China Merchants Shekou Industrial Zone Holdings

CMSK established the Green Real Estate Research and Development Centre in 2009 which was upgraded to the City Research Institute in 2016. The company has released several technical guidelines on green development and low-carbon construction. CMSK invested over  USD 50 million in green and technological innovations, however, it is not clear over what period of time these investments were made. The company can improve by disclosing its total R&D investments and investments in low-carbon R&D in the reporting year.  

CMSK has established a supplier management mechanism, which includes contract performance evaluation via questionnaires and inspections, a rewards procedure and a process to penalise suppliers for non-compliance. The company evaluates suppliers based on management, environmental protection measures and reputation, and holds at least one conference or meeting per year to improve supplier quality and services. CMSK’s supplier training program covers 100% of its suppliers. The company can improve by including quantified emissions reductions and requiring public reporting on GHG emissions for suppliers. 

CMSK aims to reduce carbon emissions from owned projects by 20% and from the construction process by 50% by 2025. The company does not specify  the scopes and boundaries of emissions covered by these targets or the base year. The company should set a long-term net-zero target and regularly spaced intermediate targets at gaps of no more than five years to incentivise near-term action. Additionally, the company should clearly report its base year emissions and disclose any use of offsets, to allow for a complete analysis of its targets and progress against them. 

CMSK does not have a designated senior management or board member responsible for climate change management and does not currently have a publicly available transition plan. There is no evidence that the company offers financial incentives to employees for climate-related actions. The company has not conducted climate scenario analysis, but it has incorporated climate change risks into its risk management processes. CMSK has developed a low-carbon construction system with the aim to lower costs, shorter design cycles, and reduced carbon emissions.  

CMSK is working to raise awareness of energy management among its property management personnel. The company tracks energy consumption at various stages and helps tenants optimise energy-saving strategies. The company developed guidelines on energy conservation and provides training for tenants to increase their energy conservation awareness. New tenants are encouraged to sign green leases and environmental commitment letters. Additionally, CMSK established an environmental inspection team to supervise tenants’ performance of environmental responsibilities. The company can improve by evaluating the impact of these actions. 

CMSK supports China’s carbon neutrality by 2060 goal. The company aims to reduce carbon emissions by 20% from owned projects and by 50% from the construction process by 2025. However,the scope of emissions covered by the targets and the base year, are not clearly defined.  

The company developed guidelines for the carbon neutrality plan. It has developed a low-carbon construction system with the goal of lower costs, shorter design cycles and reduced carbon emissions. However, there are no long-term targets or detailed plans beyond 2025. 

CMSK constructs prefabricated buildings, increases the use of renewable energy and renovates finished buildings to minimise carbon emissions. It installs source heat pumps, frequency converters, smart lighting and other energy-saving devices. CMSK has a strategy to influence its clients to reduce their emissions. 

The company increased the number of projects with Leadership in Energy and Environmental Design (LEED) certification from 19 to 102 between 2017 and 2021 CMSK does not disclose sufficient emissions intensity data to analyse its performance to date.  

CMSK invests in R&D in mitigation technologies and includes low-carbon buildings in its portfolio. However, the company has not set ambitious long-term emissions reduction targets and does not have a clear plan to achieve carbon neutrality.  

No evidence was found that CMSK commits to social dialogue or engages with the categories of its 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 that the company undertakes 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 CMSK’s intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote 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.  

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it implements the African Youth Innovation and Entrepreneurship Training Center Project for African youths to build up leadership skills and start businesses. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found that the company has a process for identifying skill gaps for workers and affected stakeholders, or a public commitment to help workers displaced by the transition to re- or up-skill. 

No relevant disclosure was found to show if CMSK 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 the company 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 CMSK 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. 

While CMSK discloses how it monitors the health and safety performance of its business relationships, no evidence was found that the company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. Moreover, no evidence of the company’s other policies or commitments related to key decent work issues was found in the public domain. These issues include the provision of security, where workers are fairly renumerated and have a meaningful say in decision-making. 

No policies or commitments of CMSK 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.