HKPC Releases “Carbon Neutrality Progress and Challenges 2024/25" Industry Survey Results Significant Increase in Carbon Neutrality Awareness Businesses Require Technical and Financial Support to Meet Sustainability Compliance

(Hong Kong, 31 July 2025) — The Hong Kong Productivity Council (HKPC) and the City University of Hong Kong's School of Energy and Environment today jointly released the results of the "Carbon Neutrality Progress and Challenges 2024/25”. This follow-up survey, debuted in 2022/23 with strong industry engagement, aims to monitor latest progress and challenges encountered by local enterprises in their carbon neutrality transitions, considering the growing focus on Environmental, Social, and Governance (ESG) issues, evolving regulatory landscapes, and new carbon reduction strategies.

The latest 2024/25 survey results indicate that the awareness of “carbon neutrality” is rising: although 60% of surveyed organisations remain unfamiliar with the concept, overall awareness has increased 10% compared to 2022/23. More companies are setting "carbon neutrality" targets and conducting regular carbon audits, reflecting a deeper understanding of carbon neutrality and a growing commitment to low-carbon transformation. However, nearly 70% of respondents suggested that there was a lack of sufficient resources to implement carbon neutrality measures, amid growing demands for sustainability compliance and external supply chain pressures.

The 2024/25 survey included 126 enterprises, comprising 49% small and medium-sized enterprises (SMEs) and 51% large corporations or organisations. While 62% of enterprises still do not fully understand the concept of "carbon neutrality" and 52% have never conducted carbon audits or regular assessments, these figures show improvements from the 2022/23 survey, decreasing by 10% and 14% respectively. Regarding carbon reduction targets, 78% of enterprises have not yet established comprehensive carbon neutrality targets, although this marks a slight improvement compared to the 2022/23 survey results, decreasing by 4%. This indicates that there is still room for enhancement in the formulation of carbon reduction targets. 67% of enterprises, particularly SMEs, cite lack of resources as a barrier to effectively implement carbon reduction measures, indicating the urgent need for targeted support.

The survey identifies three major challenges that hinders business progress towards carbon neutrality. Over 80% of enterprises identify "high financial capital requirements", "lack of price incentives to shift from carbon intensive business models" and "lack of technical knowledge on assessment, professional expertise, and reliable & affordable low-carbon technologies" as primary barriers to advancing carbon reduction measures. Additionally, more than half of the surveyed companies have asked, or been asked as a supplier, to provide carbon management information related to production, in which over 70% are related to European Union’s Carbon Border Adjustment Mechanism and Scope 3 emission calculations. Particularly, over half in manufacturing and import/export sectors indicates the impact of carbon tariffs to their operations is pronounced. This reflects the increasing challenges businesses face regarding sustainability compliance and external supply chain demands. The survey also highlights that primary needs for achieving carbon neutrality focus on financial assistance and technical support, including tools and methodologies for Scope 3 and product carbon footprint assessments, green technologies, external consulting services, and training.

Dr Keith CHOY, General Manager of Green Living and Innovation Division of HKPC, stated,"HKPC is dedicated to fostering industry development by driving new productive forces through collaboration among government, industry, academia, and research. We have launched tailor-made carbon management capacity-building programmes for a range of industries, including electroplating, knitting, and food and beverage, to help enterprises integrate carbon management into their daily operations and better understand their impact on climate change. In addition, we provide a comprehensive suite of professional services and are continuously advancing and promoting the adoption of green technologies across sectors, accelerating the transition towards a low-carbon economy."

Professor Michael LEUNG, Professor of Shun Hing Education and Charity Fund (Energy and Environment) and Chair Professor of the School of Energy and Environment at the City University of Hong Kong School of Energy and Environment, expressed, "We are pleased to once again collaborate with HKPC on this important survey. The findings highlight the practical needs of industry amid the growing momentum toward carbon neutrality and offer valuable data for reference. These insights will support the government, academia, and relevant organisations in formulating effective strategies and providing the necessary support, ensuring that industry is fully prepared to meet future challenges and achieve the goal of carbon neutrality."

HKPC is committed to addressing the industry's needs by providing practical support to help businesses develop actionable emission reduction strategies, working together to prepare for achieving carbon neutrality. Currently, HKPC is proactively collaborating with the industry to host campaigns supporting carbon neutrality, such as the Hong Kong Women Professionals and Entrepreneurs Association's "Environment and Conservation Fund Carbon Neutrality Campaign," and Hong Kong Federation of Restaurants & Related Trades’ "F&B Industry Carbon Neutral Programme," to promote the transition from knowledge to action for both the industry and the public, driving low-carbon transformation.

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Dr Keith CHOY, General Manager of Green Living and Innovation Division of HKPC (left), and Professor Michael LEUNG, Professor of Shun Hing Education and Charity Fund (Energy and Environment) and Chair Professor of the School of Energy and Environment at the City University of Hong Kong School of Energy and Environment (right) announced the results of “Carbon Neutrality Progress and Challenges 2024/25" Industry Survey.