Challenge

Contemporary Amperex Technology (CATL) is a global leader in innovative energy technologies, committed to providing solutions and services for new energy applications worldwide. The company plans to achieve carbon neutrality in its core operations by 2025 and across the battery value chain by 2035. To achieve this goal, CATL needs to onboard its suppliers on a green and high-quality value chain.

Solution

CATL launched a partnership programme named “CREDIT” (Carbon footprint, Recycling, Energy, Due Diligence, Innovation and Transparency) focused on sustainable lithium-ion battery value supply chains. The programme covers 135 evaluation indicators for both direct and indirect suppliers of CATL that are compliant with the EU Batteries Regulation and other international standards. It includes an onsite evaluation and analysis of sustainability practices that results in a scoring against all indicators, priority areas of action and recommendations for suppliers to strengthen their sustainability performance. This programme is offered by CATL to its suppliers and the results can affect future purchases.

Additionally, CATL has established an incentive system to push forward sustainability, with awards for suppliers and joint research to cover new technologies around electric vehicle (EV) battery recycling industries.

Impact

Since the “CREDIT” programme launch in 2022, CATL has conducted onsite assessments of 35 core suppliers. Additionally, 51 training sessions on sustainable development have been provided to suppliers’ employees. In 2023, CATL aims to provide onsite assessments for approximately 60 suppliers, including those with the highest carbon footprint.

CATL will continue to improve and broaden the “CREDIT” assessment coverage and indicators based on suppliers’ specificities and has launched a post-assessment tracking and support process in 2023 to further enable the sustainability transformation of suppliers.

Featured in our paper "The “No-Excuse” Opportunities to Tackle Scope 3 Emissions in Manufacturing and Value Chains"