for our Economic and Community focus areas. Although we are a power company that has been constantly innovating over the last century, the quickening pace of change in the past two decades has given rise to the need for additional channels of innovation. Commensurate with the endeavours of our new Group Innovation team set up in 2016, we have begun to explore new potential relevant metrics and targets and will report on them once they have been developed.


Climate Vision 2050

 

Much has happened since we published our Climate Vision 2050 back in 2007, ranging from the changing momentum of the international climate agreement, to advances in science and technology, to changes in social expectations.

In 2017, we undertook a review of our Climate Vision 2050 by carrying out scenario analyses to test the impact on our business of varying speeds of transition to a low carbon future in the markets where we operate, along with different choices we may make in implementing our strategy. Based on business plan projections, the regional context for energy market development and technologies that exist today, we developed scenarios of varying ambition on how our business would look under ‘slow’, ‘medium’ and ‘fast’ transition scenarios and set them against the International Energy Agency’s Energy Outlook 2016 projections for world and regional energy development. It appeared that the targets we set a decade ago have predicted the future to some degree – they were close to the ‘New Policies Scenarios’ which assumes that countries meet their Nationally Determined Contribution (NDC) targets submitted under the Paris Agreement.

Although the original targets would still seem to be valid in terms of reflecting the more realistic pace of change in our region, we believed there was room to strengthen them. We tightened our target for 2050, thus moving our trajectory a step closer towards a carbon neutral world. These new targets will of course still be challenging, even though we have considered the pace and realities of the development of energy markets in the Asia Pacific region. 

Changes to the targets include:

  • Tightening of our cornerstone carbon intensity reduction target from 75% to 82% by 2050 (compared to 2007);
  • Developing new interim carbon intensity reduction targets of 40% by 2030 and 60% by 2040 (compared to 2007), while taking away the carbon intensity reduction target of 46% by 2035 to align with international convention; and
  • Establishing a renewable energy target of 30% and a non-carbon emitting target of 40% by 2030.

In order to reflect more holistically on our generation capacity requirements, we will also begin to report our progress on these targets on a basis that includes capacity purchase, in addition to what we own. We will continue to regularly review our targets to ensure we take into consideration the momentum of change over time.

Find out our progress towards these targets

More detail

Our Sustainability Governance

We integrate sustainability-related governance into our corporate governance structure from the Board level down to the operational business unit level.

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Compliance and Beyond

We comply with laws and regulations, and voluntarily follow standards that reflect our principles and values.

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