06/26
2024
<2023 Green Impact Report> Excellent Enterprise——BABO
06/26
"In 2022, Asia Green Fund participated in BABO's Series D financing. As a bamboo fiber ecological technology company, BABO has pioneered the 'biomass refining technology' for bamboo fiber extraction. It is an important investment by Asia Green Fund in the field of consumer-oriented new materials. BABO is committed to promoting the sustainable development of the bamboo industry through the power of technology and practical actions. Not only does it benefit bamboo farmers by vigorously developing the bamboo industry to drive bamboo forest planting and continuously increase farmers' income, but it also benefits consumers by integrating green and low-carbon lifestyles into their lives, practicing new ways of green consumption, and fostering new concepts of green living. Babo is creating a green supply chain that truly transforms the ecological value of bamboo into economic and social value."
Implementing ESG Principles as a Part of Corporate Development
ESG is an important means to enhance the core competitiveness of enterprises, and BABO has always aimed to build an enterprise with ESG values. The company has systematically developed its environmental, social, and governance values in accordance to the United Nations Sustainable Development Goals, the national carbon neutrality strategy, and the National Development and Reform Commission's "Three-Year Action Plan to Accelerate the Development of 'Bamboo Instead of Plastic'." By promoting industrial development, BABO contributes to the national "rural revitalization" strategy and ecological civilization construction, protects the green ecology, promotes social progress, safeguards consumers' healthy living, and builds an enterprise image with widespread social influence and a good reputation.
Implementing ESG Principles as a Part of Corporate Development
ESG is an important means to enhance the core competitiveness of enterprises, and BABO has always aimed to build an enterprise with ESG values. The company has systematically developed its environmental, social, and governance values in accordance to the United Nations Sustainable Development Goals, the national carbon neutrality strategy, and the National Development and Reform Commission's "Three-Year Action Plan to Accelerate the Development of 'Bamboo Instead of Plastic'." By promoting industrial development, BABO contributes to the national "rural revitalization" strategy and ecological civilization construction, protects the green ecology, promotes social progress, safeguards consumers' healthy living, and builds an enterprise image with widespread social influence and a good reputation.
In December 2023, the company released its first Sustainable Development Report for the year 2023, titled "Sichuan Huanlong New Materials Co., Ltd. 2023 Sustainable Development Report," to the public. The report disclosed the company's ESG strategy, governance framework, core issues, and management and practices in sustainable development.
Bamboo-Centric Innovation: Driving Industrial Development
High-quality bamboo species is the basis for promoting the high-quality development of the bamboo industry, and BABO insists on long-term investment in the selection, planting and promotion of high-quality and high-yield bamboo species. The company has established an international research and development platform, including the Sichuan Bamboo Biomass Refining Technology Engineering Laboratory and provincial-level enterprise centers. Collaborations with renowned research institutions such as the VTT National Research Institute of Finland, the International Bamboo and Rattan Organization, and the Chinese Academy of Sciences have facilitated the development of bamboo biomass full-value utilization technology, promoting innovative applications of bamboo fiber materials across multiple domains.
Through years of continuous research and development, BABO has successfully cultivated the high-yielding bamboo species 'BABO 1.' This variety boasts a yield nearly 6-8 times higher per acre compared to ordinary bamboo forests. Additionally, 'BABO 1' exhibits significant carbon sequestration capabilities, with each acre of bamboo forest sequestering 5-6 tons of carbon annually (forming a carbon sink of approximately 4 tons per year). Calculated based on the consumption of 400,000 tons of bamboo material per 100,000 tons of production capacity, the carbon sequestration capacity of 'BABO 1' bamboo forests can reach 1.9 million tons per year.
Furthermore, to comprehensively assess the carbon sequestration capacity of 'BABO 1' bamboo forests and promote high-quality bamboo species, the company has invited experts in bamboo forest carbon sequestration to conduct carbon sink quantification studies. These studies provide essential data support for bamboo species replacement, capacity enhancement, and carbon sink accounting. Additionally, in collaboration with local governments, the company is actively promoting the high-quality 'BABO 1' bamboo species. In accordance with the requirements for the development of Certified Carbon Emission Reduction (CCER) projects verified by national authorities, efforts are underway to develop CCER projects and explore carbon sink resources in agroforestry operations. This initiative aims to transform carbon sink resources into vital assets for local economic development.
Carbon Reduction and Efficiency Improvement: Building a Sustainable Industrial Chain
In recent years, BABO has gradually built a complete bamboo industry chain based on the advantages of high-quality bamboo species cultivation, making significant contributions to reducing plastic pollution, addressing climate change, and achieving sustainable development.
On the production front, BABO has achieved technological breakthroughs in innovation. The company employs globally pioneering biomass refining technology, with low-temperature extraction and no bleaching, avoiding harmful chemical additives and significantly reducing environmental impact, with COD emissions 60% lower than industry standards. Meanwhile, substantial savings in raw materials, water, and energy consumption compared to traditional industries have been achieved, along with 100% utilization of solid waste resources, resulting in a 30% reduction in overall carbon emissions compared to traditional industries.
To better quantify carbon footprints and enhance carbon reduction efforts, the company has established a Carbon Footprint Office. It has institutionalized and standardized the carbon footprint accounting system of the company's product production process, calculating the carbon footprint from raw material acquisition to product manufacturing completion, to provide data support and solutions for guiding carbon reduction in production and operation. The company has commissioned the China Quality Certification Association to complete the carbon footprint certification of BABO's original color household paper produced at the Anzhou base and commissioned the Carbon Footprint Research Team of Sichuan University to complete the carbon footprint accounting of the full lifecycle of original color bamboo pulp at the Qingshen base.
BABO actively participates in industry and association standardization efforts for 'Replacing Plastic with Bamboo', collaborating with industry enterprises to jointly develop group standards for bamboo pulp fibers. BABO also contributes to the formulation of environmental footprint accounting standard guidelines for pulp, paper, and paper products by industry associations and societies, aiming to better promote industry development and regulate market order.
On the logistics front, BABO adopts digital logistics and establishes a Transportation Management System (TMS). Through order lifecycle management and node monitoring, BABO achieves full visibility of logistics operations, effectively enhancing the efficient operation of information flow, product flow, and capital flow in logistics operations, thereby achieving a dual enhancement in operational efficiency and business benefits.
Committing to Poverty Alleviation and Rural Revitalization
BABO has always adhered to the concept of "Brands for Good" and actively responded to the country's rural revitalization strategy. Through vigorously developing bamboo planting, it has successfully driven the development of upstream and downstream industries, benefiting approximately 1 million farmers, covering 2070 villages, creating 10,000 job opportunities, and cumulatively increasing farmers' income by 3 billion RMB, with an average increase of 20,000 RMB per household. At the same time, it has driven the development of packaging, transportation, and other industries, with a total scale of about 4 billion RMB, truly transforming the ecological value of bamboo into economic and social value.
Since 2016, BABO has been actively engaged in philanthropic activities, consistently conducting various charitable events. With cumulative donations exceeding 15 million RMB, BABO has received multiple provincial or national commendations. In February 2023, BABO participated in the "Love Without Borders" international charity event initiated by the Ministry of Foreign Affairs of the People's Republic of China, donating all proceeds to the China Rural Development Foundation. Additionally, the company donated 100,000 RMB to the China Rural Development Foundation, providing targeted support for the implementation of the "Warmth Project" in Jinping County and Malipo County, Yunnan Province.
