Climate Change Data

Bank of Communications (Hong Kong) Limited

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:11,319.46 tCO2e
Scope 1 Emissions:975.98 tCO2e
Scope 2 Emissions:9,836.12 tCO2e
Scope 3 Emissions:507.35 tCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:14,646.72 MWh
Water Consumption:15,892.50 m3
Waste Generated:Not disclosed
Carbon Intensity:6.20 tCO2e per person (operational)

ESG Focus Areas

  • Climate Change
  • Green Finance

Environmental Achievements

  • Reduced GHG emissions intensity at the operational level to 6.20 tCO2e per person in 2022.
  • Launched Green Mortgage program for Hong Kong's certified sustainable buildings, with 19 applications received totaling HK$112.16 million by the end of 2022.

Social Achievements

  • Distributed multiple ESG funds, offering 69 investment options to clients.
  • Successfully subscribed HK$231 million in HKSAR Government's Green Retail Bond issuance.

Governance Achievements

  • Established a Risk Management Committee (RMC) and Green Finance Management Committee (GFMC) to oversee climate-related issues.
  • Incorporated climate risk management performance into senior management remuneration policies.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero GHG emissions at the operational level in 2050.
  • Achieve net-zero financed emissions in 2060.
Medium-term Goals:
  • Reduce GHG emissions at the operational level by half in 2035 (2022 as baseline).
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Data availability and accuracy challenges in quantifying financed emissions.
  • Potential transition risks for high-carbon emission industries (e.g., cement, thermal power).
Mitigation Strategies
  • Developed a methodology for quantifying carbon emissions from investments and a data collection and management system.
  • Conducted stress testing for physical and transition risks using IPCC RCP 8.5 and NGFS Delayed Transition scenarios.
  • Provided training to frontline units and strengthened communication with clients to improve data quality for financed emissions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green procurement

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Policy changes
  • Market shifts
  • Technological advancements
Opportunities
  • Green finance
  • Transformation finance

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Green loans
  • Green bonds
  • Green mortgage

Awards & Recognition

  • Not disclosed

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5,703.58 tCO2e (operational)
Scope 1 Emissions:164.43 tCO2e
Scope 2 Emissions:4,968.26 tCO2e
Scope 3 Emissions:570.90 tCO2e
Renewable Energy Share:Not disclosed
Total Energy Consumption:8,813.27 MWh
Water Consumption:9,268.00 m3
Waste Generated:473.29 tons (paper)
Carbon Intensity:2.54 tCO2e per million HKD (financed emissions)

ESG Focus Areas

  • Climate Change
  • Green Finance

Environmental Achievements

  • Reduced operational GHG emissions intensity to 3.13 tCO2e per person in 2023.
  • Launched "Green Mortgage Special Interest Rate Program", resulting in 42 applications disbursed totaling HKD 296.44 million by April 2024.
  • Successfully subscribed to HKD 280 million in retail green bonds in September 2023.

Social Achievements

  • Held approximately 70 training courses on climate risk and ESG management in 2023.
  • Organized multiple tree-planting events, planting over 300 tree saplings.

Governance Achievements

  • Established a Green Finance Management Committee (GFMC) at the board level.
  • Incorporated climate risk into the responsibility scope of the Risk Management Committee (RMC) and Comprehensive Risk Management and Internal Control Committee (CRMICC).
  • Integrated climate considerations into the remuneration system.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero GHG emissions at operational level in 2050
  • Achieve net-zero financed emissions in 2060
Medium-term Goals:
  • Reduce GHG emissions at operational level by half in 2035 (2022 as baseline)
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Climate change poses significant challenges to social stability and economic progress, potentially inducing material financial risks for financial institutions.
  • Managing climate-related risks across the value chain, including physical risks (extreme weather events) and transition risks (policy changes, market shifts).
Mitigation Strategies
  • Integrated climate risk management into the comprehensive risk management system.
  • Conducted stress testing for various physical and transition risks using IPCC RCP 8.5 and NGFS Delayed Transition Scenario.
  • Incorporated assessment requirements for customer climate risks and ESG risks into credit granting procedures.
  • Developed a methodology for quantifying financed emissions and established a data collection and management system.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green procurement practices

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting operations and collateral value.
Transition Risks
  • Policy changes, market shifts affecting financial performance and reputation.
Opportunities
  • Growth in green finance and transition finance.

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Green time deposits, green mortgages, brokerage of Hong Kong government green bonds, ESG funds.

Awards & Recognition

  • 2023 ABF Wholesale Banking Awards-Hong Kong International Green Finance Initiative of the Year
  • Six awards by HKQAA for the "Hong Kong Green and Sustainable Finance Awards 2023"