HKBN Ltd.

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

HKBN currently sources 0% of its energy from renewable sources, with 99.40% of energy consumption being grid electricity in FY25. The company has identified the use of new technologies and lower-emission energy sources as a medium-term climate opportunity and states it will 'identify energy consumption hotspots and collaborate with vendors to implement new technologies and lower-emission energy sources.' No formal renewable energy procurement targets or PPAs have been disclosed as of FY25.

No narrative on durable removals approach in the firm's most recent reports.

• SBTi-validated emission reduction targets linked to executive pay and sustainability-linked financing

  HKBN has set near-term science-based targets validated by the SBTi in FY24: a 50.65% absolute reduction in Scope 1 and 2 GHG emissions and a 25% absolute reduction in Scope 3 GHG emissions (Categories 1 and 11) by FY2030 from a FY2022 baseline. These targets are directly linked to C-suite remuneration and embedded in the $6.75 billion sustainability-linked loan, which uses an interest-rate incentive adjustment mechanism to lower borrowing costs when targets are met.

• Network energy efficiency: GPON migration and cooling upgrades

  HKBN's primary decarbonisation lever is reducing electricity consumption across its network operations, which account for the majority of its Scope 2 emissions. The company has completed a strategic migration from Metro Ethernet (ME) to Gigabit Passive Optical Network (GPON), reducing heat dissipation in hub and switching rooms. Upgrades to data centre chiller and air-conditioning systems using IoT API enable real-time temperature control. In FY25, electricity consumption was reduced by 22.50% compared to the FY2022 baseline, driving a 24.07% reduction in Scope 1 and 2 emissions.

• Direct fleet and fuel emission reduction via Smart Fleet Management

  HKBN introduced a Smart Fleet Management System in FY25 to optimise vehicle routing for field service teams, reducing travel time and shortening service response cycles. This directly reduces Scope 1 GHG emissions from vehicle fuel combustion. Vehicle, generator and mobile generator fuel consumption is tracked as direct energy and has been declining from 621,106 kWh (FY23) to 491,685 kWh (FY25).

• Waste management and WLAB recycling

  HKBN has partnered with the Hong Kong Battery Recycling Centre since 2019 to recycle Waste Lead Acid Batteries (WLAB). In FY22, 77,128 kg of WLAB were diverted from landfill. The company also achieved a waste diversion rate of 50.97% in FY22, up from 46.92% in FY21, and introduced food waste recycling at its Guangzhou offices. A third-party waste audit was conducted for better waste reduction opportunities.

• Office space redesign to reduce energy consumption

  From March 2022, HKBN began redesigning its Hong Kong offices with energy efficiency as a priority in its future-ready transformation. The initiative is expected to reduce energy usage by approximately 273,000 kWh annually. Additionally, HKBN terminated the lease of a low energy-efficient building in Guangzhou and reintegrated office facilities, expected to save approximately 170,000 kWh in electricity annually.

• Science-based targets commitment and GHG tracking platform

  HKBN has committed to setting science-based emissions reduction targets by FY25, with the Board endorsing this commitment. In FY22, HKBN developed an in-house digital platform to track and report GHG reduction performances. The company also participated in the CDP climate survey for the first time and supports the Business Environment Council's Low Carbon Charter, pledging carbon reduction via strategic decarbonisation across operations.

• Energy efficiency via Energy Performance Contracting (Something from Nothing)

  Since 2016, HKBN has partnered with a consultant to enhance energy efficiency through an Energy Performance Contract (EPC), which requires no capital investment from HKBN. The EPC model has delivered cumulative savings of 8,728,522 kWh of electricity (approximately 4,400 tCO2e) since inception. In FY22, HKBN replaced 800 fluorescent tubes with LED at its DJ building (expected 47,000 kWh/year saving) and upgraded data centre air conditioning units (expected 81,000 kWh/year saving). Hong Kong office redesign is expected to save a further 273,000 kWh/year and Guangzhou office consolidation ~170,000 kWh/year.

• Supply chain decarbonisation via supplier ESG assessment and carbon footprint tracking

  HKBN's largest Scope 3 emissions categories — purchased goods and services (Category 1) and use of sold products (Category 11) — account for ~89% of its Scope 3 footprint. Since November 2024, all procurement tender participants complete an ESG questionnaire covering climate risk management and decarbonisation strategies. From February 2025, selected high-emission suppliers must complete a detailed carbon footprint tracking questionnaire. 20 SME suppliers improved ESG scores in FY25.

• Low-carbon product and service development for enterprise customers

  HKBN develops and sources low-carbon solutions to meet growing customer demand for carbon reduction and to capture transition opportunities. For enterprise customers, this includes low-carbon hardware, Software-as-a-Service, cloud-based managed IoT solutions, virtualisation to reduce energy consumption, and promoting cloud initiatives to transition on-premises infrastructure to more energy-efficient cloud. The company also partnered with Global Switch to provide access to a data centre featuring direct-to-chip liquid cooling technology for AI compute workloads.

• ESG solutions for enterprise customers (market-ready ESG enablement)

  HKBN is pursuing an 'ESG Enabler' strategy, aiming to empower its enterprise and residential customers' own ESG transitions. In FY22, the company commenced research on developing new market-ready ESG-themed solutions including cybersecurity products (e.g. Secured Business Broadband with Cisco Umbrella), smart building/IoT solutions, and energy management tools. HKBN targets to launch new ESG-themed solutions every year from FY23 to FY25.

• Supplier ESG engagement and sustainable procurement

  HKBN integrates ESG criteria into its supplier onboarding and assessment processes. Since October 2021, the company has been engaging suppliers with below-average ESG scores to improve their internal ESG practices. HKBN published eco-friendly reference documents for suppliers and added ESG scoring criteria to its Vendor Maintenance Portal in FY22. The FY25 target is to improve at least 20 SME suppliers' ESG assessment scores.