Core Insights - The transition to ESG (Environmental, Social, and Governance) practices is becoming a critical requirement for small and medium-sized enterprises (SMEs) in the supply chain, but many face challenges due to funding and standards [1][2][3] - The lack of unified standards and recognition of ESG practices among SMEs is hindering their ability to contribute effectively to the overall supply chain ESG performance [2][3] - Leading enterprises in the supply chain are beginning to take on a guiding role, promoting collaboration and standardization to help SMEs overcome their transition challenges [4][5][9] Group 1: Challenges Faced by SMEs - SMEs are often seen as bottlenecks in the supply chain ESG performance due to limited resources and capabilities, which complicates overall collaboration [2][3] - Many SMEs have a limited understanding of ESG, viewing it primarily as a compliance cost rather than a strategic necessity, leading to inadequate frameworks for implementation [2][3] - The absence of standardized ESG requirements results in increased costs for SMEs as they must adapt to varying demands from different enterprises [2][3] Group 2: Role of Leading Enterprises - Leading companies are encouraged to establish unified ESG standards and share their technological and managerial expertise with SMEs to facilitate their transition [4][5] - Initiatives such as creating ESG management systems and participating in industry standard-setting are being adopted by leading firms to support their supply chain partners [4][5] - Collaborative efforts among leading enterprises can help build a sustainable value chain that integrates green procurement, responsible manufacturing, and low-carbon logistics [4][5] Group 3: Financial and Policy Support - Financial institutions are increasingly incorporating ESG factors into their lending decisions, providing incentives for companies with strong ESG performance [7][8] - The establishment of funds and innovative financial mechanisms is being proposed to support SMEs in their ESG transitions, enabling them to access necessary resources [6][7] - Regulatory frameworks and incentive policies are being called for to enhance ESG compliance and encourage investment in green technologies [7][8] Group 4: Future Outlook - The collective efforts of leading enterprises and financial institutions are expected to create a more conducive environment for SMEs to engage in ESG practices, ultimately contributing to high-quality economic development [9]

Group 1 - The core issue for small and medium-sized enterprises (SMEs) in the supply chain is the difficulty in ESG (Environmental, Social, and Governance) transformation due to a lack of funding and standards [1][2] - SMEs are often seen as bottlenecks in enhancing supply chain ESG performance, as many lack the necessary resources and capabilities for green transformation [1][2] - There is a significant gap in understanding ESG among SMEs, with many viewing it merely as a compliance cost rather than a strategic necessity [1][2] Group 2 - The absence of unified standards for ESG management in the supply chain leads to increased costs and inefficiencies for SMEs, as they must adapt to varying requirements from different enterprises [2][3] - Communication costs and supply chain risk management challenges arise from data silos and information asymmetry, complicating the ESG transition for SMEs [2][3] - Chain-leading enterprises are beginning to take on leadership roles by establishing standards, sharing technology, and fostering ecological collaboration to help SMEs overcome these challenges [3][4] Group 3 - Chain-leading companies are encouraged to actively participate in the formulation of industry standards and to extend ESG standards to their suppliers [3][4] - Successful examples include companies like Pinggao Electric, which has implemented a "green technology spillover mechanism" to assist suppliers in optimizing processes and reducing energy consumption [4][5] - Financial tools and policy guidance are essential to ensure that SMEs can profit from their ESG transformations, making it financially viable for them to invest in necessary changes [5][6] Group 4 - Financial institutions are increasingly incorporating ESG factors into their credit decision-making processes, allowing companies with strong ESG performance to benefit from lower financing costs [7][8] - The Shanghai Stock Exchange has launched initiatives to enhance ESG ratings among listed companies, promoting better information disclosure and attracting social capital to sustainable sectors [7][8] - Companies are integrating ESG metrics into executive assessments and using supply chain standards to nurture specialized SMEs, thereby driving broader green transformation across the industry [8]

Core Viewpoint - Yili Group is leading the dairy industry towards a "zero-carbon future" by implementing comprehensive carbon reduction and water conservation strategies across its entire supply chain, aiming to enhance global competitiveness in the dairy sector [1][2][17]. Summary by Sections Investment in Environmental Protection - In the past year, Yili's total investment in environmental protection reached 205 million yuan, resulting in the establishment of five zero-carbon factories and the launch of six zero-carbon products by the end of 2024 [1]. Collaborative Efforts in Carbon Reduction - Yili's Vice President Xu Ke emphasized the importance of collaborative carbon reduction efforts across the dairy supply chain, stating that 2025 will be a pivotal year for ESG in China's supply chains [2]. Green Transformation Standards - Yili has been a pioneer in promoting "green leadership" since 2007 and aims for carbon neutrality across its entire supply chain by 2050. The company has initiated various programs, including the "Low Carbon Month" and the establishment of the "Zero Carbon Alliance" [3][6]. Standardization for Industry Transformation - Yili has participated in the development of one international standard and eleven national standards to provide a unified framework for ESG management, covering the entire dairy supply chain [5][6]. Blockchain Technology for Carbon Management - Yili has developed China's first comprehensive carbon management platform utilizing blockchain technology to ensure data traceability and enhance the credibility of carbon accounting [9][10]. Supplier Engagement and Training - Yili has engaged 154 core enterprises in its "Zero Carbon Alliance," with 90% of members completing low-carbon transformations. The company provides training and support to suppliers for carbon management and reduction projects [10][11]. Water Footprint Initiatives - Yili's "Low Water Footprint Initiative" aims to improve water efficiency across all departments by 2030, with significant achievements in water conservation projects and certifications for water footprint [12]. Talent Development for Green Transition - Yili emphasizes the importance of talent in achieving its zero-carbon vision, conducting training programs for employees and suppliers to enhance their understanding of low-carbon production and environmental protection [13][14]. Future Vision and Collaboration - Yili aims to integrate commercial and social values, encouraging more enterprises to join its ecosystem for sustainable development, while maintaining a focus on embedding "green genes" into its operations [17].

Core Viewpoint - Yili Group is positioning itself as a "chain leader" in the dairy industry, focusing on carbon reduction and water conservation across the entire supply chain, aiming for a zero-carbon future by 2050 [1][2][11] Investment and Achievements - In the past year, Yili invested 205 million yuan in environmental protection, resulting in five zero-carbon factories and six zero-carbon products, with 44 factories recognized as national green factories, leading the industry [1][2] - Yili has established the "Zero Carbon Alliance" and the "Low Water Footprint Initiative Alliance," expanding its network to enhance collaborative efforts in sustainability [2][6] Standards and Frameworks - Yili has been actively involved in setting standards, having contributed to one international standard and eleven national standards related to ESG and carbon management, which are essential for the industry's green transformation [3][4] - The establishment of a unified and transparent standard system is crucial for achieving low-carbon collaborative development across the industry [4] Supply Chain Management - Yili is leveraging blockchain technology to create a comprehensive carbon management platform for its suppliers, ensuring data traceability and enhancing the credibility of carbon accounting [6][5] - The company has initiated training programs for suppliers to develop long-term carbon reduction plans and has collaborated on energy-saving projects to lower greenhouse gas emissions [7][9] Water Management Initiatives - Yili has launched the "Low Water Footprint Initiative," aiming to improve water efficiency across all departments and has implemented 668 water-saving projects, achieving a total water savings of over 2 million tons annually [8][10] - The company has also developed a water management technical standard to optimize water resource utilization throughout its operations [8] Talent Development and Training - Yili emphasizes the importance of talent in driving its green transformation, conducting carbon footprint training for employees and suppliers to enhance their understanding of low-carbon production [9][10] - The establishment of a "Supply Chain Capability Development Center" aims to provide comprehensive training on carbon peak and carbon neutrality for supplier executives [9] Future Vision and Collaboration - Yili aims to foster a sustainable ecosystem by integrating business and social values, encouraging more enterprises to join its ecological circle for shared benefits [11] - The company is committed to innovation and strategic determination to achieve its zero-carbon future, positioning itself as a leader in global climate governance [11]