CK Asset Holdings

CK Asset aims to decrease its GHG emissions intensity by 9% by 2030 compared to 2019. The target covers only scope 2 emissions and applies to the company’s property management, hotels, serviced suites and office segments. Greene King’s targets to reduce absolute scope 1, 2 and 3 emissions by 50% by 2030 compared to 2019 have been validated by the Science-Based Targets Initiative (SBTi) as aligned with the company’s 1.5°C pathway. CK Asset has no further emissions reduction goals beyond 2030.

CK Asset should establish long-term and intermediate targets at regular intervals of five years to encourage immediate actions towards achieving its long-term goals. To improve further, the company should aim to reduce all scopes of emissions and make sure its targets are aligned with a 1.5°C pathway.

CK Asset reports emissions intensity by type of activity, such as property development, property management and hotel and serviced suite operations. The trend in past emissions intensity for buildings managed by the group is aligned with its 1.5°C decarbonisation pathway. However, the company does not report the expected in-use emissions of its delivered buildings. Additionally, the company does not quantify plans to renovate its portfolio. As a result, it is not possible to reliably forecast the company’s emissions intensity between 2021 and 2026.

CK Asset’s climate change governance is managed by the board of directors. However, there is no indication that members of the board possess expertise in climate change or low-carbon transition. The company also states that it seeks professional advice from external experts and provides training to members of the board, key personnel, and a sustainability working group.

CK Asset obtained two sustainability-linked loans but does not have a publicly available transition plan. There is no evidence that the company offers financial incentives to employees or that it has conducted climate scenario testing.

The company engages key stakeholders through various communication channels, mainly tendering, supplier screening and assessments, written comments and responses, and on-site visits. The company has a Supplier Code of Conduct that invites suppliers to emulate its standards, practices, and principles for minimising energy consumption and carbon footprint.

The company encourages innovation to reduce climate impact and places higher priority on eco-friendly products in procurement processes. It can further improve its performance by creating quantified targets and reporting requirements for all suppliers.

CK Asset states its support of the Paris Agreement and acknowledges Hong Kong’s goal to achieve carbon neutrality by 2050. The company has set a target to reduce the emissions associated with its property management, hotels and offices by 9% by 2030 compared to 2019.

CK Asset has not developed a detailed low-carbon transition plan. The company states that it will rely on adopting more energy-efficient products and renewable energy, as well as on increasing participation in green financing opportunities.

CK Asset is taking steps towards decarbonisation. The company is developing system integration business models, providing renewable energy to its tenants, and investing in smart grids, waste-to-energy and carbon capture plants. The company is also increasing the use of energy-efficient air conditioning and lighting systems.

The in-use emissions intensity of the company’s managed buildings reduced at a rate aligned with the group’s 1.5°C pathway between 2016 and 2021. However, if CK Asset does not decarbonise its portfolio, it is projected to exceed its 1.5°C carbon budget between 2022 and 2050 by at least 60%.

CK Asset has implemented a set of measures that demonstrate that the group is making efforts to reduce its emissions. However, the company requires a detailed low-carbon transition plan with regularly spaced intermediate targets to incentivise near-term actions towards its longer-term goals.

Although CK Asset discloses its engagement with stakeholders on its green vision and strategy, no evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by CK Asset was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the low-carbon transition. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

Although CK Asset discloses the social protection benefits it provides to workers, no relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

While CK Asset commits to respecting human rights, no evidence was found that it commits to respecting the ILO fundamental rights at work. Further, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. While the company has a human rights grievance mechanism available to employees and stakeholders, it is unclear whether complaints can be reported anonymously.

CK Asset commits to respecting worker health and safety and expects the same commitment of its business relationships. However, there is no evidence that the company discloses quantitative information on health and safety for its workers. Further, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. Moreover, there is no evidence that the company commits to promoting gender equality and women’s empowerment.

CK Asset commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. Further, no relevant disclosure was found of the company’s global tax strategy and the corporate income tax it pays in individual jurisdictions. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. The company also specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s lobbying and political engagement policy and expenditure on lobbying activities.