BAIC

No leading practices were identified for this company

No leading practices were identified for this company

No leading practices were identified for this company

No leading practices were identified for this company

BAIC has made progress in reducing its scope 1 and 2 emissions intensity, showing a clear downward trend between 2019 and 2023. However, the company’s lack of targets for its upstream and downstream scope 3 emissions jeopardises its opportunity to align with a 1.5°C pathway. The company has also not set intermediate targets for its scope 1 and 2 emissions. Setting intermediate targets at regular intervals of five years or less can help the company incentivise near-term action on its longer-term 2050 carbon neutrality goal.

BAIC has a transition plan with specific, measurable, achievable and relevant ESG indicators that are aligned with the company’s low-carbon objectives. Additionally, it’s board has the high-level responsibility for ESG decision-making. Nonetheless, BAIC’s transition plan discloses only limited data on financial content, and it does not include long-term actions or the timescale covered. There is also no scenario testing to align the company’s commitments with the Paris Agreement goals. The company’s transition plan contains only short-term actions covering all its units and supply chain. No disclosure was found regarding a possible update to the transition plan. The company is focused on the creation and expansion of low-carbon business models and has experienced a significant increase of 46.6% in the sales of new energy vehicles (NEVs) in 2023. Apart from this, the company has demonstrated no other significant changes, such as phasing out existing high-carbon businesses or putting in place actions to decarbonise activities within existing business models.

The company should increase transparency around its low-carbon CapEx and R&D and enhance its reporting to better demonstrate its locked-in emissions from sold products, efficiency performance of low-carbon vehicles and revenue from low-carbon products and services.

There is no evidence that BAIC has a policy engagement strategy. In relation to client engagement, the company reports having created a carbon trading platform that establishes a carbon credit system for users. No further evidence was found of recommendations or other levers embedded in the company’s strategy to influence clients to reduce their greenhouse gas (GHG) emissions. BAIC requires suppliers to comply with green supply chain control measures, with the possibility of applying penalties or cancelling supplier qualifications if they do not meet the requirement. However, the suppliers are not required to report their GHG emissions. BAIC reports the type of levers it uses to engage, incentivise and collect information from suppliers, but it does not publicly disclose the specific results or impacts of these levers. 

No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.  No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

No policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain. 

The company commits to respecting the health and safety of its workers. However, it does not disclose relevant information on the number and rate of work-related injuries. It also does not disclose the proportion of its direct workforce covered by collective bargaining agreements. The company publicly states that workers shall not be required to work more than 48 hours in a regular working week, or 60 hours including overtime, but no evidence was found that all overtime work must be consensual and be paid at a premium rate. The company discloses the proportion of women in its highest governance body, but this is less than 30%. Moreover, it does not disclose the ratio of the basic salary and remuneration of women to men in its total direct operations workforce per employee category. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company can strengthen its disclosure on these and other topics, such as living wages and how it determines these for the regions where it operates.

The company has a public statement prohibiting bribery and corruption, but it does not describe the processes to identify bribery and corruption risks and impacts in its operations. While the company has a public commitment to protecting personal data, it does not have a publicly available privacy statement. No other company policies or commitments related to key ethical business topics – tax, lobbying and political engagement – were found in the public domain.