The low-carbon transition has moved beyond regulatory compliance to become a driver of competitive differentiation and new revenue streams. By developing low-carbon products, circular business models and innovative green solutions, companies can respond to rising customer and societal expectations for sustainable value chains. At the same time, tapping into emerging markets and segments driven by low- carbon demand strengthens brand reputation and opens new opportunities for growth. Strategic integration of sustainability into core business models thus not only mitigates risks but actively enhances market position and profitability.2.3 Elevating competitiveness and unlocking new revenuesHuaneng: using full life cycle management to drive carbon emissions reduction across the hydropower value chain BOX 3 As China’s leading state-owned enterprise (SOE) in the power sector, Huaneng has defined accounting boundaries and targets for carbon emissions throughout hydropower projects’ life cycles. lt has established a theoretical framework that integrates multi-source data collection and intelligent analysis to achieve precise carbon accounting and efficient regulation. Huaneng to the lead in publishing the International Electrotechnical Commission (IEC) Smart Hydropower white paper. The paper promotes the intelligentization and standardization of the entire hydropower value chain, upgrading hydropower from a single clean power producer to a core hub for integrating renewable energy and managing carbon assets, and guiding the industry towards deep decarbonization. By collaborating with upstream and downstream partners, Huaneng has incorporated energy conservation and carbon control as crucial management and evaluation metrics, empowering SMEs across the value chain to accelerate the development and adoption of green, low-carbon technologies and products. Accelerating Value Chain Decarbonization for Corporate Growth: Perspectives from Asia 14

Accelerating Value Chain Decarbonization for Corporate Growth Perspectives from Asia 2025