November 6, 2021, Shanghai – SGS China announced its cooperation with Microsoft to launch S-Carbon, the world’s first-ever dual-standard intelligent cloud carbon management platform, based on Microsoft Azure at the 4th China International Import Expo (CIIE). As a world- renowned company specializing in carbon inventory and audit, SGS developed S-Carbon by leveraging Microsoft Azure and its data storage, data analysis technology, adopting international ISO 14064-1 standard and Chinese national standards to quantitatively track carbon emissions performance. By effectively classification managing enterprises carbon targets, the platform helps enterprises across various industries enhance their international competitiveness, green financing opportunities, and brand influence in the context of carbon neutrality goal. EVE Energy Vice President attended S-Carbon’s launch ceremony at the CIIE as a representative of manufacturing enterprises.
Dr. Hou Yang, Corporate Vice President, Chairman, and CEO of Microsoft Greater China (Left), Dr. Sandy Hao, Managing Director of SGS China (Middle) and EVE Energy Vice President Sang Tian (Right)
Dr. Sandy Hao, Managing Director of SGS China, said, “With China striving towards the ‘30·60′ decarbonization goal, the domestic carbon emissions industry is in acceleration, which will lead to profound changes in China’s economic structure, ecological environment and energy structure. As an internationally recognized third-party testing, inspection and certification company, SGS is committed to providing professional low-carbon solutions for the value chain of various industries around the world with rich international experience and deep penetration into carbon management. To help enterprises to more scientifically, efficiently, accurately and conveniently manage and track the carbon performance of business partners upstream and downstream of the value chain, and improve the overall enterprises green competitiveness, SGS developed S-Carbon intelligent cloud carbon management platform based on Microsoft Intelligent Cloud. We believe that SGS’s expertise in carbon emission, combined with Microsoft’s world-leading cloud platform, will enable more Chinese companies to accelerate the implementation of their sustainable development strategies.”
Dr. Sandy Hao, Managing Director of SGS China
Dr. Hou Yang, Corporate Vice President, Chairman, and CEO of Microsoft Greater China, said, “The world reaches a consensus that we need to reduce carbon emissions, achieve carbon neutrality, and engage in sustainable development of environment and economy. In this mission, China is undoubtedly a key force leading global climate governance. Microsoft is dedicated to helping push forward extensive environmental and technological cooperation around the world. We have invested funds and technologies significantly and are working with partners, including SGS, to reduce carbon emissions and protect the environment. SGS’ S-Carbon platform will help more Chinese companies build efficient and reliable carbon management systems, enhance their green competitiveness, and help build a better future for all mankind.”
Dr. Hou Yang, Corporate Vice President, Chairman, and CEO of Microsoft Greater China
A digital carbon management platform built on the Intelligent Cloud
Developed by SGS, the S-Carbon digital carbon management platform is based on greenhouse gases emissions accounting and verification solutions, and a greenhouse gases emissions data management system, adopting an internationally-recognized method to quantify and present carbon emission performance. It identifies the most suitable area, reference data, and methods when calculating enterprise carbon emissions, with results compliant with the “Guidelines on GHG Emission Accounting and Reporting” issued by the Chinese regulatory authorities and requirement of international ISO 14064-1 guidelines on quantification and reporting. With S-Carbon, companies can more easily manage and track their established carbon emission reduction goal, as well as the carbon performance of business partners.
S-Carbon leverages Microsoft Azure as its operating platform as well as its data storage, data analysis, and other services. It can collect, manage, and evaluate different types of emissions data from the enterprise itself, the upstream and downstream supply chain, suppliers, and partners depending on specific purposes. Such all-digital management method can help significantly reduce the possibility of human error in the data storage and analysis process, greatly improve the security and reliability of carbon emission management, as well as boosting evaluation and audit efficiency.
At present, S-Carbon mainly provides services including supplier carbon emissions management, emissions data collection across the supply chain, replacing manual operation in carbon emission quantitative management, establishing and analyzing carbon emissions, and comparisons between actual numbers and specified targets. It produces two calculation results, to meet the criteria set out by Chinese and international standards.
Achieving the decarbonization goal and empowering enterprises’ green competitiveness
Last September, China announced its ‘30·60′ decarbonization goal. As part of the country’s 14th Five-Year Plan, the initiative stipulates that China will reach its peak carbon footprint by 2030 and achieve carbon neutrality by 2060. As China accelerates towards this ambitious goal, the country’s carbon emissions industry is in full bloom as more regions and industries participate in carbon emissions management. Around the world, Environmental, Social, and Corporate Governance (ESG) have also become a new driving force, with the disclosure of carbon management and related information key features.
For many companies, carbon management presents new challenges. In the process of calculating and managing carbon emissions, enterprises often encounter several recurring problems, such as a lack of understanding of the determination of carbon emissions boundary, a lack of clarity on carbon emissions reporting, and ambiguity in terms of carbon emissions calculations. In addition, it requires significant manpower, material resources, and energy to track carbon emissions along the entire supply chain.
Thanks to Microsoft Azure and other services, S-Carbon is able to manage an enterprise’s carbon reduction and carbon neutrality KPIs across complex supply chains and large suppliers. It can also monitor and analyze supplier performance against KPIs, providing reports and overviews. In addition, enterprises can leverage the calculations to participate in global projects such as the Scientific Carbon Target Initiative (SBTi), which can enhance opportunities for green financing and brand influence in the global market.
“For manufacturing enterprises in the energy industry, our products are widely used in carbon emission reduction fields, such as energy storage in new electric power, electric transportation, IoT, intelligent electricity supply. Accurate and efficient carbon management and certification system in accordance with international standards is a key guarantee for enterprises to achieve sustainable development in the global and Chinese market,” EVE Energy Vice President Sang Tian said.“ Cloud computing, big data, blockchain and other technological innovations will greatly improve the reliability, ease of use and operational efficiency of carbon management systems, and will truly promote the accelerated implementation of carbon management strategies across the value chain of more industries and enterprises. Therefore, we believe that S-Carbon powered by Microsoft Intelligent Cloud will greatly promote the sustainable development of the entire new energy industry, promote the whole automobile manufacturing industry to achieve green and decarbonization technology upgrading. In the future, we will also consider taking the lead in applying S-Carbon to decarbonization and energy saving management of the upstream and downstream of the supply chain, so as to comprehensively improve the carbon management of ourselves and the entire supply chain. We will take firm and steady steps together with SGS and Microsoft to promote and implement the decarbonization goals.”
EVE Energy Vice President Sang Tian
Microsoft joins hands with SGS China to build a sustainable future
SGS is an internationally-recognized inspection, verification, testing, and certification company. It has been named in the Dow Jones Sustainability Index for six consecutive years and the FTSE4Good Index Series for the third year. SGS China was founded in 1991 as a joint venture between SGS Group and China Standard Science and Technology Group. In China, SGS has been ranked No. 1 among the most trusted testing and certification companies for Chinese foreign trade companies for 15 consecutive years since 2007. In China, SGS has worked closely with the government, universities, carbon trading market, technology development institutions and carbon asset management institutions. At the same time, in the field of new energy, automotive, electronics, materials, agricultural and other industries, the SGS experts have also combined the characteristics of industries and enterprises to assist hundreds of enterprises in developing emission reduction strategies and targets based on their core priorities, and to formulate action plan for ” emission peak” and “carbon neutrality”. In the future, SGS is willing to work with partners around the world on green and sustainable journey to promote the harmony and prosperity of economy, society and environment.
Since 2012, Microsoft has implemented an internal carbon tax system and achieved its goal of carbon neutrality covering scope 1 and 2 emissions globally. In 2020, Microsoft started to expand of the internal carbon tax to “scope 3 emissions,” and announced its mission to become carbon negative by 2030 and eliminate all of the carbon ever emitted, from both direct and from electricity consumption, by the company since its founding in 1975 by 2050. Microsoft has set up a $1 billion Climate Innovation Fund to help accelerate the global development of carbon reduction, capture, and removal technologies. In the past year, Microsoft has reduced its carbon emissions by 6%, or 730,000 tons, by shifting to renewable energy and encouraging suppliers to reduce emissions. In addition, Microsoft is actively cooperating with leading partners such as SGS, Envision, Johnson Controls, Delta China, and Wood China to jointly leverage cloud computing, big data, and IoT technologies to build a zero-carbon future in the fields of carbon emissions, energy management, and intelligent buildings, creating a bright and sustainable future for all mankind.
Visitors are welcome to explore the Microsoft booth (4.1H B3-003) to explore and understand the S-Carbon digital carbon management platform developed by SGS China based on Microsoft Intelligent Cloud technology.
About Microsoft
Microsoft (NASDAQ: MSFT) enables digital transformation for the era of an intelligent cloud and an intelligent edge. Its mission is to empower every person and every organization on the planet to achieve more.
About SGS
We are SGS – the world’s leading testing, inspection and certification company. We are recognized as the global benchmark for quality and integrity. Our 93,000 employees operate a network of 2,600 offices and laboratories, working together to enable a better, safer and more interconnected world.
