Great Wall Motor 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.

No leading practices were identified for this company.

GWM has committed to fully achieve carbon neutrality by 2045. However, this target could not be assessed as no information was found regarding the company’s plans to use offsets. The company has set an intermediate target to reduce its scope 1 and 2 emissions intensity by 16% by 2024 compared to 2020, but it should develop further intermediate targets that cover its scope 3 emissions over regular intervals of five years to incentivise near-term action on its longer-term decarbonisation goal.

GWM has developed a low-carbon transition plan with a timescale that extends up to its 2045 net-zero target. However, the company has not set sufficient interim short- and medium-term targets. Additionally, while the company assesses the materiality of climate-related risks and opportunities, it has not conducted a climate scenario analysis. The company should assess the risks and opportunities associated with climate change through scenario analysis and use this to inform its transition plan and ensure the plan’s ambition is sufficient to set the company on a 1.5°C pathway. While the company reports a year-on-year increase of 37.9% in NEV sales in 2023, it does not disclose the sales share of battery electric vehicles (BEVs). As such, the company’s low-carbon business model growth could not be assessed. Providing a detailed low-carbon transition plan and improving data reporting will help GWM improve its benchmark performance and better achieve the low-carbon transition.

Although GWM has low-carbon activities, the company reports no financial details for these. Moreover, the company does not distinguish BEVs from NEVs in its reporting; thus the company’s shares of low-carbon vehicles and low-carbon revenue are unknown. In 2023, the company reported USD 1.3 billion in total capital expenditure (CapEx) and USD 1.1 in research and development (R&D) expenditure. However, the company does not disclose what proportion of its CapEx and R&D expenditure are invested in low-carbon vehicles and technologies. More importantly, as the company does not disclose sufficient emissions data to calculate a trend, it is unknown if emissions from the company’s sold vehicles over the next five years are expected to stay within its 1.5°C carbon budget. Disclosing all of this information will improve the company’s transparency and increase the credibility of its low-carbon transition plan.

While GWM has begun to engage with its suppliers, the company’s engagement strategy does not specifically require suppliers to reduce their greenhouse gas (GHG) emissions. There is also limited evidence of the impact of the company’s supplier engagement policy. Additionally, the company does not detail how it works with its clients, nor has it set out measures to influence them to reduce GHG emissions or promote the use of low-carbon alternatives. There is also no evidence of the company’s policy engagement strategy or its trade association memberships. The company should increase transparency around the implementation of its supplier engagement strategy, establishing and publicly disclosing clear GHG emissions reduction requirements as well as its intended response in case of non-compliance. It can also improve its performance by creating both a client and a policy engagement strategy.

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, but there is no evidence that it expects the same commitment from its business relationships. Also no evidence was found of the company having a time-bound target for paying all workers a living wage. The company does not disclose the proportion of its direct workforce covered by collective bargaining agreements or its required working hours. The company discloses two indicators of workforce diversity: the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. There is also no evidence of the company having a commitment towards gender equality.

No 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. While the company has a policy prohibiting bribery and corruption, there is no evidence that it includes corresponding clauses in its contracts with business relationships.