GlobalData offers a comprehensive analysis of Weichai Power, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on Weichai Power‘s ESG performance. GlobalData’s company profile on Weichai Power offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.
Weichai Power, a leading Chinese powertrain manufacturer, in support of the achievement of China's "dual carbon" goals, has incorporated green and low-carbon concepts into its strategic planning. Adhering to the objective of "leading the industry globally within the new energy business sector by 2030," the company, in collaboration with the Chinese Academy of Environmental Planning, has released the Environmental Plan for Green Power. This initiative involves active exploration of pathways for product and technology transformation and upgrading, contributing significantly to the green and low-carbon development of the company.
Weichai Power is actively striving to reduce its greenhouse gas (GHG) emissions and mitigate climate change. In 2022, the company's carbon emissions were comprehensively categorized into two scopes. Direct emissions from greenhouse gases (Scope 1) amounted to 178,925.97 tonnes of carbon dioxide equivalent, while indirect emissions (Scope 2) reached 368,450.64 tonnes of carbon dioxide equivalent. The total greenhouse gas emissions for the year were 547,376.61 tonnes of carbon dioxide equivalent, with an overall density of 3,125.05 tonnes per RMB billion in revenue. Scope 1 emissions primarily stemmed from the consumption of gasoline, diesel, and natural gas, while Scope 2 emissions included those from electricity consumption, purchased heat, and purchased steam.
Weichai Power, in addressing climate change risks, has set environmental targets using scientific calculations across its business sectors. Implementing green actions, the company aims to reduce resource and energy consumption to contribute to national "dual carbon" goals. Notable targets include maintaining energy consumption intensity below 0.028 by 2023 and achieving an 18% reduction by 2025 at Weichai Power HQ. Shaanxi Heavy Duty Automobile targets a 3% reduction in energy consumption intensity by 2025 and a decrease in carbon emissions to 0.047 tonnes/RMB 10,000 by 2024. For KION, the goals involve a 4.2% annual reduction in Scope 1 and Scope 2 GHG emissions and reducing Scope 3 GHG emissions by 2.5% by 2030 and achieving zero carbon emissions by 2050.
Weichai Power has made investments in research and development (R&D) and innovation to support its emission reduction efforts. The company has received cumulative patent grants and has filed new patent applications, indicating its commitment to developing environmentally friendly technologies. In terms of social responsibility, Weichai Power has conducted supplier training sessions and exchange events to promote sustainability practices throughout its supply chain.
In summary, Weichai Power actively pursues greenhouse gas emission reduction, evident in its comprehensive categorization and ambitious sector-specific targets. The company's commitment to innovation, reflected in R&D investments and patent applications, underscores dedication to environmentally friendly technologies, aligning with the national dual carbon goals. Weichai Power's holistic approach extends to promoting sustainability across its supply chain, reflecting a concerted effort in emission reduction and climate change mitigation.