LEADING multinationals are helping Shanghai stay at the forefront of sustainable development.

Multinationals with their regional headquarters in Shanghai have rolled out a number of green initiatives and forward-looking sustainability policies in line with China’s “dual carbon” strategy.

China’s commitment to green development dates back long ago. In 2005, Chinese President Xi Jinping, then Party secretary of Zhejiang Province, put forward the idea that protecting the environment would provide even better economic opportunities. A raft of environmental laws have been revamped and strictly implemented since then, with visible results in recent years.

Leading players in the vehicle component, chemical and industrial manufacturing sectors have taken major steps in adopting environmentally friendly practices, proving that environmental protection and economic growth can go hand in hand.

ZF Group

Germany’s ZF opened its China’s remanufacturing center in late June in the Yangshan Free Trade Zone, located in Shanghai’s Lingang Special Area.

It has its Asia-Pacific headquarters in Shanghai and runs around 50 factories and five R&D centers in China, including two in the city.

The new facility will serve as ZF’s Asia-Pacific remanufacturing headquarters, strengthening the company’s long-term growth in both China and wider Asian markets.

The 4,855-square-meter center is 40 percent larger than its previous site and houses advanced equipment, including mechatronics and transmission test benches. Its FTZ location also enables bonded maintenance services.

“We’re addressing carbon emissions from a full life cycle perspective and sustainability concept has been incorporated into every aspect of our product design, development and production process,” said Justin Du, sustainability lead and executive officer of Strategy and Liaison at ZF Asia Pacific Region.

Adopting new energy-saving technologies and offering low-carbon product offerings and solutions are among the many initiatives taken by ZF to push forward the whole industry’s green development. It has also requested the use of 100 percent renewable electricity from 2025.

This year, ZF implemented more than 100 emission cutting programs around its China operation network, with over 30 being carried out in Shanghai.

Through these actions, it’s also driving more local factories toward green production and green supply chains, and these requirements for suppliers have also significantly boosted their capabilities and promoted environmentally friendly practices along the whole industry chain.

“We’re also pleased to see the general electrification and smart trend which offers great development potential for new energy vehicles in the long run,” Du noted.

ZF is also glad to see more advancement and regulations in terms of circular economy to promote the healthy development of the sector by relying more on technological advancement rather than labor-intensive practices, he added.

SKF

Sweden-headquartered SKF serves more than 40 industries in China, including automobiles, railway, aerospace, new energy, heavy industry, machine tools, logistics and medical.

Its Shanghai R&D facilities play an important role in developing and promoting green transformation. The city also hosts its Northeast Asia Distribution Center and a Global Technology Center.

“Sustainability is not an optional cause but rather a core strategy covering our full value chain,” Wang Hui, president of SKF China and Northeast Asia, observed, adding that Shanghai plays a key role in driving the technology research and adoption of energy-saving solutions in the Northeast Asia region.

Hydrogen energy-powered trucks have been deployed at its Northeast Asia Distribution Center for about one year, cutting over 60 percent of carbon emissions compared to traditional fossil fuel vehicles.

Working together with its partners, the firm also carries out a full lifecycle carbon footprint measurement mechanism for bearings. By the end of 2028, SKF Global will invest 3 billion SEK (US$309) to achieve its 2030 energy and net-zero decarbonization goals. The investment will mainly go to improving energy efficiency and phasing out the use of fossil natural gas for process heating and building heating. China and the Northeast Asia region is a key part of this plan.

Nine of its factories in China are already accredited green units and three among them are national-level green factories. All of the electricity used at its wholly-owned local factories is green.

“The Chinese government has demonstrated extraordinary commitment in promoting energy conservation and emissions reduction so that China holds a unique position in our overall green transformation blueprint,” Wang said.

“Thanks to the favorable geographical location, rich talent pool and open environment, we’re able to promote more sustainable development solutions originating in Shanghai to other parts of the globe.”

BASF

BASF, as a leading global chemical company, says China, the world’s largest chemical market is shifting toward a development model that emphasizes quality and sustainability.

This transition opens up vast opportunities – from emerging sectors like new mobility and renewable energy, to the transformation of traditional industries such as smart appliances, energy-efficient buildings, and sustainable agriculture.

“BASF is committed to supporting the green transformation of China’s industrial ecosystem. We do this by co-creating sustainable solutions with local partners, driving open in­novation through industry-academia collaboration, and building low-car­bon supply chains to enable the sustainable development of our customer industries,” said Dr. Jeffrey Lou, President and Chairman of BASF Greater China.

With the theme “Co-drive Sustainable Journey, Co-create for Shared Success”, BASF participated in the 2025 Shanghai International Carbon Neutrality Expo in Technologies, Products and Achievements in June.

BASF presented its latest progress towards its goal of net-zero greenhouse gas emissions by 2050, along with its innovative low-carbon technologies and co-creations with its partners.

It has also been driving innovation through industry-academia collaboration. Its collaboration with the Yangtze River Delta Physics Research Center and Welion New Energy Technology has resulted in the successful development of a concept solid-state battery pack for eMobility applications.

This advanced battery design integrates over 20 BASF material solutions to address key issues such as weight, thermal management, safety, and sustainability.

Regarding the industry’s growing need for carbon footprint assessment, since 2020, BASF has established an industry-leading practice for Product Carbon Footprint (PCF) calculation.

Using certified digital solutions, it has calculated the “cradle-to-gate” carbon footprint for 45,000 products currently on sale and has been sharing and promoting this methodology with suppliers, customers, and industry peers to jointly enhance transparency in carbon footprint data.