Jardine Matheson Holdings Limited
Climate Impact & Sustainability Data (2021, 2022, 2023)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
- Responsible Consumption
- Social Inclusion
- Colleagues Wellbeing
- Sustainable Governance
Environmental Achievements
- Diverted 92% of total recorded waste from disposal in landfills.
- Conserved 4 million kWh of energy (equivalent of 3,000 tCO2e of carbon emissions) through JEDI.
- Hongkong Land: 93% of total commercial floor area achieved green building certifications.
Social Achievements
- Jardine Foundation awarded US$4.5 million in scholarships in 2021.
- More than 13,700 beneficiaries supported by MINDSET in Hong Kong in 2021.
- Over 1,600 volunteer hours contributed during the first Group-wide Colleague Volunteering week.
Governance Achievements
- Simplified parent company structure into a single holding company.
- Updated Group Code of Conduct to reflect best practices and market trends.
- Launched Group’s Diversity & Inclusion strategy.
Climate Goals & Targets
- Transition towards net-zero greenhouse gas emissions.
- JC&C and Astra to grow non-coal revenues to 90% and 88%, respectively, by 2030.
- Hongkong Land to increase female representation in management positions by 50% by 2026.
- MOHG to eliminate 99% of single-use plastics by the end of 2022.
- Roll out Group-wide Colleague Volunteering Programme.
Environmental Challenges
- Phasing down coal in operating markets.
- Managing climate-related risks (physical and transition).
- Addressing rising inequality and mental health issues in Asia.
Mitigation Strategies
- Developing a decarbonisation strategy with a segmented approach.
- Conducting preliminary physical climate risk analysis and formulating a long-term decarbonisation strategy.
- Investing in renewable energy and related innovations; committing to no investments in new thermal or metallurgical coal mines and new thermal coal-fired power plants.
- Implementing Key2Wellness program for employee health and wellbeing; establishing MINDSET for mental health support.
Supply Chain Management
Responsible Procurement
- Responsible sourcing of seafood, coffee, tea, vanilla, cocoa, and eggs by MOHG.
- Collaboration with tenants to reduce single-use plastics by Hongkong Land.
Climate-Related Risks & Opportunities
Physical Risks
- Typhoons, rainfall flooding, extreme heat
Transition Risks
- Regulatory changes, market shifts towards sustainable practices
Opportunities
- Investments in renewable energy and climate-resilient technologies.
Reporting Standards
Frameworks Used: WEF Stakeholder Capitalism Metrics, GRI Universal Standards 2021, TCFD Recommendations
Certifications: ISO 14001 (several Astra BUs), ISO 50001 (several Astra BUs), BEAM Plus (Hongkong Land, Hactl)
Third-party Assurance: PricewaterhouseCoopers (limited assurance on selected metrics)
Sustainable Products & Innovation
- JEDI (AI-powered analytics platform for building energy optimization); BOB (craft beer from surplus bread).
Awards & Recognition
- Jardines recognised as a Caring Company; JLA won five industry awards for excellence in learning programmes.
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Responsible Consumption
- Social Inclusion
- Caring for Colleagues
- Governance for a Sustainable Future
Environmental Achievements
- Hongkong Land achieved an SBTi-validated 2030 target for a 46.2% absolute reduction in scope 1 and 2 GHG emissions and a 22% per m2 reduction in carbon intensity for scope 3 GHG emissions by 2030 from 2019 levels.
- Gammon and Hactl submitted commitment letters for near-term targets to SBTi.
- DFI committed to 1.5°C-aligned scope 1 & 2 targets for 2030 and 2050, reducing scope 1 and 2 emissions by 10% from 2021.
- Mandarin Oriental eliminated 99% of single-use plastic.
- Maxim's MX outlets achieved 100% elimination of single-use plastics for dine-in.
- 72% of the energy capacity of REE Corporation (JC&C strategic interest) was generated from renewables.
- Gammon tested a new technology to reduce the overall carbon footprint of concrete by 5%.
Social Achievements
- Jardine Foundation launched 2 new scholarship schemes.
- MINDSET HK celebrated its 20th anniversary and channelled HK$10m to support 23 NGOs and 71,128 beneficiaries.
- 33,000+ volunteer hours committed to the 3-pillar sustainability strategy.
- US$45m community investment across the Group.
- 84% internal fill rate for business leader positions.
- Initiatives to support youth with disabilities, ethnic minorities, and those with special education needs.
Governance Achievements
- Group-wide assessment of transition risks completed.
- Improved scores from S&P Global and Sustainalytics.
- Janine Feng joined the JMH Board, increasing gender diversity.
- Michael Wu and Janine Feng joined the JMH Audit Committee, increasing independence.
Climate Goals & Targets
- Net-zero emissions by 2050 (implied).
- Achieve 30% renewable energy by 2030 (implied)
- Divert 80% of waste by 2030 (DFI).
- Reduce 25% landfill/ incinerator waste intensity by 2025 (Gammon).
- Set decarbonisation targets with credible reduction pathways towards 2030.
- Explore circular solutions across the Group.
- Divert 50% of waste by 2025 (DFI).
Environmental Challenges
- Overall increase in greenhouse gas emissions and energy usage in 2022 compared to 2021 due to post-pandemic business recovery.
- Challenges in decarbonizing operations and setting medium-term targets considering business growth.
- Managing transition risks related to changing regulation, technology, and markets.
- Cybersecurity threats associated with increased reliance on digital systems.
Mitigation Strategies
- Developing decarbonisation pathways for operational emissions.
- Setting science-based targets aligned with climate science (SBTi).
- Investing in renewable energy, electric vehicle markets, transition minerals, and low-carbon materials.
- Conducting scenario analysis and climate risk assessments.
- Implementing robust risk management framework.
- Building a cybersecurity culture and strengthening controls.
Supply Chain Management
Supplier Audits: Ethical audits for own-brand suppliers in high-risk countries (DFI), Vendor-Scoring programme (Hongkong Land)
Responsible Procurement
- Code of Conduct
- Human Rights Policy
- Sustainable/ Responsible Procurement Policies (several businesses)
- Supplier Code of Conduct (several businesses)
- Certification requirements (FSC, PEFC, Rainforest Alliance)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme climate events
- Shifting weather patterns
Transition Risks
- Rising cost of energy
- Carbon pricing schemes
- Tightening climate-related regulations
Opportunities
- Development of energy-efficient products
- Investment in renewable energy
Reporting Standards
Frameworks Used: GRI Universal Standards, TCFD Recommendations, WEF Stakeholder Capitalism Metrics
Certifications: ISO 14001 (several businesses), ISO 45001 (several businesses), ISO 27001 (Maxim's Group and several Astra businesses)
Third-party Assurance: PricewaterhouseCoopers
UN Sustainable Development Goals
- Not disclosed
Sustainable Products & Innovation
- Water Loop refrigeration technology (DFI)
- Battery-powered crawler crane (Gammon)
- Biochar production (JEC)
- Sustainable materials for uniforms (Maxim's)
Awards & Recognition
- RICS Award 2022 for Corporate Social Responsibility Project of the year (Hongkong Land)
- Brandon Hall Award Gold medal for Best Advance in Leadership Development (JLA)
Reporting Period: 2023
Environmental Metrics
ESG Focus Areas
- Climate Action
- Responsible Consumption
- Social Inclusion
Environmental Achievements
- -18% GHG emissions from businesses under the Decarbonisation Pathway over the past 2 years
- 41% of Group total energy consumption in 2023 came from renewable sources
- 94% diverted waste across the Group
- -25% disposed waste from 2022
- -4% total waste generated from 2022
Social Achievements
- US$64m total community investment
- US$5m in 55+ Jardine Foundation scholarships awarded
- US$2m channelled towards mental health through MINDSET
- 95,000+ volunteer hours contributed
- 42.6% female representation for Executives and above (excluding Astra)
Governance Achievements
- Integration of sustainability considerations into financial planning and forecasting
- Sustainability updates provided twice a year to boards across the Group
- Development of guidance and frameworks to integrate sustainability due diligence and carbon costs into the capital allocation process
Climate Goals & Targets
- Net-zero GHG emissions by 2050
- All businesses to achieve 1.5°C-aligned scope 1 and 2 reduction targets by 2030 (Decarbonisation Pathway).
- UT aims for a 30% reduction in emissions by 2030 compared to the 2019 baseline (Transition Pathway).
- Continue reducing scope 1 and 2 emissions based on decarbonisation roadmaps.
- Better understanding of renewable energy use and cost impact.
- Collect data on Scope 3 emissions.
Environmental Challenges
- Decarbonisation may not be a straight line to net-zero emissions in 2050. Emissions may temporarily increase due to market conditions or business growth.
- New technology may not deliver expected emissions reductions or may do so on longer timelines than anticipated.
- The policy environment in our markets may not develop as quickly as hoped.
Mitigation Strategies
- All businesses have developed detailed roadmaps with a focus on interim milestones, identifying opportunities around lower carbon fuels, renewable energy and electrification.
- The Group will reconsider assumptions and adjust its approach as conditions change to ensure continued progress on decarbonisation.
- Integration of climate risks into enterprise risk management process to inform business strategy and decision-making processes.
Supply Chain Management
Supplier Audits: DFI audited 94% of its own brand production facilities located in high-risk areas in 2023.
Responsible Procurement
- Code of Conduct
- Human Rights Policy
- ESG criteria for evaluating new vendors (Gammon)
- Sustainable sourcing practices (Mandarin Oriental, Wellcome)
Climate-Related Risks & Opportunities
Physical Risks
- Extreme heat
- Sea level rise
Transition Risks
- Carbon price
- Energy price
- Policies and regulations
Opportunities
- Development of energy-efficient products
- Investment in renewable energy and transition mineral extraction
Reporting Standards
Frameworks Used: UN Sustainable Development Goals, GRI, TCFD, SASB, World Economic Forum Stakeholder Capitalism Metrics
Certifications: ISO 14001 (several businesses), ISO 45001 (several businesses)
Third-party Assurance: PricewaterhouseCoopers (limited assurance)
Sustainable Products & Innovation
- Innovative water loop refrigeration systems (DFI)
- Innovative paint technology to reduce energy consumption (Astra)
- Sustainable bento boxes (Wellcome)
Awards & Recognition
- Social Enterprise Supporter Plus Award 2023 (Jardine Matheson Limited)
- HKB National Business Awards 2023 for Energy (Maxim’s and Towngas)