Reflecting our commitment to our ethos “Build to Own and Build to Last”, we continue to incorporate environmental considerations into the design and operations of our buildings in Hong Kong and mainland China. Our commitment was put into concrete actions in various aspects.
Energy Consumption Management
In 2015, we achieved a 18% reduction in electricity intensity as compared to our 2010 baseline, greatly exceeding the target we have set to reduce electricity intensity by 10% by 2015. After careful consideration by our management team, we set a new target of further reducing our electricity intensity by 12% by 2020 with 2015 as our baseline year. Energy efficiency enhancement measures implemented in 2015 include:
- Lifts replacement was completed at Hang Lung Centre. It is estimated that 100,000 kWh of the building’s electricity consumption would be saved annually.
- The fan coil system were replaced and optimized at Grand Gateway 66, resulting in an estimated energy saving of 352,809 kWh annually.
- A series of energy reduction measures were implemented across all properties in Mainland China, such as switching off lifts and escalators during non-peak hours and adjusting air-conditioning systems automatically according to indoor foot traffic.
We recognize the concerns of our stakeholders over the energy intensity of our older buildings in Hong Kong as compared to our new buildings in mainland China. This is due to the challenge in driving continuous improvement within the limits of the existing hardware and the fact that buildings are in full operation, making major refurbishment disruptive both to our business and to the business of our tenants. Since 2006, we have improved the energy efficiency of our buildings primarily through the replacement of chillers. In the past nine years, 13 of our buildings have replaced their chillers resulting in a total of 71,511,891 kWh of electricity or HK$90.8 million saved. There are six buildings still using conventional air-cooled chillers. Two of them, at Hanford Commercial Centre and Hollywood Plaza, would be replaced with water-cooled chillers in 2017 and 2018. For the remaining four, we will continue to monitor the energy efficiency and carry out replacement in due course.
To further enhance the sustainability performance of our buildings, we initiated an eight-year asset enhancement plan in 2012 for the renovation of more than five million square feet in our retail portfolio. To develop the plan, technical building assessments were conducted to assess our portfolio and to identify opportunities to enhance operational performance including energy and water efficiency. To identify more opportunities to improve our overall energy efficiency, we continue to conduct energy audits in selected buildings in Hong Kong. By the end of 2015, we already completed energy audits for 21 buildings in Hong Kong.
Carbon Emissions Management
We aim to minimize the carbon footprint of our buildings to fulfill our responsibility in climate change mitigation. In 2014, the Group reported a carbon footprint of 153,387 tons of CO2e with our main source of emissions being electricity consumption. An independent consultancy was appointed to verify the Group’s carbon footprint data of 28 buildings in Hong Kong and 5 buildings in mainland China on an annual basis. The Group is one of the 64 listed companies disclosing carbon data through The Carbon Footprint Repository for Listed Companies in Hong Kong, which was launched by the Environment Bureau and Hong Kong Exchanges and Clearing Limited in 2014.
Diverting waste from landfill is high on the agenda particularly for Hong Kong where waste disposal facilities will fast reach its full capacity. As a real estate developer, our approach to waste management covers two main sources of waste: construction waste produced during the development or renovation of our buildings and municipal waste produced during the operation of our buildings by various users and occupants. For our projects in mainland China, we have Waste Management Plan in place to ensure that construction waste generated on site is handled effectively to minimize waste sent to landfill. In our managed properties, we focus our efforts on supporting our tenants and customers to manage their waste, as this is an area the Hong Kong government and the community at large has expressed concerns in recent years. In 2015, we continued to recycle waste at our properties and joined a number of waste reduction schemes, including:
- Recycled over 1,000 tonnes of waste, including paper, metal, plastics, glass, food waste, fluorescent light bulbs/ tubes and grease waste.
- Achieved noticeable reduction of waste at Amoy Gardens in the Municipal Solid Waste Charging Pilot Scheme launched by Environmental Protection Department (EPD) in Hong Kong.
- Engaged tenants of Kornhill Plaza to join the Food Waste Recycling Partnership Scheme co-organized by the EPD and Green Council in Hong Kong. Through this scheme, Kornhill Plaza provides recycling bins to tenants to collect food waste.
Water Consumption Management
Whilst the Group does not operate in any water scarce region, water scarcity is a global issue that we must work together to address. This includes installing water efficient equipment in our buildings to reduce reliance and consumption, and creating greater awareness of water scarcity among employees, tenants, customers, and the wider community. Actions implemented include:
- In Standard Chartered Bank Building, the Water Conservation Plan was executed to monitor and report on inefficient water use and introduced improvement methods to identify water efficiency gaps.
- At the Peak Galleria, rainwater is collected for flushing toilets and landscaping, sensor-type water faucets were replaced and, water saving signs are displayed to raise awareness of tenants and consumers. Besides, water meter, water system and water faucet checks are conducted daily to ensure their optimal performance.
- Replacement of the sensor water faucets in 15 buildings in Hong Kong including Hollywood Plaza, Fashion Walk and Kornhill Plaza.