Is your iPhone leaving any carbon footprint on the Earth?

Idea Exchange – Karen Ho

Apple Inc. unveiled its plan to become carbon neutral across its entire business, manufacturing supply chain, and product life cycle by 2030. The company is already carbon neutral today for its global corporate operations, and this new commitment means that by 2030, every Apple device sold will have net zero climate impact.

This would have caused a ripple impact along Apple’s supply chain.

According to the company’s Environmental Progress Report published in July, more than three-quarters of the emissions from making Apple’s products come from their suppliers. In order to achieve this goal, Apple would have to get help from their major suppliers. That includes Taiwanese electronics giants like TSMC and Foxconn, which still get about 90% of their power from non-renewable sources.71 of Apple’s hundreds manufacturing partners in 17 different countries have committed to 100% renewable energy for Apple production. Their Supplier Clean Energy Program now has 7.8 gigawatts of clean energy commitments. Once completed, these commitments will avoid over 14.3 million metric tons of Carbon Emissions annually—the equivalent of taking more than 3 million cars off the road each year.

Taiwanese companies make up a significant proportion of Apple’s suppliers worldwide because of their dominance of sectors such as contract manufacturing and made-to-order semiconductors.

Taiwan Semiconductor Manufacturing Co (TSMC)., which exclusively makes cutting-edge chips for Apple’s iPhones and iPads, and used renewable energy and credits for 6.7% of its power in 2019, has committed to producing renewable energy for its entire operations by 2050, according to their press releases to join RE100 also from July. RE100 is the global corporate renewable energy initiative bringing together hundreds of large and ambitious businesses committed to 100% renewable electricity.

Hon Hai Precision Industry Co., also known as Foxconn, which assembles more than 100 million iPhones annually, will be installing solar panels on the roofs and in places like Henan province in China, where coal is still the dominant source for power. The company had installed 224 megawatts of clean energy by the end of 2019, up from 33 in 2017, the company said in its sustainability report.

The morale of this story is that customers can make a positive impact to change how their suppliers run the business, and in this case, leaving no carbon footprint to protect our Mother Earth.

Note: This is not an advertisement for Apple Inc.

Sources:
https://www.apple.com/hk/en/newsroom/2020/07/apple-commits-to-be-100-percent-carbon-neutral-for-its-supply-chain-and-products-by-2030/

https://www.apple.com/environment/pdf/Apple_Environmental_Progress_Report_2020.pdf

https://www.honhai.com/s3/reports/CSR%E5%A0%B1%E5%91%8A%E6%9B%B8/%E8%8B%B1%E6%96%87%E7%89%88/2019%E9%B4%BB%E6%B5%B7%20CSR%20report_en.pdf

https://www.tsmc.com/csr/en/update/greenManufacturing/caseStudy/37/index.html

https://www.there100.org/re100


FoE (HK) welcomes Hong Kong Exchange & Clearing Limited’s (“HKEX’) initiatives to publish a consultation paper seeking public feedback on proposals to introduce a paperless listing and subscription regime, suggesting all listing documents in a new listing to be published solely in an electronic format, as we aim to help mitigate climate change by saving papers and reducing carbon emission.

Learn more about us supporting eIPO appeal in HERE.

Green and Sustainable Banking – A breathing point without mask in COVID-19

Mostafa Monira Firdouse, Green Finance Advisor of Friends of the Earth (HK)

The Hong Kong Monetary Authority (HKMA) has recently published its White Paper on Green and Sustainable Banking, as well as a circular to share a range of practices adopted by major authorized institutions (AIs) for managing climate risks (7 July Circular). These form part of a series of initiatives by the HKMA that are intended to help shape a greener and more climate-resilient banking system.

At the same time, the Hong Kong Stock Exchange (HKEX) announced plans to launch the HKEX Sustainable and Green Exchange (STAGE) on June 18th. This platform intended to act as a central hub for data and information on sustainable and green finance in Asia.

In my view, these remarkable initiatives are timely and hope it will be implemented successfully.  

‘The white paper’ – how much it can generate greener and sustainable financing:

At the beginning, HKMA conducted a survey in April 2019 to understand AIs’ (Authorized Institution’s) awareness of and progress in developing green and sustainable banking (please refer to Part III of this paper for more details of the survey). On a question about the potential benefit of developing green and sustainable banking business, “corporate image and reputation benefits” was considered by the most AIs (Authorized Institution’s) as significant (68%), followed by “more business opportunities and new income sources” (66%), “meeting customers’ demand” (62%) and “portfolio diversification” (52%).

Honestly, I am impressed to see the level of awareness, I believe Mangkhut taught us a lot.

In the white paper, the HKMA also provides a summary of its observations; including a range of practices adopted by financial institutions, set out under each of the relevant guiding principles. AIs are recommended to consider these practices when developing their climate risk management framework. They should take into account the nature, scale and complexity of their businesses, and ensure that their risk management framework is proportionate and fit for purpose.

AIs are also reminded to note the importance of being agile when managing climate risks, which are products of multiple interacting forces (for example, natural, technological and societal) and are therefore inherently uncertain and prone to changes. They should keep abreast of the latest standards on climate risk management and make adjustments to their approach based on actual developments.

Specially, I am looking for implementation of nine guiding principles on governance, strategy, risk management and disclosure.

What I am missing;

Divestment: Climate change needs immediate action on divestment in certain sector, however, the divestment plan is not in white paper.

Sector Selection: No indication on sector categorization for climate focus investment.

Collaboration: As we know ESG investment is already pretty established in Hong Kong. HKEX listed companies are mandatory ESG scrutiny. Besides. HKEX’s STAGE, aiming to act as a central hub for data and information on sustainable and green finance in Asia. So, are the AI’s collaborating with HKEX for data and information?


Visit www.foe.org.hk for more news about Friends of the Earth (HK)!
Green Finance Facebook page: https://www.facebook.com/greenfinancefoehk/
FoE (HK) LinkedIn page: https://www.linkedin.com/company/friends-of-the-earth-hk/

我們的危機感足夠嗎?─從社會責任債券引起的反思

香港地球之友董事 麥礎允

從2020年初到現在,筆者留意到市場上有關可持續金融的資訊好像增加了。筆者認為,2019冠狀病毒病令社會大眾開始更留意到社會責任的重要性,而且各個國家都有逼切的需要去使用社會責任債券等工具作為融資渠道,去負擔日漸增加的醫療和其他各種開支。

根據國際資本市場協會數據,截至2020年上半年,在全球資本市場上的可持續金融工具(綠色/社會責任/可持續債券)發行量約為1300億美元,其中綠色債券所佔的份額仍然是所有工具當中之首,但其次已經是社會責任債券,而社會責任債券在2020年上半年經歷了相對高速的增長。

這個現象不禁令筆者反思,我們是否只會在有重大影響的事情發生了以後,才會體會到未雨綢繆的重要性?對於新型病毒的出現,人類社會尚且可以利用醫療科技研發疫苗去應對。如果我們的環境受到不可逆轉的破壞,我們還有方法去應對嗎?如果我們現在還不加緊將資源投放在環境保護上,到時還來得及嗎?

筆者希望,這大本年的疫症肆虐可以令社會大眾開始反思這些看起來「這麼近那麼遠」、但其實跟我們有切身關係的課題。希望現在綠色金融的發展,可以成為一個契機,讓我們正視地球先生的慢性病,使它不會像2019冠狀病毒病一樣忽然出現,殺大家一個措手不及。


更多最新消息及資訊,請瀏覽香港地球之友網站www.foe.org.hk
綠色金融Facebook專頁: https://www.facebook.com/greenfinancefoehk/
香港地球之友LinkedIn專頁: https://www.linkedin.com/company/friends-of-the-earth-hk/

Register Now for CESGA® through FoE (HK)!

Friends of the Earth (HK) is pleased to announce the registration for CESGA® through FoE (HK) begins today!

Since July 2020, FoE (HK) has been appointed as ESSAS’ Value Added Partner in Asia region. We will help administer the EFFAS Certified ESG Analyst (CESGA®) programme and host workshops as well as examinations in Hong Kong for candidates to become an EFFAS Certified ESG Analyst (CESGA®). The international accredited CESGA® programme is for those who would like to acquire and build up essential ESG knowledge or for users to become ESG Analysts and specialists.

Interested to take the course? FoE (HK) brings you special offer today! You can now register EFFAS CESGA® online course and take the Certification exam, either online or physical venue in Hong Kong, using FoE (HK) discount code. With the exclusive code, you will GAIN:

  • General membership of Friends of the Earth (HK) with access to volunteering activities and events
  • FREE Priority passes to FoE (HK)’s “Green Finance Connect Series” events in 2020 and 2021
  • FREE FoE x CESGA exam experience sharing
  • Local community for networking: You will also be invited to join a local club of EFFAS holders

Register now to join our ESG community!

For more information, please contact/visit:
esg@foe.org.hk / (852) 3184 1534 / https://bit.ly/3fAte3a

E/S/G真的一樣重要嗎?

香港地球之友綠色金融顧問 黃思靈

時常聽到ESG(即環境Environment、社會Social及管治Governance),未知這三個元素在大家心目中是否都一樣重要?筆者最近看了一些資料,才發現跟原有的想法大有差異。

ESG所說的其實都是風險管理。不同行業的公司面對ESG這三大支柱下的不同主題(或考慮)敏感度均不一致。比如說,「環境風險」對一家主要靠燃油或燃煤生產電力的發電廠來說很重要,因其是否符合監管機構對公司於環境保護方面的要求,除了可能影響成本與盈虧,更嚴重的甚至會導致發電廠能否繼續維持經營權;但同樣的「環境風險」對銀行來說重要性則較低,反之「管治」不當帶來的風險可能更高。

而且,如上述提到的發電廠例子,即使其已經比別的行業為環境保護作出更多的關注,假如只根據公司的行為來評價ESG,評分可能很高,然而大家都會同意發電廠對環境極具破壞性,無論其做了多少,都只屬於事前的防禦措施或事後的彌補。所以一般來說,評級機構會再按行業對公司的ESG分數加以調整,以增強不同行業公司之間的可比較性。

因此,在各種考量下,ESG這三大元素在不同(行業)公司裡的「份量」幾乎不可能統一。每個市場、每個社區以至每個人對這些元素重要性的看法亦有分歧。難怪目前ESG評級機構或標準仍是五花八門,未有一個飽受各方認可的準則。

與其要當ESG評審的權威,筆者建議這些評級機構倒不如提供更多和ESG相關的數據,利便各人能從自己的立場篩選相關的指標再組成各自的評分標準,大大提高數據的可使用性,也幫助推動ESG在社會的發展。


Visit www.foe.org.hk for more news about Friends of the Earth (HK)!
Green Finance Facebook page: https://www.facebook.com/greenfinancefoehk/
FoE (HK) LinkedIn page: https://www.linkedin.com/company/friends-of-the-earth-hk/