China Shenhua

Stakeholder engagement
The company discloses an overview of the issues raised in stakeholder engagement activities, as well as its engagement process.

Sustainability strategy and accountability
The company discloses its process for identifying and prioritising its most relevant sustainability impacts in relation to its sustainability strategy.

Solid and air pollution
The company mentions qualitative measures to reduce hazardous waste. The company reports regularly on air quality parameters of emissions of harmful air pollutants. The company has time-bound targets to reduce air pollutants across the most material parts of its value chain, and reports regularly against these targets.

Water
The company reports a decrease in water pollution and discloses its processes for managing and monitoring discharge water quality. The company regularly reports on water pollution metrics.

Indigenous Peoples’ and land rights
The company discloses that it has established a community operation mechanism following the Mining Principles and the Indigenous Peoples and Mining: Position Statement of International Council on Mining and Metals (ICMM).

Provide and promote decent work
No leading practices were identified in the core social indicators area.

Lobbying
The company does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Sustainability strategy and accountability
While the company discloses some targets, the company has an opportunity to disclose group wide targets on key sustainability topics for the most material parts of its value chain. and report against its targets. While the company links compensation to ESG indicators, it does not clearly disclose this process. No evidence found that the company provides evidence that its highest governance body has expertise with respect to the company’s most material pressures on nature.

Ecosystem conversion and restoration
No evidence was found regarding the company’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

GHG emissions
The company should set time-bound targets to reduce its scope 1, 2 and 3 greenhouse gas emissions as well as report progress against them. Crucially, the company needs to reduce its scope 1,2 and 3 emissions and its targets need to align with a 1.5-degree trajectory.

Impact and dependencies assessment
The company has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Invasive species
The company has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Key areas and species
The company does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Resource exploitation and circularity performance
No evidence was found regarding the company’s efforts to work towards a circular economy or which organisms it exploits. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Solid and air pollution
The company has an opportunity to disclose quantitative evidence regarding plastic use reduction and use of sustainable packaging. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal.

Water
The company reports an increase in water use. Additionally, it does not provide a time-bound target to reduce water withdrawal or report the amount of water withdrawn for its operations in water-stressed areas, nor engages with suppliers to reduce water withdrawal. The company does not report a decrease in water pollution. The company has an opportunity to publicly commit to the right to water and to provide its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Indigenous Peoples’ and land rights
The company does not show if it is committed to respecting Indigenous Peoples’ rights or land rights of local communities.

Safe, clean, healthy and sustainable environment
The company has an opportunity to commit to respecting local communities’ right to a safe, clean, healthy and sustainable environment, and to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders. Moreover, it should track its actual or potential negative impacts on the health of local communities.

Act ethically
The company supports anti-corruption initiatives but lacks a clear, formal policy prohibiting bribery. It does not detail the process for identifying risks and impacts. The company has an opportunity to clearly articulate its approach to lobbying and political engagement and set compliance expectations for third-party lobbyists.

Provide and promote decent work
The company highlights its focus on health and safety but does not provide a public policy statement on the same or how it monitors these standards among business partners. It discloses various health and safety metrics but omits specific types of work-related injuries and total hours worked. Compensation practices are designed around various factors, yet it does not specify if these ensure a decent living standard or discuss support for living wages in its supply chain. For gender equality, the company supports female employees with specific measures but lacks a broader public commitment to gender equality and women’s empowerment, with only 11% female board representation. The company has an opportunity to formalise its health and safety policy, clearly outline methods for ensuring and supporting living wages, and strengthen its commitment to gender equality with specific targets and broader disclosures.

Respect human rights
Although the company states its commitment to human rights through its SA8000 certification and opposes child and forced labour, it does not provide a publicly approved formal human rights policy. Furthermore, its supplier management includes ESG assessments, but these are not sufficient for comprehensive human rights risk assessments. There is no evidence of a process for identifying specific human rights risks in its operations or through its suppliers. The company has an opportunity to formulate a clear, approved human rights policy and to develop a transparent system for identifying, prioritising, and managing human rights risks.