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

Geely’s subsidiary Volvo Car Group has science-based targets. Volvo Car Group has set a target to reduce absolute scope 1 and 2 emissions by 60% by 2030 compared to 2019. This target is consistent with a 1.5°C pathway. Volvo Car Group also has set a well-below 2 degrees aligned science-based target to reduce its scope 3 emissions intensity by 52% between 2019 and 2030. However, Volvo Car Group only accounts for a third of Geely’s total production and sales. There remains an opportunity for Geely to set similarly ambitious emissions targets for other Geely Group companies and utilise synergies with Volvo Car Group to reduce emissions across the group.

Geely increased its new energy vehicle sales between 2018 and 2020. In 2018, its new energy vehicle sales accounted for 5% of total sales, increasing to 7.9% by 2020. However, Geely’s increase in its share of new energy vehicle sales was insufficient to meet its 1.5°C pathway in 2020. The company will need to significantly increase its sales to meet the 64.5% share needed by 1.5°C pathway by 2030.

Geely works on environmental supplier engagement through low-carbon logistics and green packaging. The company does not collect information from its suppliers on their emissions and actions to reduce emissions, though the Volvo Cars subsidiary does through the CDP supply chain programme. Geely could improve by incorporating emissions reduction expectations into its procurement policy, developing joint low-carbon research and development (R&D) projects with suppliers or by making purchase commitments for low-carbon products like green steel.

Geely has not published a group level emission reduction target or target for new energy vehicle sales. Its subsidiary Volvo Cars has set science-based targets to reduce scope 1 and 2 emissions by 60% and scope 3 emissions intensity by 52% by 2030.

Geely provides information on its climate-related risks, green production, and low-carbon value chain. The company does not disclose a forward-looking low-carbon transition plan or discuss plans to shift to a lower carbon product portfolio.

In 2020, 7.9% of Geely’s sales were new energy vehicles, which increased from 8.7% in 2018. The company did not disclose what proportion of its research and development expenditure was dedicated to low-carbon technologies.

Geely’s scope 3 emissions intensity increased from 83.3 grams CO2 per passenger kilometre (gCO2/p.km) in 2015 to 85.2 gCO2/p.km in 2020. The company reduced its scope 1 and 2 emissions intensity from 0.512 tonnes of CO2 per vehicle produced in 2016 to 0.475 in 2020.

The company has made little progress in reducing the in-use emissions of its sold vehicles, though there have been efforts to increase the new energy vehicle sales share from 2018 to 2020. How the company plans to reduce manufacturing emissions and scale low-carbon vehicle sales is not known.