Build Robust Sustainability Governance
Managing Risk
We take an active approach to risk management. The potential impacts of climate change, natural disasters and other potential hazards and harms to our operations are managed by
- identifying, assessing, mitigating and monitoring potential risks within our operational control;
- reporting details of the risk assessment to the Department for consideration in decision-making processes;
- following the guidelines published by the Development Bureau, including the Technical Circular (Works) No. 6/2005: Implementation of Systematic Risk Management in Public Works Projects; and
- conducting integrated risk assessment workshops throughout the entire project lifecycle to identify project risks and formulate precautionary control measures.
Climate-related Risks and Opportunities
Managing climate-related risks and opportunities ensures long-term resilience, business continuity as well as informed decision-making. The ArchSD has adopted the four main recommendations put forth by the Task Force on Climate-related Financial Disclosures (TCFD) for disclosing our climate-related risks and opportunities. Occupational health and safety aspect is also taken into consideration when managing our risks.
We summarise our approach to corporate governance, strategy, risk management and metrics and targets below according to the TCFD reporting framework.
Governance
We take both top-down and bottom-up approaches to ensure effective management with respect to our governance around climate-related risks and opportunities.
As part of our top-down approach, the MAC meets regularly to oversee risk management of the Department, including climate-related risks. We have also established a Green Building Committee, which advises and implements policy initiatives, departmental policies and strategies related to green buildings and sustainable construction.
Our staff have an important role to play in our bottom-up management approach. A Design for Climate Change and Resilience sub-group was established to develop best practices and design guidelines against incidents such as extreme weather, outbreaks of disease and vandalism. Staff can also share their opinions through multiple communication channels, such as meeting, internal Chatapp and email.
Strategy
To address the actual and potential impacts of climate-related risks on the organisation’s businesses, strategy, and financial planning, we have formulated a strategy covering the risks and opportunities associated with climate change.
Physical Risks
These include acute risks, such as increased intensity and frequency of extreme weather events (e.g. typhoons, flooding and extreme heat) and chronic risks, such as rising temperatures and sea levels.
Transition Risks
There are also risks associated with the transition to a low-carbon economy:
- Policy and Legal RiskKeep up with the latest environmental policies
- Technology RiskTransition to low emissions technology
- Market RiskIncreased market demand for green building guidelines
- Reputation RiskIncreased risk of greenwashing
The built environment in Hong Kong is experiencing a transformative growth in sustainable development along with a rising market demand for green buildings, driven by heightened environmental awareness in the industry, strengthened government regulations and green incentives, as well as demonstrated economic benefits of sustainable construction practices.
The rising demand will create opportunities for increasing investments in sustainable design and construction and a wider adoption of innovative green technologies in building projects, thereby facilitating low-carbon transformation for sustainable development.
Risk Management
| Physical Risks | Increased physical impacts on existing buildings and infrastructure |
| |
| Staff safety under extreme weather conditions |
| ||
| Transition Risks | Policy and Legal Risks | Keep up with the latest environmental policies and circulars |
|
| Technology Risk | Transition to low emissions technology |
| |
| Market Risk | Increased market demand for green building guidelines to keep up with international standards |
| |
| Reputation Risk | Increased risk of greenwashing |
| |
Metrics & Targets
We have set targets to manage climate-related risks and opportunities.
At the organisation level, we have achieved ISO 14001 Environmental Management System certification coupled with annual reviews of our environmental performance, as well as monthly reviews of our green housekeeping progress as metrics.
We have also set annual electricity consumption targets and measured our progress according to the Green Energy Targets (published by the HKSAR Government) and the Green Manager’s Environmental Targets (published by the ArchSD). (See our data summary for details.)
At the project level, we have included incentive marks to enhance green performance in the tender proposals. Guidelines and checklists are also provided for project proponents to evaluate the environmental impacts of the projects.
Following the consultancy study, we launched the “3A Strategy” under the Carbon Neutrality Strategic Framework in 2024 and engaged our stakeholders. This initiative aims to accelerate progress in decarbonising the built environment by harnessing smart, innovative and green solutions; and advocate for collective action to drive sustainable construction for a low-carbon future in Hong Kong.
Contingency Plans
To protect our operations under a wide range of scenarios, we have set up a Site Safety and Environmental Review Committee to oversee and continuously improve the ArchSD Management Plan for Emergency Incidents. This comprehensive strategy plan not only gives us the ability to recover rapidly from a variety of emergency incidents, such as adverse weather events, natural disasters, fire and accidents, but also to anticipate and deal effectively with crises that may arise.
