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56 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT 2020 PROTECTING THE ENVIRONMENT 57

Reducing Emissions in Cities Fuel Mix for Town Gas Production Our Carbon Footprint 2020 Hong Kong Gas Production
GHG Emissions
Today at Towngas, we make extensive use of low- 36% The Group’s largest source of carbon emissions is Scope 3 Scope 1 + 2
carbon/renewable energy sources. By switching Naphtha Scope 1 emissions from fuel consumption in our (Other) 345 ktCO2e
our town gas production feedstock from coal and production processes. In 2020, the Group’s total 195 ktCO2e
heavy oil to naphtha, natural gas and landfill gas, we carbon emissions (scope 1 and 2) were 1,406,000 Outside
Hong Kong
have significantly reduced air pollutants and GHG tCO2e, a similar level to that of last year. More details In Hong Kong
emissions in Hong Kong. Our air emissions have now 63% 1% can be found in the Key Statistics section.
fallen well below the regulatory limits (more details can Natural Gas Landfill Gas Scope 3
be found in the Key Statistics section). Additional During the year, we conducted an internal carbon (Category 11)
information on clean gas production at Towngas is audit of the top six emitters in mainland China, during 1,486 ktCO2e
available on our corporate website. which we reviewed their data integrity and discussed
As one of the pioneers in the use of landfill gas, the opportunities to reduce their carbon footprint. The Scope 1 emissions are direct emissions from owned or controlled
2020 energy savings at our gas production plants 1 amount of landfill gas used in our town gas production lessons learned from this audit were shared with other sources.
was 124,985 GJ in 2020. We remain committed to JVs to enhance the completeness and quality of their Scope 2 emissions are indirect emissions from the generation of
purchased energy.
Naphtha saved continually increasing the proportion of natural gas and data. We are now working on setting medium- to long- Scope 3 are all other indirect emissions that occur in the value
97,675 GJ biogas used. term reduction targets for both our Hong Kong and chain.

mainland China portfolios, in support of Hong Kong’s
Town gas saved In mainland China, we have been expanding our Supporting Customers with Low-carbon
27,310 GJ city-gas network, which is replacing coal and hence 2050 and mainland China’s 2060 goals of carbon Solutions
neutrality. We also signed the Business Environment
reducing emissions. In 2020, we served approximately
1 Remarks: As compared with the data of a reference year before Council’s Low Carbon Charter to underscore our
implementing the respective environmental initiative. 31.81 million customer accounts. commitment to tackling climate change. To create a low-carbon future, we understand it is
important not only to reduce the GHG emissions
Hong Kong Gas Production generated within our operations, but also to reduce
Carbon Intensity them for customers. We have been supporting our
customers’ emission reduction efforts by expanding
Case Study
The carbon intensity of our Hong Kong gas production the distribution of gas and promoting fuel conversion
in 2020 was 0.592 kgCO2e per unit of town gas, to gas. We have also been developing low-carbon

Support for Hong Kong’s long-term decarbonisation which dropped 23 per cent as compared with our and energy efficient products, ranging from gas
2005 baseline. Due to maintenance work at the appliances to advanced biofuels, and provide a smart
We installed photovoltaic (PV) systems at our Tai Po Northeast New Territories Landfill, we fell short of our energy service. To help our customers conserve town
Gas Production Plant, as well as at six of our offtake target to achieve a 30 per cent decrease in carbon gas, we provide the relevant information and energy
and pigging stations. The total power generated was intensity for 2020. We will, however, strive to meet this saving/green cooking tips via bill inserts, newsletters
over 180,000 kWh in 2020. The rooftop of Towngas’ target in future. and our Low Carbon Action! website.
North Point Headquarters and the second phase of
the offtake and pigging stations are scheduled for Carbon Emissions along Our Value Chain We shall also supply waste heat from our Tai Po
completion in early 2021. We are also incorporating Gas Production Plant to a neighbouring food factory
innovative technologies into the design of the second We understand that our emissions along the value in the form of hot water, which will help reduce the
phase installation, such as flexible panels to increase chain could be material and, in 2020, conducted a latter’s conventional energy consumption and carbon
the number of installation locations, sun trackers and comprehensive review of our Scope 3 emissions for emissions. This would reduce heat dissipation to the
bifacial solar panels to capture more solar energy. gas production in Hong Kong. The most significant surrounding environment, and thus lower the heat
After they are completed, our solar PV systems will contributions to Scope 3 emissions in our value chain island effect. This innovative environmental project will
ultimately generate more than 300,000 kWh of clean came from combustion of town gas (Category 11), be completed in 2022.
energy per annum. which accounted for over 70 per cent of the total
emissions of our gas production. For details, please refer to the Transitioning to a
Low-carbon Future section.