CK Hutchison

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.

The Group pursues renewable energy across multiple divisions. The Retail division purchased over 580 GWh of renewable energy through Energy Attributes Certificates (EACs) in selected markets (Mainland China, Hong Kong, Philippines, Malaysia, Thailand, Türkiye, Indonesia), covering almost 100% of 2024 energy consumption in those markets. CKHGT increased purchased renewable electricity to over 60% of total. The Infrastructure division acquired UK onshore wind farms (UK Renewables Energy) and Powerlink Renewable Assets in 2024. The Group spent over USD1.07 billion on renewable and other clean energy in 2024.

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

• Network energy efficiency via AI and green technology (Telecom)

  CKHGT is committed to its SBTi-aligned climate action plan and has maintained emissions at the same year-on-year level, representing approximately 25% reduction vs 2020 baseline. 3 UK deploys industry-leading energy-efficient radios combined with AI and data analytics to improve network energy efficiency by up to 70% at selected sites. 3 Hong Kong implements a 5.5G green strategy using AI energy-saving solutions to enhance overall 5G network energy efficiency. The Group spent USD864.7 million on energy efficiency in 2024.

• Equipment electrification and EV fleet transition (Ports and Retail)

  The Ports division's mandatory Equipment Electrification Directive led to a net increase of 108 electric/hybrid low-carbon units in 2024, supporting over 15% GHG reduction vs 2021 baseline and over 5% carbon intensity reduction year-on-year. The Retail division expanded its EV fleet with over 80% of warehouse-to-store deliveries in several Mainland China cities made by electric vehicles, contributing to over 75% GHG emission reduction vs 2018 baseline. The Group spent USD174.7 million on sustainable transport in 2024.

• Renewable energy capacity expansion within Infrastructure portfolio

  The Infrastructure division pursues low-carbon and energy-transition investment opportunities, acquiring operating onshore wind farms (UK Renewables Energy) and Powerlink Renewable Assets in the UK in 2024. Overall GHG emissions from the Infrastructure division reduced by an estimated 5% year-on-year, equivalent to approximately 15% reduction against the 2020 baseline. The division continues to target regulated utility assets with strong clean-energy transition credentials.

• Ports electrification — RTGCs, EVs, port handling equipment

  Over 80% of a port terminal's energy consumption relates to fuel/electricity in container handling equipment and terminal vehicles. All new Hutchison Ports investments in mobile and stationary machinery will be fully electric or supplemented with clean energy. Port of Felixstowe introduced 17 new electric remote-controlled rubber-tyred gantry cranes (RTGCs) from 2024 to replace diesel models, powered by fixed busbars with compact battery system. Hybrid vehicles, where electric not yet viable, deliver 35-45% GHG reduction versus pure diesel. In 2024: 265 zero-emission vehicles/equipment, 77 EV chargers, 40 supporting infrastructure units procured.

• 5G network energy efficiency / RAN modernisation

  3 UK refreshed network infrastructure with more efficient Radio Access Network (RAN) equipment. 5G-Transformed sites achieve 28% energy efficiency improvement (consumed energy per measured downlink traffic volume) versus 4G legacy sites, while delivering 10x site capacity increase. Drivers: more efficient equipment, higher 5G spectral efficiency, further 4G spectrum deployment. Mirrors GSMA-reported industry decoupling (31% data traffic growth vs 5% electricity growth in 2021).

• Ports equipment electrification and on-site renewables

  Ports division applied a mandatory 'Equipment Electrification Directive' resulting in a net increase of 108 electric/hybrid low-carbon units plus on-site renewable energy generation. Achieved >5% carbon intensity reduction YoY and >15% GHG emission reduction in 2024 vs 2021 baseline. Operations now SBTi-approved.

• Telecom network energy efficiency via AI and equipment swap-out

  3 UK deployed industry-leading energy efficient radios combined with AI and data analytics to improve network energy efficiency by up to 70% at selected sites. 3 Hong Kong implements a 5.5G green strategy adopting AI energy-saving solutions to enhance overall energy efficiency of its 5G network. CKHGT emissions held flat YoY, ~25% reduction vs 2020 baseline.

• Retail fleet electrification for last-mile delivery

  Continuous transition to low-carbon vehicle fleet led to >70% GHG emission reduction in scope 1 and 2 year-on-year and >75% reduction from 2018 baseline. In Mainland China, electric vehicles now account for over 80% of warehouse-to-store deliveries in several cities.

• Energy efficiency — 15% improvement threshold for assets

  CKHH invests in energy-efficiency assets demonstrating at least a 15% improvement vs baseline. Eligible projects include LEDs, energy-efficient ports/terminal equipment (electrified quays), HVAC, energy management systems, smart meters, IoT sensors, building refurbishment, 5G/fibre network upgrades, and data centres with PUE ≤1.5.

• Circular economy — rPET, FSC/PEFC materials and e-waste recycling

  CKHH invests in procurement of recycled PET (rPET), FSC/PEFC-certified secondary raw materials and byproducts, products from repurposed/refurbished/remanufactured assets, e-waste collection and recycling infrastructure (3 UK Reconnected, 3 Hong Kong collection points), food-waste recycling in supermarkets, and CO2 capture and storage at waste-to-energy plants.

• Clean transportation and port electrification

  CKHH finances zero-emission vehicles, non-motorised transport, hybrid/plug-in hybrids meeting Climate Bonds Initiative and EU Taxonomy thresholds (e.g. <50 gCO2/km for cars), late-stage R&D in sustainable port technologies including remote-controlled quay cranes and automated rubber-tyred gantry cranes, and EV charging infrastructure. Fossil-fuel transport assets excluded.

• Group-wide green spend exceeding USD2.5 billion across sustainability categories

  In 2024, the Group's subsidiaries and associates spent over USD2.5 billion in green spend across: energy efficiency (USD864.7m), renewable and other clean energy (USD1,072.2m), sustainable water management (USD265.7m), sustainable transport (USD174.7m), circular economy and design (USD67.5m), biodiversity protection (USD63.9m), and sustainable supply chain (USD0.25m). This investment signals cross-division commitment to decarbonisation through supply chain and operational transitions.

• Device take-back, refurbishment and circular electronics

  Telecommunications division pursues circularity through end-of-life product management, eco-design and product life extension. In 2023 over 129,000 devices taken back across CKHGT markets. 3 UK 'Three Recycle' trade-in for reuse/recycling plus Reconnected donation scheme (~3,000 devices donated 2023). 3 Denmark 'Byt-til-nyt' online trade-in extended, with router leasing product launched. 3 Hong Kong 'one-stop' Recycling Handsets and Accessories Programme. 197,785 units of e-waste reused/recycled in 2024.

• Sustainable packaging — paper from FSC/PEFC and recycled plastics

  At Retail (~90% of packaging is plastic and paper), AS Watson is signatory to Ellen MacArthur Foundation's New Plastics Economy Global Commitment. Targets: 100% reusable/recyclable/compostable plastic packaging by 2024; 20% recycled content in Exclusive Brand packaging by 2025; Exclusive Brand paper packaging 100% sustainable by 2030 (Watsons 100% in 2023). 2024 procurement: 74,752 tonnes paper from FSC/PEFC/100% recycled sources and 1,971 tonnes recycled plastics.

• Infrastructure portfolio shift to renewables and low-carbon utilities

  CKI portfolio includes regulated electricity/gas distribution and is expanding via UK Renewables Energy (onshore wind), Powerlink Renewable Assets and Phoenix Energy. Overall GHG emissions from the Infrastructure division reduced by ~5% YoY, equivalent to ~15% reduction vs 2020 baseline.

• Climate disclosure preparation \u2014 CSRD, IFRS S2, CDP

  The Group is preparing for increasing disclosure requirements particularly in the EU (Corporate Sustainability Reporting Directive) and Hong Kong (International Financial Reporting Standards/ISSB). In 2024 the Group engaged service consultants to prepare for future compliance and accepted the invitation from CDP to participate in disclosure, enhancing transparency.

• Supplier engagement via Supplier Code of Conduct

  CKHH manages supplier risks through its Supplier Code of Conduct, encouraging business partners and suppliers to improve sustainability standards. Suppliers must disseminate the code's requirements to their employees, agents, sub-contractors and suppliers and be held accountable for non-conforming acts.