top of page

A practical guide to neutrality for corporates

More ESG Research and Insights are Available from GC Insights Contact: for more information.

Key Takeaways

On September 22, 2020, the Chinese government has pledged to reach a carbon emission peak by 2030 and reach climate neutrality by 2060. To align with the "30.60" Goals, the government has since issued a series of sustainability-related regulations and compliance, and more is yet to come. And if you are marketing or any of your products have an association in regions like the EU, legislations in sustainable disclosures may apply. More transparency and tighter emission control are expected to come next.

In a previous article, we wrote about the Opportunities and Challenges of Carbon Finance in China, and as the carbon market starts to grow, we are focusing on how corporates could benefit from it and start their neutrality strategies.

For corporate entities that do not fall in the Key pollutant-discharging entities list. According to China’s Interim Rules for Carbon Emissions Trading Management that came into effect on February 1, 2021, key pollutant-discharging entities are enterprises in specific industries with an annual emission of at least 26,000 tons. These enterprises are allocated a certain emission allowance and are required to report on their emission details each year and be reviewed in March. In the country's 14th Five-Year Plan, key pollutant-discharging entities have expanded from the power generation sector to possibly sectors like steel and cement, with more to join the trading market. It is time to get ready for your neutrality strategy. Before setting up your carbon neutrality plan, you need to first learn more about what is climate neutrality.

In addition to follow regulation alignments, business leaders can share their insights and experience to inform policy and regulation; they can also shape public expectations on how sustainable growth can be advanced, said by CISL.

GC Insights understands the importance of upholding The MRV (Measuring Reporting and Verification) framework. We are here to help you leverage the process to service your priorities to build sustainable business model and gain sustainable growth at the same time.

The first step to moving forward is to understand the Legal Requirements and Opportunities & Risks associated with reaching climate neutrality to know what to prioritise with your resources at hand.

And the next starting point is of course, knowing what you are dealing with in particular, what the targets are and what they mean for your organisation. Once that’s been clear out, do your GHG inventory accordingly then identify and analysis possible opportunities and risks in your portfolio. Finally, learn some of the available options for your mitigation strategy in China. Lastly, review and get assurance with your audit results constantly to keep on track with your neutrality ambitions. Eric Usher from the UNEP FI suggests organisations to make sure the selected targets and actions are science-based; consistently aggregated and tracked; and growing transparency to ensure integrity of the organisation. The MRV (Measuring Reporting and Verification) framework should be uphold.

However, legal requirement is only one transition risk to low-carbon economy, companies should get comfortable with their carbon management from top to bottom through value chains for climate mitigation. It is time to evaluate your current position and start catching up.

More ESG Research and Insights are Available from GC Insights Contact: for more information.

bottom of page