Our Sustainability Governance

To pursue new opportunities in a changing business environment, appropriate governance is key to ensuring relevant emerging risks are being managed and the interests of our stakeholders are safeguarded.

Governance Oversight

 

The CLP Code of Governance (The CLP Code) is our own unique code on corporate governance. It guides our policies and underpins our success. It covers all our business and applies to all directors, officers and employees of CLP Holdings and its subsidiaries. The Code incorporates and goes beyond the principles of good corporate governance, and the two levels of recommendations in The Corporate Governance Code and Corporate Governance Report of the Hong Kong Stock Exchange. The only exception to this is that we do not publish quarterly reports as we do not believe that it is necessary or ultimately of benefit to our shareholders for reasons that we have explained in full on our website.

Our overall sustainability management process is overseen by the Board through the Sustainability Committee; and the Sustainability Executive Committee is responsible for the strategy and execution. With sustainability embedded into our business operations, we have a set of codes and policies, systems, standards and guidelines in place to govern the financial, social, environmental and governance-related aspects of our business at different level.


Board Diversity

We believe that board diversity enhances decision-making capability and a diverse board is more effective in dealing with organisational changes and less likely to suffer from group thinking. It is also an essential element contributing to the sustainable development of the Company.

The Value in Board Diversity

  • Enhances decision-making capacity;
  • Improves effectiveness in dealing with organisational changes;
  • Reduces likelihood of group thinking; and
  • Contributes to sustainable development.

How is this Relevent to our Shareholders?

  • The Nomination Committee reviews the Board Diversity Policy periodically;
  • Shareholders approve the election or re-election of Directors;
  • Directors and the Board are responsible for promoting the shareholders' interests;
  • Shareholders need to be satisfied with the level of board diversity; and
  • We are committed to providing shareholders sufficient information to access our board diversity.

Read more about how we maintain Board diversity


Board Committees

 

Good corporate governance is the foundation of a responsible business, and a key enabler of long-term value creation. It is a conscious decision to do the right thing as a company. It promotes and safeguards the interests of our stakeholders, and enhances our credibility and reputation.

Key aspects of our corporate governance policies and practices are detailed elsewhere in this website and in our Annual Report:

Read more about Corporate Governance

Read the Corporate Governance Report in the 2017 Annual Report

Sustainability Committee

The Sustainability Committee oversees our positions and practices on sustainability issues, principally in relation to social, environmental and ethical matters that affect shareholders and other key stakeholders. Chaired by the CEO, it is the highest governance body on these issues and is chaired by the CEO.

The Committee’s primary responsibilities include:

  • Reviewing, endorsing and reporting to the Board on CLP’s sustainability frameworks, standards, priorities and goals and overseeing CLP group-level strategies, policies and practices on sustainability matters to attain those standards and goals;
  • Reviewing and reporting to relevant Board Committees on key international sustainability trends, benchmarking against peers, sustainability risks and opportunities and other emerging issues;
  • Overseeing, reviewing and evaluating CLP Group’s sustainability performance in terms of internationally-recognised metrics relevant to the industry, as well as the requirements of sustainability stock indices and the desirability of CLP’s inclusion in those indices;
  • Reviewing and advising the Board on CLP’s public reporting with regard to its performance on sustainability matters; and
  • Overseeing CLP’s community, charitable and environmental partnerships, strategies and related group-level policies and making recommendations to the Board on any changes to those partnerships, strategies and policies.

Radar for emerging risks & opportunities

Sustainability Committee, Provident & Retirement Fund Committee, Audit & Risk Committee, Finance & General Committee, Human Resources & Remuneration Committee, Nomination Committee

 

Read the Terms of Reference of the Sustainability Committee

Read the full report on the Sustainability Committee’s activities for 2017

Audit & Risk Committee

A key responsibility of the Audit & Risk Committee is to maintain oversight of our overall risk management process, so as to assure that adequate risk management and internal controls systems are in place and followed. Risks are managed at both the strategic and operational level, to ensure that we can pursue long-term growth and sustainability of our business, without losing sights of the day-to-day operations are meeting the needs of our broad range of stakeholders, both now and into the future.

Specifically, in relation to management of sustainability issues, the Audit & Risk Committee is responsible for reviewing and making sure that the assurance of relevant data in the Sustainability Report is appropriate. Our financial auditor is also responsible for assuring our Environmental, Social and Governance (ESG) data, and the results are presented to Senior Management and the Board through the Audit & Risk Committee.

Read the Terms of Reference of the Audit and Risk Committee

 
 

Read the Audit and Risk Committee Report for 2017

 
 

Sustainability Executive Committee

The CEO, who is a member of the CLP Board and is the Chair of the Sustainability Committee, has executive level responsibility for economic, environmental and social-related matters. The Sustainability Executive Committee (SEC), which comprises CLP Group’s corporate senior executives, was set up in 2016 and is also chaired by the CEO. The SEC discusses, shapes and steers the sustainability agenda and relevant deliverables. It is also the platform for in-depth discussion on new emerging issues and for shaping relevant new strategies. The General Representation Letter in connection with the assurance of our selected ESG data is jointly signed off by our CEO and CFO.

 

The Group Sustainability Department (GSD) is responsible for supporting the SEC in driving sustainability-related issues to the Board level, as well as throughout the organisation - from the Group functions to employees at the business unit level. GSD also convenes the Group Sustainability Forum to facilitate the integration and implementation of sustainability into our existing business processes and systems, from informing our business strategy development and planning processes, to improving our operational performance and corporate reporting. It also inspires and supports the incubation of new capabilities and innovation at the operational level.