Client: CTF Services Limited (“CTFS”)
Sector: Conglomerate with business units covering Roads, Insurance, Logistics, Construction, and Facilities Management
Location: Predominantly in Hong Kong & Mainland China
Ambition to: Achieve a 50% reduction in Scope 1 and 2 emissions by 2035 and net-zero emissions by 2050
Services: End-to-End Renewable Energy Solutions | Green Electricity Certificate (“GEC”) Procurement
Key Figures
From a 2023 baseline, CTFS aims to achieve the following:
- By 2035: Achieve a 50% reduction in Scope 1 and 2 greenhouse gas (“GHG”) emissions.
- By 2050: Reach net-zero Scope 1 and 2 GHG emissions across all operations, aligned with SBTi 1.5°C pathways.
- FY2025 Progress: Sourced >14 GWh of renewable energy and from this achieved ~8,000 tCO2e of emissions reduction.
About CTFS
CTFS is a Hong Kong listed, forward-thinking, conglomerate committed to integrating sustainability into its core business. They have a diversified portfolio of market-leading businesses that include toll roads, insurance, logistics, construction, and facilities management. Through the Group’s sustainable business model, it is committed to creating more values for all stakeholders and the community.
Under the ESG framework of Breakthrough 2050, CTFS is committed to turning sustainability ambitions into action by managing climate risks and seizing new opportunities. Through a phased approach, CTFS meticulously aligns each business unit with the Science Based Targets initiative (“SBTi”) standards, to drive credible and impactful progress toward a 1.5°C-aligned future.
The Challenge
CTFS sought to reduce its Scope 1 and 2 emissions by using renewable energy sources. This solution needed to align with its sustainability-linked financing requirements in line with the overarching commitment to achieving net zero.
Navigating the intricacies of GEC procurement while ensuring compliance with international standards presented a significant challenge.
Our Expertise
RESET, with extensive expertise in Mainland China’s renewable energy market and a proven track record of supporting organizations in their sustainability journeys, was well-positioned to guide CTFS. Our team leveraged strong relationships with state-owned renewable energy enterprises and deep market knowledge to deliver a tailored GEC procurement strategy.
Process & Roadmap
To support CTFS’s ambitious emissions reduction and renewable energy targets, RESET developed a comprehensive and tailored GEC procurement strategy for the company’s needs in renewables:
- GEC Procurement Model Recommendation: Conducted an in-depth analysis of GEC procurement options in Mainland China, recommending an optimal model that balanced cost, credibility and operability.
- Platform Support: Assisted CTFS with account registration for GEC procurement and retirement platforms to streamline the procurement process.
- GEC Screening Criteria: Established rigorous screening criteria for GEC projects, ensuring alignment with RE100 and global sustainability standards.
- Project Screening and Coordination: Screened GEC projects based on the defined criteria and coordinated with project owners to negotiate terms and secure supporting documentation.
- Contract and Transfer Facilitation: Supported contract signing, GEC transfer, and retirement processes to ensure seamless execution and compliance.
Key Outcomes
Through RESET’s tailored approach and strategic guidance, CTFS achieved significant milestones in its sustainability journey:
- Credible GEC Procurement: Successfully sourced GECs from Mainland China’s renewable energy projects, pioneering cooperation with state-owned enterprises to ensure credibility and alignment with global standards.
- Scope 2 Emissions Reduction: Advanced progress toward a 50% reduction in Scope 2 emissions by 2035, supporting CTFS’s broader net-zero ambition (FY2025 Progress – CTFS sourced >14 GWh of renewable energy and from this achieved ~8,000 tCO2e of emissions reduction ).
- RE100 and Financing Alignment: Ensured the GEC procurement strategy met RE100 requirements and supported CTFS’s sustainability-linked financing goals, enhancing credibility with stakeholders and reporting bodies.
- Cost-Effective Solution: Delivered a cost-efficient procurement model that maximized environmental impact without compromising financial objectives.
Lessons Learned
The collaboration with Mainland China’s state-owned renewable energy enterprises highlighted the importance of building strong partnerships to access credible GECs. This pioneering approach not only ensured compliance with global standards but also set a conglomerate-scale reference precedent for other organizations seeking to navigate China’s renewable energy market.
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