For years, the Company has believed that engaging with our stakeholders is fundamental to aligning our environmental, social and economic performances with core business strategies. This has added value and viability to our operations. We actively engage our stakeholders through different channels both regularly and on an ad hoc basis. Through this effective exchange of ideas, we heighten the level of transparency in our operations and decisions.

We also engage our stakeholders through a skill training programme launched in 2010 to share corporate expertise with non-governmental organisations (NGOs). The first workshop on low carbon economy was conducted on 16 November 2010 and attended by 15 representatives from seven NGOs.

Stakeholder Group	Examples of Engagement Channels
Customers	Customer Liaison Group, energy audits, courtesy visits, monthly after-service satisfaction surveys, customer suggestion box, enquiries, ambassador visits, "We Meet on Friday" Sessions
Suppliers	Regular meetings, CSR seminars, annual Safety, Health & Environmental (SHE) Forum, monthly SHE Circle Meetings
Employees	Quarterly Joint Consultation (JC) Representative Meetings, internal surveys, bi-monthly Environment, Quality, Health & Safety Meetings, JC Workshops, corporate intranet, online suggestion box "Tell us What U Think", monthly employee relations visits, employee hotline, theme talks, topical briefing sessions, newsletters
Authority, legislators and district councillors	Periodic and ad hoc meetings, such as Legislative Council's Panel on Economic Development, EMSD's Energy Efficiency and Conservation Sub-Committee and its working groups, Energy Advisory Committee and district council meetings
Local communities	Community events, consultations, visits to Lamma Power Station (LPS)
Non-governmental organisations	Meetings and workshops, public events, advisory roles
Education sector	Visits to LPS and Lamma Winds, Smart Power Campaign, Clean Energy Fund, school talks, open days
Shareholders	Annual General Meeting, visits to LPS
Overseas visitors	Visits to LPS and Lamma Winds, meetings
Professional institutions	Communication meetings, presentations, seminars
Media	Press releases, media conferences and briefings, enquiries, tea gatherings, lunch meetings

We engage various stakeholders on particular issues to present our case and collect views and suggestions. We strive to make stakeholder communication a part of our day-to-day business operations. Here are some examples in 2010:

Specific Issues	Engagement Channels
Tariff review	Meetings with Legislative Council, District Councils, members of political parties and Energy Advisory Committee
Acquisition of EDF Energy PLC's UK electricity network activities	Extraordinary General Meeting
Offshore Wind Farm project	Meetings with Legislative Council members, Energy Advisory Committee members, district council members, Lamma Rural Committees, local community, fishermen groups, green groups, Stakeholder Liaison Group
Sponsorship and community education programmes	Education Fund's Advisory Committee Meeting

Specialised Stakeholder Engagement

We appointed an independent consultant to conduct a specialised stakeholder engagement exercise in 2010 to gather views and expectations from stakeholders on our sustainability reporting and performance; identify and prioritise key sustainability issues amongst our stakeholders and material issues to be included in the sustainability report; translate these issues into better decision-making both within and outside of the Company and strengthen its future sustainability reporting and performance.

Six major stakeholder groups were identified. Selection criteria included level of influence, dependency and responsibility, degree of proximity and the representation of these stakeholder groups. These comprise Employees, Customers, Non-governmental organisations, Suppliers, the Local Community and Shareholders.

Two main engagement approaches were adopted for these stakeholder groups, via one-to-one meetings and focus group discussions.

Stakeholder Group	Engagement Approach
Employees	Focus group discussion
Customers	One-to-one meeting/ Phone interview
Non-governmental organisations	One-to-one meeting/ Phone interview
Suppliers	One-to-one meeting
Lamma Island residents	One-to-one meeting
Shareholders	Focus group discussion

Most stakeholders are aware of, and have noted, a significant improvement in our dedication and efforts towards social and environmental responsibilities throughout 2010. In particular, many stakeholders appreciate the dedication with which we have strengthened stakeholder engagement channels and communications.

Through a materiality matrix, key stakeholder concerns are compared against the Group's business risks. Major sustainability issues include Environmental Performance, Financial Performance, Reliability of Electricity Supply, Tariffs, Combating Climate Change, Health and Safety, Corporate Governance, Staff Relations/Development, Supply Chain, Customer Services, Community Involvement and Research and Development. Of these, Environmental Performance and Community Involvement were rated the two most important sustainability issues by stakeholders. These were followed by Financial Performance, Reliability of Electricity Supply, Health and Safety, and Combating Climate Change. Other sustainability issues which have been raised include Industry Partnerships, Promoting Green Education, Business Growth and Fuel Mix (including the use of natural gas and renewable energy). After studying their feedback, these issues are addressed in relevant sections of this Sustainability Report.

Stakeholder Group	Key Sustainability Issues
Employees	Health and Safety, Staff Relations / Development
Customers	Tariffs, Customer Services
Non-governmental organisations	Community Involvement, Environmental Performance, Combating Climate Change, Customer Services
Suppliers	Industry Partnerships, Community Involvement
Lamma Island residents	Tariffs, Environmental Performance, Education
Shareholders	Financial Performance, Environmental Performance

Membership in Associations

As part of our stakeholder engagement efforts, we participate in many different associations and organisations including Business Environment Council (BEC); Climate Change Business Forum (CCBF); the Asia Pacific Customer Service Consortium (APCSC); Hong Kong Call Centre Association (HKCCA); Hong Kong Federation of Restaurants and Related Trades (HKFORT) and the Asian Sub-Bituminous Coal Users' Group (ASBCUG).

Some of our staff also hold positions in associations such as the Hong Kong Institution of Engineers (HKIE); The Institution of Engineering and Technology, Hong Kong (IET HK); The Institute of Measurement & Control, Hong Kong; The Hong Kong Association for the Advancement of Science & Technology; Association of Engineering Professionals; Joint Utilities Policy Group; Industry Training Advisory Committee, Education Bureau; Electrical Safety Advisory Committee; and Industry Consultative Networks, Employees Retraining Board. These efforts facilitate our communication and exchange of knowledge with different parties.

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