Carbon Emissions
HKEX KPI A1.2, A1.5
In 2020, our total carbon emissions decreased by 11.7% compared to 2019. The carbon intensity in our Hong Kong portfolio, Chinese mainland portfolio and U.S.A. portfolio decreased compared to 2019.
The Company’s largest source of carbon emissions under our control is Scope 2 emissions arising from purchased electricity. In our Hong Kong portfolio, this category of emissions increased by 3.5% compared to 2019 due to the inclusion of One Taikoo Place and South Island Place.
- Scope 2 emissions were quantified by the market-based method as defined by GHG Protocol
Carbon Intensity
- Carbon intensity reduction target references the BAU baseline year of 2008 for our Hong Kong portfolio. In our Chinese mainland portfolio, the BAU baseline in the first year for which a complete calendar year of data was available for the project.
Carbon Emissions - Scope 3
Swire Properties is conscious of our direct and indirect emissions at various stages along the value chain. Besides measuring Scope 1 (i.e. direct carbon emissions from energy combustion onsite) and Scope 2 carbon emissions (i.e. indirect carbon emissions from electricity purchased and used), we conducted a comprehensive review of Scope 3 emissions (i.e. indirect emissions that occur along the value chain) to understand our sources of emissions and identify the material categories for management and reporting.
From our review, we have identified that the most significant sources of our Scope 3 emissions are Category 2 – Capital Goods and Category 13 – Downstream Leased Assets, as categorised by the GHG Protocol:
Scope 3 Emissions by Category
To address the two most significant categories of Scope 3 emissions, we have established science-based reduction targets to reduce emissions generated by capital goods and downstream leased assets by 25% and 28% per square metre respectively by 2030.
To present a more holistic view of the Company’s carbon footprint along the value chain, the disclosure of our Scope 3 emissions is included in this report and will be reported from 2020 onwards. Please refer to Performance Data Summary for details. While Swire Properties may have limited influence or control over some of our Scope 3 emissions categories, we will continuously monitor these emissions, particularly if they represent an increasing portion of our total carbon footprint.
Energy Consumption
HKEX KPI A2.1, A2.3
In line with the reduction of energy consumption22 in our Hong Kong portfolio between 2008 and 2020, energy use intensity decreased by 34% from 199 kWh per square metre (“kWh/m2”) per year to 131 kWh/m2 per year over the same period.
By 31st December 2020, we had reduced annual energy consumption in our Hong Kong portfolio by 77.8 million kWh compared with 2008, meeting our 2020 reduction target.
22 | Energy consumption refers to electricity consumption for the provision of shared services for and in the common parts of our buildings. |
23 | Refers to the amount in the first complete calendar year in which energy consumption data are collected from each project. |
Water Use
HKEX KPI A2.2, A2.4
In 2020, total water use in our Hong Kong portfolio increased due to the inclusion of One Taikoo Place and South Island Place. We also attribute the increase in part to fresh water being used to replenish flushing water due to leakage of an underground flushing water pipe. Replacement work was completed in March 2021 after liaison with multiple government departments, district councillors and an estate management company representing 12,000 residential units.
Total water use in our Chinese mainland portfolio, U.S.A. portfolio and hotel operations decreased in 2020. We attribute this decrease, in part, to COVID-19.
Water Intensity
- Our Hong Kong portfolio refers to our office and retail portfolios in Hong Kong, excluding hotels; our Chinese mainland portfolio refers to our office and retail portfolios in the Chinese mainland, excluding hotels; our U.S.A. portfolio refers to our office and retail portfolios in the U.S.A., excluding hotels.
- Water intensity reduction targets reference the water consumption baseline year of 2016.
- The 2018 total water use and water intensity of U.S.A. portfolio has been adjusted to exclude tenants’ water use.
- The 2019 total water use and water intensities of Hong Kong portfolio and Hotels have been adjusted to reflect the actual water consumption in November and December 2019. The Water Supplies Department delayed the issuance of these water bills due to the outbreak of COVID-19 in early 2020.
Materials Used
By Projects Under Development in 2020
GRI 301
- Projects under development refers to projects that are under construction or in the precertification stage.
- Includes investment properties under development in all portfolios, including joint venture and non-joint venture projects.
- “Diesel consumption” includes biodiesel consumption.