Hang Lung Properties’ Net-Zero Targets Approved by Science Based Targets initiative
Hang Lung Properties is delighted to announce that the Company is the first real estate company in Hong Kong and mainland China to receive approval from the Science Based Target initiative for its near- and long-term company-wide emissions reduction targets in line with the SBTi Net-Zero Standard.
Launched in October 2021, the Net-Zero Standard is the world’s first framework for corporate net-zero target setting in line with climate science. It includes the guidance, criteria, and recommendations companies need to set science-based net-zero targets consistent with limiting global temperature rise to 1.5°C. Companies adopting the Net-Zero Standard are required to set both near-term and long-term science-based targets. By 2050, organizations must produce close to zero emissions and neutralize any residual emissions. Companies that commit to setting targets through the Net-Zero Standard are also joining the Business Ambition for 1.5°C campaign (a global coalition) and the United Nations-led Race To Zero campaign.
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With climate resilience as one of its sustainability priorities, Hang Lung is committed to reducing its carbon footprint in line with climate science and reaching net-zero value chain greenhouse gas (GHG) emissions no later than 2050. The Company made a public announcement of its commitment to setting company-wide emissions reduction targets in line with the Net-Zero Standard in January 2022. Following a rigorous review process, in December 2022, the SBTi approved the Company’s net-zero targets (both near- and long-term targets), as detailed below:
|Scope 1 & 2 GHG Emissions||Scope 3 GHG Emissions|
|Overall Net-Zero Target||Commits to reaching net-zero GHG emissions across the value chain by 2050|
|Near-Term Targets||Commits to reducing absolute GHG emissions by 46.6% by 2030 from a 2019 base year||Commits to reducing absolute GHG emissions from purchased goods and services and downstream leased assets by 25% by 2030 from a 2020 base year|
|Long-Term Targets||Commits to reducing absolute GHG emissions by 99.6% by 2050 from a 2019 base year||Commits to reducing absolute GHG emissions by 99.6% by 2050 from a 2020 base year|
Mr. Adriel Chan, Hang Lung Properties Vice Chair and Chair of Sustainability Steering Committee, said: “Our world is already in the midst of a climate crisis, and we all need to act decisively to reduce emissions. At Hang Lung, we are determined to decarbonize our business. The validation of our carbon emissions reduction targets in line with SBTi’s Net Zero Standard underscores our commitment to climate action.”
Hang Lung is taking comprehensive steps in support of its ambitious targets. In 2021 the Company reduced its Scope 1 and 2 GHG emissions intensity by 28.9% compared to its 2018 baseline. For Scope 3 emissions, it is one of the first developers in Asia to set a 2025 embodied carbon intensity target, and it has launched a first-of-its-kind sustainability partnership with a key tenant, LVMH Group, to co-create climate and sustainability solutions. Lastly, renewable energy will provide almost 25% of its landlord electricity (Scope 2 emissions) in its mainland China portfolio in 2023.