Nanjing Iron & Steel

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.

NISCO has committed to achieving carbon neutrality by 2050. However, the company’s scope 1 and 2 emissions intensity has significantly increased between 2018 and 2022, diverging from the substantial decreases required by its 1.5°C pathway. The company should set intermediate targets at gaps of no more than five years to incentivise near-term emissions reduction towards its longer-term carbon-neutrality goal.

Although NISCO has implemented board-level oversight of climate change, there is no evidence that its board has adequate climate expertise. A lack of expertise at board or equivalent level could be a barrier to the successful management of the low-carbon transition. The company discloses elements of a transition plan, such as six technical routes for its carbon action plan. However, it has not conducted a climate scenario analysis to inform the action plan and ensure its ambition aligns with a 1.5°C pathway.

NISCO invested USD 363 million in research and development (R&D) in 2022. However, the company does not disclose what proportion of its R&D expenditure was invested in low-carbon technologies. R&D expenditure on low-carbon technologies will be essential for the company to be successful in a low-carbon economy. Further, the company’s projected scope 1 and 2 emissions intensity is expected to increase, in sharp contrast to the sectoral-level ambitions for emissions reduction.

NISCO requires all its suppliers to abide by a code of conduct. Although the company considers environmental aspects in its supply chain management strategy, it does not specifically include emissions reduction requirements. NISCO needs to be consistent in translating its implemented supplier engagement strategy into concrete actions to drive significant emissions reduction. No evidence was found of the company having a client engagement strategy or a policy for engagement with trade or industry associations on climate matters.

NISCO has set long-term targets to achieve carbon neutrality by 2050 and a carbon peak before 2030. However, the company has not set sufficient intermediate targets. Setting regularly spaced intermediate targets will help the company incentivise near-term actions on its longer-term goals.

Although the company has committed to achieving carbon neutrality, its emissions intensity over the last five years has increased. This contrasts with the company’s stated carbon action plan and sectoral expectations.

NISCO has not set sufficient emissions reduction targets. The company has not developed a qualitative or quantitative vision of what its business will look like in a low-carbon future. Moreover, there is no evidence that it carries out interventions within its value chain to reduce emissions for purchased materials.

NISCO spent USD 363 million on R&D in 2022 but did not disclose how much was dedicated to low-carbon technologies. Further, the company does not specify the share of its revenues from low-carbon products or services.

NISCO does not have a low-carbon transition plan that is aligned with a 1.5°C pathway. However, the company does disclose elements of transition planning, such as a three-step ‘double carbon’ strategy. However, the plan lacks financial implications and climate scenario analysis.

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.

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.