CLP Group accelerated its transition toward a low-carbon future during 2025 by reducing greenhouse gas emissions, expanding renewable energy capacity, investing in smart grids, strengthening ESG governance, and advancing circular economy initiatives.
The company’s 2025 Sustainability Report highlights continued progress toward its Climate Vision 2050 through investments in renewable energy, energy storage, sustainable finance, digital electricity networks, and resource efficiency while maintaining strong commitments to employee safety, biodiversity, responsible sourcing, and community development.
Sustainability Leadership Strengthens ESG Governance
CLP’s sustainability strategy is led by David John Simmonds, Chief Strategy, Sustainability and Governance Officer, who oversees the integration of sustainability across the Group’s long-term business strategy and operations. Supporting these efforts, Hendrik Rosenthal, Director – Group Sustainability, leads sustainability implementation, ESG reporting and strategic initiatives, including the company’s 2025 Double Materiality Assessment. The Board Sustainability Committee continues overseeing 14 priority ESG issues, ensuring sustainability remains embedded in corporate decision-making.
Net Zero Targets Remain on Track
CLP continues pursuing ambitious climate goals under its Climate Vision 2050. The company aims to reduce greenhouse gas emissions intensity by 59 percent to 0.26 kg CO₂e/kWh by 2030 compared with the 2019 baseline and achieve net-zero greenhouse gas emissions across its value chain by 2050. It also plans to reduce Scope 3 (Category 11) emissions by 28 percent by 2030 while maintaining its commitment to phase out coal-fired generation before 2040, CLP Sustainability Report 2025 indicated.
During 2025, greenhouse gas emissions intensity improved to 0.50 kg CO₂e/kWh, representing a 21 percent reduction from the 2019 baseline. Scope 3 (Category 11) emissions declined 35 percent compared with 2019, already exceeding the interim reduction target. The company remains on track to lower emissions intensity further to 0.10 kg CO₂e/kWh by 2040 before achieving net zero by 2050.
Greenhouse Gas Emissions Continue to Decline
Total greenhouse gas emissions during 2025 were 45,783 kilotonnes of CO₂e, representing a 9.7 percent year-on-year reduction. Scope 1 emissions totaled 34,356 kilotonnes of CO₂e, while Scope 2 emissions reached 302 kilotonnes of CO₂e. The report also separately tracks biogenic carbon dioxide emissions from biomass and landfill gas in accordance with the Greenhouse Gas Protocol.
Air Emissions and Environmental Performance Improve
CLP continued reducing conventional air pollutants across its operations while advancing its environmental targets.
The company targets a 50 percent reduction in nitrogen oxide (NOx) emissions by 2030 compared with the 2021 baseline and has already achieved a 35 percent reduction.
Sulfur dioxide (SO₂) emissions are targeted to decline 55 percent by 2030, with emissions already reduced by 19 percent versus the 2021 baseline. The report also states SO₂ emissions fell to 29.7 kilotonnes during 2025, equivalent to an 18.8 percent decline.
Particulate matter emissions are targeted to decrease 90 percent by 2030, with a 28 percent reduction already achieved. PM emissions declined to 42.9 kilotonnes during 2025.
Waste products have already declined 74 percent, surpassing the company’s 70 percent reduction target for 2030 five years ahead of schedule. Freshwater consumption has declined 55 percent compared with the 2021 baseline as CLP works toward its 85 percent reduction target by 2030.
Renewable Energy Expansion Accelerates
Renewable energy remained one of CLP’s largest investment priorities during 2025.
The company commissioned more than 380 MW of renewable energy projects across the Asia-Pacific region. Its China business added more than 300 MW of new wind and solar generation while progressing more than 900 MW of additional renewable projects currently under construction.
CLP also continued testing hydrogen-blended natural gas at Hong Kong’s Black Point Power Station to support lower-carbon electricity generation. Meanwhile, Apraava Energy announced the sale of the coal-fired Jhajjar Power Station, supporting CLP’s commitment to exit coal before 2040. Australia’s Yallourn Power Station remains scheduled for retirement by 2028.
Low-Carbon Generation Portfolio Exceeds 23 GW
CLP’s generation and energy storage portfolio reached 23,366 MW, comprising:
Coal: 8,140 MW
Gas: 6,118 MW
Wind: 2,800 MW
Nuclear: 2,750 MW
Solar: 1,650 MW
Energy Storage: 1,107 MW
Hydro: 489 MW
Others: 300 MW
Waste-to-energy: 14 MW
Renewable energy together with nuclear generation accounted for 33 percent of installed generation capacity, strengthening CLP’s low-carbon electricity portfolio.
Smart Energy Investments Improve Grid Performance
CLP continued modernizing electricity infrastructure through major digital investments.
The company has connected more than 2.88 million smart meters in Hong Kong since 2018, exceeding its original target of 2.8 million.
Approximately 48 GWh of electricity was saved through the Eco Building Fund across more than 600 buildings, significantly exceeding the original target covering 400 buildings.
CLP also completed more than 600 commercial and industrial energy audits, delivering approximately 48 GWh of electricity savings.
Its demand response target of 60 MW was significantly exceeded, achieving reductions of 249 MW from residential customers and 77 MW from commercial and industrial customers.
Across Hong Kong, Australia and India, CLP has now deployed 6.2 million smart meters, while its rolling three-year System Average Interruption Frequency Index (SAIFI) improved to 0.20, enhancing electricity supply reliability.
Electric Mobility and Clean Energy Infrastructure Expand
During 2025, CLP opened eight electric vehicle charging stations across Hong Kong, including facilities supporting cross-border travel. The company also completed Hong Kong’s first liquefied natural gas (LNG) bunkering with simultaneous cargo operations while continuing investments in smart grids and advanced metering infrastructure across Hong Kong and Australia.
Sustainable Finance Supports Low-Carbon Investment
CLP continued directing capital toward the energy transition. More than 80 percent of total capital investments during 2025 were allocated to renewable energy, electricity transmission and grid infrastructure. Looking ahead, 77 percent of planned capital expenditure between 2026 and 2030 will continue supporting low-carbon assets.
The company also strengthened its sustainable finance portfolio through HK$20.4 billion in green bonds and sustainability-linked financing facilities.
Circular Economy and Responsible Supply Chains Advance
CLP strengthened resource efficiency across operations by reducing waste generation 74 percent and freshwater consumption 55 percent compared with the 2021 baseline. The company also introduced a 100 percent steel cable drum reuse system across Hong Kong’s electricity network to minimize material waste.
Supply chain sustainability also advanced, with more than 4,000 Tier-1 suppliers adopting the updated Supplier Code of Conduct ahead of the 2026 implementation deadline. Board diversity reached 38 percent female representation while the company maintained zero corruption convictions.
Workforce, Safety and Community Investment
CLP achieved a record-low Lost-Time Injury Frequency Rate of 0.04 per 200,000 work hours while reinforcing contractor safety following a fatal incident at the Sidhpur Wind Farm.
Training remained a priority, with 17.7 percent of employee training hours dedicated to upskilling and reskilling for energy transition, digital technologies and infrastructure resilience. Women now hold 31.6 percent of leadership positions, while 18.8 percent of female employees possess STEM qualifications. The company continues targeting 20 percent female engineering representation by 2030.
Community investment totaled HK$240 million, supporting energy affordability, education, infrastructure and emergency relief. CLP also launched a 10-year HK$10 million native forest conservation programme to plant 25,000 indigenous trees across 10 hectares, supporting biodiversity conservation and long-term carbon sequestration. Employees contributed 21,461 volunteer hours, exceeding the annual target of 16,000 hours.
CLP Accelerates Climate Vision 2050
CLP’s 2025 Sustainability Report demonstrates measurable progress across greenhouse gas reduction, renewable energy expansion, low-carbon investment, sustainable finance, circular economy, digital electricity infrastructure and responsible governance. With 23,366 MW of generation and energy storage capacity, more than 380 MW of renewable projects commissioned during 2025, 45,783 kilotonnes of CO₂e emissions reduced through continued decarbonization efforts, and more than 80 percent of capital investments directed toward low-carbon infrastructure, the company continues advancing its Climate Vision 2050 while creating long-term environmental, social and economic value.
SHAFANA FAZAL
