NIE 2024 | Carbon Footprint: Corporate ESG and Carbon Management Innovation and Practice

Here are the key points of Yan Luhui's speech:

Climate change, as a systematic risk faced by humanity, has gradually become a severe issue in human social development. Yan Luhui stated that referring to the Paris Agreement's target of average climate warming and existing global temperature rise data, this issue has become extremely urgent.

In addition, there has been a basic consensus globally on reducing carbon emissions and achieving carbon neutrality, and a political and legal foundation has been established. It specifically mentioned a series of regulations and policies closely related to the enterprise side, such as mandatory disclosure requirements for enterprise carbon data and feasibility development performance, CSRD reporting instructions, new regulations of the US Securities and Exchange Commission (SEC), policy requirements of the three major domestic exchanges, etc. It also mentioned the positive responses of representative enterprises to policies and concepts.

Combining more than a decade of industry practice, Carbon Trace has innovatively proposed a methodology CREOS to help enterprises scientifically and efficiently set carbon neutrality goals and carbon reduction path plans. It includes calculating, reducing, engaging, offsetting, and spreading.

Mr. Yan Luhui stated that calculating carbon emission data based on corresponding accounting standards is an important underlying information for carbon information management and planning. In terms of reducing and engaging, taking Apple as an example, he explained in detail the emission reduction risks and difficulties faced by companies of different scales. In addition, he also introduced Apple's rigid requirements and positive impacts on upstream and downstream industries in terms of carbon emissions, demonstrating a complete driving role.

Offsetting is a commonly used carbon neutrality method by enterprises. By purchasing/investing in a series of high-quality carbon emission reduction/removal projects, carbon compensation for the last mile is achieved in a way of giving back to society for carbon management and ultimately achieving carbon neutrality/negative emissions.

Spreading means disclosing externally through methods that meet international and domestic general standards, enhancing transparency to stakeholders and improving the brand competitiveness of enterprises.

Mr. Yan Luhui stated that currently, Carbon Trace Company, relying on its professional background and practical experience, has formed carbon management cooperation with multiple enterprises and successfully provided high-quality carbon management services. For example, in 2022, Carbon Trace assisted Duermao in creating its first ESG report. The professional support provided includes ESG strategic goals, construction of ESG indicator systems, report compilation, knowledge training, ESG communication, investor communication and support, carbon inventory, carbon neutrality goal planning, carbon management training, etc. With its high-quality output results, Carbon Trace has become a long-term partner of Duermao. In addition, since 2018, Carbon Trace has started in-depth cooperation with Baidu. Through services such as enterprise carbon inventory and carbon neutrality goals, it has successfully helped Baidu become the first Internet company in China to propose a carbon neutrality goal, and also promoted the subsequent competition among companies in the Internet industry for carbon management work.

In addition, Carbon Trace has also provided personalized customization services for enterprises such as Fuyou Truck and Lenovo, highly helping enterprises achieve carbon management and planning to meet the expectations and requirements of investors and regulatory enterprises.

Carbon Trace was established in 2011. After 13 years of forging ahead, it has developed into a global leading provider of carbon emission management software and consulting solutions. It has provided professional carbon management services for more than 1,300 industry pioneers, achieving carbon emission reduction of over 100 million tons. Currently, it has eight core businesses: carbon management consulting, carbon management software, Carbon Management SaaS Carbon Cloud, carbon asset development, green meetings, carbon accounts, low-carbon heroes, and Carbon AI.

Mr. Yan Luhui stated that as of now, Carbon Trace has made great breakthroughs and received a wide response at the product level. Carbon Trace has jointly created a low-carbon mall with more than 30 pioneering environmental protection brands, expanding its business to more industries. In the IT industry, it has successfully created the only carbon management software in China and formed an AI product named Carbon AI, focusing on the AI field. It has gathered rich carbon knowledge and industry trends, covering more than ten years of relevant data. Carbon Trace has also built a carbon emission factor database. While cooperating with various external institutions and borrowing data, it can support enterprises in calculating carbon emissions.