CASE STUDY 6 State Grid: driving the low-carbon transformation of the industrial ecosystem through comprehensive coordination of green supply chains and carbon management With its core business focused on investing in, constructing and operating power grids, State Grid Corporation of China (SGCC) is a key state-owned enterprise tasked with fulfilling national strategic missions, a backbone power company ensuring national energy security, and a public utility serving the national economy and people’s livelihoods. As a critical measure, SGCC is developing a “comprehensive and in- depth” green ecosystem for its supply chain and deepening the construction of its carbon business system. This enables coordinated carbon reduction efforts across upstream and downstream partners, strengthens the integration of green power consumption accounting with carbon accounting rules, and comprehensively drives the low-carbon transformation of the entire industrial ecosystem and value chain. Core initiative –SGCC advanced the development of a green, modern, digital and intelligent supply chain. Harnessng its role as the anchor of the industrial and supply chains, it expanded the access to energy consumption and carbon emission data from enterprises at all levels of the supply chain. It also broadened services such as carbon emission accounting, product carbon footprint accounting, carbon trading and green finance, guiding the entire industrial chain toward green upgrading. –SGCC comprehensively coordinated carbon management through the construction of a carbon business system. Introduced blockchain technology to ensure data immutability and building a credit evaluation system through big data monitoring; established national standards for product carbon footprints and carbon accounting in power transmission and transformation, supporting the national carbon emission statistical accounting system; and supported the development of a national carbon emission analysis platform to promote green and low-carbon development. Impact –A trillion-yuan procurement and supply chain management platform has been established, saving CNY 77.783 billion in procurement costs, with 147 green warehouses and 33 zero-carbon warehouses developed. –Promoting the coordinated development of the power market with carbon emission trading, green certificate trading and other markets, supporting the Beijing Power Exchange Center in establishing a green certificate trading platform, with cumulative transactions reaching 108 million certificates. –State Grid Information & Communication Industry Group, in collaboration with the State Grid Big Data Center, supported the National Development and Reform Commission (NDRC) in building the National Carbon Emission Monitoring and Analysis Service Platform, which innovatively applies power big data technology to monitor and analyse monthly carbon emissions at the national, regional and industrial levels, significantly improving data timeliness compared to traditional accounting methods. Achieving deep decarbonization requires more than policies and technologies; it demands a cultural shift within businesses and across society. Moving from a mindset of minimum compliance towards genuine ownership of climate goals is essential for lasting impact. This transition involves embedding sustainability into corporate identity, consumer engagement and community development, so that low-carbon practices are not external obligations but internal drivers of value. By building ecosystems in which employees, partners and customers actively participate, companies can amplify their influence, build trust and accelerate behavioural change. Such cultural transformation turns climate action into a shared mission, reinforcing both competitiveness and resilience.3.4 Driving a cultural shift Accelerating Value Chain Decarbonization for Corporate Growth: Perspectives from Asia 22

Accelerating Value Chain Decarbonization for Corporate Growth Perspectives from Asia 2025