Engagement Updates
CLP Group is a major investor-owned power company in the Asia–Pacific region, headquartered in Hong Kong. It operates across the full energy value chain, including power generation, transmission, and retail, with significant investments in Hong Kong, Mainland China, Australia, India, Taiwan, and Thailand.
Investors in the CLP engagement group have engaged the company on its decarbonisation strategy (pathways in key markets such as Hong Kong, India, and Australia), just transition and climate-related key performance indicators (KPIs) in executive remuneration.
In the coming year, investors will continue to monitor CLP’s progress on coal phase-out discussions, just transition details for assets outside Australia, and quantified mid-term targets for climate-related KPIs in executive remuneration.
Decarbonisation Strategy
CLP’s decarbonisation strategy, Climate Vision 2050, has informed the company’s business strategy since 2007. It focuses on five key approaches: 1) accelerate the phase-out of coal-based assets and cease developing new coal-fired generation assets; 2) optimise the fuel mix and invest more in non-carbon energy; 3) focus on emissions reductions in line with science-based targets and review targets at least every three years. 4) pursue further opportunities in transmission and distribution, smart energy services, and other transition enablers; and 5) support customers in using energy more efficiently and backing renewable energy development.
CLP also has outlined a phase-out schedule of some of its fossil fuel assets in Hong Kong, Mainland China, Australia, and India.²
The Science Based Target Initiative (SBTi) validated CLP’s near-term climate targets (above) in 2021.³ It is currently the only AUEP company with this alignment.
Physical Resilience
CLP discloses its climate physical risk assessment against its different asset types, markets and hazards, such as extreme heat, water shortage, flood, typhoons, windstorms and wildfires.⁴ The company also integrates climate in its business continuity and emergency response plans, such as climate-integrated emergency drills for extreme weather (e.g. typhoons), site-specific plans for substations, data centres, and backup systems, and cyber incident simulations for climate-induced tech disruptions.⁵
Just Transition
CLP is committed to engaging different categories of stakeholders on just transition and discloses a list of key stakeholders they are engaging with.⁶ Although CLP has yet to publish a comprehensive Just Transition plan for its entire business, in Australia, EnergyAustralia, a wholly owned subsidiary of the CLP Group, launched its AUD$10 million Yallourn Transition Program. The program provides tailored support to help the workforce plan, prepare and reskill for the future beyond Yallourn Power Station retirement in 2028.⁷
Public Policy
CLP publicly supports the Paris Agreement and the Hong Kong SAR Government’s Hong Kong Climate Action Plan 2050 after announcing it in 2021. The company also discloses its contributions and engagements with organisations actively involved in climate change and broader energy market policies, and actively responds to major public policy consultations.⁸