HKEX Achieves Carbon Neutrality By End Of 2024

Hong Kong Exchanges and Clearing Limited (HKEX) has attained carbon neutrality in its global operations by the end of 2024, a milestone in its sustainability journey. This milestone reflects HKEX's determination to minimize its environmental footprint and is part of its overall climate action plan. Being a major financial institution in the region, HKEX's achievement in reaching this milestone serves as an example to the broader business community and invites other businesses to pursue identical sustainability programs.

Paul Chow, HKEX Group Chief Sustainability Officer, underscored the significance of this milestone, explaining that it is a key step towards the company's long-term sustainability objectives. In marking this achievement, Chow noted that carbon neutrality is just the start of an even more extensive initiative towards net-zero emissions. Chow reiterated HKEX's commitment to not only reducing its own carbon footprint but also advocating for sustainable activities throughout the financial ecosystem and beyond.

One of the key drivers of HKEX's achievement of carbon neutrality has been its shift to renewable energy. Around 99% of the electricity consumed at its offices and facilities around the world is now derived from renewable sources. This was achieved through a mix of direct purchases of renewable electricity and the purchase of renewable energy certificates. By cutting its use of fossil fuels by a substantial amount, HKEX has been proactive in reducing its carbon footprint at the source.

But neutrality needed to be achieved by addressing the residual emissions that could not be reduced by using renewable energy alone. To balance out these residual emissions, HKEX purchased around 55,000 tonnes of high-quality carbon credits via its Core Climate marketplace. These credits came from Mainland China afforestation and revegetation activities, advancing reforestation activities that soak up carbon dioxide from the environment. Not only does this investment offset HKEX's emissions but also serves overall environmental gains in terms of preserving biodiversity and lands.

HKEX's sustainability initiatives go beyond its own business, as the company further propels systemic change through its leadership in the sustainability markets. Its Core Climate is one of its significant initiatives, an exchange that allows voluntary carbon credits to be traded in both Hong Kong Dollars and Renminbi. The platform is instrumental in serving businesses and investors wanting to enter carbon markets and in so doing, promote broader adoption of green practices across industries.

In the future, HKEX has ambitious objectives to further enhance its environmental footprint. HKEX plans to become a net-zero emitter by 2040, which aligns its business strategy with the 1.5°C target of the Paris Agreement to limit global warming. Moreover, from 2025 onwards, HKEX will introduce climate disclosures based on the International Sustainability Standards Board (ISSB) framework. These disclosures will promote transparency on the company's sustainability performance and provide accountability for its advancement toward long-term climate objectives.

Chow reaffirmed HKEX's unrelenting dedication to sustainability, pledging that the company will persist in decarbonizing its business, expanding its use of renewable energy, and developing partnerships that create lasting environmental impact. He stressed that achieving a low-carbon, resilient future needs collaborative efforts from companies, policymakers, and society as a whole. By setting an example, HKEX aims to encourage other institutions to put sustainability at the top of their agenda and support international efforts in the fight against climate change.

Since financial institutions have an important role to play in formulating economic and environmental policies, HKEX's success in achieving carbon neutrality illustrates the possibility of embedding sustainability in corporate strategy. Through its market position, the firm is not only lowering its own emissions but also facilitating others' involvement in climate solutions through pioneering platforms such as Core Climate.

The achievement of HKEX is a sign of increasing momentum in the business community toward business models that are sustainability-driven. With climate issues increasingly defining global markets, businesses that proactively minimize their footprint are likely to be well-placed for long-term success. For HKEX, this milestone is a demonstration of its commitment to creating a sustainable future, solidifying its position as a leader in the shift toward a low-carbon economy.