27 Oct 2017 CARBON FOOTPRINT MONITORING THROUGH INNOVATION David Chan BA(Arch), MSC HKIA, RIBA, MCIOB, Registered Architect Senior Vice President Head, Corporate Services
DISCLAIMER The information contained in this presentation is for general informational purposes only and does not constitute an offer, solicitation, invitation or recommendation to subscribe for or purchase any securities or other products or to provide any investment advice of any kind. This presentation is not directed at, and is not intended for distribution to or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Hong Kong Exchanges and Clearing Limited ( HKEX ) to any registration requirement within such jurisdiction or country. This presentation contains forward-looking statements which are based on the current expectations, estimates, projections, beliefs and assumptions of HKEX about the businesses and the markets in which it and its subsidiaries operate or aspires to operate in. These forward-looking statements are not guarantees of future performance and are subject to market risk, uncertainties and factors beyond the control of HKEX. Therefore, actual outcomes and returns may differ materially from the assumptions made and the statements contained in this presentation. The implementation of these initiatives is subject to a number of external factors, including government policy, regulatory approval, the behavior of market participants, competitive developments and, where relevant, the identification of and successful entry into agreements with potential business partners. As such, there is no guarantee that the initiatives described herein will be implemented, or that they will be implemented in the form and timeframe described herein. Although the information contained in this presentation is obtained or compiled from sources believed to be reliable, HKEX does not guarantee the accuracy, validity, timeliness or completeness of the information or data for any particular purpose, and shall not accept any responsibility for, or be liable for, errors, omissions or other inaccuracies in the information or for the consequences thereof. The information set out in this presentation is provided on an as is and as available basis and may be amended or changed. It is not a substitute for professional advice which takes account of your specific circumstances and nothing in this document constitutes legal advice. HKEX shall not be responsible or liable for any loss or damage, directly or indirectly, arising from the use of or reliance upon any information provided in this presentation. 2
HKEX ENIRONMENTAL PROTECTION PRINCIPLES HKEX s CSR VISION: "To be a responsible corporate citizen committed to the sustainable development of the marketplace, workplace, community and environment, and to promote the development of socially responsible practices in our marketplace and community. Principles Objectives Reduce environmental impact of our operations To minimise use and maximise reuse of resources To minimise waste and increase recycling To monitor and reduce our carbon footprint To consider environmental protection in our purchasing decisions Advocate environmental protection To promote environmental protection within the Company, and in the marketplace and community 3
HKEX ENIRONMENTAL PROTECTION APPROACH Energy Management Education and Advocacy Water Conservation Green Procurement Waste Management Paper Reduction 4
HKEX CARBON FOOTPRINT Scope 1 36 52 38 Direct emissions from owned or controlled sources to those generated on site e.g. gasoline for vehicles, diesel fuel for backup generators in Data Centre 2014 2015 2016 25,000 in Tonnes Scope 2 19,599 19,766 20,000 15,000 20,289 21,358 19,357 17,461 2014 2015 2016 Indirect emissions from the generation of purchased energy e.g. electricity 10,000 Scope 3 5,000 0 2014 2015 2016 1,858 1,540 654 2014 2015 2016 Indirect emission occur due to reporting company s action e.g. Business travel, staff commuting. Electricity (Scope 2) is our major source of carbon emission. 5
EFFORT MADE TO REDUCE EMISSION (EXAMPLE) 2016 2015 Automatic lighting control and lighting power density limitation were implemented in new Offices 2014 Commission energy saving chiller plants at Exchange Square office HOW TO MONITOR? Reduce food waste by converting kitchen waste into fertilizer. Committed to follow requirements set out in the Buildings Energy Efficiency Ordinance and the relevant Code of Practice and Technical Guidelines for all fitting-out and major retrofitting work of office in HK. 6
MONITORING THROUGH INNOVATIVE SYSTEM iesg Water Conservation Business Travel Management Energy Management Waste Management Green Procurement Education and Advocacy Reporting and Data Collection Paper Reduction 7
SYSTEM DATA COLLECTION PROCESS Multiple Layers for Data Governance User s Access Right Control Abnormal Data Alert User Activities Record Permission Control Automated Data Input Smart Check Function Approval Workflow Audit Trail for Data Assurance Scan and Capture Bills Data Approval 8
REAL TIME DATA Energy Management Dashboard 9
24-HOURS OPERATIONS CONTROL CENTRE Provide real-time grid management Providing analytics and measurable data to performance indicators A database storage for operational activities Programming/Engineering workstations Control server to communicate with lower level control devices Communication routers Connect to other regional control centres App base on call system End users feedback and engagement 10
EFFECTIVE ENERGY MONITORING Our aim 24-hour real time monitoring system Continuous monitoring and measuring performances such as the energy use in data centres and offices to identify energy spikes and allow us to fix them quickly and efficiently. The success of the system has allowed HKEX to reduce 12% in our Scope 1 & 2 GHG emission in Y2016. Tracks data from electricity meters in our data centres and offices, monitoring electrical equipment and system for lighting, heating and cooling. Half-hourly reports on energy consumption allow the team to immediately identify hotspots or irregularities in consumption and notify our maintenance team. Noticing that lights were on all night. In-depth analytical work based on value (rather than cost alone), assessing the longer term life cycle performance of capital investments and review these against underlying causes and trends in energy consumption. HKEX recognised that meeting its energy targets would not come from investments in infrastructure alone; but together with a disciplined and longer term approach in all our operational processes to find ways to continuously improve energy efficiency on a day-to-day, hour by hour basis. 11
? What's NEXT Equipment becoming more intelligence and intuitive The next generation of monitoring devices will not only monitor but automatically adjust and control Robotics The internet of things AI will become better than human Am I talking to a person or a machine? 12
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