Geely Automobile Holdings Limited (吉利汽车控股有限公司)

Low-carbon vehicle share

Geely has rapidly increased its share of sales that come from low-carbon vehicles. In 2012, low-carbon vehicle sales accounted for only 0.02 percent of the company’s total annual sales, increasing to 5 percent by 2017. Moreover, Geely has publicly committed to 90 percent of total sales in 2020 to come from low-carbon vehicles. Despite its progress thus far, projections indicate that Geely will need to further accelerate its increase of low-carbon vehicle sales to deliver on this commitment and remain aligned with the low-carbon pathway.

Geely has business activities that focus on optimising low-carbon passenger transport and manufacturing vehicles that facilitate a shift towards alternative mobility solutions. Geely’s car sharing service Cao Cao has been in operation since 2015. The company also produces electric buses through subsidiary Geely New Energy Commercial Vehicle Group. However, information regarding the size and profitability of these activities was limited. Geely could provide more detailed reporting to demonstrate its efforts to move beyond traditional vehicle ownership and readiness for a low-carbon economy.

Geely’s supplier engagement focuses on compliance with air pollutant regulations and green procurement. The company could expand its engagement to cover broader climate action and greenhouse gas emissions reductions. It could also promote better collaboration among companies in the automotive industry to support the dissemination of best practices in regard to China’s ‘new energy’ vehicle push energy.

Geely has committed to 90 percent of its total sales in 2020 to come from low-carbon vehicles. However, the company has not publicly shared its emissions reduction commitments.

Geely does not have a comprehensive low-carbon transition plan. Therefore, it is unclear how the company intends to reach its ambitious 90 percent low-carbon vehicle sales target. Furthermore, there is not any available evidence of the company engaging with consumers to increase sales of its low-carbon vehicles nor evidence of its investment in the supporting infrastructure to facilitate their uptake, such as charging stations.

Geely’s share of sales from low-carbon vehicles and its internal combustion engine efficiency are currently aligned with the low-carbon pathway. Moreover, its fleet emissions are also well aligned with the levels required under the pathway.

Geely has demonstrated substantial increases in its share of sales from low-carbon vehicles in the recent past. Coupled with its improving internal combustion engine efficiency, the company’s efforts have resulted in fleet emissions to levels that are aligned with the low-carbon pathway.

Geely has significantly reduced its fleet emissions, which is an achievement. However, the company lacks many strategic elements crucial to keep pace with the rapid changes required to remain aligned with the low-carbon pathway, such as emissions reductions targets and board-level oversight for climate issues.