CHN Energy

CHN Energy 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.

CHN Energy’s trend in emissions intensity remained static between 2017 and 2022 as its share of electricity generation from fossil fuels only decreased by around 0.3% in this five-year period. The company is not expected to decrease its emissions intensity 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.

There is no evidence that CHN Energy 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 its ambition aligns with a 1.5°C pathway.

CHN Energy 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, such as the China Electricity Council (CEC) and China National Coal Association (CNCA), that are reported to oppose climate-aligned policies. The company should utilise its influence as vice-president to enable the associations to better align with the low-carbon transition.

CHN Energy reports “actively aligning itself with the dual-carbon target” and accelerating industrial restructuring as well as green and low-carbon transformation. However, the company has not publicly committed to any related quantitative measures.

CHN Energy does not have a low-carbon transition plan.

CHN Energy’s installed hydro, wind and solar power capacities accounted for 30.8% of its total installed energy capacity by 2022. In 2022, the company started construction of solar and wind energy projects with a capacity of 25.6 gigawatts (GW) and put 11.8 GW of this capacity into operation. The company reports investing USD 12 billion in solar and wind energy in 2022, with a new construction target of 79.7 GW for solar and wind energy projects.

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 0.3% 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.

Although the company plans to develop low-carbon energy, it does not disclose its 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 that the company has ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found that the company undertakes 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 that 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 to show the company assesses 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 was found to show the company has policies or commitments related to key decent work issues. 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 are available in the public domain related to the company’s key ethical business topics, personal data protection, tax, bribery and corruption, and lobbying and political engagement were found. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.