New greenhouse gas emissions calculation and estimation tools to support sustainability reporting
The Green and Sustainable Finance Cross-Agency Steering Group (Steering Group) and the Hong Kong University of Science and Technology (HKUST) today launched two greenhouse gas emissions calculation and estimation tools (GHG emissions tools) to facilitate sustainability reporting by corporates and financial institutions in Hong Kong (Note 1).
With clearly disclosed methodologies and data sources, the tools will enhance the availability and quality of sustainability-related data in the real economy and support decarbonisation efforts by the private sector.
The new tools, available for free public access on the website of the Steering Group, include:
- a calculation tool that enables users, especially small and medium-sized enterprises (SMEs), to calculate their own GHG emissions based on actual activity levels; and
- an estimation tool that enables users, primarily financial institutions, to estimate the GHG emissions of their investees or borrowers where data of underlying companies is limited.
Ms Julia Leung, Chief Executive Officer of the Securities and Futures Commission (SFC), said:
"These new tools feature easy navigation and are catered for the local market. They do not only reference widely adopted international standards, but also incorporate Hong Kong and Mainland elements and data in the calculation and estimation modelling. We encourage market participants to make use of the tools to improve sustainability practices and enhance market transparency."
Prof. Alexis Lau, Director of the Institute for the Environment at HKUST, said:
"Addressing climate change requires concerted efforts across the business spectrum, from multinational giants to SMEs. At HKUST, we've designed these GHG emissions tools specifically with SMEs in mind, ensuring it is practical, user-friendly, and tailored to the specific data and regional contexts they navigate. These tools equip businesses with the means to accurately calculate and manage their environmental footprint, propelling us all towards a more sustainable future."
Prof. Christine Loh, Chief Development Strategist of the Institute for the Environment at HKUST, said:
"These easy-to-use tools represent an early step by Hong Kong to assist SMEs to periodically estimate their carbon footprints so that they can disclose it to stakeholders. In the era of climate change, making such data transparent across the economy is becoming a new element of corporate governance. It is vital that these tools are widely promoted, as their success lies in broad usage."
Note:
- Established in May 2020, the Steering Group is co-chaired by the SFC and the Hong Kong Monetary Authority. Members include the Accounting and Financial Reporting Council, Environment and Ecology Bureau, Financial Services and the Treasury Bureau, Hong Kong Exchanges and Clearing Limited, Insurance Authority and the Mandatory Provident Fund Schemes Authority. For details on the initiatives of this Steering Group and its members, please visit https://sustainablefinance.org.hk/en/.
