Zhengzhou, Henan details enterprise credit scoring system for environmental protection

Zhengzhou unveils draft policy outlining environmental protection blacklisting scheme for industrial production and construction industries.

On June 1 2019, the provincial government of Zhengzhou released three draft measures outlining a new environmental social credit evaluation scoring system for local enterprises.

Targeted industries

The measures will apply to enterprises operating in the fields of:

  • Industrial production
  • Construction
  • Construction waste clearance

How it works

  • The scoring period runs from January 1 – December 31 annually
  • Scoring will be based on a 0-100 scale
  • Companies whose evaluated score falls to 60 points or below will be blacklisted
  • Enterprises with clean credit records who maintain a score of 100 for two consecutive years will be redlisted

Penalties and Rewards

Blacklisted companies will be subject to penalties under the Unified Rewards and Punishments framework, including:

  • Increased inspections
  • Inability to receive bank loans
  • Suspension of environmental protection fund provisions
  • Inability to participate in government bidding

Redlisted companies will be given preferential access to subsidies, and the company’s bids will be prioritized in government procurement decisions. Redlisted construction units will be approved to carry out earth and stone-work operations during times when this type of construction is typically restricted, such as during “orange level” or below weather pollution warnings, or during seasonal dust-reduction periods (封土行动).

Personal credit

In the field of construction waste management, both enterprises and drivers of waste removal trucks will be given credit grades, with points deducted from both the driver’s personal credit and the company’s credit in case of violations. If the driver’s personal score falls lower than 60, his or her vehicle license will be cancelled, and they will be barred from working in the industry.

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