Carbon Footprint Report of Fujian Xinsen Carbon Industry Co., Ltd.

1. Introduction to Product Carbon Footprint (PCF)

In recent years, the greenhouse effect and climate change have become global focal points, and the term 'carbon footprint' is increasingly used worldwide. Carbon footprints are typically divided into three levels: project level, organizational level, and product level. The Product Carbon Footprint (PCF) refers to the total greenhouse gas emissions of a product throughout its life cycle, which includes various stages such as raw material extraction, product manufacturing (or service provision), distribution, use, and final disposal/recycling. Greenhouse gases include carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFO), perfluorocarbons (PFC), and nitrogen trifluoride (NF3). The calculation result of the product carbon footprint is the weighted sum of various greenhouse gas emissions during the product's life cycle, expressed in carbon dioxide equivalent (CO2e), with units of kgCO2e or gCO2e. The Global Warming Potential (GWP) refers to the carbon dioxide equivalent values of various greenhouse gases, which are usually based on values provided by the Intergovernmental Panel on Climate Change (IPCC) and are widely used globally.

The calculation of the product carbon footprint only includes a portion of the greenhouse gases from a complete life cycle assessment (LCA). Based on LCA evaluation methods, various carbon footprint assessment guidelines and requirements have been established internationally for product carbon footprint certification. Currently, there are three widely used carbon footprint assessment standards:

(1) PAS2050:2011 Specification for the Assessment of the Life Cycle Greenhouse Gas Emissions of Goods and Services. This standard was jointly published by the British Standards Institution (BSI), Carbon Trust, and the UK Department for Environment, Food & Rural Affairs (Defra). It is one of the earliest international standards with specific calculation methods and is currently one of the most commonly used product carbon footprint assessment standards.

(2) Greenhouse Gas Protocol: Product Life Cycle Accounting and Reporting Standard. This standard was published by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) as a standard for products and supply chains.

(3) ISO/TS14067:2013 Greenhouse Gases - Product Carbon Footprint - Requirements and Guidelines for Quantification and Communication. This standard is based on PAS2050 and was developed by the International Organization for Standardization (ISO). The purpose of establishing product carbon footprint accounting standards is to create a consistent method for assessing product carbon footprints that is recognized internationally.

2. Basic Information about the Company

Fujian Xinsen Carbon Industry Co., Ltd. is a national high-tech enterprise specializing in the production of various high-end activated carbons, integrating research and development, production, and operation. The company has a high-tech product and technology research center, which has obtained qualifications such as Fujian Province's New Activated Carbon Materials Engineering Technology Research Center, Fujian Province's Enterprise Technology Center, and Fujian Province's Key Laboratory of New Carbon Materials. It is a benchmark enterprise in China for the production and research of wood-based granular activated carbon, activated carbon catalysts, and various activated carbon products with carbon carriers. It is also one of the earliest manufacturers in China to industrialize the production of civilian environmental protection activated carbon. The company's products are currently recognized as some of the best in terms of quality for methanol removal household activated carbons, with widespread applications and exports to 42 countries and regions. The company has a registered capital of 129.8 million yuan and total assets of 450 million yuan. The average annual sales revenue is 183.278 million yuan, with an average annual profit of 43.5926 million yuan and an average annual tax payment of 13.36 million yuan. Key economic indicators such as per capita output value, profit tax, and unit energy consumption are at an advanced level in the industry nationwide.

The company's products utilize 'three leftover materials' from agriculture and forestry industries, using wood powder, bamboo scraps, etc., as raw materials to prepare fuel recovery and vehicle exhaust recovery products such as high-adsorption, high-strength specialized vehicle activated carbons; high-energy storage capacitive activated carbons; solvent recovery activated carbons; bamboo-based high-performance electrode activated carbons (replacing lead-acid batteries); glyphosate carbon catalysts; pressure swing adsorption activated carbons; desulfurization activated carbons; edible activated carbons; special activated carbons for medical devices; among other series of activated carbon products. The technical level of these products has reached international advanced standards, enjoys independent intellectual property rights, can replace imported similar products, and fills domestic gaps. The company has strong market competitiveness both domestically and internationally, solving China's long-standing dependence on imports for high-end activated carbons. The company's products comply with national policies on comprehensive resource utilization industrialization requirements. Under relevant internet innovation and entrepreneurship policies, we have established a good internet innovation mechanism combining 'manufacturing + e-commerce + entrepreneurship.'

3. Categories of Greenhouse Gas Emissions

Xinsen Carbon Industry's greenhouse gas emissions are mainly divided into three categories:

The first category includes non-methane total hydrocarbons (C2–C8) emissions from Xinsen Carbon Industry's production base; this includes emissions from production facilities as well as those from energy supply and steam generation facilities.

The second category consists of vehicle exhaust emissions.

The third category includes all other CO2 emissions generated throughout the entire value chain (such as those from suppliers and customer product usage, waste disposal, transportation stages, etc.).

The CO2 emissions from Jin Gong Machinery's production (categories one and two in the greenhouse gas protocol) are reported according to the 'Greenhouse Gas Accounting System' calculation standards for categories one and two emissions respectively. For category one emissions related to energy production, we also distinguish between emissions generated from energy used by Xinsen Carbon Industry itself and energy sold to third parties. For these categories of emissions, we consider geographical location and market factors.

Greenhouse Gas Emission Volume

4. Recommendations

Enterprises should enhance environmental awareness among all employees to meet environmental protection requirements. Reduce risks for stakeholders by complying with relevant regulations while improving transparency in emission data reporting including progress towards reduction targets to mitigate risks and increase stakeholder confidence. Establish a complete inventory with a unified, objective, transparent checklist; this is a necessary process for engaging in greenhouse gas emission trading (such as under the United Nations Clean Development Mechanism). In the future, reductions can be traded to achieve objective economic benefits. Enhance corporate image by aligning with international sustainable development goals to become a green enterprise that improves public perception.