The Green Performance Pledge Builds Momentum

Officially launched in July 2022 in Hong Kong, the Green Performance Pledge ("GPP") is a performance-based landlord-tenant partnership. Building on the basic premise of a green lease, the GPP covers the entire tenancy cycle in two core areas, fit-out and operation, focusing on creating a significant impact in terms of energy, water and waste reduction. This performance-based programme gives users access to an array of “green tools” and enhances tenant-landlord collaboration.
From the launch of the GPP pilot in August 2021 until 31 December 2022, 52 office tenants – representing 37.9% of occupied lettable floor area from the Company’s Hong Kong office portfolio (over 2.5 million sq ft) – signed up. Participants are from Taikoo Place, Pacific Place and One Citygate, and span a wide range of industries including banking and finance, legal, information technology and consumer brands. The GPP pilot also launched in our Chinese Mainland portfolio in December 2022. Swire Properties aims to engage 50%12 of office tenants in Hong Kong and the Chinese Mainland in the GPP by 2025.
For new tenants fitting out their premises, or for existing tenants planning a renovation, the GPP includes a set of “SD Fit-out Technical Guidelines”. Featuring user-friendly templates, the guidelines cover office design tips, as well as a validation and recognition system to improve energy and water efficiency, reduce waste and enhance employee wellness.
Under the operations portion, tenants can make use of various tools and methods of support available to guide them while they improve the sustainability of their operations. Highlights include performance benchmarking and action planning, data sharing, tailored SD offerings including free energy audits and smart water meters, access to pioneering green technologies such as Hong Kong’s first smart waste reduction monitoring system, networking opportunities, and recognition for exemplary environmental performance.
By encouraging tenants to elevate their SD performance, the GPP is also helping the Company meet its Scope 3 emissions reduction target of 28% per sqm for tenants by 2030 (against a 2018 baseline) under the science-based targets.
12Measured by occupied lettable floor area (“LFA”) of office portfolios at 100% basis comprising of Taikoo Place and Pacific Place in Hong Kong and Taikoo Hui Guangzhou.

The GPP Pilot Awards Ceremony 2022

In September 2022, the Company held the GPP Pilot Awards Ceremony, a celebration for our ground-breaking GPP pilot tenants. We shared GPP pilot results, presented awards and held an experience-sharing session about best practices with our pilot tenants. More than 30 guests from 10 participating tenant companies took part in the ceremony.
Of the 13 pilot tenants, eight amassed “green points” in the operations portion of the GPP for sharing SD data and reaching specified performance goals. They were recognised with Platinum, Gold, Silver or Member awards. Five tenants also participated in the fit-out and renovation portion of the GPP, collecting “seed points” for adopting sustainability and wellness features. These tenants were recognised with “Three Seed”, “Two Seed” or “One Seed” ratings.
GPP tenant case studies
Fit-out
One of our tenants followed our "SD Fit-out Technical Guidelines" and achieved outstanding results for their office:
  • 52% of existing office furniture was reused
  • Increased 43% in pantry faucet water efficiency
  • Five types of recyclables were collected, including glass bottles and food waste
  • An overall reduction in electricity use intensity of 21% compared to the tenant’s previous premises
Operations
As part of the GPP, one tenant participated in Swire Properties Smart Metering Pilot Programme, monitoring energy use by time and by zone in their office premises. They discovered that almost half of their total electricity was consumed outside office hours. The tenant removed underused equipment, which led to a 9.3% reduction in electricity use in two communal areas between October 2021 and June 2022, and began exploring more efficient management of lighting and server equipment to further improve energy savings. This tenant also took part in Swire Properties’ 2021 Smart Waste Reduction Challenge, reducing total waste per employee by nearly 19% between July 2021 and January 2022.
Another tenant joined our free energy audit programme, aiming to improve energy performance in their offices, with the main focus being lighting, office appliances and heating, ventilation and air conditioning (“HVAC”) systems. The audit identified energy management opportunities of over 27,000 kWh that could be achieved through lighting retrofits, the use of daylight sensors and better overall equipment management.

The Green Kitchen Initiative 2.0

Launched in 2017, Swire Properties’ Green Kitchen Initiative is a platform that allows portfolio management teams and tenants to have sustainability conversations before fit-out and renovation projects commence, allowing both sides to collaborate on reducing energy and water usage and improving air quality and waste management – thus enhancing the sustainability performance of food and beverage outlets across our portfolios.
Given the Green Kitchen Initiatives' durable success and popularity, in 2022, we upgraded the scheme, rolling out the Green Kitchen Initiative 2.0. This introducing several prerequisites for receiving the Green Kitchen Award, such as incorporating LED lights, flow controllers and food waste recycling.
As of the end of 2022, 76 tenants across our Hong Kong and Chinese Mainland portfolios have received Green Kitchen Awards, with 24 being new to the programme in 2022. Six tenants received the Gold Three Leaf Award during the year - a special mention for the best performing tenants in the scheme.
Examples of initiatives introduced by these winning tenants include:
  • Putting in place demand-controlled or variable-speed exhaust systems to reduce kitchen exhaust fan energy use and associated cooling and heating costs.
  • Installing dishwashers, steamers and refrigerating appliances with a heat recovery function.
  • Selecting highly energy-efficient cooking equipment.
  • Setting up food waste recycling and recycling facilities for items like glass bottles, beverage cartons, coffee grounds and polyfoam boxes.
  • Adopting exhaust systems with high purification efficiency.
  • Introducing smart systems to streamline production processes to prevent or even eliminate unnecessary waste.
An analysis of the key impacts of the Green Kitchen Initiative at our EAST Hong Kong hotel’s FEAST restaurant between the second halves of 2019 (before renovation) and 2021 reveals a strong positive impact, including:
  • 6% reduction in electricity usage (excluding air conditioning)
  • 31% reduction in town gas usage
  • 19% reduction in water consumption

The Loop and Urban Farm Programmes

Launched in 2017, The Loop is our SD exhibition centre in Devon House at Taikoo Place. The Loop features a recycling centre, food waste composter, “eco-art” installation and other exhibitions. The 4,000 sq ft space encourages tenants and the wider community to “close the loop” by incorporating sustainable practices into their business operations and daily lives.
In July, INDIGO in Beijing also unveiled The Loop – a multipurpose space to engage employees, tenants and business partners on SD initiatives.
There has also been a renewed focus on urban farming during the COVID-19 pandemic. In 2021, we extended The Loop’s urban farming and community engagement concept to other properties across Hong Kong in partnership with Rooftop Republic, a social enterprise focused on urban farming.
This year, One Pacific Place became the fifth space under our "The Loop" concept, providing over 1,600 sq ft of urban farm area.
In 2022, our 5 urban farms in Hong Kong:
Produced 0
varieties of crops
Harvested ~ 0kg
of crops
Donated ~ 0kg
to Feeding Hong Kong
Engaged > 0
participants

The Loop at Citygate

Launched in June 2021, The Loop at Citygate has created the opportunity for all 19 One Citygate office tenants to experience farming in an urban context. During the four farming seasons in 2022, office tenants cultivated a dozen types of herbs and vegetables, enjoying their harvest when the crops were ready. This urban farm employs strict organic farming practices without using any industrial or conventional chemical fertilisers or pesticides.
The Loop at Citygate has rejuvenated the rooftop area, become a relaxing place where the participants can get close to nature, and supported local arts and culture through the commission of a farm-themed mural on the rooftop. Overall, the farm is another example of Swire Properties’ community-building efforts and our work to improve the wellbeing of our employees and our office tenants.

The Loop at One Island East, Taikoo Place

The One Island East rooftop farm is located 300 metres above ground. Originally a space dedicated to building maintenance, since 2021, over 300 sq ft of the rooftop has been turned into an urban farm with 50 planters for seasonal greens and herbs. A food digester machine and composting tumblers have also been set up to convert office tenants’ food waste into compost to fertilise the farm.

The Loop at One Pacific Place

In November 2022, Swire Properties launched The Loop at One Pacific Place in partnership with the building’s anchor tenant. This newest Loop will grow 28 types of crops throughout the year and will also repurpose food waste collected from the tenant’s offices into compost for the farm, demonstrating the power of cross-industry efforts and landlord-tenant collaboration in driving sustainability in the workplace.

The Loop at South Island Place

Launched in 2021, this sky farm runs a regular Farm Club which engages 66 office workers in urban farming programmes and events, and harvesting almost 26kg of produce by the end of September 2022, 21kg of which was donated to a local food charity.

Energy Audits

In 2022, we continued our long-running initiative of conducting free energy audits for our tenants to help them identify energy-saving opportunities.

Free energy audits given to commercial tenants (since 2008)

Hong Kong
The Chinese Mainland
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Tenanted area
Hong Kong
3.6 million sq ft
Chinese Mainland
2.5 million sq ft
Hong Kong
3.6 million sq ft
Chinese Mainland
2.5 million sq ft
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Potential annual energy savings identified
Hong Kong
3.3 million kWh
Chinese Mainland
6.6 million kWh
Hong Kong
3.3 million kWh
Chinese Mainland
6.6 million kWh

Hong Kong Green Shop Alliance

Swire Properties was the first real estate developer to support the Hong Kong Green Shop Alliance (“HKGSA”), established by the Construction Industry Council and the Hong Kong Green Building Council in 2016 to promote sustainability initiatives in the retail industry through landlord-tenant collaboration. This year, our leadership in this field was again recognised as we won several major accolades at the 2022 HKGSA Awards:
Special Citation on Carbon Neutrality:
  • Given to Swire Properties for our 1.5°C-aligned science-based targets, our strong commitment to achieving net-zero before 2050 and our continued implementation of decarbonisation strategies covering Scopes 1, 2 and 3 at both corporate level and at our shopping malls.
Best Green Practice in Malls category:
  • Citygate Outlets – Bronze Award, given for our innovative energy-saving solutions and facilities, and initiatives that help tenants save energy and reduce waste.
Best Collaborative Effort of Malls and Shops category:
  • Cityplaza – Best Tenant Partner Award, given in recognition of our engagement initiatives and resource sharing that have helped tenants save energy and reduce waste and promote sustainable development to their sublet tenants.
Excellent Green Product Advocator Award:
  • Citygate Outlets
  • Cityplaza