Environmental policy in China is embedded into long-term planning cycles – most notably its Five-Year Plans – where emissions reduction, renewable energy, and what the Party call ecological civilisation, are treated as binding national priorities. At the same time, the global context has moved in China’s favour. It’s not surprising that in this context China is starting to look like the environment’s champion.  

Policy as industrial strategy 

China’s environmental push can easily be framed as rhetoric. But if we’re less cynical it can also be viewed as the design of a new system. Since the 2005 Renewable Energy Law, clean energy has been positioned as a strategic industry, supported by subsidies, financing mechanisms and mandatory grid integration. 

Out of that, we’ve seen a scaling. China now leads the world in solar deployment and manufacturing, holding more than a third of global installed solar capacity. It has also built dominance across adjacent sectors, including batteries and electric vehicles, turning climate policy into industrial policy. 

State-backed financing, domestic market scale and supply chain control have allowed China to compress costs and accelerate the rate of adoption. Over time, that scale has translated into real global impact: Chinese clean tech is now exported as infrastructure.  

The contrast with the United States has become pretty sharp under Donald Trump’s administration. Recent policy moves from the US – the world’s other pole for climate leadership – have included dismantling emissions regulations, reversing green industrial incentives and actively promoting fossil fuel development. Now, the energy sector is redirecting attention away from renewables toward fossil fuels, reinforcing a structural pivot in US energy policy.  

Climate leadership as geopolitical positioning 

Analysts have long argued that US withdrawal from climate commitments created a vacuum that China could fill. Their predictions have been proved right and that leadership is now materialising.  

China continues to expand renewable capacity at scale, with long-term plans to multiply wind and solar generation and reduce carbon intensity across its economy. Even where targets are criticised as conservative, they’re heading in a positive direction: one with more renewables, more electrification, more state coordination. 

China’s clean energy investment and manufacturing capacity now rival — and in some cases exceed — the combined efforts of the US and EU. Climate policy is now a playing field for international competition. It’s not just about emissions cuts or hitting green targets. They’re playing for who gets to produce the energy infrastructure we will likely rely on in the future.  

China’s climate strategy and the contradictions that remain 

None of this is without tension. China remains the world’s largest emitter in absolute terms, and coal still plays a significant role in its energy mix. Policy enforcement can be uneven, particularly at the local level where economic growth is still taken as top priority.  

But trajectory matters more than the baseline here. Emissions growth is slowing, renewable capacity is accelerating, and environmental policy is increasingly heading in a direction we could call positive.  

From catch-up to standard setter 

Grand reversals in reputation aren’t a surprise for anyone who’s been watching China for an extended time frame. That familiar strategic recalibration is at work here too. Particularly in the last Five-Year Plan.  

Climate policy in China has been reworked as an economic arrangement. Producing useful green tech that shapes industries, supply chains and global trade will bring in big money. Now Chinese EVs, solar panels and batteries are becoming the green tech of the future.  

That’s a new kind of leadership. Not moral, but material. Not driven by advocacy, but by capacity. As the US steps back, China is not just stepping in. It is redesigning the system around itself. 

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The outdoor pop-up, called LN Nature, was located at Taikoo Li Chengdu, near the Li-Ning shop at the mall. Under the tagline “Li-Ning Nature: Look further run further” (每一步都向前), the space was divided into four areas: “From Nature” (源于自然), “Coloured by Nature” (自然而染), “Renewed Nature” (自然新生) and “Return to Nature” (回归自然). Each area showcased a step in the brand’s product life cycle, from bio-based materials, water-saving natural dying processes, the use of recycled materials, and the afterlife of the brand’s biodegradable trainers.

Aside from the educational exhibition, the pop-up space had Earth Day-themed interactive touchpoints and DIY corners to help visitors immerse themselves in the brand’s sustainable concept. On social media, Li-Ning worked with its global ambassador, Chinese actor Xiao Zhan, to produce a quick video to visually demonstrate the materials and processes from the campaign. On Weibo, China’s Twitter equivalent, the topic “Li-Ning Global Brand Ambassador Xiao Zhan” cumulated over 360 million views.

The brand released its annual financial report for 2024 in late March, which saw its revenue grow 3.9% year-on-year (YoY) to 28.68 billion RMB (3.93 billion USD) and its gross profit margin was up 1 percentage point YoY to 49.4%. It was described by most pundits as stable. However, with its arch-rival Anta growing fast and moving into the league of Nike and Adidas, Li-Ning appears to be left behind. With the latest campaign, Li-Ning is building its brand and marketing on a more responsible platform, other than just premium and “guochao”.

Need to boost your China strategy? Dao Pro delivers bespoke insights on marketing, innovation, and digital trends, direct from Chinese sources. Find out more from our Dao Strategy Team here.

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On Earth Day, Starbucks China encouraged environmental awareness with a free cup of coffee. Customers who brought their own reusable cups could receive a free medium Americano. The first 30 participants at each store were eligible for an upgrade to the “True Flavor: Sugar-Free” Berry Americano series, highlighting that drinks can be flavorful without added sugar, promoting a healthier, zero-calorie lifestyle.

On Weibo, Starbucks China also kicked off a “Show Off Your Own Cup” campaign, which drew strong engagement from customers. The company continues to offer used coffee grounds for free, which can be repurposed as natural deodorizers or plant fertilizer.

With its mission to “give more back to nature than it takes,” Starbucks China has embedded sustainability throughout its supply chain, from bean to cup. Going forward, the company says it will stick to its long-term vision of green development and continue using coffee as a bridge to connect with people who care about the planet.

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Each year, huinantian gets a mention whenever it falls on the southern provinces. Last year, it became viral because of a service offered by southern netizens on Goofish, the second hand marketplace from Alibaba to write whatever message you want on the wet walls.

• #回南天是什么服从性测试吗Is huinantian some kind of compliance test: 5.98 million views on Rednote, ranking number 2 on the Hot Spot list.

This year, fuelled by a video of the same name as the topic, the start of the damp season returns to China as a buzzword. Videos with the hashtag also include different attitudes from Northerners and Southerners towards the weather.

For marketers and brands that seek to hyper-localise to different regions or harvest the interest towards certain regions, not only are cultures and customs but even the specific weather conditions can be leveraged, especially when they are widely known across the country.

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The TWO FACE events have been to many cities in China including Beijing, Hangzhou, Chengdu and Xi’an. For the Quanzhou event, the brand collaborated with a local coffee shop/bookshop/gallery called Local Fish. Local Fish is situated in a repurposed ice silo for the fishing port and uses discarded fishnets and fishing floats to create its lighting and fencing. Both partners in the collaboration fit like a glove with their values in upcycling.

The city of Quanzhou was inscribed as a UNESCO World Heritage Site in 2021. Since then, there have been various creative campaigns surrounding the city and its customs. Just last year, the lifestyle and design magazine Shang Cheng Shi, along with Italian fashion house Valentino visited the city for a “family feast” to celebrate Valentino’s SS24 collection with Fujian cuisine and the rich variety of intangible cultural heritages (ICHs) in the region.

Apart from the standard TWO FACE customisation, the Swiss brand and the local café also provided something special and hyper-localised – a craft workshop using repurposed fishnet, led by creator Jeje to pay homage to the women of the fishing port. For a sustainability-centric brand like FREITAG, the Quanzhou event combines creativity and ESG seamlessly, as well as a localised effort to pay tribute to the regional culture.

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The story of Taotao is about it being released into the wild at 2 years of age and learning to survive in the harsh conditions of the Sichuan mountains before finding love and building his family. Indeed, Taotao is the first panda to have successfully had grandchildren after being released into the wild. The video, is accompanied by a voiceover narration in a traditional singsong tone, reenacting key moments of Taotao’s life, including his lessons with his mother, being released into the wild and finding food in the snow etc.

The campaign also involves partners such as the SEE Foundation, Foping Panda Natural Reserve and merchants for a charitable sales event to raise 1 million RMB (136,718.48 USD) for the protection of wild pandas, of which Taotao is one of over 1,900. At the same time, a gamified experience is available for Taobao users to play along with Taotao’s stories.

Back in September last year, Taobao announced that it had “adopted”, or sponsored Taotao the panda in 2011. It had been successfully mating after being raised in the wild for the past 12 years (13 years now). From the adoption came a project called IPANDA, and the name Taotao was also voted by 10s of thousands of Taobao users in 2011.

This CRM campaign, 14 years in the making, really hones in on the “emotional value” of such campaigns. Pandas are a great subject for not only its adorableness but also the national pride Chinese consumers have for the China-exclusive mammal. By incorporating shadow play, which is an intangible cultural heritage (ICH), it is also an example of ICH marketing. In fact, the nostalgia of 2010 and the early days of Taobao also provide an angle for emotional value. It is evidenced by the fact that the topic “Taotao’s steps in bamboo” (#淘淘的竹迹#, which is a play on words between “足” in “足迹”, footsteps, sounding similar to “竹” meaning bamboo) earned 210 million views on Weibo, China’s Twitter equivalent.

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In China, KFC created its “Food Station”(食物驿站) in 2020 to work with its suppliers to give away surplus food in the form of gift bags donated to people and groups in need. This year, the restaurant chain worked with 8 of its suppliers in the country under the instructions of the China Consumers Association to give away over 20,000 gift bags across 100 cities. KFC also awarded the title “K’s Fried Chicken Man” (肯家炸鸡侠) to its partners for the good deeds they did for both reducing food waste and helping out people in need.

This year, KFC also teamed up with its brand ambassador Chinese actor Zhu Yilong to film a short “unboxing” video of the gift bags, showing off how the surplus food is packaged and distributed through the “Food Station” system. On Weibo, China’s Twitter equivalent, the topic “KFC Food Station” (#肯德基食物驿站#) has accumulated over 57.08 million views, with 3.81 million in the past 30 days. This is, of course, partly to do with the star power of Zhu, but it is also effective in bringing interest to the cause.

The “Food Station” is a proactive way of celebrating World Food Day and raises awareness of both food waste and hunger, and is a great ESG campaign for not only KFC but its stakeholders. Suppliers such as Sheng Nong made themselves visible to general consumers by working with KFC. It also takes both the international brand and its local suppliers closer to the communities in China.

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The restaurant opened its doors on 15 October. For the launch, McDonald’s teamed up with the viral Baby Shark IP from South Korea’s children’s education brand Pinkfong to release a song called “McDonald’s Green Restaurant” and its promotional video, based on the IP’s children’s song “Baby Shark Dance”. For the new restaurant opening, McDonald’s launched a themed prized draw to win merch, free Filet-O-Fish burgers and a calendar, as well as weekly reports on its app and Mini-Program.

With the help of Baby Shark, McDonald’s created an educational post discussing the innovation applied to the new Shenzhen restaurant. From using solar power, recycling waste and water, as well as collecting rainwater, the fast-food giant uses comic strips to illustrate the process. If you reply to its WeChat and Weibo posts with your wishes for the new green restaurant, you also have a chance of winning 1 of 8 pin badges exclusive to the opening.

McDonald’s has been focusing on its ESG in China, especially the sustainability side since it started to introduce LEED certification to the country. On Weibo, China’s Twitter-like platform, the topic “McDonald’s green restaurants” (#麦当劳绿色餐厅#) has accumulated 97.81 million views. With FSC-certified paper packaging and straw-less drinks, McDonald’s is pushing its green restaurant concept across the globe. The first Two Zero McDonald’s restaurant in Asia-Pacific opened in Beijing as a drive-thru in 2022 before the Guangzhou Zero Carbon restaurant that combines solar power generation and storage opened in March this year. China is now at the forefront among global branches in terms of environmental innovations. The endeavours of the fast-food chain show the possibilities of future restaurants.

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The space spans 8 storeys with over 7,000 sqm. The ground floor does not contain any shops and is reserved for content creation and campaigns such as pop-up shops and exhibitions. On the first day of opening, the ground floor hosted two activations, a Patagonia workshop and a mechanical art installation called “Realities Printer”.

The upper floors are now home to many young and creative brands with a sustainable ethos. From shoes made from recycled plastic bottles to a “top-up” shop that sells products without packaging. Youngor also operates a space of its own in the building, the Youngor Lab. An off-white space resembling a gallery, the space is used as a Youngor shop but the garments are displayed in the style of art objects in a museum.

The building itself utilises recycled and sustainable materials from industrial waste such as leftover wood and bricks. The HAI550 is Youngor’s exploration of retail spaces, with its design-centric layout, and the space also tries to bring “fun” back to shopping. Interestingly, it only has a handful of food and beverage outlets, which is rare in today’s retail landscape. Even the escalators only go up for energy saving purposes. High streets in Chinese cities face challenges as many stores and restaurants closed on Middle Huaihai Road over the past few years, but the new space can be seen as an exploration into experiential retail to bring back the footfall.

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Yili’s first ‘Double-reduced Environmentally Friendly Pure Milk’ adopts innovative low-carbon feed technology, which can significantly reduce methane emissions from the rumen of dairy cows by 20% to 30%. Moreover, the product’s packaging is innovative in its environmental process, using reduced aluminium foil and ink technology, which has been certified by SGS to effectively reduce the product’s carbon footprint by up to 30.81%.

The ‘Methane-reduced QQ Star Student Environmentally Friendly Pure Milk’, designed for the youth group, uses the same low-carbon feed technology and has an environmentally friendly packaging design to communicate the importance of a low-carbon lifestyle and guide them to cultivate such habits from an early age.

Yili Group owns more than 20 brands, including Yili, SATINE, and Ambrosial, with products ranging from liquid milk, milk powder and cheese. As the official dairy partner of the Chinese Sports Delegation for the 2024 Paris Olympics, Yili is one of the biggest and most all-encompassing dairy companies in China. It ranks among the top 5 dairy companies worldwide. Yili sells its liquid milk, milk powder, yoghurt, cheese, and cold beverages in more than 60 countries and regions; it has 15 R&D and innovation centres and 75 production bases worldwide.

Comparing market share and revenue capacity, Yili and Mengniu Dairy ranked as the top 2 in 2023. Also, since China is calling for ESG considerations, both are increasing their competitive advantages from profitability to sustainable development. With a “carbon footprint + water footprint” program, Yili has developed the “WISH 2030” Golden Key Sustainability System and a “double footprint” carbon reduction program for the whole chain for 2023.

In the field of biodiversity conservation, Yili has made significant efforts in recent years: eco-friendly management of the Hulunbuir grasslands, planting pine trees in Alxa League, guarding a wetland paradise for trumpeter swans, building an ‘elephant canteen’ for Asian elephants, and creating a new home for the endangered Chinese spot-billed duck.

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