Businesses Play Crucial Role in Addressing Climate Crisis

Businesses Play Crucial Role in Addressing Climate Crisis - Here's the Strategy

In a significant move towards combating climate change, the Hong Kong Exchanges and Clearing (HKEX) has announced its commitment to achieving group carbon neutrality by 2024 and net zero emissions by 2040. This ambitious goal places HKEX at the forefront of efforts to address the global challenge of carbon emissions.

The call for climate action is echoing across industries and borders. HKEX's initiative is just one example of many Hong Kong companies that are setting carbon neutrality goals. For instance, fashion retailer Desigual aims to reduce its absolute greenhouse gas emissions by 65% by 2026 compared to 2019 and achieve carbon neutrality by 2050. They have already made strides by increasing the percentage of sustainable clothing and eliminating single-use plastics in packaging.

The year 2024 was the hottest year on record, underscoring the urgency of these efforts. Sustainability is not just a nice-to-have, but a necessity for the long-term health and resilience of communities, markets, economies, and societies.

Carbon markets, like Hong Kong's Core Climate, offer a path forward to carbon neutrality and net zero emissions. HKEX's journey to carbon neutrality has provided valuable insights on planning, supply chain assessment, objective setting, and agility.

However, not all parts of the world are committing to this fight. Some are even rolling back on their climate commitments. This makes the efforts of companies like HKEX even more crucial.

The discussion on climate action is particularly relevant to the Asia Pacific region, especially in light of the Sustainable Development Goals (SDGs) with a focus on Climate Action (SDG 13). Companies have a responsibility to drive climate change action, and investors and customers expect corporates of all sizes and sectors to be a positive force in driving the net zero transition.

HKEX aims to drive sustainable practices not just within its own operations, but also set an example for the wider business community. KPMG's research shows that some companies in Hong Kong are indeed working towards sustainable practices.

Climate change is causing real and damaging effects on the environment and communities worldwide. To address this, there is a wider effort in Hong Kong to enhance sustainability reporting and align with international best practices.

Hong Kong's government aims to achieve carbon neutrality before 2050, contributing to the goal of creating a sustainable future for generations to come. The world is watching, and the time to lead is now, with a focus on sustainable development, carbon capture, use and storage, decarbonisation, and carbon offsetting.

The growth of Hong Kong's carbon market is being matched by an ever-widening range of tools and local expertise to help businesses calculate their emissions and stay on track. The cost of failing to act on climate change is already significant, both economically and in terms of human toll.

Climate action can't wait due to the increasing frequency and severity of weather events. The World Economic Forum at Davos emphasised the need for all, including businesses and communities, to build resilience and agility to face climate challenges. The opportunity lies in cutting through the noise, taking action, and addressing the challenge of climate change head-on.