Jiangsu Zhongnan Construction Group

Zhongnan reports working with several universities to advance research into prefabricated buildings. It has also built the Zhongnan Intelligent Manufacturing Factory to support green product research and development. In 2021 the company invested USD 9.4 million in R&D. However, Zhongnan does not disclose what proportion of its R&D expenditure is invested in climate mitigation.

There is no evidence that Zhongnan 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, quantified key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure the plan’s ambition is sufficient for a 1.5°C pathway. Although Zhongnan has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. No senior expertise could be a barrier to the successful management of the transition plan once established.

Zhongnan does not disclose in-use emissions intensity data or sufficient floor area and absolute in-use emission data for the buildings in its portfolio in 2021 or previous years. The company does not disclose commitments to renovate the buildings in its portfolio to reduce the in-use emissions intensity in the future. As a result, it is not possible to provide a meaningful assessment of the company’s past emissions trend or projected future performance.

Zhongnan has not set any targets to reduce its emissions intensity. To improve, the company should develop long-term and intermediate targets that align with its 1.5°C pathway. Setting intermediate targets at gaps of no more than five years will incentivise near-term actions towards the longer-term goal. 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.

Zhongnan has not set any emissions targets, nor any other measures of success. The company has not developed a vision of what its business will look like in a low-carbon future beyond small-scale actions.

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

Zhongnan is exploring the application of green building materials, including reducing the use of cement and increasing the use of recycled materials, wood and high-thermal insulation materials. The company is also increasing the use of prefabricated material.

Zhongnan does not disclose emissions intensity data. The company is working with universities to advance research into prefabricated buildings. However, both the scale of this investment and the extent to which the company is integrating prefabricated buildings into its business model is unclear.

While Zhongnan has begun to explore the use of green building materials, the company’s lack of targets, strategy and emissions intensity data all suggest that the company is not yet fully committed to the low-carbon transition.

No evidence was found of Zhongnan’s commitment to social dialogue or of the categories of stakeholders the company engages with 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 by Zhongnan 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 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.

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 Zhongnan 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 Zhongnan 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.

No evidence of Zhongnan’s policies or commitments related to key decent work issues were found in the public domain. These issues include the provision of secure, safe and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.

No policies or commitments of Zhongnan 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.