The Business Case for Reducing HKIA's Carbon Footprint through Multi-Stakeholder Engagement

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Ralph Norris
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1 AIS Smart Cities Conference 23 September 2015 The Business Case for Reducing HKIA's Carbon Footprint through Multi-Stakeholder Engagement Mike Kilburn Senior Manager, Environment Airport Authority Hong Kong 0 0

2 Overview of HKIA Opened : 6 July 1998 Total Site Area Runways : 1,255 hectares : Two Aircraft Parking Stands : 164 Passenger: 86 Cargo: 41 Others: 37 Employees : AA: 1,500 HKIA: 65,000 1

3 Overview of HKIA Opened : 6 July 1998 Total Site Area Runways : 1,255 hectares : Two Aircraft Parking Stands : 164 Passenger: 86 Cargo: 41 Others: 37 Employees : AA: 1,500 HKIA: 65,000 2

4 HKIA traffic data ( ) 3

HKIA is the most efficient airport in the world Environmental Principles Rank Airport WLU/ ATM 1 Hong Kong (HKG) 264.5 2 Tokyo (NRT) 248.5 3 Dubai (DXB) 245.4 4 Incheon (ICN) 242.2 5 Taipei (TPE) 239.

5 HKIA is the most efficient airport in the world Environmental Principles Rank Airport WLU/ ATM 1 Hong Kong (HKG) Tokyo (NRT) Dubai (DXB) Incheon (ICN) Taipei (TPE) Davao (DVO) Bangkok (BKK) Kalibo Aklan (KLO) Singapore (SIN) Shanghai (PVG) Sacramento CA (SMF) Memphis TN (MEM) Note: 1 WLU (workload unit) = 1 passenger or 100kg of cargo Source: ACI annual report 2013, covering ~1,000 airports in the world with annual aircraft movements >10,000 ATMs in

international air passenger trips) Over 55 best airport awards TTG Travel

6 A Busy, Award-winning Airport World s busiest cargo airport* (in total tonnage) Asia Pacific s busiest international passenger airport* (in total international air passenger trips) Over 55 best airport awards TTG Travel Hall of Fame *Source: Airports Council International 2012 World Airport Traffic Report 5

7 Environmental Principles Environmental Footprint Reduction is a key element of the Sustainable operation and development of HKIA AAHK addresses this issue by: Minimising harm to, protecting and restoring the environment Identifying and valuing any externalised impacts and costs Applying the polluter pays principal in developing a solution 6

8 Spheres of relative influence Local communities, NGOs and other relevant parties Influence Airport business partners & tenants (65,000) Guide Airport operator (1,500) Control 7

9 Business case for footprint reduction Reduce cost Lower cost by reducing/avoiding consumption Reduce regulatory risk Prepare for future regulatory requirements Manage reputational risk Meet or shape public /stakeholder expectations Reduce operational risk Establish a more resilient operating environment 8

10 Carbon management: HKIA s roadmap Continuous investment to support carbon reduction measures Carbon audit for AA airportwide carbon audit 25% carbon reduction pledge Online carbon audit system ACI-ACA Level 3 New targets & low carbon strategy Continuous communication with business partners 9

11 Airport-wide carbon reduction target We pledge to reduce airport-wide carbon emissions by 25% per workload unit by 2015 from 2008 level 10

12 Investing in the infrastructure 2011: Online Carbon Audit System System development cost: US$70,000+ Additional on-going investment in enhancing the audit boundary and system user interface 5 internal staff trained as certified carbon auditors 11

http://www.hongkongairport.com/eng/csr/carbon-reduction/index.

13 Engagement with airport business partners Voluntary submission of carbon data from 46 airport business partners to map and reduce HKIA s carbon emissions 12

14 The value of engaging business partners Airport-wide carbon emissions in % 40% AAHK BPs 13

15 The funding model cost sharing Carbon reduction initiatives must be justified by a sound business case There is no one-size-fit-all solution flexibility is needed CAS platform and training (AAHK) AAHK Funds carbon reduction projects for AA-owned facilities BPs Measures based on business nature & business case All parties benefit from sharing best practices 14

16 HKIA s carbon reduction progress Steady progress towards 25% airport-wide reduction target 17.9% reduction by end of 2013 Note: Grid emission factor for 2008 was used throughout to enable year to year comparison 15

17 Business case for carbon management Reduce cost Reduced 11 million kwhr of electricity in 2013/14 despite 5% increase in passenger throughput Business partners cover their own costs Manage reputational risk 1 st airport in Asia-Pacific to achieve Level 3 accreditation in ACI-ACA Scheme in 2012 (Enhance corporate image) Reduce operational risk Facilitate electrification of airside vehicles / GSE to help reduce emission of air pollutants and reduce maintenance (improve apron working environment & simplify operation) 16

18 Thank You Q & A 17

PowerPoint Presentation Outline (for internal ref)

PowerPoint Presentation Outline (for internal ref) Date Event 27 April 2018 (Fri) HKIE Environmental Division Annual Forum Topic Focus Developing Intelligent Resource Preservation Strategies for Hong Kong: