China Hongqiao

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.

China Hongqiao has committed to reducing its emissions; however, the company has not set any specific emissions reduction targets. The company should develop a long-term target that aligns with a 1.5°C pathway and covers its scope 1, 2 and 3 emissions. 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. It should also clearly report its base year emissions and any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.

China Hongqiao’s board is tasked with developing and monitoring the progress and quality of environmental, social and governance (ESG) initiatives across the group. However, no evidence was found of the board having climate-related expertise or experience, nor incentives for managing the low-carbon transition. The company lacks a transition plan or climate strategy including financial estimations and associated costs. Furthermore, the company does not disclose its revenues from low-carbon products, and there is no evidence to suggest that it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models. The company is recommended to establish emissions targets and short- and long-term action plans for decarbonisation.

China Hongqiao states it is focused on China’s ‘dual-carbon’ target and ‘Vision 2035’, and that it contributes to the establishment of a clean, low-carbon, safe and efficient energy system. However, no evidence was found showing the company’s consumption of low-carbon electricity. Additionally, no evidence was found that the company has commitments to reduce scrap in its operations. The company should develop a comprehensive plan for scrap reduction with quantitative targets and a timeline. It should also detail its method for implementing this plan. Moreover, the plan should be regularly monitored and its responsibility should lie with high-level employees in the company. The company has disclosed its research and development (R&D) expenditure in the last three years. However, it has not provided quantitative data on its investment in low-carbon technologies.

The company claims that it will continue to promote clean energy aligned with dual-carbon target. However, China Hongqiao lacks both supplier and client engagement strategies to promote emissions reduction and the low-carbon transition. As one of the largest electrolytic aluminium producers in the world, it should encourage emissions reduction by shifting demand towards low-carbon alternatives and implementing action plans. Moreover, the company lacks a policy for engaging with trade associations on climate change and should consider publicly committing to the Paris Agreement as well as actively participating in initiatives to strengthen its commitment to emissions reduction.

China Hongqiao publicly discloses its emissions data. However, the company does not have emissions reduction targets for any of its scope 1, 2 or 3 emissions originating from its operations or its supply chain. The company has not developed a vision of what its business will look like in a low-carbon future. Given that the company is involved with every step of the aluminium industry value chain and is among the top ten emitters in the industry, it should immediately set targets aligned with the Paris Agreement.

The China Hongqiao Group states that its share of clean energy is increasing every year. However, the company should enhance its transparency by disclosing relevant data. The company’s Wenshan Yunnan Green Aluminum Innovation Park suggests a good example of renewable energy transformation. However, it should provide further details on this initiative. The company should also disclose its climate strategy towards a low-carbon transition, including financial estimations and associated costs as well as short- and long-term action plans.

China Hongqiao does not disclose any emissions intensity or absolute emissions data to analyse its performance to date. The company only discloses its production capacity. Additionally, there is no evidence that the company has a strategy to engage its clients and suppliers to reduce emissions.

China Hongqiao does not provide information regarding its low-carbon capital expenditure and low-carbon mitigation R&D. The company also does not disclose whether it is creating or expanding low-carbon business models or implementing actions to decarbonise activities within its existing business models.

China Hongqiao does not have a transition plan in place and there is no evidence it intends to develop one in the near future. Given its impact, it is crucial for the company to set out a transition plan to achieve a low-carbon transition within the industry.

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.

The company discloses the actions it takes to create many job opportunities in Indonesia through advanced agricultural technologies, which has provided over 90,000 jobs. However, 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.
No relevant disclosure was found of the company’s assessment of employment dislocation risks. Further, no public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if the company identifies the impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to their 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.

No 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 safe, secure and healthy workplaces, where workers are fairly renumerated and have a meaningful say in decision-making.  However, the company does disclose some indicators of workforce diversity, such as age and gender.

No 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