Geely Auto Unveils Ground Breaking ESG Strategy and Releases 2022 ESG Report
Riyadh, Saudi Arabia – May 21st, 2023 – Geely Automobile Holdings Limited (0175.HK) proudly announces the publication of its 2022 Environmental, Social, and Governance (ESG) report, marking a significant milestone for the company in its commitment to sustainable development. The report highlights Geely Auto’s achievements in reducing carbon emissions, increasing new energy vehicle sales, and promoting renewable energy integration.
Key highlights from the 2022 ESG report include:
- Decrease in Carbon Emissions: Geely Auto successfully reduced its lifecycle carbon emissions per vehicle by 8.1% in comparison to 2020. The company is dedicated to further reducing lifecycle carbon emissions per vehicle by more than 25% by 2025 and aims to achieve carbon neutrality by 2045.
- New Energy Vehicle Sales Surge: Geely Auto witnessed an impressive 300% year-on-year increase in the sales of new energy vehicles, emphasizing its commitment to sustainable mobility solutions.
- National Recognition: Geely Auto’s nine vehicle plants were recognized as national “green factories” for their eco-friendly practices. The Xi’an plant was the first zero-carbon plant in China’s vehicle industry and received recognition at the APEC China CEO Forum for its sustainable industrial development.
- Renewable Energy Integration: The company increased its installed capacity of photovoltaic power generation to 307 MW, with renewable electricity accounting for 36% of its vehicle plants’ energy consumption.
- Comprehensive Supply Chain Sustainability: Geely Auto established a supply chain sustainability system, developed 13 types of low-carbon materials, and plans to incorporate recycled materials in its upcoming 2025 models. Moreover, 30% of tier 1 suppliers have adopted renewable electricity.
- User-Oriented Innovation: Geely Auto prioritizes user experience and safety. It received accolades for various models, including the Lynk&Co 09 and the Emgrand series, which were recognized for their environmental design. The company also focuses on ultra-low emission technology and aims to enhance the proportion of new energy models.
- Social Responsibility: Geely Auto actively engages in social welfare initiatives, ranging from eco-friendly campaigns to education programs benefiting rural areas. Its commitment to corporate social responsibility earned Geely Holding Group the prestigious “Best Responsible Corporate Brand of the Year” award in the 2022 CSR List.
Building upon these achievements, Geely Auto takes a significant step forward by disclosing its six-direction ESG strategy for the first time. The strategy encompasses climate neutrality, nature positive, all-around safety, digitalization & innovation, co-prosperity, and governance and ethics. Geely Auto aims to establish a sustainable mobility ecosystem for intelligent vehicles and collaborates with industry partners to promote a sustainable mobility ecology.
Looking ahead, Geely Auto plans to achieve carbon neutrality by 2045 and reduce lifecycle carbon emissions per vehicle by over 68% by 2035, with 2020 as the baseline. The company will construct additional zero-carbon factories, increase the adoption of new energy vehicles, enhance recycling efforts, and continue investing in technological advancements.
Geely Auto’s commitment to ESG practices has garnered significant market recognition, including selection as a constituent stock of HSESG50, HSSUSB, and FTSE4Good Index Series. Furthermore, the company’s MSCI ESG rating was upgraded to A, and its Sustainalytics ESG risk rating was adjusted to low risk.
An Conghui, Chairman of Geely Auto Sustainability Committee, expressed his confidence in Geely Auto’s commitment to sustainability, stating, “Geely Auto always puts sustainability as the core element of corporate development, and will continue to explore the space for improvement based on the industry’s best practices, aiming to become a benchmark for sustainable development in the automotive industry.
