Climate Change Data

CK Infrastructure Holdings Limited

Climate Impact & Sustainability Data (2019, 2020)

Reporting Period: 2019

Environmental Metrics

Scope 1 Emissions:3,209.65 tons of CO2 (Beijing-based institutions)
Scope 2 Emissions:46,868.36 tons of CO2 (Beijing-based institutions)
Total Energy Consumption:19,667,324 kWh (Head Office & Kindergarten)
Water Consumption:177,550 tons (Head Office & Kindergarten)

ESG Focus Areas

  • Green finance
  • Inclusive finance
  • Poverty alleviation
  • Environmental protection
  • Risk control
  • Talent development
  • Corporate governance

Environmental Achievements

  • Domestic green credit balance exceeded RMB 1.35 trillion (an increase of RMB 113.08 billion or 9.1% over the beginning of the year).
  • Reduced office paper consumption by nearly one million pieces.
  • Actively promoted green office, energy-saving technologies, and paperless meetings.

Social Achievements

  • Inclusive loan outstanding increased by 52%.
  • Loan outstanding for targeted poverty alleviation reached RMB 170.36 billion (an increase of 9.24%).
  • Donated RMB 206 million to public interest activities.
  • Established the Social Responsibility and Consumer Protection Committee under the Board of Directors.
  • Organized 43,800 training sessions with 5.31 million participants.

Governance Achievements

  • Established the Social Responsibility and Consumer Protection Committee under the Board of Directors.
  • Improved the working mechanisms and decision-making system of the Shareholders’ General Meeting, the Board of Directors, the Board of Supervisors, and the Senior Management.
  • Strengthened internal control and internal audit systems.
  • Enhanced overseas compliance management.

Climate Goals & Targets

Environmental Challenges

  • Complicated and ever-changing environments at home and abroad.
  • Financial regulatory changes and market environment challenges.
  • Maintaining a balance between business development and risk management.
Mitigation Strategies
  • Strengthened management capabilities.
  • Focused on serving the real economy and putting customers first.
  • Implemented risk management policies based on changing situations.
  • Improved risk management capabilities.
  • Established a global risk control system.

Supply Chain Management

Responsible Procurement
  • Require suppliers to conduct self-assessment of social responsibilities.
  • Require suppliers to provide environmental management system certificate, occupational health certificate, environmental labeled products certificate, energy saving certificate, social responsibility standard certificate and other social responsibility related qualification and certification information.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, Ten UNGC Principles, ISO 26000, SEHK’s Environmental, Social and Governance Reporting Guide

Third-party Assurance: KPMG Huazhen (Special General Partnership)

Awards & Recognition

  • World’s most valuable bank brand (4 years in a row)
  • Best Green Financial Bank of the Year
  • Best Green Financial Bank in Overseas Market Performance
  • Award of Effective Support for Winning the “Three Tough Battles” in 2018
  • Award of Effective Performer in the “Belt and Road” Initiative
  • Award of Best Contribution to Precision Poverty Alleviation
  • Most Responsible Enterprise of 2019
  • Best Bank of the Year in Eliminating Poverty
  • Excellent Companies on Corporate Social Responsibilities 2019
  • Excellent CSR Report
  • Award of Best Bank in Responsible Investment
  • Sustainable Development Award of the Year
  • Best Financial Anti-poverty Brand
  • 2019 Sustainability Benefit Award
  • 2019 Social Responsible Bank
  • Excellent Corporate Citizen 2019
  • China Four-star Corporate Citizen
  • Excellent Enterprise in Sustainable and Compliance Management
  • Best Listed Company Award
  • Hong Kong Corporate Governance Excellence Award
  • Golden Round Table Awards - Corporate Governance Medal
  • China Top 100 Award
  • Top 10 Private Enterprise Financial Service Innovation Award
  • 2019 Excellent Examples of Financial Service for Private Enterprises and Small and Medium Enterprises
  • Best Financial Innovation Award (4 consecutive years)
  • Top Ten FinTech Innovation Award
  • Top Ten Blockchain Application Innovation Award
  • Banking Technological Development Award of the PBC (7 achievements)
  • Best AI Initiative
  • Best Digital Transformation

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:9,923,680 tCO2e/year
Scope 1 Emissions:8,009,254 tCO2e/year
Scope 2 Emissions:1,914,426 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:31,416,990 kWh/year
Water Consumption:43,920,000 m3/year
Waste Generated:47,655 tons/year (hazardous)
Carbon Intensity:206 tCO2e/HKD million revenue

ESG Focus Areas

  • Combating Climate Change
  • Preserving Natural Environment
  • Human Capital Development
  • Occupational Health and Safety
  • Cybersecurity
  • Supply Chain Management
  • Community Engagement
  • Corporate Governance
  • Business Ethics

Environmental Achievements

  • Reduced carbon emissions from electricity generation by about 16% with the commissioning of L10 unit.
  • NGN reduced leakage by 14% during the regulatory period (April 2013 to March 2021), and WWU by 23.7% at March 2020.
  • EDL's global operations abated and avoided approximately 18.9 million tonnes of CO2 emissions.
  • AVR’s CO2 capture plant in Duiven captured 31 kilotonnes of CO2.

Social Achievements

  • UKPN ranked in the top 10 companies in terms of complaint handling in the 2020 UK Customer Satisfaction Index.
  • WWU provided additional assistance to vulnerable customers.
  • EDL donated AUD262,790 to support Australian bushfire relief efforts.
  • VPN offered financial support to Victorian households and small businesses impacted by COVID-19.

Governance Achievements

  • Established a board-level Sustainability Committee in December 2020.
  • Adopted sustainability-related policies including Environmental Policy, Supplier Code of Conduct, and Health and Safety Policy.

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • HK Electric: Reduce CO2e per electricity unit sold by 35.5% by 2023.
  • WWU: Reduce GHG emissions by 37.5% by 2035 compared to 2020 levels.
  • NGN: Achieve net zero operational Scope 1 and Scope 2 carbon emissions by 2031 (excluding gas shrinkage) and 2050 (including gas shrinkage).
Short-term Goals:
  • UKPN: Reduce water consumption at top six depots by 10-15% by 2021.
  • UKPN: Divert more than 90% of waste from landfills and recycle more than 80% by December 2021.

Environmental Challenges

  • Climate change risks (physical and transition risks)
  • Attracting and retaining talent
  • Supply chain disruptions due to COVID-19
  • Cybersecurity threats
  • Corruption and fraud risks
Mitigation Strategies
  • Implementing an Enterprise Risk Management framework
  • Investing in training and development programs
  • Developing alternative sourcing strategies
  • Implementing cybersecurity measures and employee training
  • Developing anti-corruption policies, whistleblower programs, and employee training

Supply Chain Management

Supplier Audits: Annual audits for AGN, DBP, Multinet Gas; Quarterly audits for DBP contractors; Regular audits for ista.

Responsible Procurement
  • Supplier Code of Conduct
  • ESG factors considered in supplier selection
  • Inclusion of clauses on NGERS, labour practices, and health and safety performance in contracts (AGN, DBP, Multinet Gas).

Climate-Related Risks & Opportunities

Physical Risks
  • Severe tropical cyclones
  • Flooding
  • Water stress
  • Drought
  • Wildfires
Transition Risks
  • Stringent environmental regulations
  • Transition to a low-carbon economy
Opportunities
  • Innovation in low-carbon products and services
  • Transition to renewable energy

Reporting Standards

Frameworks Used: ESG Reporting Guide (Hong Kong Stock Exchange)

Certifications: ISO 14001 (various subsidiaries), ISO 45001 (various subsidiaries)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Goal 7 (Affordable and Clean Energy)
  • Goal 13 (Climate Action)

Initiatives such as promoting renewable energy, reducing emissions, and providing affordable energy contribute to these goals.

Sustainable Products & Innovation

  • Renewable energy projects (EDL)
  • Carbon capture and utilization (AVR)
  • Hydrogen production (AGN)
  • Smart grid technologies (UKPN, United Energy)

Awards & Recognition

  • AGN: 2020 Australian Engineering Excellence Award for South Australia
  • AGN: 2020 Australian Pipelines and Gas Association Environment Award