BEIJING: Forbes China on Thursday named Xiaomi Corporation to its “China ESG 50” list for 2022.
Forbes China launched its China ESG 50 report to recognize companies that adhere to best practices in environmental, social and governance (ESG).
“We are honored to receive recognition for our ESG practices,” said Wang Xiang, Partner and President of Xiaomi Group.
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He further said “As a top-three global smartphone company and a leading consumer AIoT platform, Xiaomi is fully committed to leveraging its scale and efficiency to create a sustainable economy for our users, employees, partners and the planet. We look forward to leading by example and continuing to integrate ESG practices into our products, services, governance structure, and operations.”
Forbes China’s selection criteria for the ESG 50 are based on the United Nations (UN) Sustainable Development Goals (SDGs). Companies named to the list are also on Forbes Global 2000 list.
Xiaomi views ESG management as fundamental to its corporate strategy. It has published an annual ESG Report since 2018 and has joined the UN Global Compact and committed to its ten stipulated principles of corporate responsibility since 2020.
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Its achievements in ESG were recognized by the Chamber of Hong Kong Listed Companies in 2021 with the “Award of Excellence in ESG”.
Xiaomi has reduced resource consumption and minimized the environmental impacts of its products by leveraging technology advancement and optimizing production processes. As shown in the graph below, environmental impacts are minimized throughout the life cycle of Xiaomi products.
Examples of ways Xiaomi reduced its environmental impacts include the following. The Xiaomi 12 series smartphone features a rear cover made of BASF Haptex®, a low-carbon non-solvent polyurethane (PU) material that consumes 20 percent less energy, emits 20 percent less greenhouse gases, and uses 15 percent less water compared to synthetic leather.
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Lightweight pallets used for shipping smartphones abroad annually save up to 460 metric tons of aviation fuel or 1,423 metric tons of CO2e. Xiaomi also recycled more than 650 thousand smartphones in 2021, 80 percent to 90 percent of which were resold.
When it comes to the social factor in ESG, Xiaomi has built a comprehensive governance structure to protect data security and user privacy. Xiaomi created its Security and Privacy Committee in 2014. Xiaomi adopted the General Data Protection Regulation (GDPR) of European Union compliance assessment in 2018. It continues to submit to external expert scrutiny of its data protection and user privacy practices.
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Last year, Xiaomi published its first transparency report, making it the first Android smartphone brand to do so. Xiaomi this year obtained the certificate of registration of NIST CSF (National Institute of Standards and Technology, Cybersecurity Framework), further strengthening its data security protection capabilities.
