Hong Kong SMEs generate new business by making use of their carbon-tracking technologies Small and medium-sized enterprises (SMEs) say they have been generating new business by leveraging their carbon-tracking technologies, despite some financial uncertainties facing the broader sector. For Hong Kong start-ups like Urban Spring, which supplies smart water refilling stations, and EzyGreenPak, which makes sustainable packaging, using technologies that measure climate-related data throughout their production chains has created new business opportunities. Both firms operate carbon-tracking platforms. “[Carbon data] data transparency helps to attract business partners,” said Helen Chan, head of partnerships at Urban Spring, adding that the company’s smart water stations in the city have surged 50 per cent in number since 2023. At the end of last year, the company saw a major increase in inquiries, she said. “Our pipelines for 2025 show a lot of demand coming from hotels,” she said, as they were eager to receive green certifications. For its part, EzyGreenPak said it was experiencing greater demand for water-soluble packaging services. “[Clients] increasingly require data transparency and low-impact materials from suppliers,” said Wendy Lam, the company’s founder, adding that some clients were looking for environmentally friendly materials or products to expand their businesses. “They are under pressure to stand out in the market,” she added. EzyGreenPak’s eco-packaging products incorporate carbon emission data into their design to allow for tracking and the company automates environmental, social and governance (ESG) reporting, helping clients to reduce emissions in their supply chains while identifying cost-saving opportunities. The company said it would expand its services to include a carbon tracking platform for other factories beyond its ongoing involvement in a garment factory. Lam views sustainability as a “long-term value creator rather than a cost centre”. Since January 1, the Hong Kong stock exchange has required listed firms to disclose indirect emissions that occur in the supply chain, specifically those attributable to suppliers and customers. The rigorous ESG standards have prompted more companies to work with suppliers that are equipped with climate-related data tracking systems. “[Clients] increasingl“With rising interest in ESG-related products and services from both local and multinational corporations, and a public that is becoming more aware of eco-friendly and sustainable development, Hong Kong SMEs have a significant opportunity to enhance their brand reputation and attract a broader customer base while contributing to a greener economy,” said Cyrus Cheung, deputy president and chair of the ESG committee at CPA Australia, an accounting body. Hong Kong SMEs that make a point to offer environmentally friendly and cost-effective sustainable products and services generally remain competitive, Cheung added. Clients were willing to pay more than the average market price for the recycled materials as “corporations have to fulfil their ESG compliance”, according to Eric Swinton, CEO of Hong Kong-based V Cycle, a seven-year-old company that provides recycling services. Most of its proceeds are used to alleviate local poverty. The company provides traceability and transparency in the waste management system. “What we collect from clients can actually be traced from collection to sorting to recycling, tracking the weight of the raw materials and manufacturing,” he said. Urban Spring, V Cycle and EzyGreenPak joined the Supplier Climate Alliance launched by Hong Kong property developer Sino Group on May 28. The programme supports the professional verification of carbon data. Local private businesses were struggling with debt repayments and anticipated slower growth in 2025, according to CPA Australia’s 16th annual Asia-Pacific Small Business Survey, released in April. The survey found that just over half of all Hong Kong SMEs held a “neutral economic outlook” for the city. In the first quarter of the year, Hong Kong’s economy grew 3.1 per cent from a year earlier, according to government data, a stronger-than-expected showing. https://www.scmp.com/business/companies/article/3312963/hong-kong-smes-generate-new-business-making-use-their-carbon-tracking-technologies?module=top_story&pgtype=subsection (ICE HONG KONG)

Fonte notizia: South China Morning Post