China Huadian

China Huadian has not set any emissions reduction targets. The company should develop a long-term target that aligns with its 1.5°C pathway. Additionally, the company should set intermediate targets at gaps of no more than five years to incentivise near-term action on longer-term goals.

China Huadian’s emissions intensity decreased between 2017 and 2022 due to an increased share of wind generation. Its emission intensity is projected to remain static between 2022 and 2027 and its locked-in emissions is projected to significantly exceed its 1.5°C carbon budget over the period 2022-2037 due to its long-term significant reliance on fossil fuels. However, the company must reduce its emissions intensity by approximately 31% to align with its 1.5°C pathway in 2027.

Policy engagement

China Huadian does not have a policy in place to manage engagement with trade associations on climate change issues, or a monitoring and review process to ensure its policy positions remain consistent with the Paris Agreement goals. The company remains a vice-president member of some associations that are reported to oppose climate-aligned policies, such as the China Electricity Council (CEC). CEC prioritises energy security over an energy transition and is in favour of using coal to solve power outage problems.

China Huadian develops several low-carbon business models. The company’s share of non-fossil based installed energy capacity was 31.2% at the end of 2020, and it aims to reach more than 50% non-fossil based installed energy capacity by 2025.

China Huadian aims to reach a non-fossil based installed energy capacity of more than 50% by 2025.

Other than its targets for 2025, China Huadian does not disclose other key elements in relation to its transition planning.

China Huadian had 31.2% non-fossil based installed energy capacity by the end of 2020. The company is investing in energy mix transformation by increasing its non-fossil energy capacity. It has launched research projects to focus on the development of carbon utilisation and storage, renewable energy storage, hydrogen production from renewable energy sources and monitoring systems.

China Huadian’s emissions intensity decreased between 2017 and 2022 as its share of electricity generation from wind marginally increased. However, to align with its 1.5°C pathway in 2027, it must reduce its emissions intensity by approximately 7% per year.

The company plans to develop low-carbon energy, but it does not disclose further details on other key elements of transition planning, including its emissions or the scale of its energy production from fossil fuels. The company needs to improve its disclosure structure to include more financial and emissions data in the future.

No evidence was found of the company’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 the company 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-skill and up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re-skills 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 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 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.

No evidence of the company 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 the company 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.