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RESPONSIBLE
INVESTORS
POWERING ASIA
JAN 2010
CONTENTS
POWERING ASIA
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Responsible Research is an independent provider of sectoral and thematic Asian environment, social
and governance (ESG) research, targeted at global institutional investors. Many of these fund managers
and asset owners now find that traditional investment banking reports, financial models and public
information sources can no longer be relied on to cover all risks to earnings and deliver superior
returns. Companies who do not monitor and report on this non-financial performance not only risk
financial penalties for non-compliance with stricter regulatory environments but are also denied access
to substantial pools of global capital which are managed according to sustainable principles.
Our approach is based on analysis of material ESG factors, which change according to sector and
market. We provide our clients with local market knowledge of important regulatory landscapes in
Asia, along with a fresh perspective on local operational and sectoral issues. We offer an annual
subscription model for our monthly sectoral or thematic reports and give our clients access to the
underlying data. Reports can also be commissioned (by investors or foundations) and kept for internal
use or be offered for general distribution, as part of an general effort to promote ESG integration into
the Asian investment process. Our analysts conduct seminars and webinars to discuss findings, often
with contributions from experts, companies and policy-makers.
Responsible Research was founded in 2008 by our Board who have been instrumental in promoting
Corporate Social Responsibility (CSR) and SRI practices in Asia for over 10 years and have significant
experience in the regions emerging investment markets. This team of five works in collaboration with
our full time Asian-based responsible investment analysts and the Responsible Research Alliance, a
group of consultants with subject matter expertise. Together they provide a valuable balance of market
and ESG knowledge, academic rigour, process management, data management, customer relationship
management and senior level contacts.
INTRODUCTION
COMPANY SCORING
15
21
DISCUSSION
25
COUNTRY SUMMARIES
47
CONCLUSION
50
Many of our clients are signatories to the UN backed Principles of Responsible Investment (PRI), an
investor initiative. As signatories they commit to incorporate ESG issues into their investment analysis
and to support the development of ESG tools, metrics and methodologies. As a signatory to the PRI
we voluntarily contribute time and resources to the Emerging Markets Disclosure Project and other
collaborative initiatives. Responsible Research is also a strong supporter of independence in research,
without which conflict and bias can deliver investment risk. The company is one of the founding
members of the Asian Association of Independent Research Providers and also of the Asian Water
Project.
112
ISSUES FOR
RESPONSIBLE
INVESTORS
INTRODUCTION
Introduction
The development of Asias electricity generation industry will shape the future of
our climate. Global consumption of marketed energy is projected to increase by
44 percent from 2006 to 2030. The largest projected increase in demand is for
the emerging non-OECD economies on average 2.3 percent per year, compared
to 0.6 percent for OECD energy use. China and India are the fastest growing
non-OECD countries and are expected to make up 28 percent of world energy
consumption by 2030. In a business-as-usual scenario greenhouse gas (GHG)
emissions are expected to rise similar to the growth in energy use. Due to the
long life span of power plants, the technology choices on the fuel mix of Asias
growing electricity sector made in the next few years will effectively lock in
greenhouse gas emissions for the next 30 to 40 years.
Against this background, we report on the importance of non-renewable electricity
generation in fuelling Asias continued economic growth, but also note cases
where the development of a countrys renewable energy sources are encouraged
by a desire for energy security. We also look at how the provision of power can
be used as a political tool in certain countries
The World Business Council on Sustainable Development defines several specific
current sustainable development challenges for the electricity generation
sector that include diversifying and de-carbonizing the fuel mix and accelerating
research and development. They have also highlighted the need to focus on enduser efficiencies that can have impacts as great as changing productive capacity
and are less capital intensive.1 As transmission and distribution losses as well
as inefficient use of electricity is such big issue in many developing markets
there is also potentially great economic and environmental returns from simply
reinforcing and smartening the grid infrastructure.
Our research, complemented by Trucost data on emissions, has identified
some clear leaders in the areas of environmental performance, management
and in terms of CSR reporting and corporate governance. We have found large
companies that are excellent reporters but have a high-impact business model.
There are also examples of smaller companies with a large share of renewable
energy generation. Some of these are theoretically investable to those looking
to lower a portfolios carbon footprint, but have poor reporting or governance.
The companies under examination have varied business models; some are fully
integrated monopolistic national power companies, others are small Independent
power producers. They may focus just on transmission, distribution and/or
generation. Some rely solely on imported fossil fuels, while others have large
domestic reserves of clean burning natural gas.
Of the companies in our universe, the biggest CO2 emissions producers were
Kepco (Korea), Huaneng Power (China) and NTPC Ltd (India). These global
warmers are estimated to each produce a staggering 180 mtCO2 or more
annually. In terms of the intensity of emissions (measured against revenues),
China Resources was found to have the worst record at an estimated 28,845
tCO2/US$m revenue. Compared to HK Electric, which still burns 68% fossil fuel,
yet has an intensity of only 6,091 tCO2/US$m revenue, it is clear that there are
some fossil fuel burners who are more efficient than others. In China most of
the IPPs rely to a large extent on fossil fuels including Huadian Power and China
Resources Power.
The power generation companies with the largest contribution to earnings
from renewable energy include Aboitiz Power Corp and Energy Development
Corporation (Philippines). Tenaga Nasional (Malaysia) and Tata Power (India)
are also found to have relatively low emissions intensity despite having lower
contributions from renewables.
The clear leaders in terms of CSR reporting and management were found both
in developed markets with strong regulatory control (CLP Holdings (HK) and HK
Electric (HK)) and, unexpectedly, in emerging markets; (Tata (India), Datang
(China), Electricity Generating Corporation (Thailand)).
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 6
Responsible investors in Asia will need to remain aware of the complexity and
inter-linkages in the issues of power generation for sustainable development. If
we are to secure balanced global growth, eradicate poverty and minimize the
devastating impacts of climatic change there are bound to be trade offs and
disappointments. Investors should also be aware of the complicated long-term
ecosystem impacts of renewable energies. Hydroelectric plants, for example, have
been associated with extremely high methane emissions when the reservoirs are
at a low level, and we do not yet know the long-term social and economic costs
of resettlement from fertile river valleys and diversion of source rivers. Biomass
generation can have long reaching negative environmental impacts in terms of
reduction in overall biodiversity when primary forest is converted to intensively
farmed monoculture plantation.
There is also the inevitable question of who will end up paying the price for
our stewardship of radioactive uranium and plutonium. The World Nuclear
Organization itself admits that that there are no final disposal facilities (as
opposed to interim storage facilities) in operation in which used fuel can be
placed. Their website states that, There is currently no pressing technical need
to establish such facilities, as the total volume of such wastes is relatively small...
The general consensus favours its placement into deep geological repositories,
initially recoverable.2
We look to global responsible investors who participate in the Asian power
markets to add these issues to their decision-making criteria and collaborate and
engage with these companies to develop more sustainable growth horizons and
better disclosure. This process should enable long term capital flows to support
investment in cleaner generation and more efficient distribution with an aim of
reducing the carbon intensity of the sector over time.
COMPANY SCORING
Scoring categories:
We reviewed companies for sustainability according to their disclosure and
performance in these six main areas:
1.
2.
3.
4.
5.
6.
Scoring:
0:
no relevant information on climate change
1:
the company acknowledges that climate change is an issue, provides
some data on greenhouse gas emissions and undertakes some efforts
to increase efficiency / reduce emissions
2:
the company provides comprehensive data on greenhouse gas
emissions. It has set clear targets for improvements of efficiency or
reduction of emissions and achieved improvements.
Environmental management:
Considering the impact that power utility companies have on the environment,
Asian utilities should be prepared to measure and manage their environmental
risks. Environmental impacts differ between fuel types, for example the generation
of nuclear waste for nuclear power generators, biodiversity impacts in the case
of hydropower and air pollution from coal fired power plants.
Relevant questions include:
Does the company disclose local air pollutants, i.e. SOx, NOx and
particulates (absolute and per MWh)?
Does the company have an environmental management strategy or
guidelines in place?
Do companies perform comprehensive environmental impact assessments
before constructing new plants?
Does the company invest in emissions reduction technology? Does it
achieve emission reductions?
Does the company disclose water use? Are reductions in water consumption
achieved?
For nuclear power operators: How is nuclear waste handled? Are there
provisions for the decommissioning of used plants? How high are these
provisions?
Scoring:
0:
no indication of environmental management that goes beyond legal
compliance, no relevant information on climate change. No management
team in place.
1:
Environmental management system in place but few details given about
its scope. The company provides some data on environmental impacts
2:
A well-defined environmental management team is in place. The company
has environmental goals and targets but important data is missing,
for instance, information on water use or emissions. Some proactive
environmental initiatives, for example some emissions reductions
achieved.
Not yet applicable for Asia: A comprehensive and certified environmental
management system. The company is aware of its environmental impact and
addresses them in a structured way across the whole company..
Climate Change Management:
Greenhouse gas emissions represent the power utility sectors biggest influence
on the environment. Due to the potential for upcoming CO2 regulation in Asia,
GHG emissions have the potential of becoming a financial risk for companies.
Relevant questions include:
Companies that take care of their employees tend to have higher staff
retention, higher productivity and higher employee motivation. Hence, there
is a sound economic rationale behind investing in a strong Health & Safety
program.
Relevant questions:
Do employees undergo Health & Safety training?
Does the company have a Health & Safety management system in place?
Does the company report on work related accidents, injuries and fatalities?
Does the company report on human rights issues?
Does the company comply with international Health & Safety standards?
Scoring:
0:
No mention of Health & Safety management at all.
1:
A Health & Safety management system is in place. The company
invests in training, but doesnt report on work related accidents or
fatalities, or human rights. The companys Health & Safety program
doesnt comply with international Health & Safety standards.
2:
The company has a Health & Safety team in place, provides training
to employees, reports on work related accidents and has received an
internationally recognized certification.
Corporate Governance:
We analyzed and scored the following corporate governance measures:
separation of Chairman and CEO, independency of board, independence of
Audit Committee, independence of Remuneration Committee, independence
of Nomination Committee and disclosure of remuneration.
Scoring:
0:
no separation of chairman / CEO
2:
Separation chairman / CEO:
Independency of board
0:
Between 0%-32% of the board is independent
1:
Between 33%-65% of the board is independent
2:
Between 66%-100% of the board is independent
Independence of Audit Committee
0:
Between 0%-32% of the Audit Committee is independent
1:
Between 33%-65% of the Audit Committee is independent
2:
Between 66%-100% the Audit Committee is independent
ISSUES FOR
RESPONSIBLE
INVESTORS
RESULTS OF
COMPANY SCORING
The company scoring gives us insight into several different aspects of the
companies environmental impact and ESG performance.
Greenhouse gas impact
In the table below we present the GHG emissions of each company. There are wide
differences between the generation mixes and GHG intensities of the companies
we looked at. Only a few companies have a very high share of renewables in their
generation portfolio. These are Energy Development Corporation and Aboitiz
Power Corporation from the Philippines as well as the Indian company Tata
Power. The significant presence of renewable assets in the generation portfolios
of Philippine companies can be explained by the abundance of geothermal and
hydro electrical power generation sites in the Philippines.
The Chinese companies have a high share of coal in their generation portfolio.
We expect that the two companies that do not provide capacity splits, Datang
International and Huaneng Power, have a share of coal based generation in their
portfolios that is similar to their Chinese peers. Consequently these companies
have high carbon intensities. Neyveli Lignite Corporation also has very high
carbon intensity as its generation is based entirely on lignite coal. The three
utility companies with the highest absolute CO2 emissions are Korea Electric
Power Corporation, NTPC Limited and Huaneng Power International.
There are, quite logically, large differences in the carbon intensity of pure
generation companies and companies that are also or exclusively involved in
transmission and distribution. These two groups are not comparable in terms of
carbon intensity. Carbon intensity is influenced by each companys total business,
including business other than power generation. For example, Neyveli Lignite
has large mining operations, which are more carbon intensive than the property
development, gaming and leisure business that Tanjong Public does on the side.
The companies with the highest renewable contributions and lowest carbon intensity are marked in
green; the least favourable ones are marked in orange.
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 16
Companies with scores of 60% and above, a total of six, could be considered
sustainability leaders in the Asian utilities sector. CLP Holdings Limited and
Electricity Generating Public Company both received over 80% for their
environmental and social performance and thereby outperformed all other
companies in our universe. Other leaders include Hong Kong Electric Holdings
Limited, Datang International, Reliance Infrastructure and Tata Power. There
seems to be a strong correlation between the size of Asian utilities and
environmental and social performance. Six of the top ten companies by market
capitalisation are recognized as leaders here.
Many laggards in the environmental and social rating, such as Neyveli, Huadian,
Huaneng and China Resources, have high carbon intensity, defined as tonnes of
CO2 emitted per one million US Dollars of revenue.
National average environment and social scores ranged from 16.3% to 82%.
Chinese utilities had the lowest average score and Hong Kong the highest.
Malaysia (25.6%) and India (25.8%) were the poorest performers after China
but Thailand had a national average score of 54.3%,
Despite the low average rating of Chinese utilities, there are some notable
examples of companies improving their disclosure and performance. Datang, for
example, published quite an extensive sustainability report in 2008, in which the
company provided detailed data on emissions of SO2 and NOx and water and
waste treatment.
Efficiency metrics:
We also reviewed declared operational efficiency metrics, which give an indication
of how well a company runs its business given its line of business.
The new mandatory reporting on coal consumption per MWh of electricity
produced for Chinese utilities has led to much improved disclosure there (see
table below), although significant differences among companies is still seen.
China Resources Power and China Power International have lower efficiencies
than Huaneng, Huadian and Datang. In general, the newer and larger a coal-fired
power plant is, the more efficient it is. China Power International, for example,
has a large proportion of old plants.
HKG
HKG
CHN
CHN
CHN
HKG
334.4
340.5
326.8
326.2
325.9
-
For distribution and transmission companies, system losses are the most relevant
metric, not only from an environmental point of view, but also from a profit
perspective: decreasing system losses directly affects a companys margin and
profits. We were unable to find information on system losses for four out of the 12
transmission and distribution (T&D) companies. Some of the companies reporting
on this metric have very low losses. Most notably Korea Electric Power, followed,
surprisingly by Torrent Power, which scores 0 points in our Environmental and
Social scoring. Some of the T&D systems in India and Malaysia show very high
systems losses: NTPC, Reliance Power, and Tenaga Nasional.
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 18
Corporate Governance
The table below gives an overview of the six Corporate Governance metrics that
we looked at. The average corporate governance scoring was 7.2. The best
three utilities in terms of corporate governance are China Resources Power, CLP
Holdings and Reliance Infrastructure which all scored an 11. The worst corporate
governance performers, according to our metrics, are Kepco and Power Grid
Corporation of India which both scored a three out of 12. Compared to its peers
in Asia Kepcos Corporate Governance reporting is lacking in transparency
and minority shareholders rights may not be represented with this structure;
information on its board, remuneration committee and nomination committee
is lacking. It is the only company in our universe that doesnt report on these
issues.
Many power projects are highly controversial in their planning and construction
phases and some continue to be controversial later on when they are perceived
to contribute to local environmental pollution. Larger utilities, especially, are
therefore regularly mentioned in relation to controversies on land rights and
resettlement, and receive complaints because of local pollution. The construction
of hydro dams tends to be particularly difficult, as dams require large areas of
land and mostly need to resettle local communities.
On top of this environmental and social controversy, some companies are
involved in activities that may constitute grounds for exclusion from a screened
investment portfolio. Some examples include Tanjong Public Ltd, which has a
gaming business as well as Power Grid Corporation of India and Kepco, which
have been implicated in activities in Burma, a country governed by a military
regime. Lastly we note that Tata Power manufactures tanks for the Indian military.
Case Study: CLP, a leader in CSR Management and Reporting
CLP has emerged as a clear leader in the sector in Asia. The company
recognised early on that the reality of climate change was going to bring risks
and opportunities to their business model and that they needed to respond
decisively and strategically. They participated in the first round of the Carbon
Disclosure project in 2002 and set internal renewable energy targets of 5% of
generated power in 2004. It reached this figure in 2007 and finalised its longterm CLP Group Climate strategy in the same year. By this time they already
had in operation a both a nuclear plant (since 1994) and an advanced coal plant
(2006) and were researching alternative energy sources for future investment.
CLP has continued to participate in global coalitions and reporting initiatives
such as the World Business Council on Sustainable Development and the
Greenhouse Gas Protocol. They use the GRI reporting guidelines and
have selected the EN16-18 criteria to report on total direct and indirect
greenhouse gas emissions by weight. They will also report on their initiatives
to reduce greenhouse gas emissions and define the reductions achieved.
Opportunities have come their way since they began their low carbon strategy: they
have been recognised by the DJ Sustainability Index and by the Innovest Climate
Leadership Index as Best in Class and, in fact, are the only HK based company to
make the DJSI Asia Pac 40 index. Since 2005 they have been managing CDM projects
under the Kyoto Protocol and, in 2003, they launched an Energy Innovation Fund.
Today CLP actively manages its emissions and has set long-term targets for
further reductions. Their aim is to reduce emissions from 0.84 kg CO2/
kWh to 0.2 by 2050 (their estimates), which is a 75% reduction to support
the 550ppm global emissions target. CLP aims to achieve the reductions
through changing their fuel mix to favour clean coal, nuclear and natural
gas, and to invest in renewable energy generation. They will also achieve
substantial reductions from their work on grid efficiencies and conservation.
The company recognises that they should also focus on improving disclosure
in order to improve performance, enhance their brand and reputation. CLP
has a strategically managed community outreach and investment programme
which enables it to engage more easily with its stakeholders. Despite its leading
position with respect to CSR reporting and performance, one has to note that
CLP has a high percentage of coal in its generation mix (including relatively old
and inefficient plants) and is continuing to expand its coal fired capacity
ISSUES FOR
RESPONSIBLE
INVESTORS
DISCUSSION
The company ranking according to indicators for greenhouse gas intensity, which
was presented earlier, may give the impression that companies are actively
making choices when it comes to using innovative or efficient technologies. For
the most part companies do not have this flexibility. Most fuel choices are still
dictated by governments or others for a variety of reasons:
The sector is still in the process of privatization. Governments still own a
controlling stakes, and take the decisions. In addition, due to the long life span
of power plants, todays generation mix is mostly a legacy of past decisions. In
many countries, fuel choice is partly dictated by natural conditions, namely local
availability of coal and gas, and natural potential for renewable energy.
Investments in certain fuel imports, for example natural gas via pipelines or
LNG terminals are expensive and are generally supported by governments for
reasons of energy diversification and security.
Therefore when investing in a company with a very low carbon intensity and
a high percentage of renewables, such as the Philippine Energy Development
Corporation, it does not necessarily correlate that it is an innovative, forward
looking company. Rather, it could be a company that happened to be in the
right geographic location and regulatory environment to take on a low-carbon
business profile. Expansion plans can give an insight into how forward-looking a
company is, especially if one goes into details to understand what type of coalfired technology or gas fired plant is being installed, and how efficient and clean
the proposed technologies are.
The efficiency metrics that we looked at give an insight into how well a company
operates its existing asset base. Unfortunately companies, generally, do not
all report the same metrics, and many dont address the efficiency of their
operations at all.
The scoring shows how, in general, the larger players have the most advanced
ESG reporting and management systems. This pattern of ESG performance can
be observed in most sectors. In our utilities universe, there are some notable
exceptions of relatively large companies such as Tenaga Nasional and Chinese
utilities Huaneng Power and China Resources Power being laggards. There are
also small companies such as Electricity Generating Public Company with leading
ESG performance scores. But overall large companies still tend to have the best
ESG performance.
These large companies tend to be large polluters, in absolute terms, and have
an insignificant percentage of renewable energy in their generation portfolios.
Still they may be best positioned to shift their fuel mix to non-traditional sources
using the latest technologies and profiting from transfer of cleaner technologies
from developed countries when governments get more serious about the issue
of climate change. The governmental backing NTPC receives from Japan and the
US when it comes to research and application of clean coal technologies clearly
illustrates this potential.
Copenhagen Update:
Despite global frustrations at the lack of tangible progress at Copenhagen, we
feel that the debate has come a long way, especially as the countries in our
universe, notably China and India, have collaborated on responses and begun
to form a collective developing country action group which can engage with the
USA. The Copenhagen round resulted in US$30bn of climate change aid to
developing nations to be given next 3 years and a stated goal of US$100bn a
year to developing countries by 2020 to fund research, development, adaptation
and mitigation strategies. Still, we think that it would have been helpful for
business to get a clearer understanding of the direction of global climate policy
from the Copenhagen conference. The next steps to watch out for will be the
nationally appropriate mitigation actions that developing countries will submit to
the UNFCCC by January 31st, 2010, and a renewed attempt for a global climate
deal at the next UNFCCC climate conference in Mexico at the end of 2010.
Please note that there are no Annex 1 countries in our coverage and none are,
therefore, obliged to report on progress under the United Nations Framework
Convention on Climate Change. Some do, however, and we include reference to
those submissions here.
ISSUES FOR
RESPONSIBLE
INVESTORS
COUNTRY
SUMMARIES
CHINA
Total installed generation capacity (MW)
Energy mix (as % of total installed capacity)3
Total electricity generated 2008 (TW Hours)
NA
Thermal (80.95%), Hydro (16.41%),
Nuclear (1.99%), Renewable (0.65%)
3,433.4 billion
5.23% (2008), 3.75% (Expected
2009)
7.14
893
758
6,896.5 million metric tones
6.26 metric tones
The 11th five-year plan (2006 2010): China pledged to cut energy
consumption per unit of gross domestic product (GDP) by 20%, or 4%
each year.
Chinas alternative energy outlook is promising. At the end of 2008, wind power
in China accounted for 12.2 GW of electricity generating capacity. The original
2010 target set by the Chinese government, in 2007, was 10 GW. However some
estimates suggest that by next year the total installed capacity will be closer to
20 GW. According to the newest NDRC plan China aims to have 30 GW of wind
generating capacity by 2020 (equivalent to 85 MT of CO2 abatement). In April
2009 a senior energy official13 reported that China is well on its way to having 100
GW of wind power capacity by 2020. As a result of the successful early uptake
the Vice Chairman of NDRC proposed revising the target to 100 GW wind by 2020
in June 2009.
In 2007 the government announced plans to expand Chinas installed solar
capacity to 1,800 MW by 2020. Central to the PRC Governments plans is the
Golden Sun stimulus program. Under this program the Ministry of Finance
subsidizes half of the construction costs of an on-grid solar power plant, including
transmission expenses. The Ministry of Finance will also pay subsidies of up to
70% to develop independent photovoltaic power generating systems in remote
regions. In May 2009, the Director of the NDRC Energy Research Institute
changed the 2007 goal and announced plans to increase Chinas solar power
capacity to 20GW by 202014 15 (equivalent to 55MT of CO2 abatement).
Recently China has underlined its renewable ambitions when the presidents of
the United States and China announced joint initiatives in mid November 2009.
These plans are aimed at boosting renewable energy, sharing data and best
practices on grid modernization, energy efficiency, the use of electric vehicles
and launching a U.S.- China clean energy research centre.
There is clear potential for cleaner energy in China. Wind resources are mainly
distributed in the North-Western provinces and coastal areas. The Chinese
Meteorology Research Institute estimates China has 253GW onshore and 750GW
offshore wind power potential. Researchers from Harvard and Beijing Tsinghua
University have found that China could meet all its electricity needs from wind
power through 203016.
Recent Events:
Chinas leaders are facing up to the challenge of how to maintain buoyant
economic growth while avoiding the catastrophic impacts of climate change.
China has therefore enacted significant carbon reduction measuresmainly in
energy efficiency and renewable energythat have economic co-benefits. The
potential for further reductions is great and China is on the path to successfully
limit its growth in CO2 emissions17.
The Chinese governments concerns about energy security and the effects of
climate change have catalyzed policies that are significantly lowering Chinas
energy intensity and rate of GHG growth. Chinese leaders announced multilateral
cooperation on climate change during Mr. Obamas visit to China in November
2009 but it seems they expressed valid concerns that the gap between developed
and developing countries on legally binding emission targets is too great to
overcome at the Copenhagen round.
China released its first National Communication on Climate Change in December
2004. The State Development Planning Commission and the National Coordination
Committee on Climate Change authored the report. It is available online at the
UNFCCC website. There has been no communication on agreements following
Copenhagen.
HONG KONG
10,664
Oil (63.7%), Coal (26.3%), Gas
(10%)
38
20
21
22
3%
11 (domestic HK Island),
15 (commercial HK Island),
11 (average price, Kowloon, N.T)
890 g CO2/kWH
775 g CO2/kWH
The Hong Kong energy market has been fully privatized and operates as a
regulated duopoly. Only two power utility companies generate, transmit and
distribute electricity in Hong Kong: China Light & Power and Hong Kong Electric.
Electricity prices differ between Hong Kong Island and Kowloon/ New Territories,
suggesting that the market is not fully deregulated. Hong Kong Electric and CLP
are also seemingly in collusion - each company has a well-defined territory in
which it operates with no competition. Hong Kongs two power utility providers
are now preparing to open the grid to renewable power from new IPPs, in Hong
Kong and Mainland China, and to provide necessary services.
Hong Kong is not a party to the UN Framework Convention on Climate Change.
However, it is the Hong Kong Special Administrative Regions voluntary policy
to contribute to international efforts to reduce GHG emissions The Hong Kong
SAR government has taken some steps to promote the use of renewable energy,
reduce CO2 emissions and increase energy efficiency. These steps are:
INDIA
Total installed generation capacity (31-10-0927)
153,694.09 MW
834.3
8 domestic, 18 commercial
1,252 g CO2/kWH
928 g CO2/kWH
34
November 2009: India issued solar power targets, with plans to boost
output from near zero to 20GW by 2022. The solar mission also outlines
a system of paying households for any surplus power generated from
domestic solar panels fed back into the grid.
India has 16 nuclear power plants although nuclear energy accounts for
only 3% of Indias energy consumption (3779MW). An additional seven
reactors are under construction with proposals for 24 more, generating
20,000MW of power by 2020.
There is limited potential for alternative energy due to limited land availability.
There is, however, considerable potential for solar energy. Other forms of power
are likely to be brought in from the Chinese mainland grid over time.
Recent Events:
Hong Kong has made no unilateral attempt to join the Copenhagen conference
and has issued no National Communication on Climate Change. Civil society
has been actively participating in the discussions on future renewable energy
sourcing.
India has several policies in place which aim to stimulate renewable generation
capacity additions:
At the federal level there are a number of measures that help drive
renewable electricity development, including fiscal incentives such as
income tax exemption for 10 years, 80% accelerated depreciation, sales
tax exemption and excise duty exemption.
The Government of India has an ambitious mission of Power for all by 2012.
This mission would require that Indias installed generation capacity should be
at least 200,000 MW by 2012 from the present level of 147,402 MW. Power
requirements are expected to double by 2020 to 400,000 MW. Hence, there is
great potential for alternative energy.
Wind capacity is already at 7,600 MW, and expected to reach 10,500 MW by
2012. This implies capacity addition of only 600 MW per annum, while the
current annual run rate is greater than 1,000 MW. From 2002 to 2007 India
planned to construct 3,075 MW of renewable grid connected capacity, but the
actual capacity addition exceeded 6,000 MW by 2006 with a large share of this
coming from growth in the Indian wind market. Wind is expected to add more
than 10,000 MW of additional capacity by 2012.
The potential for wind power generation for grid interaction has been estimated
at 45,000 MW38. However, wind turbine manufacturers believe the potential is
higher, at 100,000 MW. Indias wind, small hydroelectric and biomass sources
have the potential to generate 80,000 MW. India is the eighth largest consumer
of hydroelectricity with the potential to produce 150,000 MW of energy.
India nuclear program is large: 17 units in operation (3.8 GWe), 6 under
construction,19 planned or proposed, with 5 additional research reactors. India
has achieved independence in its nuclear fuel cycle. Nuclear power currently
supplies less than 4% of electricity in India. The units under construction are
due for completion by 2010. A further 24 units are planned or proposed, to give
20 GWe by 202039.
Electricity losses in India during transmission and distribution are extremely high
and vary from 30% to 45%. Therefore dealing with energy efficiency is vital to
the Indian utility sector.
Recent Events:
Developing countries such as India are hesitant to accept binding targets that
would limit their growth in GHG emissions, as they still need to bring millions
of people out of poverty. About 56% of Indias 1.1-billion plus population has
no access to electricity. India is making a very strong case for international
support for its climate actions, but in the process it is also skirting its unilateral
obligations, said Siddharth Pathak, Greenpeaces main climate campaigner in
India41.
India has joined the BASIC country grouping (Brazil, South Africa and China)
which presented a counter-draft that will be presented by China in Denmark.
It is the first major India-China accord on international affairs and is likely to
impact not just the dimension of the talks on climate change but international
diplomacy as a whole. The draft includes a commitment to national appropriate
but voluntary actions. Most developing countries are not willing to accept the
concept of setting a peak year for emissions or international MRV on their
efforts. 42
India has valid concerns that developed countries will set up trade barriers and
resort to protectionism in the name of emissions reductions. They also believe
developed nations should fund the reversal of forest degradation. India has not
yet supplemented its last national communication on Climate Change, a 292page report which was submitted in June 2004 by the Ministry of Environment
and Forests.
INDONESIA
Total installed generation capacity (31-10-0943)
24.3GW
151.2
7%
46
47
48
49
6.77
980 g CO2/kWH
692 g CO2/kWH
376.3 million MT
1.63 MT
The share of oil should be less than 20%, coal to be at least 33%, natural
gas at least 30%, 15-17% of primary energy to come from renewable/
alternative sources by 2025 (5% biofuels; 5% geothermal; 5% biomass,
solar, wind, nuclear & hydro; and 2% coal liquefaction). The total
investment needed for this development through 2025 is estimated to be
US$13.2 bn.
The government aims to raise the use of new and renewable energy
sources in power generation from the current 0.2% to 4% by 2020.
The Energy Law (Law No. 30/2007) issued which states that local
governments should provide incentives for renewable energy developers.
MALAYSIA
23,300 MW
Coal (34.2%), Oil (0.9%), Diesel (1.4%),
Gas (56.6%), Hydro (6.9%)
106.4
-2.6%
63
64
972 g CO2/kWH
619 g CO2/kWH
65
66
The Department of Electricity and Gas Supply acts as the market regulator with
the Ministry of Energy, Green Technology and Water, the Energy Commission
(Suruhanjaya Tenaga), and the Malaysia Energy Centre (Pusat Tenaga Malaysia)
also contributes to policy and tariff direction. Government-linked energy
companies Petronas and Tenaga Nasional Berhad are the dominant players.
The Malaysian energy policy is based on: 1974 Petroleum Development Act,
1975 National Petroleum Policy, 1980 National Depletion Policy, 1990 Electricity
Supply Act, 1993 Gas Supply Acts, 1994 Electricity Regulations, 1997 Gas Supply
Regulation and the 2001 Energy Commission Act.
According to the Malaysian Energy Commission, an estimated total investment
of RM 30 bn (approx US$8.8 bn) is required to be spent in the electricity supply
industry over the next 5 to 10 years. Of this total, 60% will be invested in
power generation, while the rest will be split equally among transmission and
distribution67.
The Ministry of Energy, Green Technology and Water has identified the following
objectives:
To follow the Fuel Diversification Policy (9th Malaysian Plan), set out in
2006. This has a target of renewable energy providing 5% of electricity
generation by 2005 (equal to 500 MW-600 MW of installed capacity) and
10% by 2010.
The policies have been reinforced by fiscal incentives, such as investment tax
allowances69. Other policy instruments and institutional mechanisms are in
place to drive the renewable and energy efficiency strategies. Companies enjoy
incentives such as pioneer status, import duty and sales tax exemption for
equipment used in energy conservation. In addition, preferential loans, grants
and other funding structures are in place for renewable energy development. The
Malaysia Electricity Supply Industry Trust Account (MESITA) is a social obligation
fund contributed to by the major power utilities. Each utility contributes 1% of
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 34
their annual revenue to the fund. The proceeds are used to assist government
projects and studies on rural electrification, renewable energy and energy
efficiency.
Other supporting policies include the Renewable Energy Power Purchase
Agreement (REPPA), which is a Malaysian government regulation dealing with
power purchases between the power utility TNB and private investors. Under
the REPPA, renewable electricity producers are given a license for a period of 21
years from the date of commissioning of the plant. REPPA also allows independent
power producers to sell electricity to the grid. Revenues from generating Certified
Emissions Reductions under the Clean Development Mechanisms also support
the growth of the renewable sector in Malaysia.
There is large potential for biomass power generation in Malaysia due to the
waste product of the booming palm oil industry. The country is also considering
the construction of a nuclear power generator70. A comprehensive energy policy
study, including the potential for nuclear, is due for publication shortly.The stateowned utility TNB is tentatively in favour of nuclear power and in August 2006
the Malaysian Nuclear Licensing Board said that plans for nuclear power after
2020 should be brought forward and two reactors built much sooner.
Recent Events:
Minister Chin of the Ministry of Energy, Green Technology and Water said in
late 2009 that there would be no independent action from the government to
encourage efforts towards an agreement at Copenhagen. 71
The only National Communication on Climate Change was from the Ministry of
Science, Technology and the Environment in 2000. This 131-page document,
which included a sectoral inventory of GHG emissions, was funded by the Global
Environmental Facility (GEF) and the United Nations Development Programme
(UNDP).
PHILIPPINES
Total installed generation capacity (2008)72
15,936 MW
1,008 g CO2/kWH
77
The Renewable Energy Act (Dec 2008) provides fiscal and non-fiscal
incentives for renewable energy investors, including tax credits on domestic
capital equipment and services, special realty tax rates on equipment
and machinery, tax exemption of carbon credits, duty-free importation
mechanisms, and income tax holidays, among others81. End users are also
offered net-metering and green energy options. The Act covers biomass,
solar, wind, geothermal, ocean and hydro.
27%
59.6
449 g CO2/kWH
The Philippine government has been in the process of restructuring the Philippine
power market since serious shortages arose in the early 1990s. The purpose of
the restructuring was to provide reliable power to aid economic growth and
development. The Republic Act No. 9136 or the Electric Power Industry Reform
Act (EPIRA) ushered in the restructuring of the electric power industry and
privatization of government interests in generation and transmission with an end
in view of having competition in electricity generation and supply.
The independent regulator Energy Regulatory Commission (ERC) oversees
all these reforms. ERC is active not just in the regulated sectors, but also in
the wholesale and retail markets. It delivers regulatory policies to support the
States policy of promoting the utilization of new and renewable energy sources
in power generation while ensuring electricity prices are reasonable, reflective
of true cost, and free from cross-subsidization and other distortions. Among the
powers granted to the ERC is the power to set the rates of the 140 distribution
utilities (DUs) operating throughout the country.
Philippines alternative energy mix ambitions and energy efficiency goals:
SINGAPORE
Total installed generation capacity (2008)84
10,785 MW
41.7
0.5 2%
88
89
87
15.34
535 g CO2/kWH
Public Utilities Board (PUB) was the sole provider of electricity in Singapore until
the 1990s. In 1995, the Government decided to undertake industry reforms.
The first step was to have the electricity and gas assets and services in the PUB
corporatized under a separate vertically integrated power corporation, Singapore
Power. PUB remains as a regulatory body for the electricity industry. An electricity
market was subsequently started in 1998, with the generation companies in
Singapore Power competing with each other for the dispatch of electricity.
Senoko is a privately owned Singaporean utility with strong ESG performance
and CSR Management. It has participated in Singapores deregulated electricity
retail market since 2001 and is one of the leading energy service providers to
contestable customers. It produces an excellent annual Environmental Report,
which states that the replacement of its oil-fired generation with state-of-theart gas-fired combined cycle turbine technology, at a cost of S$600m, reduced
its carbon dioxide emission by 2.5 million tons per annum. To date, 95% of its
electricity generation comes from clean natural gas-fired generating plants. It
reduced nitrogen-based emissions by retrofitting the burners of four older gas
turbines at an additional cost of $17m.
In 2000, the Government decided to take further steps to open the electricity
sector to competition. This decision led to the separation of the electricity grid
from the generation and retail companies, which can operate in the commercial
domain. The Energy Market Authority (EMA) was formed in 2001, as the industry
regulator and system operator, and facilitates the wholesale electricity market.
Since then new generation companies have entered the market. On 1 January
2003, the National Electricity Market of Singapore (NEMS) commenced operation.
Generation companies bid every half-hour to sell electricity into the new wholesale
electricity market. As a result, prices reflect more closely changes in the supply
and demand of electricity. By 2007, about 10,000 accounts, representing about
75% of electricity consumed in Singapore, had been made contestable.
Singapore currently has no renewable energy targets. According to commentators
in an article Singapore is Not Ready for Renewable Energy91 the government
is not in favour of stimulating renewable energy generation through subsidies,
as David Tan, Deputy Chief Executive of the Energy Market Authority, has
said. Without subsidies, the use of renewable energy such as solar energy is
still not price competitive. However, Singapore is well placed to provide Photo
Voltaic capabilities and serve as exporter for the region. The National Research
Foundation has provided $170 million for solar research and there are many
grants available to support growth in the sector.
Recent Events:
Although there has been much deliberation between Singapores Ministers,
National Environment Agency and NGOs, a clearly defined strategy is lacking.
As one of its climate negotiators commented, it is a small country that lacks
alternative energy potential92.
Senior Minister Professor S Jayakumar, Chairman of the Inter-Ministerial
Committee on Climate Change claims that Singapore contributes less than 0.2 per
cent of global greenhouse gas emissions. In spite of this, Singapore is committed
to reducing carbon emissions growth by 16 per cent below the projected 2020
level. This is, however, only if a global agreement is reached and other countries
implement significant targets of their own.93
Singapore has pledged to reduce emissions growth by 16 per cent below the
projected 2020 level, provided that other countries announce meaningful
emissions cut targets. Prime Minister Lee Hsien Loong noted that if theres no
agreement, were not obliged to hit the 16 per cent target. We have a sustainable
development blueprint which is a 7 to 11 per cent target.
To reach 16 per cent, well have to take new measures. We have to consider
what these will be, and therell be regulations. For example, energy efficiency
standards may be necessary.94
SOUTH KOREA
Total installed generation capacity (2008)95
73,373 MW
1.5%
10
902 g CO2/kWH
455 g CO2/kWH
100
101
Privatization of the electricity market in Korea has been slow, primarily due to
the political strength of the existing generating companies along with adverse
public opinion and union opposition. There is still a plan to reform and privatize
the generating capacity and introduce more competition over time but there
is also a desire to maintain the financial strength of KEPCO as it competes for
projects in overseas markets.
Koreas Alternative Energy Act was implemented in 1982 and revised in 2002.
It constituted the initial framework for the development of renewable energy
technologies and energy efficiency. It aimed to secure cost-effective renewable
energy by fitting the production strategy to geographical characteristics and
through cost effective business modelling. It encouraged the installation of wasteincineration plants to generate heat and power. It also promoted residential solar
heaters, small hydropower plants and facilities to use methane gas. In 2008
the South Korean government announced plans to set up the Act on Climate
Change. This act supports industries that voluntarily develop and implement
GHG reduction plans through various taxation measures, including a carbon tax.
Koreas goals as stated in the Act on Climate Change and other legislation aim
to:
Mix bio-diesel, mostly from palm oil, into fuel in increased quantities,
from 0.5% in 2007 to 3% in 2012.
Feed-in tariffs were adopted for solar PV in 2006. The tariffs distinguish
between systems >30 kWp and systems <30 kWp. The result of these
tariffs has been a huge growth in solar demand.
In 2008, 533 billion won was slated for the development of alternative
energy, up from 435 billion won in 2007. In order to meet this goal,
investment in research and development will be increased to some 210
billion won ($210 million). In January 2009 South Korea announced the
launch of its $38.1 billion Green New Deal103. The Green New Deal will
focus on pollution control, energy efficiency and clean technologies.
Under the plans, $3.32 billion will be spent on clean energy infrastructure
technology products and constructing low carbon transportation systems.
An additional $6.64 billion would be allocated for research and development
of higher efficiency and non-silicon-based solar cells, electric vehicles,
highly efficient LEDs, smart metering and rechargeable batteries.
TAIWAN
Total installed generation capacity (2007)108
45,816 MW
237.7
3.3%
112
1.44
ND
ND
114
115
August 2008: The government aims to grow the solar power industry to
$16 billion by 2012 by introducing a renewable energy law120.
December 2008: Taiwan to make Taipei its first low-carbon city, with local
government hoping to reduce emissions by 20 percent by 2020121.
April 2009: Taiwan will invest 45 billion New Taiwan dollars (US$1.3 billion)
to expand and upgrade the Islands solar and wind energy industries and
help reduce the use of fuel;
July 2009: The Executive Yuan (the executive branch of the government)
approved a proposal consisting of 16 measures to transform Taiwan into
a low carbon country by 2020. A Sustainable Energy Policy was defined
with a goal of improving energy efficiency by more than 2% per annum;
to reduce emissions to 2008 levels between 2016 and 2020 and to 2000
levels by 2025. The aim is to achieve 15 MT of abatement in 2012 and 20
MT of abatement in 2020124.
THAILAND
Total installed generation capacity (31-10-09)128
+/- 29,000 MW
147.5
16.1%
131
927 g CO2/kWH
536 g CO2/kWH
134
May 2001, the government initiated the pricing subsidy in the form
of energy payment adder for electricity generated by renewable energy
for a period of five years at a maximum rate of 0.36 baht/kWh, under a
competitive bidding.
In mid-2002, the government, via the two power distribution utilities i.e.
the Provincial Electricity Authority (PEA) and the Metropolitan Electricity
Authority (MEA), announced power purchase from VSPPs with capacity
supply to the grid <1 MW.
In 2007 the Ministry of Energy set a target to purchase power from SPPs
using renewable energy, totaling 530 MW Fixed Adder (230 MW) Adder
Bidding (300 MW)
Wind speeds in Thailand are lower than in Europe, on average, but slow motion
wind turbines are being considered. Thailands geographic conditions seem most
appropriate for the development of biomass energy. In 2009 Thailand generates
about 1,700 MW from biomass fuel. The Ministry of Energy (MoE) expects that a
total of 3,700 MW could be generated using biomass. Tropical weather conditions
in Thailand and economic rationale favour biogas generation138.
Thailand has had an operating research reactor since 1977 however Thailands
nuclear power program has undergone a revival due to a forecasted growth in
electricity demand of 7% p.a. for the next twenty years. Capacity requirements
in 2016 are expected to reach 48 GWe139. In June 2007 the Energy Minister
announced plans to build two nuclear power plants including one US$6bn 4,000
MWe nuclear power plant to be operational in 2020. The Thai government has
budgeted funds to 2011 for preparatory work.The International Atomic Energy
Agency will cooperate with the Thai government to build the nuclear power
plant140. Construction will commence in 2015 and is estimated to take 13 years
to complete construction of the nuclear reactors.
Recent Events:
Thailand issued its first national communication on Climate Change in 2000 from
the International Environmental Affairs Division of the Office of Environmental
Policy and Planning (OEPP) at the Ministry of Science, Technology and Environment.
There have been no subsequent communications.
In January 2008 the Office of Natural Resources and Environmental Policy and
Planning, a division of the Ministry of Natural Resources and Environment released
the Strategic Plan on Climate Change 2008-12.
There have been no official government emissions reduction target statements
but the ONREPP has been actively developing mitigation and adaptation strategies
and ensuring the implementation of CDM across various sectors. By May 2009 the
DNA-CDM had apparently approved 66 CDM projects with a total abatement of
over 4 MTOE/year. These are mostly small biogas projects. Civil Society has been
active on the climate change issue in Thailand.141 The Department of Alternative
Energy Development and Efficiency is promoting private investment in R & D of
renewable energy sources through tariff promotion, as well as a greater emphasis
on conservation and efficiency.142
ISSUES FOR
RESPONSIBLE
INVESTORS
CONCLUSION
Appendix: Company
Profiles
Company Name (country)
RIC / ISIN: 2
Market Cap
There is a chapter on Environmental Protection and Social Responsibility in the companys annual report as well as the same
information on its website. There is no information on how the management of environmental and social issues is organized.
Stakeholders are not mentioned. Some information about philanthropic activities, for example after the Sichuan earthquake, but not in
a systematic and structured way
Ownership structure
Company type
IPP
engaged in developing, constructing, owning, operating and
managing power plants in Peoples Republic of China. Plans to invest
in transmission and distribution of electricity as well
Business Model
Asian Utilities Environment and Social Rating
33%
58%
No response
China Power International has started to disclose some environmental information. Apparently there have been some improvements
in sulphur dioxide, nitrogen oxide and carbon dioxide emissions, but overall information disclosure still leaves a lot of room for
improvement. Coal consumption rate was relative high compared to other Chinese utilities in our universe.
2009 (MW)
2009 (%)
110
1%
8,946
81%
0
0%
0
0%
1,988
18%
0
0%
0
0%
11,045
100%
750MW of additional hydro projects until end 2010, another 250MW
hydro until end of 2011. 2400MW of additional coal capacity planned
until end of 2010. Potential of further asset injection from the parent
company
1,833
34,035,697 ED1 cost (m USD)
24,360 ED impact on 2008 revenue
131%
1,880 ED impact on 2008 EBITDA
1646%
Score:
No absolute emissions data. Vague comments on its environmental management system, which is not certified. One statement about
past climate change management, but no current information.
Safety is said to be a key objective but there is no information on actual safety management.
Score:
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Environmental management
Corporate governance
Score:
Separation of Chairman & CEO: no, percentage of independent board members: 43%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 100%, percentage of independent nomination
committee members: the same as remuneration committee, disclosure of executive and board remuneration: yes.
Controversies
Gravity:
Low
No controversies directly related to China Power Int Dev, but a lot of issues surround its parent company, China Power Investment:
For example, CPI was fined by the Ministry of Environmental Protection for emitting excessive amounts of sulphur dioxide in 2007. CPI
is active in Burma, building dams and working with the local ministry of electric power. In 2007 CPI was called the worlds 5th largest
polluter by Think-tank Center for Global Development.
Community investment
No community investments disclosed.
Note 1: ED stands for environmental damage
Environmental management
0836.HK / HK0836012952
US$ 8,860m
China Resources National Corporation owns 64.75%, free float (35.2%)
IPP
Independent power producer, which invests, develops, operates and manages
power plants in China. The Company is engaged in two operating divisions:
sales of electricity (inclusive of supply of heat that is generated by thermal power
plants) and coal mining.
0
0%
92%
No response
Score:
Score:
Score:
11
Separation of Chairman & CEO: yes, percentage of independent board members: 36%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 67%, percentage of independent nomination
committee members: 67%, disclosure of executive and board remuneration: yes.
Controversies
5,828
169%
719%
Gravity:
High
sightseeing trips from the California-based company Control Components Inc. China Resources Power Holdings was added to a
list of six Chinese entities (Jiangsu Nuclear Power Corp, Guohua Electric Power, China Petroleum Materials and Equipment Corp,
PetroChina, Dongfang Electric Corporation and China National Offshore Oil Corporation) allegedly involved in the corruption scandal,
according to documents released by the US Department of Justice.
According to a recent Greenpeace report, CRP is the most carbon dioxide intensive Chinese power producer with 816.5 g CO2/kWh.
In July 2008, the Chinese Ministry of Environmental Protection has stated that China Resources Power Holdings, Guizhou Jinyuan
Group and Shanxi International Electricity Group energy projects are not eligible for environmental impact assessments because they
failed to add the required sulphur-eliminating facilities prior to the end of 2007. Its parent company is involved in further controversial
issues.
2009 (MW)
2009 (%)
473
3%
14,810
94%
0
0%
0
0%
158
1%
0
0%
315
2%
15,755
100%
plan to expand to 21GW by end of 2010 with 6% from alternative energy
99,639,200.00
28,845
3,479
Corporate governance
China Resources Power discloses virtually no information on environmental and CSR issues. Its generation mix is highly dependent on
coal and its coal consumption rate is the highest among the Chinese utilities we looked at. On top of this, the company was involved in
number of controversies.
Little mention of environmental issues. State that all the power plants which were constructed and managed by CR Power have
installed flue gas desulphurisation (FGD) facilities, but it is not obvious how many of the plants they constructed themselves and what
are the plans for plants constructed by somebody else. For the power plants under construction, they started the installation of denitration facilities, which is more than the environmental protection requirements set by the PRC Government.
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
Score:
Community investment
No community investments disclosed.
Note 1: ED stands for environmental damage
Ownership structure
Zhu (Gong Shan) (CEO & chairman) owns 40.97%. Poly lomited (HK)
also substantial owner. Incorporated in the Cayman Islands. GCL
Silicon unsuccessfully tried to do an IPO in 2008. GCL Poly and GCL
Silicon have the same founder.
There is a section on Corporate Citizenship on the GCL-Poly Energy website, but there is almost no CSR related information to be
found. No useful information such as data, information on environmental management system, CSR management etc.
Company Type
IPP
Business Model
2009 (%)
41.1%
51%
8%
0%
0%
0%
0%
100%
In its 2 (small) biomass / coal power plants in Baoying and Lianyungang they successfully improved the efficiency of their direct
combustion boilers and feeding systems, resulting in the reduction of raw coal consumption by 200,000 ton a year. This led to a
decrease in emissions of carbon dioxide by approximately 400,000 ton. No CO2 emission data, no further mention of climate change.
Score:
Corporate governance
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 33%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 100%, percentage of independent nomination
committee members: -, disclosure of executive and board remuneration: partly
Gravity:
Low
Community investment
GCL-Poly has made several donations. Chairman Zhu made a contribution to Nanjing University, it is not known whether this was in his
own name or not. These are philantropic investments.
Note 1: ED stands for environmental damage
231
43%
239%
Score:
Controversies
No news coverage on controversial issues
none
4,059,523.00
7,578.00
142.00
All power plants have adopted various internal safety policies. The companys polysilicon facilities comply with all applicable
governmental regulations and internal environmental health and safety (EHS) standards. GCL-Poly sponsored a number of training and
development programmes for its employees in 2008.
All GCL-Poly Energy plants have installed the CEMS (Continuous Emissions Monitoring System) which is required by the PRC
Government. Most of GCLs cogeneration plants use circulating fluidized bed (CFB) boilers, thus substantially lowering emission
of sulfur dioxide. Desulphurization equipment has been installed for the few pulverized coal boilers. There is no information on
environmental management inspite of the fact that the polysilicon production has a very high toxicity (TCS gas).
Disclosure on ESG issues by GCL Poly is almost completely missing and inadequate. The company is trying to position itself as a
leading clean energy company after its acquisition of its parent companys polysilicon business that delivers raw material to the solar
industry. Polysilicon production is very energy intensive and uses highly toxic and dangerous, Therefore we would expect the company
to focus more on environmental and H&S management.
2009 (MW)
360
444
72
0
0
0
0
876
Score:
5%
67%
no request by CDP
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
Environmental management
Score:
Business Model
Environmental management
65%
67%
yes
2009 (MW)
2009 (%)
1,745.10
30%
3,955.56
68%
0%
0%
0%
0%
116.34
2%
5817
100%
100MW offshore wind farm planned
10,038,245.00
6,091.00
350.00
Score:
Report CO2 emissions and climate change activities only on HK operation, not internationally. Reporting is extensive. Some activities
top support energy efficiency with customers: for example, starting from 2009, HK Electric has been carrying out energy audits for the
customers free of charge in order to promote energy efficiency. Further, they established a loan fund of HK$12.5 million per annum
over a five-year period (total HK$ 62.5 million) to provide interest-subsidized loans to their customers to implement energy saving
initiatives identified in the energy audits.
CO2 emissions intensity is with 0.75 kg CO2 / kWh significantly higher than CLP at 0.54 kg CO2 / kWh for its HK operations. No
emissions reduction target set. CO2 emissions for its HK operations are published in the Environmental Report. They show a slightly
decreasing trend. They state that they recognise their responsibility to contribute to global efforts to reduce Greenhouse Gas (GHG)
emissions by switching to low carbon fuel, promoting energy efficiency and applying renewable energy.
They also do environmental education campaigns, which promote private energy saving activities. Are in the process of installing
emission reduction equipment at the Lamma power station. The last of the FGD and low nitrogen oxide burner works is expected to be
completed in the second quarter of 2010 by which time over 95% of the electricity generated at the Lamma power station will be either
generated by gas or by coal fired units fitted with FGDs and low nitrogen oxide burners.
Hongkong Electrics disclosure on ESG issues is relatively extensive and far above sector average. The company scores as an ESG
leader. They publish emissions and safety data. CO2 emissions intensity for its HK operations is significantly higher than the one of its
competitor CLP. There is room for improvement on disclosure for non-HK facilities.
Report CO2 emissions and climate change activities only on HK operation, not internationally. Reporting is extensive. HK Electric
has been carrying out energy audits for its customers free of charge in order to promote energy efficiency. HK Eletric established a
loan fund to provide interest-subsidized loans to their customers to implement energy saving initiatives. Quarterly emissions data for
the Lamma Power Station are available. The Lamma Power Station is ISO 14001 certified. Claim that most of the fly ash is used in
construction. There are no targets and no group wide information. In HK the operations are certified according to OHSAS18001. There
is data on the companys safety performance (injury frequency and severity) which is available only for very few Asian utilities. The data
shows little clear trends but varies widely from year to year. They set some environmental targets, most of which are part of their usual
operations, though, such as the implementation of its emissions reduction facilities at the Lamma Power Station which is needed to
meet regulatory standards.
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
Score:
581
35%
43%
Score:
HKE has established a clear H&S policy and an H&S Board. HKE follows international standards and has received external
certification. There is data on the companys safety performance (injury frequency and severity) which is available only for very few
Asian utilities.
Corporate governance
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 19%, percentage of independent audit committee
members: 75%, percentage of independent remuneration committee members: 67%, percentage of independent nomination committee
members: ND, disclosure of executive and board remuneration: yes. 2 of the independent directors have been with the company since
1985. One executive director is 77, all non-execs are 67+ years old.
Lamma Power Station awarded Wastewi$e and Energywi$e Labels in recognition of efforts to reduce waste, save energy and promote
wider use of renewable energy.
Controversies
Score:
There is a section on environmental issues on the companys website. Little data is available, though. There is also a chapter in the AR
on the latest environmental developments and on some community investment activities. The company also publishes an annual Social
& Environmental Report.
Low
Gravity:
Community investment
Various community and educational programmes all related to the field of energy, e.g. Energy Efficiency Education Kit for Secondary
Schools, providing learning and teaching resources on topics of energy efficiency for students and teachers in Hong Kong. These are
strategic investments.
Note 1: ED stands for environmental damage
ESG Summary
2009 H1 (%)
Reporting on fuel mix breakdown is confusing as the company reports
only outdated (2006) or ambiguous data, that is fuel breakdown
per unit installed and total installed capacity instead of attributable
capacity. Main fuel source is coal with probably around 90% of
attributable capacity. There are some very small wind power plants
and the remaining capacity is hydro plants.
27790.2 MW
The Fujian Ningde Nuclear Power Station, which is owned by Datang,
Guangdong Nuclear Power Investment Company Limited and Fujian
Coal Industrial (Group) Corporation, commenced construction in
February 2008
120,510,729.00
22,289.00
4,207.00
Score:
Publish a separate 2008 sustainability report. Some parts contain concrete data, for example on emissions, but mostly written as a
marketing brochure. State that they abide by the 10 principles of the UN Global Compact. Global Compact seems to have verified the
report. Some emissions data is also included in investor presentations.
Score:
Datang has nuclear generation assets. GHG emissions data is available. Datang is investing in renewable energy generation assets.
Company follows national policy on environmental management. Datang was the first Chinese IPP to have all units equipped with flue
gas desulphurization units. The company claims that their emissions of smoke dust, SO2, NOx and waste water are lower than the
national average. First power plant with DeNOx facilities in China. All emissions show decreasing trends. Most succesful have been the
reductions in SO2 emissions which have declined to 1.16 g/kWh in 2008 from 6.6 g/kWh in 2004. 65.7% of coal ash was used in 2008.
Score:
no mention of climate change. No CO2 emissions data. Share of renewable & clean energy in its portfolio has increased rapidly in 2008
Datang places emphasis on recycling water resources, and treatment of industrial waste water. Datang publishes water and waste
treatment data. Datang focused on strengthening the management of water saving in coal-fired power plants and proactively promoted
the application of new technologies. As at the end of 2008, eight air-cooling generating units and ten seawater-cooling generating units
commenced operation, thereby leading to a decrease of 37.8% in water consumption per unit of power generated. Ten plants realised
zero drainage of industrial waste water.
Environmental management
Compared to others in the sector, reporting on ESG issues is relatively extensive, including concrete data on emissions. In other
aspects disclosure is insufficient, though. For example, the company does not give a split of its generation capacity for example.
Datang is a member of the UN Global Compact.
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
5,296.00
98%
353%
Score:
Datang strives to provide employees with better working and living conditions. Some information on staff development and training. No
information on safety policies in place or days without injuries.
Corporate governance
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 33%, percentage of independent audit committee
members: 33%, percentage of independent remuneration committee members: 60%, percentage of independent nomination committee
members: ND, disclosure of executive and board remuneration: yes.
Controversies
Gravity:
Medium
Datang Power was one of the companies involved in a corruption scandal for accepting bribes from US listed Control Components
(CCI). Criticised heavily for environmental impacts of planned hydro projects in the Mekong Delta. As most other Chinese IPPs using
coal fired power plants the company has been under criticism in the past for high pollution levels from their plants
Community investment
Datang donates to poverty stricken areas and in the event of natural disasters. Datang supports different schools. Investments are
philanthropic.
Note 1: ED stands for environmental damage
Ownership structure
Company type
Business Model
Asian Utilities Environment and Social Rating
Corporate Governance Rating
CDP disclosure
ESG Summary
Environmental management
1071.HK / CNE1000003D8
US$ 4,373m
China Huadian Hong Kong owns 6% of H-shares and 64.51% of
A-shares, Shandong International Trust & Investment Corporation
owns 17.45% of A-shares. China Huadian Corp owns altogether
50.60% of the company, Shandong International Trust Corporation
13.3%
IPP
Environmental information is quite sparse. According to the emission reduction data approved by State environmental protection
authorities, the Groups average emission of sulphur dioxide achieved a year-on-year decrease of 0.69 g/KWh. Unfortunately the
company does not disclose absolute SO2 emissions, even though it knows the data. As at the end of 2008, generating units with a
total capacity of 19,145MW, representing about 90% of the coal-fired generating units controlled by the Group, were equipped with
desulphurisation facilities. There is no further information on environmental management
Corporate governance
22,021.00
3,385.00
Controversies
Community investment
No community investments disclosed.
Note 1: ED stands for environmental damage
5,250.00
119%
1008%
On-grid power sold: 46.57 million MWh, average utilization of coal-fired generating units: 2,320 hours, coal consumption: 326.21 g
/ MWh, unit fuel cost for power generation RMB 216.13/MWh. Over 90% of its installed capacity is composed of units of 300MW or
above.
Score:
No CSR information on the companys website. Very sparse environmental information in the AR. No indication of how environmental
and CSR issues are handled within the company
Gravity:
High
June 2009, the Ministry of Environmental Protection suspended approval for two hydropower station projects on the Yangtze River over
concerns that they would cause the irreversible loss of aquatic diversity. Allegations of serious environmental pollution in the past. In
2007, China Huadian Corporation was put on a blacklist and was to be banned from launching new projects until it had cleaned up its
existing facilities in a name and shame approach by the State Environmental Protection Administration.
H1 2009 (MW)
2009 (%)
918.40
4%
19,377.61
94%
0%
0%
168.72
1%
0%
92.28
0%
20,557.00
100%
1283 MW hydro, 545 MW wind, 3800 MW of coal capacity under
construction
96,957,485.00
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 33%, percentage of independent audit committee
members: 60%, percentage of independent remuneration committee members: 60%, percentage of independent nomination committee
members: ND, disclosure of executive and board remuneration: partly.
Huadian states that production took place without incident at different sites, but fails to mention health and safety management. No
emissions data
There is very little disclosure of environmental and CSR related information and the company scores as an ESG laggard. Its coal
consumption rate is relatively low. Huadian is involved in controversial projects such as the Ludila hydropower project, for which the
Ministry of Environment has suspended approval.
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Score:
Environmental management
Ownership structure
Company type
IPP
Business Model
0%
75%
yes, answered 2008 & 2009 CDP but details are not publicly available
Score:
In 2008, 86.2% of the coal-fired generating units were equipped with desulphurization facilities. The company claims that it will have
completed the installation of desulphurization equipment for all of its facilities be the end of 2009. There is little further information on
environmental issues. Reportedly responsible persons have been assigned to ensure environmental protection at a plant level.
Score:
Score:
Score:
Corporate governance
Separation of Chairman & CEO: yes, percentage of independent board members: 33%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 57%, percentage of independent nomination
committee members: 57%, disclosure of executive and board remuneration: yes
ESG Summary
Controversies
There is very little disclosure of environmental and CSR related information. The company scores as an ESG laggard. Huaneng Power
International is involved in controversial projects such as the Longkaikou hydropower project, for which the Ministry of Environment has
suspended approval.
In June 2009, the Ministry of Environmental Protection has suspended approval for two hydropower station projects on the Yangtze
River over concerns that they would cause the irreversible loss of aquatic diversity, and have negative impacts on communities. The
Ludila hydropower project by Huadian Power, and the Longkaikou project by Huaneng Power were allegedly constructed illegally
before reviewing potential environmental impacts. But environmental groups including Friends of Nature and the Chengdu Urban
Rivers Association have questioned whether construction has really stopped on the dams.
Also, in 2009, Huaneng Power has been accused of deviating from the original construction design of one of its biggest coal-fired
plants in Inner Mongolia, using water rather than air to cool generators although the supply is under threat in the area.
In 2007, Huanengs parent company China Huaneng Group was named the worlds largest carbon polluter, which is a consequence
of it being the largest Chinese power producer by capacity installed. The parent company has also frequently been criticized by the
central government for not meeting environmental standards.
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
2008 (MW)
ND
ND
ND
ND
ND
ND
ND
39,159
No Disclosure
183,597,411.00
18,513.00
6,410.00
2008 (%)
ND
ND
ND
ND
ND
ND
ND
100%
Community investment
No community investments disclosed.
Note 1: ED stands for environmental damage
10,028.00
101%
968%
Score:
Gravity:
High
Ownership structure
Company type
IPP
Business Model
ESG Summary
Corporate governance
Gravity:
Low
Community investment
24
21%
40%
Score:
No CSR related information available at all. GVK states that it has a socially responsible vision, however it provides no information that
supports this vision. Has a foundation.
Score:
Controversies
No controversial news coverage to our knowledge
2009 (MW)
2009 (%)
901.00
100%
0%
0%
0%
0%
0%
0%
901.00
100%
700MW hydro, 540MW coal in 2010
Environmental management
No mention of Environmental management & climate change management
Separation of Chairman & CEO: no, percentage of independent board members: 50%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 100%, percentage of independent nomination
committee members: ND, disclosure of executive and board remuneration: partly
0%
50%
Not requested to disclose
Score:
GVK Power does not disclose any environmental information, which is inadequate for a power and infrastructure company and makes
it impossible to assess its environmental performance. Its distribution mix is relatively favourable with 100% of gas powered generation
capacity and significant hydro expansion planned.
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
Score:
Score:
GVK makes community investments through the GVK Foundation. Investments are focused on the poor, rural communities living near
its plants. The Foundation builds primary schools and community halls and provides drinking water. These investments are strategic.
Note 1: ED stands for environmental damage
Ownership structure
Corporate governance
IPP
Power project development company (power development, operation,
maintenance)
0%
67%
Not requested to disclose by CDP
Controversies
Company type
Business Model
Asian Utilities Environment and Social Rating
Corporate Governance Rating
CDP disclosure
2009 (MW)
57.60
86.40
144.00
2009 (%)
40%
60%
0%
0%
0%
0%
0%
100%
548,185.00
9,219.00
19.00
31
51%
58%
Environmental management
Score:
No emissions data, no information on environmental management or climate change
Separation of Chairman & CEO: yes, percentage of independent board members: 40%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 100%, percentage of independent nomination
committee members: ND, disclosure of executive and board remuneration: partly
Gravity:
Medium
Some local resistance against its Kameng region hydro project, not large-scale.
Community investment
2010 (MW)
57.60
804.40
862.00
Score:
KSK has financed the construction of two temples, a marriage hall, water tanks for a remote community and a medical camp. These
investment are philanthropic.
Today, KSK Energy Ventures has an environmentally relatively favourable generation mix with 40% gas, but this will change for the
worse, once its capacity expansion comes through. Clear laggard with regards to international CSR and environmental management.
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Score:
08-09 (%)
95%
0%
0%
0%
2%
0%
3%
100%
Plans (MW)
368.00
6,775.00
705.00
7,480.00
Consider (MW)
250.00
250.00
plans 6775MW of coal, 705MW of hydro and 368MW of gas. 3,913MW are already
under construction. Later will also consider 250MW of wind
1,962,000.00
2,431.00
104
13%
69.00
53%
Score:
No information on energy savings in annual report. Only information on environmental and OHSAS certification available. Information
on initiatives at its construction activities and emission data is missing. (Lancos flagship Kondapalli power plant has ISO 14001:2004
certification for Environmental Management, . Lancos Aban power plant has ISO 14001:2004 certifications.)
Score:
Score:
Relatively clean IPP in the Indian context due to its high reliance on gas for power generation. Mix will become less favourable in the
future, when its large expansion in coal fired capacity comes on-stream. Clear laggard with regards to internal CSR and environmental
management.
08-09 (MW)
488.00
10.00
13.00
511.00
Environmental management
No mention of Health & Safety management, yet Lanco invests in community health programs.Lancos flagship Kondapalli power plant
has OHSAS 18001:2007 for Occupational Health & Safety, and OHSAS 9001:2000 for Quality Management Systems. Lancos Aban
power plant hasOHSAS 18001:1999 certifications.
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
UN Global Compact member. Lanco publishes an annual CSR report that is focused on community investments. Lanco has a CSR
management team. But no info on company international CSR activities or management
Score:
Corporate governance
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 50%, percentage of independent audit committee
members: 75%, percentage of independent remuneration committee members: 100%, percentage of independent nomination
committee members: ND, disclosure of executive and board remuneration: partly.
Controversies
Gravity:
Medium
Lanco Amarkantak Thermal Power Station was criticised for an incident with the World Bank which referred to its coal projects as
clean. Lanco Infratech is mentioned in a report by International Rivers as being interested in dam projects that destroy the livelihoods
of local people in the Himalayas, but no details are given. Overall modest criticism.
Community investment
Strong philanthropic activities via the LIGHT foundation. Report of these activites can be found in the annual CSR report.
Note 1: ED stands for environmental damage
Ownership structure
Central government (93.56%), institutional investors (4.39%), noninstitutional investors (2.05%) holding company KSK Energy Limited owns
55.24%, which in turn is owned by AIM listed KSK Power Venture
Company type
Business Model
Asian Utilities Environment and Social Rating
Corporate Governance Rating
CDP disclosure
Environmental management
2009 (%)
0%
100%
0%
0%
0%
0%
0%
100%
Controversies
Gravity:
Medium
Some local resistance against its Kameng region hydro project. In the past, there were serious issues around labor conditions for
contract workers. In April 2008, 13,000 contract laborers at the NLC have staged a demonstration to demand the regularization of
services as well as housing, medical and transportation provisions and bonuses. Protests of the labour unions against potential
disinvestment plans by the central government.
Community investment
941
129%
201%
Only some information on community programs with little relevance to environmental efforts. Neyveli provides no information on how CSR
is addressed within the company.
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 40%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 100%, percentage of independent nomination
committee members: ND, disclosure of executive and board remuneration: partly
Score:
Corporate governance
plans another 750MW of lignite coal capacity linked to its mining activities,
plus another 3000+MW in planning, partly as JVs. Overall expansion
plans are >15`000MW, all lignite or coal with only 2GW hydro and 200MW
wind further down on the priority list. In Sept 09, more commitment to
renewable was made, plans to commence production of electricity by wind
(50MW in an initial stage) by Oct 2010.
17,534,902.00
23,931.00
612.00
Score:
Considering delaying the shut-down of its oldest TPS I generation plant, which is at the end of its life as it has been running for over
40yrs already. From environmental and climate change point of view, fast replacement by an efficient new plant would be the preferable
option. No emissions data, targets etc.
From an environmental point of view Neyveli Lignite has a very unfavourable generation mix with a 100% lignite coal. It is not expected
to improve significantly by its expansion plans. It also runs one of the oldest power plants in the whole country. Its (publicly available)
environmental management is grossly inadequate for such a high impact company.
Neyveli Lignite has a very unfavourable generation mix (100% lignite coal). Its power plants are old. Some information on restoration
of abandoned mine land, afforestation and greening activities around its mines. Its (publicly available) environmental management
is inadequate for such a high impact company. No GHG emissions data or targets. Environmental management is a must for a high
impact activity such as open cast mining. It is telling that NLC has carried out a study on trees tolerance to air pollution for part of its
remediation efforts and that the company itself mentions resistance to costs associated with environmental laws.
Climate change management
ESG Summary
2009 (MW)
2,490.00
2,490.00
Generation
lignite mining and power generation
0%
67%
No Response
Generation type
Gas
Coal (ligtnite)
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Score:
Neyveli actively provides welfare services to the community of Neyveli township, most noteworthy would be Neyvelis contribution to
the education of handicapped children. These investments philantropic.
Note 1: ED stands for environmental damage
Ownership structure
Company type
Business Model
Asian Utilities Environment and Social Rating
Corporate Governance Rating
CDP disclosure
50%
33%
No response
ESG Summary
In absolute and relative terms, NTPC is a large polluter. Although expansion plans will tilt the capacity mix a little more towards
renewables, it will continue to be heavily dominated by coal. NTPC has implemented a couple of very positive CSR initiatives, but given
its high impact we would expect the company to be even more proactive. It scores as a follower in our ESG scoring. NTPC is involved
in a number of controversies that is not surprising for a company of its size.
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
2009 (MW)
5,515.92
25,128.08
30,644.00
2009 (%)
18%
82%
0%
0%
0%
0%
0%
100%
10,282.00
103%
304%
Score:
Some good environmental and CSR information on company website and in AR. 3 level approach to CSR: 1) compliance, 2) philanthropy and image
building, 3) innovations & key business strategies. Global Compact member. Some proactive efforts related to resettlement: NTPC has formulated
specific guidelines for the welfare of Project Affected Persons (PAPs). It has also undertaken community development activities in and around the
projects. Rehabilitation Action Plans are implemented in most of the projects. Some projects of NTPC were already fully or substantially developed by
the time the 1993 R&R Policy was implemented. The company did a re-assessment of the activities in the older projects and carried out a retrofit R&R
operation to bridge the gaps wherever they had occurred. NTPC has formulated an Initial Community Development (ICD) policy to take up community
development activities in greenfield/expansion projects. Strong commitment to education.
Environmental management
Score:
1
NTPC has decided to set aside 1% of its distributable profit for research and development including 0.5% for research activities related to clean coal
and climate change initiatives. An Efficiency Management System (EMS) has been implemented at all stations to focus on periodic performance
evaluation, analysis and development of action plans for performance restoration. All NTPC power stations have been certified for ISO 14001 & OHSAS
18001. According to the company environmental parameters are monitored, but no data on emissions is provided.
Climate change management
190,629,375.00
19,123.00
6,655.00
Provision of advanced treatment facilities in its Liquid Waste Treatment Plants (LWTP), installation of recycling systems for ash pond effluent called Ash
Water Recirculation System (AWRS) and installation/ operation of closed cycle condenser cooling water systems with higher Cycle of Concentration
(COC) are some of the measures implemented in most stations. Ash Utilization is one of the key concerns at NTPC. NTPC has a strong water and
waste treatment program.
Score:
No emissions data available. NTPC has decided to set aside 1% of its distributable profit for research and development including 0.5% for research
activities related to clean coal and climate change initiatives.
A fossil fuel fired power plant using Super Critical Technology has been approved by UNFCCC for CDM credits.
The Center for Power Efficiency and Environmental Protection (CenPEEP), set up with technical assistance of USAID/USDOE, has a mandate to
reduce GHG emissions per unit of electricity generated by improving the overall performance of coal-fired power plants. Various state-of-the-art
technologies and practices for improvement in efficiency and maintenance have been demonstrated in local conditions and disseminated to power
stations through hands-on-training, guidelines and workshops.
An Efficiency Management System (EMS) has been implemented at all stations to focus on periodic performance evaluation, analysis and development
of action plans for performance restoration.
International cooperation for climate change has expanded with signing of an agreement between Ministry of Power, NTPC Ltd. and Japan International
Agency for Cooperation (JICA) to undertake a Study on enhancing Efficiency of Operating Thermal Power Plants in NTPC-India.
The new NTPC Energy Technology Research Alliance (NETRA) is envisioned as a state of- the-art centre for research, technology development
and scientific services in the domain of electric power. NETRA has filed 12 patent applications for various activities like assessment of high voltage
transformers, fly ash based utensil cleaning powder, CO2 capturing Zeolites from flue gas; etc
Health & Safety management
The company states that it has internal checks to prevent complicity in human rights abuses.
Corporate governance
Score:
Score:
Separation of Chairman & CEO: no, percentage of independent board members: 50%, percentage of independent audit committee members: 80%,
percentage of independent remuneration committee members: ND, percentage of independent nomination committee members: ND, disclosure of
executive and board remuneration: partly, comments: directors are appointed by the government of India.
Controversies
Gravity:
Medium
Think-tank Center for Global Development issued its list of the worlds worst polluting companies, with Chinas state-run Huaneng Power International
ranking at number one. The list, which is compiled on the basis of factors including carbon emissions, energy generated, intensity, and usage of fossil,
hydro, nuclear and other renewable sources puts Indias NTPC third. NTPC is mentioned by NGO International Rivers as being involved in planning
dams in the Himalayas that destroy the livelihood of the local population.
In January 2008, three people were killed and others injured when police opened fire on hundreds of local people protesting outside NTPCs plant in the
state of Bihar, India. The protesters were demanding electricity supplies from NTPC following acute power shortages in the state. The state government
accused Indias UPA-ruled government of discriminating against non-UPA ruled states in the electricity crisis.
In June 2007, NTPC has opposed an Environment Ministrys proposal about early disposal of fly ash and lesser storage time. The Environment Ministry
suggested a time line for the clearing of existing fly ash. Fly ash is a significant water, air, and soil pollutant.
Community investment
Extensive community development programs around its operating stations. NTPC has formulated specific guidelines for the welfare of Project Affected
Persons (PAPs). It has also undertaken community development activities in and around various projects. NTPC has formulated an Initial Community
Development (ICD) policy to take up community development activities in greenfield/expansion projects. NTPCs community investments are strategic.
Note 1: ED stands for environmental damage
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 72
Business Model
Corporate governance
Score:
Separation of Chairman & CEO: no, percentage of independent board members: 50%, percentage of independent audit committee
members: 67%, percentage of independent remuneration committee members: ND, percentage of independent nomination committee
members: ND, disclosure of executive and board remuneration: no, ownership structure: The Indian government owns 86.36%,
comment: 2 out of 12 are government sent directors.
Gravity:
Medium
Significant involvement in Burma: In July 2008 the Export-Import Bank of India signed a line of credit agreement with Myanmar Foreign
Trade Bank and the Power Grid Corporation of India Ltd. was to undertake the construction of three transmission projects in Myanmar.
In February 2009, Power Grid and state-run Transmission Corporation were criticized for allegedly attempting to erect pylons on
community property, without compensating the land owners.
Community investment
2009
71600
122
POWERGRID organizes regular health camp and blood donation camp in collaboration with leading medical institutes for free medical
check-up of villagers and also provide free medicines. Apart from this women organization of POWERGRID also organizes various
welfare camp for the welfare of communities by providing vocational training and distribution of articles like swing machines, cycles etc.
232,957.00
184.00
8.00
The company seems to have a solid operational track record. Focusing purely on transmission, Power Grids environmental impact is
automatically a lot lower than the one of power generating utilities. The companys is involvement in Burma may be an issue for some
responsible investors.
OHSAS 18000:1999 for health and safety management. Environment & Social Policy Statement
was revised in 2005. Its based on the basic principles Avoidance, Minimization and Mitigation.
Gives information on employee training and development.
Controversies
ESG Summary
Transmission asset
Transmission lines (ckt km)
Number of sub-stations
Generation Mix Plans Disclosed
11
1%
1%
Score:
Some CSR information on the company website and in AR. Certified to Social Accountability Standard SA 8000:2001.
Environmental management
Score:
Integrated management system: ISO 9001:2000 for quality, ISO 14001:2004 for environment management. Development of power
lines has a huge impact on forests, recently forest involvement which was about 6% in 1998 has been brought down to 2%. Power Grid
consistently outperforms the efficiency targets the government sets in MoUs. Current principles guiding environmental management
are in line with government regulation. Power Grid mentions that it is investing in R&D on Super Grid comprising 1200kV UHVAC,
which would be more energy efficient.
Ownership structure
Company type
Business Model
Environmental management
Score:
Reliance has an environmental board committee. Information on environmental management is available on the company website.
Yearly publication of CO2 emissions. Flue Gas De-sulphurisation seems to have been introduced in 2008/09. No/little mention of
climate change.
Score:
no mention of cliate change. Both the Flue Gas De-sulphurisation units were in service throughout the year with SOx absorption more
than 90% as stipulated. Flue Gas De-sulphurisation seems to have been introduced in 2008/09 as SOx levels dropped from 29.4 the
year before to 3.92. Further detailed emissions data on p38/39 of AR. There is no reportable accident in more than 17.5 million man
hours
65%
92%
No response
Score:
Reliance Infrastructure formulated a health and safety policy to confirm its commitment to H&S. No reportable accident in more than
17.5 million man hours.
ESG Summary
Corporate governance
Reliance Infrastructure has done some efforts in environmental and h6S management and scores in the mid-range of the sector. It reports
on emissions data and has reduced SOx emissions significantly by installing flue gas desulphurization systems. On the negative side, the
company does not address climate change as an issue and has high losses in its distribution system.
History of Corporate Governance problems due to controlling family diagreement (the two Ambani brothers) Separation of Chairman &
CEO: no, percentage of independent board members: 50%, percentage of independent audit committee members: 100%, percentage
of independent remuneration committee members: 100%, percentage of independent nomination committee members: 100%,
disclosure of executive and board remuneration: yes.
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
2009 (MW)
433.32
499.26
9.42
942.00
2009 (%)
46%
53%
0%
0%
0%
0%
1%
100%
Controversies
Only some general criticism on planned hydro projects in India that displace people and destroy local livelihoods.
Community investment
6036127
19123
6655
10282
103%
304%
Score:
Gravity:
Reliance Infrastructure Ltd. has formulated policies for social development. These policies have resulted in both strategic and
philantropic investments in its direct community.
Score:
11
Low
Ownership structure
Reliance ADA Group (47.68%), AAA Project Ventures Pvt. Ltd. (42.23%),
other institutional investors
(5.58%), other non-institutional investors (9.64%)
Company type
Business Model
Asian Utilities Environment and Social Rating
Corporate Governance Rating
CDP disclosure
Environmental management
Reliance Power does not yet have any operational power capacity, which makes it difficult to assess its performance in managing
environmental and social issues. The company claims to have a pro-active Rehabilitation and Resettlement policy in place, but there is
still a petition pending with the High Court amongst others because of claims of no proper public involvement processes.
Corporate governance
Separation of Chairman & CEO: yes, percentage of independent board members: 50%, percentage of independent audit committee
members: 75%, percentage of independent remuneration committee members: 67%, percentage of independent nomination committee
members: 67%, disclosure of executive and board remuneration: ND.
Gravity:
Medium
Community investment
0
0
0
Score:
Reliance Power does not yet have any operational power capacity, which makes it difficult to assess its performance in managing
environmental and social issues. Reliance Power is committed to adopting Rehabilitation & Resettlement (R&R) policies which go
beyond the norms set out by the Government and to ensure that they meet the development needs of the local community. Claims to
follow a participatory development-oriented approach that strengthens the bond with the local communities.
Score:
Large-scale development of hydro power in Arunachal Pradesh has been heavily critizised for destroying the livelihoods of local people.
Some sources criticise the eligibility of coal-fired power plants for CDM credits. A petition with the High Court is still pending that ask the
court to withdraw the Environmental Impact Assessment of Reliance Powers 1000MW Siyom Hydro Electric Project.
0
0
0
Score:
Controversies
ESG Summary
Score:
Applying for CDM credits for part of their projects including Sasan and Krishnapatnam Ultra Mega Power Projects (UMPPs) as the
projects will employ supercritical coal technology. Also its hydroelectric power projects under implementation and the gas based
generation projects will apply for CDM credits. Some sources criticise the eligibility of coal-fired power plants for CDM credits. No
emissions data
Health & Safety management
Safe power generation is one of Reliance powers missions
FY 2012 (MW)
2,160.00
2,160.00
Applying for CDM credits for part of their projects including Sasan and Krishnapatnam Ultra Mega Power Projects (UMPPs) as the
projects will employ supercritical coal technology. Also its hydroelectric power projects under implementation and the gas based
generation projects will apply for CDM credits. No emissions data available yet.
IPP
development, construction and operation of power projects
10%
75%
Not requested to disclose by CDP
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Score:
A compensation package for project affected families is being developed with inputs from various key stakeholders, including senior
district officials, representatives of local communities and credible outside agencies such as The Energy Research Institute (TERI).
Note 1: ED stands for environmental damage
Ownership structure
Company type
Business Model
Score:
Score:
Tata Power has a Health & Safety Policy, but certification of the workplace safety system is missing.
Corporate governance
Separation of Chairman & CEO: yes, percentage of independent board members: 50%, percentage of independent audit committee
members: 67%, percentage of independent remuneration committee members: 33%, percentage of independent nomination committee
members: ND, disclosure of executive and board remuneration: yes.
730
26%
112%
Controversies
Gravity:
High
Critisism against the World Bank and Tata Power for promoting Tatas 4000MW super-critical coal project as clean. Also, opponents to
the project at a local village claim that it will be detrimental to the local environment and affect the livelihoods of about 20,000 villagers.
Community investment
Transmission: 1200 km, distribution: 800,000 customers, generation availability wind: 94-99%, AT & C losses (FY 09): 15.2%,
Transmission grid availability: 99.31%. Generation availabilities and plant load factors for the thermal power plants. For its North Delhi
distribution subsidiary owned jointly with the Delhi government, the AT & C losses have been reduced from 18.5% at the end of FY08
(53.4% at the time of takeover of the business in July 2002) to around 15.2% at the end of FY09, against the regulatory target of
20.35% at the end of FY09 and 17% at the end of FY11. This has been achieved by measures like energy audits, replacement of old
meters with theft-proof electronic meters, automated meter reading, metering of previously unmetered consumers who were earlier
charged a flat rate, aggressive enforcement and recovery and awareness drives. Transmission grid availability in Mumbai was 99.31%
as against MERC norm of 98%. Powerlinks Transmission Limited, a joint venture with Power Grid Corp of India, that delivers electricity
from Bhutan, has 99.73% average availability
Through Tatas Corporate Sustainabiliy Initiatives program many strategic investments have been made in health care, education,
clean water and accessibility.
Addresses the issue in its AR and on the web and has a clear strategy on how to deal with climate change. This includes the
application of super-critical coal technology, further exploring renewables opportunity, working towards energy efficiency in plants and
offices, awareness raising on energy savings in schools. Some of its wind projects are CDM registered and they are applying for the
new super-critical coal project as well. Publicly available data on CO2 emissions would be appreciated. Apparently Tata Power has
commissioned Ernst & Young to measure their carbon footprint.
Health & Safety management
12,084,101.00
4,267.00
422.00
Score:
2009 (%)
6%
42%
0%
3%
26%
16%
0%
6%
100%
Score:
Addresses the issue of climate change in its AR and on the web and has defined a strategy on how to deal with it. Tata Power has
invested heavily in pollution control equipment. Tata Power: will strive to go beyond simple compliance and excel in its environmental
performance. Initiatives for voluntary reduction in SO2, SPM, NOx and CO2 emissions are a part of ongoing strategy. This includes
the application of super-critical coal technology, further exploring renewables opportunity, working towards energy efficiency in plants
and offices, awareness raising on energy savings in schools. Unfortunately no underlying data is provided. Some of its wind projects
are CDM registered. No emissions data yet. No environmental management system in place.
Tata Power performs relatively well in our ESG scoring. Tata Power has a clear strategy on how to deal with climate change and
initiatives to reduce emissions of SO2 and NOx. The company has significantly lowered its losses in its Delhi distribution system. It
plans to publish its second sustainability report in 2009. But there is significant room for improvement: Disclosure on GHG emissions
would be appreciated. And in spite of its new super-critical coal projects application for CDM credits, its generation mix will become
more CO2 intensive with its significant investment into coal fired generation.
Published a sustainability report in 2003 according to GRI guidelines, plan to publish another one in 2009. Tata Power also publishes
its Corporate Sustainability Policy, its environmental and health & safety policies. Tata Power has created a Sustainability Council
(SC) under the leadership of Mr.Agrawala, Executive Director (ED) of Business Development and Strategy. The whole Tata Group has
definitely worked well on their image: In BTs 2008 survey of corporate leaders in sustainable development, Tata Group ranked by far
first with 31% vs Reliance with 13% at the second place
Environmental management
ESG Summary
2009 (MW)
167.10
1,169.70
83.55
724.10
445.60
167.10
2,785.00
85%
67%
Yes, but not public
Generation type
Gas
Coal
Biomass
Steam (Industrial)
Oil
Hydro
Nuclear
Renewable
Total
Score:
Ownership structure
Company type
Business Model
Environmental management
0%
33%
No response
Number of T&D customers: 1.97 million, T&D losses: 7.51% (low compared to national average). Torrent Power Limited has one of the
lowest T&D losses in the country. Took over the Bhiwandi Distribution Franchise in Dec 2006. Here T&D losses are still significantly
higher. PAF and PLF of its 2 generation plants were 93.85% and 91.55%
Score:
Comprehensive information on Torrents CSR program available on its webpage. However its CSR program is mainly focused on
community investments. Apparently very efficient in disaster management, such as during floods or an earth quake
Score:
Score:
Separation of Chairman & CEO: no, percentage of independent board members: 64%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: ND, percentage of independent nomination committee
members: ND, disclosure of executive and board remuneration: partly, comment: 1 director by Gov of Gujarat.
Corporate governance
2009 (MW)
2009 (%)
100.00
20%
400.00
80%
0%
0%
0%
0%
0%
500.00
100%
1147.5 MW under implementation, advanced class CCPP based on
LNG (eligible for CDM carbon credits). Another 6.875GW in early
planning stages: 2GW of coal, 4.875GW of gas
213
3,750,061.00 ED1 cost (m USD)
4,149.00 ED impact on 2008 revenue
24%
131.00 ED impact on 2008 EBITDA
147%
Score:
laggards in our assessment. Its generation capacity is dominated by coal. On the positive side, its T&D losses are among the lowest in
the country at only 7.5% for the districts that they own for some time.
Environmental initiatives include: installation of 90 m. tall chimneys for better dispersion of flue gases, use of very high efficiency
electrostatic precipitators to remove fly ash from gases emitted from chimneys, regular monitoring of pollutants like Sulfur Oxides,
Nitrogen Oxides and Stack Pollution Monitoring in flue gases. But no systematic information on environmental performance.
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Score:
Controversies
None found
Community investment
Gravity:
Low
Torrent made several philantropic investments through Sparsh, its CSR Initiative, it paid for the construction of a public garden in
Gujarat, donated money in the aftermath earthquakes, helped in the construction of a hospital. These investments were not strategic.
Note 1: ED stands for environmental damage
Business Model
Kepco scores as a leader in environmental issues among the sector, but there are still some open questions regarding their ESG
performance. The company reports very detailed on their CO2 emissions. They have a voluntary target to cut the 2000 emission
intensity of 0.424 kgCO2/kWh by 30%. But as of 2008, the figure has risen to 0.459 kgCO2/kWh, so it is not clear they will achieve their
target in spite of a planned increase in nuclear and renewables capacities. Whilst they have been doing relatively detailed sustainability
reporting until 2007, it is not clear if they still follow up with the activities described there. There is more environmental information on
the level of its generation companies, but here quality varies widely. The company has some involvement in Burma, which may be a
problem for some responsible investors. Corporate Governance is lacking in transparency.
KEPCO has installed comprehensive waste water treatment systems in its plants.
2009 (MW)
13,097.60
24,230.56
4,584.16
4,453.18
18,991.52
65.49
65,488.00
2009 (%)
20%
37%
0%
7%
6.80%
29%
0.10%
100%
Environmental management
Score:
7,538.00
6,661.00
Kepco produces 27% of Koreas CO2 emissions. Climate change related targets: Kepco plans to increase the number of nuclear power plants from
the current 20 to 28 in 2020 and the portion of power generated from renewable energy sources to 9.96% in 2020. KEPCO plans to bring down the
average emission per unit generated to: 0.296 kgCO2/kWh in 2020 (from 0.424 kgCO2/kWh in 2009). In 2005, KEPCO and the GENCOs established
the Climate Change Commission to formulate comprehensive measures against climate change. The consultative body focuses on climate change and
renewable energy development, which comprises the Climate Change Convention Working Committee and the Renewable Energy Working Committee.
Score:
Kepco produces 27% of Koreas CO2 emissions. At the Copenhagen climate conference it will be decided whether Korea will become an Annex I
country.
CO2 emission intensity: 459 ton-CO2e/GWh. 5% increase in CO2 emissions vs last year with 4.85 increase in electricity generation.
Climate change related targets: Kepco plans to increase the number of nuclear power plants from the current 20 to 28 in 2020 and the portion of power
generated from renewable energy sources from 1.26% in 2000 to 9.96% in 2020. Voluntary target: the 2000 emission unit of 0.424 kgCO2/kWh will be
brought down to 0.296 0.424 kgCO2/kWh in 2020, cutting the figure by 30%. They are planning a carbon emissions reduction through the expansion of
renewable and nuclear energy plants. The amount of power generated from renewable energy sources is expected to go up from 3,196 GWh in 2000 to
47,637 GWh in 2020 while electricity generated from nuclear energy is to increase from 108,964 GWh in 2000 to 249,847 GWh in 2020.
KEPCO operates a high efficiency equipment support system for customers to increase energy efficiency and is developing IT-based demand-side
management technologies including remote management of building heating/cooling load.
It is are establishing one of the worlds first Smart Grid verification complex on Cheju Island for completion in 2013
In 2005, KEPCO and the GENCOs established the Climate Change Commission (Chairman: Executive Vice President, seven members: the
management of generation companies and the President of Korea Electric Power Research Institution, Secretary General: Vice President of the
Technology and Policy and Planning Department) at the Power Group level to formulate comprehensive and joint measures against climate change.
The consultative body focuses on climate change and renewable energy development, which comprises the Climate Change Convention Working
Committee and the Renewable Energy Working Committee. The Committees meet at least once every quarter.
Very detailed CO2 emissions data. Measures to improve energy efficiency: have distributed high-efficiency equipment and LED lighting devices to
consumers while improving transmission and distribution loss rate, implementing an energy portal system for more comprehensive energy management,
running an odd-even car restriction system and promoting the BMW (bicycle, metro and walking) Movement.
Score:
Score:
Corporate governance
KEPCO provided detailed sustainability reports following GRI guidelines between 2005-2007. In 2005, KEPCO introduced a sustainability management
framework that focuses on 4 key areas; economy, environment, society and human resources. The company publishes very detailed information on their
CO2 emissions. Have minimized the emission of harmful substances by installing desulphurization facilities and comprehensive waste-water treatment
systems in its power stations. Relatively detailed information on environmental management at the level of its generation companies. But quality varies,
with some of the Gencos quite proactive and providing updated data, whilst others seem to have updated the pages in 2004 or 2005 and not since
Separation of Chairman & CEO: no, percentage of independent board members: ND, percentage of independent audit committee members: 0%,
percentage of independent remuneration committee members: ND, percentage of independent nomination committee members: ND, disclosure of
executive and board remuneration: no
Score:
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
8,610.00
34%
320%
Controversies
Gravity:
High
In 2008 there were accusations of corruption at Kepco. Some involvement in Burma: They performed a Power System Development Study in the
country. Its partly owned subsidiary KOGAS entered into a gas field development project in the A1/A3 Block of Myanmars northwestern sea in
November 2001, which is it exploring with a JV now.
In mid 2009, concerns were raised about the environmental performance of KEPCOs coal fired power plant in Naga City in the Philippines. For example
NGO EcoWaste Coalition is opposing a planned coal ash dump site, which would manage coal combustion waste from the coal power plant in the
Philippines, as the NGO is worried about potential toxic releases and possible health and environmental problems.
Community investment
KEPCO Social Service Teams perform philantropic social work. Through Mecenat KEPCO invests in art projects. KEPCO commits itself to social service
activities, which are now referred to as The Third Management.
Note 1: ED stands for environmental damage
Ownership structure
Company type
IPP
Business Model
18,433,553.00
7,354.00
644.00
Corporate governance
Score:
Score:
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 33%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 33%, percentage of independent nomination
committee members: 67%, disclosure of executive and board remuneration: partly, comment: CEO and executives join all but one audit
committee meeting. Legal dispute with Tenaga Nasional Berhad on metering.
Gravity:
Low
Involvement in Burma via its power plant engineering subsidiary that has built 2 small hydropower plants in Burma. The projects are
completed.
Community investment
Under the New Straits Times School Sponsorship Programme MMC aims to promote the study of English. Other investments are
philantropic in nature and can be seen as part of MMCs marketing campaign.
Note 1: ED stands for environmental damage
1,022.00
41%
110%
MMC presents itself as an environmentally conscious company, however there is no publicly disclosed information on this. No climate
change management activities.
Controversies
0%
75%
Not requested to disclose by CDP
ESG Summary
Disclosure on ESG issues is insufficient and the company scores among the laggards in our assessment
Generation type
2009 (MW)
2009 (%)
Gas
1,356.91
53%
Coal
1,203.29
47%
Biomass
0%
Oil
0%
Hydro
0%
Nuclear
0%
Renewable
0%
Total
2,560.20
100%
Generation Mix Plans Disclosed
no disclosure
Environmental management
Score:
Business Model
35%
75%
Yes
ESG Summary
Disclosure on ESG issues is insufficient and the company scores among the laggards in our assessment. Sarawak Energy has answered
the CDP questionnaire, where the company discloses its CO2 emissions but give relatively little further information. Sarawak Energy is
subject to very strong criticism on its hydro expansion plans on Borneo.
2009 (MW)
546.10
482.60
152.40
88.90
1,270.00
2009 (%)
43%
38%
0%
12%
7%
0%
0%
100%
Score:
Controversies
241
61%
151%
Gravity:
High
heavily criticised for the development of hydro dams: In January 2009, the Malaysian government has given its approval for Sarawak
Energy and Tenaga Nasional to take over the operation of the controversial Bakun hydroelectricity project and develop the proposed
700 kilometre undersea transmission cable link from eastern Sarawak state on Borneo island to Peninsular Malaysia. The stateowned company Sarawak Hydro is expected to complete construction and commissioning of the dam in 2010. Environmentalists have
continued to oppose the project due to the dams flooding of an area the size of Singapore, the forced relocation of 10,000 people,
associated environmental impacts, and concerns about the earthquake-prone nature of the undersea cables route.
Apparently, Sarawak Energy has a second highly controversial dam project under planning, i.e. the 220MW Tutoh dam, which might
partly flood the UNESCO World Heritage-status of Mulu National Park in Sarawak. Opponents, including NGO Bruno Manser Group,
have also stated that it will force the relocation of local indigenous groups and affect the native bat population.
Sarawk Energy has plans for 11 further hydro plants on Borneo, despite the fact that Bakun dam alone has the capacity to produce
significantly more power that consumed today in Sarawak. The hydropower projects scheduled for the 2008 to 2020 period by
Sarawak Energy have a power generation capacity of 7000 MW. Sarawaks energy consumption amounted to 1120 MW in 2005 and
is expected to rise to 1550 MW by the year 2010. While the Sarawak government rushes to set up energy-intensive industries, excess
production is planned for export to West Malaysia, Brunei and Kalimantan.
In contrast to mainland Malaysia, apparently in Borneo, Environmental Impact Assessments do not include the need for public
consultation. In Sarawak, power, industrial and palm oil projects have frequently been criticised to be harmful to the environment,
intransparent and not respecting the rights of indigenous people.
Separation of Chairman & CEO: yes, percentage of independent board members: 50%, percentage of independent audit committee
members: 67%, percentage of independent remuneration committee members: 67%, percentage of independent nomination
committee members: some as remuneration committee, disclosure of executive and board remuneration: partly.
Environmental management
Little information given
Score:
Corporate governance
4349714
11075
152
The only Malaysian electric utility and one of the few Asian utilities to have answered CDP9, already answered the 2008 questionnaire.
Emissions data given for 2007: 3`944`381 t CO2 emissions vs 3,537,286 metric tons CO2 in 2005. We would appreciate it, if for the
2007 data, there was also disclosure on energy generated to be able to compare CO2 intensity. Registering their first CDM project
based on CC gas turbines. State that they undertake the following activities to reduce CO2 emissions / increase energy efficiency, but
no further concrete information is given:
(i) Conversion of Open Cycle to Combined Cycle Power Plant.
(ii) Implementing biomass power generation.
(iii) Rehabilitation of mini hydro stations and construction of new ones.
(iv) Efficiency Improvement for Power Plants.
(v) Proposal for Rural Stand-alone Renewable Hybrid Systems.
(vi) Incorporate Energy Efficiency for New Office Buildings.
(vii) Study the possibility of adopting carbon capture and sequestration technologies.
(viii) Study the possibility of utilizing power plant CO2 emissions for algae cultivation to produce biofuel in future.
(ix) Adopting fuel cell technologies as cleaner way to generate electricity and efficient use of gas fuel
Have one CDM project, where they converted two existing open-cycle gas generating sets in the Bintulu Power Station to one block
of combined-cycle power generating plant with a total capacity 330 MW of which 110 MW is new generation. In the 2008 annual
report they state that this project is eligible for CDM because it generates electricity without polluting the environment with greenhouse
gases, which is not quite correct as it just generates less emissions.
Health & Safety management
No mention of Health & Safety management.
Score:
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Score:
Score:
Community investment
Sarawak has organized sports events and launched an English development program, in addition to ongoing community support
projects of a philantropic nature.
Note 1: ED stands for environmental damage
Note 2: Have also commenced the construction of the 944 MW Murum Hydro Electric Power project. They state in the 2008 AR, that
the construction of Limbang hydro dam (195MW) Trusan and Lawas hydro dam (300 MW), Baleh (1400 MW), Metjawah (300 MW)
and others will follow.
Ownership structure
Company type
Business Model
Asian Utilities Environment and Social Rating
Corporate Governance Rating
CDP disclosure
Power generation
investment holding company, engaged in power generation, gaming,
leisure and property investment. Power generation contributes around
80% to operating profit
33%
83%
No disclosure
4,562,723.00
5,424.00
159.00
199.00
24%
48%
Tanjong owns and operates a water desalination plant, but doesnt refer to its treatment of waste and water.
Only information on the usual community programs. No mention of CSR in leisure, power and gaming operations
Gravity:
Score:
10
Environmental management
Score:
Controversies
Score:
Comment: has won awards for good IR and CG, e.g. Finance Asia 2006 No 4 in Best Corporate Governance, AsiaMoney 2008
No1 Best IR in Malaysia etc. Separation of Chairman & CEO: yes, percentage of independent board members: 60%, percentage
of independent audit committee members: 67%, percentage of independent remuneration committee members: 67%, percentage
of independent nomination committee members: 67%. Disclosure of executive and board remuneration: partly, ownership structure:
Usaha Tegas Sdn Berhad owns/controls 30.9%, Ultimate Corporation Sdn Berhad owns 7.53%, Marlestone Investment Limited 4.0%, 6
others <1%.
Score:
Corporate governance
The Groups power plants in Malaysia, Egypt, Abu Dhabi and Bangladesh continue to maintain their OHSAS 18001 Occupational
Health and Safety Management System. Committed to implementing stringent Occupational Safety and Health (OSH) practices. They
benchmark themselves against
current international best practices. Claim that they roll out fire drills, first aid training, cardiopulmonary resuscitation training, safety
and health talks as well as plant evacuation exercises at various properties and that they ensured that equipment and building safety
systems were functioning properly and were well maintained.
2009 (%)
100%
0%
0%
0%
0%
0%
0%
100%
Score:
Tanjong Publics generation mix is relatively favourable with respect to CO2 emissions as it is based to 100% on natural gas. But its
disclosure on ESG issues is insufficient and the company scores among the laggards in our assessment.
2009 (MW)
3,951.00
3,951.00
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
The Groups power plants in Malaysia, Egypt, the UAE and Bangladesh are ISO 14001 Environmental Management Systems
certified. They benchmark themselves against current international best practices. Claim that they roll out fire drills, first aid training,
cardiopulmonary resuscitation training, safety and health talks as well as plant evacuation exercises at various properties and that they
ensured that equipment and building safety systems were functioning properly and were well maintained. the Groups power plants in
Malaysia, Egypt, the UAE and Bangladesh are ISO 14001 Environmental Management Systems certified
Community investment
Some strategic investments in the form of educational scholarship at all leves of schooling. However most of the community
investments are philantropic.
Note 1: ED stands for environmental damage
Low
Business Model
2009 (%)
45%
34%
0%
4%
17%
0%
0%
100%
1,758.00
23%
78%
Score:
Some information on CSR activities and environmental management on the companys website and in its annual report. Proud of past
achievements on rural electrification especially in remote islands. Focus is on community programs and philanthropy.
Score:
Gravity:
High
Controversies: high
high: repeated criticism for planned coal-fired power plants: In 2009, Malaysian companies Jimah Energy Ventures and Tenaga
Nasional have been criticized for the proposed Jimah coal-fired power plant to be located in Port Dickson in Malaysias state of
Selangor. The NGO Malaysian Nature Society, local residents and tourism developers claimed that the plant would have ecological
effects by disturbing marine ecosystems and causing declines in fish populations, add to climate change and pose health risks by
emitting pollutants, and affect the eco-tourism potential of the area. Jimah Energy Ventures stated that approval was obtained from the
Department of Environment in January 2005. Also, in 2009, locals on Sabah have objected to Tenaga Nasional Bhds (TNB) proposed
coal-fired power plant, which allegedly contradicts the objectives of The National Green Technology Policy. They are concerned about
potential pollution they believe would be caused by the plant.
In Jan 2009, The Malaysian government has given its approval for Sarawak Energy and Tenaga Nasional to take over the operation
of the controversial Bakun hydroelectricity project and develop the proposed 700 kilometer undersea transmission cable link from
eastern Sarawak state on Borneo island to Peninsular Malaysia. The state-owned company Sarawak Hidro is expected to complete
construction and commissioning of the dam in 2010. Environmentalists have continued to oppose the project due to the dams flooding
of an area the size of Singapore, the forced relocation of 10,000 people, associated environmental impacts, and concerns about the
earthquake-prone nature of the submarine cables route.
Some general information on environmental management, e.g. one plant ISO 14`001 certified, other plants are now implementing ISO
14001 based EMS. Its disappointing that, as Malaysias largest power producer, the company does not at all address issues such as
SO2 emissions, or use of its waste ash in coal fired plants
Controversies
The companys disclosure on ESG issues is insufficient and it scores among the laggards in our assessment. System losses in its T&D
systems are in the middle of the sector in Asia.
Separation of Chairman & CEO: yes, percentage of independent board members: 56%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 60%, percentage of independent nomination
committee members: same are remuneration committee, disclosure of executive and board remuneration: partial
ESG Summary
2009 (MW)
5373.9
4060.28
0
477.68
2030.14
0
0
11,942.00
Score:
Corporate governance
Score:
15%
67%
No response
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Environmental management
Community investment
Tenaga invests heavily in education. The Tenaga Nasional Foundation offered around 900 loans to univeristy students. This investment
is strategic.
Note 1: ED stands for environmental damage
Ownership structure
Company type
Power generation
Business Model
Environmental management
2009 (MW)
2009 (%)
2,164.05
45%
384.72
8%
0%
2,260.23
47%
0%
0%
0%
4,809.00
100%
none disclosed, would probably be through acquisition
2,327,945.00 ED1 cost (m USD)
1,723.00 ED impact on 2008 revenue
81.00 ED impact on 2008 EBITDA
Score:
YTL invests in its human capital and ensures a work-life balance through its Vibrancy Committee. However it does not report on health
and safety management.
Corporate governance
Score:
10
Comment: Won awards for good IR and CG, e.g. Finance Asia 2006 No 4 in Best Corporate Governance, AsiaMoney 2008 No1 Best
IR in Malaysia etc. Separation of Chairman & CEO: yes, percentage of independent board members: 60%, percentage of independent
audit committee members: 67%, percentage of independent remuneration committee members: 67%
Percentage of independent nomination committee members: 67%, disclosure of executive and board remuneration: partial.
Controversies
No controversies found
Gravity:
Low
4,037.00
299%
513%
NB The main activity for YTL Power International is selling water and disposing of waste water. There is a significant external cost for
water abstraction which makes up 96% of the total direct environmental cost of YTL Power here.
Score:
YTL Corp. publishes a annual sustainability report. Due to its broad business portfolio, it is difficult to keep track of the power divisions
performance and it is unclear if CSR aspects are addressed systematically. However, YTL seems serious about CSR reporting.
YTL Power Internationals ESG performance scores in the mid-range when compared to the sector. Its parent company publishes an
annual sustainability report. There is detailed emissions data on some of the companys plants, but is shows little improvement. Its
acquisition of Power Seraya in Singapore has changed its generation mix towards fuel oil, even though the company prefers using its gas
fired plants in Singapore.
Score:
YTL is quite explicit they recognize climate change as a clear risk and want to take measures to prevent it. work on raising awareness
on climate change nationally. Acquired a carbon credit consultancy in 2008. Actively pursuing to improve operating efficiency in ist Jawa
power plant. Detailed GHG emissions reporting for some parts of its business, e.g. the Wessex Water utility in the UK. Report some
emissions data - NOx, SO2 and PM for its Jawa plant. But little improvements shown to date.
45%
83%
No request for disclosure by CDP
Emissions data: yes, NOx, SO2 and PM for its Jawa plant. But little improvement in performance. Malaysian plants follow national
and World Bank emission limits. Jawa plant is ISO 14`001 certified and has received a Green Rating by the Indonesian Ministry of
Environment under its Environmental Rating Programme. Active efforts to improve operating efficiency in its Jawa power plant. Reuse
of fly ash at 76% in 2006, from 2006 onwards use of more than 98% at its Jawa power plant. Malaysian plants follow national and World
Bank emission limits. Jawa plant is ISO 14`001 certified and has received a Green Rating by the Indonesian Ministry of Environment
under its Environmental Rating Programme
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
CO2 emissions (tonnes)
CO2 intensity (tonnes/ m USD rev.)
CO2 damage cost (m USD)
Score:
Community investment
YTL supports arts and culture in Malaysia and contributes to promote education. Scholarships are given to talented students to pursue
higher education at the Swiss German University located inTangerang in Indonesia.
Note 1: ED stands for environmental damage
Business Model
0%
50%
No response
Aboitiz Power has a very high share of renewables in its generation portfolio, and therefore a relatively low carbon footprint. Regarding its
internal ESG performance, the company scored quite low, but one has to consider that it is the smallest company in our universe.
389,605.00
1,481.00
14.00
Gravity:
AP and its subsidiaries donated to or implemented projects ranging from education-related assistance, community infrastructure,
livelihood opportunities, rural electrification, to environmental projects for the communities within the areas where the different AP
businesses operate.
Note 1: ED stands for environmental damage
23
9%
35%
Average system loss (2 largest systems): 8.7%, average net capacity factor Hydro (H1 09): 35%
Score:
Some reporting and CSR information in shareholder presentation. AP publishes a five page sustainability report together with its AR, but
this is mostly focused on philanthropy and the Aboitiz foundation.
Environmental management
Score:
0
No emissions data. Very little information on environmental management which is disappointing as the company runs old diesel plants and
is involved in building a new coal plant.
Community investment
Score:
Low
In 2008, Aboitiz Equity Ventures faced opposition against the construction of a new hydro facility, the Tudaya hydro power plant which
allegedly threatens the land of an indigenous tribe. Yet, it is claimed that each time the group expresses complaints, the military
conducts operations, causing fear. According to the opponents, the plant threatens land and water biodiversity.
NB The carbon intensity seems high for a company with such a large proportion of power coming from renewables. Trucosts data includes
some additional fossil fuel capacity at the Group Subsidiary level - absolute ownership of this additional capacity is unclear wihtout further
engagement with the company
Comment: AsiaMoney 2009 awards as best managed mid-cap in the Philippines, mention code of ethics. Separation of Chairman &
CEO: yes, percentage of independent board members: 22%, percentage of independent audit committee members: 33%, percentage of
independent remuneration committee members: 33%, percentage of independent nomination committee members: 33%, disclosure of
executive and board remuneration: partly, ownership structure: 76% owned by Aboitiz Equity Ventures.
Controversies
2009 (MW)
2009 (%)
0%
75.84
6%
0%
151.68
12%
328.64
26%
0%
707.84
56%
1,264.00
100%
42.5 MW hydro, 64 MW coal, further expansion plans in coal fired
plants
Score:
Corporate governance
ESG Summary
no CDP answer, no efficiency data for plants, no targets, no info at all. CDM credits for new hydro plant, stress that the new alternative
energies law should be positive for their business
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable (geothermal)
Total
Score:
Ownership structure
Company type
Generation
Business Model
Environmental management
2009 (MW)
2009 (%)
0%
0%
0%
0%
112.50
9%
0%
1,198.50
91%
1,311.00
100%
300MW geothermal, 84MW wind
Score:
Gravity:
Community investment
EDCs CSR community programs rests on four pillars of Health Promotion, Educational Support, Livelihood Development and
Environmental Enhancement. Some investments are strategic, most are philanthropic.
9
2%
8%
Score:
CSR information on its websites focuses on its philanthropic and community activities. But there is a detailed report on HS&E in its 2008
AR, most of it is descriptive in nature. Have a board committee on CSR to oversee its community activities.
Medium
In 2008, Green Alert activists campaigned against EDCs proposal to tap additional geothermal power inside Mt Kanlaon Natural
Parks buffer zone in the Philippines. Environmentalists say the project would further deplete the forest cover, cause damage to
biodiversity, and aggravate a watershed crisis.
Score:
Score:
Controversies
Separation of Chairman & CEO: yes, percentage of independent board members: 27%, percentage of independent audit committee
members: 60%, percentage of independent remuneration committee members: 33%, percentage of independent nomination committee
members: same as remuneration committee, disclosure of executive and board remuneration: no.
Emissions data: yes, on boron content in water at its project sites and on H2S emissions compared to the legal standard. Not clear if
there is a systematic environmental management, but the company is aware of its environmental impact and strives to keep pollution
levels low. EDC is aware of its relatively low carbon footprint and plans to offset it by planting trees at its plant sites.
Corporate governance
55%
33%
No request from CDP
Among the universe of Asian electric utilities, EDC has the highest share of renewables in its portfolio and consequently the lowest carbon
footprint among the power generating companies. Its expansion plans also focus on renewable energy only. Regarding its internal ESG
performance, the company scores in the mid-range of the sector.
Reports H&S data. EDC has programs to improve employee health and keep absence rates low. EDC trained 329 health workers from
23 local clinics.
ESG Summary
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable (geothermal)
Total
Generation Mix Plans Disclosed
Score:
Ownership structure
Company type
Business Model
Asian Utilities Environment and Social Rating
Corporate Governance Rating
CDP disclosure
Environmental management
As a pure distribution company, Manila Electrics environmental impact is comparatively low. Distribution losses have improved
significantly, coming from more than 20% down to 9.5%. They are still above the cap of 8.5% which will come into force in 2010. The
company discloses some selected information on its ESG activities and scores in the mid-range of the sector.
Score:
Meralco recognizes the importance of health & safety management. It has an ongoing commitment to installing safety and environment
protection programs aimed at protecting employees, contractors, and the public. Good H&S management
2009
9369
49%
Corporate governance
37
1%
16%
Score:
CSR website focuses mainly on community programs, corporate giving etc., some slightly more business relevant activities such as
some electrification projects. CSR activities seen as a tool to help support Meralcos public image.
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 100
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 27%, percentage of independent audit committee
members: 60%, percentage of independent remuneration committee members: 33%, percentage of independent nomination committee
members: same as remuneration committee, disclosure of executive and board remuneration: no
785,002.00
190.00
29.00
Score:
Apparently some commitment on climate change and encouraging efficient use of electricity, e.g. participation in the earth hour. But
no meaningful initiatives published. On renewable energies: states that they support the Renewable Energy Act of 2008, which was
signed into law on December 16, 2008, and signed in April 2009 a Contract for the Supply of Electricity with Montalban Methane Power
Corporation (MMPC), which would enable us to source renewable energy from MMPC. MMPC has a 8.19MW renewable power plant
in Rodriguez, Rizal (which does not sound very meaningful). As of end 2008, 17.8% of its energy supply mix came from renewable
energy sources such as hydro, geothermal, and wind. 51.1% of electricity comes from natural gas. No emissions data
ESG Summary
Some internal environmental initiatives such as air pollution control of its own vehicles. Meralco is commited to climate change and
encouraging efficient use of electricity, e.g. participation in the earth hour. On renewable energies: Meralco supports the Renewable
Energy Act of 2008, which was signed into law on December 16, 2008. As of end 2008, 17.8% of its energy supply mix came from
renewable energy sources such as hydro, geothermal, and wind. 51.1% of electricity comes from natural gas.
Distribution
mainly electricity distribution to 4.6m customers (+real estate and
services)
55%
33%
No request to disclose by CDP
Distribution assets
Area covered
% of countrys gross domestic product
Generation Mix Plans Disclosed
Score:
Controversies
Gravity:
Medium
In 2008, Green Alert activists campaigned against the EDCs proposal to tap additional geothermal power inside Mt Kanlaon Natural
Parks buffer zone in the Philippines. Environmentalists say the project would further deplete the forest cover, cause losses to
biodiversity, and bring on a watershed crisis.
Community investment
Meralco invests heavily in social projects. These include Christmas gift-giving activities for children, corporate-wide outreach projects,
and relief operations.
Note 1: ED stands for environmental damage
Ownership structure
Company type
IPP
Business Model
Environmental management
Score:
Emissions, noise and water data available. Data for some of its facilities, i.e. the ones owned 80% and more, data on water, NOx and
SOx emissions. NOx emissions have improved slightly from 2006 to 2008. all emissions below the legal thresholds. Also noise data
available
Climate change management
Score:
Score:
H&S training, H&S management committee, some safety metrics (accumulated safety hours), REGCO and KEGCO have implemented
the Occupational Health and Safety Management System TIS 18001:1999 & OHSAS 18001. egco WON some awards, e.g. the 2008
national safety award for the 9th consecutive year. Info on training hours.
75%
58%
no response
Corporate governance
Score:
ESG Summary
Separation of Chairman & CEO: yes, percentage of independent board members: 29%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 60%, percentage of independent nomination
committee members: same as remuneration committee, disclosure of executive and board remuneration: partly
EGCO ranks among the leader within the sector in our assessment. It reports on emissions and some of the metrics (water use, NOx and
SOx emissions) have decreased since 2006. the company has an H&S management committee, does H&S training and reports on safety
performance. There is significant room for improvement in addressing climate change.
Controversies
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Generation Mix Plans Disclosed
CO2 emissions (tonnes)
CO2 intensity (tonnes/ m USD rev.)
CO2 damage cost (m USD)
2009 (MW)
2,862.30
832.30
20.30
40.60
284.20
4,060.00
not disclosed
2,004,273.00
6,704.00
70.00
Community investment
The group supports, initiates and develops various projects that involve education, career, health and environmental care for a better
quality of life in communities where EGCo is active.
Note 1: ED stands for environmental damage
120
40%
40%
Heat rate (kJ/kWh) for REGCO (2008): 9107, KEGCO (2008): 9311, EGCO Cogen (2008): 9204, Rol-Et Green (2008): 18564. No clear
positive trends visible
Score:
Reports on various metrics (water use, NOx and SOx emissions), and has achieved reductions since 2006. EGCo publishes an annual
sustainability report, has a CSR committee, and information on CSR is included in the Annual Report. Missing: targets & inclusion of nonmajority owned subsidiaries.
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 102
Medium
EGCO has a holding in a 200 MW coal-fired project, the Kamanga Power Plant. The local council unanimously voted against it in
June 2009 due to concerns about impacts on the environment and human health. The council is seeking to have its environmental
compliance certificate cancelled. Criticism on involvement in large dam project in Laos. Involved in Sudan and listed as High Offender
in 2007.
2009 (%)
71%
21%
0.50%
1%
0%
0%
7%
100%
Gravity:
Ownership structure
Company type
Business Model
38%
50%
CDP disclosure
answered CDP, but within the answer of parent company GDF Suez
Environmental management
Score:
No emissions data. Some CO2 emissions data provided by GDF Suez. However, there is no indication that climate change
considerations play a role for GDF in managing Glow Energy. Plants are ISO 14`001 certified. General information on technologies
employed to minimize emissions is given.
Website has some information on environmental management. ISO 14`001 certification
of its plants. General information on technologies employed to minimize emissions.
Score:
Some CO2 emissions data provided by GDF Suez, butthere is no indication that climate change considerations play a role for GDF in
managing Glow Energy in Thailand.
Score:
Glow has a H&S management team. Glow established and follows a set of rules called Corporate Health and Safety Policies and
Procedures. In 2008, Glow included safety targets as criteria determining the variable bonus of its employees. Training programs
are conducted to help employees and contractors. No data on injuries or certification. Website has some information on H&S
management.
Corporate governance
ESG Summary
The company scores in the mid-range compared to the sector. It is owned to almost 70% by GDF Suez.
Generation type
2009 (MW)
2009 (%)
Gas
1,403.53
78%
Coal
298.82
17%
Biomass
0%
Oil
0%
Hydro
108.66
6%
Nuclear
0%
Renewable
0%
Total
1,811.00
100%
Generation Mix Plans Disclosed
115 MW cogen coal, 382 MW cogen gas, 660 MW IPP coal
Controversies
Gravity:
Medium
In October 2008, local residents and organisations staged protests at several locations in Bangkok to challenge the construction of four
power plants in their regions. The protesters claimed that the coal- or gas-fired plants, which would sell electricity to state-owned utility
EGAT, would cause air and water pollution to more than 2,000 farmers and affect the environment of agricultural areas. The plants
were: Bang Kla proposed by Gulf Electric and J-Power, Gheco-One proposed by Glow Energy and Hemaraj, Khao Hin Son proposed
by CMS and Kaset Rungruang Peudphol, and Nongsang proposed by Gulf Electric and J-Power.
Community investment
Glow is concerned about developing the quality of life of people in the communities where it conducts business. Glow lays a focus on
educational and cultural activities. These investments are strategic.
Note 1: ED stands for environmental damage
322
33%
158%
Score:
Information on Glows CSR program is available, in detail, on the company website. Similar information but with some general descriptions
of environmental and H&S achievements in its AR.
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 104
Separation of Chairman & CEO: yes, percentage of independent board members: 25%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 33%, percentage of independent nomination
committee members: same as remuneration, disclosure of executive and board remuneration: partly.
Glow has a water quality management team. The management team focuses on wastewater treatment, seawater quality and marine
ecology.
Overall CSR reporting & management
Score:
Ownership structure
Company type
Power generation
Business Model
Ratchaburis ESG performance scores in the midrange of the sector. They report on emissions data, seem to have comprehensive
H&S management in place and have specific policies addressing stakeholders.
2009 (%)
84%
0%
0%
16%
0%
0%
0%
100%
Score:
Score:
One of the few Asian utilities to respond to CDP since 2006. The company is aware of their CO2 emissions. In the frame of the Carbon
Disclosure Project they report plant specific data on SO2, and NOx emissions. Have achieved some, even though small, improvements
in energy efficiency, but have reported the same achievements for the past 3 years already. These are:
- Improved Gas Turbine performance with 0.4%. by changing high efficient compressor for 6 unit
- Improved 0.3% performance of 2 units of thermal plant by install on line performance optimizer software
- Promoted to reduce electric power consumption 8% or 100 tones of CO2e from year 2005
Score:
Ratchaburis Committee on Workplace Health and Safety runs a succesful H&S program. In November 2008, the Ratchaburi Power
Plant celebrated a new milestone as it achieved 2,500,000-hour-man safety with no accident. However it doesnt have a international
certification.
Corporate governance
Score:
Separation of Chairman & CEO: yes, percentage of independent board members: 33%, percentage of independent audit committee
members: 100%, percentage of independent remuneration committee members: 0%, percentage of independent nomination committee
members: ND, disclosure of executive and board remuneration: partly
Controversies
Criticised for involvement in controversial dam construction in Laos
Gravity:
Medium
Community investment
Environmental management
ESG Summary
Some efforts towards CSR management. Since 2007, have specific policy for each group of stakeholders including the Shareholders
Policy, Employees Policy, and Social and Environment Policy. In 2009, the Company plans to prepare a policy on other stakeholder
groups: creditors and partners (including business partners, suppliers and subcontractors). Has answered the CDP since 2006, as one
of only a few Asian utilities.
2009 (MW)
3,651.48
1,529.60
4,347.00
Emissions data available in the frame of the Carbon Disclosure Project report (SO2, and NOx emissions).
Have achieved some, though small, improvements in energy efficiency.
50%
50%
Yes
Generation type
Gas
Coal
Biomass
Oil
Hydro
Nuclear
Renewable
Total
Score:
11,690,141.00
9,560.00
408.00
489
40%
158%
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 106
Ratchaburis Love the Forest and the Community project promotes human-forest harmonious living. Many tree planting initiatives.
Ratchaburi feels strongly committed to the communities surrounding the Companys premises and invests in those communities.
Investments are strategic.
Note 1: ED stands for environmental damage
SOURCES
1 WBCSD, 2006, Powering a Sustainable Future, available at http://www.wbcsd.org/plugins/
DocSearch/details.asp?type=DocDet&ObjectId=MjEyMjc
2 World Nuclear Organisation, November 2009, Used Fuel Management
3 Source: China Market report, (2009), Analysis and Forecast of China Power Industry 2008-2009
4 Source: China Market report, (2009), Analysis and Forecast of China Power Industry 2008-2009
5 Source: China View (2009), China raises price of electricity for non-residential use
6 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
7 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
8 Note: Chinas power sector is responsible for an estimated 26% of CO2 of total GHG emissions,
according to IEA.w
9 Source: BP Statistical Review of World Energy June 2009, BP research
10 Note: Chinas power sector is responsible for an estimated 26% of CO2 of total GHG emissions,
according to IEA.
11 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
12 Source: China Daily, November 27th 2009
13 Source: Reuters 2009, Chinas wind-power boom to outpace nuclear by 2020
14 Source: Renewable energy magazine. 2009-08-26, Spain no longer leading the way in PV solar
energy
15 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
16 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
17 Source: Widrow Wilson International Center for scholars, Northeast Asia on the Path to
Copenhagen , Jennifer Morgan
18 Source: Hong Kong Power Report Q3 2009, Business Monitor International, July 2009
19 Source: Hong Kong Power Report Q3 2009, Business Monitor International, July 2009
20 Source: BP Statistical Review of World Energy June 2009, BP research
21 Source: Hong Kong Power Report Q3 2009, Business Monitor International, July 2009
22 Source:: CLP website tariff presentation, Hongkong Electric website tariff table
23 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
24 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
25 Source: BP Statistical Review of World Energy June 2009, BP research
26 Source: Sustainability and carbon management (2009), Chinese Companies Turn to U.S.
Technology to Support GHG Reduction Goals
27 Source: Central Electricity Authority of India (2009), http://cea.nic.in/
28 Source: Central Electricity Authority of India (2009), http://cea.nic.in/
29 Source: BP Statistical Review of World Energy June 2009, BP research
30 Source: World Coal Institute (2009) A comprehensive Overview of Coal www.worldcoal.org
31 Anil Kakodkar, Atomic Energy Commission, India, 2005
32 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
33 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
34 Source: BP Statistical Review of World Energy June 2009, BP research
35 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
36 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
37 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
38 Note: This assumes sites having wind power density greater than 250W/sq m at 50m hubheight with 3% land availability in potential areas for setting up wind farms at 12ha/MW.
39 Source: World Nuclear Association (2008), Asias Nuclear Energy Growth
40 Source: Indias Energy Security, Chietigj Bajpaee
41 Source: Reuters (2009), India ties solar plans to global climate support
42 Source: Times of India (28 November 2009), Copenhagen conference: India, China plan joint
exit
43 Source:,Renewable Energy and Energy Efficiency Partnership (2002), Policy DB Details:
Indonesia
44 Source: Advanced Research Institute, Virginia Polytechnic Inst & State University (September
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 108
91 Source: AsiaIsGreen.com (July 18, 2009), Singapore is Not Ready for Renewable Energy
92 Source: PRLog Free Press Release, (September 8, 2009), Financial Solutions: Singapore also
waiting on Copenhagen conference
93 Source: December 2, 2009, Singapore to reduce emissions growth by 16% below projected
2020 level, http://english.sina.com/world/2009/1202/290012.html ,
94 Source: http://asia.news.yahoo.com/cna/20091219/tap-886-copenhagen-accord-usefulclimate-231650b.html
95 Source: Energy Information Administration website (2009), International Energy Statistics
96 Source: BP Statistical Review of World Energy June 2009, BP research
97 Source: Business Monitor International (2009), South Korea Power Report Q4 2009
98 Source: Taiwan news,(2009) Taiwans electricity retail prices among worlds lowest: Taipower
99 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
100 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
101 Source: BP Statistical Review of World Energy June 2009, BP research
102 Source: Jeong Hyeon-ji, Koreas renewable energy market strives for growth, July 2008.
103 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
104 Source Global Solar Technology (October 8, 2009) Korea PV market expected to reach 200MW
by 2012.
105 Source: World Nuclear Assocication (August 2008), Asias Nuclear Energy Growth
106 Source: South Korea announces ambitious mid-term emissions targets (November 17, 2009)
107 Source: Associated Press (November 17th 2009), Jae-Soon Chang, South Korea sets
greenhouse gas reduction target
108 Source: Ministry of Economic Affairs Bureau of Energy website, Liberalization of Power Market
in Taiwan,
109 Source: Ministry of Economic Affairs Bureau of Energy website, Liberalization of Power Market
in Taiwan,
110 Source: BP Statistical Review of World Energy June 2009, BP research
111 Source: World Nuclear Association (June 2009), Nuclear Power in Taiwan
112 Source: Taiwan news,(2009) Taiwans electricity retail prices among worlds lowest: Taipower
113 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
114 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
115 Source: BP Statistical Review of World Energy (June 2009), BP research
116 Source: Ministry of Economic Affairs Bureau of Energy website, Liberalization of Power Market
in Taiwan,
117 Source: Energy Information Administration (August 2005), Taiwan
118 Source: Ministry of Economic Affairs Bureau of Energy website, Liberalization of Power Market
in Taiwan
119 Source: Taiwan Institute of Economic Research (March 2008), New Strategic Initiative for
Taiwans Energy Supply under Global New Energy Circumstances
120 Source: Global Climate Change Regulation Policy Developments: July 2008 - February 2009
121 Source: Global Climate Change Regulation Policy Developments: July 2008 - February 2009
122 Source: W.T.Tsai, Current status and development policies on renewable energy technology
research in Taiwan
123 Source: Council for Economic Planning and development
124 Source: DB Climate Change Advisors (2009), Global Climate Change Policy Tracker: An
Investors Assessment, Detailed Analysis of Targets by Region and Country
125 Source: Reuters (2009), Taiwan to invest $1.4 bln in renewable energy
126 Source: World Nuclear Association (June 2009), Nuclear Power in Taiwan
127 http://www.taipeitimes.com/News/taiwan/archives/2009/12/20/2003461408
128 Source: Thailand Energy Regulatory Developments 2009, http://74.125.153.132/
search?q=cache:CCRjz2o7tisJ:www.erc.or.th/Doc/thailand.pdf+Thailand+Energy+Regulatory+Dev
elopments+2009&cd=1&hl=en&ct=clnk
129 Source: BP Statistical Review of World Energy June 2009, BP research
130 Source: Business Monitor International (2009), Thailand Power Report Q4 2009
131 Source: ERC (2009), Thailand Energy Regulatory Developments 2009
132 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
133 Source: IEA (2009), CO2 Emissions from Fuel Combustion 2009 - Highlights
134 Source: BP Statistical Review of World Energy June 2009, BP research
Responsible Research 2010 | Green Building: Issues for Responsible Investors | 110
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