Swire Properties was the first real estate developer in Hong Kong and the Chinese Mainland to join the Business Ambition for 1.5°C campaign, led by the Science Based Targets initiative in partnership with the United Nations Global Compact. We have put in place approved 1.5°C-aligned science-based targets to support the delivery of net-zero emissions before 2050.
In 2022, our Scope 1 and Scope 2 emissions accounted for 28% of our total carbon emissions. We developed a carbon management hierarchy to prioritise our actions. Our core focus is on reducing demand for energy and resources in both the landlord and tenant areas, then improving the efficiency of our energy and material consumption before switching to low-carbon energy sources – this prioritisation will help maximise our carbon abatement in the most cost-effective manner.
72% of our 2022 emissions came from Scope 3 activities along our value chain. While working to decarbonise our operations, we recognise that we also have an important role to play in facilitating emissions reductions along our value chain through collaborations with our partners.
Swire Properties Net-zero Roadmap
Remarks:
[1] Graph shown is for illustration purpose only. Information presented are not drawn to scale.
[2] The Business As Usual (“BAU”) scenario takes into account the Company’s HKD100 billion investment plan. Projected changes in carbon emissions (under BAU scenario) primarily reflect the addition and removal of buildings from our portfolio. The performance of our 2019 baseline is based on our already well-established energy management programmes (including control optimisation, retro-commissioning, equipment replacement, and innovative technologies). BAU scenario assumes no additional energy saving measures are to be implemented across our portfolios and value chain and no further improvements from energy source decarbonisation after 2019.
Remarks:
[1] Graph shown is for illustration purpose only. Information presented are not drawn to scale.
[2] The Business As Usual (“BAU”) scenario takes into account the Company’s HKD100 billion investment plan. Projected changes in carbon emissions (under BAU scenario) primarily reflect the addition and removal of buildings from our portfolio. The performance of our 2019 baseline is based on our already well-established energy management programmes (including control optimisation, retro-commissioning, equipment replacement, and innovative technologies). BAU scenario assumes no additional energy saving measures are to be implemented across our portfolios and value chain and no further improvements from energy source decarbonisation after 2019.
Remarks:
[1] Graph shown is for illustration purpose only. Information presented are not drawn to scale.
[2] The Business As Usual (“BAU”) scenario takes into account the Company’s HKD100 billion investment plan. Projected changes in carbon emissions (under BAU scenario) primarily reflect the addition and removal of buildings from our portfolio. The performance of our 2019 baseline is based on our already well-established energy management programmes (including control optimisation, retro-commissioning, equipment replacement, and innovative technologies). BAU scenario assumes no additional energy saving measures are to be implemented across our portfolios and value chain and no further improvements from energy source decarbonisation after 2019.
Remarks:
[1] Graph shown is for illustration purpose only. Information presented are not drawn to scale.
[2] The Business As Usual (“BAU”) scenario takes into account the Company’s HKD100 billion investment plan. Projected changes in carbon emissions (under BAU scenario) primarily reflect the addition and removal of buildings from our portfolio. The performance of our 2019 baseline is based on our already well-established energy management programmes (including control optimisation, retro-commissioning, equipment replacement, and innovative technologies). BAU scenario assumes no additional energy saving measures are to be implemented across our portfolios and value chain and no further improvements from energy source decarbonisation after 2019.
Swire Properties began to set out a roadmap to guide our strategic investment and actions to support our net-zero commitments. This “Net-zero Roadmap” outlines the key areas where the Company will focus its efforts and resources across our global portfolio to deliver a near-term 1.5°C-aligned SBTs and transitioning to net-zero before 2050.
Reduction strategies to support the delivery of our 2025 and 2030 1.5°C-aligned near-term science-based targets (“SBTs”):
Scope 1 and 2 Emissions
Energy Efficiency
- Continue to invest in and develop certified green buildings with best-in-class energy efficiency and climate resilience, through the adoption of passive building designs and energy-efficient building systems.
- Perform retro-commissioning and technical upgrades across our portfolios in pursuit of ever-better energy performance such as electrically-commutated (“EC”) motor plug fan.
- Digitalisation of building operations via rollout of smart energy management platforms and digital twin systems.
- Extensive application of innovative low-carbon and energy-efficient technologies such as integrated direct current microgrid solutions.
- Increase the adoption of on-site renewable energy generation and off-site renewable electricity procurement.
- Maintain and improve our energy management plan in line with ISO 50001.
- Continue our collaboration with academic institutions such as Tsinghua University to explore further energy saving opportunities.
Scope 3 Emissions
New Development Projects (Scope 3 Emissions – Capital Goods)
- The adoption of low-carbon procurement specifications for major construction materials such as concrete, rebar and structural steel.
- Minimise use of materials through structural optimisation and low-carbon design
- Early electrification of construction sites and adopt more energy efficient construction methods, equipment and processes
- Expand our sustainable procurement efforts to cover more purchased goods and services
Tenant Engagement (Scope 3 Emissions – Downstream Leased Assets)
- Deepen collaboration with our tenants through tenant engagement programmes such as our bespoke Green Performance Pledge, Green Kitchen Initiative and free energy audits.
- Promote resource circularity through various tenant engagement initiatives such as the Smart Waste Reduction Programme and Smart Reusable Cup System.
Strategies to help realise our Net-zero commitment:
Scope 1 and 2 Emissions
Decarbonising our direct operation
- Adopting net-zero design in new buildings and major retrofits, and continuous digitalisation and electrification of existing buildings
- Scaling up the adoption of low-carbon and energy-efficient technologies through the support of green financing, Swire Pacific SD Fund and internal financing mechanism such as internal carbon pricing.
Energy source decarbonisation
- Continue to expand our capacity of on-site renewable energy generation and explore further opportunities of off-site renewable electricity procurement, where feasible.
- With China and Hong Kong committing to become carbon neutral by 2060 and 2050 respectively, our portfolio operating in these locations are expected to benefit from the continuous decarbonisation of the grid.
Scope 3 Emissions
- Expanding the adoption of low-carbon procurement specifications to a wider spectrum of construction and building materials, supplies and services.
- Ramping up our engagement programme and support to suppliers, tenants and other value chain partners to improve data and best practices sharing and to build up their climate resilience in the net-zero transition
- Deliver our zero waste to landfill commitment to support the transition to a circular economy and our pledge to reach a state of water neutrality by 2050.
Our 1.5°C-aligned near-term SBT and net-zero roadmap provides a clear steer for us in reaching
Net-zero emissions by 2050
We endeavour to reduce our emissions through the decarbonisation strategies but understand that residual emissions will remain. These emissions would be neutralised at the net-zero target year and thereafter to help us reach net-zero.
See More In