Since 2017, Business Environment Council (“BEC”) has been working on the Low Carbon Hong Kong initiative through the publication of an introductory report and a series of workshops for businesses backed up by research. Starting with the property and construction sector, BEC engaged businesses to support their decarbonization journeys and to collectively solve problems encountered along the way. In March 2019, BEC Low Carbon Charter was launched to mobilise companies to contribute with collective resolve towards Hong Kong’s long-term decarbonisation.
Among the 32 leading companies across Hong Kong’s property and construction value chain which signed up to BEC Low Carbon Charter, BEC was delighted to have a conversation with the representatives of two of the signatories – Dr Raymond Yau, General Manager, Technical Services & Sustainable Development, Swire Properties Limited; and Ms Ellie Tang, Head of Sustainability, New World Development Company Limited. Both companies are BEC’s Council Members.
1. Why did your company sign up to BEC’s Low Carbon Charter? Did your company also sign up to other charters of its kind? How do you see the differences?
Dr Raymond Yau:
Swire Properties is delighted to have signed and helped develop BEC Low Carbon Charter. The Charter reflects the urgency to set decarbonisation targets in line with the Paris Agreement – to keep the increase in global average temperature within 2⁰C above pre-industrial levels.
Sustainable development has always been a key part of our business, and with the launch of our Sustainable Development (SD) 2030 Strategy in 2016 – which aims to further integrate SD into every aspect of our business – we reinforced our commitment to reducing our carbon footprint.
As part of our SD 2030 ambitions, in August 2018, Swire Properties became the first developer in Hong Kong and Mainland China to commit to the Science-Based Targets initiative (SBTi); and we have begun work to develop and adopt new “science-based targets”. These efforts match closely with Pathway 2 of BEC’s Low Carbon Charter.
The full scope of our SD efforts, in the past decade, can be found in our annual sustainable development reports.
Ms Ellie Tang:
New World Development’s business covers property development, construction, and management. We have been supporting the Government’s Energy Saving Charter, the 4Ts Charter and Charter on External Lighting for many years. Due to the business coverage, we have an obligation to manage our impact and support BEC Low Carbon Charter.
The Intergovernmental Panel on Climate Change (IPCC) published a special report outlining the impacts of global warming of 1.5°C and 2.0°C above pre-industrial levels respectively. It sent a clear message that even under the 2°C rise scenario, the impacts to human, the eco-system and business operations would be severe. We absolutely should address and respond to the climate crisis immediately.
In 2017, New World Development launched the “New World Sustainability Vision 2030” which covers group’s business while environmental protection is one of important elements. To realise the vision, we have introduced interim building energy intensity reduction targets for major commercial and retail projects and are setting Group-level targets by closely referencing the Paris Climate Agreement, the Greater Bay Area development blueprint, and the National Climate Change Adaptation Strategy. Sharing the same view, BEC Low Carbon Charter offers a useful framework and incentive for us to work towards our goal progressively.
2. How would the Charter influence your business? What are the business benefits?
Dr Raymond Yau:
To realise our commitment to developing and adopting science-based targets, which is part of our SD 2030 Strategy, we are working closely with a wide array of stakeholders including our tenants and suppliers.
Our new science-based targets will not only look at reductions in Scope 1 and 2 emissions arising from onsite electricity generation and purchased electricity for shared and common areas, they will also consider Scope 3 emissions which are associated with our partners. We will engage and collaborate with our office and retail tenants to create practical targets, and go on this decarbonisation journey together.
For new buildings, we are also taking into consideration embodied carbon in key construction materials and carbon emissions from construction activities. As part of an ongoing pilot study, we are working with our contractors and suppliers to collect data on carbon emissions arising from the construction of One Taikoo Place. We are working with a research team from the Hong Kong University of Science and Technology’s Department of Civil and Environmental Engineering to utilise this data to develop a carbon accounting methodology that will allow us to identify carbon reduction opportunities for future developments.
Ms Ellie Tang:
The Charter serves as a public statement to show the group’s determination and responsibility in fighting against climate crisis.
Before signing up the Charter, we were required to gain support from our management, board directors and related departments including sustainability, properties development, planning, and technology. To set targets of carbon reduction, we have to come up with innovative solutions which turn out to be business opportunities.
In addition, to fulfill particular targets, we have to comply with specific professional frameworks and principles, also fostering knowledge transfer and offering fruitful training materials to our staff.
3. Would you encourage other companies, including those from the building and construction sector, to sign up the Charter?
Raymond Yau:
I am delighted that 31 organisations (as of 19 March 2019*) have become signatories, with 29 committing to Pathway 1 of the Charter. I encourage more businesses to consider committing to the more ambitious Pathway 2.
I strongly agree with what Mr C W Tse, Under Secretary for the Environment, said at the Charter’s launch ceremony that once actions had been taken, the whole mindset would begin to change. Swire Properties has come a long way, and we have invested considerable time and effort to reach where we are now. There is still so much more that we, as well as the industry, can do. Every step forward by our peers and partners will help bring Hong Kong closer to a low carbon economy.
Ellie Tang:
Absolutely. A significant level of carbon reduction will rely on the support from more supply chain players in the property and construction industry. Establishing targets is the first step to track and manage ongoing performance. We hope to see commitment from more companies so peer influence and best practices will emerge to expedite our target achievement as an industry and as a city.
* One more company signed up to BEC Low Carbon Charter after the interview conducted on 19 March 2019.