546On August 11th, at the Zhengu Beijing Office, Zhengu and Carbonstop jointly launched a zero-carbon organic mooncake. Yan Luhui, founder and CEO of Carbonstop; Zhang Xiangdong, chairman of Zhengu; and Zhang Youting, co-founder of Zhengu and an expert in the Organic Product Certification Working Group, engaged in a roundtable discussion on the theme of “the flavor and sentiment of zero-carbon organic mooncakes.” Zhao Huijuan, partner and director of the Product Base Department at Zhengu, hosted the discussion. The event was live-streamed through Zhengu’s video account, Carbonstop’s video account, and other channels, with online interactions and exchanges among Zhengu and Carbonstop’s sustainable partners.
In 2008, Zhengu collaborated with COFCO to introduce organic ingredient mooncakes. In 2015, Zhengu pushed for the inclusion of mooncakes in the organic product certification directory and launched the first certified organic mooncake. In 2021, Zhengu first introduced a zero-carbon organic mooncake. In 2022, Zhengu partnered with Carbonstop, receiving carbon neutrality technology support from Carbonstop to achieve net-zero emissions across all stages from raw material production to product delivery.
Founded in 2011, Carbonstop specializes in providing consulting, training, software, and carbon neutrality products and services for carbon emission management to enterprises and institutions. It is a state-level high-tech enterprise and a Zhongguancun high-tech enterprise. In 2021, Carbonstop received Series A funding from Hillhouse Capital and Sequoia China. On August 1, 2022, it completed its Series B financing round worth hundreds of millions, led by Sequoia China, with continued investment from Hillhouse Capital and Sequoia China.
01/Zhengu × Carbonstop Jointly Launch Zero-Carbon Organic Mooncakes
Zhengu and Carbonstop jointly launched a zero-carbon organic mooncake. Zhang Xiangdong and Yan Luhui signed the “Responsible Production and Consumption” initiative, aiming to provide healthy, moderate, and sustainable product choices to corporate clients and individual consumers through sharing zero-carbon organic delicacies like carbon-neutral organic mooncakes. They also look forward to working with more sustainable partners to promote responsible production and consumption, contribute to achieving carbon neutrality goals, and focus on harmonious development between humans and nature.
Discussing the joint launch of “carbon-neutral organic mooncakes” with Carbonstop and the partnership with Carbonstop, Zhang Xiangdong said, “Mooncakes express rich emotions; they reflect the culture, history, and respect inherent in food. Returning to the essence of food, mooncakes are delicious treats, so their fundamental attributes should be good food and good taste. Zhengu started producing mooncake products in 2008, and after 14 years of accumulation in product development and other aspects, we have the capability to share good food with our customers. Ingredients for the Zhengu × Carbonstop carbon-neutral organic mooncakes come from Zhengu Standard Global Farms: Danish organic cheese, Spanish Iberian ham, Peruvian chocolate, Yunnan organic black tea... We strive to ensure the natural flavors of the ingredients without excessive seasoning that could affect the natural taste of the food.” Zhengu and Carbonstop have jointly launched a carbon-neutral organic mooncake to create more value for Zhengu and Carbonstop’s clients and partners. We hope to build more connections between food, society, and environmental development, and together promote sustainable development.”
Yan Luhui, founder and CEO of Carbonstop, expressed confidence and anticipation regarding the partnership with Zhengu: “The connection between Carbonstop and Zhengu goes back a long way. I have met Zhang Xiangdong at some UN-related climate conferences before, and we know about each other's industries and fields. This time, Carbonstop provided carbon neutrality technology support to Zhengu to achieve net-zero emissions for all Zhengu products. The joint launch of carbon-neutral organic mooncakes by Carbonstop and Zhengu truly combines our respective products and businesses closely. Globally, advancing carbon neutrality goals and taking proactive climate actions are imperative. We both look forward to leveraging our strengths in the current environment and through deeper cooperation and exchanges in various industries and fields, to promote sustainable development. We hope that the Zhengu × Carbonstop carbon-neutral organic mooncakes will allow people to enjoy good food and feel the direct connection between enterprises, individuals, and social and environmental development. Carbonstop and Zhengu will continue to deepen our cooperation and provide better products and services to our clients and partners.
02/Promoting Value Connection and Communication for Sustainable Social and Environmental Development
During the roundtable discussion, questions raised by customers and consumers about “how organic mooncakes achieve carbon neutrality,” “how to ensure the transparency of carbon-neutral products,” and “how companies should advance their carbon neutrality goals” were addressed by Yan Luhui, Zhang Xiangdong, and Zhang Youting, who shared their respective views. Sustainable partners of Zhengu and Carbonstop also participated in the roundtable discussion via the live streaming platform.
Q1 | How is a Carbon-Neutral Mooncake Achieved?
Yan Luhui
Product carbon emissions typically include raw materials, processing and manufacturing, transportation and distribution, and waste disposal after use. By tracking carbon emission data throughout the entire chain, we can achieve a life-cycle assessment from “cradle to gate.”
For the Zhengu × Carbonstop joint mooncake, a single mooncake weighs 60g, and its carbon footprint is approximately 160g. Raw materials, packaging, and transportation are the main sources of carbon emissions.
Why can it be called a carbon-neutral mooncake? First, the entire lifecycle or part of the lifecycle must achieve emission reductions. After reducing emissions to a certain extent, any remaining emissions that cannot be reduced further can be offset through offsetting mechanisms, such as forest carbon sinks or wind energy projects, to absorb or offset these residual emissions, thereby achieving true net-zero emissions, which we refer to as carbon neutrality. For example, through forest carbon sinks or wind energy projects, the remaining emissions can be absorbed or offset.
Zhang Youting
As Mr. Yan mentioned, first, we reduce emissions through sustainable production practices, such as adhering to organic farming methods, using eco-friendly materials, and FSC-certified paper. Then, we conduct carbon emission calculations for all relevant stages of the mooncake, from raw material production to delivery. Moreover, there is still room for improving our emission reduction capabilities, which will require some time to implement, and even additional efforts to explore new reduction methods, such as adding solar projects on our farms.
Zhao Huijuan
Regarding the mooncake ingredients, the Zhengu × Carbonstop carbon-neutral organic mooncakes use over 30 types of ingredients. When selecting ingredients, we prioritize carbon-neutral options, such as carbon-neutral organic beef from Zhengu's Australian organic farm, carbon-neutral sea salt dark chocolate from Peru, and carbon-neutral organic sugar from Brazil. These three ingredients have achieved carbon neutrality.
Q2 | Is the Carbon-Neutral Organic Mooncake Just a Marketing Gimmick?
Zhang Xiangdong
Mr. Yan mentioned that the average carbon emission of a single mooncake is 160g. This year, we have made efforts and improvements in both the product and packaging. We introduced a plant-based packaging made from sugarcane residue, which has a slightly lower carbon emission of 155.5g.
When Zhengu first shared carbon-neutral organic mooncakes in 2021, due to our limited communication capabilities, some consumers had doubts about whether we were just using it as a marketing gimmick. This year, as we launch this product again, I would like to share some data for reference.
We calculated the overall emissions and, without considering price fluctuations in the carbon credit market, based on the carbon credits purchased by Zhengu at the time, the average cost of carbon credits for a single mooncake is about 0.04 yuan (less than 0.01 yuan for two mooncakes). Therefore, the cost of carbon credits for mooncakes is actually a very small part of the total investment. However, our team has invested a lot of effort in the early stages of the project, including our own calculations and communication with Carbonstop, which required considerable time and resources.
Returning to the question of why we produce carbon-neutral organic mooncakes. First, for food, taste and flavor are paramount. Whether we share Colombian Geisha coffee, Iberian ham, or Peruvian chocolate with our customers, our goal is to provide good food and make it easier for them to experience and appreciate food and life. On this basis, we strive to express the rich value and connotations of food and connect with our customers to promote efficient social development, which is a meaningful endeavor.
Yan Luhui
On September 22, 2020, our country first announced its carbon peak and carbon neutrality goals to the world. Since then, both state-owned enterprises and large private enterprises, including tech companies, have set their own carbon neutrality goals. According to our rough estimates, about 1,000 companies nationwide have set carbon neutrality or emission reduction goals.
The whole society is moving towards the goal of carbon neutrality, launching a series of production and business activities around this issue, which is a big trend we must follow. For enterprises in the food industry, it is also an important direction that needs to be promoted together. Therefore, we see many domestic and foreign enterprises, especially some leading companies, making efforts towards carbon neutrality.
Q3 ｜What is the practice path for product carbon neutrality goals?
Luhui Yan
A product should adopt more emission reduction technologies from all aspects and stages of its entire or semi-life cycle as much as possible to achieve emission reductions. This is the foundation for achieving carbon neutrality. Only when reductions are made to the point where no further reductions can be achieved, then offsetting is done to ultimately achieve carbon neutrality. In this process, we can refer to the "Carbon Neutrality Practice Methodology," also known as the CREOS methodology, to guide us in advancing the realization of our carbon neutrality goals step by step.
- C stands for Calculating “calculation”
This is the first step in the path to carbon neutrality. Only after calculation can we clearly know the carbon emissions produced by raw materials, processing and manufacturing, or other different stages.
- R represents Reducing “reduction”
Only on the basis of the first step's calculations can we proceed to the second step of "reduction." Reduction is very critical; the entire industry and society need to find their own leverage points for reduction to possibly achieve carbon neutrality.
- E is Engaging, meaning to drive involvement
Taking our co-branded carbon-neutral organic mooncake as an example, every corporate partner or individual consumer who buys this mooncake becomes an ambassador for carbon neutrality and can engage more people in taking action to participate in emission reductions and carbon neutrality.
- O is Offsetting, representing offsetting
So this step involves actually carrying out the offsetting to balance those carbon emissions that cannot be reduced any further at present.
- S stands for Spreading, meaning dissemination
This step is also very important in our process of achieving carbon neutrality. Whether it's a company, event, or specific product aiming for carbon neutrality, effective communication must be established to spread the message, which significantly boosts brand competitiveness and the realization of carbon neutrality goals.
Therefore, based on such a methodology, applying this set of methodologies to the full or semi-life cycle of product carbon neutrality makes the achievement of carbon neutrality goals more efficient. The CREOS methodology is equally applicable to various challenges and problems that companies face in promoting carbon neutrality goals.
As long as specific issues are placed within the framework of this methodology, all problems will be solved smoothly. Taking the Offsetting stage as a specific example, the central principle is"offsetting is a last resort but must be realized." The premise of offsetting is that reductions have already been achieved to the extent that no further reductions can be made, and only external support can be relied upon to achieve offsetting. There are also voices internationally suggesting that excessive reliance on offsetting may not be ideal. Therefore, one must strive to achieve reductions first, and then for the emissions that cannot be reduced through effort, carbon sinks and other methods must be used to achieve final offsetting.
Regarding the aspect of dissemination, there is still significant room for improvement for companies to promote information through different forms and channels. Including formats like today's live online session, these can also serve as ways to enhance communication and promote dissemination.
Xiangdong Zhang
Luhui's sharing just now actually helps us communicate about products. The information about the CREOS methodology mentioned by Luhui, I also want to share some insights here.
My personal understanding of mooncakes is that they are simply a kind of pastry, which is one aspect of their 'simple' nature as food. We had a previous article titled 'Redefining Mooncakes?', at that time some colleagues discussed this topic with me, feeling that the title was too grand and might seem exaggerated. I want to explain this here; mooncakes carry rich emotional expressions and play a significant role in life as food.
Speaking of mooncakes, though they are simple food, they also have a complex side. This complexity includes the carbon accounting provided by Carbonstop, through which we seize the opportunity to convey relevant information or value to customers, doing more in terms of 'engagement' or 'dissemination.' This is an interesting topic.So some corporate partners choose our mooncakes not solely for the mooncakes themselves but to express a unique sentiment.
"Redefining Mooncakes" does not emphasize redefinition itself. We hope to use such an expression to have more interaction, communication, and thinking with everyone. According to what Luhui shared, we aim to do more in the aspect of 'dissemination.' Mooncakes can express rich emotions; they are foods that embody culture, history, and respect. Redefining mooncakes, we want to share this good mooncake with everyone.
Q4｜What is an organic mooncake? What is the relationship between organic and carbon neutrality?
You Ting Zhang
Actually, for a period of time, mooncakes could not obtain China's organic certification. To standardize the production and management of organic products, the National Certification and Accreditation Administration and other higher-level authorities specially formulated an organic product certification directory and stipulated that only products listed in the certification directory could obtain organic certification.
Therefore, in 2015, we pushed for the inclusion of mooncakes in the organic product certification directory to strengthen the standardized management of the entire organic mooncake industry and launched the first organic mooncake.
In addition, the production requirements for organic products dictate that we must carefully select ingredients. Looking at the ingredient list of Zhenggu Organic Mooncakes, there are over 30 kinds of organic ingredients, each of which can be clearly identified; carmine extracted from plants is also a natural pigment, used only for stamping on the skin of the mooncake; no preservatives are added, and the shelf life is only 30 days. This is our basic demand for providing good food to customers.
Speaking of the relationship between organic and carbon neutrality, I believe there is a high degree of alignment in concept. Organic production particularly emphasizes environmentally friendly production methods, which for consumers, represents a sustainable consumption philosophy. Just now, Mr. Luhui specifically introduced how carbon-neutral mooncakes are achieved. After producing mooncakes through organic methods, they undergo accounting and complete offsetting. From the perspective of food, this can promote consumers' awareness of sustainably produced food.
Q5 ｜ What are the advantages of carbon-labeled products? How to verify the authenticity of carbon-neutral products?
Xiangdong Zhang
We all know that the UK is one of the countries that started researching carbon neutrality earlier. Carbon Trust, a global consulting firm in the field of carbon neutrality established in the UK, launched the world's first batch of carbon-labeled products in 2007,I wonder if Luhui bought any carbon-labeled products during your stay in the UK?
Luhui Yan
During my study abroad in the UK, I saw some products with carbon labels at Tesco supermarket, similar to the little footprints on our co-branded mooncake packaging, which is called the "carbon footprint." It indicates the carbon emission data of the product at various stages, including the production of raw materials, product distribution, etc. By presenting this data, consumers can clearly understand the carbon emissions generated by this product at different stages.
The greater significance of displaying this information lies in letting consumers perceive that the enterprise or product is paying attention to this matter, paying attention to the carbon footprint, and paying attention to the impact on the environment. So this is also a way of information transparency, telling consumers that more efforts will be made in the future to push the product to achieve more carbon reduction.
This concrete expression is a good method, but there can be more innovations. For example, the information contained in a carbon footprint icon is limited, but links can be added to provide information on how the product reduces emissions throughout (or part of) its life cycle and how it plans to achieve carbon neutrality. In this way, the content conveyed is very complete and rich.
Xiangdong Zhang
Thank you for Luhui's sharing. The UK not only started research on carbon neutrality earlier but also has accumulated rich experience in the field of organic agriculture.
In May 2013, Zhenggu organized a Chinese organic delegation to visit Prince Charles's organic farm in the UK. I was particularly impressed by the farm manager David, who enthusiastically introduced to us that since the implementation of organic farming practices, some insects have reappeared, and birds and other animals have also settled on the farm, improving the entire ecological environment. In fact, not only the farm itself, but their commercialization has also been done very well. They sell some of the products produced on the farm in supermarkets under the brand name Dutchy Originals.
For all these years, Zhenggu has always adhered to the principle of providing quality products and services to our customers. At the same time, in our entire production activities, we integrate the four principles of health, ecology, fairness, and care of organic agriculture into our operations, hoping to coordinate producers, consumers, the environment and ecosystems, and all human beings and other species, to achieve better coexistence. Especially by combining with matters related to carbon through partnerships with Carbonstop, helping society improve efficiency and achieve sustainable development.
Huijuan Zhao
Returning to our cooperation, apart from Zhenggu Organic Mooncakes, Zhenggu Cavell Geisha Coffee, 100% Iberian Ham, Zhenggu Ouroland Organic Cheese, and other products all come with traceability labels, which are supported by Carbonstop technology.
Xiangdong Zhang
The cooperation between Zhenggu and Carbonstop stems from our shared values and missions, and our collaboration is also a process of mutual learning and promotion. We have deepened our cooperation since last year, asking Carbonstop to help us with carbon accounting, carbon emission verification, and so on.However, there is a significant challenge, which is the credibility of these carbon footprint labels, which is also a concern for our customers.
Luhui Yan
When it comes to carbon accounting, it is essential to have a scientific and authoritative standard to refer to. Only by establishing common criteria can we produce results that are convincing. Moreover, both Carbonstop and Zhenggu are companies established for over ten years, and we take responsibility for our brands, our respective career ideals, and missions, so it is something we must do well. Also, during this process, we will introduce oversight from other partners and verification of the data to make the data as transparent as possible, and to build more confidence among participants.
03/Zhenggu × Carbonstop - Walking Together, Creating Value Together
Climate change, biodiversity loss, and environmental pollution are key issues affecting human survival and development, and are important topics that unite all individuals, enterprises, and institutions.
A special report by the Intergovernmental Panel on Climate Change (IPCC) indicates that approximately 21-37% of greenhouse gas (GHG) emissions can be attributed to food systems. The OECD-FAO Agricultural Outlook 2020-2029, jointly released by the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization of the United Nations (FAO), predicts that with the population increasing to 10 billion, greenhouse gas emissions related to food will increase by two-thirds.
There is significant potential for emission reductions at every stage of food production, Xiangdong Zhang added,"For Zhenggu, we create value for our customers through our products and services. We strive to contribute to emission reduction and carbon reduction through our products and services. Talking about carbon reduction without products is meaningless for us. Zhenggu started zero-carbon products in 2012, and our Cavell chocolate offsets carbon emissions from planting and production through afforestation projects in Peru's San Martin and Amazon regions. Collaborating with Carbonstop to share this co-branded carbon-neutral organic mooncake brings us back to the core of our products and services, creating new value for our customers."
