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Huawei Sustainability Report

< Telecommunications Home

RATING

C

Outlook

Neutral

SECTOR

 Other telecommunications activities

Chief Sustainability Officer

Alan Aicken

Contact Details:

LinkedIn

T: N/A 

E-mail: N/A 

Stock Exchange and Ticker

Not public

Website

Huawei

Contact

T:+86 (0)755 2878 0808

E.mail: sustainability@huawei.com

Listing

  • #23 World’s Best Employers (2022)

Awards

  • Huawei DigiTruck in Kenya: World Summit on the Information Society (WSIS) Prizes 2021 Champion Project by ITU
  • Nature Guardian: GSMA GLOMO for Outstanding Mobile Contribution to the UN SDGs by GSMA
  • Huawei RuralStar Pro: Best Mobile Innovation for Emerging Markets of GSMA GLOMO by GSMA
  • Best Practices for Achieving SDGs in 2021 (Protecting the Environment & Addressing Climate Change) by Global Compact Network China
  • Leadership Award on Climate Action by CDP
  • Climate A- List by CDP
  • FusionSolar Smart PV solution: Carbon Neutrality Actor – Climate Solver of the Year by WWF
  • 27 Huawei subsidiaries recognized as a Top Employer by Top Employers Institute
  • Huawei India: Great Place to Work by Great Place to Work® Institute
  • Huawei Saudi Arabia: 2021 Sustainability Award in the Core Economic Area by King Khalid Foundation (KKF)
  • Top 10 Green and Low-carbon Companies by Shenzhen Emissions Exchange Co., Ltd
  • Huawei Malaysia: Cyber Security Innovation of the Year by CyberSecurity Malaysia (CSM)
  • Huawei UAE: Cybersecurity Company of the Year and Cybersecurity CEO of the Year by UAE Cyber Security Council (CSC)
  • Vodafone Health and Safety Award by Vodafone Group
  • Excellence in Supply Chain Development by Deutsche Telekom
  • Huawei Bangladesh: Partner Recognition Award by bKash

Revenue

CNY 636.8 billion

Market Capitalisation

CNY 1.1 trillion

Employees

195,000

Content source

  1. Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
  2. Huawei Annual Report 2021

Huawei Sustainability Report

Evaluation of Huawei

Huawei has some great sustainability initiatives and is making some good progress. However, their report could be more transparent and clear on some of the targets like the human rights. The company has received several relevant sustainability awards and certifications. The articles surrounding the company has mentioned some of the great initiatives it has taken towards social impact and climate action but also mentions some negative impressions on them. Based on all these accounts, the company has been rated C. 

Sustainability Scorecard

Huawei Company Activity

Huawei’s mission is to bring digital to every person, home and organization for a fully connected, intelligent world. The company drives ubiquitous connectivity and promote equal access to networks to lay the foundation for the intelligent world; provide diversified computing power to deliver ubiquitous cloud and intelligence; build powerful digital platforms to help all industries and organizations become more agile, efficient, and dynamic; redefine user experience with AI, offering consumers a more personalized and intelligent experience across all scenarios, including home, travel, office, entertainment, and fitness & health.

Huawei Sustainability Activity - As per company declarations

Huawei has developed its sustainability strategy, considering sustainability to be one of its priorities and incorporating it into the company’s overall development strategy. As leading ICT solutions providers, Huawei is dedicated to sustainable socioeconomic development and strives to build a better, well connected world, where everyone can share everything. The company focuses on the following:

  • Digital Inclusion: Huawei launched its TECH4ALL initiative to promote digital inclusion for all. The goal of the initiative is to bring digital technology to every person, home, and organization. 
  • Security and Trustworthiness: Huawei prioritises cyber security and privacy protection and continue to invest and remain transparent in both areas.
  • Environmental Protection: Huawei is committed to minize their environmental impact in various areas like manufacturing, operations, and over the entire lifecycles of their products and services.
  • Healthy and Harmonious Ecosystem: Huawei operates with integrity and in compliance with all applicable laws and regulations, and continue to enhance sustainability risk management.

Certificate & Labels, Standards and Frameworks

  • ISO 14001
  • ISO 14064
  • ISO 50001
  • ISO 45001
  • ISO 26000
  • ISO 28000
  • ISO 27001
  • ISO/SAE 21434
  • IEC 62443
  • Eco-friendly Certification by CEC
  • CQC Certification
  • Smart Green Medal

Huawei in the news: Press Reviews and Social Media

Huawei has some positive articles regarding their sustainability actions but also have a scandal going on. They have been accused of steeling intellectual property and their equipments being used by the Chinese government for espionage.

 

https://www.rcrwireless.com/20220831/social_initiatives/huawei-launches-the-green-development-solution-to-reduce-global-carbon-emissions-analyst-angle (positive):

This article explains the green development solution of Huawei that was presented at their Win-Win Huawei Innovation Week conference.

 

https://www.theinnovationgroup.it/tecnologia-per-sostenibilita-huawei-cin/?lang=it (Neutral):

The article points out Huawei’s Digital Power’s solutions for sustainability. 

PS: The article is in Italian and it needs to be translated.

 

https://www.ruhglobal.com/exploring-corporations-that-are-having-social-impact-and-climate-action-huawei/ (positive):

This article explains Huawei’s efforts on social impact and climate action.  

 

https://www.cfr.org/backgrounder/huawei-chinas-controversial-tech-giant (Negative):

This article mentions the scandal surrounding Huawei’s 5G networks as it can be used by the Chinese government to access user data and spy on other countries. The company is also accused to have stolen intellectual property.

 

https://www.reuters.com/technology/south-africa-takes-huaweis-local-unit-court-over-employment-rule-breaches-2022-02-11/ (Negative):

This article explains why South Africa has taken Huawei to the court. It says that the company has violated the rules on employment equity by hiring approximately 90% of foreign nationals and planning to hire more. The regulations only allow 40% foreign nationals to be hired.

https://www.theguardian.com/technology/2021/dec/15/documents-link-huawei-uyghur-surveillance-projects-report-claims (Negative):

The article mentions about a document that links Huawei to Uyghur surveillance projects.

Highlights from Huawei Sustainability Report

Achievements

  • In 2021, 110,000+ people, including teachers and students from 400+ schools and unemployed young people have been able to access the internet and improve their digital skills and scientific and technological literacy through TECH4ALL projects, which was improved from 60,000 teachers and students from 200+ schools in 2020.
  • In 2021, 32 protected areas in 25 countries have more efficiently protect biodiversity with the help of Huawei’s TECH4ALL projects. This is an improvement from 22 protected areas in 18 countries in 2020.
  • 60 million people in remote areas across 70+ countries have been connected to the internet through Huawei’s RuralStar series solutions. The progress is good as it was 50 million + people in 60+ countries in 2020.
  • 70+ cyber security certifications were awarded to Huawei, giving their customers internationally recognized security assurances. 
  • 1.9x increase in the average energy efficiency of Huawei’s main products compared to the base year (2019).
  • 300 million+ kWh of electricity from renewable energy sources used in Huawei’s own operations, up 42.3% over 2020 (220 million kWh in 2020).
  • 89% less plastic was used in the packaging of Huawei’s P50 flagship phones compared to the P40 series, with plastic accounting for less than 1% of packaging.
  • Huawei Cloud’s data center in Gui’an has integrated green and digital technologies into its design, which is expected to save 1.01 billion kWh of electricity per year, equivalent to offsetting more than 810,000 tons of carbon emissions.
  • 62,439 poplar trees have been donated by Huawei and its consumers, which are expected to absorb 13,470 tons of CO2, equivalent to pulling about 5,000 1.6L vehicles off the road for one year.

 

Weaknesses and Setbacks

  • Some of the targets could not be evaluated properly as their progresses were not clear in the report.
  • Human rights progresses are vague.

Targets vs Progress Reported

Target Results reported
Digital Inclusion

- Implement seven inclusive education projects that will benefit more than 110,000 people in 2021 Implement six

- environmental protection projects to help 32 protected areas in 25 countries protect biodiversity more efficiently in 2021
- 110,000+ people, including teachers and students from 400+ schools and unemployed young people have been able to access the internet and improve their digital skills and scientific and technological literacy through TECH4ALL projects (improved from 60,000 teachers and students from 200+ schools)

- 32 protected areas in 25 countries have more efficiently protect biodiversity with the help of Huawei's TECH4ALL projects (22 protected areas in 18 countries in 2020)

- 4.4 million+ visually impaired users and 800,000+ hearing impaired users use the accessibility features on Huawei devices each month

- 60 million people in remote areas across 70+ countries have been connected to the internet through Huawei's RuralStar series solutions (50 million + people in 60+ countries in 2020)

- 91% of wild salmon can be identified using Huawei's Ascend AI technology, reducing manual workloads and protecting biodiversity more efficiently

- 4,500+ children from five countries have received visual examinations using Huawei’s jointly launched TrackAI

- 600,000 households in Thailand’s local villages in Chiang Mai mountain now have access to high-speed broadband services and 19,652 villages are connected to the Internet thanks to the USO NET project. The USO NET project uses Huawei’s AirPON solution
Environmental Protection

- Reduce the carbon emissions (Scope 1 and Scope 2 GHG emissions) per unit of sales revenue by 16% by 2025 compared with 2019

- Increase the average energy efficiency of their main products by 2.7 times by 2025 compared with 2019

- Ensure all of Huawei's top 100 suppliers (by procurement spending) will have set carbon emissions reduction targets by 2025

- Less than 1.5% of e-waste from Huawei's ICT business is landfilled

- No e-waste from Huawei's smart devices is landfilled

- Use 40% more electricity from renewable energy sources on Huawei campuses in 2021 over 2020
- 1.9x increase in the average energy efficiency of Huawei's main products compared to the base year (2019)

- 300 million+ kWh of electricity from renewable energy sources used in Huawei's own operations, up 42.3% over 2020 (220 million kWh in 2020)

- 98% of Huawei's top 100 suppliers and energy-intensive suppliers set carbon emissions reduction targets with the support of Huawei (93% of top 100 in 2020)

- 89% less plastic was used in the packaging of Huawei's P50 flagship phones compared to the P40 series, with plastic accounting for less than 1% of packaging

- Huawei Cloud's data center in Gui'an has integrated green and digital technologies into its design, which is expected to save 1.01 billion kWh of electricity per year, equivalent to offsetting more than 810,000 tons of carbon emissions

- By the end of 2021, Huawei's digital power solutions had helped customers generate 482.9 billion kWh of green power and save about 14.2 billion kWh of electricity, equivalent to offsetting 230 million tons of CO2 emissions
Healthy and Harmonious Ecosystem

- Invest CNY15 billion in employee benefits in 2021

- Run 400 social contribution programs worldwide in 2021

- Zero supplier violations of CSR red lines

- Zero fatal subcontractor EHS incidents
- In 2021, Huawei invested CNY15 billion+ in employee benefits compared to CNY11.89 billion in 2020

- Huawei invested CNY142.7 billion in R&D in 2021, equaling 22.4% of the company's total revenue

- 1,600+ major suppliers received a sustainability performance assessment from Huawei

- 400+ social contribution programs run by Huawei worldwide

- US$150 million will be invested in the Seeds for the Future 2.0 program over the next five years, which will focus on digital talent cultivation and benefit over three million more people

- 1,661 Japanese high school students (about 50% of whom were girls) have received ICT training as part of the Seeds for the Future program

- 4,000 Bolivian teachers have participated in the ICT training program as part of Seeds for the Future program

- 15,000+ students have participated in the training and certification programs provided by the Huawei ICT Academy in ASEAN in collaboration with 262 leading universities

- Huawei runs 400+ social contribution porgrams around the world

- 62,439 poplar trees have been donated by Huawei and its consumers, which are expected to absorb 13,470 tons of CO2, equivalent to pulling about 5,000 1.6L vehicles off the road for one year

- Huawei supports and protects the rights of its employees through detailed, equitable regulations that cover all stages of an employee's relationship with the company, including recruitment, employment, and exit

- Huawei does not discriminate anyone based on their race, religion, gender, sexual orientation, nationality, age or disability

- Huawei is committed to the United Nations Guiding Principles on Business and Human Rights and standards released by the International Labor Organization
Sustainability Management System

- Zero outstanding CSD

- Committee tasks

- Release quarterly CSD newsletters to improve Huawei’s employees' sustainability awareness and capabilities
- All the targets were achieved by Huawei

UN SDGs Compliance Analysis

Progress made toward SDG targets
As reported by Huawei

SDG 2 for Gucci
  • Huawei has long pursued the green pledge of “Tech for a Better Planet” to actively address climate and environmental challenges. It uses ICT to reduce carbon emissions, promote renewable energy, contribute to a circular economy, and protect nature
  • In 2021, Huawei launched the Seeds for the Future 2.0 program. We will invest US$150 million into this program over the next five years, and we expect over three million more people to benefit
SDG 3 for Gucci
  • They are using our innovative ICT solutions to help our partners provide more easily accessible healthcare resources and offering accessibility features designed for the elderly and those with disabilities in their own products
  • We have robust mechanisms for responding to natural disasters and incidents. We constantly improve our capabilities in this regard to ensure that people have continued access to stable ICT services anytime, anywhere
  • Through programs like DigiTruck and DigiSchool, Huawei is working with its partners to help provide everyone with equal access to quality education
  • Through its TECH4ALL initiative, Huawei is committed to bridging the digital divide and working with partners to promote individual development for people in remote rural areas using its digital technologies
  • Through years of sustained investment, Huawei has established a BCM system for domains such as R&D, procurement, manufacturing, logistics, and global technical services. This system covers our end-to-end processes, from suppliers to Huawei and on to our customers
  • Huawei’s digital power company is dedicated to integrating digital and power electronics technologies, developing clean power, and enabling energy digitalization to drive an energy revolution for a better, greener future
  • Huawei is committed to building a business model that incorporates circular economy practices and a closedloop value chain so that all resources can be efficiently used, reused, and recycled, to maximize product value with limited resources.
SDG 13 Climate Action
  • Huawei is working to reduce carbon emissions in every aspect of its operations, including products, operations, and supply chains, and is taking every responsible step to do so.
SDG 16
  • Cyber security and privacy protection are a top priority at Huawei. They strive to develop secure, trustworthy, and quality products, solutions, and services to help customers build more resilient networks

Sustainability Certificates, Awards and Listings

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