Xinyu Iron & Steel

No leading practices were found for this company.

No leading practices were found for this company.

No leading practices were found for this company.

No leading practices were found for this company.

Xinyu has not set any targets to reduce its emissions. 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 longer-term goals. Xinyu’s disclosed emissions from 2020 to 2022 have remained steady. However, the company should report at least five years of data to allow for an assessment of its historical emissions intensity trend.

The company has developed a Xinyu Steel Group Carbon Peaking and Low-Carbon Development Action Plan aligned with China’s dual carbon goals of carbon peaking by 2030 and carbon neutrality by 2060. However, the company does not provide any details on how it will transition to a low-carbon economy. The company’s action plan should include medium- and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. Further, it should be informed by climate scenario analysis to ensure that its ambition is sufficient for a 1.5°C pathway. There is no evidence that Xinyu has developed or is developing low-carbon activities outside of its core business.

No evidence was found that Xinyu has commitments to reduce scrap in its operations. The company should develop a comprehensive plan for scrap reduction with quantitative targets and a timeline. Xinyu spent USD 266 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. Moreover, Xinyu does not report sufficient details on interventions carried out to reduce the life-cycle greenhouse gas emissions of its purchased materials.

Although Xinyu has implemented a supplier engagement strategy, this does not specifically include emissions reduction requirements. Creating quantified emissions targets for its suppliers will help the company provide clear low-carbon direction for its whole supply chain. Additionally, the company does not detail how it works with its clients to reduce emissions. Xinyu can improve on this by creating a client engagement strategy governed by a clear policy and integrated into its business decision-making. Further, though the company publicly supports the ‘carbon peaking and carbon neutrality’ strategy proposed by China, it does not make a public commitment to the Paris Agreement. It does not have a policy in place to manage engagement with trade associations on climate change issues.

Xinyu has not set any targets to reduce its scope 1, 2 and 3 emissions. The company has not developed a qualitative or quantitative vision of what its business will look like in a low-carbon future. As the company’s emissions data for 2017-2022 was not available, it was not possible to assess its progress in reducing its emissions.

Xinyu’s lack of targets, strategy and five-year emissions intensity data all suggest that the company is not yet committed to the low-carbon transition. No evidence was found that Xinyu is developing business activities that will enable it to decouple financial results from greenhouse gas emissions.

Xinyu reports only three years of historical carbon emissions, during which its scope 1 and 2 emissions have remained steady. This contrasts with the company’s 1.5°C pathway, which requires substantial emissions reduction.

Xinyu spent USD 266 million on R&D in 2022 but did not disclose how much was dedicated to low-carbon technologies. Moreover, there is no evidence that the company is implementing actions to decarbonise activities within its existing business models.

Xinyu describes some actions it plans to implement for a low-carbon transition but lacks details on a specific timeframe, scope and budget estimations for these actions. In the absence of this information, it is unclear how the company plans to achieve its objectives. Moreover, Xinyu has not conducted climate scenario analysis to incorporate in its action plan.

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.