Speeding Up Green Transition
Performance Highlights
25.1%
Reduction in 2023’s carbon intensity from a 2020 base year
>38,000
Plastic bottles recycled through reverse vending machines installed at our sites
167 tonnes
Of food waste divert from ending up in landfills, a 38% increase compared to the previous Reporting Period
*Location-based method
1 During FY2023/24, our energy intensity and carbon intensity increased by 2.1% and 2.9%, respectively, compared to FY2022/23 due to increase in our property occupancy and operations. For example the lease out rate at Nina Tower increased by 20%, leading to an 8.7% increase in overall electricity consumption in the building. The guest room nights of our hotels also increased by over 30% compared to previous Reporting Period.
Managing Our Energy Usage and Carbon Footprint
In response to the urgent call to address climate change and sustainability, we have embarked on a transformative journey towards a sustainable future. Our ambitious “Chinachem Group Carbon Reduction Roadmap – CCG 3050+” (“CCG 3050+”), is aligned with the 1.5°C pathway which has been endorsed by the Science Based Targets initiative (“SBTi”). Through CCG 3050+, our goal is to reduce operational carbon intensity in Scope 1 and 2 by 51.8% and Scope 3 carbon intensity from capital goods, downstream leased assets, and waste generated in operations by 20% by 2030, with 2020 levels serving as the benchmark.
We initiated several green projects to accelerate our sustainability journey, including advancing renewable energy deployment, replacing the chiller system at Nina Tower, upgrading chillers at multiple properties such as Lucky Plaza, Leighton Plaza and Two Chinachem Plaza, launching Cooling as a Service (“CaaS”) in Flora Plaza and adopting energy efficiency measures in One Hennessy and Nina Hospitality’s hotels and residences. We remain dedicated to pursuing further opportunities for green transformation and reducing our environmental impact.
Advancing Renewable Energy Deployment
Increasing usage of renewable energy is essential for advancing our transition toward low-carbon operations. We are actively installing renewable energy systems, including solar photovoltaic (PV) panels, across our properties. For example, the solar PV panels installed at Nina Tower generated 28,681 kWh of renewable energy during the Reporting Period. Furthermore, we acquired 99,875 kWh of Renewable Energy Certificates (“RECs”) from local providers, a 97% increase compared to the previous year.
To raise our clean energy consumption, we will continue to identify opportunities to grow renewable energy generation across our portfolio and secure off-site renewable electricity options wherever feasible.
28,681 kWh
Of renewable energy generated during the Reporting Period
167% increase
Compared to the previous year
99,875 kWh
Of Renewable Energy Certificates acquired from local providers
97% increase
Compared to the previous year
Nina Tower Zero-Carbon Chiller System Replacement
Since 2023, we partnered with a local energy provider to introduce Hong Kong’s inaugural zero-carbon chiller system at Nina Tower. Utilising cutting-edge technology, the advanced water-cooled air conditioning system incorporates Artificial Intelligence (“AI”) for efficient management, continuous real-time monitoring, and round-the-clock onsite maintenance. This setup not only provides energy-efficient air conditioning services for the entire complex but also leads to a significant reduction in carbon emissions.
The primary enhancements include transitioning from air-cooled to water-cooled chiller systems, for reduced energy consumption, water recycling for flushing to conserve resources and integrating advanced control technologies like AI and machine learning to optimise chiller performance.
These advancements are estimated to cut annual energy usage by up to
45%
Slashing approximately
6,300 tons of CO2 emissions
Yearly equivalent to planting
274,000 trees
Another environmentally conscious upgrade involves using the eco-friendly refrigerant, which has a significantly lower impact on the environment compared to the standard refrigerant. Besides operational sustainability, green practices extend to the construction phase, with the adoption of MiMEP practices and BIM to prefabricate key components off-site, ensuring precise installation and minimising construction waste.
Cooling as a Service at Flora Plaza
In a collaborative effort, the Group joined forces with a local energy provider and a property developer partner to launch a new Cooling as a Service initiative at Flora Plaza in Fanling. Expected to boost energy efficiency by 50% and cut electricity use by 15%, the new system will save 500,000 kWh annually, equivalent to powering 160 households or reducing 200 tonnes of carbon emissions. The AI-managed PlantPRO system ensures optimal cooling adjustments based on data and indoor conditions, enhancing Flora Plaza’s shopping experience and the Group’s sustainable development efforts.
Enhancing Energy Efficiency through Strategic Measures
To drive energy efficiency and sustainability in our properties, including One Hennessy and Nina Hospitality’s hotels and residences, we have introduced a comprehensive set of initiatives. These include the deployment of a sophisticated building management system, installation of occupancy sensors in closets to optimise lighting usage, transition to energy-efficient LED lighting solutions, implementation of charter governing external lighting, adoption of high-efficiency water pumps, utilisation of water-cooled chillers for enhanced cooling efficiency, and the incorporation of a high-efficiency lift system.
Sustainable Waste Handling
We understand the vital need to minimise waste and are committed to reshaping our business methods to align with a circular economy. Our waste reduction efforts extend beyond project design and construction. We are committed to implementing strategies to prevent waste in our operations and utilising digital tools and technologies to minimise resource consumption and actively reduce waste. Besides reducing waste within the Group, we also understand the importance of creating positive impact outside the Group. For example, the REACT Campaign carried out a range of community engagement programmes, aiming to educate and empower the public on waste reduction, recycling practices, and to promote shift towards more environmentally friendly habits.
Performance Highlights
Paper Reduction Strategies
In line with our digital transformation journey, we have initiated several programmes to phase out traditional paper-based processes, including utilising the Intelligent Property Management System (“iPMS”), adopting eco-friendly products and practices. These initiatives aim to enhance productivity and significantly cut down on paper usage within our operations.
To reduce paper usage in the workplace, we implemented the iPMS, which marks a significant advancement in our approach to managing office buildings. This system facilitates the generation of paperless work orders for maintenance assignments, thereby decreasing the volume of physical paperwork in our operational processes.
To facilitate paperless workflows and improve material stocking, we have upgraded the functionality of the Electronic Request and Approval Platform (“eRAP”). This enhancement allows for the completion of additional administrative tasks online, including expense reimbursement.
Besides reducing paper in workplace, we also took steps to reduce paper usage when serving our visitors. In collaboration with a sustainability marketing agency, NINA MALL launched an event called the “Easter Wonderland” with paper easter eggs made by recycled paper. This initiative transforms the mall into a captivating playground made from sustainable materials, offering families an interactive and enjoyable experience. A total of 38 kg paper was successfully recycled, resulting in a reduction of 182.4 kg of greenhouse gases. This event not only delivered our visitors a memorable experience but also reinforces our pledge to environmental responsibility.
Recycling Food Waste
Food wastage plays a considerable role in the waste stream directed towards landfills in Hong Kong. During the Reporting Period, we managed to divert over 167 tonnes of food waste from ending up in landfills, a 38% increase compared to the previous Reporting Period. This conscientious effort of redirecting food waste resulted in the reduction of a significant quantity of greenhouse gas emissions. For example, we encourage our guests to bring their own reusable containers to take home any excess coffee grounds at our buffet restaurants for personal use, thereby reducing food waste and promoting eco-friendly practices.
Managing Plastics
At Nina Hospitality we strive to reduce plastic waste to protect the environment. To achieve this and to align with the Hong Kong government’s Product Eco-responsibility Ordinance, which prohibits hotels from offering free disposable plastic toiletries, Nina Hospitality started providing eco-friendly alternatives as our standard amenities. As part of our sustainability efforts, our hotels replaced bottled water with canned water and carboy water in April 2024, in line with our hotel renovation plan and the schedule approved by the Water Supplies Department, Hong Kong SAR Government. Furthermore, Nina Hotel Kowloon East planned to replace bottled water with water dispensers and water towers in August and September 2024. Besides reducing plastics from water bottles, all our hotels have installed umbrella drying machines since 2023 to further reduce environmental impact and promote eco-conscious practices. To reduce plastic waste from food containers, we have launched the BYOC Campaign, aligning with the “Plastic Free Takeaway, Use Reusable Tableware” Campaign led by the Hong Kong Environmental Protection Department, to encourage environmentally conscious practices among our guests. By participating in this initiative, customers who bring their own containers when ordering takeout from our restaurants can enjoy discounts on food and beverages.
Involving Stakeholders in Our Waste Reduction Initiatives
The Group is dedicated to fostering waste reduction and community engagement through various initiatives. In collaboration with Global Cheer, a cleaning service arm of the Group, we have hosted multiple used goods exchange events at Pictorial Garden. These gatherings allow locals to swap specific unwanted items for goods provided by the recycling operator, fostering a culture of reusing and resourcefulness. We also organised festive recycling events that focus on collecting seasonal waste, such as mooncake tin boxes and red packets, from residents and tenants across several properties. As of September 2023, we have collected 552 mooncake boxes in 24 buildings. The collected items are then transported to designated recycling facilities for responsible disposal and processing. These initiatives not only help to reduce waste but also encourages community interaction and environmental awareness.
Water Conservation
We prioritise water conservation efforts within our business, despite its minimal impact on local water resources. Our commitment to the collective responsibility of preserving water and averting scarcity is unwavering. To this end, we vigilantly monitored water consumption in our buildings and have implemented various water-saving mechanisms. These initiatives encompass installation of water meters, water flow regulators, automatic taps, and water-saving showerheads. Furthermore, we modified landscape irrigation schedules to reduce evaporation. As part of our efforts to promote a culture of water conservation, we proactively educate our colleagues, tenants, residents, and hotel guests about the significance of preserving water.
Nina Hospitality promotes sustainable practices by incorporating a message card in hotel rooms. This card enlightens guests about the hotel’s water conservation initiatives and provides guidelines on engaging in the linen and towel reuse programme. Our goal is to decrease water and energy usage and encourage guests to participate in our sustainability endeavours.
Performance Highlights
2 During FY2023/24, our water intensity increased by 10.2% compared to the previous Reporting Period, mainly due to the increase of guest room nights of our hotels by over 30% compared to FY2022/23.
Sustainable Sourcing
As a community developer with varied operations, we recognise our impact across the value chain. We work closely with suppliers and business partners to integrate sustainability at every level. During the Reporting Period, we updated the Group’s sustainable procurement guidelines to align with Environmental Protection Department, Hong Kong SAR Government Green Procurement standards. Alongside our departmental Standard Operating Procedures (“SOP”) for Procurement, we strive to enhance our sourcing practices in purchasing, design, and construction processes, prioritising local suppliers to reduce our carbon footprint.
Sustainable Cuisine and Delicacy
Food sustainability has been a major environmental concern, and the Group is committed to offering delicious dishes that embody sustainability. Our Cantonese cuisine restaurant, RÚ, adopts the sustainable development concept by primarily using local ingredients, thereby supporting environmental protection efforts.
The restaurant’s menu features an extensive selection of 90 meticulously crafted dishes, including sustainable seafood, vegetarian choices, and farm-to-table creations. We prioritise using local ingredients such as hydroponic vegetables, free-range chicken and eggs, farmed Sabah fish, and canned crab meat, which are more environmentally friendly options. Endangered seafood species are excluded, supporting our commitment to sustainable procurement. Many of our restaurants source sustainably in alignment with WWF guidelines. Additionally, we have recently partnered with the Lever Foundation, a non-profit organisation, to ensure that all Food and Beverage operations at Nina Hospitality exclusively use cage-free eggs by 2025.
