The scientific reality of climate change is being felt increasingly by communities globally. To avert the worst effects of the rapidly changing climate, the world needs to limit global temperature rise to 1.5°C and transition to a net zero carbon emissions economy by 2050.

Failure to mitigate climate change, or adapt to it, represent the two most severe global risks over the next decade, underscoring why the Group has identified its long term effects as a key risk. According to the World Meteorological Organization (WMO), the chance of breaching the 1.5°C limit before 2030 stands at 80%.

Our businesses will be affected by climate change directly and by governmental and regulatory mitigation and adaptation responses. Decarbonising our operations across all our businesses is a strategic imperative. We must also reduce value chain emissions and strengthen our resilience to climate impacts.

Our approach

We are committed to play our part to limit global temperature rise to 1.5°C, in line with the Paris Agreement. Progress requires technological advancements, mature markets, and enabling policy environments. Our strategy is to support their development, and adopt feasible approaches that align with our business objectives and help us achieve our goals.

SwireTHRIVE and our Climate Change Policy outline what we will do to reduce our emissions and adapt to climate change.

The Group and its operating company Swire Properties both received an A- rating in the 2024 CDP Climate Change questionnaire.

The Group and its operating company Swire Properties both received an

in the 2024 CDP Climate Change questionnaire.

Net zero by 2050

Our ambition is to achieve net zero emissions by 2050. This will not be easy. Only 4% of our emissions come from our own operations, the rest come from our value chain. We operate and invest in the carbon intensive aviation sector, which is difficult to decarbonise without breakthroughs in alternative fuel technology. We also face challenges including the limited availability of renewable energy in our markets.

To reduce emissions, our roadmap includes:

Improving energy efficiency			Using more renewable energy
Choosing low-carbon and energy efficient products			Encouraging our suppliers and customers to decarbonise

We are reliant on the decarbonisation efforts of our businesses and so work closely with them and set policy, targets, and approaches. Our businesses have location and sector specific challenges and design responses accordingly. Targets and approaches at the operating company level align operational action with the ambition of SwireTHRIVE, and have the effect of reducing emissions of the Group. We aim to scale solutions across the Group where those opportunities exist.

In addition to investments already being made by our businesses, we are implementing two key tools to finance and accelerate emissions reduction. Since 2019, our yearly HK$100 million Sustainable Development fund has supported trials of innovative green technology solutions, with a view to accelerating their adoption at scale. For the past two years we have implemented a Board-approved Internal Carbon Pricing (ICP) pilot to align decision making with Group and operating company carbon reduction targets.

Carbon removal and verified carbon offsets form part of our strategy, particularly in aviation where low-carbon solutions are not yet available at scale. But our priority is to reduce our absolute GHG emissions as much as we can first.

This chapter of our report sets out how we are actioning our roadmap, from a focus on our 2030 target and our own operations, to how our operating and associate companies are engaging key stakeholders in their value chains and their efforts to create an enabling policy environment.

The Group generated 474 thousand tonnes of scope 1 and 2 GHG emissions in 2024, a 21% decrease from 2023. The Beverages and Property divisions accounted for more than 83% of the Group’s emissions in 2024. Swire Properties absolute GHG emissions decreased by 15%, while Swire Coca-Cola’s emissions decreased by 28%. Swire Properties has implemented energy-saving measures in their HVAC system of their Hong Kong portfolio, set strict controls for the circulation pumps of the heat-pump system at Taikoo Li Sanlitun, Beijing, and decreased electricity usage at HKRI Taikoo Kui and Taikoo Hui Guangzhou. Swire Coca-Cola has continued to invest in technology to improve energy efficiency, and increased its procurement of renewable energy in the Chinese Mainland.

The emissions of our Aviation division decreased by 1% and emissions from our Trading & Industrial businesses decreased by 1%. For full details of the scope of our data, please see our Reporting methodology.

Electricity consumption is our largest source of GHG emissions. We used around 962 million kilowatt-hours of electricity in 2024 and generated 565 thousand tonnes of indirect (scope 2) emissions, a decrease of 6% in electricity use from 2023.

Approximately 88% of our operational emissions is generated from electricity. Prioritising energy efficiency in our buildings and operations has the dual benefit of reducing costs and our emissions intensity.

Across the Group, we continued to upgrade our lighting, cooling, boiler, and refrigeration systems to more energy efficient models. In 2024, Swire Properties continued to optimise heating, ventilating, and air conditioning systems, installed high-efficiency chillers, and conducted energy-saving retrofits across its properties. Approximately 99% of its assets (by gross floor area) in Hong Kong and the Chinese Mainland are certified to the ISO 14001 and ISO 50001 standards for environmental and energy management.

Swire Properties continues to roll out a cloud-based smart energy management platform across all its properties in Hong Kong and the Chinese Mainland portfolio. Originally developed with Schneider Electric as a recipient of the Group’s Sustainable Development Fund, the platform uses the Internet of Things, big data analysis, artificial intelligence, and cloud computing to generate energy saving insights and optimise energy consumption. The platform identified opportunities to achieve a 50% reduction in energy use from air handling units serving the central link bridge at Cityplaza, Hong Kong.

Swire Properties’ hotels use solar energy to heat up water in their kitchens, and have induction cookers, variable speed controls for kitchen exhaust fans, heat recovery functions for gas cooking stoves, and electric conveyor dishwashers to maximise kitchen energy efficiency.

Swire Coca-Cola deploys innovative technologies to reduce emissions and costs. It successfully piloted an advanced technology known as “subcarb” on four of its sparkling production lines at its Hangzhou plant. The technology improves on the traditional mixing process for beverage base and carbon dioxide, and allows the filling temperature to be raised to 17°C, instead of having to cool the product to 11°C. Initial tests showed a 44% improved energy efficiency of the chiller, and 40% less steam required to warm the product back up again. Swire Coca-Cola continued to scale this technology in the Chinese Mainland in 2024.

Since 2020, Swire Properties has included low-carbon procurement specifications – developed in accordance with international standards such as ISO 14067 – for construction materials such as concrete with pulverised fuel ash or ground granulated blast furnace slag, rebar, and structural steel with recycled content. It is the first real estate developer in Hong Kong to contractually require low-carbon building materials for new projects and is exploring extending this practice to its developments in the Chinese Mainland.

It has set low-carbon design targets for Taikoo Li Xi’an that aim to reduce landlord energy use intensity by 40% as compared to its existing Chinese Mainland properties. It is incorporating lifecycle energy efficiency and low-carbon energy use strategies into the project design. Low carbon ground source heat pump systems will provide up to 60% of the project’s annual heating demand using piles up to 2.5km in depth.

Swire Properties supports the Hong Kong Green Building Council’s (HKGBC) Zero-Carbon-Ready Building (ZCRB) Certification Scheme. Seventeen of its buildings have received certification, the highest number among all participating developers. Both One Taikoo Place and Two Pacific Place received a “Super Low” energy performance certificate rating for both Landlord and Whole Building portions. It also pledged to improve the energy performance of One Island East from “Low” to “Extra Low” by committing to increasing energy savings by 10% by 2030. One Island East was one of only three buildings in Hong Kong to receive a target setting certificate under the scheme.

In Hong Kong, all new Swire Coca-Cola trucks can use B7 biodiesel and comply with Euro VI emission standards. HAECO recently completed the upgrading of a fuel station to cater for the use of biodiesel (B5). These fuels are produced from waste cooking oil, animal fat, and other oils which can significantly reduce emissions. HAECO has replaced 60% of its traditional diesel use to biodiesel in its mini fuel station in Hong Kong.

In 2023, HAECO introduced the first e-tow tractors for pushback operations at Hong Kong International Airport. In 2024, it purchased seven e-tractors and 10 e-vans as part of its vehicle electrification plan in support of its decarbonisation. These electric-powered vehicles will help it to reduce carbon emissions by up to 1,150 tonnes per year during full operation. At HAECO Xiamen, the installation of a centralised control system for the central air conditioning and additional efficiency replacement works are expected to reduce carbon emissions by  a further 120 tonnes per year.

More than 90% of our GHG emissions occur outside of our direct operations. We do not control these assets and activities, but through our decisions and relationships we can work to reduce material scope 3 emissions.

Our starting point for tackling scope 3 emissions involved an initial mapping exercise to identify material sources of emissions in our investments and in the value chains of our businesses. All scope 3 categories were assessed to understand what is important, applying a materiality threshold defined as 5% of total scope 3 emissions, in accordance with the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. Each year we further strengthen our approach, either by increasing our scope 3 coverage or refining calculation methods where possible to use more primary data.

We have identified value chain emissions from investments, purchased goods and services, downstream leased assets, and use of sold products as significant. Swire Pacific has a significant interest in Cathay Pacific, and accounts for a proportion of its GHG emissions under our scope 3. This proportion is equivalent to the Group’s shareholding interest in the company. Our most material value chain emissions are addressed through targets at our operating compaines.

Under business as usual conditions, we expect Cathay Pacific to contribute around 60% of our scope 3 emissions. This presents challenges to our net zero ambition. Although various pathways to net zero are possible within the hard-to-abate air transport sector, all feature Sustainable Aviation Fuel (SAF) as a key component for curtailing carbon emissions due to its ability to reduce over 80% of life cycle GHG emissions when compared with traditional jet fuel. Recent figures from the International Air Transport Association (IATA) show that SAF fuel production, although increasing rapidly, remains very low.

Despite the challenges, Cathay Pacific has committed to achieving net zero carbon emissions by 2050, and for SAF to constitute 10% of its total fuel consumption by 2030. It has also set a target to use SAF to offset 10% of the carbon emissions from employee duty travel on Cathay Pacific flights. In 2024, Cathay made significant progress in increasing its use of SAF both at its Hong Kong home base and at key international locations. The total volume of SAF used on Cathay Pacific flights in 2024 surpassed the combined total of the past three years.

Cathay Pacific also aims to reduce its emission intensity by 12% per revenue tonne kilometre by 2030 from a 2019 baseline. This near-term target builds upon its track record of being among the top five airlines with the lowest emission intensity since 2014. It has also set a target to reduce ground emissions by 32% by 2030 and 55% by 2035 from a 2018 baseline.

These targets reflect Cathay Pacific's five-pillar net zero strategy which includes: sourcing and utilising SAF in its operations while supporting industry-wide development through collaboration and leadership; continuous fleet modernisation; continuous improvements in fuel efficiency; supporting the development of transformative new technologies to help reduce the environmental impact of aviation; and carbon offsets and/or carbon removal.

In 2024, the Cathay Group has committed more than HK$100 billion in investments over the next seven years. This investment includes Cathay’s purchase of 30 Airbus A330-900 aircraft with the right to acquire an additional 30 aircraft in future; aircraft that can reduce emissions from flights by up to 25% when compared to the models they will replace.

To accelerate the development of SAF, Cathay Pacific has rolled out SAF projects with world-renowned partners. It is pursuing a strategic sourcing approach that leverages its global network, supports comprehensive policy development and fosters partnerships with key stakeholders across the industry. In 2024, Cathay completed its first voluntary SAF uplifts on commercial flights in Europe, at Amsterdam Airport Schiphol and London Heathrow Airport. Building on prior uplifts in Asia and North America, these initiatives have provided valuable experience in collaborating with diverse SAF suppliers, managing logistics, and addressing certification schemes.

Cathay Pacific has

100+ fuel-efficient

next-generation aircraft in its delivery pipeline

Swire Pacific has supported the Cathay Pacific Corporate Sustainable Aviation Fuel (SAF) Programme since its launch in 2022. We contribute to the purchase of internationally recognised SAF, along with the programme’s other members, which will be used to power Cathay Pacific flights. Through its programme, Cathay Pacific will issue verified emissions reduction certificates and proof of sustainability to its customers, including Swire Pacific, reducing our scope 3 carbon emissions.

In 2024, Cathay implemented an internal carbon pricing mechanism to qualify carbon impact in investments, strategic decisions and projects as well as to drive decarbonisation initiatives for continuous improvements. Currently, a shadow price is set at US$100/tCO₂e, with reference to international carbon regulation standards such as the European Union Emissions Trading System (EU ETS) and the United Kingdom Emissions Trading System (UK ETS). This applies to all business cases and activities involving jet fuel consumption, which accounts for about 99% of its total emissions.

Cathay Pacific provides Gold Standard accredited offsets through its Fly Greener programme.

Emissions from packaging and the electricity consumed by Swire Coca-Cola’s cold drinks equipment (CDE) accounts for around 74% of its total value chain emissions. To meet its 2030 target, Swire Coca-Cola needs to reduce its emissions from packaging by increasing its recycled content and promoting post-consumption recovery and recycling. Since 2021, it has used 100% recycled PET for Bonaqua water bottles in Hong Kong. As of April 2024, all 500ml Coca-Cola trademarked beverage bottles in Hong Kong are made from 100% recycled material (excludes cap and label). The new packaging features “I’m a 100% rPET bottle” and “Recycle Me Again” messages to raise recycling awareness and encourage consumer action. Other than the Hong Kong market, Coca-Cola's 100% rPET bottles have also been introduced in our Vietnam market.

With proactive collaboration between its procurement team and beverage cooler suppliers, Swire Coca-Cola has identified ‘next generation’ CDE that uses 50% less energy compared with current equipment. All its new CDE will have high energy efficiency ratings and use natural refrigerants. As the new technology is phased-in across the Chinese Mainland, it will result an estimated reduction in scope 3 emissions by 2030 that equates to just over a third of the overall reductions required to meet its Science Based Target (SBT).

Carbon offsets can play a vital role in our net zero strategy as they allow us to compensate for hard-to-abate emissions within our value chain and emissions from technologically constrained sectors.

Our net zero commitment aligns with the approach defined by the Science Based Targets initiative’s (SBTi) Corporate Net- Zero Standard and references the Institute of Environmental Management and Assessment’s carbon mitigation hierarchy. We aim to reduce our scope 1 & scope 2 GHG emissions by 95% and scope 3 by 90%, or as near to as possible, before purchasing high quality third-party accredited offsets to reach our goal.

Our approach contrasts with carbon neutrality which we define as counterbalancing CO₂ emissions (not necessarily all GHG emissions) with carbon offsets without having reduced emissions by an amount consistent with reaching net zero.

We recently reviewed our approach, the carbon offset market, and emerging standards including the Core Carbon Principles developed by the Integrity Council for the Voluntary Carbon Market. We have produced guidelines for our operating companies to standardise and guide decision making on offsetting across the Group.

Our evolving approach builds on our existing Carbon Offsetting Policy, which has been in place since 2009. Under the current policy, all Swire Pacific subsidiaries are required to offset the emissions associated with staff business air travel. Offsets purchased must, at a minimum, meet the Verified Carbon Standard or Gold Standard. In 2024, head office and operating companies purchased more than 15,900 tonnes of carbon offsets through Fly Greener. Cathay Pacific purchased more than 54,000 tonnes of offsets including those for duty travel, individual and corporate customers, cargo shipments and public offset promotions.¹

We have owned and managed a Verra certified carbon offset REDD+ project in Paraguay since 2010. The project is designed to generate 10,000 carbon credits per year for 20 years. The Verified Carbon Units (VCUs) are dual accredited under both the Verified Carbon Standard (VCS) and the Climate, Community and Biodiversity Standard (CCB).

We want to improve the capacity of our businesses, our employees, and the communities in which we operate to adapt to climate change. This involves having, and helping to provide access to, information, skills, and physical resources. Swire Pacific, Swire Properties, Swire Coca-Cola, and HAECO Hong Kong support the Business Environment Council (BEC) Net-zero Carbon Charter in Hong Kong.

Swire Properties has completed a study of its exposure to risks and opportunities under different climate scenarios. The types of hazard models used included urban drainage modelling, riverine modelling, coastal hydrodynamic modelling, and intensified typhoon assessments. Its climate design approach is intended to be flexible and adaptive enough so that building designs can be changed or upgraded according to fluctuating climate conditions or impacts that differ from projections. The study indicated that its properties are exposed to low to moderate levels of physical risk, due to its relatively robust mitigation measures. Improvements for individual buildings were identified, including upgrading flood protection measures and alert systems, chiller efficiency improvements, glass facade inspections, and smart monitoring systems.

For future investments, Swire Properties has integrated sustainability criteria into the due diligence risk assessment process for new acquisitions, including climate adaptation and resilience, flood risk assessment, energy efficiency, and carbon emissions of the acquired assets.

It has had a Business Recovery Plan in place since 1997 to ensure that it maintains critical crisis planning and execution capabilities in the event of major incidents, including extreme weather events. It has also put in place local crisis response plans for all portfolios.

Swire Properties is a signatory to the Business Environment Council’s (BEC) Power Up Pledge in Hong Kong, which commits the company to sharing knowledge and best practices, and collaborating to promote electrification of construction sites and transition away from diesel generators.

Swire Coca-Cola assesses water access, quality, and quantity risks for all its bottling plants. It has completed a physical risk assessment using the Climanomics platform, and conducted a scenario analysis workshop focused on understanding key physical and transition risks and the effectiveness of its controls in mitigating those risks.

Swire Coca-Cola works with governments and NGOs to protect local water sources that may be at risk from climate change or anthropogenic activities. In the Chinese Mainland, its flagship CSR programme “Carbon Reduction Alliance” engages value chain partners to reduce carbon, and support local communities and biodiversity. Read more in Nature.

Swire Coca-Cola also provides bottled water to people affected by natural disasters in the Chinese Mainland as part of The Coca-Cola Company’s Clean Water 24 emergency plan. Within 24 hours of a natural disaster, Swire Coca-Cola will identify the nearest warehouse and arrange delivery, in collaboration with local governments, supporting organisations and NGOs.