Hong Kong Exchanges and Clearing Limited (HKEX) is today (Monday) pleased to announce the company’s own commitments to achieving both carbon neutrality and net zero. Reflecting the Group’s long-standing convictions, and commitments to advancing the sustainable development of global markets and the broader communities in which the Group operates, HKEX is pleased to confirm its plans to achieve Group carbon neutrality by 2024, and net zero by 2040.
To align with the Paris Agreement goal of limiting global warming to 1.5 degrees Celsius above pre-industrial levels, HKEX commits to the continual reduction of its scope 1, 2, and 31 greenhouse gas emissions, and to neutralise its residual emissions by 2040. HKEX intends to submit its science-based emission reduction targets to the Science Based Targets initiative (SBTi) for validation in 2024.
Underpinned by its overarching 2040 net-zero goal, HKEX is committed to decarbonising its operations by improving energy efficiency, using electricity from renewable sources, and exercising low-carbon procurements where possible. HKEX will also continue to work with its business partners throughout its value chain to support them in setting science-based targets for their own decarbonisation journey.
HKEX today also confirms its commitment to achieving carbon neutrality by 2024, as part of its efforts to accelerate climate action and contribute to the goal of achieving societal net zero. This will include measures to expand the Group’s carbon offsetting policy, to cover all remaining emissions (where material) through the purchase of high-quality certified carbon credits.
HKEX Chairman, Laura M Cha, said: “The latest UN Climate Change report shows that the world remains “massively off track” on climate action. Time is of the essence and we must do more to ensure a sustainable future for our children, their children and our planet. I’m pleased today to be sharing HKEX’s plans to accelerate its net zero and carbon neutrality goals. Our commitment to achieve net zero by 2040, 10 years ahead of our original target, reflects our ongoing determination to address climate change in a timely manner. We urge others across our community to join HKEX, in charting the way forward to address climate change. Our planet simply cannot afford to wait.”
HKEX Chief Executive Officer, Nicolas Aguzin, said: “As a regulator, market operator and a company, HKEX is uniquely positioned to support businesses and investors around the world in their low-carbon transition journey. We are actively taking steps to create a vibrant ecosystem that supports companies in becoming more climate resilient and sustainable and have a range of products and tools that can help them achieve their goals -- from Core Climate, our carbon trading platform, to green bonds trading on our markets, to the ESG Academy that we run for listed issuers. Today though is about us, and HKEX the company, as we walk the talk, setting out our own net-zero and carbon neutrality goals and leading from the front. We must make this happen, the implications of not doing so are unthinkable.”
HKEX is committed to helping investors and issuers accelerate their low-carbon transition journey, to ensure the sustainable successful development of global markets. HKEX earlier this year published a consultation paper proposing the mandatory inclusion of climate-related disclosures in ESG reports for all issuers, introducing new climate-related disclosures aligned with the International Sustainability Standards Board’s (ISSB) Climate Standard. In October 2022, HKEX established Core Climate – the only carbon marketplace that offers Hong Kong Dollar and Renminbi settlement for the trading of international voluntary carbon credits, further facilitating companies’ net-zero journey.
The London Metal Exchange, part of the HKEX Group, has also committed to achieving net zero emissions by 2040, and intends to submit its science-based emission reduction targets to the SBTi for validation in 2024.
Note 1: Scope 3 emissions are only included when they are considered material to the business.
