3060 Mandatory Emission Control Against the backdrop of the “dual carbon” goals for 2030 and 2060, China's public utilities and energy companies are accelerating their low-carbon transformation. By 2021, 2,225 emitting entities had been incorporated into the national carbon market's regulatory framework. As the carbon market stabilizes its operations,the scope of industries covered by the national carbon market will gradually expand. Without implementing effective risk management and quality control strategies, enterprises will face increased operational and regulatory costs throughout this process.
Energy costs The policy introduced by the National Development and Reform Commission in 2020 to reduce corporate electricity costs has expired. Moreover, the subsidy of this policy was less than that of the September 2022 electricity reform. Corporate electricity costs have rigidly surged by 10-15%, while peak electricity prices are trending upward nationwide. Shanghai implemented new peak-period electricity pricing starting in 2023: - For industrial, commercial, and other two-part tariff users, as well as large industrial two-part tariff users, peak-period rates increased by 80% over off-peak rates. - For general industrial, commercial, and other single-part tariff users, peak-period rates increased by 20% over off-peak rates. This has caused a sharp surge in enterprises' energy costs.
ESG Brand Premium As ESG investing gains mainstream traction in global capital markets and domestic ESG initiatives accelerate, ESG disclosure has become a mandatory practice for listed companies. Among China's chain enterprises, 38 are publicly listed. In accordance with requirements from different stock exchanges, approximately 16 chain enterprises have published social responsibility, ESG, or sustainability reports based on various reporting frameworks. Over 500 private ESG green funds, with assets under management exceeding RMB 200 billion, are dedicated to investing in green stores certified by independent third parties (LEED, WELL).


























