China Evergrande Group

Evergrande has not set emissions reduction targets. The company should introduce targets to cover emissions from both its own operations and its value chain. The company should ensure that this target aligns with its 1.5°C pathway. Furthermore, the company should set regularly spaced intermediate targets at gaps of no more than five years to incentivise near-term action.

There is no evidence that Evergrande has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the plan’s ambition is sufficient for a 1.5°C pathway.

Evergrande does not disclose the expected in-use emissions intensity data, or sufficient floor area and in-use absolute emissions data, for the buildings it developed in 2020 or previous years. As a result, it is not possible to provide a meaningful assessment of the company’s past emissions trend or projected future performance. Evergrande also does not quantify its commitments to perform renovations for clients to significantly reduce the emissions intensity of existing buildings.

Evergrande has not set any emissions reduction targets or reported other quantified measures of success. The company has not developed a vision of what its business will look like in a low-carbon future.

The company does not have a low-carbon transition plan and there is no evidence it intends to develop one in the near future.

Evergrande is attaining Chinese Green Building certifications for its building portfolio and looking to gain international building certifications in the future. The company is also considering the use of less emissions-intensive materials and expanding its use of prefabricated components to improve efficiency in the building process.

The company uses renewable energy from both solar and geothermal sources in its portfolio. It has also conducted a pilot project into ultra-low consumption buildings and has increased its use of LEDs.

Evergrande acknowledges climate change as an issue but has not developed a strategy to reduce emissions from its operations. There is little evidence that the company has integrated climate change into its business model.

No evidence was found that Evergrande commits to social dialogue or engages with the categories of stakeholders 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 was found stating Evergrande’s intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found that the company’s action promotes 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 available stating its intention to re- and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if Evergrande 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 Evergrande 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 Evergrande 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.

There is no evidence was found that Evergrande commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Furthermore, no evidence was found of a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. The company discloses some indicators of workforce diversity, including total employees by age and the leadership team by gender, However, no relevant disclosure was found of additional indicators of workforce diversity.

No policies or commitments of Evergrande 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.