CHONGQING CHANGAN AUTOMOBILE LTD A

Chongqing Changan Automobile is a major state-owned automaker whose core business—producing and selling millions of internal combustion engine vehicles annually—is fundamentally misaligned with a low-carbon transition. The Transition Pathway Initiative assesses the company at Level 1, "Acknowledging Climate Change as a Business Issue," indicating a systematic failure to integrate climate governance into its operations. It has not set quantitative greenhouse gas reduction targets, does not disclose Scope 3 emissions—which constitute the vast majority of an automaker's footprint—and provides no evidence of board-level oversight or a transition plan for its product portfolio.

This governance failure manifests in real-world regulatory violations. In January 2018, Beijing's environment authority fined the company and confiscated 12.6 million yuan in illegal gains after several of its Raeton sedans and CS75 SUV models failed to meet municipal emissions standards; the onboard diagnostics systems in the CS75s were also found to be non-functional. The company attributed the violations to "technical accidents," but the penalty was significant enough for industry observers to predict it would set a precedent for stricter nationwide enforcement.

While the company has articulated a "new energy" vehicle strategy, its current performance lags critically behind sector peers. The World Benchmarking Alliance's Climate and Energy Benchmark scored the company 7.8 out of 20, ranking it 14th out of 25 global automakers, and noted its "current fleet emissions are high and its share of sales from low-carbon vehicles is low." The absence of quantified decarbonization targets, verified emissions data, and a capital expenditure plan aligned with phase-out goals underscores that its climate commitments remain aspirational against a business model still centered on high-emitting vehicles.