In recent years, the business community in Hong Kong has paid more and more attention to environmental, social and governance (ESG), and ESG has gradually become the mainstream strategy of the financial market and the operating standard of enterprises.
Henderson Land (0012), one of the leading local developers, has started to promote ESG many years ago, and it is even ahead of its peers in its emphasis on healthy buildings.
In an exclusive interview with "Hong Kong 01", Henderson Land Development Chairman's Office Consultant Yu Zhengren said that adding ESG elements to the project will definitely increase construction and other related costs, but he believes that the benefits far outweigh the cost considerations, and will affect the company's brand image and stock price in the long run. would be beneficial.
The Hong Kong government earlier released the "Hong Kong Climate Action Blueprint 2050", which aims to reduce the electricity consumption of commercial buildings in Hong Kong by 30-40% compared with 2015, and the electricity consumption of residential buildings by 20-30% by 2050 or before.
Yu Zhengren pointed out that building electricity accounts for 90% of Hong Kong's total electricity consumption and produces more than 60% of carbon emissions. Air-conditioning is the biggest culprit, accounting for 24% of commercial energy consumption. Therefore, building energy conservation and emission reduction is very important. It is critical that Hong Kong achieves net zero emissions.
Before the epidemic, health elements were added to commercial and residential properties
He pointed out that Henderson has always been concerned about the issue of climate change, and started to use sustainable building materials from the construction process many years ago.
Before the outbreak of the epidemic, Henderson had injected healthy elements into buildings and built healthy buildings. For example, H Zentre, a commercial project in Tsim Sha Tsui, is the first development project of the group themed on healthy life. Medical centers and clinics provide ideal places to work.
In fact, many investors nowadays will consider the ESG rating of the investment object before making an investment decision, so as to make a sustainable investment decision.
Even when choosing a location for a business, it will take into account the performance and effectiveness of the property in terms of ESG.
Yu Zhengren pointed out that many large international companies will require that the commercial properties rented must have ESG elements and have higher relevant certifications and ratings. Although the rent will increase relatively, it can save recurring expenses such as water and electricity in the long run.
As for housing, the public tends to pay more attention to the design of housing estates and clubhouse facilities. In particular, the younger generation will pay attention to the health and greening elements of housing estates, such as the ventilation system and non-contact functions of the property.
Taking the recently launched ONE INNOVALE residence in Fanling North as an example, Yu Zhengren pointed out that the project has two gardens. In addition to the butterfly garden, there is also a firefly habitat. The survival of fireflies is an indicator of whether the air and water quality are clean enough.
At the same time, the project also has air guide facilities to reduce the temperature through airflow and provide a more comfortable environment for the residents.
As for the interior of the property, a non-contact door opening system is provided, and the lifts and ceilings are equipped with automatic disinfection equipment.
The bricks and paints of buildings also have dust-proof functions.
In addition, Henderson has set to provide electric vehicle charging equipment for parking spaces in 90% of its new commercial and residential projects by 2030.
The Henderson ESG Partner Program
Among Henderson’s many projects, Yu Zhengren said that he is most satisfied with The Henderson, a landmark building in Central, because the project contains more ESG elements, such as the launch of the first ESG partnership program involving owners, tenants and employees. , to jointly achieve the data-based sustainable development goals.
These include encouraging tenants and their employees to practice ESG-friendly behaviors through reward programs, collecting data through a new generation of big data smart management platform, allowing tenants to effectively track, assess and quantify their ESG performance, assist in preparing ESG reports, and seize development opportunities.
Regarding the 2030 sustainable development vision established by Henderson, in April last year, the Group officially launched the four major elements of "GIVE", including Grenn for Planet, Innovation for Future, and Value for People. And sincerely for the community (Endeavour for Community), further deepen and promote the concept of ESG.
Regarding the introduction of ESG elements in development projects, it will increase costs to a greater or lesser extent. Yu Zhengren said that more or less increases vary from project to project. It is believed that this move is beneficial to the long-term property appreciation, which is beneficial to the company's long-term brand image and even the stock price.
Set up elite sports awards to promote transitional housing
In addition to "E" environmental protection, Henderson also attaches great importance to "S" and "G", namely social responsibility and corporate governance.
In terms of social responsibility, Yu Zhengren said that in 2018, with the support of donations from the Lee Shau Kee Foundation, Henderson established the "Elite Athlete Recognition Scheme", which has so far provided nearly 39 million yuan in cash rewards to Hong Kong athletes.
In addition, Henderson Land is the first developer in Hong Kong to support transitional housing, and has facilitated the largest transitional housing project in Hong Kong located in Kung Ha Wai, Yuen Long, providing nearly 2,000 units. The first phase was completed in the first half of this year.
As for the "Nanchang 220" transitional housing, it is the first transitional housing in Hong Kong to be assembled and constructed.
Henderson also promotes similar projects in Kam Tin and Ngau Tam Mei South.
As for corporate governance, Yu Zhengren pointed out that the Group's Sustainability Committee implements different strategies from top to bottom and from bottom to top. There are different groups under the committee, and employee representatives constantly discuss how to improve the company’s policies to meet ESG goals. For example, last year, the focus on biodiversity was added, and green materials were selected in procurement to maintain the ecological cycle system, etc. .
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