In FY2020, we pledged our support to the Task Force on Climate-related Financial Disclosures (TCFD) after attempting to disclose climate risks and opportunities based on their recommendations in FY2019. This is well ahead of HKEX’s disclosure mandate by 2025. Going forward, we will continue to explore different ways and best practices to build safe, resilient and sustainable communities.

In June 2022, NWD became the third real estate developer in Asia to receive the Science Based Targets initiative’s (SBTi) approval of its near-term 1.5°C aligned science-based targets (SBTs) and commit to the SBTi Net-Zero Standard, which will include setting long-term company-wide emission reductions in line with reaching science-based net-zero by 2050. This follows NWD’s commitment to the Business Ambition for 1.5°C, a global call to action from the United Nations and business leaders for climate change mitigation under the Paris Agreement, in February 2021.

The approved near-term SBTs cover the Company’s major properties and construction activities in Hong Kong and the Mainland China. The Company has committed to achieving the below reductions by FY2030 against a baseline of FY2019:

• Absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 46.2%

• Scope 3 GHG emissions from capital goods by 22.0% per square metre of construction floor area

• Scope 3 GHG emissions from downstream leased assets by 29.8% per square metre of gross floor area

NWD also developed a Renewable Energy Roadmap, with the ambitious commitment of using 100% renewable energy to reduce Scope 2 emissions for all Greater Bay Area rental properties by end of FY2026 and all Greater China rental properties by end of FY2031. This will be achieved by installing onsite renewable energy, adopting power-purchase agreements and purchasing renewable energy certificates.

NWD is also a member of Race to Zero, a global campaign rallying non-state actors – including companies, cities, regions, financial, educational, and healthcare institutions – to take rigorous and immediate action to halve global emissions by 2030 and deliver a healthier, fairer zero carbon world.

We are pleased to share with you our latest video produced for us by BBC StoryWorks, the commercial content division of BBC Global News, as part of World Green Building Council’s “Building a Better Future” series. The series of films and articles explore what the construction sector is doing to become more sustainable, and showcase buildings around the world that protect the planet and help us to lead happier, healthier lives. Below are three exemplary projects demonstrating our commitment to building sustainable cities and communities, learn more about them below!

Victoria Dockside

Victoria Dockside is Hong Kong’s first purpose-built art, design and cultural district, situated along the harbourfront in Tsim Sha Tsui. The district comprises K11 ATELIER Victoria Dockside, an A-grade office building that has obtained LEED Platinum®️ and Final Platinum under BEAM Plus New Buildings V1.1, as well as our cultural-retail destination K11 MUSEA and luxury residences K11 ARTUS, which have both obtained LEED Gold®️ certified. Victoria Dockside is connected to the wider neighbourhood via the harbourfront promenade Avenue of Stars and Salisbury Garden.

The project stands out for its groundbreaking microclimate control, reducing the heat island effect – when building surfaces and their surroundings absorb and hold heat resulting in higher temperatures. The project also improves thermal comfort for visitors and stays resilient to climate risks.

K11 ATELIER King’s Road

K11 ATELIER King’s Road is one of the world’s first triple platinum certified green and healthy buildings, certifications achieved include WELL Certified^TM Platinum, LEED Platinum and BEAM Plus New Buildings Final Platinum.

Over 70 innovative and sustainable features are incorporated into the building. The top floor consists of Asia’s largest hybrid solar-thermal system, as well as a sky garden with extensive greenery, biophilic jogging path, and organic farm. Furthermore, after two years of research and development, the world’s first patented inverted greenery design, CEILINGREEN^® was showcased in the building lobby. All these remarkable features contribute to providing a better environment for our tenants and building users. K11 ATELIER King’s Road has won numerous top building awards, including MIPIM Asia Awards 2020 – the leading regional property awards otherwise known as the “Oscars of the Asian real estate world” and the WorldGBC Asia Pacific Leadership in Green Building Awards 2020.

11 SKIES

We are proud to present 11 SKIES, a mixed-use game-changing destination that embodies our commitment to sustainable development. Strategically located near Hong Kong International Airport and the Hong Kong-Zhuhai-Macao Bridge, 11 SKIES is set to become a premier retailtainment and commercial landmark, fostering greater connectivity within the Greater Bay Area and driving economic prosperity in the SKYCITY precinct.

Spanning across 3.8 million square feet, 11 SKIES features Hong Kong’s largest indoor entertainment hub, catering to visitors of all ages. It will house over 800 shops, offering a diverse range of shopping experiences. Comprising three state-of-the-art Grade A office buildings, K11 ATELIER 11 SKIES encompasses a total of over 570,000 square feet themed around professional services. Both 11 SKIES and K11 ATELIER 11 SKIES have earned esteemed green and healthy building credentials, with the retail portion achieving triple Gold pre-certifications through BEAM Plus, LEED, and WELL, and the K11 ATELIER 11 SKIES office towers receiving final Platinum certifications from BEAM Plus and WELL, along with a LEED Platinum pre-certification.

To strengthen our sustainability governance, we integrate climate-related risks into the Group’s Enterprise Risk Management (ERM) by adopting “Applying enterprise risk management to environmental, social and governance-related risks” guidelines published by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and the World Business Council for Sustainable Development (WBCSD) in 2018. Climate risk has been identified as one of the emerging and key risks of the Group and has been included in our risk register. Our objective is to achieve the ongoing assessment, monitoring and management of climate risks through the Group and all business units, enhance our properties’ climate resilience and adaptability, and strengthen understanding and ownership of the assessment and management of climate risks relevant to the Group’s business activities.

Our Climate Resilience Guideline was established with reference to our ERM framework, which facilitate us to integrate various climate mitigation and adaptation measures into new developments, major refurbishment and construction activities, covering the full property lifecycle and climate risks that are pertinent to our major business locations, such as flooding, water stress, extreme temperatures and extreme wind, and suggest resilience improvement measures. Coastal areas are inevitably prone to risks such as floods and extreme weather events brought by climate change. In addition to green building design, we undertook climate risk scenario planning with an external consultancy for 14 major existing sites in the Greater Bay Area. Our studies have shed light on the potential physical risks that we might be exposed to and how we can enhance our existing assets to protect our customers and the building structure.

As of FY2023, we are currently refreshing the scenario analysis conducted in FY2019 to test our resilience to the key climate-related risks and opportunities we have identified. The scope of properties considered under the analysis includes over 100 key asset locations in Hong Kong, Mainland China and Southeast Asia.

To tackle potential water risks, we have adopted the “Sponge City” concept – a design that absorbs and captures rainwater and utilises it to reduce floods – in our projects. Various measures have been taken in Greater Bay Area development projects, including Canton First Estate, Ningbo New World and MOUNT PAVILIA to lower flood risks by enhancing water absorption capacity and redistributing water loads.

For example, rainwater harvesting and onsite greywater treatment provide irrigation water in the MOUNT PAVILIA residential project. Canton First Estate, located in Foshan, China, is also embedded with a rainwater harvesting system which collects water for irrigation. Along with other features such as a bio-retention pond and green landscapes, Canton First Estate can withstand a once-in-50-years torrential rainstorm event. Ningbo New World incorporates several Sponge City features, including a bio-retention pond, a rainwater garden, permeable pavements and an ecological rooftop, enhancing the climate resilience of the neighbourhood.

Further Reading

Please refer to our Climate Change Policy and Water Policy to learn more about our commitments and approaches to addressing relevant issues.