China Harmony Auto Holding Limited
Climate Impact & Sustainability Data (2023)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:19,811.96 tons of CO2e
Scope 1 Emissions:4,808.47 tons of CO2e
Scope 2 Emissions:15,003.49 tons of CO2e
Total Energy Consumption:25,094.28 MWh
Water Consumption:188,507.27 tons
Waste Generated:935.58 tons (hazardous); 628.23 tons (non-hazardous)
ESG Focus Areas
- Emissions
- Energy and resource utilization
- Waste management
- Employee health and safety
- Employee development and training
- Supply chain management
- Product responsibility
- Anti-corruption
- Community investment
Environmental Achievements
- Implemented water-saving measures, resulting in a significant decrease in water consumption in 2023 compared to 2022.
- Implemented waste reduction programs, such as encouraging employees to bring their own utensils and recycling paper.
Social Achievements
- Provided regular health examinations for employees and occupational disease medical examinations for employees in relevant positions.
- Organized various forms of fire safety advocacy and education and provided protective tools and operation clothing for employees.
- Implemented a systematic training system, resulting in an increase in the percentage of employees trained, total training hours, and average training hours per employee in 2023 compared to 2022.
- Actively participated in community public welfare activities.
Governance Achievements
- Established a legal supervision department to supervise the integrity and self-discipline of all employees.
- Held anti-corruption sessions covering employees at all levels of the Group.
Climate Goals & Targets
Short-term Goals:
- Maintain air emissions, energy efficiency, waste efficiency, and water efficiency density at the same level as the 2021 base year for the next three years.
Environmental Challenges
- Weak consumption spending caused by the macro-economy and the decline in new vehicle prices.
- Intense competition with other automobile dealers, players in the general express automobile repair service sector, and the e-commerce sector.
- Market risks including credit risks, liquidity risks, interest rate risks, and exchange risks.
- Potential impact of fluctuations in the automobile industry due to cyclical developments in the macro-economy.
- Potential impact of changes in policies from automobile manufacturers.
- Potential impact of changes in government policies on the automobile industry.
Mitigation Strategies
- Implemented effective inventory management strategies to ensure optimal control and adjustments of inventory levels.
- Actively enhanced communication with manufacturers and adopted a development strategy that covers a diverse range of brands.
- Adjusted strategy and enhanced overall service standards to address intense competition.
- Exercised effective control over market risks through continuous monitoring of risks and changes, timely risk warnings, appropriate application of hedge instruments, and other methods.
- Monitored changes in the economic landscape and adjusted overall business planning, network development plans, and marketing plans.
- Monitored developments in government policies and enhanced service standards.
Supply Chain Management
Responsible Procurement
- Consideration of environmental and social risk factors when selecting suppliers.
Climate-Related Risks & Opportunities
Physical Risks
- Natural disasters/extreme weather
Transition Risks
- Policy and regulatory risks
- Technology risks
- Market risks
- Reputation risks
Opportunities
- Development of new energy vehicle projects
Reporting Standards
Frameworks Used: Appendix C2 to the Listing Rules
Awards & Recognition
- 2023 BMW Engine Oil Business Demonstration Group
- 2023 BMW Financial Dealer Best Creative Award
- 2023 MINI National After-sales Excellent Dealer
- 2023 BMW Dealer Excellence Award
- 2023 Lincoln China Sales Contribution Award
- 2023 Lincoln China Marketing Excellence Award
- 2023 Maserati China Best Marketing Campaign Award
- 2023 Maserati China Best Loyalty Campaign Award