VALUE CREATION
At CLP, we utilise various capitals to create value for shareholders, customers, employees and the wider community. The following diagram shows the key capitals we used and the value we created for different stakeholders.
Inputs
Financial capital
- Shareholders’ funds of HK$112,200 million
- Total borrowings of HK$54,348 million
Manufactured capital
- Generation capacity of 19,691 equity MW
- Long-term capacity and energy purchase agreements of 5,005 MW
- Transmission and high voltage distribution lines of 16,486 km
- 15,263 primary and secondary substations in Hong Kong
Human capital
8,060 employees
Intellectual capital
- Strengthened technological capabilities
- Digitalisation of operations
- Investments in technology companies and funds
- Partnerships with innovation accelerators
Natural capital
- 403,379 TJ of coal consumed
- 134,776 TJ of gas consumed
Social and relationship capital
10,973 volunteer hours by staff and family members
What we do
Digital technologies
Data analytics, artificial intelligence and Internet of Things (IoT) enable new efficiencies and delivery of smarter and more connected energy services
Generation
- Design, build, operate and invest in centralised and decentralised power stations and generation facilities
- Procure adequate and appropriate fuel and energy resources from diversified sources
Transmission
- Design, build and operate transmission networks
- Enhance transmission networks to facilitate integration of more clean energy into the grid
Distribution
- Design, build and operate distribution networks
- Integrate distributed energy resources into the grid
Customers
- Develop and deploy customer-oriented, technology-enabled energy services that help customers become active participants of a power system
Dynamic System Balancing
Design, build and operate systems that integrate centralised and decentralised generation, and balance dynamic customer demand against different generation profiles to optimise cost efficiency, reliability and environmental performance
Outputs
Reliable, cleaner and affordable electricity supply as well as smart energy services to customers
Economic value generated of HK$81,198 million
Outcomes for stakeholders
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Employees: Staff expenses of HK$4,844 million
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Community: Donations of HK$27 million
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Government and Regulators: Current income tax of HK$2,529 million
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Suppliers and Contractors: Fuel and other operating costs of HK$51,527 million
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Capital Providers:
- Shareholders – total dividends of HK$7,832 million, HK$3.10 per share
- Lenders – net finance costs of HK$1,875 million
SUSTAINABILITY MATERIAL TOPICS
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Responding to climate change
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Harnessing the power of technology
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Reinforcing cyber resilience and data protection
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Building an agile, inclusive and sustainable workforce
MATERIAL RISKS TO THE GROUP
- Operational risk: Health, safety and environment (HSE) incidents, plant performance, physical and cybersecurity, project delivery, climate change and challenges from the COVID-19 pandemic
- Commercial risk: Commercial disputes, fuel supply security, energy margin and price volatility and challenges from digital transformation
- Regulatory risk: Uncertain regulatory changes, power sector reforms and regulatory compliance issues
- Financial risk: Availability of competitive funding, financial market volatility and financial counterparties
- Market risk: Economic structural changes, energy market competition and volatility as well as supply and demand imbalance
- Human resources risk: Succession, talent attraction and retention, structure and operating model change and culture change