On March 19, 2024, at the invitation of the Shanghai Municipal Commission of Commerce, a research team led by Ms. Cao Li from the Shanghai Ocean University branch of the Shanghai Social Survey and Research Center, focused on the topic "The Impact of Green and Low-Carbon Development on Shanghai's Foreign Trade and Response Strategies," visited Leverage. The team engaged in an in-depth discussion with General Manager Mr. Qu Weifeng and other members of his team.

Mr. Qu began by introducing Leverage's current business direction and future development plans. The two sides then delved into topics outlined in the preliminary survey questionnaire, including the Carbon Border Adjustment Mechanism (CBAM) and the EU Battery Regulation.

Mr. Qu explained that both of these regulations essentially serve as trade barriers targeting China, raising costs for Chinese companies exporting relevant products to the EU. Regarding CBAM, he highlighted the confusion surrounding whether products require declaration, with both importers and exporters uncertain about their obligations. Additionally, companies must collect and report carbon emission data for their products, which involves complex record-keeping and reporting procedures. Any errors in the declared data could lead to fines or other legal consequences.

Furthermore, Mr. Qu pointed out that the biggest challenges Chinese companies may face with the implementation of the EU Battery Regulation are related to data recognition, confidentiality, and security. Specifically, questions arise over whether data collected by Chinese companies through domestic third parties will be recognized by the EU, as well as how companies can ensure the confidentiality and security of their production processes and ingredient ratios during the data calculation process.

In closing, Mr. Qu expressed hope that more companies would receive support from government departments as they build carbon footprints and pursue green and low-carbon transformations. He emphasized the need for clear, unified guidance and standards in policy formulation and guidance. Mr. Qu also called for stronger publicity efforts to raise awareness about carbon footprints and green transformation across society. Moreover, he advocated for the creation of cross-sector cooperation platforms to foster collaboration and communication, promoting innovation and the application of green low-carbon technologies. He believes these measures would strongly support enterprise transformation and help drive the global green and low-carbon development of domestic businesses.

On behalf of the research team, Ms. Cao expressed deep gratitude to Mr. Qu and Leverage for their strong support. She commended Leverage's exceptional practical experience and industry influence in supply chain management, particularly its significant achievements in green and low-carbon development. She noted that Leverage's work underscores the vital role of purely domestic private third-party institutions in advancing the national sustainable development strategy and assisting enterprises in their green and low-carbon transformations. Finally, Ms. Cao assured that the research team would carefully document and provide timely feedback on the practical challenges faced by the enterprises discussed. She expressed hope that the research findings would attract the attention of relevant departments in the future, ultimately seeking more government support for enterprises grappling with challenges such as potential carbon taxes or environmental regulations.

Leverage is a responsible third-party supply chain management service company, certified by the China National Certification and Accreditation Administration (CNCA-R-2020-707) and the China National Accreditation Service for Conformity Assessment (CNAS IB0605). It is also a member of the Life Cycle Assessment (LCA) Green Management Committee and is recognized by multiple international organizations, such as the UN Global Compact (UNGC), the United Nations Environment Programme (UNEP), and the International Labour Organization (ILO). Leverage offers a range of services including product carbon footprint accounting, organizational carbon verification, carbon neutrality roadmap development, green supply chain audits, Oceancycle marine plastic recycling certification, Science-Based Targets Initiative (SBTi) consulting, and CDP carbon disclosure questionnaire guidance. The company aims to support enterprises in achieving their sustainable development goals.