The newly established Circularity Research Centre, operated by the Hong Kong Productivity Council (HKPC), provides small and medium-sized enterprises (SMEs) in Hong Kong with innovative technologies to improve their environmental, social, and governance (ESG) performance.

The centre focuses on cutting-edge fields such as waste-to-resource transformation, energy conservation, carbon reduction, and green material development.

Equipped with seven testing chambers that cover all known common degradation environments, such as compost, soil, seawater, and food waste, the centre’s biodegradability testing lab provides international biodegradability testing standards and simulates various degradation environments.

Biodegradability testing

The centre also offers a testing service that analyses the composition of tableware to ensure compliance with regulatory requirements for disposable, plastic-free products. Besides, the centre is developing new energy storage materials that increase vehicle range by 30% and extend fuel cell lifespan by 10%. 

Testing Service for the Green Tableware Platform

Thermal management system based on Phase Change Materials (PCMs) for Fuel Cell Vehicles (FCVs)

Capturing industrial carbon emissions for use in construction materials and recovery of valuable metals from lithium battery black mass are also recent research areas of the Circularity Research Centre.

Capturing industrial carbon emissions for use in construction materials 

Recovery of valuable metals from lithium battery black mass

The Circularity Research Centre supports the sustainable development of SMEs in coordination with ESG One, a platform that delivers practical and efficient sustainability solutions to SMEs. 

Launched by HKPC in 2024, ESG One offers online self-assessments, professional consultations, and strategic planning services to help businesses clearly define sustainability goals, achieve green transformation, and enhance ESG brand value.

As ESG becomes increasingly important for shaping brands, the Hong Kong government has been promoting ESG among enterprises. Last year, the Hong Kong Monetary Authority extended the Green and Sustainable Finance Grant Scheme, supporting companies moving towards green and sustainable development.

According to the Standard Chartered Hong Kong SME Leading Business Index released in 2024, the ESG awareness of more than ninety percent of surveyed SMEs has either increased or remained unchanged compared to the previous year in the past two years. 

However, only around ten percent of them have set ESG objectives. According to the Chief Technology Officer of HKPC Dr Lawrence CHEUNG on June 11, SMEs are Facing challenges like lack of expertise and technology, data collection and reporting challenges, financial pressure, and limited market exposure when practicing ESG.

To support SMEs’ ESG transformation, HKPC has proposed “Six Key Support Services of ESG Development” based on ESG One, covering knowledge, technology, funding, and talent.

HKPC will also introduce the ESG AI Benchmark Analysis Tool in 2025 to enhance ESG reporting and performance among SMEs, according to Dr Keith CHOY, General Manager of Green Living and Innovation Division of HKPC.

Picture credits: HKPC

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