Power Ass et s
(Stock Code : 6) Holdi ng s Li mited
C om m En g u a n g it e y Accelerating m e n towards t a Sustainable Future y g r Healt e h an n d E S
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2020 Sustainability Report CONTENTS
Introduction 02 Our Business Portfolio 06 Message from the Chief Executive Officer About Power Assets 08 2020 Highlights 10 COVID-19 Response Power Assets Holdings Limited (“Power Assets” or the “Company”, together with its subsidiaries, the “Group”) is a global investor in energy Sustainability at Power Assets and utility-related businesses with investments in power generation, 14 Sustainability Governance transmission and distribution; renewable energy; energy-from-waste; 16 Approach to Sustainability gas and oil transmission as well as gas distribution. 19 Business Ethics
Over the years, Power Assets has adopted a strategic approach to seek Environment growth in stable and well-structured international markets. The Group Accelerating towards 24 Combating Climate Change has established a strong global presence with investments in 30 Opportunities in Clean Technology Hong Kong, the United Kingdom, Australia, New Zealand, Mainland China, a Sustainable Future 32 Preserving Natural Environment Thailand, the Netherlands, Canada and the United States, bringing 37 Regulatory Compliance reliable energy to about 19 million homes and businesses around the Across Power Assets, our operating world. In terms of assets, the Group has interests in almost 10,000 MW companies set themselves ambitious targets Social of power generation facilities and 514,700 km of power, gas and oil to contribute to a greener future and more 40 Human Capital Development networks. sustainable communities. The Group is 45 Occupational Health and Safety dedicated to providing the governance and 50 Cybersecurity Listed on the Stock Exchange of Hong Kong as a constituent share of resources required to nourish and groom 52 Supply Chain Management the Hang Seng Index, Power Assets has been a constituent of the Hang their visions, cross-pollinating best practices 54 Community Engagement Seng Corporate Sustainability Index since 2010. It is also one of the only among sister organisations to reap fruits 59 Regulatory Compliance twelve Hong Kong companies and seven Asia Pacific utility companies faster and healthier. The cover of our 2020 included in the Dow Jones Sustainability Index Asia Pacific. Sustainability Report reflects this mutually supporting strategy, like interlinked gears, of Appendices tapping the best from our pools of expertise 60 About this Report around the world to accelerate our move to 61 Environmental Performance Indicators more sustainable operations. 63 HKEX ESG Guide Content Index Introduction Sustainability at Power Assets Environment Social Appendices
Our Business Portfolio United Kingdom
Canada Mainland China
Hong Kong
United States of America
Netherlands Generation Thailand New Zealand Energy-from-waste Australia
Electricity Transmission & Distribution
Oil Pipelines & Storage Facilities
Gas Transmission & Distribution
Renewables Australia Australian Gas Networks SA Power Networks Mainland China Victoria Power Networks United Kingdom Jinwan Power Australian Energy Operations Power Assets Holdings Limited Holdings Power Assets UK Power Networks Dali Wind Power United Energy Canada Northern Gas Networks Laoting Wind Power Dampier Bunbury Pipeline and Canadian Power Holdings Wales & West Utilities AGI Development Group
Husky Midstream Limited Partnership Seabank Power Hong Kong Multinet Gas
Energy Developments Pty Ltd Energy Developments Pty Ltd HK Electric Energy Developments Pty Ltd Sustainability Report 2020
02 United States of America Netherlands Thailand New Zealand 03 Energy Developments Pty Ltd Dutch Enviro Energy Holdings B.V. Ratchaburi Power Company Wellington Electricity Lines Introduction Sustainability at Power Assets Environment Social Appendices
Our Business Portfolio u tr i
o r t or n r o nt t td u to r Network Length: 89,400 km Installed Capacity: 1,086 MW Customers: 896,000 Joined / Interest: 2017 / 20% n r tion cit Joined / Interest: 2000 / 27.93% u tr i n n r r tion Renewable Energy / ictori o r t or o r nd i w ic owns Powercor and itiPower Network Length: 71 km Energy-from-waste Joined / Interest: 2012 / 50% t or n t Network Length Gas-fired Power Network o Powercor: 89,900 km Coal / Oil-fired Gas / Oil Pipeline CitiPower: 7,700 km n d Customers n di n o r o din Powercor: 844,000 n di n o r CitiPower: 332,000 nit d in do in nd in Installed Capacity Joined / Interest Meridian: 220 MW o r t or in n o r Powercor: 2000 / 27.93% TransAlta: 1,064 MW CitiPower: 2002 / 27.93% Network Length: 189,400 km Installed Capacity: 1,200 MW Joined / Interest Customers: 8,400,000 Joined / Interest: 2009 / 45% u tr i n t or Meridian: 2007 / 50% Joined / Interest: 2010 / 40% a member o Australian as n rastructure TransAlta: 2007 / 25% i nd otin ind o r roup A ort rn t or Installed Capacity Gas Pipeline Length: 26,400 km u id tr i it d rtn r i Gas Pipeline Length: 36,100 km Dali: 48 MW Customers: 1,345,000 Customers: 2,700,000 Laoting: 49.5 MW Joined / Interest: 2014 / 27.51% Oil Pipeline Length: 2,200 km Joined / Interest: 2005 / 41.29% Joined / Interest Oil Storage Capacity: 5.9 million barrels Dali: 2007 / 45% i r un ur i in nd Pipeline Gathering I o nt rou t ti iti System Capacity: 409,000 bbs/day Laoting: 2008 / 45% collectively nown as P Gas Pipeline Length: 35,000 km a member o A Joined / Interest: 2016 / 48.75% Customers: 2,500,000 on on Gas Pipeline Length: 4,100 km Joined / Interest: 2012 / 36% Joined / Interest: 2017 / 20% ctric t r nd n o r Network Length: 6,600 km u tin t utc n iro n r o din
Power Assets Holdings Limited Holdings Power Assets a member o A Installed Capacity: 1,144 MW Customers: 583,000 w ic owns A R A valverwer ing Gas Pipeline Length: 10,200 km A R Joined / Interest: 2010 / 25% Installed Capacity: 3,617 MW Customers: 718,000 Installed Capacity Established / Interest: 1889 / 33.37% Waste-to-Energy Units: 115 MW nd Joined / Interest: 2017 / 20% i nd Biomass-Fired Units: 30 MW in ton ctricit in nit d n r Joined / Interest: 2013 / 27% in ton ctricit tc uri o r o n Network Length: 13,400 km
tc uri o r Sustainability Report 2020 Network Length: 4,200 km Customers: 703,000 04 Installed Capacity: 1,400 MW Customers: 171,000 Joined / Interest: 2017 / 20% 05 Joined / Interest: 2008 / 50% Joined / Interest: 2001 / 25% Introduction Sustainability at Power Assets Environment Social Appendices
Message from the Chief Executive Officer The very ethos of the Power Assets Group is Equally, we are committed to the people who form sustainable, long-term growth. Our services support a part of our business, whether as employees, economic and social development at the most customers, contractors, or the wider communities fundamental level. All our activities are founded on that we serve. Safeguarding them and contributing sustainable practices and we are actively pursuing to their long-term welfare is important to us. Notable investment in renewables and embrace innovative highlights of our commitment include UKPN ranking technologies. We are fully committed to supporting tenth in The Sunday Times 25 Best Big Companies I am pleased to present the first the governments in our markets of operation to To Work For in 2020 – manifestation of our ambition standalone Sustainability Report of achieve their commitments in the United Nations as an employer of choice. In Australia, Beon Energy the Power Assets Group, marking Framework Convention on Climate Change as well as Solutions (a VPN undertaking) was a finalist in the a significant step for reporting on their strategies for net zero carbon emission in future Clean Energy Council Community Engagement Award our annual sustainability efforts and years. In our key markets of the UK, Australia and for the second year in a row. HK Electric continued to achievements. Our commitment to Hong Kong, governments have already announced provide highly reliable power supply, reaching a record sustainable practice is a driving force plans to achieve carbon neutrality by 2050. Needless rating of over 99.9999% in 2020. in our business operations – staying to say we will support these endeavours. true to our mission, vision, values, Even though we have made significant progress in the caring for the environment and Our strategy is built on five pillars which encompass area of sustainability, there is still a long way to go supporting our stakeholders across nine our business, our people, the environment, the before the goal of limiting global warming to ”well markets spanning four continents. We community, and our value chain. This is overseen below 2 degrees Celsius” can be achieved. I see this as consciously align each of our strategies by a newly-established board-level Sustainability a continuing voyage of education and innovation over and actions with wider national and Committee. The committee ensures systems and the long term. Power Assets will continue to strive for international sustainable development structures are in place to drive and integrate excellence through advances in technology, and the aspirations and where appropriate, sustainability across all our operations. education of our communities. we include in our report illustrations of activities undertaken by our Research into renewable energy is one of our top I would like to express my gratitude to the team of various operating companies to better priorities to reduce our carbon footprint. In this area, talented professionals across the Group whose passion demonstrate the Group’s commitment we are pioneering in many of our markets, thanks to leave a cleaner and healthier world for future to a sustainable future. This to our focus on innovation through technology. For generations is at the heart of our success. I am proud commitment is particularly pertinent example, projects on safety case studies in the UK and to work with them. in the current context. While hope Australia to demonstrate our existing gas networks can is on the horizon today in the form be repurposed to distribute hydrogen in the future, as I hope this report proves useful to you in of vaccines, the COVID-19 pandemic well as the rollout of advanced automated low-voltage understanding about our commitment to and actions took a heavy toll on communities and distribution network and metering infrastructure, for a sustainable future. economies around the world in 2020, are helping us meet customers’ demand for reliable creating a need for communities to and clean energy supply. In Australia, EDL has Power Assets Holdings Limited Holdings Power Assets come together to support vulnerable commissioned two commercial-scale renewable hybrid people. This is in addition to climate projects which are great examples of clean energy: a change, which has emerged as one unique combination of renewables to power off-grid, of the key challenges that the global remote communities. In line with our strategy to Tsai Chao Chung, Charles community needs to address in a expand on our renewable energy portfolio, Canadian Chief Executive Officer concerted manner and will remain so Power entered into an agreement in February 2021 Hong Kong, March 2021 for years to come, especially for our to acquire 100% interest of two major windfarms in industry. British Columbia in Canada. Sustainability Report 2020 06 07 Introduction Sustainability at Power Assets Environment Social Appendices
2020 Highlights Our sustainability activities can be categorised broadly into activities to enhance our governance, protect the environment and support our stakeholders. This section enlists selected highlights of the Group’s sustainability performance in 2020.
• Power Assets is working actively with industry peers Governance along the entire product chain and policymakers to demonstrate and promote hydrogen as a reliable, • Sustainability Committee established as a Board clean and safe fuel for achieving the net zero Committee, overseeing the implementation of the targets set by various jurisdictions. The following Group’s sustainability efforts. hydrogen projects are being carried out by our gas distribution businesses: • Disclosing more of the Group’s sustainability-related AGN and Multinet Gas’ Hydrogen Park SA January 2021. SAPN is rebating (or writing off) policies including Information Security Policy, H21, a collaborative gas industry programme (HyP SA) Project, the first such project in some network charges to retailers and deferring Supplier Code of Conduct, Human Rights Policy, led by NGN, entered its 2nd phase in 2020. Australia to produce renewable hydrogen payment terms for other network charges for Media, Public Engagement and Donation Policy etc., The project is now focused on delivering for blending into the existing natural gas residential and small business customers who were guiding the Group in setting the overall direction of two key pieces of evidence, the ability to distribution network. adversely impacted by the pandemic. its sustainability strategy to integrate sustainability maintain a hydrogen network safely and the across its worldwide businesses. successful conversion of a small part of the live AGN has also announced the construction • In Hong Kong, HK Electric offered dining coupons network to use 100% Hydrogen. This work of Hydrogen Park Gladstone for renewable to the underprivileged and subsidies for NGOs Environment is being undertaken at Spadeadam, with the hydrogen production, a facility involving the for use at small and medium-sized caterers, one construction of a micro-network, where an installation of a 175-kW electrolyser to deliver of the hardest hit sectors. It continued to care for • Power Assets is on track with its decarbonisation isolated section of the live network is to be up to 10% blended hydrogen. This project is the vulnerable elderly through its re-engineered plan and has reduced 2,485 MW of its coal-fired converted. Testing is due to commence in early expected to begin production in Q3 2022. “CAREnJOY” programme. Regular news feeds power generation capacity compared with that 2021. Ultimately, this work aims to provide the and phone calls were arranged to replace home visits and community talks, keeping single elders of June 2017. The following projects have been assurances required by UK Government that Social completed or are ongoing: a decarbonised heating network converting connected to relieve the psychological impact of from natural gas to 100% hydrogen is safe and isolation following prolonged service and activity • A good health and safety record was achieved cost-effective. suspension. HK Electric’s new highly-efficient combined-cycle across our businesses, and in particular Group gas-fired generating unit equipped with a management remains vigilant and is closely HyDeploy – a 16-month live demonstration of • WWU provided additional assistance to the most selective catalytic reduction (SCR) system, known monitoring the impact on the business caused by up to a 20% blend of hydrogen into the natural vulnerable customers within its geographical as L10, was commissioned in February 2020. the COVID-19 pandemic. It continuously reviews gas network is taking place on Keele University’s coverage through its Social Obligations Steering Compared with 2019, the carbon emission from and improves the guidelines and procedures and private gas network. This project is due to finish Group. electricity generation in 2020 was reduced by provides necessary support to meet changing in March 2021 and will be succeeded by a 2nd about 16% with L10 in operation. HK Electric is domestic needs and requirements. We maintained building two more new gas-fired units (L11 and trial, HyDeploy2. This trial will see up to a 20% • Our electricity and gas distribution companies
Power Assets Holdings Limited Holdings Power Assets critical services to our 19 million customers blend of hydrogen provided to 670 properties continued to achieve excellence in customer L12) with schedule to be commissioned in 2022 throughout 2020. and 2023 respectively. connected to NGN’s gas network. The project satisfaction and received very high scores in various is due to commence blending in April 2021 customer satisfaction surveys. UKPN was placed • Our businesses launched a number of tariff running for 10 months in total. HyDeploy will third in terms of complaint handling in the 2020 Canadian Power is converting its 2x400 MW relief packages to assist our customers that were provide evidence that the gas networks and UK Customer Satisfaction Index and HK Electric Sheerness power plant from coal to natural impacted by the COVID-19 pandemic. In Australia, existing domestic appliances can be used safely received the “2020 Excellent Service Retailer of the gas firing. The conversion of the first unit was eligible customers of CitiPower and Powercor with a blend of hydrogen, with little or no cost Year” award. completed in 2020 and the second unit is due to could defer electricity network charges until be completed in 2021. or disruption implications to the customer. Sustainability Report 2020 The ultimate goal is to replace natural gas by 08
100% hydrogen to achieve zero emission in our 09 heating network. Introduction Sustainability at Power Assets Environment Social Appendices
COVID-19 Response As a group, we have responded to the COVID-19 pandemic since the health crisis began – from deploying business continuity plans to protecting the safety of our people and those they work alongside, while providing the widest range of support possible to our stakeholders.
Employees Customers Communities
We have implemented a series of operational We are very conscious that many of our customers are AGIG In addition to helping our customers directly, we have allocated additional funds and introduced programmes to reinforcement measures to ensure employee health and currently experiencing additional financial challenges and Participated in the Energy Networks Australia’s support charities and community projects at the forefront safety and continued operations. Some of these actions have therefore introduced a range of initiatives for those (representing electricity and gas networks in South of the region’s COVID-19 response. Power Assets include: experiencing financial hardship. Australia, Victoria and New South Wales) COVID-19 and HK Electric donated over HK$1.2 million to the programme, which provides relief to small business and Community Chest of Hong Kong through a matching • Intensified hygiene and cleaning procedures in line UKPN residential customers who are experiencing financial scheme to help people through the pandemic. with sanitary authorities’ guidelines; Launched an app for engineers so they can support hardship, in support of the Australian government’s customers in vulnerable circumstances in the community. COVID-19 stimulus packages. EDL • Distribution of protective clothing and sanitisers; The app hosts useful information on medical support, Offered five local councils each AUD10,000 in COVID-19 coping with social isolation, well-being tips and more. HK Electric relief funds. • Establishment of work-from-home arrangements Waived tariff increases for low-consumption non-residential for employees whose jobs can be done remotely to customers and offered 2-month deferral of electricity bill UKPN restrict the spread of the virus; payment for eligible SME caterers in 2020. Led a collaboration involving eight utility firms to donate GBP500,000 to 21 community foundations, distributing • Physical segregation of teams, with SAPN fast funding to local charities, including local foodbanks, video-conference shift transfers to prevent personal Implemented a COVID-19 Tariff Relief Package which volunteer centres, food delivery services and outreach contact; wrote off or deferred distribution network charges via programmes for those at risk of isolation. the Retailers for residential and small business customers • Free employee assistance line providing counselling, adversely impacted by the pandemic. Repurposed its Power Partners’ GBP300,000 scheme to financial advice, legal consultation and health help people struggling to pay their energy bills while out advice; VPN of work and at home. Offered financial support to eligible households and • Financial support for employees and contractors WWU who are required to self-isolate and had no leave small businesses in Victoria by deferring their electricity An app developed by Kellie Dillon of the UKPN innovation Allocated GBP55,000 to charities and other groups under entitlement; and team allows customers needing help under COVID-19 to network charges until January 2021. Power Assets Holdings Limited Holdings Power Assets access specialist partners. the Safe and Warm fund as a response to the challenges of COVID-19. • Mental health care and well-being programme. Call centre is open 24/7 throughout the pandemic and enhanced services are available for the most vulnerable households via a Priority Services Register.
WWU’s Safe and Warm fund offers a Sustainability Report 2020
10 GBP55,000 pot to support the work of
community councils, NGOs and charities 11 during COVID-19. Introduction Sustainability at Power Assets Environment Social Appendices
Sustainability at Power Assets
We aspire to constantly enhance how energy is being generated and delivered to all our markets of operation, to create a more sustainable planet for future generations. We also aim to be a positive force in people’s lives by being a best-in-class employer, a supportive partner, and a caring corporate citizen operating with the highest ethics and values.
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Terms of Sustainability at Power Assets at Sustainability Environment Social Appendices Introduction lity priorities, goals and targets, including targets, and goals lity priorities, coordinating with the business units of the Group coordinating with the business units of practices and ensuring that their operations and are in adherence; and performance of the Group; Proposing and recommending to the Board the Proposing and recommending objectives, strategies, Group’s sustainability goals and targets; priorities, initiatives, and evaluating actions Overseeing, reviewing in furtherance of the taken by the Group sustainabi on Reviewing and reporting to the Board sustainability risks and opportunities; emerging Monitoring, evaluating and reviewing best sustainability-related issues, trends and operations practices that could impact the business approach, Overseeing and reviewing the Group’s and to recommend improvements; operations Considering the impact of the Group’s including at various aspects to its stakeholders, as employees, shareholders, local communities well as the environment; the Group’s Reviewing and advising the Board on publications public communication, disclosure and and as regards to its sustainability performance; or Performing such further functions related incidental to the foregoing which the Committee deems appropriate.
Sustainability Management Committee Composed of Chief Executive Officer, an Executive Director, Chief Financial Officer, Group Legal Counsel and Company Secretary and selected members of the Group’s management, the Sustainability Management Committee focuses on addressing sustainability issues and policies and driving strategic initiatives across the Group. It reports to, and receives feedback from, the Sustainability Committee on a regular basis. Reference of the Sustainability Committee. Key responsibilities of the Sustainability Committee Key responsibilities include: • • • • • • • • For more information, please refer to the The Board accountability for the Group’s The Board has ultimate management, performance and sustainability strategy, support of the Sustainability reporting through the Committee. and approves the Group’s The Board examines strategies, priorities, initiatives,sustainability objectives, policies goals and targets as well as the corresponding and frameworks that support their achievement. to the Board on The Sustainability Committee reports and periodically sustainability risks and opportunities, discusses its impact on business strategy. to the Our directors or executives are appointed of all material boards and management committees the investments for overseeing and monitoring The sustainability performance of each business. business is executive management team of each within accountable for the conduct and performance the agreed strategies. Sustainability Committee as a The Sustainability Committee was established TSAI Chao Board committee. It is chaired by Mr. and Executive Chung, Charles, Chief Executive Officer Director, and its other members are Mr. CHAN Loi Shun, Executive Director, and Mr. IP Yuk-keung, Albert, Independent Non-executive Director and Nomination the and Committee Audit the of Chairmen Committee. The Sustainability Committee has an overarching role in supporting the Board on the matters of sustainability and oversees the implementation of the sustainability initiatives of the Group, including reviewing the related policies and practices, and assessing and making recommendations on matters concerning the Group’s sustainability governance, strategy, planning and risks. The Committee meets at least twice a year.
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B The Board Sustainability Committee Management of Business Units Business of Management Sustainability Committee Management
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- p o T The Group’s Sustainability Governance The Group has formulated separate policies on sustainability, environment, supply chain management and human on sustainability, environment, supply chain management and human The Group has formulated separate policies to serve as the ultimate guiding principles for sustainability practices rights. These policies are primarily intended action across the businesses and detailing the Group’s within the Group, putting its values into environment and communities in which the Group commitments to business integrity, people, operates. The Group’s sustainability governance structure provides a solid foundation for developing and delivering its a solid foundation for developing and governance structure provides The Group’s sustainability the Sustainability of the Group, including the Board, This is embedded at all levels commitment to sustainability. officials. The comprising the CEO and other senior Sustainability Management Committee, Committee and the our businesses Committee provide guidance to and the Sustainability Management Sustainability Committee targets, sustainability strategies, manages goals, consistency in implementing their own to maintain Group also ensure overall and external stakeholders, and and strengthens the relations with internal reporting processes accountability. Sustainability Governance Sustainability
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17 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Sustainability Environment Social Appendices Introduction Maintain proper systems to ensure internal equity and external competitiveness of staff remuneration and recognition. Uphold a high standard of business ethics and personal conduct of its employees. Adhere to non-discriminatory employment practices and procedures. Provide a safe workplace for all its employees and a positive work environment that values the wide-ranging perspectives inherent in its diverse workforce. Foster individual growth and achievement of business goals, offering a wide range of training and development programmes, interest courses and activities.
Human Capital • • • • • Implement internal guidelines and controls on donations and contributions to safeguard stakeholders’ and shareholders’ interests. Encourage employees to play a positive and active role in the community. Conduct business with uncompromising Conduct business with integrity. Safeguard against unfair business practices. Achieve a high standard of corporate governance and emphasise a quality board, sound internal control, transparency and accountability to all stakeholders.
• • • • •
a ital u an usiness o unity alue ain focus on education, medical, health and elderly care, arts and culture, sports and disaster relief. Engage with local communities and undertake initiatives catered to the needs and benefits of the communities within which it operates, with a Educate the public, in particular younger generations, on the importance of energy efficiency and low-carbon lifestyles. Enhance long-term return for its shareholders. Enhance long-term its Focus on sustainable development of in. businesses and the communities it operates Comply with all relevant and applicable laws and regulations within its operational frameworks.
The Community • The Business • • • • n iron ent
Monitor and manage the use of resources, including energy, water and other raw materials. Develop and implement environmentally-friendly products and processes with potential commercial applications. Encourage and provide support for conservation and environmental protection programmes. Comply with or exceed the requirements of relevant laws and regulations to control any greenhouse gas emissions, discharges into water and land, and waste generation. Minimise the impact of its business activities on the environment and natural resources. Develop Climate Strategy to identify and manage climate risk and implement appropriate innovations and new technologies to capture the opportunities arising from this risk. Set targets and review and assess the results regularly to ensure the effectiveness of emissions control mechanisms. enhance customer experience, communication, enhance customer experience, communication, in our health and safety, privacy and protection business operations. Develop procedures to monitor suppliers’ Develop procedures to monitor suppliers’ products, services and processes. to Invest in technologies and innovative solutions Run a management system to identify and Run a management risk. mitigate supply chain Have Supplier Code of Conduct in place for the which covers environmental standards child suppliers’ processes, products or services, labour, fundamental human rights, working health conditions, remuneration, occupational and safety, and business ethics. who Work with suppliers and business partners uphold can demonstrate their commitments to Supplier the principles under the Power Assets’ Code of Conduct.
The Environment • Value Chain • • • • • • • • • • • The Group’s Sustainability Pillars The Group’s Sustainability For more information on relevant policies and procedures in place, please refer to the Corporate Policies on the Group’s corporate website. These principles are adopted Group-wide and implemented by each business unit based on local social, economic and environmental needs. The execution and compliance are monitored continuously through regular management reviews and reporting. The Group’s overall sustainability approach and The Group’s overall sustainability approach The Business, priorities are built on five pillars, namely Community andHuman Capital, The Environment, The Group-wide Value Chain. Each pillar is supported by and collective policies, leadership at the Group level pillars guide efforts across its businesses. These five across all the Group in integrating sustainability procedures our operations. The Group has policies, in and guidelines in place to support management across the addressing material sustainability issues Group, as described throughout this Report. Sustainability Pillars and Policies We operate our businesses in a responsible and We operate our businesses remaining transparent and sustainable way whilst stakeholders. The Group is accountable to our to its shareholders but also to committed not just including employees, a wide range of stakeholders the local community, professionalcustomers, suppliers, (NGOs) institutions, non-governmental organisations manage and the authorities. To more effectively sustainability sustainability, the Group reviewed its framework in 2020 and revised and developed the Group. relevant policies to align efforts across Approach to Sustainability Approach
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19 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Sustainability Environment Social Appendices Introduction Challenges and Opportunities Challenges and Our Commitment Business Ethics Business are important topics for the Bribery and corruption of critical infrastructure, utilities industry. As providers with government officials as well have close relationships customers. There as suppliers, third-party contractors and in certain are potential risks of bribery and corruption parts of the world. subject to As utilities are heavily regulated, they are authorities, investigations and lawsuits by regulatory it is possibly leading to huge penalties. We believe approach to important to take a proactive and holistic driven avoid any incidents of bribery and corruption, This by our own ethos and regulatory obligations. well-rounded requires operating companies to develop programmes anti-corruption policies and whistleblower the requirements as well as training to its staff, based on of the Group and local authorities. The Group values and upholds the highest standards of business integrity, honesty and transparency in its overall business activities. The Group has zero tolerance on any form of fraud or bribery and is committed to the prevention, deterrence, detection and investigation of all forms of fraud and bribery. The Board holds the overall responsibility for business ethics as an essential part of its corporate governance responsibilities. On behalf of the Board, the Audit Committee and the Executive Directors are responsible for ensuring the effective implementation of internal controls for material fraudulent or bribery activities committed within the Group on an ongoing basis. The 10 issues listed in the table above are identified as The 10 issues listed in the table above are the whole Group material sustainability issues relevant to or specific businesses based on their circumstances. environmental, The material sustainability issues include diverse externalsocial and governance concerns reflecting and stakeholder priorities and the Group’s operational supports regulatory risk focus. The materiality result continuously the identification of the focus areas for performance managing and monitoring its sustainability They and the development of sustainability strategies. for the indicate the main challenges and opportunities based Group as it operates and manages sustainability on its principles and pillars. Corporate Governance* Business Ethics
• • Governance The Group and its businesses use stakeholders’ input to The Group and its businesses market needs, which in turn helps understand shifting decision making in relation to its to inform the Group’s initiatives and disclosures. As an sustainability practices, meetings are being held example, regular consultation as well as HK Electric’s by all of our utility companies Customers Liaison Group. Materiality Assessment during 2020 The Group updated its materiality analysis that are to define the material sustainability issues Group and its considered to be most significant to the stakeholders. man Capital Development Capital man Hu Occupational Health and Safety (including emergency response) Supply Chain Management Community Engagement Cybersecurity
• • • • • Social Assessed the importance of issues based on the expectations of regulators, Assessed the importance of issues based sustainability ratings and industry peers. impact on the Group’s ability to create Prioritised issues that have a significant long-term and sustainable values. Reviewed and approved the material issues by the Sustainability Committee. Identified sustainability issues that are considered relevant and important to Identified sustainability issues that are considered on a review of our sustainability-related our businesses and stakeholders based practices and the previous year’s process. for the energy and utilities sector Mapped the issues identified as material such as MSCI and DJSI ESG by local and international reporting frameworks ratings.
• • • • • Opportunities in Clean Technology Preserving Natural Environment (including biodiversity, water, effluent and waste) Combating Climate Change Information on corporate governance is covered separately in Corporate Governance Report in the Annual Report 2020. Information on corporate governance is covered separately in Corporate Governance Report in
• • • 3. Validation 2. Prioritisation 1. Identification Environment
The material sustainability issues identified can be assigned to three categories: * Materiality Assessment Process Stakeholder Engagement to communicate openly and The Group endeavours key stakeholders to gather their transparently with its that concern them the most. Given views on the issues the Group and the the diversity of the businesses, deal with different stakeholder operating companies customers, business groups including employees, investors as well as with partners, suppliers and We regulatory authorities, NGOs and the community. channels, regularly collect their views through various interviews and such as meetings, workshops, seminars, surveys.
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21 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Sustainability Environment Social Appendices Introduction For example, United Energy provides an independent For example, United Energy provides an Speak-up anonymous 24/7 free service line named misconduct. Anonymous to employees to report on To protect the employees who report suspected a safe reporting misconduct, United Energy implements of anonymous mechanism to ensure the confidentiality and other reports. It is available to suppliers, customers aimed at third parties. EDL has a Whistleblower Policy encouraging internal or external stakeholders to report any misconduct or wrongdoing. Stakeholders can call the confidential, independently managed hotline or approach the CEO, CFO, Company Secretary, director or other senior managers to report the matter. Ongoing assessment controls for preventing and Business practices and and other misconducts are combating corruption at both Group level and business continuously assessed unit level. and anti-corruption At Group level, an anti-bribery is conducted biannually to evaluate control assessment bribery risks. the effectiveness of controls for managing company At the business unit level, each operating focus is on conducts a risk-based audit to ensure that the design key risk areas. These audits also consider and controls. and operating effectiveness of processes other corruption Deficiencies with potential for fraud and would be covered during the audit. Whistleblower programmes stakeholders All directors, employees and other relevant of the are expected to report any potential violation allow reporting Code. Escalation channels are set up to with the of improprieties or business conduct concerns, incidents are option of anonymous reporting. All reported are protected treated confidentially and the informants victimisation from any retaliation such as unfair dismissal, are or unwarranted disciplinary action. All breaches Board through recorded, investigated and reported to the the Audit Committee, and substantiated violations would result in appropriate disciplinary actions, including termination of employment. In addition to Group-level processes, each core business derives its own set of internal escalation procedures to cater to its operational needs. Each operating company has its own whistleblowing system and needs to report to the Group’s Head of Internal Audit. The internal audit department manages the system and reports serious issues to senior management and the Audit Committee. Information Security Policy Information Security and Donation Policy Media, Public Engagement and Securities Dealing Policy on Inside Information Possible Improprieties in Procedures for Reporting Reporting or Internal Control matters of Financial
• • • Other policies relevant to ethics and compliance include Other policies relevant our: • Communication and training induction training The Code forms part of the mandatory joining the which all employees need to attend upon to Group. It is the responsibility of every employee the year, familiarise and comply with the Code. During anti-corruption the Group provided a seminar relating to of current to the Directors to help them keep abreast trends and issues facing the Group. Regularly, as anti-fraud tailor-made training on specific topics such based on their and corruption is assigned to employees role and area of responsibility. training forEach of our businesses also provides sufficient joiners of UKPN its employees. For example, all the new corruption will have an overview of fraud, bribery and and resources, risks and the Business Integrity function Line and information on the Confidential Reporting training. to report any concerns in the staff induction HK Electric During the year, over 240 employees of attended on-line training to improve their awareness and refresh their understanding of the Prevention of Bribery Ordinance and corresponding company policies and guidelines on anti-corruption. More than 70 new hires completed similar training as part of their Orientation Programme. Laoting Wind Power organises annual compliance training on bribery and anti-corruption every year to increase staff awareness. They are required How We Work Anti-Fraud and Anti-Bribery Policy outlines the (the “Code”) sets out the Code of Conduct (the “Code”) sets out Group’s zero-tolerance stance against bribery and corruption and assists employees in recognising the circumstance which may lead to or give the appearance of corruption or unethical business conduct. It includes provisions dealing with kickbacks, political and charitable contributions, facilitation payments, gifts and hospitality, and procurement of goods and services. It is the Group’s general policy to avoid any form of donation to political associations or individual politicians. The to implement appropriate anti-fraud and corruption to implement appropriate anti-fraud and to verify policies as well as compliance programmes anti-fraud and their compliance to the policies. Relevant the contracts corruption clauses are incorporated into ensure that they with business partners and suppliers to are fully aware of the Group’s requirements. Business partners and suppliers of the Group are Business partners and suppliers of the Group of encouraged to maintain the highest standards ethical conduct and professionalism in accordance with the Supplier Code of Conduct. professional and ethical standards to observe in all professional and ethical provisions dealing with business dealings, including dealing and integrity, corruption, conflict of interest, fair confidentiality, personal data political contribution, of illegal and protection and privacy, as well as reporting the Group and unethical behaviour. The Code applies to is required to all its subsidiaries, where every employee applicable laws, adhere strictly to the Code including all the Group rules and regulations within the jurisdictions employees operates in. For non-controlled affiliates, possible, serving as directors would, to the extent follow the Code. encourage those affiliates to adopt and Governance policies The
Power Assets Holdings Limited 20 Introduction Sustainability at Power Assets Environment Social Appendices
Green Energy for a Sustainable Future
The Group is conscious of the environmental impact associated with its operations. It is committed to protecting the environment and supporting sustainable development by managing its environmental footprint across its operating markets and conducting its business in an environmentally responsible manner. The Group strives to adopt behavioural change as well as the use of the latest clean technologies, processes, and systems to drive and monitor reduction initiatives. We are on track with our decarbonisation plan replacing coal-fired generating units with gas-fired units.
Our operating companies around the world aim to constantly contribute to the battle against climate change. Many of them are implementing initiatives supporting local governments’ commitments to achieve the goals set by the United Nations Framework Convention on Climate Change. Each of our companies engages in a number of activities throughout the year to improve on their own environmental performance through a range of initiatives across all operations.
25 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction How We Work Understanding climate-related risks Understanding the physical and transition risks We are exposed to both change could of climate change. Physical risks of climate as severe tropical come in the form of acute events such such as water cyclones and flooding, or chronic changes heatwaves stress, prolonged periods of drought and the short term, that increase the chances of wildfires. In our facilities and the acute events could directly damage the long term, assets and disrupt our service delivery. In damage our the changes in climate could also gradually assets and lead to asset write-downs. transition In addition to the physical risks, climate-related on the Group’s risks could have a material adverse effect operations, business, financial condition and results of and could adversely impact the Group’s reputation. of these Understanding the location, nature and scale the impact. potential risks is crucial for effectively mitigating material impacts Besides assessing at the Group level the each business of climate-related risks and opportunities, also carries out its own climate impact assessment. For example, UKPN has carried out a flood mapping exercise across its footprint, and site surveys have been undertaken to predict flood depths in extreme events to help design flood protection measures. UKPN has invested more than GBP11 million in permanent flood defences to increase the resilience of equipment that serves more than 2.9 million properties in the last nine years. WWU has used their Adaptation to Climate Change risk assessment, in line with UK Climate Projections 2009 (UKCP09) models, to determine the future extent of climate change impacts. The output of this model identifies the degree of impact for individual climate change risks and allows WWU to work towards quantifying the relative number of assets that are forecast to be impacted in the future. WWU will then be able to use this to identify future action points where climate change risks become unacceptable and adaptations could be implemented as part of planned works in advance of an impact. To address climate change risk and to capitalise To address climate change risk and to on those opportunities arising from it by Decarbonising the generation portfolio to replacing or converting coal-fired units gas-fired units, and to expand renewable gas energy, waste to energy, renewable natural and carbon capture and utilisation capacity. To accelerate and support decarbonisation by continuously modernising and digitising electricity networks to accommodate the projected influx of distributed renewable energy sources as well as the anticipated surge in the required charging networks for a massive uptake of electric vehicles. Decarbonisation of our gas network by blending hydrogen into existing gas distribution networks and ultimately replacing natural gas with hydrogen to achieve the net zero targets set by local governments. (Covered in “Opportunities in Clean Technology” on pages 30 to 31) Goals Strategy Both our Chairman and CEO have made public Both our Chairman Annual Report to fully support commitments in the the world in achieving the goalsgovernments around Framework Convention on set by the United Nations Climate Change. we have To put our commitment into practice, supporting developed the following strategies in global efforts to decarbonise energy. emissions. In 2020, EDL 2 and transported it to 2 ; 2 capture plant in Duiven, the Netherlands capture plant in Duiven, the Netherlands 2 – captured 31 kT of CO HK Electric’s Feed-in Tariff (FiT) Scheme – about 130 renewable energy installations at schools, residential premises and small to large enterprises were connected to the grid through the FiT Scheme as at end 2020, amounting to a total capacity of around 2.3 MW. greenhouses to support cultivation of vegetables, greenhouses to support cultivation of vegetables, fruits and flowers; AVR is planning to increase the carbon capture and utilization capacity to 100 kT; and AVR’s energy-from-waste and resource recovery – AVR’s energy-from-waste and resource recovery sorted 26,000 tonnes of plastics for reuse; AVR’s CO delivered the Agnew Hybrid Renewable Projects delivered the Agnew Hybrid Renewable wind, in Western Australia comprising 18 MW and 4 MW solar and 13 MW/4 MWh battery, Naturalcommissioned the Indy High BTU Renewable Gas Plant in Indiana, USA. Dali (48-MW) and Laoting (49.5-MW) wind farms – Dali (48-MW) and Laoting (49.5-MW) wind which generated 207 GWh of wind power in 2020 abated 199 kT of CO EDL’s global operations abated and avoided EDL’s global operations abated and avoided 8.9 million tonnes of CO
• • • As core participants in the energy sector, we As core participants play a key role in achieving the understand that utilities governments which are parties target adopted by many to limit the increase in the to the Paris Agreement to below 2°C, and our operating planet’s temperature energy green and innovation in investing are companies Currently to support the fight against climate change. our renewable energy operations include: • • 2 CO Our Commitment Challenges and Opportunities Challenges and We recognise that investor and stakeholder interest in climate change has increased significantly and will continue to grow. Meeting the growing demand for energy while ensuring that the supply is reliable, affordable, clean and low emission is both a challenge and an opportunity for our industry. Electricity and utility companies are working with Electricity and utility companies are working solutions for their respective governments to identify Through possible future decarbonisation pathways. careful planning of infrastructure investments, capable of companies could ensure an energy mix forth by meeting the emissions requirements set of regulators together with the implementation Proactive industry-leading technologies and processes. manner reduction of GHG emissions in a cost-effective for utilities can also create a competitive advantage compliance and mitigate unanticipated regulatory costs. Electricity generation is the largest source of greenhouseElectricity generation in the world. As environmental gas (GHG) emissions increasingly stringent in the regulations become Mainland coming decades, especially in Europe and would require China, electricity and utility companies to a significant investment as the world transitions up with the low-carbon economy. Failure in keeping or even lead to transition may negatively impact returns asset write-downs in the long run. Combating Climate Change Combating
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27 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Ratchaburi Power adopted a new type gas turbine air Ratchaburi Power adopted the plant’s cycle efficiency by inlet filter that improved fuel consumption and cost 0.5%, resulting in improved savings. its upgrade and could Jinwan Power has completed steam-thermal energy per hour provide 200 tons of the heat-to-power ratio to per machine set, raising to raise the capacity to 280 tons 21%. It also expects would per hour per machine set in five years. This efficiency and enable the plant to operate at a higher favourable achieve co-generation certification to enjoy dispatching arrangements. Demand side management technologies to UKPN is investing in innovative and smart emission mitigate transition risks by reducing its carbon demand. through better management of electricity uses UKPN through its flagship Flexibility programme peak loads demand-side response in situations where capacity due to cannot be managed within existing firm network reduction, demand movement or autonomous cooling on management. The deployment of predictive networks a number of major transformers in London peak level for enables UKPN to operate at an extended prior to the longer as transformer oil has been cooled peak load being experienced. UKPN has also launched Domestic DSR projects which aim to provide services that deliver the best value to customers and address their changing needs. Three key projects were implemented to increase access for customers to Low Voltage flexibility – the Urban Energy Club, which supports customers living in small flats, Home Response, which explores social innovation for customers living in social housing, and Core4Grid, which provides individual home balancing with low carbon technologies. In 2020, UKPN achieved a world first by enabling domestic customers to participate in the flexibility market, providing demand side response services to the DNO. UKPN undertook a study and appraisal for energy efficiency across the DNO real estate. United Energy deployed “Summer saver programme” for demand-side load management. Customers were given cash incentives to reduce electricity consumption. In addition, peak demand reduction helped defer network augmentations.
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2 capture and delivery. After capture and delivery. capture plant in Duiven in capture plant in Duiven 2 2 emissions by 1 million tons by 2 2030. commissioning of the CO commissioning of the 2019, AVR has started with capture and supply of CO 2019, AVR has started to greenhouse horticulturists, contributing to reduced to greenhouse horticulturists, making greenhouse natural gas usage, therefore The carbon capture horticulture more sustainable. tons per year. installation has a total capacity of 100,000 Rotterdam with AVR is planning a similar installation in carbon a capacity of 500,000 tons per year. Besides, offshore is capture and storage in depleted gas fields sector has set foreseen. The Dutch energy-from-waste a target of reducing CO emissions to productive use. AVR’s carbon capture plant in Duiven, Netherlands, makes greenhouse horticulture more sustainable while putting CO Efficient operations As part of its 2019-2023 Development Plan, HK Electric is in the process of replacing aging coal-fired generating units at Lamma Power Station (LPS) with new gas-fired combined-cycle generating units, known as L10, L11 and L12. L10 was successfully commissioned in February 2020. As the first gas-fired generating unit in Hong Kong equipped with selective catalytic reduction system, L10 offers excellent thermal efficiency and performance while ensuring air pollutant emission (in particular nitrogen oxides) is minimised. Compared with 2019, HK Electric achieved about 16% carbon reduction from electricity generation in 2020 with L10 in operation. Proportion of gas-fired electricity generation in its total output has also increased from about 30% to about 50%. Carbon capture, utilisation and storage Carbon capture, energy-from-waste company AVR is the first European CO capable of large-scale UKPN has invested GBP15 million in Active Network UKPN has invested GBP15 a new intelligent software Management (including over 1 GW of additional renewable platform) to enable the network cheaper and faster, energy to connect to power more than a quarter of a which is enough to million homes. number of renewable hybrid projects EDL is developing a Following the success in off-grid, remote communities. (4-MW wind of Coober Pedy Hybrid Renewable Project battery) generation, 1-MW solar PV, a 1-MW/500-kWh power through which supplies about 75% of the town’s 56-MW renewable energy, EDL has delivered the incorporating microgrid at Gold Fields’ Agnew gold mine battery storage. wind, solar and thermal generation and of providing This microgrid has surpassed EDL’s target 50% from Gold Fields with energy that is more than A 50% renewable sources, with 99.99% reliability. tonnes of carbon renewable energy fraction cuts 46,400 construction dioxide per year. EDL is about to commence in Australia’s on the Jabiru Hybrid Renewable Project Northern Territory. EDL’s hybrid renewable microgrid at the Agnew gold mine in Australia successfully demonstrates the potential for renewable energy with with energy renewable for the potential demonstrates successfully Australia in mine gold at the Agnew microgrid renewable hybrid EDL’s storage in the mining sector. Connecting renewable energy to the grid Connecting renewable energy to energy power To promote grid-connected renewable electricity systems (REPS), HK Electric purchases all Tariff rates. generated by customers’ REPS at Feed-in covering about In 2020, Renewable Energy Certificates by REPS 3.5 GWh of zero-carbon electricity generated REPS were of FiT customers and HK Electric’s own 2 carbon purchased by customers to offset their Scope emissions. The Group is committed to reducing emissions of The Group is committed within its operations and GHG and other air pollutants to a low-carbon future through supporting the move of the latest technology and innovation and adoption environmentally-friendly energy processes alongside is to reduce our coal-fired generation sources. Our target total installed capacity from about 50% of our 22% post- generation portfolio in July 2017 to about initiatives to help 2023. We are working on the following reduce GHG emissions: Responding to the physical and transition Responding to the change risks of climate
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29 Sustainability Report 2020 Report Sustainability
Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction et zero operational Scope 1 and 2 carbon zero et o ine etro onstruct a Bomen Solar Farm 120-MW and Reduce business carbon footprint (BCF) by 2% per annum. Since 2014/15, UKPN has reduced BCF by 25.5% C Reduce GHG emissions by 37.5% by 2035 compared to 2020 levels Reduce gas shrinkage by 10% by 2026 Ensure at least 75% of company vehicles are hybrid Reduce carbon emissions associated with non-operational travel by 5% by 2026 Become a net-zero ready carbon emission network by 2035 Reduce carbon intensity by 20% by 2025, Reduce carbon intensity by 20% by 2025, compared with 2017 Achieve n or ultra-low-emission vehicles by 2026 emissions by 2031 (excluding gas shrinkage) emissions by 2031 (excluding gas shrinkage) with and 2050 (including gas shrinkage), in line science-based targets associated network assets
VPN • • • • NGN • • UKPN • WWU • HMLP • E e tri it ie e t er e t r as Vision 2050 – a pathway to 2050 Vision as e per electricity unit sold to no higher 2 Other fuels include lignite, residual fuel oil, industrial waste and biomass (e.g. landfill gas, sludge gas, etc). Other fuels include lignite, residual fuel
than 0.6 kg/kWh in 2023 from 0.93 kg/kWh in 2005 achieve near zero emissions in the gas sector Continue working with Australia’s five peak gas bodies to develop G Move to 100% capable of gas-firing by 2022 Convert Sheerness power plant from coal to natural gas firing. The conversion of the first unit was completed in 2020 and the second unit is due to be completed in 2021 Reduce CO Energy consumption (‘000 kWh) Energy consumption
Note 1: Looking forward peers and We will continue working with industry policymakers to identify possible decarbonisation our coal-fired pathways. We are committed to reducing our generation generation installed from about 50% of We will portfolio in July 2017 to about 22% post-2023. in actively look into suitable investment opportunities including clean energy and provide necessary support funding to our investments to expand their renewable energy portfolio. In addition to the Group-wide commitment, each business has also pledged to decarbonise. For example: AGIG • Canadian Power • • HK Electric •
NGN: actual 27% against a target of 18% NGN: actual 27% against period from April 2013 to during the regulatory March 2021; and its WWU: actual 19.7% at March 2020 against target of 16% by March 2021. Air emissions (tonne)
progress and SBTi Net Zero project. • UKPN has been participating in the Ofgem Group Decarbonisation and Environment Working of an to establish the requirements and features has completed Environmental Action Plan. Besides, UKPN 3 emissions the materiality assessment for its Scope Science Based which form part of its submission to the assessment Targets initiative (SBTi) for approval. The the result clearly indicates UKPN needs to address work on emissions in its supply chain as part of its Subject moving the company to a net zero trajectory. Friend Panels experts have participated in UKPN’s Critical Action Plan (GAP) to discuss and share views on its Green networks hydrogen ready. Other benefits include networks hydrogen supply and reduced public risk improved reliability of leaks. NGN, WWU and AGIG have associated with gas and 417km of old gas pipelines replaced 422km, 337km NGN and WWU are ahead of respectively during 2020. leakage: their targets to reduce • e) 2 o e o e Our gas distribution networks have plans to replace Our gas distribution networks have plans steel and legacy pipe materials (cast iron, unprotected of methane other) in order to reduce fugitive emissions making from networks as well as moving toward It is expected that in 2023, when its three new gas-fired It is expected that in 2023, when its three in operation, generating units (L10, L11 and L12) are oxides and the emissions of sulphur dioxide, nitrogen by around respirable suspended particulates will decrease 75-90% from 2005 levels. Reducing air and fugitive emissions Reducing air and cleaner fuels To reduce air emissions, HK Electric used with lower such as natural gas and low-sulphur coal to make ash content. In addition, HK Electric continued as a selective use of emissions reduction facilities such catalytic reduction system, flue gas desulphurisation to reduce plants and low-nitrogen-oxide burner systems and control air emissions from LPS. United Energy received funding from the Australian United Energy received voltage-reduction demand response Government to trial electricity distribution network to capabilities on their United Energy used their voltage help drive grid stability. to deliver 30 MW of emergency management system prevent power outages for 14,000 reserves. This helped during heatwave events in summer. customers each hour GHG Scope 1 and 2 emissions (tCO
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31 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction reduction, collaborating with 2 other industry players to share these insights. In addition, other industry players to share these insights. to access how a new investment model was developed to customer the gas network was impacted by changes behaviour and the installation of new technologies, customers to such as hybrid heating systems that allow arbitrage between natural gas and electricity. use both UKPN is developing systems to collect and consumptionvoltage-related data and smart meter energy the efficiency and data to enable further improvements in network cost-effectiveness of its electricity distribution As of end to provide a superior service to its customers. smart meters 2020, there are approximately 3 million installed in (equivalent to 40% of all domestic customers) UKPN Regions. government’s HK Electric is in support of the Hong Kong vision to turn Hong Kong into a smart green city. It has commenced a full-scale rollout of smart meters in phases across its supply territory. It is expected that upon completion of the programme in 2025, smart meters will have been installed in every home and business throughout the network. United Energy has been chosen as the only network in Victoria to take part in a new EV smart charging trial. This trial is supported by a grant of AUD835,000 from the Australian Renewable Energy Agency and will see smart chargers installed across the residential, commercial and industrial parts of the network. The trial will remotely monitor and control the chargers via Origin Energy’s existing platform for managing distributed energy. Smart chargers will allow control of EV charging in order to avoid negative impacts on the grid, and maximise the use and value of renewable energy. The AUD2.9 million-trial looks to help the energy sector better understand EV driver behaviour and whether drivers are comfortable with a third party having control of the charging process. Smart Cities work on the Pathfinder WWU continued development cities, regions and countries to 2050 model that allows of low-carbon supplies for heat, evaluate future scenarios allowing them to view the impact ofpower and transport, networks increased integration of the gas and electricity in terms of costs and CO
WWU has assessed the combined energy demands and WWU has assessed the supply and hybrid heating within the researched hydrogen project. The research project UK with the Hybrid-Hydrogen is studying how to incorporate these two technology is studying how to incorporate to net-zero carbon emissions. vectors into the transition and policy stakeholders to This allows wider regulatory to customers be engaged and provides long-term savings with better long-term planning decisions. of AGN and Multinet Gas progressed the construction at the Tonsley a 1.25-MW hydrogen electrolyser plant the Hydrogen Innovation District in South Australia for first Australian Park SA (HyP SA) project. HyP SA is the for blending project to produce renewable hydrogen customers with natural gas and supply to domestic in South via AGIG’s existing gas distribution network step to Australia. A 5% hydrogen blend is the first is to extend lower GHG emissions and the next step up to the hydrogen footprint with projects considering The HyP 10% hydrogen blend before 100% conversion. trailers and SA project also supplies to industry via tube future. This aims to supply the transport sector in the business project will be used to analyse and develop utilising excess models for the use of “green” hydrogen excess wind solar energy during the daytime and the energy during the night to progressively decarbonise gas supply. Its importance is reflected through receipt of the 2020 Australian Engineering Excellence Award for Gas and Pipeline Australian 2020 the and Australia South Association Environment Award. To expand AGN’s renewable gas footprint into Queensland, the company has announced the construction of Hydrogen Park Gladstone (HyP Gladstone) with a grant funding of AUD1.7 million provided by Queensland Government in February 2020. This AUD4.2 million HyP Gladstone renewable hydrogen production facility involving the installation of a 175-kW electrolyser, is able to deliver up to 10% blended hydrogen across the city’s total 770 residential, small commercial and industrial customer base. The project is currently focusing on customer engagement, detailed engineering and design, and is expected to begin production in Q3 2022. How We Work H21– construction work of the Spadeadam micro H21– construction work of the Spadeadam network and the Redcar test site commenced testing and will be completed in early 2021, with tests aim commencing shortly afterwards. These policy to give confidence to the industry and UK makers that conversion of the gas networks to 100% hydrogen is achievable and safe. HyDeploy – a 16-month live demonstration of up to a 20% blend of hydrogen into the gas network is taking place within Keele University’s private gas network and will be completed in March 2021. Following this HyDeploy2 will start blending up to a 20% blend of hydrogen into NGN’s domestic gas network in April 2021. This will provide 670 properties on NGN’s gas network with a hydrogen blend for 10 months and aims to demonstrate that this level of blend is safe to use both within the existing network and with existing domestic gas appliances – allowing carbon emissions to be reduced at no significant extra cost to the customer.
• NGN plays a leading role in the H21 project in Buxton which seeks to repurpose the gas network to carry hydrogen, delivering clean energy to homes and businesses in England. Hydrogen economy of the Hydrogen Council Power Assets is a member along the and is working actively with industry peers to demonstrate entire product chain and policy makers and safe and promote hydrogen as a reliable, clean by various fuel for achieving the net zero targets set NGN and jurisdictions. In the gas distribution sector, the H21 WWU are founding members promoting and related (hydrogen in the 21st Century) concept programme projects. H21 is a collaborative gas industry the UK gas focused on demonstrating how converting the UK’s network to carry 100% hydrogen can tackle focused on decarbonisation challenges. H21 is now a first policy delivering two key pieces of work, to enable decision on hydrogen to be made. • Our Commitment Challenges and Opportunities Challenges and The Group seeks to prepare its electricity and gas networks to support smart cities and the hydrogen economy. We will embrace the viability of a hydrogen economy with gas networks working on hydrogen blending, and seek to introduce hydrogen in gas distribution networks where applicable. We will also support governments in different jurisdictions to turn into smart cities by rolling out smart meters, provide adequate EV charging facilities, and educate the community on sustainability, energy efficiency, and renewable energy. With continued technology improvements and cost With continued technology improvements could present declines, hydrogen as an energy source a cleaner the Group with new opportunities in providing energy alternative to customers. Hydrogen economy is a relatively new concept that Hydrogen economy a promising path for energy can potentially offer and economic security, along with other environmental benefits. Green hydrogen can drive decarbonisation and and is viable with strategic offtake agreements there are government support frameworks. However, economy, still many challenges to realising a hydrogen as the transition from a conventional petroleum-based involves many energy system to a hydrogen economy of efficient fuel uncertainties, such as the development production and cell technologies, problems in hydrogen of petroleum distribution infrastructure and the response a good markets. Other factors are cost competitiveness, safety system and public acceptance. Opportunities in Clean Technology Opportunities
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33 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction potential. In 2020 the main focus was on determining potential. In 2020 the plans. By 2021, UKPN aims to the 100 sites and setting value by up to 30% at 100 sites increase the biodiversity towards minimising species decline to actively contribute gain. and promoting net have no To ensure that works can be designed to NGN significant impacts on wildlife and biodiversity, of known carefully plans necessary works in areas of biodiversity sensitivity, such as Special Areas Interest, Conservation or Sites of Special Scientific Site-specific avoiding such areas wherever possible. surveys) ecological assessments (desktop and site the impact are undertaken as necessary to minimise land of work carried out. The target area includes process often owned by NGN and by third parties. This to obtain includes discussions with national regulators on permissions/consents for works and agreement mitigation measures. As for WWU, project-specific impacts on works are undertaken to avoid detrimental applied. biodiversity, with local and limited improvements Protecting biodiversity Protecting biodiversity to protect the It is part of our Environmental Policy in the area around our biodiversity and habitats minimise and mitigate the impact projects. We seek to before we begin a project, and of our developments of operating continuously monitor the potential impact projects on biodiversity. air and noise In addition to controlling the impacts of disturbance emissions, excessive illumination and human a planting to plants and animals, HK Electric also has through the programme in place to promote biodiversity and attract cultivation of native trees and shrub species, local wildlife. Action Plan UKPN has committed to a Networks Green in particular to enhance biodiversity around the sites, Plan substation sites. As part of the Green Action it believes initiative, UKPN identified 100 sites where of it can make a difference and has set a target least 20%. improving the biodiversity potential by at (ADAS and UKPN partnered with ecological experts a Wildlife Trusts) to assess the sites and determine each baseline biodiversity measurement. Following survey, a biodiversity management plan was prepared with site-specific measures to enhance the biodiversity How We Work Environmental management system Environmental management an Environmental Power Assets is implementing to contribute to Management System (EMS) with an aim sustainability the ‘environmental pillar’ of the company’s continual development. This EMS serves to ensure environmental improvement, monitor compliance supply-chain with relevant laws and regulations, fulfil awareness requirements, promote staff environmental from resource and increase financial savings resulting business units saving and cost reduction. Most of our given as have their EMS with details of each company below: EMS in HK Electric has three ISO14001:2015-certified and place, which covers the generation, transmission, Island and Lammadistribution of electricity to Hong Kong Island, and the development of power infrastructure. EMS Other businesses with ISO14001:2015-certified AVR, VPN, include NGN, WWU, UKPN, Seabank Power, EMS of SAPN Jinwan Power and Ratchaburi Power. The is also developed in line with ISO14001. Environmental awareness is one of the strategic focuses of our Environmental Policy and forms an integral part of our EMS. UKPN conducts Working in the Environment training that highlights the potential impacts of its business on the environment. The course helps colleagues understand how to manage environmental issues and where to get information to alleviate or resolve such issues. In 2019/20, 76 employees attended the course, taking the total number to 303 by the end of March 2020. Our Commitment Challenges and Opportunities Challenges and As a player in an essential utility sector in numerous markets around the world, we are also committed to supporting local governments in achieving the goals set by the United Nations Framework Convention on Climate Change. For more information, please refer to “Combating Climate Change” on pages 24 to 29, and “Opportunities in Clean Technology” on pages 30 to 31. We aim to minimise the impact of our operations on the environment while addressing the global concern about climate change. We comply fully with all applicable laws and regulations and endeavour to integrate environmental considerations into all aspects of our business operations. We are committed to protecting the environment and We are committed to protecting the environment development biodiversity, and supporting sustainable by conducting our business in an environmentally responsible manner. The possible negative impacts of existing assets and The possible negative impacts of existing transmission plants, power as such projects infrastructure and oil tanks towers and wires, oil and gas pipelines lead to on the surrounding ecosystem would also project scrutiny from regulators. Therefore careful for the Group planning, design, and operation is a must and to minimise its impact on the local ecosystem biodiversity. Preserving biodiversity is extremely important and energy Preserving biodiversity have operations in ecologically and utility players that sensitive areas are subject to extensive environmental local regulators impact assessments and checking by the for project approval. Preserving Natural Environment Natural Environment Preserving
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35 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction for contamination. Clean spoil is sent off-site to for contamination. Clean spoil is sent off-site aggregate. recycling centres for processing into recycled classified Contaminated soil is segregated, tested, for treatment and then sent to the appropriate facility wastewater and/or disposal. Jinwan achieved flue gas is also modifying zero-discharge at the end of 2020 and dried clearing its coal pulveriser pyrite system to use a reduce the system instead of flushing water. This can work amount of effluent produced. The modification was completed in January 2021. ) 3 Ratchaburi Power monitors water quality at drainage points to protect the community. Water consumption in past two years (‘000 m Water consumption Managing waste and effluent is Another strategic objective of our Environmental Policy In order the sound management of waste and effluent. to to continuously improve, we look for opportunities result in net implement reuse and recycle initiatives that positive impacts on the environment. Proper disposal AVR To expand its range of environmental services, facilities launched one of the largest plastic separation in the Netherlands, with a capacity of 430,000 tonnes. At its Rozenburg facility, the company also extended its biomass processing capabilities to provide, apart from electricity, heat and steam to key customers, while at the same time investigating the feasibility of increasing the amount of hazardous waste processed. To ensure adequate management and storage of chemicals, EDL has greatly improved waste tracking and reporting processes and is working on reducing waste generation, particularly in the areas of engine oil, oily water, and coolants. At NGN, approximately 99.5% of waste by weight is excavation spoil. Spoil is excavated, segregated by type on-site and assessed
3 of water was collected for reuse. Smart water meters of water was collected for reuse. Smart use in real also enable the company to monitor water time and identify areas for improvement. measures that UKPN is implementing water efficiency water use at its have resulted in a 15% reduction in the head office to offices. A trial has been launched at the and push-tap install cistern hippos to the toilet facilities, wastage. installation is planned to minimise water generator Ratchaburi Power uses heat recovery steam (HRSG) blow down for watering to reduce water usage. The cycle of cooling water is also optimised to reduce raw water use and water discharge. Jinwan power plant modified its setup to use a dry cleaning process of flushing water for its coal pulveriser pyrite system. water reduce to opportunities pursue to continue will We usage across our businesses in future. In particular, UKPN aims to reduce existing water consumption at the top six depots by 10-15% by 2021. Water management irreplaceable natural resource. Based Water is a basic and of the World Resources on the water risk framework on financial risks from water Institute’s (WRI) publication generation, we currently have no constraints on power located in water-stressed areas production plants/sites are considered of low risk. Despite and our operations a plan for water conservation this, we have devised rainwater at our which includes reusing wastewater and appliances in power stations, adopting water efficiency by reducing our premises and preserving water quality discharge. consumption at HK Electric strives to reduce freshwater rainwater and LPS through the collection and reuse of 123,000 m plant processing water. In 2020, more than Light Detection and Ranging (LiDAR) is used Light Detection and Ranging (LiDAR) is to conduct an annual vegetation inspection programme. This technology is more accurate and assists than a ground-based visual inspection, growth with data-driven assessment of vegetation to help optimise treatment cycles and prevent encroachment on to the minimum clearance space. Early fault detection technology continuously Early fault detection technology continuously monitors disturbances along overhead conductors prior to and aims to trigger an inspection response a defect condition manifesting into a permanent fault. High voltage cover conductor (LoSAG) in the High voltage cover conductor (LoSAG) in Powercor Network – 50-km trial installation. Drones with powerful cameras and thermal imaging devices patrol powerlines across dense forest to keep network infrastructure safe from bush fire risk.
• CitiPower and Powercor are continually pursuing bushfire bushfire pursuing continually are Powercor and CitiPower technology risk reduction best practice through new trials and adoption: SAPN has been working with Greening Australia and SAPN has been working and Water to improve the Department of Environment associated with SAPN’s operations biodiversity outcomes include revegetation at the and infrastructure. Initiatives Station, investigating new types Kangaroo Island Power mitigation of street light pollution of wildlife diverters, a significant raptor nest near and the relocation of Kingscote. • •
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37 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Regulatory Compliance Regulatory with laws and regulations as We regard compliance and there are established one of our top priorities mechanisms to ensure policies and accountability of our operations. Our compliance in all aspects to staying abreast of management is committed developments and providing the latest regulatory for relevant personnel. We all necessary training there are also dedicate extensive efforts to ensure to track effective monitoring and detection measures compliance. not aware of During the reporting period, we were having any non-compliance with laws and regulations to air and a significant impact on the Group relating and land, and GHG emissions, discharge into water wastes. generation of hazardous and non-hazardous of plant effluent and 3 Divert at least 80% of excavated spoil materials, which accounts for over 95% of total waste generated by WWU, from landfill by 2026. Investigate new technologies and the ability to Investigate new technologies and the ability dosing reduce the amount of back-up biocide treated being used in chemicals for the secondary sewage water used as process cooling water. landfills Divert more than 90% of the waste from from and recycle more than 80% of the waste achieve the top six sites by December 2021. To to pilot this target, UKPN is progressing with plans best-practice recycling which involves establishing improved monitoring and measuring recycling practices, and initiatives such as the enhanced new fit behavioural campaign and the roll-out of for purpose bins. rainwater for reuse at LPS in 2021. Collect at least 100,000 m
UKPN • WWU • Seabank Power • Looking forward to strive to reduce waste sent In 2021, we will continue on waste includes reducing, reusing,to landfill. Our focus materials and resources. Many recovering and recycling made formal commitments to of our businesses have reduce waste. For example: HK Electric • HMLP continues to reduce the probability and HMLP continues to incident with advancements consequence of a pipeline management, operational integrity in pipeline integrity room management, and innovativemanagement, control cables supplement existing leak technology. Fibre optic new pipeline segments helping detection systems along strain, and acoustics to pinpoint to monitor temperature, thermal imaging are available to a leak. Drones with flights. An extensive geohazard substitute regular aerial satellitesprogramme is complemented by radar-equipped movements. and slope inclinometers to detect ground Reduce, reuse and recycle – reduce, The Group is implementing the “4R” Policy resources. It reuse, recover and recycle materials and for industrial collects ash and gypsum from power plants spoil sent to use and limits the amount of excavated than virgin landfill by using recycled aggregates rather aggregates. Electric According to its Environmental Policy, HK the waste seeks to reduce, reuse, recover and recycle generated. Waste generated from the construction units, activities associated with the gas-fired generating or L11 and L12 generators at the LPS are recycled Temporary properly disposed of by different methods. have been wastewater storage and treatment facilities from installed on-site to recycle wastewater generated bore piling work to reduce wastewater discharge. SAPN conducts substation audits each year to assess its SAPN conducts substation audits each year and oil-filled assets (such as high voltage transformers environmental insulators) against safety, condition and criteria. They also check for PCB (polychlorinated biphenyl) contamination from old transformers and circuit breakers. Substations located close to homes, offices, waterways or conservation areas, or considered high risk, may require the installation of bunding (a type of wall) around transformers to protect the surrounding area from a leak. At WWU, hazardous solid waste is stored securely at At WWU, hazardous solid waste is stored open storage depots within locked units or managed hazardous areas. Waste is segregated into clearly-defined waste streams at each depot. Hazardous waste management Hazardous waste about managing waste We are extremely careful by-products the including operations, our from generated Our collective efforts to reduce of energy generations. contractors, suppliers, waste involve our employees, third parties. We advocate waste regulators and other and encourage the reuse and reduction at the source other projects. Waste managementrecycling of waste for to enable plans have been formulated and implemented collection, recycling and reuse, and proper storage, wastewater treatment and disposal of waste. Temporary installed at storage and treatment facilities have been wastewater power plant construction sites to recycle wastewater generated from bore piling work to reduce have been discharge. Furthermore, our power plants ash and collecting generation by-products including of gypsum for industrial use, such as manufacturing cement.
Power Assets Holdings Limited 36 Introduction Sustainability at Power Assets Environment Social Appendices We are a responsible employer, business partner and corporate citizen.
Our aim is to positively influence the wellbeing of everyone we come into contact with – including our employees, customers, suppliers, contractors and the wider community. We strive to be a partner that achieves the best for ourselves and others, by always behaving in a manner that embodies integrity, responsibility, respect and empowerment.
41 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction HK Electric is a signatory to the Joyful@Healthy HK Electric is a signatory to the Joyful@Healthy of Workplace Charter launched by the Department Health Council. Health and the Occupational Safety and company To promote employee well-being, the such as organised a series of online interest classes DIY face mask cover, leathern rose, and towel animals. These were conducted through online live broadcasts for employees to join via their office desktop computers. The company also offered flexible work arrangements to employees during the COVID-19 pandemic. Our employee performance review process connects aligns and goals individual with compensation employee performance with business objectives and outcomes, creating a win-win situation for the employee and the Group. How We Work To recruit and retain diverse talent The recruitment, hiring and performance appraisal and processes form the foundations of positive long-term employee relations. To retain talent, HK Electric provides competitive are compensation packages, and eligible employees contributions entitled to additional incentives for their and other goals. to the company’s growth, profitability, qualified To increase the pipeline of diverse and the Virtual Career candidates, HK Electric participated in Hong Kong Fair organised by The City University of entry to promote its employer brand and different recruitment positions in customer service and IT. Online universities talks are also delivered to students of local which is to promote our Graduate Trainee Programme, future talents. the company’s key breeding ground for trainees who In 2020 it recruited a total of five graduate will undergo an intensive training programme covering a wide scope of learning areas. As an additional measure to reinforce employees’ sense of belonging and commitment, WWU has introduced a flexible benefits scheme, allowing colleagues to choose additional benefits alongside their standard benefits packages. Every year WWU improves the offering with additional benefits in response to colleagues’ feedback. We seek to protect the well-being of our staff by encouraging a healthy work-life balance. To ease work-related stress, we offer a range of generous paid-leave entitlements and flexible working arrangements. A wide range of initiatives including interest classes, seminars, health talks, training courses and fitness activities ran to help staff maintain work-life balance. Many of these went online in 2020 as a result of the pandemic. Our Commitment ssisting staff to develop in an engaged to staff ssisting reating a diverse and inclusive workplace by respecting the values, customs and traditions of respecting the values, customs and traditions our employees in different operating markets; families. workplace and caring for them and their being an equal opportunity employer; c our caring for the well-being and health of employees and aiming to achieve a workplace free of injuries; and a
• The Group’s success through excellence depends The Group’s success through excellence at every level. on the performance of its employees employees are The values the Group inculcates in its change and candour, courtesy, an ability to deal with and privacy. respect for humanity, personal dignity As stated in our Sustainability Policy, we are committed to: • • • Challenges and Opportunities Challenges and We strive to provide a safe and rewarding workplace for our employees, and aspire to be for our employees, and a safe and rewarding workplace We strive to provide an attractive employer. Human Capital Development Human Capital Through revisiting the recruitment process and Through revisiting the recruitment process focusing on diversity in the workplace, we can improve our recruitment and retention strategies to attract the right talents. With the increasing participation of women in the utilities sector, focusing on diversity is likely to improve the industry’s ability to meet its workforce needs. Decarbonisation through a replacement of coal-fired Decarbonisation through a replacement of renewables power generation with a combination the and natural gas-fired power, along with a shift in implementation of smarts meters, demands skillset for the existing workforce. The attraction, retention and development of talent The attraction, retention and development development. is essential for the Group’s long-term costs of Risk of increased turnover and associated capital attritionrehiring, loss of intellectual and human and retain may pose threats to the ability to attract of utilities talent. In recent years, the rapid evolution grid are leading businesses and need to modernise the IT and to increased demand for employees with operational data analytics skills. There is also risk of negatively disruption from labour strikes which may impact utilities’ service to customers.
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43 Sustainability Report 2020 Report Sustainability 95% 100% Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction a a a al o a o 98% 99% al S a al Percentage of employees who received training Percentage of employees of training per employee by and average hours category gender and by employee In 2020 we provided 464,470 hours of training and In 2020 we provided employees. development for full-time programmes HK Electric operates talent development stepped to inspire future leaders. In 2020, the company through up actions to nurture leadership opportunities sessions, leadership bootcamp initiatives, book review coaching and mentoring, and action-learning projects. Apart from these activities, the participants receive mentorship from senior executives or department heads to widen their perspectives and enhance their skillset. HK Electric further adopted e-learning and multi-media approaches to facilitate interactive and self-initiated learning. Harnessing a newly set-up e-learning portal, the company offered six webinars on leadership and two e-learning series to the Leadership Development Programme participants. Since the inception of the Leadership Development Programme in 2010, 85.7% of the 77 mid-level participants remain with the company, while 64.9% have already been promoted to senior leadership positions. HK Electric also directed more resources in conducting lecturer-led training via online conference tools in response to COVID-19. All employees could undertake self-learning by accessing the learning resources available on employee communication platforms such as the company’s intranet portal and “My HKE” mobile app. Training and development of our people is essential The professional growth business. We invest heavily to the growth of our our people abreast of the latest in training to keep industry and enhance their developments in the Training programmes knowledge and performance. business units to provide are developed by respective experience that suits the most relevant learning employees’ specific needs. staff members The Group ensures that all our skilled qualified for are professionally trained and suitably required to their roles. All operating companies are that the requisitesubmit annual training logs to ensure suitably credentials for all skilled staff have been are conducted attained and that all refresher courses where needed. our operating Furthermore, the Group and most of development companies conduct various employee needs. We programmes to suit their specific business programmes to run rigorous leadership development support succession planning. VPN conducted learning and development associated programmes for staff to reduce incidents refer to with human factors. These human factors autopilot, distraction, shortcuts and assumptions, and workload. The training provided by the Field Services Teams strived to reinforce staff knowledge of these factors and raise the organisation’s awareness of relevant counter measures. Employees at every level globally are provided with opportunities to develop themselves as leaders. 21.2% 0.1% 4.9% New Zealand: 63 Canada: 10 Part-time: 847 0.4% 0.9% 11.8% 7.2% 6.4% 17.0% Manager grade grade Manager or above: 1,963 3.4% Female: 2,832 Female: 3.2% 29.8% 35.0% Australia: 4,948 Australia: United States: 151 0.0% 0.0% 50 or above: 5,822 2.9% Asia Europe: 488 Europe: Europe Canada Australia New Zealand United States 95.1% United Kingdom : 43 88.2% 83.0% 51.1% 52.5% (excl. Hong Kong, Mainland China) United Kingdom: 8,734 Kingdom: United 30-49: 8,481 30-49: 6.0% 5.0% 4.6% 4.5% 4.4% 3.7% 0.3% 3.0% 2.4% 2.0% 1 (excluding Hong Kong, Mainland China) Kong, Hong (excluding 13.9% 11.1% 1 Hong Kong: 1,844 General staff: 14,651 General Under 30: 2,311 Full-time: 16,614 Full-time: 13,782 Male: Mainland China: 333 China: Mainland Asia 2 Male 2 30-49 2 2 Overall Female Under 30 By By By By By type Hong Kong 50 or above region gender category employee age group employment Mainland China Turnover rate refers to full-time employees only, which is calculated based on the employee departure during Turnover rate refers to full-time employees only, which is calculated based 2020. the year, divided by the average total number of employees as at 31 December Exclude Husky Midstream, as all the employees are outsourced from Husky Energy Exclude Husky Midstream, as all the employees Full-time employees only
Employee Turnover Employee Profile Note: (1) Note: (1) (2)
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45 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Complying fully with all applicable laws and Complying fully with health and safety regulations and integrating considerations into all aspects of our business activities; that Nurturing and supporting a company culture health promotes employee wellness and enhances by and safety awareness among our stakeholders and providing appropriate and timely information risks; training to identify hazards and manage Adopting and maintaining safety management manage systems and measures to monitor and business the health and safety performance of our and its contractors and suppliers; and in all Ensuring commitment from our stakeholders and our markets to share the same vision, values meet the responsibilities for health and safety and same standards.
The commitment of top management to health and The commitment of in the Health & Safety Policy, safety issues is formalised following key principles: which is based on the • • • • Challenges and Opportunities Challenges and Our Commitment Occupational Health and Safety Occupational their operations, our investments Due to the nature of of health and safety risks. Any are exposed to a range involving members of the fatal or injurious accident could have public or our employees or contractors significant consequences, resulting in widespread to the distress and harm or significant disruption action, operations, followed by possible regulatory to the Group’s legal liability, material costs and damage to take reputation. During the pandemic, we need and necessary measures to protect our employees maintaining a contractors from being infected while especially vital stable operation, since utilities play an emergencies. role in keeping society running during and secure The Group is committed to offering a safe customers environment for our employees, contractors, at the Group’s and other stakeholders when they are a company-wide facilities and premises. We encourage safety culture where everyone is responsible for making every workday healthy and safe – from our top management and throughout the group. UKPN has retained its National Equality Standard UKPN has retained its highest standard of recognition accreditation, the UK’s equality, diversity and inclusion, for best practice on the list of the Inclusive Top 50 and is ranked third on gender pay gap in 2019 UK employers. The median narrowed slightly from 13% (published in April 2020) 2018. In the three years since the to 12% compared to Pay Regulations in 2017, the introduction of the Gender Median men and women’s pay has difference between commitment to decreased by 18.5%, demonstrating its as well gender pay equality at all levels in the business development as its dedication to equality in recruitment, and promotions. the selection AVR seeks to promote diversity as part of was at least process. In 2020, AVR ensured that there Rozenburg one female worker on each shift at the production plant. Two-way communication open two-way The Group always strives for effective, communication and various effective communication channels are in place. allow employees Regular open forums are conducted to on and the senior management to communicate concerns. organisational updates and employees’ focus group Theme talks, topical briefing sessions, and meetings on company issues are also conducted as required to explain and convey company issues and policies to employees, and collect their opinions and feedback in the process. In order to understand employee perspectives, attitudes and opinions, UKPN conducted monthly polling and an annual survey for improved awareness, full compliance and increased levels of employee engagement. Uniform communication procedures are applied across AGIG to allow employees to provide honest feedback to the company about their employment experience. AGIG also provides employees with channels to escalate any unfair or unequal treatment they encounter. Measures to promote gender diversity continued in 2020. EDL addressed female university students studying in science, technology, engineering, mathematics (STEM) and offered them post-study employment. This helped improve the diversity in the workplace through the graduate programme recruiting process. EDL achieved several diversity and equal opportunity EDL achieved several diversity and equal gender diversity goals in 2020. EDL is on track to meet its by 2023, target of 25% females in its global workforce in support achieving 20% in 2020 – one of the initiatives of at least 3 of this includes a maternity leave policy across all months’ full pay for the primary caregiver rolled out online countries where EDL operates. EDL also which will be Diversity and Inclusion training globally, EDL provided refreshed every two years. In Australia, summer internships to participants from CareerSeekers and CareerTrackers, not-for-profit organisations that respectively assist migrant and Aboriginal and Torres Strait Islander university students into career pathways. EDL’s Australian business also launched its inaugural Reconciliation Action Plan, to improve opportunities for engagement and participation with First Nations peoples. In USA, the North American D&I Committee was established to focus on USA and Canadian diversity and inclusion programmes. We enforce an anti-discrimination policy and have zero We enforce an anti-discrimination policy employees, tolerance for harassment in any form. All beliefs, receive irrespective of race, gender or religious and promotion equal opportunities and our recruitment A Diversity processes are based purely on performance. from different Committee comprising representatives of our business units has been established in many on diversity operations over the world to raise awareness among the workforce. Diversity and equal opportunity Diversity and equal inclusive workforce can provide Having a diverse and on how we conduct our businesses different perspectives our business performance. and ultimately benefits an equal opportunity working We strive to provide free from harassment and environment that is unbiased decision-making. discrimination and promotes
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47 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Health and safety monitoring systems and formal Health and safety monitoring have been established. Audits on audit programmes system at corporate level, the safety management (T&D) division-level and Transmission and Distribution are conducted no Generation (GEN) division-level 12 months by Registered Safety less than once every a measure of compliance in line Auditors to provide and in-house Safety with Government Legislation to establish and maintain effective Rules requirements; and systems to manage risks to health & safety; identify major hazards at an early stage. Analysis EDL continued to improve the Shared business to Management (SAM) system across the management provide an effective hazard and incident EDL recording and reporting process. In addition, Awards to launched the global Safety Leadership promote and reward positive safety leadership 5 initiative, behaviour. EDL also launched the Take to a task which serves as a hazard/risk review prior meetings being conducted. Weekly safety leadership from are held by operations teams, with participation staff. corporate and operational support services improved The increased focus on safety leadership, Take 5 process reporting and effective delivery of the global has changed behaviours across the EDL performance. workforce, resulting in improved safety A High-Risk Controls manual and awareness programme were released in August by VPN as the key component for 2020’s HSE Hazard Awareness and Compliance programme. Nine High Risk Controls have been identified based on past incidents records, while minimum standards and controls for each have been produced with reference to the legislation. The programme has been communicated throughout the business to reduce high consequence incidents and protect health and safety. EDL conducts Emergency Management and Crisis EDL conducts Emergency training to ensure senior Management Awareness prepared to respond swiftly to managers are well The annual review of the emergencies and crises. and Business Continuity Planning Crisis Management material and process documents. Programme updates business-relevant emergency Training scenarios and are delivered to executives, senior response scenarios workers to further build capability leaders and support and resilience. and safety risks HK Electric identifies potential health as well as for employees, contractors and customers by developing for the public, and mitigates these risks Regular and implementing appropriate procedures. response drills are also conducted to enhance our capabilities to these situations. Hazard identification and risk assessment the risks We are committed to rigorously managing such as those associated with hazardous processes, fires, with the potential to result in catastrophic materials. explosions, and sudden release of toxic inspectionsHK Electric conducts various types of safety and on the operational activities of contractors their frontline employees to measure and monitor pre-determined health and safety performance against plans and standards. Respective divisions have inspection schedules in place stipulating the type and frequency of the inspections, which are conducted by appointed persons with appropriate training and experience. The results of the health and safety inspections will be brought to the attention of senior management or relevant health and safety committee, where appropriate. The inspection records are properly kept by the respective divisions and are available for audit purposes. Emergency preparedness and crisis Emergency preparedness management business resilience by creating Our goal is to enhance environment where our people a controlled working and our operations pose minimal and assets are safe and the communities. impact on the environment processes in place to help prevent We have plans and respond to, and recover from and be prepared for, such as fire, oil and chemical potential emergencies evacuations, spills, typhoons, flooding, emergency rescues from confined spaces and heat-stroke treatment. Probability UKPN established the High Impact Low an enhanced (HILP) programme to ensure UKPN has to programme in place to effectively respond large scale high impact events. The programme all of is underpinned by workstreams that cover such a the important aspects expected within in a national response. For instance, UKPN took part processes cybersecurity exercise to test its current improvements and identify further opportunities for and a to ensure that there is sufficient protection as one robust response in place for a cyber-attack the impact kind of high impact event. To minimise customers, a of a crisis on the delivery of service to at either a central team coordinates the response strategic or tactical level. UKPN also has a holistic Business Continuity Management System that builds a framework for resilience by identifying potential threats to the business and the impacts on the business operations these might cause. How We Work The effectiveness of the management system and the health and safety performance of Power Assets and each of its businesses is subject to a biannual internal Meeting. Management Safety and Health the in review Well-established health and safety management systems have been adopted in different business units to ensure compliance with local regulatory requirements. Most of our operations like HK Electric, UKPN, WWU, Seabank Power, SAPN, AVR, Ratchaburi Power and Jinwan Power have their own Occupational Health & Safety Management Systems in place that conform to international standard ISO45001 or OHSAS 18001, to manage its exposure and protect its employees, customers, contractors and the public by conducting its business in a safe and socially responsible manner. To ensure our operating companies have followed the To ensure our operating companies have of the guidance given in the Health and Safety Policy sit on the BoardGroup, our directors or executives that exercise their of our material investments continually to adopt our influence and encourage the businesses own approach Group’s principles in developing their to their and practices that are most appropriate Power Assets operations and geographic locations. high-level health delegates its directors to determine a and safety strategy and policy, set corresponding performance targets and oversee the health and safety of material investments. This HMS serves to ensure continual health and safety This HMS serves to ensure continual health relevant lawsimprovements, monitors compliance with and and regulations, fulfills supply-chain requirements, to achieve promotes staff health and safety awareness a no-injury work place. Health and safety management system Health and safety a Health and Safety Power Assets is implementing (HMS) with the aim of Management System ‘human capital pillar’ of the contributing to the development. company’s sustainability
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49 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction NGN’s field service teams carry out works in full personal protective equipment to keep them safe without compromising reliability. To support a caring and supportive culture at the To support a caring during the COVID-19 pandemic, workplace, especially colleagues who previously more than 75 HK Electric employee counselling skills received training on just-in-time emotional support to continued to provide inspiration for the Good staff in need. As continuous enlightening stories and useful Neighbours’ Club, were shared on the HK Electric tools and resources in-house mobile app, “My intranet portal and set up on the HKE”. An Info Hub for COVID-19 was mobile app company’s intranet portal and “My HKE” to precautionary to convey useful information relating in the form measures against COVID-19 to employees news, and of in-house educational videos, posters, educational announcements. A total of 11 in-house produced videos on precautionary measures were to reinforce and two quizzes were launched in 2020 of the employees’ understanding and application precautionary measures. To help staff members during the COVID-19 To help staff members health promotion and pandemic, SAPN conducted via an online health hub mental health programmes New initiatives developed during and wellness portal. Hub @ Home, which focuses 2020 include the Health arising from working from on the health challenges as mental health, first aid, home. Features such training courses, and a mindfulness and resilience service for workers exposed Traumatic Event Response available to to distressing incidents have been made health. protect employees’ physical and mental health and In order to foster a positive culture of and safety safety, UKPN conducts regular health external training programmes for employees. Using leaders and internal experts as facilitators, 610 training participated in a three-day residential skills, programme designed to provide awareness, their approach tools and motivation to positively shift a to Safety Leadership. 470 employees attended All two-day residential safety training programme. high risk work employees who conduct or influence were trained by the end of 2020. with 250,000 UKPN is ahead of its target to engage the COVID-19 people each year on public safety. With channels to pandemic, UKPN made full use of digital website for further promote the PowerUp educational children. In order to reduce serious injuries, United Energy developed and implemented a High-Risk Control Programme for internal employees. The programme includes face-to-face learning and an iLearn package for all employees to improve their knowledge of the by our conducted activities risk highest the for controls employees and contractors. WWU engineers maintain excellent customer service standards despite social distancing requirements. Safety is integrated into tender processes and we Safety is integrated at our sites to follow all applicable require all contractors health requirements. Also, there workplace safety and campaigns for HK Electric’s are various promotional Life First Campaign; Health & Safetycontractors including & Environment Day; and Health & Week; Safety, Health safety information is available on Safety Talks. Relevant for third-party contractors carrying HK Electric’s website supply lines. out works near its power Promotion of occupational health top priority. Our employees’ health and safety is of COVID-19 This is especially true in the face of the pandemic. Electric and Group operating companies such as HK works while Canadian Power underwent major capital AGIG, EDL other companies including UKPN, VPN, projects. All and WWU implemented large capital were managed construction activities and capital sites guidelines in accordance with local government protective on safety and social distancing. Personal working, and equipment and sanitising facilities, shift workers safe. other arrangements were made to keep Contractor safety programme We continue to collaborate with our contractors to develop and implement innovative solutions for improving health and safety performance to ensure we are prepared for the increase in work programmes associated with our growth projects. WWU has an HSE consultative committee comprising representatives from trade unions, with the CEO serving as the chairman of the committee. A Health and Safety Committee of Wellington Electricity A Health and Safety Committee of Wellington Board meets every quarter to review issues requiring Leadership governance or guidance. A formalised Safety Structure is in place to help ensure that health and safety leadership is provided throughout the business. For UKPN, Health, Safety & Environment Committees For UKPN, Health, Safety & Environment a (HSECs) are structured into three tiers providing for the strategic, tactical and action-based approach All HSECs meet engagement and involvement of staff. and the action quarterly to facilitate information flow, which level HSECs meet prior to the tactical HSECs Health, Safety & meet two weeks prior to the Company Environment Committee meeting. The health and safety of our staff and members of the The health and safety top priority. With the exception public is Power Assets’ restrictions were imposed, of 2020, when travel and Safety Power Assets hosts annual in-house Health business conferences. Executives from our overseas review our units gather in Hong Kong annually to best practices, health and safety performance and share target of zero with a view to achieving our unyielding harm. Health & safety committee Health & safety a safe working environment, we To ensure we maintain to review and address our leverage safety committees risks. work-related injury
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51 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Event Management system 24/7 throughout 2020 Event Management areas for further investigation. for alerts that indicate the governance duty to identity This team also has vulnerability management, and access management, (alongside the legal team) and contractual services awareness management. Employee training Matters’ UKPN operates a company-wide ‘Security branded campaign to communicate awareness as intranet, material across multiple channels, such user email, Yammer, digital noticeboards and and personnel briefings, covering the cyber, physical course is aspects. An online training cybersecurity mandatory for all employees and this was updated in March 2020 to improve course format, enhance contents, increase the scope, incorporate feedback and include lessons learned within the company and via the media. For field staff, awareness material based on the online course is now available on their mobile touchpad devices. For NGN, cybersecurity e-learning is in place and issued to colleagues on a regular basis. SAPN offers vocational educational programmes in cybersecurity. Training programmes are delivered by registered training organisations and nationally accredited qualifications are credited. New employees are assigned mandatory e-learning modules on cybersecurity information when they join the company. The mandatory e-learning is also supported by an ongoing phishing campaign to test staff awareness. WWU colleagues are assigned mandatory e-learning modules on cybersecurity when they join the company. The Group organised an IT/OT Cyber Security The Group organised colleagues together, where ideas Colloquium to bring be shared. We established and best practices can improvement, set key strategic frameworks to guide and agreed on insights to provide pillars and direction, an uplift in cybersecurity. Each of our investments has taken a risk-based and integrated approach to combat cybersecurity cybersecurity risk. They have established their own to proactively management framework or processes recover from identify, prevent, detect, respond to and cybersecurity attacks. Cybersecurity measures our people, We are committed to the protection of securely-enabled assets, reputation and brand through operations. HK Electric is implementing various cybersecurity protection measures, including a next-generation Advanced firewall and intrusion prevention system, a mail gateway, Persistent Threat protection solutions, These aresecure web proxy and anti-malware systems. information all in place to safeguard the Company’s assets against unauthorised access and malicious attacks. UKPN conducts vulnerability scanning on core systems including the smart meter system. The vulnerability scans include simulated hacker attacks and vulnerability management is subject to a weekly review meeting. Information Security for the Smart Meter system is aligned to ISO27001 as part of the Smart Energy Code (a multi-party agreement which defines the rights and obligations for smart metering) and is managed by a security sub-committee which appoints an external auditor for an annual audit. UKPN’s Cyber Security Operations team monitored the Security Operations Centre and Security Information
o c i c co o Develop and implement appropriate activities to maintain infrastructure resilience and to restore any capabilities or services that were impaired due to a cybersecurity incident. Develop an organisational understanding Develop and implement appropriate safeguards to ensure the delivery of critical services; Develop and implement appropriate activities to identify the occurrence of a cybersecurity event; Develop and implement appropriate activities to respond to a detected cybersecurity incident; and to manage cybersecurity risk to systems, to manage cybersecurity risk to systems, people, assets, data, and capabilities; How We Work
[3] [4] [5] [1] [2] We have established a framework to facilitate a We have established in identifying, assessing and systematic approach risk within the Group. managing the cybersecurity Our Commitment Challenges and Opportunities Challenges and Continues to raise cybersecurity awareness among employees by running cybersecurity awareness training programmes and carrying out phishing drills from time to time. Performs security assessment and enhancement of end-point device and server, ICS/OT, private cloud and application software; and Periodically conducts penetration tests for IT landscape to discover potential vulnerabilities; Completes web security enhancement project to strengthen the security protection of Internet browsing activities; Periodically performs security assessments of critical IT infrastructure and processes to identify security weaknesses and vulnerability;
• The Group has also set the following KPIs to assure The Group has also set the following measures: the robustness of the Group’s cybersecurity The Group seeks to protect its critical assets and The Group seeks to protect its critical there are data from cyber-attacks, and ensure that to adequate and effective cybersecurity defences critical protect corporate information assets and infrastructure. Cybersecurity risk is an increasingly common Cybersecurity risk is can pose immense challenges business threat and the years, cyber-attacks have to companies. Over frequency, continued to proliferate, escalating in high monetary severity and impact. Organisations face and reputational risks if there is no appropriate digitalises, it cybersecurity plan. As the utilities sector threats, also becomes more vulnerable to cybersecurity increasing their exposure to cyber-attacks. Cybersecurity • • • •
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53 Sustainability Report 2020 Report Sustainability 5 98 996 322 S a io 4,294 i a a a ala i i o Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction 0% 7% 2% 1% 29% 55 263 969 ia i a 6,471 1,150 cl i o o o ai la alia o o ai la i a 0% 8% 7% 2% 44% Number of suppliers by geographical region Number of suppliers by geographical On-going management audits and evaluations are carried Regular monitoring, performance and to obtain out to assess supplier from suppliers and contractors to updated information HK Electric’s latest requirements. ensure fulfilment of Gas are All suppliers for AGN, DBP and Multinet (HSE) audited for health, safety and environment all performance on an annual basis. In particular, (External DBP contractors subscribed to ISNetworld on their Contract Information Manager) are audited to ensure all HSE performance on a quarterly basis for suppliers under contract meet the requirements HSE performance. The evaluation of a supplier’s environmental capabilities The evaluation of a consideration in the selectionand systems is an important Electricity. The company evaluates process for Wellington environmental management and verifies the supplier’s establishes performance/measure system or plan and the supplier’s understanding of criteria, determines how the environmental responsibilities; and reviews associated supplier will manage environmental issues addition, with the contract works and services. In right to environmental requirements including the in all conduct audits and/or inspections are defined Competitive Bidding documents. using the UKPN assesses the conduct levels of suppliers and Verify Achilles Utilities Vendor Database (UVDB) for the business. Audits before appointing them to work framework, As an industry-recognised risk management fair, open and Achilles UVDB is considered to provide a for potential transparent means of supplier selection granted access tender opportunities. New suppliers are in the public to the questionnaire and audit protocols This domain of Achilles UVDB and Verify Audits. to comply with pre-qualification database allows UKPN the Utilities Contract Regulations. At AVR, the importance of safety requirements and compliance is always emphasised in contracts with suppliers and included in its “contractor manual” and is part of supplier review procedures. All of AGN, DBP and Multinet Gas’s contracts and purchase order terms and conditions with suppliers include clauses on NGERS (National Greenhouse and Energy Reporting), labour practices and health and safety performance.
– States the Group’s – Highlights the respect How We Work Environmental Policy Human Rights Policy Statement Modern Slavery and Human Trafficking – Reiterates the Group’s zero tolerance of modern – Reiterates the Group’s zero tolerance modern slavery and its commitment to preventing slavery and human trafficking. It is expected that business partners and suppliers share the same values, complying with the relevant laws, regulations and reporting requirements. suppliers’ Transparency in business partners’ and is also approaches to tackling modern slavery expected in all our business relationships. for human rights as a fundamental value of the for human rights as a fundamental value business Group, and explains our expectation of principles partners and suppliers in upholding the similar in our Human Rights Policy and adopting policies within their own businesses. awareness of the direct and indirect impact arising from its ability to influence environmental performance within its value chain and in its investments, and how it endeavours to influence suppliers by raising awareness on environmental issues, eco-friendly practices and professional considerations.
• Sustainable procurement The Group is well aware of the environmental and social impacts that may ensue along the supply chain and is committed to minimising such risks in collaboration with suppliers. ESG-related factors form an important part of the assessment process and have due weighting in our consideration of potential suppliers and contractors. conventions such as the United Nation’s Declaration conventions such as the International Labour on Human Rights and Organisation Core Conventions. also support our commitment to Several other policies sustainability, including: promote supply chain • • Our Commitment Challenges and Opportunities Challenges and The Code applies to all our business partners and products and service providers (i.e. suppliers). Under the Code, the Group works with suppliers and business partners who can demonstrate their commitments to uphold the principles detailed in the Code. The content of this Code has been developed taking into consideration a number of international charters and The Supplier Code of Conduct (the “Code”) underpins our commitment and serves as a guideline for all our business partners and suppliers, encouraging compliance with items in the Code so as to bring broader improvements in sustainability practices and performance for its business partners and suppliers and the communities served by the Group. Effective collaboration with all stakeholders in the Effective collaboration with all stakeholders success, supply chain is critical to our growth and chain particularly given the pandemic. The supply tremendous disruption resulting from COVID-19 poses across all pressure on our operational efficiency In addition, functions of the supply chain management. with the trend to form more business collaborations methods and and partnerships globally, our working to the dynamic operations need to change in response industry environment. We encourage all businesses in our supply chain to shareWe encourage all businesses in our supply stewardship,our commitment in terms of environmental human products or services, child labour, fundamental occupational rights, working conditions, remuneration, health and safety, and business ethics. As a global investor in energy and utility-related As a global investor 14,000 suppliers, the Group is businesses with over power aware of the broader influence its purchasing their has, which it uses to ensure suppliers make operations more sustainable. Supply Chain Management Supply Chain
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55 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Customer Services Policy is in place to guide Customer relationship management Customer relationship in companies in energy As a global investor and distribution and working generation, transmission of fuels including coal, gas, with the spectrum and oil across four continents, renewables, waste serves a total of over 19 million the Group currently customers with power and gas supply. in customer The Group aims to achieve excellence services satisfaction by continually improving our targets. and achieving or even exceeding service A and our operating companies to deliver quality needs at the professional services, putting customer views core of their businesses. We respect customers’ using the and suggestions and respond promptly, We seek latest technologies to reach out to them. stakeholders in continuous improvement and engage needs our pursuit of excellence to satisfy customers’ best practices. and align our business processes with it uses to The Group has various mechanisms that to monitor measure customer satisfaction levels and perceptions feedback in order to understand customer implement the and any ongoing critical issues, and to appropriate corrective actions. In the UK, for example, alongside regulated customer satisfaction surveys (scoring 9.15/10 across all customers) and benchmarking through the Institute for Customer Service, NGN also monitors and improves performance in both the speed and quality of response to complaints. All customer complaints are handled in a courteous, prompt and straightforward manner, as described in its Complaints Handling Procedure. subsidise 4,000 underprivileged households for subsidise 4,000 underprivileged households adopting energy-efficient electrical appliances; complete 1,000 free energy audits for 500 non-residential customers and subsidise buildings for implementing energy efficiency enhancement projects; and organise 1,000 educational and promotional and activities on combating climate change adopting a low-carbon lifestyle.
• • and reliable Recognising the importance of affordable financial electricity for all customers, VPN provided in assistance to households and small businesses Victoria impacted by the COVID-19 environment. CitiPower Users in all distribution networks including package under and Powercor benefited from a relief which eligible customers can defer electricity network charges until January 2021. programmes have been put in place to educate programmes have been efficiency, helping them customers about energy and offering an assistance reduce electricity use customers in line with programme to underprivileged Sustainable Development Goals 7 the United Nation’s Electric will: and 13. By 2023, HK • England and London to make electricity affordable England and London In 2020, UKPN remodelled and combat fuel poverty. programme to support those most the Power Partners affected by the pandemic. 1,066 properties under In 2020 WWU connected and has its Fuel Poor Network Extension Scheme towards an funded a total of 11,700 connections continued eight-year output target of 12,590. WWU most to provide additional assistance to the coverage vulnerable customers within its geographical Steering through the company’s Social Obligations this work Group. Initiatives that have flowed from with include increasing the number of partnerships measures WWU organisations to promote the support Healthy Peopleoffers its customers; the Healthy Homes over project with Warm Wales saved 737 homes household GBP947,000 in 2020 through increasing addressing income by claiming the correct benefits, efficiency energy and water debt, tariffs and energy locking cooker measures and advice and installed 57 safely under valves in 2020, allowing people to cook the supervision of carers and families. to eligible HK Electric offers concessionary tariffs senior citizens, single-parent families, the disabled and the unemployed. Successful applicants are entitled to receive a 60% discount for the first 200 units of electricity consumed every month. Under the company’s Smart Power Care Fund, various How We Work Our Commitment Challenges and Opportunities Challenges and Providing affordable electricity for customers is critical to supporting local economies. As the country’s largest electricity distributor, UKPN already serves at least 1.7 million people living in vulnerable circumstances by providing additional support and advice on energy matters via the Priority Services Register. To further support the local economy, UKPN’s Power Partners fuel poverty programme has provided GBP300,000 worth of annual grants, via a new community investment fund in 2018, to a total of 30 community organisations across the East, the Southeast of Better access to affordable energy We are committed to respecting the rights of We are committed to respecting the rights their economic communities and contributing towards a range of and social progress by interfacing with development stakeholders on a regular basis. From communities through operations, we engage local have a to share information and ensure our projects positive impact on the community. Electricity and utility companies can have enormous Electricity and utility communities through their impact on surrounding of large land tracts acquisition and development as their use for power plants and pipelines as well community of water resources. Through effective engagement, we can manage our socio-environmental the impact responsibly and positively influence communities we serve. Community Engagement Community
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57 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Egrets and other interesting bird species are highlighted in “The Eastern Sparkle”, a new GHKG eco-heritage route. In New Zealand, the substation at 174 Victoria Street, In New Zealand, the substation at 174 rated at 50% Wellington is a 100-year-old building required IL4 (Important Level 4 is the seismic restraints from for critical venues). To prevent this heritage occur being damaged during earthquakes, which Electricity has quite often in New Zealand, Wellington by adding steel strengthened this building to 67% IL4 bracing in roof structure. group, HK Electric joined hands with a local green a new the Conservancy Association, to develop under the eco-heritage route “The Eastern Sparkle” “Green Hong Kong Green” programme. A series of mini videos were released allowing viewers to reminisce on the sights and sounds of the Eastern District on Hong Kong Island which used to be an entertainment hub decades ago. Interesting bird species, flora, and fauna are also introduced on the route. With this new route, HK Electric has completed its mission of developing eco-heritage trails within its supply territory with a choice of 11 trails for the public to appreciate the city’s diverse ecological and heritage resources. WWU takes community concerns on board to successfully preserve the historic medieval Bideford Long Bridge while carrying out WWU takes community concerns on board to mains replacement. WWU also needed to replace two aging large WWU also needed to replace two aging the underside diameter gas supply mains strapped to longest of the Bideford Long Bridge, one of the 200 metres. A medieval bridges in England spanning of like-for- feasibility study determined that the option in a high like replacement of the mains would result the medieval probability of damage being caused to and bridge. Alternative designs were commissioned, to establish a full community consultation completed was caused the most practicable option. No damage cast iron pipes to the bridge when removing the old impacts. and there were no negative environmental Positive customer feedback was received during and after this project. United Energy is implementing the Bayside Battery Project to install two pole-mounted batteries for the local community to share, where each battery is expected to support up to 150 homes and businesses with stored energy. A highly personalised approach was taken to liaise with community members regarding this installation and the project team was very supportive of stakeholder needs to ensure visual amenity concerns are considered in the placement of the batteries. A formal test of the noise and electromagnetic fields from the batteries was undertaken and the results were communicated to residents. This initiative contributed to the Bayside Council carbon emissions target and has been the forerunner to a broader scale of the project.
For our operating companies around the world, For our operating companies channels available through customers have various or request information. which to make a complaint the feedback received, in We constantly monitors the customer’s perception and order to understand issues and to implement the any ongoing critical actions. During the year, we appropriate corrective product and service related have received 6,928 complaints. Community consultation activities We take community concerns about our of the seriously. To better respond to the demands with communities we serve, we regularly engage gain an stakeholders to listen to their needs and approach insight into areas of concern. Our integrated specific ensures that we can identify and address the diversity issues and always take into consideration in which we of economic, social and cultural situations operate. engagement UKPN has an extensive and embedded methods. programme with a range of communications evolving needs This helps the business to adapt to the During 2019/20 of all its customers and stakeholders. stakeholder UKPN achieved its widest ever reach on engagement, reaching 4.75 million stakeholders achieved a across more than 500 engagements. UKPN the highest score of 8.3 in the 2019/2020 assessment, of any of the electricity distribution network operators (DNOs) in the UK. A Customer Experience team has been established by VPN as part of its Customer Group and a new Customer Strategy 2020-2025. A wide range of initiatives are detailed within the strategy which aims to ensure customer needs and interests are central to VPN’s business while also making it easier for customers to do business with CitiPower and Powercor and improve data availability. HK Electric continued to gather customer feedback HK Electric continued to gather customer surveys and systematically through regular satisfaction Customer “We Meet on Friday” sessions. Its average from 4.63 Satisfaction Index (5-point scale) increased high level in 2019 to 4.72 in 2020, reflecting a very the of customer satisfaction. HK Electric received “2020 Excellent Service Retailer of the Year” award, the highest recognition amongst all participating companies, and its Call Centre was the winner of the “Best-in-class” award under the “Commerce and Utilities” category, also winning the “Gold Award” for ten consecutive years in the Mystery Caller Assessment Contact Customer Kong the Hong by organised Award Association in 2020. WWU was re-accredited to the BS 18477 Inclusive WWU was re-accredited to the BS 18477 was Service Provision in December 2020 and Service for recognised by the Institute of Customer service mark customer satisfaction, maintaining its WWU accreditation. The score of 93/100 placed national as a leading company amongst the UK’s household brands. UKPN uses other methods to measure and improve UKPN uses other methods such as Rant and Rave surveys, customer satisfaction Trustpilot feedback. Their service Google reviews and Rant and Rave surveys has given recovery process via greater insight, making it clear the resolution team to see which areas and processes and easy for them UKPN took part in the to focus on for improvement. Satisfaction Index (UKCSI), which 2020 UK Customer satisfaction, and was once againbenchmarks customer of complaint placed in the top 10 companies in terms handling. Ofgem, the UK Regulator, measures industry, customer satisfaction scores across the satisfaction, with UKPN scoring best in class 92% 2010. continuing the improving trend since
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59 Sustainability Report 2020 Report Sustainability Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Encouraging employee volunteering Encouraging employee its employees to play a positive The Group encourages communities where they live and and active role in the staff members to join voluntary work and encourages in voluntary community programmes and participate work. to participate in community To encourage employees year for projects, EDL offers two paid days every funds for volunteer work, and provides matching approved charities and donation programmes. provides one Australian Gas Infrastructure Group also to participate in day’s leave per year for all employees the Community Partnership Programme. to volunteer UKPN’s employees have two paid days on a new in their communities which they can spend people who scheme to ‘Donate by Dialling’, ringing are isolated during lockdown. HK Electric has a large contingent of company senior volunteers who are very active in supporting Volunteers citizens and caring for the environment. leave per year are entitled to a maximum of two day’s for joining the company’s volunteer service. Regulatory Compliance During the reporting period, we were not aware of any incidents of non-compliance with laws and regulations that have a significant impact on the Group relating to employment and labour practices, occupational health and safety, health and safety, advertising, labelling and privacy matters relating to products and services provided and methods of redress, nor did we identify any incidents relating to the use of child or forced labour. Together with Power Assets, HK Electric donated Together with Power million to the Community a total of over HKD1.2 those affected by the Chest on a 1:1 to help pandemic. communities affected by Initiative to support COVID-19. and Donated GBP50,000 to local communities grass roots organisations to address short-term needs of vulnerable residents in northern England. and Committed GBP50,000 to help charities local organisations recover from the coronavirus pandemic. medical Helped charitable, environmental and organisations to support vulnerable customers. other Allocated GBP55,000 to charities and as a groups under its Safe and Warm fund response to the challenges of COVID-19.
HK Electric • • NGN • WWU • • •
Expanded its Community Partnership Programme Expanded its Community Partnership and increased funding nationally to AUD500,000 not-for- per annum to support community and we profit organisations in the regions where included operate. Long term flagship partnerships Donated AUD250,000 to support bushfire relief efforts, AUD10,000 for a local council dealing with the impacts of COVID-19, AUD17,844 towards the Cullerin Range Wind Farm Community Fund, and the remaining AUD107,683 towards charities supported by EDL employees. Foodbank (food relief), Angel Flight (transport to Foodbank (food relief), Angel Flight (transport medical appointments for regional communities), Clontarf Foundation (supporting young indigenous men) and Land care (environmental protection).
EDL • HK Electric has appointed external advisors to sit on its HK Electric has appointed Fund and Smart Power EducationSmart Power Building come from the engineering and Fund. The advisors well as community and green education sectors as views and advice on energy groups to offer expert and education work. efficiency promotion Community investment the economic and social The Group also supports it operates, growth of the local communities in which specified in accordance with the specific commitments in the Sustainability Policy. The Hong Kong Council Plus Caring of Social Service awarded the 15 Years of our Company Logo to the Group, in recognition employees commitment in caring for the community, and the environment over the past years. local Each of our businesses supported their towards fighting communities in the 2020, particularly the pandemic. AGIG • Taking into account community suggestions, VPN reworks plans and schedules to relocate underground cables in the Brunswick Network Upgrade project. VPN’s Brunswick project, which involved the offload of VPN’s Brunswick project, which involved to the capacity an aging Zone Substation and increase within 2.4 km of another, required significant works plan of suburban streets. The stakeholder engagement the communitytook into consideration research within electricity which identified concerns with previous infrastructure developments and electromagnetic and an fields, including serious delays in schedule that levels increased budget. The research showed and VPN of awareness and trust were both low the community undertook extensive engagement with the to mitigate the risk of opposition impacting project’s delivery. Working alongside the ongoing and extensive Working alongside with both stakeholders programme of engagement also has a Customer and customers, WWU (CEG) that provides a different Engagement Group company’s plans for future perspective on the services and social obligations, investment, customer etc. Comprised of nine environmental performance, different customers and members representing specialisms in different areas, the stakeholders, with its regulator. CEG is independent of both WWU and how WWU’sIts views help the regulator to understand of different business plans reflect and meet the needs stakeholders.
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61 Sustainability Report 2020 Report Sustainability 3 1.13 0.33 1.02 0.11 0.28 0.05 5,365 5,043 2020 247,167 8,004,671 6,771,988 1,232,683 2,540,043 2,540,043 27,072,650 24,532,607 10,970,402 13,304,630 Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction 248 1.36 0.42 1.26 0.10 0.37 0.05 4,720 2019 239,094 2,479,437 9,681,775 2,479,437 1,203,271 10,885,046 35,290,198 32,810,761 11,489,233 21,077,466 e e / 2 2 kWh / Unit ‘000 kWh tonne CO HK$ revenue tonne CO HK$’000 revenue 4 1 2 3 5 Gasoline / Petrol Liquified petroleum gases (LPG) Natural gas Diesel Electricity Other fuels Direct energy intensity Indirect energy intensity Scope 1 emission Scope 2 emission Scope 1 carbon intensity Scope 2 carbon intensity Use of energy Total energy consumption Direct energy consumption Environmental KPIs Environmental GHG emissions Total GHG emissions Total energy intensity Indirect energy consumption Total carbon intensity data in this report for 2020 that were confirmed Environmental KPIs in this data table are calculated using the equity method. We only include will be updated in the following year’s by the end of March 2021. If significant data changes occur after preparation of this report, they publication. perfluorocarbons, sulphur Greenhouse gas emissions (GHG) comprise carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, under regulation. Otherwise, Scope 1 hexafluoride. The data are calculated using local / industry-specific methodology where applicable Gas Protocol, IEA’s Energy Statistics Manual, US emissions are calculated using the latest available emission factors in line with the Greenhouse on Greenhouse Gas Emissions and Removals EPA’s Emission Factors for Greenhouse Gas Inventories and Guidelines to Account for and Report with electricity purchased and are calculated for Buildings in Hong Kong (2010 Edition). Scope 2 emissions include the emissions associated based on the IEA’s latest available emission factors. use. It also includes the emissions from energy Scope 2 emissions includes the emissions from purchased electricity of our businesses for its own our electricity distribution companies, including losses from distribution grid and the electricity system transmission grid (“network losses”) for the difference between the electricity entering UKPN, SAPN, VPN, Wellington Electricity and United Energy. Network losses are calculated as the industry taken from meter readings. Due to the network, and electricity which is used by customers, for which the data are received from readings) in the calculation of network losses in COVID-19, there was a greater level of estimation by the industry (due to lack of actual meter figures the that expected is It emissions. 2 Scope and electricity purchased losses, network assumed the in increase slight a to led this and 2020, will be fine-tuned when the meter reading are updated. the term used previously. The term is revised to better clarify the fuel used. “Gas (exclude town gas and natural gas)” was gas, etc.). Other fuels include Lignite, residual fuel oil, industrial waste and biomass (e.g. landfill gas, sludge 1 2 3 4 5 Environmental Performance Indicators Performance Environmental
ateriality – We focus on matters that impact – We focus on matters that ateriality uantitative – Information of the standards, uantitative onsistency – Consistent methodologies are adopted onsistency C M Q in an Balance – This report discloses information with objective manner, aiming to provide stakeholders sustainability an unbiased picture of the Group’s overall business growth and are of importance to our business growth and refer to stakeholders. For more information, please page 18. the “Materiality Assessment Process” on unless when calculating the quantitative KPIs, provided for otherwise specified. Reasons would be the Report. any restating of information published in methodologies, assumptions and/or calculation methodologies, assumptions and/or calculation factors used references, and source of key conversion on these KPIs are stated wherever appropriate. performance.
• Language the In case of inconsistency or discrepancy between Chinese and English versions of the Report, the English version shall prevail. Feedback The Group welcomes feedback on this Report, its approach to sustainability and performance. Please share your views and email us at [email protected]. Reporting principles follows the ESG Guide The content of this report reporting principles. • • • This Report should be read in conjunction with the Group’s 2020 Annual Report, which contains a comprehensive review of its financial performance and corporate governance, and also key policies which are published on the Group’s website. To learn more about its operating companies’ efforts and achievements in sustainability, please refer to their separate sustainability reports or websites. Reporting framework the This Report is prepared in accordance with and December 2019 updated Hong Kong Exchanges Clearing Limited’s (HKEX) Environmental, Social and Governance Reporting Guide (ESG Guide). The HKEX ESG Guide Content Index set out on pages 63 to 68 contains information about the extent to which the Group has applied the ESG Guide and cross-references to the relevant section in this Report. In 2020, Portugal Renewable Energy was sold by the In 2020, Portugal Renewable Energy was scope of the Group and is no longer included in the sustainability report. Reporting boundary Report The information disclosed in this Sustainability including covers the key businesses of the Group, power, the the generation of thermal and renewable well as the transmission of electricity, oil and gas, as Kong, the distribution of electricity and gas in Hong Mainland United Kingdom, Australia, New Zealand, and the UnitedChina, Thailand, the Netherlands, Canada States. Reporting period to present its first annual standaloneThe Group is pleased covering its sustainability strategies, Sustainability Report, progress, and highlights from management approach, December 2020, unless otherwise 1 January 2020 to 31 specified. About this Report About this
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63 Sustainability Report 2020 Report Sustainability Remarks Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction 60 Page 14-19 18-19 61-62 61-62
of how they relate to the issuer’s businesses. a disclosure of the board’s oversight of ESG a disclosure of the board’s issues; the board’s ESG management approach and strategy, including the process used to evaluate, issues prioritise and manage material ESG-related and (including risks to the issuer’s businesses); how the board reviews progress made against ESG-related goals and targets with an explanation the the process to identify and the criteria for selection of material ESG factors; a if a stakeholder engagement is conducted, description of significant stakeholders identified, and the process and results of the issuer’s stakeholder engagement.
(i) elements: (i) Information on the standards, methodologies, Information on the standards, methodologies, and source assumptions and/or calculation tools used, of conversion factors used, for the reporting of emissions/energy consumption (where applicable) (ii) (iii) (ii) The issuer should disclose in the ESG report any changes to the methods or KPIs used, or any other relevant factors affecting a meaningful comparison. ESG report and describing the process used to identify which entities or operations are included in the ESG report.
Reporting Principles – Materiality Governance Structure statement from the board containing the following A – Quantitative Mandatory Disclosure Requirements Mandatory Disclosure Reporting Principles Reporting Principles – Consistency Reporting Boundary A narrative explaining the reporting boundaries of the HKEX ESG Guide Content Index HKEX ESG 8 7 656 136 3.39 3.39 0.16 4,789 3,775 11,536 2020 286,665 6 140 8.12 8.12 0.21 1,217 5,916 5,530 8,460 2019 545,445 3 / 3 m tonne tonne tonne Unit ‘000 m HK$’000 revenue Paper Total non-hazardous waste produced Packaging material Total packaging material used for finished products Air emissions NOx emissions Environmental KPIs Environmental SOx emissions RSP emissions Use of water Water consumption Waste production Total hazardous waste produced Water consumption intensity The total amount of non-hazardous waste decreased by 47% compared with 2019. This is mainly due to the significant drop in the The total amount of non-hazardous waste decreased by 47% compared with 2019. This is mainly of HK Electric’s fuel mix, that led to a consumption of coal and limestone in 2020 as a result of the increase in gas generation to 50% generating units and associated Flue Gas substantial reduction in the respective by-products, namely ash and gypsum produced from coal-fired Desulphurisation plants. The 2019 data figures have been restated in line with re-categorisation of the hazardous waste across different operating companies. Moving The 2019 data figures have been restated in line to evolve as data sources improve. forward, we expect that these numbers will continue is the source of more than 93% of the overall Hazardous waste generation from AVR, the Netherlands’ leading energy-from-waste company year-on-year largely due to increase in the hazardous waste generation. The Group’s hazardous waste generation was increased by 36% Group’s ownership of Dutch Enviro Energy Holdings B.V. (which owns AVR). 8 6 7
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65 Sustainability Report 2020 Report Sustainability Remarks Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Supplier Code of Conduct Environmental Policy Code of Conduct Health and Safety Policy Environmental Policy
• • • • 0 work-related fatality during the year; 1 for 2019; 0 for 2018 • 1,556 lost days due to work injury – – 42 42 32 44 Page 33-37 24-29 24-25 46-49 45, 59 40-41, limate-related issues which have impacted, and those those and impacted, have which issues limate-related Description of the significant impacts of activities on Description of the significant impacts of activities the action the environment and natural resources and taken to manage them issues Description of the significant climate-related impact, which have impacted, and those which may them the issuer, and the actions taken to manage Total workforce by gender, employment type, age group and geographical region Number and rate of work-related fatalities occurred in each of the past three years including the reporting year Employee turnover rate by gender, age group and geographical region with relevant laws and regulations that have a significant impact on the issuer relating to providing a safe working environment and protecting employees from occupational hazards on the environment and natural resources on the environment and which may impact, the issuer Lost days due to work injury c with relevant laws and regulations that have to a significant impact on the issuer relating and compensation and dismissal, recruitment promotion, working hours, rest periods, equal opportunity, diversity, anti-discrimination, and other benefits and welfare Description of occupational health and safety measures adopted, how they are implemented and monitored KPI A3.1 KPI A4.1 KPI B1.1 KPI B2.1 KPI B1.2 Aspect B2: Health and Safety General Disclosure Information on: (a) the policies; and (b) compliance Subject Areas, Aspects, General Disclosures and KPIs Subject Areas, Aspects, Aspect A3: The Environment and Natural Resources Aspect A3: The Environment General Disclosure impact Policies on minimising the issuer’s significant KPI B2.2 Aspect A4: Climate Change General Disclosure and mitigation of significant Policies on identification B. Social Employment and Labour Practices Aspect B1: Employment General Disclosure the policies; and (b) compliance Information on: (a) KPI B2.3 Remarks Sustainability Policy Environmental Policy Supplier Code of Conduct Environmental Policy Supplier Code of Conduct
• • • • • 62 62 62 29 29 34 28, 28, Page 61-62 61-62 35-37 22-37 22-37 29, 61 35, 62
tonnes) and, if applicable, with reference to per unit produced Direct and/or indirect energy consumption by type in total and intensity The types of emissions and respective emission data The types of emissions and respective emission 2) Direct (Scope 1) and energy indirect (Scope where greenhouse gas emissions (in tonnes) and, appropriate, intensity and, Total hazardous waste produced (in tonnes) where appropriate, intensity Total non-hazardous waste produced (in tonnes) and, Total non-hazardous waste produced (in tonnes) where appropriate, intensity Description of emission target(s) set and steps taken Description of emission target(s) set and steps to achieve them Description of how hazardous and non-hazardous Description of how hazardous and non-hazardous wastes are handled, and a description of reduction target(s) set and steps taken to achieve them Water consumption in total and intensity Description of energy use efficiency target(s) set and steps taken to achieve them Description of whether there is any issue in sourcing water that is fit for purpose, water efficiency target(s) set and steps taken to achieve them Total packaging material used for finished products (in with relevant laws and regulations that have a with relevant laws and air and significant impact on the issuer relating to water and greenhouse gas emissions, discharges into land, and generation of hazardous and non-hazardous waste energy, water and other raw materials KPI A2.1 KPI A1.1 KPI A1.2 KPI A1.3 KPI A1.4 KPI A1.5 KPI A1.6 KPI A2.2 KPI A2.3 KPI A2.4 KPI A2.5 Subject Areas, Aspects, General Disclosures and KPIs Subject Areas, Aspects, A. Environmental Aspect A1: Emissions General Disclosure Information on: (a) the policies; and (b) compliance Aspect A2: Use of Resource General Disclosure Policies on the efficient use of resources, including
Power Assets Holdings Limited 64
67 Sustainability Report 2020 Report Sustainability and Remarks Sustainability at Power Assets at Power Sustainability Environment Social Appendices Introduction Anti-Bribery Policy Personal Data Privacy Personal Data Privacy Policy Information Security Policy Personal Data Privacy Policy Code of Conduct Anti-Fraud Code of Conduct
No recorded cases of non-compliance with laws and regulations relating to anti-corruption and bribery during the reporting period. • • • This indicator is not considered material to the Group hence such data are not disclosed. • • • Our Code of Conduct outlines our commitment to intellectual property rights protection. 20 59 56 47 Page 50-51 47, 50, Percentage of total products sold or shipped subject Percentage of total products sold or shipped to recalls for safety and health reasons with relevant laws and regulations that have a significant impact on the issuer relating to bribery, extortion, fraud and money laundering regulations on health and safety, advertising, labelling regulations on health to products and services and privacy matters relating provided and methods of redress Number of products and service related complaints Number of products and service related complaints received and how they are dealt with Description of practices relating to observing and Description of practices relating to observing protecting intellectual property rights Description of quality assurance process and recall Description of quality assurance process and procedures Description of consumer data protection and privacy Description of consumer data protection and policies, how they are implemented and monitored KPI B6.1 Aspect B7: Anti-corruption General Disclosure Information on: (a) the policies; and (b) compliance Subject Areas, Aspects, General Disclosures and KPIs Subject Areas, Aspects, Aspect B6: Product Responsibility Aspect B6: Product General Disclosure laws and Policies and compliance with relevant KPI B6.2 KPI B6.3 KPI B6.4 KPI B6.5 Remarks Supplier Code of Conduct Human Rights Policy Modern Slavery and Human Trafficking Statement Supplier Code of Conduct Human Rights Policy Modern Slavery and Human Trafficking Statement
• • • • • • – – – 52 53 43 43 43 Page 52-53 52-53 52-53
the supply chain Description of steps taken to eliminate such practices Description of steps taken to eliminate such when discovered Description of measures to review employment Description of measures to review employment practices to avoid child and forced labour Number of suppliers by geographical region Description of practices relating to engaging suppliers, number of suppliers where the practices are being implemented, how they are implemented and monitored Policies on improving employees' knowledge and skillsPolicies on improving at work. Description of training for discharging duties activities The percentage of employees trained by gender and The percentage of employees trained by gender employee category The average training hours completed per employee The average training hours completed per by gender and employee category with relevant laws and regulations that have a with relevant laws and regulations that have preventing significant impact on the issuer relating to child and forced labour and social risks along the supply chain, and how they are implemented and monitored Description of practices used to identify environmental Description of practices used to promote environmentally preferable products and services when selecting suppliers, and how they are implemented and monitored Operating Practices Aspect B5: Supply Chain Management General Disclosurerisks of Policies on managing environmental and social KPI B4.2 KPI B4.1 KPI B5.1 KPI B5.2 Subject Areas, Aspects, General Disclosures and KPIs Subject Areas, Aspects, Aspect B3: Development and Training Aspect B3: Development General Disclosure KPI B3.1 KPI B3.2 Aspect B4: Labour Standards General Disclosure on: (a) the policies; and (b) compliance Information KPI B5.3 KPI B5.4
Power Assets Holdings Limited 66 Remarks Sustainability Policy Procedures for Reporting Possible Improprieties in Matters of Financial Reporting or Internal Control
• • No such cases recorded No such cases recorded during the reporting period. – 20 54 21 11, Page 54-59 54-59 Focus areas of contribution Description of anti-corruption training provided to Description of anti-corruption training provided directors and staff needs of the communities where the issuer operates needs of the communities where the issuer the and to ensure its activities take into consideration communities’ interests Number of concluded legal cases regarding corrupt Number of concluded the issuer or its employees practices brought against period and the outcomes of the during the reporting cases Resources contributed to the focus area Description of preventive measures and whistleblowing procedures, how they are implemented and monitored KPI B8.1 KPI B7.3 Community Aspect B8: Community Investment General Disclosure engagement to understand the Policies on community Subject Areas, Aspects, General Disclosures and KPIs Subject Areas, Aspects, KPI B7.1 KPI B8.2 KPI B7.2
Power Assets Holdings Limited 68 Power Ass et s
(Stock Code : 6) Holdi ng s Li mited
C om m En g u a n g it e y Accelerating m e n towards t a Sustainable Future y g r Healt e h an n d E S
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2020 Sustainability Report