Settled! Far East Horizon Released Its “Carbon Peaking and Carbon Neutrality” Goal—Striving to Realize Whole-Value-Chain Carbon Neutrality by 2050
On December 14, 2022, in response to the Paris Agreement and Hong Kong’s “carbon neutrality” goal, Far East Horizon’s Board of Directors examined and passed a bill named “Company Carbon Goal Planning” as the Company strives to achieve carbon peaking by 2025 and realize whole-value-chain carbon neutrality by 2050. Through methods including vigorously promoting green and sustainable financial business, the Company will promote carbon reduction at operation and value chain levels, meanwhile pushing on carbon reduction in operation via equipment transformation and upgrading, green power purchase or development, carbon sink and low-carbon asset purchase, etc. In addition, Far East Horizon will carry on research on refining the low carbon transformation action plan to accumulate strategic reserve for implementing its “carbon peaking and carbon neutrality” goal.
Practically formulating“carbon peaking and carbon neutrality”Goal Planning
According to the Paris Agreement, the long-term goal of carbon emission reduction is to limit global temperature rises to no more than 2℃, and strive to further limit temperature rises to within 1.5℃. It is estimated that the world will achieve carbon peaking by 2023 and carbon neutrality from 2050-2070. Former Chief Executive of the Hong Kong Administrative Region Carrie Cheng announced that Hong Kong will endeavor to realize carbon neutrality by 2050.
Guided by Hong Kong’s carbon neutrality goal, Far East Horizon makes great efforts to practice its ESG development strategy, adheres to the environmental responsibility philosophy of “developing green finance, practicing green operation and coping with climate change,” actively deepens its ESG practice with focus on the harmonious unity of operation and environmental protection, takes proactive actions in the aspects of opposing waste, improving resource and energy use efficiency and reducing waste emission, and contributes to the realization of Hong Kong’s “carbon neutrality” goal.
Starting from 2016, Far East Horizon has been issuing ESG reports on a yearly basis to disclose environmental data including total greenhouse gas emissions. Since 2019, in accordance with the proposal of the Task Force on Climate-Related Financial Disclosure (TCFD) of the Financial Stability Board (FSB), the Company has been disclosing its climate change management progress in its annual ESG reports as well as perfecting its management system based on identified climate-related risks and opportunities, so as to reduce the carbon footprints of its operating activities to the greatest extent. In 2021, Far East Horizon determined its accounting boundary with the operational control method, carried out carbon accounting with statements consolidated company-wide, and established a carbon emission management mechanism for regular monitoring, statistics, analysis and disclosure of performance related to carbon emission.
In 2022, through joint efforts with professional third-party consultant agents and in accordance with national and regional policies, Far East Horizon formulated its “carbon peaking and carbon neutrality” goal and roadmap with reference to the requirements of the Science Based Targets initiative (SBTi) on the basis of its own positioning and strategy. With 2021 as the base year, the Company promises that it will strive to achieve carbon peaking by 2025 and carbon neutrality by 2050, with the scope of organization covering Far East Horizon’s financial sector and industry sector.
Besides, the Company has established short-term and mid-term goals by steps and stages, including: with 2021 as the base year, realizing carbon neutrality (Scope 1 + Scope 2) of the financial sector at the operation level by 2030; from 2021-2025, reducing the greenhouse gas emission intensity per unit revenue by 2% each year; from 2025-2030, reducing the greenhouse gas emission intensity per unit revenue by 4% each year.
Actively promoting “carbon peaking and carbon neutrality”goal achievement
In August 2021, Far East Horizon officially launched an Environmental, Social and Governance Committee (the ESG Committee) under the Board of Directors, which is responsible for identifying ESG risks and opportunities including climate change factors and evaluating the impact of climate change risks and opportunities on the Company, which lays a good governance foundation for the implementation of the Company’s “carbon peaking and carbon neutrality” goal.
Surrounding its “carbon peaking and carbon neutrality” goal, Far East Horizon has planned its goal implementation path, and calculated the carbon neutrality cost of different implementation paths, so as to make sure that its “carbon peaking and carbon neutrality” goal is scientific, reasonable and feasible. The Company will carry out energy conservation and emission reduction, equipment transformation and upgrading, green power purchase or development and carbon sink and low-carbon asset purchase by perfecting the greenhouse gas accounting and certification system, and further develop business related to clean energy; meanwhile, it will vigorously develop green and sustainable leasing and green investment and financing business, issue green bonds, funds and so on, promote carbon reduction at the operation level by furthering carbon reduction in operation and value chain, and carry on research on refining the low carbon transformation action plan, to accumulate strategic reserve for implementing the Company’s “carbon peaking and carbon neutrality” goal.
Far East Horizon will actively promote green and low-carbon transformation at operation and business levels, and contribute to the realization and implementation of its “carbon peaking and carbon neutrality” goal with practical actions.
Construction and use of green buildings. The idea of going green and energy conservation runs throughout the design, construction and operation of Far East Horizon Plaza, including aspects such as energy conservation and energy utilization, water conservation and water resource utilization, and material saving and utilization. The Company has won the Gold Award for Leadership in Energy and Environmental Design (LEED), certificate of two-star green building, etc.
Guiding green operation with green building. In terms of power utilization, Far East Horizon Plaza adopts intelligent elevator and intelligent lighting control system to economize on electricity; in the utilization of water resources, it sets up a rainwater collection tank to utilize recycled water; in terms of saving paper, it advocates teleworking and less printing; as for garbage classification, it actively carries out campaigns, standardizes classification, and has garbage collected regularly.
Appealing to the staff to practice green office. The implementation task force of Far East Horizon’s ESG Committee has come up with the “green office & low-carbon life” initiative to improve staff’s awareness of low carbon and energy conservation in all aspects, such as saving paper, low-carbon transportation, saving water and electricity, banning plastic, advocating “clean plate” and garbage classification.
Firmly practicing green finance. By issuing sustainable development bonds, promoting the “green ABS” plan, signing the green club loan agreement, investing in PPP projects supporting energy conservation and emission reduction and so on, Far East Horizon provides financial support for the green transformation and development of the society, and contributes its strength to the construction of ecological civilization and an environment-friendly society.
Further advancing green construction. Horizon Construction Development, which is owned by Far East Horizon, makes active efforts to practice the idea of sustainable development throughout investment, construction, production and operation. Before investing in new bases and production lines, it fully evaluates the potential environmental risks of projects, and formulates contingency plans for environmental protection management to cope with potential environmental issues; during equipment procurement, it gives preference to electrical equipment, energy-efficient equipment and equipment meeting environmentally-friendly emission standard, to satisfy the diversified needs of clients in low-carbon and green construction; while providing construction services, it makes active efforts to develop and promote environmentally friendly revolving materials to replace conventional reinforced concrete, which not only creates greater space for foundation pit construction and reduces the construction period, but also helps to achieve the higher goals of environmental protection, energy conservation and emission reduction through the recycling of support structure.
△Horizon Construction Development’s certain project in Kunming HC combination steel support application
Actively practicing green healthcare. Far East Horizon’s Horizon Healthcare implements the environmental impact assessment requirements for new, reconstruction and expansion projects in environmental management, purchases, operates and maintains environmental protection equipment in a timely manner, monitors hospitals run by Horizon Healthcare regularly to ensure that their pollutant emission is up to standard, carries out strict management of the collection, transfer and disposal of medical wastes, promotes the use of LED energy-saving lamps and water-saving faucets within the hospitals, continues to concentrate its efforts on environmental compliance, pollutant control, conservation of energy and resources and reduction of greenhouse gas emission, and practices low-carbon and environmentally friendly development.
Promoting green campus construction. Far East Horizon’s Horizon Education reduces unnecessary consumption of energy and resources in the process of operation through standardized management of campus facilities and energy-saving transformation of equipment. While energetically creating a green and safe campus environment, the schools are also active in integrating the ideas of going green, low carbon and saving resources into educational philosophy and practice guideline, and guiding students to continuously perfect and improve the environmental protection awareness of citizens through various ways including curriculum knowledge, inquiry learning and practical topics.
In the future, Far East Horizon will continue to deepen its practice of the ESG development strategy, extend the Company’s carbon neutrality planning objectives from its own operation towards the entire value chain including the investment and financing business and the industry business, and strive to realize carbon neutrality in an all-round way as soon as possible.