Sustainable Fitch Awards NaaS the Highest ESG Rating in Mainland China

Automotive Author: EqualOcean News, Muriel Meng Editor: Yiru Qian Oct 09, 2023 05:40 PM (GMT+8)

ESG performance is emerging as the next critical competitive advantage for businesses


NaaS Techonology (NAAS:NASDAQ), the first US-listed EV charging service provider in China, has attained the highest Environmental, Social and Corporate Governance (ESG) score in China bestowed by Sustainable Fitch, with an impressive entity rating of "2" and a remarkable score of "76". In the comprehensive assessment, NaaS secured the 5th position out of 87 rated corporations accross six globally significant industries, including electrical-corporate, energy, natural resources, power, power markets and generation, and utilities. Furthermore, it excelled as the second highest-rated entity within the Asia-Pacific region.

According to Sustainable Fitch, a subsidiary of the Fitch Group focusing on providing comprehensive ESG ratings and research products for global asset classes, employs a rating system spanning from 1 to 5,  where "1" denotes the highest performance. With the favorable result of "2", NaaS is expected to make a significant contribution to the popularization of electric vehicles (EVs) and the transition towards a low-carbon transport economy in China.

Zhai Yubo, the General Manager of Carbon Neutral Business Unit of NaaS, expressed that this accomplishment underscores the international rating agencies' acknowledgment of NaaS' ESG performance. It serves as a testament to NaaS' dedicated focus on ESG issues within its corporate strategy and its proactive efforts towards ushering in the low-carbon transformation of the society and the economy. Guided by the vision of "making green energy available to everyone", NaaS is unwavering in its commitment to improving the stability and efficiency of the global transport energy network through innovative technologies, products and models, thereby contributing to an enhanced ESG rating.

During the first half of 2023, NaaS reduced carbon emissions by 1.463 million tons, increased by 109% year on year. As part of its unwavering dedication to environmental sustainability, NaaS has set ambitious targets of reducing both Scope 1 and Scope 2 emissions by 42% by 2030 compared to 2022 levels. Furthermore, it has committed to addressing Scope 3 emissions in the short term.  In a significant step towards aligning with global climate goals, NaaS has formally joined the Science-Based Targets initiative (SBTi), becoming the first new energy charging service company in China to join SBTi in helping achieve the global temperature control target of 1.5℃.

NaaS has also incorporated the 17 United Nations Sustainable Development Goals (SDGs) into its daily operations and practices, defined 13 SDGs that are closely related to the corporate development, and promoted the realization of the goals through vital actions to actively respond to the concerns and expectations of stakeholders.

In addition, based on the characteristics of the main business, NaaS actively develops innovative carbon inclusion mechanisms, acting as the pioneer in the industry to establish the charging carbon account function and promote green and low-carbon transportation and travel. By the end of 2022, there were 463,000 carbon account users. Meanwhile, NaaS has donated 1 million tons of carbon emission reductions to support the sustainable environment in Anji, Zhejiang, assisting it in constructing an international city with a sustainable ecosystem.

In terms of governance, NaaS has implemented a three-tier ESG governance framework known as "Governance - Management - Execution". This structure aligns with the company's operation and management, providing clear division of responsibilities at each level to continuously improving its ESG governance standards.

As of press time, NaaS closed at USD 3.24 apiece, with a market capitalization of USD 712 million.