In 2024, Swire Properties achieved a 40% 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. This includes the rollout of innovative low-carbon technologies such as the Photovoltaic, Energy Storage, Direct Current, and Flexible (“PEDF”) power distribution system at Taikoo Li Sanlitun and Taikoo Hui Guangzhou continued retrofitting works such as chiller replacement and leveraging the Cloud-based Smart Energy Management Platform to generate energy management and energy-saving insights.

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. In 2024, we secured nearly 100% renewable electricity for both Taikoo Li Sanlitun and INDIGO. Meanwhile, Taikoo Hui Guangzhou and Taikoo Li Chengdu continued to secure 100% renewable electricity in achieving net-zero carbon in annual electricity consumption for both landlord and tenant operations. This brings our overall mix of renewable electricity in the Chinese Mainland portfolio to approximately 60%.

A 54% reduction against the 2018 baseline was recorded in 2024. This downward trend is mainly attributed to the expanded adoption of off-site renewable electricity procurement for our tenants at INDIGO and Taikoo Li Sanlitun, securing nearly 100% renewable electricity. This year, we continued to work closely with commercial tenants to reduce their carbon footprints through a variety of tenant engagement activities, including:

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 and the Chinese Mainland. 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.

2024 marks the completion of Six Pacific Place, our latest redevelopment project in Hong Kong. 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 2024, with the support of HKUST, we completed embodied carbon calculation for Six Pacific Place, showing that the upfront embodied carbon emissions of Six Pacific Place were 19,601 tonnes of CO₂e and 637 kg of CO₂e per square metre construction floor area. A 18% decrease in carbon intensity is achieved compared to our 2016-2018 baseline year. This was attributed by:

Our SBTs serve as a roadmap for our journey towards reducing greenhouse gas emissions and mitigating climate change. As we continue to make steady progress towards our 1.5°C-aligned targets, we are solidifying our dedication to sustainability. We are actively working towards having our net zero commitment validated by the SBTi. This verification will provide third-party validation of our efforts and ensure that our commitments align with the most rigorous scientific standards.

Under the SBTi criteria, companies shall review all active targets, at a minimum, every five years to ensure consistency with the latest SBTi criteria. Swire Properties will explore renewing the targets under the Buildings Sector Science-Based Target-Setting Criteria in its next review exercise.

For more information on Swire Properties’ decarbonisation strategy, please refer to our Net-zero Roadmap.

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.

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.

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 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”):

Energy Efficiency

New Development Projects (Scope 3 Emissions – Capital Goods)

Tenant Engagement (Scope 3 Emissions – Downstream Leased Assets)

Strategies to help realise our Net-zero commitment:

Decarbonising our direct operation

Energy source decarbonisation

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 these decarbonisation strategies but understand that residual emissions will remain. These emissions will be neutralised by the net-zero target year and thereafter, helping us to reach net-zero.