Investors engaging with CLP Group on climate change through the Asian Utilities Engagement Program have welcomed the company’s commitments to achieving net zero emissions by 2050 and phasing out its coal power fleet by 2040.
The Asian Utilities Engagement Program was launched in June by 13 institutional investors and stewardship service providers, supported by coordination from the Asia Investor Group on Climate Change (AIGCC).
CLP Group is one of five companies that investors are engaging with directly on climate change risks and opportunities through the program.
Investors have adopted a common agenda to guide this engagement, which seeks from companies, among other things: clear decarbonisation strategies with short-, medium-, and long-term action plans, including a timetable to phase out coal-based emissions in line with 1.5°C temperature scenarios; enhanced disclosure on climate risks; and a strong governance framework for the management of climate risks.
The engagement with CLP Group is led by BNP Paribas Asset Management and Manulife Investment Management as lead investors, and is backed by a number of supporting investors.
Head of ESG, Asia at Manulife Investment Management, Eric Nietsch, said: “We thank CLP Group for its constructive engagement with investors and welcome the commitment to reach net zero emissions by 2050 and phase out of the coal fleet by 2040.
“These steps are a clear demonstration of the commitment from the company’s senior leadership to being an active and positive contributor to the transition to net zero emissions in a manner that will continue to create long-term value for stakeholders.”
Head of Stewardship, Asia Pacific at BNP Paribas Asset Management, Paul Milon, said: “The commitment by CLP to phase out its coal fleet by 2040 and target net zero emissions by 2050 is a critical market signal for Asia as the region progresses in its energy transition towards a low carbon economy.
“Through the AIGCC Asian Utilities Engagement Program, we look forward to continuing to constructively engage with CLP as it implements these commitments and further enhances its robust climate approach towards a 1.5°C pathway.”
AIGCC Chief Executive Officer, Rebecca Mikula-Wright, said: “Asian electric utilities are crucial to meeting the goals of the Paris Agreement as the sector is responsible almost a quarter of the world’s total carbon emissions.
“CLP Group has taken strong steps that should serve as a good example for similar Asian companies to address their climate risk, transition to net zero emissions and remain competitive in international capital markets.”