HK News and Events
State of Play of Life Cycle Thinking in the Industry
The Life Cycle Lab team at ReThink 2023
ReThink HK Conference 2023 attracted more than 4,500 attendees from a diverse range of large and small organizations, with attendees largely agreeing that the green transition is occurring too slowly in Hong Kong. One approach to address this concern is to advance more data-driven sustainability strategies to enhance environmental performance throughout the entire production value chain.
Disclosure and Data
Regardless of the industry or scale of an organization, the consensus at this year's ReThink conference was a strong sense of the need to institute appropriate data collection and reporting systems. Companies in a wide range of industries like real estate, utilities, finance and retail are committing to meet science-based (SBTi) targets and are proactively engaging upstream and downstream partners of their supply chain for relevant data and positive actions.
Whole-of-industry effort
For example, in the construction sector, developers are now integrating embodied carbon calculations into their design and construction processes, and requiring suppliers to use products with Environmental Product Declarations (EPD) certification based on Life Cycle Assessment (LCA) methodology. Recognizing these market signals, local contractors are prioritizing steel and concrete which makes up more than 80% of embodied carbon in buildings. Additionally, the Construction Industry Council supports enhanced embodied carbon calculations with an update of their CIC Carbon Assessment Tool, expanding it to include 2,000 materials and adding more products in the CIC Green Product Certification database. These developments backed with reliable data and involving various intentional stakeholders could extend to more industries. Regulatory bodies could accelerate such a movement by mandating the use of adequate quantification methods, including LCA, and standardized databases and reporting.
Exemplary approach by small-medium enterprises (SMEs)
Of the many manufacturers who exhibited at Rethink Conference, some SMEs (producing for example, paper-packaged bottled water, alternative leather materials, bamboo furniture) performed LCA for their products. More brands are choosing to perform LCA for their products to justify their decisions, effectively quantify and communicate their environmental impact. This enhances their credibility and unlocks new opportunities in the evolving market scene. It is commendable that many SMEs are taking the initiative to perform LCA to substantiate their environmental claims and set themselves apart from green washing competitors.
A concerted effort among stakeholders (consumers, investors and regulatory bodies) – adopting both top-down and bottom-up approaches – will place Hong Kong in a leading position to ensure higher sustainability reporting standards and better environmental performance.