The Group actively accelerates the low-carbon transition of its companies through technological innovation, the establishment of responsible departments and task forces, and investment in renewable energy, in order to respond to the carbon reduction actions and targets of the countries and regions where it operates, and to integrate into the sustainable development blueprints of the countries and regions where it operates.
Corporate Low-Carbon Transition
Facade Contracting Business - Far East (Zhuhai)
01
In designing the facade module system, an internal circulation and ventilation system is introduced to precisely control the direction and volume of airflow, significantly enhancing the building's overall thermal performance. Through rigorous structural and thermal performance calculations, integrated with architectural design, the module maximizes the use of natural light, effectively reducing carbon emissions resulting from heating, cooling, and lighting.
02
In the production phase, the Group is oriented towards "building an intelligent production base" and aiming to "lead the end-to-end intelligent fabrication of curtain walls". We prioritise the use of low-carbon metals, low-thermal-reflection glass, and other eco-friendly materials to ensure the sustainability and environmental friendliness of the production process. By closely aligning with the national 'dual carbon' goals and the China State Construction Engineering Corporation's 15th Five-Year strategic plan, the Group places great emphasis on the emerging markets of Building-integrated Photovoltaics (BIPV) and Building Applied Photovoltaics(BAPV).
03
During the installation phase, the Group utilise modular curtain wall products to significantly reduce construction time and minimise carbon emissions. We consistently address industry technical challenges by integrating cutting-edge BC batteries from the market. These batteries, renowned for their superior power generation efficiency, substantially enhance the building's self-generated power capabilities, significantly reducing the overall carbon emissions.
Investing and Operating Business - Huanggu Thermoelectricity
01 Determination Of Power By Heat
Power generation quotas are governed by thermal output requirements, precluding discretionary electricity production solely for heating purposes.
02 Precise Adjustment And Control
The system will affect real-time adjustment and control on the heat supply volume according to the temperature of a particular day.
03 One Approach For One District
Adjust the heating temperature according to the needs of the community and the supporting facilities to achieve the highest efficiency; and study the adoption of a two-network balance policy to regulate the heating speed and pressure to balance the heat in the community.
04 Heat Recovery
Since residual heat cannot be avoided in the heating production process, we recycle the residual heat generated by the unit for heating to reduce energy consumption.
Huanggu Thermoelectricity strictly implements the requirements of several key documents, including "Greenhouse Gas Emissions Accounting Methodology and Reporting Guidelines for Enterprises - Power Generation Facilities" and "Measures for the Administration of Carbon Emissions Trading (Trial)", to ensure proper carbon emission verification and registration. Meanwhile, the Company is actively monitoring carbon market dynamics, exploring innovative applications of clean energy, and driving forward low-carbon transformation initiatives. In 2024, Huanggu Thermoelectricity sold 42,796 tonnes of carbon allowances at a unit price of RMB104.33, with a total turnover of RMB4,465,000.
BUILDING-INTEGRATED PHOTOVOLTAICS (BIPV)
With the guidance of China's "14th Five-Year Plan" and the goals of "carbon peak" and "carbon neutrality", there is an increasing demand for the development of new energy and urban energy conservation and emissions reduction. The concept of green environmental protection has gained significant attention in the field of construction engineering. Against this backdrop, the Group actively engages in the research and application of BIPV technology, exploring innovative development solutions for renewable energy. We also collaborate closely with external partners to integrate BIPV technology into green building projects, collectively advancing the low-carbon transformation in the construction sector.
In 2024, the Group continues to expand its presence in both domestic and international markets, establishing Far East Facade (Singapore) Pte. Ltd, and Far East Photovoltaic Technology (Guangdong) Company Limited. These initiatives further support our globalisation strategy in the facade contracting business and contribute to our commitment to sustainable development.
Technology lnnovation Research Institute of National Institute of Metrology, Shenzhen, China —— Zero Carbon Benchmark
Flexibly utilizes the Far East Photovoltaic Facade Light S product, featuring concrete-textured photovoltaic components, with an installation area exceeding 2,000 square meters. The annual electricity generation is approximately 180,000 kWh (based on preliminary project data). The unique glazed technology applied to the exterior of the product replicates the texture and aesthetic of "exposed concrete", achieving a harmonious blend of technology and nature.
The design architects skillfully integrate the Far East Photovoltaic Facade Light S product with double-glass transparent photovoltaic components, creating a building design that accommodates different transparency levels of power-generating glass. This allows natural light to flood the interior, providing both illumination and electricity generation.
This project combines photovoltaic power generation, energy storage, DC appliances, and flexible electricity usage (achieved through the central control system of the photovoltaic storage and flexible power box). Notably, Building 3 is a Green Building Three-Star structure, classified as a zero-energy building. By equipping the building with green electricity equivalent to its annual power consumption, it transitions from nearly zero energy consumption to a true zero-energy building.
Shenzhen Qianhai Huafa Ice and Snow World —— “A House That Generates Electricity”
Redefining traditional perceptions, gradually transforming from a "high energy consumer" into a green "power generation entity". This change is made possible by the innovative construction technologies of China State Construction Development Holdings Limited.
To meet the aesthetic, power generation, and wind pressure resistance requirements of Shenzhen Qianhai Huafa Ice and Snow World, the R&D team developed an innovative blue dotted hollow design and applied the newly designed Far East Photovoltaic Facade Light A 2.0 photovoltaic components. This construction features a total area exceeding 35,000 square meters of BIPV roofing, generating over 6 million kWh annually and reducing carbon emissions by approximately 4,700 tons, equivalent to planting about 270,000 trees.
Located in a coastal region, the facility must withstand extreme weather conditions such as typhoons. To meet the stringent wind pressure design requirement of 9.1 kPa, the R&D team achieved dual breakthroughs in product structure.
On one hand, the design employs a high-strength stainless steel backing, significantly enhancing the overall rigidity and strength of the product. Under equivalent wind load conditions, the deformation is minimized, with static load testing exceeding 14 kPa while maintaining a precise weight of less than 19 kg/m², ensuring compatibility with metal roof loads. On the other hand, a customized frame design enhances connections, with stainless steel framing surrounding the components. This, combined with precision bending and laser welding, fully meets wind pressure design requirements while achieving a balance of lightweight and high strength.
The Temporary Office at Tuen Mun West New Territories Landfill Extension —— First Photovoltaic Building Facade by Far East （Hong Kong）
To effectively address the challenges of urban waste management arising from the saturation of existing strategic landfill capacities, the Hong Kong Special Administrative Region Government has officially launched the West New Territories Landfill Extension Project, with a total investment of HKD 61.1 billion.
In this significant project, Far East Facade (Hong Kong) Limited, a subsidiary of China State Construction Development Holdings Limited, is responsible for the construction of the green energy system for the project's supporting office building. On the building facade, Far East Photovoltaics has innovatively applied its self-developed Light A series BIPV components, covering an installation area of 390.75 square meters. Additionally, on the roof and canopy areas, a high-efficiency Building Applied Photovoltaics (BAPV) system has been utilized, with standard photovoltaic components installed over 454.08 square meters and 225.83 square meters, respectively.
The photovoltaic system for this office building is expected to generate approximately 190,000 kWh annually. Compared to traditional thermal power generation with the same output, this system achieves significant energy savings and emission reductions: saving about 58 tons of standard coal and reducing carbon dioxide emissions by approximately 189 tons. This reduction is equivalent to the carbon absorption contribution of about 570 mature trees over a year, adding substantial environmental value to the project and supporting Hong Kong’s goals for green and sustainable development.
Beijing China Overseas Financial Center —— Zero Carbon Buildings and "Solar Storage Direct Flexibility" Demonstration
On May 25th, the Beijing China Overseas Financial Center officially commenced operations. China State Construction Development Holdings Limited undertook the BIPV project for the core office area, leveraging innovative self-developed products to drive the building's green and low-carbon transformation. The project successfully met three stringent international certification standards in the green building sector, becoming Beijing's first commercial office zero-carbon building benchmark. It is also among the first demonstration projects for the integration of advanced "Solar Storage Direct Flexibility" technologies (including photovoltaic generation, energy storage, DC distribution, and flexible electricity usage).
The office building innovatively utilized the Far East Photovoltaic LIGHT series facade products, creating a multifunctional building envelope system that covers three key application scenarios: light gold aluminum decorative strips, all-black sunshades, and rooftop grids. The product features a unique glass surface micrometer-level glazed technology, combined with a lightweight, high-strength structural design, precisely replicating the excellent physical properties and aesthetic appeal of traditional aluminum panel facades, achieving a seamless integration of photovoltaic generation and architectural aesthetics. Its outstanding adaptability to various scenarios adds a finishing touch to the project's design and functionality.
The project installed a total BIPV photovoltaic component area of 1,314 square meters, with a total system capacity of 194 kW. The expected annual electricity generation is approximately 160,000 kWh, which corresponds to a reduction of about 51 tons of standard coal consumption or an equivalent reduction of approximately 125 tons of carbon dioxide emissions. With its green and eco-friendly zero-carbon operation model, the China Overseas Financial Center is establishing a new image as the "World's Reception Hall in Beijing", contributing exemplary power to the capital's sustainable development.
Eco-Friendly Facade Products
Our Group actively conducts R&D and application of the next-generation facade with solar power generation, color-changing, fireproof, and respiratory features, and is committed to low-carbon environmental protection and new market demands.
Passive House Curtain Wall Certification
The Group possess a valid passive house curtain wall certification for North America. This certification is the first passive building certification for unit glass curtain wall in North America and even the entire world, indicating that our high-thermal performance envelope structure, high air tightness, and efficient heat recovery system are internationally recognized as a curtain wall design that achieves ultra-low energy consumption.
* Gamma North America a subsidiary of the Group Received Passive Curtain Wall Certification
Application Of Respiratory Double-Skin Facade
The Group boasts mature technologies in respiratory double-skin facade. Respiratory facade introduces an internal circulation and ventilation system, which improves a building's overall thermal performance by controlling the flow direction and flow of the wind. It prevents curtain wall from frosting on cold days and facilitates heat dissipation in high temperature, thereby reducing energy demand and improving energy efficiency.
* Respiratory Double-skin Facade successfully applied in the Hong Kong Science Park Project
Climate Change
In response to the escalating severity of global climate change, climate resilience has become a critical issue for businesses worldwide. The Group is committed to addressing this challenge by aligning our strategies with China's "Dual Carbon" goals and Hong Kong's Climate Action Plan 2050 by the Hong Kong Special Administrative Region Government. We have developed a comprehensive climate risk management system tailored to our business characteristics, integrating climate risks into our overall risk management framework.
Based on the Task Force on Climate-related Financial Disclosures (TCFD) framework, the Group conducts an in-depth analysis of the potential impacts of climate change on our business, formulating specific management strategies and action plans. By transparently presenting our practices in mitigating climate change, enhancing operational resilience, and addressing risks to stakeholders, we demonstrate our unwavering commitment to sustainable development and our sense of responsibility.
GOVERNANCE ON CLIMATE RISK
To address the potential impacts of climate change on business operations, the Group has established a clear four-tier governance framework, with the Sustainability Committee (the Committee) at its core, ensuring comprehensive oversight and management of climate-related matters. Committee members are appointed by the Board of Directors, and the Committee Chair is also appointed by the Board. The Committee must have at least three members, with more than half being independent non-executive directors to ensure professionalism and objectivity.
The Committee professionally reviews the risks and opportunities arising from climate change, assesses their potential impact on the Group's long-term development, and regularly reports to the Board on the latest information regarding strategies, risk management, and business opportunities. This mechanism ensures that the Board is fully informed about the Group's latest progress in climate resilience, enabling them to make more informed decisions.
RISK
POTENTIAL IMPACT
OUR RESPONSE
Physical Risk
Direct natural disasters caused by climate change, such as floods, typhoons, droughts, extreme temperatures and wildfires, which are usually characterized as sudden, destructive and unpredictable.
For locations with a higher chance of typhoon in southern part of Chinese Mainland, more care needs to be given to the premises or construction sites. It might adversely affect employees' safety, the transportation of construction materials and the works progress of the sites, thus causing financial loss to the enterprise.
Geographical locations of the high-voltage rooms, major engine rooms and production workshops of Far East (Zhuhai) are much higher than the ground level, thus making the impact of floods lesser.
The Group formulated special emergency response procedures for severe weather in summer. Once we receive an alert on the weather, the General Office and the emergency response working group of the Group will organize and arrange various departments to carry out disaster prevention and emergency measures to protect the lives and health of employees and the safety of the assets, and to minimize loss.
Far East (Zhuhai) has also acquired backup power pumps and portable diesel suction pumps to meet the factories' drainage needs in case of emergency. Moreover, regular checks are conducted and drained channels of the factory areas are cleared on a weekly basis.
In response to the challenges posed by extreme high temperatures, Far East (Zhuhai) has implemented a series of scientifically effective heatstroke prevention and cooling measures to ensure the continuity of business operations and the health and safety of its employees. Specific measures include the installation of automatic sprinkler cooling systems in production workshops, and the provision of cooling beverages and heatstroke prevention items to all employees, helping them maintain good working conditions and physical stamina in high-temperature environments.
Transition Risk
Structural adjustments due to changes in policy, technology or market caused by climatic changes.
The governments of various countries respond to low-carbon and carbon-neutral initiatives by continuously strengthening regulatory measures related to climate change and driving relevant technological advancement to address climate change challenges, so that enterprises must adjust their environmental policies and operation modes, and invest additional resources in introducing new technology, equipment and process, in order to address and work alongside the economic risks brought by relevant legal requirements and low-carbon technology transformation.
More policies in relation to energy structure, climate risks and reporting standards are gradually introduced so it may increase the operating cost such as the compliance cost.
As one of the primary carbon emission sources for the Group, Huanggu Thermoelectricity, a key player in the coal-fired power generation sector, is actively advancing the transformation of its business model, striving to optimise resource utilisation efficiency while ensuring the essential heating needs of the community.
The strong policy push has further accelerated the development of the BIPV industry. As the government imposes stricter low-carbon requirements on new buildings, BIPV, as the core technological advantage of the Group within the industry, has become a key means to achieve carbon reduction in the construction sector. Leveraging the self-developed BIPV component products and system solutions, Far East (Zhuhai) successfully integrates architecture with photovoltaic technology, creating buildings with power generation capabilities. BIPV product
The Group will also continue to improve the identification and response mechanism for risks posed by climate change so as to further ensure that relevant risks are being controlled and managed effectively.
Risk Management
The Group recognises the significant impact of climate change risks on its sustainable development and has integrated this into its strategic management. A systematic and forward-looking framework for climate risk management has been established, involving processes such as risk identification, evaluation and response from a strategic level.
The Group closely monitors industry dynamics and market trends, particularly focusing on how climate change affects the industry's operational models, policy environments, and technological directions. A multi-dimensional risk assessment system has been implemented, which includes importance analysis, scenario simulations, and trend research to identify key climate risks that could impact the Group's financial performance, operational efficiency, and reputation.
The Board and senior management evaluate these risks based on the Group's characteristics and with diverse professional perspectives. Additionally, we invite external independent consultants for professional analysis to ensure the comprehensiveness and objectivity of the risk assessment.
The Group's climate risk management system demonstrates its professionalism and foresight in climate governance, providing strong support for achieving sustainable development goals. Moving forward, we will deepen our climate risk management and enhance the ability to respond to climate change, ensuring continued progress towards sustainability.
Metrics And Targets
To tackle climate change, Group actively drives its low-carbon transformation through technological innovation and is committed to reducing the total Scope 1 and Scope 2 emissions per HK$ million revenue by 25% by 2026 compared to 2021 levels, with a long-term goal of achieving carbon neutrality by 2060. Please review "Environmental Targets" for more details.
