Transition to a Low Carbon Economy

Management Approach

Alliance's management approach for transitioning to a low carbon economy is integral to its commitment to the Net-Zero 2050 target and aligns with the Hong Kong SAR Government's Climate Actions 2050. Alliance focuses on reducing greenhouse gas emissions through the adoption of innovative technologies and sustainable practices. This includes investing in renewable energy sources, enhancing energy efficiency across operations, and facilitating the new energy transportation transition.

Additionally, Alliance promotes the use of low-carbon materials and construction methods, which not only reduce emissions but also improve the overall sustainability of development projects.

By fostering partnerships with stakeholders and participating in industry-wide initiatives, such as committing to Science-based Targets and supporting the development of local carbon labelling scheme, Alliance supports the broader goals of the Climate Actions 2050. These proactive measures and strategic investments ensure that Alliance contributes significantly to Hong Kong's transition to a low carbon economy, demonstrating leadership in sustainability and environmental stewardship.

Offering the Market With Low Carbon Concrete Solutions

The Hong Kong Exchange's mandate for sustainability reporting, now aligned with the International Sustainability Standards Board (ISSB), significantly impacts policies aimed at reducing embodied carbon in development projects. With the new requirements, listed companies must disclose their Scope 1, 2, and 3 greenhouse gas emissions. This comprehensive reporting framework encourages companies to identify and mitigate carbon-intensive activities throughout their value chains.

By committing to the Science Based Targets initiative (SBTi), companies are not only demonstrating their dedication to climate protection but also taking actionable steps to reduce their carbon footprints. This includes adopting low-carbon materials and construction methods, enhancing energy efficiency, and investing in renewable energy sources. The increased transparency and accountability fostered by these reporting requirements drive companies to innovate and implement more sustainable practices, ultimately contributing to the reduction of embodied carbon in Hong Kong's development projects.

However, feedback from stakeholders has indicated a lack of clear definitions for low carbon materials and uncertainty about how to effectively reduce the embodied carbon of development projects. To address these concerns, Alliance has obtained Green Product Certification and published the Environmental Product Declaration for our concrete products, disclosing the embodied carbon. In 2024, Alliance conducted benchmarking exercises to define low carbon concrete. Locally, using the CIC Carbon Labelling for concrete, we set a 30% reduction of the average carbon emission as the threshold for low carbon concrete, finding that 63.4% of our products met this criterion. Additionally, benchmarking against the Global Cement and Concrete Association (GCCA) threshold of 5.5kg CO2-e/MPA/m3 revealed that 37.7% of our concrete products were within this limit.

Despite the absence of a recognized threshold for low carbon concrete in Hong Kong, these benchmarking exercises provide valuable insights into Alliance's progress towards net-zero. The results underscore the need for accelerated carbon reduction actions to meet the targets, both for Alliance and the broader industry.

Roadmap to Achieve Net-Zero 2050

Source: Global Cement and Concrete Association

We are committed to exploring carbon reduction opportunities. According to the "Net-Zero Pathway" published by the GCCA in their GCCA Concrete Future Cement Industry Net Zero Progress Report 2024/25, improving efficiency in concrete production contributes 11% towards achieving net zero. We have thoroughly examined our concrete production process, from energy consumption at our production sites to factors affecting production line productivity and logistics efficiency.

During the reporting period, we continued upgrading our concrete mixer truck fleet to 5-axle 10m³ trucks. This initiative aims to enhance concrete delivery efficiency, reducing carbon emissions from fuel consumption by over 10%. To complement these trucks, our concrete batching plants at the Tsing Yi Concrete Production Hub are equipped with 5m³ mixers, optimizing both productivity and energy efficiency.

Cement and binder savings contribute 9% towards net zero. We have been optimizing our concrete mixes to reduce cement usage. Through continuous improvements to our quality management system, we have prevented excessive cement use while maintaining the highest product quality.

We acknowledge that carbon capture and utilization/storage (CCUS) and efficiency in design and construction are the most significant contributors to net zero, accounting for 36% and 22% respectively. However, due to the scale of investment and feasibility, launching a CCUS project in Hong Kong is beyond our capabilities as a concrete supplier. Instead, we focus on supporting and collaborating with contractors and developers to drive efficiency in design and construction.

We have published Environmental Product Declarations for our concrete products. Using the LCA tool, we can estimate the carbon sink of concrete throughout its lifecycle, which contributes 9% towards net zero.

Introducing the 1st Battery Electric Concrete Mixer Truck to Hong Kong

One-year Trial in Hong Kong

Transitioning to new energy transportation is a strategic action in the Hong Kong SAR Government's Climate Actions for achieving net-zero by 2050. In preparation for this transition, we collaborated with SANY, a major construction machinery manufacturer, to introduce the first battery electric concrete mixer truck to Hong Kong for a one-year trial. The trial aimed to evaluate the feasibility of using battery electric concrete mixer trucks in Hong Kong and to address industry questions regarding E-truck applications, such as the impact of battery charging on productivity.

After completing all preparatory work, including obtaining type approval for the truck, the trial was officially launched on 15 November 2023. The one-year trial, which concluded in December 2024, provided valuable insights into potential carbon reduction and cost savings from new energy trucks, while also identifying the impacts of the increased tare weight of the truck.

Technical Procurement Guideline on Low Carbon Construction

Recognizing the building industry's growing need for breakthroughs in low-carbon construction solutions and supporting infrastructures to steer decarbonization towards company-level targets and global and regional net-zero visions, RESET and the Hong Kong PropTech Alliance have initiated a Low Carbon Construction Solutions Working Group (the Working Group). The primary objective of this group is to accelerate the development of the low-carbon construction market by providing a market signal to the upstream value chain, standardizing accounting and benchmarking, and soliciting policy support to unlock reduction opportunities.

In 2023, Alliance actively engaged with the Working Group, contributing technical expertise in concrete and innovative ideas to support the development of the Technical Procurement Guideline on Low Embodied Carbon Construction. This Guideline aims to provide a comprehensive embodied carbon playbook that covers the entire lifecycle of a building, from the product stage (A1-A5), through the use stage (B1-B5), to the end-of-life stage (C1-C4), ensuring the most accurate and comprehensive results possible. The Guideline was launched in September 2024.

Sustainable Concrete and Low Carbon Cement

Concrete, being the second most utilized material after water, plays a crucial role in supporting urbanization and human societies. However, the production of concrete is responsible for approximately 8% of the world's total carbon emissions, with the majority stemming from its cement content.

In our commitment to reducing carbon emissions, Alliance is proactively exploring all potential reduction opportunities and collaborating with stakeholders across the value chain to drive carbon reduction efforts.

Through a comprehensive life cycle assessment, we have identified key opportunities to reduce emissions throughout the entire life cycle of concrete. Our strategic actions, based on this assessment, focus on two main areas:

Reduce the embodied carbon of cementitious materials, which are the primary source of concrete's carbon footprint.
Innovate in the development of sustainable products to further minimize environmental impact.

By taking these steps, Alliance is dedicated to upholding its carbon reduction responsibilities and contributing to a more sustainable future.

Work with Major Supplier on Carbon Reduction

Green Island Cement's Commitment to a Low Carbon Economy

Cement accounts for over 80% of the embodied carbon in concrete, making it the single largest contributor to concrete's carbon footprint. Therefore, reducing the embodied carbon of cement presents the most significant opportunity for decarbonizing concrete. Our partnered cementitious supplier, Green Island Cement (GIC) - a leading cement manufacturer in Hong Kong-is proactively implementing strategies to lower the carbon intensity of its cement production. In alignment with the global shift toward a lowcarbon economy, GIC has identified two key pathways for carbon reduction: the adoption of alternative fuels and the use of sustainably sourced raw materials.

Alternative Fuels Initiative

GIC recognizes the use of alternative fuels as a crucial strategy to lower its net CO2 emissions. Currently, they hold an SP license that enables them using alternative fuels and are in the process of developing a robust supply chain. The alternative fuels utilized include wood-derived fuel, rubber-derived fuel, plastic-derived fuel, and polyurethane residue which is supplied by local recyclers. The alternative fuels are being used in clinker production at the Tap Shek Kok Plant.

Eco-Friendly Sourced Raw Materials

In 2024, GIC achieved an 86.7% usage rate of eco-friendly sourced raw materials, a slight increase from 84.7% in 2023. These materials are by-products from other industrial processes and include:

Crushed-rock fines limestone
Flyash
Bottom ash
Flue-gas desulphurization gypsum
Low-grade gypsum from coal-fired power plants
Bed-ash from T-Park
Glass cullet
Used alumina
Slag from copper smelters and blast furnaces
Oyster shells

Reducing Clinker Content

GIC's efforts to reduce clinker content in their cementitious products are reflected in the increased percentage of supplementary cementitious materials (SCM), which rose to 17.4% in 2024 from 15.0% in 2023.

Innovative Approaches

GIC is also exploring the use of bio-mass carbonate and non-carbonate based calcium sources to replace fossil calcium carbonate in their clinker production process. A notable initiative is the ShellCem pilot program, launched in August 2024, which focuses on recycling used oyster shells.

Through these initiatives, Green Island Cement is making meaningful progress in reducing the carbon footprint of cementitious materials. This directly supports our ability to offer low-carbon concrete solutions for development projects, aligning with broader sustainability goals.

Pioneering Sustainable Concrete Solutions for Hong Kong's Future

As Hong Kong continues to evolve as a global metropolis, the demand for innovative, sustainable construction materials has never been greater. At Alliance, we are proud to lead the charge in supplying sustainable concrete products that not only meet the city's rigorous infrastructure needs but also align with its ambitious sustainability goals. Our commitment to reducing environmental impact while enhancing structural performance is evident in our range of groundbreaking concrete solutions. These products―characterized by low embodied carbon, reduced lifecycle emissions, and the innovative use of recycled materials― are helping to shape a greener, more resilient Hong Kong.

Transforming Plastic Waste into High-Performance Concrete

One of our initiatives involves turning recycled plastic bottles into recycled aggregates for concrete production. By processing discarded plastic bottles into high-quality recycled aggregates, we produced a Grade 20 concrete that has been successfully trialed in the MTRC 1201 Tung Chung West Station and tunnel project. This approach delivers a dual environmental benefit: it diverts plastic waste from landfills and reduces carbon emissions associated with traditional aggregate production and these recycled aggregates are carbon neutral. Beyond its ecological advantages, this concrete can achieve the desired performance, proving that sustainability and performance can go hand in hand.

First GGBS D-wall in Hong Kong’s – Nearly 22% Carbon Reduction

We demonstrated our commitment to sustainable construction by supporting MTR Corporation’s green goals in the Tung Chung West Station and Tunnels project (Contract 1201). In this large-scale development, we supplied 40,000m³ of low-carbon concrete specifically for diaphragm wall (D-wall) construction, using a Grade 45/20D GGBS mix in place of the conventional PFA mix typically specified. This innovative material switch resulted in a 21.9% reduction in embodied carbon, significantly lowering the environmental impact of the foundation works.

This initiative marked a major milestone as the first MTRC project—and the first in Hong Kong—to adopt GGBS in D-wall construction. The first D-wall was successfully cast in March 2024, with excellent structural performance, validating the use of GGBS in critical foundation applications. This project stands as a clear example of Alliance’s leadership in advancing low-carbon technologies in Hong Kong’s infrastructure sector.

High-Strength Tremie Mix for Efficient and Sustainable Foundations

Our Grade 60 Tremie Mix, approved by the Housing Authority (HA) and supplied to the HA project, representing another leap forward. This project is the first HA project to upgrade to Grade 60 tremie concrete with volume over 40,000m3. Incorporating 25% Pulverized Fuel Ash (PFA), this mix is designed for bored pile applications, offering higher strength to sustain greater loading and shear forces. By reducing the need for excessive rebar, it lowers embodied carbon while providing greater flexibility in construction design. Recently all HA projects are towards to adopt Grade 60 tremie concrete. This product underscores our dedication to delivering sustainable solutions that optimize both environmental and structural outcomes.

Streamlining Construction with Set Controlled Slipform Concrete

For the HY/2018/08 Central Kowloon Route – Central Tunnel project, slipform non-stop construction method has always been a challenging construction method with extremely high requirement on concrete performance including controlled workability retention and strength development. Our Grade 45 Set Controlled Slipform concrete has proven its value in casting shaft linings. Enhanced with polypropylene fibers (PPF) and engineered for extra retention and set control, possesses fire spalling prevention properties, this mix enables a continuous, non-stop construction process. The result is faster project timelines and homogeneous concrete structures that enhance durability. By speeding up construction without compromising quality, this solution supports Hong Kong's need for efficient, sustainable urban development.

Self-Consolidating Concrete: Efficiency Meets Excellence

Our Self-Consolidating Concrete (SCC) is transforming the way projects are built across Hong Kong, from the Proposed Commercial Buildings on STTL617 in Shek Mun to the MTRC XRL811A. SCC's self-leveling properties eliminate the need for vibrators, reducing noise, labor, and equipment costs while improving consolidation in congested areas. This creates a safer working environment, less nuisance to surroundings, consistent quality, smoother finishes, and greater design flexibility. By minimizing workforce demands, SCC also addresses the challenge of an aging labor pool, making it a cornerstone of sustainable and efficient construction.

Protecting Marine Ecosystems with Underwater Anti-Wash Concrete

Our underwater anti-wash, self-leveling concrete simplifies underwater construction without compromising environmental integrity. Used in projects along Hong Kong's coastline, this product ensures no pollution to the sea and eliminates the need for additional vibration and labour work. By streamlining the construction process while safeguarding the seashore, this product reflects our holistic approach to sustainability― balancing ecological preservation with practical innovation.

Building a Sustainable Legacy

At Alliance, we believe that sustainable concrete is more than a product―it's a commitment to Hong Kong's future. By integrating recycled materials, slashing carbon emissions, and enhancing construction efficiency, our solutions are supporting the city's sustainable development goals. From mass transit systems and public housing to commercial towers and marine infrastructure, our concrete is laying the foundation for a low-carbon, resilient urban landscape. As we continue to innovate, we remain dedicated to partnering with stakeholders across the industry to build a Hong Kong that thrives for generations to come.

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