345Abstract: With the professional consultation and technological empowerment of Carbonstop, Centurium Capital has completed tasks such as corporate carbon inventory, setting carbon neutrality goals, and planning pathways, embarking on a new journey to address climate change.
Recently, Centurium Capital, a leading private equity fund investment management company in China, officially announced its carbon neutrality roadmap and plans to achieve carbon neutrality in company operations by 2025 and in investment portfolio operations by 2050. Furthermore, Centurium Capital actively encourages employees to adopt low-carbon lifestyles and provides feasible implementation plans, aiming to reduce per capita employee carbon emissions by 25% by 2030.
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Company Profile
Centurium Capital is a leading private equity fund management company in China, focusing on investment opportunities in healthcare, hard technology, consumer upgrades, and enterprise services. Since its establishment, Centurium Capital has invested in approximately 30 companies, including Luckin Coffee, Taidong Biopharmaceutical Group, Aneng Logistics, and Tenstorrent. Centurium Capital adheres to the philosophy of "investment-driven transformation," making long-term investments in selected companies and entrepreneurs, helping them formulate effective business strategies and improve operational efficiency, promoting corporate growth and industry transformation.
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Case Background
To date, carbon peak and carbon neutrality have become global consensus, with all sectors actively responding to this non-violent challenge. The financial industry is also joining in, providing "fresh water at the source" and playing a pivotal role in achieving carbon neutrality.
Centurium Capital has integrated a series of ESG evaluation standards into its equity investment processes. To respond to the call for carbon peak and carbon neutrality and fully implement responsible investment principles, ESG, and sustainable development concepts, Centurium Capital began its exploration of carbon neutrality in 2021.
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Financial Institutions' Path to Carbon Neutrality
Carbonstop's rich practical experience and mature digital capabilities provided solutions for Centurium Capital's carbon neutrality journey. As one of the earlier private equity investment institutions to explore carbon neutrality in China, Centurium Capital also offers valuable references for the entire industry's carbon neutrality path.
Regarding how companies can achieve carbon neutrality, Carbonstop creatively proposed the "CREO" methodology, which is applied throughout the company's carbon neutrality process.
"CREO" Methodology:
- Calculating (Calculation): Quantifying carbon emissions is always the top priority in carbon emission management;
- Reducing (Reduction): After calculating carbon emissions, companies should first think about reducing emissions as much as possible rather than choosing offsetting and neutrality;
- Engaging (Engagement): Beyond the company's own emission reductions, how to mobilize ecosystem partners to reduce emissions together is where the real value lies;
- Offsetting (Offsetting): When companies have reduced emissions to the extent possible and there are still unavoidable emissions, they can choose to plant trees or purchase carbon credits to offset those emissions, achieving "zero emissions."
"Clarifying the Baseline"
If carbon neutrality is likened to a journey, quantifying carbon emissions is the starting point of the journey. No measurement, no management; no management, no carbon neutrality.
With the professional support of Carbonstop, Centurium Capital quickly completed boundary determination and emission source identification. However, in the data collection and calculation phase, due to the broad operational boundaries of Centurium Capital, involving employee travel, commuting, and diverse emission sources, the calculation of carbon emissions was challenging.
To address this, Carbon Cloud leveraged its database of over 150,000 carbon emission factors and intelligent, compliant algorithms to provide the "optimal solution" for Centurium Capital's carbon accounting. Additionally, Carbon Cloud introduced "online certification" services, achieving "dual connectivity" with global leading third-party certification agencies and calculation product report interfaces. From "accounting-report generation-submission of certification materials-completion of certification", companies enjoy an extremely smooth certification experience.
With the support of Carbon Cloud, the efficiency of corporate carbon emission accounting has improved by over 90%.
"Scientifically Setting Carbon Goals"
After accounting for its own carbon emissions, many companies face the challenge of not knowing how to "valueize" complex carbon data. To solve this problem, the first step is to set carbon neutrality goals and implementation pathways.
In the process of setting carbon neutrality goals for Centurium Capital, Carbonstop adopted the "CFOS" principle.
"CFOS" Principle:
- Calculating (Calculation): The first step in setting carbon neutrality goals is to quantify carbon emissions;
- Forecasting (Prediction): After quantification, attention should be paid to national/regional carbon reduction efforts, the company's own business trends, carbon reduction, carbon neutrality costs, and brand promotion effects;
- Overshooting (Exceeding): Companies should choose their year of neutrality based on national and industry carbon neutrality targets;
- Spreading (Dissemination): Proposing carbon neutrality goals early can demonstrate industry leadership.
Additionally, Carbonstop combined the company's business trends, carbon neutrality costs, and over 10 emission sources from Scope 1 to Scope 3 to create a customized carbon reduction pathway for Centurium Capital.
Through professional consultation and digital technology empowerment from Carbonstop, Centurium Capital completed its corporate carbon inventory, carbon neutrality goal setting, and implementation pathway planning.
In the future, Carbonstop will continue to provide smart, efficient, professional, and authoritative carbon neutrality services to the financial industry, empowering more companies to ride the "dual carbon" wind, advancing together towards a sustainable future.
