16 Addressing climate change requires concerted efforts across the business spectrum, from multinational corporations to small and mediumsized enterprises (SMEs). Led by Prof. Alexis LAU, Head and Chair Professor of the Division of Environment and Sustainability, the research team has developed a cutting-edge calculator and estimator in collaboration with the Green and Sustainable Finance Cross-Agency Steering Group. These tools facilitate sustainability reporting for corporates and financial institutions in Hong Kong. Understanding the limited resources of small and medium-sized enterprises to engage sustainability experts, these user-friendly tools are publicly available on the Group’s website that empower businesses with the means to accurately calculate and manage their environmental footprint, supporting the transition to a more sustainable future. Currently, the calculator covers Scope 1 and Scope 2 greenhouse gas (GHG) emissions. Scope 1 refers direct GHG emissions, including stationary combustion emissions, mobile emissions, and fugitive emissions. Scope 2 represents indirect emissions resulting from the purchase of electricity and gas. Division of Environment and Sustainability Greenhouse Gas Emissions Calculation and Estimation Tools to Drive Forward Sustainability Reporting in Hong Kong In today’s world, investing in environmentally responsible companies is of paramount importance. However, accessing a company’s public data on GHG emissions can be challenging.The estimator enables users to estimate a company’s emissions even when sufficient data is unavailable, assisting financial institutions, banks, and investors in making investment and lending decisions based on a company’s potential GHG emissions. Benchmarking capabilities will be introduced in the next stage of the development, allowing companies to understand their competitive standing in terms of industry-wide emission performance. Over time, when the system is utilized by more entities, the dataset will become more robust, enhancing the estimator’s accuracy and reliability as a tool for estimating GHG emissions. The impact of this research extends beyond individual companies to society. By empowering businesses to gauge the GHG footprint of their investees or borrowers, these tools help promote transparency and accountability in sustainability practices, a new element of corporate governance in the era of climate change.
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