2024 has already made headlines as the hottest year recorded on Earth. From devastating wildfires in California to shifting weather patterns, climate change is affecting our planet dramatically. It’s not just nature that suffers; communities and economies are feeling the strain too.
Despite the urgency, some areas are rolling back their climate commitments. This was a key point discussed at the recent World Economic Forum in Davos. It’s clear that we all need to step up—businesses and communities alike—to tackle these challenges head-on.
In Hong Kong, companies play a crucial role in the fight against climate change. The city aims for carbon neutrality by 2050, and recent research by KPMG highlights the challenges companies face while striving for this goal. Hong Kong Exchanges and Clearing (HKEX) is committed to leading by example. We achieved carbon neutrality in 2023, marking a significant milestone in our journey towards sustainability.
We set our carbon neutrality target in November 2023, aiming for net zero by 2040—ten years earlier than we initially planned. This ambitious path has taught us valuable lessons that other organizations can learn from as they navigate their own transitions to greener practices.
Three Key Insights from Our Journey
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Know Your Supply Chain: Understanding how every item—from office furniture to cleaning supplies—impacts the environment is crucial when setting realistic emission targets.
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Clarify Your Objectives: While it’s important to set goals, they must be practical and adaptable. For instance, sourcing renewable energy for our offices required us to adjust our initial plans.
- Stay Agile: Flexibility is vital. In 2024, we purchased carbon credits from a nature-based project in China. Future investments may include innovative carbon capture technologies as they become available.
These insights highlight the importance of supporting each other as we pursue sustainability goals. Initiatives like Hong Kong’s Core Climate carbon market connect businesses with carbon credits, helping balance emissions where reduction isn’t feasible. As more companies engage with these platforms, the market is expanding, supported by local expertise and tools to track emissions.
Furthermore, there’s a broader movement in Hong Kong aimed at enhancing sustainability reporting. This roadmap could position the city as a leader in sustainable finance, a goal we at HKEX are eager to contribute to.
In today’s rapidly changing world, businesses are expected to take a proactive stance on climate action. Investors and customers are increasingly demanding that companies show accountability and drive the transition to net zero. The recent extreme weather events remind us that climate change is a pressing issue that won’t wait for anyone.
Refusing to act on climate change can have devastating consequences, already evident from the economic and human costs we’re witnessing. We have a chance to unite and address this challenge cohesively. Prioritizing sustainability is essential for the long-term well-being of our communities and economies.
Let’s commit to innovative solutions and collaborate across industries and regions. Together, we can build a sustainable future for generations to come. The time to act is now, and the world is watching as we take these vital steps.
For more insights on corporate sustainability efforts, you can check out the KPMG research or learn about Hong Kong’s carbon market through Core Climate.
Check out this related article: Is Brazil’s President Lula Ready to Tackle the Climate Crisis? A Deep Dive into His Environmental Strategies
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