BYD

No leading practices were identified for this company.

No leading practices were identified for this company.

BYD’s low-carbon vehicle sales are aligned with the rate required by its 1.5°C pathway between 2018 and 2023. However, its share of low-carbon vehicle sales fell from 64% of total sales in 2019 to 52% by 2023. The company will need to continue to significantly increase its low-carbon vehicle sales to meet its 1.5°C pathway, which requires 67% of automobile sales to consist of low-carbon vehicles by 2030.

No leading practices were identified for this company.

BYD has not publicly disclosed specific emissions reduction targets for any of its scope 1, 2 or 3 emissions from its manufacturing operations, its purchased materials or, crucially, from the downstream emissions of its light-duty vehicles (LDVs). The company should develop a long-term target that aligns with its 1.5°C pathway and covers its scope 1, 2 and 3 emissions. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on its longer-term decarbonisation goals.

BYD provides various products that align with a low-carbon economy. However, the company does not yet disclose a comprehensive low-carbon transition plan to commit to action towards decarbonisation. Consequently, it remains unknown how BYD plans to reduce PHEV sales and increase its sales of low-carbon vehicles. The company can strengthen its performance by improving disclosure of its low-carbon transition plan.

While more than half of BYD’s vehicle sales comprise low-carbon vehicles, this share has seen a significant decline from 64% in 2019 to 52% in 2023. Reducing emissions aligned with a 1.5°C pathway requires companies to continue increasing their sales of low-carbon vehicles and reducing PHEV sales. With its existing expertise in batteries and low-carbon vehicles, BYD has an opportunity to step up its ambition to meet its 1.5°C pathway, which requires 67% of automobile sales in 2030 to consist of low-carbon vehicles.

BYD does not disclose a policy to manage engagement with trade associations on climate change issues. The company is a member of the China Association of Automobile Manufacturers (CAAM). CAAM has actively advocated for the long-term use of internal combustion engine (ICE) vehicles in China. BYD can increase its credibility by developing and publicly publishing a monitoring and review process to ensure its policy positions, and those of its trade associations, are aligned with the Paris Agreement goals.

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.  The company discloses the actions it takes to provide reskilling and upskilling as well as training opportunities for workers and affected stakeholders. For instance, it has training programs and has set technical evaluation committees to grant technical titles. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.  

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. 

The company commits to respecting human rights. However, it does not commit to respecting the ILO fundamental rights at work, and it does not expect its business relationships to respect the ILO fundamental rights at work. Furthermore, the company does not disclose a human rights due diligence process that includes the identification and assessment of salient human rights risks, nor does it take action to mitigate these risks in its own operations and its supply chain. Additionally, the company does not engage with affected stakeholders, and it does not have a grievance mechanism available to workers and external stakeholders.  

The company commits to respecting the health and safety of its workers but does not expect the same commitment from its business relationships. Furthermore, there is no evidence of the company having set a time-bound target for paying all workers a living wage or limiting required working hours to 48 hours per week. The company does not disclose the proportion of its direct workforce covered by collective bargaining agreements. It 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 does not have a commitment towards gender equality and women’s empowerment. 

The company does not commit to protecting personal data and does not disclose a privacy statement regarding the use of personal data. Additionally, the company does not disclose its global tax strategy or board accountability for the strategy. The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, it does not have a lobbying and political engagement policy.