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MARKET SNAPSHOT
Index Carbon Analysis: Hang Seng - February 2025
Our latest Market Snapshot examines emissions trends across Hong Kong’s Hang Seng index. It highlights the paradox of the decarbonisation story in the region.
Key Findings:
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Scope 1&2 emissions increased in 2024, Scope 3 fell
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Top 5 emitters represent ~80% of index emissions (10% of market cap)
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Index faces 46% potential carbon liability under IPCC Net Zero scenario by 2050
Analysis of Scope 1 and 2 emissions shows that the increased emissions within this index during 2024, were partly driven by growing global demand for BYD’s electric vehicles.
This reflects China’s strategic energy decisions, and is likely to mean emissions increase through to 2030. However, the current weight of investment in renewable generation capacity will likely mean a significant acceleration in the index, and economy as a whole from 2030 to 2050.
This analysis forms part of our regular series examining carbon footprints across major indices, providing investors with actionable insights into sector patterns and transition risks. If you'd like to subscribe to receive future Market Snapshots direct to your inbox, you can at the bottom of this page.
Importantly, for market participants wanting to invest in Asia’s growth potential, we also highlight the concentrated nature of emissions in this market - ~80% of the index's total emissions are produced by 10% of its market cap, led by energy giants PetroChina and China Shenhua Energy.
More metric-specific details coming soon...
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