The first CK Hutchison Climate Action Conference took place in February, assembling the global leadership of the CK Hutchison Group. Their mission was clear and it came from the top. Victor T K Li, Chairman of the CK Group, committed the Group to the pursuit of net-zero status on greenhouse gases (GHGs) by 2050. The wheels are already turning. As Mr Li said in this year’s Sustainability Report, “2022 was a defining year in the Group’s approach to action on climate change.”
Commitment and clear vision demand accountability. Frank Sixt, the Group Finance Director and Deputy Managing Director of the Group is responsible for adding up the numbers across the Group. But as the Chairman of the Sustainability Committee, he also adds up the carbon footprint of CKHH companies with an eye to shrinking it to achieve our emissions reduction plans.
Mr Sixt articulated a clear statement of purpose: “We need to do the right thing; it’s not optional.” There are many good reasons to run the Group with the highest ESG (environmental, social and governance) standards, from employee and customer engagement to using ESG as a lens for new business opportunities. From Mr Sixt’s financier perspective, he pointed out that debt and equity capital markets’ interest in ESG has “catapulted” in recent years.
But at the heart of it, it's the right thing to do.
Chairman of the CK Group committed the Group to the pursuit of net-zero status on GHGs by 2050.
The maxim “if it matters, measure it”, applies here in spades. The Group has announced new emissions reduction targets including reducing emissions by 50% by 2035 versus a 2020 baseline, as well as the long-term pursuit of net-zero emissions across its value chain by 2050.
Net zero is the idea that a company (in this case) can zero out its greenhouse gas emissions. This can be by reducing energy generated from carbon-emitting sources, reducing materials and energy use in processes or, perhaps in the future, through carbon capture. Organisations can also use carbon offsets (for example, paying for tree planting) to remove carbon from the atmosphere to balance out emissions caused as part of conducting business.
Several of the Group’s core businesses have also committed to having their underlying targets validated as science based by the Science Based Targets initiative (SBTi). Targets are considered science based if they align with the latest climate science assessment of what is necessary to meet the goals of the Paris Agreement, specifically pursuing efforts to limit global warming to 1.5°C.
Companies can have an impact across Scope 1, 2 and 3 emissions. Scope 1 emissions are those generated directly by companies, eg, emissions associated with fuel combustion in boilers, furnaces and vehicles. Scope 1 also includes “fugitive emissions” from refrigeration, air conditioning, fire suppression equipment and industrial gases. Disposal of these units often releases potent GHGs, such as hydrofluorocarbon (HFC), into the atmosphere.
Scope 2 emissions are indirect emissions from purchased electricity, steam, heat and cooling.
Scope 3 targets require companies to work upstream, with suppliers and partners, and downstream, with their customers and investees, as they try to reduce their entire value chain emissions impact.
Edith Shih, Executive Director and Company Secretary of CK Hutchison, led the discussion among senior leadership from Hutchison Ports, CK Hutchison Group Telecom and A.S. Watson.
Hutchison Ports’ massive operations give it a unique opportunity and responsibility to influence not only its own emissions but also those of a range of transportation partners across the multi-modal spectrum. As pointed out by Clemence Cheng, Executive Director, Hutchison Ports; Managing Director, Europe; Chief Executive Officer, HPUK & Port of Felixstowe, they can contribute to reducing the Scope 3 emissions of their customers (like shipping lines) as well as their Scope 1 and Scope 2 emissions. Indeed, customers are demanding it.
Working off a base of 2021 emissions, Hutchison Ports expects to reach net zero by 2050. They are reducing Scope 1 emissions by replacing diesel-powered port equipment and vehicles with electric alternatives (or other clean energy equivalents). They are also replacing mobile diesel generators with electric power supply from local electricity grids.
Hutchison Ports established a policy to eliminate the purchasing of diesel-powered internal movement trucks by 2024. Currently, over 60% of their rubber-tyred gantry cranes are already electric. Other measures such as providing shore power to vessels berthed at ports will reduce those vessels’ emissions.
Hutchison Ports’ massive operations give it a unique opportunity and responsibility.
Smartphones are omnipresent in the lives of people in modern economies, but endless cycles of charging phones and reliably zipping megabytes through the air uses massive amounts of energy.
Benoit Hanssen, Co-CEO of Wind Tre, said that increasing demand is only going to mean increasing energy usage – up to 40% more once a system delivers the benefits of 5G technology. In Italy, Wind Tre is among the top 10 of all Italy’s energy consumers, serving about one-third of all Italian people and businesses. They can trade green certificates with companies with a surplus of green energy. They are aiming to produce more of their own green energy (eg, via small solar photovoltaic (PV) farms) and are using almost 30% renewable energy at present. The target is net zero by 2030.
Robert Finnegan, CEO of 3 UK and 3 Ireland, said interest from investors picked up dramatically two years ago, along with customers and 3 employees, where there is particular interest from millennials. 3 UK and 3 Ireland are targeting energy usage in their radio antennae networks and data centres. Replacing 2G and 3G networks with 4G networks also helps a lot; 4G is 4.7 times more power efficient than 3G.
There is particular interest [in energy efficiency] from millennials.
A.S. Watson has a huge, multifaceted business with a strategy in place to address GHG emissions across Scopes 1, 2 and 3. From headquarters to warehousing to retail outlets, energy must be saved and product impact considered and addressed. Malina Ngai, Group COO of A.S. Watson and CEO of A.S. Watson (Asia & Europe), outlined how the retail group is tackling emissions at each level across more than 16,300 stores (and climbing) off a 2018 baseline. But 94% of the group’s emissions are accounted for in Scope 3; that means that the bulk of work will need to be done with suppliers and post-sales (ie, with customers).
Delivery trucks and refrigeration units are major contributors to Scope 1 emissions which need to be measured and urgently reduced. The use of greener refrigerants and electric vehicles (EVs) will be crucial here. It also means switching to renewable energy sources in the retail group's European business units.
Scope 2 means delivering on energy efficiency in stores, warehouses, manufacturing plants (eg, Watsons Water) and offices. A.S. Watson is targeting a 50.4% reduction in Scope 1 and 2 emissions by 2030.
Scope 3 is ‘the Big One’ for A.S. Watson. Around 200 larger suppliers, representing 80% of Scope 3 emissions, will be the main partners for collaborating to reduce GHG emissions. Suppliers are expected to show how they are using greener transportation, greener refrigerants and greener energy (including improved efficiency) from a science-based starting point. For products, it means reducing packaging waste, using recycled content or innovative means such as using plant-based packaging. Watsons will need to favour those suppliers that can deliver on achieving SBTi targets. Downstream, a wide range of in-store measures are promoting green behaviour by customers and the recycling of products.
Watsons: 94% of the group’s emissions are accounted for in Scope 3; that means that the bulk of work will need to be done with suppliers and customers.
For over 60 years, ista has worked with companies to help them measure their usage of energy, water and other consumables so that they can target reduction of these inputs.
Digitisation, automation and EV adoption enable companies to tackle Scope 1 emissions. Scope 2 emissions can be addressed by either using renewable energy or securing offsets from other companies with a surplus of generated green power. Scope 3 emissions in "last mile" maintenance of equipment can be diminished through digitisation and remote monitoring, thereby reducing support costs and eliminating travel time to check readings.
Recently, ista has worked with A.S. Watson’s Superdrug, Savers and The Perfume Shop to reduce energy and water usage.
Mr Sixt made it clear: “We can’t be on the back foot” when it comes to addressing the Group’s contribution to climate change and global warming. CEOs of all major business units have GHG emissions reduction as a major goal. Customers, investors and employees that are the driving force behind CK Hutchison all live together on one planet; together we can create the future we all want to see.
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COVID-19 may be invisible to the eye, but not to scientists working with Northumbrian Water to trace its spread by sampling wastewater.
Team Watsons Water got creative and worked round the clock to deliver life-saving PPE to Hongkongers.
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The high-pressure crucible of Hong Kong’s shopping environment seems like it would leave little room for learning among retail professionals. But A.S. Watson’s commitment to higher performance creates opportunities for promising staff to elevate their game at its very own Retail Academy.
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Vanishing bee populations are a major problem for global agriculture. 3 Austria’s 5G network is a key part of a tech solution that puts beekeepers ‘inside’ their hives to solve problems for Man’s invaluable helpers.
Port of Felixstowe’s 5G plans not only put the power of massive dockside cranes in the delicate digits of desk-driving derrick directors, but also connect a legion of sensors to help train AI that could save Hutchison Ports millions of pounds in maintenance efficiency.
5G is a platform to build dreams on and 3 Hong Kong is helping dreamers to climb on board. It works with small businesses and the community to help them overcome COVID-19 challenges and to unite their artistic vision, with an eye on the stars.
The Port of Felixstowe is leading the hydrogen revolution building in the UK. It aims to transform not only its own operations but the regional eco-economy too. First, the Port – then trains, trucks and homes will follow.
The UK aims to decarbonise the entire rail network. Eversholt Rail, a UK rail company, is leading the way in providing zero-emission hydrogen-powered trains for the UK. Trainspotting is about to get a whole lot greener.
Australian Gas Infrastructure Group is proving itself a public ally by greening the gas supply of Australian homes and taking the first steps to deliver 100% emission-free hydrogen to replace gas.
Watsons’ ninth-generation store design ethos is transforming stores into experiential spaces, making the most of their O+O strategy and aligning Watsons with customers’ green hearts. Delivering human connection and a commitment to environmental stewardship is incorporated into features in stores from Hong Kong to Türkiye.
Designing 21st-century ports requires that operators cater to the demands posed by increasingly enormous container ships. Use of autonomous vehicles and AI cranes and vehicles drives efficiency. The complex dance of goods and containers at a modern port only happens when designers set the stage for success.
Power plant design demands that everyone — from staff and neighbours to dolphins and birds — is kept safe. HK Electric and Canadian Power may be an ocean apart, but both have ingenious design elements and technology that enable them to take on explosive fuels and turn them into a safe stream of electricity, powering people’s lives and entire economies.
The promise of telemedicine is being delivered by A.S. Watson from the UK to Asia. Patients can jump the queue to see doctors in minutes and get home delivery of medicines. The days of reading year-old magazines at the doctor’s clinic are done – online medicine is being delivered NOW!
PharusDx, a CK Life Sciences and CK Hutchison investee, is developing a test that would provide fast, accurate diagnosis of not one but multiple types of cancer – all from a single blood sample. And it is using AI to do it.
HUTCHMED’s global Phase III registration trial of its colorectal cancer-fighting drug, fruquintinib, aims to gain the regulatory approvals needed to bring it to cancer patients around the world. A 14-country study is the next step in bringing new options to doctors and new hope to families struggling with cancer.
CKHH companies are enacting adaptive strategies to mitigate climate change, including leading the charge in the hydrogen revolution. Day 2 of the Global Climate Action Conference explored how CKHH companies deal with climate-change extreme events and how they are transitioning to climate-friendly energy generation.
CKHH companies aren’t just spending money on traditional renewable energy – they are investing in original R&D to bring innovative solutions to bear. Pilot projects advance to become invaluable solutions to mass adoption of green technologies that just might save us all.
Hutchison Ports is revolutionising port operations by welcoming a new family – Veronica and
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The answer is CKDelta.