S.F. Holding

S.F. Holding has set a short-term decarbonisation target aiming to achieve a 70% reduction in emissions per parcel delivered by 2030 compared to 2021 and a 55% ‘improvement in carbon efficiency’. The company plans to achieve 9% of these targets using offsets. However, the company has not set any long-term targets and does not have a net-zero target. The company should set a long-term decarbonisation target which is aligned with its 1.5°C pathway. The company should also set intermediate targets at gaps of no more than five years to incentivise near-term action towards longer-term goals. Furthermore, the company should aim to achieve its targets without the use of offsetting, instead focusing on direct action.

S.F. Holding has implemented board-level oversight of climate change. However, there is no evidence that its board members have significant experience in climate change or the low-carbon transition. The company does not incentivise the management of climate change issues through executive compensation. The company can improve the likelihood of a successful low-carbon transition by aligning incentives with its decarbonisation commitments.

S.F. Holding does not disclose sufficient emissions data to meaningfully assess past performance or project its future performance. To understand the rate of change required for it to align with a 1.5°C pathway the company should report its activity and emissions intensity data for both its own and subcontracted operations. 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.

S.F. Holding has a target to reduce the carbon footprint per package delivered by 70% and improve its ‘carbon efficiency’ by 55% by 2030 compared to 2021. The company supports the Chinese government’s target to be carbon neutral by 2060 but has not set its own net-zero target.

The company plans to adopt renewable energy, expand the number of ‘new energy vehicles’ (plug-in electric vehicles including hybrids) in its owned fleet, use digital solutions to improve operational efficiency, promote multimodal transportation and offset any ‘unavoidable’ carbon emissions.

S.F. Holding has significantly expanded its number of new energy vehicles and now operates over 21,000. However, total fleet data is not disclosed.

The company’s total absolute emissions have consistently increased over the last three years. A meaningful assessment of its historic emissions intensity trend could not be made as insufficient emissions data was disclosed between 2016 and 2021.

S.F. Holding has set medium-term decarbonisation targets and reports elements of transition planning. However, this plan lacks financial commitments and details of how it will achieve its aims. The company has not set any long-term emissions reduction targets.

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.

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 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 policies or commitments of the company 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.

The company discloses the share of its direct workforce covered by collective bargaining agreements, as well as some indicators of workforce diversity including the age and gender of its workforce by employee category. The company can however strengthen its commitments and disclosure on most key decent work issues, to ensure the provision of secure, safe and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision making.

No policies or commitments of the company 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 relationships with business partners.