Sustainability within the Institute
In the face of a rapidly changing world, the Institute acknowledges the vital importance of incorporating climate and sustainability aspects into the accounting profession. With its ongoing adaptation and evolution alongside the profession, the Institute remains steadfast in its dedication to advancing sustainable business practices, raising awareness, and offering guidance to members on environmental, social and governance issues. With a commitment to fostering a sustainable efforts, we have joined 13 other accounting bodies, all members of Accounting for Sustainability (“A4S”), in publicly committing to achieving net-zero greenhouse gas emissions within our own organizations, as well as provide an enabling environment for our membership to do the same. Below is an update on the progress of our carbon reduction efforts and pathway to net-zero.
Our carbon footprint
In 2022, the Institute commenced its first carbon footprint exercise covering four major sources of emissions, including:
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The use of purchased electricity at our Hong Kong office and training facilities at Wu Chung House to support our operations and members services. |
| Paper used for the printing of our publications, training and exam materials, as well as internal printing at our offices. |
| Air-flights taken by the Institute’s representatives and staff for necessary business purpose to Mainland China and overseas. |
| Daily travels of employees to and from our office using various means of transportation. |
In FY2024/25, total GHG emissions amounted to 330 tCO₂e, representing an 7% decrease from 353 tCO₂e in FY2023/24 and a 43% decrease from 583 tCO₂e in FY2019/20.
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Remarks: due to the nature of the Institute’s operations, no material scope 1 emissions were generated. Please refer to the Notes below for the methodology of our carbon emissions calculation.
Our achievements to-date
Compared with the FY2019/20 baseline year, when the Institute first set its GHG reduction target, the overall reduction reflects progress across multiple areas of operation and practice. Several operational and behavioural changes were particularly influential, including:
· Electricity use: Reduced by 53%, reflecting energy efficiency improvements, replacement of equipment with energy-saving models, and office space optimization.
· Paper consumption: Reduced by 69%, driven by digitalization initiatives and automated workflows that minimized the use of paper.
· Employee commuting: Reduced by 23%, supported by streamlined operations and shifts in commuting practices.
At the same time, business air travel emissions increased in recent years as international engagement resumed and strengthened. This trend was partly amplified by revisions to the emissions calculation methodology of International Civil Aviation Organization (ICAO), which further differentiates emissions across cabin classes and has had an impact on reported figures. To mitigate these impacts, the Institute has adopted measures such as prioritising virtual or hybrid participation where feasible, encouraging lower-emission travel options, and assessing travel needs more rigorously to balance connectivity with sustainability considerations. The Institute will continue to strengthen its approach to sustainable travel by promoting staff awareness and reviewing practices to further reduce emissions while supporting effective stakeholder engagement.
Our way forward
Building on the experience of our first five-year GHG reduction commitment, the Institute is preparing the next phase of its climate strategy. A central part of this process will be a more thorough assessment of our emissions profile and material impacts, which will provide a clearer picture of where our greatest challenges and opportunities lie. To strengthen its foundation, the assessment will be informed by consultation and collaboration with key stakeholders from facility managers to external experts, ensuring that our approach reflects both operational practicality and emerging best practices.
Insights from this exercise will guide the evaluation of potential reduction pathways, including a new set of reduction targets that may extend to additional material Scope 3 categories, and the actions needed to deliver sustained progress. Alongside this, we plan to further enhance the robustness and credibility of our GHG reporting by streamlining data collection, refining methodologies and aligning disclosures more closely with evolving standards. These steps will help ensure our reporting remains transparent and provide a stronger basis for decision-making over time.
In addition, the Institute will carry forward its efforts to transition towards lower-carbon operations, by regularly assessing opportunities for infrastructure upgrades to improve energy performance, pursuing further digitalisation and process improvements, and reviewing internal policies to strengthen sustainability integration across operations. Together, these initiatives reflect our ongoing commitment to reducing the Institute’s environmental impact, enhancing resilience, and contributing to Hong Kong’s broader sustainability agenda.
For our initiatives relating to sustainability education, standard setting and advocacy, please refer to our Annual Report.
Notes: Methodology of carbon emissions calculation
Carbon emissions were calculated according to the Greenhouse Gas Protocol published by the World Resources Institute and World Business Council for Sustainable Development, with emission factors sourced from:
• Sustainability Report of HK Electric Investments Limited
• Sustainable Finance Report of MTR Corporation Limited
• International Civil Aviation Organization Carbon Emissions Calculator
• “Greenhouse Gas Reporting: Conversion Factors” issued by the UK Government
The data sources and assumptions used for our emission sources are as follows:
Use of electricity
Use of electricity included the electricity consumption of our Hong Kong office at Wu Chung House that were fully controlled and paid directly by the Institute, and consumption data was obtained from the electricity bills issued by HK Electric. Electricity consumption of other building facilities that were centrally managed by the building management office were not included due to the data being unavailable.
Paper consumption
Paper consumption data were captured internally through the printing systems consumption and procurement records. The paper consumed by pieces were converted to weight based on the size and grams per square meter of various types of paper for calculating carbon emissions.
Business air travel
Business air travel data was obtained through the internal travel management system with details such as number of passengers, destination and flight class of each trip.
Employee commuting
Employee commuting data was collected through an employee commute survey, and emissions were calculated on the basis of distance travelled and mode of transportation taken by our employees on working days. The results from the August 2023 survey were also used to estimate the FY2019/20 & FY2020/21 emissions from employee commuting.
The Institute will continue to review its methodology and make necessary enhancements over time to support its efforts to reduce carbon footprint.
