Climate Change Data

Swire Pacific Limited

Climate Impact & Sustainability Data (2019, 2020, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:19.3 million tonnes of CO2e
Scope 1 Emissions:18,668 thousand tonnes of CO2e
Scope 2 Emissions:658 thousand tonnes of CO2e
Renewable Energy Share:3.5% of overall electricity consumption (Swire Coca-Cola)
Total Energy Consumption:264.3 million gigajoules
Water Consumption:18.4 million m3
Waste Generated:74,307 tonnes (to landfills)

ESG Focus Areas

  • Climate Change
  • Waste Management
  • Water Management
  • Sustainable Materials
  • Biodiversity
  • Climate Resilience
  • Diversity and Inclusion
  • Health and Safety
  • Community Investment
  • Governance

Environmental Achievements

  • Exceeded carbon reduction target by 1.83%
  • Swire Properties carbon reduction target approved by SBTi
  • Cathay Pacific improved fuel efficiency by 2%
  • Swire Coca-Cola announced Hong Kong’s first major plastic waste recycling facility

Social Achievements

  • Developed diversity and inclusion strategic framework with three goals, five diversity focus areas and a five-year plan
  • Staff turnover rate fell from 19% in 2018 to 16% in 2019
  • Introduced Group Flexible Working Policy

Governance Achievements

  • Published a climate change policy
  • Swire Properties was the first company in Hong Kong to obtain a sustainability-linked loan

Climate Goals & Targets

Long-term Goals:
  • Swire Properties’ science-based targets (reduce Scope 1 and 2 GHG emissions by 35% per sqm by 2025 and by 52% per sqm by 2030; reduce Scope 3 GHG emissions from downstream leased assets by 28% per sqm by 2030; reduce Scope 3 GHG emissions from capital goods by 25% per sqm by 2030)
  • Swire Coca-Cola’s science-based target (30% reduction in absolute Scope 1, 2 and 3 emissions by 2030)
Medium-term Goals:
  • Developing 2030 carbon, waste and water targets
  • Swire Coca-Cola to submit science-based carbon reduction target to SBTi
  • Swire Coca-Cola to use 100% renewable electricity in its core operations by 2026
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Social unrest in Hong Kong and global trade tensions
  • Missed water reduction target by 1.26% (largely due to Swire Coca-Cola acquisitions)
  • Increased waste sent to landfills by 12.5% compared to 2018
  • Increased LTIR by 12.3% to 2.01 from 1.79 in 2018
  • Two employee fatalities in 2019
Mitigation Strategies
  • Close monitoring of economic and political developments
  • Strategic relationships with Mainland Chinese companies
  • Business continuity plans
  • Maintaining financial strength and flexibility
  • Developing 2030 carbon, waste and water targets
  • Implementing data protocols to improve data accuracy and consistency
  • Implementing behavior-based safety programs
  • Defensive driving training
  • Reviewing parental leave policy
  • Introducing a third-party platform for whistleblowing

Supply Chain Management

Responsible Procurement
  • Supplier Corporate Social Responsibility Code of Conduct
  • Sustainability criteria included in procurement decisions where possible
  • Risk matrix based on the Code to manage and mitigate risks

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme weather events
  • Increasing temperatures
  • Water stress
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of low-carbon and climate-resilient businesses
  • Access to the green finance market

Reporting Standards

Frameworks Used: GRI Standards, TCFD, UN SDGs

Certifications: ISO 14001

Third-party Assurance: Deloitte Touche Tohmatsu (limited assurance)

UN Sustainable Development Goals

  • Goal 7
  • Goal 9
  • Goal 11
  • Goal 12
  • Goal 13
  • Goal 14
  • Goal 15
  • Goal 6

Swire Pacific aligns its sustainability efforts with these SDGs, focusing on renewable energy, sustainable industries, city resilience, responsible consumption and production, climate action, marine conservation, terrestrial ecosystems, and water resources.

Sustainable Products & Innovation

  • Electronic flight folder (Cathay Pacific)
  • Dry aircraft washing (HAECO)
  • Plant-based meat alternatives (Swire Properties)

Awards & Recognition

  • 15+ Caring Company Award
  • Randstad Employer Brand Awards (Swire Properties)
  • Hang Seng Corporate Sustainability Index AA rating
  • MSCI ESG Research AAA rating
  • Excellent Organisation & Employee Health Award (Swire Coca-Cola China)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:8.4M tonnes CO2e
Scope 1 Emissions:12,000 tonnes CO2e
Scope 2 Emissions:621,000 tonnes CO2e
Renewable Energy Share:Over 36% of electricity used by Swire Properties in mainland China is from renewable sources
Total Energy Consumption:1,215,000 GJ
Water Consumption:17.8M m3
Waste Generated:91,336 tonnes

ESG Focus Areas

  • Climate
  • Waste
  • Water
  • People
  • Communities

Environmental Achievements

  • Reduced GHG emissions by 57% from 2019 (largely due to COVID-19)
  • Swire Coca-Cola's carbon reduction targets approved by the Science Based Targets Initiative
  • Swire Coca-Cola and Swire Properties signed up to Business Ambition for 1.5°C
  • Swire Properties: 97% of existing buildings were certified green buildings
  • Swire Coca-Cola is a party to a joint venture developing Hong Kong’s first food-grade plastic waste recycling plant
  • Over 20 million kWh of electricity generated from renewable sources at Swire Properties, Swire Coca-Cola and HAECO Xiamen in 2020

Social Achievements

  • Launched the second iteration of SwireTHRIVE, expanding to include people and communities
  • Introduced a new parental leave policy (14 weeks for primary caregiver, 4 weeks for secondary caregiver)
  • Swire Properties named the Most Attractive Employer in the 2020 Randstad Hong Kong Employer Brand Research
  • Swire Coca-Cola set targets of 50% female representation in management roles and 30% female representation in senior management roles by 2030
  • Embracing inclusion series of events on diversity and inclusion

Governance Achievements

  • Secured Swire Pacific's first ESG-linked loan
  • Swire Pacific included in the DJSI Asia Pacific index; Swire Properties in the DJSI World index
  • Swire Pacific rated AAA by MSCI; Swire Pacific and Swire Coca-Cola rated A for water by CDP

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
  • Water neutral operations by 2050
  • Zero waste to landfill by 2050
Medium-term Goals:
  • Reduce water withdrawal by 27% by 2030 (from 2018 baseline)
  • Swire Coca-Cola: Reduce carbon emissions by 70% in core operations and 30% across value chain by 2030 (from 2018 baseline)
Short-term Goals:
  • Reduce Scope 1 and 2 emissions (excluding jet fuel) by 50% by 2030 (from 2018 baseline)
  • 30% women in senior management roles by 2024
  • 55% waste diversion rate from landfills by 2030

Environmental Challenges

  • Reduced business activity due to COVID-19 impacting environmental performance metrics
  • Decarbonizing carbon-intensive aviation and shipping sectors
  • Climate change risks to assets, operations, employees, and suppliers
  • Regulations and public scrutiny of products and services
  • Global pandemics
  • Water shortages
Mitigation Strategies
  • Developing a detailed roadmap to meet 2030 and 2050 environmental targets
  • Setting ambitious 2030 targets to reduce absolute emissions
  • Improving energy efficiency and increasing renewable energy use
  • Encouraging suppliers and customers to decarbonize
  • Using low-carbon and energy-efficient products and materials
  • Implementing business continuity plans
  • Appropriate health measures
  • Using recycled water and alternative sources
  • Improving water use efficiency

Supply Chain Management

Supplier Audits: Swire Properties assessed over 300 Tier-1 suppliers (2020)

Responsible Procurement
  • Supplier Corporate Social Responsibility Code of Conduct
  • Sustainable Procurement Policy
  • Human Rights Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme weather events
  • Extreme temperatures and heat stress
Transition Risks
  • Carbon pricing
  • Decarbonisation plans
  • Building energy codes
  • Market shifts
Opportunities
  • Green and low-carbon technology
  • Renewable energy
  • Demand for climate-resilient products and services
  • Green finance

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Guide, TCFD

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Deloitte

Sustainable Products & Innovation

  • Plant-based meat meal options (Cathay Pacific)
  • Bonaqua water bottles made from 100% recycled PET (Swire Coca-Cola)

Awards & Recognition

  • Swire Pacific: AAA rating from MSCI
  • Swire Pacific and Swire Coca-Cola: A rating for water from CDP
  • Swire Properties: Most Attractive Employer in 2020 Randstad Hong Kong Employer Brand Research

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:723 thousand tonnes of CO2e
Scope 1 Emissions:10.4 thousand tonnes CO2e
Scope 2 Emissions:183 thousand tonnes CO2e
Scope 3 Emissions:10,468 thousand tonnes CO2e
Renewable Energy Share:20.5%
Total Energy Consumption:1,022 million kilowatt-hours
Water Consumption:20.9 million cubic metres
Waste Generated:91,116 tonnes
Carbon Intensity:Not specified

ESG Focus Areas

  • Climate
  • Waste
  • Water
  • People
  • Communities

Environmental Achievements

  • 30% reduction in scope 1 and 2 emissions against a 2018 baseline
  • 20.5% of total electricity used by the Group generated from renewable sources
  • 61% of waste diverted from landfill in 2023

Social Achievements

  • 31% women on the board
  • 28% women in senior leadership
  • HK$35 million disbursed in 2023 for community initiatives

Governance Achievements

  • Updated several policies in line with internal policy review process (Biodiversity Policy, Carbon Offset Policy, Sustainable Building Design Policy, Sustainable Water Policy)
  • Piloting an internal carbon pricing mechanism
  • Completed an internal assessment of diversity, equity and inclusion maturity

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
  • Water neutrality by 2050
  • Zero waste to landfill by 2050
Medium-term Goals:
  • Achieve 10% SAF consumption by 2030 (Cathay Pacific)
  • Reduce water use by 30% by 2030 (compared to a 2018 frozen efficiency baseline)
Short-term Goals:
  • Reduce absolute scope 1 and 2 GHG emissions by 25% by 2025 (Swire Properties)
  • Reduce scope 3 GHG emissions from downstream leased assets by 28% per sqm by 2030 (Swire Properties)
  • Reduce scope 3 GHG emissions from capital goods by 25% per sqm by 2030 (Swire Properties)
  • Reduce carbon emissions by 70% in core operations (scope 1 and 2) by 2030 (Swire Coca-Cola)
  • Reduce carbon emissions by 30% from value chain (scope 1, 2 and 3) by 2030 (Swire Coca-Cola)
  • 65% of waste to be diverted from landfill by 2030

Environmental Challenges

  • 11% increase in total Swire Pacific climate footprint in FY23 due to business recovery from COVID-19 and expansion of Swire Coca-Cola into new markets
  • Limited availability of renewable energy in our markets
  • Challenges in decarbonising the carbon-intensive aviation sector
Mitigation Strategies
  • Implementing internal carbon pricing
  • Investing in modern, fuel-efficient aircraft
  • Using innovative technologies and driving operational efficiencies
  • Using renewable energy
  • Developing environmental roadmaps to guide resource deployment

Supply Chain Management

Supplier Audits: Approximately 460 suppliers reviewed in 2023 (Swire Coca-Cola); 100 suppliers underwent ESG assessment (Swire Properties)

Responsible Procurement
  • Swire Pacific Sustainable Procurement Policy
  • Swire Pacific Supplier Code of Conduct
  • Integration of SwireTHRIVE principles into supplier selection and retention
  • Preference given to suppliers with ISO-certified management systems

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
  • Extreme temperatures and heat stress
  • Water stress and drought
  • Typhoons
  • Tropical cyclones
Transition Risks
  • Carbon pricing
  • Carbon taxes
  • More ambitious national decarbonisation plans
  • Increased focus on scope 3 emissions
  • Reputational damage
Opportunities
  • Resource efficiency
  • Increased market demand for climate-resilient products and services
  • Sustainable financing

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide, TCFD, GHG Protocol, UN Global Compact

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: Deloitte

UN Sustainable Development Goals

  • Goal 6
  • Goal 7
  • Goal 8
  • Goal 10
  • Goal 12
  • Goal 13
  • Goal 14

Detailed in SDG alignment section of the report

Sustainable Products & Innovation

  • Low-carbon building materials
  • Next-generation cold drink equipment
  • Biodiesel

Awards & Recognition

  • Best ESG Issuer in Asia (Swire Properties)
  • UL2799 Zero Waste to Landfill validation (Swire Coca-Cola)