The research team from the China CSR Research Center of Southern Weekly recently visited iSoftStone to delve into topics such as breakthroughs in green technology, low-carbon transformation and innovation, and the outlook for dual-carbon initiatives. The team engaged with key figures from the company, including Peng Qiang, the Executive Vice President and Chief Digital Officer of iSoftStone, who shared insights into the company's journey from internal carbon management to ongoing innovations in green management technology, aimed at empowering enterprises in their transition to greener and more sustainable practices. The complete survey can be found here:

https://www.infzm.com/wap/#/content/267305

China's development hinges on the vitality of its real economy, serving as the cornerstone for progress. Urgently advancing new industrialization is imperative not only to establish a competitive edge as a major nation but also as a pivotal pillar supporting strategic advantages for future development. In September 2023, the Central Committee of the Communist Party of China convened a national conference on new industrialization, emphasizing the integration of manufacturing prowess with the development of the digital economy and industrial informationization. This synergy aims to lay a robust material and technical foundation for China's modernization.

Presently, about two-thirds of China's industrial energy consumption and approximately 70% of carbon emissions come from the industrial sector. Green industrial development is not only the bedrock of new industrialization but also a crucial path toward attaining the objectives of carbon peaking and neutralization. The key to this lies in expediting innovation in green technology, leveraging digital advancements such as cloud computing, big data, the Internet of Things, and artificial intelligence.

In practice, the greening of industries imposes heightened demands on digital technology. This requires ongoing innovation and iteration, establishing effective links between energy structure transformation, upgrading ultra-low energy consumption technologies, and implementing intelligent carbon management. This integration serves to enhance and cater to the needs of industrial green development. The China CSR Research Center of Southern Weekly recently visited iSoftStone Information Technology (Group) Co., Ltd. (hereinafter referred to as "iSoftStone"). The team delved into iSoftStone's journey, starting with internal carbon management and ongoing innovations in green technology, with a specific focus on empowering enterprises to transition to greener and more environmentally friendly practices. Peng Qiang, Executive Vice President and Chief Digital Officer of iSoftStone, participated in these research activities.

Strengthening ESG and carbon management capabilities

ESG (Environmental, Social, and Corporate Governance) serves as a comprehensive metric for evaluating "dual carbon" actions, providing effective criteria for enterprises' "dual carbon" goals. In recent years, a growing number of enterprises have expedited their green and low-carbon transformations, generating long-term value within the business ecosystem.

Peng Qiang, the head of the iSoftStone ESG Working Group, emphasized that ESG is the core of the enterprise's sustainable development strategy, representing the pursuit of higher-level influence on enterprise value. iSoftStone, as a leading software and information technology service provider in China, consistently upholds the role of a responsible corporate citizen. The company actively fulfills its social responsibilities and adheres to the principles of sustainable development. In recent years, iSoftStone has integrated its unique characteristics and industry attributes, innovating management methods and establishing a distinctive sustainable development management system. The company has undertaken a multitude of ESG practices, continually enhancing its concepts and implementing special actions in areas such as environment, society, and corporate governance aligned with the ESG evaluation system. These efforts have significantly contributed to the company's sustainable development, yielding notable results.

iSoftStone has garnered numerous accolades since its first ESG report in 2022. In 2023, the company's exemplary practices and outstanding performance in environmental protection, social responsibility, and corporate governance earned it an AA rating from the CNI Index-ESG Evaluation of Shenzhen Stock Exchange and the Wind ESG rating. Additionally, iSoftStone secured the top spot in the information technology service industry. Further recognition includes inclusion in the "CNI Social Responsibility Index" and "SZSE Responsibility Index". iSoftStone also clinched the "2023 ESG Best Practice Case of Listed Companies" at the inaugural China Listed Companies Sustainable Development Conference. The company was honored with the "2023 IDC Pioneer Case of Sustainable Development in China" and received an "AAA Evaluation of Social Responsibility Governance of Software and Information Services in 2023", showcasing its leadership and benchmarking role in the industry.

As a crucial aspect of the ESG environmental sector, carbon management plays a pivotal role in both domestic and international ESG ratings and supplier evaluations. This dynamic compels enterprises to accelerate "dual carbon" technological innovation and energy transformation. The foundation for such efforts lies in scientific and precise carbon calculations, coupled with AI-driven deep energy conservation, establishing a solid footing for companies to fulfill their environmental and social responsibilities.

iSoftStone thrives on the essence of technology empowerment. In the realm of digital intelligence technology, from innovation and research to development and application, iSoftStone consistently leverages its expertise to offer paramount technical support for digital intelligence and drive green, low-carbon transformations. Aligning with customer needs and addressing pain points, iSoftStone collaborates seamlessly with its Tianxuan 2.0 MaaS platform, tailoring enterprise models to diverse customer business scenarios. This approach fully actualizes AI empowerment for industry customers. Notably, iSoftStone has pioneered the AIoT "dual carbon" control tower 1 + 5 solution, actively advancing its application across three pivotal scenarios: carbon-neutral park, carbon-neutral building, and carbon-neutral factory. This underscores iSoftStone's concrete commitment to empowering customers in developing sustainable, green businesses. A prime example is the Chongqing Longxing Football Stadium, the city's first professional football field. iSoftStone ingeniously constructed the AIoT Space and AIoT "dual carbon" control tower products, partnering with high-quality manufacturers such as Huawei Cloud. This collaboration has resulted in the creation of information-rich football venues, leading the way in the green, low-carbon, and high-quality development of the Longxing Football Stadium.

During a recent symposium, Dong Ruiqiang of the iSoftStone Working Group shared the company's innovative strides in the ESG and dual-carbon domains with the research team. Capitalizing on its digital technology services prowess, iSoftStone strategically enhanced its ESG system construction based on industry attributes and business characteristics. Employing the "4P + E Model" (Policy, Program, Practice, Performance, Evidence) of ESG management, the company consistently increased investments in capital and technology. This comprehensive approach encompasses environmental protection, social responsibility, and corporate governance upgrades, involving meticulous attention to hundreds of indicators in a plan characterized by "self-upgrading + external empowerment".

On the one hand, iSoftStone has prioritized internal efforts for energy conservation and emission reduction, actively practicing green development in operations. This has involved formulating policies, creating plans, and establishing dedicated working groups. The company has carried out special campaigns for energy conservation and carbon reduction in the fields of energy, power, construction, transportation, and management. Additionally, iSoftStone has championed green office practices, reinforced resource management, and prioritized renewable energy in base construction for energy-efficient buildings. By conducting thorough carbon inventory work, the company has generated professional, complete, and accurate greenhouse gas emission reports. It has also maintained a carbon account book, undertaken carbon planning, and crafted a low-carbon development model in line with the company's values. This showcases the company's commitment across the entire life cycle and underscores its leadership role in the industry.

On the other hand, iSoftStone has actively established cooperative relations with external stakeholders to jointly explore the road of sustainable development. The company has co-established the Space Intelligence and "Dual Carbon" Metaverse Research Institute with CCCC Urban Investment Holding Company Limited, resulting in the joint creation of a series of "Dual Carbon" application service platforms and projects. Additionally, iSoftStone has participated in drafting the first group standard, the Standard for Forest Carbon Index Monitoring System Utilizing Earth Observation Satellite, for scientific and accurate monitoring of carbon sources and sinks in China. As a founding member of the Strategic Alliance for Sustainable Development and Practice, the company has been actively involved in innovating low-carbon technologies and developing green applications. Centered on the fundamental principles of a "clean, low-carbon, safe, and efficient" modern energy system, iSoftStone has been providing customers with professional and comprehensive energy service plans, along with a "dual-carbon" digital path. Furthermore, the company has forged new strategic partnerships with Nanjing Audit University and CCTEG Nanjing Design & Research Institute Co., Ltd. In this context, iSoftStone has actively explored the seamless integration of digital technology across education, smart mines, smart energy, and other industries. Additionally, strategic cooperation has been initiated with SPIC Digital Technology Co., Ltd., aiming to jointly propel the digital transformation of China's energy industry, innovate in digital energy solutions, and contribute to the country's "dual-carbon" goal through technological innovation.

Creating an intelligent carbon management expert

To spearhead advancements in carbon management, iSoftStone, a key player in fostering the growth of the domestic digital economy, aligns itself with the latest trends in the new generation of digital technology. This commitment involves ongoing business innovation and breakthroughs, grounded in a comprehensive understanding of customer needs and the national "dual carbon" strategy. Independently crafting the iSSMeta-Green intelligent carbon management platform, iSoftStone empowers clients to smoothly harmonize digitalization and low carbonization. This facilitates a seamless integration of digital technology with carbon reduction initiatives, steering clients towards the construction of a sustainable future and advancement towards the ambitious goal of net zero emissions. Dong Ruiqiang, during a recent investigation, underscored the merits and applications of the iSoftStone Intelligent Carbon Management Platform and AI-driven deep energy-saving and carbon reduction technology.

Reports indicate that iSoftStone's iSSMeta-Green Intelligent Carbon Management Platform offers two pivotal products: professional, standardized, and globally recognized carbon evaluation and carbon certification. These products assist enterprises in achieving precise quantification and verification of carbon data, effectively addressing carbon management challenges. Comprising six key functions—including carbon accounting, carbon reporting, carbon ledger, carbon panorama, carbon analysis, and carbon trading—the platform delivers eight core values for enterprises. These encompass deploying professional measurement models, swiftly acquiring quantitative data with traceability, securing green certification to meet government and market requirements, establishing a carbon ledger to effectively manage emission reduction benefits, reducing time and labor costs, scientifically and accurately conserving energy and minimizing emissions, vetting suppliers to construct green supply chains, and continually enhancing the sustainability of enterprises and brands to accrue more social benefits.

The platform boasts two primary advantages: the Carbon Metaverse and Carbon Strategy Simulation. Firstly, it achieves the seamless integration of equipment-level carbon data with the carbon metaverse, enabling real-time collaborative interaction and the formation of valuable data assets. Secondly, leveraging historical data, the platform predicts future trends in enterprise emissions, proposes optimization paths for crucial links, and formulates scientifically sound energy plans based on carbon quotas. The service system built around this platform follows a structured framework denoted as "5 + 6 + N." It comprises five foundational pillars: iSoftStone Consulting, iSoftStone Education, iSoftStone ESG Digital Integration Platform, State Grid Credit Information, and Carbon Technology Company. In addition to these pillars, there are six extended services covering carbon consulting, carbon operation, carbon training, carbon market, carbon account book, and ESG consulting. Furthermore, the system offers a diverse range of subdivided services, adding flexibility and customization to cater to specific needs.

iSoftStone's Digital Carbon-neutral Stadium project undergoes significant optimization across three key dimensions: energy consumption management, utilization of environmentally friendly materials, and fan engagement. To illustrate, the project employs digital twin technology for carbon footprint identification. This involves creating a digital model of the stadium, allowing operators to comprehensively track energy consumption data, such as stadium lighting, screen display, and plastic usage. This, in turn, facilitates real-time monitoring of carbon emissions throughout the entire process, enabling the formulation of data-driven upgrade plans. By integrating the Green Account Book, Carbon Neutrality Control Tower, and Carbon Calculation Engine, the project achieves dynamic management and precise accounting of stadium recycling, ultimately building a sustainable development management system.

Tang Jin, a think tank expert from the China CSR Research Center of Southern Weekly, highlighted the current lack of unified standards in carbon accounting and the ever-evolving demands within the supply chain, presenting significant challenges to the development of a carbon management system. Exploring the potential of digital intelligence technology to enhance carbon management is deemed worthwhile.

In 2023, iSoftStone made strides in the first "Hackathon Innovation Camp for SAP Partners" competition, initiated by the Innovation Ecology 2.0 of SAP China Research Institute. The company advanced to the final round with its intelligent carbon management scheme, delivering a compelling final roadshow that showcased its robust capabilities. iSoftStone emerged victorious among numerous participating enterprises, securing the second prize in recognition of its outstanding achievements.

To address the shift of enterprises from traditional manufacturing to green intelligent manufacturing and to achieve intelligent upgrades in energy conservation, emission reduction, and safety supervision during the production process, iSoftStone relies on the digital twin platform iSSMeta. Using a combination of "data convergence + business integration + low code development," the company has effectively reduced carbon emissions throughout the entire production and operational processes, showcasing notable instances like digital twin cement factories. Furthermore, by leveraging the iSSMeta platform, iSoftStone has extended its digital twin services to Chongqing Energy Banner, aiming to reduce labor costs, mitigate human safety hazards, and establish an intelligent electrolytic aluminum manufacturing enterprise.

Li Fei, a think tank expert from the China CSR Research Center of Southern Weekly, proposed that digital twin technology inherently excels in climate risk management, particularly in the identification of physical risks. Digital technology enterprises, he suggested, could play a pivotal role in enabling corporate climate risk and opportunity identification.

Noteworthy is that iSoftStone, beyond its involvement in the realm of intelligent carbon management, also addressed challenges in industrial and building system energy conservation. The company utilized a new generation of AI technology to tackle issues associated with systems heavily relying on "artificial" experience and existing digital platforms lacking cognitive capabilities. Through AI energy-saving algorithm models and AI load forecasting, iSoftStone and its partners collaboratively constructed an industry-leading "AI-driven and digital and intelligent platform". This initiative focuses on AI-driven deep energy-saving and digital technology innovation, markedly enhancing energy system efficiency and operational effectiveness. This, in turn, aids customers in their digital transformation efforts, optimizing energy conservation, reducing costs, and increasing overall efficiency.

Building a standardized carbon management system

Forging a new industry necessitates the synergistic advancement of economic digitalization and environmental sustainability. Small and medium-sized enterprises encounter numerous challenges in their endeavors towards green and low-carbon transformation, stemming from limitations in capital, technology, management, and talent resources. Large enterprises, recognized as trailblazers in "transformation and transitioning away from fossil fuels," can offer invaluable insights to small and medium-sized enterprises, leveraging their expertise in energy transformation and low-carbon energy-saving management.

In November 2023, the National Development and Reform Commission, along with five other departments, collectively issued the Opinions on Accelerating the Establishment of A Product Carbon Footprint Management System. The document advocates for promoting the establishment of a product carbon footprint management system aligned with the country's actual circumstances, enhancing accounting method rules, and standardizing the system for key product carbon footprints. It encourages leading enterprises to develop product carbon footprint management systems based on industry development levels and their unique situations, with the aim of driving carbon footprint management throughout the supply chain and fostering overall green and low-carbon transformation. The proposal emphasizes the integration of carbon footprint management with technologies such as big data, blockchain, and the Internet of Things. By 2025, the plan is to issue approximately 50 national-level carbon footprint accounting rules and standards for key products. Additionally, the initiative aims to establish initial background databases for carbon footprints in key industries, build the national product carbon label certification system, and gain international recognition for selected carbon footprint accounting rules, standards, and labels for key products.

Therefore, iSoftStone will leverage its strengths and capabilities to actively engage in the establishment of the national and industrial product carbon footprint management system and standard system. The company will consistently enhance and refine the functions of its intelligent carbon management platform, aiming to offer enterprises improved accounting and certification services for organizing carbon and product carbon footprints. This initiative seeks to propel the green and low-carbon transformation within related industries and guide environmentally conscious consumption.

Sun Xiaowen, Director of China CSR Research Center of Southern Weekly, emphasized that enhancing digital capabilities is a pivotal way for SMEs to achieve green development. Despite the numerous challenges faced by small and medium-sized enterprises in terms of awareness, cost, and technology during the digital transformation process, a standardized carbon management system proves instrumental in promoting and popularizing carbon management technology among them, contributing significantly to social value.