CIFI Holdings

CIFI has not set any emissions reduction targets. The company upgraded its specifications to align with the carbon reduction targets and requirements announced by the government, which is aiming to achieve carbon neutrality by 2060. The company should introduce a long-term net-zero target and regularly spaced intermediate targets aligned with its 1.5°C pathway to cover emissions from both its own operations and its value chain. Failure to set ambitious emissions reduction targets indicates a lack of corporate commitment to and internal planning for transition.

The company has implemented board-level oversight of climate. However, there is no evidence that its board has adequate climate expertise. A lack of expertise at board or equivalent level could be a barrier to successful management of low-carbon transition. There is no evidence of financial incentives for employees, including board members, for the management of climate change issues. The company has not conducted climate change scenario analysis, however, it has begun assessing its climate-related risks and aims to develop an emissions reduction plan in the future. This plan should be informed by scenario analysis to ensure the company’s ambition is aligned with a 1.5°C pathway.

CIFI’s client engagement strategy, aims to encourage its tenants to integrate environmental practices into their daily operations and to comply with guidelines for energy-efficient appliances. In 2021, CIFI provided 93 training sessions on energy and water conservation to its tenants. The company can improve by tightening its requirements for tenants and by evaluating the impact of its customer engagement strategy.

CIFI Holdings prioritizes suppliers with positive Environmental, Social and Governance (ESG) performance. Environmental management is a core requirement for suppliers. The company promotes green supply chain management, taking into consideration the impact of construction materials on the environment and human health. CIFI forms strategic partnerships with timber suppliers with green certifications. CIFI encourages its suppliers to improve energy-saving processes, but it does not specifically mention emissions reduction or low-carbon transition among its requirements.

CIFI stated its support of the Chinese government’s targets of carbon peaking in 2030 and carbon neutrality in 2060. The company has not set any emissions reduction targets but set up several targets related to green certification of its buildings in the future.

In 2021 CIFI began assessing its climate-related risks according to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations and is aiming to develop an emissions reduction plan in the near future.

In 2021, the company issued its second batch of offshore green bonds for USD 500 million and plans to invest in green buildings, clean transportation, energy efficiency, renewable energy and climate change adaptation. 

CIFI is increasing the use of renewable energy and regularly updates equipment and appliances such as low-energy HVAC systems, energy-saving equipment, heat recovery systems. However, the emissions intensity of its commercial operations has doubled between 2019 and 2021.  

CIFI implemented a set of measures and announced several operational improvements to be introduced in the near future. However, a detailed transition plan with long–term emissions reduction targets and regularly spaced intermediate targets are required to incentivise near-term actions towards decarbonisation

No evidence was found of that CIFI Holdings 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 its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of CIFI Holdings 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.

No public commitment by the company was found 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 the company 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 CIFI Holdings 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 from the company 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.

The company does not commit to respecting the health and safety of its workers. However, it does expect commitment of its business relationships to include the health and safety of its workers. 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 the direct workforce’s gender and age. However, no relevant disclosure was found of additional indicators of workforce diversity. Nevertheless, the company commits to gender equality and women’s empowerment.

The company does not commit to worker health and safety and gender equality, and it does not discloses any information on collective bargaining and workforce diversity fundamentals. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.

The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. While the company discloses its global tax strategy, no relevant disclosure was found of the corporate income tax paid for each relevant jurisdiction. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. Furthermore, the company has a lobbying and political engagement policy, and it specifies that it does not make political contributions. Yet, no relevant disclosure was found of the company’s expenditure on lobbying activities.

The company commits to personal data protection, and it has policies regarding anti-bribery and anti-corruption, responsible tax practices and responsible lobbying and political engagement. However, the company can strengthen its disclosure on these subjects.