Swire Pacific has made decisive progress in transforming transition planning into tangible results. As Finance Director it is my role to strengthen the direct link between value, strategic risk management and sustainability – all the while ensuring long-term sustainable value to shareholders.
Integration and oversight
We have continued to integrate sustainability practices into the core functions of the organisation, working closely with our teams and Operating Companies to deliver not only enhanced risk management but also environmental leadership.
Our Group Sustainability Committee, which is made up of the core divisions’ Chief Financial Officers, the Swire Pacific Head of Enterprise Risk Management and our Sustainability Heads at both the Head Office and Operating Company level, embarked on its first full year of collaboration. Healthy discussions between the C-suites, finance and sustainability practitioners brought materiality and risk to the fore and paved the way for risk-related activities that informed our revised standard materiality assessment. We revisited how policies are structured and principled at group-level, and how they are implemented by our businesses. Internal Audit has been empowered to assess policy implementation, to ensure ESG risks are being managed appropriately.
We continue to use two core financial tools — the Sustainable Development Fund and our Internal Carbon Pricing mechanism — to integrate sustainability into financial planning and investment decisions. Our Internal Carbon Pricing model, applying both a carbon fee and shadow price, helps assess emissions impacts, quantify carbon risks, and support decarbonisation investments aligned with our net‑zero pathway. The Sustainable Development Fund provides up to HK$100 million annually to de-risk innovative projects that reduce carbon, water and waste footprints. In 2025, we strengthened the Fund with a new smart‑metering stream to improve data accuracy and reduce reporting burden, enhancing the quality and efficiency of our sustainability management.
Outcomes and execution
In 2025, we further improved our ESG risk management processes, by incorporating an ESG risk universe into our internal risk taxonomy and conducting detailed climate and nature-related risk assessments with our two largest Operating Companies, in line with our corporate risk register. This has deepened our understanding of climate, nature, and social risks and aligned our responses to evolving standards and stakeholder expectations.
Our performance against the 2030 sustainability targets is a testament to how integrated sustainability and finance can create business value. In 2025:
Our operational emissions fell by 10%, progress that puts us within touching distance of our quantified emissions goal
Our water stewardship programme resulted in a 2% reduction in water withdrawal
We achieved a 64% rate for waste diversion from landfill
We achieved our objective of 30% female representation on our Board on average over the past 3-year cycle
These changes are not only measured in the results; they also represent improvements in efficiency, innovation, and engagement right across our businesses.
Resilience and returns
Our progress outlines the importance of setting clear sustainability objectives, leveraging internal and external expertise, demonstrating the business value of sustainability, and using transparent reporting to drive and communicate our actions.
By positioning sustainability at the heart of our strategy, we are securing long-term strength and profitability for our business. Thank you for supporting Swire Pacific as we continue in our pursuit of tangible change for our operations and our communities.
Martin Murray
Finance Director
Swire Pacific