Transcript
Page 1: ISCN 2015 Dialogue 2: Regional Perspectives on Global Change, Jeanne Ng

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 ConferenceAt University of Hong KongAt University of Hong Kong18 June 201518 June 2015

Dr Jeanne NgDr Jeanne NgDirector – Group SustainabilityDirector – Group SustainabilityCLP GroupCLP Group

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Group Sustainability 22

Understanding the drivers of change…

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The changing world…

Changes seem to be faster & sometimes bigger than before… Social expectations changing within generations as well as

across generations…

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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 FinancialPerformance

(e.g. demand forour product,

how we supply & price

our product, etc.)

Expectations ofOur 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

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Emerging challenges from increasing expectations…

Human Rights

Operational Eco-efficiency

Environmental Social Governance

Mat

ure

New

/Em

ergi

ng

Economic-environmental

efficiency Labour Practice

Indicators CorporateGovernance

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

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Proposed Sustainable Development Goals (SDGs)1. End poverty in all its forms everywhere2. End hunger, achieve food security and improved

nutrition, and promote sustainable agriculture3. Ensure healthy lives and promote well-being for all at

all ages4. Ensure inclusive and equitable quality education and

promote life-long learning opportunities for all5. Achieve gender equality and empower all women and

girls6. Ensure availability and sustainable management of

water and sanitation for all7. Ensure access to affordable, reliable, sustainable, and

modern energy for all8. 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.

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Proposed Sustainable Development Goals (SDGs)7. Ensure access to affordable, reliable,

sustainable, and modern energy for all7.1 by 2030 ensure universal access to affordable,

reliable, and modern energy services7.2 increase substantially the share of renewable

energy in the global energy mix by 20307.3 double the global rate of improvement in

energy efficiency by 20307.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.

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Continue learning throughinternational engagements…

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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

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Monitoring some drivers of change…

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External engagements

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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…

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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…

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The energy & climate challenges…

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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.

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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.

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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

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Powering Asia Responsibly…

STRIKING THE BALANCE

How to provide the energy necessary for social and economic development, yet avoid serious environmental impacts…

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Our Climate Vision 2050

Investment decision reflects commitment to lower carbon intensity by 75% between 2007 and 2050…

2014Reached 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…

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Latest science-based & industry projections…

Targets set based on science (IPCC limit to 2o to 3oC) and industry scenarios (of average carbon intensity) published in 2006…still valid…

Source: IEA, World Energy Outlook 2014Source: IEA, World Energy Outlook 2014

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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

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Our corporate sustainability journey…

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CLP Group’s Sustainability JourneyOverview: 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 IETAJoined GRI TAC

Joined IIRC    

Group Sustainability Reporting

2002 Social & Environmental 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 Environmental Affairs

               

Established: CLP Sustainability Forum; ESG Reporting Committee

Established CLP Group Sustainability

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Reinforce integration between sustainability performance & reporting

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Group Sustainability Department

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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?

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Thank You!

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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…

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

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Sustainability governance

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Sustainability focus areas

Economic Sustainability

OurEnvironment

Our Community

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CLP Group Sustainability Framework (rolled-out in 2011 – update in 2015)Published in 2011 CLP Annual Report & online Sustainability Report

Link slide 15

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Sustainability ratings

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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)

Perfo

rman

ce Feed

back L

oo

p

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)

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CLP Group’s 2014 Sustainability Report

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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

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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

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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

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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 IndexCarbon Disclosure Project

Bloomberg ESGHang Seng Corporate Sustainability

IndexAsian Sustainability Ratings

Sustainability perception and ratings

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Sustainability Performance

• Embedding sustainability in business • Managing risks • Realising our potential & maximising opportunities

SustainabilityFramework

Interim Review of Sustainability

Framework Performance

Sustainability performance

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New business models for a new future…

Different models may dominate in different regions...

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Technology Science

Industry Policy

Innovation

© CLP Research Institute 2011

IEA

MITJoint Program

IERE

WEC

BloombergNEF

CleantechGroup

CIGRE

TheClimateGroup

Local / Inter’luniversities

Current international engagements (2014-16)

Membership or subscription

By invitation

IIRC

GEI IETA

WBCSD

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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…

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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