Net Zero by 5 Chinese Tech Giants Can Decarbonize 25% of Hang Seng Index
These tech giants, including Alibaba, Baidu, China Mobile, Tencent, and Xiaomi, were responsible for emitting 87 million tonnes in the 2021-22 fiscal year, surpassing Hong Kong's annual emissions of 34.7 million tonnes, which can collectively eliminate emissions equivalent to 2.5 times that of Hong Kong.
Five major Chinese ICT giants – Alibaba, Baidu, China Mobile, Tencent, and Xiaomi – could offset Hong Kong’s annual greenhouse gas emissions 2.5 times over if they achieve net zero emissions, says a study by China Water Risk.
These companies hold substantial sway in the Hang Seng Index, accounting for 25% of its weight, 36% of its market cap, and 28% of revenue for all Chinese ICT firms on the exchange.
Alibaba, Baidu, and Tencent have previously pledged carbon neutrality by 2030, coinciding with China’s emissions peak. Xiaomi aims for carbon neutrality by 2040, while China Mobile’s net-zero target remains undisclosed.
The report urges these ICT giants to commit fully to net zero, potentially reducing a fifth of the Hang Seng Index’s emissions. However, no immediate responses were received from these companies.
China Water Risk’s analysts highlight the potential to decarbonize China’s internet sector, crucial for economic growth and the 2060 net-zero commitment. In the 2021-22 fiscal year, Alibaba, Baidu, China Mobile, Tencent, and Xiaomi emitted 87 million tonnes (Scope 1, 2, and 3), dwarfing Hong Kong’s 2021 emissions of 34.7 million tonnes.
Presently, only 12 million tonnes of the 87 million tonnes of emissions are part of the net zero pledge. This figure could increase to 21 million tonnes if Baidu and Alibaba include Scope 3 emissions. Yet, these Chinese companies still trail behind their Silicon Valley counterparts, such as Alphabet, Amazon, Apple, Meta, and Netflix, in the race to achieve net-zero emissions.
