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SF Biochemical: Exploring the Path to Net Zero Emissions in the Chemical Industry

Jiangsu State Farms Biochemistry Co., Ltd. (SF Biochemical), as a core supplier to BASF, actively responds to BASF's Supplier Carbon Management Program, collaborating to enhance transparency in the carbon emissions associated with externally purchased raw materials. CarbonNewture utilizes digital tools to calculate the carbon emissions of SF Biochemical's production of soluble granules of Thiamethoxam and collaborates with authoritative organizations to issue certification.

Chemical Industry

Jiangsu State Farms Biochemistry Co., Ltd.

Jiangsu State Farms Biochemistry Co., Ltd.

Established in 1996, Jiangsu State Farms Biochemistry Co., Ltd. (formerly a wholly-owned subsidiary of Jiangsu State Farms Group) is an agricultural chemical production and processing company approved by the National Economic and Trade Commission. SF Biochemical serves as a major distributor for multinational company products in China, possessing extensive experience in multinational product supply chain services. It is an innovative enterprise with independent research and development capabilities.

Business Pain Points

  • Carbon Neutral Pressure in the Chinese Chemical Industry: China is the world's largest producer and consumer of chemical products, with the chemical industry accounting for 20% of total emissions in the industrial sector and 13% of the country's total carbon dioxide emissions. The chemical industry has a long industrial chain with a wide range of products, making the supply-demand relationships for segmented products complex.

  • "Carbon Neutral" Goals of Downstream Customers: As part of the Fortune Global 500, BASF has committed to reducing its carbon dioxide emissions by 25% by 2030 compared to 2018 levels and achieving global net-zero carbon emissions by 2050. Additionally, BASF is preparing to offer customers the first batch of products with net-zero emissions and minimized carbon footprints.

  • Supplier Participation: BASF requires suppliers to provide specific data on the purchased raw materials. BASF aims to gradually replace average data with this detailed information, using effective original data to calculate the carbon footprint ("cradle-to-gate") of relevant products.

Integrated Solution

In order for the Fortune Global 500 chemical industry group to shift its greenhouse gas emission reduction goals towards achieving net-zero emissions, it is essential to identify the emission reduction potential of suppliers in the value chain. Providing transparency of the carbon footprint at the product level for the Fortune Global 500 group and its suppliers is a crucial prerequisite for achieving this goal.

Using CarbonNewture's digital product tools, a data model has been established for BASF and its suppliers, creating a seamless flow of carbon emission data upstream and downstream. Following widely recognized product carbon footprint standards in the chemical industry, such as ISO 14067 and GHG Protocol, detailed and accurate product carbon footprints are provided for their product portfolio, unprecedented transparency is created for the supporting data used in carbon accounting.

In terms of carbon emission data traceability and verification, CarbonNewture's decentralized and tamper-proof blockchain technology ensures the reliability and transparency of corporate carbon emission data, enabling full traceability and verification of upstream and downstream carbon emissions.

Simultaneously, CarbonNewture, in collaboration with the authoritative third-party carbon certification body, CTI, has issued certification for 20% of SF Biochemical's production of Imidacloprid Soluble Granules, ensuring the credibility of the carbon emission data.

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