China Shanshui 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.

China Shanshui Cement Group has set targets to reduce its combined Scope 1 and 2 carbon emissions by 2025. Nevertheless, it has an opportunity to disclose its Scope 3 emission reduction target, as well as a breakdown of both its Scope 1 and 2 emissions reduction targets.

Whilst China Shanshui Cement Group has board-level oversight of climate change issues, it is unclear if these board members have the relevant expertise. To encourage staff to drive climate-related agenda, the company could consider linking remuneration to performance in climate-related areas. At present, there is no evidence that the company has a transition plan; it is advisable to develop a comprehensive transition plan that covers all business units, details short-, medium- and long-term actions from reporting year to 2050 and beyond and includes scenario testing with well-defined parameters such as carbon price, transition risk and physical risk.  There is also potential for the company to expand its low-carbon business models by developing zero-clinker cement products, enhancing the use of biomass, and increasing the recycling rate of concrete.

China Shanshui Cement can consider publicly disclosing its research and development (R&D) expenditures, as well as its investments in low carbon technologies. Additionally, it has an opportunity to explore the use of alternative fuels to support its low-carbon transition.

China Shanshui Cement Group has an opportunity to enhance its disclosures relating to its engagement activities with its suppliers, clients and policymakers. With suppliers, it could consider putting in place explicit and implicit measures to encourage suppliers to reduce emissions such as escalation in the event of non-compliance. To strengthen its engagement with clients, it could formulate a comprehensive engagement strategy that includes relevant targets such as GHG emissions reduction targets, as well as low-carbon transition related recommendations. With regards to policy engagement, China Shanshui Cement Group could publish a policy document regarding its engagement with associations on climate topics. Ideally, the document will detail the list of associations, alliances, coalitions and think tanks it is a member of, a monitoring and review process to ensure that its positions are in line with the Paris Agreement, as well as an action plan in the event of misalignment.

China Shanshui Cement Group has set targets to reduce its combined Scope 1 and 2 carbon emissions by 2025. However, it has an opportunity to also disclose Scope 3 targets. Furthermore, it can consider disclosing its investments in low -carbon R&D technologies.

China Shanshui Cement mentions that it hopes to reduce emissions in alignment with China’s national strategic goal of “Dual-Carbon”, as well as the Working Guidance for Carbon Dioxide Peaking and Carbon Neutrality in Full and Faithful Implementation of the New Development Philosophy and the Implementation Plan for Carbon Dioxide Peaking in the Building Materials Industry. Accordingly, it has devised a response plan for carbon peaking by 2030, which details several aspects it hopes to focus on to reduce emissions, including reducing overcapacity, recycling and increasing the use of alternative materials. However, China Shanshui Cement has not set any specific goals in each of these aspects, nor does it track its current performance.

China Shanshui Cement has made some progress towards its emission reduction goals. Between 2021 and 2022, its total Scope 1 and 2 emissions fell by close to 10%.

The company has adopted various carbon reduction measures, including reducing overcapacity, using innovative technologies, recycling solid waste and using alternative materials. In its bid to reduce emissions from overcapacity, it has phased out various clinker lines operating at inefficient capacity across its operations in Shandong, Shaanxi and Northeast Operating regions. On technologies, it has employed the use of energy-saving equipment such as permanent magnet motors, permanent magnet inverter air compressors, as well as energy saving and consumption-reducing technical improvements such as the fourth-generation grate cooler system etc. It also leverages on digital monitoring platforms to facilitate emission reduction monitoring and production control.

There is an opportunity for China Shanshui Cement to devise a transition plan. At present, the company lacks a low-carbon transition plan and there is no indication that it will develop one in the foreseeable 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 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.

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.  However, the company does disclose its required working hours to 40 hours a week. Furthermore, the company does disclose some indicators of workforce diversity, including age and gender.

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.