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 |
