May Tan is a seasoned leader with over three decades of experience in banking and finance. Currently serving as an Independent Non-Executive Director of CLP Holdings in Hong Kong, she also sits on several prestigious boards across Asia and internationally. A qualified accountant by training, May’s illustrious career includes her role as the former CEO of Standard Chartered Bank in Hong Kong. Her expertise extends beyond the corporate sphere as she contributes to non-profit and government-related boards, establishing herself as a respected figure in both business and social governance.

I first met May at a dinner during the Salzburg Global Seminar Forum, titled Corporate Governance: How Can Corporate Governance Address the Accelerating Challenges of the Climate and Nature Crises? I was particularly moved by her approach to corporate governance and her insights, especially her concept of permanent resources to engage long-term as a board member and serve the interests of multiple stakeholders. These stakeholders include not only investors who provide capital but also the community, partners, and all those who contribute to the longevity of the enterprise. This sparked my interest in having a more in-depth conversation with her.

May Tan, Non-Executive Director of CLP Holdings

Understanding the bigger picture: CLP Holdings and long-term stewardship

As a board member of CLP Holdings, May’s insights are critical for understanding the possibilities for our planet’s future. CLP is one of the largest investor-owned power businesses in the Asia-Pacific region, with investments in Hong Kong, Mainland China, Australia, India, Taiwan, and Thailand. The company’s mission is to be a leading, responsible energy provider from one generation to the next, encapsulated in their purpose: Power Brighter Tomorrows. Notably, CLP serves 80% of Hong Kong’s population.

In this interview, we explore how May engages with ESG (Environmental, Social, and Governance) in her role as a board member, alongside her peers. She shares valuable insights into how long-term thinking, strong partnerships, and community impact can shape sustainable corporate strategies. With extensive leadership experience across global organizations and an active role on multiple boards, May brings a unique perspective on how leaders can effectively integrate ESG principles into business operations and governance.

The balance of practicality and philosophy in ESG

Our conversation touches on both practical challenges and philosophical considerations surrounding ESG. May reflects on the importance of community engagement, supply chain sustainability, and the delicate balance between short-term financial pressures and long-term investments in the future of the company and society.

This interview has been edited for clarity, flow, and structure, while preserving the substance of the conversation.

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Judithe Registre: Regulations are crucial for ensuring compliance, but what do you think about the evolving role of ESG in corporate governance?

May Tan: Regulations are certainly fundamental, as they ensure that companies meet the legal and compliance requirements necessary for operation. However, ESG goes beyond just adhering to regulations. It represents a shift in how businesses should think about their role in society and the environment. The challenge is that many organizations still treat ESG as a box-ticking exercise, something they can quickly check off as a compliance task. In reality, ESG initiatives are complex and involve long-term strategic thinking.

For example, reducing emissions or investing in renewable energy won’t yield immediate results but are critical for the sustainability of the business over the next decade or more. What’s crucial is that boards don’t allow management to be swayed by short-term market trends or activist shareholder pressures that may conflict with these long-term ESG goals. ESG is not a quick win — it requires a deep commitment and careful integration into every aspect of the business. A good board needs to support management by clarifying that these initiatives will take time to manifest their full impact, and their success shouldn’t be judged purely on short-term financial returns.

You mentioned that ESG is a long-term journey. How do you personally approach ESG as a board member, given the need for returns?

May Tan: For me, ESG is all about community — the people we serve, the people we work with, and the broader society that our business impacts. I always try to think about the communities affected by the decisions we make, whether those are our customers, employees, or even residents living near our operations. This broader lens ensures that we’re not just thinking in terms of profit but also in terms of our larger societal and environmental impact.

For example, if the company is a heavy user of water, we need to consider how that affects the surrounding area. While we may not be directly responsible for providing water to the community, if our operations deplete local resources, the broader community suffers — and ultimately, so do we. The well-being of the community is inherently tied to the well-being of the business. That’s why my approach is always to take a long-term view, ensuring that we’re creating sustainable value not just for shareholders but for everyone we impact. ESG is an ongoing commitment that must be embedded in every decision the company makes, from top leadership down to day-to-day operations.

Photo Courtesy of CLP Holdings

Balancing ESG commitments and profitability can sometimes create tension. How do you manage this balance in the boardroom?

May Tan: The perception that ESG detracts from profitability is a misunderstanding. In the long term, ESG and profitability are deeply intertwined. While ESG initiatives may have upfront costs, they often create value beyond immediate financial gains. For example, investing in water conservation in a water-scarce region might seem costly initially, but it generates community goodwill and enhances the company’s reputation, which can lead to tangible financial benefits over time.

There’s also a risk mitigation aspect. Investing in sustainable practices now can prevent much higher costs in the future due to environmental degradation, social unrest, or tighter regulations. It’s not an either/or situation — it’s about evaluating each initiative carefully, considering both short-term financial impacts and long-term benefits to the company’s sustainability and social standing.

Image Courtesy of CLP Holdings

How do you navigate differing opinions about ESG within the boardroom?

May Tan: In any boardroom, you’ll encounter diverse opinions on ESG because it touches on many areas — environmental responsibility, social issues, governance — and each director may prioritize these differently. Some directors focus on short-term financial performance, while others advocate for a long-term view, integrating ESG into the company’s DNA.

My approach is to bring the conversation back to the bigger picture. I demonstrate that without integrating ESG, a company sets itself up for long-term risks. For instance, if we neglect our environmental and social responsibilities, it can lead to resource scarcity or reputational damage, ultimately affecting the bottom line.

In regions where ESG is politicized, I help people see the broader, non-political context. I emphasize that ESG isn’t just about social responsibility—it’s critical to the long-term survival and success of the business.

Photo Courtesy of The Malaysian Chamber of Commerce Hong Kong and Macau

You’ve worked with many supply chains. How do you ensure that partners align with your ESG goals?

May Tan: The supply chain is a critical part of the business, and it’s easy to overlook how integral these partners are to our success. One mistake companies often make is treating their suppliers as purely transactional relationships, choosing the cheapest option available. But that’s shortsighted. We need to see our suppliers as partners in achieving our overall business and ESG objectives. For example, if one of our suppliers faces financial difficulties and can’t afford to invest in a key area — like upgrading their cybersecurity systems — it becomes a risk for us as well. Their vulnerability becomes our vulnerability, whether it’s in the form of data breaches, service interruptions, or reputational damage. Rather than simply cutting ties with a supplier who may have served us well for years, I believe it’s often in our best interest to help them weather the storm. This might mean extending payment terms or providing early payments to help them through difficult times.

It’s not about being charitable — it’s about being strategic. The cost of switching suppliers can be much higher than helping a long-term partner get back on their feet. Additionally, when you invest in your supply chain, you build loyalty and long-term stability, which is incredibly valuable in today’s global business environment. We need to think about the sustainability of our entire ecosystem, not just our immediate bottom line.

You’ve spoken about the need for stability in a rapidly changing world. How do you reconcile the need for change with maintaining core values?

May Tan: It comes down to having clarity in your core values. Change is inevitable, but if you’re grounded in a clear set of values, you can navigate these changes while maintaining a sense of purpose and direction. Core values provide the anchor that allows you to adapt without losing your identity.

That said, being adaptable is just as important as having stability. Companies that refuse to change in the face of evolving realities will find themselves left behind. It’s about thoughtful evolution — preserving what works while adjusting to new challenges and opportunities.

In the boardroom, I encourage leadership to strike a balance between holding onto the core values that have made the company successful and being open to new ideas that will help it thrive in the future. Change is necessary, but continuity ensures long-term success.

Technicians; Image Courtesy of CLP Holdings

What role does permanent capital play in ESG and sustainability?

May Tan: While institutional investors give a lot of attention to ESG, they’re not always the most critical players for long-term sustainability due to their often transient nature. Permanent capital, on the other hand, is more committed. For example, private equity firms often work closely with management to drive long-term value creation, as they’re locked into the company for a set period.

This commitment allows the company to pursue ESG initiatives that require time to come to fruition, without the pressure of short-term results often demanded by more transient shareholders. Having investors who understand the long-term journey of ESG and are willing to stick around is far more valuable than catering to short-term market fluctuations. Permanent capital gives the company the freedom to focus on its long-term sustainability.

How do you think about the supply chain when making decisions at the board level?

May Tan: The supply chain is often viewed as something external to the company, but in reality, it’s deeply intertwined with our operations. If our suppliers struggle, we feel the impact — whether it’s through delays, quality issues, or even cybersecurity vulnerabilities that can affect our entire network. That’s why I always advocate for viewing suppliers as partners rather than just external entities.

While institutional investors give a lot of attention to ESG, they’re not always the most critical players for long-term sustainability due to their often transient nature.

For instance, if one of our long-term suppliers faces financial difficulties and can’t afford to upgrade their technology, that may seem like their problem, but it quickly becomes ours too. If their systems are compromised, it could affect our operations or even expose us to data breaches. Rather than cutting ties and looking for a cheaper supplier, we should consider how we can support them. Maybe it’s through extended payment terms or offering financial assistance to help them through a rough patch. It’s in our interest to ensure that our partners are strong and capable because their success directly impacts ours.

This kind of thinking is part of a broader ESG strategy. It’s about understanding that the health of our ecosystem — including our suppliers — is critical to the health of the business. Making decisions that support long-term partnerships and foster resilience within the supply chain ultimately makes the company more stable and sustainable.

That reminds me of how companies sometimes hesitate to give employees small raises but spend much more on recruiting and training new hires. Do you see a similar parallel with suppliers?

May Tan: Absolutely, the parallel is striking. It’s often far more cost-effective to invest in someone — or in this case, a supplier — who already knows your business and has proven their reliability. When companies hesitate to give small raises or investments to long-term partners, they often end up spending much more when they have to replace them. Whether it’s through recruitment costs, onboarding new suppliers, or dealing with the disruption that comes from changing key relationships, the overall expense is usually much higher.

In any boardroom, you’ll encounter diverse opinions on ESG because it touches on many areas — environmental responsibility, social issues, governance — and each director may prioritize these differently.

This is why I always advocate for nurturing the relationships you already have. When you invest in a supplier or employee who has been loyal to you, you’re building long-term stability. People — and businesses — who feel valued will work harder and be more committed. The same logic applies across the board. It’s about creating a culture of mutual trust and respect, which leads to better outcomes for everyone involved.

What advice would you give to board members who are working to integrate ESG while managing differing perspectives on profitability?

May Tan: One of the most useful tools is to use “what if” scenarios. These allow board members to stress-test different possibilities and see what the long-term risks of not integrating ESG might be. For example, what happens if climate change leads to severe water shortages, forcing our customers or employees to migrate? How would the company react in that scenario? Could we survive it? By walking people through these potential future challenges, it becomes easier to see why ESG is critical to long-term profitability and sustainability.

Not everyone will be on the same page, and that’s normal in any boardroom. But I’ve found that helping others visualize the potential risks and rewards of different approaches allows them to understand that ESG is not just about social responsibility — it’s about protecting the business. Over time, boards evolve, and new members come in, offering fresh perspectives. It’s an ongoing process of education and adaptation, but it’s worth it.

Insights and Implications: Navigating ESG for Long-Term Corporate Success

The conversation with May Tan offers profound insights into the evolving role of ESG in corporate governance, emphasizing the importance of considering multiple stakeholders as well as fostering long-term thinking and community-centered strategies. Her balanced approach to integrating ESG into business practices — while maintaining profitability — highlights the necessity of aligning corporate values with sustainable actions.

May’s emphasis on cultivating strong partnerships, both within the supply chain and with communities, underscores the interconnectedness of corporate success and social responsibility. Her practical advice on navigating boardroom dynamics and anticipating future challenges offers a roadmap for leaders aiming to embed ESG into their core operations. This interview underscores the critical role board members play in steering organizations toward a future that is not only financially robust but also socially accountable, reminding us that sustainability is not a trade-off, but a foundation for lasting success.