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

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<ol><li> 1. Regional Perspectives on Global Change:Regional Perspectives on Global Change: The Case of Energy &amp; Climate ChangeThe Case of Energy &amp; 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 </li><li> 2. Group Sustainability 22 Understanding the drivers of change </li><li> 3. Group Sustainability 3 The changing world Changes seem to be faster &amp; sometimes bigger than before Social expectations changing within generations as well as across generations </li><li> 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 &amp; 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 </li><li> 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 &amp; Integrity Diversity (all forms) Not new themselves but a new level of detail &amp; complexity of transparency &amp; info required plus the challenges of changing socio-political- economic context </li><li> 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. </li><li> 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. </li><li> 8. 8 Continue learning through international engagements </li><li> 9. 9 By providing thought leadership Build capacities &amp; knowledge for smart decision making By monitoring global issues and emerging trends Identify emerging international &amp; local risks and opportunities By benchmarking &amp; introducing international best practices Build trust to advocate sound policies Objectives of international engagements </li><li> 10. Group Sustainability 10 Monitoring some drivers of change </li><li> 11. 11 External engagements </li><li> 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 2limit 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 &amp; 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 </li><li> 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 shareholders 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 </li><li> 14. Group Sustainability 14 The energy &amp; climate challenges </li><li> 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. </li><li> 16. 16 16 Equity constraints in carbon emissions intensity A countrys 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. </li><li> 17. 17 WBCSD Energy &amp; 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 </li><li> 18. 18 Powering Asia Responsibly STRIKING THE BALANCE How to provide the energy necessary for social and economic development, yet avoid serious environmental impacts </li><li> 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 (CLPs 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 </li><li> 20. 20 Latest science-based &amp; industry projections Targets set based on science (IPCC limit to 2o to 3o C) and industry scenarios (of average carbon intensity) published in 2006still valid Source: IEA, World Energy Outlook 2014 </li><li> 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 countryand over timedifferent policies needed in different markets Tracking Clean Energy Progress 2013, IEA </li><li> 22. 22 Our corporate sustainability journey </li><li> 23. 23 CLP Groups Sustainability Journey Overview: 2003 - 2015 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Group Sustainability Frameworks &amp; 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 &amp; Environment al Report (SER) 2006 SER &amp; Online Sustainability Report (*refer to GRI G3) 2007 Online Sustainability Report &amp; In Essence hard copy (*GRI G3 A+) 2011 Online Sustainability Report only (GRI G3 A+) &amp; Integrated Annual Report 2012 Online SR (GRI G3.1 A+) &amp; 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 &amp; DJSI Asia Pacific 40 On Hang Seng Corporate Sustainability Index Board Oversight Social, Environmental &amp; Ethics Committee (SEE) Renamed as Sustainability Committee Sustainability Committee Report included in Integrated Annual Report Reporting progress on ESG data mgt. to SC &amp; 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 </li><li> 24. 24 Reinforce integration between sustainability performance &amp; reporting </li><li> 25. 25 Group Sustainability Department </li><li> 26. 26 The academic institutions 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 &amp; channels; new topical areas; more experiential learning, etc??? Funding balancing financial needs versus outcome quality??? Sustainability capabilities Resource &amp; process management and improvement Analytics Innovation Communications What will be potential disruptors of academias current business models? What could be the new academic business models of the future? What will be potential disruptors of academias current business models? What could be the new academic business models of the future? </li><li> 27. Thank You! </li><li> 28. Group Sustainability 28 As growing number of people gain access to increasing amounts of information at close to real-time frequencies: Increasing environmental &amp; 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 &amp; 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 &amp; opportunity landscape Innovation can help provide solutions to surviving in this changing environment &amp; perhaps mitigate some of the rising costs associated with the internalisation of social and environmental impacs </li><li> 29. 29 CLP Group Value Framework (updated 2011 update in 2015) </li><li> 30. 30 Sustainability governance </li><li> 31. 31 Sustainability focus areas Economic Sustainability Our Environment Our Community </li><li> 32. 32 CLP Group Sustainability Framework (rolled-out in 2011 update in 2015) Published in 2011 CLP Annual Report &amp; online Sustainability Report Link slide 15 </li><li> 33. 33 Sustainability ratings </li><li> 34. 34 Group Function discussions on SF, b- plan (Aug/Sep) Interim SF progress reports (&amp; discussions) (Jun/Jul) Annual SF progress reports (&amp; discussions) (Jan/Feb) Group Function discussions on post-SR review, indices &amp; SF (Apr/May) CLP Group Organisational Performance (Feb) Integrated Annual &amp; Sustainability Reports (Mar) Sustainability Performance Management Sustainability Reporting Schedule Sustainability Committee &amp; GEC Meeting Schedule Internal Internal/External External External Sustainability/ ESG Indices &amp; Surveys (Apr-Jun) Business Unit discussions on SF goals &amp; SR/GRI (Sep/Oct) Business planning cycle kick-off for BUs (Aug/Sep) Business Plan Submission &amp; 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 &amp; SF performance (Sep/Oct) </li><li> 35. 35 CLP Groups 2014 Sustainability Report </li><li> 36. 36 CLP Group 2014 Integrated Annual Report 2014 Annual Report is our 4th Integrated Report Following the Framework issued in Dec 2013 Utilise the Framework to organise our financial, environmental and social reporting A CLP interpretation on the Prototype Framework will evolve over time </li><li> 37. 37 Internal sustainability communications Group Sustainability Forum Sustainability champions across BUs and GFs Quarterly calls (agenda &amp; meeting notes available) Annual/Biennial Conference (starting 2014) Regular CLP Sustainability Capacity Building...</li></ol>

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