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Sustainability: how China is clamping down on exaggerated green claims in sectors from manufacturing to finance
- The mass balance approach makes recycling of chemicals work at scale, to enable the customers of the chemical industry to use sustainable feedstocks
- Hong Kong regulator requires ESG funds to disclose periodic assessments of how they incorporate green factors into their investment decisions
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At the Shanghai Chemical Industry Park in Caojing, some 50km (30 miles) south of downtown Shanghai, manufacturing of key materials used in automobiles, buildings, and consumer products at German chemicals maker Covestro is undergoing a sustainability transformation.
In 2021 the manufacturing site, its largest globally, became one of the company’s 11 sites certified to use the so-called mass balance approach for tracking the movement and usage of sustainable raw materials.
The mass balance approach allows the transition towards more sustainable chemicals work at scale, enabling the customers of the chemical industry to use products manufactured with recycled and renewable raw materials.
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It helps reduce the consumption of fossil resources, enable the transition to a more circular economy, and to ultimately reduce its carbon footprint.
08:42
The surprising hurdle slowing China’s switch to green energy
The surprising hurdle slowing China’s switch to green energy
Covestro plans to reduce its carbon footprint across its supply chain, and to this end, the company will unveil later this year reduction targets for the so-called Scope 3 greenhouse gas emissions – defined as those attributable to activities of its suppliers and consumers.
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It has already set a goal of achieving net zero emissions from its own operations and from purchased energy by 2035.
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