YIP On-kei, Sherry - New World Construction Company Limited

SCA 2018 Young Practitioner - Outstanding Award

The King’s Road Commercial Re-development project comprises a 28-storey high-rise block. The project has received the first ever Green Loan in Hong Kong. The project adopts full BIM to promptly identify and resolve design conflicts at early design stage, thus avoiding the subsequent abortive works and environmental nuisances. Other sustainable measures include internal laboratories, innovative plants, comprehensive recycling and neighbourhood caring programme, etc.

The First Ever Green Loan & Highest Green Building Certification Targets

The Project has successfully raised the first ever Green Loan in Hong Kong. It aligns with the Green Finance Policy of Hong Kong and China Governments, and achieves the Economic Pillar of Sustainability.

The project aims for the highest Green Building Certification levels, achieving the world’s first WELL Building Standard Core and Shell Precertification (Platinum), BEAM Plus New Building (Provisional Platinum) and LEED Building Design and Construction Core and Shell Pre-certification (Platinum).

Innovation Plant
  1. The “NCCOTM Air-Purification System” has been installed on Site to filter the air pollutants.
  2. The “Light Weight and Heavy Duty LED Lighting Tubes” are tailor-made for the construction environment. It is extremely durable and energy saving.
  3. The “Differential-Pressure Pumping System” sensitively detects the differential water pressure, automatically adjusts its operation, significantly reduces operation time and therefore tremendously saves energy.

E-Construction

The Project BIM Team are fully manned so that they can promptly respond to the frequent design changes, sort out quickly those hidden design conflicts and effectively avoid numerous abortive works and waste of materials.

New World Construction employs E-platforms to reduce paper consumption and boosts efficiency; examples include Construction Information Anywhere (CIA), Safety Information Apps, Self Service Portal (SSP), E-Newsletter, etc.

About the Model

The HKSAR Chief Executive had announced in the 2017 Policy Address to position Hong Kong as an Asia’s green finance hub for raising green capital. In view of the substantial GDP contributed by the construction sector annually, the construction industry has a high potential to meet the trend of green finance. Thus, there is a need to well define the green standard and system to facilitate the application of green finance in construction industry.

The Model aims to act as an interactive guide on environmental practices and advanced technologies for construction projects which is compatible with international green bond/loan principle. Green finance can mobilise capital for green and low carbon investments in the construction industry. Public owners, developers, contractors and suppliers could issue green financial instruments for funding their projects with reference to the guideline of this model.

Interactive guide to classify construction practices based on green finance principle

Interactive guide to classify construction practices based on green finance principles

User-friendly model for set up its own checklist and sustainability KPIs

User-friendly model for set up its own checklist and sustainability KPIs

Sustainable hub to share latest local and intentional solutions

Sustainable hub to share latest local and international solutions

Why the Industry Needs Green Finance?

  • Green finance providing benefits for assisting the transition from the ‘brown’ to the ‘green’ construction.
  • Green finance can mobilise capital for green and low carbon investments in the construction industry
  • Stakeholders can seek opportunities for long pay back initiatives and low interest rates when adopting advanced and innovative measures.
  • To encourage investors from the Mainland along the Belt and Road as well as international investors to arrange green financing through Hong Kong construction capital markets.

Components of Green Bond/Loan Principles

images/Principles1.png

Green bond/ loan proceeds are to be applied for environmental (or “green”) projects with an indicative list of eligible project categories. See the figure below for the 10 eligible Green Project Categories.

images/Principles2.png

Recommends issuers/ borrowers to disclose their overall green objectives, the process used to determine eligibility of green projects, and the process to manage environmental and social risks of these projects.

images/Principles3.png

The net proceeds of the Green Bond/ Loan, or an amount equal to these net proceeds, should be credited to a sub-account, moved to a sub-portfolio or otherwise tracked by the issuer/ borrower in an appropriate manner, and attested to by the issuer/ borrower in a formal internal process linked to the issuer’s/ borrower’s lending and investment operations for green projects.

images/Principles4.png

Recommends annual reporting of the amounts allocated and results of the eligible green projects.

Green Project Categories

Key Features

no. of sustainability measures compatible with international green bond and green loan principle
41
no. of sustainability measures compatible with international green bond and green loan principles
no. of stakeholders and green finance experts engaged
162
no. of stakeholders and green finance experts engaged
no. of pilot projects
30
no. of pilot projects

NAVIGATE BY STAKEHOLDERS