Scope 1 and 2 Emissions
2022 progress against SBT Scope 1 and 2 targets for 2025 and 2030
Attributing factors to year-on-year changes in Scope 1 and 2 carbon emissions
 Carbon emission reduction associated with the effects brought about by COVID-19 lock-down in certain operating regions
In 2022, Swire Properties achieved a 28% absolute carbon reduction compared to the 2019 baseline for our global portfolio. Throughout the year, we continued to adopt innovative low-carbon technologies and management practices and invest in energy efficiency research and development. A lowered energy demand was also observed at some of our portfolios due to impacts by COVID-19.
On top of our continuous rollout of energy saving strategies across our portfolios, Swire Properties developed an AI model, in partnership with a digital automation and energy management company, to predict the cooling demand of our commercial building further driving down our energy demand through operation optimisation.
We continued to explore opportunities to increase our on-site renewable energy generation across our portfolio and source for off-site renewable electricity, where feasible. This year, we completed the installation of PV panel systems at Devon House and Dorset House at Taikoo Place. Taikoo Hui Guangzhou and Sino-Ocean Taikoo Li Chengdu are powered by 100% off-site renewable electricity, achieving net-zero carbon in its annual electricity consumption for both landlord and tenant operations. In 2022, Taikoo Li Sanlitun became our third portfolio in the Chinese Mainland to enter into an off-site renewable electricity purchase agreement.
Scope 3 Emissions – Downstream Leased Assets
2022 progress against SBT Scope 3 – Downstream Leased Assets target for 2030
A 40% reduction against the 2018 baseline was recorded in 2022. This continual downward trend is attributed to:
- Tenant operations in Taikoo Hui Guangzhou and Sino-Ocean Taikoo Li Chengdu becoming powered by 100% renewable electricity in 2021 and 2020 respectively
- Improvements in tenants’ energy use intensity
- Remote working arrangements for some tenants’ employees due to the COVID-19
- Grid emission factor improvement
This year, we continued to work closely with commercial tenants to reduce their carbon footprint through a variety of tenant engagement activities, including:
- The Green Performance Pledge, a performance-based agreement that acts as a blueprint for our landlord-tenant partnerships.
- The Green Kitchen Initiative, a platform that allows our portfolio management teams and our F&B tenants to collaborate on sustainability-enhancing measures before fit-out and renovation projects.
- Energy audits that help tenants identify energy-saving opportunities – these have been ongoing since 2008.
Scope 3 Emissions – Capital Goods
2022 progress against SBT Scope 3 - Capital Goods target for 2030
To reduce embodied carbon emissions throughout the lifecycle of our developments, we have established performance-based targets on embodied carbon for concrete, rebar and structural steel for future projects in Hong Kong. These targets were informed by comprehensive market research and communications with industry associations such as the Construction Industry Council.
Since 2020, we have included low-carbon procurement specifications – developed in accordance with international standards such as ISO 14067 – for construction materials such as concrete with pulverised fuel ash (“PFA”) or ground granulated blast furnace slag (“GGBS”), rebar and structural steel with recycled content.
2022 marks the completion of Two Taikoo Place, our latest redevelopment project in Taikoo Place. Throughout the construction process, we continued to work closely with our contractors and suppliers to procure low-carbon building materials and foster better energy management at our construction sites.
In 2022, we completed a cradle-to-site carbon footprint calculation for Two Taikoo Place, showing that the upfront embodied carbon emissions of Two Taikoo Place were 76,783 tonnes of CO2e and 643.2 kg of CO2e per square metre construction floor area. A 17% decrease in carbon intensity is achieved compared to our 2016-2018 baseline year. This was attributed by:
- Procurement of nearly one hundred percent of low-carbon concrete that had CIC Green Product Certification (Platinum rating)
- Adoption of structural steel and rebar with high recycled content and manufactured by the electric arc furnace process
- During construction, usage of a battery storage system to replace two traditional diesel generators used to power the two tower cranes – this avoided on-site air pollution and achieved lower carbon emissions
For further information on our whole-lifecycle carbon management approach at Two Taikoo Place, please click here.
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