Chairman’s statement
Dear Stakeholders,
Sustainability issues faced by the world have become more challenging over the years. Through the Group sustainability strategy, SwireTHRIVE, we continued to accelerate our sustainability efforts in 2022, even though the ongoing impacts of the COVID-19 pandemic meant it was another challenging year. This ongoing commitment to sustainability reflects our long-term approach to business.
I am pleased to present the Swire Pacific 2022 Sustainable Development Report, which summarises our performance on key topics and details how we are further integrating climate-action, people-centric approaches into how we do business.
Climate leadership
Last November’s Climate Change Conference – COP 27, highlighted the need for urgent action to meet the ambitions of the Paris Agreement. The business community has a critical role to play in shaping this low carbon future. That is why we remain committed to cutting our operational carbon emissions in line with climate science. An 11% year on year group-wide reduction in absolute emissions is driven by our businesses making solid progress against their ambitious targets. We remain on track to halve emissions from our own operations by 2030 and are developing a decarbonisation roadmap to achieve net zero by 2050. Our progress on climate leadership was underscored by receiving a score of A- by CDP.
It is imperative that we prioritise carbon reduction where it matters most. Swire Coca-Cola and Swire Properties account for more than 80% of our Group’s scope 1 and 2 emissions. Both companies have set 1.5°C-aligned science based targets. Technology is integral to our companies’ decarbonisation plans. This year, Swire Coca-Cola achieved a 5% annual increase in the proportion of renewable energy used for its Chinese Mainland facilities. At year end, Swire Properties had achieved a 28% scope 1 and 2 emissions reduction compared to its 2019 baseline. With the support of the Group’s Sustainable Development Innovation Fund, it has rolled out a Cloud-Based Smart Energy Platform and artificial intelligence system, across its portfolio, to model cooling demand that will facilitate further reductions.
Innovation will be a key tool in our low carbon transition. In 2023, we will pilot an internal carbon pricing (ICP) mechanism with our three largest operating companies, Swire Properties, Swire Coca-Cola, and HAECO. The use of our ICP will provide additional funding for significant decarbonisation projects and help to further embed the cost of carbon into our business planning. We will also continue to evidence our commitment to sustainability through pursuing sustainable finance opportunities. In 2022, sustainable finance represented more than 35% of our total financing.
As part of our journey, we will broaden our impact to include our value chain. This year we completed a scope 3 emissions assessment for all our operating companies. The assessment findings will feed into our net zero decarbonisation roadmap for 2050 and enable targeted action going forward.
People and community focus
Having a healthy and empowered workforce is critical to address the challenges we face, and to ensure our future sustainability and success. We have continued to uphold our promise of creating an inclusive, respectful, and supportive working environment. That’s why this year we built on our past commitments to promote gender equality by introducing a near-term target to achieve 30% of women on the Swire Pacific Board of Directors by 2024. At the time of writing, we have increased female representation on the Board from 14% in 2021 to 28%.
I am proud that our efforts have been externally recognised. For the second consecutive year Swire Pacific has been included on the Bloomberg Gender Equality Index. It is testament to the culture at Swire that our company and Swire Properties are two of only five Hong Kong listed companies to be represented on the Index, a third being our associate, Cathay Pacific.
The positive impact we have extends beyond climate action and workforce empowerment. Through the Swire Charitable Trust we continue to find ways to support our local communities. In 2022, the Trust disbursed HK$55 million, with over HK$15 million going to projects supporting COVID-19 relief efforts in Hong Kong. This is in addition to the HK$76 million contributed by our operating companies to programmes local to them.
Looking ahead
The actions we take now will determine the future we all will share. Across the pillars of SwireTHRIVE we are developing ambitious and achievable plans that consider both environmental and societal needs.
Challenges remain, but I am optimistic about the path that lies ahead. I am inspired by the progress we are making towards our targets; progress that is being delivered by our people across the Group, and to them I offer my heartfelt thanks.