China COSCO Shipping

There is no evidence that COSCO has a comprehensive transition plan. The company demonstrates elements of transition planning through its carbon neutrality target and its intermediate emissions intensity target. However, the plan contains insufficient detail on how it will achieve its target and it lacks financial commitments . The company should improve its transition plan so that it includes verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the company’s ambition is aligned with a 1.5°C pathway.

There is no evidence that the company is investing in R&D on low-carbon vehicles and technologies. The company states that it intends to transition to a fleet which uses alternative fuels. However, these fuels are currently not viable at scale and there is no indication that the company is planning to financially contribute to the development of these technologies. The company should start investing in R&D on low-carbon fuels to increase the credibility of its long-term target.

COSCO does not disclose sufficient data to be scored on its alignment with its 1.5°C pathway or to determine whether it is expected to exceed its future carbon budget. The company should improve its disclosure as its current climate and emissions reporting does not provide sufficient detail to give a full view of its decarbonisation progress and plans. Enabling the measurement of the company’s progress toward its targets encourages accountability

COSCO has committed to achieving carbon neutrality by 2060 in line with the Chinese government’s national strategy. The company has set an intermediate target to reduce the emissions intensity of its container shipping by 12% by 2030 compared to 2019 .

COSCO states that it will achieve its targets by monitoring fuel consumption and putting in place energy efficiency improvements with long term plans to use liquified natural gas (LNG) and “alternative fuels”. No details or commitments are disclosed.

COSCO has put in place monitoring systems to analyse and optimise fuel consumption. There is no evidence that the company is taking further action beyond complying with relevant international regulations.

The company’s absolute GHG emissions increased between 2018 and 2021. However, as the company does not disclose activity data, the significance of this increase could not be assessed.

COSCO’s ambition to reach net zero by 2060 is undermined by the scarcity of detail in its transition plan and lack of ambition in its intermediate target. The company has not developed a 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 or engagement 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.

The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, it established the COSCO Shipping University, offering education and training programmes. The company also provides educational support to schools and students in low-income areas. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

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 evidence in policy documents was found of a company commitment to respecting human rights or all of the ILO fundamental rights at work. Furthermore, the company can increase disclosure on its human rights due diligence process, engagement with affected stakeholders and grievance mechanisms available to workers and external stakeholders.

While the company discloses the gender of its workforce by employee category, no relevant disclosure was found of additional indicators of workforce diversity. Additionally, it can increase disclosure on its living wage, working hours and collective bargaining practices. Furthermore, no evidence in policy documents was found regarding a company commitment to respecting worker health and safety, nor was evidence found of a company commitment to gender equality and women’s empowerment.

No evidence was found regarding the company’s anti-bribery and anti-corruption policy, lobbying and political engagement policy or global tax strategy. Additionally, the company can strengthen disclosure regarding its protection of employees’ and customers’ personal data.