Low-carbon manufacturing, green factory

Since the launch of the Green Enterprise column, we have interviewed several companies with experience in green manufacturing, green technology, green public relations and green marketing. However, the question "Why should companies be green?" has never been raised. Its answer is implicit in the statement that companies must be green. Dr. William Yu, Climate Program Director of WWF Hong Kong (WWF), answers this question for us.

World Wide Fund for Nature Hong Kong is launching a Low Carbon Manufacturing Program (LCMP) in the Pearl River Delta, aiming to promote energy conservation and emission reduction in factories established in the Pearl River Delta with investment by Hong Kong companies.

What has the Low Carbon Manufacturing Program done so far?

We spent almost a full year designing tools for measuring carbon emissions, innovative technologies specific to the industry, and greenhouse gas management measures. These three components form the Low Carbon Manufacturing Program, or LCMP for short.

In the initial stage, we invited factories in the three industries of clothing, plastics and electronics to conduct the first phase of the pilot project. The Pearl River Delta is known as the world's factory. There are many large-scale factories set up by Hong Kong companies here. We feel it is necessary to carry out a low-carbon manufacturing plan here, and we hope to help them save energy and reduce emissions. Our pilot plants have reduced greenhouse gas emissions by 12% to 24%.

A survey conducted by the Federation of Hong Kong Industries shows that there are almost 55,000 factories in the Pearl River Delta where Hong Kong has invested capital. If they all participate in this plan, it is calculated that 74 million metric tons of carbon dioxide emissions can be reduced each year, which is more than Hong Kong's annual carbon dioxide emissions. emissions are even greater.

For businesses, we've developed a suite of tools to help them achieve improvements in national energy intensity targets. Our carbon audit consists of many parts, through which we can analyze which aspects of the plant are weak. This set of tools has a different design for each industry.

In terms of measurement method according to industry characteristics?

The standards for measuring carbon emissions in different industries are the same. However, the machines used for production in different industries are different, so the innovative technology part will be tailored according to the characteristics of the industry. First, we conduct carbon audits on companies participating in the low-carbon manufacturing program, and then propose improvement plans to them, and then we will grade it according to its scores, and the corresponding scores will be awarded primary, silver, gold and platinum respectively. grade labels, they will be approved to have the corresponding LCMP rating on the factory.

Label ratings will be based on standardized assessments of plant management systems and technologies. This set of tools is online, the system will automatically calculate, and companies can track their performance every year, which is very convenient.

Why are some industries of innovation and technology the most obvious?

On the one hand, innovation and technology involve not only changes to infrastructure, but technology-related innovations have strong industry characteristics. They have different manufacturing processes and different production equipment, which will of course affect their transformation and improvement. As far as I know, there are also different production technologies within the same industry, so the modification of equipment such as energy facilities needs to be tailor-made. On the other hand, innovative carbon reduction measures also have a large impact on changes in human behavior. If employees know why they need to save energy, why they need to reduce carbon, and how energy saving and emission reduction are related to climate change, it will be of great help to the entire production process.

How does the LCMP give professional advice?

We have two technology partners, the Hong Kong Productivity Council and Ecofys, a sustainable energy services and innovation company, who develop tools, measure and audit factories, and propose improvements.

How long have the existing pilot plants been piloted?

A few months to six months.

I would like to point out that the payback period for low carbon manufacturing improvements is much shorter than thought. Taking Lihua Garment Group as an example, they have implemented relevant measures in the existing workshops, carried out some equipment modifications, changed some lighting systems, optimized the manufacturing process, and set some energy-saving goals. There are 15 parts in total. The investment is about 3 million yuan, and the improvement can save the company 2.76 million yuan every year, and the return on investment is less than one and a half years. In the electronics industry, our pilot plant saved RMB 2.62 million, it implemented our 20 improvement proposals, and its payback period was also shorter than one and a half years.

According to the current pilot situation, which industry has a more severe emission reduction task?

We are currently piloting the three industries of clothing, plastics, and electronics. Next, we want to expand to more industries, such as toys and shoemaking. Papermaking is also our target industry, which consumes a lot of energy. I think they need to have some responsibility under the energy intensity requirements, maybe a lot. Although there are no specific figures at hand, this type of industry consumes a lot of electricity, and their carbon emissions are relatively high.

Companies say I'm just making a profit, why should I be green?

It should be said that green is a major trend. Low-carbon production is not only good for the earth, but also helps the competitiveness of factories, reduces costs, returns quickly, and is helpful to the brand and reputation of the manufacturer. Of course, our rating certification is factory-based, not product-based. We communicated with well-known brands such as Adidas and Nike and found that they are very concerned about their suppliers, supply chains, and manufacturing processes, especially their greenhouse gas emissions. In fact, as a social responsibility requirement, these big brands have to disclose their greenhouse gas emissions in their annual reports.

So we need to help companies recognize the need to improve their green competitiveness. In terms of brands, Europe and the United States began to disclose carbon emissions earlier than us. Our rating and certification system can help companies/factories build their brand value and enhance their competitiveness among European and American buyers.

I just mentioned that the payback period of low-carbon manufacturing is not long. Why are many companies not doing it?

Basically they don't have a strong understanding of carbon reduction at this stage, and this is not mandatory, unlike ISO in Europe. Companies need to deepen their understanding before they can invest. But now is a good time. The economic crisis has reduced the pressure on companies/factories to rush goods. They have time to optimize and review their competitiveness. We also hold seminars to help businesses realize this.

How to define a green enterprise?

They need to be very aware of their social responsibility, to see the trend towards low carbon manufacturing, and to be aware of greenhouse gas emissions. They need to really look at the impact of their production process, not just to emphasize that they are green in terms of public relations and marketing, but also to reduce the impact on the environment from the perspective of production concepts and manufacturing processes. Green is a broad concept, and low carbon has a closer relationship with climate change. We develop low-carbon production tools, low-carbon manufacturing plans, low-carbon offices, and we hope for a low-carbon life. Low carbon is an important concept in the future.