Net-zero emissions have become an international trend and global consensus, making it an opportunity for enterprises to enhance their competitiveness and seize new business opportunities. Therefore, TSC has proposed a systematic strategy for low-carbon transition and made comprehensive inventory of energy consumption and carbon emissions and identified emission sources. Every department proposes carbon reduction practices, sets carbon reduction targets and implements net-zero emissions in accordance with the development directions and projects of net-zero emissions.

          On the other hand, due to the incomplete regulations concerning national reduction targets, total cap emission trading, efficiency standards, carbon fees or carbon tax, etc., TSC actively participates in discussions on the establishment of government carbon management policies and regulations and provides relevant information in advance to serve as a reference for policy and regulation making, and strives for favorable conditions, aiming to turn TSC into a demonstration base for circular economy implementation and net-zero emissions.

          In order to effectively implement energy conservation and carbon reduction policies and to continue to promote energy conservation movement. In 2022, the results in electricity and energy saving (including fixed and mobile sources) in all units were converted to a total of 13,118 GJ, reducing approximately 969.33 tonnes of CO₂e.

          Currently, the Xiaogang Factory, Shanhua Sugar Factory, and Huwei Sugar Factory of the Sugar Business Division are in operation. Shanhua Sugar Factory and Huwei Sugar Factory mainly use our self-produced sugarcane for sugar production while Xiaogang Factory uses part of purchased raw materials for sugar refining and oil production. Since sugar refining and oil production operation accounts for 32.83% of the overall carbon emissions at TSC (Scope 1+ Scope 2), the carbon reduction strategy of the Sugar Business Division is also one of the keys for TSC to step toward the net-zero emission target.

          Since Xiaogang Factory is of larger scale and makes production year-round, its carbon emission accounts for more than 90% of the Sugar Business Division, and it also belongs to the GHG emissions source that enterprises shall take inventory of and register, we implement annual GHG inventory and registry annually in accordance with the regulations of EPA. In 2021, the GHG inventory (including carbon dioxide, methane, nitrous oxide, and HFCs) in Category 1 was 80,898.9935 tonnes of CO2e, Category 2 was 2,941.3355 tonnes of CO2e, Category 3 was 76,397.7607 tonnes of CO2e, Category 4 was 137,552.6076 tonnes of CO2e. In addition, TSC has also taken autonomous inventory of carbon emissions in Shanhua Sugar Refinery and Huwei Sugar Factory. The total emissions of the three factories in 2021 (Scope 1-2) amounted to about 100,704.8411 tonnes CO2e. The GHG inventory data for 2022 will be disclosed in the 2023 CSR Report after verification.

          TSC’s task is to stabilize the domestic supply of sugar and cooking oil. It is unavoidable to have carbon emission (Scope 3) generated from the purchase of raw materials. Therefore, the Sugar Business Division focuses on Scope 1 carbon reduction. Starting from 2022, the boilers was changed into natural gas boilers in Xiagang Plant, which is estimated to reduce 21,350 tonnes CO2e. The feasibility of burning hydrogen or ammonia with natural gas will continue to be evaluated in the future so as to make stepwise reduction of carbon emissions. Meanwhile, we also actively cooperate with the government’s promotion of the “Carbon Sinks” among the 12 Key Strategies for 2050 Net-Zero Emission Transition and also follow the three axes of the agriculture net-zero emission strategy, namely “reduction”, “enhancement of carbon sink”, and "circulation”. Relevant strategies are gradually imported into the sugarcane planting process so as to move toward the goal of net-zero emission, which include：

1. Evaluation and analysis of CO2 sequestration potential during the sugarcane growth period.
2. Evaluation and analysis of the soil organic matters and carbon sink of soil after using bagasse and filter sludge as the decompaction materials in the sugarcane field.
3. Widely plant green manure crops during the fallow period of the sugarcane field to increase the organic matter and soil carbon sink of soil.
4. Widen the area of sugarcane ratoons to reduce the frequency of plowing.
5. Cooperate with the reasonable application of fertilizers and introduce livestock biogas slurry to replace some chemical fertilizers for the reduction of nitrous oxide (N2O) emissions.
6. Replace petrochemical diesel with renewable diesel (Note)to reduce carbon emissions from agricultural machinery and truck transportation.
7. Replace the existing bagasse direct-fired boilers with gasification burners to increase energy efficiency, and the biochar is returned to the field to increase the carbon sink of the sugarcane soil.