- Report highlights carbon reduction, green manufacturing and overseas compliance
- Automakers face rising pressure as global expansion shifts toward regulatory standards
Geely Holding Group and the China Association of Automobile Manufacturers on May 22 jointly released China’s first ESG-focused report dedicated to overseas expansion by electric-vehicle makers.
The framework comes as Chinese automakers face growing scrutiny over sustainability standards, supply chains and carbon disclosures in global markets.
The report was unveiled at Geely’s sustainability forum in Hangzhou on May 22, which happened to the be 26th International Day for Biological Diversity.
Geely said competition in overseas EV markets is increasingly shifting from pricing and scale toward regulatory compliance and system-level capabilities, making ESG performance a core part of global expansion strategies.
According to the report, Geely had obtained certifications for 26 national-level green factories, 13 “zero-waste” factories and five carbon-neutral factories by 2025.
The Hangzhou-based company said it had also led or participated in drafting 32 national and industry standards tied to carbon reduction, while receiving the highest carbon-management rating among Chinese automakers from the China Automotive Technology and Research Center.
The automaker said it reduced emissions across its vehicle supply chain by 1.476 million tons and achieved its 2025 target of cutting lifecycle emissions per vehicle by 25%.
It also said Geely was the only Chinese automaker included in the Sustainability Yearbook 2026 released by S&P Global.
Looking ahead to 2030, Geely said it plans to achieve full green-electricity coverage across manufacturing bases and cut manufacturing-related carbon intensity per vehicle by more than 80% compared with 2022 levels.
Green electricity refers to renewable energy such as wind and solar power, which produces minimal carbon emissions. It differs from “grey electricity,” typically generated from coal-fired sources with high emissions, and “blue electricity,” commonly used to describe nuclear power.
Among the three, green electricity is considered the most effective for emissions reduction.
The company added that it aims to cap total operational emissions at no higher than 2022 levels despite rising sales volumes, without relying on carbon offsets.
Beyond battery-electric and hybrid vehicles, Geely said it continues to invest in methanol-based energy technologies.
Betting on methanol
The company has established more than 1,000 methanol fueling stations across China and said methanol-electric vehicle technology had recently been deployed at scale during an international sporting event.
Geely also said circular-economy principles have been integrated across manufacturing operations, with vehicle material recycling rates reaching 97.9% and average vehicle recyclability climbing to 98.3%.
Peng Huagang, president of the China Enterprise Reform and Development Society, a government-affiliated think tank, said at the event that ESG has evolved from an optional corporate initiative into what he described as a “survival issue” tied to overseas market access, valuation and long-term industrial competitiveness.
He added that he hoped Geely would continue helping establish industrywide ESG standards and contribute to what he called a scalable “China solution” for the global automotive sector.
