Amsterdam, Netherlands/Jiangsu, China, 17 October - South Pole has facilitated a 5-year framework agreement between Philips and Zhejiang Zheneng Energy Service Co. Ltd. This agreement enables Philips' Suzhou facility in Jiangsu Province, China, to source renewable electricity generated by an innovative, integrated fishery-solar system through annual procurement contracts.
Philips' Suzhou facility, which produces Philips' products for global distribution, will receive approximately 16 GWh of renewable electricity annually, allowing it to operate 100% on green energy.
Through this agreement, Philips is reducing approximately 9,200 tons of CO2 annually, and supporting China's push to use more low-carbon energy alternatives.
South Pole's involvement in facilitating this landmark agreement illustrates its commitment to guiding companies towards impactful climate action even in challenging markets.
Jingwei Zhong, Managing Consultant of Renewable Energy Solutions at South Pole, said: “Our collaboration with Philips exemplifies how strategic guidance can unlock opportunities for advancing sustainability goals. We are proud to have supported a household name like Philips to show that sourcing longer-term power purchase agreements for renewable energy in burgeoning markets is possible."
The agreement was signed under China's National Green Power Trading (GPT) scheme, which aims to encourage widespread adoption and proactive consumption of green electricity. The growth of renewable energy development is essential for achieving emission reduction targets across global supply chains. China's rapidly expanding renewable energy market, along with increasing energy demand in coastal provinces and abundant resources in inland regions, will play a pivotal role in helping companies procure renewable energy and meet their sustainability goals.
Last year, the GPT scheme doubled renewable energy usage, leading to lower green electricity prices and increased supply nationwide. By advancing inter-provincial green electricity trading and addressing grid infrastructure challenges, the full potential of China's renewable capacity can be leveraged to support global supply chain sustainability targets.
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Launched in September 2021, the Green Power Trading scheme is an institutional innovation that promotes green and sustainable development. The scheme aims to directly connect renewable energy producers with end-users, facilitating the expansion of green electricity consumption and relieving financial pressures on renewable energy enterprises, thus laying the foundation for achieving carbon reduction targets.
In 2023, GPT volume doubled to 54 TWh, with a peak of over 6,000 GWh in December. With the continued expansion of the green power market and improvements to market mechanisms, GPT volume is expected to exceed 100 TWh in the near future, opening up even greater opportunities for green energy trading across China.
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being through meaningful innovation. Philips' patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring and enterprise informatics, as well as in personal health. Philips generated 2023 sales of EUR 18.2 billion and employs approximately 68,700 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
South Pole is the world's leading carbon asset developer and climate consultancy.
Since 2006, South Pole has been a trusted partner and advisor to governments, public sector organisations, and leading businesses on their decarbonisation journeys. South Pole serves over 1,000 clients across the world, and its global team of experts has helped many Fortune 500 businesses implement comprehensive strategies that help build resilience and turn climate action into long-term business opportunities.
In line with its mission to deliver true climate impact for all, South Pole has used the power of markets to help channel climate finance to over 850 projects in more than 50 countries across the globe. To date, these projects have helped reduce over 200 million metric tonnes of CO2 emissions, accelerated low-carbon transformations across several sectors, and provided measurable benefits to communities vulnerable to climate change.
The business is supported by world-class investors, including Temasek's GenZero, Lightrock, Corisol, and Salesforce Ventures.
South Pole is a social enterprise recognised by the World Economic Forum's Schwab Foundation, and committed to becoming a B Corp globally across all of its local entities.
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