Accelerating Value Chain Decarbonization for Corporate Growth Perspectives from Asia 2025

Enhancing energy efficiency and optimizing resource use are not only core measures for reducing a company’s direct operational emissions, but they also serve as the foundational lever for catalysing decarbonization across the entire value chain. In Asia-Pacific, companies gain an average of $36.5 million from environmental action at a cost of $4.5 million – an eight-fold return. The top emissions saving initiatives in the region are energy efficiency in production processes, and low-carbon energy generation, according to CDP . This inside- out approach to emission reduction forms a solid foundation for attracting investment, building resilience and securing long-term competitiveness.2.2 Enhancing efficiency and financial performance State Grid Corporation of China drives the decarbonization of the industrial and supply chains through the Green Electricity Empowerment and Process Reshaping modelBOX 2 State Grid Jiangsu Electric Power is assisting the local marine engineering and shipbuilding industry in achieving point-to-point energy savings across multiple process nodes through technologies such as intelligent frequency conversion control and waste heat cascade utilization. Additionally, it has introduced integrated systems combining distributed photovoltaics, energy storage and shore-based power supply. By harnessing smart grids, it can dynamically balance energy supply and demand through one-click optimization, setting a replicable benchmark for “near-zero carbon” factories. This initiative serves as an industrial anchor for building green supply chain clusters and driving decarbonization transformation upstream and downstream. So far, it has facilitated energy-saving upgrades in 12 supporting enterprises and attracted over 100 companies from within and outside Jiangsu Province to conduct on-site learning. Source: China Energy News. (2025, 10 July). Building a Near-Zero Carbon Factory to Support the Green Transformation of Offshore Shipbuilding. https://www.cnenergynews.cn/zjxj/2025/07/10/detail_20250710221353.html. CASE STUDY 1 LONGi: strengthening financial and operational performance through an efficient and responsible value chain LONGi strategically manages its value chain not just for compliance, but as a source of operational and financial advantage, using rigorous supplier management, digital traceability and ESG capacity building to drive down costs and mitigate risks. Core initiative –Supplier LCC management control mechanism: LONGi implements gatekeeping for silicon supply chain partners; enforces on-site audits, document traceability and capability assessments; and admits only qualified suppliers into a dynamic graded management pool. –End-to-end digital traceability: LONGi deploys a traceability integration system covering material, production and logistics data; enables batch- level tracking from polysilicon to finished modules; and supports third-party audits and client-facing traceability services. –Supplier ESG capacity building: LONGi launched the 2024–2028 Supplier ESG Capacity Building Plan; provides training on environment, human rights, safety and ethics via the LONGi e-Learning Supplier Platform and Supplier On-site Empowerment Coaching; and promotes certifications like ISO 14001, ISO45001, ISO4064, SBTi, SA 8000 and more. –Green and responsible procurement: Its initiatives enforce responsible mineral sourcing through the use of conflict minerals reporting templates (CMRT)-certified smelters. Impact –Assurance supply chain continuity: Rigorous supplier control minimizes production disruptions and quality failures, reducing rework and delay costs. –Enhanced asset efficiency: Digital traceability optimizes inventory and streamlines audits, cutting capital tied up in stock and compliance costs. –Reduced risk profile: A compliant supply chain de-risks the business from fines and scandals, enhancing investor appeal and lowering capital costs. –Market access and premium: Verifiable responsible sourcing unlocks green markets and enables brand premium, securing revenue and boosting profitability. Accelerating Value Chain Decarbonization for Corporate Growth: Perspectives from Asia 13