CRRC Corporation

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.

CRRC has set targets to achieve carbon neutrality in its operations by 2035 and in its value chain by 2050. However, these targets are not detailed enough to be assessed. Moreover, the company has not publicly disclosed its scope 1, 2 or 3 emissions over the last 3-5 years. Therefore, it was not possible to assess CRRC’s alignment with its 1.5°C pathway.

Although CRRC has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. A lack of expertise at board or equivalent level could be a barrier to the successful management of the company’s low-carbon transition. CRRC discloses evidence of transition planning elements, such as long-term actions until 2050. However, the company lacks a robust strategy informed by climate change scenario analysis, that includes financial content and incentives, a carbon price and measurable actions.

CRRC reported a total CapEx of USD 3.1 billion in 2023. However, the company does not disclose what proportion of its CapEx went went to low-carbon and mitigation technologies. Moreover, no evidence was found regarding CRRC’s low-carbon R&D investment in 2023.

CRRC uses action levers such as information collection and engagement and incentivisation in its strategy to encourage suppliers to reduce greenhouse gas (GHG) emissions. However, it does not specifically include GHG emissions reduction requirements. Creating quantified targets will provide clearer direction to the company’s whole supply chain. Further, CRRC does not have a strategy in place to engage with its clients to reduce their emissions.

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 CRRC 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.

CRRC discloses the measures it takes to ensure that jobs embed equality of opportunity for women and vulnerable groups. In particular, it promotes team construction of female scientific and technical workers. However, no evidence was found of CRRC committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks. CRRC discloses the actions it takes to provide reskilling and upskilling opportunities for workers and affected stakeholders. For instance, it organises annual training schemes for its employees. 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.

CRRC commits to respecting human rights and the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and its supply chain. Moreover, no evidence was found of CRRC disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers.

CRRC commits to respecting the health and safety of its workers. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. CRRC does not disclose the proportion of its direct workforce covered by collective bargaining agreements, nor its required working hours. 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. Moreover, no evidence was found of CRRC having a commitment towards gender equality and women’s empowerment.

CRRC discloses a publicly available policy statement prohibiting bribery and corruption. However, no other policies or commitments of the company related to key ethical business topics – personal data protection, tax 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.