MTR Lab's tech bets to boost HK decarbonisation drive
MTR Lab is betting on innovative technology opportunities in in some key sectors in its efforts to drive carbon emissions lower in Hong Kong.
“We have seen an encouraging growth trend in the construction industry and the development of smart mobility. It is clear that reducing carbon emissions will remain our priority in the coming years,” Michael Chan, managing director of MTR Lab told AsianInvestor, noting there is a serious desire to incorporate technology solutions to green the construction industry.
“For the construction industry, our focus areas include technological advancements that can reduce carbon emissions and improve efficiencies at construction sites, which is crucial for developing a green and smart city.
"We also think the digitalisation of various aspects of the construction industry is important as it will help industry players adopt sustainable construction methods, ultimately reducing carbon emissions,” he told AsianInvestor.
MTR Lab is a wholly owned investment entity of MTR Corporation, Hong Kong’s railways operator.
Chan was appointed to the role in October 2022.
Aligning with China's goals on decarbonisation, the Hong Kong government has also vowed to achieve carbon neutrality before 2050, with an interim decarbonisation target to cut carbon emissions by 50% before 2035 compared to 2005 levels.
INVESTMENT MODES
Apart from direct investing in early-to-growth stage companies, MTR Lab also internally incubates startups that contribute towards a greener and smarter community. It also has directly-owned subsidiaries.
One such subsidiary, United Access Solutions (UAS) is working on the development of smart parking and electric car charging solutions, which is reflective of efforts to help promote the use of environmentally friendly transportation means.
“We are currently in the launch phase of Jove, a smart parking solution developed by our subsidiary UAS, which takes into account parking-related pain points and aims to take the parking experience to the next level with enhanced offerings including contactless entry and exit, car search, parking guidance, auto carpark payment, etc.,” said Chan.
As a wholly owned subsidiary of MTR Corporation, the investment arm’s aspirations are aligned with MTR Corp.
“We believe that achieving carbon neutrality is a collective goal that requires the support of the community and industries together ... we are always actively seeking like-minded partners who share our vision for a sustainable, technology-driven future,” said Chan.
Image credit: MTR Lab
PROMOTING SUSTAINABILITY
Chan also gave an example of MTR Lab’s portfolio companies, Carbon Wallet, which was founded by a group of young graduate trainees from MTR Corporation.
“Carbon Wallet now is part of MTR Lab’s strategic plan to create a carbon-neutral community and is a demonstration of MTR Lab’s corporate leadership in the sustainability arena,” he said.
Carbon Wallet, launched in March 2021, is a green lifestyle reward platform to record, verify and reward green actions, and also acts as a marketing platform to connect sustainable initiatives directly with consumers.
A plug-and-play green reward solution is integrated within the app to incentivise all kinds of green actions including travelling on low-carbon MTR, walking, recycling, having vegetarian meals, choosing plant-based milk beverages and supporting green shopping (naked purchases, buying refill-packaged products and purchasing eco-friendly products or products made of sustainable or recycled materials).
As of July 2023, the platform has helped reduce a total of over 873,000 kilograms of carbon emissions, as of July 2023, according to Chan.
That’s equivalent to the amount of carbon dioxide absorbed by 38,000 trees in a year, or the carbon emissions from 3,200 one-way flights from Hong Kong to Tokyo.
The platform’s users have also submitted over 1.5 million recycling records, said Chan, adding that Carbon Wallet plans to scale up its efforts to attract more partnership opportunities.