Page 70 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
and unmanned aerial vehicle (UAV) earthwork building certifications to be used as a metric for
survey. On the green building technology sustainability-linked financial products by banks
side, the region has also embraced smart and real estate companies.
optical storage and environmentally friendly
construction materials to optimize proptech use To fully capitalize on these investing
throughout the value chain. opportunities and secure funding from
global investors, real estate companies in the
The production of building materials GBA should align with international green
accounts for 28% of emissions48 throughout the building practices. In order to meet regulatory
construction process, representing a significant requirements, outperform competitors
portion of scope 3 carbon emissions for the real and access financing opportunities, these
estate sector. Embodied carbon remains a major companies will need to make a concerted
challenge for decarbonizing the construction effort towards low-carbon transition and green
and real estate industries. In Hong Kong, the building development.
Construction Industry Council has developed
a carbon assessment tool to measure the Social innovation and im-
embodied carbon of construction materials and pact investing to foster ESG
has established carbon emission factors for over development
300 materials.
Latest trends in social innovation
With this tool, real estate and construction and impact investing
participants can better estimate the carbon
emissions from building constructions and In recent years, the concept of social innovation
develop a more comprehensive carbon inventory has gained widespread attention, as the awareness
for future decarbonization efforts. Leading of social impact and innovation has increased.
developers in the GBA are also promoting the There has been a surge in the number of social
advancement of technology in procuring green enterprises and impact ventures with strong ESG
building materials throughout the supply chain, awareness and practices. These organizations aim
using cloud computing and big data analytics to to empower citizens to create impact and connect
enhance digital precision in sourcing channels. the business world with community members,
These technological solutions can help address including disadvantaged groups, through
issues with unchecked quality control and lack stakeholder engagement and impact investing.
of transparency. Social innovation covers a range of activities
that serve various social objectives and target
Opportunities and challenges for real estate different groups within the community, ultimately
decarbonization contributing to the well-being of the community.
The real estate industry presents numerous To support social innovation, the HKSAR
opportunities in the pursuit of a low-carbon Government has promoted the development of
economy, as the trend of green building social enterprises through the Social Innovation
development continues to grow rapidly in the and Entrepreneurship Development Fund49
GBA and national decarbonization targets (SIE Fund). The SIE Fund has successfully
become more ambitious. Green building stimulated the growth of social innovation and
performance, certifications and energy efficiency, entrepreneurship in Hong Kong, funding 373
as well as embodied carbon, have become innovative projects as of 2022. According to the
crucial indicators for investors when making Social Enterprise Directory issued by the Social
investment decisions and assessing asset value. Enterprise Business Centre50, there are 711 social
It is also becoming more common for green
49 SIE Fund, https://www.sie.gov.hk/en/our-work/
48 EY, https://assets.ey.com/content/dam/ey- funded-ventures/index.page?category=b04
sites/ey-com/en_cn/news/2022/09/ey-uli-gba-prop- 50 SEBC, https://socialenterprise.org.hk/en/con-
tech-white-paper-en.pdf tent/se-faq
70
and unmanned aerial vehicle (UAV) earthwork building certifications to be used as a metric for
survey. On the green building technology sustainability-linked financial products by banks
side, the region has also embraced smart and real estate companies.
optical storage and environmentally friendly
construction materials to optimize proptech use To fully capitalize on these investing
throughout the value chain. opportunities and secure funding from
global investors, real estate companies in the
The production of building materials GBA should align with international green
accounts for 28% of emissions48 throughout the building practices. In order to meet regulatory
construction process, representing a significant requirements, outperform competitors
portion of scope 3 carbon emissions for the real and access financing opportunities, these
estate sector. Embodied carbon remains a major companies will need to make a concerted
challenge for decarbonizing the construction effort towards low-carbon transition and green
and real estate industries. In Hong Kong, the building development.
Construction Industry Council has developed
a carbon assessment tool to measure the Social innovation and im-
embodied carbon of construction materials and pact investing to foster ESG
has established carbon emission factors for over development
300 materials.
Latest trends in social innovation
With this tool, real estate and construction and impact investing
participants can better estimate the carbon
emissions from building constructions and In recent years, the concept of social innovation
develop a more comprehensive carbon inventory has gained widespread attention, as the awareness
for future decarbonization efforts. Leading of social impact and innovation has increased.
developers in the GBA are also promoting the There has been a surge in the number of social
advancement of technology in procuring green enterprises and impact ventures with strong ESG
building materials throughout the supply chain, awareness and practices. These organizations aim
using cloud computing and big data analytics to to empower citizens to create impact and connect
enhance digital precision in sourcing channels. the business world with community members,
These technological solutions can help address including disadvantaged groups, through
issues with unchecked quality control and lack stakeholder engagement and impact investing.
of transparency. Social innovation covers a range of activities
that serve various social objectives and target
Opportunities and challenges for real estate different groups within the community, ultimately
decarbonization contributing to the well-being of the community.
The real estate industry presents numerous To support social innovation, the HKSAR
opportunities in the pursuit of a low-carbon Government has promoted the development of
economy, as the trend of green building social enterprises through the Social Innovation
development continues to grow rapidly in the and Entrepreneurship Development Fund49
GBA and national decarbonization targets (SIE Fund). The SIE Fund has successfully
become more ambitious. Green building stimulated the growth of social innovation and
performance, certifications and energy efficiency, entrepreneurship in Hong Kong, funding 373
as well as embodied carbon, have become innovative projects as of 2022. According to the
crucial indicators for investors when making Social Enterprise Directory issued by the Social
investment decisions and assessing asset value. Enterprise Business Centre50, there are 711 social
It is also becoming more common for green
49 SIE Fund, https://www.sie.gov.hk/en/our-work/
48 EY, https://assets.ey.com/content/dam/ey- funded-ventures/index.page?category=b04
sites/ey-com/en_cn/news/2022/09/ey-uli-gba-prop- 50 SEBC, https://socialenterprise.org.hk/en/con-
tech-white-paper-en.pdf tent/se-faq
70
