Group Sustainability Report
September 2021

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CONTENTSPAGEABOUT THIS REPORT3CHAIRMAN’S MESSAGE TO STAKEHOLDERS

4

1. ABOUT CLSA

6

1.1 About the Company
1.2 Business Overview
1.3 30 Years of Insights
1.4 Global Reach
1.5 Ownership and Management Team
1.6 Key Facts
2. EXCELLENCE IN INVESTMENT SERVICES

12

2.1 Business Principles
2.2 Outstanding Client Care
2.3 Independent Research
2.4 Renowned Investor Forums and CLSA U
2.5 Quality Execution Services
2.6 Reliable Technology Platforms
3. SUSTAINABILITY@CLSA

17

3.1 Highlights
3.2 Sustainability Framework
3.3 Our Stakeholders, Materiality and Engagement
4. CORPORATE GOVERNANCE

22

4.1 Approach and Structure
4.2 ESG Responsibilities
4.3 Risk Management
4.4 Compliance
4.5 Internal Audit
4.6 Ethical Management
4.7 Corporate Governance Training
4.8 Supplier Management
4.9 Information Security
5. INVESTING RESPONSIBLY: INTEGRATING ESG INTO THE BUSINESS
5.1 Introduction
5.2 Asset Management
5.3 CLSA’s Other Businesses
5.4 Equity Research

31

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CONTENTS

PAGE

6. OUR PEOPLE

38

6.1 Overview
6.2 Recruitment, Retention and Promotion
6.3 Health, Safety and Wellbeing
6.4 Evaluation and Compensation
6.5 Employee Engagement
6.6 Learning and Development
7. OUR ENVIRONMENTAL PERFORMANCE

43

7.1 Environmental Management Approach
7.2 Environmental Metrics
8. OUR COMMUNITY

47

8.1 Investment and Engagement
8.2 Community Outreach and Volunteering
APPENDIX A
CLSA’s GRI Standards Content Index

65

ABOUT THIS REPORTThis sustainability report has been produced by CLSA to share our corporate environmental, socialand governance (ESG) commitments, practices and activities. It provides both general and specificinformation and covers from January to December 2020 with references to data from years prior.
This report has been prepared with reference to the Global Reporting Initiative (GRI)’s Standards:
Core option, including the Reporting Principles, relevant Material Topics and Disclosures. The scopeof the report covers CLSA’s operations globally, unless specified otherwise.
Feedback and requests for further information are welcome and can be made to:communications@clsa.com.

CLSA Group Sustainability Report – 2020

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CHAIRMAN’S MESSAGE TO STAKEHOLDERS
Dear Stakeholders,
2020 was a difficult year with disruption brought by the ongoing pandemic and we have all
experienced one of the most critical years of transformation and uncertainty in history.
Being the global business platform of Asia’s leading capital markets and investment group –CITIC Securities, we take the responsibility to all our stakeholders seriously and make every
effort to enhance our environmental, social and corporate governance (ESG) performance.
Our mandate of creating lasting value while growing our business responsibly underpins
every step we have taken despite the unprecedented challenges.
Sustainability governance has come under the spotlight in the global arena, especiallyduring times of instability. CLSA’s integration with CITIC Securities International (CSI) in 2017has allowed us to take a more comprehensive approach to addressing ESG risks andopportunities across our global operations. In support of our commitment to transparency,
we are proud to publish our 2020 CLSA Group Sustainability Report, outlining our approach
to integrating ESG into our business and our initiatives and performance in 2020. Investors
and clients can refer to this report and we welcome your suggestions and advice to further
develop our sustainability strategies.
We see challenges as opportunities. With better implementation of ESG strategies after the
integration, our on-the-ground teams can leverage their network and knowledge to capture
global investment opportunities in 15 markets across 13 countries. With our unique Belt andRoad positioning, we are especially at the cutting edge of the China markets and the recordbreaking profits from our Investment Banking Department since the integration in 2013 is
the best proof of our efforts last year.
We recognise the importance of sustainable development in long-term businessdevelopment and our long-standing commitment to sustainability is firm and unwavering. In
the past few years, we have made significant strides in our efforts to report on ESG toensure we benchmark ourselves to the global reporting standards. Since 2017, we havebeen providing data to support our parent company’s reporting requirements for the Hong
Kong Stock Exchange and CLSA Capital Partners Group has been a signatory to the United
Nations Principles for Responsible Investment (UN PRI). In the same year, we also took ourcommitment to the next level by adopting the Global Reporting Initiative (GRI) Standards,
thereby setting the course for a long-term strategy that prioritises sustainability issues in all
aspects of our business and relationships.
CLSA is committed to reducing our consumption of natural resources and impact on theenvironment. We take care of every aspect of our environment and we have adopted anarray of approaches to address various environmental issues, including but not limited tosustainable design, indoor air quality, water, waste reduction and supplier auditing. 2020
also marks our 13th year of operating an ISO 14001-certified environmental management
system, proving our determination in upholding sustainability. CLSA Capital Partners haslaunched the Clean Resources Asia Growth Fund to partners with innovative companies in
the clean technology sector. The fund focuses on sustainable agriculture, water, recycling,5energy efficiency and cleaner energy with portfolio investments in size between US$2.5
million and US$13.9 million.
While the pandemic presented challenges to community engagement, we strived to reachout to members of communities and to engage in community service. CLSA employees
across our network volunteered over 1,540 hours in 2019 and 2020 within their local
communities, via the Community Outreach programme, including 333 people in Hong Kong.
On top of that, we have cooperated with more than 130 non-profit organisations and over
US$30 million has been donated to over half a million of the world’s most needy throughour Chairman’s Trust since 2007.
Besides our commitment to the environment and the society, we also endeavour topromote good corporate governance practices. At CLSA we have introduced a corporate
governance framework that ensures the oversight, stewardship and sustainability of CLSA’s
businesses and reputation. We have established 12 internal committees to monitor our
progress in improving our performance in risk management, compliance, internal audit,
ethical management, supplier management, information security.
Looking forward, we will continue to hold our colleagues and operations to the highest
principles to ensure the sustainability of our business, the positive impact we have in themarket, our responsibility to our stakeholders and the maintenance of our brand andreputation. With the best interests of our business and more broadly of society and theenvironment in mind, we aim to implement the following going forward:






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Recognising the positive impact that ESG considerations can have when acting inaccordance with the interests of investors, the current ESG initiatives being
implemented will continue to be extended across more business lines to further oursustainability impact.
In accordance with our belief that our diverse workforce is truly our most valuableasset, we will continue to prioritise health, safety and wellbeing, retention andengagement strategies while providing meaningful learning and development
opportunities for employee growth.
Our procurement process will continue to integrate ESG risks and performance into
our engagement with suppliers and to seek goods and services that featuresustainable attributes.
Our dedication to community outreach will remain steadfast through increasingly
robust programmes that provide financial and human capital to support
disadvantaged individuals across the globe.
Our focus on environmental stewardship continues to drive us to minimise ourenvironmental footprint.

We believe that incorporating sustainability in our everyday operations is not just the rightthing to do, but also something that will enhance stakeholder value in the years to come.
Yours sincerely,

Youjun Zhang
Chairman of CLSA
CLSA Group Sustainability Report – 2020

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SECTION 1: ABOUT CLSA
1.1
1.2
1.3
1.4
1.5
1.6

About the Company
Business Overview
30 Years of Insights
Global Reach
Ownership and Management TeamKey Facts

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1.1
About the Company
CLSA is Asia’s leading capital markets and investment group. Established in Hong Kong in 1986, CLSA
connects global institutional investors, corporations, governments and high-net worth individuals toinsights, liquidity and capital to drive their investment strategies. CLSA’s award winning research,extensive Asian network, direct link to China and highly-experienced financial professionals set us
apart from global investment banks and regional players.
Over three decades, CLSA has built an extensive network with deep local knowledge andconnections across 13 countries (15 markets) in Asia. Globally, CLSA serves clients from Asia,
Australia, Europe and the United States.
Our Strengths:
Insights
 Award-winning research into the companies, economies, markets and innovations impacting
global investment mandates
 No.2 Overall Combined Regional Research & Sales in Asia (ex-Australia & Japan)1


No.2 Overall Combined Research & Sales in China (A & B shares) 1



No.3 Overall Combined Research & Sales in Australia1

Liquidity 15 Asian exchange memberships and access to 60+ equity exchanges globally No.1 Best Brokerage for Equity Execution as voted by institutional investors2
Capital No.1 Equity Capital Market Bookrunner in 2020 (Asia Pacific ex Asia Australia and CentralAsia)3
 No.2 Announced Mergers and Acquisitions deals (Asia ex-Japan) in 20204
1Asiamoney Brokers Poll 2020
2Asiamoney Brokers Poll 2018
3Refinitiv 2020
4Mergermarket 2020

Corporate Culture
CLSA’s corporate culture is open, inclusive and based on a ‘can do’, client-centric approach. For morethan 30 years, we have built our business across Asia and globally through the acceptance andcelebration of clients and staff of all cultures, ethnicities, religions and genders. We recognise that
our most valued assets are our people, reputation and intellectual capital.
1.2
Business Overview
At CLSA, clients always come first. Our overarching objective is to provide unparalleled insights,
differentiated execution and access to capital that empower our clients’ investment decisions.
The company’s key areas of business are:
INSTITUTIONAL SERVICESASSET MANAGEMENT Real Estate Private Equity
 Transportation and Real Assets
 Credit Strategies

CLSA Group Sustainability Report – 2020

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CORPORATE FINANCE & CAPITAL MARKETS Equity Capital Markets
 Equity Linked
 Global Debt Finance Mergers & Acquisitions
SECURITIES Institutional Equities
 Fixed Income
 Equity Derivatives
 Structured Finance
RETAIL SERVICESWEALTH MANAGEMENT Retail Broking
 Margin Lending Advisory
1.3
30 Years of Insights
CLSA was founded in 1986 by Jim Walker and Gary Coull, two former journalists who ensured CLSA’s
research was discerning, independent and required reading. For over 30 years we have told thestory of Asia. Over the years, we have led the conversation on topics that have fuelled the growth of
Asia while also raising issues that impact investment outcomes.
Our market-leading analysts, economists and strategists are renowned for producing unparalleledresearch, ideas and insights from a uniquely-Asian perspective. With our extensive, on-the-groundpresence, CLSA is the first to spot emerging issues and trends driving the region.
1.4
Global Reach
CLSA’s 1,826 employees and employees of CLSA affiliate businesses leverage their local knowledge
and global experience to serve institutional investors, governments, family offices, corporations andother investors in 13 countries across the globe.
CLSA operates wholly-owned and staffed offices in 15 markets in Asia, as well as in Europe and theUnited States. In Pakistan, Sri Lanka and Taiwan, CLSA operates through partner affiliates. In eachmarket we provide a variety of services to match client needs. See details of our global reach andextensive China network in the diagram below.

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Diagram 1: CLSA’s Global and China Networks1

1

Joint venture operations in Pakistan and Sri Lanka are not included in CLSA’s network scope.
CLSA Group Sustainability Report – 2020

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1.5

Ownership and Management Team

CLSA is a wholly-owned subsidiary of CITIC Securities Company Limited under CITIC Securities
International Company Limited. CLSA is governed by a BV Board (the Board) which meets quarterly.
The Board is responsible for promoting the long-term sustainable growth and success of the CLSA
Group. The Board aims to optimise the interests of the CLSA Group while committing to the highest
standards of integrity and ethics.
Management of key business areas is carried out by functional committees, with support from the
Audit Committee and Coordination Committee. Since early 2020 we have implemented an
integrated management system, under which the heads of various CLSA business lines report to thecorresponding business heads of CITIC Securities.
Integration with CITIC Securities: A Key Milestone
CLSA’s parent company CITIC Securities is China’s leading brokerage and investment bank2.
With the mission to become a world-class, China-focused, global investment bank, CITIC Securities
acquired CLSA in July 2013 and became the first Chinese brokerage to purchase a global financial
institution.
During 2017, CLSA integrated its business with CITIC Securities International (CSI) under the CLSA
brand.
Completed in May 2017, the integration was several years in the making with the management andteams of CLSA and CSI working closely together to determine synergies between the two companies.
CLSA was chosen as the brand for the integrated franchise as it had been established longer and was
better known in international markets. The integration combined the global market presence of
CLSA, with the comprehensive suite of products and services offered by CSI.
The integration has seen the finances of CLSA combined with those of CSI. As a result, themanagement of underlying assets, liabilities, banking relationships and capital bases now fall under aconsistent and coherent regime. This has provided opportunities for economies of scale and allows
CLSA to serve more effectively as the flagship of CITIC Securities in the international arena.
With a full suite of capital markets, products and services, we cater to the needs of investors andenterprises who are interested in inbound and outbound opportunities between Asia and rest of theworld. The integration has also resulted in a more comprehensive approach to environmental, socialand governance (ESG) issues across our global operations.
1.6
Key Facts
CLSA provides corporate finance and capital markets, asset management, alternative investment,
wealth management and securities services to global corporate and institutional clients.
 Headquartered in Hong Kong
 More than 1,800 employees globally Global network spans 13 countries across Asia, Australia, Europe and the United States Investment services include Securities, Corporate Finance & Capital Markets, AssetManagement and Wealth Management

2 CITIC Securities was the No.1 securities company in China in terms of revenue and net profit in 2020

according to its 2020 full-year financial results announced in March 2021.

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


Ranked the No.2 in Overall Combined Research & Sales in Asia (ex-Japan & Australia)(Asiamoney 2020)
Since 2007, the CLSA Chairman’s Trust has donated over US$30 million to more than 130
non-profit organisations

For more information about CLSA please visit our website https://www.clsa.com/about/

CLSA Group Sustainability Report – 2020

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SECTION 2: EXCELLENCE IN INVESTMENT SERVICES
2.1
2.2
2.3
2.4
2.5
2.6

Business Principles
Outstanding Client Care
Independent Research
Renowned Investor Forums and CLSA U
Quality Execution Services
Reliable Technology Platforms

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2.1
Business Principles
CLSA is committed to delivering superior products and services responsibly through reliable
technology platforms. We strive to achieve excellence in all aspects of our business by providing
high-quality customer care, execution, research and the renowned, CLSA Investor Forums.
Our Business Principles are based on the following: Excellence: We aim to surpass the ordinary through excellence in all that we do Innovation: We turn original ideas into commercial realities
 Integrity: We base our actions on moral and ethical principles
 Inclusion: Everyone is valued and essential to our success Celebration: We work hard to win and celebrate our achievements
2.2
Outstanding Client Care
CLSA’s clients represent many of the world’s largest institutional fund managers, hedge funds,
governments, sovereign wealth funds, family offices, private companies and listed corporations.
CLSA is renowned for providing outstanding client care. Our clients have recognised our exceptionalsales service through industry polls and numerous awards (see below). Our Institutional Equities and
Fixed Income client management teams support our clients from across the CLSA network. They are
dedicated to ensuring the highest levels of client care, always putting the client first.
Asset Management

Securities

Corporate Finance & CapitalMarkets


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


Institutional fund managers
Governments / SWF3
Endowment funds
Family offices / HNWI4Institutional fund managers
Hedge funds
Family offices / HNWI
Private companies
Listed corporations
Governments / SWF

Americas, Asia and Australia

Americas, Europe, Asia,
Australia
Asia, Australia, Europe

Table 1: CLSA’s Client BaseAwards:Asiamoney Brokers Poll 2020:o No.2 Overall Combined Regional Research and Sales in Asia (ex-Australia & Japan)o No.2 Overall Regional Research in Asia (ex-Australia & Japan)o No.2 Overall Regional in Asia (ex-Australia & Japan)o No.2 Overall Combined Research & Sales in China (A & B shares)o No.3 Overall Combined Research & Sales in Australiao No.1 Best Quantitative /Technical Analyst in Asiao No.1 Best Analyst for Banks in Asiao No.1 Best Analyst for Semiconductors & Semiconductor Equipment in Asia
 Asiamoney China Corporate and Investment Banking Awards 2020
o Best for Cross Border M&A: CLSA
 FinanceAsia Country Awards 2020
o Best Broker in China: CITIC Securities FinanceAsia Achievement Awards 2019o Best Broker in Asia: CLSA
 Sina Finance Hong Kong Financial Institutions Awards (HKFIA) 2020
3

Sovereign Wealth Funds

4 High-net Worth Individuals

CLSA Group Sustainability Report – 2020

14o Best IPO Advisor: CLSA
Euromoney’s Structured Retail Products (SRP) China Awards 2020
o Best Distributor, Securities House: CITIC Securities
o Best Performance, Securities House: CITIC Securities
o Best Domestic House: CITIC Securities
o Best Index Provider, Securities House: CITIC Securities

For more examples of awards received refer to: www.clsa.com/about/who-is-clsa/
2.3
Independent Research
Our commitment to our clients is to publish research that is impartial, independent, clear, fair andnot misleading. Our analysts do not receive compensation from the companies they cover.
Our Asset Management, Corporate Finance & Capital Markets, Securities and Research are distinct
from one another to maintain the independence and integrity of CLSA’s research. CLSA’s researchanalysts report to the management of the research department, who in turn report directly to
CLSA’s senior management.
Award-winning research through a single portal
Our dedicated research portal provides clients direct and secure access to CLSA’s award-winningresearch. This includes economic, company and country research, microanalysis and customised
charting capabilities. More than 100 research analysts cover 19 key industry sectors across 13
markets, providing deep sector and company insights that inform our client’s investment strategies.
CLSA is constantly enhancing the functionality of the research portal to ensure clients have access tothe most relevant and timely information to support their investment decisions.
Regional coverage
Our award-winning Asia research has informed global investors for decades. Unlike many of ourcompetitors, CLSA has dedicated market and sector analysts on the ground in our key markets
across Asia. We understand the region from a local perspective.
China coverage
CLSA’s China sector coverage and macro/micro-analysis of the market is renowned. Due to strong
client demand, CLSA now covers A shares, with the same level of critical analysis we have always
applied to companies. In 2020, research analysts from CLSA and CITICS covered 788 A shares. Our
coverage also includes collaboration with CITIC Securities on topics of shared interest such as One
Belt One Road.
2.4
Renowned Investor Forums and CLSA U
CLSA’s renowned Investor Forums are a key platform for knowledge exchange on all number of
topics that impact global investments, including ESG-related trends, theories, technologies andservices. CLSA secures global speakers and industry experts to present at CLSA Forums or toparticipate in our CLSA U programme.
CLSA U provides tailored courses to meet CLSA clients’ needs on any subject or theme. Instructors
and content are sourced from around the world ensuring clients have access to the best available
independent experts, unfiltered by CLSA analysts. Courses fall into four broad categories:
1.
2.
3.
4.

Sector dynamics and trends
Investment theories and techniques
Macro outlook/speaker series
CLSA U+

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CLSA U+ offers an array of experts to address personal health and development subjects such as
stress management, personal skills, executive health, effective parenting and personal wealthmanagement.
CLSA Forums have featured a number of distinguished speakers, including:


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











Al Gore - 45th Vice President of the United States
Alan Greenspan - Former chair of the Federal Reserve
Arnold Schwarzenegger - Actor and former governor of California
Ben Bernanke - Former chair of the Federal Reserve
Bill Clinton- 42nd President of the United StatesDavid Beckham - Former professional footballer & fashion icon
Dick Cheney - 46th Vice President of the United States
Drew Barrymore - Actress, producer, director and author
George Clooney - Actor, producer, director and entrepreneur
John Kerry - Presidential candidate & former Secretary of State
Joseph Stiglitz- Academic, author, economist and public policy analyst
Magic Johnson - NBA champion & CEO of Magic Johnson EnterpriseMichael Phelps - Olympic champion swimmer
Sarah Palin - Former governor of Alaska and candidate for Vice President

2020 CLSA Forums’ statistics are as follows*:
Institutional
Corporates
Investors
Investors’ Forum 2020
2,500
425
Japan Forum 2020
700
127
India Forum 2020
540
114
Table 2: Key Metrics of CLSA Forums in 2020

Scheduled
Meetings
2,200
860
430

*All forums in 2020 had turned to virtual format due to COVID-19.
2.5
Quality Execution Services
As a leader in Asia’s equities markets, our uniquely broad, local presence gives us early access toimportant information.
For the past 30 years, we have consistently retained a top-tier equity execution team to help ourfund manager clients capitalise on our best-in-class research. Our high-touch teams arecomplemented by low-touch solutions supported by one of the most experienced equity execution
teams in Asia. Our high-quality execution services can be seen in the following offerings:
Transaction Cost Analysis: CLSA has teamed up with Markit, allowing us to provide our clients withan unbiased and transparent assessment of our execution performance through customised reports.
Commission Sharing Agreements: CLSA has a dedicated team ready to assist our clients with setting
up and administering Commission Sharing Programmes. We follow the rules and regulations in eachjurisdiction and design programmes suitable to the specific requirements. We offer clients access toa web-based platform for a clear view of their balances and transactions and to allow easy
management of the payment process.
Front-to-back Service: Integrated middle and back office operations ensure highly-attentive andholistic trade servicing.

CLSA Group Sustainability Report – 2020

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2.6
Reliable Technology Platforms
CLSA ensures that all digital communications with clients occur on secure platforms and the highest
level of security is applied to protecting client data and information. We have implemented client
relationship management tools including Salesforce and our own customised information system(CIS) to ensure clients receive the highest levels of customer care. These relationship management
tools ensure our sales teams have visibility on client preferences around research, events,
roadshows and trading. In addition, feedback from client reviews is fed into the system, flagging
issues that arise across client accounts, allowing us to escalate and actively address concerns. This isa key function of our client strategy.
In addition, we have developed in-house technology platforms to manage our renowned CLSA
Forums. Constantly striving to enhance our clients’ experience at our award-winning conferences,
we have developed the CLSA Forum App to provide clients with digitised meeting schedules,
presentation materials and company and speaker profiles.
As markets have turned digital, we have built our own proprietary electronic trading platforms
which allow us the flexibility to meet our clients’ needs and innovate rapidly as the trading
environment changes.

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SECTION 3: SUSTAINABILITY@CLSA
3.1
3.2
3.3

Highlights
Sustainability Framework
Our Stakeholders, Materiality and Engagement

CLSA Group Sustainability Report – 2020

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3.1

Highlights in 2019-20
 CLSA Capital Partners has been a United Nations Principles for Responsible Investment(UN PRI) signatory since 27 September 2017
 Biannual Corporate Governance Watch report published Our diverse workforce comprises people of 34 different nationalities
 13th year of operating an ISO 14001-certified environmental management system
 In 2019-2020, US$0.5million was disbursed and pledged to a range of Chairman’s Trustcharities across Asia and beyond
 CLSA staff engaged in over 1,540 hours of volunteer work, via the Community Outreachprogramme, including 333 people in Hong Kong

3.2
Sustainability Framework
Overview
CLSA is focused on creating long-term value for all shareholders while growing our business
responsibly. A successful and sustainable business is our goal.
As our business grows under CITIC Securities and CLSA continues to expand its markets, weunderstand the importance of strengthening our commitment to integrate sustainability into ouroperations and investment processes and to reporting on our economic, social and governance(ESG) performance.
As outlined in the Corporate Governance section of this report, managing our ESG risks andopportunities, as part of our overall sustainability framework, is the responsibility of the Board with
implementation delegated to CLSA’s senior management.
Reporting
As a non-listed company, reporting on CLSA activity is not mandatory, but we recognise theimportance of ensuring transparency in our actions and disclosing appropriately. We continue tomove towards reporting against global reporting standards to ensure we benchmark ourselves tothe highest international standards as per below.


Hong Kong Stock Exchange. As a wholly-owned subsidiary of CITIC Securities (HK6030), we
have been providing data to support our parent company’s reporting requirements on ESG
since 2017.
Global Reporting Initiative (GRI). CLSA has prepared this report with reference to the GRI
Standards: Core option. This internationally-recognised, voluntary standard defines
principles and disclosure topics to measure and report on our ESG performance. Our
intention is that adopting the GRI Standards will increase transparency and comparability of
our metrics across our operations, and further our ESG performance
UN PRI. CLSA’s Asset Management business, CLSA Capital Partners, is a signatory of the UN
PRI and commenced reporting in 2019.

3.3
Our Stakeholders, Materiality and Engagement
CLSA takes care to engage with our stakeholders, those who are essential for the sustainability ofour business, in a responsible and sustained manner. Our key stakeholder groups, how we regularly
engage with them and the chief areas of interest for each stakeholder group are outlined below. The
issues that are material to our stakeholders, as raised in our ongoing dialogue and communication
channels, inform the scope of our sustainability reporting.

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Our stakeholder groups
Clients - asset managers, public andprivate corporations, governments
and high net-worth individuals

Employees – 1,800 CLSA colleagues in
18 CLSA offices across the globe

How we engage
with our stakeholders

Material topics to our stakeholders
along the value chain

Face-to-face meetings,
online servicing, annual
statements, surveys,
speaking at public andprivate events
Team meetings, appraisals,
intranet, training
programmes, emails

Service standards, financial
performance, business strength,
reputation, cyber security, good
governance, environmental and social
impact, including climate change
Remuneration, employee relations,training and development, diversity andinclusion, health and safety,
sustainability
Governance, ethics, anti-corruption,
cyber security, customer protection,
reporting

Regulators - market regulators in eachof the jurisdictions in which we
operateRegular open dialogue,
senior management
meetings

Media - international and local market
media in jurisdictions in which we
operateDaily interactions, media
releases, media events
such as roundtables andbriefings

Community and non-profit
Directly through activities
organisations - across Asia, Australia,
to provide voluntary
Europe and the US who receive CLSA
support and funding
funding or voluntary support from the
CLSA Chairman’s Trust and employees
Suppliers - of goods and services toAssessments, contract
support the seamless provision ofnegotiations, review
CLSA services. These include
meetings
companies in the legal, tax, finance,technology, communications andconsulting sectors
Table 3: Stakeholder Group Engagement and Material Topics

Financial performance, businessstrength, leadership, governance,
remuneration, diversity, environmental
and social impact, including climatechangeInclusion, education, disaster relief,environmental and social impact,
community funding to address climatechangeData protection, anti-bribery andcorruption, environment (waste
management), human and labour
rights, including modern slavery

Engagement with our stakeholders takes place through both formal and informal mechanisms.
Clients are engaged on a daily basis by front-line employees through messaging platforms, emails,
phone calls, face-to-face meetings and at our events. Annual account reviews are held for securities
clients and Limited Partners of CLSA’s Asset Management businesses to receive investment updates
and opportunities to question management about performance at Annual General Meetings.
Employees are engaged through annual staff performance management reviews. The informationfrom these reviews determine staff bonuses and are designed to raise issues of performance in aformal mechanism. Some staff, primarily client-facing sales staff, receive twice-yearly performance
reviews. CLSA further engages with employees through an internal online portal, departmental andtown hall meetings, business updates and other informal channels.
CLSA maintains an open dialogue with market regulators to ensure they understand the changing
nature of CLSA’s business. CLSA engages with journalists on a daily basis in both proactive andreactive ways. CLSA receives more than 1,300 media inquiries per year about its business andmarket research.
CLSA supports numerous charities across Asia through the CLSA Chairman’s Trust, providing closeand meaningful engagement with grassroots, not-for-profit organisations. The feedback we receivefrom these organisations is extremely positive. Refer to the testimonials below and the section on
Our Community in this report for a detailed list of charities.
CLSA Group Sustainability Report – 2020

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Testimonial - Lily Kasoem, Founder, Titian Foundation
A big earthquake hit Central Java and Yogyakarta in 2006. CLSA Jakarta immediately contacted me
and asked how they could help. The organisation I founded, Titian Foundation, discovered aschool that had been completely destroyed in the earthquake, in the small village of Bayat, 20 km
away from Yogyakarta. Luckily there had not been any casualties, as students were not at school
when the incident occurred.
About a week later Nick Cashmore who was then the CLSA Indonesia Country Head, travelled toBayat with me to see this school. We found all 600 students studying on top of the rubble, inmakeshift blue tents in the heat of blazing sun, where their school had once been. On the spot,
Nick decided to make a recommendation to the CLSA Chairman’s Trust to support a grant torebuild the school. A year later, a beautiful school was complete, and the students were burstingwith pride at the new and improved facilities. Bright new furniture complemented a wide rangeof new learning facilities such as a library, computer lab and science lab.
However, we subsequently realised that 65% of students at this school would drop out after
Grade Nine, when the government educational subsidy came to an end. As most of these students
came from disadvantaged backgrounds, their parents felt that leaving school at age 15 was theright time for their children to enter the workforce. When Nick Cashmore heard this statistic, hesimply said, “This cannot happen - we have to help these kids”. Shortly thereafter, the Chairman’s
Trust approved a grant to pay for the last three years of education for 50 students at Bayat.
Fast forwarding ten years to the present day, the village of Bayat, in conjunction with TitianFoundation, has produced almost 200 university graduates working in a variety of industries; 400
well-paid and well-regarded vocational school graduates work in factories (some even abroad in
Korea, Japan and Taiwan); and others have their own businesses. They all earn significantly higher
salaries than their parents and have successfully broken through the poverty cycle. They are
moving forward to a brighter future, and so will their children and future generations of theirfamilies.
As for Titian Foundation, it is an honour for us to witness and be a part of this incredible
transition; to be given the opportunity to mentor these bright students to lead them to acrossthe Titian (bridge). We thank everyone at the Chairman’s Trust for giving us this opportunity andfor trusting us to help these amazing young people. Indonesia thanks you too.

CLSA engages with numerous suppliers to facilitate the efficient and effective running of ourbusiness. CLSA’s supplier policy is implemented wherever a contractual relationship is in place. CLSA
plans to develop a sustainable sourcing policy to integrate consideration of ESG risks andperformance into our engagement with suppliers and to further our procurement of items andservices with sustainability attributes.
CLSA further engages with our stakeholders through memberships and involvement in the following
initiatives: Direct membership of 15 stock exchanges in Asia
 Asian Corporate Governance Association (refer to detail below)
 United Nations Principles of Responsible Investing (UN PRI)
 International Day of Forests - Tree Planting
 2019 International Olympic Day Run (Hong Kong) 2019 Charity Walk for Suicide Prevention Services (Hong Kong)

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


Chaitanya Mahila Mandal Foundation (India)
Intuition (Learning Management System)ACGA
CLSA is a founding member of the Asian Corporate Governance Association (ACGA). This nonprofit membership association is dedicated to promoting substantive improvements in corporate
governance in Asia through independent research, advocacy and education. ACGA engages in aconstructive dialogue with regulators, institutional investors and listed companies on key
corporate governance issues and works towards making improvements.
Together, CLSA and ACGA have co-published CG Watch reports in 2003, 2004, 2005, 2007, 2010,2012, 2014, 2016, 2018 and 2020. ACGA endorses the methodology used in the CLSA company
survey and undertook the market rankings, with input from CLSA. This is an eagerly sought-after
report that is unique and provides a comprehensive analysis of corporate governance practices
and regulatory developments in the markets in this region.
CLSA has been a sponsor of ACGA since 2001, and a regular participant to its annual member
conferences and events.

CLSA Group Sustainability Report – 2020

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SECTION 4: CORPORATE GOVERNANCE
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9

Approach and Structure
ESG Responsibilities
Risk Management
ComplianceInternal Audit
Ethical Management
Corporate Governance Training
Supplier Management
Information Security

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4.1
Approach and Structure
At CLSA we have established a corporate governance framework that ensures the oversight,
stewardship and sustainability of CLSA’s businesses and reputation. Our objective is to ensureongoing capital creation for our clients and sustained value for key stakeholders such that CLSA is
making a positive contribution to the global economy and the communities in which it operates.
Board Oversight
The CLSA BV Board (the “BV Board”) has overall responsibility for overseeing the CLSA Group’s
activities. The composition of the Board is decided by the shareholder. The Chair of the CLSA B.V.
Board, Mr. Youjun Zhang is also the Chairman of CITIC Securities, the parent company of CLSA.
The Board is responsible for setting strategic direction for and providing leadership to the CLSA
Group in order to deliver value to clients, shareholders and other stakeholders. The BV Board
supervises and manages the activities of the group, in conjunction with the senior management of
CLSA Limited and other relevant entities which are charged with the setting and implementation of
the strategies approved by the BV Board and the day-to-day running of the business.
The Board conducts a regular self-assessment of its performance. The outcome is discussed in Board
meetings. The latest assessment was done in 2020, the findings and conclusions thereof were duly
taken into consideration in fine-tuning and upgrading the corporate governance framework andpractices of CLSA.
CLSA BV Board
The BV Board’s membership comprises five individuals as follows:
Members

Roles
Chairman1

Youjun Zhang



Also Chairman of CITIC Securities, parent company of CLSA

Responsible for oversight on overall governance and performance of
CLSA as a whole2

Xiao Dong Lin

Vice Chairman of CLSA

3

LI Chunbo

Head of Global Institutional Equity Management Committee

4James Xu

Head of Equity Derivatives & Prime Brokerage

5Frank Yu

Head of IBD

Table 4: CLSA Board Membership
As CLSA Group is part of CITIC Securities, the CLSA Group’s governance structure is, to the extent
possible, aligned with the way in which CITIC Securities is governed. To strengthen CITIC Securities’
management and control over the CLSA Group and to comply with CSRC’s regulations, CITIC Securities
has determined that there should be general oversight by CITIC Securities’ senior managers being on
various committees and boards of CLSA Group. Regulated business lines in the CLSA Group (currently
comprising Asset Management, Private Equity, Corporate Finance & Capital Markets, EQD, FICC,
Institutional Equities, Research and Wealth Management) are subject to applicable regulatory
requirements such as licensing, code of conduct, requirements on internal controls and supervision,
financial resources rules, which are enforced by the SFC, MAS, FCA, SEC and others.
The regulated business lines of the CLSA Group operate in various licensed entities within the Group.
Each local Board is directly or indirectly appointed and/or controlled by CLSA BV Board and is
CLSA Group Sustainability Report – 2020

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ultimately responsible for the businesses and operations carried out by the respective licensed entityand for ensuring compliance with the applicable legal and regulatory requirements. As such, they arealso subject to the ordinary examination and inspection requirements of the SFC or any other local
regulatory authorities. In addition to the local Boards, The BV Board supervises and manages theactivities of the group, in conjunction with the senior management of CLSA Limited and other relevant
entities which are charged with the setting and implementation of the strategies approved by the BVBoard and the day-to-day running of the business. Further, for certain businesses, there may bevarious committees that may be set up for such business. For instances, the Business Commitment
Committee (BCC), Capital Commitment Committee (CCC) and the Quality Control Committee (QCC)
are all established for the purpose of managing the Investment Banking business which is conductedin various jurisdictions.
In addition, there are various internal committees which are responsible for attending to different
functional aspects of the CLSA Group’s businesses and activities as follows:
•
•
•
•
•
•

•

•
•
•

Risk Management Committee
Operational Risk Working Group
Group Disciplinary Committee
Anti-Bribery and Corruption Committee
Global Financial Crime Committee
FATCA CRS Steering Committee
New Product Approval GroupBest Execution Committee
Institutional Equities Executive Committee
Business Commitment Committee
Quality Control Committee
Capital Commitment Committee

All committees at CLSA are governed by detailed terms of reference which set out their respective
memberships, scope of purview/responsibilities/activities, frequency and mode of meetings, andescalation procedures should these become necessary.
4.2
ESG Responsibilities
The Board provides overall oversight of ESG risk and strategy for CLSA. The integration of ESG risk andopportunity management into CLSA’s operations and the review and improvement of CLSA’s
performance is delegated to senior management. The Board establishes ESG strategic goals to alignthe efforts of all employees and to allocate resources to improve our performance. Senior
management also monitors CLSA’s ESG performance and takes corrective action when necessary.
4.3
Risk Management
Central to CLSA’s success is the effective management of the risks that are inherent to our business.
A key focus of sound governance and Board oversight, our comprehensive risk management
processes assist CLSA in identifying, monitoring, evaluating and managing the risks we face in
conducting our business in the 15 markets across Asia in which we operate.
Reputational risk is assessed throughout the risk management process and imbedded into our risk
framework. All activities are assessed according to their potential impact on CLSA’s reputation –positive, negative or neutral. Those that potentially have a negative impact are reviewed, tested,challenged and finally directed for action to ensure the reputational risk is neutral or better.

25
Principles
Risk management is an intrinsic component of CLSA’s corporate governance structure. CLSA’s risk
management principles provide a guideline for creating higher corporate value even during times ofmarket volatility.
CLSA supports an independent risk oversight mechanism, the Risk Management Department, which
has remit and resources to assess and appraise each risk and to escalate it to the Risk Management
Committee. The Risk Department maintains a comprehensive view of all CLSA’s risks and hasdelegated authority to impose measures and controls where required. In 2020, there were no
incidents of critical concern that required the attention of senior governance bodies.
Framework
CLSA’s Risk Management department is part of CLSA’s corporate governance structure. Our mandateis the identification, oversight, management and control of certain risks, namely Market Risk, Credit
Risk, Operational Risk, Enterprise Risk and Technology Risk, as outlined below.
Group Chief Risk Officer (CRO)Head of
Head of
Head of
Head of
Head of Risk (US)Market Risk
Credit Risk
Operational Risk Enterprise Risk
Operational
Assesses the impact to CLSA's bottom line and/or our ability to continue operating
Riskpart or all of our businesses due to a compromise of internal processes (e.g. IT
Management
systems failure, fraud, operational workflow failures) or from external forces (such as
power outages, flooding, earthquakes, etc.). Operational Risk Management also
reviews risks to the business that include:- Legal and regulatory risk
- Business process risk
- Financial crime risk
- People risk
- Change risk
- Governance risk
Credit Risk
Assesses the impact on CLSA’s bottom line due to a failure of a client or counterparty
Control/Credit to pay what is owed to CLSA. Credit Risk teams are responsible for performing credit
Analysisanalysis over counterparties, assigning internal ratings, setting credit terms,
establishing credit limits, monitoring credit exposures and performing periodic limit
reviews.
Market Risk
Assesses the impact on CLSA’s business of market-driven events such as equity
Management
market fluctuations, foreign exchange, interest rates and political instability. Market
Risk Management is responsible for establishing limits, measuring, monitoring andreporting market risk exposures.
Technology
RiskManagement

Enterprise Risk
Management

Assesses the impact on CLSA's technology infrastructure from malicious or erroneous
actions that may cause infiltration of viruses, loss of confidential information andintellectual property, destruction or corruption of data or system failures. Managing
technology risk involves reviewing change releases, follow-up of mitigations for dataleakage or system failure, monitoring control reports and issue escalation.
Assesses the impact on CLSA’s business by capturing major risks that could preventthe firm from achieving its goals. Enterprise Risk works towards establishing aframework that employs a comprehensive, integrated approach to risk management.
It is designed to enable processes through which we identify, assess, monitor andmanage the risks we assume in conducting all our activities.

CLSA Group Sustainability Report – 2020

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Risk Control
CLSA’s three lines of defence model is used to provide clarity to staff and management around theirroles with respect to the identification, management and monitoring of risks. Responsibilities of staff
vary depending on which line of defence they are in, as outlined below.
First line: Front Office supervised by heads of business, business line COOs and responsible
officers. As the ultimate owners of risk within the organisation, they are responsible fordesigning appropriate mitigating controls.
Second line: Risk and Compliance. Supports the first line by way of monitoring and oversight ofrisk and control effectiveness.
Third line: Internal Audit. Provides independent assurance to senior management and the Board
over the effectiveness of the first and second lines.

CLSA’s Risk and Control Self-Assessment (RCSA) assists the three lines of defence with identification,
mitigation and monitoring of risks.
Business Continuity
CLSA is committed to ensuring staff safety and maintaining an effective business survival capability
in the event of a significant disruption such as loss of office premises, loss of systems, or
unavailability of staff due to a contagious disease or other event.
Every office within CLSA’s global network maintains and regularly tests business continuity capability
so as to be able to sustain business activities after the occurrence of an incident. The key aims areto: Protect staff, clients, counterparties, exchanges/clearing and markets from losses
 Protect CLSA from losses
 Protect CLSA from increased risk
 Minimise any interruption to the business Maintain compliance with laws and regulations under which the business is conducted
4.4
Compliance
The compliance function plays a critical role in ensuring the CLSA Group of businesses and their staff
are licensed and compliant with the rules and regulations governing our global business activities.
Throughout the organisation, we foster a culture of honesty, fairness and transparency throughproactive training of staff, offering practical regulatory advice to the business. Early identification,assessment and resolution of potential compliance issues is our focus.
The CLSA Global Compliance manual governs all aspects of our business. CLSA staff are required toacknowledge their understanding of the manual on an annual basis. CLSA staff are also required tocomply with a number of internal policies, including but not limited to; Conduct Risk Policy, Staff
Dealing, Outside Directorships, Anti-Bribery and Corruption, and Gifts and Entertainment.
CLSA Group Compliance supports staff that require regulatory licences and continuous professional
training requirements. Ensuring CLSA Group staff understand their compliance obligations throughongoing training, is a key aspect of the CLSA Group Compliance remit.
To monitor and assess compliance, test internal systems and controls, and identify non-compliancefor investigation and corrective and preventative action, CLSA Group Compliance conducts regularCompliance Monitoring Programs.

27
4.5
Internal Audit
Group Internal Audit (Group IA) is an independent function within the Group that appraises thesystem of internal control (including risk management, governance systems and processes) andreviews the Group’s level of adherence to those controls. To evaluate the risk exposures, theadequacy and effectiveness of controls in responding to risks within the organisation’s governance,
operations and information systems, Group IA conducts risk focused internal audits on all offices andbusiness units on a regular basis according to its annual risk assessment. If CLSA owns 50% or moreof a joint venture, as is the case for PT CLSA Sekuritas Indonesia and CLSA Exchange Capital, Inc., thebusiness is audited as part of the regular CLSA process as well.
4.6
Ethical Management
Ethical management underpins our approach to corporate governance, compliance and the day-today management of our business.
CLSA holds its staff and operations to the highest principles to ensure the sustainability of ourbusiness, the impact we have in the market, our responsibility to our stakeholders and themaintenance of brand and reputation.
Code of Conduct
Our Code of Conduct empowers CLSA employees to deliver superior value and service to clients andto support employees and the communities in which we live and operate. The Code of Conduct
covers our business dealings with clients, including human and labour rights policies and procedures,
appropriate use of assets, intellectual property, confidentiality of information, conflicts of interest,electronic communications, media policy and social media guidelines. It outlines how our employees
approach ethical decision making and what the business expects in terms of honesty, integrity,
professionalism, diversity, non-discrimination and equal opportunities. It provides guidelines forhealth and safety, freedom of association, community involvement and outlines roles andresponsibilities of managers and employees.
Violations of the Code of Conduct are dealt with by CLSA’s Disciplinary Committee and are treatedwith the utmost seriousness and confidentiality. CLSA takes compliance and conduct risk breaches
seriously. Since April 2020, Compliance has been keeping track of employees engaged in misconduct
and has been assigning “Conduct Risk Breaches” for those issues that fall in scope of the Conduct
Risk Policy. In 2020, the Conduct Risk Policy was revised to include measures of conduct risk
breaches, which also have implication to the staff and departmental performance assessment.
Conduct Risk breaches will be taken into account as part of the year-end appraisal and impact each
employees’ KPI assessment.
Whistleblowing
CLSA encourages a culture of confidence among staff to report suspected wrongdoing as soon as
possible in the knowledge that their concerns will be taken seriously, investigated appropriately andthat confidentiality will be respected. CLSA’s Whistleblowing Policy enables employees toconfidentially disclose information in good faith, without fear of adverse consequence, when they
have reason to suspect illegal or unethical behaviour within the Group or about their clients. To
ensure this, CLSA has a dedicated telephone hotline and email for whistleblowing, which protects
staff from retaliation when making a report in good faith.
Local laws and regulations may also impose certain mandatory whistleblowing obligations on staff,
such as matters relating to money laundering or terrorist financing. Where legal or regulatory
requirements impose higher standards than the requirements of our Whistleblowing Policy, the legal
and regulatory requirements prevail. In 2020, there were no cases raised that required action.

CLSA Group Sustainability Report – 2020

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Internal Controls
CLSA has embedded company-wide internal controls across the organisation to ensure a culture oftransparency and ethical business practices. These include but are not limited to: incident escalation,
anti-money laundering and know-your-customer (KYC) policies; gift and benefit declarations, antibribery and corruption declarations; as well as data-protection, IT security and systems that protect
clients, staff and the business. Staff must also declare outside interests and any directorships theyhold on listed or non-listed companies, including not-for-profit organisations.
CLSA’s Compliance and Internal Audit plays a vital role in ensuring regular checks on businesspractices and procedures are conducted. CLSA has also put in place a number of internal controls
designed to manage conflicts of interest that may arise as a result of CLSA engaging in corporate
finance, sales and trading and research activities. These controls include the use of information
barriers and other information controls designed to ensure that confidential information is only
shared on a “need to know” basis and in compliance with CLSA’s Chinese Wall policies andprocedures. These measures are designed to ensure that interactions that may occur among CLSA’s
research, corporate finance and sales and trading personnel, our financial product issuers andresearch analysts do not compromise the integrity and independence of CLSA’s research.
In 2020, CLSA did not have any cases of non-compliance with laws and/or regulations in the socialand economic area, and no political donations, financial or in-kind, were made in this period.
Anti-Bribery and Corruption
CLSA has established an Anti-Bribery and Corruption Policy as well as Gift and Entertainment Policy
which outline the company's approach to address bribery and corruption. The Anti-Bribery andCorruption Committee is responsible for overseeing matters in relation to bribery and corruption.
CLSA conducts review on Gifts and Entertainment every 6 month, and on a bi-annual basis, performs
review on anti-bribery and corruption risk. The main risks are assessed as being client entertainment
and use of third-party introducers for certain business. CLSA’s Anti-Bribery and Corruption Policies
are communicated to all members of governance bodies and employees and business partners. In
2020, there were no incidents of corruption involving employees or business partners and no legal
cases regarding corruption, anti-competitive behaviour, anti-trust or monopoly practices werebrought against CLSA or its employees.
Conflicts of Interest
Conflicts of interest are managed through the firm within each department. Compliance has put inplace Chinese Wall policy to manage conflict of interest between public and private side business ofthe firms. Control Room also maintained the Conflict of Interest policy which purpose is to ensurethat actual or perceived conflicts of interest that may arise between any of the following aremanaged in line with regulatory requirements and principles: i) CLSA and its associates; ii) CLSA’s
employees; iii) clients; and iv) affected counterparties. These policies are compliance guidelines forbusiness to follow and to ensure that CLSA is safeguarded from any potential regulatory fine or
censure and any potential reputational damage stemming from conflicts of interest between two
parties.
Sales and Marketing Practices
In most jurisdictions in which CLSA operates, CLSA’s broking licence does not permit marketing ofour products or services to retail clients. We are extremely mindful of these restrictions and adhere
to all regulations regarding sales practices, disclosure of information, and promotion on social
media. In 2020, there were no incidents of non-compliance with regulations and/or voluntary codes
concerning marketing communications.

29
Tax Strategy
CLSA is committed to a tax strategy that aligns with our business and corporate responsibility goals
and legal requirements in the jurisdictions where we operate. The Group Chief Financial Officer has
overall responsibility for execution of tax strategy5 and governance, with day-to-day responsibility
sitting with the Group Head of Tax.
4.7
Corporate Governance Training
CLSA instils integrity, ethical business practices and a compliance mind-set across the organisation sothat employees are fully aware of their legal and corporate responsibilities. Training is conducted
regularly across the organisation. This includes but is not limited to company-wide corporate training
as well as mandatory training on:
Risk Management


Operational Risk Management training is provided annually to COO’s across the CLSA Group.

Compliance TrainingFinancial Crime training - all staff are required to take a mandatory Global Financial Crime
online course on an annual basis, which contains references to anti-bribery and corruption.
This training also includes issues and risks associated with human trafficking and forced andchild labour to ensure CLSA is neither host to nor a conduit for illicit proceeds from modern
slavery, and that staff are able to monitor transactions for suspicious activity.
Anti-Bribery and Corruption training - all CLSA staff are required to complete a specific Antibribery and Corruption training which is administered biannually. Each year, a reminder is also
sent out to all staff reminding them of the Anti-Bribery and Corruption and Gift andEntertainment Policy. All CLSA staff are required to complete Conflict of Interest online course
on a bi-annual basis. The training serves as refresher to all CLSA employees regarding thefirm’s policy on managing conflicts and covers the Chinese Wall policy, other general conflictof interest topics with examples relevant to different business lines, including Investment
Banking, Sales and Trading, and Research. The Chinese Wall policy is also a topic included in
the induction training for all new hires.

4.8
Supplier Management
It is CLSA’s policy that goods and services are procured in a fair, open, timely and economicallyeffective manner and that all procurement activity complies with applicable human and labour rights
and environmental, health and safety legislation and corporate policies. One of the key vendor
selection criteria is the environmental protection policies of the suppliers. CLSA does not only have ahigh ESG standard with our business, but also our business partners.
CLSA is committed to expanding our existing procurement approach to adopt a more sustainableprocurement policy going forward.
4.9
Information Security
CLSA’s Information Protection Policy states the requirements for safeguarding company sensitive
information in various areas of operation including access control, storage, transmission anddisposal, as well as protection against cyber threats. This policy applies to all CLSA information assets
and resources, and all information users, owners and custodians within the CLSA Group as well as
suppliers/contractors who have valid needs for accessing CLSA information assets and resources.
Violation of this policy could result in loss or limitations on the use of information resources, as well
as disciplinary and/or legal action, including termination of employment or referral for criminal
prosecution. In 2019, there weren’t any breaches of CLSA’s Information Protection Policy. Also, no
violations of customer privacy or losses of customer data were reported.
5

https://www.clsa.com/wp-content/uploads/2018/12/CLSA-TAX-STRATEGY_DEC2018.pdf
CLSA Group Sustainability Report – 2020

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All CLSA staff have the responsibility to protect company information resources from unauthorised
disclosure and alteration and to ensure its integrity, confidentiality and availability throughout its
intended life cycle. Roles and responsibilities of CLSA staff with regards to information security are
outlined below.
Roles
IT Security

Responsibilities
 Developing and maintaining security policies, standards andprocedures for protecting company-sensitive information.
 Performing risk assessment on threats associated withsensitive data and recommending security controls.

Information User

 Not accessing data that they are not authorised to or for which
they do not have a legitimate business need-to-know.
 Protecting company-sensitive information by not disclosing tounauthorised parties.
 Immediately reporting any data breach or violation of this policy
to Information Owner and IT Security.

Manager/ Supervisor

 Ensuring that their staff understand and comply with this policy.

Information Owner

 Ensuring the confidentiality, integrity and availability of the data
they own.
 Ensuring appropriate controls are implemented consistent withthe data classification and in compliance with this policy.
 Ensuring their data is retained and disposed according to legal
and compliance requirements.
 Immediately reporting any data breach or violation of this policy
to IT Security.

Information Custodian Assisting information owners with implementing prescribedsecurity controls in compliance with this policy.
 Immediately reporting any data breach or violation of this policy
to Information Owner and IT Security.

Legal and Compliance Providing guidance on group record retention requirements.
 Perform data leakage protection monitoring.

31

SECTION 5: INVESTING RESPONSIBLY: OUR APPROACH TO INTEGRATING ESG
INTO THE INVESTMENT PROCESS
5.1
5.2
5.3
5.4

Introduction
Asset Management
CLSA’s Other Businesses
Equity Research

CLSA Group Sustainability Report – 2020

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5.1
Introduction
CLSA is an active proponent of responsible investing. Through our award-winning research, events,
investments and corporate initiatives, CLSA provides responsible investors with visibility on ESG
issues that may impact their investment mandates.
CLSA supports and integrates ESG benchmarks across our business.
5.2
Asset Management
One of CLSA’s alternative asset management (AM) businesses, CLSA Capital Partners (CapitalPartners), is committed to thorough consideration of ESG issues in its portfolio company
investments. Capital Partners is a signatory to the six principles for responsible investment of theUnited Nations Principles of Responsible Investing (UN PRI)6. These principles were developed by aninternational group of institutional investors reflecting the increasing relevance of ESG issues toinvestment practices. The process was convened by the United Nations Secretary-General. As a UN
PRI signatory, CLSA CP completes an annual Transparency Report; please feel free to assess thelatest published report via this link.5
We also seek to follow guidelines developed by the US Private Equity Growth Capital Council(PEGCC)7 and have compiled our own internal set of Responsible Investing Guidelines based on UN
PRI and PEGCC.
Capital Partners’ own Responsible Investing Guidelines were first compiled in 2012. Capital Partners
continually monitors and evaluates developments in the ESG space, including regularly reviewing theguidelines set by the UN PRI and PEGCC. As a result, we periodically update our guidelines asappropriate. In addition, Capital Partners began ESG reporting under the UN PRI framework in 2019.
The investment teams conduct thorough due diligence into all ESG aspects of a potential portfolio
company’s operations and performance. ESG management and performance is taken into
consideration when Capital Partners review potential investments to assess their viability and can bea reason for not investing in a particular company. There are two key stages whereby ESG risks
and/or opportunities are reported to, considered and documented by the funds and their respective
Investment Committees (IC).
The first stage is pre-investment. Each fund’s investment process includes detailed submissions to
the IC, which include material ESG findings arising from due diligence for review and details
regarding decision making on how to proceed.
The second stage is post-investment. Each fund engages in detailed monitoring of its portfolio
holdings and this includes following up on issues identified during the pre-investment phase andthose that may arise after the investment has been made. Quarterly reporting to the ICs includes
commentary on material issues relating to each portfolio holding, such as ESG risk management andperformance, and opportunities for value creation.
Any issues that arise during these stages could result in a range of actions, including declining an
investment opportunity or making an investment conditional upon remediation of the issue either
prior to or post investment depending on the seriousness and materiality of the issue.

6

https://www.unpri.org/pri/what-are-the-principles-for-responsible-investment

7 The PEGCC guidelines grew out of a dialogue between PEGCC members and a group of the world’s major

institutional investors, which took place under the umbrella of the UNPRI.

33
Oversight
In support of Principles 2 and 3 of the UN PRI, we seek to “be active owners and incorporate ESG
issues into our ownership policies and practices” and “seek appropriate disclosure on ESG issues by
the entities in which we invest”.
CLSA Team Level
Responsibility for ESG oversight with respect to fund investments belongs to both the specificinvestment’s deal team, as well as the Capital Partners’ risk management team.
ESG compliance is included within Capital Partners’ comprehensive fund-specific Operation Manuals.
CLSA AM takes steps to ensure that staff are aware of the ESG policy and its contents, and of therequirements that must be adhered to during their investment processes and portfolio company
monitoring.
The risk management team monitors employees on the investment team to ensure CLSA AM’s
Responsible Investing Guidelines are applied and that the investment processes that apply to eachfund impose oversight on how transactions are managed both pre and post investment. Compliancewith Capital Partners’ policies, including the Responsible Investing Guidelines, is also part of theannual review process which impacts remuneration of team members.
Portfolio Company Level
CLSA also takes steps to assess that adequate ESG-related competence exists at the portfolio
company level. As part of the due diligence process, Capital Partners seek to invest in portfolio
companies with competent management, who are informed and understand that we aim to follow
the UNPRI and PEGCC guidelines.
Our investment teams support portfolio company management to ensure portfolio companies havesufficient resources to manage any ESG factors that are identified. CLSA AM will hire external ESG
consultants if there is a clear need for additional expertise or support. Furthermore, ESG factors areraised with portfolio company Boards as and when considered necessary.
Where considered necessary, issues identified in due diligence can be integrated into deal
documentation in the form of, for example, conditions precedent, conditions subsequent or ongoingundertakings. In addition, the close involvement and monitoring of portfolio investments by CLSA
AM deal team members enables full engagement on all issues relevant to the investment. We havegeneral representation and warranties embedded in our investment agreements to ensure investee
companies are in compliance with applicable laws.
Examples of how CLSA Capital Partners has contributed to portfolio companies’ management of ESG
factors are highlighted below.
CLSA’s Real Estate Focused Funds:
CLSA’s Real Estate focused funds constantly seek to improve the energy performance of thebuildings that we acquire through asset enhancement works that are undertaken as part of ourinvestment strategy. For example, an asset contained in a fund in Singapore was awarded theGreenmark Gold certification and secured a governance grant.
The funds have partnered with reputable companies that have established environmental
sustainability and corporate social responsibility initiatives for our other developments in Australia88 Grocon: http://www.grocon.com/awards/

CLSA Group Sustainability Report – 2020

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and have gained invaluable knowledge and experience with service providers such as JLL 9, CBRE10
and SGA11, among others.
CLSA’S Realty Core Plus Fund:The fund leverages sustainability, which includes methods and practices that maximize energy
efficiency and minimizes environmental impact, as a tool to drive value for investors. The fund carries
out this through integration of environmental, social, and corporate governance (ESG) considerations
into investment management processes and ownership practices in the belief that these factors canhave an impact on financial performance.
In Australia the assets in the portfolio are rated according to NABERS targets, a sustainability rating
system measuring environmental performance relating to commercial buildings. In 2020 the fund’s
first green loan was completed, the terms of the loan require the fund to meet certain NABERS targets
in respect of asset management.
CLSA’s realty core plus fund participated in the 2020 GRESB Assessment, which benchmarked the fundagainst its peers in relation to a range of metrics including governance and environmental
performance.
CLSA’s Pan-Asian Private Equity Funds:
The funds’ investment in a leading cancer solution provider in Asia is an example of CLSA CapitalPartners’ key focus upon ESG factors during the post-investment period. Leveraging the cutting edge
next generation sequencing (“NGS”) platform, bioinformatics analytics capability and Asian Genome
database, the Company specializes in offering personalized treatment advice to cancer patients.
Since receiving investment from CLSA, the Company has collaborated closely with multiple
government and charity organizations to subsidise cancer genomic testing for cancer patients who
have affordability concerns to enable access to optimal treatment methods.
CLSA’s Shipping Sector Focused Fund:
CLSA’s Shipping Sector focused fund takes into account ESG issues in its daily operation process. All
portfolio company vessels are compliant with international regulations on environmental and waste
management (e.g. International Oil Pollution Prevention Certificate, International Energy Efficiency
Certificate) with various operation manuals and/or procedures on-board to meet international
requirements to protect the environment.
The fund implements regular conference calls and quarterly management meetings whereoperational issues, including the portfolio company’s ESG policies, are discussed as required. As andwhen necessary, the fund may be involved in the drafting or approval of policies that impact upon
ESG factors and compliance. As an example, in 2020, the fund was actively engaged with theportfolio company’s management team, as a result, Very Low Sulphur Fuel Oil is now used in all
vessels, instead of installing scrubbers to filter out High Sulphur Fuel Oil.
CLSA’s Clean Resources Focused Fund:We recognise the positive impact that careful ESG consideration can have when acting in the bestinterests of investors and more broadly on society and the environment. In particular, the fund has
consistently demonstrated our commitment to responsible investing and creating sustainable value.
9 http://www. jll.com.au/australia/en-au/services/corporates- occupiers/energy-and-sustainability
10 http://www.cbre.com.hk/EN/services/sustainability/Pages/home.aspx
11 http://sgaproperty.com/environmental-services/

35
The fund adheres to stringent ESG requirements mandated by the Asian Development Bank and theInternational Finance Corporation.
In 2009, CLSA Capital Partners launched the fund to partners with innovative companies in the clean
technology sector via the provision of capital for growth and expansion. The fund’s focus is on
sustainable agriculture, water, recycling, energy efficiency and cleaner energy as outlined below:









Sustainable agriculture is highly correlated to water as over 80% of water in Asia is used in
the agriculture sector. Areas of interest include environmentally-responsible fertilisers,
weed/pest control and water conservation technologies.
Water is divided into supply, treatment and wastewater. Investable areas include
desalination, irrigation solutions and wastewater treatment.
Recycling is a high-growth area that the fund expects to become a major investment area forus as it matures, with increasing emphasis on the sustainable management of waste
streams, such as electronic waste, plastic and rubber.
Energy efficiency includes solutions that reduce energy consumption for buildings andapplications that require significant amounts of energy for temperature control (e.g. data
centres).
Cleaner energy encompasses natural gas, solar and wind energy, biofuel substitutes, hydro,
geothermal and clean coal technology.

The Clean Resources focused fund also integrates climate change risk into its investment process.
The fund duly monitors and addresses the risk of investing in fossil fuel dependent businesses, orindustries that are exposed to climate change policies or regulatory development. As per theexamples outlined below, the fund’s investment strategy takes into account the physical andfinancial impact of climate-related events.






Investment in a plantation company, of which the investment proceeds are to be utilised for
mitigating climate change and improving crop yield, e.g. installation of drip irrigation in theplantation that will help to alleviate drought impact
Investment in seawater desalination utilising a proprietary energy recovery device to reduce
consumption of power
The fund has evaluated investments in water plants within low-water catchment areas
affected by climate change
Acquisition of real estate assets that meet local environmental certification standards
Review of investment opportunities relating to power plants in China required to be fittedwith desulphurization and denitrification systems to reduce greenhouse gas emissions

5.3
CLSA’s Other Businesses
Outside of Asset Management, ESG issues are considered as part of the investment strategy forother CLSA business lines as follows:
Fixed Income Currencies and Commodities (FICC):
For the FICC business if any ESG related issues arise during the due diligence process, these issues
are escalated to the appropriate business sub-committees of the CCC (Capital Commitment
Committee) forum for consideration and approval. The CCC is comprised of Treasurer, CFO, CRO,
Group Head of FICC, Chief Legal and Compliance Officer and other relevant senior management.
Corporate Finance and Capital Markets (CFCM):
The CFCM business requires deal counsels on all transactions to address whether the client is incompliance with relevant issues, such as labour requirements, as part of the overall legal opinion.
CLSA Group Sustainability Report – 2020

36
For example, when working on an IPO transaction with major operations in South Africa, we would
ask the deal counsels to review and comment on whether there had been strikes or labour disputes
in the past and to assess whether there would be similar risks to the company’s future operations. In
addition, we could conduct independent due diligence meetings with relevant parties.
5.4
Equity Research
CLSA was one of the first financial firms in Asia to write about pollution, carbon trading and ‘thegreening of Asia’. Our sustainable research team regularly covers a range of issues from supply chain
labour to clean water, clean technology and corporate governance. CLSA has actively reduced its
hardcopy report output over the past decade.
The core of our ESG research is the CLSA Corporate Governance Score. Since 2001, CLSA has scoredlisted Asian companies on corporate governance issues. Factors influencing the score are reviewed
annually in partnership with the Asian Corporate Governance Association (ACGA). In May 2021, CLSA
published the tenth joint CG Watch report in partnership with the ACGA. This biennial report has
become a benchmark in assessing the state of corporate governance across Asia and the adherence
to good practices by Asian listed companies.
There are also sections of CLSA research dedicated to ESG development.
Sustain Asia
We owe future generations a secure place in which to live and prosper, from the environment thatsurrounds them to the society that cares for them and the rules and actions that protect theirinvestments. In January 2021 we launched Sustain Asia. The logo represents an eternity loop and thenumeral 8, which is associated with wealth in Chinese culture. This draws a parallel between the
dual and complementary goals of our ESG research - to help investors generate financial returns but
also return something to society and the environment. The loop envelops Asia, representing ourroots and core market expertise.
Clean & Green
CLSA Clean & Green™ research features our efforts towards a healthier environment. For many
years now, we have been promoting awareness of climate change among the public and withinvestors and regulators; as well as initiating creative and concrete measures to reduce our own
carbon footprint. From focusing on environmental issues at our annual Forums with keynote
speakers, to publishing cutting-edge research on alternative energies and water strategies, toinstalling energy efficient systems in our offices, CLSA hopes such initiatives help bring theenvironment to the forefront.
Disruption
Disruptive technology, ever-cheaper renewables, heightened environmental awareness andsoftening demand in established industries are driving change across sectors at warp speed.
Disruption serves both as a chronicle of the past and a model for the future. Within two years theautomobile virtually wiped out the horse drawn cart. In the utilities space, battery storage stands toupset incumbents. New start-ups and businesses are refusing to play by the established rules ofengagement, offering cheaper, more immediate alternatives. Our Disruption webpage features awide range of material to help clients navigate the market's future trajectory.
A selection of reports published by CLSA in 2019-20 that addressed ESG issues include: Asian energy (Battery rush 4: New storage technologies clean up for a brighter future) China Hydropower (Damned good: Rise of China’s cheapest form of clean energy)
 China Jolt! (Asia Pacific power and renewables) Corporate Governance Watch which rates a wide variety of listed companies in the region on a
range of ESG markers

37




Disrupters in the ecosystem (Past and future of shareholder activism in Japan)
Global Solar energy (Sunkissed: Direct beneficiaries are the hottest picks)
Thirsty and underwater (Rising risks in the Greater Bay Area)

CLSA Group Sustainability Report – 2020

38

SECTION 6: OUR PEOPLE
6.1
6.2
6.3
6.4
6.5
6.6

Overview
Recruitment, Retention and Promotion
Health, Safety and Wellbeing
Evaluation and Compensation
Employee Engagement
Learning and Development

39

6.1
Overview
CLSA’s most valuable asset is its employees. The sustainability of our workforce is critical to ensuringongoing value creation for our clients and other key stakeholders.
Our workforce is diverse. CLSA employs 1,826 people across a global network of 18 offices,
representing 34 different nationalities. A detailed profile of our workforce is presented in the tables
below.

Australia
Mainland China
Hong Kong
India
Indonesia
Japan
Malaysia
Netherlands
Philippines
Singapore
South Korea
Thailand
UnitedKingdom
USA
Total

Permanent Employees

Contract Employees

Percentage
3%
0.4%
44%
19%
2%
5%
1%
0.3%
2%
8%
3%
2%

Percentage
0.1%
0.1%
3.5%
0.1%
0.3%
0.3%
0.1%
0.7%
0.1%

3%

0.1%

3%

-

94.8%

5.2%

Table 5: CLSA Employees by Geographic Location and Contract Type

FemaleMale
Total

FemaleMale
Total

Permanent Employees

Contract Employees

Percentage
33%
61%Percentage
3%
2%

94.8%

5.2%

Full-time Employees

Part-time Employees

Percentage
35%64%Percentage
0.7%
0.1%

99.2%

0.8%

Tables 6 and 7: CLSA Employees by Gender and Contract Type
6.2
Recruitment, Retention and Promotion
At all times and without exception, our primary objective is to hire the best candidate for the job.
CLSA’s Human Resources Department works closely with business and hiring managers to ensure
recruitment processes are managed effectively and equitably.

CLSA Group Sustainability Report – 2020

40
CLSA commits to uncovering excellent future leaders and providing a platform for young talent togrow. CLSA’s Internship Programme has formed the first step in our talent identification to build ajunior talent pipeline. The programme allows final and penultimate year university students who arekeen to develop a career in the financial services industry the opportunity to gain valuable exposurein various business areas of CLSA.
CLSA aims to build a diverse and inclusive workplace. We believe in equal opportunity and do notdiscriminate on gender, race, ethnicity, physical ability, age or other factors. In this regard, we
comply with all equal opportunity and anti-discrimination legal responsibilities. We are committed
to engaging in employment practices that meet the highest legal and ethical standards. As such, our
responsibility in overseeing the minimum age and working conditions of our employees is ofparamount importance. All of our employees are above legal age limits and all work is performed
voluntarily. Employees and managers are reminded that they are bound by the standards andpolicies outlined in the CLSA Code of Conduct and Employee Handbook.
CLSA always seeks to promote staff internally before filling roles externally. The Job Opportunities @CLSA page is accessible to staff via the CLSA intranet and lists internal job openings. It aims tocapture interested, internal talents as part of CLSA’s candidate sourcing strategy and promoteinternal mobility. CLSA promotes high-potential staff to provide career advancement opportunities,
recognize and award individual outstanding performance, and drive a culture of high performanceacross the organization.
Keeping and retaining our talents is essential to the ongoing success of our business, and for us to be
successful in doing this, it is imperative that we have managers who are skilled in the art ofmanagement and consequently able to empower, manage and motivate their teams.
6.3
Health, Safety and Wellbeing
Health, safety and the wellbeing of our people are of paramount importance. We are committed tocreating a safe and healthy environment and employees, customers, contractors and visitors have aright to be protected in our workplace. To this end, we comply with occupational health and safety
regulatory requirements and follow best-practice workplace health and safety policies andprocedures.
CLSA cares about the health, safety and wellbeing of all employees. All permanent staff areautomatically enrolled in healthcare and pension plans that align with the market offering indifferent CLSA office locations. We ensure that the terms and benefits provided, including parental
leave, comply with the statutory requirements in different office locations. On the other hand, CLSA
provides an environmentally sound and employee-friendly workplace by implementing beneficial
environmental work practices and taking appropriate measures to minimise environmental, healthand safety risks, and is able to effectively respond to accidents and emergency situations.
As part of CLSA’s commitment to occupational health and safety, CLSA has a medical and security
services agreement with International SOS, the world’s leading medical and travel security risk
services company. This agreement reinforces the health and safety of our mobile workers by giving
them access to country-specific risk ratings, expert medical and travel security advice or referral, and24/7 assistance prior to travel, during travel, and in the event of an incident.
CLSA encourages staff to lead healthy lives by providing informative health, lifestyle and anti-stressseminars, discounted gym memberships and informal group exercise programmes.
All CLSA offices are non-smoking environments. Regular fan coil unit/carpet cleaning and pest
control are conducted in all offices to maintain good indoor air quality for a healthy work
environment.

41
6.4
Evaluation and Compensation
CLSA salaries are on par with industry standards. We have a comprehensive Performance
Management System that is utilised company-wide to evaluate and assess both technical andbehavioural capabilities of all staff, at minimum on an annual basis. Staff are evaluated and gradedwith a rating that allows managers to identify those who are performing above and beyond
expectations and those who are performing below. Staff are measured against their key
performance indicators, which feed up into supporting the overall goals of our organisation.
CLSA adopts a total compensation approach. We review the compensation of employees on anannual basis with reference to the individual performance and benchmarking to the external market
to ensure competitiveness of our compensation and foster a pay-for-performance culture.
6.5
Employee Engagement
CLSA strives to ensure open lines of communication across its network. We make a particular effort
to communicate where possible through:•••

CONNECT: an internal, online portal offering a staff directory, up-to-date news, a Human
Resources portal, training programmes, job vacancies, community outreach information,access to CLSA research and much more
Chairman Town Hall meetings
Business updates circulated via email and posted on CONNECT

CLSA staff in some offices have also formed informal networks such as the Volunteer Leadership Teamin Singapore for supporting the local community.
6.6
Learning and Development
Learning and Development (L&D) is an important function of the wider Human Resources team and afocus of CLSA as we work towards developing an active learning culture. We firmly believe that our
success lies in our people and for our business to thrive, our people need to be ready to deliver theirbest. CLSA provides a range of internal and external training and development opportunities for
employees at all levels across the organisation, regardless of their gender, age, contract type or
employee category.
At CLSA, our L&D catalogue focuses on three key areas of management, personal and technicaleffectiveness. Our various learning opportunities are designed to empower our people to drive theirown development, strengthen their competencies and prepare them to take on key roles within theorganisation.
The key strategic priorities for L&D at CLSA are to:•ensure that we are effectively managing our talents across the business;•prepare our workforce for future challenges;•
enhance workforce effectiveness; and•motivate and retain key talents.
Highlights of our L&D initiatives are provided below.
HBDI Psychometric Assessment
The Herrmann Brain Dominance Instrument (HBDI) Profile is scored from a 120-question survey thatmeasures individual thinking preferences in four unique and distinct modes of thinking. Inspired
initially by Nobel Prize winning research, the HBDI has been completed by over 2.5 million individuals
and is utilised in many of the world’s leading corporations. The HBDI tool has been used by CLSA forover 20 years and over that time it has helped managers and employees alike to develop an enhanced
self-awareness when it comes to communication, problem solving, team management and decision
making.
CLSA Group Sustainability Report – 2020

42
e-Learning
CLSA has developed a robust online training portal for all CLSA staff to augment their skills andknowledge across a variety of topics. Called Intuition@CLSA, this is provided through Intuition, afinancial markets online training provider. This excellent development tool can be accessed via the
Human Resources homepage on the staff intranet. The content provided is detailed and varied whichaligns with our three pillars of effective learning: technical expertise, management effectiveness andpersonal development.
Mandatory Online Training
In addition to the above and to ensure we comply with all local regulations, we host the following
mandatory training online through our e-learning portal. These mandatory training programmes are
all developed in-house by the business and cover the followings:
•
•
•
•
•
•
•
•

CLSA Code of Conduct
Global Financial Crime
Operational Risk
Anti-Bribery and Corruption
Conflicts of Interest
IT Security
Sexual Harassment – Recognise, Respond, Respect
CLSA SFC Best Execution

Diversity and Inclusion Training
Delivered face-to-face to all employees of CLSA, our in-house developed Diversity & Inclusion Training
is part of our mandatory suite of courses for all new joiners. As inclusion is one of the five guiding
principles in our Code of Conduct, this session aims to highlight the business benefits of diversity andinclusion and the importance of managing diversity effectively and applying best practices in thisregard.
Development Programmes
CLSA designs and delivers tailor-made, capability-building programmes with the purpose ofdeveloping internal leadership pipelines within departments. Through tailored sessions that coverboth technical and soft-skills training, we are able to increase the retention of talent, provide career
enrichment and development for high-potential talent and facilitate networking and exposure within
the wider CLSA business.

43

SECTION 7: OUR ENVIRONMENTAL PERFORMANCE
7.1
7.2

Environmental Management Approach
Environmental Metrics

CLSA Group Sustainability Report – 2020

44
7.1
Environmental Management Approach
CLSA is committed to reducing our consumption of natural resources and impact on theenvironment. Since 2007, we have implemented our ISO 14001-certified environmental
management system (EMS) across 80% of our offices. This requires CLSA Hong Kong to be audited
annually, with regional offices taking turns to be audited every three years. Our global certification
has been successfully renewed in 2020 and no major nonconformities have been found in the audits.
Our approach to managing our key environmental issues, which is guided by a precautionary
approach to avoid or minimise environmental impact, is outlined below.
Sustainable Design, Energy Efficiency and Health & Safety Measures: Our global offices are working
to implement and track the adoption of sustainable design features, including both theincorporation of energy-efficient lighting and equipment, and the procurement of renovationmaterials and fittings with sustainable attributes in building and office design. In addition tocomplying with all local health, safety and wellness requirements, offices are implementing
measures such as ergonomic desk and seating features to ensure employee wellness.
Indoor Air Quality (IAQ): All CLSA offices are strictly non-smoking environments and maintainsuitable room temperatures. In Hong Kong, the air conditioning units and carpets are cleaned
regularly, and air purifying is arranged after renovation as required.
Water: While CLSA’s offices are located in buildings with water-efficient equipment and fixtures,water consumption data is not available as this is provided as part of the services included in officerental. In Hong Kong, non-stop running/flushing water has improved with the washroom upgrade.
Waste: Our commitment to reduce, reuse and recycle is well established and we have been
segregating glass, paper, metal cans and plastic since 2007. These are collected from our offices byauthorised suppliers who separate the materials for recycling. In Hong Kong, our building manager,
Swire Properties, is also ISO 14001-certified. Swire Properties support our recycling efforts andarranges environmental activities for tenants periodically, such as mooncake box recycling after the
Mid-Autumn Festival. We have begun to collect solid and hazardous waste data across ouroperations and aim to be able to report on this systematically for offices that are able to receive thisdata from their property managers. We have successfully rolled out the collection of coffee grounds
for further processing into soil conditioner / fertiliser in 2019 with Swire Properties and currently weare reviewing the feasibility of participating in their food waste recycling programme.
In Hong Kong, we also participate in the annual Electronic Waste Recycling Campaign, organised by
Swire Properties, which enables our office and individuals to donate electronics to NGOs for reuse or
to have their component parts reused or recycled in an environmentally responsible way. To further
encourage staff environmental awareness and commitment, CLSA has been actively participating invarious “green” events. Also, in order to show support for global action to tackle climate change,
CLSA also participated in the Earth Hour Campaign, Country Park “Nature in Touch” Hiking &Planting Day, Wood Recycling, Lai See Packets Reuse and Recycling Programme and Used Clothes /Accessories Recycling Campaign.
Plastic reduction: More than half of our offices globally have installed water filters to eliminate theuse of plastic water bottle dispensers. This is both healthier and reduces the potential wastage oflarge plastic water bottles and the associated delivery costs. We also provide chopsticks and cutlery
in most offices to avoid the use of disposable wooden and plastic cutlery.
Supplier auditing: We are working towards asking all CLSA suppliers to complete an annual
questionnaire to assess their environmental activities. We ascertain if they have an established
Environmental Management System (EMS), if they are ISO certified, if they recycle their waste

45
products and if they document evidence of their environmental controls. As noted earlier, CLSA iscommitted to strengthening our sustainable procurement policy going forward.
7.2
Environmental Metrics
Our global offices continue to actively implement measures to conserve electricity, water, paper andother resources. A substantial decrease in global consumption in 2020 had been noted and this was
mainly due to the implementation of a WFH (Work From Home) business model to cope with COVID19 pandemic and lockdown in various countries. Consumption data for paper and electricity are
below.
Paper(A4-equivalent paper)

607 reams (2020) per month (~7,289 annually), equivalent to 4
reams per person per year

Electricity (kWh)602,969 units (2020) per month (6,035,619 units annually)

Table 8: Consumption Performance
per for Paper and Electricity in 2020202012
CLSA Location
Amsterdam
BangkokBeijingHong Kong
JakartaTokyo
Kuala Lumpur
LondonManila
Mauritius*

Paper consumption(reams13)
5
150
30
3,944
62
475
99
130
124
NIL

Electricity consumption(kWh)15,000219,081
90,0001,518,090
50,413
386,447
297,815
252,242
121,319
NIL

Melbourne#

NIL

NIL

MumbaiPune
Seoul
Shanghai
Shenzhen*
Singapore
SydneyTaipei
New York

100
40
400
30
NIL
500
720
350
130

569,160
662,372
294,60789,013NIL
684,182
227,366
306,422
252,000

7,289

6,035,629

Total:*office closure# staff were mainly WFHTable 9: Consumption Metrics for Paper and Electricity in 2020 for Key Offices
Energy: We continue to expand the use of LED lighting and motion sensors across our global offices
to minimise energy consumption.

12

Paper and electricity consumption for the Amsterdam, Shanghai and New York offices are estimated.

13 A4 equivalent reams with 500 sheets/ream.

CLSA Group Sustainability Report – 2020

46
Fuel: In 2020, company vehicles operated by our offices globally consumed 12,427 litres of petrol.
Greenhouse Gas Emissions: We are committed to reducing our greenhouse gas emissions throughenergy and fuel efficiency initiatives. One way we seek to reduce emissions from air travel is by using
video conferencing for meetings. In 2020, we measured greenhouse gas emissions generated acrossour global operations arising from fuel and electricity consumption.

2020
GHG Scope

GHG emission in tonnes of CO2 equivalent14

Scope 1 – fuel consumption
Scope 2 – electricity

Total:

29.33
2,233.18

2,262.51

Table 10: Scope 1 and Scope 2 Greenhouse Gas Emissions in 202014

Calculations prepared in accordance with the “Guidelines to Account for and Report on Greenhouse Gas
Emissions and Removals for Buildings (Commercial, Residential or Industrial Purposes) in Hong Kong” 2020
Edition.

47

SECTION 8: OUR COMMUNITY
8.1
8.2

Investment and Engagement
Community Outreach and Volunteering

CLSA Group Sustainability Report – 2020

48
8.1
Investment and Engagement
Each and every day CLSA commits people, capital and ideas to serve our clients, stakeholders andcommunities across the globe.
CLSA Chairman’s Trust
The CLSA Chairman’s Trust provides financial and human capital to support disadvantaged
individuals, groups and communities across Asia, Australia, Europe and the Americas.
With a core mandate of poverty alleviation, the Trust disburses grants to support measurable andsustainable projects within small to medium-sized non-governmental organisations (NGOs) in arange of sectors that include education, health and welfare, commercial and environmental
enterprises.
Since 2007, the Chairman’s Trust has touched the lives of over half a million individuals. We haveprovided our ideas, people and funding of US$30 million, to support the incredible work of morethan 130 grassroots NGOs across Asia, Australia, Africa, the United Kingdom and the United States.
In 2019-2020, our total Chairman’s Trust grant commitment is US$0.5 million.
The Trust is self-funded through the CLSA Chairman’s Trust Dealing Day. CLSA broking clients areencouraged to trade with CLSA on the Dealing Day as all net commissions from this day’s trading arecontributed to the Trust. CLSA supports the operating costs of the Trust to ensure that 100% of all
funds raised go to funding recipients.
Grants are disbursed to a range of innovative non-profit organisations affecting social change. We
partner with organisations that demonstrate a clear social impact and are able to provide us withmetrics to monitor the efficacy of our partnerships. A stringent monitoring and evaluation processensures the success of this programme. The impact of Chairman’s Trust projects from 2007 to datecan be seen below.
Funded Chairman’s Trust Projects Overview
30
7,000
1,372
Schools built
School scholarships
University scholarships
From Thailand to India, we have We help educate children at risk Providing higher learning
rebuilt schools following natural of being trafficked in Cambodia, opportunities to orphans in
disasters, added additional
underprivileged girls in southern Japan, medical students inclassrooms to teach more
Vietnam, and indigenous students Thailand and many others inchildren and laid the foundations in Australia.
Indonesia, Vietnam, China
for new campuses.
and beyond.
4,000
55Free medical procedures
Doctors trained
Funding of lifesaving surgery for We believe in capacity building
orphaned babies in China,
and long-term sustainability. We
rehabilitative procedures for the provide grants to train doctors
rural poor in Cambodia, andand surgeons in Cambodia andmedical outreach in Laos.
Laos so they can use their new
skills to improve conditions
locally.
Table 11: Chairman’s Trust Impact 2007 – 2020

38,871Students given internet
connectivity
In the Philippines, we havepartnered with the Ayala
Foundation since 2008,
providing information andcommunication technology
systems to schools
throughout the country.

49

A unique aspect of the Chairman’s Trust is the Staff Sponsorship Programme. All funded projects
require a CLSA employee to champion the partnership. The staff sponsor is responsible for prefunding due diligence, funding applications, regular reporting and annual project visits. Staff
sponsorship is critical to the success of the Trust, ensuring accountability, active social engagement
and awareness. Chairman’s Trust staff sponsors visit all of their projects on an annual basis toconduct due diligence. Often, they also provide skills-based guidance and training to these partnerorganisations.
Charities and beneficiaries funded by the CLSA Chairman’s Trust in 2019-2020 are as follows:
Chairman's
Trust Charity
Bright Dawn
Foundation

Children’s
MedicalFoundation

Hagar
International(Hong Kong)

Location

Charity Description & Chairman’s Trust Project

Beneficiaries

Thailand

Bright Dawn Foundation provides healthcare andeducational support to approximately 600 children
at five primary schools in the hinterland of Hua Hin,
Thailand.

Primary school students in
Hua Hin

China

Cambodia

The Chairman’s Trust funds the salaries of two
experienced English language teachers.
Children’s Medical Foundation establishes lifesaving
neonatal care units, trains medical professionals,
donates crucial equipment, provides financial
assistance to families in need and ensures babies inremote areas of China have healthy, happier lives
Project.
The Chairman’s Trust supports neonatal
resuscitation training and the Save-A-Baby Programin Liupanshui, Guizhou Province.
Hagar is dedicated to the recovery of survivors of
extreme human rights abuse – particularly humantrafficking, gender based violence and sexual
exploitation.

Newborns in China's remoteareas

120 children in Cambodia

The Chairman’s Trust continues to support theCommunity Learning Centre, an accelerated
learning program for 120 children who have missed
multiple years of education due to poverty orabuse, enabling them access to education andeventually reintegrate into the public school
system.
Summerbridge
HongKong
LimitedHong Kong

Summerbridge improves the educational
trajectories of underprivileged students byproviding them with tuition-free quality English
education and life skills development over two
intensive summer sessions, weekend and alumni
programs.
The Chairman's Trust cover costs related totransportation, teaching materials, resources andactivities for the summer program.

CLSA Group Sustainability Report – 2020

High school students inHong Kong

50
Chairman's
Trust Charity
TitianFoundation

Location

Charity Description & Chairman’s Trust Project

Beneficiaries

Indonesia

Titian aims to improve the education, knowledge
and skills of underprivileged Indonesians andthereby empower, build confidence and ensure thegrowth of the people and their heritage.

High school students inIndonesia

Also refer tothe testimonialin section 3
above.

PathFinders

The Chairman's Trust continues to support the highschool scholarship programme in a new location –South Tangerang, Greater Jakarta. The Trust also
funds the administrative office and community
learning centre in this location.
Hong Kong

PathFinders (PF) aims to ensure that every migrantchild born in Hong Kong has a fair start in life byempowering their mothers to make informed life
decisions and find a dignified path towards a safeand legal future.

Indonesian and Filipino
migrant domestic workers inHong Kong

The Chairman’s Trust continues to support the PF
shelter in Kennedy Town (catchment area for
Queen Mary Hospital), and the Mothers Protection
Programme, providing overall support to mothers
and children who are in immediate danger.

Table 12: 2019-2020 Chairman’s Trust Charities and Beneficiaries
8.2
Community Outreach and Volunteering
Intrinsic in the culture of CLSA is the philosophy of helping those in need. Community outreachprogrammes are coordinated locally across our network of offices engaging staff in meaningful
causes close to home.
CLSA employees across our network volunteered over 1,540 hours in 2019 and 2020 within theirlocal communities. While most volunteer activities occur on the weekend, employees areencouraged to take volunteer leave to get out of the office and into the community. An entitlementof two days’ paid leave per year can be used to visit and conduct due diligence on Chairman’s Trust
projects, assist at charity events or participate in community outreach.

51
Projects supported by our Hong Kong office in 2019 and 2020 are as follows:

Activity

Location in
Hong Kong

Cardboardgrannies visit

Wanchai,Hong Kong

CNY luncheon

Causeway
Bay, Hong
Kong

Charity Walk,
Take a Step,
Save a Life!

Tai Tam
Country Park,
Hong Kong

Country Park
"Nature in
Touch" Hiking
and PlantingDay

Lantau SouthCountry Park,
Hong Kong

Description
It’s not uncommon in Hong Kong to see seniorcitizens, mostly elderly women, navigatingpushcarts through the streets in search of
discarded cardboard boxes to sell to local
recyclers in return for small sums of money.
CLSA visited the cardboard grannies and street
cleaners in Wanchai by chatting and providing
some hand sanitizers, daily necessities, mealvouchers and supermarket coupons to show ourcare to them.
Sponsored by Wanchai District Council, CLSA
partnered with HK Christian Mutual
Improvement Society Chuang Chung Wen Centre
to host a Chinese New Year Luncheon for theelderly to welcome the Chinese New Year. The
luncheon gathered nearly 200 elderly people,
some nearly 90 years old. The team playedinteractive team-building games like ‘word
search puzzle’ and gave away CNY fortune bag tothe elderly. CLSA shared the festive joy with theelderly to spread love and care through thegathering.
Suicide Prevention Services (SPS) serves people
who are suicidal, despairing or distressed bymeans of befriending and other services
supporting them to regain control of theiremotions and the will to live on. It raises generalawareness towards suicide and identifying ways
in which suicide can be effectively addressed.
CLSA participated in the Suicide Prevention
Services (SPS) Charity Walk to raise funds toexpand SPS’s suicide preventions services as
suicide which continues to be one of the leading
causes of death in Hong Kong. CLSA is dedicatedto support this event and SPS in creating a caring
society and instilling more energy and strength
to deliver a positive message of cherishing life.
CLSA actively helps to promote ‘Country Parks
Plantation Enrichment Programme’ hosted by
the Agriculture, Fisheries and Conservation
Department to boost biodiversity and ecologicalvalue of Hong Kong’s countryside, as well as, tomitigate climate change. CLSA participated in
Country Park "Nature in Touch" Hiking and
Planting Day’. The volunteers carried seedlingsand planting tools from Seedling Distribution
Point uphill as well as digging pits to plant trees
at a designated site. A total of 1,000 trees wereplanted with concerted effort made by CLSA
staff and other volunteer teams.

CLSA Group Sustainability Report – 2020

Number ofvolunteers

Date

13

5 Jan 201912

14 Feb 201940

2 Mar 201949

31 Mar 2019

52
Number ofvolunteers

Date

CLSA participated in Olympic Day Run which
spread understanding about the joy of sports
and the basic spirit of the Olympics by giving the
public and to run with Olympic athletes.

12

23 Jun 2019

CLSA organised a natural insect repellent
workshop where staff learnt how to integrate
environmental protection into daily life. Staff
made insect repellent that was effective,
pleasantly aromatic and non-toxic for the needy
in community.

32

9 Aug 201930

31 Aug 2019 &4 Sep 201925

14 Sep 201920

13 Oct 2019

Activity

Location in
Hong Kong

Description"Move, Learn
and Discover!"2019 Olympic
Day RunSportsFederation &Olympic
Committee ofHong Kong,
China (SF&OC)

EasternCommunity
Green Station

Insect Repellent
WorkshopSunshine
Fortune Bags
for Mid-Autumn
Festival

Hot Meal
service with
Peiho
Counterparts

CoastalCleaning

Sunshine
Action, Hong
Kong

Shamshuipo,
Hong Kong

Ting Kok (TaiPo
Environmental
Association)

Sunshine Action Limited operates as a non-profit
organization which provides foods to the lessprivileged and homeless people. Sunshine Action
also serves communities globally. CLSA staff
packed 2,500 food bags with the othervolunteers at the food bag packing day anddistributed to the poor & elderly through 40
local centres benefiting over 2,500 people during
Mid-Autumn Festival.
Pei Ho Counterparts is a social enterprisefounded by Ming Gor in Sham Shui Po. He comesup with different ways to help those in need in
Sham Shui Po, first by offering meal vouchers forhis restaurant and handing out free lunchboxes.
CLSA staff work with Pei Ho Counterparts byrolling up their sleeves and delivering 120 hot
meals to the elderly who live alone andhomeless street-sleepers in Shamshuipo.

CLSA worked closely with members of the public
to keep the shoreline clean and make Hong Konga cleaner place to live. 20 CLSA volunteers went
to Ting Kok beach to help clean up. Volunteers
were tasked with gathering all the debris,
including; foam beads, plastic bottles, disposable
plastic utensils, broken glass, branches, furnitureand returning cleaner sand back to the beach. A
total of 130kg of litter were collected.

53

Activity

Help inCommunity
Kitchen at
People’s FoodBank

OneSky Charity
Hike

Helping Hand
"HealthBank"
CookieCampaign

Dragon Boat
Festival - Rice
Dumpling &Festive Home
Visit

Mooncakeworkshop

Location in
Hong Kong

Kwun Tong,
Hong Kong

Description

CLSA partners with St. James' Settlement in thecommunity kitchen which is located in Eastern
Kowloon. St James’ Settlement rescues theedible surplus food from different sectors of thefood industry and prepares nutritious hot meals
for beneficiaries such as low income earners,
unemployed persons, families who encountersudden change and street sleepers. A total of
180 hot meals were packed and delivered to theelderly living alone in Kwun Tong.
OneSky provides care and early education to
help at-risk children and since 2011. It has raised
more than HK$7 million for children in their
Beihai, Sanya, Hefei and Wuhan programmes,
and trained hundreds of caregivers how toprovide essential, nurturing care for children all
across China. CLSA HK staff participatedin OneSky Charity Hike at the beautiful
MacLehose Trail in Hong Kong which helped toraise funds to support orphaned, abandoned,
and left-behind children in China, Vietnam andHong Kong.

Hong Kong

CLSA Office,Hong Kong

CLSA supported the “Helping Hand HealthBank
Cookie Campaign 2020 by buying the Chinese
walnut cookies. Donations are used to support
individuals with Down syndrome, students withintellectual disabilities, deprived families,
underprivileged children, victims of domestic
violence, solitary elderly, the handicapped,chronic disease sufferers and street sleepers.
CLSA was upholding its tradition of giving rice
dumplings to those in need to share the love andwarmth of a caring community during Dragon
Boat Festival. CLSA Hong Kong staff, family andfriends hand made the rice dumplings andpacked gift bags filled with fruit and small
presents. Through this activity, CLSA helped topromote the culinary heritage of wrapping rice
dumplings and spread happiness and goodwill toseniors and low income families in ourcommunity.

Hong Kong
Playground
Association
Jockey Club

Twin Bakery

This Mid-Autumn Festival, CLSA created our own
mooncakes for those in need. A custard
mooncake workshop was organised where welearned how to knead and mould themooncakes. The mooncakes were then packed
together with fortune food bags as gifts anddelivered to the Helping Hand Siu Sai Wan
Jockey Club Housing for the Elderly.

CLSA Group Sustainability Report – 2020

Number ofvolunteers

Date

8

19 Oct 201915

10 Nov 20191218 Mar 2020

40

15

20 June 2020

26 Sep 2020

54

Activity

Location in
Hong Kong
Siu Sai Wan,
Hong Kong

Virtual visit –games andchatting withthe seniorcitizens

Description

Number ofvolunteers

Date

CLSA Hong Kong hosted an online caring visit tosenior citizen to continue its ‘Sharing the Festive
Joy’ program despite the social distancing
restrictions introduced because of the Covid-19
pandemic. The online event – the first of ourkind – was held in partnership with Helping Hand
for more than 30 senior citizen from Siu Sai Wan
Jockey Club Housing to celebrate the MidAutumn Festival.

1028 Sep 2020

Number ofvolunteers

Date

11

Feb 2019

25

24 May 2019

CLSA staff used video conferencing technology,
Zoom to connect with senior citizen guests, whohave been left with fewer social activities
because of the pandemic. The volunteers
chatted and played games with senior citizens
guests. They also enjoyed a singing performanceby the volunteers and were given fortune bags
and festive snacks provided by CLSA.

Table 13: 2019 - 2020 Hong Kong Community Outreach Activities

Projects supported by other global offices in 2019 - 2020 include:

Activity

Location

Lou Hei 2019

Singapore

Description

South Central Community Family Service Centre(SCCFSC) provides support to the low-income
and vulnerable families in the community whoseek financial, social or relationship help.
Through activating the “Gotong Royong” orKampung spirit of “neighbours help
neighbours”, SCCFSC provides an avenue forcase management and counselling, information
and referral services as well as community
engagement programmes to meet needs andchallenges of the community.
CLSA Singapore office supports SCCFSC in the‘Lou Hei 2019’ campaign. The volunteers
distributed packed Lou Hei meals to individual
flat units at the Lengkok Bahru community andshared Lunar New Year greetings with residents
through a Lion Dance and Potluck.
Grocery andblanketDistribution at
Chaitanya
WomenFoundation

India
Chaitanya is a community based micro-financeinstitution which facilitates women's economic
empowerment in rural India. It promotes selfhelp group federations to provide the womenmuch needed social security and a platform toaddress their financial and social needs. CLSA

55

Activity

Location

Description

Number ofvolunteers

Date

16

13 Jul 2019

India distributed 2 tons of grocery supplies and70 blankets/bedsheets to the needy women.

Tree planting at
Chaitanya

India
CLSA India help to conserve the environment byplanting 30 saplings at Chaitanya.


Mask necklace

Seoul, Korea



Foodbank
Australia

Boston Scores

Sydney,Australia

As Koreans stay indoors to help stem the
spread of Covid-19, CLSA staff from Kore spring
into action and DIY 100 masks which were
donated to the under- privileged children.

10

Jan 2020

CLSA staff from Australia equities andInvestment Banking team worked with
Foodbank Australia on a bushfire relief project.
In the summer of 2019/2020 Australia
experienced an unprecedented bushfire
season, devastating regional communities
across the country. 46 million acres were burnt(roughly the same areas as the entire countryof Syria), the loss of what is estimated to be
more than 3,500 homes and thousands of otherbuildings including businesses and livestock
housing, and over tragically 1 billion animals.
The staff spent the day unpacking the generous
donations received from the community,
corporate Australia and overseas charities andsorting them into containers for distribution toregional Foodbank centres. Foodbank thendistributed food and necessary items to
impacted families who had lost their homes
and livelihoods and sheltered in community
centres, with relatives and in temporary
shelters.

2

Jan 2020

CLSA staff volunteered to be part of an afterschool programme in conjunction with Boston
Public Schools to provide urban youth with
team-based education that promotes health &wellbeing, academic engagement, and civic
leadership.
Staff helped students with reading and writing
poetry, financial literacy through the One Hen
social entrepreneurial programme, and aseasonal soccer programme in conjunction with
the U.S. Soccer Foundation.

2

Jan-Dec 2020

Boston, USA

CLSA Group Sustainability Report – 2020

56

Activity

Location

GOSO (Getting
Out Staying Out)New York,
USA

Futures andOptions

New York,USA

Description

GOSO partners with people impacted by arrestand incarceration on a journey of education,
employment and emotional wellbeing andcollaborates with NYC communities to support
a culture of nonviolence. CLSA staff mentor
just-released convicts in life skills to avoid
recidivism.

Number ofvolunteers

Date

1

Jan-Dec 2020

1

Jan-Dec 2020

Futures and Options connects New York City's
underserved youth to paid, mentoredinternships, job-readiness training, andpersonalized college guidance.
CLSA supports career development and paidinternship program which provides the NYC
underserved youth with critical work-readinesstraining and the opportunity to gain first-handwork experience as interns with a dynamic
range of business partners.

Table 14: 2019 - 2020 Community Outreach Activities supported by other global offices

57
CLSA Community Outreach in Action

Cardboard grannies visit (5 Jan 2019)

CNY luncheon (14 Feb 2019)

CLSA Group Sustainability Report – 2020

58

Charity Walk (2 Mar 2019)

Tree planting (31 Mar 2019)

Dragon Boat Festival volunteer activity, Hong Kong (20 June 2020)

59

Dragon Boat Festival volunteer activity, Hong Kong (20 June 2020)

Mid-Autumn Festival volunteer activity, Hong Kong (26 Sep 2020)

CLSA Group Sustainability Report – 2020

60

Olympic Day Run (23 Jun 2019)

Hot Meal Service with Peiho Counterparts (14 Sep 2019)

61

Sunshine Fortune Bags for Mid-Autumn Festival (31 Aug 2019 & 4 Sep 2019)

Coastal cleaning, Hong Kong (13 Oct 2019)

OneSky Charity Hike (10 Nov 2019)

CLSA Group Sustainability Report – 2020

62

Staff engaged in bushfire relief activities in Australia (Jan 2020)

63

DIY mask movement, CLSA Korea office (Jan 2020)

Lou Hei 2019 - CLSA Singapore (Feb 2019)

CLSA Group Sustainability Report – 2020

64

Lou Hei 2019 - CLSA Singapore (Feb 2019)

65

Appendix A

CLSA’s GRI Standards Content Index

The CLSA Group Sustainability Report 2020 and GRI Standards Content Index reference
disclosures from the GRI Standards. This material references:
Economic Disclosures: 205-1 and 205-2 (a-e - partial) from GRI 205: Anti-Corruption 2016; 206-1 from GRI 206: Anti-Competitive Behaviour 2016;
 415-1 from GRI: 415: Public Policy 2016;
 418-1 from GRI 418: Customer Privacy 2016;
 419-1 from GRI 419: Socioeconomic Compliance 2016; andDisclosures 103-1 (b, c – partial), 103-2 (b, c – partial) and 103-3 (c – partial) from GRI 103:
Management Approach 2016.
Environment Disclosures:
 302-1 from GRI 302: Energy 2016;
 303-1 (d – partial), 303-2(a – partial), 303-3, 303-4, 303-5 (a-d partial) from GRI
303: Water and Effluents 2018; 304-2 (a-b - partial) from GRI 304: Biodiversity 2016; 305-1 and 305-2 from GRI 305: Emissions 2016;
 306-1, 306-2 (a-c partial), 306-3 (a-b - partial), 306-4 (a-b - partial), 306-5 (a-e - partial) from306: Waste 2018; 307-1 from GRI 307: Environmental Compliance 2016;
 308-1 from GRI 308: Supplier Environmental Compliance 2016; andDisclosures 103-1 (b, c – partial), 103-2 (b, c – partial) and 103-3 (c – partial) from GRI 103:
Management Approach 2016.
Social Disclosures:
401-3 (a-e - partial) from GRI 401: Employment 2016;

403-1 (a-b - partial), 403-2 (a-d - partial), 403-3 (a-b - partial), 403-4 (a-b - partial), 403-5(a - partial), 4 0 3 - 6 (a-b - partial), 4 0 3 - 7 (a - partial), 4 0 3 - 8 (a-c - partial) and 403-9 (a-g- partial) from GRI 403: Occupational Health & Safety 2018;
404-1 (a – training hours not available) and 404-3 (a – partial) from GRI 404: Training
and Education 2016;

405-1 (a-b partial) from GRI 405: Diversity and Equal Opportunity 2016;

408-1 (a-c - partial) from GRI 408: Child Labour 2016;

409-1 (a-c - partial) from GRI 409: Forced or Compulsory Labour 2016;

412-1 (a - partial) and 412-2 (a-b – partial) from GRI 412: Human Rights Assessment
2016;413-1 from GRI 413: Local Communities 2016;

414-1 from GRI 414: Supplier Social Assessment 2016; andDisclosures 103-1 (b, c – partial), 103-2 (b, c – partial) and 103-3 (c – partial) from GRI 103:
Management Approach 2016.

CLSA Group Sustainability Report – 2020

66

Item #

Description-Disclosure
Items

Status of Conformance(Full / Partial /No with explanation)

Report Location / Explanation

GRI 101: FOUNDATION 2016
GRI 102: GENERAL DISCLOSURES 2016
1

ORGANISATIONAL PROFILE

102-1

Name of the organisation

Full

About the Company p7

102-2

Activities, brands, products
and services

Full

Business Overview p7

102-3

Location of headquarters

Full

Key Facts p10

102-4

Location of operations

Full

Global Reach p8

102-5

Ownership and legal form

Full

Ownership and Management Team p10

102-6Markets served

Full

Network p9

102-7

Scale of the organisation
Information on employees
and other workers

Full

About the Company p7

Full

Our People p39

102-9Supply chain

PartialEquity Research p36
Environmental Management Approach
p44

102-10Significant changes to theorganisation and supply
chain

Partial

Ownership and Management Team, p10102-11

Precautionary Principle orapproachFull102-12External initiatives

Full102-13

Membership of associations

Yes

2

STRATEGY
Statement from seniordecision maker of theorganisation
Key impacts, risks andopportunities

102-8

102-14102-15
3
102-16102-17

Outlined in ISO 14001-certified EMS
Environmental Management Approach
p44
Sustainability Framework p18
Our Stakeholders, Materiality andEngagement p18
Our Stakeholders, Materiality andEngagement P21

Full

Chairman’s Statement p4

PartialCorporate Governance p22-30

Partial

Ethical Management p27

PartialWhistleblowing p27 and Internal
Controls p28

Full

Approach and Structure p23

ETHICS AND INTEGRITY
Values, principles,standards, and norms of
behaviour
Mechanisms for advice andconcerns about ethics

GRI 102: GENERAL DISCLOSURES 2016
4

GOVERNANCE

102-18Governance structure

67
Status of Conformance(Full / Partial /No with explanation)

Item #

Description-Disclosure
Items

5

STAKEHOLDER ENGAGEMENT

102-40

List of stakeholder groups

102-41
102-42

Collective bargaining
agreements
Identifying and selecting
stakeholders

Full
Full
Full

102-43

Approach to stakeholder
engagement

Full

102-44

Key topics and concerns
raisedFull

6

REPORTING PRACTICE

102-45102-46

Entities included in the
consolidated financial
statements
Defining report content andtopic Boundaries

Full

About the Report p3
Addressed throughout the Report

Partial102-48

Restatements of information

Full

102-49Changes in reporting

Full

102-50

Reporting period

Full102-51

Date of most recent report

Full102-52

Reporting cycle

Full

102-55102-56External assurance

102-54

Our Stakeholders, Materiality andEngagement p19
Our Stakeholders, Materiality andEngagement p19 and this Sustainability
Report

CLSA is a private company and does not
publicly disclose its financial statements.

List of material topics

Contact point for questions
regarding the report
Claims of reporting inaccordance with the GRI
Standards
GRI content index

Our Stakeholders, Materiality andEngagement p19
CLSA does not have any collective
bargaining agreements in place.
Our Stakeholders, Materiality andEngagement p18

No102-47102-53

Report Location / Explanation

This Report is CLSA’s first Sustainability
ReportThis Report is CLSA’s first Sustainability
ReportAbout the Report p3
This Report is CLSA’s first Sustainability
ReportThis Report is CLSA’s first Sustainability
ReportFull

About the Report p3

Full

About this Report p3
Sustainability Framework p18

Full
No

This Content Index
This report has not been externallyassuredGRI 200: GOVERNANCE
GRI 103: MANAGEMENT APPROACH 2016
103-1

Explanation of the material
topic and its boundary

PartialSustainability Framework p18
Corporate Governance p22-30

103-2

The management approachand its components

PartialSustainability Framework p18
Corporate Governance p22-30

103-3

Evaluation of the
management approach

PartialSustainability Framework p18
Corporate Governance p22-30

FullAnti-bribery and Corruption p28

GRI 205: ANTI CORRUPTION 2016
205-1

Operations assessed for risks
related to corruption

CLSA Group Sustainability Report – 2020

68

Item #

Description-Disclosure
Items

Status of Conformance(Full / Partial /No with explanation)

Communication and training
about anti-corruption
Partialpolicies and procedures
Confirmed incidents of
205-3
Full
corruption and actions taken
GRI 206: ANTI-COMPETITIVE BEHAVIOUR 2016
Legal actions for anticompetitive behaviour, anti206-1
Fulltrust, and monopoly
practices
GRI 415: PUBLIC POLICY 2016
205-2

415-1

Political Contributions

Report Location / Explanation

Anti-bribery and Corruption p28
Anti-bribery and Corruption p28

Anti-bribery and Corruption / Conflictsof Interest p28

Full

Internal Controls p28

Full

Internal Controls p28

GRI 418: CUSTOMER PRIVACY 2016
418-1

Substantiated complaints
concerning breaches ofcustomer privacy and lossesof customer data

GRI 419: SOCIOECONOMIC COMPLIANCE 2016
Non-compliance with laws
and regulations in the social Fulland economic area
GRI 300: ENVIRONMENTGRI 103: MANAGEMENT APPROACH 2016
Explanation of material topic
103-1
Partialand its boundary
The management approach
103-2
Partialand its components
Evaluation of the
103-3
Partialmanagement approach
GRI 302: ENERGY 2016
Energy consumption within
302-1
Full
the organisation
GRI 303: WATER AND EFFLUENTS 2018
419-1

Internal Controls p28

Environmental Management Approach
p44
Environmental Management Approach
p44
Environmental Management Approach
p44

Environmental metrics p44-46

CLSA consumes water from municipal
systems for use in its offices.
303-1

Interactions with water as ashared resource

Partial

303-2

Management of water
discharge-related impacts

Partial

303-3

Water withdrawal

Full

303-4

Water discharge

Full

Clean Resources Asia Growth Fund p41
CLSA integrates water risk assessment
into its investment process.
Greywater from CLSA’s offices isdischarged to municipal systems.
Clean Resources Asia Growth Fund p41
CLSA integrates water risk assessment
into its investment process.
CLSA consumes water from municipal
systems for use in its offices.
Greywater from CLSA’s offices isdischarged to municipal systems.

69

Item #

303-5

Status of Conformance(Full / Partial /No with explanation)

Description-Disclosure
Items
Water consumption

PartialReport Location / Explanation

CLSA consumes water from municipal
systems for use in its offices. Data
unavailable.

GRI 304: BIODIVERSITY 2016
Investing Responsibly p31-38
304-2

Significant impacts ofactivities, products, andservices on biodiversity

GRI 305: EMISSIONS 2016
Direct (Scope 1) GHG
305-1
emissions
Energy indirect (Scope 2)
305-2
GHG emissions
GRI 306: WASTE 2018
Waste generation and306-1
significant waste-related
impacts
Management of significant
306-2
waste-related impacts

Partial

CLSA integrates assessment of potential
impacts on biodiversity into its
investment process.

Full

Environmental Metrics p46

Full

Environmental Metrics p46

PartialEnvironmental Management Approach
p44

Partial306-3

Waste generated

Partial306-4

Waste diverted from
disposal

Partial306-5

Waste directed to disposal

PartialGRI 307: ENVIRONMENTAL COMPLIANCE 2016
Non-compliance with
307-1
environmental laws andFullregulations
GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT 2016
New suppliers that were308-1
screened using
Full
environmental criteria
GRI 400: SOCIAL

Environmental Management Approach
p44
Environmental Management Approach
p44
Environmental Management Approach
p44
Environmental Management Approach
p44

Environmental Management Approach
p44

Supplier Management p29

GRI 103: MANAGEMENT APPROACH 2016
103-1
103-2
103-3

Explanation of material topic
and its boundary
The management approachand its components
Evaluation of the
management approach

PartialOur People p39-42

PartialOur People p39-42

PartialOur People p39-42

PartialHealth, Safety and Wellbeing p40

GRI 401: EMPLOYMENT 2016
401-3

Parental leave

GRI 403: OCCUPATIONAL HEALTH & SAFETY 2018403-1

Occupational health andsafety management system

PartialHealth, Safety and Wellbeing p40

CLSA Group Sustainability Report – 2020

70

Item #

Description-Disclosure
Items

Status of Conformance(Full / Partial /No with explanation)

Report Location / Explanation

Health, Safety and Wellbeing p40
Investing Responsibly p31-38

403-2

Hazard identification, risk
assessment, and incident
investigation

Partial403-3

Occupational health services

PartialHealth, Safety and Wellbeing p40

PartialHealth, Safety and Wellbeing p40

PartialHealth, Safety and Wellbeing p40

PartialHealth, Safety and Wellbeing p40

PartialHealth, Safety and Wellbeing p40

PartialHealth, Safety and Wellbeing p40

PartialThere were no work related fatalities in
2020. Data on work-related injuries are
not available.

403-4

403-5
403-6

403-8

403-8

403-9

Worker participation,
consultation, andcommunication on
occupational health andsafetyWorker training on
occupational health andsafetyPromotion of worker healthPrevention and mitigation ofoccupational health andsafety impacts directly
linked by business
relationships
Workers covered by an
occupational health andsafety management system
Work-related injuries

GRI 404: TRAINING & EDUCATION 2016
Average hours of training
404-1
No
per year per employee
Percentage of employees
receiving regular404-3
Partialperformance and careerdevelopment reviews

CLSA integrates assessment of potential
hazards and risks into its investment
process.

Data are unavailable.

Learning and Development p39

GRI 405: DIVERSITY & EQUAL OPPORTUNITY 2016
Diversity of governancebodies and employees
GRI 408: CHILD LABOUR 2016
405-1

408-1

Operations and suppliers at
significant risk for incidents
of child labour

PartialOur People: Overview p39

Corporate Governance Training p29
Supplier Management p29
Investing Responsibly p31-38
Partial
CLSA integrates assessment of potential
risks into its investment and supplierselection processes.

71

Item #

Status of Conformance(Full / Partial /No with explanation)

Description-Disclosure
Items

Report Location / Explanation

GRI 409: FORCED OR COMPULSORY LABOUR 2016409-1

Operations and suppliers at
significant risk for incidents
of forced or compulsory
labourCorporate Governance Training p29
Supplier Management p29
Investing Responsibly p31-38
Partial
CLSA integrates assessment of potential
risks into its investment and supplierselection processes.

GRI 412: HUMAN RIGHTS ASSESSMENT 2016

412-1

Operations that have been
subject to human rights
reviews or impact
assessments

Employee training on humanrights policies or procedures
GRI 413: LOCAL COMMUNITIES 2016
Operations with local
community engagement,
413-1
impact assessments, anddevelopment programs
412-2

PartialCorporate Governance Training p29
Supplier Management p29
Investing Responsibly p31-38
CITIC Securities One-Belt-OneRoad (CSOBOR) Fund p37
CLSA integrates assessment of humanrights risk into its investment andsupplier selection processes.

PartialCorporate Governance Training p29

Full

Investing Responsibly p31-38
Our Community p48-63

GRI 414: SUPPLIER SOCIAL ASSESSMENT 2016414-1

New suppliers that werescreened using social criteria

Full

Supplier Management p29
Investing Responsibly p31-38

CLSA Group Sustainability Report – 2020