Within the built environment sector, environmental, social and governance (ESG) is high on the agenda and having a growing influence on investment decisions by real estate developers, the corporate sustainability plans of landlords and the demands of tenants.
The Stock Exchange of Hong Kong Limited (HKEX) continues to strengthen its ESG disclosure guidance for listed companies, driving continuous improvement in sustainable performance through information disclosure.
In 2020, it introduced an ESG reporting framework incorporating key recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD) on board governance and oversight of ESG and climate-related issues as well as disclosure of emissions reductions targets.
The HKEX subsequently enhanced its disclosure requirements in line with international standards. All large-cap companies (capitalisation value of more than $10bn) and main board listed companies were required to follow the ‘comply or explain’ principle for Scope 3 emissions performance (which covers embodied carbon emissions from construction) starting from 2025, whereas mandatory disclosure for all large-cap listed companies does not start until 2026.
The majority of property developers in Hong Kong are listed on the HKEX and these enhanced disclosure requirements are pushing them to improve their ESG performance, particularly on reducing carbon emissions and delivering social value.
Furthermore, the emergence of international ESG disclosure standards is not only impacting property developers but also multinational companies who, as tenants of buildings, are seeking office spaces that will align with their priorities on sustainability and enable them to meet their own disclosure requirements.
Consequently, tenants are increasingly demanding buildings which have strong ESG credentials, and landlords of such buildings can usually charge a rental premium compared to buildings with a poor ESG performance.
One Taikoo Place and Two Taikoo Place, two world-class triple Grade-A office buildings providing two million sq ft of premium commercial space, were constructed to the highest green building and wellness standards with the support of RLB.
Our cost management experts played an important role in this major redevelopment, carrying out a financial assessment of all sustainability measures including the procurement of green concrete and steel to reduce embodied carbon emissions.
Designed to be ‘future-proofed’ against climate-related risks, these towers boast the best energy performance in Hong Kong. They are fitted with AI-powered building management systems that apply machine learning to improve energy efficiency and are powered by renewable energy from wind turbines and photovoltaic panels.
One Taikoo Place and Two Taikoo Place have both received the highest certifications in the LEED (Leadership in Energy and Environmental Design), WELL and BEAM Plus building certification systems.
Taikoo Place is also the first and only development in Hong Kong to obtain the LEED Communities certification (Gold Rating) in recognition of the social value it delivers. The project created green spaces with water features that are open 24 hours a day, providing a calm and relaxing environment for tenants and the local community to enjoy.
Anderson Chan
Managing Director
RLB North Asia
anderson.chan@hk.rlb.com
Kevin Wong
Director
RLB North Asia
kevin.wong@hk.rlb.com
