Climate Change Data

Xiaomi Corporation

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:116,722.56 tonne (Mt) of CO2e
Scope 1 Emissions:12,252.52 tonne (Mt) of CO2e
Scope 2 Emissions:104,470.04 tonne (Mt) of CO2e
Scope 3 Emissions:To be disclosed in September 2024
Renewable Energy Share:Not disclosed
Total Energy Consumption:211,171.84 MWh
Water Consumption:683,906.94 tonne (Mt)
Waste Generated:7,174.83 tonne (Mt) non-hazardous; 95.78 tonne (Mt) hazardous
Carbon Intensity:0.43 tonne (Mt) of CO2e/RMB million

ESG Focus Areas

  • Climate mitigation and adaptation
  • Product and service quality
  • Sustainable supply chain
  • Data security and privacy protection
  • Talent development

Environmental Achievements

  • Completed Phase II of Xiaomi Smart Factory, with a capacity of up to ten million smartphones annually by 2024.
  • Recycled approximately 12,260 tonnes of electronic waste globally.
  • Achieved a 36% reduction in customer complaints over refund information.
  • Xiaomi Science and Technology Campus obtained the Alliance for Water Stewardship (AWS) Gold certification.

Social Achievements

  • Launched Xiaomi Children’s Park, offering high-quality growth content for children.
  • Included in the World’s Best Employers 2023 list of Forbes.
  • Achieved zero major EHS accidents, zero major losses, zero major incidents of fire, zero environmental pollution and social reputation events, and zero incidents of occupational disease or occupational health hazards.
  • Provided additional insurance for 49,654 employees and their children.

Governance Achievements

  • Passed the review of ISO 37001 Anti-Bribery Management Systems.
  • Obtained more than 37,000 patents globally.
  • Xiaomi’s self-developed TEE was awarded the first EAL5+ certificate in China.
  • Appointed Ms. Cai Jinqing as an independent non-executive Director, enhancing Board gender diversity.

Climate Goals & Targets

Long-term Goals:
  • By 2040, achieve carbon neutrality in own operations of existing business segments, use 100% clean heat, and use 100% renewable energy.
Medium-term Goals:
  • By 2030, reduce GHG emissions from main operating segments to at least 30% of the 2021 level.
  • By 2035, use 100% renewable electricity in own operations.
Short-term Goals:
  • By 2026, reduce energy consumption per 10,000 RMB of revenue for ISO 50001-certified facilities by at least 2.5%.

Environmental Challenges

  • Global supply chain complexity and challenges.
  • Climate-related extreme weather events and natural disasters.
  • Managing ESG risks associated with the supply chain.
Mitigation Strategies
  • Established a comprehensive risk management framework for ESG risks in the supply chain.
  • Developed a supply chain natural disaster early warning system.
  • Embedded ESG governance principles into supplier selection and assessment.
  • Developed a standardized toolkit for ESG risk assessment and mitigation in the supply chain.

Supply Chain Management

Supplier Audits: 805 manufacturing suppliers reviewed; 42 suppliers’ cooperation suspended/terminated due to various compliance issues.

Responsible Procurement
  • Supplier Social Responsibility Code of Conduct
  • ESG governance principles embedded in supplier selection
  • ESG clauses in supplier contracts
  • Preference given to suppliers with strong ESG performance
  • Mechanism for non-compliance with governance standards

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Natural disasters
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Expansion of renewable energy usage

Reporting Standards

Frameworks Used: HKEx Appendix C2, GRI Sustainability Reporting Standards (2021), SASB Hardware — Sustainability Accounting Standard, TCFD Recommendations, UN Sustainable Development Goals (UNSDGs)

Certifications: ISO 9001, ISO 14001, ISO 45001, ISO 27001, ISO 37001, AWS Gold

Third-party Assurance: BSI Management Systems Certification (Beijing) Co., Ltd.

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Xiaomi 13T smartphone with bio-based back case
  • Xiaomi 14 and Xiaomi 14 Pro smartphones with recycled materials
  • Mijia Solar Panel and Mijia Outdoor Power Supply 1000 Pro

Awards & Recognition

  • CAQ Quality Technical Award
  • Business Improvement Case Awards from the China Quality Club
  • Inclusion in S&P Global’s Sustainability Yearbook (China)
  • MSCI ESG rating lifted to BB
  • Gold Medal in EcoVadis Sustainability Rating
  • China’s Best Employer of the Year by Forbes
  • Sustainability Performance Award for 2023 by the British Standards Institution (BSI)
  • 24th China Patent of Excellence Award