IGPN - International Green Purchasing Network

July 20, 2026

Practices Collection Showcase: Innovative Application of Carbon Label and Carbon Reduction Integrated Supply Chain Management (Vol. 7) Integrate corporation carbon governance for sustainable development: Establishment, innovation and practice of Midea RAC

Lately, the report of Practices Collection-Innovative Application on Carbon Label and Carbon Reduction Integrated Supply Chain Management was jointly released within the collaboration between International Green Purchasing Network (IGPN) and the One Planet Network Sustainable Public Procurement (SPP) Programme, which was produced by IGPN Secretariat-China Environmental United Certification Center (CEC).
The Practices Collection brings together innovative supply chain practices from seven organizations across four countries: China, the United States, Thailand, and the Netherland. By summarizing practical experience and demonstrating phased achievements, the Practices Collection effectively enhances supplier capacity, promotes the adoption of carbon labelling, and stimulates market and supply-side demand for sustainable products and services.

Practice #7｜Integrate corporation carbon governance for sustainable development: Establishment, innovation and practice of Midea RAC carbon footprint management system

Theme: Remanufacturing and cleaner production and carbon label

Core Content
This document focuses monetization on full supply chain carbon reduction, an integrated supply chain management system with four key components of "green supply chain, low-carbon logistics, zero-carbon manufacturing and resource recycling" built by Farizon New Energy Commercial Vehicle Group (Farizon), through measures including supply chain carbon management, low carbon logistic system, zero-carbon manufacturing, resource recycling system, and digital platform.
It is essential to be highlighted that the practice Integrated scenario-based service platform with circular ecosystem, enable carbon reduction investment cost of individual corporate, and enhances the overall sustainable competitiveness of the industrial chain through collaboration. Meanwhile, the digital platform it builds to monitor carbon emission reduction and convert emission reduction into liquid carbon assets on the basis of decarbonization, providing a replicable and measurable reference for supply chain carbon reduction.

Innovation in Supply chain Management
This practice demonstrates how can facilitate innovation from aspects of full coverage, digital & standard empowerment, ecosystem collaboration, and mechanism innovation in supply chain management:
Full coverage: full-chain carbon reduction framework was established covering the stage of "upstream, manufacturing, logistics and transportation, product operation, recycling";
Digital & standard empowerment: Integrate digitalization with standard building to ensure all emission reduction measures are traceable, assessable and replicable;
Ecosystem collaboration: Integrated scenario-based service platform with circular ecosystem, enable carbon reduction cost of the industrial chain through collaboration;
Mechanism innovation: Establish a virtuous cycle that links "qualified targets, technology commercialization, revenue reinvestment" to transforming carbon reduction from "cost centre" into "value driver".

This practice creates an integrated low-carbon system covering four key areas: green supply chains, low-carbon logistics, zero-carbon manufacturing and resource recycling. It uses a digital platform to visualize and control carbon emissions across the whole industrial chain. By upgrading production, logistics and recycling models and designing new ways to convert carbon assets, the practice sets an easy-to-follow example for commercial vehicle manufacturers to adopt green production and cut carbon across supply chains.

Learn more at the report Practices Collection: Innovative Application on Carbon Label & Carbon Reduction Integrated Supply Chain Management.

category : Topics