State Power Investment Corporation

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

SPIC’s trend in emissions intensity decreased between 2017 and 2022 as its share of electricity generation from fossil fuels decreased by around 6% in this five-year period. The company is expected to only decrease its emissions intensity by approximately 10% 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 its continued reliance on fossil fuels. The company must reduce its emissions intensity by approximately 30%, to align with its 1.5°C pathway in 2027.

SPIC 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 utilise its leverage as vice-president of this association to influence it to better align with the low-carbon transition.

SPIC develops several low-carbon business models. By 2022, low-carbon sources accounted for 62% of the company’s share of installed energy capacity. The company aims to grow the share of low-carbon and gas turbine energy in its installed capacity to more than 70% by 2025 and 90% by 2035. Further, SPIC is investing in carbon capture, compressed air energy storage and liquid current battery. It is also investing in its monitoring and forecasting capabilities as well as digital transformations.

SPIC aims for more than 70% of its installed energy generation capacity to comprise low-carbon sources and gas turbines by 2025 and 90% by 2035. However, the company does not provide a breakdown of the specific commitments it has for low-carbon sources and gas turbines.

Other than the targets set for 2025 and 2035, SPIC does not disclose other key elements in relation to its transition planning.

SPIC reports that 62% of its installed energy generation capacity is based on non-fossil sources as of 2022. Further, the company is investing in carbon capture, compressed air energy storage and liquid current battery. It is also investing in its monitoring and forecasting capabilities as well as digital transformations. However, SPIC does not provide details on the scale of these technologies.

SPIC’s emissions intensity trend decreased between 2017 and 2022 as its share of electricity generation from fossil fuels decreased by around 6% 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. This requires the company to accelerate its rate of emissions reduction by over 3 times its historical trend.

Although the company plans to develop low-carbon energy, it does not disclose 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 to show the company’s commitment to social dialogue or engagement with affected stakeholders 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.