Guangzhou Automobile Group

No leading practices were identified for this company.

Guangzhou Automobile Group significantly increased its low-carbon vehicle sales between 2021 and 2023 aligning with the rate required by its 1.5°C pathway. In 2022, the share of low-carbon vehicle sales constituted 12% of the company’s total sales, increasing to 20% by 2023.

No leading practices were identified for this company.

No leading practices were identified for this company.

Guangzhou Automobile Group aims to reduce its carbon intensity by 20% by 2025 and achieve carbon neutrality by 2050, setting a challenge to do this by 2045. However, the company does not disclose its upstream and downstream scope 3 emissions data or the base year and baseline emissions intensity to meaningfully assess its targets. Between 2019 and 2023, Guangzhou Automobile Group’s scope 1 and 2 emissions intensity increased from 0.37 to 0.42 tonnes of carbon dioxide (t/CO2) per vehicle sold, which contrasts with the company’s 1.5°C pathway. Guangzhou Automobile Group 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 goals.

Guangzhou Automobile Group does not have a low-carbon transition plan that is aligned with a 1.5°C pathway. However, the company does disclose evidence of transition planning, such as aiming for independent brand NEVs to comprise 50% of sales by 2023 and for NEVs to make up 60% of total group sales by 2030. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy, with medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Moreover, the plan should be informed by scenario analysis to ensure its ambition aligns with a 1.5°C pathway. Guangzhou Automobile Company does not incentivise low-carbon performance through executive compensation. The company can improve the likelihood of a successful low-carbon transition by aligning its incentives with its decarbonisation commitments.

In 2023, Guangzhou Automobile Group invested USD 1.2 billion in research and development (R&D). However, the company does not disclose the proportion of this expenditure dedicated to low-carbon technologies, nor does it provide information on its planned total or low-carbon capital expenditure (CapEx) or revenue from low-carbon vehicles. Additionally, as Guangzhou Automobile Group 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. The company needs to step up its ambition to align its 1.5°C pathway, which requires 67% of automobile sales in 2030 to consist of low-carbon vehicles.

Although Guangzhou Automobile Group has implemented a supplier engagement strategy, it does not specifically include greenhouse gas (GHG) emissions reduction requirements for suppliers. Creating quantified targets will provide clearer direction to the company’s whole supply chain. Further, the company provides limited evidence of a client engagement strategy to promote the use of low-carbon alternatives among its clients or influence them to reduce their GHG emissions. The company also does not disclose a policy to manage engagement with trade associations on climate change issues.

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.