Responding to Global Challenge of Climate Change
What can be measured, can be managed. In 2009, we strengthened and broadened our emissions reporting system. New categories were added to the portfolio, including refrigerants, water consumption and sewage treatment, as well as corporate paper use. While not significant to the overall emission count, managing these newly categorized areas aligns us to our policy of targeted reduction and brings about the opportunity to improve performance.
We address emissions reduction in a targeted manner that takes into account changing business dynamics, risks and stakeholder expectations. Targets are set on an annual basis and developed within the SMART (Specific, Measurable, Attainable, Relevant and Time-bound) framework which promotes continuous improvement against existing achievement. Targets are often set against budget, such as electricity usage, which directly ties net reduction to Balanced Scorecard performance. This links reduction efforts to job performance realities.
We have voluntarily participated in the Carbon Disclosure Project (CDP) since 2006 as a means to benchmark our performance in emissions management against Global-500 companies. The 2009 results showed the Corporation to be slightly below average for disclosure of carbon emissions, in comparison with similar industries in our allocated category (Industrial Sector) and below average for Hong Kong reporters.
In response to these results, an organisational review of our emissions reporting and monitoring systems is under consideration with the view to improving systems, setting more specific targets and broadening our scope of emissions reporting.
Most reported emissions increased slightly during the year, due to expansion of the network and increased lettable floor area added to our managed property portfolio. However, efficiencies in rail operations (KWh/car-km) improved by 0.01 and 0.05 for heavy rail and light rail plus bus respectively, demonstrating our improving efficiency trend.
Electricity usage is significantly our largest source of greenhouse gas (GHG) emissions. Under the HKSAR Government’s Scheme of Control, our supply is limited to purchasing electricity from two power companies in Hong Kong, neither of which currently offers alternative energy as a viable choice for supply. Managing our emissions is strictly a demand-side issue.
Energy initiatives focus principally on our rail operations and property management, which are responsible for most electricity consumption and the sources of subsequent GHG emissions (approximately 95% of total reported emissions in 2009).
The Energy Management Committee keeps sharp control over electricity usage within rail operations. Continuous improvement is the basis for management. Targets are set against an annual budget in which performance is balanced between energy savings and the delivery of world-class service. This focuses efforts on efficiency of systems and equipment, skills training and the enterprising spirit to optimise asset capabilities. In 2009, in addition to the HB-LED station and train lighting scheme, over 20 new railway technologies were explored for viable application to reduce energy consumption, including a thermal energy storage system and solar panels for lighting selected designations in depots.
The Property Division’s Sustainability Task Force provides an internal forum whereby new technologies and initiatives are explored and incubated for applicability in new buildings and developments. We look at climate change in the global context of renewable energy and greener, more energy-efficient built environments. Study is in progress for use of solar panels and possible opportunity in wind power use. We already have in place energy-efficient lighting (e.g. LED lighting) in public areas and are proposing the use of more energy-efficient central air conditioning systems, such as seawater cooling in applicable sites for future property developments.
We pointedly test new building technologies in-house to ensure applicability and efficacy of use prior to widespread adoption. As an example, we developed Hong Kong’s most advanced electrical and mechanical (E&M) building management system that purposely seeks the adoption of new technologies as they are available. The property developments in LOHAS Park demonstrate the progressive use and application of this and other new systems. These include efficient maintenance systems, use of green building materials, and installation of energy and water efficient appliances and devices. We also encourage vertical greening to reduce heat gain and thus reduce energy use.