Calculating Reporting Greenhouse Gas Emissions 1 CLPs Greenhouse

Calculating & Reporting Greenhouse Gas Emissions 1

CLP’s Greenhouse Gas Inventory § Approach References Sustainability Report (Online Version) § The Greenhouse Gas Protocol (WRI & WBCSD) § decentralised approach § operational control § 2006 IPCC Guidelines for national Greenhouse Gas Inventories (IPCC) § Scope § Started with Scope 1 on generation only § Now expanded to include Scope 2 as well for gas storage, t&d, and retail business § Greenhouse gases § Started with just CO 2 § Now expanded to include CH 4, N 2 O and SF 6 § Incorporate HFCs and PFCs next year § Independent Verification § Statements by facility/plant Start with material gases and business types and then expand to the less material ones over time. Takes time to create a robust system… 2

Some References for Carbon Disclosure § Government standards requirements (local and/or national) § Voluntary schemes (sector, national, international, etc. ) § The Greenhouse Gas Protocol: A Corporate Accounting & Reporting Standard (WRI & WBCSD) § Carbon Disclosure Project (CDP) Extensive survey § 1 -28 sections @ with 1 -15 questions, numeric & text § Global Reporting Initiative (GRI) Recommended indicators § EN 16 Total direct and indirect greenhouse gas emissions by weight. (Core) § EN 17 Other relevant indirect greenhouse gas emissions by weight. (Core) § EN 18 Initiatives to reduce greenhouse gas emissions and reductions achieved. (Additional) Choice of carbon disclosure should add value to your operations 3

Why Do We Report? Reporting Drive Performance Engage Stakeholders Reporting can drive both performance and stakeholder engagement and thus contribute to managing business-related risks, e. g. regulatory compliance and reputational risks 4

Why Do We Report? § If you don’t report your emissions, sometimes someone else will guess your emissions… § e. g. CARMA Made massive errors in reporting CO 2 emissions from Castle Peak (and other CLP facilities) “ So far, out of the 50, 000 plants listed only one meaningful discrepancy has been identified: China Light and Power (CLP)… informed us that its massive Castle Peak power plant. . . emitted significantly less CO 2 than the CARMA estimate. . . CLP presented audited records to support this assertion and the CARMA team quickly made adjustments. ” Unfortunately, retractions are rare and damage already done. . 5

CLP’s Reporting External Surveys § CLP provides environmental performance metrics to a number of international surveys: § Carbon Disclosure Project (CDP) § Dow Jones Sustainability Index (DJSI) § FTSE 4 Good § Reputex § Trucost § Hang Seng Sustainability Index § Etc. 6 Since March 2009, listed on DJSI Asia Pacific and the only HK company on DJSI Asia Pacific 40

CLP’s Reporting Sustainability Report – In Essence (Print Version) From high level graphics and explanations of trends to… 7

CLP’s Reporting Sustainability Report (Online Version) From high level graphics and explanations of trends to… 8

CLP’s Reporting …detailed data tables, as well as responses to… 9

CLP’s Reporting CLP Resources § CLP Group public website (www. clpgroup. com) § Related publications § § 10 CLP Group Annual Report CLP Group Sustainability Report - In Essence CLP Climate Vision 2050 Beyond Copenhagen

CLP’s Reporting Online Sustainability Report § CLP Group public website (www. clpgroup. com) § Online Sustainability Report 11

None of us can defeat the threat of global warming on our own – but together we can cool the climate and realise our Climate Vision 2050. 12