Climate Change Data

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