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1、Business and Sustainability in China 2022/2023Tracking the Low-Carbon Transition of Enterprises in ChinaAcknowledgements:This publication was initiated by UNDP China,PwC China,and CCOIC as the third iteration in a report series.We are grateful for the leadership of our advisory board,led by NI Qing(
2、Partner of PwC China),SUN Xiao(Secretary General of CCOIC),and ZHANG Wei(Assistant Resident Representative of UNDP China)(in alphabetical order of surname).The delivery of the report benefited from valuable comments from subject matter experts across sectors including Callum DOUGLAS(PwC China)and RE
3、N Fei(CCOIC).This report is a collaborative effort of all members of the drafting team which includes Gurtish AHLUWALIA(UNDP),Violante di CANOSSA(UNDP),DING Ke(PwC China),FU Peiyue(UNDP),GONG Jing(PwC China),LI Anran(UNDP),LI Wanqi(UNDP),MAO Bincheng(UNDP),SHI Rong(UNDP),YAN Xiangzhi(PwC China),Paul
4、 YOUNG(UNDP)and ZHENG Fei(UNDP).We also want to recognize efforts made on leveraging platforms to engage enterprises for the survey led by LI Xinhe(CCOIC),ZHANG Qi(CCOIC),and ZHAO Yue(UNDP).A special word of gratitude goes to graphic designer HUANG He(UNDP)for designing the report layout.We would al
5、so like to thank Beate TRANKMANN,UNDP Resident Representative in China for her guidance and support during the preparation of this report.Contact Information:United Nations Development Programme in China:undp.org PricewaterhouseCoopers China:China Chamber of International Commerce:Disclaimer:The des
6、ignations and the presentation of the materials used in this publication,including their respective citations,tables and bibliography,do not imply the expression of any opinion whatsoever on the part of the United Nations concerning the legal status of any country,territory,city or area or of its au
7、thorities,or concerning the delimitation of its frontiers or boundaries.The views expressed in this publication are those of the author(s)and do not necessarily reflect the views or policies of the United Nations(UN)and the United Nations Development Programme(UNDP).The research team has made its be
8、st effort to ensure the accuracy of the data and information included in this publication and assumes no liability or responsibility for any consequences of their use.The mention of specific companies does not imply that they are endorsed or recommended by UNDP in preference to others of a similar n
9、ature that are not mentioned.July 2023Copyright UNDPAll rights reservedBusiness and Sustainability in China 2022/2023Tracking the Low-Carbon Transition of Enterprises in ChinaForeword Abbreviations Executive SummaryKey findingsRecommendations1.Introduction1.1 Chinas progress on SDGs implementation1.
10、2 About this report2.Overview of SDG Implementation2.1 Change in priority of the 17 SDGs2.2 Enterprises reinforcing partnerships to implement SDGs2.3 Increasing priority of SDG 7:affordable and clean energy2.4 Brand influence and strategic growth remain the main drivers behind SDG implementation2.5
11、Enterprises lack the institutional structures for SDG implementation3.Low-Carbon Transition Practices3.1 Corporate governance and strategy on the low-carbon transition3.1.1 Better governance structure is needed3.1.2 General lack of clear emissions reduction targets3.2 Diversified emissions reduction
12、 measures and market mechanisms3.2.1 Improving resource utilization and energy efficiency are the most common measures to reduce emissions3.2.2 Market-based means of promoting green power3.3 Risks and opportunities surrounding a low-carbon transition3.3.1 Growing awareness of climate risks among bus
13、inesses in China3.3.2 Low-carbon transition brings about more opportunities for enterprises in China3.4 Common challenges3.4.1 Lack of industry standards is a pressing issue3.4.2 Difficulty of large enterprises in promoting the implementation of a low-carbon transition along the value chain 3.4.3 Ca
14、rbon accounting,especially for Scope 3 emissions,remains a problem area3.4.4 SMEs experience greater challenges in implementing a low-carbon transitionTable of Contents0542828303232343535363740Business and Sustainability in China 2022/20234.Special Focus:Women and th
15、e Low-Carbon Transition 4.1 SDG 5 and SDG 13 intrinsically linked4.2 Awareness:Lack of understanding on the gender dimension of the low-carbon transition4.3 Action:Enterprises showing initiative in supporting women to participate in the low-carbon transition4.4 Call on the government and enterprises
16、 to build a green economy with a fairer future for all5.Recommendations5.1 Recommendations on low-carbon transition for enterprises5.1.1 Establish enterprise-wide governance structure5.1.2 Utilize digital tools to empower low-carbon transition5.1.3 Actively identify climate risks and opportunities5.
17、1.4 Step up low-carbon management of value chains5.1.5 Increase awareness of and action for womens equitable participation in low-carbon transition5.2 Recommendations on low-carbon transition for policymakers and regulators5.2.1 Strengthen the coordination of low-carbon market mechanisms5.2.2 Streng
18、then financial support for industries low-carbon transition5.2.3 Strengthen support structure for low-carbon transition of SMEs5.2.4 Improve ESG and carbon disclosure regulations to ensure credibility,transparency,and measurability5.2.5 Develop comprehensive approach to ensure gender equality in the
19、 workplace AppendixReferences 4545474950525252535557606363646767687073Tracking the Low-Carbon Transition of Enterprises in ChinaOver the past year,the world has faced a series of dire crises.The continued effects of the COVID-19 pandemic,food and energy shortages,and extreme weather events resulting
20、 from climate change,have all had devastating consequences.Economic growth,social stability,and the livelihoods of people around the world have been significantly impacted,setting back years of development progress The natural world is also being pushed to the brink,with rapid biodiversity loss and
21、higher levels of carbon emissions than ever before.We are on track to overshoot the 1.5 degrees Celsius Paris Agreement target by more than double which would leave much of our planet uninhabitable.All together,these crises have put our ability to achieve the Sustainable Development Goals(SDGs)globa
22、l goals to secure the future of both people and planet by 2030 in serious jeopardy.To reverse these disastrous trends and ensure a sustainable future for humanity and our planet,the actions of private sector enterprises are critical.This isnt just a moral responsibility.It also makes economic sense.
23、Achieving the SDGs would open USD$12 trillion of global business opportunities,and by prioritizing nature,businesses could unlock USD$10 trillion in opportunities globally and create 395 million jobs by 2030.Since 2020,our report series Business and Sustainability in China has looked at the contribu
24、tions of enterprises in China towards achieving the SDGs based on survey data across a range of sectors.This year,the third iteration focuses in particular on enterprises awareness of the low carbon transition and the actions they have taken towards this goal.It is encouraging to see that a majority
25、(55.5%)of surveyed businesses are now carrying out emissions reduction measures,which indicates a growing recognition of the opportunities that SDG-oriented actions can open up.Foreword01Business and Sustainability in China 2022/2023This years report also has a special focus on women participating i
26、n and benefitting from the low-carbon transition of enterprises.In particular,our survey examined the link between gender and climate action and looked at how aware enterprises in China are of the implications of gender equality on their carbon footprint.Indeed,the involvement of women is critical t
27、o ensure a low-carbon transition that is not just inclusive,but also as effective as possible.Research has shown that there is a direct correlation between female managers within an enterprise and a decrease in its carbon emissions.At UNDP,we remain committed to working with the private sector to ad
28、vance sustainable business.We hope that the findings and recommendations from this years report continue to shed light on the progress,trends,and challenges of enterprises in China in aligning with the SDGs and provide insights into how businesses can further accelerate and build upon their efforts
29、to reduce carbon footprints.We would like to thank our partners PwC and the China Chamber of International Commerce(CCOIC)for their invaluable support in developing this joint report as part of our continued cooperation in understanding opportunities to advance sustainable,SDG-oriented business prac
30、tices in China.We also want to express our appreciation to UN Global Compact whose platform was instrumental in engaging companies in this survey.With just seven years remaining to fulfill the promise of the SDGs,time is running out.In responding to and rebuilding from the current global crises,the
31、world is at a pivotal juncture.We have an opportunity to chart a new,more sustainable course forward,but this may very well be our last chance.To put the SDGs back on track will require transformative actions from all of society,and companies and enterprises will be critical to help lead the way.Bea
32、te TrankmannUNDP Resident Representative in China02Tracking the Low-Carbon Transition of Enterprises in ChinaForewordFirstly,I wish to extend my heartfelt congratulations on the publication of the Survey Report on Business and Sustainability in China 2022/2023.Green and low-carbon transformation is
33、the surest way to achieve a global economic recovery,a key factor for the high quality development of enterprises and an important condition for achieving sustainable development.Acting on the philosophy that lucid waters and lush mountains are invaluable assets,the Chinese business community,while
34、seeking development,is also contributing its wisdom and strength to the realization of the dual carbon goals and global sustainable development.Based on responses from over 200 enterprises in China,the report analyzes measures taken by enterprises towards the SDGs,climate governance and their strate
35、gic plans for a low carbon transition.It also explores opportunities and challenges faced by enterprises in a low carbon transition,with a special focus on womens participation in the transition and the dilemmas they are faced with.In addition,the report provides important recommendations to enterpr
36、ises on how to make strategic plans on sustainable development,which will help companies incorporate the SDGs into their own development strategy and decision-making,thus promoting a green transition of socio-economic development.The business community is a contributor to and beneficiary of sustaina
37、ble development,as well as a constructive force to promote green development.The China International Chamber of Commerce(CCOIC)takes serving enterprises as its mission,acting as an open window and a bridge connecting government and enterprises,China and the rest of the world,and smoothing supply and
38、 demand.The CCOIC is strengthening its service network for businesses and expanding its international circle of friends.In recent years,by establishing cooperation mechanisms,the CCOIC has actively guided the Chinese business community to engage in international exchanges and cooperation on sustaina
39、ble development to broaden cooperation channels and improve cooperation.We have established important cooperation platforms,such as the CCOIC Sustainable 03Business and Sustainability in China 2022/2023Development Committee and the Sustainable Markets Initiative China Council,to deepen and broaden t
40、he Chinese business communitys participation in global sustainable development.These mechanisms also provide better conditions for the business community to participate in and cooperate on low-carbon transformation and sustainable development.In the future,we are ready to work closely with UNDP and
41、PwC China to call on enterprises to work together on the goals of climate governance and low-carbon transformation,build more results-oriented exchange platforms,and contribute more to promoting sustainable development and building a community with a shared future for mankind.SUN XiaoSecretary Gener
42、alChina Chamber of International Commerce04Tracking the Low-Carbon Transition of Enterprises in ChinaIn recent years,problems such as climate change,environmental pollution,and resource scarcity continue to be increasingly prominent,bringing enormous negative impacts and unprecedented pressure to bu
43、siness development.It is becoming a clear responsibility for all business organizations to participate in compliance with implementing the United Nations Framework Convention on Climate Change and promoting the 2030 Agenda for Sustainable Development.It is also a starting point for enterprises to he
44、lp improve climate and environmental issues in line with their long-term interests.Indeed,enterprises are integrating green and sustainable development into business strategies as a breakthrough to solve the current crisis in enterprises and innovate the path for future growth.Enterprises in China a
45、re increasingly aware of the importance of environmental and climate issues,and are actively participating in various environmental action plans,taking initiatives to act on environmental and social issues.Encouraged by Chinas proposal for the dual carbon goal in 2020,enterprises have actively drawn
46、 blueprints for green development and accelerated the pace of the low-carbon transition.Henceforth,in the process of promoting green development,enterprises in China are starting to comprehensively explore the economic opportunities of low-carbon economy investment,creating a driving force for innov
47、ation.Additionally,they possess increasing awareness of the trend for non-financial disclosures,including environmental,social,and governance(ESG)information.With the vision to create sustained outcomes,PwC actively contributes to promoting and achieving the Sustainable Development Goals(SDGs).In Ju
48、ly 2021,as one of the executive directors of the Carbon Neutral Action Alliance,PwC China made a joint commitment with other leading domestic enterprises to promote the low-carbon economy transition in China.PwC is committed to implementing its science-based emissions reduction targets aligned to th
49、e 1.5C warming limit in the Paris Agreement.This includes a 50%absolute reduction in Scope 1 and 2 emissions and a 50%reduction in Scope 3 business travel emissions by 2030 against the 2019 baseline.PwC aims to develop decarbonization action plans relevant to Foreword05Business and Sustainability in
50、 China 2022/2023specific industry markets,assisting clients in developing science-based targets for emissions reductions that are publicly available,and shifting to lower carbon and nature-positive business models.This year,PwC is honored to continue collaborating with UNDP China and the China Chamb
51、er of International Commerce in this third report in our series on Business and Sustainability in China.We analyzed the performance of more than 150 enterprises in China in implementing the SDGs,as well as their climate governance and strategic planning on the road to the low-carbon transition.Meanw
52、hile,an additional focus on SDG 5:gender equality was applied through researching and analyzing womens comprehension and participation in sustainable development and climate change.In concluding the report,recommendations are shared for low-carbon transition actions for enterprises in China.PwC is c
53、ommitted to continuing working with partners to support enterprises in China to implement the dual carbon goals,assisting in achieving sustainable development for society.Qing NiPwC China,ESG Markets Leader06Tracking the Low-Carbon Transition of Enterprises in ChinaCCOIC China Chamber of Internation
54、al Commerce CMA China Meteorological Administration CO2 Carbon Dioxide COVID-19 Corona Virus Disease 2019 CREEI Renewable Energy Engineering InstituteCSR Corporate Social ResponsibilityECB European Central BankEC&M Energy,Construction,and Mining ESG Environmental,Social,and GovernanceETS Emissions T
55、rading SchemeFIE Foreign-Invested Enterprise FiT Feed-in TariffFYP Five-Year Plan GEC Green Energy CertificateGHGs Greenhouse Gas ILO International Labor OrganizationIPCC Intergovernmental Panel on Climate Change I-REC International Renewable Energy CertificateNDCs Nationally Determined Contribution
56、sNDRC National Development Reform CommissionPOE Private-Owned Enterprise PPA Power Purchase AgreementPV Photovoltaic PwC PricewaterhouseCoopers R&D Research and DevelopmentREC Renewable Energy CertificateRPS Renewable Energy Portfolio StandardSBT Science-Based TargetSDG Sustainable Development Goals
57、 SME Small-Medium Enterprise SOE State-Owned Enterprise STAR Situation,Target,Action,and Result TCFD Task Force on Climate-related Financial DisclosureTIGR Tradable Instrument for Global RenewablesT&L Transportation and Logistics TMT Technology,Media,Telecom UN United Nations UNDP United Nations Dev
58、elopment Programme UNFCCC United Nations Framework Convention on Climate ChangeUNGC United Nations Global CompactVCM Voluntary Carbon MarketWEP Womens Empowerment PrinciplesAbbreviations07Business and Sustainability in China 2022/202308Tracking the Low-Carbon Transition of Enterprises in ChinaAmong
59、the Sustainable Development Goals(SDGs)prioritized by enterprises in China this year,SDG 9:industry,innovation and infrastructure is rated as having the greatest impact on enterprises business operations.This may indicate enterprises are shifting priorities towards infrastructure investment,sustaina
60、ble industrial development,and innovation-all key elements to boost economic growth.SDG 7:affordable and clean energy and the Partnership Goal,SDG 17,have both entered the top 5 for the first time.This could be explained by the release of more stringent climate policies and guidelines,the global ene
61、rgy crisis and supply chain disruption in the shadow of the COVID-19 pandemic.In terms of the industrial sector,SDG 9 is particularly relevant for the technology,media,and telecom(TMT)sector,with 23.8%of enterprises within the sector ranking it as the top priority.Respondents from high emissions sec
62、tors have demonstrated greater focus on SDG 17 compared to other sectors,possibly reflecting the importance of cooperation with companies along the supply chain to reduce Scope 3 emissions.A lack of internal management documents and regulatory support for implementing the SDGs have become fundamenta
63、l obstacles for enterprises pursuing the SDGs.Executive SummaryKey findings09This report is the third in the annual Business and Sustainability in China series produced by the United Nations Development Programme(UNDP),PwC,and the China Chamber of International Commerce(CCOIC).Since 2020,the series
64、has examined the private sectors awareness of and contributions to achieving the Sustainable Development Goals(SDGs).This latest iteration,based on responses to a combination of online questionnaires and in-depth interviews,provides insight and analysis on the carbon emissions reduction activities o
65、f enterprises operating in China across a range of different sectors.It also includes case studies,and recommendations on how companies can accelerate their low-carbon transitions,as well as a special focus section,looking specifically at the participation of women in this process.Business and Susta
66、inability in China 2022/2023Chinas promulgation of its 2030-2060 carbon peaking and neutrality goals has already made an impact on the majority of the enterprises surveyed.In particular,as many as 86.7%of respondents believe that the dual carbon goals have an impact on their operations and revenue,o
67、f which 44.5%believe the impact to be“significant”.Inspired by more stringent climate policies released by the Chinese government,the importance of a low-carbon transition has been recognized at the director,managerial and executive levels in most enterprises.However,a lack of clear corporate govern
68、ance structures appears to be limiting sustainable development to words rather than action,with 61.0%of surveyed enterprises stating they have included low-carbon transition in their board discussions,but only 30.3%setting carbon targets.At a practical level,55.5%of respondents reported carrying out
69、 emissions reduction measures.Among all the measures taken by enterprises,improving resource utilization and energy efficiency are the most common measures to reduce emissions,both of which are well aligned with Chinas Action Plan for Carbon Peaking before 2030.Market-based mechanisms for emissions
70、reduction,such as green electricity certificate trading and green power trading,are less frequently adopted by enterprises.It falls to policymakers to make the existing market-based low-carbon mechanisms more effective and compelling.Enterprises in China are gradually identifying risks and opportuni
71、ties relating to a low-carbon transition,according to the TCFD framework,with the survey showing 55.5%of enterprises having already carried out exercises to identify and assess climate-related risks.Market and technological risks were selected as the top concerns by most surveyed enterprises,followe
72、d by emissions restriction policies and regulations.Of the enterprises surveyed,64.2%have carried out opportunity identification exercises regarding the low-carbon transition and carbon neutrality.The top three opportunities identified are:(1)improving resource efficiency to reduce costs and increas
73、e business efficiency(82.1%);(2)offering low-carbon products and/or services to adapt to shifting consumer preferences and enhance competitiveness and revenue(77.9%);and(3)clean energy replacement to reduce dependence on fossil fuels and increase diversification and cleanliness of corporate energy u
74、se(66.4%).Common challenges and difficulties enterprises in China face in the low-carbon transformation include a lack of industry standards and guidelines,difficulties in promoting transitions along the industry value chain,insufficient carbon accounting capacity(especially for Scope 3 emissions),l
75、imited policy support and the perceived high costs associated with 10Tracking the Low-Carbon Transition of Enterprises in ChinaRecommendations For enterprises,the first step to an effective low-carbon transition should be establishing a low-carbon governance structure consisting of the board of dire
76、ctors and relevant personnel at the managerial and executive levels.The report also advocates for enterprises to develop digital technologies to empower efficient low-carbon transitions.Additionally,enterprises should actively identify climate risks and opportunities,and prioritize a low-carbon tran
77、sition within management processes.It is also recommended that companies step up the end-to-end low-carbon management of their value chains by improving suppliers capacities,carrying out value chain management at all stages of the product life cycle,formulating green and low-carbon standards and inv
78、esting in relevant data collection and databases.All of this would help to strengthen the ability of enterprises to measure and manage carbon emissions data across the entire supply chain.Finally,to ensure gender equality in their low carbon transition efforts,enterprises need to integrate gender em
79、powerment principles into their transition strategies.For guidance,they can refer to the Womens Empowerment Principles and on which a list of relevant resources can be found in this report.For policy makers and regulators,the report recommends strengthening the coordination of existing market-based
80、low-carbon mechanisms,strengthening financial support for the low-carbon transformation of industries and strengthening the support structure for SMEs to aid their transitioning efforts.Attention must also be paid to improving ESG and carbon disclosure regulations and requirements,while strengthenin
81、g policies to ensure gender equality at the workplace,in order to reach a just transition as envisioned by the Paris Climate Agreement.11the low-carbon transition.It is worth emphasizing that SMEs experience greater challenges in implementing a low-carbon transition at all levels of corporate govern
82、ance.For this reports special thematic focus on the role of women in the low-carbon transition,the survey finds that the link between gender equality and climate action has been neglected by the majority of surveyed enterprises.SDG 5:gender equality ranks sixth from the bottom in the ranking of SDGs
83、 that enterprises prioritize,and enterprises have little awareness on the gender perspectives impacting the low-carbon transition.At the executive level,the survey also shows a lack of initiatives for enterprises to encourage female employees to participate in the low-carbon transition.Business and
84、Sustainability in China 2022/20231.Introduction1.1 Chinas progress on SDGs implementationThe SDGs were adopted by the United Nations in 2015,under the 2030 Agenda for Sustainable Development,as a universal call to action to end poverty,protect the planet,and ensure that all people enjoy peace and pr
85、osperity.However,with just seven years left to meet the goals,many difficulties and challenges remain.In 2022,the global community faced the impact of multiple intersecting crises:the effects of climate change led to unprecedented heatwaves and severe droughts in Europe and North America,while parts
86、 of Asia were hit by devastating floods;the negative impacts of the COVID-19 pandemic on the economy and society persist and energy prices have soared,adding uncertainty to the post-pandemic green recovery.As the second biggest economy and largest developing country in the world,China has made stead
87、y progress in implementing the SDGs.The countrys efforts in poverty reduction,energy conservation and emissions reduction have also contributed to progress on global SDGs attainment.As the largest deployer of solar and wind energy in the world,China is building a low-carbon energy system,guided by i
88、ts 2030-2060 carbon peaking and carbon neutrality goals.Following the announcement of these climate targets,China issued around 60 policy documents at both the national and local level,providing detailed guidance on the low carbon transition of key industrial sectors and areas,gradually forming the
89、1+N policy framework.1 As of July 15,2022,the national carbon market has been online for one year,with a total transaction value of 194 million tons of carbon allowances and a cumulative transaction value of CNY 8.492 billion(USD$1.25 billion).2 In addition,China is currently pursuing the concept of
90、 ecological civilization3and advancing biodiversity conservation,including at its core,establishing a protected areas system that currently features five National Parks enjoying the highest protection status.With the ongoing efforts of international organizations and the Chinese government,more and
91、more enterprises in China have realized that sustainable development is a necessary prerequisite for a better future-for their business and the planet.As critical market players influencing economic growth,job creation and the production of goods and services,enterprises can play a significant role
92、in promoting sustainable development both in China 12Tracking the Low-Carbon Transition of Enterprises in China1.2 About this reportBusiness and Sustainability in China 2022-2023,the third survey report in this series,shares the same research objectives as the previous two reports.The first report4
93、released in 2020 provided a baseline assessment of the SDG awareness and practices of business in China.The second edition of the report5,released in 2021,continued to track their progress in pursuing the SDGs,with an additional special section looking at how enterprises in China are responding to t
94、he countrys dual carbon goals.Building upon this previous analysis,the 2022-2023 report includes an in-depth discussion on the low-carbon transition of enterprises in China,examining their awareness and readiness while identifying opportunities and risks during the process.In addition,the 2022-2023
95、report also includes two new segments:A discussion on Women and the Low-Carbon Transition.This combines SDG 5:gender equality and SDG 13:climate action to understand enterprises awareness of the interlinkages between these two issues,and to suggest ways to integrate gender equality into low-carbon t
96、ransition practices.A special focus on how small-medium enterprises(SMEs6)and large enterprises differ in their low-carbon transition approaches and their unique challenges.The report,written in 2022 and 2023,includes surveys and public statistics from 2022 and current progress on some case studies
97、in 2023.To ensure consistency and comparability across the series,the 2022-2023 report follows the methodology of the previous two editions,using a combination of online surveys and in-depth follow-up interviews to collect data.The survey consists of 41 questions covering three areas,namely(1)enterp
98、rises SDG awareness and practices(2)enterprises low-carbon transition efforts,and(3)the role of and around the world.The 17 SDGs serve as useful frameworks to guide enterprises in China in exploring sustainable practices and identifying opportunities for innovative development.13Business and Sustain
99、ability in China 2022/2023women in enterprises low-carbon transitions.The survey was distributed online by UNDP,UN Global Compact(UNGC),Pricewaterhouse Coopers(PwC),and China Chamber of International Commerce(CCOIC)through their respective networks from June to August 2022.Survey participants were s
100、elected independent of selections in the 2020 and 2021 report.As of August 12,2022,218 enterprises were surveyed.Regarding industry types,the primary industry accounted for 4.3%of the surveyed enterprises,the secondary industry 28%,and the tertiary industry 67.7%;as for entity type,private-owned ent
101、erprises(POEs)accounted for 71.9%,foreign-invested enterprises(FIEs)11.0%,and state-owned enterprises(SOEs)8.8%.In terms of the enterprise size,large enterprises account for 34.1%and SMEs for 65.9%.To showcase leading practices in SDG engagement,low-carbon transition and gender equality,enterprises
102、were selected for in-depth interviews based on the 3A criteria:namely companies that had demonstrated Awareness,Action and Ambition towards the SDGs and a low-carbon transition in their online survey responses.In total,14 enterprises were selected for in-depth interviews,among which 8 examples of be
103、st practices were chosen as case studies based on ratings against four dimensions:Situation,Target,Awareness and Result(STAR).A detailed description of methodology and potential limitations can be found in the Appendix.1.https:/ a read-out of the 1+N policy system,please see the UNDP issue brief:htt
104、ps:/www.undp.org/china/publications/issue-brief-chinas-climate-policy-documents-1n-and-updated-ndc2.“生态环境部:全国碳市场启动一年来总体运行平稳累计成交额 84.92 亿元”,Peoples Daily Online,accessed Sep03,2022,http:/ civilization is a concept promoted by President Xi Jinping for balanced and sustainable development that works to
105、wards the harmonious coexistence of man and nature by addressing production and consumption methods with large-scale output and emissions and keeping human activities within the limits of the ecosystem and environment.4.Private Sector Awareness of the Sustainable Development Goals,PwC,Jul 2020,https
106、:/ to Net Zero:SDG Practices of Enterprises in China,PwC,Dec 2021,https:/ June 18,2011,the Ministry of Industry and Information Technology,the National Bureau of Statistics,the National Development and Reform Commission and the Ministry of Finance jointly issued the Notice on the Issuance of the Sta
107、ndard Provisions for the Classification of Small and Medium-sized Enterprises”.Specific classification criteria can be referred to at http:/ the Low-Carbon Transition of Enterprises in China2.Overview of SDG ImplementationKey FindingsSDG 9:industry,innovation and infrastructure has replaced SDG 12 a
108、s the top SDG priority.SDG 7:affordable and clean energy and SDG 17:partnerships for the goals have entered the Top 5 for the first time.82.4%of the surveyed enterprises consider enhancing brand influence to be one of their most important objectives in undertaking SDG initiatives.About 50.9%indicate
109、d a lack of internal management documents and regulatory support for implementing SDGs.15The recommendations provided in this report stem from the key findings of a dedicated survey of enterprises,but also look beyond this to address tangible challenges and opportunities faced in a low carbon transi
110、tion.They serve well as a rulebook for enterprises to scope out their low carbon strategy and remind us of the gaps to be filled in policymaking.Wang ShuICF Senior Manager,Climate Specialist“”Business and Sustainability in China 2022/202323.8%14.3%14.3%7.7%5.6%0.0%TMTIndustrialProductsFinancial Serv
111、iceEC&MRetail&ConsumersT&L2.1 Change in priority of the 17 SDGsFigure 1:Prioritization of SDGs by enterprises in China7Figure 2:Prioritization of SDG 9 by sectorEnterprises in different industries prioritize different SDGs.SDG 9 is particularly relevant for the technology,media,and telecom(TMT)secto
112、r,with 23.8%of enterprises within the sector ranking it as the top priority(as shown in Figure 2).This is expected,as the main theme of SDG 9-innovation and infrastructure-is closely linked with the TMT sector.Over the past three years,there have been significant changes in the SDGs that enterprises
113、 are prioritizing.SDG 9:industry,innovation and infrastructure and SDG 11:sustainable cities and communities have continued to rise in ranking for two years in a row and have now become the most prioritized SDGs.This may indicate enterprises are shifting their priorities towards infrastructure inves
114、tment,sustainable industrial development,and innovation-all key elements to boost economic growth.Furthermore,it may also reflect the domestic context during the summer of 2022,with companies adjusting to a resurgence of domestic and international economic risks,as well as an economic slowdown.While
115、 economic-focused SDGs(Goal 9 and 11)still dominate,SDG 3:good health and wellbeing has regained attention,possibly due to the resurgence of COVID-19 and the impact of prevention and control measures.16Tracking the Low-Carbon Transition of Enterprises in China2.2 Enterprises reinforcing partnerships
116、 to implement SDGs2.3 Increasing priority of SDG 7:affordable and clean energySDG 17:partnerships for the goals has risen by four positions and entered the top 3 for the first time.This suggests that enterprises are placing more emphasis on partnerships this year,in light of destabilizing factors su
117、ch as the COVID-19 pandemic,as well as the impact of climate change and nature-negative investment.Respondents from high emission sectors(EC&M,TMT)have demonstrated greater focus on SDG 17 compared to other sectors.This may be partially explained by the fact that a low-carbon transition requires eff
118、orts not only by individual companies,but also by their whole supply chain.Interviews with survey respondents show that these enterprises have emphasized the importance of cooperating with companies along the supply chain to reduce their scope three emissions.Many have also expressed a willingness t
119、o cultivate awareness of sustainability among upstream and downstream stakeholders and to provide them with the necessary technical assistance.SDG 7:affordable and clean energy has for the first time become one of the top 5 SDGs that Figure 3:SDG priorities across six sectorsPlease rank five SDGs th
120、at have the greatest impact on your business(including your value chain)Q.Retail&ConsumersIndustrial ProductsT<MTFinancial ServiceEC&M17Business and Sustainability in China 2022/20232.4 Brand influence and strategic growth remain the main drivers behind SDG implementationenterprises are most conce
121、rned about,reflecting a growing demand for clean and affordable energy under the compounding influence of the carbon targets and the energy crisis.More stringent climate policy and targets have led to the increased priority of SDG 7.In October 2021,the State Council released The Action Plan for Carb
122、on Peaking before 2030,providing a concrete roadmap for achieving Chinas 2030 climate goals.Many sectoral plans with more detailed guidelines and targets have followed.These plans have specified several new concrete targets on energy and key industrial sectors,including iron and steel,chemicals,buil
123、ding materials,as well as transport,affecting the future development of all these sectors.As a result,enterprises are paying more attention to practical emissions reduction measures such as adopting clean energy.At the same time,global crises have further exacerbated worldwide energy shortages.The i
124、mpact on global prices of natural gas,coal,oil and other energy sources,provides another incentive for enterprises in China to turn to non-fossil energy sources,such as wind and solar power,to improve energy security and lower energy costs.What is the key driver for your company to promote the SDGs?
125、Figure 4:Main drivers of SDG integration among enterprisesQ.12.0%17.6%27.5%44.4%60.6%65.5%78.9%82.4%OtherPeer PressureSDGs practices are valued by our purchasersSDGs practices are valued by our investorsSDGs practices are valued by our clientsRisk ManagementGrowth StrategyEnhance brand influence18Tr
126、acking the Low-Carbon Transition of Enterprises in ChinaAccording to the survey data,the top three objectives for enterprises to engage with the SDGs are:enhancing brand influence,assisting strategic business growth and using the SDGs to identify risks and opportunities.This is aligned with the 2020
127、 and 2021 survey results,where enhancing brand influence and growth strategy were also listed as top priorities.The proportion of enterprises that have chosen these two categories as their main drivers has increased by 6.4 percentage points and 13.9 percentage points respectively since 2020.Meanwhil
128、e,the focus on using SDGs to identify risks and opportunities has grown considerably.Compared to the 2020 survey,using SDGs for risk management climbed one place to rank third,seeing an increase of 22.5 percentage points.This is most likely due to the fast-changing and uncertain global context.Since
129、 the first survey was conducted in 2019 and published in 2020,global shocks such as climate disasters and the COVID-19 pandemic have continued to occur.8 In the face of the evolving global risk landscape,enterprises see value in using the SDGs to further identify risks and opportunities.Regarding th
130、e challenges faced when implementing the SDGs,around half of the respondents acknowledged the following challenges:lack of clear internal management 2.5 Enterprises lack the institutional structures for SDG implementationFigure 5:Challenges in implementing SDGs,by business size53.7%53.7%48.3%44.9%39
131、.1%46.4%Lack of corporate policy and internal documents that promoteand measure SDGs targetsLack of professional teams and specific roles dedicated to SDGsLack of clear management committee to guide relevant workfrom top downLarge enterprisesSMEsWhat are the key challenges your enterprise has faced
132、when implementing the SDGs?Q.19Business and Sustainability in China 2022/2023documents/policies(50.9%),lack of professional teams and specific roles(49.1%),and lack of clear management committees(47.7%).In terms of enterprise size,large enterprises fare better than SMEs in all three corporate functi
133、ons(see Figure 5),with the difference in professional teams and specific roles being the largest(14.6%).This suggests that large enterprises have better corporate management structures for SDGs implementation,especially in terms of execution.The lack of a mature SDG management system is universal am
134、ong enterprises.An effective and practical management system can help enterprises promote SDGs more coherently and consistently.Therefore,the introduction of internal SDGs management regulations,the establishment of functional departments to promote work related to the SDGs,and the establishment of
135、SDGs management committees will help enterprises to clarify the direction of sustainable development and implement relevant measures.Additionally,enterprises have also identified other difficulties and challenges,including:a lack of sufficient funds and budgets to commit to SDG practices;the need fo
136、r clear policy guidelines;inadequate awareness of SDGs among investors and consumers,and the lack of a favorable market atmosphere for enterprises to practice SDGs.7.Question:Please rank the five SDGs that you believe are currently having the greatest impact on your business,including the supply cha
137、in8.International SOS,Risk Outlook 2022,https:/2022.risk- the Low-Carbon Transition of Enterprises in China3.Low-Carbon Transition Practices21In the summer of 2022,historic heat waves swept the Northern Hemisphere.In China,unprecedented high temperatures and extreme droughts triggered a series of ch
138、ain reactions,such as water bodies like the Yangtze River Basin and Poyang Lake drying up and frequent mountain fires in Chongqing.A decline in hydropower production capacity in Sichuan led Key FindingsBusiness and Sustainability in China 2022/2023to a shortage in energy,affecting both enterprises p
139、roduction costs and residents lives.These climate-related disasters have highlighted the urgency for China to mitigate and adapt to the impacts of climate change.Since the announcement of the 2030-2060 carbon peaking and neutrality goals,the Chinese government has increased its focus and the resourc
140、es available for its green transition.As essential stakeholders,enterprises play a significant role in driving Chinas low-carbon transition.Most enterprises recognize the impact of carbon targets on their businesses.As many as 86.7%of the respondents believe that the dual carbon goals impact their o
141、perations and revenue,of which 44.5%believe the impact to be“significant”.This section further unpacks how enterprises are responding to Chinas climate targets.How much impact do you think carbon peaking and carbon neutrality goals have on your enterprises operations/revenues?Figure 6:Impact of dual
142、 carbon goals on businessQ.22Tracking the Low-Carbon Transition of Enterprises in China3.1.1 Better governance structure is needed3.1 Corporate governance and strategy on the low-carbon transition The majority of enterprises have included the need for a low-carbon transition in their board discussio
143、ns,suggesting the high importance of this topic.Among them,61.0%have already included the topic in board discussions,while 27.1%are planning to do so in the next two years.This demonstrates relatively high awareness among corporate executives on the necessity of transition towards a low-carbon futur
144、e.23This report shows us where Chinese companies are on their journey to carbon neutrality.To accelerate the low-carbon transition,extensive collaboration among multiple stakeholders is urgently required to resolve the challenges and obstacles identified by the research.Li FeiCarbon Disclosure Proje
145、ct Associate China DirectorThe report provides useful and interesting insights into the corporate low-carbon transition.The report finds that large companies and SMEs face different transition challenge maps,and that the differences between the two are highly complementary.This is particularly the c
146、ase with issues such as carbon accounting,technology innovation and joint value chain carbon reduction,which can be very helpful in guiding upstream and downstream companies to collaborate with each other to achieve a low-carbon transition.Cao YuanSynTao Sustainable Solutions Project Head Consultant
147、“”Business and Sustainability in China 2022/20233.1.2 General lack of clear emissions reduction targetsThough the importance of a low-carbon transition is well recognized at the director level,fewer enterprises have clearly defined the division of authority and responsibilities at the managerial and
148、 executive levels.At the managerial level,only 32.6%have clarified the authority and responsibilities for low-carbon transition work;at the executive level,only 35.3%have established a low-carbon/dual carbon/net-zero/sustainable development/ESG working group.Without the relevant governance structure
149、s,the promotion and implementation of specific emissions reduction measures could be constrained and may even become an obstacle to implementing a low-carbon transition.Does your enterprise include a low-carbon transition in board discussions?Has your enterprise clarified the division of responsibil
150、ities for the management of the low-carbon transformation work?Has your enterprise established a low-carbon/dual carbon/net zero/sustainable development/ESG working group?Figure 7:Director and executive-level involvement in low-carbon transitionMore than half(59.2%)of the surveyed enterprises indica
151、ted they have formulated low-carbon transition plans in line with the dual carbon goals,and nearly half(43.6%)have developed more detailed roadmaps for their low-carbon transition.While many have developed low-carbon transition strategies,only 30.3%of enterprises have set carbon emissions targets,wi
152、th over half(53.2%)expected to do so in the next two years.61.0%27.1%11.9%32.6%54.6%35.3%50.5%14.2%YesNo.Expectedto do so in thenext 2 yearsNo.Notexpected todo so in thenext 2 yearsYesNo.Expectedto do so in thenext 2 yearsNo.Notexpected todo so in thenext 2 yearsYesNo.Expectedto do so in thenext 2 y
153、earsNo.Notexpected todo so in thenext 2 years24Tracking the Low-Carbon Transition of Enterprises in ChinaThe result is similar to the 2021 survey,where only 33.3%of surveyed enterprises had set emissions targets.The consistently low rate in setting emissions reduction targets suggests that it remain
154、s a key challenge for enterprises in China.Several factors are behind this.At the technical level,to clarify their emissions,enterprises need to acquire expertise in determining the organizational boundaries for carbon accounting,emissions factors,and the scope of greenhouse gas emissions.Externally
155、,an uncertain economic outlook also affects enterprises operations and production,making it challenging to accurately predict their emissions reduction paths.In addition,the interviewed enterprises revealed another issue when setting targets:Chinas carbon market is not mature and active enough yet.T
156、his makes it difficult for enterprises to determine whether they can buy enough carbon credits on time and on demand,hence restricting their ability to leverage carbon markets to support emissions reduction targets.Has your company set a carbon emissions target?Figure 8:Carbon emissions target setti
157、ngQ.25Business and Sustainability in China 2022/2023Lenovo:Achieving Net-Zero by 2050Case Study1.About LenovoLenovo is a Chinese technology company operating in 180 markets which integrates ESG into its strategy,planning,implementation and reporting activities.Lenovo regards ESG as one of the three
158、main pillars of its development strategy and is one of the first companies in China to join the Scientific Carbon Target Initiative(SBTi).Lenovo has taken steps to implement a green and low-carbon transition within its organization,while also supporting the upstream and downstream of its industrial
159、chain to jointly realize a low-carbon and digital transition.With its 3S strategy covering Smart Internet of Things,Smart Infrastructure and Smart Verticals&Services,Lenovo focuses on delivering services and developing technologies that create a more inclusive,trustworthy and sustainable digital soc
160、iety.2.HighlightsSetting data-driven targets with the aim of reaching net-zero by 2050Adopting a top-down approach to setting out roadmaps based on quantified emissions:Lenovo has taken a variety of actions ranging from setting up top-level objectives,to formulating strategies for net-zero emissions
161、,as well as initiating closed-loop carbon reduction practices throughout the product life cycle.Under the Science-Based Carbon Targets Initiative(SBTi)guidance,Lenovo has pledged to reduce 50%of the direct and indirect carbon emissions from its operational activities by 2030 and reduce the carbon in
162、tensity of certain value chains by 25%,aiming to achieve net-zero by the end of 2050.Building green supply chains and digital intelligence platforms:the company has established a framework for green supply chain management.Through its self-developed Green Supply Chain Data Management Platform(GSCDM)
163、based on management methods like Life Cycle Assessment(LCA)and Full Material Information Disclosure(FMD),the platform can intelligently identify environmental risks and optimize the ecological attributes of products that drive Lenovos supply chain.This helps to improve the green data management of b
164、oth upstream and downstream enterprises in the supply chain and promote the sustainable development of the entire value chain.26Tracking the Low-Carbon Transition of Enterprises in ChinaLeveraging technology and green manufacturing solutions to pursue low-carbon goals:to reduce its plastic and carbo
165、n emissions,Lenovo has been developing its own technology solutions like warm water cooling to support Chinas interprovincial infrastructure.For example,the new low-temperature solder pasting process has lowered the companys carbon dioxide emissions by 10,000 metric tons since 2017,while the innovat
166、ive 97%post-consumer recycled plastic(PCC)battery enables Lenovos zero plastic application on laptops.Lenovo has also rolled out various other zero-carbon products and participated in carbon market transactions,e.g.,creating zero-carbon products by writing off the corresponding quota via the China C
167、ertified Emission Reduction(CCER)scheme.It has also established an internal carbon inclusive platform for employees,Lenovo Le Carbon Circle,setting up carbon accounts for employees to begin carbon accounting,management and trading,both in the office and in their daily lives.The company also set up a
168、nd put into operation the first zero-carbon factory in the information and communications technology industry.3.Lessons LearnedIntegrate sustainable and green concepts into product design,craftsmanship,recycling,and other processes.Use digital solutions to conduct carbon accounting during the operat
169、ions process,to properly document the enterprises carbon reduction goals.Quantify sustainability performance indicators and link them to performance appraisal systems.Establish green supply chains,encouraging suppliers to achieve multi-dimensional environmental management goals and drive the low-car
170、bon transition of upstream and downstream partners.27Business and Sustainability in China 2022/20233.2.1 Improving resource utilization and energy efficiency are the most common measures to reduce emissions3.2 Diversified emissions reduction measures and market mechanisms55.5%of respondents reported
171、 carrying out emissions reduction measures.The top three low-carbon measures adopted by surveyed enterprises are:(1)reducing waste and promoting material recycling(74.4%);(2)improving energy efficiency(58.7%)and(3)using clean energy(56.2%).These top three measures align with Chinas Action Plan for C
172、arbon Peaking before 2030,where the promotion of renewable energy and the circular economy,as well as the improvement of energy efficiency,are emphasized as priority areas for achieving Chinas climate targets.Following this trend,several economically viable emissions reduction technologies have emer
173、ged in the market.For example,there has been an improvement in energy cascade utilization equipment,technologies and materials that improve photoelectric conversion efficiency in the photovoltaic industry,as well as in hydrogen production,storage and distribution,etc.What are the specific emission r
174、eduction measures of your enterprise?Figure 9:Emissions reduction measuresQ.4.1%8.3%9.9%9.9%18.2%19.0%23.1%24.0%30.6%35.5%42.1%52.9%53.7%56.2%56.2%58.7%74.4%OtherCCUSBuy green electricity directly from grid-connected power generation companiesBuy direct green electricity from non-grid connected powe
175、r generation companiesInvest in forestry carbon sequestrationBuy green electricity from power supply companies such as State GridBuy renewable energy certificatesReduce fugitive emissionsIndustrial waste heat recyclingInvest in renewable energy projectsTransportation carbon emission reduction measur
176、esImprove the energy efficiency of buildingsRecycling of water resourcesCorporate policy or behavior changeUse clean and low-carbon energyImprove energy efficiency in productionReduce waste and promote material recycling28Tracking the Low-Carbon Transition of Enterprises in ChinaJA SOLAR:Leveraging
177、Innovation in Clean Energy Technology for a Low-Carbon TransitionCase Study1.About JA SOLARJA Solar is a Chinese manufacturer of high-performance photovoltaic products.As a leading manufacturer in the renewable energy industry,a low-carbon transition is a key component of JA Solars strategic plannin
178、g.In continuing to introduce new innovations into its technology,JA Solar promotes the construction of a clean energy system and contributes to Chinas low-carbon transition.2.HighlightsProducing new clean energy technologies through innovation and top-down management.Setting up a carbon&sustainable
179、development department that report directly and regularly to the strategy committee within the board of directors:JA Solars strategy committee sets the overarching goals and outlines the direction of the low-carbon transition,and is responsible for carbon emissions accounting and other low-carbon ma
180、nagement work.The department has six working groups in charge of energy efficiency,supply chain management,etc.,linking to the enterprises nine management platforms.The resulting structure coordinates low-carbon work across the enterprise horizontally and vertically.Improving innovative capacity for
181、 photovoltaic technology and increasing investment in the research and development of PV module products:2.in reaction to the rising production costs of solar energy,as demand for input increases following large scale investments in the solar PV industry,JA Solar has adopted granular silicon as a ra
182、w material and is leveraging new technologies to reduce costs and increase productivity.For the upstream supply chain,JA Solar has launched a new department concentrating on PV material business development,aiming to efficiently utilize equipment established upstream.The company has also increased i
183、nvestment in downstream PV applications,expanded the scale of power station construction,conducted green power transactions,and collaborated with upstream and downstream partners to reduce overall carbon emissions.29Business and Sustainability in China 2022/20233.Lessons LearnedEnhance scientific an
184、d technological research and development capabilities,or cooperate with relevant scientific research enterprises and institutions to promote the transformation of the energy structure by introducing new energy products.Collaborate with upstream and downstream enterprises to reduce overall carbon emi
185、ssions.3.2.2 Market-oriented means of promoting green powerMarket-based mechanisms for emissions reduction cannot be ignored as they allow enterprises greater flexibility in developing their emissions reduction strategy.In addition to Chinas Emissions Trading System(ETS)and voluntary carbon market(V
186、CM),green power trading also plays a crucial role.38.8%of surveyed enterprises reported reducing emissions by directly purchasing green power,and 23.1%by purchasing the Green Electricity Certificate(GEC).The following table shows the difference between the two trading mechanisms:30Green Electricity
187、Certificate TradingTo provide stronger financial incentives for renewable energy development and reduce the governments subsidy burden,China launched the voluntary trading platform for the Green Electricity Certificate(GEC)in 2017.GECs are issued to large-scale grid connected onshore wind and solar
188、PV plants.One GEC corresponds to 1MWh of green electricity generation.Enterprises and individuals purchase GECs to support the generation of renewable energy and meet their voluntary emissions reduction targets.However,it does not involve physical delivery of electricity to buyers.Once GECs have bee
189、n sold,RE generators who have been receiving government feed-in tariffs(FiTs)must forego the subsidy.OverviewGreen Power TradingPiloted in 2021,the direct green power trading program is conducted via the Beijing Power Exchange Centre and the Guangzhou Power Exchange Centre.Enterprises who purchase g
190、reen power will receive both physical power delivery and a green electricity consumption certificate.There are currently two transaction methods:1.Electricity users(including electricity sales enterprises)and power generation enterprises purchase green electricity through direct electricity transact
191、ions,including power purchase agreements(PPAs);2.Electricity users purchase green electricity from grid enterprises that they guarantee to acquire.9Tracking the Low-Carbon Transition of Enterprises in ChinaGreen Electricity Certificate TradingThe registration and auditing agencies of GECs are all ov
192、er China,with no regional restrictions.10Using the online transaction platform,the difficulty of obtaining GECs is low.11GEC prices fluctuate greatly.Many enterprises are not familiar with either GECs or the green power trading system.PV sales in 2021:502,015 certificates.Wind power sales in 2021:75
193、,338 certificates.12AdvantagesChallengesUsage of mechanisms in the market Green Power TradingDiversified trading methods.Through the PPA-fixed contract,the user can obtain a certain power supply at a more favorable price.Limited by energy storage technology and the actual transmission capacity of th
194、e power grid,it is challenging to trade green electricity across regions.Current regulatory barriers also prohibit inter-provincial trading.Chinas green electricity trading market has not yet fully formed a market-based pricing mechanism.Many enterprises do not have an urgent need for green power an
195、d stick to cheaper and more accessible alternatives.In September 2021,after Chinas green power trading market opened,the first batch of green power transactions reached a volume of 7.935 billion kWh.13While the carbon emissions trading scheme(ETS)puts a price on emissions to incentivize enterprises
196、to lower them,the GEC trading and direct green power transactions are designed to promote green power production and consumption.The GEC system serves as a supplementary mechanism to direct green power transactions,particularly for those enterprises that need to fulfill renewable energy consumption
197、requirements but cannot do so by purchasing green power.At present,the transaction volume of GECs in China is extremely low compared to the amount issued.The main reasons identified by analysts include:1431Business and Sustainability in China 2022/2023Insufficient incentives for voluntary purchase:e
198、nterprises and individuals are not entitled to additional benefits or preferential policies by purchasing GECs.Furthermore,according to Article 3 of the Notice of Voluntary Subscription Trading System,secondary sales of GECs are restricted,resulting in low liquidity in the market.Lack of compulsory
199、purchase mechanism:in 2019,China released the Renewable Energy Portfolio Standard(RPS)targets,which sets minimum renewables consumption at the provincial level.15 While some enterprises can fulfill RPS targets by purchasing GECs,it is among one of the many options that enterprises can choose from.Mo
200、re competitive alternatives available:some companies buy GECs to meet their RE100 target.16 However,the prices of GECs are higher than the prices of certificates traded at the APX Tradable Instrument for Global Renewables(TIGR)Registry 17 and the price of the International Renewable Energy Certifica
201、te(I-REC)issued by the Green Certificate Company(GCC)18 3.3.1 Growing awareness of climate risks among businesses in China3.3 Risks and opportunities surrounding a low-carbon transitionThe Financial Stability Board created the Task Force on Climate-related Financial Disclosures(TCFD)to develop recom
202、mendations on the types of information that companies should disclose to support investors,lenders,and insurance underwriters in appropriately assessing and pricing risks related to climate change.According to the TCFD Implementing the Recommendations of the Task Force on Climate-related Financial D
203、isclosures document19,climate risk is the potential uncertainty caused by climate factors such as extreme weather,natural disasters,global warming,and social transition to sustainable development on economic and financial activities,such as losses caused by extreme climate events or high carbon emis
204、sions.32Tracking the Low-Carbon Transition of Enterprises in ChinaAt present,enterprises generally pay more attention to the impact of transition risks in the short term.55.5%of the surveyed enterprises have already carried out exercises to identify and assess climate related risks.As shown in the f
205、igure below,market and technological risks are identified by the majority of surveyed enterprises,followed by emissions restriction policies and regulations.Market risk refers to risks that affect the performance of the entire market simultaneously,and technological risk refers to any risk to inform
206、ation technology,data or applications that negatively impact business operations.Climate risk includes two categories:transition risk and physical risk.Transition risk refers to loss caused by factors such as changes in climate policies,technological innovation and market changes in the low-carbon t
207、ransition process(e.g.,market risk,emissions restriction policies and regulations,technical risk,reputational risk).Physical risk refers to property damage caused by extreme weather,natural disasters and related events.Has your enterprise undertaken risk identification for low carbon transition/carb
208、on neutrality?What types of risks has your enterprise identified?Figure 10:Risks identified for a low-carbon transitionQ.71.4%69.4%68.9%50.4%44.5%32.8%5.9%Market RiskTechnical RiskEmission RestrictionPolicies andRegulationsReputational RiskAcute Physical Risk Chronic Physical RiskOther33Business and
209、 Sustainability in China 2022/202364.2%of the enterprises surveyed have carried out opportunity identification exercises regarding a low-carbon transition and carbon neutrality.The top three opportunities identified are:(1)improving resource efficiency to reduce costs and increase business efficienc
210、y(82.1%);(2)offering low-carbon products and/or services to adapt to shifting consumer preferences to enhance competitiveness and revenue(77.9%)and(3)clean energy replacement to reduce dependence on fossil fuels and increase diversification and cleanliness of corporate energy use(66.4%).What types o
211、f opportunities has your enterprise identified?Figure 11:Low-carbon transition opportunitiesQ.3.3.2 Low-carbon transition brings about more opportunities for enterprises in China2.1%40.0%42.1%51.4%60.0%66.4%77.9%82.1%OtherImprove the diversification of financial assetsImprove supply chain stability
212、and ability to operateunder different conditionsImprove credibility and achieve high valuationsEnter emerging marketsClean energy replacementProvide low carbon products/servicesImprove resource usage efficiency34Aided by low-carbon policies,plus research and innovation,there exists multiple areas of
213、 potential growth for green products,services and industries.The policy orientation and market space for green and low-carbon businesses imply more investment opportunities,as indicated by a study conducted by Tsinghua University showing that China will need to Tracking the Low-Carbon Transition of
214、Enterprises in China3.4.1 Lack of industry standards is a pressing issue3.4 Common challengesEnterprises in China face both internal and external challenges in making a low-carbon transition.The five most pertinent difficulties identified by surveyed enterprises are:(1)a lack of relevant industry st
215、andards and guidelines;(2)difficulties in promoting transition along the industry value chain;(3)insufficient carbon accounting capacity;(4)lack of public policy support and(5)the high cost of a low-carbon transition.In terms of government policy,more than 70%of respondents hope for the relevant min
216、istries to issue industrial policies to help guide the low-carbon transition of enterprises What are the challenges and difficulties your enterprise faces in a low-carbon transition?Figure 12:Challenges and difficulties enterprises face in a low-carbon transitionQ.7.3%12.4%18.3%31.7%32.1%37.6%43.6%4
217、4.0%45.9%55.5%Others,please specify:Energy security concernsLack of internal support from senior managementDifficulties in technological innovation in production and operationAffected by the pandemicLow carbon transition is costly.Existing carbon reduction plans areon hold due to financing difficult
218、iesLack of public policy supportInsufficient carbon accounting capacityDifficulties in promoting transition along the industry value chaindue to limited influence of individual companiesLack of relevant industry standards and guidelinesQuestion:What are the challenges and difficulties your enterpris
219、e faces in low-carbon transition?Figure 12:Challenges and difficulties enterprises face in low-carbon transition35invest about CNY 138 trillion(USD$21 trillion)by 2060 to meet the dual carbon goals.20 In addition,increased consumer awareness might further drive green consumption.The sooner enterpris
220、es identify and invest in a new low-carbon mode of development,the better placed they will be to stay ahead in and reap benefits from the future transition process.Business and Sustainability in China 2022/20233.4.2 Difficulty of large enterprises in promoting the implementation of a low-carbon tran
221、sition along the value chainWhat public policies do you think are critical to your enterprises low-carbon transition?Figure 13:Policies critical to a companys low-carbon transitionQ.What are the challenges and difficulties your enterprise faces in pursuing a low-carbon transition?Figure 14:Challenge
222、s in pursuing a low-carbon transition,by enterprise sizeQ.3.2%50.9%57.8%72.9%77.5%Other,please specify:Monetary and credit policies that provide financialsupport for carbon reductionPolicies that regulate the carbon marketFiscal policies to incentivize companiesIndustrial policies to guide corporate
223、 behaviour7.3%12.4%18.3%31.7%32.1%37.6%43.6%44.0%45.9%55.5%Others,please specify:Energy security concernsLack of internal support from senior managementDifficulties in technological innovation in production and operationAffected by the pandemicLow carbon transition is costly.Existing carbon reductio
224、n plans areon hold due to financing difficultiesLack of public policy supportInsufficient carbon accounting capacityDifficulties in promoting transition along the industry value chaindue to limited influence of individual companiesLack of relevant industry standards and guidelines36and introduce fin
225、ancial subsidies to encourage the transition.Industry standards in particular,serving as the basis and reference for enterprises,can not only guide enterprises in their low-carbon efforts but also restrain unfair market competition and promote the healthy development of low-carbon industries.Trackin
226、g the Low-Carbon Transition of Enterprises in ChinaAccording to the survey,58.1%of large enterprises believe that difficulty in promoting the upstream and downstream of the industry value chain hinders enterprises low-carbon transition.The following challenges were reflected in our interview results
227、 and industry research:Multiple stakeholders:large enterprises often have a long supply chain with many suppliers across different regions and different supplier management conditions,making it difficult to coordinate low-carbon efforts such as carbon accounting.Lack of awareness and standardized de
228、finitions:according to the enterprises interviewed,parties from upstream and downstream of the supply chain have a poorer understanding and awareness of low-carbon transition-related issues,resulting in higher communication and education costs.Even within large enterprises that have promoted a low-c
229、arbon transition along its supply chain,understanding of the concept might not be aligned.21Limited capacities:Parties along the supply chain have insufficient low-carbon transition capabilities,in particular they face a lack of adequate resources and technologiesData challenges:Supply chain data co
230、llection is difficult,and measures are needed to ensure the accuracy and authenticity of the data collected.3.4.3 Carbon accounting,especially for Scope 3 emissions,remains a problem areaCarbon accounting is the first step in developing a low-carbon strategy-only by quantifying their carbon emission
231、s can enterprises establish feasible targets and plan a road map for carbon reduction.However,only 28.4%of respondents have conducted carbon accounting.54.6%expect to do so in the next two years.This shows that although enterprises in China have positive attitudes and plans for carbon accounting,act
232、ual implementation continues to be a pain point due to the difficulty of data collection,complicated accounting methods,lack 37Business and Sustainability in China 2022/2023Has your enterprise carried out carbon emissions accounting/inspection?Figure 15:Proportion of businesses performing carbon acc
233、ountingQ.What is/are the scope(s)of carbon emissions data that your enterprisehas calculated/checked at this stage?Figure 16:Scope of enterprises carbon accountingQ.Only 15.1%of respondents included Scope 3 in their calculations.Scope 3 emissions are difficult to calculate as it involves emissions f
234、rom both upstream and downstream of the supply chain,covering a variety of activities and widely distributed suppliers.Clear value chain boundaries can also be challenging to define.of accounting standards,and difficulty in accessing high-quality carbon emissions factor databases.15.0%20.2%23.9%Scop
235、e 3Scope 2Scope 138Tracking the Low-Carbon Transition of Enterprises in ChinaSiemens China:Building Zero-Carbon Industrial Chains through Digital InnovationCase Study1.About SiemensSiemens is a technology company focused on industry,infrastructure,transport,and healthcare,aiming to empower customers
236、 to transform their industries and markets through digitalization.By fiscal 2022,Siemens had more than 5,100 R&D and engineering staff in Greater China,21 R&D hubs,as well as nearly 11,500 active patents and patent applications in China.Siemens has heightened their commitment to ESG through their DE
237、GREE framework(decarbonization,ethics,governance,resource efficiency,equity and employability),which takes a 360-degree approach to all stakeholders,customers,suppliers,investors,people,societies,and the planet.In September 2021,Siemens China officially launched its Zero-Carbon Pioneer Initiative un
238、der DEGREE,focusing on decarbonization and resource efficiency.Under the initiative,Siemens aims to co-create a green ecosystem with all its partners in China.It will use its digital innovations and cross-industry expertise to help build end-to-end zero-carbon industrial chains,and support the achie
239、vement of Chinas dual carbon goals.2.HighlightsDriving low-carbon efforts through digitalization and industrial expertiseLeveraging technology to reduce emissions and lower waste:recognized by the World Economic Forum in 2018 as one of the“most advanced factories”in the world,Siemens Industrial Auto
240、mation Products Ltd.,Chengdu(SEWC)exemplifies Siemens strategy to be a zero-carbon pioneer.For instance,via employing the Industry 4.0 concept,SEWC demonstrates how digitalization can drive innovation to achieve circularity and dematerialization.It shares experiences and best practices with more tha
241、n 10,000 industry partners every year and works to achieve circularity and dematerialization in the design,supply chain and production of its products.Additionally,SEWC is Chinas first pilot user of SiGREEN,a carbon data management platform which helped SEWC quantify a traceable and reliable carbon
242、footprint.SiGREEN is empowered by blockchain and other digital technologies,linking factories,suppliers,third party certifiers,and customers to build up a trusted low-39Business and Sustainability in China 2022/2023carbon ecosystem and cover the entire value chain.Moving forward,SEWC aims to enhance
243、 its factory-level carbon footprint and decarbonization solutions,and further leverage cloud technology under the Software as a Service(SaaS)model.Accelerating the reduction of Scope 3 carbon emissions with digital end-to-end solutions:for industrial products,normally 80-90%of carbon emissions are d
244、erived from the supply chain.Siemens has established a carbon reduction management system covering nearly 7,000 suppliers in China to enhance the transparency of suppliers carbon emissions and actively drive suppliers decarbonization efforts.Their Carbon Web Assessment system supports key suppliers
245、in accelerating their green transition through seven levers:fostering energy efficiency,generating electricity and heat,purchasing green electricity,implementing efficient processes,optimizing logistics,reducing business travel,and using recycled materials.In addition to this,low-carbon-related indi
246、cators have also been embedded into key sourcing decisions and their suppliers management processes,becoming a factor during partnership evaluations.3.Lessons LearnedUse blockchain and other digital technologies in the early stages of product design to quantify a traceable and reliable carbon footpr
247、int for products and continuously optimize product design.This helps build up a trusted low-carbon ecosystem that covers the entire value chain.Establish a cohesive supply chain management system that considers low-carbon efforts and indicators to encourage supply chain transparency and help trace t
248、he sustainability performance of suppliers.403.4.4 SMEs experience greater challenges inimplementing a low-carbon transitionSMEs lag behind large enterprises in low-carbon governance.Large enterprises significantly outperform SMEs22 at all levels of corporate governance,including discussing a low-ca
249、rbon transition in board discussions,clarifying authority and responsibilities at the Tracking the Low-Carbon Transition of Enterprises in ChinaDoes your enterprise include the issue of low-carbon transition in board discussions?Figure 17:Low-carbon transition at the director level SMEs and large en
250、terprisesQ.Has your enterprise clarified the division of authority and responsibilities of the management team in driving the low-carbon transition work?Figure 18:Low-carbon transition at the managerial level SMEs and large enterprisesQ.Concerning corporate strategies for a low-carbon transition,lar
251、ge enterprises remain ahead-64.9%have already developed strategic plans in line with the dual carbon goals.SMEs are also falling behind in terms of forming roadmaps for action and taking specific measures to reduce emissions.67.6%56.6%21.6%30.8%10.8%12.6%LargeenterprisesSMEsYesNo,it is expected to b
252、e included within the next two yearsNo,it is not expected to be included in the next two years either44.6%25.9%44.6%60.1%10.8%14.0%LargeenterprisesSMEsYesNo,it is expected that the division of responsibilities will be carried out in the next two yearsNo,it is also not expected that the division of r
253、esponsibilities will be carried out in the next two years41managerial level and establishing working groups at the executive level.Notably,51.4%of the large enterprises surveyed have established low-carbon/dual carbon/net-zero/sustainable development/ESG working groups,while only 26.6%of SMEs have d
254、one so in comparison.A lack of governance structures may cause SMEs to fall behind large enterprises in implementing a low-carbon transition.Business and Sustainability in China 2022/2023Has your enterprise established a low-carbon/carbon peaking and carbon neutrality/net zero/sustainability/ESG wor
255、king group?Does your corporate strategy include a transition plan aligned with the dual carbon goals?Figure 19:Establishment of the low-carbon working group at the executive level(by enterprise size)Figure 20:Low-carbon transition plans in corporate strategies SMEs and large enterprisesQ.Q.SMEs also
256、 lag in reducing emissions.74.3%of large enterprises have already undertaken carbon reduction initiatives,compared to 45.4%of SMEs.51.4%26.6%37.8%57.3%10.8%16.1%LargeenterprisesSMEsYesNo,it is expected to be established within the next two yearsNo,it is also not expected to be established in the nex
257、t two years5.4%28.4%56.8%55.4%64.9%2.1%31.5%44.8%38.5%56.6%OthersDoes not include a transformation plan consistentwith the carbon peaking and carbon neutrality goalTook specific measures to reduce emissionsFormed a roadmap for actionDeveloped a related strategic plan42Tracking the Low-Carbon Transit
258、ion of Enterprises in ChinaDoes your enterprise carry out emissions reduction initiatives?What are the challenges and difficulties your enterprise faces in pursuing a low-carbon transition?Figure 21:Implementation of emissions reduction initiatives SMEs and large enterprisesFigure 22:Challenges and
259、difficulties faced in a low-carbon transition SMEs and large enterprisesQ.Q.Internal factors are major obstacles for SMEs low-carbon transitions.Comparing the difficulties faced by SMEs and large enterprises,the survey found that large enterprises are affected by external factors at the macro level,
260、such as the difficulty in engaging parties upstream and downstream in the value chain and a lack of policy support and relevant industry standards.Though SMEs are also disturbed by macro and external factors,internal factors such as insufficient carbon accounting capabilities play a large role as we
261、ll.Nearly half(48.3%)of SMEs report an inadequate carbon accounting capacity,compared with 35.1%of large enterprises.74.3%45.4%17.6%42.7%8.1%11.9%LargeenterprisesSMEsYesNo,it is expected to be implemented within the next two yearsNo,it is also not expected to be carried out in the next two years8.1%
262、12.2%16.2%18.2%35.1%36.5%40.5%45.9%58.1%62.2%6.3%12.6%18.9%30.1%48.3%29.4%35.7%41.3%39.9%52.4%OthersEnergy security concernsLack of internal executive supportDifficulties in technological innovation in productionand operationInadequate carbon accounting capacityEpidemic impactHigh cost of low-carbon
263、 transitionLack of public policy supportDifficulties to promote the upstream anddownstream of the industry value chainLack of relevant industry standardsSMEsLarge enterprises43Business and Sustainability in China 2022/20239.https:/ 在中国分布 http:/ 线上认购平台 http:/ National Green Certificate Sales Informat
264、ion,Green Certificate Subscription Platform,accessed Sep 03,http:/ 首批交易电量近 80 亿千瓦时”,China Media Group Online,accessed Sep 03,http:/ is a corporate renewable energy initiative,made up of hundreds of large businesses globally,committed to 100%renewable electricity.17.APX created the TIGR Registry as a
265、n online platform for tracking and transferring Renewable energy certificates(RECs),enabling developers to generate,verify,and sell RECs18.GCC certifies renewable energy generation around the world and is the default issuer of the I-REC,http:/ Implementing the Recommendations of the Task Force on Cl
266、imate-related Financial Disclosures,accessed Sep 03,https:/assets.bbhub.io/company/sites/60/2021/07/2021-TCFD-Implementing_Guidance.pdf 20.“碳中和将为中国带来 138 万亿元投资新机遇”,accessed Sep03,https:/www.cdmfund.org/28407.html 21.Sustainability in the Supply Chain The Asia Perspective,Maersk,accessed Sep 03,https
267、:/ scale of enterprises are classified according to Notice on Printing and Distributing the Provisions on the Classification Standards of Small and Medium-sized Enterprises issued by the State in 2011,http:/ the Low-Carbon Transition of Enterprises in China4.Special Focus:Women and the Low-Carbon Tr
268、ansitionIt is important to recognize the gender-differentiated impacts of a green transition and ensure that women and other groups have the capacities and support system to take advantage of the opportunities of a low carbon transition.Under the Climate Promise initiative,UNDP is supporting 34 coun
269、tries and territories to incorporate just transition principles,processes,and practices into NDCs and LTS,advancing inclusive climate action with a consideration of all sectors and stakeholders,recognizing and listening to all groups,including those most vulnerable,but also,crucially,empowering them
270、 to act.Lee SangjiUNDP Climate Promise Just Transition Focal Point“”4.1 SDG 5 and SDG 13 are intrinsically linked45While the low-carbon transition brings a range of benefits and opportunities for both the environment and economy,these opportunities and benefits will not be automatically inclusive,un
271、less deliberate policies and interventions are carried out.According to an International Labor Organization(ILO)report,the low-carbon transition will lead to 24 million new jobs globally by 2030;however,the transition might result in a lower female employment rate given most of the new green jobs wi
272、ll be located in currently male-dominated industries(renewables,manufacturing,and construction).23 PwC estimates that if no policies and initiatives are undertaken to improve womens representation in these sectors,the gender gap in employment in OECD countries will widen by 1.7%by 2030.24 Specific p
273、olicies and interventions need to be adopted to empower women as viable agents of change to advance climate action,and to ensure that women and men can equally participate in and benefit from the green economy.The promotion of gender equality is important for the smooth structural transformation to
274、a net-zero economy and achieve inclusive growth in general.Indeed,there are considerable opportunities to create synergies between gender equality and climate change action across key green economy sectors:Business and Sustainability in China 2022/2023Gender inequality is not only a moral and social
275、 issue,but also an economic one.Although women comprise half the working age population,they are heavily underrepresented in the workforce and across many sectors of the economy including energy,construction and industrial production.For example,women only represent 32%of the workforce in the renewa
276、ble energy sector.PwCs latest Women in Work report finds that increasing womens labor participation in OECD countries could boost global Gross Domestic Product(GDP)by as much as USD$6 trillion per year.25Facilitating womens upskilling and reskilling is the key to addressing the talent shortage for t
277、he transition to a net-zero economy.According to LinkedIn,from 2017 to 2022,hiring talent with green skills increased by 40%globally;however,there is a shortage of talent to meet this increasing demand.This is partly due to the gender gap-in 2021,there were 62 women for every 100 men considered to b
278、e green talent.26 If women could be empowered to participate in the workforce at the same rate as men are,there will be an instant infusion of talent and creativity to accelerate the transition towards a more inclusive and sustainable economy.To fully tap into womens potential,it is imperative for t
279、he private sector to ensure the equitable development of green skills between men and women,supported with adequate investment in upskilling and reskilling opportunities that are equally accessible to men and women.The inclusion of women could also improve the environmental outcomes of business.Evid
280、ence shows that although women and men are equally exposed to the physical impacts of climate change,women are found to have greater perceived vulnerability to ecological risks,especially with regards to climate change.27 However,they are also more inclined to seek transformations to reduce such ris
281、ks.Research from 2022 by the European Central Bank(ECB)found that every 1 percentage point increase in the percentage of female managers within the ECB led to a 0.5%decrease in CO2 emissions.Studies have shown that women on corporate boards can often be more involved,prepared and diligent.28 This ca
282、n create an atmosphere on the board which is conducive to driving innovation in low-carbon transition efforts.46Tracking the Low-Carbon Transition of Enterprises in ChinaAn inclusive pathway towards the low-carbon transition provides opportunities to advance gender equality.As enterprises around the
283、 world ramp up their efforts to meet the ambition set out in the Paris Agreement,it is essential to understand what an inclusive and sustainable green economy looks like and how everyone could equally benefit from it.Incorporating gender considerations into the low-carbon transition and equipping wo
284、men with the right skills could help to promote economic security for women by improving their access to high quality and sustainable jobs in the long term.Hence,aside from proactively addressing the barriers that women face to navigate the green economy,the government and the business sector should
285、 use the transition as an opportunity to redesign the world of work to better meet the needs of women.29 To achieve that,both the government and businesses need to integrate gender considerations into low-carbon transition strategies to account for women and other disadvantaged groups,and make them
286、part of the solutions to mitigate climate risks.While gender mainstreaming has appeared more frequently on the international climate agenda,less research and analysis combining the topics of climate change and business low-carbon transition and women has been conducted.This section of this report ai
287、ms to shed light on the connection between these three aspects and the business sectors current actions in driving women to participate in low-carbon transition efforts,providing a basis for further recommendations as outlined in Chapter 5:Recommendations.4.2 Awareness:Lack of understanding on the g
288、ender dimension of the low-carbon transitionIn-depth interviews with enterprises demonstrate a general lack of awareness of the relationship between climate change and gender equality,as well as a lack of focus on the potential contributions of women to addressing climate change and the low-carbon t
289、ransition.As gathered from the interviews,this may be due to the lack of discussion on women and low-carbon transition/climate change in public discourse.Similarly,the survey results show that SDG 5:gender equality ranks sixth from the bottom in the ranking of SDGs that enterprises prioritize the mo
290、st.This is as expected,as according 47Business and Sustainability in China 2022/2023to the Women on Boards:Progress Report 2021 released by MSCI,an international index compiler earlier this year,the average proportion of female directors among the 636 listed enterprises in China participating in the
291、 MSCI survey is 13.8%.This number has increased 5.3 percentage points over five years but is still lower than the average level of 22.6%calculated by MSCIs global benchmark index.30Only a small fraction of respondents(32.1%)indicated that women face higher risks in the impacts of climate change/low-
292、carbon transition.Of these respondents,the top 3 risks identified are employment(77.1%),health(68.6%)and access to and control over resources(68.6%).In comparison,nearly half of the respondents(42.3%)did not believe that climate change/low-carbon transition affect women more than men.In addition,22.
293、5%of all respondents reported that they are not familiar enough with the concept to make a judgement.The lack of disclosed data is a well-documented issue preventing the private sector and policymakers from understanding and addressing gender gaps,and from empowering women as active agents in the tr
294、ansition towards a net-zero economy.In 2020,the Workforce Disclosure Initiative(WDI)found that while 86%of companies collect and publicly disclose data on gender distribution among leadership positions,therefore enabling more gender insights for this indicator,only 37%disclosed other types of gender
295、 data,such as with regards to promotions or grievances.Do you believe that women are more likely to be at risk from the impacts of climate change?Figure 23:Perception of the gender-based nature of climate risksQ.48Tracking the Low-Carbon Transition of Enterprises in China4.3 Action:Enterprises showi
296、ng initiative in supporting women to participate in the low-carbon transitionThe survey shows that more than 39%of enterprises are undertaking initiatives to empower female employees to participate in their low-carbon transition efforts,while 36.7%expect to do so in the next two years.0.0%52.9%52.9%
297、68.6%68.6%77.1%Other,please specify:Coping skills:Social constraints limit womens ability to acquire skillsto cope with disasters caused by climate change(e.g.climbing trees,swimming)Gender-based violence:women are more likely to be victims ofdomestic and sexual violence after a disasterHealth:Natur
298、al disasters caused by climate change affect womenshealthResources:Women are at a disadvantage in accessing credit,land orfinancial products,and hence struggle more in obtaining resourcesneeded to cope with climate changeEmployment:Mismatch between supply and demand for femalelabour as industries un
299、dergo a low-carbon transformationWhy do you think women are more likely to be at risk from the impacts of climate change?Figure 24:Womens potential climate vulnerabilitiesQ.Is your enterprise currently taking steps to engage more female employees in low-carbon transition work?Figure 25:Encouraging f
300、emale participation in enterprises low-carbon transitionsQ.49Business and Sustainability in China 2022/20234.4 Call on the government and enterprises to build a green economy with a fairer future for allWhen being asked about what type of support is most needed to further empower women as successful
301、 agents of the low carbon transition,75.2%of the respondents said they need relevant policy guidance;whereas 66.1%,63.3%and 55.5%indicated they would need top-level support,access to existing practices to draw on and more funding respectively.Of the 39.0%that have taken initiatives to realize the fu
302、ll potential of women in low-carbon transition efforts,the majority focused on providing training opportunities for female employees to enhance their knowledge and abilities in navigating a green transition(75.3%).What support do you think your enterprise needs to engage more women in the low carbon
303、 transition?Figure 28:Support needed for promoting female participation in low-carbon transitionQ.What measures did your enterprise take to let more female employees participate in your low-carbon transition?Figure 26:Initiatives to encourage female participation in the low-carbon transitionQ.2.4%55
304、.3%56.5%61.2%68.2%75.3%OtherSupport womens innovation and entrepreneurship and increase their chances of employment in low-carbon industriesBuild exchange platform for female workers in the industry,andstrengthening communication and cooperation along the value chainStrengthen related advocacy and p
305、rovide multifaceted support for womens participation in carbon-neutral workIncrease the hiring and promotion of womenProvide training opportunities for female employees to enhance theircapacity for green transition75.2%66.1%63.3%55.5%5.0%Relevant policyguidanceCompany executivesupportRelevantexperie
306、ncereferenceMore financialsupportOther50Tracking the Low-Carbon Transition of Enterprises in China23.https:/ on boards-Progress Report 2021,MSCI51Business and Sustainability in China 2022/20235.Recommendations5.1 Recommendations on a low-carbon transition for enterprises5.1.1 Establish an enterprise
307、-wide governance structureA governance structure targeted at implementing a low-carbon transition and consisting of the board of directors and relevant personnel at the managerial and executive levels,should be established.52The board of directors should be responsible for leading the low-carbon tra
308、nsition work and establishing a working mechanism for transition governance.This is where the direction of a low-carbon transition and overarching objectives should be set according to science-based targets.At the managerial level,the departments,positions and responsibilities for low-carbon transit
309、ion work should be clearly assigned,quantifiable objectives and performance indicators should be formulated accordingly,and progress tracked regularly.At the executive level,relevant departments should be coordinated,and responsible personnel should be selected from each department to set up working
310、 groups based on specific objectives or areas of focus.Regular mechanisms should be built to facilitate vertical and horizontal coordination,including lateral work reporting and a horizontal department coordination mechanism.Ultimately,businesses should seek to align low-carbon transition considerat
311、ions with core business motives and mainstream them in the long-term by incorporating them into standardized business routines like strategy formulation,planning,investment decision-making,and operation management.It is essential to include low-carbon transition indicators in existing performance as
312、sessments at all levels.Tracking the Low-Carbon Transition of Enterprises in China5.1.2 Utilize digital tools to empower the low-carbon transitionDuring the in-depth interviews,enterprises within the TMT sector highlighted the importance of building an information infrastructure and the role of digi
313、tal technologies such as artificial intelligence,big data and blockchain in facilitating an industrial low-carbon transformation.For other industries as well,these new digital technologies can also accelerate efficient low-carbon transitions.In the manufacturing industry,the Internet of Things colle
314、cts mass data from smart sensors and feeds it through big data analysis technology to predict customer demand more accurately and dynamically,optimize production and manufacturing processes,and consequently reduce carbon emissions.In the logistics industry,artificial intelligence technology and big
315、data analysis can help to integrate freight lines and capacity resources,optimize vehicle transport routes,improve land transport efficiency,and ultimately reduce fuel consumption.In finance,blockchain technology can carry out transparent,real-time,and 53Clear board oversight of climate change,along
316、side related management incentive schemes,are critical enablers of an enterprises low-carbon transition.This is consistent with asks from investor initiatives such as Climate Action 100+that seeks to ensure enterprises are taking the necessary action to reduce greenhouse gas emissions across the val
317、ue chain.Ben PincombeHead of Stewardship,Climate Change“”Since the low-carbon transition has become a challenge for most enterprises in China,talent related changes and transformations are bound to happen simultaneously.The growth of green talent will help the industry build standards,form a broad v
318、alue consensus and drive the implementation of transformative solutions with practical skills.Justin CuiChief of Staff and Head of Strategy at LinkedIn China“”Business and Sustainability in China 2022/2023Ant Group:Using Digital Platforms to Assist Enterprises with Carbon ManagementCase Study1.About
319、 Ant GroupAnt Group,founded in 2014,is a Chinese internet technology company providing inclusive financial and life services to consumers and micro and small enterprises.In 2021,Ant Group released its carbon neutral action roadmap and committed to achieving net-zero emissions by 2030.In June 2022,An
320、t Group announced that it had achieved operation-wide carbon neutrality and decided to introduce a comprehensive ESG framework to corporate management,along with officially launching a four-in-one ESG sustainable development strategy consisting of digital inclusion,green and low-carbon development,t
321、echnology innovation and open ecosystem.2.HighlightsAiding enterprises and their partners with low-carbon management via digital solutionsFacilitating scientific carbon emissions management with data-driven digital platforms:with the support of online-offline hybrid development technologies,AI elast
322、ic capacity and other green computing technology capabilities,Ant Group has achieved a twofold increase in server utilization in 2021 compared to 2019,accounting for 82%of the carbon reduction in Ant Groups value chain.In addition,Ant Group has launched a SaaS product facilitating digital carbon neu
323、tral management for enterprises the Carbon Matrix.This platform helps enterprises scientifically manage their carbon neutral efforts.Based on the technical characteristics of trustworthy blockchain-empowered collaboration,the Carbon Matrix helps with unified platform management,data visualization of
324、 enterprises carbon data and enables the remote certification and 54tamper-proof management of enterprises carbon assets,realize on-chain data storage for the whole process of carbon asset development,trading,and circulation,thereby improving trust and further enhancing activity in the carbon tradin
325、g market.Enterprises should use digital technology to accelerate their low-carbon transition based on an understanding of their own industrys characteristics and business scenarios.Tracking the Low-Carbon Transition of Enterprises in Chinaissuance of certificates by third-party professional organiza
326、tions along the supply chain.In addition,the Carbon Matrix platform can link the upstream and downstream of the enterprise value chain,such as government regulators,financial institutions,industrial chains,etc.,to achieve multi-stakeholder collaboration.At present,Ant Group is using the Carbon Matri
327、x to increase the transparency of the whole carbon verification process,settlement,liquidation,supervision and audit activities within the group.Exploring the formation of a green evaluation system for SMEs:to drive small and medium-sized enterprises to reduce their carbon emissions and provide them
328、 with green financial services,Ant Group is cooperating with domestic think tanks specializing in green finance and exploring the potential of establishing a green evaluation system for SMEs.For example,their digital platform,which supports enterprises to take the initiative in filling in informatio
329、n and uploading relevant documents,helps SMEs improve their environmental data disclosure.3.Lessons LearnedLeverage digital technologies to build a carbon inventory.A scientific and effective carbon inventory is essential for enterprises to move towards carbon neutrality.Take advantage of the digita
330、l tools developed by large enterprises.While large enterprises can make use of digital technologies and data to manage carbon emissions,SMEs without environmental data disclosure can turn to these existing tools to participate in ESG evaluation and advance their own carbon development.5.1.3 Actively
331、 identify climate risks and opportunitiesFrom the perspective of climate risk,enterprises should integrate low-carbon transition considerations into their existing risk management processes.Enterprises should identify risks,assess risks,establish indicators for daily monitoring,and make mitigation p
332、lans for risks brought about by climate change.By identifying the degree of climate and environmental risk borne by the enterprise and its supply chain,enterprises can then reduce their vulnerability to climate risks and work on building resilience.Enterprises can set transition risk monitoring indi
333、cators by paying attention to key policies in their industries,the transition efforts and results of leading enterprises,geographical location of enterprises,and the ways in which they are sensitive to a low-carbon transition.55Business and Sustainability in China 2022/2023China Power:Identifying Climate Risks and Opportunities while Undergoing a Green TransitionCase Study1.About China PowerChina