Achieving Several Low-Carbon Transition Targets Ahead of Schedule, Updating Net-Zero Roadmap
HONG KONG SAR – Media OutReach Newswire – 2 December 2024 – ENN Energy Holdings Limited (stock code: 2688; “ENN Energy” or “the Company”), one of the largest clean energy distributors in China, recently published the 2024 edition of “Decarbonisation Action 2030 – The Journey to Net Zero” (the “Decarbonisation Action 2024”). This report comprehensively reviews the progress of the targets set in the inaugural Decarbonisation Action 2021, highlights key actions taken in various business scenarios to reduce emissions, updates ENN Energy’s net-zero roadmap, and sets more ambitious new targets.
ENN Energy’s Net-Zero Roadmap – 2024 Edition
ENN Energy first released “Decarbonisation Action 2030 – Journey to Net Zero” in 2021, proposing a long-term goal of achieving net-zero emissions by 2050 without relying on the purchase of green certificates and other offsets. The publication of the Decarbonisation Action 2024 fulfils the Company’s commitment to reviewing its decarbonisation action plan every three years, examining the progress and achievements, and adjusting key targets to ensure the smooth advancement of its low-carbon transition.
Smooth progress on low-carbon transition targets, with several targets achieved ahead of schedule
Over the past three years, the targets set in the Decarbonisation Action 2021 progressed smoothly, with some targets being achieved ahead of schedule. By the end of 2023, ENN Energy made significant strides in reducing greenhouse gas (GHG) emissions and optimising its energy structure, including:
By continuously optimising methane control management, and promoting energy conservation and emission reduction, the GHG emission intensity of the city-gas business was reduced by 28.5% compared to 2019, surpassing the target of a 20% reduction by 2030 and achieving this significantly ahead of schedule.
The GHG emission intensity per unit of energy generated in the integrated energy (IE) business decreased by 36.5% compared to 2019 through continuous exploration and promotion of renewable energy and diversification for a cleaner energy mix. The Company is making progress toward the target of a 48% reduction by 2030.
By improving the energy efficiency of office buildings and implementing energy conservation measures, the energy consumption per unit area of office buildings was reduced by 11% compared to 2021, exceeding the target of a 10% reduction by 2025 and achieving this ahead of schedule.
As of 30 June 2024, the annual biomass consumption reached 1.87 million tonnes, up 273.5% from 0.5 million tonnes in 2021. The Company is making progress toward the target of 3.27 million tonnes by 2030.
In December 2023, the Company released its first Climate-Related Financial Disclosure Report, which disclosed its progress in terms of governance, strategy, risk management, metrics and targets by referencing the Task Force on Climate-Related Financial Disclosures (TCFD) framework.
The updated investment and financing requirements and performance management methods for key green industry projects were included in the 2024 ENN Energy Green Finance Framework, which obtained an independent second-party opinion and certification provided by S&P Global in 2024.
Low-carbon transition driven by innovation in four key scenarios: Nature Gas, IE, Value Added Business and Low-Carbon Office
As a pioneer in the low-carbon transition, ENN Energy strives to promote the green development of industry and society through continuous innovation of its technology and business model. Based on customers’ actual needs, the Company provides whole-chain, customised energy solutions across four key scenarios: natural gas, IE, value added business and low-carbon office.
In the Natural Gas scenario, the Company is constantly improving its methane emission control initiatives and exploring innovative technologies to further enhance the energy efficiency of natural gas. Meanwhile, the Company is actively exploring the application prospects of natural-gas-based hydrogen projects. This includes collaborating with customers to build the first hydrogen blending station at a project operation site, achieving the simultaneous development of natural gas and hydrogen. In the IE scenario, the Company is actively advancing the construction of low-carbon factories and industrial parks while providing cleaner energy to facilitate the low-carbon transition in industrial energy use. The Company also leverages its extensive experience in building services management to provide customised building energy-saving solutions. Additionally, the Company is expanding its clean energy solutions with a focus on photovoltaics and biomass energy. This includes customising a distributed photovoltaic and storage project, as well as introducing low-carbon business models such as direct combustion of biomass for energy supply and biomass conversion to biogas. In the Value Added Business scenario, the Company leverages digital technologies to intelligently upgrade basic gas services and actively promotes energy-saving gas appliances to help residential users improve their energy use efficiency. In the Low-Carbon Office scenario, the Company implements a low-carbon operation across four dimensions, including cleaner energy utilisation, optimised energy management in office buildings, low-carbon transportation, and the construction of a low-carbon office system.
Updates to net-zero roadmap and low-carbon transition targets
Based on its business operations, ENN Energy references leading domestic and international low-carbon transition standards and frameworks to set environmental and corporate low-carbon transition targets, while outlining a clear net-zero roadmap that provides guidance for its energy conservation and emission reduction efforts.
Since some targets have been achieved ahead of schedule in Decarbonisation Action 2021, the Company has set more ambitious new targets, demonstrating its determination to advance on the path to low-carbon transition. Meanwhile, the Company will optimise the emission reduction measures in various business scenarios to ensure the achievement of its long-term goals. These measures include:
Using 2019 as the baseline year, the target for GHG emission intensity of the city-gas business has been updated from a 20% reduction by 2030 to a 50% reduction. To achieve this, the Company will continue to optimise the identification of methane emission sources to achieve full coverage of Pan-Tilt-Zoom (PTZ) laser methane monitoring system in all city-gate stations and expand the application of unmanned city-gas stations to significantly reduce the energy consumption.
The GHG emission intensity reduction target for the IE business has surpassed the halfway mark. The Company will continue to increase the supply of renewable energy, establish an energy supply model that integrates multiple clean energy sources, and intensify the exploration of the application of renewable energy and zero-carbon energy such as photovoltaic, biomass, geothermal, air, and hydrogen energy relying on the IE micro-grid, and develop customised comprehensive energy solutions for customers based on their specific needs.
The Company remains dedicated to addressing the needs of residential users. Building upon its commitment to ensuring gas safety, the Company will continue to leverage digital solutions to deliver comprehensive services that enhance the quality of life for households, assisting in the creation of green homes.
Using 2021 as the baseline year, the target for energy consumption per unit area of office buildings has been updated from a 10% reduction by 2025 to a 20% reduction by 2030. To achieve this, the Company will continue to replace traditional lighting fixtures with energy-saving ones in self-sustaining office buildings, actively promote paperless office, deploy energy management systems in self-sustaining office buildings, and establish an internal E-Carbon Pass System to incentivise employees to reduce GHG emissions.
The proportion of photovoltaic power consumed in self-owned office buildings has been updated from 5% by 2025 to 10% by 2030. To achieve this, the Company will continue to leverage its strong technological advantages of IE business to increase the developable photovoltaic area in office spaces.
Through the release of the Decarbonisation Action 2024, ENN Energy reaffirms its mission to “achieve the coordinated development of its own carbon reduction and the green upgrading of business, contributing to high-quality social development”. Moving forward, the Company will further integrate sustainability into its business practices and deeply explore market demands for green energy consumption driven by customer needs. By leveraging technology, it will continuously innovate products and services to promote intelligent upgrades in the industry. The Company will work hand in hand with upstream and downstream partners to support the realisation of China’s “Dual Carbon” goals.
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About ENN Energy Holdings Limited
ENN Energy is one of the largest clean energy distributors in China. The principal business of the Group is the investment in, and the construction, operation and management of gas pipeline infrastructure, the sales and distribution of piped gas, LNG and other multi-energy products. The Group also provides customers with digital and intelligent services related to low-carbon integrated solutions and develops diversified value-added business based on customer needs. As of 30 June 2024, the Group has managed 260 city-gas projects locating in 20 provinces, municipalities and autonomous regions in China, including Anhui, Beijing, Fujian, Guangdong, Guangxi, Hebei, Henan, Hunan, Inner Mongolia, Heilongjiang, Jiangsu, Jiangxi, Liaoning, Sichuan, Shandong, Yunnan, Zhejiang, Shaanxi, Shanghai and Tianjin. The Group also develops integrated energy projects in key regions across China, and has successfully operated 332 such projects to date.
ENN Energy is a constituent of the Hang Seng Index, the Hang Seng China Enterprises Index, the Hang Seng Composite Large Cap Index, the Hang Seng ESG 50 Index, the Hang Seng Corporate Sustainability Benchmark Index and the MSCI China Large Cap Index. For more information, please visit the Group’s website at http://ir.ennenergy.com/.
