Shanghai Rongheng : Applying green finance products to conduct carbon management

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01.Rongheng company's dual carbon layout and corporate responsibility blueprint

Rongheng Company was established in 1992 as a wholly-owned subsidiary of Dongfang International Group. It is dedicated to providing integrated solutions for green, low-carbon, and sustainable underwear textiles and pharmaceutical products. The company focuses on underwear export as its core business, while actively expanding into import and export businesses such as pharmaceuticals and medical equipment. By integrating design, research, manufacturing, trade, and retail, Rongheng has built an integrated industrial chain.

Facing climate change pressures both domestically and internationally, Rongheng Company, as a state-owned foreign trade enterprise, actively responds to the national dual-carbon strategy and adheres to the path of sustainable development. The company has not only set the dual-carbon goals of "carbon peaking by 2030 and carbon neutrality by 2050" but also formulated detailed three-year plans.

According to Shen Fenglin, starting with its core underwear business, Rongheng has already completed the certification of the first batch of carbon-neutral products this year and plans to conduct carbon inventories at its Shanghai headquarters and Shandong factories in China. The company will gradually expand the coverage of carbon footprint accounting and inventories, aiming to complete carbon inventories at its Bangladesh factories overseas by 2026.

In addition to managing its own carbon footprint, Rongheng Company also considers low-carbon management in its supply chain as a critical component of green development. "We aim to meet the low-carbon demands and expectations of international market customers by promoting low-carbon operations among domestic and international suppliers," said Shen Fenglin. "We are also actively engaging in global climate governance and environmental issues to demonstrate our company's international responsibility."

02. The low-carbon style at the peak of fashion

Sustainable development and low-carbon transformation are indeed complex and systematic challenges for businesses, and scientific planning and feasible entry points are key to solving them. Rongheng company sees product carbon footprint certification as a good starting point. First, the practical operation of calculating and certifying a product's carbon footprint is relatively straightforward. Second, products directly face consumers or downstream customers, making efforts to reduce carbon footprint visible and likely to receive market feedback. Finally, understanding the product's carbon footprint helps streamline the process of assessing supply chain carbon emissions, facilitating further carbon reduction management in the supply chain. Therefore, starting from the product's carbon footprint is not only feasible but also necessary.

Next, Shen Fenglin highlighted the company's first carbon-neutral product.

"This is a wire-free bra named VICTORIA SFTB, the perfect blend of fashion and green. We believe true fashion is not just about outward adornment but also about inner responsibility and commitment. Our lingerie products embody this philosophy. Strictly adhering to the latest international carbon neutrality standard ISO 14068-1, it achieves carbon neutrality. It is not only elegant and beautiful but also a messenger of green, low-carbon practices and corporate responsibility," explained Shen Fenglin.

This lingerie product has been launched on the International Carbon Disclosure Platform for Textile and Apparel and was showcased at the 2024 Shanghai International Carbon Neutrality Expo in Technologies, Products, and Achievements. Scan the code to view product details.

She noted that the design of this product fully considers the global market's demand for green and low-carbon products. Whether in material selection, style design, or manufacturing processes, efforts are made to meet the highest international standards. This not only provides premium choices for global consumers but also builds a bridge to success for Rongheng Company's partners.

 03.Leader in carbon management using green finance

Green finance injects financial vitality into corporate and industry's low-carbon transformation. Rongheng Company actively responds to the national dual-carbon policy and has become a leading demonstration enterprise nationwide in using green finance products for carbon management.

"Carbon Counting Loan" is a green finance project jointly developed by Construction Bank and Carbon Newture. It provides green finance loans and technical support for carbon management to enterprises with product carbon footprint and carbon neutrality needs. This facilitates enterprises in conducting carbon footprint accounting, carbon neutrality certification, corporate carbon inventory, green supply chain management, and other green transformation projects.

Dongfang International Group, Construction Bank, and Carbon Newture jointly announced a carbon finance project at the 2024 Shanghai International Carbon Neutrality Expo

Shen Fenglin expressed that Rongheng Company is honored to participate in the carbon finance project under the "bank-platform-enterprise" model, which sets a benchmark for actively promoting "green transformation" and activating "green finance" in the industry. The company has utilized green loans obtained from this project for the carbon footprint accounting and carbon neutrality certification of the VICTORIA SFTB lingerie product. This not only aligns with the national dual-carbon policy but also benefits the establishment of the company's "green manufacturing" and "green product" systems. Looking ahead, Rongheng also looks forward to gaining more support in green finance for aspects like supply chain green transformation and brand green internationalization.

Finally, Shen Fenglin shared her thoughts on the relationship between "new quality productivity" and "green low-carbon development". She believes that a profound understanding of their relationship is crucial to advancing both in tandem. "New quality productivity" and "green low-carbon development" complement each other with aligned goals, driving businesses and society towards a more sustainable and environmentally friendly direction.