Introduction Our business SwireTHRIVE About our report Other ESG disclosures Appendices Overview CClimlimaattee Waste Water People Communities recycled aluminium constituted 3.2% Scope 3 emissions by division are included In 2022, we reviewed our approach, the in the Appendices. Further information is of cans in Chinese Mainland and 72% of carbon o昀昀set market, and emerging cans in the US. It has redesigned the label available in the sustainability reports of standards including the Core Carbon length of several aseptic PET products in our operating companies. Principles developed by the Integrity Hong Kong to encourage recycling. Council for the Voluntary Carbon Market. With proactive collaboration between We are producing guidelines for our its procurement team and beverage Explore more operating companies to standardise and guide decision making on o昀昀setting cooler suppliers, it has identi昀椀ed ‘next Performance data across the Group. generation’ CDE that uses 50% less energy compared with current equipment. All its TCFD Our evolving approach builds on our existing Carbon O昀昀setting Policy, which new CDE will have high energy e昀케ciency Risk management ratings and use natural refrigerants. As has been in place since 2009. Under the the new technology is phased-in across current policy, all Swire Paci昀椀c subsidiaries the Chinese Mainland, it will result an are required to o昀昀set the emissions estimated reduction in scope 3 emissions Further reading associated with sta昀昀 business air travel. by 2030 that equates to just over a third of O昀昀sets purchased must, at a minimum, meet the Veri昀椀ed Carbon Standard or the overall reductions required to meet its Cathay Paci昀椀c Sustainable Development Report 2022 Gold Standard. In 2022, we purchased Science Based Target (SBT). Cathay Paci昀椀c has committed to Swire Properties Sustainable more than 154 tonnes of carbon o昀昀sets achieving net zero carbon emissions by Development Report 2022 through Fly Greener. 2050, and for sustainable aviation fuel Swire Coca-Cola Sustainable We have owned and managed a Verra certi昀椀ed carbon o昀昀set REDD+ project (SAF) to constitute 10% of its total fuel Development Report 2022 consumption by 2030. Its carbon reduction in Paraguay since 2010. The project is designed to generate 10,000 carbon strategy includes modernising its 昀氀eet credits per year for 20 years. The Veri昀椀ed to improve fuel e昀케ciency, improving O昀昀sets Carbon Units (VCUs) are dual accredited operational e昀케ciency, and providing Gold under both the Veri昀椀ed Carbon Standard Standard accredited o昀昀sets through its Carbon o昀昀sets can play a vital role in Fly Greener programme. our net zero strategy as they allow us to (VCS) and the Climate, Community and compensate for hard to abate emissions Biodiversity Standard (CCB). See the To support Cathay Paci昀椀c in creating Biodiversity section for more information. within our value chain and emissions from demand for SAF, Swire Paci昀椀c supported technologically constrained sectors. the launch of the Cathay Paci昀椀c Corporate Sustainable Aviation Fuel Our net zero commitment aligns with the Adaptation (SAF) Programme. We contributed to the purchase of internationally recognised approach de昀椀ned by the Science Based Targets initiative’s (SBTi) Corporate Net- We need to prepare for the physical risks SAF, along with Cathay Paci昀椀c’s other founding partners, which will be Zero Standard and references the Institute of climate change. This means designing of Environmental Management and buildings capable of withstanding used to power Cathay Paci昀椀c 昀氀ights. Assessment’s carbon mitigation hierarchy. extreme weather. Airports where we Through its programme, Cathay Paci昀椀c We aim to reduce our scope 1 & scope 2 operate must be prepared to deal with the will issue veri昀椀ed emissions reduction GHG emissions by 95% and scope 3 by 90% consequences of rising sea levels. Climate certi昀椀cates and proof of sustainability before purchasing high quality third-party change can disrupt our operations and to its customers, including Swire Paci昀椀c, reducing our scope 3 carbon emissions. accredited o昀昀sets to reach our goal. supply chains. Our approach contrasts with carbon Stabilising global temperature increase See Cathay Paci昀椀c’s Sustainable Development Report 2022 for details. neutrality which we de昀椀ne as at 1.5°C will require drastic action far counterbalancing CO emissions (not beyond business as usual. Businesses Representatives from our operating 2 necessarily all GHG emissions) with will be expected to reduce emissions companies are active members of our SwireTHRIVE working groups and carbon o昀昀sets without having reduced and to limit and adapt to climate emissions by an amount consistent with change, which is likely to lead to stricter committees, and bene昀椀t from the reaching net-zero. regulation and potentially carbon taxes. collective experience, expertise and best practice sharing between our Energy availability and a昀昀ordability will companies. We also support carbon and be a昀昀ected. Regulators and investors waste reduction projects through our increasingly expect companies to measure Sustainable Development Fund. and report their exposure to climate risks to avoid 昀椀nancial shocks. SWIRE PACIFIC — SUSTAINABLE DEVELOPMENT REPORT 2022 — 30