Company Information
Name: CLP Holdings Ltd
Market: Hong Kong SAR, China
Installed capacity (as of 2023):¹ 15.8 GW (Thermal), 6.4 GW (Non-thermal)
Climate-related targets committed:
Long-term:
– Net zero GHG emissions across the value chain by 2050
– Phaseout coal-based assets by 2040
Medium-term:
– 59% reduction compared to the 2019 baseline in GHG emission intensity to 0.26 kg CO₂e/kWh by 2030
– 28% reduction compared to 2019 baseline in absolute Scope 3 (Category 11) emissions by 2030
Engagement Updates
CLP is the most progressive company in AUEP and the most aligned with AUEP’s key expectations. In terms of the company’s climate governance, CLP has shown its board of directors are competent in tackling climate risks and includes climate in its remuneration policy for executive directors and senior management. The performance measures of annual incentives include progress in meeting science-based GHG emissions intensity targets and phasing out coal-based assets.
This year, CLP has updated its transition plan, Climate Vision 2050,² with a strengthened target to decarbonize the company at a faster pace. CLP is committed to reducing the GHG emissions intensity of electricity sold to 0.26kg CO₂e/kWh by 2030, compared to the previous target of 0.3kg CO₂e/kWh. This will reduce the company’s implied temperature rise from 1.81°C to 1.73°C. The Climate Vision 2050 report was prepared using the ISSB S2 Climate-Related Disclosures standard. The company is also committed to reviewing its targets for Climate Vision 2050 at least every three years.
On the managed phaseout discussion of its coal fired power plants, CLP mentioned it has provided financial assistance (e.g., subsidized energy) to people and community sectors in need. It provides ongoing support for those impacted by its coal fired power plants phaseouts and other structural changes to the energy system. EnergyAustralia, a CLP-owned power utility company in Australia, has also set a clear path to close Yallourn Power Station in mid-2028. It has given seven years’ notice to enable thoughtful planning and support to staff and the local community.³ Regarding the physical resilience of its assets, CLP has conducted asset-level physical climate risk assessments and developed adaptation measures to enhance individual asset resilience in each region. CLP works closely with the Hong Kong Government on the five-year development plan, supporting the company’s ongoing decarbonization effort.
The engagement group will continue to work with the company on using carbon credits, climate key performance indicators (KPIs), remuneration, and early coal phaseout discussions.