Carbon neutrality and sustainable development should be achieved with cross-industrial and society-wide efforts, the declaration made by CATL at its first ESG Forum has gained consensus from all participants.

Recently, the first ESG Forum & Industrial Chain Integrated Innovation Seminar organized by CATL's Corporate Sustainability Management Committee kicked off in Ningde, east China's Fujian Province. About 300 industry leaders, academic experts and scholars, NGO members and representatives across the value chain from all over the world attended the meeting, with an aim to explore new ways for promoting the sustainable development of the lithium-ion battery industry. 

CATL's New Carbon Management Platform to Foster Zero-Carbon Emissions 

The forum was centered around the theme of advancing carbon neutrality across the lithium-ion battery value chain. Climate change poses one of the most pressing challenges of our time, and as such the market is not just satisfied with carbon neutrality in the manufacturing process, but requires the acceleration of carbon neutrality in mining, processing and other upstream functions of the supply chain. 

CATL has always been committed to reducing its carbon emissions. In 2023, the overall carbon emission intensity of CATL's factories dropped by 65.1% compared with that of 2020, with nine factories passing PAS 2060 certification and receiving the title of "Zero Carbon Factory." Inspired by these results, it is possible to accelerate carbon neutrality by making collaborative efforts with upstream and downstream enterprises with the aid of a carbon management platform.

 At the end of 2023, the latest "Carbon Chain System," independently designed and developed by CATL, was put into operation. It is a platform that integrates a diverse range of functions of collecting carbon emission data, modeling, accounting, analysis and certification, with a database covering each link of the lithium-ion battery value chain from raw ore mining to power battery recycling. CATL hopes to work with industry partners based on this platform to build an authoritative data library for the lithium-ion battery industry, which will in turn better promote carbon neutrality. 

CATL's Compliance with Industry Standards for Addressing Global ESG Challenges 

During the meeting, it was highlighted that the challenges of globalization and geopolitical uncertainty have shifted the competition in global markets from products, technology and capital to the competition in ESG factors such as green development, local market contributions, and business ethics, showing that ESG is playing an increasingly important role in the allocation of the global industrial chain.

In the past three years, CATL's MSCI ESG ratings have been upgraded from BBB to AA, taking the leading position in the industry. In addition, it was the recipient of a number of ESG awards presented by organizations including: CCTV, Forbes China, Ernst & Young, and S&P, as well as being rated as having the best practice in corporate governance in 2023 by the China Association for Public Companies. 

Sustainable development cannot be achieved without cooperation with partners and industrial chains; therefore, to address ESG challenges, it not only calls for efforts from individual companies, but requires industry participation, which means to form a community of shared interests to battle against difficulties and challenges. 

Adhering to the concept of win-win cooperation, in 2023, CATL conducted CREDIT sustainability audits for 60 key suppliers, responsible mineral sourcing audits for 70 suppliers, and initiated 90 sustainability-oriented training programs for all kinds of suppliers. CATL's CREDIT Sustainability Audit was selected as a best practice in the 2023 White Paper on the Industry Net Zero Acceleration Initiative released by the World Economic Forum. 

Fulfilling CATL's Mission in Line with Industry Consensus to Foster Sustainable Transformation of the Industrial Chain 

As a key link between the upstream and downstream sector, CATL has the responsibility, obligation, and know-how to combine the efforts of all parties in order to extend sustainable development concepts and practices across the industrial chain, and accelerate the transformation and upgrade of the lithium-ion battery industry. 

During the roundtable session, CATL and suppliers pooled ideas and summarized more than 30 industry-specific suggestions and solutions for compliance control, responsible management, as well as the energy conservation and emissions reduction of global enterprises, aiming to give a fresh impetus to the development of the lithium-ion battery industry. 

The ESG Forum has served as a platform for CATL and industry partners to share views on the prospects and opportunities of sustainable development, while aligning futue cooperative efforts. Looking forward, CATL will continue to join hands with global partners to follow the industry mission and inclusive practices in the process of building a new sustainable ecosystem.