Climate | Swire Pacific Limited

Climate

The effects of climate change are increasingly impacting communities around the world. To avert the worst consequences of our rapidly changing climate, we need to limit global warming to 1.5°C and transition to a net zero carbon emissions economy by 2050.

Swire’s businesses will be affected by climate change directly and indirectly through governmental and regulatory mitigation and adaptation responses. Decarbonising the Group’s business activities in all the sectors where we operate is a strategic imperative. We must also reduce value chain emissions and strengthen our resilience to climate impacts.

Governance

SwireTHRIVE’s three environmental pillars – climate, water, and waste - are overseen by the Swire Group Environmental Committee. A Climate Working Group supports the implementation of our Climate Change Policy and the delivery of our climate change related targets and commitments. A Task Force on Climate-related Financial Disclosures Working Group, comprising sustainability, finance, and risk team members, is responsible for reviewing information about climate risk and developing Group disclosure guidelines.

Task Force on Climate-related Financial Disclosures

Climate Change Policy

Targets

We are committed to playing our part in limiting global temperature rise to 1.5°C, in line with the Paris Agreement. Progress requires technological advancement, mature markets, and an enabling policy environment. Our strategy is to support their development. Each of our businesses has individual targets aligned with science, nationally determined contributions, or international industry commitments.

Swire Properties and Swire Coca-Cola have set science-based targets aligned with the 1.5°C pathway and approved by the Science Based Targets Initiative (“SBTi”). Both companies have signed up to Business Ambition for 1.5°C.

SwireTHRIVE - Climate

2030 target

↓50%

Scope 1 and 2 emissions compared with 2018 baseline

2050 target

Net zero emissions

SwireTHRIVE - Climate

2030 target

↓50%

Scope 1 and 2 emissions compared with 2018 baseline

2050 target

Net zero emissions

Our approach

Achieving our ambition of net zero emissions will not be easy. We operate and invest in some carbon intensive and hard to abate sectors, including aviation, which will be difficult to decarbonise without breakthroughs in alternative fuel technology. Verified carbon offsets will form a part of our strategy, particularly in the aviation sector, where low-carbon solutions are not yet available at scale. However, our priority is to reduce GHG emissions wherever possible.

In addition to investments already made by our businesses, we are implementing two key tools to finance and accelerate emissions reduction. Since 2019, our HK$100 million Sustainable Development fund has supported trials of innovative green technology solutions, with a view to expediting their adoption at scale. In 2022, the Board approved Internal Carbon Pricing (“ICP”) which is being piloted in 2023.

To reduce emissions, we are: