Sustainable development Sustainable development
Research Capability
Background Description

The global climate change situation is grim, with frequent extreme weather events posing significant threats to ecosystems and human society. As the main participants in economic activities, enterprises must assume corresponding social responsibilities and actively engage in carbon reduction efforts without delay. China has clearly put forward the "dual carbon" goals, namely achieving carbon peaking by 2030 and carbon neutrality by 2060. A series of relevant policies and regulations have been successively introduced, imposing higher requirements on enterprise carbon emission control. Meanwhile, the implementation of the EU Carbon Border Adjustment Mechanism (CBAM) has created new trade barriers for Chinese export-oriented enterprises. Failure to effectively reduce carbon emissions will put them at a disadvantage in international market competition.


With the intensification of market competition, customers are paying increasing attention to enterprises' sustainable development capabilities. A growing number of downstream enterprises have incorporated carbon emission performance into key considerations when selecting suppliers. To maintain competitiveness in the industry and achieve sustainable development, Wuxi Paike New Materials Technology Co., Ltd. must proactively address carbon emission issues and formulate practical carbon reduction strategies.


Overall Objective: By 2025, reduce the carbon footprint of export products by 15% and achieve the phased goal of the carbon neutrality pathway.

Analysis of Current Carbon Emission Situation
Analysis of Current Carbon Emission Situation
  • Baseline Year Data
    The baseline year is 2024, during which production and business activities were conducted normally with complete data records, accurately reflecting the basic carbon emission situation of various departments.
  • Data Related to Product Carbon Footprint
    Among the carbon emissions from each link of the product carbon footprint, the carbon emission of carbon steel (S355NL) in the raw material production and acquisition stage is 3842.58kgCO2, accounting for 83.63%, which is the main emission contributor; the carbon emission of natural gas in the production stage is 505.05kgCO2, accounting for 10.99%; the carbon emission of electricity in the production stage is 216.22kgCO2, accounting for 4.71%. Carbon emissions from links such as wastewater treatment and waste emulsion are extremely small.
Carbon Reduction Strategies and Measures
  • Energy Structure Optimization
    Energy Structure Optimization
    Energy Structure Optimization
    Renewable Energy Replacement
    Fossil Fuel Emission Reduction

    Renewable Energy Replacement: Cooperate with surrounding renewable energy power generation enterprises and sign green power purchase agreements; add distributed photovoltaic (PV) and energy storage equipment in the factory area, adopting the mode of self-consumption with surplus electricity fed into the grid to significantly increase the proportion of green power usage. Among them, the Dongxinming workshop will add 4MW of PV capacity, with the total PV installed capacity reaching 6MW; the new energy storage capacity will be 4.472MW. It is expected that by 2025, most of the company's electricity consumption will come from renewable energy such as solar energy.


    Fossil Fuel Emission Reduction: Improve combustion efficiency through technological transformation of equipment using fossil fuels. Implement energy-saving transformations for existing heating furnaces and heat treatment furnaces, focusing on upgrading the gas intake pipeline system of gas regenerative car-type heating furnaces and the air intake and flue gas exhaust pipeline systems of heating furnaces. This measure is expected to reduce natural gas consumption by 10%-15% and nitrogen oxide emissions by approximately 40%, thereby significantly reducing the environmental impact of the product production process.

    Energy Structure Optimization
  • Energy Efficiency Improvement
    Energy Efficiency Improvement
    Energy Efficiency Improvement
    Implementation of Intelligent Manufacturing and Digital Energy Consumption Monitoring
    Optimization of Production Processes to Reduce Energy Waste

    Implementation of Intelligent Manufacturing and Digital Energy Consumption Monitoring: Introduce an intelligent manufacturing system to conduct real-time monitoring and analysis of energy consumption during the production process. Achieve precise management and efficient utilization of energy by optimizing production parameters and scheduling.


    Optimization of Production Processes to Reduce Energy Waste: Organize a technical team to comprehensively sort out and optimize existing production processes, eliminate unnecessary energy-consuming links, and improve production technologies. On the basis of meeting customer requirements, expand the production volume of special-shaped rolled rings. The special-shaped rolled ring technology mimics the finished size of forgings through special design, reducing processing allowances, thereby lowering carbon emissions from raw materials and heating.

    Energy Efficiency Improvement
  • Supply Chain Management
    Supply Chain Management
    Supply Chain Management
    Formulation of Supplier Carbon Reduction Standards
    Priority Selection of Low-Carbon Raw Materials and Logistics Service Providers
    Promotion of Suppliers' Participation in Carbon Accounting and Disclosure
    Construction of Short-Process Steel Mill

    Formulation of Supplier Carbon Reduction Standards: To effectively manage and reduce carbon emissions in the supply chain, we will establish a comprehensive supplier carbon emission evaluation system. This system will require all newly joined suppliers to submit detailed carbon emission reports before officially settling on the platform for our preliminary evaluation of their environmental performance. Meanwhile, for existing cooperative suppliers, we will stipulate that they regularly update and submit the latest carbon emission data every year to ensure that we can continuously track and monitor their carbon emission status.


    Priority Selection of Low-Carbon Raw Materials and Logistics Service Providers: In the process of raw material procurement, prioritize suppliers adopting low-carbon production processes under the same conditions. When signing cooperation agreements with logistics service providers, clearly require them to use energy-saving transportation equipment and optimize transportation routes to reduce carbon emissions in the transportation link.


    Promotion of Suppliers' Participation in Carbon Accounting and Disclosure: Regularly organize suppliers to participate in carbon accounting and disclosure training, assist suppliers in establishing carbon emission accounting systems, and encourage suppliers to disclose carbon emission data to the public to enhance the transparency of the supply chain.

    Construction of Short-Process Steel Mill: The company is constructing an intelligent production line supporting special alloy precision ring forgings for aerospace and new energy applications. This production line will recycle industrial scrap steel such as iron chips and leftover materials generated during product production, and reprocess them into new raw materials for production through short-process steelmaking technology. It is estimated that adopting the long-process steelmaking technology emits approximately 1.8-2 tons of carbon dioxide per ton of steel produced; while the short-process steelmaking technology combining scrap steel recycling with electric furnaces emits only 0.4-0.6 tons of carbon dioxide per ton of steel produced. This measure is expected to reduce the carbon emissions of our products by approximately 80%.

    Supply Chain Management
  • Employee and Cultural Construction
    Employee and Cultural Construction
    Employee and Cultural Construction
    Employee Training and Carbon Neutrality Awareness Promotion
    Establishment of Green Office Standards
    Waste Recycling

    Employee Training and Carbon Neutrality Awareness Promotion: Regularly organize employees to participate in carbon neutrality knowledge training, invite industry experts to give lectures, with no less than 4 training sessions per year, to ensure that all employees have a thorough understanding of the carbon neutrality goals and the company's carbon reduction strategies. Extensively promote the concept of carbon neutrality on internal publicity boards, office systems and other platforms to create a green and low-carbon corporate culture atmosphere.


    Establishment of Green Office Standards: Formulate green office norms, requiring employees to fully implement paperless office to reduce paper waste; give priority to the use of energy-saving equipment, and conduct regular energy consumption testing and maintenance of office equipment to ensure that the equipment is in an efficient and energy-saving state.


    Waste Recycling: The waste recycling rate has achieved 100% coverage, ensuring that all generated waste is thoroughly and effectively recycled and disposed of, meeting the environmental protection goal of complete non-leakage.

    Employee and Cultural Construction
Monitoring and Reporting Mechanism
  • Data Management
    Data Management
    Data Management
    Regular Data Verification: Hire third-party professional institutions to audit carbon emission data every year to ensure the accuracy and reliability of the data, providing a scientific basis for the company's carbon reduction decision-making.
  • Reporting Mechanism
    Reporting Mechanism
    Reporting Mechanism
    Quarterly Internal Carbon Reduction Progress Briefing: Notify all internal departments of carbon emission data, the implementation of carbon reduction measures and the work plan for the next stage to strengthen communication and collaboration among departments. Annual Public Release of "Carbon Neutrality Action White Paper": Detail the company's goals, strategies, implementation progress and results in carbon reduction, demonstrate the company's positive commitment to social responsibility, and enhance the company's social reputation and brand value.
Risks and Response Measures
Risk Type Response Plan
Immature Technology Promote new technology in phased pilot projects, introduce external experts for technical evaluation and guidance during the pilot, and promptly resolve technical issues. At the same time, strengthen communication and cooperation with technology suppliers to ensure stable supply and continuous optimization of technology.
Policy Changes Establish a policy tracking and analysis mechanism, assign dedicated personnel to monitor national and local carbon reduction policies, and adjust the company's carbon reduction strategies and measures in a timely manner. Strengthen communication and interaction with government departments, and actively participate in policy formulation.
Low Supply Chain Cooperation Sign long-term cooperation agreements with key suppliers, clarifying the responsibilities and obligations of both parties in carbon reduction. Provide suppliers with technical support and training to help them improve their carbon reduction capabilities and jointly achieve a green development of the supply chain.
List of Relevant Regulations and Standards
- GB/T 32151.5-2015 "Requirements for Greenhouse Gas Accounting and Reporting, Part 5: Steel Production Enterprises"
- GB/T 24915-2010 "General Principles for Greenhouse Gas Accounting and Reporting in Industrial Enterprises"
- ISO 14064: Standards developed by the International Organization for Standardization for greenhouse gas accounting and reporting, including requirements for accounting and reporting greenhouse gas emissions at both organizational and project levels.
- PAS 2050:2011 "Specification for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services"
- TCFD Framework: Task Force on Climate-related Financial Disclosures framework, aimed at helping companies and financial institutions better understand, assess, and disclose climate-related risks and opportunities, thereby improving market transparency.

Carbon Emission Calculation Models and Formula Description
The company adopts the carbon emission calculation methods recommended by the IPCC (Intergovernmental Panel on Climate Change). Depending on the type of emission source, corresponding calculation models and formulas are used. For example, for emissions from fossil fuel combustion, the calculation formula is: Total emissions = Fuel consumption × Lower heating value of fuel × Carbon content per unit heat × Carbon oxidation factor × 44/12. The specific calculation process and parameter values will be detailed in the carbon emission accounting report based on actual conditions.