China Three Gorges

China Three Gorges 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 Three Gorges’ emissions intensity has not reduced at a sufficient rate to align with its 1.5°C pathway between 2017 and 2022. The company’s emissions intensity is expected to increase by around 40% between 2022 and 2027 and its locked-in emissions are projected to significantly exceed its 1.5°C carbon budget over the period 2022-2037 due to the projected increase in the share of its fossil fuel-fired electricity to 12% of its energy generation mix in 2027. However, the company must reduce its emissions intensity by approximately 30% to align with its 1.5°C pathway in 2027.

There is no evidence that China Three Gorges 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 is sufficient to align with a 1.5°C pathway.

China Three Gorges 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. The company should use its leverage as vice-president of the association to influence it to better align with the low-carbon transition.

China Three Gorges aims to achieve carbon neutrality before 2040. However, the company has not backed this target with a transition plan.

China Three Gorges does not have a low-carbon transition plan.

China Three Gorges had a total installed energy capacity of 109.4 GW by 2021, 96% of which comprises low-carbon energy. About 94.2% of the company’s generated energy in 2021 was from low-carbon sources. The company is expanding its installed capacity for low-carbon energy. In 2021, the company’s newly installed renewable energy capacity, including onshore and offshore wind as well as solar photovoltaic (PV), generated over 9 GW of power, with a year-on-year increase of 110%.

China Three Gorges’ emissions intensity has not reduced at a sufficient rate to align with its 1.5°C pathway between 2017 and 2022. To align with its 1.5°C pathway in 2027, the company must reduce its emissions intensity by approximately 8% per year.

Although the company has reached a low-carbon share of over 96% in its installed energy capacity, it does not disclose emissions or details for its fossil energy assets. The company is projected to increase the share of fossil fuel-fired electricity in its generation mix from around 8.7% in 2022 to 12% in 2027, which is expected to impact its low-carbon transition. The company should improve its disclosure 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 just transition planning to mitigate the social impacts of the low-carbon 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 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 actions 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 has skill competitions and programmes to provide training to local communities. 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 reskill or upskill.

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 company policies or commitments 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 commits to respecting the health and safety of its workers. However, no other evidence of the company’s policies or commitments related to key decent work issues was 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.

The company has a policy prohibiting bribery and corruption. However, no other company policies or commitments 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 business relationships.