Leading the way to a sustainable future and climate-resilient built environment
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The increasing focus on environmental, social and governance (ESG)-related initiatives, has become a growing trend among companies and investors. In Hong Kong, leading real estate developers are increasingly committed to strengthening their ESG best practices, especially in climate change mitigation and adaptation. This commitment is beyond compliance and driven by an aim to reduce one's environmental impact, demonstrate social responsibility, as well as meet the expectations of investors.
Sustainability disclosure standards continue to drive and sharpen the focus
According to the research report “Key sustainability trends that will drive decision-making in 2023” released by S&P Global Ratings, various new rules and disclosure standards in the world are under development with an aim to enhance transparency and consistency on sustainability-related issues, as well as mitigate the risk of misrepresentation, perceived as greenwashing, in financial markets. In 2023, it is believed that companies will have to prepare for reporting under a number of new and complex sustainability disclosure standards and adapt as they continue to evolve.
S&P Global has also released its Sustainability Yearbook 2023, recognising companies that demonstrate top sustainability practices within their industries based on the annual Corporate Sustainability Assessment (CSA), and showcase the best sustainable business practices and sustainability trends among the world’s leading companies. From 7,800 assessed companies across 61 industries worldwide, only 712 top performing companies made it into the 2023 edition, of which 13 are based in Hong Kong. Sino Land, a listed real estate developer that owns and manages a portfolio of residential and commercial properties across the city, has been included for the first time.
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Charting the pathway to net zero
Sino Land has signed up to the 'Business Ambition for 1.5°C' initiative put together by UN Global Compact and We Mean Business Coalition, and is also one of the pioneer property developers to support the Task Force on Climate-related Financial Disclosures (TCFD), according to Melanie Kwok, Assistant General Manager of Sustainability in Sino Group.
“In June 2022, we launched a ground-breaking blueprint to reduce our carbon footprint and reach net zero by 2050. The blueprint consists of tangible decarbonisation strategies and medium-term goals that can be met over time in three business areas, including property development, operations and collaboration,” she says.
Being one of the pioneer developers in Hong Kong, Sino Group has recently published its first-ever standalone ‘Climate Action Report’. To prepare for this report, the company joined hands with PwC Hong Kong to conduct an in-depth study of the group’s 170+ properties in the city, assessing their risks under different climate scenarios. The findings are presented based on the standards recommended by the TCFD. The outcomes of this study will be used to formulate short- and medium-term climate adaptation plans for individual properties to ensure they can withstand different climate conditions in the future.
Turn commitment into action
Back in 2010, Sino Group established a sustainability committee as part of the board, which was renamed in 2020 as ESG Steering Committee. Its role is to set out and monitor sustainability directions and policies, according to Vivian Lee, Group General Manager of Corporate Marketing, Communications and Sustainability at Sino. To do this, the group has set 38 specific goals in its Sustainability Vision 2030, including transitioning to a circular economy, preserving urban biodiversity, and reducing emissions. To date, Sino has managed to achieve some of its sustainability goals ahead of schedule.
“The group is committed to working with stakeholders, such as employees, tenants, customers, and business partners, to bring sustainability into the day-to-day life. As part of our stakeholder engagement efforts, we have established the ‘Sino Sustainability Academy’ to enable leaders and colleagues to keep up with sustainability practices effectively,” says Vivian. “By introducing recycling facilities, such as food waste recycling systems, and organic farms to customers, tenants and residents, we aim to raise awareness about eco-friendly lifestyles and the importance of protecting our environment.”
Meanwhile, the group has been upgrading shopping malls and office buildings to further improve energy performance and reduce waste. By collaborating with like-minded tenants, the group can extend their positive impact to the wider business community. They constantly explore innovative solutions by supporting start-ups and innovative solutions. As an example of their partnership with innovative start-ups, the group has recently partnered with EcoBricks to launch a solution that can manage seven different kinds of plastic waste and turn them into eco-friendly bricks.
Efforts translated into recognitions
Thanks to such efforts, Sino Group has become the first Hong Kong developer to be selected as one of the ‘Global 100 The World’s Most Sustainable Corporations’, ranking among the top 100 sustainable companies in the world. After assessing more than 14,000 large organisations globally, Sustainalytics has certified the group as a Regional Top-rated ESG Performer in Asia-Pacific. Not only that, but the group has also been progressively improving on the MSCI ESG Rating and received its first AA this year, demonstrating it leadership in managing the most significant ESG risks and opportunities.
“We believe that businesses play a key role in creating a more sustainable future and are committed to delivering shared value to all our stakeholders. These international recognitions are a testament to our sustained efforts in environmental stewardship and social responsibility, while motivating us to do more and better towards the best sustainable business practices among the world’s leading companies. We are also heartened that our like-minded partners and dedicated colleagues are passionate to join us on our sustainability journey,” says Daryl Ng, Deputy Chairman and Chairman of the ESG Steering Committee of Sino Group.