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Overview Purpose of the Guide: Enables every business whether it is a small, medium or large enterprise, to play a role in addressing climate change. Guide written for senior managers, green teams and general staff. Why reduce emissions? The Business Case: Risks and Opportunities. How can businesses reduce their emissions? We propose a six step approach. What are the solutions? There are many solutions available, ranging from low cost, simple actions such as energy efficiency to cost effective long-term investments. 2 Every business has a role to play in addressing climate change.

How Can Businesses Reduce their Emissions? 3

First HK company to develop a Climate Change Policy to provide direction on how it can reduce its emissions, such as through optimising energy use, educating staff and upgrading equipment. Three key elements of an emissions management strategy: Establish an explicit policy direction for emissions reduction Assign responsibility and accountability Set out reduction targets and timelines Step 1. Prepare an Emissions Management Strategy 4

Step 2. Measure Energy Use and Emissions Introduced a company-wide ‘Project Environmental Performance Data Form’ in 2003 to provide monthly updates on the environmental impact of its transport, construction, equipment usage and electricity consumption. The GHG Protocol provides an international standard in accounting for GHG emissions. 5

Set targets that work by ensuring that they are SMART: Specific Measurable Achievable Realistic Time-related - Benchmark your performance by comparing your operations over time, different departments or your company with other companies. China Light and Power (CLP) ‘Climate Vision 2050’ includes an aim to achieve a 75% reduction in the carbon intensity of their generating portfolio by Interim targets are set to reduce carbon intensity from 0.84kg carbon dioxide/KWh (as at June 2007) to 0.8kg by kg by 2020 and 0.45kg by Step 3. Set Targets and Compare 6

- Identify easy wins and implement. These can be low cost and simple actions, but will demonstrate your commitment to emissions reduction. - Identify energy intensive activities and start reducing immediately - Identify medium term and long- term actions and commit to doing the most appropriate for your business. - Establish ‘green’ procurement, including energy efficient equipment, premises and vehicles. ‘Global Responsible Sourcing Initiative’ By 2012, suppliers must make a 20% improvement in their energy efficiency and source 95% of production from factories with the highest environmental and social ratings. Step 4. Implement Initiatives 7

Step 5. Offset to Become Carbon Neutral CX’s Fly Greener programme offers passengers the option of using cash or frequent flyer miles to pay for carbon offsets. Since launch in 2007, they have offset 30,000 tonnes of carbon emissions and invested in wind power generation projects near Shanghai. These wind projects are registered under the Voluntary Carbon Standard. The world’s first major bank to achieve carbon neutrality since The bank offsets its remaining emissions through investing in third-party verified projects that generate credible carbon credits from both the compliance and the voluntary markets. Carbon neutrality is when an organisation cuts/and or offsets its emissions to zero. Some of the most popular carbon offset projects from a corporate perspective are energy efficiency and wind turbine projects. 8

Results on performance should be regularly reported and reporting should include how targets have been met and ways to improve performance in the future. Installed a building information management system that collects information on building operations and energy consumption. This allowed Swire Properties to achieve an estimated energy saving of 3383MWH in 2007, which equates to 2717 tonnes of carbon dioxide. The trend will be that carbon reporting will become compulsory In Australia a large number of businesses (are) & will be required to monitor and report their energy use and greenhouse gas emissions. This is particularly relevant to sectors such as commercial buildings and vehicle fleets which were typically below the previous (higher) thresholds. The UK government recently amended the Climate Change Bill to strongly encourage all UK listed companies to include details of GHG emissions in their annual reports. 9 Step 6. Track Progress, Audit and Report

What Are the Solutions? What options are available for switching to a cleaner and more efficient energy future? How much will it cost? The good news is that many cost- effective solutions exist today and a number of emerging technologies look to deliver more substantial reductions in the future. Businesses that look for solutions now and seize the opportunities will be the successful companies of the future. 10

Hong Kong Buildings Guzzle! Buildings are responsible for 89% of electricity used (EPD 2006). Most of a building’s energy consumption comes from its operational practices such as cooling, heating and lighting. Besides energy use, other areas of concern for buildings are the generation of waste, use of construction materials and how they are recycled, water use, discharge and how buildings are integrated with other infrastructure and social systems. 11

The Business Case for Green Buildings The business case for greener buildings is well established. A US study found that certified green buildings cost 1.8% more to design and construct, but yield 20% cost savings over the life of the building. A significant problem encountered while achieving these benefits include short term decision making, isolated procurement and split incentives - where the party who pays for a more energy efficient building is different to the party who benefits from the saving in energy. Hong Kong’s Building Environmental Assessment Method (BEAM) provides a systematic, locally relevant approach to including environmental performance in the planning, design, construction, operation, management and marketing of buildings. 12

EE = Low Hanging Fruit Energy efficiency is one of the quickest, cheapest, cleanest ways to address reducing emissions. Energy saving initiatives such as building insulation, heat pumps, solar heating and efficient appliances can substantially reduce the energy consumption of buildings. Many of these can be installed with little or no cost through building design and good management practices of building operators and occupants. 13

No - low cost: - Turn off air con as you leave room - Adjust and maintain existing systems - Set appropriate temperatures (25.5) - Set appropriate dress codes - Use fans - Reduce leakage Medium Cost: - Install insulation, tinted windows & double glazing etc. - Consider paints, surfaces and planting - Install a building management system to optimize energy efficiency - Install variable speed drives to enable pump and fan speeds to be controlled - Follow schemes such as BEAM and LEED provide guidance on new buildings High Cost: - Install/retrofit a water cooled chiller system. These are up to 50% more efficient Solutions for Space Conditioning

15 2. Solutions for Lighting No - low cost: - Turn off lights - Organise office to maximise use of natural light - Clean light bulbs and fittings - Change lights to more efficient compact fluorescent lamps (CFLs) - Install sensors to turn off lights when rooms are nor in use - Use mirror reflectors for twin tube fluorescent to reduce the number of light bulbs needed - Set appropriate illumination levels - Change lights to more efficient Light Emitting Diode (LEDs). These are not suitable for all locations but are good for building facades, traffic signals and exit signs Medium Cost: - Install dimming ballast and controls to control artificial light in relation to the level of natural light

16 3. Solutions for Waste Immediate, low cost: -Purchase in bulk -Select reusable packaging -Buy only what you need -Reuse and recycle Medium-term: -Reduce packaging -Develop a waste management system -Develop a water management system -Maintain existing water system -Save water Long-term: -Extract energy from waste

17 4. Solutions for Office Equipment Immediate, low cost: -Turn equipment off to prevent wasting energy -Reduce equipment usage, by only turning on the piece of equipment you need -Recycle and re-use office equipment whenever possible -Place equipment near naturally ventilated areas, such as photocopiers that generate heat and put increased pressure on air conditioning units

More Information We would like to direct you to the online version of the guide found at: As well as the Hong Kong Government’s Carbon Audit Guidelines: ge/ca_guidelines.html Kindly encourage your colleagues and supply chain contacts to have a look at the guide. 18

Thank You. Please contact the CCBF Secretariat if you have any further questions. 19