Climate Change Data

Environmental Metrics

ESG Focus Areas

• Fair operations
• Bridging the digital divide
• Environmental protection
• Supply chain CSR management
• Employee well-being
• Community support

Environmental Achievements

• Reduced average energy consumption (AEC) per unit business volume of shipments by 35 percent by the end of 2012 (compared to 2009 levels).
• Developed a quick lifecycle assessment (Quick-LCA) tool to support LCA and continuous improvement of products.
• Developed halogen-free radio communication products.
• Reduced annual steel consumption by 3,000 tons and copper consumption by 800 tons through equipment weight reduction.
• Reduced power consumption during manufacturing by suppliers by 30 million kWh, water consumption by 44,250 tons, fuel oil consumption by 600 tons, packaging materials by 500 tons, and CO2 emissions by 42,000 tons annually.
• Deployed 8,000 hybrid-energy powered stations.
• Reduced timber usage by 6,100 cubic meters and carbon emissions by 12,000 tons through green packaging solutions.
• Recycled and reused 96% of raw materials from 5,000 tons of electronic waste.

Social Achievements

• Increased localization rate of employees in overseas offices from 65% in 2009 to 69% in 2010.
• Held the first female development conference on "growth, progress, and excellence".
• Improved employee welfare, spending an additional CNY 1.97 billion.
• Contributed USD 1.055 million in cash and material to flood-stricken countries.
• Employees voluntarily contributed nearly CNY 6 million to Yushu earthquake relief.
• Launched the "Telecom Seeds for the Future" program in Malaysia, the Philippines, Australia, Indonesia, and Bolivia.

Governance Achievements

• Established the Global Network Security Committee (GNSC).
• Established the Cyber Security Evaluation Center in the U.K.
• Developed Huawei Employee Business Conduct Guidelines (BCG), signed by 98% of employees.
• Formulated corporate regulations for export control.

Climate Goals & Targets

Environmental Challenges

• Bridging the digital divide in broadband services.
• Increasing network traffic.
• High price of smartphones.
• Environmental deterioration and global warming.
• Managing CSR risks in the supply chain.

Mitigation Strategies

• Providing advanced, efficient, and low-ARPU solutions.
• Deploying broadband networks.
• Developing communications talent.
• Developing green communications solutions.
• Implementing ethical and green sourcing methods.
• Establishing a Supplier CSR Management Department.
• Conducting CSR risk assessments and audits of suppliers.

Supply Chain Management

Supplier Audits: Over 5,200 audits on subcontractors' CSR/EHS systems and engineering sites.

Responsible Procurement

• CSR a prerequisite for new suppliers.
• Annual CSR risk assessment and random inspections.
• Supplier CSR Agreement.
• Huawei Green Partner (HW GP) program.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 27001, OHSAS 18001

Third-party Assurance: Det Norske Veritas (DNV)

Sustainable Products & Innovation

• Halogen-free radio communication products.
• Green packaging solutions.

Awards & Recognition

• The Economist magazine's Corporate Use of Innovation Award 2010
• Ranked fifth Most Innovative Companies by Fast Company
• GSMA Best SDP Award
• LTE Commercialization Award and Best Contribution to R&D for LTE
• Solution Excellence Award at TM Forum
• Messaging Application: Consumer Award
• InfoVision Award in Broadband Access Network Technologies and Services
• Three honors at the Global Telecom Business Innovations Awards
• Silver Award of PackStar by China Packaging Federation
• WorldStar Award for Packaging Excellence by the World Packaging Organization
• WPO WorldStar Sustainability Award 2009 Gold
• China Green Technology Innovation in Telecom Award

Environmental Metrics

ESG Focus Areas

• Cyber security and privacy protection
• Sustainable development
• Digital inclusion
• Low-carbon footprint
• Environmental protection
• Corporate governance

Environmental Achievements

• PowerStar network solution reduced energy consumption of base stations by 10% to 15%, cutting around 2,000 tons of CO2 emissions annually for every 1,000 sites.

Social Achievements

• RuralStar series solutions provided mobile Internet services for more than 40 million people living in remote areas of over 50 countries and regions.
• Launched TECH4ALL, a global digital inclusion program.
• Huawei SmartBus mobile classroom project provided digital skills training to children in Western Europe.

Governance Achievements

• Robust corporate governance system with employee shareholding scheme.
• Enhanced transparency and proactive communication with stakeholders.
• Strengthened cyber security and user privacy protection.
• Complied with all applicable laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Unprecedented challenges and enormous outside pressure.
• Restrictions imposed by the US Entity List.
• Impact of the ongoing COVID-19 pandemic.
• Cyber security and privacy protection challenges in an increasingly open digital world.

Mitigation Strategies

• Enhanced product and service competitiveness.
• Open innovation and value creation.
• Business continuity management system.
• Multi-sourcing and multi-channel procurement strategy.
• Comprehensive measures to address cyber security and privacy challenges, including technological innovation, standards setting, and management improvement.
• Proactive engagement with stakeholders.

Supply Chain Management

Responsible Procurement

• Multi-sourcing strategy
• Scenario-specific stock-up
• Supply and demand visibility
• Strategic partnerships
• Supply chain security management system certified to ISO 28000

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• PowerStar network solution

Awards & Recognition

• 2019 Global Industry Award for Sustainable Impact from ITU
• 2019 Technology Leadership Award in the Global Smart Data Center Industry from Frost & Sullivan
• Top Employer Europe award

Environmental Metrics

ESG Focus Areas

• Digital Inclusion
• Security and Trustworthiness
• Environmental Protection
• Healthy and Harmonious Ecosystem

Environmental Achievements

• Reduced CO2 emissions per million RMB of sales revenue by 33.2% compared to 2012 (exceeding the 30% target set in 2016).
• Generated 220 million kWh of electricity from renewable energy sources in China, equivalent to reducing CO2 emissions by 188,000 tons.
• 93 of top 100 suppliers set carbon emission reduction targets.
• Processed more than 4,500 tons of smart device e-waste through recycling stations.
• Reduced total carbon emissions by suppliers by 300,000 tons compared to 2019.

Social Achievements

• Launched TECH4ALL initiative, benefiting 60,000+ teachers and students.
• Provided mobile internet services to 50 million+ people in remote areas.
• Launched Huawei ICT Academy Program 2.0, aiming to train 2 million ICT professionals.
• Invested CNY11.89 billion in employee benefits.
• Shipped 620+ batches of protective equipment to subsidiaries in 120+ countries during the COVID-19 pandemic.
• Provided technical assistance to nearly 90 countries during the COVID-19 pandemic.
• 15 accessibility functions on Huawei smartphones used by 10 million people monthly.

Governance Achievements

• Established a Corporate Sustainable Development (CSD) Committee.
• Opened six Cyber Security and Privacy Protection Transparency Centers globally.
• Obtained more than 70 certifications related to cyber security and privacy protection in 2020.
• Signed data processing agreements with more than 5,000 suppliers.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic.
• Climate change.
• Heightened geopolitical tensions.
• Lack of skilled ICT workforce.
• Unequal access to education and healthcare.
• Environmental degradation.
• Cybersecurity threats.
• Being on the US Entity List.

Mitigation Strategies

• Developed ICT solutions to fight the pandemic and support remote work, education, and healthcare.
• Implemented a three-level energy-saving solution (PowerStar) for wireless networks.
• Launched TECH4ALL initiative for digital inclusion.
• Developed Huawei ICT Academy Program 2.0.
• Invested in employee health and safety measures.
• Strengthened cyber security and privacy protection measures.
• Pursued supply chain diversification.

Supply Chain Management

Supplier Audits: 319 suppliers audited in 2020 (including 116 by third-party auditors)

Responsible Procurement

• Supplier CSR Agreement covering labor standards, safety, environment, ethics, and management systems.
• Zero tolerance for child labor and forced labor.
• Regular CSR training for procurement staff.
• Risk-based approach to supplier audits.
• CRCPE methodology for issue resolution.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 50001, ISO 27001, CC EAL4+, NESAS, PCI DSS

Third-party Assurance: Bureau Veritas

UN Sustainable Development Goals

• SDG 1
• SDG 2
• SDG 3
• SDG 4
• SDG 5
• SDG 6
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

The report details how Huawei's initiatives contribute to various UN SDGs throughout the document.

Sustainable Products & Innovation

• PowerStar energy-saving solution
• RuralStar Pro solution
• Full liquid cooling solution for data centers
• iCooling solution
• Power Turbo solution
• Huawei OptiXstar smart optical modem series
• Huawei NetEngine routers
• Huawei HiCharger DC charging modules

Awards & Recognition

• CDP Climate A List
• Top Employer Europe 2020
• Global Mobile (GLOMO) Awards
• Best Practice Award for progress towards SDGs

Environmental Metrics

ESG Focus Areas

• Digital Inclusion
• Security and Trustworthiness
• Environmental Protection
• Healthy and Harmonious Ecosystem

Environmental Achievements

• Average energy efficiency of main products was 1.9 times higher in 2021 than in 2019.
• Used over 300 million kWh of electricity from renewable energy sources in own operations (42.3% increase over 2020).
• 98% of top 100 suppliers and energy-intensive suppliers set carbon emissions reduction targets.
• 89% less plastic used in packaging of P50 series smartphones compared to P40 series.

Social Achievements

• Seeds for the Future program invested over US$150 million, benefiting over 1.54 million people.
• Launched Seeds for the Future 2.0 program with a US$150 million investment over five years, expected to benefit over three million more people.
• Invested more than CNY15 billion in employee benefits.
• Launched HUAWEI Women Developers program.
• Invested US$100 million in the Spark Program in the Asia-Pacific region.

Governance Achievements

• Opened the largest global Cyber Security and Privacy Protection Transparency Center.
• Improved software engineering capabilities and incorporated them into the Integrated Product Development process.
• Handled over 20,000 data subject requests effectively.
• Obtained more than 70 cybersecurity certifications.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic, conflicts, and natural disasters impacting communications network delivery and operations.
• Supply chain disruptions.
• Cybersecurity threats.
• Digital skills gap.

Mitigation Strategies

• Established backup supply networks.
• Strengthened cybersecurity and privacy protection measures.
• Developed various programs to cultivate digital talent and enhance digital literacy (e.g., Seeds for the Future, TECH4ALL).
• Provided timely support for over 180 major events and emergencies worldwide.

Supply Chain Management

Supplier Audits: 1,600+ major suppliers assessed, 318 onsite audits

Responsible Procurement

• Supplier CSR Agreement based on RBA Code of Conduct and JAC guidelines.
• Zero tolerance for child and forced labor.
• Risk-based approach to supplier audits.
• CRCPE methodology for issue resolution.
• Supplier performance management and grading.
• Sustainability training and coaching for suppliers.
• Joint audits with customers.
• Collaboration with industry organizations (RBA, JAC, IPC).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather, flooding

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and solutions.

Reporting Standards

Frameworks Used: GRI Standards (Core option)

Certifications: ISO 14001, ISO 45001, ISO 50001, ISO 14064

Third-party Assurance: SGS

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 13 (Climate Action)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 17 (Partnerships for the Goals)

Initiatives contribute to these goals through digital inclusion, environmental protection, talent development, and sustainable supply chain practices.

Sustainable Products & Innovation

• Energy-efficient 5G networks, green data centers, eco-friendly electronics, plastic-free packaging, lightweight user manuals.

Awards & Recognition

• Numerous awards listed on page 9

Environmental Metrics

ESG Focus Areas

• Information Accessibility
• Education and Health
• Environmental Protection
• Corporate Social Responsibility (CSR)

Environmental Achievements

• Used more than 390 million kWh of renewable energy and nearly 1.8 billion kWh of clean electricity in 2022 (year-on-year increase of 25% and 15% respectively).
• Reduced carbon emissions of Huawei Device suppliers by 10% in 2022 compared with the previous year.
• Extended the service life of over 16 million devices by repairing faulty components since 2020.
• Reduced the size of the product manual by 86% in 2023 compared with 2019, saving an estimated 1,274 metric tons of paper and reducing carbon emissions by more than 36,000 metric tons.

Social Achievements

• Offered more than 15,000 online courses and employees received more than 2 million hours of training in 2022.
• Created more than 75,000 jobs worldwide.
• Conducted 217 sustainability reviews on suppliers from September 2022 to August 2023.
• Launched HarmonyOS 4 with upgraded accessibility features such as Smart Q&A, hearing aid-device connection, Senior mode, and Celia Call.

Governance Achievements

• Established a sustainability management system based on the PDCA cycle and international standards such as ISO 26000 and SA8000.
• Obtained ISO 13485 certification in September 2022.
• Obtained six registration certificates from China's NMPA for various medical device features on its wearables.

Climate Goals & Targets

Environmental Challenges

• Various difficulties and challenges in achieving sustainable development goals are mentioned, but not specifically described.

Mitigation Strategies

• Resolutely increasing investment in research and development (R&D) and developing innovative technologies to promote green and sustainable development.

Supply Chain Management

Supplier Audits: 217/year (2022-2023)

Responsible Procurement

• Huawei Supplier Social Responsibility Code of Conduct; requirements for hazardous substance control; encouragement of product carbon footprint analysis; incorporation of carbon emissions reduction into supplier selection strategy; promotion of renewable energy use by suppliers; zero-landfill waste management system.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: ISO 14040/ISO 14044, ISO 14064, ISO 26000, SA8000, QC 080000, ISO 13485, ISO 9001, IATF 16949, ISO 27001, ISO 45001, TL 9000, EU Medical Device Regulation (MDR), RBA, JAC, UNGP, OECD Due Diligence Guidance, Science Based Targets initiative (SBTi)

Certifications: QC 080000 HSPM, ISO 13485, CC EAL6+, SGS green product certificate, CQC environmental protection rating certificate, China Environmental Labeling, Green Product Mark from TÜV Rheinland, Zero Waste to Landfill Management System Certificate

Third-party Assurance: Third-party assurance mentioned for some data, but specific providers not consistently named.

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

The report mentions contributions to SDGs through various initiatives, but doesn't provide detailed explanations for each goal.

Sustainable Products & Innovation

• Products using renewable materials; durable and repairable products; eco-friendly packaging.

Awards & Recognition

• CDP Climate Change "A list" (2022)
• CDP Excellent Environmental Leadership Award (2022)
• ESG Innovator for New Growth in China (Harvard Business Review, Chinese Edition, 2022)
• No. 1 in Forbes World's Best Employers List for 2022
• Huawei HarmonyOS 3 Technology Accessibility Solution: selected as the CCF 2022 Technology Charity Annual Case Study
• HUAWEI Mate 50 Pro: five stars in ifeng.com's accessibility assessment (2023)
• HarmonyOS 3: five stars in China Telecom's assessment of elderly-friendly smartphone OSs/UIs (2023)
• Ranked 58th in BrandZ's Top 100 Most Valuable Brands of 2023

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Protection
• Social Responsibility
• Governance

Environmental Achievements

• Reduced CO2 emissions by 495 million tons, equivalent to planting 680 million trees by helping customers generate 997.9 billion kWh of green power and save 46.1 billion kWh of electricity.
• Achieved ISO 14001 environmental management system certification.
• Built a green and intelligent near-zero-carbon campus for Antuoshan Headquarters.
• Reduced packaging waste and carbon emissions by more than 600 tons through package recycling solutions.
• Optimized packaging for an inverter model, cutting more than 1,100 tons of carbon emissions.
• Promoted organized-level carbon footprint verification among top 71 suppliers (90% of total purchase amount).

Social Achievements

• Established various dialogue mechanisms with stakeholders (customers, employees, suppliers, governments, NGOs, etc.).
• Provided tailored training programs to stakeholders on quality management, cybersecurity, and privacy protection.
• Created a diverse workplace with approximately 7,000 employees from over 70 countries and regions.
• Implemented a mechanism for department-initiated talent transfers and an internal talent market for employee mobility.
• Organized various team activities to foster mutual understanding and trust among employees.
• Offered comprehensive health and safety measures, including medical checkups (97% participation rate) and emergency drills.

Governance Achievements

• Established a CSD management system based on ISO 26000 and RBA codes of conduct.
• Set up the Huawei Digital Power CSD Committee for sustainable development oversight.
• Implemented a comprehensive procurement CSR management system based on OECD guidelines and IPC-1401 standard.
• Maintained zero tolerance for violations of supplier CSR red lines (no violations reported in 2023).
• Integrated cybersecurity and privacy protection into business processes and obtained relevant certifications (ISO/IEC 27001, IEC 62443-4-2, etc.).
• Established a compliance management system covering various domains (trade compliance, financial compliance, anti-bribery, etc.).

Climate Goals & Targets

Environmental Challenges

• Climate change and the need for zero-carbon initiatives.
• Challenges in reducing energy consumption and carbon emissions in manufacturing and operations.
• Challenges in managing carbon emissions throughout the supply chain.
• Challenges in ensuring product safety and reliability in diverse environments.
• Challenges in ensuring cybersecurity and privacy protection.
• Challenges in maintaining compliance with laws and regulations in various countries.

Mitigation Strategies

• Implemented a low-carbon governance system and key objectives.
• Built green campuses and implemented energy-saving technical transformations.
• Collaborated with suppliers to accelerate decarbonization and achieve carbon reduction goals.
• Integrated digital technologies with energy products to boost equipment safety and reliability.
• Established a comprehensive cyber security and privacy protection management system.
• Established a compliance management system and integrated compliance into business activities and processes.

Supply Chain Management

Supplier Audits: Onsite audits on key suppliers, including new suppliers, medium/high-risk suppliers, and EHS risk suppliers.

Responsible Procurement

• Supplier CSR Agreement based on RBA Code of Conduct and JAC guidelines.
• CSR requirements integrated into procurement strategy and business processes.
• Zero tolerance for violations of CSR red lines.
• Regular CSR training for procurement staff.
• Supplier sustainability performance appraisal based on five criteria.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001, ISO 50001, ISO 45001, IEC 62443-4-2, ETSI EN 303645

UN Sustainable Development Goals

• SDG 3
• SDG 5
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13

Huawei Digital Power supports and promotes these SDGs through practical actions.

Sustainable Products & Innovation

• FusionSolar Smart PV & ESS Solutions
• Smart Charging Network solutions
• DriveONE e-mobility solutions
• Data Center Facility & Critical Power solutions
• Site Power Facility solutions

Awards & Recognition

• Numerous awards listed in the report (pages 8-12)