Swire Properties Partners With TNFD To Launch Nature-Related Risk Management & Disclosure Framework In Hong Kong

A ground-breaking framework to manage and reduce impact on nature and enhance resilience in the face of climate change and biodiversity loss

Swire Properties has partnered with the Taskforce on Nature-related Financial Disclosures (“TNFD”) to officially launch its framework in Hong Kong, encouraging corporates and financial institutions to disclose and manage their nature-related risk and opportunities. The TNFD seeks to provide decision-relevant information to investors and stakeholders to facilitate a shift in global capital flows towards nature-positive outcomes, which is aligned with the goals of the United Nations’ Kunming-Montreal Global Biodiversity Framework.

The TNFD Recommendations were first published during New York Climate Week in September 2023 after a two-year design and development process led by the 40-member TNFD Taskforce. Swire Properties is the only Hong Kong and real estate sector representative on the Taskforce, as well as among the 320 global companies who joined the inaugural TNFD Early Adopter programme.

TNFD’s guidance and tools provide organisations with a systematic way to report and act on nature-related issues, including resource use and management, land and ocean use change, pollution and loss of biodiversity.

The TNFD Recommendations Hong Kong Launch event brought together the Hong Kong TNFD Early Adopters and over 150 representatives from the Government, regulators, financial institutions, businesses, academic sectors and NGOs. The guest of honour was Salina Yan, JP, Permanent Secretary for Financial Services and the Treasury (Financial Services), HKSAR Government; while supporting organisations included the Business Environment Council, Hong Kong Exchanges and Clearing Limited (“HKEx”) and the Hong Kong Green Finance Association.

During the event, a panel discussion with representatives from HKEx, BNP Paribas Asset Management, The Hong Kong and China Gas Company, The University of Hong Kong and Swire Properties offered insights into integrating nature-related considerations in the business decision-making process and into how different sectors can work together using the TNFD recommendations to contribute to a nature-positive future for the world.

Tim Blackburn, Chief Executive of Swire Properties said, “We’re delighted to have contributed to the formulation of the TNFD, and to be among the first to pilot the reporting and disclosure framework.  All businesses rely on natural resources and it’s more important than ever to examine closely how we affect nature, especially in the face of climate change. TNFD provides an internationally-recognised framework for businesses to assess and manage nature-related risks and opportunities, and to set priorities to enhance resilience. We would encourage the business community to integrate nature considerations into their investments and operations, so that collectively we can bring about lasting positive change.”

Tony Goldner, Executive Director of TNFD said, “Over the past decade, corporates and financial institutions have made significant strides in addressing climate change. However, climate change is only one of the nine identified planetary boundaries. Accelerating nature loss poses a considerable risk to society and the planet, as well as to the business and financial industries. The release of the TNFD Recommendations last September, along with our ongoing support for the International Sustainability Standards Board (“ISSB”), Global Reporting Initiative (“GRI”) and others to incorporate nature-related considerations into the global baseline for corporate sustainability reporting, has provided businesses and financial industry with the tools to identify, assess and manage their material nature-related issues. We are delighted that Swire Properties is at the forefront of these global efforts, and is setting an example as a leader in Asia.”

Salina Yan, JP, Permanent Secretary for Financial Services and the Treasury (Financial Services), HKSAR Government said, “Hong Kong’s status as an international financial centre can help bring plans and actions together to promote sustainable transformation. We released a vision statement setting out the vision and approach of the Government and financial regulators in developing a comprehensive ecosystem for sustainability disclosure in Hong Kong last month. We are set to become one of the first jurisdictions to align the local sustainability disclosure requirements with the ISSB Standards. The TNFD has employed an open, innovative, and bottom-up approach to design a set of nature-related disclosure recommendations to address the ambitious goals and targets laid down in the Kunming-Montreal Global Biodiversity Framework. We will closely monitor global developments and align with international standards as appropriate.”

Swire Properties was featured as a TNFD pilot use case by the World Business Council for Sustainable Development (WBCSD) in an industry report, showcasing the Company’s approach to identifying and managing nature-related opportunities through nature-inclusive building designs and green building practices, and demonstrating how biodiversity considerations are integrated and assessed to drive nature-positive impact.

As the initial step in testing and implementing the framework, Swire Properties, for the first time, has disclosed its nature-related impact, dependency, risk and opportunities according to the TNFD Recommendations, in its recently-published Sustainability Report 2023. The Company established a Biodiversity Policy in 2019, which aims to incorporate biodiversity considerations into its property design and operations.

Swire Properties continuously works to enhance the climate resilience of its developments and its communities by adopting nature-based solutions. For example, approximately 70,000 sq ft of additional landscape area will be added to the portfolio upon the completion of the Taikoo Place redevelopment project, offering lush greenery and water features. It will serve as a nature-based solution by reducing the heat island effect, increasing rainwater retention and improving district level air quality. It is also designed to support urban biodiversity through the careful selection of native tree species and vegetation, forming “green corridors” that facilitate the movement of birds, butterflies and other wildlife species between urban greenspaces.