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)
In the designing process, an internal circulation and ventilation system is introduced into the façade composition, which improves a building's overall thermal performance by controlling wind flow direction and volume, to conduct accurate calculations on the structures and makes use of natural light in cooperation with the building design to reduce the carbon emissions caused by heating, cooling, lighting, and electricity consumption.
In the manufacturing process, we are adopting the direction of "building an intelligent production base" and the goal of "leading the end-to-end intelligent fabrication of curtain walls". Also, we preferentially select low-carbon materials in the procurement of metals and alloys.
In the installation process, we are using unit facades to reduce working hours and direct or indirect carbon emissions.
Investing and Operating Business- Huanggu Thermoelectricity
01 Determination of power by heat
In the installation process, we are using unit facades to reduce working hours and direct or indirect carbon emissions.
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
Residual heat cannot be avoided in the heating production process, so we recycle the residual heat generated by the unit for heating to reduce energy consumption.
We conduct regular verification and regulation of carbon emissions in strict accordance with the "Greenhouse Gas Emissions Accounting Methodology and Reporting Guidelines for Enterprises-Power Generation Facilities", " Measures for the Administration of Carbon Emissions Trading (Trial)" and other documents. Meanwhile, we paid close attention to market changes and explored the application and development of clean energy. Such emissions reduction efforts led Huanggu Thermoelectricity to consume around 600,000 tons of coal in 2022, representing a decrease of 70,000 tons from the amount consumed in 2020.
BUILDING-INTEGRATED PHOTOVOLTAICS (BIPV)
With the proposal of China's 14th Five-Year Plan and the goals of carbon peak and carbon neutrality, the demand on new energy development and urban energy conservation is growing, and the concept of green environmental protection has gradually received more attention in the field of construction engineering. In this respect, the Group actively researches and develops BIPV technology and explores new solutions for renewable energy development.
Meanwhile, we also proactively collaborate with various external parties to promote the integration of BIPV into green building projects, such as reaching a strategic partnership agreement with a leading enterprise of the cadmium telluride industry to cooperate in the Hong Kong Chinese Medicine Hospital project, jointly produce imitation aluminum plates, imitation stone frosted photovoltaic glass modules, and carry out R&D and design of BIPV products.
NON-GLASS PHOTOVOLTAIC MODULE DESIGN
In addition to the research and development of standard BIPV systems suitable for different locations such as facade, roofs and railings, the Group is also committed to the research and development of BIPV system which is suitable for the photovoltaic-related renovation of old buildings. Meanwhile, the Group also carries out in-depth research and development of non-glass photovoltaic modules, breaks through the traditional all glass design option, and replaces the glass back sheet with aluminum veneer, aluminum honeycomb plate, galvanized plate and other materials, to improve the strength of photovoltaic modules and reduce the weight. At the same time, we also explore the replacement of glass panels with other transparent materials to provide a more diversified facade outlook of BIPV.
BIPV RECONSTRUCTION DESIGN OF STAFF CANTEEN 2/F OF FAR EAST (ZHUHAI)
BIPV has been piloted on the top of Far East (Zhuhai)'s staff canteen, which adopts BIPV photovoltaic roof system and facade system to realize photovoltaic power generation technology. The project has been successfully completed and put into trial operation and is supposed to satisfy the power demand for indoor air-conditioning and lighting.
The photovoltaic roof area is about 300 square meters, the facade photovoltaic panel area is 45 square meters, and new materials such as imitation stone, imitation aluminum panel, imitation wood grain, imitation masonry grain, etc. are selected to enrich the appearance layer.
The canteen can generate about 39,000 kWh of green power per year, which can save 11.9 tons of standard coal per year, or about 38.8 tons of carbon dioxide emissions, compared with thermal power with the same power generation.
BIPV WINTER GARDEN AND BIPV CARPORT FOR THE YUNXI COUNTY HEJIA POVERTY ALLEVIATION INDUSTRIAL PARK
The top and facades of the BIPV winter garden are all equipped with power generation functions, which can attain electricity self-sufficiency within the building's, while enhancing the building' usable area and functionality. With an area of 580 square meters, double-glazed photovoltaic components with an installed capacity of 80 kW and transmittance as high as 40%, it can generate an estimated amount of 43,000 units of electricity every year.
BIPV photovoltaic carport excels insafety, beauty and water-repellency. The installation covers an area of 688 square meters. The carport houses charging stations for electric cars and chargers for electric vehicles, thereby encouraging factory staff to practice green commuting by switching to electric vehicles.
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 CURTAIN WALL CERTIFICATION
The Group possess a valid passive curtain wall certification for Hong Kong and 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 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 in the Hong Kong Science Park Project
Climate change poses significant risks to the global economy, with the physical risks (e.g. extreme weather) and transition risks (e.g. low-carbon related policies) directly or indirectly affecting all industries. Thus, the Group is making reference to the Task Force on Climate-related Financial Disclosures (TCFD) to tackle climate change and pays close attention to the risks and opportunities on our business brought by climate change. The Group is committed to explaining the management direction and strategy on mitigating, adapting to and being resilient to climate change to our stakeholders.
GOVERNANCE ON CLIMATE RISK
The Group has established a sustainability committee under the Board, with its members being appointed among the directors by the Board. The committee must have at least three members, more than half of which must be independent non-executive directors. The chairperson of the committee must be appointed by the Board. The committee chairperson must report material issues related to sustainable development to the Board of the Company, and such issues include climate-related issues and their identification, assessment and management. The sustainability committee holds meeting annually to formulate and review the climate strategy of the Group, including the objectives or material measures on mitigating, adapting and resisting climate change, mitigation, adaption and resilience and to identify risks and opportunities of climate change to our business.
The physical risks of the Group caused by climate change mainly include floods, temperature increase and other problems caused by extreme weather events such as heavy rains, thunderstorms and strong winds.
Might adversely affect employees' safety, the transportation of construction materials and the works progress of the sites, thus causing financial damages 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 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 suction 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.
TRANSITIONAL RISK AND OPPORTUNITIES
The transition risks posed by climate change to the Group in terms of policies, laws and regulations.
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.
We actively develop and employ BIPV renewable energy technology. BIPV product
Financial loss might be experienced due to asset price changes or poor credit conditions if its investment assets, borrowers or creditors cannot fully address relevant market changes.
To Huanggu Thermoelectricity, the impact mainly comes from carbon quota and carbon trading in accordance with the latest standards stipulated by the state. If Huanggu Thermoelectricity fails to invest in upgrading existing facilities to meet the set goals, it will be required to purchase a corresponding quota to offset its emission amount, resulting in possible corporate financial losses.
Carbon quota and carbon trading can also bring opportunities to the Group; for instance, if Huanggu Thermoelectricity excels in emission reduction, it can make a profit from selling corresponding quota
Huanggu Thermoelectricity has therefore formulated the Carbon Assets Management Measures to regulate the reporting and collection standards of carbon emission, while clearly setting out data responsibilities and statistical norms.
We also actively join in the development of low-carbon technology through green financing and invest in optimizing existing facilities to enhance efficiency.
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.
To formulate long-term strategy and to prevent our business from being affected by climate risk, we set forth a sustainability risk assessment framework and a list of alternatives, and we also carry out assessment on sustainability risk.
METRICS AND TARGETS
To tackle climate change, the Group sets up different goals on reducing greenhouse gas emission, and actively pursues low-carbon transition through technological innovation. At the same time, we will draw up an emission reduction roadmap to gradually attain 25% reduction in carbon intensity by 2026 and carbon neutrality by 2060. Please review "Environmental Targets" for more details.
Formulate the sustainability risk inventory
Through analyzing from different perspectives, and by referencing several risk analysis reports, general trend analysis reports, peer reports, and by integrating the business nature of CSC Development, we identify the sustainability risks related to the Company, and formulate the sustainability risk inventory.
Establish a sustainability risk profile
Based on the sustainability risk assessment framework and sustainability risk inventory, in view of the Group's business, and considering the risks listed in the existing list of risks that have potential linkage to sustainability issues, we will select, adjust, and integrate suitable sustainability risks to establish a sustainability risk profile.
Carry out sustainability risk assessment and investigations
Relevant departments are invited to take part in a questionnaire survey in order to assess the risk level of each sustainability risk. Each relevant department shall give its scores on each sustainability risk based on "the possibility of occurrence of sustainability risk" and "the severity of the occurrence of sustainability risk".
Review the management on sustainability issues with high risk level
The Group will aggregate the survey results of the sustainability risk assessment, confirm the priority of the sustainability risk, and specifically review the Company's management on sustainability issues with high risk level, to further refine the risk management mechanism, and to assess the material entity and transition risks and opportunities on climate change to our assets and businesses.