How net zero by 5 Chinese tech giants, which account for 2.5 times Hong Kong’s annual emissions, can decarbonise 25% of Hang Seng Index
- Alibaba, Baidu, China Mobile, Tencent and Xiaomi could eliminate 2.5 times Hong Kong’s annual emissions if they achieve net zero emissions, think tanks says
- Emissions from the five Chinese firms amounted to 87 million tonnes in financial year 2021-22 while Hong Kong’s emissions reached 34.7 million tonnes in 2021
Five Chinese information and communication technology (ICT) giants – Alibaba, Baidu, China Mobile, Tencent and Xiaomi – could eliminate 2.5 times Hong Kong’s annual greenhouse gas emissions if they achieve net zero emissions, according to a study.
There are tremendous opportunities to decarbonise the internet sector, which China considers crucial to drive economic growth, while delivering its 2060 net-zero commitment, analysts at the think tank China Water Risk said in a report focused on these five Hong Kong-listed firms. Billions of dollars of green finance can be tapped to help with this transition, they added.
The combined scope 1, 2, and 3 emissions from the five companies amounted to 87 million tonnes in financial year 2021-22, 2.5 times Hong Kong’s annual emission of 34.7 million tonnes in 2021, according to the non-profit organisation. Scope 1 covers emissions from sources owned or controlled by a company, while scope 2 and 3 are indirect emissions from purchased energy and those attributable to a company’s supply chain.
“If all the five Hong Kong-listed ICT companies fully commit to net zero, we can decarbonise over a fifth of the Hang Seng Index,” said Dharisha Mirando, CWR’s finance lead and co-author of the report. “Now that’s something the exchange and Hong Kong’s financial industry should throw their weight behind.”
