(Yicai) Dec. 15 -- The European Union Chamber of Commerce in China has received a record number of applications for its 2025 Sustainable Business Awards, showing how European companies have seamlessly integrated into China's environmental, social, and governance landscape.

Seventy-eight applications from 40 European companies were submitted to the EUCCC for the 2025 SBA, the highest since the program launched in 2017. This year marks the 50th anniversary of China-EU diplomatic relations.

The awards were handed out during a ceremony held in Shanghai on Dec. 11, attracting more than 120 executives, diplomats, and experts to participate. Winners include Bosch China for China-Europe partnership, Boehringer Ingelheim for talent empowerment, and BMW China and Ikea China for circularity. Other recipients were Novartis China, Pirelli, and Henkel.

"EU-China collaboration on sustainability creates real opportunities for both sides, with European companies' decarbonization objectives aligning closely with China's ambitions," said Carlo D'Andrea, vice president of the EUCCC and chairman of the Shanghai Chapter.

China aims to peak carbon emissions before 2030 and achieve carbon neutrality by 2060.

However, speakers during the award ceremony exposed some execution challenges, especially around supply chains. While 75 percent of corporate emissions originate from suppliers, only 15 percent of companies have established upstream emission targets. And just 36 percent of them report Scope 3 Category 1 emissions, which are the largest portion of total emissions.

An expert at the conference explained that the biggest challenge is not collecting data but ensuring quality and consistency across thousands of suppliers. For example, a global manufacturer said it collected over 4,000 product carbon footprints from suppliers this year, engaging with more than 1,200 partners on decarbonization.

Other speakers emphasized that sustainability must transcend compliance. An executive from a manufacturing company said that sustainability should be embedded in the DNA every day, not just managed as compliance.

Financial gaps persist. For instance, suppliers receiving financial incentives are 45 percent more likely to reduce emissions. But only less than 3 percent of companies offer such incentives.

A consular official also addressed EU legislative uncertainties at the ceremony. The objective is not changing, so companies should continue investing in governance structures and supplier engagement, he noted.

Infrastructure constraints are another concern. Limited renewable energy access in Shanghai, including inter-provincial transmission bottlenecks, complicates decarbonization plans.

Editor: Futura Costaglione