Highlights of the 28th Sino-European CSR Roundtable Forum

The forum organizers, amfori and China Sustainability Tribune, exchanged certificates of appreciation.

The organizers awarded certificates of appreciation to the three supporting organizers, China National Textile and Apparel Council (CNTAC), the CSR Committee of China Electronics Standardization Association (CSR-CESA), and Hong Kong Productivity Council (HKPC).

Guo Xiuming, a past guest representative, delivered a speech. He serves as the Executive Deputy Director of CSR-CESA and was formerly the Deputy Inspector of Policy and Law Department, Ministry of Industry and Information Technology (MIIT).

After a three-year hiatus, the forum’s organizers and participants reconvened in a lively and welcoming atmosphere.

The 28th Sino-European CSR Roundtable Forum officially commenced in an vibrant atmosphere.

During her speech, Linda Kromjong, President of amfori, emphasized the importance of building partnerships to achieve sustainable development, as no one can do it alone. She elaborated on the idea of supply chain partnerships, explaining that sustainable development should be considered from multiple perspectives, including plants, nature, and life, not just from a human standpoint. Attention must also be paid to different chains and participants, such as brand owners, suppliers, producers, manufacturers, and logistics. All stakeholders must fulfill their own corporate social responsibilities in order to achieve sustainable development.

Shi Yichen, Chief Economist of China Green Index, and Senior Academic Adviser of the Green Finance Institute, Central University of Finance and Economics delivered a keynote speech on “ESG and Supply Chain Management - Suppliers’ Carbon Reduction.” He highlighted the widespread recognition of the Paris Agreement by the international community and how the global climate change revolution is driving the trend towards low-carbon and decarbonization. “From carbon finance to climate finance, to green finance, and finally to sustainable finance, carbon is the core of the entire supply chain and is measurable,” said Mr. Shi. The four major areas of carbon neutrality - energy, industry, transportation, and construction - involve numerous stakeholders and suppliers, making them crucial for leading supply chain decarbonization.

Jonathan Salmon, Head of Sustainability, Li & Fung, shared his company’s progress in supply chain decarbonization during his keynote speech. He highlighted Li & Fung’s ongoing efforts to reduce emissions throughout the entire value chain and production cycle, including both upstream and downstream optimization in the supply chain and logistics system. This is part of the company’s goal to build a decarbonization ecosystem across the entire industry chain. Li & Fung’s efforts include: firstly, making commitments and contributions to business partners, such as developing a greener supplier system; secondly, integrating sustainability commitments into business operations, such as disclosing environmental impact indexes and parameters; thirdly, collaborating with upstream suppliers, downstream consumers, employees, and communities to promote ESG implementation, and establishing its factories as models of green practices.

  

During the keynote speech, Wen Rui, Deputy General Manager of State Grid Taicang Power Supply Company, and Jiang Yang, Sustainability Manager of Nike China, shared their supply chain decarbonization project for Nike’s “wind and solar power integrated” smart logistics park. The distributed wind power project for Nike China’s logistics center received strong support from the Taicang Municipal Government and State Grid Taicang Power Supply Company during its construction stage. For example, the power supply company set up a low-carbon service team to familiarize the park personnel with grid connection involving new energy sources. They provided technical guidance, and also offered training to the park power dispatchers. As a result, Nike’s logistics center achieved 100% use of electricity from renewable energy, making it the first “wind and solar power integrated” zero-carbon smart logistics park in China. Through this project, State Grid Taicang Power Supply Company also realized that “in addition to traditional power supply services, more solutions and innovative measures created in response to customers’ demand for low-carbon development will lead to a new competitive edge for enhancing the city’s business environment.”

During the panel discussion, Tracy Zhou (Associate Principal Consultant, Green Living and Innovation Division, HKPC), Sun Lirong (Researcher of CNTAC CSR Office), King Kong (Managing Director China, XD Connects), and Liu Wei (Senior Manager of Environment and Sustainability Department, LI-NING Group) exchanged ideas on “Challenges and countermeasure in building the carbon reduction partnership.”

Ms. Tracy Zhou emphasized the importance of promoting green development through digital technologies. She stated that this approach can increase efficiency and transform the entire industry, with green being a crucial guide for digitalization. Ms. Zhou also called for greater support for small and medium-sized enterprises in their efforts to achieve green transformation through technology, as these companies often require additional funding or technical expertise to make the transition to low-carbon operations.

Ms. Sun Lirong stated that creating an industry ecosystem is one of the core tasks of industry organizations. She highlighted the “30·60 Net Zero Acceleration Plan” initiated by CNTAC, which aims to influence more stakeholders by partnering with 30 well-known brands and 60 core manufacturers. “Many Chinese brands and suppliers are striving to meet carbon emission reduction targets in order to fulfill the requirements of sustainable development,” said Ms. Sun.

Mr. King Kong stated that by prioritizing the reduction of carbon emissions in their ESG supply chain, XD Connects has experienced significant benefits, including an increase in company valuation, easier access to financing, and a boost in sales. The company has implemented several measures to achieve this, such as forming an internal carbon research team to calculate and disclose each product’s carbon lifecycle, using recyclable materials to ensure products are recyclable throughout their lifecycle, and emphasizing authenticity and traceability to guarantee the use of traceable and recyclable materials throughout the entire product lifecycle.

Mr. Liu Wei disclosed that LI-NING Group has incorporated sustainable and green development into its long-term strategy. He provided details on the company’s specific approach, “Initially, we assess the carbon emissions within our supply chain and commission professional third-party organizations to carry out carbon investigations. Subsequently, we enable our suppliers to reduce their carbon footprint by organizing training sessions and assisting them in comprehending their carbon emission data inventory. Our energy experts meticulously evaluate the emission reduction potential of each key supplier.”

During the ensuing Q&A session, the guests engaged in a lively exchange with the audience and responded to their inquiries. Ms. Tracy Zhou presented the criteria and models for advancing green and low-carbon procurement within supply chains across various countries and regions. Mr. Shi Yichen expounded on practical approaches for creating a carbon-reducing ecosystem within the supply chain through the use of financial instruments.

At the forum’s conclusion, Mr. Yu Zhihong, President and Editor-in-chief of China Sustainability Tribune, and Linda Kromjong, President of amfori, jointly unveiled a research report entitled Driving Green Development Through Empowering Supply Chains - An Insight Study of Sino-European Sustainable Supply Chain Practices from Past Sino-European CSR Roundtable Forums. The report reflects on the accomplishments of the preceding 27 roundtable forums, examining supply chain development in China and Europe, corporate concerns, and future trends. It presents key perspectives on sustainable supply chain development and offers guidance for the forum’s future endeavors while serving as a valuable resource for partners and stakeholders interested in the forum.

Scan the QR code to learn more about the report

Mr. Yu Zhihong explained that the Sino-European CSR Roundtable Forum has consistently focused on global supply chain issues and is dedicated to establishing a specialized and practical platform for dialogue in the realm of corporate social responsibility between China and Europe. Its objective is to foster communication and collaboration between Chinese and European companies, thereby imparting knowledge and support to the advancement of global sustainable trade and corporate social responsibility initiatives in China and Europe. To offer guidance and serve as a point of reference for a wider range of companies, the forum showcased three exemplary instances of green supply chain partnership development.

Linda Kromjong emphasized that foremost, ESG information disclosure and due diligence management are of utmost importance. Reliable, comparable, and measurable data serve as the foundation for conducting non-financial factor verification. Additionally, incentives are necessary to effect change. Regulatory measures, sustainable and responsible investment and consumption practices, as well as the needs and expectations of employees and communities all act as catalysts for transformation. Ultimately, it is only through collaborative efforts that the supply chain can become more accountable and sustainable.