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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.
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.
The Group actively manages climate-related physical and transition risks while advancing opportunities arising from the shift to a low-carbon economy. We promote renewable energy, improve energy efficiency and reduce carbon emissions, and also strengthen the climate resilience of our business. Across our principal businesses, we support greener operations, develop low-carbon products such as BIPV, and promote green building practices throughout the value chain, demonstrating our commitment to sustainable development.
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.
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).
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.
Power generation quotas are governed by thermal output requirements, precluding discretionary electricity production solely for heating purposes.
The system will affect real-time adjustment and control on the heat supply volume according to the temperature of a particular day.
The system dynamically adjusts heating temperatures based on community needs and available infrastructure to maximize energy efficiency. Furthermore, research is underway to implement secondary network balancinpolicies, utilizing smart controls to regulate flow rates and pressure for uniform heat distribution across the neighborhood.
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.
| CATEGORY | POTENTIAL IMPACT | OUR RESPONSE |
|---|---|---|
Physical RiskClimate change may give rise to extreme weather and temperature-related risks, including typhoons, heavy rainfall and prolonged heat. |
Extreme weather may damage plant structures, equipment and other fixed assets, and increase maintenance, replacement and insurance costs. Prolonged heat may affect employee health and productivity, increase absenteeism risks, and drive up cooling demand, electricity consumption and overall operating costs. | The Group continuously monitors extreme weather and temperature-related risks, and enhances relevant prevention, emergency response and operational safeguard measures to reduce impacts on assets, employee safety and day-to-day operations. We also continue to strengthen risk awareness, on-site management and facility operation safeguards to enhance overall operational resilience and response capability. |
Transition Risk
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As demand for renewable energy grows and environmental requirements become more stringent, traditional carbon-intensive businesses will face greater market pressure, regulatory constraints and capital cost pressure, leading to the need to reassess their business models and accelerate low-carbon transition. Failure to advance low-carbon technologies and products in a timely manner may affect market competitiveness. | The Group continuously monitors climate policies, regulatory requirements and energy transition trends, and integrates them into business planning and strategic adjustment. Through energy-saving and consumption reduction initiatives, equipment upgrades, operational optimisation and low-carbon technology development, we progressively strengthen our low-carbon transition capability and reduce potential risks arising from policy and market changes. |
Opportunity
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Market demand for low-carbon technologies, products and services continues to grow, creating new opportunities for the Group to expand green building solutions, enhance energy efficiency and optimise its product portfolio. | The Group actively captures market opportunities arising from the low-carbon transition by continuously developing low-carbon technologies, products and services, including advancing BIPV applications and related green building solutions. We also extend low-carbon principles across the value chain to support business growth, strengthen market competitiveness and create long-term value. |
