RATING
Outlook
Positive
SECTOR
Technology
Chief Sustainability Officer
T: N/A
E-mail: N/A
Stock Exchange and Ticker
HKG: 1810
Website
Contact
T: 86 010 60606666
E.mail: N/A
Listing
- World’s Best Employers 2021
- No. 4 on the list of “China’s Most Attractive Employers” voted by engineering students
- #251 World’s Best Employers (2022)
- #293 Global 2000 (2022)
Awards
- Dow Jones Sustainability Index, North America
- Global Reporting Initiative Index
- World’s Best Employers 2021 Award – Forbes
- No. 4 on the list of “China’s Most Attractive Employers” voted by engineering students – Universum
- In 2021 the “Smart Home Quality Protocol and Application” was awarded 2021 Quality Technical First Prize by the China Association for Quality
Revenue
$50.77B (2021)
Market Capitalisation
$33,59B
Employees
33,427 (2021)
Content source
Xiaomi Sustainability Report
Evaluation of Xiaomi
In its report, the company conveyed its work in the last year, focusing on product life cycle, business operation, energy, GHG, water, waste, employee rights, and data privacy and security. The company’s process has shown successful progress in line with its targets. However, the progress could have been shown in a more clear way with tables or percentages, etc. It has increased its trust by obtaining certificates in many different areas from the raw materials used to data security. In addition, they are often well-mentioned on the Internet. The part of the firm that does not comply with the SDG is the gender distribution of employees. The fact that the users of the product are not very satisfied with the products is another issue that the company suffers from. In short, it is possible to say that the firm is “almost” sustainable.
Sustainability Scorecard
Xiaomi Company Activity
Xiaomi Corp. engages in the design, manufacture and sale of smartphone, hardware and software products. Its business covers power bank, audio, camera and lifestyle. Xiaomi doing business through three business segments-Hardware, E-commerce & New Retail and Internet services. Its products include power bank pro, headphones, in-ear headphones pro, bluetooth headset basic with dock, bluetooth speaker, sphere camera, home security camera, action camera, robot builder, electric scooter, bedside lamp, and body composition scale. The company was founded by Jun Lei, Bin Lin, Wan Qiang Li, Feng Hong, De Liu, Chuan Wang, and Jiang Ji Huang on March 3, 2010 and is headquartered in Beijing, China
Xiaomi Sustainability Activity - As per company declarations
Xiaomi’s Board of Directors (the “Board”) believes that the establishment and improvement of ESG management framework is beneficial to the sustainability of the Company. Xiaomi has formulated effective strategies and policies to balance its environmental and social impact and business sustainability with its business strategy.
Certificate & Labels, Standards and Frameworks
- Quality Management System (ISO9001)
- Environmental Management System (ISO14001)
- Information Security Management System (ISO/IEC27001)
- ISO/IEC27018
- ISO/IEC27701
- Management systems of occupational health and safety (ISO45001)
- Anti-bribery management systems (ISO37001)
- ISO22000:2018 Food Safety Management System
- TRUSTe Enterprise Privacy Certification
- International Responsible Recycling (R2) Certification
- Leadership in Energy and Environmental Design (LEED) Platinum®
- TrustArc GDPR Privacy Management Certification
- ioXt SmartCert Security Certification
- Certification of User-controlled Scenario Function Performance
- BSI Kitemark™ Certification for Consumer IoT Devices
- Certification for Secure Digital Applications
- “Elderly Care” certification
- Green labels
- Recyling labels
- Organization for Economic Cooperation and Development (OECD) Due Diligence Guidelines for Responsible Supply Chains of Minerals in Conflict Affected and High-Risk Areas
- Global Reporting Initiative (GRI)
- Sustainability Reporting Standards
- Sustainability Accounting Standard of the Sustainability Accounting Standards Board (SASB)
- Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD)
- RBA Responsible Minerals Initiative (RMI)
Xiaomi in the news: Press Reviews and Social Media
Xiaomi explains the company’s approach and practices on sustainable development | XiaomiToday.it
The company’s efforts to ensure that its products adhere to all environmental laws and security standards of the nations in which they are sold are highlighted in Xiaomi’s sustainability report. The report also emphasizes Xiaomi’s capacity to elevate energy efficiency to a crucial component of more than 40 different consumer product categories. In the struggle against global issues like climate change, Xiaomi has taken a proactive stance. Xiaomi MIUI Earthquake Alert has issued more than 9.4 million alarms and identified 29 earthquakes with a magnitude greater than 4.0 in 2020. It has given medical supplies to 14 nations, including Indonesia, Myanmar, Japan, Korea, Spain, and Italy.
Xiaomi: the green case and the collaboration with Treedom
Carlo Cannarella, the community manager at Xiaomi, and Davide Lunardelli, the company’s head of marketing, discuss their joint initiative to plant 1000 trees in Madagascar and Ecuador. The best message I heard came from one of the 90 Xiaomi Fan Clubs the company has scattered throughout Italy: “This initiative puts a seal on who we are now.”
Xiaomi bets on a vision of sustainability in its growth results
The 2020 version of Xiaomi’s Sustainability Report is now available (the Report). The Report describes the company’s sustainable development strategy and methods in detail. It demonstrates Xiaomi’s efforts to design and produce its products with environmental protection in mind. For instance, 10% less plastic is used in the Mi 60T and Mi 10T Pro series. In the creation of an early warning system for earthquakes, Xiaomi has joined forces.
The Xiaomi MIUI earthquake alert system identified 29 earthquakes with magnitudes greater than 4,0 in 2020. The company gave medical supplies to 14 nations, including Indonesia, Myanmar, Japan, Korea, Thailand, and Spain.
Forbes China recognizes Xiaomi for ESG practices – Pkrevenue.com
Xiaomi Corporation was added to Forbes China’s “China ESG 50” list for 2022. The list honors businesses that uphold best practices in governance, social, and environmental fields (ESG). Xiaomi joined the UN Global Compact in 2018 and has since published an annual ESG Report. Xiaomi’s products use fewer resources and have less of an impact on the environment. The Chamber of Hong Kong Listed Companies honored its ESG accomplishments. In 2021, Xiaomi recycled more than 650 000 smartphones, of which 80 to 90 percent were resold.
People and other smartphone makers like Samsung and Xiaomi quickly made fun of Apple when it removed the charging brick from the box of its smartphone. A few months later, the very smartphone manufacturers who had previously called Apple all kinds of derogatory names began to imitate Apple. When Apple, Samsung, Xiaomi, and other companies claim that they no longer include chargers with their phones because of environmental concerns, this is referred to as “greenwashing.” Customers wind up purchasing the most recent charger separately and paying shipping because they expect their device to recharge at the fastest possible rate. Some smartphone manufacturers no longer include the earphones they once did.
Highlights from Xiaomi Sustainability Report
Achievements
- In 2021, they saved approximately 2,000 metric tons of water across the office parks
- Reduction of carbon emissions by 14.92%
- Cost reduction of RMB1.165 million
- Employee satisfaction enhanced by 14%
Weaknesses and Setbacks
- Gender employment disparity
- Consumer feedback has not been good
Targets vs Progress Reported
| Target | Results reported |
|---|---|
| Energy | |
| The energy consumption per capita of self-operated office parks will be reduced by 5% in 2026, against the 2020 level | Temperature Control System - The Beijing Xiaomi Science and Technology Park was equipped with natural cooling tower to shorten cooling time, saving approximately 400 thousand kWh of electricity power per year Lighting System - The Beijing Xiaomi Science and Technology Park and Wuhan office park adopted an outdoor floodlight system, saving approximately 65 thousand kWh of electricity last year - The “Black Light Factory” (Yizhuang Smart Factory) in the Beijing Yizhuang Park is capable of lights-out production, saving approximately 310 thousand kWh of electricity per year Office Building - The large screen in the lobby of our Beijing Xiaomi Science and Technology Park was scheduled off regularly, saving approximately 140 thousand kWh of electricity per year Essential Facilities - The bathrooms in our Beijing Xiaomi Science and Technology Park were equipped with infrared sensors for lighting and fan control, saving approximately 380 thousand kWh of electricity per year Renewable Energy - The solar boiler systems in our Beijing Yizhuang Park and Wuhan office park generated about 6,100 metric tons and 600 metric tons of hot water, accounting for 60% and 30% of the annual hot water consumption on site, respectively |
| GHG | |
| The GHG emissions per capita of our self-operated office parks will be reduced by 4.5% in 2026, against the 2020 level | - 16,339 metric tons of reduction in total GHG emissions (Scope 1 and Scope 2) |
| Water | |
| Water consumption per capita of self-operated office parks will be no higher than that of 2020 level | - In 2021, they saved approximately 2,000 metric tons of water across their office parks |
| Waste | |
| Non-hazardous wastes from self-operated office parks are separately managed by categorization All hazardous wastes are handled by qualified third-party organizations |
- They processed about 3,386 metric tons of kitchen waste in 2021 and produced about 328 metric tons of organic fertilizer and animal feed from it Hazardous waste in the Yizhuang Smart Factory, such as scrap materials and laboratory wastes, are temporarily stored in a dedicated area, and disposed by certified third-party organizations |
UN SDGs Compliance Analysis
Progress made toward SDG targets
As reported by Xiaomi
- Annual physical examinations;
– Commercial health insurance, including discounts for family members;
-Free online and offline psychological counseling services and monthly activities launched through Employee Assistance ;Programs (EAP);
– Recreational facilities including gyms, book corners and cafes; and;
– Infirmaries and baby care rooms for the employees
- They carry out safety inspection on their own office space and rectify possible hazards at regular intervals. For laboratories involving potential hazard sources, they provide necessary personal protective equipment (PPE) for relevant R&D personnel
- Though Beijing Xiaomi Foundation, we donated RMB250 thousand to the Red Cross Society of Luotian County in Hubei Province, to help children from impoverished families in mountainous regions to realize their dreams of attending schools. So far, the program has sponsored 245 children
- Xiaomi offers comprehensive trainings to employees globally, covering general education, corporate culture, cutting-edge science and technology, management skills, logical thinking, etc., to improve their overall capabilities, technical competency and leadership
- In addition to existing development programs for junior, mid-level and senior management (including “Spark Camp,” “Torch Camp” and “Ignite Camp”), theywe extend the coverage of the programs to more employees to strengthen overall management capability. Furthermore, they launched the “Flame Camp” for senior management, in partnership with China’s top business schools to hone their management skills in corporate strategy, marketing, business operation, etc
- Since 2020, Beijing Xiaomi Foundation has established Xiaomi Scholarships at numerous universities. By the end of 2021, Xiaomi Scholarship program has covered 30 universities in China and aided more than 1,500 students
- The System on Chip (SoC) installed on the flagship smartphone models was upgraded from 7 nanometers to 5 nanometers, increasing the component’s energy efficiency by approximately 30%. The display was made of Low Temperature Polycrystalline Oxide (LTPO), reducing energy consumption by approximately 25%
- Their self-operated data center uses water-cooling system and natural-cooling system to lower energy consumption. In 2021, the water-cooling system was used without power consumption for 90 days, reducing energy consumption by approximately 270 thousand kWh of electricity in total
- Installation of a rainwater harvesting system, the control of water pressure, and the optimization of water consumption in sanitary wares
- Diversified staff activities such as group/ team leader trainings, employee seminars and employee care programs
- In 2021, Xiaomi maintained ISO9001 certification for the business units including smartphones, smart TVs, laptops, smart hardware, and our e-commerce platform Xiaomi Youpin
- In 2021, in cooperation with the Institute of Care-Life, they launched China’s first smartphone earthquake monitoring system, making every smartphone user a “mobile earthquake detector”. When a Xiaomi smartphone user activates the monitoring function, the system promptly processes earthquake data through AI algorithms using low-power seismic wave sensors. The system sends alerts to users in affected areas immediately, saving every minute for their personal safety. As of December 31, 2021, over 87 thousand smartphone users have voluntarily activated this function
- In 2021, Xiaomi Foundation Limited established the “Xiaomi Special Fund for Innovative Future” at Tsinghua University, to support cutting-edge research and course development in fields such as AI, robotics, medical health
- In the inaugural “Xiaomi Accessibility Week”, wtheye invited the AI voice label team to work at the Beijing Xiaomi Science and Technology Park. The event included accessibility training sessions to promote communications between employees and people with disabilities, helping our employees to understand the needs of the latter, and increasing employees’ awareness to incorporate accessibility concepts into products and services
- Xiaomi adopted bio-based polyamide resin, a material derived from plants, in their flagship smartphone models. In the metallic device antenna (MDA) devices, recycled metal accounted for roughly 30% to 45% of the total weight of the metal parts. It was used in the Xiaomi 11 and Xiaomi 11i series, accounting for approximately 40% and 21% of the total weight of the plastic parts, respectively
- Xiaomi 12 series featured a rear cover made of BASF Haptex®, a low-carbon non-solvent polyurethane (PU) material. This material, by life-cycle analysis (cradle-to-gate), consumes 20% less energy, emits 20% less GHG, and uses 15% less water, as compared to synthetic leather
- The stand base of the smart TV products utilized recycled aluminum alloy that accounted for about 30% of the overall weight of the base material
- By streamlining the production process for the base of ES/RX TV series, they reduced metal usage by approximately 25% and lowered production costs by approximately 20% on average
- Removed the middle frame from the packaging of the Redmi Note series smartphone, reducing single packaging weight by 5% to 8%
- Cut down the corrugated fiber paper used in the packaging for smart TV products under 43 inches to three layers from five layers, reducing annual packaging paper consumption by approximately 130 metric tons
- Applied plastic-free packaging to 90% of new small-sized and lightweight IoT products across all categories
- Adopted paper card and paper holder, instead of EPS (expanded polystyrene), for water purifier, air purifier, and electric kettle products, reducing plastic by 450g, 180g and 60g per single unit for the three products, respectively
- Qualified post-consumed cartons were reused with a recycling label. In 2021, they reused about 6 million post-consumed packing cartons
- In 2021, they recycled over 650 thousand smartphones worldwide, roughly 197 metric tons, 80% to 90% of which were resold
- Some of the smart TV products adopted joint structure in the back cover to reduce the material used and improve installation efficiency. This reduced approximately 132 metric tons of plastic, saving approximately 30 thousand cubic meters of natural gas and 30 thousand kWh of electricity, or 84 metric tons of CO2e
- In 2021, they required service providers to increase their full load rate from 60% to 70%, and added eight direct routes based on traffic analysis. This reduced annual transportation fuel consumption by approximately 20% and driving distance of approximately 290 thousand kilometers, or 220 metric tons of CO2e
- They used lightweight pallets for shipping smartphones abroad. Each new pallet was 7kg lighter, annually saving up to 280 metric tons of wood, and aviation fuel by 460 metric tons, or 1,423 metric tons of CO2e
- In 2021, wtheye incorporated supplier ESG management module digitally into our Supplier Relationship Management (SRM) system. The new module was applied to collect and analyze ESG data related to our products, including green energy use, GHG emissions and reduction targets, pollutants discharge (wastewater, exhaust gas and solid waste) and sourcing of conflict minerals
- Xiaomi upholds the principles of “fair, just, and open” and develops internal policies on recruitment, employment, and benefits, such as the Employee Handbook and Special Provisions on the Protection for Female Employees, to manage our employees globally
- Ban the use of child labor in any operation
- In 2021, Xiaomi held the 2nd Security and Privacy Awareness Month, which included activities on Security & Privacy Class, Open Classes on Security & Privacy Technologies and MIUI Privacy Function Sharing. The Information Security and Privacy Committee provided dozens of hours of online lessons and benefited more than 20 thousand employees in awareness on security and privacy protection
- They uphold the principle of “Zero Tolerance” against bribery and corruption, and require all employees to strictly adhere to the guidelines of compliance, transparency as well as integrity when interacting with relevant parties
Sustainability Certificates, Awards and Listings
