Foxconn: Energy-efficient carbon trading to earn tens of millions of benefits

Abstract: For Apple Foundry, is already a Foxconn technology group of a shiny business card. But it is little known that the world's largest electronics maker has become the biggest winner in the newly opened carbon trading market in Shenzhen. 2013, Foxconn in Shenzhen company





for "Apple" foundry, has long been a Foxconn technology group, a shining business card. But it is little known that the world's largest electronics maker has become the biggest winner in the newly opened carbon trading market in Shenzhen.





in 2013, Foxconn invested less than 50 million per cent of its energy-saving renovation in Shenzhen, but the resulting balance quota accounted for nearly 30% of the Shenzhen annual balance. By selling only part of the surplus, Foxconn has benefited more than 10 million yuan.





's savings in electricity and carbon quotas, combined with government energy-saving subsidies, have roughly calculated that Foxconn's energy-saving gains over the past year were much higher than its energy-saving investments. "It's a good time for companies to do energy-saving projects, and it won't be a disadvantage," he said. "Foxconn Technology Group deputy general manager Zhongchun recently received an interview with the 21st century economic reporter, said.




With a large quota of
, Foxconn set up a special company to manage the carbon assets of its 10 corporate companies. Zhongchun said that the company has been very concerned about the various changes in the carbon market, including the ccer that may be issued in the second half will affect the market.





"What we'd like to see right now is that more investors are entering the carbon market, raising the level of activity in the two market, and when the market is not active, we want to be able to work with banks to finance the pledge of carbon assets." Zhongchun to the 21st century economic reporting reporter bluntly.





carbon trading earns tens of millions of gains





"21st century": In recent years, Shenzhen, the cost of a variety of factors, the manufacturing sector is more affected, and last year began to engage in carbon trading, there is said that this increased the cost of enterprises. What does Foxconn think?





Zhongchun: We do not regard energy conservation and carbon trading as a burden. Energy-saving indefinitely, we have been digging all aspects of energy-saving potential. Using Mr Gou, the president, says that making money depends on the face of the client and costs everything, and saving energy is a net profit and no need to look at other people's faces.





From 2010 to 2013, our group of mainland factories invested 532 million yuan, made 2,455 energy saving and emission reduction projects, and only saved electricity and other direct energy-saving benefits of 1.073 billion yuan. Through carbon trading, we can reduce electricity consumption, but also through the sale of carbon quotas to benefit. So, for Foxconn, participating in the carbon trade has not only increased costs but also increased profitability.





"21st century": what is the specific income situation?





Zhongchun: Because our energy-saving work is doing better than expected, the 2013 quota surplus is very large, accounting for almost one-third of Shenzhen's total quota surplus last year, the performance is not under pressure. During the first 20 days of the performance period, we sold some of the quotas and benefited more than 10 million yuan. It can be said that the Shenzhen carbon market performance prices did not rise sharply, Foxconn has made a contribution (laughter). In fact, we should do the energy-saving transformation without carbon trading, while the gains from participating in carbon trading are additional profits.





"21st century": Last year, Shenzhen Enterprise Project Transformation Investment is what?





Zhongchun: Last year, we made 429 projects in Shenzhen, the total investment of 45.99 million yuan, save electricity about 200 million degrees.





"21st century": So, Foxconn is actually making money through energy-saving renovation?





Zhongchun: Yes. Although our carbon intensity in the electronics industry has been low in 2010, our goal of energy-saving emission reduction is higher than that of Shenzhen, Guangdong Province and the whole country. "Twelve-Five" period, Shenzhen's unit output energy consumption target is 19.5%, carbon dioxide emissions reduction target is 21%, but the Fuji Kangding are 24.5%.





According to this goal, we have a 5.46% reduction in carbon intensity each year, but in fact we have been over the past few years, falling by 6.36% in 2011, 10.67% in 2012 and 6.5% per cent in 2013. And our capacity has not been how to decline, in 2013, the group's mainland plant used 7.1 billion-degree electricity, an increase of 4.2% than 2012, but supported 19.7% of the growth in output.





in general, to participate in the Shenzhen carbon trading a year, we have done more solid energy-saving work, is more than complete the task of reducing emissions, but also received a corresponding return. Companies to do energy-saving projects, now is very cost-effective.





Fine Management brings benefit





"21st Century": Foxconn specifically how to do energy-saving emission reduction, what are the projects involved?





Zhongchun: From the management, system construction, projects, in many ways to promote a better energy saving and emission reduction situation. In fact, the management of energy saving is not to spend a dime, as long as should not waste not to waste on the line. For example, our workers have to eat at noon, the production line is required to be kept to the minimum.





"21st century": how do you implement such a request?





Zhongchun: The first is to make a system. We have developed a more comprehensive energy-saving management system and the corresponding use standards, but also set up an energy-saving inspection team, divided into 11 categories, 177 items, including lighting, office area, air-conditioning, equipment, production lines, such as the formation of inspection list. Just like the traffic police check the car, each has a corresponding standard of punishment.





if found should do not do, will be deducted points, if more serious on the direct punishment, Shenzhen company last year a fine of more than 1 million yuan. In addition, each month there are energy-saving KPI rating, do a good reward. The year also has the reward, the top three prizes 500,000 yuan, 300,000 yuan and 200,000 yuan respectively, the intensity is still very big.





we have a total of 12 business groups, last year, mobile phone shell of the business group won the prize, they manage more in place, project improvement do much, originally GDP energy consumption is unfavorable to them, because do the shell very energy consumption, and the value is relatively low, but we are according to the carbon intensity to manage, examine, actually is oneself compares with oneself.





"21st century": so you are the group has a carbon intensity down target, then each business group then divide down?





Zhongchun: Yes. In fact, we have 10 of independent corporate companies incorporated into Shenzhen's carbon emission control last year. We get a total quota from the Shenzhen government, and then we ourselves redistribute the quotas and the carbon intensity targets for each enterprise. This year, we are trying to unify these enterprises into one account, and the whole of our newly-established "Rich Energy new technology company" unified Carbon asset management and trading.





"21st century": The company is Foxconn's dedicated energy-saving and emission reduction company?





Zhongchun: The company's predecessor was Foxconn's energy-saving Technology Development Committee, established in 2008, which specializes in energy-saving technology development and project transformation for member companies. 2013, the national carbon trade to further strengthen energy conservation and emission reduction policy driven, the group decided to turn the committee into an independent corporate company, so that energy-saving further specialization, business.





New energy technology company by Foxconn in Shenzhen, the largest corporate company-Fu Tai Wah Industrial Co., Ltd. accounted for the bulk, I personally also contributed 21%, as chairman. This is the personal arrangement of Guo's president, who wants me to take the company as my own business. In addition, the company also has a personal shareholder, is the president of Guo's relatives, which also indicates that he has high hopes for the company.





New energy technology company now has more than 200 full-time technicians, including senior energy managers, auditors accounted for the half, and another senior carbon Auditor 28. In addition, there are a total of more than 800 part-time professionals dispersed in the division of emission reduction in various business groups.





"21st century": Is it said that the Foxconn carbon trading benefited more, largely because of the adoption of such a professional management model?





Zhongchun: Yes, we are still implementing the energy hosting station model. Factory production needs air-conditioning, ice water, compressed air machine, nitrogen, steam, etc., we now focus on their professional management. In this way our daily operation maintenance more convenient, more importantly, we know how to run energy saving.





"21st century": Besides, what is Foxconn's key energy-saving project this year?





Zhongchun: Mainly with the government to do the motor Energy Efficiency Improvement Program. We have all the equipment including the motor inventory, energy efficiency is not up to the standard of all the replacement, in fact, not only to change the motor, ancillary drag equipment to be replaced. It is expected to do 40,000-kilowatt first this year, meaning to change about 2000 units, the amount of energy savings expected this year will contribute a lot.





Hot Hope investors enter the





"21st century": that is not to say, the 2014 Foxconn quota will have a surplus?





Zhongchun: We will make forecasts every quarter, generally speaking, August or September is the electronics industry peak season, so the first three quarters after the data came out, we have the bottom of the heart. Last year, Shenzhen launched in June, we know that by October will be more surplus, then want to sell some, but the market is very small buyers, and the amount of purchase is very small. We thought, so much, that once the price of the transaction came down, we didn't want the price to fall, so we didn't sell it right away.





"21st century": liquidity shortage is a common problem faced by several carbon trading pilots. Shenzhen some time ago introduced foreign investors, what do you think of this?





Zhongchun: We very much welcome, as we said earlier, from our point of view, has been very much hope that more investors into the carbon trading market, relying on corporate performance purchase quota is far from mobilizing market liquidity, but now investors feel still not too clear, dare not rashly come in. The Government should reduce its intervention in the market and let the market form a certain speculative space. If the price is high, the government will intervene immediately to bring down the price, where can investors dare to play?





"21st century": What are your strategy for the near or next year?





Zhongchun: We are very concerned about the issue of Ccer, after the issue, market quota prices may be pulled down, we also hope to have the opportunity to sell some quotas.





However, now the level two market activity is not enough, we are also looking for opportunities to work with the bank to see if we can do carbon quota pledge financing, until the two-tier market liquidity up, and then back to participate in the transaction, in short, is the hope that the quota assets invigorated. 2016 the country wants to establish the national unified carbon market, then the policy how the convergence and so on the uncertainty factor many, we hoped can early change the present.





"21st century": What advice do you have for other companies involved in carbon trading?





Zhongchun: We think the most important experience is to pay attention to, and then there is a professional person to do. In fact, for many small and medium-sized enterprises, the previous energy-saving projects did not do enough, now as long as a little effort to achieve better results. If you don't have the ability to ask a specialized technical team, you can entrust it to a professional third party company.