Jeanne Ng Director – Group Sustainability, China Light and Power (keynote)

1. Regional Perspectives on Global Change:Regional Perspectives on Global Change:
The Case of Energy & Climate ChangeThe Case of Energy & Climate Change
ISCN 2015 ConferenceISCN 2015 Conference
At University of Hong KongAt University of Hong Kong
18 June 201518 June 2015
Dr Jeanne NgDr Jeanne Ng
Director – Group SustainabilityDirector – Group Sustainability
CLP GroupCLP Group

2. Group Sustainability 22
Understanding the drivers of change…

3. Group Sustainability 3
The changing world…
 Changes seem to be faster & sometimes bigger than before…
 Social expectations changing within generations as well as
across generations…

4. Group Sustainability 4
People are at the heart of all change…
People dictate what economic, environmental and social ‘norms’ are…
Our Environmental
Performance
(e.g. new regulations,
new impacts, how
much beyond
compliance, etc.)
Our Financial
Performance
(e.g. demand for
our product,
how we supply
& price
our product, etc.)
Expectations of
Our Stakeholders
(e.g.
society,
customers,
shareholders,
staff,
etc.)
EnvironmentalEconomic Social
Impact on our operational costs and…
Impact upon the…
Influences the scope of our…
Impact upon the…
Impact Impact

5. Group Sustainability 5
Emerging challenges from increasing expectations…
Human
Rights
Operational
Eco-efficiency
Environmental Social Governance
MatureNew/Emerging
Economic-
environmental
efficiency Labour
Practice
Indicators Corporate
Governance
Ethics &
Integrity
Diversity
(all forms)
Not new themselves but a new level of detail &
complexity of transparency & info required plus
the challenges of changing socio-political-
economic context

6. Group Sustainability 6
Proposed Sustainable Development Goals
(SDGs)
1. End poverty in all its forms everywhere
2. End hunger, achieve food security and improved
nutrition, and promote sustainable agriculture
3. Ensure healthy lives and promote well-being for all at
all ages
4. Ensure inclusive and equitable quality education and
promote life-long learning opportunities for all
5. Achieve gender equality and empower all women and
girls
6. Ensure availability and sustainable management of
water and sanitation for all
7. Ensure access to affordable, reliable, sustainable, and
modern energy for all
8. Promote sustained, inclusive and sustainable economic
growth, full and productive employment and decent
work for all
9. Build resilient infrastructure, promote inclusive and
sustainable industrialization and foster innovation
10. Reduce inequality within and among countries
11. Make cities and human settlements inclusive, safe,
resilient and sustainable
12. Ensure sustainable consumption and production
patterns
13. Take urgent action to combat climate change and its
impacts
14. Conserve and sustainably use the oceans, seas and
marine resources for sustainable development
15. Protect, restore and promote sustainable use of
terrestrial ecosystems, sustainably manage forests,
combat desertification, and halt and reverse land
degradation and halt biodiversity loss
16. Promote peaceful and inclusive societies for
sustainable development, provide access to justice for
all and build effective, accountable and inclusive
institutions at all levels
17. Strengthen the means of implementation and revitalize
the global partnership for sustainable development
Each proposed goal is accompanied by a set of targets (169 in total) intended to
measure progress towards the achievement of these objectives.

7. Group Sustainability 7
Proposed Sustainable Development Goals
(SDGs)
7. Ensure access to affordable, reliable,
sustainable, and modern energy for all
7.1 by 2030 ensure universal access to affordable,
reliable, and modern energy services
7.2 increase substantially the share of renewable
energy in the global energy mix by 2030
7.3 double the global rate of improvement in
energy efficiency by 2030
7.a by 2030 enhance international cooperation to
facilitate access to clean energy research and
technologies, including renewable energy,
energy efficiency, and advanced and cleaner
fossil fuel technologies, and promote
investment in energy infrastructure and clean
energy technologies
7.b by 2030 expand infrastructure and upgrade
technology for supplying modern and
sustainable energy services for all in
developing countries, particularly LDCs and
SIDS
Each proposed goal is accompanied by a set of targets (169 in total) intended to
measure progress towards the achievement of these objectives.

8. 8
Continue learning through
international engagements…

9. 9
By providing thought leadership
Build capacities & knowledge for smart
decision making
By monitoring global issues and emerging
trends
Identify emerging international & local risks
and opportunities
By benchmarking & introducing international
best practices
Build trust to advocate sound policies
Objectives of international engagements

10. Group Sustainability 10
Monitoring some drivers of change…

11. 11
External engagements

12. 12
COP20 in Lima  Switch from ‘cap-and-trade’
to ‘voluntary
contributions’…
Makes it easier for striking
an agreement but likely a
weaker one than can meet
the 2°limit…
 Revisiting much needed but less developed
technologies like carbon capture and storage…
But it is important to try to scale up what is
already viable today, such as energy efficiency
and renewable energy…
 Positive energy from US and China announcement in Nov…
US to cut carbon emissions by 26-28% from 2005 levels by
2025 & China to peak its carbon emissions before 2030…
 Adaptation continues to be a
high priority for developing
countries…
And so is currently included in
the INDC description…

13. 13
COP20 in Lima
 Will the GCF hinder progress or the efficacy of international trading?
With the availability of direct funding as well as national trading schemes wanting to strengthen
their national focus in the short term, the timing of the post-Kyoto trading scheme being post
2020 may be appropriate…
 There has been more discussion on possible new financing mechanisms…
Green bonds for example seems like a valid mechanism, but from a shareholder’s
perspective, if the risk of the green bond essentially rides on the risk of the parent company,
then is the green bond really a good idea?
 The call for a price on
carbon intensifies…
A number panels basically
replicated this message,
with representatives from
both business and
governments…

14. Group Sustainability 14
The energy & climate challenges…

15. 15
15
Energy and climate change
Power sector has the largest potential for carbon emission reductions...
Source: Redrawing the Energy-Climate Map, World Energy Outlook Special Report,
International Energy Agency, Figure 3.15, Pg.114, 2013.
Source: CO2 Emissions From Fuel Combustion - Highlights, 2013
Edition, International Energy Agency, Figure 9, Pg.11, 2013.

16. 16
16
Equity constraints in carbon emissions intensity
A country’s carbon intensity is influenced by the energy/fuel mix portfolio of
the country as well as economic and industrial activity
Source: Redrawing the Energy-Climate Map, World Energy Outlook Special Report, International Energy Agency, Figure 1.14, Pg.31, 2013.

17. 17
WBCSD Energy & Climate:
Towards A Low Carbon
Energy Mix
Balancing the drivers
 The global energy mix is an aggregate of different regional mixes
 Change continues to be driven by the interaction among resource
availability, energy security, economic growth, policies, market
forces, and technology.
 Environmental constraints, access issues and affordability also
influence the mix, as do existing and sometimes changing social,
political and economic systems in place.
 Different cultural values and priorities when balancing these
drivers, e.g. the need to ensure social equity or stability versus
some loss of economic efficiency in order to achieve this stability,
may also impact the local mix.
EconomicEconomic
SocialSocialEnvironmentEnvironment

18. 18
Powering Asia Responsibly…
STRIKING THE
BALANCE
How to provide the energy necessary for social and economic development, yet
avoid serious environmental impacts…

19. 19
Our Climate Vision 2050
Investment decision reflects commitment to lower carbon intensity by 75%
between 2007 and 2050…
2014
Reached 14.1%
renewable energy
generation
(CLP’s renewable
energy generating
capacity grew from less
than 100 MW in 2004
to over 2,600 MW in
2014 and is currently
the largest foreign
investor in wind farms
in India and China)
Carbon intensity back
up to 0.84kg
CO2/kWh…

20. 20
Latest science-based & industry projections…
Targets set based on science (IPCC limit to 2o
to 3o
C) and industry scenarios
(of average carbon intensity) published in 2006…still valid…
Source: IEA, World Energy Outlook 2014

21. Group Sustainability 21
Experience Gained In Asia Pacific So Far…
 Full commercialisation of impactful low-carbon power generation
technologies are still years and billions of dollars away
 Existing low-carbon technologies remain more expensive than
conventional generation and are unable to provide the scale and
reliability needed
 Clear energy and
climate change policies
are essential to
mobilizing the billions
needed for clean energy
investments
 Different markets,
different opportunities
Generation investment costs vary from country to country…and over time…different
policies needed in different markets…
Tracking Clean Energy Progress 2013, IEA

22. 22
Our corporate sustainability journey…

23. 23
CLP Group’s Sustainability Journey
Overview: 2003 - 2015
Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Group
Sustainability
Frameworks &
Strategies
Value
Framework
Group
Renewable
Energy
Target (5%
by 2010)
CLP Climate
Vision 2050
Climate
Vision 2050
updated
Group
Sustainability
Framework
Capacity
Building From
International
Engagements
Already
joined :
WEC HK;
WBCSD
Joined IETA
Joined GRI
TAC
Joined IIRC
Group
Sustainability
Reporting
2002 Social
&
Environment
al Report
(SER)
2006 SER &
Online
Sustainability
Report (*refer
to GRI G3)
2007 Online
Sustainability
Report & “In
Essence”
hard copy
(*GRI G3 A+)
2011 Online
Sustainability
Report only
(GRI G3 A+)
& Integrated
Annual
Report
2012 Online
SR (GRI G3.1
A+) &
2012 ESG
Webcast
Briefing
Adopt GRI
G4
Guidelines;
Apply xbrl
tagging to
2014 SR
Sustainability
Rankings
Responded
to Carbon
Disclosure
Project
On DJSI
Asia Pacific
& DJSI Asia
Pacific 40
On Hang
Seng
Corporate
Sustainability
Index
Board
Oversight
Social,
Environmental
& Ethics
Committee
(SEE)
Renamed as
Sustainability
Committee
Sustainability
Committee
Report
included in
Integrated
Annual Report
Reporting
progress on
ESG data
mgt. to SC &
Audit
Committees
Reviewed
Sustainability
Committee
TOR
Organisational
Capacity
Established
CLP Group
Environment
al Affairs
Established:
CLP
Sustainability
Forum; ESG
Reporting
Committee
Established
CLP Group
Sustainability

24. 24
Reinforce integration between sustainability
performance & reporting

25. 25
Group Sustainability Department

26. 26
The academic institution’s sustainability journey…
 Sustainability reporting
 to have a coordinated overall picture on
performance and values that can be
shared across the institution by faculty,
staff and students
 Sustainability strategy (or long term
continuity plan)
 Research – more applied, etc?
 Education – formats & channels; new
topical areas; more experiential
learning, etc???
 Funding – balancing financial needs
versus outcome quality???
 Sustainability capabilities
 Resource & process management and
improvement
 Analytics
 Innovation
 Communications
What will be
potential
disruptors of
academia’s
current business
models?
What could be the
new academic
business models
of the future?
What will be
potential
disruptors of
academia’s
current business
models?
What could be the
new academic
business models
of the future?

27. Thank You!

28. Group Sustainability 28
As growing number of people gain access to increasing amounts
of information at close to real-time frequencies:
 Increasing environmental & social awareness – more public
expectations and thus more pressure
 Increasing regulation – more stringent policies and regulations
 Increasing scope – e.g. additional pollutants and social-related
issues
 Increasing data quantity & quality – more data and
independent verification to decrease uncertainty
 New impacts – as we use new technologies, new or
unexpected impacts may come to the fore
Changing the risk & opportunity landscape
Innovation can help provide solutions to surviving in this changing environment & perhaps
mitigate some of the rising costs associated with the internalisation of social and
environmental impacs…

29. 29
CLP Group Value Framework (updated
2011 – update in 2015)

30. 30
Sustainability governance

31. 31
Sustainability focus areas
Economic
Sustainability
Our
Environment
Our
Community

32. 32
CLP Group Sustainability Framework
(rolled-out in 2011 – update in 2015)
Published in 2011 CLP Annual Report & online Sustainability Report
Link slide 15

33. 33
Sustainability ratings

34. 34
Group Function
discussions on SF, b-
plan
(Aug/Sep)
Interim SF progress
reports (& discussions)
(Jun/Jul)
Annual SF progress
reports (& discussions)
(Jan/Feb)
Group Function
discussions on post-SR
review, indices & SF
(Apr/May)
CLP Group
Organisational
Performance
(Feb)
Integrated Annual &
Sustainability Reports
(Mar)
Sustainability Performance Management Sustainability Reporting
Schedule
Sustainability Committee & GEC
Meeting Schedule
Internal Internal/External External
External Sustainability/
ESG Indices & Surveys
(Apr-Jun)
Business Unit
discussions on SF goals
& SR/GRI
(Sep/Oct)
Business planning cycle
kick-off for BUs
(Aug/Sep)
Business Plan
Submission & Approval
(Oct/Nov)
Integration into existing business processes
Audit Committee
meeting
(Feb)
Sustainability
Committee
meeting
(Feb)
Group Executive
Committee
meeting
(Apr/May)
Group Executive
Committee
meeting (Feb)
CEO Report P1
(Apr/May)
CEO Report P5
(Jan/Feb)
CEO Report P3
(Sep/Oct)
CEO Report P2
(Jul/Aug)
CEO Report
P4 (Nov-Dec)
Annual sustainability
indices rankings
(Jan/Feb)
PerformanceFeedbackLoop
Sustainability
Committee meeting
(Aug/Sep)
Sustainability
Committee meeting
(Nov/Dec)
Group Executive
Committee
meeting
(Jul/Aug)
Group Executive
Committee
meeting
(Oct/Nov)
Group Function
discussions on indices
& SF performance
(Sep/Oct)

35. 35
CLP Group’s 2014 Sustainability Report

36. 36
CLP Group 2014 Integrated Annual Report
 2014 Annual Report is our 4th
Integrated Report
 Following the <IR> Framework
issued in Dec 2013
 Utilise the <IR> Framework to
organise our financial,
environmental and social
reporting
 A CLP interpretation on the
Prototype Framework will evolve
over time

37. 37
Internal sustainability communications
 Group Sustainability Forum
 Sustainability champions across BUs and GFs
 Quarterly calls (agenda & meeting notes available)
 Annual/Biennial Conference (starting 2014)
 Regular CLP Sustainability Capacity Building seminars/sessions
 External speakers (international)
 Internal updates (starting 2014)
 Group Sustainability Support
intranet portal
 Launch in 2014
 Group Function ESG Reporting
Committee
 Launched in 2013

38. 38
Sustainability
Reporting
• Transparent
disclosure and
reporting to
stakeholders
• Articulation of issues
and engagement on
expectations
Sustainability
Report (SR)
GRI standards
Feedback for 2013
Sustainability
Report
Sustainability reporting

39. 39
Sustainability Perceptions &
Ratings
• Measurement and rankings
• Diverse and varying perspectives &
expectations
• Rate the Raters
• Current scoring
• Where we are doing well
• Where we can do better
Dow Jones Sustainability Index
Carbon Disclosure Project
Bloomberg ESG
Hang Seng Corporate Sustainability
Index
Asian Sustainability Ratings
Sustainability perception and ratings

40. 40
Sustainability
Performance
• Embedding
sustainability in business
• Managing risks
• Realising our potential
& maximising
opportunities
Sustainability
Framework
Interim Review of
Sustainability
Framework
Performance
Sustainability performance

41. Group Sustainability 41
New business models for a new future…
Different models may dominate in different regions...

42. 42
Technology Science
Industry Policy
Innovation
© CLP Research Institute 2011
IEA
MIT
Joint Program
IERE
WEC
Bloomberg
NEF
Cleantech
Group
CIGRE
The
Climate
Group
Local / Inter’l
universities
Current international engagements
(2014-16)
Membership or
subscription
By invitation
IIRC
GEI IETA
WBCSD

43. 43
The Rollercoaster Ride So Far…
 COP13 Bali – good progress (Bali Roadmap)
 COP14 Poznan – working progress
 COP15 Copenhagen – disaster (Copenhagen Accord with no
official agreement)
 COP16 Cancun – process saved, but change to pledge & review
(agreement on various elements of Copenhagen Accord, i.e.
submission of reduction targets by Annex 1 countries,
Nationally Appropriate Mitigation Actions (NAMAs) from some
non-Annex 1 countries with some including voluntary
reduction targets, fast track USD30 billion with ramp up to
USD100 billion per year by 2020, REDD+)…but climate not…
 COP17 Durban – Durban Platform for Enhanced Action to deliver a universal legal agreement by no later
than 2015, to be implemented by 2020 (package includes the Green Climate Fund, an Adaptation
Committee designed to improve the coordination of adaptation actions on a global scale, and a
Technology Mechanism)…but commitments fall short of what is needed…
 COP18 Doha – working progress (from only Annex 1 to all countries make obligations), extended Kyoto
with 2nd
commitment period from 2012 to 2020…
 COP19 Warsaw – working progress (post 2020 reduction targets by Q1 2015, Warsaw Framework for
REDD+ finance, Warsaw International Mechanism for Loss & Damage, GCF and COP institutional
arrangements, ADP text finalised)…
 COP20 Lima – working progress, although momentum seems better now that it has become a pledge &
comply (INDCs by Mar 2015) rather than a technical cap & trade (GCF passed USD10B, Lima Call for
Climate Action - decided on a draft text as basis for negotiations leading up to the December 2015 Paris
summit)… but commitments likely to fall short of what is needed…

44. 44
The potential cost of mitigation
Need a carbon signal – some measures can pay for themselves but many for the
larger reductions still not commercially viable today
Source: Version 2.1 of the Global Greenhouse Gas Abatement Cost Curve, McKinsey, 2010