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

ArchSD has adopted the framework and recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) for disclosing its 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 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 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.

Climate-related Risks

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 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

Climate-related Opportunities

In the foreseeable future, we see a growing market demand for green buildings due to the heightened awareness of sustainability in the industry. The rising demand will lead to increasing acceptance and willingness to adopt innovative green technologies in building projects, which will create opportunities to put these technologies into practice. The experience gained would then be shared within the construction industry, thereby accelerating sustainable development.

Risk Management

Potential Impact(s)			Our Strategies
Physical Risks	Increased physical impacts on existing buildings and infrastructure		Conduct routine maintenance to tackle the impacts of physical climate risks on organisation’s assets Promote “Design of Resilience” in building design and raise 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 operations
Physical Risks	Staff safety under extreme weather conditions		Provide guidelines in our ArchSD Management Plan for Emergency Incidents Launch work arrangements in times of tropical cyclones and rainstorms
Transition Risks	Policy and Legal Risk	Keep up with the latest environmental policies and circulars	Engage external committees to keep track of market or policy updates Incorporate updates of the circulars on Green Government Building into departmental environmental objectives and targets and General Specifications Utilise multiple communication channels to update all concerning parties
	Technology Risk	Transition to low emissions technology	Set up an Innovative Construction Focus Group Conduct regular meetings with other government departments and professional institutions to keep abreast of the latest developments Expand resources dedicated to staff training on adopting innovative technologies
	Market Risk	Increased market demand for green building guidelines to keep up with international standards	Update the General Specification for Building 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 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 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 were also provided for project proponents to evaluate the environmental impacts of the projects.

Following the consultancy study, we established the “3A Strategy” under the Carbon Neutrality Strategic Framework in 2023 aiming to accelerate progress in decarbonising the built environment by harnessing smart, innovative and green solutions; as well as to advocate for collective actions to drive sustainable construction for a low-carbon future.

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, the 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 crises that may arise.