LEAD Commits to Achieving Carbon Neutrality in Core Operations by 2035

Addressing climate change has become a shared goal among governments and businesses. The United Nations Environment Programme’s latest "Emissions Gap Report 2024" indicates that current climate policies will lead to a global average temperature increase of over 3°C by the end of this century compared to pre-industrial levels, more than double the target set in the Paris Agreement. The urgency for action is undeniable. The recent 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in Baku, Azerbaijan, reaffirmed the global consensus, with the formation of the "Baku Climate Solidarity Pact" to guide nations in bridging the gap between climate goals and tangible outcomes.

In response, LEAD announced its carbon neutrality roadmap, focusing on four key pillars: Energy Efficiency, Energy Electrification, Clean Energy Utilization, and Digitalization of Energy Management. Through technological innovation and the application of intelligent manufacturing, LEAD is committed to enhancing operational efficiency and significantly reducing carbon emissions, contributing to the global climate change effort.

LEAD’s commitment includes reaching peak carbon emissions in its core operations by 2030 and achieving carbon neutrality in these operations by 2035. The company is also dedicated to reducing emissions throughout its entire value chain and providing transparent, regular updates on its progress. By turning these green commitments into measurable actions, LEAD aims to make a meaningful contribution to global climate initiatives.

Empowering Sustainability: LEAD’s Green Evolution Across the Entire Value Chain

Over the past year, LEAD completed a comprehensive carbon audit for Scope 1, 2, and 3 emissions and obtained ISO 14064 greenhouse gas verification certification. The company also established an internal carbon measurement system and a transparent disclosure mechanism for setting and tracking targets. The audit revealed that the total greenhouse gas emissions from LEAD’s operations in 2023 amounted to 28,474 tons of CO2 equivalent (tCO2e). To achieve its carbon neutrality goals, LEAD is actively implementing a range of measures:

Product-Level Initiatives: LEAD is dedicated to green product innovation and optimization. By substituting materials that have high carbon footprints, reducing product consumables, and optimizing manufacturing processes, the company aims to reduce the carbon footprint of its products from the design stage onward.

LEAD is also enhancing carbon footprint measurement and verification efforts. This year, following international standards such as ISO 14067 and PAS 2050, the company calculated the carbon footprint of its flagship product, the LIB Electrode Cutting and Stacking Machine (LBECS014T). The result was a footprint of 162.57 tons of CO2 equivalent (tCO2e) per functional unit.

Operational-Level Measures: LEAD is embracing digital transformation in energy management by enhancing its carbon management systems and incorporating smart monitoring tools. LEAD has implemented smart facilities like online substation monitoring, remote monitoring for air compressors, and smart forklift management. Additionally, the company is expanding photovoltaic (PV) capacity by utilizing rooftops and carport areas at production bases for distributed solar power systems. PV capacity is expected to exceed 8.8 megawatts (MWh) by 2025, with plans to cover 100% of usable rooftop areas by 2027, supporting the shift from carbon-intensive to low-carbon energy sources.

LEAD advances energy electrification and efficiency by transitioning to electric power, optimizing energy sources, and conducting regular audits, equipment assessments, and system optimizations to enhance energy savings. The company’s fleet of engineering vehicles in China, including forklifts, pallet trucks, and aerial work platforms, is now fully electrified, further reducing operational carbon emissions. To offset residual emissions and achieve full carbon neutrality, LEAD also invests in green credits. In 2024, LEAD offset 7,000 MWh of electricity-related emissions from the previous year through the purchase of International Renewable Energy Certificates (I-REC).

Addressing Indirect Emissions Across the Value Chain: Beyond internal operations, LEAD is driving sustainability across its value chain. The company is creating "full value chain + full lifecycle" new intelligent manufacturing solutions, actively assisting customers with technological transformation and low-carbon transitions. LEAD helps customers reduce energy consumption and emissions throughout the entire production by utilizing its self-developed technologies to optimize energy management, air compression, and energy monitoring systems. In addition, LEAD will gradually establish a low-carbon supply chain system by implementing carbon emission tracking mechanisms and designing green procurement strategies to enhance carbon management across its network.

Wang Yanqing, Chairman of LEAD Group, emphasized the company’s commitment: “The new energy equipment industry plays a crucial role in addressing climate change and facilitating the transition to sustainable energy. Earlier this year, LEAD officially joined the UN Global Compact, strengthening our commitment to sustainability. We will continue to encourage innovation and collaborate with customers, partners, and employees to drive a green transformation. LEAD is committed to spearheading a true green revolution in new energy intelligent manufacturing.”