Anhui Conch Cement

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

No leading practices were identified for this company.

Anhui Conch Cement has set a target to reduce emissions intensity from its clinker processes by 6% in 2025 compared to 2020. However, this goal falls short of aligning with a 1.5°C pathway. Furthermore, the company’s emission reduction strategy only extends until 2025, lacking longer-term targets. To enhance its commitment to sustainability, the company could establish extended timeframes for emissions reduction goals, accompanied by intermediate targets every five years to drive near-term actions toward its longer-term objectives. The company’s emissions intensity remained the same between 2020 and 2022. However, the company will need to deliver significant annual emissions reductions of 2.37% over the next five years to meet the requirements of its 1.5°C pathway. Additionally, the locked-in emissions of the company’s existing and planned assets are anticipated to surpass its carbon budget, posing challenges to its sustainability efforts.

Anhui Conch Cement lacks evidence of board members’ expertise in the low-carbon transition and does not clearly link climate achievements to its incentive plan for executives. While it has devised a plan for a green development path towards carbon neutrality, there is room for improvement in providing financial details and expanding the strategy to encompass its entire value chain, extending beyond 2025. Moreover, while the company acknowledges climate-related risks and opportunities, it could bolster its disclosure by elaborating on a climate scenario analysis and considering carbon pricing mechanisms.

Anhui Conch Cement has not publicly revealed its low-carbon revenues over the past three years. While there are indications of the company’s efforts to establish or expand low-carbon business models, the company can broaden the scope and openly disclose plans for scaling up these ventures.

Anhui Conch Cement discloses that it utilises alternative fuels but does not report the proportion of energy derived from these sources in relation to its overall energy consumption. Furthermore, the company has not disclosed its research and development (R&D) expenditure over the past three years, as well as quantitative data concerning its investments in low-carbon technologies. Additionally, there is limited information available regarding the company’s patents associated with low-carbon technologies over the past five years.

Anhui Conch Cement receives a trend score of -. If the company were reassessed in the near future, its score would likely deteriorate. The company has set a 2025 scope 1 emissions target but has not addressed its scope 2 and 3 emissions or established long-term emissions goals. Despite significant R&D investments, the company does not disclose the share dedicated to low-carbon technologies. Similarly, it fails to provide clarity on the proportion of capital expenditure earmarked for low-carbon solutions. Though the company outlines a green development path towards carbon neutrality, this lacks financial details and long-term business model insights. The company also lacks stakeholder engagement across the value chain, although its current efforts indicate a commitment to decarbonisation and a sector-wide low-carbon transition.

Anhui Conch Cement has outlined a green development path, aligning with China’s carbon peak and carbon neutrality goals. By 2025, the company targets a 6% reduction in emissions intensity from clinker processes compared to 2020. However, the company has not addressed its scope 2 and 3 emissions or established long-term goals beyond 2025.

Anhui Conch Cement has set a scope 1 emissions reduction target for 2025. It discloses that it aligns with China’s carbon peak and carbon neutrality goals but has not disclosed targets beyond 2025. While the company outlines a green development path towards carbon neutrality, this does not include financial details and long-term business model insights. Furthermore, the company lacks targets and policies for the broader value chain and supplier and client engagement strategies to drive scope 3 emissions reduction efforts.

Anhui Conch Cement’s emissions intensity has not declined between 2020 and 2022. This is in sharp contrast to its 1.5°C pathway, which requires the company to make significant annual emissions intensity reductions of 2.37% over the next five years.

There is some evidence to suggest that Anhui Conch Cement is creating or expanding low-carbon business models. Biomass power generation, for instance, accounts for 11.7% of its total energy consumption. The company also discloses that it recycles 100% of non-hazardous wastes. Additionally, it is engaged in green building through its prefabricated components and products such as precast components, conveying corridors, enclosures, and hollow decorative fence boards. Furthermore, the company has been developing CCUS technologies since 2018.

Anhui Conch Cement is committed to reducing greenhouse gas emissions and enhancing energy efficiency, with well-defined and measurable time-bound targets. While it has devised a plan for a green development path towards carbon neutrality, there is room for improvement in providing financial details and expanding the strategy to encompass its entire value chain, extending beyond 2025. Furthermore, though the company assesses the materiality of climate-related risks and opportunities, it could enhance disclosure on the scenario analysis it undertakes and its consideration of a carbon price.

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

The company discloses some statistics regarding its workforce, including the diversity of ages and gender of its workforce. Additionally, it discloses the share of the workforce which is covered by collective bargaining. However, no other evidence of the company’s policies and committments 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.

While the company includes anti-bribery and anti-corruption clauses in its contracts with business relationships, no other 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.