Sustainable Transport
As an operator of a reliable, efficient and environmentally friendly public transport system, we offer a low carbon solution connecting communities with a greater carrying capacity than other modes of transport. In terms of operations, we are committed to mitigating our carbon emissions through the adoption of energy efficiency initiatives and renewable energy as well as strengthening our resilience and adaptation to climate-related risks. To tap into a growing market and diversify our sources of capital, we have established a Sustainable Finance Framework and entered into different forms of transactions to support our sustainability initiatives.
Sustainable Finance
Sustainable finance is an integral part of MTR’s financing strategy and reflects our commitment to sustainable development. As a pioneer in green finance in Hong Kong, we set up a Green Bond Framework in 2016, in alignment with the Green Bond Principles issued by the International Capital Market Association. Expanding on the foundation of the Green Bond Framework, we further established a Green Finance Framework in 2018 to cover other forms of green financing, factoring in components recommended in the Green Loan Principles issued by the Asia Pacific Loan Market Association.
In 2020, we put in place a Sustainable Finance Framework to cover a wider range of financing transactions where the proceeds are used for furthering the development of sustainable urban infrastructure in support of the United Nations Sustainable Development Goals. The Sustainable Finance Framework sets out how we use the proceeds to fund initiatives to enhance long-term service levels and environmental and social performance, as well as the reporting thereon.
The success of our sustainable and other capital market issuances indicated that MTR’s financing is well supported and recognised by our stakeholders.
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Climate-related Financial Disclosures
We recognise climate change is highly material to our business, posing both risks and opportunities to our existing operations as well as future development. To this end, we have in place a governance structure to ensure climate-related issues are discussed at the board level and the regular assessment of our climate-related risks through the Corporation’s Enterprise Risk Framework.
In 2020, we conducted an Extreme Weather and Climate Change Impact Study to review how extreme weather and climate change related events could impact our railway networks and operations in Hong Kong. The Study has also reviewed MTR’s current preventive measures and asset enhancement programmes, and assessed site conditions through surveys and inspections to evaluate and examine the resilience of our railway networks to extreme weather. Based on the Study results, we have developed a detailed adaptation and mitigation action plan to strengthen our climate resilience. Examples of key measure include provision of flood boards in areas with high flood risks, enhancement of the stability of a few man-made slopes along the East Rail Line and further investigation to improve our resilience measures.
We have commenced a high-level climate diagnostic study on our railway and property assets in Hong Kong to assess their exposures to climate-related physical risks under different time horizons and climate scenarios based on the Representative Concentration Pathways (“RCP”) designed by the Intergovernmental Panel on Climate Change. The Study will help us identify critical exposed assets at risk, which enables us to plan for a more in-depth scenario analysis where appropriate.
Since 2020, we have started to publish climate-related financial disclosures with reference to the recommendations of the Task Force on Climate-related Financial Disclosures (“TCFD”) to provide our stakeholders with comparable and consistent information on how we are tackling climate change and managing the associated risks and opportunities. We have structured our climate-related financial disclosures under the four core areas recommended by TCFD: governance, strategy, risk management, and metrics and targets. Details of our disclosures are provided in our Sustainability Report.
We also disclose our climate-related information through our publicly available CDP response.
Flood Prevention Measures at MTR Stations
To tackle the threats of flooding at MTR stations and underwater tunnels caused by inclement weather, we have implemented the following measures:
- With regard to railway and road infrastructure, we carry out the design, construction and maintenance of the flood protection and drainage systems of the railway and its facilities in accordance with the requirements stipulated by Drainage Services Department. We also review and formulate the preventive measures regularly, and strengthen the protective equipment as needed;
- The entrances/exits of most MTR stations are by design at least 450mm above street level and equipped with 1.2m high flood boards; waterproof doors are installed at the underground entrances/exits connecting MTR stations and other facilities as needed; floodgates are also installed at the immersed tube tunnel of railway tunnels where necessary to prevent ingress of flood water; and
- Emergency procedures for coping with catastrophic floods have been formulated to evacuate passengers from MTR stations as soon as possible in case of emergency, and drills are conducted on a regular basis.
Enhancing Preparedness for Typhoon at MTR Properties
Extreme weather events, such as rainfall, storm surge, lightning and typhoons, appear more frequently and become more threatening to Hong Kong. The Corporation has assessed geographic conditions of each property site and adopt suitable measures to deal with severe weather conditions.
The Super Typhoon Mangkhut in September 2018 brought severe storm surge to the territory, in particular the coastal areas such as Heng Fa Chuen. Since then, we have implemented a series of enhanced preventive measures in Heng Fa Chuen to strengthen its preparedness for extreme weather events in future. These include:
- Appointment of consultant to carry out technical studies to determine the preventive measures;
- Installation of floodgates at entrances and plant rooms in building blocks that are located near the coast and basement carpark;
- Installation of flap valves at the drainage pipe to avoid back flow of seawater;
- Construction of planter walls at Heng Fa Chuen Playground to prevent the influx of overtopping wave water;
- Replacement of the ordinary manhole covers to those with drainage holes to facilitate discharging the water surrounding club carpark;
- Installation of water senor at the basement carpark and reservation of hourly parking spaces in the shopping mall nearby for emergency use when the basement carpark is closed in situations where flooding risk is high during typhoon;
- Designation of temporary parking areas at the Podium for vehicles parked at the reclamation areas;
- Arrangement of backup management office at the Podium multistorey carpark to maintain services for the residents; and
- Conducting typhoon drill on a regular basis.
Upon receiving storm surge notification from the Home Affairs Department, we take immediate actions to get prepared and reduce flood risk as much as possible, including:
- Clearing drainage pipe inlet;
- Installing the floodgates for all blocks and basement carpark in reclamation area;
- Messaging the residents and carpark owners and draw their attention to weather condition;
- Informing the basement carpark owner to move their vehicles to temporary parking space in hourly carpark of Paradise Mall; and
- Allowing temporary parking in podium area.