Climate Change on the Horizon:
Hong Kong SMEs cut energy use but stop short of investing in low-carbon products and services
Hong Kong – 28 February 2012 – SME concern about climate change has spiked since 2010, according to the
second Hong Kong Business Survey on Energy Efficiency and Climate Change, released by the Climate Change
Business Forum (CCBF) today. The survey, conducted by Ipsos from September to October last year, reflects the
views of some 300 predominately small and medium-sized enterprises across diverse sectors on climate change risks
and opportunities. The vast majority are taking action to reduce their exposure to climate change risk, primarily by
cutting energy use. But very few are actively developing energy-efficient, low-carbon products and services, despite
anticipated market demand. Similar to last year’s survey findings, SMEs say the region is not prepared for climate
change and are seeking stronger leadership from the Government.
“We’re on a one-way journey to a carbon-constrained, energy-constrained world. Hong Kong SMEs have been
building their defense: cutting energy use. Now it is time to bring out the offense: green products and services for
the emerging low-carbon economy. Hong Kong’s competitiveness – and its quality of life – will depend on it,” says
Thomas Ho, Chief Executive of Gammon Construction and CCBF ExCo Chair.
Growing climate concern among Hong Kong SMEs
Rising cost of power, extreme weather events and disruptions due to pandemics and infectious diseases top business
concerns about climate change. Over 70 percent of SMEs expect such climate impacts to affect their businesses in
the next three years. Concern about extreme weather, pandemics and the scarcity of environmental resources
increased significantly in 2011, up by an average of 22 percent versus 2010 survey results.
Focusing on risks, not on future opportunities
Notably, nearly three quarters of companies surveyed are taking action to address climate risks. The majority is
focused on reducing energy consumption in the supply chain (53 percent), and setting energy or carbon reduction
targets in their operations (36 percent). Meanwhile very few are embracing new market opportunities. There is a
sizeable gap between perceived opportunity and action. A strong majority (69 percent) anticipates growing demand
for “green” products and services in the coming three years yet only 12 percent report they are actively developing
energy-efficient, low-carbon products and services.
Present market demand remains low, at just 14 percent.
SMEs seek stronger Government leadership on climate change
New climate change policy initiatives in Hong Kong and China have captured SMEs’ attention. Nearly half (48
percent) are familiar with Hong Kong’s proposed Carbon Reduction target.1 Of these, the majority (58 percent)
believes it should be more ambitious: a sign that business is seeking more Government leadership in this area.
Meanwhile, business confidence that Hong Kong and the Pearl River Delta are prepared for climate change and the
1
The target, proposed in September 2010, is to reduce carbon intensity, measured as units of carbon to produce one
unit of GDP, by 50 percent to 60 percent based on 2005 levels by 2020
transition to a low-carbon economy has fallen significantly over the past year. 64 percent judge the region as not
prepared, versus 45 percent in 2010.
A majority (57 percent) are aware that China’s 12 th Five-Year Plan advances ambitious environmental targets. Of
these, just under a third (31 percent) anticipates the targets will yield opportunity to their particular business. Yet
the business opportunity is, in fact, substantial. The estimated investment in environmental protection and pollution
control alone during the 12th Five-Year Plan period is about 3.4 trillion yuan, according to China’s Ministry of
Environmental Protection.
“Businesses are increasingly attentive to the threats and opportunities of climate change, and are seeking guidance.
Hong Kong’s new Government in 2012 should construct a collaborative framework integrating the scientific, policy,
business and local communities to build Hong Kong’s low-carbon development plan.” says Thomas Ho.
Press contacts
- For enquiries in English: Pua Mench, Communications Manager, CCBF | T: (852) 2784 3956 | E: [email protected]
- For enquiries in Chinese: Bonnie Ho, Research Manager, CCBF | T: (852) 2784 3951 | E: [email protected]
Research background
Survey research was conducted by Ipsos on behalf of the Climate Change Business Forum (CCBF). Approximately
300 companies, predominately from small and medium-sized enterprises, were interviewed via telephone between
September 8 and October 11, 2011 in Hong Kong. Sectors include but are not limited to import/export trade and
wholesale, retail, professional and business services and social and personal services. CCBF’s First Hong Kong
Business Survey on Energy Efficiency and Climate Change also targeted SMEs and was performed via telephone in
2010.
Climate Change Business Forum (www.climatechangebusinessforum.com)
Established in 2008, the Climate Change Business Forum (CCBF) convenes some of Hong Kong’s most astute
businesses to collaborate on tackling climate change. As a think tank on the transition to a low-carbon economy,
CCBF seeks to be a resource to Hong Kong’s business community and government. CCBF is an initiative of the nonprofit Business Environment Council.
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