New World Development Company Limited ("NWD", the "Company" or the "Group", Hong Kong stock code: 00017) announced today that the Company has become the third real estate developer in Asia to receive the Science Based Targets initiative's (SBTi) approval of its near-term 1.5°C aligned science-based targets (SBTs) and commit to the SBTi Net-Zero Standard, which will include setting long-term company-wide emission reductions in line with reaching science-based net-zero by 2050.
Continuing its commitments to the Business Ambition for 1.5°C and the United Nations Framework Convention on Climate Change (UNFCCC) Race to Zero campaign, this milestone marks the Company’s clearly-defined path to reducing carbon emissions in line with the Paris Agreement goals, aiming to mitigate the worst impacts of climate change and increase resilience as a future-proof business.
The near-term SBTs cover the Company’s major properties and construction activities in Hong Kong and the Chinese mainland. The Company has committed to reducing absolute Scope 1 and 2 greenhouse gas (GHG) emissions by 46.2% by FY2030 from a FY2019 base year, Scope 3 GHG emissions from capital goods by 22% per sqm of construction floor area by FY2030 from a FY2019 base year and Scope 3 GHG emissions from downstream leased assets by 29.8% per sqm of gross floor space within the same timeframe.
Since 2018, the Company has been working towards New World Sustainability Vision 2030 (SV2030), referencing the United Nations Sustainable Development Goals with four pillars: Green, Wellness, Smart and Caring. SV2030 Green targets include halving its environmental impact in energy and carbon emissions intensity from the levels in FY2015 across different business units. In January 2021, NWD launched its Renewable Energy Roadmap to support its transition to a low-carbon economy through Scope 2 emissions reduction, charting a path towards adopting 100% renewable energy in its Greater Bay Area rental properties by end of FY2026 and 100% renewable energy for all Greater China rental properties by end of FY2031.
The Company has been striving to accelerate its decarbonisation plans by integrating climate-related initiatives and actions into its full property lifecycle, from climate risk management, policy, design and enhancement works to operations. As an early supporter of the Task Force on Climate-related Financial Disclosures (TCFD), NWD has developed and implemented Climate Resilience Guidelines integrating various climate mitigation and adaptation measures at various stages of development, including design, major refurbishments and construction activities.
Meanwhile, to address demand-side energy use from tenants, the Group launched the Creating Shared Value Lease (CSV Lease), an industry-first tenant engagement initiative with a direct-to-employee incentive programme to scale up the benefits of sustainable operation via innovation and knowledge exchange.
Since February 2021, NWD has been committed to the Business Ambition for 1.5°C, a global call to action from the United Nations as well as business leaders for climate change mitigation under the Paris Agreement. With this net-zero commitment, the Company is further answering the SBTi's urgent call for corporate climate action by taking its first step towards developing a net-zero strategy and establishing long-term targets that are aligned with the SBTi's net-zero criteria by end of FY2024.