Governing for sustainability
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 assessment to the Department for consideration in decision-making processes;
- following 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
ArchSD has adopted the framework and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for disclosing climate-related risks and opportunities. Occupational Health & Safety is also taken into consideration when managing our risks.
We summarise our approach to corporate governance, strategy, risk management and metrics and targets according to the TCFD reporting framework.
Governance
We take both a top-down and bottom-up approach to ensure a smooth two-way communication with respect to our governance around climate-related risks and opportunities.
As part of our top-down approach, our SSF meets regularly to oversee the 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.
In keeping with our bottom-up approach, our staff have an important role to play. A Design for Climate Change and Resilience sub-group was launched to develop best practices and design guides against incidents such as extreme weather, outbreaks of disease and vandalism. Staff may also share their opinions through multiple communication channels, such as meetings, 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 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 (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 lower-carbon economy:
Policy and Legal Risk
Keep up with the latest environmental policies
Technology Risk
Transition to low emissions technology
Market Risk
Increased market demand for green building guidelines
Reputation Risk
Increased risk of greenwashing
Climate-Related Opportunities
In the foreseeable future, we see an increased market demand for green buildings due to the escalating awareness of sustainability in the industry. This demand will lead to more accepting attitudes and an increased willingness to try innovative green technologies in building projects, which will create more opportunities to put these technologies into practice. The experience gained would then be shared within the construction industry, thereby accelerating sustainable development.
Risk Management
| Items | Potential Impact(s) | Our Strategies | |
|---|---|---|---|
| Physical Risks | Increased physical impact on existing buildings and infrastructure | Conduct routine maintenance to tackle the impact of physical climate risk on organisation’s asset | |
| Promote “Design of resilience” in building design and staff awareness to optimise the interaction between a building and its local microclimate | |||
| Provide technical guidelines on all Building Works during extreme weather conditions | |||
| Conduct regular offsite offline backup to secure local storage of all data for ArchSD’s operation | |||
| Staff safety under extreme weather conditions | Provide guidelines in our ArchSD Management Plan for Emergency Incidents | ||
| Launch work arrangements for tropical cyclones and rainstorms | |||
| Transition Risks | Policy and Legal Risks | Keep up with the latest environmental policies and circulars | Engage external committees to keep track of market or policy updates |
| Incorporate updates of the circular on Green Government Building into departmental environmental objectives and targets and General Specifications | |||
| Utilise multiple communication channels to update all professionals | |||
| Technology Risk | Transition to low emissions technology | Set up Innovative Construction Focus Group | |
| Conduct regular meetings with other government departments and professional institutions to keep abreast of the latest developments | |||
| Expand resources on staff training to adopt innovative technologies | |||
| Market Risk | Increased market demand for green building guidelines to keep up with international standards | Update the General Specification for Buildings and the General Specification for Building Services Installation in Government Buildings | |
| Provide professional advice and recommendations related to sustainability in external committees | |||
| Reputation Risk | Increased risk of greenwashing | Enhance credible third-party certification and sustainability benchmarking | |
Metrics & Targets
We have set targets to measure our management of climate-related risks and opportunities.
At the corporate level, we achieve ISO 14001 Environmental Management System certification with annual reviews of our environmental performance, as well as monthly reviews of our green housekeeping progress as metrics.
We have also set electricity consumption targets, with progress measured according to Green Energy Targets (published by the HKSAR). (See our data summary for details.)
At the project level, we include incentive marks to enhance green performance in the tender proposals. Additionally, we provide guidelines and checklists for project proponents to evaluate the environmental impact of the projects.
This year, we also kick started a consultancy study to establish a carbon neutrality strategy in our operations. We also called on all stakeholders to act together to achieve decarbonisation.
Contingency Plans
To protect our operations under a wide range of scenarios, we have a Site Safety and Environmental Review Committee to oversee a comprehensive strategy document, ArchSD Management Plan for Emergency Incidents. This 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 crisis situations that may arise.
