HKBN Ltd. — full event log

In FY25, HKBN secured a $6.75 billion sustainability-linked loan (HKD) tied to SBTi-validated GHG reduction targets, employee phishing resilience, and Scope 3 supply chain decarbonisation. Interest rate incentive adjustment mechanism rewards target achievement.

sustainability_report p.89

Starting from FY25, goods receipt amount used instead of purchase order value for spend-based Scope 3 Category 1 calculations to better reflect actual spending. Prior year (FY24) data was not restated as goods receipt amounts were unavailable at required detail level.

sustainability_report p.248

On 5 September 2025, China Mobile Hong Kong Company Limited (CMHK) completed a voluntary general cash offer and replaced the entire senior leadership, including new Chairman Ling Hao and CEO Li Xin from China Mobile. CMHK owned 74.84% of HKBN by 31 October 2025. All previous executive directors resigned.

sustainability_report p.37

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.

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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.

sustainability_report p.252

PricewaterhouseCoopers conducted limited assurance (ISAE 3000/3410) on selected sustainability KPIs including Scope 1&2 GHG emissions, energy consumption, workforce and health & safety data for FY25, consistent with prior years.

sustainability_report p.239

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.

sustainability_report p.97

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).

sustainability_report p.98

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.

sustainability_report p.98

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.

sustainability_report p.94

The FY24 Scope 3 Category 1 (purchased goods and services) figure was restated from an earlier figure to $242,934.73 tCO2e using the most accurate purchase order value for spend-based calculations at the time of reporting.

sustainability_report p.248

HKBN secured SBTi validation for near-term science-based emissions reduction targets: 50.65% reduction in absolute Scope 1 and 2 GHG emissions by FY2030 from FY2022 baseline; and 25% reduction in absolute Scope 3 GHG emissions from purchased goods and services and use of sold products within the same timeframe.

sustainability_report p.89

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.

sustainability_report p.90

During FY22, HKBN expanded the scope of its ISO 14001 environmental management system and kick-started the process of aligning EMS of Enterprise Solutions and JOS operations to ISO 14001 standard, with a target for certification before the next financial year.

sustainability_report p.35

PricewaterhouseCoopers conducted limited assurance on selected sustainability KPIs including Scope 1/2 GHG emissions, energy consumption, water, waste and workforce metrics for FY22. This is consistent with prior year practice.

sustainability_report p.225

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.

sustainability_report p.89

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.

sustainability_report p.84

The Board endorsed HKBN's commitment to set science-based emissions reduction targets by FY25. This marks a new chapter in the transition to a low-carbon business and operation. No specific reduction percentage or base year has been set yet.

sustainability_report p.35

On 1 September 2022, HKBN formally established an Environmental, Social and Governance Committee at the Board level, chaired by independent non-executive director Ms. Edith Manling NGAN. Previously ESG was overseen directly by the Board without a dedicated committee.

sustainability_report p.43

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.

sustainability_report p.84

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.

sustainability_report p.101

On 3 January 2022, HKBN completed the disposal of 60% of the issued share capital of HKBN JOS (SINGAPORE) PTE. LTD. and HKBN JOS (MALAYSIA) SDN. BHD. to StarHub Ltd. for approximately SG$15 million (~HKD87 million). These entities became 40%-owned associates. Disposal excluded from FY22 ESG reporting boundaries.

sustainability_report p.31

HKBN participated in the Carbon Disclosure Project (CDP) climate survey for the first time in FY22, as part of its climate action journey.

sustainability_report p.88

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.

sustainability_report p.89