Tse sets five-year green targets at ESG forum
HK01 · 2 SOURCESabout 3 hours ago15 MIN
Summary
At the fourth ESG and Sustainable Development Forum and Awards hosted by HK01 on October 22, Environment and Ecology Secretary Tse Chin-wan (謝展寰) said Hong Kong’s first five-year plan includes 22 major indicators, including five binding targets and four linked to environmental performance. He said the plan is designed to align with the opening year of the national 15th Five-Year Plan and to set measurable goals for low-carbon transition, energy transformation and a more livable city with cleaner air and waters. The forum’s theme was “Riding the momentum of the 15th Five-Year Plan to build a low-carbon economic hub,” and this year HK01 worked for the first time with the Chinese University of Hong Kong Business School’s Centre for Business Sustainability as the official rating partner. Other speakers said ESG has moved from a voluntary add-on to a mainstream business requirement, with support for small and medium-sized enterprises becoming a priority
Key Points
- Tse said Hong Kong’s first five-year plan sets 22 major indicators, with five binding targets and four directly related to environmental performance
- He said Hong Kong’s carbon emissions peaked in 2014 and have since fallen about 27% from that high
- Hong Kong’s per-capita carbon emissions fell to about 4.41 tonnes in 2024, while carbon intensity dropped 12.3% between 2020 and 2024
- The government aims to cut carbon intensity cumulatively by 32.5% by 2030 and halve emissions from the 2005 level by 2035
- CUHK Business School’s Lo Wing-hung (盧永鴻) said ESG, first formally proposed by the United Nations in 2005, is becoming embedded across companies
- Tse said climate change is already affecting Hong Kong, citing an average temperature rise of 0.35 degrees Celsius per decade over the past 30 years. He also said July rainfall this year was close to 800 millimetres, more than double normal levels, and that the Hong Kong Observatory recorded 36.9 degrees Celsius in August, the highest since records began in 1884. He said such record-breaking rain and heat show extreme weather is no longer distant and that all sectors must prepare for growing climate risks
- On decarbonisation, Tse said the government’s Hong Kong Climate Action Plan 2050 is built around four strategies: net-zero electricity generation, energy saving and green buildings, green transport, and waste reduction for all. He said the administration is promoting hydrogen applications, green technology, a sustainable aviation fuel supply chain, expansion of the public electric-vehicle charging network, and waste-reduction and recycling programmes. In power infrastructure, he said the government is pressing ahead with reclamation works at Area 132 in Tseung Kwan O to accommodate strategic electricity facilities, with a target of raising zero-carbon electricity to 60% to 70% by 2035 and achieving net-zero power generation before 2050
- On transport and waste policy, Tse said Hong Kong will build a charging network centred on high-speed charging and aims to stop new registrations of fuel-powered private cars by 2035. He also said a five-year waste reduction and recycling plan began this financial year, “GREEN@COMMUNITY” facilities are being upgraded into 24-hour smart facilities, I·PARK1 is due to begin operation within the year, and I·PARK2 has started construction, with the goal of achieving “zero landfill” before 2035
- Tse said Hong Kong would continue to align closely with national policy while using its role as a “super connector” and “super value-adder” between the mainland and international markets. He said the government would expand green finance products, promote mutual recognition of international standards, support research through the Low-carbon Green Research Fund, and launch a Green Hydrogen Standards Certification Scheme in 2027 after the Electrical and Mechanical Services Department took part in drafting national standards. He also said a Green Technology Gateway programme would begin in 2027 to export green solutions to Belt and Road countries, and that Hong Kong would co-host a Belt and Road green innovation conference with the Ministry of Ecology and Environment later this month
- At the forum, Lo said ESG’s roots can be traced to corporate social responsibility efforts in the mid-20th century, but progress was slow until investors began pushing companies after the United Nations formally introduced the ESG concept in 2005. He said companies adopting ESG can gain practical benefits, including lower operating costs and higher rental premiums for green buildings, lower borrowing costs compared with traditional firms, and stronger market valuations, citing Geely Automobile’s rise after developing electric vehicles. He also said CUHK launched its MSc in Sustainable Global Business two years ago and that it quickly became one of the university’s most popular programmes
- ESG Association secretary-general Cheng Lei (鄭蕾) said sustainable transition cannot be achieved by one or two companies alone and called for firms to “go out as a group” and help one another. She said the association has launched a “big hand holding small hand” programme to help small and medium-sized enterprises adopt green technology and ESG practices. Referring to the forum’s “15th Five-Year Plan tailwind” theme, she said green technology is a national priority and pointed to the Pinglu Canal, opened to navigation in mid-September, as an example of infrastructure that can cut emissions by shortening shipping routes from Guangxi by 560 kilometres per vessel
Why It Matters
For Hong Kong businesses, the message from the forum was that ESG is moving from branding language into hard policy targets, financing conditions and infrastructure planning. That raises the pressure on companies, especially smaller firms, to adapt quickly if they want to benefit from green finance, lower-carbon supply chains and cross-border opportunities linked to national planning.