A recent “Survey on Carbon Neutrality” conducted by GCC member TÜV Rheinland looked at some of the major challenges enterprises in China face as they try to reduce their carbon footprint. The survey respondents hail from various industries like the industrial sector, automobile, electronic and electrical products, as well as consumer goods.
72% of 650 respondents in Mainland China say that they know the sources, scale and nature of corporate greenhouse gas emissions, meanwhile, nearly 50% of enterprises have either specially set up a carbon asset management department or tied up with third-party institutions, according to the global leader in independent technical service.
Although 73% of respondents say that China’s goal to become carbon neutral by 2060 has an impact on their businesses, only 12% have made specific net-zero emission targets or timetables and 30% say they have not made any plans yet.
Furthermore, nearly half of the respondents have not established a time limit to achieve carbon neutrality. The proportions of respondents with a time limit of 3-5 years, 5-10 years, and over 10 years are 15%, 26%, and 14%, respectively.
Seize the Opportunity to Rise up to the Challenge
Uncertainty about policies and market trends, lack of expertise and ability, and cost-effective solutions are some of the biggest challenges cited by the respondents. Furthermore, respondents cited lack of management support and complex execution procedures within enterprises as difficulties.
The surveyed enterprises cite carbon reduction, energy conservation, consumption reduction, and efficiency improvement as preferred methods. In addition, energy substitution, saving or replacing raw materials, and making a long-term plan for a sustainable energy management system are also favoured methods to reduce carbon emissions.
“It is perceived that many enterprises are carrying out measures to curb the carbon footprint but face multiple challenges. The survey mirrors the need for a governing framework on how China will accomplish its ambitious 2060 objective. Moreover, the time lag between becoming mindful of the issue and investing the time and resources to take action is a concern,” said Fallight Xu, Regional Officer of Sustainability Service, TÜV Rheinland.
“The enterprises need time to design systems and build teams to get clarity on the implications of carbon neutrality, set targets, screen pathways and build capacity. Many enterprises are quite concerned about the reputational risks of publishing a decarbonisation roadmap,” he added.
In response to the proposed ‘dual carbon’ goals, 17% of surveyed enterprises indicate that they aspire to become “pioneers in carbon reduction,” while 42% and 32% say they intend to reach the industry's average level.
Furthermore, 60% of surveyed enterprises plan to invest 1-5% of net profits in the next decade to achieve carbon neutrality, 20% plan to invest 6-10% of net profits, and 10% plan to invest more than 10% of net profits. Participants cited gear upgrading; investments in renewable energy; and investments in research and development, supply chains, materials, and so on, as the most important aspects.
In July 2021, the European Commission unveiled a climate law and “Fit for 55” comprehensive roadmap for realising the European Union’s ambitious target of reducing its net greenhouse gas emissions by at least 55 percent from 1990 levels by 2030, and to become climate-neutral by 2050. The EU is working on the revision of its climate, energy, and transport-related legislation under the so-called 'Fit for 55 package' in order to align current laws with its 2030 and 2050 ambitions. A number of new initiatives are also included in the package.
TÜV Rheinland suggests that Chinese enterprises should start planning the target and pathway for carbon neutrality, giving them more time for a smooth transition. Neglecting to set goals and timetables may result in the company going in the wrong direction and wasting additional time and resources on decarbonisation. Enterprises should take a top-down approach for the road-mapping of their net-zero ambition. The commitment of top management will be critical to their carbon neutrality strategy development and implementation.
One-Stop Carbon Management Solutions
This year, TÜV Rheinland Group celebrate its 150th anniversary in delivering safety and quality in virtually all areas of business and life. Since 1872, TÜV Rheinland is a world leader in developing solutions to ensure the safety and quality of the interaction between humans, technology, and the environment, and the company remains committed to a sustainable future.
TÜV Rheinland boasts many years of experience in helping companies calculate their carbon footprint. It is proved by accreditations from the American National Standards Institutes (ANSI) and the Deutsche Akkreditierungsstelle GmbH (DAkkS). The experts at TÜV Rheinland perform certifications according to all internationally recognised standards. Through its carbon neutrality survey, TÜV Rheinland has identified enterprises’ needs and aims to take constructive measures to help enterprises implement energy conservation and emission reduction, as well as achieve the ‘dual carbon’ goals smoothly.
Find the full survey report for download here.
This article has been kindly provided by TÜV Rheinland, a member of GCC Hong Kong. To learn more about TÜV Rheinland’s Carbon Management Solutions, visit www.tuv.com.
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