Taicang: A Model for China-Europe ESG Cooperation

Located in the Yangtze River Delta, Taicang City in Jiangsu Province is known as the “Hometown of German Enterprises in China.” At the recent 2^nd Sino-European Corporate ESG Best Practice Conference, Taicang received the prestigious “Zero-Carbon City” Best Practice Award, further solidifying its reputation as a benchmark for green urban transformation.

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A glimpse of Taicang City, Jiangsu Province, China.

According to the jury, “By integrating ESG indicators into its urban development strategy, Taicang has demonstrated visionary leadership and has become a model for sustainable city and industrial development.”

In response to the global challenges of climate change and sustainable growth, Taicang has proactively aligned with China’s “dual carbon” strategy. It has positioned itself as a modern garden city driven by green development, integrating ESG principles into industrial park development, industrial clusters, and social governance. With over 550 German enterprises, Taicang has established a unique model of sustainable growth through a triad of government leadership, enterprise innovation, and international cooperation.

Capitalizing on its close ties with Germany, Taicang partnered with GIZ (German Agency for International Cooperation) to establish the Sino-German Green and Low-Carbon Cooperation Park and pilot an energy efficiency network for low-carbon industrial zones. The city has also introduced innovations such as a green trading hall and a carbon footprint management platform, forming a closed-loop green energy ecosystem.

Taicang is transforming from traditional manufacturing to green manufacturing. Schaeffler’s Taicang plant has earned an “A” rating from CDP for three consecutive years. Nike’s China Logistics Center operates on 100% renewable energy, and Camfil’s rooftop solar panels generate 1.4 million kWh annually, covering 30% of its energy needs. These efforts have significantly improved city-wide carbon efficiency.

Urban planning efforts include the “Green City Expansion Plan,” featuring a “four vertical and four horizontal” network of green and water corridors. Taicang, representing China at the Sino-German Energy Efficiency Working Group, has integrated ESG metrics into urban strategy and introduced an innovative “Corporate Environmental Manager” system.

Ranked the third among China’s 2024 Green Development Top 100 Cities, Taicang exemplifies how county-level cities can achieve green transformation through systematic planning, industrial upgrading, and deep international collaboration—serving as a replicable model for China-Europe ESG cooperation.

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