Towngas CFO calls for climate resilience in infrastructure investment
Edmund Yeung, executive director and CFO of Towngas, argues that climate resilience must be embedded in infrastructure planning and investment. He says the Hong Kong government's Northern Metropolis and China's 15th Five-Year Plan align with this approach, and that Towngas uses AI and scenario analy
Climate risks are becoming an everyday reality for cities and businesses, from record-breaking rainfall to increasingly volatile weather patterns, according to Edmund Yeung, executive director and chief financial officer of Towngas. Writing in The Standard, he argues that as Hong Kong advances the Northern Metropolis and develops smart, sustainable communities, a key question is emerging: how can infrastructure built today remain resilient in the face of tomorrow's uncertainties?
Resilience is increasingly a key consideration in evaluating long-term investments, Yeung writes. The Hong Kong government has set a clear direction through the Northern Metropolis, where Smart, Green and Resilient principles are being embedded in new development areas. This aligns closely with China's 15th Five-Year Plan, which is expected to continue emphasising digital transformation, climate adaptation and the development of new quality productive forces.
For a public utility, climate risk is ultimately a balance-sheet issue, Yeung argues. Infrastructure assets are designed to serve the public for decades, so investment decisions made today must account for future operating conditions. At Towngas, the company has incorporated climate-related risks and opportunities into its enterprise risk management framework and conducts quantitative scenario analyses to assess potential financial impacts through 2050. These assessments inform long-term planning and capital allocation, helping direct resilience investments where they can deliver the greatest value while supporting sustainable business growth.
Resilience is built into both the planning and operation of Towngas's infrastructure, Yeung writes. The company continues to strengthen key assets and operations through ongoing maintenance, risk assessments and extreme-weather preparedness programmes. By identifying location-specific climate risks early and preparing for adverse weather events in advance, the company says it can better safeguard operational continuity and service reliability.
Technology also plays an increasingly important role in strengthening resilience across Towngas's regional operations, according to Yeung. On the Chinese mainland, the company is leveraging artificial intelligence and intelligent automation to support energy infrastructure, energy storage operations and emerging energy applications, enhancing operational reliability. These efforts are underpinned by a growing digital foundation that combines advanced analytics, robust data governance and integrated operational insights to provide a more comprehensive view of assets and operations. This enables the company to identify potential risks earlier, take a more proactive approach to asset management and maintenance planning, and strengthen the safety and reliability of services. It also helps make more informed investment decisions focused on long-term value creation.
Climate resilience is no longer solely an environmental objective, Yeung concludes; it is also a discipline in capital allocation, risk management and long-term value creation. As the energy transition accelerates and new energy solutions continue to evolve, resilience must be embedded in every investment, asset and capability developed. By combining technology, innovation and disciplined stewardship, Yeung writes, Towngas is laying the foundations for greater operational reliability, sustainable growth and enduring value for stakeholders and the communities it serves.