Xiaomi unveils its latest ESG report, underlining an unwavering commitment to sustainability

Xiaomi today unveiled its sixth environmental, social, and governance (ESG) report. The over 80-page document published in Chinese and English outlines the progress that Xiaomi and its subsidiaries have made in the realm of ESG implementation, management, and strategy in 2023. This extensive report is divided into 4 main sections: Technology Created to Better Lives, Xiaomi’s Zero Carbon Philosophy, Shared Success for Partners, and Governance and Compliance.

Technology Created to Better Lives

Under its mission of letting “everyone in the world enjoy a better life through innovative technology”, Xiaomi remains dedicated to making technology accessible and inclusive for all. In 2023, an innovation in this regard included AI Identification Glasses, showcased by Xiaomi engineers during the Group’s fourth Hackathon Technology Competition. With ambient sound detection technology and gesture interaction intelligent technology, these glasses help to aid users through daily life.

Moreover, numerous accessibility features have been incorporated into the company’s newly introduced operating system, Xiaomi HyperOS. These include Xiaomi Ambient Sound Recognition, haptic feedback, and an AI Dialing Assistant, underscoring Xiaomi’s commitment to inclusive and accessible technology.

HyperOS serves as a unified operating system, designed to integrate seamlessly with the envisioned “Human x Car x Home” smart ecosystem, and aims to bring greater security, foster seamless connectivity among the myriad of devices, and optimize individual device performance.

At the same time, the company worked to enhance its smart manufacturing processes, regarded as a means for greater efficiency of resource utilization and reduced waste. This strategic move facilitated further progress in emerging sectors such as robotics, smart electric vehicles, and unmanned factories, reflecting Xiaomi’s dedication to technological innovation and sustainability.

Zero Carbon Philosophy

Embracing a zero-carbon philosophy, Xiaomi prioritizes low-carbon practices across its operations and extends support to suppliers in adopting climate-conscious measures. The company’s commitment to carbon neutrality is underscored with the introduction of its first White Paper on Climate Action at COP28 in Dubai in the winter of 2023, outlining its Zero-carbon Philosophy and approach to zero carbon. During the year, the company announced its commitment to 100% renewable electricity in its operations by 2035, and carbon neutrality plus 100% renewable energy in its own operations by 2040.

Additionally, its trade-in service was upgraded in select European markets, including Spain, France, the Netherlands, the UK, Germany, Italy, and Poland, furthering its commitment to sustainable practices and responsible consumerism.

In acknowledgement of its strides made in sustainability in 2023, Xiaomi was awarded a Gold certification from the Alliance for Water Stewardship, making Xiaomi Science and Technology Campus the first commercial building globally to apply for such a certification.

Further, earlier this week, on Earth Day (April 22, 2024), Xiaomi’s dedication to waste minimization and environmental stewardship was showcased in the announcement of a partnership with public welfare and diving instructor organization, Professional Association of Diving Instructors (PADI). Through a series of engaging online and offline activities, including beach clean-ups in select parts of Southeast Asia on April 27 with Xiaomi Fans and the creation of limited edition Xiaomi and PADI merchandise crafted from recycled fishing nets, Xiaomi aims to raise awareness about marine conservation and inspire collective action.

Shared Success for Partners

Xiaomi is committed not only to the growth and well-being of its own employees but also to ensuring transparency across its supply chain, while making meaningful contributions to society and the global community.

Through concerted efforts to create a comfortable work environment, Xiaomi earned a spot on Forbes’ list of the World’s Best Employers 2023, ranked among the top 3 of Universum’s list of China’s Most Attractive Employers, and was recognized by Forbes China as China’s Best Employer in Innovative Practices of the Year.

With a steadfast focus on research and development, Xiaomi actively promotes engagement for its employees in innovative research projects through the Xiaomi Foundation. Notably, collaborations with over 150 universities and colleges led to groundbreaking innovations like the Xiaomi AIoT Box, showcasing the company’s prowess in seamlessly integrating hardware and software to simulate diverse scenarios through the Mijia app.

Besides nurturing internal talent, of paramount importance is also ensuring the functionality and sustainability of the supply chain. To this end, the company has introduced a risk management framework to identify and manage ESG risks in this regard. By leveraging means such as on-site audits and assessment questionnaires and by working closely with its suppliers, Xiaomi seeks to gain a full understanding of potential issues so that action can be taken to solve these. It also has a stringent evaluation mechanism in place for new suppliers and ESG compliance remains a top priority in this process.

Beyond safeguarding the supply chain, Xiaomi extends its impact on society through philanthropic endeavors. Throughout the year, the Xiaomi Foundation facilitated numerous donations for natural disaster relief and social welfare initiatives, underscoring the company’s commitment to corporate social responsibility.

Governance and Compliance

Meanwhile, Xiaomi Group continued to raise the bar of its ESG management system, with a firm belief that it is a key pillar in the health and development of the company. To this end, the Board is regularly updated on progress in this area. In recognition of its efforts in 2023, Xiaomi received several awards and accolades, including Best ESG in the Technology Hardware sector by Institutional Investor, and ESG Company to Watch of the Year by Bloomberg Green.

Moreover, the company’s steadfast commitment to equality and diversity culminated in the appointment of its first female director to the Board in January 2024, a milestone highlighting Xiaomi’s progressive approach to inclusivity.

Further, reinforcing its dedication to innovation and intellectual property protection, Xiaomi concluded the 2023 reporting period with over 37,000 patents secured globally, a testament to its unwavering pursuit of cutting-edge development and respect for intellectual property rights.

The release of the 2023 Environmental, Social, and Governance report reflects Xiaomi’s commitment to playing its part to better the world in which we live, and the progress it has made in this regard. Through efforts in innovative technology, a zero carbon philosophy, a drive for the nurturing of the entire supply chain, and stringent governance and compliance, the company has made significant strides on its way to a sustainable future.

The above serves only as an overview of the 2023 ESG report. To view the full version, please click here.

About Xiaomi Corporation

Xiaomi Corporation was founded in April 2010 and listed on the Main Board of the Hong Kong Stock Exchange on July 9, 2018 (1810.HK). Xiaomi is a consumer electronics and smart manufacturing company with smartphones and smart hardware connected by an IoT platform at its core.

Embracing our vision of “Make friends with users and be the coolest company in the users’ hearts”, Xiaomi continuously pursues innovations, high-quality user experience and operational efficiency. The company relentlessly builds amazing products with honest prices to let everyone in the world enjoy a better life through innovative technology.

Xiaomi is one of the world’s leading smartphone companies, with its global smartphone shipments ranked among the top three and global MAU (including smartphones and tablets) reached 641.2 million in December 2023. The Company has also established the world’s leading consumer AIoT (AI+IoT) platform, reached approximately 739.7 million smart devices connected to its platform (excluding smartphones, laptops and tablets) as of December 31, 2023. In October 2023, Xiaomi upgraded its strategy to “Human × Car × Home” smart ecosystem, seamlessly merges personal devices, smart home products, and cars. Xiaomi always centers on humanity and is committed to providing comprehensive, better connected experiences. Xiaomi products are present in more than 100 countries and regions around the world. In August 2023, Xiaomi was included in the Fortune Global 500 list for the fifth year in a row, ranking 360th.

Xiaomi is a constituent of the Hang Seng Index, Hang Seng China Enterprises Index, Hang Seng TECH Index and Hang Seng China 50 Index.