Hong Kong's Data-Driven Approach to Environmental Sustainability

More companies are reporting on ESG data than ever before, with mandatory disclosure in many countries. These reports provide valuable insight to investors and consumers, as well as help businesses develop and implement sustainable practices.

But data-driven sustainability is about more than tracking and reporting. It's about driving real improvement across the business.

Creating a more sustainable Hong Kong

Amid the global climate change crisis, it's good to know that some individuals and companies in Hong Kong are embracing eco-forward initiatives. Whether it's by investing in energy-efficient technology or ensuring their offices meet green standards, they're helping to make this city a greener place.

Hills (2002) discussed the recent evolution of environmental policy in Hong Kong and the emergence of a regional environmental management agenda. This framework is based on 10 priority areas that represent a wide range of community concerns about economic growth, social progress and environmental protection.

One easy way to reduce your carbon footprint is by taking the tram (aka 'ding ding') rather than driving or using public transport. You can also try to eat less meat, which produces higher carbon emissions per kilogram, or buy food from local farmers. Other ways to go green include reducing your water consumption or recycling. Rosewood Hotel Group, for instance, is planting creeping plants on the sides and rooftops of its hotels in Asia to reduce energy use, which in turn cuts greenhouse gas emission.

Creating a more sustainable workforce

Several industries in Hong Kong are already developing and applying innovative new technologies to improve energy efficiency. However, for sustainability to become one of the main metrics for business success in Hong Kong, stronger Data Hongkong systems must be developed to provide greater analytic rigor and allow for the broader scope of economic activities that can be analysed.

As a service-based city without energy-intensive manufacturing, the primary sources of greenhouse gas emissions in Hong Kong, China are electricity generation, transport and waste disposal. The electricity-generating sector has been encouraging its staff to switch from coal to natural gas and to use electric vehicles.

Many local businesses plan to set targets or policies for their staff to put sustainability into practice, including pro-bono work and a move towards remote working arrangements post-pandemic. Moreover, employees are increasingly prioritizing sustainability at work. A survey by Adobe found that almost half of respondents in Hong Kong would only work at a company that prioritizes ESG.

Creating a more sustainable city

Hong Kong has many of the right pieces in place for being a sustainability success story: an engaged citizenry, financial success and population density to create economies of scale. The city also has one of the world’s best public transit systems, which is designed to be integrated with urban development and commuting patterns. This approach is reflected in a large proportion of High-density Multiple-Intensive Land Use (HIMU) developments built above and connected to rail lines.

These buildings are required to meet a set of strict green building standards, and can earn money from the government by selling Renewable Energy Certificates to the power companies through the Feed-in Tariff (FiT) scheme. This helps businesses lower their carbon footprint and demonstrate their commitment to sustainability.

To further enhance Hong Kong’s sustainability performance, a holistic strategy is needed, with clear and effective measures that are both achievable and measurable. A meaningful stakeholder engagement will help to identify areas to be improved and to create a roadmap for implementation.

Creating a more sustainable economy

Achieving sustainable development requires a new mindset to balance economic growth with conservation of the environment. It also needs a new level of partnership between business, the government, and the community. New World Development, for example, has forged a path as the first corporate to issue a social and green bond in Hong Kong.

A multi-stakeholder engagement process has been carried out to identify and prioritize local community's concerns about sustainable development in Hong Kong. The result shows that the Education System, Environmental Protection, and Health and Hygiene ranked the top three most important issues contributing to sustainable Hong Kong.

However, civil liberties and human rights, integration with the Mainland, and Population Policy have consistently ranked low. This suggests that the Government needs to focus more on these issues, and engage with stakeholders proactively. It may also need to step up the pace of setting ambitious targets for air quality. Such engagement will create public awareness and drive a greater change in sustainability.