BAIC Motor Corporation Ltd (北京汽车股份有限公司)

Low-carbon vehicle share

BAIC manufactures and sells electric vehicles through subsidiary Beijing Electric Vehicle Company. In 2012, low-carbon vehicles accounted for only 0.05 percent of BAIC’s total annual sales. This figure grew to 7 percent by 2017, increasing by more than all of the other companies assessed. BAIC must maintain this currently strong low-carbon share of sales growth rate. It should also make a public, quantified commitment to continue improving its low-carbon vehicle sales to remain aligned with the low-carbon pathway.

BAIC’s Optimus Initiative aims to integrate battery storage, battery swaps, electric vehicles, power plants and Solar Panel power station together to build a green transport ecosystem. Launched in 2016, the plan applies across low-carbon vehicle manufacturing and solar power generation. BAIC is making significant investments towards this initiative – around US$1.4 billion from 2016 to 2022 – which aligns with the investment required under the low-carbon pathway.

Even though emissions accounting and reporting in China centres around air pollutant emissions, rather than greenhouse gas emissions, BAIC still measures and publicly reports its manufacturing greenhouse gas emissions, providing data from 2017. It is the only Chinese company to do so. Continuing to monitor manufacturing emissions will lead to efficiency gains in BAIC’s vehicle production process and corresponding manufacturing emissions reductions.

BAIC’s supplier engagement focuses on reducing air pollutant emissions. The company could expand its engagement to include climate change mitigation and greenhouse gas emissions. Given its experience in reporting internal manufacturing emissions, BAIC should share its monitoring and reporting knowledge with suppliers.

BAIC has not made any public commitments regarding low-carbon vehicle production or emissions reductions.

BAIC shows no evidence of transition planning.

BAIC’s share of sales from low-carbon vehicles and its internal combustion engine efficiency are on track to meet the demands of the low-carbon pathway. Its fleet emissions are also well aligned with the low-carbon pathway, despite the company’s lack of clear targets or key performance indicators. Moreover, its recent research and development expenditure suggests that BAIC is preparing for an electric future.

BAIC has recently demonstrated a considerable increase in low-carbon vehicle sales and has improved its internal combustion engine efficiency, both of which resulted in the company’s reduced fleet emissions. BAIC has performed much worse on other transition indicators, such as targets.

BAIC has managed to reduce its fleet emissions by a considerable amount, which should be recognised as an achievement. However, the company lacks several crucial, strategic elements to align itself with the low-carbon pathway, such as transition planning and target setting.