Value chain carbon footprints of Chinese listed companies

Abstract

Measuring the value chain carbon footprints of listed companies is essential for cumulative climate actions and climate-efficient capital allocation. We trace the carbon emissions embodied in the value chains of Chinese listed companies and find that there is an increasing trend in terms of the carbon footprints of listed companies over the period 2010–2019. In 2019, the direct emissions from these companies reached 1.9 billion tonnes, accounting for 18.3% of national emissions. The indirect emissions were well over twice as large as the direct emissions from 2010 to 2019. Energy, construction and finance companies tend to have a greater volume of value chain carbon footprints, yet the distribution of their carbon footprints varies significantly. Finally, we apply the results to evaluate the financed emissions of leading asset managers’ equity portfolio investment in China’s stock market.

A paper led by Prof. Zhang evaluates the value chain carbon footprints of Chinese listed companies. The results could encourage collaborative climate actions along value chains and help investors understand the environmental impacts of their investment.