01 Background

Since the second half of 2023, the attention to carbon has been pushed to new heights with the promulgation and implementation of regulations such as the EU Battery Regulation and the Carbon Border Adjustment Mechanism (CBAM). Europe has always been at the forefront of carbon management, with the EU and European governments continuously strengthening their supervision over carbon emissions through legislation and other means, taking measures to encourage enterprises to reduce carbon emissions in order to achieve the goal of mitigating climate change. This trend has also driven other continental countries and organizations to pay more attention to carbon management, formulating corresponding laws and policies according to their own levels of productivity. The increase and strictness of carbon management laws and regulations undoubtedly reflect the growing concern of various countries and regions about climate change and environmental protection, and have also prompted enterprises and organizations across industries to pay more attention to the management of their own carbon emissions and carbon footprints.

Although stringent compliance requirements currently mainly come from the EU, with the trend of global production, this compliance pressure has also been transmitted to Chinese enterprises and organizations. In addition to being subject to mandatory compliance requirements, an increasing number of industry-leading enterprises have begun to attach importance to carbon management on their own initiative. They realize that effectively managing carbon emissions not only helps fulfill social responsibilities but can also bring business opportunities and competitive advantages to enterprises. By reducing carbon emissions, enterprises can not only minimize environmental impacts but also save energy costs, improve resource utilization efficiency, and meet consumers' growing awareness of environmental protection.

02 Challenges

In the above context, the attention and demand for carbon management by global enterprises continue to grow. However, as a new concept, carbon management remains unfamiliar to most enterprises and organizations. They lack a clear understanding of the core issues regarding what needs to be done, when to do it, and how to do it concerning carbon management. They also hope to learn from and reference the practices and achievements of other enterprises in the same industry in terms of carbon management.

Among the thousands of customers served by Carbonstop, there are also many cases like this. Some enterprises and organizations have started sporadic carbon management work due to reasons such as social responsibility, customer requirements, and compliance requirements. These works are usually completed in the form of independent projects, initiated by various departments, and typically aim to meet some short-term specific demands. From the perspective of the enterprise or organization, there is a lack of unified planning and management of carbon. Now, when these enterprises or organizations want to further advance systematic carbon management, they find it difficult to accurately assess their current level of carbon management and do not know what the path for building carbon management capabilities is, thus they cannot determine the direction in which the enterprise should move forward. At this point, on one hand, enterprises feel immense pressure from laws and regulations and competitors within the same industry, while on the other hand, they lack solutions for constructing carbon management, falling into a dilemma.

03  Solutions

To help enterprises out of their predicament, Carbonstop has launched the "Carbon Management Maturity Model Carbon Management Maturity Model CM3", aiming to solve the various confusions and challenges faced by enterprises in carbon management. This model will provide a framework for enterprises to understand, evaluate, and enhance their carbon management capabilities.

The carbon management capability of an enterprise can be defined as its ability and level in managing and controlling carbon emissions and implementing emission reduction measures. This concept reflects the degree of recognition by the enterprise of carbon emission issues, actions taken, and the maturity in reducing the carbon footprint.

Carbonstop's Carbon Management Maturity Model is derived from Carbonstop's original carbon neutrality methodology CREOS and combines the best management practices of top companies in the global carbon management field. It quantitatively measures the carbon management capabilities of enterprises from multiple aspects such as "quantification and accounting," "emission reduction," "value chain promotion," "offsetting," and "communication," dividing them into five levels from low to high, ranging from "initial level" to "leadership level."By conducting a carbon management maturity assessment, enterprises can accurately understand the current level of their carbon management capabilities. On this basis, enterprises can set target levels they wish to achieve, identify the gaps between the current and target levels, thereby clearly planning the direction of their carbon management work.

The Carbon Management Maturity Model holds significant meaning for helping enterprises cope with increasingly complex carbon management challenges and achieve the goal of sustainable development:

• First, the Carbon Management Maturity Model enables enterprises to comprehensively evaluate their current status and level in carbon management. By assessing aspects such as monitoring and evaluating carbon emissions, setting emission reduction targets and strategies, implementing emission reduction measures and carbon neutrality measures, as well as monitoring, evaluating, and reporting outcomes, enterprises can gain a clear understanding of their strengths and areas for improvement.
• Second, the Carbon Management Maturity Model aids enterprises in formulating strategies and plans. By understanding their strengths and areas for improvement, enterprises can develop more effective carbon management strategies and plans, clarify emission reduction targets, and formulate corresponding strategies and measures.
• Third, the Carbon Management Maturity Model helps enterprises enhance their competitiveness. As environmental awareness grows, consumers and investors are paying increasing attention to the environmental and social responsibility behaviors of enterprises. By improving carbon management capabilities, enterprises can not only reduce environmental impacts but also boost their image and win the recognition of consumers and investors.
• Lastly, the Carbon Management Maturity Model helps enterprises achieve resource conservation and cost reduction. Effective carbon management not only helps reduce environmental impacts but also brings economic benefits. By improving energy utilization efficiency, adopting clean energy, and improving production processes, enterprises can lower energy costs and operational costs, achieving effective utilization and conservation of resources.

04 Outlook

As a professional carbon management consulting and software company, Carbonstop is well aware of the importance and urgency of carbon management in today's world. We are not only committed to providing the most advanced carbon management tools and technologies but also constantly strive to transform practical experience and professional knowledge into actionable solutions, offering faster and better services to our clients. The Carbon Management Maturity Model will assist us in more quickly and effectively tailoring carbon management solutions for our clients. Through a deep understanding of clients' business models, carbon emission characteristics, and management needs, we can accurately grasp their current situation and challenges, providing precise guidance and support. With the aid of the Carbon Management Maturity Model, we can also help clients quickly find their direction for development and optimization paths. By evaluating and analyzing clients' carbon management practices, we can identify key issues and opportunities for improvement, offering targeted advice and solutions to help them make wise decisions. Through our efforts and professional services, we believe we can not only provide the best experience for our clients but also make greater contributions to the global carbon management cause. Let us join hands and move forward together towards a carbon-neutral future!