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Zhejiang Geely Holding Group (浙江吉利控股集团)

Known for Volvo, Lynk & Co.

Zhejiang Geely Holding Group is a privately owned auto manufacturer headquartered in Hangzhou, China. In 2019 it had US$14.1 billion in revenue and sales of over 2 million vehicles. 73 percent of Geely’s 2019 sales were in China. The company has sales in all major regions except India and has substantial sales in Europe and North America. Outside of China, 97 percent of the company’s sales come from Volvo.

Summary

Zhejiang Geely Holding Group has a performance score of 8.0 out of 20 against a well below 2-degree pathway. This is higher than its 2019 assessment, when it achieved a performance score of 7.6 against the less ambitious 2-degree pathway. This assessment includes Volvo, a subsidiary that accounted for a third of Geely’s sales in 2019.

Geely is seeking to improve its management of climate change issues and planning for the low-carbon transition. In its 2019 corporate social responsibility report, Geely began implementing the Taskforce on Climate-related Financial Disclosure’s recommendations and states an intention to set emissions reduction targets. Volvo has ambitious science-based targets aligned with a 1.5-degree pathway, but group-wide targets are currently absent and should be set. Geely is developing new business areas that can facilitate a low-carbon transportation system. Its mobility service Cao Cao serves over 167 million people and it owns the London EV Company, which under Geely has introduced 2,500 new electric taxis. Geely is also developing hydrogen fuelled buses, whilst Volvo has introduced a subscription service for customers who need to use a car for a limited period of time.

Assessment Note: Zhejiang Geely Holding Group received a full ACT assessment in 2019. The 2019 scorecard for this corporate group should read "Zhejiang Geely Holding Group" and will be updated shortly.

Performance module name	Performance module score	Rank (0-30)
Targets	0.8 /3	#15
Material Investment	0.0 /0.4	#12
Intangible Investment	1.2 /2.4	#10
Sold product performance	3.6 /7	#14
Management	0.3 /2.2	#21
Supplier	0.3 /1.2	#10
Client	0.6 /0.8	#3
Policy Engagement	0.6 /1.2	#6
Business Model	0.6 /1.8	#6

The company has reported its scope 1 and 2 manufacturing emissions since 2016. When combined with Volvo’s separately reported manufacturing emissions, there is a slow decrease from 0.308 grams CO2e per vehicle produced to 0.259 grams CO2e per vehicle produced, which is insufficient to be aligned with its well below 2-degree pathway. Its score could also improve in the significant ‘sold product performance module’, which looks at the in-use emissions of the company’s vehicles. Geely’s average vehicle in-use emissions in 2019 were 139 grams CO2e per kilometre, slightly lower than the 2014 average of 149 grams CO2e per kilometre.

The company’s low-carbon vehicle sales have steadily increased, but because Geely has seen a great increase in overall sales, its low-carbon vehicle sales share has not increased significantly since 2015. Geely should aim for more consistent and rapid decreases in vehicle in-use emissions, which can be achieved by increasing its low-carbon vehicle sales share and improving internal combustion engine efficiency.

See results for

2019
2021

More about the company

Headquarters: China
Ownership structure: Privately owned
Revenue (2019): US$14.1 billion
Number of vehicles sold (2019): 2,075,896
Website: http://zgh.com/