Shougang

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.

Shougang has committed to reducing carbon dioxide emissions by 30% from a carbon peak by 2035. However, it does not disclose its projected emissions till 2035. Moreover, the company aims to achieve carbon neutrality between 2050 and 2060, but it does not disclose details on how it will accomplish this goal. Shougang should develop specific targets that align with a 1.5°C pathway and cover 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 longer-term goals. Shougang discloses its emissions from 2020 to 2022. However, the company should report at least five years of data to allow for an assessment of its historical emissions intensity trend.

Shougang provides elements of a transition plan, as the company has committed to China’s dual carbon goals of a carbon peak by 2030 and carbon neutrality by 2060. The company describes examples of actions to implement for this dual national goal. However, it does not provide any timeframe for these actions. Further, the company has not implemented board-level oversight of climate change and none of its board members were found to have significant expertise in the low-carbon transition. Moreover, Shougang does not incentivise low-carbon performance through executive compensation. In addition, no evidence was found that the company is developing business activities that will enable it to decouple financial results from greenhouse gas emissions. The company can improve the likelihood of a successful low-carbon transition by aligning its executive incentives with its decarbonisation commitments.

Shougang invested nearly USD 800 million in research and development (R&D) in 2022. However, the company does not disclose the proportion of its R&D expenditure invested in low-carbon technologies. Further, the company only discloses its emissions for the last three years. As a result, it is not possible to provide a meaningful assessment of the company’s future emissions intensity trend or its alignment with its 1.5°C carbon budget. Additionally, there is no evidence that Shougang carries out interventions within its value chain to reduce emissions for purchased materials.

Shougang discloses elements of a supplier engagement plan, which promotes carbon reduction actions. However, it does not specify the percentage of suppliers included nor quantified emissions reduction targets. Creating quantified emissions targets for its suppliers will help the company provide clear direction for its whole supply chain. Moreover, Shougang does not detail how it works with its clients to reduce emissions. The company can improve by creating a client engagement strategy governed by a clear policy and integrated into business decision-making. The company supports significant climate policies. However, it does not have a policy in place to manage its engagement with trade associations on climate change issues.

Shougang has committed to reducing carbon dioxide emissions by 30% from a carbon peak by 2035. However, it does not disclose projected emissions till 2035. Moreover, the company aims to achieve carbon neutrality between 2050 and 2060, but it does not disclose details on how it will accomplish this goal. Shougang should set more specific targets, including a baseline and clear objectives.

The company’s lack of targets, strategy and emissions intensity data all suggest that the company is not yet committed to the low-carbon transition. Shougang should set long-term as well as regularly spaced intermediate targets aligned with a 1.5°C pathway.

Although Shougang provides some data on its recent scope 1 and 2 emissions intensity, this is not enough to allow for an assessment of its past or future emissions intensity trend. To demonstrate commitment to the low-carbon transition, the company should disclose its historical emissions for at least the previous five years.

Shougang does not disclose what proportion of its R&D expenditure was dedicated to low-carbon technologies, nor the percentage of its revenues from low-carbon products or services. Moreover, its current business model relies on carbon-intensive fuels.

Shougang has not implemented a low-carbon transition plan and does not provide information regarding clear emissions reduction targets. It is unclear how the company plans to achieve its objectives. The company has not developed a qualitative or quantitative vision of what its business will look like in a low-carbon 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 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.