Net Zero Carbon Emissions

We all have a part to play in decarbonisation.

We recognise our role in reducing carbon emissions to slow down climate change and we commit our resources, technology and leadership influence to get behind this cause and to make direct reductions in our operations.

We all live on one planet so the challenge of tackling climate change and reducing carbon emissions is one we involve everyone in. From our tenants, vendors, service providers and talented younger generation whose futures climate change will have most impact, we believe that everybody can make a difference.

Kai Tin Shopping Centre

We are committed to achieving Net Zero carbon emissions by 2035. To hold ourselves to a higher standard, we received validation of our Science Based Targets initiative (SBTi) Net Zero 2032 and 2050 decarbonisation targets, which requires us to include Scope 3 emissions in our Net Zero pathway.

Our Decarbonisation Pathway

link-reit-pathway-to-net-zero-carbon-emissions-by-2035

Supported by a robust greenhouse gas (GHG) inventory management and governance framework, our decarbonisation targets will be achieved via five approaches:

1. Energy Efficiency Measures

Our interim targets with regard to Energy Efficiency Measures are to reduce electricity intensity by 5% and carbon intensity by 25%, so that by 2035, we aim to achieve a 30% reduction in electricity intensity across our portfolio. In order to work towards this goal, we adopted a wide range of energy saving initiatives across the portfolio, including:

Chiller Replacement Programmes
Energy Management Systems
Installation of Motion Sensor Lighting in Car Parks
LED Lighting Improvements
Operational Optimisation and Automation
Energy Audits

Learn more

2. On-site Renewable Energy Generation

We have identified a total of 53 properties with 57 potential rooftop areas across our Hong Kong portfolio for installation of solar power systems, corresponding to an installed capacity of 4.5 MWp and an estimated 4,200 MWh of renewable energy generation each year, which, upon completion, will be the most extensive private solar energy generation project in Hong Kong.

A feasibility study for solar panel installation in our Hong Kong open car parks to support power supply for EV chargers is now underway. As we increase our logistics presence in Mainland China, our local teams have been making steady progress in formulatingthe installation plan of solar panels in our logistics assets, with a potential of 20 MWp installed capacity.

3. Renewable Energy Procurement (Energy Attribute Certificates* and Green Power)

Since 2021/2022, our UK property, The Cabot has been powered by 100% renewable electricity, achieving net zero carbon emissions in its annual electricity consumption for both landlord and tenant operations. Since 2022/2023, our properties at 151 Clarence Street and 347 Kent Street in Sydney, Australia have been supplied with 100% renewable electricity for landlord-controlled consumption. We are pleased to report that starting in 2023/2024 our Australia properties 126 Phillip Street and 388 George Street in Sydney and 567 Collins Street in Melbourne were supplied with 100% renewable electricity for landlord-controlled consumption as well.

For energy consumed during the Sustainability Lab’s construction and operation at Lok Fu Place in Hong Kong, Link has been purchasing renewable energy certificates from electric utility CLP.

Since committing to Net Zero and 100% renewable energy adoption targets by 2035, we have been prudently reviewing the market availability, maturity and price ranges of renewable energy procurement within our asset portfolio. Our view is that different regions and asset types should have different strategies, approaches and timeframes in achieving so. High-level directional approaches are illustrated below, with more details regarding our interim off-site renewable energy procurement milestones to be disclosed in the future.

*Including Renewable Energy Certificates (RECs)

4. Renewable Energy Procurement (Direct Investment)

5. Carbon Offsets

While there remains ongoing debate on carbon offsetting options, we believe that prudent, high-quality offsets have a role to play in reducing carbon footprint for our residual emissions within operations. During 2023/2024, we purchased carbon credits through the HKEX Core Climate platform to fully offset our Scope 3 emissions from capital goods, upstream waste, and upstream transportation in relation to the Sustainability Lab.

We will continue to evaluate our carbon offset strategy, including the procurement criteria, suitable platforms and timeline. Exploring longer-term investment opportunities in carbon removal projects and lowering reliance on the use of carbon offsets over time will be our key foci.

Targets

Status

25% reduction in carbon emissions intensity (Scope 1 & 2) across our portfolio by 2025/2026 (compared to 2018/2019 baseline)

Set Science-Based Targets initiative’s (SBTi) approved net zero carbon emissions targets (Scope 1, 2 & 3) by 2024/2025

100% renewable energy adoption across our portfolio by 2035⁽¹⁾

Net Zero carbon emissions (Scope 1 & 2) by 2035

⁽¹⁾To cover our electricity footprint via renewable energy on-site generation and off-site procurement, purchase of renewable energy certificates and direct investments in renewable energy.

Achieved On Track Lagging Behind Not Commenced

2023/2024 Progress

14.6%

Total reduction across portfolio compared to 2018/2019 re-baseline

2,276MWh Renewable energy generated

Our UK property, The Cabot was powered by 100% renewable electricity, achieving net zero carbon emissions in its annual electricity consumption for both landlord and tenant operations.

Additionally, starting in 2023/2024, the entire IGO portfolio in Australia was supplied with 100% renewable electricity for landlord-controlled consumption.