What is a Green and Low-carbon Supplier?

Green and Low-carbon Supplier refers to an organization that adopts green, environmentally friendly, energy-saving, clean and low-carbon raw materials, processes, energy sources, facilities and remanufacturing technologies in all activities including production, design, sales, services and daily operations. It adopts carbon reduction measures in production and other processes, cuts carbon emissions by utilizing various green energy sources, and achieves carbon neutrality via carbon trading to fulfill the Dual Carbon Goals. Through cooperation with upstream and downstream partners, it promotes the integrated green and low-carbon development of the whole industrial chain so as to realize the organization’s green and sustainable development.

The assessment of green and low-carbon suppliers evaluates an organization’s carbon management, carbon emissions as well as its progress toward carbon peaking and carbon neutrality throughout production, service and operational activities. It serves as a channel for trust transfer in green procurement, proof of fulfilling Dual Carbon responsibilities, and an important starting point for green and sustainable development of organizations.

The assessment of green and low-carbon suppliers is divided into three grades: Grade A, Grade AA and Grade AAA; Grade AAA is the highest level.

• Grade A (Responsible Enterprise) – Discloses organization-wide greenhouse gas emissions and plans to carry out carbon reduction initiatives;

• Grade AA (Accountable Enterprise) – Discloses organization-wide greenhouse gas emissions, establishes, implements and improves a carbon asset management system, and implements action plans for carbon peaking and carbon neutrality;

• Grade AAA (Fully Responsible Enterprise) – Discloses organization-wide greenhouse gas emissions, establishes, implements and improves a carbon asset management system, formulates and implements action plans for carbon peaking and carbon neutrality, and achieves carbon neutrality through various approaches.

Green supply chains are a product of a green and low-carbon society. Guided by the Dual Carbon Goals, attention to green industries among governments, enterprises and individuals continues to grow. A virtuous cycle is taking shape: national policies drive the development of the green supply chain industry, and green supply chains in turn facilitate the delivery of national Dual Carbon Goals. In recent years, a growing number of enterprises in China have actively practiced green procurement, building bridges between green production and green consumption. “Green Procurement” means that in procurement activities, enterprises promote green and low-carbon concepts, give full consideration to environmental protection, resource conservation, safety and health, circular low-carbon development and recycling promotion, and prioritize the procurement and use of raw materials, products and services that benefit environmental protection, such as those saving energy, water and materials.