CCBF’s Business Guide to Emission Reduction has four chapters• Why This chapter outlines the business case for reducing emissions ofgreenhousegasesandairpollutants.

• HowThischapteroutlinesthepathtoeffectiveemissionreductionsandgivessuggestionsinhowtoorganisetheprocessofreducingemissions.

• WhatThischapterlistspracticalactionsandsolutionsyoucantaketoreduceemissions.

• More Information The chapter provides background information andadviceonwheretogoformoredetail(moreinformationisalsoprovidedon

theonlineversion).

Who is this guide written for?

Everyoneineverybusinesshasaroletoplayincombatingclimatechangeasall

businessesinsomewaycontributetotheemissionswhichcauseit-forexample

through their electricity use, heating, cooling and travel. This guide is therefore

writtenforseniormanagement,membersofgreenteamsandalsogeneralstaff.

Itprovidesabriefoverviewofclimatechangeanditsimpactsandhighlightsthe

business case for action. This is then followed by guidance on action that you

cantake,supportedbypracticalstep-by-stepactionshighlightedwithCCBFcase

studies.

Pass it on and tell us how to improve it

Wehopethatthereaderwillpassonthisguidetotheircolleaguesatworkand

intheirsupplychain.Ifyouhaveanymoredetailedquestionspleasecontactthe

ClimateChangeBusinessForum.Additionally,ifyouhaveanygoodideasoractions

whicharenotincluded,pleaseletusknowsowecanaddittotheonlineversion

oftheguide.

Front cover *

This front cover design is an adapted version of CCBF’s logo that shows the

emissionscurveoftheaspirationalglobalGHGreductiontargetof20%by2020

and80%by2050basedon1990levels.Thistargetisconsiderednecessarybya

growingnumberofScientistsandsomecountriesinordertopreventdangerous

climatechange.TheUnitedNations FrameworkConventiononClimateChange

(UNFCCC)meetinginDecember2009mustdecidewhatglobaltargetstoset.

“The threat from climate change is the greatest challenge facing our world,

greater even than the threat of terrorism”

Sir David King – Chief Scientist to the UK.

“All across the world, in every kind of environment and region known to man,

increasingly dangerous weather patterns and devastating storms are abruptly

putting an end to the long-running debate over whether or not climate change

is real. Not only is it real, it’s here, and its effects are giving rise to a frighteningly

new global phenomenon: the man-made natural disaster”

Barack Obama, President of the United States of America

“The problem of climate change hasn’t made much impact yet on the way we

all do business in Hong Kong. But it will. Climate change and the measures

which will be taken to counter it are going to make a difference to our business

and personal lives. It’s very important that Hong Kong businesses understand

the issues and start reducing emissions in preparation for tighter regulations.”

Tony Tyler, Chief Executive, Cathay Pacific Airways.

CCBF EXCO Chair

“A successful outcome on climate change requires governments, the business

community and the general public working together to reduce emissions.

The Hong Kong Government has been implementing vigorous measures to

reduce our greenhouse gas emissions. CCBF and HKGCC Hong Kong Guide to

Emission Reduction provides useful and practical guidance to help the business

community complement our efforts. I strongly support the initiative and ask

every business to take up the challenges arising from our transition into a low

carbon economy.”

The Hon. Edward Yau

Secretary for the Environment, Hong Kong

Acknowledgements

The preparation for CCBF’s and HKGCC Business Guide on Emission

Reduction was coordinated by Environmental Resources Management

(ERM):SarahSandersHewettandMarcusIp.

Climate Change Business Forum (CCBF) working group and reviewers:

RobertGibson(JohnSwires&Sons),DrJeanneNg(CLP),DrJerryPatchell

(HKUST), Ciara Shannon (CCBF), Dr Andrew Thomson (BEC), Raymond

Wong(MTR)andPeterYoung(HongkongLand).

Other reviewers:DrShermannFong(EPD)ThinexShek(HKGCC)

Cover and chapter heading designs:Saatchi&SaatchiAdvertisingAgency

Guide design and layup:macdonaldGDandMirrorProductions

Copywriting and creative oversight: Ciara Shannon (CCBF), Georgina

Macdonald(CCBF),BonnieHo(CCBF),MicahZiegler

In particular, CCBF wishes to thank The Bank of East Asia, Business

Environment Council, Cathay Pacific Airways Ltd, CLP Holdings Ltd,

GammonConstructionLtd,HangLungPropertiesLtd,HangSengBank,

TheHongKongGovernment,HongkongLandHoldingsLtd,HSBC,MTR

Corporation Ltd, OOCL, Swire Pacific, Standard Chartered Bank, Civic

ExchangeandWWFHongKongfortheirinputintothecasestudies.

32

Aroundtheworld,governmentsareinvestingbillionsinlow-carboninfrastructureto

boostjobsandeconomicgrowth.Thesecommitmentsarejustthefirstinstallment

inwhatwillbecomelong-termgovernmentpoliciestouselow-carbongrowthasa

keyleverforeconomicrecovery.

In December 2009, world decision makers will gather at the United Nations

Framework Convention on Climate Change (UNFCCC)meeting in Copenhagen.

TheCopenhagenDealwillbeoneofthemostcomplexinternationalagreements

evertobenegotiated,andbusinesseswillfeeltheimpactoftheoutcomethrough

greatercarbonreductionrequirements,regulationsandtaxes.

Many companies recognize the importance of reducing their carbon footprint

beforethereisgovernmentalregulationandaredefiningnewstrategiestoadaptto

thisnewlandscapeofriskandopportunity.Companiesneedtoconsidertheimpact

ontheirbusinessofhavingtopayforgreenhousegas(GHG)emissions.Whilethis

isnotanimmediateprospectinHongKong,otherpartsoftheworldaremoving

rapidlytowardsintroducingcharges/penaltiesforGHGemissions.

Companiesalreadycommittedtoemissionreductionknowthatimprovedenergy

efficiencydeliverscostssavings,competitiveadvantageandenhancedcorporate

leadership and reputation. Energy saving initiatives such as building insulation,

heatpumps,solarheatingandefficientappliancessubstantiallyreducetheenergy

consumption in our buildings.Many of these can be installedwith little or no

costand,throughcarefulbuildingdesign;goodmanagementpracticesofbuilding

operatorsandoccupants,willalsodeliverenergyandemissionssavings.

Opportunities abound for large, small andmedium-sizedenterprises to respond

to changing consumer demands for environmentally-friendly products and

government demands for improved business practices. There will be further

opportunitiestobenefitfromcarbontradingandrenewable,cleanerenergyand

energyefficiencymarkets.

To prepare business for future carbon risk and the opportunities, the Climate

Change Business Forum (CCBF), in partnership with the Hong Kong General

ChamberofCommerce(HKGCC)andotherpartners,hasproducedthispractical

guide thatoutlines thestepsbusinessesneed to take to reduceemissions. The

guidehighlightstheavailabletechnologiesandopportunitiesandincludesrelevant

CCBFcasestudies.

Beyondourbusinessguide,wewouldliketodirectthereadertotheHongKong

Government’s recent carbon audit guidelines for accounting and reporting on

GreenhouseGasEmissionsandRemovalforBuildings(Commercial,Residentialor

Institutionalpurposes)inHongKong(2008).Theseguidelinesencourageusersand

managersofbuildingstomeasuretheirGHGperformance,identifyimprovements

andconductvoluntaryprogrammestoreduceoroffsetemissionsfrombuildings.

Yourssincerely,

Tony Tyler

Chief Executive, Cathay Pacific Airways, Executive Chair of the Climate Change

Business Forum (CCBF)

Alex Fong

CEO, Hong Kong General Chamber of Commerce (HKGCC)

Executive SummaryCapitalising on the Business Opportunities of Climate Change

54

• Emissionsprimarilyfromusingelectricity 50

• Space(air)conditioning 50

• Lighting 52

• Industrialprocessequipment(includingcompressedairandrefrigeration) 56

• Hotwater&cooking 57

• Officeequipment 59

• Liftsandescalators 61

• Usingrenewableenergy 63

• Emissionsmainlyfromothersources 66

• Transport 66

• Solidwaste 69

• Fuelcombustion 71

• Fugitiveemissions 71

• 7Tipstosaveenergy&savemoneyathome 72

More information 74

Glossary 90

References 92

Why reduce emissions of greenhouse gases and air pollutants? 9

• Introductiontoairpollution&climatechange 12

• Whatisclimatechange? 14

• HowwillHongKongbeaffectedbyphysicalclimatechange? 15

• HowwillHongKongbeaffectedbyinternationalnegotiationsonclimatechange? 16

• Thebusinesscaseforreducinglocalairpollutionandgreenhousegasemissions. 19

How to manage emission reductions? 23

• Gettingstarted 24

• Step1:Emissionsmanagementstrategy 26

• Step2:Measureenergyuseandemissions 28

• Step3:Settargetsandcomparewithothers 34

• Step4:Implementprogrammes 36

• Step5:Considercarbonoffsettingtobecomecarbonneutral 39

• Step6:Trackprogress,auditandreport 41

What are the solutions? 43

• Overview–whatarethesolutions? 45

• HongKong’sGHGemissions 48

• Thebusinesscaseforgreenbuildings 49

Contents

76

WHYreduce emissions of greenhouse gases and air pollutants?

IntroductionAir Pollution & Climate Change

Burning fossil fuels creates local air pollution. It also creates greenhouse gases

(GHGs)whichincreasetheriskofdangerousclimatechange.Whiletheseproblems

havethesamesourcetheirimpactisdifferent–seetheboxonthefollowingpage

page.Whatiscertainisthatairpollutionandclimatechangeareseriousriskstoour

presentandfuturequalityoflifeandthewaywedobusiness.

Local Air Pollution is an immediate, local and regional problem. Furthermore,worldwideresearchhasconfirmedairpollutiondamagespublichealth.The

deteriorationofHongKong’sairqualityhas resulted ina steady increase in the

numberofhazydaysandtheassociatedreducedvisibility.

AccordingtotheEnvironmentalProtectionDepartment(EPD),inrecentyearsHong

Konghasbeenfacingtwoairpollutionissues.Oneislocalstreet-levelpollutionand

dieselvehiclesarethemainsourceofthispollution.Theotheristheregionalsmog

problemandthis iscausedbyacombinationofpollutants frommotorvehicles,

industryandpowerplantsbothinHongKongandinthePearlRiverDelta(PRD)

region3.Regionalairpollutioncomesfromthetransportsector,industryandpower

plantsfromthewiderPearlRiverDeltaregion.

Local sources are a significant contributor to Hong Kong’s pollution AccordingtoapaperwrittenbyHKUSTforCivicExchange,during2006regional

sourceswere the primary influence on Hong Kong’s air pollution for 132 days

(approximately36%ofthetime)whilelocalsources(includingvehicles,marineand

powerplants)weretheprimaryinfluenceon192days(nearly53%ofthetime4).

Basedontheseresults,itisclearthatreducingemissionsofairpollutantsinHong

Kongwouldhaveasignificantpositiveimpactonlocalairquality,whichwouldin

turn improvepublichealth. In2008, thenumberofhours forwhichstreet-level

pollutionexceededthedangerlevelinsomeofthecity’sbusiestdistrictsroseby

14%,accordingtoEnvironmentalProtectionDepartment(EPD)figures.Inaddition,

HongKong’s infrastructure and “canyon-like” streets are an important causeof

pocketsofveryhighlevelsofurbanpollution.

A Global Green New Deal Policy BriefTheUN Environment Programme (UNEP) believes a third of the almost

US$2.5 trillion being funneled into stimulus packages across theworld

should be invested in “greening” the global economy. UNEP is calling

forallhigh-incomeOECDcountriestodevote1%ofGDPoverthenext

twoyearstomovetowardsapathoflowcarbon“green”growth.They

propose that the fiscal stimulus (to be applied over 2009 and 2010)

shouldprioritizeenergyefficientbuildingsandinvestmentsinsustainable

transport and renewable energy. Developing countries should prioritize

investmentinagriculturalproductivitymeasures,freshwatermanagement,

andsanitation,asthesehavedemonstrableandexceptionalsocialreturns.

Domesticpolicyreformsarerecommendedtosubstantiallyreduceperverse

subsidies (e.g. fossil fuels) and instead to create positive incentives and

appropriatetaxeswhichwillencourageagreenereconomy.1

International Energy Agency calls for a global revolution in ways energy is supplied and usedMassive investments are needed in the research and development,

demonstration, and deployment of a broad portfolio, clean energy

technologies and the infrastructures that will enable them. A global

revolutionisneededinwaysthattheenergyissuppliedandused2

10 11WHY reduce emissions of greenhouse gases and air pollutants?

Local

Regional

Global

Greenhouse gases e.g. CO

2

Hours Days Weeks Years Decades Centuries Residence time in the Atmosphere

(DataSource:ERM)

Local air pollutants are substances, such as sulphur dioxide (SO2), nitrogen

dioxide (NO2), respirable suspended particulates (a.k.a. particulate matter,

specificallyPM10andPM2.5)volatileorganiccompounds(VOCs),ground-level

ozone (O3), and carbonmonoxide (CO) that arepresent in the atmosphere

and are potentially harmful to health. Sources of these pollutants include

car exhausts, fossil fuel combustion, and chemical reactionsbetweenother

pollutantsintheatmosphere–suchasphotochemicalsmog.

Greenhouse gases (GHGs) include the six principal gases identified by the

UnitedNationsFrameworkConventiononClimateChange(UNFCCC)asbeing

associatedwithclimatechange-carbondioxide(CO2),methane(CH

4),nitrous

oxide(N2O),hydrofluorocarbons(HFCs),perfluorocarbons(PFCs),andsulphur

hexafluoride(SF6).

Many air pollutants and greenhouse gases (GHGs) have common sources;

theiremissionsmayinteractintheatmosphereandseparatelyorjointlythey

causeavarietyofenvironmentalimpactsonlocal,regionalandglobalscales.

Implementing climate policies, for example in order to achieve greenhouse

gas(GHG)emissionstargets,cansignificantlyreducethecostsofmeetingair

qualitytargetsandviceversa.

Therearethreemainreasonswhyclimatechangeisamoredifficultproblem

tosolvethanlocalairpollution.Twoareshowninthischart:(a)itisaglobal

problemasgreenhousegases(GHGs)dispersearoundtheworld;(b)ittakesa

longtimebeforegreenhousegases(GHGs)areabsorbedintotheseaandsoil.

Theotherreasonclimatechangeisamoredifficultproblemtosolvethanlocal

airpollutionisthatpeoplecannotseethedamageitisdoing.Itisacolourless

andodourlessgasandsomeconsequencesofthegasaccumulationmaytake

decadestoappear.

What’s the difference between greenhouse gases (GHGs) and air pollutants?

Costs to HealthThe Hedley Environmental Index is theworld’s first web-based tool to

monitorreal-timeeconomiccostsofHongKong’sairpollutionintermsof

humanhealthandmonetaryimpacts.TheIndexreportsthatairpollution

inHongKongcostsapproximatelyHK$300millionresultingfrom1,155

prematuredeaths,81,023totalhospitalbeddaysand7.25milliondoctor

visitsin2008.AcumulativecalculationofthefiveyearsfromJanuary2004

toDecember2008showcostsofanalarmingHK$12.4billion,from6,068

prematuredeaths,432,698avoidablehospitalbeddaysand39.2million

avoidabledoctorvisits.5

Local urban pollution e.g. SO

2 , PM10

CO2iscolourlessandodourlessandsowecan’t

seethedamageitdoes

12 13WHY reduce emissions of greenhouse gases and air pollutants?

The Hong Kong Observatory (2007) has made temperature projections for

HongKonguntil2100bydownscalingtheglobalclimatemodelprojections

oftheIntergovernmentalPanelonClimateChange(IPCC)FourthAssessment

Report.Keyfindingsinclude10:

• Sincethelate19thCentury(1891-1900),annualmeantemperaturerose

1.5ºC,from22ºCto23.5ºCin10years(1993-2002)11.

• Annualmeantemperaturesarerisingat0.12ºCperdecade,withamean

4.8ºCtemperatureriseprojectedby2100.

• Veryhotdays(maximumtemperatureof33ºCorabove)insummerwill

roughlydouble,risingfrom11daysto24days.

• Thenumberofhotnights(minimumtemperatureof28ºCorabove)will

riseto30peryear–fourtimesthecurrentnormallevel.

• The number of cold days (minimum temperature of 12ºC or below) in

winterwilldecreasefrom21tolessthanonedayperyear.

• Wettimeswill intensify(duetoanincreaseinrainfall)withlikelihoodof

morefrequentstorms.

• Oscillationsbetweenwetanddrywillbemorepronounced.

• Sealevelisrisingbetween2.4and2.7mmperyear.

• Incidencesofpoorvisibilityareincreasingby6.8%perdecade.

• Warmer,wetterandmoreextremeweatherwillputadditionalstresson

buildings and infrastructure. Therefore, it is necessary to develop new

standards of design and engineering, particularly for low lying areas.

Additionaldesignofdrainagealsoneedstobeconsidered.

• AccordingtoAssociateProfessorLamKa-seoftheHongKongPolytechnic

University,iftemperaturesweretoriseby3°CinHongKong,thelikelihood

ofanincreaseintheepidemicpotentialofmalariawouldriseby18.7%.

How will Hong Kong be affected by physical climate change?

What is Climate Change? According toTimFlannery,authorof“TheWeatherMakers”:“Earth’sclimate is

constantlychangingduetoalterationsinsolarradiationandothernaturalcycles.

Thesechangesoccuroverthousandsofyears,oraresmallinscale,andthusarenot

ofconcerntoourcivilization.Whatisofconcernarethechangesinclimatedueto

thebuildupofatmosphericGHGsasaresultofhumanactivity,forthesearelarge

scaleandswiftenoughtothreatenourfuture.”

Why do we need to reduce greenhouse gas emissions?In 2007, the Intergovernmental Panel on Climate Change (IPCC) affirmed that

the accumulation of atmospheric GHGs is unequivocally warming the climate

system,which is ‘unequivocal’, with effects such as increasing land and ocean

temperatures, risingglobalaveragesea level,andreducedsnowand icealready

being observed. These changes, which are linked directly to human activities

producingGHGssuchastheburningoffossilfuelsanddeforestation,arealready

causing changes in ecosystems,water supplies, andavailability, andpatternsof

extremeevents,with(inmanybutnotallcases)consequentdamagestohuman

health,buildings,livelihoods,andinfrastructure.6

Evidence of warming being observed across the worldInagrimandpowerfulassessmentofthefutureoftheplanet,theIPCC

concluded in2007 thatevidenceofwarming isalreadybeingobserved

acrosstheworld.AccordingtotheIPCC7andothers:

• Temperatureshaverisenby0.74ºCinthelastcenturyandarelikelyto

risebyafurther1.1ºCto6.4ºCby2100.

• The arctic has seen some of the most extreme temperature rises,

around6ºC;andice-capsaremelting.

• Sealevelshaverisenby1.8mmperyearsince1961andthisrateis

accelerating. Latestestimates for futuresea level rise fromthermal

expansionand themeltingofglaciersoutside thepolar regionsare

between598and140cm9by2100.Sealevelscouldrisebyupto7m

overseveralcenturiesiftheGreenlandicesheetislost.

• The frequency and severity of extreme events such as floods and

droughtsisrising,resultinginsharplyincreasedinsurancelosses.

• The reliability of harvests is decreasing, raising food prices and

increasingtheriskoffamineandmalnutrition.

• ThecapacityoftheoceansandforeststoabsorbGHGsisdeclining.

• Theacidityoftheoceansisincreasing,threateningthecalciumuptake

incrustaceansandthebaseoftheocean’sfoodchain.

• Positivefeedbacksthreatenmassivereleasesofcarbonandmethane

frompermafrostandthedeepocean.

• Species are under threat and if temperatures this century rise by

3.5ºC,globalmass-extinctions(ofbetween40to70%ofallspecies)

mayresult.

• Climatechangewillcontributetoanincreasedincidenceofdiseases

andprematuredeathsgloballythroughitseffectsonweatherpatterns

andnegativeeffectsonfoodproduction,airandwaterquality.Very

hotweather canbedeadly and an increase in the severity of heat

wavesislikely.

14 15WHY reduce emissions of greenhouse gases and air pollutants?

The Kyoto ProtocolAdopted by the United Nations Framework for the Convention on

ClimateChange(UNFCC)in1997itcreatedlegallybindingtargetstothe

reductionofGHGsby5.2%below1990levelsby2012;theendofthe

firstcommitmentperiod.

Three flexible mechanisms

Emissions Trading(2008start)

• Nationswithcapscantradewithothernations

• CommodityisAAU(assignedamountunit)

Joint Implementation (JI)

• Industrialisednationentitiescaninvestinemissionreducingprojects

inotherindustrializednations

• CommodityisERU(emissionreductionunit)

The Clean Development Mechanism (CDM)

• Industrialisednationentitiescaninvestinemissionreducingprojects

indevelopingnations

• CommodityisCER(certifiedemissionreduction)

Hong Kong Under Kyoto TheUnitedNationsFrameworkConventiononClimateChange(UNFCCC)

anditsKyotoProtocolwasextendedtoHongKongfrom5May2003.13

HongKonginlinewithChinaisdefinedasnon-Annex1Party,andisnot

requiredtocommittoanylimitsorreductionofGHGemissions.HongKong

assiststheCentralPeople’sGovernmentinfulfillingtheobligationsunder

theKyoto Protocol by providing the following information: a) emission

inventoriesofGHGs;b)appropriatemeasuresforHongKongtomitigate

climatechangeandfacilitateadequateadaptationtoclimatechange;c)

cooperation activities in promotion of development and application of

theenvironmentally-soundtechnologiespertinent toclimatechange;d)

co-operation activities in scientific research related to climate change;

and e) activities in promoting public awareness and disseminating the

relevantmessages.14

Post Kyoto 2012: CopenhagenTheUNFCCCmeetinginCopenhageninDecember2009istaskedtoagree

reductiontargetsforpost2012;theendofthefirstcommitmentperiodof

KyotoProtocol.TheCopenhagendealwillbeoneofthemostcomplicated

internationalagreementsevertobedecidedupon.Thechallengeistoget

countriestoaligntheirenergypoliciestowardscuttingtheiremissionsto

preventglobaltemperaturefromrising2˚Cabovepre-industriallevels,or

at450ppmofCO2-equivalent.Toachievethis,globalemissionshaveto

peakby2015andthenrapidlydecreaseto~80%below1990levelsby

2050.Itisexpectedthatsuchasteepreductionwillputahighpriceon

carbonandleadtoanincreaseincarbonconstrainedregulationglobally.

IfcountriescannotagreeonreductiontargetsatCopenhagen,theworry

isthatenergypolicieswillremainunchanged(i.e.businessasusual),and

accordingtoestimatesbytheInternationalEnergyAgency(IEA),by2030

bothourglobaldemandforenergyandGHGemissionswillriseby45%,

placing pressure on energy supplies and leading to an average global

temperatureriseofupto6ºC.Itisthereforevitalthattheworldemerges

fromCopenhagenwiththerightpost-Kyotoframework.Ifitdoes,Hong

Kongwillcomeunder increasingpressuretoreducecarbonin linewith

industrializedcountries.

Economic Impacts Climate ChangeTheSternReviewin2006providesin-depthanalysisonthis.

“Impact: Climate change poses serious impacts on growth anddevelopment, includingworldoutput,human lifeand theenvironment.

Allcountries,richandpoor,willbeaffected.

Cost: The estimated costof taking strongactionnow to reduceGHGemissionsisabout2%ofglobalgrossdomesticproduct(GDP)eachyear.

Ifnoactionistakennow,theoverallcostsandrisksofclimatechangewill

growtofiveto20%ofGDPormore.

Business opportunities: Action on climate change will createsignificant business opportunitieswith the rise of newmarkets in low-

carbon energy technologies and other low-carbon goods and services.

Employmentinthesesectorswillexpandaccordingly.

Policy required for an effective global response:1)pricingof carbon implemented through tax, trading or regulation; 2) policy to

supportinnovationandthedeploymentoflow-carbontechnologies;and

3)actiontoremovebarrierstoenergyefficiency,andtoinform,educate

andpersuadeindividualstotakeactiononclimatechange.

Approach to tackling climate change: Action by individualcountries is not enough. Climate change demands an international

response, based on a shared understanding of long-term goals and

agreementonframeworksforaction.

Future international framework: A framework should include:adopting ambitious emission reduction targets; encouraging effective

emissionstradingmarketmechanisms;supportingprogrammestocombat

deforestation; promoting rapid technological progress to mitigate the

effectsofclimatechange;andprovidingsupporttodevelopingcountries

tocombatclimatechange.”12

16 17WHY reduce emissions of greenhouse gases and air pollutants?

The Business Casefor addressing climate change issues

Businessesallovertheworldareconsideringhowtobestmanagethetransition

toalowcarboneconomy;managinggrowingregulations,investor,physicaland

reputationalrisks,allwhileexploringgrowthopportunitiesandpositivebottomline

results16.Formostcompaniesclimatechangebeginsasariskmanagementissue.

Climate change also represents one of the greatest business and investment

opportunitiesanditisimportantthatHongKongbusinesslookforwardandpursue

its potential in clean energy investment. Globally,many companies are already

going‘green’andsendingsignalsupthesupplychainthattomorrow’sproducts

willneedtoshowhigherlevelsofcarbonreduction.HongKongbusiness’needto

startplanningforalowcarbonfuturewiththeknowledgethatclimatechange

policieswillimpacttheirbusinesswhileseekingnewopportunitiesforcompetitive

advantage.

Achieving significant emissions reductions in Hong Kong requires action from

government,businessandconsumers.

The business case for climate change is more complex than a simple cost

/ benefit analysis. Organisations formulating climate strategies must:

• understandtheirissues

• minimisetheirrisks

• maximisetheiropportunities.

AccordingtoaPriceWaterhouseCooperCEOGlobalSurvey(Feb2008),

support for increased government intervention on climate changewas

highest amongCEO’s in theAsia Pacific (at 90%), and lowest inNorth

America (at 64%). CEO’s also favour collaborative efforts to mitigate

climatechange.Overall73%ofCEO’sbelieved thatbusinessesneed to

collaboratemoreeffectivelywithindustrypeersandbusinesspartnersto

dealwiththeissueofclimatechange.17

1.1

3.3

3.9

6.6

8.0

9.5

9.9

11.4

18.4

19.6

India

Thailand

China

Hong Kong

EU

Japan

Singapore

Taiwan

Australia

USA

The carbon footprints of people in Asia and across the world differ significantlyCO

2 Emissions intensity (tons C0

2 per person)

Sourceinfo:KeyWorldEnergyStatistics2007,InternationalEnergyAgencyandEnvironmentalProtection

Department(HKSARGovernment)

However,thesefiguresdonottakeintoaccountthemanufacturingandagricultural

activitiesoutsideofHongKongthatoureconomydependson.Neitherdothey

considercarbonemissionsofinternationalairlinesandshipping.

ThisgraphfromtheEnvironmentalProtectionDepartment(EPD)showsthatenergy

industriesforgeneratingelectricityisthemostsignificantsourceofGHGemissions

inHongKong,accountingforabout63%oftotalemissionsin2006.Thetransport

sectorisnextaccountingforabout16%.Wastedisposalaccountsforabout12%

whileothersectorssuchasindustryandagricultureaccountfortherest.

HongKong’spercapitalevelofCO2emissionsarenowat6.6tonnesofcarbon

dioxide equivalent per capita in 2006. In 1990 GHG emissions totalled 39.2

million tonnes CO2-equivalent (CO

2-e). By 2005 this had grown to 44.8million

tonnesCO2-e.

Hong Kong’s Greenhouse Gas Challenge Hong Kong’s total greenhouse gas emissions:

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

10,000

20,000

30,000

40,000

50,000

kt o

f C

O2-

e

Waste

Industrial Process

Other Energy Sector

Transport

Energy Industries

GraphSource:EPD(2006)HongKong

GreenhouseGasInventoryforthePeriod

1990–200615

18 19WHY reduce emissions of greenhouse gases and air pollutants?

Competitive Advantage Businesses can gain a competitive

advantage by responding early to low

carbon business opportunities. Late

adopters, by contrast, run the risk of

falling behind. Progressive companies

can also help influence and shape policy

developmentandtherebyhaveameasure

of control over their future business

environment.

Reduced Risks From Legislation Regulationsonenergyefficiency,buildingstandards,wasteandemissionslooksettoincreaseworldwide.18.Itisonlya

matteroftimebeforeHongKongenactscarbonconstraints.ForwardlookingcompaniesinHongKongsuchasChina

Light & Power, Hongkong Electric and Cathay Pacific are already conducting regular assessments of the emerging

regulatorytrendsandscenarioswheretheydobusiness.Anemissionsstrategywillhelpassurethatlong-terminvestments

arealignedwithlong-termregulatorytrendsandgoals.

Avoid Costs of Physical Risk & Stranded AssetsBusinessesneedtoconsidertheriskandcostsofdamagetoassetsasa

resultofextremeweatherevents.Businessesalsoneedtofactor inthe

possibilityof strandedassets –particularlyof fossil-fuel power stations

andotherhigh-emission industrial infrastructure -asa resultof tighter

national and international emission caps and , more expensive loans

(becauseofthehigherriskassociatedwithhighemissionassets).

CLPrecognisesthatenvironmentalregulationshelptoestablisha level

playingfield,whereallareheldtothesamestandardofenvironmental

performance.CLPexpects,andindeedadvocates,sensiblenewpolicies

regarding greenhouse gas emissions. At the same time, they try and

anticipatehowandwhenregulationsmaychange,toensurethattheir

businessstrategiesarerobust19.

Six Reasons to Reduce Emissions

Improved Energy EfficiencyFormanyorganisations theefficientuseof resources,particularlyenergy, is

thefirstplacetoachievecostsavingsthroughreducedenergybills.Whether

youtakelow-costactions,orinvestinlong-termsolutions,allcostsavingsgo

straightontothe‘bottomline’,andthesesavingsarepureprofit.

Cost SavingsCompanies thatsetGHGreductionand

energy efficiency targets are finding

theyaresavingmoneythroughreduced

energycosts.AccordingtoCarbonTrust

a 20% cut in energy costs represents

the same bottom line benefit as a 5%

increaseinsalesinmanybusinesses.

Enhanced Reputation and LeadershipIncreasingly consumers are receptive to companies

working to tackle climate change and ‘early mover’

companies have the opportunity to demonstrate

leadership and enhance their reputation. According to a

studyby theClimateGroup,GE is themostoftennamed

climate-change brand leader in the U.S. and Tesco in

theUK20.

Aware that only with sustainable practices will we be able to grow

and maintain our business, Hang Lung Properties has incorporated

sustainabledesignpracticesintoallournewdevelopmentsinmainland

cities.

Through the installation of water-cooled air-conditioning system,

energy-saving lighting and demand side management for improving

energyutilizationamongour investmentproperties inHongKong,we

achieveasavingofover25millionkWhandHK$28millionintermsof

electricityexpenseswithinfouryearsfrom2005to2008.

20 21WHY reduce emissions of greenhouse gases and air pollutants?

HOWto manage emission reductions?

A Six Step Approach to Reducing Emissions

Step 1Prepareanemissionsmanagementstrategy

Step 4ImplementInitiatives

Step 5ConsiderOffsettingtobecomeCarbonNeutral

Step 2Measureenergyuseandemissions

Step 3Settargetsand

comparewithothers

Step 6TrackProgress,AuditandReport

Getting Started Every Hong Kong business should do their bit to combat climate change and

understandtheircarbonfootprint.Theresponsetoclimatechangewillbeunique

toeachcompanyandindustrysectorbasedonthedifferingrisksandopportunities

confrontingthem.

Toprovideanoutlinefortakingaction,wehavedetailedasixstepapproachto

managetrack,andreduceemissions.Aswellasreducingyourcompany’snegative

impactontheenvironment,thesestepswillimprovestaffmorale,enhancepartner

relationsandhelpwinnewbusiness.

The MTR Corporation developed a Climate Change Policy, which

aims to reduce emissions and waste through the establishment of a

change management strategy. The policy puts forward the initiatives

and methodologies which are utilised to progressively reduce MTR’s

environmentalfootprintinthefuture.Keyactionswhichhavetakenplace

under thepolicy include theassessmentof riskspresentedby climate

change, as well as the measurement and mitigation of their carbon

footprint. For example, an initial assessment identified rail operations

andpropertymanagementasthebiggestsourcesofGHGemissions.The

MTRadministeredseveralactionstowardsreductionoftheseemissions,

suchastheUSE(usage,staffandefficiency)programme.This involves

controlling energy through optimization, educating staff on energy

efficiencyandupgradingtomoreenergyefficienttechnology.

24 25HOW to manage emission reductions?

Established in 2006, HSBC’s Carbon Management Strategy consists

of threeparts: tomanageand reduceourdirectemissions; to reduce

thecarbonintensityoftheelectricityusedbybuying“green”electricity

wherefeasible;andtooffsettheremainingemissionsinordertoachieve

carbonneutrality.

GeneralElectric’sEcomaginationProgrammesettargetstolowerGHG

emissionsby1%by2012inabsoluteterms,eventhoughstronggrowth

is predicted for GE operations. This is being achieved by improving

company-wideenergyefficiencyby30%andreducingtheintensityof

companyGHGemissionsby30%.Todate,GEhasexceededitsinternal

goals,bringingtheaddedbenefitofloweringitsownenergycosts.

Who is responsible?• SeniorExecutivesneedtodrivethelowemissionsvisionandstrategy

• Management and staff need to integrate low carbon practices into their

business

If this isn’t already in place, assign a specific person to be responsible for your

company’s emissionsmanagement strategy. It is important that you get senior

managementandevenboardlevelsupporttomakeemissionmanagementpartof

thebusinessstrategy.Thatmeansworkingitintoyourbusinessmodel,andmaking

sureitaffectseverydecisionthatismade.

Smallerorganisationsmaydecidetoprovideanexistingmemberofstaffwiththis

responsibility,inwhichcasetheyneedtohavethetimeandthedesiretotakeon

therole.

Step 1Emissions Management StrategyAgreenhousegas (GHG)emissionsand localairpollutionmanagementstrategy

neednotbealengthy,formaliseddocument.Agoodstrategyshouldsetout:

• Policydirection

• Whoisresponsible

• Targetsandtimelines

Policy directionAn explicit policy on emissions reduction showsmanagement’s commitment to

responsibleenergyuseandmanagingtheirbusiness’s impactonclimatechange

andairpollution.

Produce a statement of simple, quantifiable policy objectives to demonstrate

management’s commitment to environmental responsibility. Link this policy to

yourcompany’sotherCSR/environmentalpolicies.

Thepolicyshouldbeissuedtoeveryemployeeanddisplayedinprominentplaces

whereitcanbeseenbyemployeesandvisitors.

StandardCharteredhashadaformalenvironmentpolicyinplacesince

1998.Thestrategieswerebuiltaroundthreepillars:

• Operational Impact–minimising theBank’suseof resourcesand

carbon dioxide emissions, focusing on energy consumption in

buildings,paperuseandemissionsfromairtravel.

• Sustainable Finance – integrating climate and environmental risk

aswell as social and governance issues into lending criteria, and

providing the products and services thatwill support the shift to

low-carboneconomies.

• Stakeholder engagement – working with staff, customers,

regulators,communities,investors,non-governmentalorganisations

(NGOs)andotherstostimulateactionbycreatinganawarenessof

whatmustbedonetoprotecttheenvironment.

26 27HOW to manage emission reductions?

BeforeWalMartbeganmeasuring theiremissions theyassumed their

greatest source of emissions was from trucks. After measuring, they

discoveredthatgreatestsourcewasinfactrefrigerationandtheyhave

sinceintroducednewprojectstoreducetheseemissions.

Work out a method to followThereareanumberofguidancedocumentsthatcanhelpinmeasuringemissions.

Forgreenhousegasestheseinclude:

• The Greenhouse Gas Protocol (GHG Protocol). The GHG Protocol was

establishedin1998bytheWorldBusinessCouncilforSustainableDevelopment

(WBCSD)andtheWorldResourcesInstitute(WRI).Itiswidelyusedaccounting

tool which allows government and businesses to manage and reduce

GHGemissions.

• TheISO14064seriesofstandards.Theseprovideguidanceonhowtomeasure,

monitor,reportandverifycarbonemissions.

• Hong Kong’s Guidelines to Account for and Report on Greenhouse

Gas Emissions and Removals for Buildings (Commercial, Residential or

Institutional Purpose) in Hong Kong.Thisdocumentprovidesadvicespecific

totheSAR,includingsamplereportingformats

Forlocalairpollution,similaractivitiescanbeundertaken,onebeingProjectCLEAN

AIR(aninitiativewhichfocusesontheCleanAirChartertoencouragemeasuring,

reportingandreducingtheiremissionsinordertoimproveairquality).

Challenge: Measuring and monitoring in a large organization withmany operations in different countries will be a challenge and will require

significant technical knowledge. It may be necessary to use both external and

internalexpertise.

Set boundariesIt is importanttodefinewhichGHGor localairpollutionemissionsare included

withinyourmeasurementsandwhichtypesofemissionsareexcluded.

Organisational boundaries (relates to ownership of the company) areimportant.Forexample,shouldyouincludetheemissionsofyoursuppliers?

Operational boundaries arealsoimportant.Doyouincludejustemissionsassociated with your business directly, those generated through purchasing

electricityforthecompany’suseorthoseassociatedwithemployeetravel?When

consideringthiswerecommendyouusetheGHGprotocol.Thediagramonthe

followingpageprovidesfurtherinformation.

An example of using both external expertise and building internal

knowledge isHongKongAeroEngineServicesLimited (HAESL)which

employedapart-timeenergymanager (AEM)toworkwith itsstaffto

implementenergysavingprojectsfrom1999onwards.Projectsincluded

lighting upgrades, installation of variable speed drives for fans, heat

pumpsforcateringhotwater,demandcontrolledventilation,conversion

of chiller units towater cooled chillers and installationof solarwater

heating.Thetotalenergysavingsince1998hasbeenover30 million

kWhoraround15,000tonnesofcarbondioxideequivalent–asaving

ofapproximatelyHK$2.3millionperannum.

Step 2Measure Energy Use and Emissions Youcannotmanagewhatyoudon’tmeasure.Measurementenableseverybusiness

toassesstheirrisksandopportunitiesandisanimportantinitialstepinworkingout

howtoreduceemissions.

EstablishMethod

SetBoundaries

CollectData

CalculateEmissions

Key tips for assigning an energy manager/team

• Ensuretheyhavesufficienttimetospendonthetask

• Ensuretheyarekeentobeinvolvedandenthusiasticabouttherole

• Givethemthefullbackingofmanagement

• Checktheyknowhowtomeasurewater,energyandfuelconsumption

• Providetrainingwhereneeded

• Useexpertswherenecessarytosupportstaffmembers

TheEnergyManagementSystemoftheMTRCorporationwasestablished

to provide better planning and set realistic energy saving targets, as

wellastoassistthestaffinachievingthesetargetsinsystematicways.

Starting from the highest level, the Energy Steering Committee sets

targetsonenergysaving,andmonitorstheelectricityconsumptionand

costofoperatingtherailway.TheEnergyManagementWorkingGroup

thenallocatesthesavingquantitytodifferentdepartments,basedonthe

energysavingtarget.Thesub-workinggroup(lowerlevel)areresponsible

for implementing, monitoring, recording and reporting the status of

energyconsumptionandproposedifferentenergysavinginitiatives.

28 29HOW to manage emission reductions?

The GHG Protocol provides an international standard in accounting for

greenhouse gas emissions. Regarding the calculation of GHG emissions,

organisationsarerequiredtodefinetheboundariesofthemeasurement:

Organisational boundaries

The equity share approach: A company accounts for GHG emissions from

operationsaccordingtoitsshareofequityintheoperation.

The control approach:Acompanyaccountsfor100%oftheGHGemissions

from operations over which it has control. It does not account for GHG

emissionsfromoperationsinwhichitownsaninterestbuthasnocontrol.

Operational boundaries

Specifying which activities are accounted for is important, as this informs

youwheredataneedstobegatheredfromtobeenteredintoanemissions

calculator. TheGreenhouseGasProtocol identifies threedifferent scopesof

operationalboundariesforaccountingandreportingpurposes:

Scope 1 Direct GHG emissions:Fromsourceswhichareownedorcontrolled

bythereportingcompany,andmayarisefrompowergenerationfacilitieson

thepremises,orfromcompanyownedvehicles.

Scope 2 Indirect GHG emissions:Occurringfromconsumptionofpurchased

energy, such as electricity, heat or steam. Scopes 1 and 2 emissions are

relativelystraightforwardtomeasurefrombillsandcompanydata.

Scope 3 Indirect GHG emissions:Other indirectemissionsfromsourcesnot

ownedorcontrolledbythereportingcompany,butoccurasaconsequenceof

theiractivities.Thiscouldincludeemissionsgeneratedfromtransportrelated

activities, extracting materials, outsourced activities, and waste disposal.

These emissions are more challenging to measure, but provide a more

completepicture.

MostemissionreportingprogrammesforGHGsrequireatleastScope1and2

emissionstobeincluded.EmissioncalculationtoolsareprovidedontheGHG

Protocolwebsite22.

Calculating Emissions

Source: Adapted from WBCSD

Waste disposal

WBCSD Greenhouse Gas Protocol - Emission Source Categories

CO2

SF6

CH4

N2O HFCs PFCs

Purchased electricity for own use

Fuel combustionOutsourced activities

Contractor owned vehicles

Employee business travel

Production of purchased materials

Product use

Company owned vehicles

SCOPE 2Indirect

SCOPE 3Indirect

SCOPE 1Direct

Measure Your Personal Carbon Footprint

WWF’s carbon calculator provides a useful tool formeasuringpersonal

carbonfootprints.Thiscanbefoundat:

http://www.climateers.org/eng/contents/climateer_calculator.php

A Carbon Footprint

Thecarbonemissionsforabusinessareofteninlaymantermscalledits

‘CarbonFootprint’.AsimpleCarbonFootprintmeasurescurrentemissions.

A full carbon footprint isbasedonaproduct’s lifecycleapproach (from

extractionofmaterials toproduction,useanddisposal).Formany large

businesses, the main carbon impact is not within the boundaries (or

direct activities) of owned operations but in the supply chain. Lifecycle

assessmentapproachescanbeausefulwaytounderstandthefullimpacts

acrossthesupplychain.

CLP’sCarbonCalculator:Theamountofcarbonyougenerateannually

canalsobecalculatedusingCLP’sCarbonCalculator foundathttps://

www.clponline.com.hk. The calculator is designed to estimate the

carbonfootprintofeitherasinglepersonorahouseholdwithmorethan

onepersonandisandismeasuredintonnesofcarbondioxideemitted.

30 31HOW to manage emission reductions?

http://www.climateers.org/eng/contents/climateer_calculator.php

4 Tips for conducting energy/carbon audits1. Follow guidelines-HongKonggovernment’sGuidelinesonEnergyAudit(2007)25providesinformationonhowtoconductanenergyaudit,andismostlytargeted

towardscommercialbuildingswithenergyconsumingequipment.

2. Consider frequency-annualauditsmaybeappropriateinthefirst2-3years,thiscanbereducedtoevery2-5yearswhennewequipmentisintroducedasyour

organisationbecomesfamiliarwithenergysaving/reducingemissionsandallthenocost/lowcostmeasureshavebeenimplemented.

3. Select an appropriate auditor-Energyauditsarecarriedoutbyacompetentperson,knownasthe‘auditor’,whohassufficientinformationonBuildingServices

(BS)installations,suchaslighting,heating,andair-conditioning.

4. Identify whether you can get support-TheHongKonggovernmenthascommittedfundingforbusinessestoundertakeenergyauditsinspecificcasesaspartof

theintroductionofmandatoryBuildingEnergyCodes.SwirePropertiesprovideenergyauditsfreeofchargetotheirtenants.

Gammon Construction uses a standardised method to collect

environmental data from its operations. A company-wide “Project

Environmental Performance Data Form” was introduced in 2003 for

monthly updatesonproject andoperational sites.Gammonmonitors

transport, construction equipment usage and electricity consumption

whicharetheirprincipalsourcesofemissions

Building Information Management System

Swire Properties has installed a building information management

systemthathelpsestablishinformationonvariouselementsofbuilding

operations and associated energy consumptions. The information

obtainedfromthesystemisusedtoidentifyfaultsintheelectricaland

mechanicalsystemssuchasfaultyvalvesandpumps,optimizeoperations

of the systemsand identify equipment thatneeds tobeupgraded to

improveenergyefficiencies.ThroughthisSwirewasabletoachievean

estimatedenergy savingof3,383MWh in2007,whichequated toa

totalreductionof2,712tonnesofC02-eemissions.

Points to consider when setting up a system to record data

• Typeofdata(unitcosts,maximumdemand,supplycapacity,power

factorforelectricity)

• Qualityofdata(whetherbillsareactualorestimatedetc)

• Unitsconsumed(unitsorlitresused)

• Checks(e.g.whetherthereisconsumptionatnight)

• Baseline Year (annual re-adjustments of the emissions

baseline developed are important to accurately track progress

againstperformance)

Calculate emissionsEmissionfactorsconvert informationsuchastheamountofelectricityused into

GHGemissions.EmissionfactorsforHongKongareprovidedinEPD’sGuidelinesTo

AccountForAndReportOnGreenhouseGasEmissionsAndRemovalsForBuildings

InHongKong23andfurtherinformationisprovidedintheGHGProtocol.TheClean

AirCharterBusinessGuidebookprovidesemissionfactorsforairpollutantssuchas

NOX,SO

2andPM.Youmayneedtouseacombinationofin-houseandpublished

emissionsfactorsanditisimportanttodouble-checkbasedataandunitsandto

sense-checktheresults.Ifafullsetofdataisnotavailable,youmayneedtomake

assumptionsorestimates.

TheBusinessEnvironmentCouncil(BEC)hasdevelopedagreenhousegasemissions

calculation tool, to help companies to calculate their scope 1 and 2 emissions.

Thepurposeofthetool istoallowcompaniesto inputrawdata,e.g.electricity

orfuelconsumption,whicharethenautomaticallyconvertedintoCO2equivalent

emissions. The tool makes use of best practice guidance on greenhouse gas

emissions calculations, including the HK Government’s ‘Guidance to Account

for and Report on Greenhouse Gas Emissions and Removals from Buildings

(Commercial, Residential or Institutional Purposes) in Hong Kong’, the WRI /

WBCSD’s ‘Greenhouse Gas Protocol’ and the UK Department for Environment,

FoodandRuralAffairs(DEFRA)‘GuidelinesforCompanyReporting’.

Conduct an energy / carbon auditThedatayouobtainfromfuelandenergyconsumptionrecordsmaybesufficientto

identifyareaswhereemissionsreductionscanbemade.Youcanalsocommission

amorein-depthenergyorcarbonaudittoidentifyareaswherefurtherreductions

canbemade.Suchauditscanidentifylessenergyefficientsystems,areaswhere

equipment life can be extended, capital costs of investment needed and the

financial benefitof energy savingswhich canhelp tomakeabusiness case.As

partofreducingcarbonemissions,theHongKongEPDhasestablishedaCarbon

ReductionCharterwhichissignedbyorganisationswhocarryoutauditingactivities

toreduceGHGemissions24.

The Hong KongGovernment plans to implement aMandatory Building Energy

Codes (late 2009), which require buildings to comply with minimum energy

efficiency standards. There is a provision under this for energy audits to be

undertakenforcertainbuildingsonceevery10years.

Collect dataDataonemissionscanbeusedto:

• Identifywhereemissionsarehigh

• Determinewherereductionscanbemade

• Supportcompanyenvironmentalreporting

You can collect data from fuel and energy consumption records (monthly bills,

metersandsmartmeters).Thishelpstosetupasystemforrecordingtherelevant

informationfromfuelandenergybills.

Examiningthedataandplottingenergyconsumptioncanhelptoidentifyincreases.

Someincreasesmaybeduetoexternalfactorssuchashotterweatherandincrease

in production. Other increases may be due to fuel theft or faulty equipment

and inefficiencieswhicharewastingyourmoneyandharmingtheenvironment.

Informationonoutofhoursenergyusecanhelptoidentifypotentialwastage.

Forimproveddatacollection,itcanbeusefultofitsub-meterstoenergyintensive

plants and equipment.Conducting your ownwalk-around survey can also help

identifymajoremissionssources.Youdonotneedtobeanenergymanagertodo

thisandthereisarangeofreferencesavailabletohelp.

32 33HOW to manage emission reductions?

CLP’s‘ClimateVision2050’includesanaimtoachievea75%reduction

in the carbon intensity of their generating portfolio by 2050. Interim

targetsaresettoreducecarbonintensityfrom0.84kgcarbondioxide/

kWh(asat30June2007)to0.8kgby2010,0.7kgby2020and0.45kg

by2035.

Benchmarking Many companies find it difficult to judge how satisfactory the carbon intensity

oftheiroperationis.Comparingperformanceagainstothersimilaroperationsor

‘benchmarking’canhelp.Youcancompareperformancewith:

• Yourownoperationsovertime

• Thatofotherdepartmentswithinonecompany

• Thatofothercompanies

Itisimportanttodevelopclearindicatorstoenableyoutomeasureimprovements.

Some commonly used indicators for actual measures include carbon dioxide

equivalentCO2e (defined by the IPCC Guidelines for National Greenhouse Gas

Inventories [http://www.ipcc-nggip.iges.or.jp/public/gl/invs1.htm]) and energy

unitssuchaskWh.

TypicalunitsincludeCO2eorenergyuseperproductunit,dollarofrevenue,staff

memberandpersquaremetreofofficespace.

The Electrical and Mechanical Services Department’s (EMSD) Energy Indicator

and Benchmarking Toolallowscompaniestocompareperformancewithothers

inequivalent situations. TheEnvironmental ProtectionDepartmentalsohostsa

websitewheretheactivitiesofits“GreenPartners”,thosethatsignedtheCarbon

Reduction Charter are listed. Globally, the Carbon Disclosure Project (CDP)28

providesdatavoluntarilydisclosedbycompaniesoncarbonemissions.

HSBC’s US$90 million Global Environmental Efficiency Programme,

launched in 2007 provides an overarching framework within HSBC

to help the bank achieve its environmental reduction targets. For the

period2008-2011,HSBCaimstoreduce8%ofelectricity,6%ofcarbon

emissions, 11% of water consumption, and 10% of waste globally

comparedto2007levels.

Startingfrom2008,theresponsibilityofachievingannualenvironmental

targetswithin certain business areaswas assigned to global, regional

andfunctionalbusiness heads of HSBC.

In2006-7,StandardCharteredBankset

CO2e emissions per full-time employee.

Between2006-07energyemissionsdecreased

by17%;andfromairtravelby19%27.

Energy Performance ContractingEnergy performance contracting is an agreement which takes place

between businesses and a private energy service company (ESCO). On

enteringaenergysavingsperformancecontract(ESPC),theESCOidentifies

potential energy saving opportunities and recommends improvements

whichcouldbepaid for throughsavings.TheESCOguaranteessavings

either meet or exceed the annual payments to cover all costs (with a

commoncontracttimebetween7-10years).Businessesmakenoup-front

investmentsasprojectsarefinancedthroughguaranteedannualenergy

savings,andthereforetherearenocapitalrequirements.Wheresavings

donotcovercosts,theESCOpaysthedifference.Forexample,Honeywell,

anenergyservicecompany,hascompletedmorethan4,000ESPCprojects

anddelivered$3billioninguaranteedenergyandoperationalsavings26.

CLP also offers energy audits to certain business customers in Hong

KongandGuangdong.Through theseaudits, energy saving initiatives

areidentifiedwhichcanhelpachieveusuallyareductionof10to20%

inenergyconsumption.

Step 3Set Targets and Compare with Others

Set targets that workMany companies find it difficult to judge how satisfactory the carbon intensity

oftheiroperationis.Comparingperformanceagainstothersimilaroperationsor

‘benchmarking’canhelp.Youcancompareperformancewith:

• Ensurethattargetsaremeaningfulandmeasurable(e.g.savingx%ofenergy

spend, or trying to illustrate them in a way which means something to

someonewithoutatechnicalbackground(i.e.equivalenttoxtonnesofCO2

whichisequaltoxflightsaroundtheworldorxmilesdriveninacar).

• Ensure that targets can be visualised and are motivational for staff. For

instance,aproportionofthemoneysavedfromenergyusecanbegivento

staffasbonusormoneyforcompany’sfunctions.

• Setrollingtargets,sothatonceachievedanewmorestrenuoustargetisset

tokeeptheprocessgoing.

Smart TargetsSetSMARTtargetstoreachgoalsandobjectives.Theseare:

Specific: Straightforwardtargetswhichclearlydefinewhatwill bedone.

Measureable:Measureprogresstoprovechangeshavebeenmade.

Achievable: Abilitytoreachgoalsinasetamountoftime.

Realistic: Theyarewithintheavailabilityofresources,knowledge andtime.

Time-related: Ensurethereisenoughtimetoachievegoals.

34 35HOW to manage emission reductions?

HSBC has adopted a centralised policy and Ethical Code of Conduct

for suppliers across all products and services. The policy includes

environmental criteria in supplier tenders and contracts, setting out

environmentaltargetsandencouragingsupplierstoobtainenvironmental

accreditation.Thebankalsoworkedwithsuppliersbystimulatingsupply

of sustainable production. Since 2007, for instance, its offices in 18

countrieshavesourcedForestStewardshipCouncil(FSC)-certifiedpapers

forallorsomeoftheirpaperrequirements.

Cathay Pacific pay close attention to green procurement and their

purchaseofnewBoeing777-300ExtendedRangejetlinersthatuse20-

26%lessfuelisanexampleofthis.Onasmallerscale,CathayPacificuses

plasticcutleryonitsplanes,whichisthensoldbacktothemanufacturer

andrecycled.

Step 4Implement Programmes Inimplementingprogrammestoreduceemissionsyoushouldconsider:

• Focusingon the ‘’easywins”first. Theseare the items thatareof lowcost

andarestraightforwardintermsoftechnology,time,disruptionandproduce

resultsfromdayone.

• Findingenergy intensive/pollutingactivities thatcanbeavoidedandcutting

themout(e.g.equipmentleftonovernight).

• Reducing carbon intensive energy sources/polluting activities and start to

replacewithlowercarbonones(e.g.changingdieselvehiclestoLPG).

Green procurement Allprocurementspecificationsforenergyusingequipment,premisesandvehicles

should include energy efficiency requirements. Specifications for any equipment

which produces emissions should also state minimum performance levels and

encouragebestpractice. Procurersneed training toensure theyunderstand the

issuesofreducingemissionsandhowbesttosaveenergy.

Benefitsofthisactioninclude:

• Costsavingsachievedthroughlowerrunningcostscansignificantlyoutweigh

higherinitialpurchasecosts.

• Attentiongivenbypurchasersinthisareaisapowerfulinducementtosuppliers

reducingtheenergyintensityandemissionsoftheirproducts.

Readersarealsodirected to theHongKongGreenPurchasingCharter (HKGPC)

launchedbytheGreenBuildingCouncil29.

MTRwillspendHK$70milliontousenewcomposedmaterialswhen

extendingitstracks,insteadofusingwoodfromtropicalforests.

Wal-Mart’s “Global Responsible Sourcing Initiative” mainly targeted

suppliersinChina,setsoutthefollowingrequirements:

• Manufacturers’ facilities must certify compliance with laws and

regulations where they operate as well as rigorous social and

environmental standards, set by government agencies, beginning

withsuppliersinChinainJanuary2009andforallotherWal-Mart

suppliersby2011.

• By 2012, suppliers must work with Wal-Mart to make a 20%

improvementintheenergyefficiencyinsidethetop200factoriesin

ChinathatWal-Martdirectlysourcesfrom.

• Suppliers must create a plan to eliminate, by 2012, defective

merchandisereachingtheWal-Martsupplychain.

• AllofWal-Mart’sdirectimportsuppliers,plusallsuppliersofprivate

label and non-branded products, must provide the name and

locationofeveryfactorytheyusetomaketheproductsthatthey

selltoWal-Mart.

• By2012,allsuppliersWal-Martbuysfromdirectlymustsource95%

oftheirproductionfromfactoriesthatreceivethehighestratingson

environmentalandsocialpractices.

36 37HOW to manage emission reductions?

GeneralElectric’s‘myecomagination’designedtomakeecomagination

more personal forUK employees, allows them tomeasure their own

personal carbon footprint, reduce it and savemoney. In2007,Green

Wizards were established at 40 UK sites to rally employees and

implement carbon reduction schemes from recycling and biking to

worktoswitchingofflightsandturningdownheating.Everyemployee

receivedanenergysavinglightbulbandfreeworkshopswereheldwith

theEnergySavingTrustwhoprovidedadvice.

Step 5 Consider Offsetting to Become Carbon NeutralCarbonneutralityiswhenanorganisationcutsand/oroffsetitsemissionstozero.

HSBCwas thefirstmajorbank togocarbonneutral in2005.Other companies

become carbon neutral for some aspects of the business. They reduce their

emissions as much as they can and then buy ‘carbon credits’ to offset their

remainingunavoidablecarbonemissions.Thecarboncreditsarepurchasedfrom

emission-reducing projects such as switching fuel types whichwould not have

happenedwithoutthefundingfromthesaleofthecarboncredits.

Carbonoffsettingschemesoftenhavearangeofeconomicandsocialaswellas

ecologicalbenefits.Treeplanting,investingin‘greenenergy’projectssuchaswind

farmsandprovidingfundsforlowcarbontechnologiesinthedevelopingworld,

aresomeof theoffsettingprojectsavailable.Offsetsareonly recognised if they

meetastandardsuchasthe‘VoluntaryCarbonStandard’orthe‘Goldstandard’.

TheMoresectionprovidesfurtherinformationonthistopic,includingsomeofits

limitations.

Educate and empower staff to cut energy useThe emissions managers cannot be expected to reduce emissions and energy

consumptionontheirown.Allstaffmembersneedtobeinvolvedandtorealise

thateveryonehastodotheirbit.

• CreateaGreenTeamofpeoplewhocanmakethemostdifference.Obvious

targets are thosewhoare responsible forplant, equipment,buildings, staff

training, procurement of energy using plant, e.g. production managers,

maintenance crew, procurers. Don’t forget the less obvious people i.e.

cleanersorsecuritystaffareoftenthelastonesinthepremisesatnightand

canmakesurethatequipmentthatshouldbeswitchedoff.

• Usetechniquessuchasteambuilding,postinformationonbulletinboardsand

internalcommunications,‘switchitoff’stickersandposters,provideprogress

updates at teammeetings, make use of energy efficiency / environmental

awarenessvideostoinspireaction.

• Publiciseyoursuccessesbothinternallyandexternallytomakeyourstafffeel

proudoftheirachievements-thiscanprovideopportunitiesforcosteffective

externalpublicitysuchasprovidingstoriesforlocalpapers,radioandtelevision,

writingarticlesfortradejournalsetc.

• Getting staff buy-in is vital. Empowering employees to feel that they can

makeadifferenceiscritical-otherwisestaffwillthinkthatsavingenergyand

loweringemissionsisnotintheirremit,andassumethatitissomeoneelse’s

responsibility.

• Run a suggestion box for energy saving / emissions reduction ideas and

implementthebestideasandrewardthosethatcontributedthem.Personnel

reward programmes can be difficult to administer - consider giving gift

vouchers or, consider donating to charity or the staff New Year party if

individualrewardsarenotfeasible.

• Reinvest a portion of any financial savings made from energy efficiency

/ reducing emissions in further carbon footprint reduction measures to

demonstratethelongtermcommitmentofyourcompany.

• Getprofessionaladvicewherethisisneeded.

Hang Lung Properties is committed to educating and delivering the

messageaboutenvironmentalawarenessandsustainabledevelopment

toallourstaff,customers ,businessassociates andthepublic. As

amodel of our comprehensive environmental commitment, The Peak

Galleria is now our green education centre where students and

differentorganizationsinthecommunitypaytheirEnvironmentalVisits

toenhancetheirenvironmentalknowledge.

38 39HOW to manage emission reductions?

Step 6 Track Progress, Audit and ReportMonitoring performance against planned objectives through auditing is an

effectiveandimportantwaytomeasureperformanceandsetnewtargets.Timing

canbeimportant,forexample,somemeasurescanonlybefeasibleorfinancially

viableduringnarrowtimewindowssuchas leasenegotiations,whenrelocating

premises etc. Results on performance should be regularly reported. Reporting

should include how targets have beenmet andways to improve performance

inthefuture.Reportingshouldincludehowtargetshavebeenmetandwaysto

improveperformanceinthefuture.

Guidance on reporting GHG emissions is provided by:

• The Hong Kong Government’s Guidelines to Account for and Report on

GreenhouseGasEmissionsandRemovalsforBuildings(Commercial,Residential

orInstitutionalPurpose)inHongKong.

• TheGlobalReportingInitiative(GRI)30hasproducedwidelyusedsustainability

reporting guidelines that set out principles and indicatorswhich businesses

can use to measure and report their economic, environmental, and social

performance.Byreportingsustainabilityperformances,organisationsareable

tomanagetheirimpactonsustainabledevelopment.

• TheCarbonDisclosureProject(CDP)collectsdatafromlistedcompaniesatthe

requestoflargeinstitutionalinvestors.CDPpublishestheresponsesitreceives

onitswebsiteallowingcompaniesandtheirinvestorstodeterminehowtheir

emissionscomparetootherswithinthesamesector.In2009,theCDPaskedall

companieslistedwithinLondon’sFTSE350,NewYork’sStandard&Poor’s500

andotherglobalstockexchangesnotonlytoreportontheirownemissions

(whichtheCDPestimatestomakeup40%ofglobalemissions),butalsoto

sendcarbondisclosurequestionnairesouttotheirsuppliers31.

Insomecountriescarbonreportingwillbecomecompulsory.Forexample,theUK

governmentrecentlyamendedtheClimateChangeBill tostronglyencourageall

UK-listedcompaniesto includedetailsofGHGemissions intheirannual reports.

Australiarequireslargecompaniestoreporttheiremissionsmonthlyasthefirststep

towardsintegratingcompaniesintoanationalemissionstradingscheme.

CathayPacific’sFlyGreenerprogrammeisdirectlymanagedbyCathay

Pacific, and offers passengers the option of using cash or frequent

flyer miles to pay for their carbon offsets. Since its launch in 2007,

theprogrammehasallowed them tooffset30,000 tonnesof carbon

emissionsandthecontributionsfromtheoffsetprogrammeareinvested

in wind power generation projects in Congming and Nanhui near

Shanghai,registeredundertheVoluntaryCarbonStandard.

HSBCistheworld’smajorbanktoachieveCarbonNeutralsince2005.

Thebankadoptsafour-stepprocess.Firstly,thebankmeasuresitsannual

carbonfootprintfromitsoperations.Secondly,thebanksetstargetswith

respectivetoelectricityuse,carbondioxideemissions,waterandwaste,

and undertake measures to achieve these reduction targets. Thirdly,

thebankpurchases“green”electricitywherepossible,e.g.thosefrom

renewable sources. Finally, the bank offsets the remaining emissions

throughinvesting inthird-partyverifiedprojectsthatgeneratecredible

carboncreditsfromboththecomplianceandvoluntarymarkets.

40 41HOW to manage emission reductions?

WHATare the solutions?

1. Overview: What are the Solutions?Whatoptionsareavailable for switching toacleanerandmoreefficientenergy

future?Howmuchwillitcost?Thegoodnewsisthatmanycost-effectivesolutions

existtodayandanumberofemergingtechnologieslooktodelivermoresubstantial

reductionsinthefuture.

Supply side

• CCSfossil-fuelpowergeneration

• Nuclearpowerplants

• Onshoreandoffshorewind

• BiomassIGCC&co-combustion

• Photovoltaicsystems

• Concentratingsolarpower

• Coal:integrated-gasificationcombinedcycle

• Coal:ultra-supercritical

• 2ndgeneration/advancedbiofuels

The path forward: energy technology roadmap (IEA)

Demand side

• Energyefficiencyinbuildingsandappliances

• Heatpumps

• Solarspaceandwaterheating

• Energyefficiencyintransport

• Electricandplug-invehicles

• H2fuelcellvehicles

• CCSindustry,H2andfueltransformation

• Industrialmotorsystems

Ideas for ActionBeginbyfollowingthe‘How’sectionofthisguidetocollectdataonyouremissions

forenvironmentalreportingneedsandtogeneratethepoliciesandpracticeswhich

supportmakingactualreductions.Next,usethissectionoftheguidetoprovide

youwithideasfortheactionsyoucantaketoachieveemissionsreductionsquickly

andcosteffectively.

Thischapter isdefinedbybreakingdownHongKong’semissions intotheareas

wheretheycomefromandconsideringsolutionsthatwilldirectlyreduceemissions.

Otheractionsyoucantakesuchasgreenprocurementandempoweringeducation

forstaffarecoveredfurtherintheHowSection.Whereappropriatethischapter

willalsoreferyoutothe‘More’chapterforfurtherdetailedinformation.

Ifyouarereadingtheprintedcopyofthisguidepleaserememberthattheonline

version32mayhaveupdates.

1. Overview: What are the Solutions?

2. HK’s emissions – come mainly from electricity use(mainlyScope2)

3. The business case for green buildings

4. Specific solutions for areas of electricity use (Scope2)

4.1. Solutionsforspace(air)conditioning

4.2. Solutionsforlighting

4.3. Solutionsforindustrialprocessequipment

4.4. Solutionsforhotwaterandcooking(Scope2butScope1where

thisisfromfuelcombustion)

4.5. Solutionsforofficeequipment

4.6. Solutionsforliftsandescalators

4.7. Usingrenewableenergy

5. Emissions mainly from other sources other than electricity use

(Scope1andScope3)

5.1. Transport(scope1ifthecompanyownsthevehiclesandScope3if

theseareemployeeorcontractorownedvehicles)

5.2. Solidwaste(scope3)

5.3. Fugitiveemissions(scopevariesaccordingtosource)

6. Go green at home

44 45WHAT are the solutions?

9. Use demand-based ventilation control

Suchsystemsallowtheusertovarytheamountoffreshairtomeetactual

occupancymoreaccuratelybymonitoringtheamountofCO2intheair.

10. Use variable speed drives

Variablespeeddrivesenablepumpandfanspeedstobecontrolledtomatchthe

requiredflowrate,providinganefficientbalanceforconstantspeedplantoran

efficientwaytoprovidevariableflowrates.

6. Use smart meters

Installingsmart,networked,energymeterscanhelpidentifymajorenergyuses

withinabuildinginrealtime.

7. Commission a third party energy audit

Anenergyauditundertakenbyacollaborative,knowledgeablepartnercanhelp

developalongertermplantoimproveenergyefficiency.

8. Provide digital control systems to monitor all major plant

Introducingdigitalcontrolsystemsformodifyingflowrates,temperatures,pumps,

fansandvalvesallowsclosercontrolofthesesystems.Closercontrolmeansmore

efficientuse.

1. Ensure you have a comprehensive maintenance programme

Hightechequipmenthasitsplacebutsystemswillneverperformefficientlywithout

goodmaintenance.

Top 10 Initiatives to Reduce Emissions

2. Upgrade lighting

New energy efficient lamps, luminaries and electronic ballasts offer attractive

paybacksaswellasdecreasingtheheatloadfromlights.

3. Turn off or turn down

Turn off/down services such as air conditioning and lighting afterworking hours.

Increasetemperaturesetpointswithoutcompromisingthethermalcomfortofusers

ofspace.Seektobetterscaleservicesprovidedwithoccupancy.

4. Look at cooling plant efficiency

Chillersaccountforaround40%oftheloadwithinamodernofficebuilding.Cooling

plantefficiencycanbeimprovedbyresettingthechilledwatertemperatureupwards,

installing condenser cleaning systems and procuring high efficiencywater cooled

chillers.It’simportanttofocusonthebigstuffforimpact.

5. Test and commission new equipment

Careful testingofbuildingservicesbeforehandoverensures thatenergyefficiency

requirements are met. Systems also require periodic decommissioning during

theirlifecycle.

46 47WHAT are the solutions?

Buildings are a key focus areaBuildingsare responsible for89%ofelectricityused territory-wide, it is

thereforeasignificant target to reduceenergyandpromotetheenergy

efficiency of buildings. Besides energy use, other areas of concern for

buildings are the generation of waste, use of construction materials

andhowtheyarerecycled,wateruseanddischargeandhowbuildings

are integrated with other infrastructure and social systems. Most of a

building’senergyconsumptioncomesfromitsoperationalpracticessuch

ascooling,heating,andlighting.

3. The Business Case for Green Buildings AccordingtotheWorldBusinessCouncilforSustainableDevelopment(WBSCD),

thebusinesscaseforgreenerbuildingsiswellestablished.AUSstudy,forexample,

foundthatcertifiedgreenbuildingscost1.8%moretodesignandconstruct,but

yield20%costsavingsoverthelifeofthebuilding.

Obstacles encountered while achieving these benefits include fragmented

ownershipand incentives,short-termdecisionmakingand isolatedprocurement

processes.Asignificantproblemissplit incentiveswherethepartywhopaysfor

amoreenergyefficientbuildingisdifferentfromthepartywhobenefitsfromthe

savinginenergyused.

Hong Kong’s Building Environmental Assessment Method (HK BEAM) helps

overcome these barriers by providing a systematic, locally relevant approach to

including environmental performance and energy efficiency in the planning,

design,construction,operation,managementandmarketingofbuildings.

Hong Kong’s green building challengeEnhancing the energy efficiency of buildings requires the support not only of

developers and landlords but also of architects, planners, engineers, surveyors,

contractors, property managers, property developers, researchers and the

government.Theirinvolvementiscrucialinboththedesignofthebuildingandthe

managementofthebuilding.

TheHongKongGovernment’sEnvironmentandConservationFundwillallocate

HK$450million for non-profit organisationswhichmanage private buildings to

conductenergy/carbonauditsandenergyefficiency improvementprojects. It is

expectedthatover1,600projectswillbesubsidised.Thiswillalsocreatebusiness

opportunitiesforrelatedsectorsandit ishopedthatownersofprivatebuildings

willmakegooduseofthefundingschemetoimproveenergyefficiency.

2. Hong Kong’s GHG Emissions HongKong’sGHGEmissionscomemainly fromelectricityuse (mainlyScope2).

Energy industries,mainly power plants, are themost significant source ofGHG

emissionsandaccountedforabout64%ofthetotalemissionsin2006.Thetransport

sectorcomesnextandaccountedforabout16%,wastedisposalaccountedfor

about9%,whileothersectorssuchasindustry,agricultureaccountedfortherest.

OfHongKong’sGHGemissions,measuredinapproximatelyCO2equivalents,85%

were CO2, about 12%weremethane (CH

4), and the remaining 3%were from

Nitrous oxide ( N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and

sulphurhexafluoride(SF6)(EPD2006).

There is much that businesses can do to reduce electricity consumption.

ElectricityconsumptioninHongKongcanbebrokendowninto7categories.The

pie chart opposite and the sections below highlight solutions in each of these

categories.

• Spaceconditioning

• Lighting

• Industrialprocessequipment33andrefrigeration

• Cookingandhotwater

• OfficeEquipment

• Rail

• Others34,includingelectricalappliances

Note: For Electricity Generation, 64% shown in the graph is technically “Energy Industries,” (CLP and HEC). Other Energy Sector includes Towngas,

the generation of energy by manufacturing industries, construction and other

subsectors such as commercial and residential.

Source:EMSD(2008)35

Industrial Process Equipment & Refrigeration

11%

Cooking & Hot Water

6%

Office Equipment4%

Others31%

Rail2%

Lighting17%

Space conditioning

29%

Hong Kong Energy End-use Data

for 2006

Waste9%Agriculture

1%

Industrial Process3%

Other Energy Sector7%

Transport16%

Electricity Generation

64%

Breakdown of Hong Kong’s emissions

48 49WHAT are the solutions?

9. Consider paints, surfaces and planting (Low/Medium cost): Useofreflective

paintsandmaterialonbuildingsurfacesexposedtothesunandplantingcan

helptoreducespaceconditioningrequirements,ifwelldesigned.

10. Install a Building Management System (Medium cost): If youmanage the

space conditioning systems within your building, the installation of an

electronicsystemthatcontrolsthesesystemstooptimizeenergyefficiencycan

helpreduceemissions.

11. Install variable speed drives (Medium cost): You can install variable speed

drivestoenablepumpandfanspeedstobecontrolledtomatchaprevailing

requiredflowrateandhencesaveenergy.Energyconsumptioncanbehalved

byusingaVSDtoreducethespeedofafanorpumpby20%39.

Ensure new buildings and their equipment are energy efficient

12.Use the right standards (Medium cost): Schemes such as BEAMand LEED

provide guidance on new buildings. Use ASHRAE Standard 55-2004 and

EMSD’sCodeofPracticeforEnergyEfficiencyofAirConditioning40tomake

surethatcomfortismaintainedandenergyconsumptioniskepttoaminimum.

Ensurethattheexteriorofthebuildingissuitablyinsulated.

13. Consider the building envelope (Cost varies):Innewstructuresinsulationand

designofthewalls,windows,doorsandroofofthebuildingwillbeimportant

toensurethatlessenergyisusedinensuringthatspacesarecomfortable.Air

lockexternaldoors(revolvingordoubledoors)tominimiseinfiltrationofwarm

humidairfromoutsideandexfiltrationofconditionedairfromthebuilding.

14. Install demand-controlled ventilation (Medium Cost): Systemsareavailable

that regulate the intakeofoutsideairbasedonmeasurements taken inside

thebuilding (in accordancewithASHRAE standards). Thishelps avoidover-

ventilatingspacesthatarenotoccupiedandhencereducesconsumption.

35%ofenergyconsumptiononairconditioningforcontainersusedas

officeswassavedinatrialbyGammonConstruction.Containerswere

repaintedwithareflectivewhitepaint insteadthestandardGammon-

brand yellow colour. Since then, Gammon has started to repaint its

containersinthisreflectivewhitepaintinordertosaveenergy.

4. Specific Solutions

4.1 Solutions for Space Conditioning

Theheatingandcoolingofbuildingsaccountsfor29%ofHongKong’selectricity

consumption(2006data).Actionsyoucantaketominimiseelectricityconsumption

aredescribedbelow:

Adjust existing systems

1. Enforce good housekeeping (No cost):Ensurestaffturnoffallairconditioners

whentheyleavetheoffice.

2. Set appropriate indoor temperatures and humidity (No cost): Temperatures

shouldnotbehigherthan20°Cwhenitiscoldoutsideorlowerthan25.5°C

when it ishotoutside.The relativehumidity should rangebetween40and

70%36.Raisingtheroomtemperatureofanairconditionedofficeof1,000m2

from22.0°Cto25.5°CcansaveHK$16,000peryear37.

3. Set appropriate dress codes (No cost):Whentheweatherishotencourage

stafftowearclothesthatarecomfortableforhighertemperatures.

4. Use fans (Low cost):Usehigherfanspeedsratherthanloweringtemperature

ontheairconditionertodealwithanincreaseddemandforcooling.Usefans

toincreaseaircirculationwherenecessary.

Maintain existing systems

5. Maintain your ventilation and air-conditioning system (Low cost): Inefficient,

poorlymaintainedsystemscostyoumoneyandcauseunnecessaryemissions.

Cleaning filters reduces resistance. Regular checks by engineers and

maintenancecanpreventotherinefficiencies.

6. Reduce leakage (Low cost): Sealing gaps between doors and floors and

closingexternaldoorspreventsheatloss/gainandreducesconsumption.Keep

thewindowsshutwhenairconditioningisoperating.

Retrofit energy saving equipment

7. Install insulation, tinted windows and double glazing (Medium cost):

Installing insulationwithinwallsor roofcavities, tintedor reflectivewindow

coatingsanddoubleglazingwillreduceheatlossorgainandhenceelectricity

consumption.

8. Install/retrofit a water-cooled chiller system (High cost):Heatabsorbedbythe

coolingmediumwithinairconditioningsystemscaneitherbeemittedtothe

atmosphere(air-cooledsystems)ortotheenvironmentinsomeotherway(eg

water-cooledsystems).Water-cooledsystemsaremoreefficient(upto50%)

thanair-cooledonesandhavethepotentialtomakeamajorimpactonenergy

consumption.FurtherinformationisprovidedbyEMSD38.

10% of energy consumption on air conditioning was saved by the

MTRCorporationbyinstallingplatformscreendoors.MTRwasthefirst

undergroundrailwaycompanyintheworldtoinstallsuchdoors.

1.3millionKWhofpowerissavedbytheBankofEastAsiaeachyear

since the installation of water-cooled chillers at its headquarters in

Central.

50 51WHAT are the solutions?

ThepaybackperiodforreplacingexistinglightswithT5fluorescentlights

atGammonConstruction’sheadoffices inDevonHouse,TaikooPlace

andonsitewasonly9months.

55,000 kWh of electricity was saved per floor per year in a pilot

project to replace existing lighting with efficient T5 fluorescent

lighting on the 21st Floor of Arsenal House in Hong Kong. This trial

wasconductedbytheEnergyEfficiencyOfficeofEMSD.Averagedaily

lighting consumption dropped from 470kWh before the retrofit to

270kWhafterwards47.

Compactfluorescentlampscontainmercury.Thesetypesof

lightsshouldalwaysbedisposedofsafely.

4.2 Solutions for Lighting = 17% of Hong Kong’s electricity consumption (2006 data).

Muchoftheenergyweuseforlightingtodayiswastedasheatratherthanused

forillumination,soswitchingtomore-efficientlightingcanhaveaquickpayback.

Swappingconventionallightbulbsforenergyefficientcompactfluorescentlamps

(CFLs),forexample,cancutenergyuseby75%,savingmoneyonelectricbillsand

CFLslastupto10timesaslong.

Actionsyoucantaketoreduceenergyconsumptionfromlightingaredescribed

below:

Adjust existing lighting systems

1. Turn off lights (No cost): Leaving lights on when not required wastes

electricity.Lightsshouldbeturnedoffinareasthatareinfrequentlyusedand

shouldbeturnedoffatnight.Educationandawarenesscampaignstoswitch

off–aimedatstaff,includingcleanersandsecuritystaff–haveyieldedsavings

ofaround15%(2003)intheUK42.Changescanbeasasimpleaslabelling

light switches to help users select only the lights they need. Replacing a

singleswitchwithseveralcanensurethatonlythelightsthatareneededare

switchedon.

2. Organise office to maximise use of natural light (No cost): Making the

mostofnaturallightwillhelptoreducetheamountofartificiallightneeded.

Keepingwindowscleanwillensurelightisnotobstructed.

3. Clean light bulbs and fittings (Low cost): Cleaning bulbs and fittingswill

ensure the maximum illumination is provided and avoid reduced output

whichmayleadtoadditionallightsbeingturnedon.Cleaningdirtylampscan

improveefficiencyoflightsbymorethan20%43.

4. Install equipment to make it easy to turn off lights (Low cost): Keytags

for infrequently accessed areas, occupancy sensors to turn of lightswhen

roomsarenotinuse(egstorerooms,washrooms)andsecuritylightingfor

warehousescanhelpensurelightsareonlyusedwhenneeded.

5. Use mirror reflectors (Low cost):Mirrorreflectorsfortwintubefluorescent

lightingincreasereflectedlightoutputandreducebyhalfthenumberoflight

bulbsneededforthesamelevelofillumination.Trialscanhelptocheckthat

therightlevelofilluminationcanbeattained.

Change lighting

6. Change lights to more efficient compact fluorescent lamps (CFL) (Low cost):

These lampsuse75% less electricity and can last up to10 times longer44

thantraditional incandescentbulbsandreducemaintenancecostsbecause

of less frequent replacement. TheHongKongGovernment is studying the

benefitsofphasingout incandescent lightbulbsand looking into thecase

for introducing a statutory restriction on the sale of incandescent bulbs.

EMSDestimatesthatreplacingT8fluorescentlampswithT5onescansave

uptoHK$10,000peryearforanofficeof1,000m245.Thepaybackperiodfor

upgradingtoT8lampsvariesdependingontheretrofit,althoughisunder3

yearsformostcases.Energysavingsandpaybackperiodforrealcasestudies

areshownopposite(EMSD)46:

Glareoncomputersscreenscanresultfrompoorofficeorientation

andillumination.Usegovernmentguidanceandprofessional

advicetoavoidthis.Did you know?Theenergysavedbyreplacingoneconventionalincandescent100-wattbulbwithaCFLover

itslifetimeisenoughtodriveaToyotaPriushybridfrom

HongKongtoBeijingandbackagain!41

From To

Energy

Savings

(%)

Payback

Period

(Yrs)

Resulting

Lighting Level

(compared to

existing lighting

level) (%)

1200mmT8

(Electromagnetic

ballast(EMB))

T5systemwith

(QuasiElectronic

Ballast)

33 3.5 118

3x1200mmT8

(EMB)

2xT5with

Redirection56 1.8 89

52 53WHAT are the solutions?

Measuring Lighting LevelsLightinglevelscanbemeasuredusingaLuxMeter(oraFootcandleMeter).

Lightmetersconvertlightreadingsdirectlyintoluxorfootcandlesandcan

measurelightdirectlyfromthesourceorlightreflectedfromanobject.

The Code of Practice for Energy Efficiency of Lighting Installations57The Electrical and Mechanical Services Department (EMSD) Code of

Practice for Energy Efficiency of Lighting Installations (2007) forms a

partofasetofBuildingEnergyCodes,whichweredevelopedtoaddress

energy efficiency requirements on building services installations. This

Code of Practice sets the minimum requirements on energy efficiency

of lighting installations, and applies to any indoor space of hotels,

offices, shops, department stores, schools, car parks, restaurants,

places of public interest and places of public assembly. It does not

apply to indoor space used for domestic inhabitation or industrial

processing.Designersareencouragedtoadoptapproachestoexceedthe

minimumrequirements.

Ban the Bulb CampaignAmovement to phase out incandescent light bulbs in favour ofmore-

efficientlightingiscrossingtheglobe.Somecountriesthathaveannounced

target phase-out years for the inefficient bulbs include: Ireland 2009,

Australia, Argentina, Philippines 2010, United Kingdom 2011, Canada,

Taiwan2012,UnitedStates2014andChina2017.

An illustration of various daylighting strategies

Source: LEED for Commercial Interiors v2.0 Reference Guide

7. Change lights to more efficient Light Emitting Diode lamps (LED) (Low

cost): LEDlampscontainnofilamentsanddonotusebreakableglassbulbs.

LikeCFL(point6)theyuse75%lesselectricitythanincandesantbulbsand

havea longer life. Theyarenot suitable forall locations,but canbeused

toreplacelampsinsomeareas.ForexampleEMSDestimatesthatreplacing

conventionalexitsignswithLEDexitsignssavesuptoHK$220ofelectricity

persignperyear48.

8. Install dimming ballast and controls (Medium cost): Where daylight is

available, dimming ballast (electronic ballasts which limit the amount of

circuit in an electric current) and controls can minimise energy used for

artificial lighting. These systems control levels of artificial light in relation

tothe levelofnatural light,sothatwhendaylight isstrong,artificial lights

can be dimmed. To ensure quality, all electronic ballasts should comply

with national and international standards51: For further details see the

‘More’section.

Design for energy efficient lighting

9. Set appropriate illumination levels (Low cost):Excessiveilluminationwastes

energy.AdviceisavailablefromtheLabourDepartment(LightinginOffices52

andGuidelinesforGoodOccupationalHygienePracticeintheWorkplace53)

and the Chartered Institution of Building Services Engineers (Code for

Lighting)54onappropriatelevelsoflighting.Installlightingforparticularwork

areas(tasklighting),whichallowsgenerallightinglevelstobereduced.

Example recommended levels of illuminance55,56

Location Illumination (lux)