Climate change and adaptation

Climate change-related risk management

Kedge Construction attaches great importance to the risks brought by climate change, and at the same time intends to transform risks into opportunities, committing ourselves to creating new business opportunities. In 2021, we adopt the “Recommendations of the Task Force on Climate-related Financial Disclosures” (TCFD) to identify key climate change risks and opportunities that concern the company, and implement relevant plans in response based on the identification results.

TCFD Risk and Opportunity Identification and Impacts on Finance

We have been developing long concern about policies and solutions in terms of economics, environmental protection, sustainable management. We implement related projects such as carbon reduction, water conservation and electricity conservation. At the same time, we are committed to adopting energy-saving construction methods and alternative services to maintain resilience in response to climate change and establish a sustainable corporate culture. We identify and rank climate-related risks/opportunities according to TCFD, and refer to the research reports on the climate-related risks and opportunities from relevant units. Through the senior management meeting, we assess climate change risks and response measures and identify potential crises and possible opportunities in response to climate change.

Adoption of the TCFD framework

We adopt the TCFD framework to assess climate change-related transition risks, and measure the impact of climate change faced by the company itself, supply chain and related industries, so as to communicate with stakeholders through climate-related financial disclosures. For demonstrating the globally shared responsibility of mitigating climate change with the world, we have formally included the issues of greenhouse gases and climate change in the discussion agenda of the green low-carbon group under the ESG Committee, proposed green engineering refinement plans, assessed climate change risks and opportunities, and formulated energy-saving and carbon-reduction plans. This group is supervised by the Sustainable Development Committee under the Board of Directors, and the chairman of the committee (the Chairman serves as the chair) regularly reports to the Board of Directors the effectiveness of greenhouse gas management and the results of climate change response as a reference base for the long-term strategy of the company in responding to climate change risks.

Climate-related major risks and strategic assessments

Climate-related major opportunities and strategic assessments

Overall assessment of major climate-related risks, opportunities and strategies

Greenhouse gas inventory

Greenhouse gas reduction is one of our sustainable development goals. We not only integrate energy-saving and carbon-reduction measures into the daily operation and management of the headquarters/construction sites, but also actively invest in green engineering technology and implement circular economy. From 2022, we follow the “Greenhouse Gas Inventory Standard (ISO 14064-1: 2018),” and independently check the emission sources of Categories 1 to 6 within the enterprise; a total of seven greenhouse gases (CO₂, CH₄, N₂O, HFCS, PFCS, SF₆, NF₃) emissions are under examination. The inspection boundary is set at the company headquarters and ongoing construction sites across the country. The year 2022 in which the first inspection was conducted is taken as the basis year in which we have passed a third-party verification.

The emissions of greenhouse gas of Scope 1 and 2 at the company headquarters in 2022 were 46.44 and 59.73 tCO2e respectively, and the total emissions of greenhouse gas of Scope 1 and 2 at construction sites were 10,841 and 2,644 tCO2e respectively.

Promotion process of the greenhouse gas inventory