Asia's Carbon Markets Strategic Imperatives for Corporations 2025

Global consumers willing to pay premium for sustainable products FIGURE 15 Sources: Bain & Company surveys, 2024.43 6% 20% 37% 33% 3% I recently started buying clothes second hand, as a challenge to shop more sustainably with my sister . United KingdomLiving more sustainably will lead to higher costs initially due to more expensive products. However , adopting some habits can lead to a more economic lifestyle. BrazilWhen did you first start shopping for sustainable products? (Select one)How do you expect to change your spending on sustainable pr oducts over the next 3 years? (Select one) % of respondents (2024) % of respondents (2024) 38% 42% 13% 7%<2 years ago 3-5 years ago 6-10 years ago 10+ years agoSignificantly more A bit more Same A bit less Significantly lessLooking back… Looking ahead… 80%57% As a global leader in energy technology, Contemporary Amperex Technology (CATL) is a Chinese battery maker that aims to achieve carbon neutrality in core operations by 2025 and across its battery value chain by 2035. One core initiative for reducing carbon footprint across the value chain is through zero-carbon factories. Nine such facilities have been built, with zero-carbon electricity comprising 74.5% of battery bases’ power supply and energy consumption dropping 14.6% year-on-year via 285 energy-saving projects. For its supply chain, CATL integrates carbon footprint assessments into supplier evaluations, setting zero-carbon electricity targets for key raw materials providers and offering technical support for PV projects. This has raised zero- carbon electricity usage to 57% among anode/cathode suppliers and 45% among aluminium product suppliers, with carbon footprints of anode/cathode materials and structural components dropping 18.6% and 10.4% respectively. The company has also electrified light commercial vehicles in all wholly owned battery bases, advancing heavy truck electrification in Fujian’s upstream logistics. Launched in 2022, CATL’s “CREDIT” programme – covering 114 internationally compliant evaluation indicators – has conducted onsite assessments for 82 suppliers and provided 92 sustainability training sessions. The initiative links evaluation results to procurement decisions, driving suppliers to enhance carbon management, recycling and energy efficiency. These initiatives have enabled CATL to significantly reduce its product carbon footprint. In the future, it is critical to explore potential carbon reduction benefit-sharing frameworks covering the entire manufacturing value chain, thereby promoting equitable distribution of carbon credits across the industrial chain. CASE STUDY 2 Contemporary Amperex Technology – solid end-to-end value chain management Source: expert interview with CATL. Asia’s Carbon Markets: Strategic Imperatives for Corporations 33