CTF Services (CTFS) released its Environmental, Social and Governance Report 2026, outlining material progress on climate targets, sustainable finance and social initiatives during the financial year ended 30 June 2026.
Key environmental results show Scope 1 and 2 greenhouse-gas emissions down 17% from the FY2023 baseline, consistent with CTFS’s science-based goal to halve absolute emissions by 2035 and hit net-zero by 2050. The company procured 13 GWh of green electricity certificates and introduced on-site solar at logistics facilities, while a 60 MW battery-storage investment in Finland marked CTFS’s first direct entry into energy transition infrastructure.
Sustainable finance advanced sharply: green and sustainability-linked borrowings reached HK$20.20 billion, equal to 45% of total debt, after the launch of a Sustainability-Linked Finance Framework aligned with the 2025 Loan Market Association principles. Three core key-performance indicators track absolute Scope 1-2 emissions, Scope 3 data coverage and SBTi-aligned portfolio targets.
Governance structures were strengthened. The Board retains ultimate ESG oversight, supported by an ESG Committee and an ESG Management Task Force chaired by the Group CFO. A mandatory fraud-and-misconduct risk assessment now spans all business units, and an Incident Response Policy and checklist formalise cybersecurity procedures.
Climate-risk management deepened with scenario analysis across construction, facilities management, roads and logistics businesses, using IPCC SSP5-8.5 and SSP1-2.6/NGFS Net Zero 2050 pathways. Physical risk hotspots include labour productivity loss from heat stress in construction, while energy-mix changes under the net-zero scenario are projected to offer cost benefits.
On Scope 3, CTFS implemented a group-wide data-quality assessment, raising primary or activity-based data coverage to 61% of total Scope 3 emissions, which exceed 97% of the Group’s footprint. Hip Hing’s project-level carbon-forecast tool and HML’s procurement hotspot study were highlighted as pilots.
Social metrics remained strong. The lost-time-injury rate was 0.4 per 100 employees against a target of ≤3.0, and average training hours rose to 13 per employee. The Imp[ACT] Fund continued to seed internal sustainability pilots, while the CTFS Volunteer Alliance recorded 16,900 service hours.
External recognition included CTFS’s first AAA rating in the Hang Seng Corporate Sustainability Index and retention of an “AA” MSCI ESG rating. PwC provided limited assurance over selected ESG data, and HKQAA verified Scope 3 emissions.
Management reiterated that Breakthrough 2050—the company’s overarching ESG framework—remains on track, with climate action, sustainable finance and integrated risk management as immediate priorities.
Comments