Hang Lung Advances Real Estate Decarbonisation with First Mainland Project
Spearheading the effort to decarbonise real estate across China, Hang Lung Properties Limited is using nearly 100 percent low carbon emissions steel for all above-ground structural plates (to be manufactured into columns and beams) and reinforcing bars of its Pavilion Extension at its flagship Plaza 66 mall in Shanghai. This marks the first commercial real estate project in mainland China to incorporate low carbon emissions steel, sourced from Baoshan Iron & Steel Co., Ltd. (Baosteel), achieving a 35 percent reduction in the steel’s embodied carbon compared to conventional steel alternatives.
Real estate accounts for more than 38 percent of China’s total annual carbon dioxide emissions. In Hang Lung’s case, steel emissions accounted for approximately 40 percent of its total embodied carbon emissions in 2023, making steel decarbonisation essential for achieving its goal of reducing its scope 3 greenhouse gas emissions. Hang Lung’s low carbon emissions steel transaction with Baosteel is an example of how leadership in real estate can help China reach its goal of carbon neutrality by 2060.
Baosteel will supply 1,171 tonnes of its BeyondECO® low carbon emissions structural steel and 325 tonnes of BeyondECO® low carbon emissions reinforcing bars for the Plaza 66 Pavilion Extension project, which is now underway and due for completion in 2026.
“The steel procurement in our Plaza 66 Pavilion Extension project is an exciting moment for Hang Lung,” said Mr. Adriel Chan, Chair of Hang Lung Properties. “Thanks to our collaboration with Baosteel, a leader in steel decarbonisation in China, as well as with other industry partners, we have set a new benchmark for steel emissions reductions in the real estate sector. Hang Lung will continue to implement sustainable practices across our value chain, including the application of low carbon emissions steel on other development projects, such as Westlake 66 in Hangzhou.”
To meet Hang Lung’s stringent low carbon emissions steel tender specifications for the project, the main contractor and Baosteel collaborated closely to provide accurate product-level carbon emissions data with the Company. This collaboration set a new industry standard for transparent, traceable and trusted emissions data. Baosteel calculated the products’ carbon footprint through Baosteel intelligent Carbon Data platform using a lifecycle analysis model developed by Shanghai E-Carbon Digital Technology Co., Ltd. (EC-Digital). This data was verified by TÜV SÜD, a global third-party certification body.