Boosting Corporate ESG Performance through New Quality Productive Forces

Applying energy-saving technologies can effectively reduce operating costs, increase profitability, enhance a company's Environmental, Social and Governance (ESG) performance, and benefit corporate financing, improve public image, and diversify risks, making the company more resilient and future-proof. The Construction Industry Council (CIC), visited several public organisations and enterprises in the Greater Bay Area and East China last month with industry representatives, to understand how the Mainland construction industry is nurturing "New Quality Productive Forces" (NQPF). The focus was on new energy and new technologies, and how different companies are using NQPF to improve their ESG performance.

Visited Leading Green Enterprises in the Greater Bay Area

Chinese companies have long been world leaders in new energy technologies and production. The CIC's "Greater Bay Area Construction NQPF Study Tour" visited the factories of two leading green enterprises - Contemporary Amperex Technology Co., Limited (CATL) and South Glass Energy Saving Glass, to understand the latest R&D achievements in new energy storage equipment and energy-efficient glass. CATL's Zhaoqing factory uses 100% renewable energy in its production process. South Glass, which mainly produces photovoltaic materials, achieves carbon offsetting through photovoltaics, energy efficiency, and energy storage.

The delegates also visited the Shenneng Environmental Protection Longgang Energy Eco-Park, which won the National Quality Engineering Gold Award last year. The eco-park converts a portion of municipal waste into eco-bricks and industrial water through waste incineration power generation. It successfully turns waste into energy.  We also visited the "Zero-Carbon Architecture Lab", a lab at the Shenzhen Institute of Advanced Technology of the Chinese Academy of Sciences, to learn about the testing procedures and standards for energy-saving building technologies.

New Energy x Smart Robotics x Artificial Intelligence in East China

New energy remained the focus of the East China study tour. The CIC delegation visited the R&D facilities and laboratories of the hydrogen energy tech company, Shanghai REFIRE Group Limited. The representatives also gained valuable insights from the ZYF Holding Group Co., Ltd. and the Future Energy Pavilion established by GCL (Group) Holdings Co., Ltd. The former uses BIM, robotics, and smart operations to optimise the entire lifecycle management of buildings, while the latter has made breakthroughs in photovoltaic industry technologies and product development.

At a time when the world is striving to develop a zero-carbon and new energy economy, Hong Kong must keep pace. In fact, world-class energy conversion facilities have already been put into operation locally, such as the Offshore Liquefied Natural Gas (LNG) Terminal jointly built by CLP and HK Electric, which further increases the proportion of natural gas power generation in Hong Kong. In addition, T.Park and O.Park are also public facilities that transform waste into energy.

The East China study tour visited the flagship project "Shanghai Songjiang Railway Station". The project is one of the five key new town projects in Shanghai. The roof of the project uses large-span heavy steel structures. It extensively uses smart architectural technologies such as BIM, smart robots, and automated measurement and monitoring systems to solve difficult problems during the construction process. The Robotics and Artificial Intelligence Laboratory of Tongji University showed the delegation how their self-developed project CivilGPT deepens the integration of artificial intelligence and civil engineering, and even staged an interesting robot soccer match that day.

Smart Robotics Innovation for Construction Site Safety

Providing a safe working environment for employees is a social responsibility that companies must undertake. At Hangzhou, the delegation visited Unitree Robotics to learn about the latest development of robots and robotic arms. I was particularly impressed by the "quadruped robot" with terrain sensing and efficient motion control capabilities, which can conduct surveys in complex construction site environments. Another company, NetEase Fuxi, specialises in developing industrial-scale models and autonomous excavators and loaders supported by Agent-Oriented-Programming (AOP) technology. By pairing smart distribution systems and standardised tasks with clear goals, their machines can automatically execute arduous and repetitive work, reducing labour strain on workers.

147 Construction Sites Pass the 4S Labelling Scheme

The "Smart Site Safety System Labelling Scheme", jointly launched by the CIC and the Development Bureau this year, is a milestone in the use of technological innovation to enhance construction site safety. As of August, 147 public and private construction sites have passed the assessment and been awarded the label plaque. The CIC encourages the industry to adopt Smart Site Safety System (4S) as soon as possible to safeguard the well-being of construction site personnel.

The CIC has designated this year as the "Year of Construction Safety". Last week's "Construction Safety Week 2024" was held under the theme "Safety for All, 4S Stands Tall".  As mentioned in the opening remarks by the Secretary for Development, Ms. Bernadette LINN, there is still room for improvement on Hong Kong's construction sites. She also mentioned in her speech that the government will encourage the industry to install the Safety Smart Construction Site System as soon as possible to protect the well-being of workers. The CIC will also unite the efforts of all stakeholders to promote the goal of "zero accidents" on construction sites.

Hong Kong Deputy to the National People’s Congress Calls for Promotion of Smart Construction

The August episode of "CIC - See What I See" event invited Ir Allen YEUNG, a Hong Kong Deputy to the National People’s Congress, as the speaker. Allen, a leading figure in the technology sector, gave a clear and concise explanation of the NQPF framework and encouraged the industry to accelerate its digitalisation process. In the long run, this can help Hong Kong to develop a common digital platform, even a digital twin, and promote Hong Kong to become a safer and greener city. Mr. Victor Tai, Under Secretary for Housing, who attended the event, also expressed his expectation that the NQPF will bring a more innovative culture to the construction industry and accelerate Hong Kong's transformation into a smart city.

Last week, the CIC held the "Digital Twin Leadership Summit," inviting nine experts in the digital twin field to share their experiences and expertise in implementing digital twins. The discussions at the summit were exceptional, covering project management, site control, asset management, cost management, and data utilisation. Not only did it boost confidence in using digital twins among construction professionals, but it also enhanced the competitiveness of Hong Kong's construction industry.

"Future Construction Excellence Programme" Broadens International and Regional Perspectives

The first phase of the "Future Construction Excellence Programme" will be launched later this month. Senior management in the industry are invited to participate. The programme aims to promote the upgrading and transformation of Hong Kong's construction industry from a management perspective. The three-month programme will take participants to the UK, Shenzhen, and Hong Kong for classroom sessions and international seminars. Visits will also be organised to university research institutes, world-class construction companies, cutting-edge technology and environmental companies, factories producing via emerging technologies, and construction sites using advanced technologies. The CIC hopes to provide the industry with the latest international perspectives and technological knowledge, as well as insights and feasible solutions for local business implementation. The CIC also expects the programme to inspire industry leaders with a new vision for construction, drive the upgrading and transformation of Hong Kong's construction industry, promote a positive industry culture and help companies develop comprehensive strategies for big projects and long-term success.

The CIC's "Future Construction Technology Centre" is expected to open by the end of this year. The Centre will showcase and promote the latest construction technologies to help industry peers overcome technical challenges and improve quality and efficiency. Please stay tuned.

Leveraging the NQPF is an effective way to enhance ESG performance. In terms of sustainable development, optimising construction processes, adopting green building materials and methods, and applying innovative smart technologies to ensure employees working in a safe environment and fulfilling the employer's responsibilities, are all effective ways to enhance ESG performance. Improving a company's low-carbon supply chain and forming alliances with green partners to reduce the risk of future market changes are also examples of good governance.

NQPF and ESG are both important topics that the local industry needs to address. I believe that both are instrumental in creating resilient and financially sound companies. I encourage the industry to share more and experiment more on these two aspects. The CIC will continue to support the industry in building a green and sustainable modern construction ecosystem, helping all stakeholders to become more resilient to change, mitigating the impact of short-term challenges, and moving forward steadily.