China Huaneng

China Huaneng 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 its longer-term goals.

There is no evidence that China Huaneng 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. Further, the plan should be informed by scenario analysis to ensure that its ambition aligns with a 1.5°C pathway.

China Huaneng 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.

By the end of 2021, non-fossil energy accounted for 38% of China Huaneng’s installed energy capacity. There is evidence that the company is attempting to diversify its energy mix through increased renewable energy generation capacity. However, the company discloses little information on the growth potential of these technologies. China Huaneng should outline its plans for growing its low-carbon generation and transitioning to a low-carbon economy.

China Huaneng has not disclosed details of any commitments to transition towards a low-carbon economy.

China Huaneng does not have a low-carbon transition plan.

The share of China Huaneng’s installed low-carbon energy capacity is 38%. The company has established a research institute for carbon neutrality to carry out basic research on strategic orientation towards carbon neutrality. It has also been investing in research on low-carbon technologies, including nuclear sources, offshore wind power, CCUS, chemical batteries, compressed air energy storage and energy efficiency.

The company’s emissions intensity trend remained static between 2017 and 2022 as its share of electricity generation from fossil fuels only decreased by around 2% in this five-year period. To align with its 1.5°C pathway in 2027, the company must reduce its emissions intensity by approximately 7% per year.

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

No evidence was found that the company commits 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.

The company discloses the actions it takes to create green and decent jobs through providing jobs in project management and construction services, and creating jobs in green energy projects. However, no public commitment by the company was found in the public domain stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. No evidece 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 re- and up-skilling, training and education opportunities for workers and affected stakeholders. For instance, it has created training programmes and a learning research group devoted to upskilling and content development. 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 of the company having a process for identifying skills 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 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.