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Addressing Scope 3 emissions has become increasingly vital in real estate, driven by rising expectations from investors, regulators, and stakeholders for meaningful climate action. According to the World Green Building Council, buildings account for around 39% of global energy-related carbon emissions. Of this total, around 11% is attributed specifically to embodied carbon emissions, which arise from materials and construction. With the building operational efficiencies continuously to be improved and electricity grids to be decarbonised, embodied carbon emissions represent a progressively larger proportion of total emissions. Hongkong Land has a long history of enhancing energy efficiency and reinvesting in existing assets, Scope 3 emissions represent nearly 90% of our total emissions. As a developer and owner of buildings, prioritise initiatives to address embodied carbon measurement, monitoring and reduction along the supply chains is crucial.

Hongkong Land’s Commitment to Scope 3 Emissions Reduction

Our 1.5°C aligned near-term science-based targets is to reduce 22% carbon intensity for Scope 3 greenhouse gas emissions by 2030. As the first Hong Kong-based developer to create bespoke embodied carbon assessment tools. These tools adopt a supplier-based approach to estimating emissions and provide a level of granularity. Hongkong Land integrates these across project design, tendering, and construction. The company actively collaborates with industry partners to standardise procurement guidelines, focusing specifically on five key construction materials: cement, concrete, façade, rebar, and structural steel.

Case Sharing on New Development in Shanghai

Hongkong Land’s Westbund Central is the Group’s largest-ever single investment, it is an US$8 billion development encompassing approximately 1.1 million sq. m. of prime mixed-use property strategically located at Shanghai’s Xuhui Waterfront. Westbund Central demonstrates Hongkong Land’s proactive and strategic approach to embodied carbon management. Utilising our bespoke embodied carbon assessment tools, the project team systematically measures the embodied carbon intensity associated with the development. The team closely reviews construction materials and actively pursues opportunities to minimise embodied carbon through targeted optimisation efforts. By applying detailed schematic design analyses and structural material optimization techniques, the project has already achieved significant reductions. Specifically, these optimisation strategies have resulted in a achieving a 16% overall carbon reduction in structural steel and a 7% in concrete.

Westbund Central, China

Case Sharing on Transformation of LANDMARK in Hong Kong

Hongkong Land’s Tomorrow’s CENTRAL project, a plan to invest over US$400 million by expanding and upgrading its LANDMARK retail portfolio over a three-year period, has established an ambitious target to divert at least 75% of total construction waste by weight from landfills. Before commencing refurbishment works, we conducted a comprehensive pre-refurbishment audit, systematically assessing and analysing the waste likely to be produced from demolition activities. The audit provided a clear, quantitative overview of anticipated waste streams and identified actionable opportunities for reclaiming, reusing, and recycling materials, guiding contractors to maximise resource recovery and circularity.

We identified 15 major construction materials and products including concrete, glass, wood, metal, and others for prioritised reuse, circular recycling, and diversion from landfills. By integrating circular economy principles, the project reduces demand for new raw materials, diminishes waste disposal volumes, and significantly lowers embodied carbon emissions associated with material extraction, manufacturing, transportation, and disposal.

LANDMARK ATRIUM, Hong Kong

Conclusion

Through these targeted initiatives and strategic actions ranging from bespoke embodied carbon assessment tools and structural design optimisation at West Bund, to comprehensive pre-refurbishment audits and circular material reuse strategies in Tomorrow’s CENTRAL. Hongkong Land demonstrates a robust and proactive approach to reducing embodied carbon emissions. We will continue to make significant strides towards sustainability targets 2030.