Cut emissions through dual-carbon strategy

BTR New Material Group Co., Ltd. (BTR), headquartered in China with production sites domestically and overseas in Indonesia and Morocco, is a leading manufacturer of lithium-ion battery anode materials. BTR is committed to “building a better world” and implementing a green, low-carbon development philosophy. The company faces decarbonization challenges across energy-intensive production processes, supply chain emissions, and renewable energy adoption. To address these, BTR has adopted clean energy, optimized processes, upgraded equipment, and improved energy management. Building on these measures, it designed a dual-carbon action plan with comprehensive carbon footprint assessment, clear targets, and precise emission reduction measures, establishing a structured and effective management framework aligned with the World Business Council for Sustainable Development (WBCSD) Net Zero Guidebook 2025.

1) Carbon Footprint Mapping

The foundational step in BTR's carbon reduction strategy is establishing a complete understanding of corporate carbon emissions, referred to as “carbon footprint mapping.” Since 2014, BTR has conducted annual carbon emission verifications across its production bases. Starting with a single facility, the program expanded to cover 16 sites by 2024. The scope of assessment broadened from direct and indirect emissions to a full value-chain inventory, encompassing raw material procurement, manufacturing, logistics, and waste treatment.

• Assessing the Current Status: In 2024, BTR conducted a double materiality assessment through stakeholder surveys and interviews, identifying 19 key issues. Climate change emerged as a critical concern, scoring highly in both financial and impact materiality. In response to investor and public expectations, BTR established a regular evaluation mechanism to support risk management and strategic transformation.

• From Chain to Cycle: BTR introduced a closed-loop system called “From Chain to Cycle” to recover spent anode powder and cathode black mass from discarded batteries and electrode scraps, regenerating them into functional anode and cathode materials. To address green trade barriers, BTR is expanding overseas production bases in Indonesia and Morocco, leveraging market leadership, technological strength, and strategic positioning.

• Full Value-Chain Inventory: BTR applies internationally recognized standards, including ISO 14064 and the Greenhouse Gas Protocol, to quantify direct emissions (Scope 1), energy-related indirect emissions (Scope 2), and select upstream value-chain emissions (Scope 3). Through data collection, site surveys, and expert evaluation, the company identifies high-emission hotspots to inform targeted reduction strategies.

• Identifying Key Emission Sources: The inventory revealed upstream suppliers, internal production processes such as graphitization and carbonization, and logistics as primary emission sources. BTR developed tailored emission reduction plans, prioritizing energy-intensive internal processes while promoting energy conservation and emission reduction across the supply chain.

• Establishing a Carbon Emission Inventory: By mapping its carbon footprint, BTR built a detailed carbon emission inventory clarifying volume, intensity, and reduction potential at each operational stage. This foundational work supports goal-setting and precision emission reduction initiatives.

Figure 1: LCA Footprint Platform

2) Net-Zero Roadmap

BTR aligns with the Paris Agreement’s temperature control target and avoids investments in fossil fuel expansion. Based on preliminary carbon accounting, it established a core framework with phased quantitative targets and evaluation criteria for each key component. Carbon performance is regularly assessed to inform management decisions.

• Core Framework BTR set strategic carbon neutrality goals: reduce operational carbon emissions by 80% by 2030, achieve operational carbon neutrality (Scope 1 and 2) by 2040, and achieve full value chain carbon neutrality (Scope 1, 2, and 3) by 2050. By 2030, targets include:

  • Sourcing 90% of electricity from renewables

  • Establishing nine carbon-neutral plants

  • Reducing product carbon footprint by 30%

  • Increasing recycled material usage to 30% in cathode and 15% in anode production

  • Reducing key raw material suppliers’ product carbon footprint by 30%

  • Achieving 100% ESG audit coverage for major suppliers

• Carbon Performance Evaluation Quantified carbon reduction targets are integrated into performance management systems. The ESG Management Department leads group-wide efforts to reduce carbon emissions by 10%. Production sites are tasked with cutting carbon intensity per unit product by 5% and achieving 30% renewable energy use. The procurement team is responsible for a 5% reduction in carbon intensity of key raw materials per unit product. Cross-departmental collaboration ensures coordinated progress toward decarbonization goals.

Figure 2: Photovoltaic Project at Jiangsu Base

3) Targeted Carbon Emission Reduction

Guided by clear carbon targets, BTR implements precise emission reduction measures across energy structure optimization, process improvements, supply chain management, and database development.

• Action Plans Development: BTR established a three-tier governance structure spanning decision-making, management, and implementation. In 2024, an ESG Management Department was formalized to oversee ESG initiatives. Specialized training on carbon peak and carbon neutrality engaged over 100 senior managers, strengthening foundational carbon management capabilities.

• Energy Structure Optimization:

  • Replacing fossil fuels, e.g., substituting coal-fired boilers with electric heating systems at the Jixi plant

  • Building distributed photovoltaic stations for self-consumption: 21 MW installed capacity generating 16.88 GWh annually by 2024

  • Procuring renewable electricity: 28% of total power in 2024, with several plants operating on 100% green power, reducing emissions by approximately 55,000 tCO₂e

• Technology & Energy Management: Energy efficiency improvements include high-efficiency kilns, optimized graphitization power schedules, waste heat recovery from air compressors, and large-scale crushing equipment. An energy management system monitors real-time consumption, enabling prompt anomaly detection. These measures reduced emissions by 15,000 tCO₂e in 2024.

• Green Supply Chain Management: BTR extends carbon management to suppliers, promoting low-carbon raw materials, logistics electrification, and multimodal transport. In 2024, 230 supplier audits were conducted, with 100% ESG risk assessment coverage for new key material suppliers and six ESG training sessions for 341 suppliers. BTR was recognized as a “National Green Supply Chain Management Enterprise.”

• Carbon Offsets & Neutrality: For residual emissions, BTR invests in renewable energy projects. Carbon neutrality is planned for two plants by 2026 and nine plants by 2030.

• Database Development: BTR developed a product carbon footprint data management system, verified 64 products, and applies big data analysis to identify reduction opportunities and enable continuous monitoring.

4) Carbon Performance Reporting

BTR prepares sustainability reports addressing 19 key stakeholder concerns, aligning with the Beijing Stock Exchange’s Continuous Supervisory Guidelines No. 11, Global Reporting Initiative Standards 2021, Sustainable Development Goals, and mainstream ESG rating criteria. Participation in CDP and EcoVadis ratings supports transparency and continuous improvement.

5) Beyond Carbon Impact

BTR strengthens internal emission reduction foundations and invests externally in clean energy and biodiversity to contribute to climate action beyond operational boundaries.

• Climate-Related Risks: Regular climate risk assessments, property and business interruption insurance, environmental facility upgrades, and compliance with regulatory authorities enhance resilience. In 2025, BTR earned a Grade B in Sichuan Province’s Heavy Pollution Weather Performance Evaluation, demonstrating ultra-low emissions in graphitization operations.

• Biodiversity Protection: BTR engages in afforestation and ecological restoration, planting over 2,000 trees globally and restoring 210,000 m² of vegetation at the Jixi mining area, including 50,000 Mongolian pines. Local habitats for species such as the Chinese Merganser and Red-billed Leiothrix are preserved.

• Clean Energy Investment: In partnership with China General Nuclear Power Group, BTR won a direct green electricity project in Yunnan, including a 57.42 MW solar project and a 15 MW wind farm with two 35 kV direct-connection lines.

6) Carbon Standard Development

BTR established internal carbon management protocols aligned with ISO 14064 and contributes to industry standards for carbon footprint accounting and zero-carbon factory certification. It provides technical support, training, and audits to upstream suppliers to advance collective carbon neutrality.

Sustainability Impact

Climate

BTR’s dual-carbon initiative targets Scope 1 (direct emissions), Scope 2 (energy-related indirect emissions), and Scope 3 (selected upstream value-chain emissions, including Category 2: Capital Goods).

Through energy-saving technological upgrades and sourcing renewable electricity, BTR achieved a total reduction of 70,629.81 tCO₂e in 2024. Renewable energy accounted for approximately 28% of total electricity consumption, reducing operational emissions by roughly 55,000 tCO₂e. Improvements in internal processes and energy management further lowered emissions by 15,000 tCO₂e.

Emissions intensity improved, with greenhouse gas emissions measured at 462 tCO₂e per million USD revenue. Carbon emissions per unit product decreased by approximately 20%, demonstrating measurable reductions across the company’s production and supply chain operations.

Nature

BTR’s initiative reduces negative impacts on ecosystems and biodiversity through afforestation, ecological restoration, and careful operational planning. Over 2,000 trees, including osmanthus and photinia, were planted globally.

At the Jixi mining area, BTR restored 210,000 m² of vegetation, backfilled approximately 57,000 m³ of excavated land, and planted over 50,000 Mongolian pines, mitigating soil erosion and land subsidence while restoring ecological functions.

The company applies biodiversity impact assessment tools to identify local species and protected areas near operations, optimizing facility layouts and production boundaries to protect key habitats for species such as the Chinese Merganser and Red-billed Leiothrix.

Social

BTR actively contributes to social responsibility through rural revitalization and charitable initiatives. In 2024, the company invested approximately $70,000/year in rural programs, including building community libraries and supporting the “Free Lunch” initiative.

For social welfare, BTR allocated around $143,000/year to aid employees affected by floods and support education in underdeveloped areas of Indonesia. Employee volunteering reached 133 participations, creating a systematic model that combines financial support with hands-on engagement.

These initiatives strengthen community resilience, support local development, and embed social responsibility within the company’s operations.

Business Impact

Benefits

BTR’s green technology research and development addresses client demand for low-carbon products and mitigates future carbon pricing risks. These efforts enhance brand differentiation, enabling market premium positioning and strengthening sustainable growth beyond compliance.

Through energy transition initiatives, including self-built photovoltaic projects and participation in green power trading, BTR saved approximately $3.9 million/year—with $240,000/year from photovoltaic projects and $3.66 million/year from green power trading. These measures reduce emissions while enhancing energy sustainability and market competitiveness.

Costs

BTR invests approximately $31.32 million/year in R&D for high-performance, low-carbon footprint materials targeting sectors such as new energy and green transportation. Energy transition initiatives require about $107.24 million/year. Scaling green power usage helps mitigate traditional energy price volatility, reducing near-term costs and delivering mid-to-long-term savings.

Impact beyond sustainability and business

Co-benefits

• Social contributions: BTR invested approximately $70K/year in rural programs, including community libraries and “Free Lunch” initiatives, and $143K/year for social welfare, aiding employees affected by floods and supporting education in underdeveloped areas of Indonesia.

• Employee engagement: 133 employee volunteering participations, combining financial support and hands-on initiatives.

• Biodiversity protection: Over 2,000 trees planted globally; ecological restoration in mining areas including 210,000 m² vegetation restored and over 50,000 Mongolian pines planted.

• Clean energy leadership: Participation in utility-scale solar and wind projects, advancing direct green electricity adoption and contributing to regional net-zero goals.

Typical business profile

This initiative is most relevant for companies in the new energy materials sector, specifically those manufacturing lithium-ion battery anode and cathode materials. It applies to organizations seeking low-carbon transition, energy efficiency, and supply chain decarbonization, and to companies with operations across multiple sites or countries. The initiative is suitable for businesses at mid-to-advanced stages of decarbonization, particularly those aiming to achieve carbon neutrality across Scope 1, 2, and select Scope 3 emissions. Geographically, BTR operates in China, with production expansion in Indonesia and Morocco, reflecting relevance for companies with domestic and international production bases.

Approach

BTR’s dual-carbon initiative is implemented through the following steps:

1. Carbon Footprint Mapping – Conduct annual verification across sites, quantify Scope 1, 2, and select Scope 3 emissions, identify key emission sources, and build a detailed carbon inventory.

2. Net-Zero Roadmap – Set operational and full value chain carbon neutrality targets, define phased quantitative goals, and integrate targets into performance management systems.

3. Emission Reduction Measures – Optimize energy structure, upgrade technology and energy management, implement low-carbon supply chain practices, and invest in carbon offsets.

4. Performance Reporting – Publish sustainability reports aligned with local and global standards and participate in external ESG ratings.

5. Beyond Carbon & Standard Development – Address climate risks, protect biodiversity, invest in clean energy, and support industry-wide carbon standards and supplier engagement.

Stakeholders involved

• Project Leads: ESG Management Department, corporate leadership team

• Company Functions: Operations, Procurement, Production, R&D, Sustainability/ESG office

• Main Providers: Renewable energy partners (e.g., China General Nuclear Power Group), technology providers for energy efficiency and material regeneration

• Other: Suppliers (230 supplier audits in 2024), external rating organizations (CDP, EcoVadis), local regulatory authorities

Key parameters to consider

• Initiative maturity: Well-established, systematically implemented since 2014 with annual verification; uses recognized standards (ISO 14064, GHG Protocol).

• Technical constraints / pre-requisites: Requires carbon accounting capabilities, renewable energy access, energy management systems, and supplier engagement programs.

• Geographical relevance: Implemented across BTR’s production sites in China, with expansion to overseas bases in Indonesia and Morocco.

• Sector applicability: Lithium-ion battery materials manufacturing; relevant for energy-intensive industrial processes and companies pursuing net-zero targets.

• Additional considerations: Participation in ESG audits, external ESG ratings, and alignment with international guidance such as the World Business Council for Sustainable Development Net Zero Guidebook (2025).

Implementation and operations tips

• Main challenges faced: Managing carbon emissions across multiple sites and the full value chain; optimizing energy-intensive production processes; ensuring supplier compliance with low-carbon standards.

• How to overcome challenges: Establish a structured ESG governance framework; conduct specialized training for executives and staff; implement energy management systems; perform supplier audits and ESG capacity building; invest in renewable energy projects and carbon offsets.

• Other tips for long-term success: Regularly collect and analyze product carbon data; verify carbon footprints of products; engage in continuous process optimization; integrate carbon performance into corporate performance management; maintain transparency via reporting and external ESG ratings; participate in industry-wide carbon standard development.