Chery Holding Group

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.

Chery Holding Group has not established carbon emissions reduction targets and has not publicly disclosed the emissions intensities for its operations over the last five years. Total emissions and activity data for the company that would allow for intensities to be calculated were only available for 2023. The company should develop a long-term emissions reduction target that aligns with its 1.5°C pathway and covers its scope 1, 2 and 3 emissions. Additionally, it should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

Chery has conducted scenario testing but does not define the scope and timescale of the testing. While the company has identified some potential financial impacts of climate change and some management measures to address them, the impacts and measures have not been quantified. The results of the company’s scenario testing have informed the development of its transition plan. However, the plan lacks measures of success and it is not clear if the plan applies to all of the company’s business units and operations. There is limited evidence that the company is creating or expanding low-carbon business models or has put in place actions to decarbonise activities within its existing business models. 

Chery does not disclose financial information on its capital expenditure (CapEx) and research and development (R&D) to mitigate climate change, nor does it disclose its revenue from low-carbon vehicles. The company has a low share of low-carbon vehicle sales, with BEVs representing only 5% of overall sales. As Chery does not disclose sufficient emissions data to calculate an emissions trend, it is unclear if the emissions from its sold vehicles over the next five years are expected to stay within its 1.5°C carbon budget. The company needs to step up its ambition to align its 1.5°C pathway and gear towards increasing its low-carbon vehicles sales share to 67% by 2030.

Chery engages with its suppliers, conducting carbon footprint verification on supplier products and proposing targeted carbon reduction plans. However, it does not specifically include any quantified greenhouse gas (GHG) emissions reduction requirements for suppliers. Creating quantified emissions targets will provide clearer direction to the company’s whole supply chain. Additionally, there is no evidence that the company’s supplier engagement has been impactful. Measuring the impact of its actions will help both the company and its supply chain to monitor the progress being made. In contrast to its supplier engagement efforts, the company does not detail how it works with its clients to reduce emissions. The company can improve its performance by creating a client engagement strategy, governed by a clear policy and integrated into business decision-making.

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.  

No evidence of the company’s policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of safe, secure and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision-making.

No policies or commitments of the company related to key ethical business topics – personal data protection, tax, bribery and corruption, and lobbying and political engagement – were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.