HK Electric Investments
Honouring Heritage
Sustainability Report 2025
HONOURING HERITAGE ADVANCING SUSTAINABILITY
The cover of this report features two overlapping circles as a core design element, symbolising continuity between heritage and progress as well as interconnectedness of people and energy. This motif represents HKEI's enduring efforts in ensuring a reliable power supply while advancing
low-carbon transformation and social integration, reflecting the Group's commitment to building a sustainable future with its stakeholders.
Contents
3 Report Overview
4-5 2025 Performance Highlights
6-9 A Word from our CEO
10-35
Our Business and Approach to Sustainability
HKEI in Brief
Our Business Model and Value Chain Sustainability Governance
Stakeholder Engagement and Materiality Assessment Sustainable Development Goals and Targets
36-57
Running a Sustainable Business
Overview
Sustainable Long-term Growth Corporate Governance Business Ethics and Integrity Risk Management
Climate-related Disclosures Innovation
58-75
Sharing our Planet
Overview
Climate Action and Clean Air Responsible Environmental Management Environment Education and Awareness
76-95
Serving Hong Kong
Overview
World-class Power Supply
Serving our Customers with Heart Smart Power Services
Caring for the Community
96-117
Working with Partners
Overview
Human Capital Management and Development Respecting Human Rights
Health & Safety
Responsible Supply Chain Management
118-124 Performance Data Summary
125-128 Greenhouse Gas Accounting Methodology
129 Awards and Recognition
130-131 Independent Assurance
2
Report Overview
Scope and Boundary
This is the Sustainability Report 2025 for HK Electric Investments and HK Electric Investments Limited (collectively, "HKEI"). Our main operating company, The Hongkong Electric Company, Limited ("HK Electric"), is a major power utility in Hong Kong. This report covers our electricity business in Hong Kong in the period from 1 January to 31 December 2025, unless stated otherwise. We report our sustainability performance on an annual basis, including our approach to sustainability, key performance during the year, targets and future plans. This report is intended to be read alongside information from our other key reporting channels. Details about our policies and ongoing initiatives are available on our corporate website at https://www.hkei.hk.
More information on our governance practices, financial performance, awards and recognition can be found in our Annual Report.
Basis of Reporting
This report has been prepared in accordance with the Hong Kong Exchanges and Clearing Limited's ("HKEX") Environmental, Social and Governance ("ESG") Reporting Code as well as the Global Reporting Initiative's ("GRI") Sustainability Reporting Standards and Electric Utilities Sector Disclosures. In addition, we have made reference to the Sustainability Accounting Standards Board ("SASB") Standards for Electric Utilities and Power Generators. A set of GRI Content Index, HKEX ESG Content Index and SASB Content Index are available on our corporate website. These indexes cross reference the relevant disclosures and provide specific information, if any, on individual disclosure items.
To uphold the quality of this report, we have adopted the reporting principles set out in the GRI's
Sustainability Reporting Standards and the HKEX's ESG Reporting Code. These principles include "sustainability context", "materiality", "quantitative", "timeliness", "comparability", "balance", "consistency", "verifiability", "accuracy", "clarity" and "completeness". A double-materiality assessment, discussed further in the chapter on Our Business and Approach to Sustainability, has been carried out to determine the issues to be addressed in
this report. Data collection and analysis for this report is based on established guidelines and standards, such as International Standard ISO 14064 and Greenhouse Gas Protocol ("GHG Protocol") for greenhouse gas ("GHG") emissions. We set sustainability targets to monitor our performance, with progress against these targets and key performance data in the reporting year presented in the
chapter on Our Business and Approach to Sustainability.
To track our achievement over time, performance data
for the most recent three years are shown in Performance Data Summary for tracking and comparison purposes. To provide a balanced account of our performance, we report both achievements and areas requiring improvement, including unmet targets and complaints received.
Consistent methodologies are applied to ensure meaningful year-on-year comparisons, and any material changes to methodology are clearly indicated.
In this report, shareholders refer to holders of our Share Stapled Units and suppliers refer to business entities with which we maintain direct commercial relationships, including contractors. Our workforce primarily comprises
full-time employees, with an insignificant portion of part-time and temporary staff. Employees of our contractors, with whom we do not have direct employment relationships, are not considered part of our workforce. All financial data are presented in Hong Kong dollars unless otherwise specified. Due to rounding, some reported figures may not add up to the total. The online version of this report contains video links, some of which are only available in Chinese.
Assurance and Endorsement
Consistent with our commitment to accountability and transparency in reporting our sustainability impacts and performance, we have commissioned an independent third party to verify the contents of this report and to assure its credibility. Details about the assurance can be found in the section on Independent Assurance.
This report has been endorsed by the Sustainability Committee of our Board of Directors ("the Board") and approved by the Board. For further information on how the Board oversees the Group's (refers to HK Electric Investments Limited and its subsidiaries) sustainability strategy, management, performance and reporting, please refer to the chapter on Our Business and Approach to Sustainability.
Feedback
We invite you to share your views on our sustainability performance and this report by completing the Feedback Form available on our corporate website. Your input is greatly valued and will help us realise our vision for a sustainable future.
Sustainability Report 2025 3
2025 Performance Highlights
Running a Sustainable Business
Delivered
$2,830 million
as distributable income to holders of our Share Stapled Units
Launched a Fraud Risk Management Framework
Retrofitted
850 substations with enhanced flood-resilience
measures to combat increasingly severe extreme weather since 1992
Delivered 269 innovative projects since the launch of the Inno Hub in 2018
Sharing our Planet
Reduced carbon emissions by
~42%
compared with the 2005 baseline
Lowered carbon intensity to
0.59 kg/kWh
(CO2e per electricity unit sold)
Increased the share of electricity sent out from natural gas to
~69%
supporting a cleaner fuel mix
Recorded
Generated
~16 GWh
of green electricity by renewable energy installations
of HK Electric and its Feed-in-Tariff customers
Fully complied with
stipulated emissions caps for sulphur dioxide, nitrogen oxides and respirable suspended particulates
Attracted
~120,000
participants in Happy
Green Campaign
>680 participants in a month-long campaign on World Environment Day for employees
4
Serving Hong Kong
Achieved
>99.9999%
supply reliability rating
Met or surpassed all18 pledged Customer Service Standards
Achieved an average customer satisfaction rating of
4.8 on a 5-point scale
Completed the
Advanced Metering Infrastructure and
full-scale deployment of smart meters
Conducted
210
free Smart Power Energy Audits
Approved
~$17 million
of subsidies under
Smart Power Building Fund
Subsidised
>11,000
households under Smart Power Care Fund
Provided >28,000 learning opportunities for retirees through University of 3rd Age Network
Working with Partners
Recorded
3 Lost Time Injuries among employees
Recorded a Lost Time Injury Frequency Rate of
0.17 among employees
Recorded a Lost Time Injury Severity Rate of
3.01 among employees
Conducted
2,827
safety inspections
Completed
4,515
safety risk assessments
Delivered an average of
38.7 hours of training per employee
Recorded an employee voluntary turnover rate (including retirement cases) of 5.1%
Sustainability Report 2025 5
A Word from our CEO
2025 marks the 135th anniversary of our main operating company,
HK Electric, reaffirming our unwavering commitment to powering Hong Kong with a reliable electricity supply and supporting the city's sustainable development.
6
As we conclude 2025, it is our pleasure to present HKEI's Sustainability Report for the year. This report reflects not only our progress in advancing sustainability but also our enduring sense of responsibility as a trusted power utility that has grown alongside Hong Kong for generations.
Reflecting on our 135 Years of Service to Hong Kong
Since 1890, when our main operating company, HK Electric, first illuminated Hong Kong's streets with electric lighting, it has been playing an essential role in supporting the city's economic and social development. Over the past more
than 135 years, our operations have evolved in step with Hong Kong's transformation from a small trading port with farmland and fishing villages into a modern international city, guided by enduring values of reliability, professionalism and service.
While technologies, energy systems and customer expectations have changed profoundly over the years, our purpose of serving the community with excellence, care, foresight and integrity has remained constant. Throughout our history, we have adapted ourselves to meet new challenges. By strengthening infrastructure, enhancing operational standards and efficiency, adopting greener energy and embracing technology and innovation, we continue to ensure a safe, reliable, clean and affordable electricity supply for our customers.
During the year, we launched a series of initiatives to reflect on our 135-year journey and the foundations laid for future progress. The opening of the "Historical
Corner" at Hongkong Electric Centre helps preserve and showcase the key milestones across different stages of our development. Bringing together over 200 stakeholders, we hosted an engineering conference to exchange insights
on the future development of infrastructure engineering. In addition, a publication chronicling the technical evolution of our electricity distribution system was prepared. Together, these initiatives demonstrate how our engineering heritage has shaped today's robust operations and reinforce our commitment to knowledge-sharing and professional excellence.
HK Electric 135th Anniversary Historical Corner
Driving the Shift to Clean Energy
As global attention on climate action remained intense in 2025, we continued to advance our decarbonisation
journey with clear targets and disciplined execution. During the year, construction of the new gas-fired generating unit L13 progressed as scheduled. L13 is a key decarbonisation initiative under the 2024-2028 Development Plan and is targeted to commence operations in early 2029.
Meanwhile, as we further stretched our capability, we slightly increased the share of electricity sent out from natural gas to 69%, compared with 68% in 2024, and achieved a reduction of 42% in carbon emissions from the 2005 baseline. We expect the ratio of gas-fired electricity sent out to reach approximately 80% once L13 becomes fully operational, allowing further reduction in carbon emissions.
According to the latest available information, Hong Kong's total greenhouse gas ("GHG") emissions in 2024 decreased by 1.3 million tonnes as compared with the previous year. In the same period, HK Electric's GHG emissions dropped by more than 0.59 million tonnes, contributing to more than 45% of the city's total reduction in GHG emissions.
In 2025, we achieved the target relating to renewable energy ("RE") generation ahead of schedule, with around 16 GWh of electricity generated from the RE sources of
HK Electric and its Feed-in-Tariff customers during the year. A portion of this green electricity was generated by Lamma Winds - Hong Kong's first commercial-scale wind turbine that was introduced by HK Electric in 2006.
O
We also encourage and facilitate our colleagues' participation in giving back to society. During the year, the HK Electric Volunteers Team participated in various meaningful community initiatives, including providing support to those affected by the heartbreaking Tai Po fire incident occurred in November. Apart from this, our employees also made voluntary donations to support the victims and more than HK$300,000 was gathered and presented to The Hong Kong Council of Social Service for the purpose. The tragedy caused profound distress to
families and the wider community. On behalf of the Group, I extend our deepest sympathies to all those affected. We paused to mourn, help and show respect, and to consider carefully our own responsibilities as an essential service provider entrusted with public safety.
We strive to ensure that our electricity supply remains affordable to our customers despite challenges and constraints that exert upward pressure on tariffs. These include high construction and maintenance costs due to the geographical characteristics of our supply area, volatility of fuel prices and our relatively limited economies of scale among local utility companies. Our approach to financial management focuses on optimising costs and enhancing efficiency, while continuing to invest in projects essential to maintaining a reliable power supply and achieving common sustainability goals. Under this prudent approach, the Average Net Tariff for January 2026 decreased by 2.2% compared with that for January 2025. We also continue to implement relief measures and concessionary schemes to support customers in need.
Building a Future-ready Workforce for the Power Industry
Our people are central to our long-term success. Beyond offering competitive remuneration and safeguarding their rights, we continue to invest in their growth through purposeful development opportunities and a workplace culture that fosters innovation and continuous learning. Through these efforts, we seek to realise individuals' full potential and encourage collaborative contributions in support of the Group's long-term resilience and sustainable development.
In the latter half of the year, following the retirement of our only female management staff, we have co-opted a female department head into the Management Committee of HK Electric as we value a diverse perspective in our management approach, and this has proved to be very successful as the lady was not shy to express her opinions.
Upholding safety and well-being remains our foremost priority. The Tai Po fire incident has reminded us how
rapidly an incident can escalate into a tragedy with far-reaching impacts. While the number of Lost Time Injuries among our employees has remained consistently low
in recent years, we cannot and will not be complacent. We will continue to strengthen our safety practices and reinforce a culture of accountability across all operations.
Honouring Heritage while Advancing Sustainability
During the year, I had the privilege of engaging with many young people within our organisation and across the community through various dialogues, engagement activities and education initiatives, including our Hear Your Voice initiative and the Green Energy Dreams Come True
competition. The creativity of our young ones, coupled with their passion for a better tomorrow, was truly inspiring. I am confident that, drawing on the wisdom and experience of those came before them, this new generation will continue to push boundaries, drive innovation and play a pivotal role in shaping a sustainable and resilient future for all.
Finally, I extend my heartfelt thanks to the Board, my colleagues and all our stakeholders as well as those who have contributed to the success of HK Electric over the past 135 years, for helping us come this far.
Thank you for your continued support.
Francis Cheng
Chief Executive Officer March 2026
Our Business and Approach to Sustainability
HKEI in Brief
Constituted in January 2014, HK Electric Investments is a fixed single investment trust in Hong Kong focused exclusively on the energy sector. Share Stapled Units issued by the trust and HK Electric Investments Limited (collectively, "HKEI") are listed on the Main Board of the Hong Kong Stock Exchange. The structure of the trust enables us to maintain a dedicated focus on delivering stable distributions to holders of our Share Stapled Units, while ensuring potential for long-term sustainable growth of our business.
Commencing operations in 1890, our main operating company, HK Electric, is one of the longest established utility companies in the world. HK Electric supplies electricity to more than 599,000 customers in Hong Kong. It operates a vertically integrated power utility under a Scheme of Control Agreement ("SCA") with the Hong Kong Special Administrative Region ("HKSAR") Government. It has a power station on Lamma Island, known as Lamma Power Station ("LPS").
Over the years, HK Electric has contributed immeasurably to the economic and social development of Hong Kong by supplying safe, reliable, clean and affordable electricity in line with our Vision, Missions and Core Values, whilst taking care of our underprivilege customers. To help combat climate change and support Hong Kong in achieving its decarbonisation agenda, we are transitioning from coal-fired to gas-fired power generation at LPS and promoting the use of renewable energy ("RE") while exploring other zero-carbon energy solutions.
For more information about HKEI and HK Electric, please visit our corporate website https://www.hkei.hk.
Our Vision
To excel in the power business in Hong Kong
Our Missions
To enhance shareholder value
To deliver excellent customer services and supply reliability
To nurture a harmonious and engaged workforce To care for the communities that we serve
To care for the environment in all our activities To drive for efficiency in our operations
Our Core Values
Pursuit of Excellence Integrity
Respect & Trust Caring
10
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Our Business Model and Value Chain
HK Electric, as the main operating company of HKEI Group, has financial performance that directly reflects that of the Group. Our business operates as a vertically integrated regulated power utility under the SCA with the HKSAR Government, which establishes our regulatory framework and aligns our operations with Hong Kong's energy policy objectives. The current SCA, effective from 1 January 2019 to 31 December 2033, governs HK Electric's financial returns by granting an annual Permitted Return of 8% on its Average Net Fixed Assets. These Fixed Assets comprise HK Electric's electricity-related investment in land, buildings, plant, equipment and capitalised refurbishment and improvement works. The SCA also contains certain adjustments to the Permitted Return in the form of performance-based financial incentive and penalty schemes as well as funds and service schemes to encourage energy efficiency, operational performance, renewable energy development in Hong Kong and service quality enhancements.
Under the SCA, the regulatory framework incorporates Interim Review, Development Plan Review, Auditing Review and Tariff Review, which enable the Government to monitor our financial, operational and environmental performance. These periodic reviews ensure compliance and transparency while maintaining both stable returns for shareholders
and flexibility to invest in long-term infrastructure through planned capital expenditure for electricity-related property, plant and equipment. The framework is designed to respond
to both short-term and medium-term developments through annual reviews and future planning. For further details, please refer to the Scheme of Control Agreement.
Our business model supports the management of sustainability-related risks and opportunities, including those arising from climate change, energy transition and evolving regulatory requirements, while creating long-term value for the Group and its stakeholders. This approach positions us to contribute to Hong Kong's decarbonisation and energy-transition goals. We maintain operational resilience through strategic investments in grid reliability and low-carbon technologies, ensuring robustness under future energy scenarios.
Our value chain spans from upstream suppliers and contractors to downstream customers and community, and is supported by dedicated resources, robust governance and engagement practices, proactive sustainability and innovation initiatives and well-established processes that collectively deliver outcomes aligned with our sustainability objectives. We regularly conduct reviews to strengthen every stage of our value chain and seek opportunities
for continual improvement, ensuring responsible use of resources and enhancing both practices and outcomes. For further information on how climate-related risks and opportunities impact different stages of our value chain, please refer to the Climate-related Disclosures section of the ensuing chapter.
Sustainability Report 2025 11
Our Business and Approach to Sustainability
How We Deliver Sustainable Value
Financial Resources
$4,193 million
in capital expenditure for electricity-related property, plant and equipment
Natural Resources
The stage where critical resources, materials and expertise are secured and managed to support reliable, efficient and sustainable electricity generation and delivery. This includes sourcing fuel and
88,268 TJ
fuel consumption
1.19 million m3
town water consumption
essential inputs in a manner that upholds sustainability standards and ensures
1,559 million m3
of seawater utilised for cooling of generating units
resilience across the supply chain.
Human Capital*
Our operations cover Hong Kong Island
1,635
permanent employees
161
contract employees
and Lamma Island, forming our primary service territories for power generation, transmission and distribution.
Supply Chain
973
global suppliers supporting operations
Technology and Infrastructure
State-of-the-art generation, transmission and distribution facilities, supported by advanced metering infrastructure and sophisticated information technology systems
Power Generation
Generating Capacity*:
3,083 MW in total of installed generating capacity.
4 gas-fired combined-cycle units:
1,475 MW
coal-fired units:
1,050 MW
solar power system:
1.5 MW
wind turbine unit (known as Lamma Winds):
0.8 MW
Other small-scale RE installations:
1 MW
5 oil-fired gas turbine units
(for peak-lopping and emergency operations):
555 MW
12
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Transmission and Distribution
Network Infrastructure*:
7,143 km in total of transmission and distribution circuits, ensuring reliable electricity delivery.
High-voltage circuit length:
447 km
Medium-voltage circuit length:
4,417 km
Low-voltage circuit length:
2,279 km
Products and Services
Electricity Delivery:
>599,000 customers served*
9,916 million kWh sold
>99.9999% supply reliability rating
0.59 kg/kWh carbon intensity
(CO2e per electricity unit sold)
Economic contribution
Impact on the environment
Power supply reliability
Customer satisfaction
Contribution to community
Employee wellness, development
and satisfaction
Operational safety
The stage where reliable electricity is delivered to customers and where sustainability and caring initiatives are extended to stakeholders, ensuring long-term business success and satisfaction of stakeholders.
Influence on supply chain
Notes:
The reported figures are for 2025 and those marked with (*) represents the figures as at the end of the year.
For information on our allocation of financial resources, please refer to our Annual Report.
For information on our use of natural resources, please refer to the section on Performance Data Summary.
Sustainability Report 2025 13
Our Business and Approach to Sustainability
Sustainability Governance
HKEI strives to operate a sustainable and responsible business in line with the principles of openness, integrity and accountability. Our approach to sustainability governance is built on a robust foundation of sound corporate governance and high ethical standards.
Our Sustainability Framework facilitates the consistent incorporation of sustainability practices in line with our Sustainability Policy and other key Corporate Policies and business priorities. The framework includes 15 focus areas, addressing the most material topics for HKEI and its stakeholders. These focus areas are categorised into four strategic directions that reflect the nature of our business, closely linked to
the United Nations' Sustainable Development Goals ("SDGs"). The Framework empowers us to translate our values and commitments into tangible and measurable targets, ensuring ongoing monitoring and evaluation of our progress and fostering effective communication with our stakeholders.
HKEI has set sustainability targets for the Group with reference to the United Nations' 2030 Agenda for Sustainable Development and the associated SDGs, of which the progress is reviewed and reported on an annual basis. For further details on the sustainability targets established, please refer to the Sustainable Development Goals and Targets section.
Sustainability Governance Structure
The Board
Accountability and Leadership
Our commitment to sustainability is integrated throughout our organisation, with clear accountability at every level:
The Board holds overall responsibility for the Group's sustainability strategy, management, performance and reporting.
Sustainability Committee
(Board Level)
Governance and Oversight
Sustainability Management Committee (Management Level)
Strategy, Management and Monitoring
Business Units
Implementation and Reporting
The Board has delegated specific oversight responsibilities to the Sustainability Committee, tasked with supervising the development and implementation of sustainability initiatives. This includes reviewing relevant policies and practices, as
well as analysing sustainability risks and opportunities.
Additionally, the Sustainability Committee advises the Board on issues concerning public communication and disclosures regarding the Group's sustainability performance, such as the annual Sustainability Report. In 2025, the Sustainability Committee conducted two meetings. The committee's Terms of Reference are available on our corporate website.
At the management level, the Sustainability Management Committee supports the Sustainability Committee in fulfilling its duties. Chaired by the Chief Executive Officer, the Sustainability Management Committee meets quarterly to
steer and coordinate the Group's sustainability endeavours
and cultivate a deeper comprehension of sustainability. The Committee also reviews our engagement approach biannually to ensure effective stakeholder engagement.
14
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Sustainability Management Committee
In 2025, there were changes in the composition of the Sustainability Management Committee.
Alex Ng
Group Legal Counsel and
Raymond Choi
Operations Director
Bill Ho
General Manager
John Liauw
General Manager
Company Secretary Wong Kim Man
Chief Financial Officer
Francis Cheng
Chief Executive Officer
(Corporate Development)
Dennis Wu General Manager (Human Resources)
(Public Affairs)
In 2025, the following issues were discussed at the Committee meetings and reported to the Sustainability Committee:
Sustainability goals, targets and performance
Public communications, disclosure and publication
Policies and risk management related to ESG matters
ESG risks and opportunities
Stakeholder engagement and community engagement
Double materiality assessment and sustainability reporting
As part of our commitment to continuous improvement, we actively participate in both local and global benchmarking initiatives, including the MSCI ESG Rating, S&P ESG Rating and Morningstar Sustainalytics ESG Risk Rating. As a result of these efforts, HKEI is featured in the product repository of the Sustainable & Green Exchange (STAGE) established by HKEX.
Sustainability Report 2025 15
SUSTAINABILITY FRAMEWORK
This framework is based on our Vision, Missions and Core Values, as well as our Sustainability Policy and other key Corporate Policies.
Commitment
Promoting sustainable development by operating our business in a responsible and transparent manner while meeting the long-term energy needs of the community we serve
Strategic Directions
Objective
Aiming to be a world-class energy supplier providing a safe, reliable, clean and affordable electricity supply and striving to be a good corporate citizen and an employer of choice
Approach
Integrating sustainability considerations into every aspect of our corporate culture and business operations and engaging with our stakeholders to create shared value
Working with Partners
Serving Hong Kong
Sharing our Planet
Running a ustainable Business
S
Ensuring a strong foundation for supporting sustainable development
Sustaining a beautiful and liveable planet for future generations
Making our home a prosperous, smart and caring city
Engaging with our employees and business partners to ensure safe and responsible business operations
Material Areas Material Areas Material Areas Material Areas
Securing a stable return and delivering longterm value for our investors
Upholding a high standard of corporate governance and disclosure
Managing key risks and opportunities effectively, including those related to climate change
Building mutual trust with our stakeholders
Fostering a culture of innovation
.1 Combatting climate change
2.2 Minimising the environmental impacts of our business operations and supporting circular economy
2.3 Promoting environmental awareness among our stakeholders
Providing a reliable and affordable electricity supply
Delivering excellent customer services
Caring for the community
Respecting human rights
Caring for our employees and their families
Improving our health and safety performance continually
Managing our supply chain responsibly
Supporting the United Nations' Sustainable Development Goals, specifically:
Goal 7 Goal 8 Goal 9
Affordable and Clean Energy
Decent Work and Economic Growth
Industry, Innovation and Infrastructure
Goal 11 Goal 12 Goal 13
Sustainable Cities and Communities
Responsible Consumption and Production
Climate Action
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Stakeholder Engagement and Materiality Assessment
Stakeholder Engagement
At HKEI, we have established a clear framework for stakeholder engagement guided by our updated Media, Stakeholder Engagement and Community Investment Policy to foster open, transparent
and effective communication with stakeholders. Our engagement efforts focus on individuals and groups that are affected by or hold influence over our operations and supply chain. We provide
comprehensive information to address stakeholders'
concerns and expectations regarding the environmental, social and economic impacts of our activities, thereby promoting the sustainable growth of both our business and society. By leveraging
our digital corporate stakeholder engagement portal, business units can plan, record and evaluate their engagement activities. It ensures stakeholder feedback is captured systematically and drives our continuous improvement.
Engaging with our Stakeholders
Meetings / conversations / enquiries / interviews
Visits / talks / seminars / workshops / exhibitions
Advisory services / community programmes / volunteering services /
social & recreational activities /
sponsorships & scholarships / award schemes
Consultation panels /
focus groups / liaison teams
Surveys / suggestion schemes
Mobile apps / intranet / website / social media / news & publications
Why their views are important to HKEI
Stakeholder groups
Customers Electricity is an essential part of their daily life, and understanding their needs helps us meet or exceed their expectations.
Usual engagement channels
Shareholders and Investors
Employees
Suppliers and business partners
We are accountable for safeguarding their interests and ensuring sustainable returns.
1 | 2 | 3 | 4 | 5 | 6 |
1 | 2 | 6 | |||
1 | 2 | 3 | 4 | 5 | 6 |
1 | 2 | 3 | 5 | 6 | |
1 | 2 | 3 | 4 | 6 | |
1 | 2 | 3 | 4 | 6 | |
1 | 2 | 3 | 4 | 5 | 6 |
1 | 2 | 4 | 6 | ||
1 | 6 | ||||
1 | 2 | 4 | 6 |
Employees are integral to our operations and long-term success. We value their well-being, engagement, and contributions to safe, reliable and efficient services.
Shared sustainable values and collaboration are essential for fostering long-term relationships.
Local communities We are committed to supporting the city's sustainable
development and helping those in need.
Green groups and social NGOs
They are our key partners in driving environmental conservation and sustainable community development.
Education sector Promoting green education, especially among young people, helps build a sustainable future.
Engineering sector and professional institutions
They are our key industry partners who contribute to innovation and technical excellence.
Media They are effective channels for communicating with the public.
Authorities and legislators
Their regulatory oversight ensures compliance and accountability in our utility operations.
2025 Highlights of Engagement Activities
Stakeholder groups Activities
Customers
Various initiatives and promotion activities under our Smart Power Services to encourage and support our customers to go green
Exchanging views with members of the Customer Liaison Group and updating group members on company development through meetings and company visits
After-service surveys to gauge customer satisfaction
Customer newsletter "HK Electric Online" and video communication "KR 44 TV"
Shareholders and investors
Annual General Meeting with shareholders
Updating shareholders on our business operations through company visits
Regular dialogue with investors to address their concerns and expectations
Participation in various local and global benchmarking initiatives to allow investors to learn more about our sustainability performance
Shareholders visit LPS
Employees, suppliers and business
"Dialogue with Francis" employee communication forum with HKEI's Chief Executive Officer, Joint Consultation meetings, and focus group meetings to facilitate the exchange of views and ideas with our employees
"Hear Your Voice" communication channel to connect our young professionals with senior executives and encourage open and constructive dialogue
Employee Well-being Focus Group to understand our employees' well-being, work-life balance, and workplace engagement
Company-wide Environmental Climate Index ("ECI") Survey to assess organisation's environmental culture, identify areas for
partners
enhancement, and develop corresponding
action plans
Theme talk on ESG to deepen employees' understanding
Employee communication forum with CEO
of how sustainability principles are integrated across various business aspects
Active participation in the promotion and advocacy of environmental stewardship through industry associations.
Performance Management System to provide feedback and coaching to employees on their performance and development
Targeted initiatives and awareness programmes to promote physical and psychosocial wellbeing, and support the health and safety of our employees and contractors
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Stakeholder groups Activities
Local communities, green groups, social NGOs and education sector
Exchanging views with community members and updating them on company development through meetings and company visits
Participation in career fairs to foster awareness of career prospects with HK Electric among university students
Various educational activities under the Happy Green Campaign to enhance environmental awareness among the public, particularly young people
Eco-heritage tours under the Green Hong Kong Green programme to foster public appreciation of Hong Kong's eco-heritage resources
Home visits, electrical safety talks and outings under the "CAREnJOY for the Elderly" programme to support the elders-in-need
Helping local retirees pursue lifelong learning and continue to contribute to the community through the "University of 3rd Age" ("U3A") network
Engaging with the Lamma Community
Engineering sector and professional institutions
Participation in knowledge and experience sharing activities with professional bodies
Collaboration in the "Belt and Road Advanced Programme in Power and Energy 2025" to nurture senior-level talent in the energy industry
Participation in meetings and forum of the Joint Utilities Safety and Occupational Health Policy Group to discuss safety issues and benchmark safety practices
Engagement with the Hong Kong Accreditation Service (HKAS) in an on-site witness assessment ensured a robust and prudent independent verification process, confirming that HK Electric's GHG quantification mechanism is effective and compliant with ISO 14064-1 requirements
Media Press releases, interviews, visits, briefings, corporate website, apps and social media to keep media informed on corporate initiatives
Authorities and legislators
Updating legislators and government officials on company development
Working closely with relevant authorities to ensure proper implementation and transparency of the SCA, as well as the way forward to achieve net zero
Meeting with relevant government departments and other utilities through the Joint Utilities Policy Group to discuss issues of shared concern
HK Electric Marks 135 Years of Powering Hong Kong with a Series of Activities
HK Electric hosted a series of meaningful activities to commemorate its 135 years of powering Hong Kong. The activities brought together employees, partners, community stakeholders and industry representatives through events designed to honour the company's legacy while spotlighting innovation and future development.
Industry Collaboration at the 135th Anniversary Engineering Conference
A key highlight was the 135th Anniversary Engineering Conference held on 16 October 2025, which brought together over 100 government officials, industry leaders, engineering experts, academics and corporate partners. The Conference fostered in-depth dialogue on sustainability, energy transition and innovation under the theme "When Tradition Meets Technology".
Three panel discussions covered HK Electric's history, innovation projects and climate-related initiatives. The Conference was officiated by senior government representatives and HKEI's Chief Executive Officer, with contributors from major organisations such as Airport Authority Hong Kong,
the Civil Engineering and Development Department, MTR Corporation, Arup,
Swire Properties and Towngas sharing insights on building resilience and advancing sustainable infrastructure.
Honouring a Legacy of Reliability and Knowledge Sharing
HK Electric 135th Anniversary Engineering Conference
HK Electric launched a commemorative publication, HK Electric - The Endeavour Behind High Supply Reliability, highlighting the company's long-standing expertise and achievements in the design, operation and maintenance of electricity distribution systems. This publication reflects HK Electric's professionalism, technical leadership and commitment to knowledge succession within the sector.
Preserving Heritage Through the Historical Corner
We also opened the Historical Corner at Hongkong Electric Centre, offering visitors a curated look into HK Electric's 135-year journey through archival photographs, documents and artefacts. This new exhibition space not only preserves the company's legacy but also inspires employees, partners and the community by linking past
achievements with future aspirations in innovation and sustainability.
Promoting Biodiversity and Low-Carbon Development
Under-Secretary for Environment and Ecology Diane Wong and HKEI's Chief Executive Officer joined a tree-planting ceremony at LPS in April. About 100 stakeholders came together to plant 135 trees and shrubs along the newly named "Eco-Carbon Bridge". By promoting local carbon sinks, the event reflected our support of Hong Kong's low-carbon transition. For details, please refer to the chapter on Sharing our Planet.
Celebrating Shared Memories
A "Homecoming Reunion" brought together retired and current colleagues to honour
Tree-planting ceremony at LPS
the pioneers who helped build the company's foundations. The gathering celebrated shared memories and highlighted how HK Electric's achievements today are rooted in the dedication, professionalism and contributions of past generations.
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Materiality Assessment
At HK Electric, we conduct materiality assessment on a regular basis, and incorporate its outcomes and stakeholders' concerns into our sustainability strategy, objectives and targets. In 2025, we continue to adopt double materiality approach to determine the relative importance of the Group's positive and negative impacts on the environment and society, as well as the risks and opportunities that may affect our business.
IDENTIFY
Step1
PRIORITISE
Step 2
VALIDATE
Step 3
2025 Materiality Assessment Process
Process
Re-evaluation of 2024 material assessment which involve both internal and external stakeholders; and
Analysis of megatrends, regulatory changes, risk and opportunity factors, peer benchmarking and sustainability standards.
Outcomes
Identification of 24 material topics, with no change compared to that of previous year; and
Compilation of a list of associated positive and negative impacts, as well as formation of risks and opportunities based on the business model and value chain of the Group.
Process
Invitation to representatives from various business units to assess the significance of each topic via quantitative survey; and
Evaluation of significance of the material topics in terms of financial materiality and impact materiality, with consideration of its severity and likelihood.
Outcomes
Formulation of 2025 Double Materiality Matrix.
Process
The assessment results were reviewed by the Sustainability Management Committee; and
The results were finalised and formally endorsed by the Sustainability Committee.
Outcomes
The outcomes have been fully reflected in the preparation of this report and considered in identification of ESG Risks and Opportunities.
HKEI's 2025 Double Materiality Matrix
The materiality matrix below summarises the relative importance of the 24 material topics according to their significance to HKEI and its stakeholders from the perspectives of impact materiality and financial materiality. In 2025, the top material topics identified include "Combatting climate change", "Ensuring supply reliability and asset integrity" and "Prioritising occupational health and safety". The numbers in brackets against each material topic reference the relevant material areas in our Sustainability Framework.
15
20
19
Impact Materiality
17 7 9
16 14 6
10 5 4
12
21
13 24 18 11 8
3 2 1
22
23
Financial Materiality
Running a Sustainable Business Sharing our Planet
1 Upholding business ethics (1.2)
2 Bolstering contingency preparedness (1.2, 4.3)
3 Ensuring effective corporate governance (1.2, 1.3)
4 Enhancing economic performance (1.1)
5 Engaging with stakeholders to advance sustainability (1.4)
6 Fostering innovation to drive sustainability (1.5)
7 Strengthening climate resilience and adaptation strategies (1.3)
8 Leveraging sustainable finance mechanism (1.1)
9 Combatting climate change (1.3, 2.1)
10 Enhancing energy efficiency (2.2, 3.2)
11 Implementing sustainable water management (2.2)
12 Advancing circular economy through waste management (2.2)
13 Conserving biodiversity (2.2)
14 Promoting low-carbon behaviour (2.3)
Serving Hong Kong Working with Partners
15 Ensuring supply reliability and asset integrity (3.1)
16 Facilitating access to electricity and promoting affordability (3.1)
17 Safeguarding customer privacy, health and service quality (3.2, 4.3)
18 Promoting community relations and investments (2.3, 3.3)
19 Strengthening cybersecurity (3.1, 3.2)
20 Prioritising occupational health and safety (4.3)
21 Managing human capital effectively (1.2, 4.1, 4.2)
22 Establishing a sustainable supply chain (1.2, 4.1, 4.4)
23 Upholding and managing human rights (1.2, 4.1)
24 Promoting diversity, equity and inclusion (1.2, 4.1)
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Identified Material Impacts, Risks and Opportunities
RUNNING A SUSTAINABLE BUSINESS
Material Topics Impacts, Risks and Opportunities
Alignment with UNSDGs (for positive impacts only)
Value chain [1] Time horizon [2]
Upholding business ethics
Bolstering contingency preparedness
Risk: Misconduct, fraud and corruption by management or staff could
damage the Group's reputation and interests, undermining investor -confidence in HKEI's ability to manage operations profitably.
Negative impact: Failure to uphold ethical standards may lead to
misconduct, regulatory breaches and loss of public trust, undermining the -fairness and integrity of the Group and the broader industry.
Risk: Incomplete contingency plans could exacerbate the negative effects
of unexpected events, leading to reputational damage and operational -disruptions that potentially increase repairs and maintenance costs.
Negative impact: Inadequate contingency planning and response may
lead to severe disruptions, endangering workers, local communities and -the environment.
Business & Operations
Business & Operations
Business & Operations
Business & Operations; Downstream
Short-term
Short-term
Short-term
Short-term
Ensuring effective corporate governance
Enhancing economic performance
Engaging with stakeholders to advance sustainability
Risk: Deficiencies in board diversity, independence and governance practices could impair decision-making and long-term development.
Risk: Informal internal control policies and standards could lead to inconsistent practices among different personnel, potentially resulting in inefficiencies.
Negative impact: Increased legal, regulatory and reputational risks that may affect enterprise value and the interest of wider community, if without effective governance.
Risk: Sluggish adaptation to economic instability and regulatory shifts could hinder the Group's growth, impair market position and increase operational costs.
Positive impact: Drive economic, social and environmental enhancement through strategic business planning and development, ensuring a reliable and sustainable power supply that benefits shareholders, communities and the environment.
Risk: Inadequate collection and consideration of stakeholder feedback may lead to stakeholder dissatisfaction, project delays and reputational damage.
Positive impact: Facilitate sustainable development of society and increase public awareness of sustainability by building mutual understanding and trust with stakeholders and addressing their expectations through different types of engagement activities.
Business &
Operations
Business &
Operations
Business &
Operations
Business &
Operations
Business & Operations; Downstream
Upstream;
Business &
Operations;
Downstream
Upstream; Business & Operations; Downstream
Long-term
Medium-term
Short-term
Medium-term
Medium-term
Medium-term
Medium-term
RUNNING A SUSTAINABLE BUSINESS
Material Topics Impacts, Risks and Opportunities
Alignment with UNSDGs (for positive impacts only)
Value chain [1] Time horizon [2]
Risk: Insufficient adoption and investment in new technological solutions may lead to unreliable electricity services and failure to meet customer expectations, damaging reputation and operational efficiency.
Risk: Adoption of new and emerging decarbonisation technologies, e.g.,
- Business &
Operations
Business &
Medium-term
Medium-term
Fostering innovation to drive sustainability
Strengthening climate resilience and adaptation strategies
green hydrogen and/or green ammonia, may involve additional costs and -implications for system reliability.
Opportunity: Adopting innovation can enhance operational performance,
reduce operational cost, promote wider technology adoption, stimulate -investment opportunities and reinforce the Group's market position in
energy innovation.
Positive impact: Support transformation of the energy industry for a low-carbon economy and other outcomes that benefit the sustainable
development of the society through ongoing commitment to innovation and collaboration with stakeholders.
Negative impact: Impede the advancement of low-carbon transition
and the realisation of 2050 carbon-neutrality goal, if failing to implement -
relevant innovation and digital transformation projects.
Risk: Increased physical risks, both acute and chronic, from climate change
could damage assets, cause power outages, and lead to higher operational -costs.
Opportunity: Investing in resilient infrastructure and smart adaptation
strategies can enhance weather resistance, reduce disruptions and recovery -costs, and improve operational efficiency and customer satisfaction.
Positive impact: Enhance the reliability of electricity supply and contribute to the well-being of local communities by reducing infrastructure damage and service disruptions through proactive climate resilience planning and adaptation measures.
Negative impact: Lead to increased vulnerability to extreme weather
events, resulting in more frequent and severe damage to infrastructure, and -associated economic disruptions and threats to lives and properties, if failing
to strengthen climate resilience and adaptation strategies.
Operations
Business & Operations
Business & Operations; Downstream
Business & Operations; Downstream
Business & Operations
Business & Operations; Downstream
Business & Operations; Downstream
Business & Operations; Downstream
Medium-term
Long-term
Long-term
Short-term
Medium-term
Medium-term
Medium-term
Leveraging sustainable finance mechanism
Risk: Ongoing capital investments outlined in the Government-approved Development Plan under the Scheme of Control Agreement may exert
upward pressure on tariff, which could expose HK Electric to reputation and -
regulatory risks - particularly if tariff increases are perceived as misaligned with public expectations or policy objectives.
Opportunity: Aligning with the Hong Kong Taxonomy for Sustainable
Finance enables HKEI to access diversified sustainable financing for energy -transition projects, supporting stable return.
Positive impact: Integrating sustainability into financial decision-making helps channel capital toward environmentally and socially responsible initiatives. This supports mitigation of climate change, promotes sustainable development, and manages the broader societal and environmental impacts of investment activities.
Business & Operations
Business & Operations
Business & Operations
Medium-term
Medium-term
Medium-term
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
SHARING OUR PLANET
Material Topics Impacts, Risks and Opportunities
Alignment with UNSDGs (for positive impacts only)
Value chain [1] Time horizon [2]
w
Combatting climate change
Risk: Stricter environmental regulations (e.g., potential carbon emission
limits, carbon tax and energy efficiency requirements) and government -policies on climate change, could result in higher capital expenditures,
operating expenses and fuel costs.
Risk: Changing electricity demand due to climate awareness may shift consumer preferences towards low-carbon products, increasing demand
pressures and environmental concerns. Failure to meet these expectations -can lead to reputational risks, especially for companies seen as significant
GHG emitters like HKEI.
Opportunity: Government regulations and policies on climate action can
drive zero-carbon energy solutions and long-term investments in energy -infrastructure under a sound regulatory regime, enabling HKEI's sustainable
growth.
Positive impact: Help alleviate climate change and in turn benefit the whole
Business & Operations
Business & Operations
Business & Operations
Long-term
Medium-term
Long-term
society, by reducing greenhouse gas emissions through increasing gas-fired generation, phasing out coal-fired generation and supporting zero-carbon energy applications such as RE.
Negative impact: Continued reliance on coal-fired generation contributes to air -pollution and climate change, harming public health and livelihoods.
Medium-term
Downstream
Medium-term
Downstream
Negative impact: Inadequately managed transition may negatively affect workers and communities through job losses and social disruption.
Business &
- Operations; Downstream
Long-term
Enhancing energy efficiency
Implementing sustainable water management
Risk: Poor energy management practices could result in higher operating costs.
-
Positive impact: Improve operational efficiency and reduce carbon emissions through effective energy monitoring and conservation, contributing to environmental protection, reliable service delivery and broader community well-being.
Risk: Excessive or improperly managed water extraction and discharge may
adversely affect local water availability and ecosystems, while also exposing -HKEI to environmental compliance risks, including regulatory penalties,
reputational damage and higher operating costs.
Opportunity: Investing in water-efficient technologies and sustainable
water management practices could reduce the Group's water footprint, -promote water conservation and water efficiency, enhance operational
efficiency and reduce operational costs.
Positive impact: Adopting stringent water management practices leads to sustainable operations by reducing water consumption and enhancing water recycling.
Negative impact: Inadequate water management may lead to regulatory
non-compliance, increased water stress and degradation of water quality, -potentially harming the marine environment.
Business & Operations
Business & Operations; Downstream
Business & Operations
Business & Operations
Business & Operations
Business & Operations
Medium-term
Medium-term
Short-term
Medium-term
Medium-term
Short-term
SHARING OUR PLANET
Material Topics Impacts, Risks and Opportunities
Alignment with UNSDGs (for positive impacts only)
Value chain [1] Time horizon [2]
w
Advancing circular economy through waste management
Conserving biodiversity
Risk: Improper waste management or non-compliance with environmental
regulations such as the Waste Disposal Ordinance could result in soil and -water contamination, biodiversity loss and associated public health risks,
exposing HKEI to reputational damage and financial penalties.
Positive impact: The adoption of practices of circular economy and waste reduction at source can lead to significant improvements in resource efficiency by reducing reliance on raw materials and minimising waste.
Negative impact: Ineffective waste management and practices of circular
economy could result in increased pollution and resource depletion, -exacerbating waste problems.
Risk: Failure to conserve biodiversity in energy infrastructure development could result in ecosystem degradation and reputational damage. The growing ecological
awareness may increase permitting costs and hinder approval from government and -
communities for RE projects.
Positive impact: Conserve local biodiversity, support ecosystem enhancement and ensure no insurmountable impacts on ecological resources due to our operations.
Negative impact: Inadequate conservation efforts may endanger protected
species and critical natural habitats, leading to ecosystem imbalances and -biodiversity loss.
Risk: Failure to meet stakeholders' expectations or regulatory requirement
Business & Operations
Business & Operations
Business & Operations
Business & Operations
Business & Operations
Business & Operations
Short-term
Medium-term
Short-term
Long-term
Long-term
Long-term
Medium-term
Promoting low-carbon behaviour
regarding promotion of low-carbon lifestyles can lead to reputational damage, customer dissatisfaction.
Positive impact: Support a healthier environment and empower communities by encouraging low-carbon lifestyles, leading to reduced greenhouse gas emissions and improved public awareness of climate action.
Downstream
Downstream
Medium-term
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
SERVING HONG KONG
Material Topics Impacts, Risks and Opportunities
Alignment with UNSDGs (for positive impacts only)
Value chain [1] Time horizon [2]
Risk: Unstable and insufficient electricity supply could lead to operational disruptions, reputational damage and potential regulatory penalties.
Opportunity: Investing in advanced grid technologies and asset management
- Business &
Operations
Business &
Short-term
Medium-term
Ensuring supply reliability and asset integrity
systems improves supply reliability, reduces service disruptions, enhances -customer satisfaction, and enables performance-based incentive returns under
the regulatory framework.
Positive impact: Help support the local societal and economic development by delivering a reliable and secure power supply.
Operations; Downstream
Short-term
Downstream
Negative impact: Unreliable or unsafe power supply will affect quality of life and cause disruptions to the societal and economic functioning.
Short-term
- Downstream
Facilitating
Risk: Imbalance of affordability and supply resiliency, particularly for underserved markets, could potentially lead to customer dissatisfaction and reputational harm.
Business &
- Operations; Downstream
Short-term
access to electricity and promoting affordability
Positive impact: Ensure that even low-income or vulnerable households can enjoy reliable and affordable electricity.
Negative impact: Increase the number of households living under the energy poverty line, if failing to ensure accessible and affordable electricity for those in need.
Short-term
Downstream
Medium-term
- Downstream
Safeguarding
Risk: Inadequate customer data protection and poor service quality can result
in data breaches, legal issues and reputational damage, leading to a loss of -customer trust and market share.
Business & Operations; Downstream
Short-term
customer privacy, health and service quality
Promoting community relations and investments
Positive impact: High-quality service and strong data protection build customer trust and long-term loyalty.
Negative impact: May lead to bad customer experience and leakage or misuse of personal data or unauthorised access to such data, if no suitable policies and initiatives are in place.
Risk: Lack of community engagement can expose HKEI to public criticism and damage HKEI's reputation.
Positive impact: Encourage and promote effective public, public-private and civil society partnerships, in building an inclusive and sustainable community.
Long-term
Downstream
Short-term
Downstream
Medium-term
Downstream
Medium-term
Downstream
Strengthening cybersecurity
Risk: Inadequate cybersecurity measures could lead to cyber-attacks,
data leaks and operational disruptions, violating the Protection of Critical -Infrastructures (Computer Systems) Ordinance.
Positive impact: Protect sensitive customer data and critical infrastructure from digital threats, thereby ensuring reliable electricity supply and avoiding associated inconvenience to customers.
Negative impact: Lack of cybersecurity measures may lead to data breaches, -exposing sensitive information and disrupting essential services.
Business & Operations
Business & Operations; Downstream
Business & Operations; Downstream
Short-term
Medium-term
Short-term
WORKING WITH PARTNERS
Material Topics Impacts, Risks and Opportunities
Alignment with UNSDGs (for positive impacts only)
Value chain [1] Time horizon [2]
Risk: Exposure to hazardous conditions, may compromise HKEI's ability to maintain safe working conditions and comply with safety regulations.
- Business &
Operations
Short-term
Prioritising occupational health and safety
Positive impact: Promote greater hazard awareness and change the way people approach risk, prevent illness and promote healthy lifestyles, and hence provide lasting benefits for the workforce, their families and the general public.
Negative impact: Increase the risk of work-related illness, injury and death, if failing to implement sufficient health and safety procedures.
Risk: Failure to provide decent job opportunities may hinder talent attraction and retention, adversely impacting productivity and service quality.
Business & Operations
Business &
Operations
Business &
Operations
Medium-term
Short-term
Medium-term
Managing human capital effectively
Positive impact: Promote sustained and inclusive economic growth and facilitate the creation of personal, social, and economic well-being through providing stable and decent jobs, and strengthening the knowledge and skills of employees.
Negative impact: Ineffective human capital management may reduce
job quality and negatively affect our operational performance and -service delivery.
Business & Operations
Business & Operations
Medium-term
Medium-term
Establishing a sustainable supply chain
Upholding and managing human rights
Risk: Failure to effectively evaluate and monitor suppliers against ESG requirements and recognised international standards could lead to compliance, reputational and performance risks.
Risk: Unstable supply chain, with fluctuations in availability, price, and delivery of raw materials, could lead to higher operational expenses, increased product prices and changes in supply chain strategies.
Negative impact: Failure to promote sustainability across the supply chain may contribute to poor labour conditions and environmental harm, undermining broader social and ecological well-being.
Risk: Neglecting human rights or engaging in unethical practices may lead to adverse impacts on employees or other stakeholders and result in reputational, operational and legal challenges.
Negative impact: Inadequate management of human rights may lead to infringements affecting employees and other stakeholders.
Upstream
Upstream
Upstream
Upstream;
Business &
Operations
Upstream;
Business &
Operations
Short-term
Short-term
Medium-term
Short-term
Short-term
Promoting diversity, equity and inclusion
Risk: Lack of diversity and fairness can result in employee dissatisfaction, decreased productivity and higher turnover.
Positive impact: Enhance organisational performance and hence contributions to society, by bringing diverse skills, experiences and perspectives.
Business &
Operations
Business & Operations
Short-term
Medium-term
Notes:
Value chain is composed of Upstream, Business & Operations, and Downstream.
Time horizon is classified as short-term (<1 year), medium-term (1-5 years), and long-term (>5 years).
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Sustainable Development Goals and Targets
HKEI is committed to furthering the United Nations' 2030 Agenda for Sustainable Development and its 17 SDGs, designed to end poverty, protect the planet, and ensure peace and prosperity for everyone by 2030. We align our sustainability efforts with these SDGs, striving to extend our impact and deliver meaningful contributions throughout our entire value chain.
We have established targets to gauge our progress towards helping achieve these SDGs and report
Progress on Sustainability Targets
Running A Sustainable Business
annually on our performance against these targets. We particularly focus on the following six SDGs, which closely align with our corporate strategies and business priorities.
Goal 7: Affordable and Clean Energy
Goal 8: Decent Work and Economic Growth Goal 9: Industry, Innovation, and Infrastructure Goal 11: Sustainable Cities and Communities
Goal 12: Responsible Consumption and Production Goal 13: Climate Action
Alignment
Sustainability Targets Progress in 2025 with UNSDGs
Enhance asset integrity in the face of climate change [1]:
Complete a retro-commissioning project for one office building at LPS to optimise use of energy by 2025.Retrofit substations with floor level of less than +6 m PD (Principal Datum) and within the areas identified by the relevant government department as subject to storm-surge impacts with flooding alarms and bund walls in two phases:
Phase I: Complete retrofitting work for substations situated within 100 m of coastline by Q1 2025.
Phase II: Complete retrofitting work for substations situated outside 100 m of coastline by Q2 2026.
Complete a retro-commissioning project for one office building at LPS to optimise use of energy by 2028. [1]
Encourage innovation and use of new technology for enhancing productivity and operational effectiveness [1] [2]:
Continue to introduce innovative problem-solving tools and technology updates to employees through in-house training and sharing sessions.Continue to introduce innovative initiatives to enhance productivity and operational effectiveness.
Encourage innovation and use of new technology for enhancing productivity and operational effectiveness [1]:
Introduce innovative problem-solving tools and technology updates to employees by arranging at least 30 sessions of engagement activities under the different Learning Communities and Special Interest Groups in 2026.Introduce innovative initiatives to enhance productivity and operational effectiveness by securing at least 40 deliverables under the different Learning Communities in 2026.
Engage business partners & targeted stakeholders on smart zero-carbon caring city & sustainability [1]:
Arrange 100 engagement activities such as workshops and seminars during the period from 2024 to 2028.In Progress
The retro-commissioning project for the Fire & Security Building at LPS and Phase I of the substation retrofitting work were completed in 2025. For Phase II, anti-flooding measures were installed in 123 out of 135 substations.
Extended Target
Achieved
New Target
In Progress
38 engagement activities were arranged from 2024 to 2025.
Engage 58,000 fans via our corporate and campaign Facebook pages in 2025 [1].
AchievedEngage 75,000 fans via our corporate and campaign Facebook pages in 2026 [1]. Extended Target
Sharing Our Planet
Sustainability Targets Progress in 2025
Alignment with UNSDGs
Replace coal-fired units with gas-fired units to reduce carbon emissions [1]:
Commission a new gas-fired unit, L13, in early 2029.Increase the use of RE [1]:
Increase aggregate electricity generated from RE sources of HK Electric and its customers to over 15 GWh/year by 2028.In Progress
The foundation work for the gas-fired unit, L13 was completed
in 2025. Subsequent excavation and superstructure works are underway.
AchievedAhead of schedule in 2025 Aggregate electricity generated from RE sources was over 15.9 GWh in 2025 and the target would be revised from over 15 to over 18 GWh/year.
Increase the use of RE [1]:
Increase aggregate electricity generated from RE sources of HK Electric and its customers to over 18 GWh/year by 2028.Extended Target
Reduce carbon emissions per electricity unit sold [1]:
Ensure yearly average emissions do not exceed 0.5 kg of CO2e per kWh by 2029.In Progress
The yearly average carbon emissions per electricity unit sold was 0.59 kg of CO2e per kWh in 2025.
Reduce emissions of air pollutants from power generation [1]:
Control yearly emissions of sulphur dioxide, nitrogen oxides and respirable suspended particulates to within the emission caps stipulated in the relevant Technical Memorandum under the Air Pollution Control Ordinance.Achieved
Conserve natural resources & reduce waste generation [1]:
Reduce total electricity consumption, water consumption, paper consumption and waste generation of key office premises including Hongkong Electric Centre, Electric Tower, Electric Centre and seven main buildings at LPS by 5%, 1%, 10% and 10% respectively in 2025 as compared to that in 2020.Collect 5,000 kg of used lead-acid batteries for recycling by local recyclers each year during the period from 2024 to 2028.
Achieved In Progress
5,900 kg of lead-acid batteries were collected for recycling by local recyclers in 2025.
Conserve natural resources & reduce waste generation [1]:
Reduce total operational electricity consumption and water consumption for power generation at LPS both by 7% in 2030 as compared with 2025. [3]
Reduce total electricity consumption, water consumption, paper consumption and waste generation of key office buildings including Hongkong Electric Centre, Electric Tower and Electric Centre by 5%, 1%, 7% and 5% respectively
in 2030 as compared with 2025.
Extended Target
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Sustainability Targets Progress in 2025
Alignment with UNSDGs
Engage the public on combatting climate change and adopting low-carbon lifestyles [1]:
Organise 1,600 education and promotion activities during the period from2024 to 2028.
In ProgressMore than 1,400 education and promotion activities were
organised from 2024 to 2025 and the target would be revised to 2,000 activities during the period 2024 to 2028.
Organise 2,000 education and promotion activities during the period from 2024 to 2028 [1].
Extended Target
Mid-term carbon intensity target aligns with Paris Agreement and was validated and approved by the Science Based Target initiative ("SBTi") in 2022 [1] [4]:
Reduce Scope 1 GHG emissions per kWh of electricity generated by 68.4% by 2035 as compared to that in 2019.In Progress
Collect at least 80,000 m3 of plant effluent and rainwater for reuse at LPS in 2025.
AchievedCollect at least 80,000 m3 of plant effluent and rainwater for reuse at LPS in 2026. Extended Target
Plant at least one more species of native trees or shrubs at LPS in 2025 to support biodiversity
Extended Target
Plant at least one more species of native trees or shrubs at LPS in 2026 to support biodiversity.
Extended Target
Reduce food waste at the canteen of LPS in 2025 as compared to that in 2024. [1]
AchievedReduce food waste at the canteen of LPS in 2026 as compared to that in 2025. [1] Extended Target
Reduce the fuel usage of the registered non-EVs of vehicle fleet, excluding vehicles for emergency use, in 2025 to a level not more than that in 2024. [1]
Achieved
Reduce the fuel usage of the registered non-EVs of vehicle fleet, excluding vehicles for emergency use, in 2026 to a level not more than that in 2025. [1]
Extended Target
Increase total mileage of EVs of vehicle fleet to exceed total mileage of non-EV in 2025. [1]
Achieved
Increase total mileage of EVs of vehicle fleet to exceed total mileage of non-EV in 2026. [1]
Extended Target
Sustainability Targets Progress in 2025
Alignment with UNSDGs
Obtain at least one Wastewi$e Certificate and one Energywi$e Certificate under the Hong Kong Green Organisation Certification Scheme in 2025. [1]
Achieved
Obtain at least one Wastewi$e Certificate and one Energywi$e Certificate under the Hong Kong Green Organisation Certification Scheme in 2026. [1]
Extended Target
Conduct a retro-commissioning project for Hongkong Electric Centre in 2025. [1]
AchievedThe retro-commissioning works for the 4/F of the Hongkong Electric Centre were completed in 2025. The project has been expanded to cover the 3/F and is scheduled for implementation in 2026.
Involve 140,000 participants in green education activities in 2025. [1]
AchievedInvolve 170,000 participants in green education activities in 2026. [1] Extended Target
Conduct a bird survey in LPS in 2025 spanning summer and winter to assess and enhance biodiversity conservation efforts.
Achieved
Reuse at least 5,000 litres of the used turbine oil from the retired units in other generating units and equipment in 2025. [1]
Achieved
Recover at least 5,000 m3 of rejected water by the Brine Recovery Reverse Osmosis ("BRRO") System in 2026.
New Target
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Serving Hong Kong
Sustainability Targets Progress in 2025
Alignment with UNSDGs
Maintain a safe and reliable electricity supply [1]:
Maintain a yearly supply reliability rating of better than 99.999%.Alleviate the impact on reliability of fuel supply and the pressure on electricity tariffs due to volatility in global fuel market [1]:
Continue to source worldwide cost-competitive fuels of suitable quality tomeet fuel demand.
Deploy smart meters [1]:
Complete full-scale smart meter deployment by 2025.
AchievedAchieved
Achieved
Promote electrification to improve energy efficiency and reduce carbon emissions [1]:
Support 100 construction sites to use grid-electricity supply to replace dieselgenerators during the period from 2024 to 2028.
Support 20,000 parking spaces to install EV charging-enabling infrastructure during the period from 2024 to 2028.Support 500 businesses to adopt energy-efficient electrical equipment for
business operations during the period from 2024 to 2028.
Provide free energy audits for non-residential customers and subsidies to building owners for implementing energy efficiency enhancement projects [1]:
Complete 1,000 audits and subsidise 500 buildings during the period from2024 to 2028.
In ProgressFrom 2024 to 2025, 40
construction sites were supported to adopt grid-electricity supply to replace diesel generators, about 15,000 parking spaces were supported to install EV charging-enabling infrastructure and
199 businesses were supported to adopt energy-efficient electrical equipment for business operations.
In ProgressFrom 2024 to 2025, 426 free Smart Power Energy Audits were completed and subsidies for 354 buildings were approved.
Complete at least 200 audits under Smart Power Energy Audit in 2025, particularly for NGOs, schools and SMEs. [1]
Achieved
Complete at least 200 audits under Smart Power Energy Audit in 2026, particularly for NGOs, schools and SMEs. [1]
Extended Target
Confirm the subsidies for energy efficiency enhancement projects of at least 100 buildings in 2025, including residential buildings, commercial buildings, NGO buildings and schools. [1]
Achieved
Confirm the subsidies for energy efficiency enhancement projects of at least 100 buildings in 2026, including residential buildings, commercial buildings, NGO buildings and schools. [1]
Extended Target
Sustainability Targets Progress in 2025
Alignment with UNSDGs
Fulfil all our customer service pledges, embracing supply reliability, speediness of provision of supply and other customer services, including emergency services, in 2025. [1]
Achieved
Fulfil all our customer service pledges, embracing supply reliability, speediness of provision of supply and other customer services, including emergency services, in 2026. [1]
Extended Target
Further expand the Plant Ownership Programme at LPS by adding at least one new project in 2025 to enhance plant reliability and availability, and to facilitate development of young engineers. [1]
Achieved
To execute at least one new project at LPS under the Plant Ownership Programme in 2026 to enhance plant reliability and availability, and to facilitate development of young engineers. [1]
Extended Target
Launch a promotion programme on electronic billing and the HK Electric App in 2025 to encourage more customers to switch to electronic services. [1]
Achieved
Complete as least one new Reliability Centred Maintenance ("RCM") project in 2025. [1] Achieved
Complete at least one new Reliability Centred Maintenance ("RCM") project in 2026. [1] Extended Target
HKEI in Brief
Our Business Model and Value Chain
Sustainability Governance
Stakeholder Engagement and Materiality Assessment
Sustainable Development Goals and Targets
Working with Partners
Sustainability Targets Progress in 2025
Alignment with UNSDGs
Ensure employees are paid fairly [1]:
Continue to implement a pay-for-performance policy and ensure timely review.Promote and incentivise health and safety [1]:
Hold at least two webinars and one forum per yearContinue to implement a Safety Excellence Scheme and Safe Driving Incentive Scheme.
Achieved AchievedAchieve a reduction in the Lost Time Injury Frequency Rate in 2025 as compared to the average over the previous three years.
Achieve a reduction in the Lost Time Injury Frequency Rate in 2026 as compared to the average over the previous three years.
Achieve a reduction in the Lost Time Injury Severity Rate in 2025 as compared to the average over the previous three years.
Not AchievedThe Lost Time Injury Frequency Rate was 0.17 in 2025, which is higher than the average over the previous three years of 0.09.
Extended Target Not Achieved
The Lost Time Injury Severity Rate was 3.01 in 2025, which is higher than the average over the previous three years of 0.82.
Achieve a reduction in the Lost Time Injury Severity Rate in 2026 as compared to the
average over the previous three years. Extended Target
Obtain at least three Excellent Class IAQ Certificates under the Government's IAQ Certification Scheme in 2025.
Achieved
Obtain at least three Excellent Class IAQ Certificates under the Government's
IAQ Certification Scheme in 2026. Extended Target
Organise a series of health talks and interest classes to enable our employees to maintain a healthy and balanced lifestyle in 2025.
Achieved
Organise a series of health talks and interest classes to enable our employees
to maintain a healthy and balanced lifestyle in 2026. Extended Target
Build capacity in HK Electric's supply chain [1]:
Hold a Supplier Engagement Seminar in 2026 to enhance suppliers' awareness on GHG emission and other sustainability topics.New Target
Notes:
Targets for the six particularly focused SDGs, which closely align with our corporate strategies and business priorities, including SDG 7, 8, 9, 11, 12 and 13.
This target on innovation is further quantified for 2026 and replaced by a new target.
This water consumption target refers to freshwater and replaces the previous corporate water-intensity target, providing better reflection of actual resource utilisation.
Our science-based target is in line with the well-below 2°C pathway following the Sectoral Decarbonisation Approach.
for the Investing Future
Running a Sustainable Business
Sharing our Planet Serving Hong Kong Working with Partners
Running a Sustainable Business
Overview
At HKEI, our Vision, Missions and Core Values shape our belief that success goes beyond financial performance to creating lasting value for people and the planet. Guided by our Sustainability Policy and Framework, we embed sustainability into every aspect of our operations. By engaging a wide range of stakeholders, including shareholders, employees, suppliers, customers, business partners, communities and government authorities, we strive to create long-term shared value and advance our mission.
Through strategic governance, prudent financial management and operational efficiency, we maintain steady growth and resilience in a rapidly changing environment. In line with the Corporate Governance Code of the Main Board Listing Rules of Hong Kong Stock Exchange, our corporate governance framework uphold high standards of ethics, transparency and accountability, strengthening stakeholder confidence, and supporting sustainable investment and long-term growth.
Innovation and integrity are foundations to our approach. By fostering a culture of innovation, nurturing talent and embracing collaboration, we are well prepared for future challenges. Leveraging technology, we address climate-related risks and opportunities, support vulnerable communities facing rising energy costs, and contribute to a just and inclusive transition towards a low-carbon economy.
Key Corporate Policies
Our corporate policies embody our commitment to responsible business practices across workplace standards, environmental sustainability, community engagement and ethical conduct. To address evolving operational and regulatory requirements, these policies are subject to regular review and approval by the Board, with the support of its committees and Senior Management.
The following key Corporate Policies are available on our corporate website.
Corporate governance policies Sustainability policies
Anti-Fraud and Anti-Bribery Policy Board Diversity Policy
Code of Conduct and its Addendum - Guidelines for Proper Use of Internet and Social Media
Director Nomination Policy
Holder of Share Stapled Units Communication Policy
Information Security Policy Personal Data Privacy Policy
Policy on Inside Information and Securities Dealing
Whistleblowing Policy
Sustainability Policy Anti-harassment Policy Biodiversity Policy
Code of Practice for Suppliers Complaints Handling Policy Corporate Security Policy Customer Services Policy Environmental Policy
Health & Safety Policy Human Rights Policy
Learning and Development Policy
Media, Stakeholder Engagement and Community Investment Policy
Quality Policy
Sustainable Procurement Policy
Workforce Diversity Policy
38