Huaxin 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.

Huaxin Cement has established emissions targets in line with China’s national objectives, aiming for a significant reduction in direct carbon dioxide emissions to 475 kg per tonne of cement by 2030 from 652 kg in 2020. While Huaxin Cement has set ambitious targets for its direct emissions, the absence of goals for its indirect scope 2 and scope 3 emissions presents a risk. This may limit the company in comprehensively understanding and managing its carbon footprint by potentially overlooking significant areas of impact within its value chain.

The company’s has goals to reduce its carbon emissions per unit product by over 70% from 2005 levels, and to increase the use of alternative fuels to more than 25% of its energy consumption. While Huaxin Cement has outlined a comprehensive decarbonisation strategy, there is a lack of evidence that the company’s goals are aligned with a low-carbon scenario and an absence of detailed financial and operational planning. The company also lacks details regarding the expertise and experience of its leadership in climate-related issues and its incentives for managing climate change. This raises concerns about the execution and transparency of its sustainability initiatives.

Huaxin Cement’s commitment to invest 10.5 billion yuan in technology R&D to reduce carbon emissions by 2030 demonstrates a robust strategy towards operational sustainability and innovation. Of the 54 invention patents and 108 utility model patents acquired by the company, 15 are focused on low-carbon technology. Huaxin Cement’s plans for transitioning to clean energy and electricity only post-2035 and the current lack of detailed actions to decrease electricity consumption in its operations introduce risks related to operational efficiency and environmental impact. Furthermore, the company is lacking transparency regarding specific annual investments in low-carbon technologies and the distribution of this investment between mature and non-mature technologies.

Huaxin Cement engages with suppliers to influence environmental sustainability and emissions reduction through training and support for adopting renewable energy and setting science-based targets. However, the effectiveness and broader application of such strategies by the company remain to be seen, as the company is still in the nascent stages of operationalising supplier engagement for climate impact. The absence of a clear strategy to encourage emissions reduction in procurement processes and customer interactions, combined with a lack of engagement in climate change discussions and commitments to international low-carbon agreements, potentially undermines the company’s environmental sustainability efforts.

Huaxin Cement aims to align with China’s national goals and is targeting a significant reduction in its scope 1 emissions intensity by 2030 as well as achieving carbon neutrality by 2060. The company’s focus remains on direct emissions, with a plan to reduce its direct emissions intensity to 475 kg per tonne of cement by 2030 from 652 kg in 2020.

Huaxin Cement’s decarbonisation commitment and strategy show ambition but lack comprehensiveness and evidence of effectiveness. Though the company has set significant emissions reduction targets, the gaps in its planning, its failure to consider the full value chain and its lack of stakeholder engagement strategies, question the consistency and feasibility of its long-term climate goals.

The company’s recent actions include focusing on sustainability through the use of alternative raw materials and developing low-carbon clinker products. Despite zero fossil energy consumption in its pilot projects and the establishment of a low-carbon research lab, the broader application and impact of the company’s initiatives remain unclear.

Huaxin Cement uses 15.9% of alternative fuels in its primary energy, and has achieved patent applications targeting low-carbon technologies. However, clear details of its investment in low-carbon technologies and specific actions to reduce electricity consumption are lacking.

The company has planned a 10.5 billion yuan investment in R&D to reduce emissions and upgrade production systems. Its efforts include increasing alternative fuel use and exploring CCUS technology, although the company does not fully disclose specifics on the distribution of its investment and its operational measures like electricity consumption reduction.

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 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.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.