2018 Sustainability Report


Task Force on Climate Related Financial Disclosures

Swire Pacific communicates its approach to climate change mitigation, adaptation and resilience in accordance with its Climate Change Policy.

In 2018, we started to align our disclosures with those recommended by the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board. There are four categories – governance, strategy, risk management and metrics and targets to ensure consistency and utility of our information for investors, insurers and other stakeholders.


  • The Board oversees the management of risk, including sustainability risk. We use an enterprise risk management system. The audit committee identifies, analyses and reviews risks. We have corporate risk registers, in which climate change has been identified as an emerging risk.
  • The chairman, divisional chief executives and the finance director meet twice a year to consider SwireTHRIVE and sustainability risks, opportunities and targets.
  • The division heads’ meetings provide direction and oversight to the SGSC, which comprises divisional sustainability heads and is chaired by an executive director of Swire Pacific. SGSC meets three times a year. In accordance with its terms of reference, it has the following responsibilities related to climate change:
    • To oversee, amend and implement SwireTHRIVE (including in relation to carbon and climate resilience) and sustainability policies
    • To report on sustainability to the GRMC (including about emissions and energy use)
    • To report to the Audit Committee on compliance with sustainability policies and on the Group’s sustainability work (including in relation to climate change)
    • To review legislative, regulatory and other public sustainability developments and to report them to relevant committees of the Board
  • We have adopted a Climate Change Policy to guide our management approach and strategy on climate change mitigation, adaptation and resilience.
  • In our 2018 stakeholder engagement exercise, greenhouse gas emissions, climate resilience and management of water resources were identified as the sustainability issues most material to our business. Emissions and climate change were identified as emerging risks. SwireTHRIVE focuses on these issues.


  • Climate changes carries risks for our business. Flooding, extreme weather events and increasing temperatures can adversely affect our assets, operations, employees and suppliers. There are regulatory, market and reputational risks.
  • Climate change is an opportunity to develop low carbon and climate-resilient businesses and by so doing to meet the demand for the products and services of such businesses and to reduce insurance and other costs. Climate change stimulates business innovation and experimentation and facilitates the transition to a lower carbon economy.
  • This is what we are doing to make our businesses more resilient to climate change:
    • Swire Properties’ new buildings are energy efficient, low users of carbon and certified as green
    • Cathay Pacific is a member of the Round Table on Sustainable Biomaterials and of the Sustainable Aviation Fuel Users Group Asia. It has a minority stake in Fulcrum BioEnergy Inc., which converts municipal solid waste into sustainable aviation fuel
    • Swire Coca-Cola uses independent third parties to assess water risk for each of its bottling plants, so as to form Source Vulnerability Assessments. The findings are integrated into Source Water Protection Plans at each facility and are regularly reviewed
    • Swire Pacific Offshore wants to decarbonise by using marine versions of alternative fuels. With Nanyang Technological University, it is researching the viability of hydrogen fuel cell technology
  • We are starting a study intended to identify the key risks and opportunities posed by climate change to our assets and business operations.
  • As part of SwireTHRIVE, we have targets for the reduction of our carbon use. Swire Properties intends to develop a science-based target for carbon use.
  • We have partnered with Tsinghua University’s Joint Research Centre for Building Energy Efficiency and Sustainability since 2011. Together we develop and test methods to increase energy efficiency and improve environmental performance in our businesses. The collaboration began with Swire Properties and HAECO and now includes Swire Coca-Cola. It continues to generate substantial energy savings.
  • In 2018, Swire Properties issued a 10-year US$500 million green bond. The proceeds are intended to fund projects relating to renewable energy, energy efficiency and climate change adaptation. The environmental impacts of the green projects funded by the bond proceeds have been described in Swire Properties’ first Green Bond Report.

Risk Management

  • In accordance with TCFD recommendations, we are assessing how vulnerable our businesses are to flooding, heat stress, water stress and extreme weather events. The findings will be incorporated into our ERM process.
  • Our business continuity plans include plans for business continuity when extreme weather events happen. Our property division has also put in place local crisis response plans for all its property portfolios.
  • Through the ISO 14001 Environmental Management System and ISO 50001 Energy Management System, we manage our daily operational risks related to climate change, carbon and energy management.
  • We support the efforts of the Hong Kong Business Environment Council to promote awareness of climate change in the business community.

Metrics and Targets

  • Since 2006, we have been measuring and reporting our energy consumption and our Scope 1 and 2 carbon emissions from our operations in accordance with global standards, including the GHG Protocol.
  • Our aviation and property businesses have had reduction targets for a number of years.
    • Cathay Pacific has set a target to improve its fuel efficiency by an average of 2% per annum by 2020 and to achieve carbon neutral growth thereafter. This exceeds the 1.5% agreed industry target
    • Swire Properties has set targets to reduce (i) the annual energy consumption of its Hong Kong and Mainland China properties by 64 million kWh and 23 million kWh respectively and (ii) the carbon intensity of its Hong Kong and Mainland China properties by 27% and 21% respectively, in each case by 2020 and by reference to relevant baselines
    • In 2018, Swire Properties committed to the Science-Based Targets initiative (SBTi) and began work on establishing science-based targets in accordance with SBTi criteria
  • In 2017, our operating companies set targets to reduce carbon intensity by 8-10% by 2020, in each case by reference to a 2015 frozen efficiency baseline (from which performance is projected with the assumption of no improvement in current efficiencies).
  • We report on progress towards these targets in our annual sustainability reports.
  • To help us meet our targets we encourage the use of renewable energy in our operations. 12.87 million kWh of electricity was generated from renewable energy sources at Swire Properties, Swire Coca-Cola and HAECO Xiamen in 2018. The Swire Pacific sustainable development fund is available to support suitable renewable projects.