Xiaomi Corporation (Xiaomi) has released its seventh annual Environmental, Social, and Governance (ESG) Report for 2024, highlighting its commitment to sustainability through core technologies. The report emphasizes Xiaomi’s leadership in technology accessibility, climate-change mitigation, and recycling.
Leadership of Foundational Core Technologies
Xiaomi unveiled its sustainability strategy at COP29 in November 2024, focusing on inclusive products and the “Human x Car x Home” ecosystem for a smart lifestyle.
In 2024, the company invested RMB24.1 billion (approx. RM14.48 billion) in R&D, with over 42,000 patents filed and a workforce comprised of 21,190 R&D employees, representing 48.5% of its total staff. By 2030, cumulative R&D investment is projected to exceed RMB100 billion (approx. RM60.06 billion).
Last year, Xiaomi’s Smart Factory and EV Factory commenced operations, utilizing industrial internet and AI for sustainable production. With an automation rate of 81% in production lines, Xiaomi far exceeds the industry average through its advanced technologies.
Accessibility of Technology
Xiaomi aims to create an inclusive digital experience for all users, enhancing accessibility features in 2024. The company focused on key user groups, such as those with visual and hearing impairments and physical disabilities, by introducing tools like text extraction, live subtitles, and gesture controls.
Improvements to the TalkBack feature leverage AI in Xiaomi HyperOS, enabling blind and visually impaired users to recognize and hear text in images for a smoother reading experience. The latest Xiaomi HyperOS 2 combines live subtitles with the Xiaomi Sound Recognition Function, achieving a 93% accuracy rate for transcriptions.
Additionally, Xiaomi is developing technologies for older adults through its initiative, Showing Care for the Health and Safety of the Elderly, aiming to create standards and products that enhance their safety.
Climate Mitigation and Adaptation
In addition to setting greenhouse gas (GHG) reduction targets for its operations, Xiaomi requires its smartphone supply chain partners to establish their own GHG reduction targets and renewable energy plans. By 2030, suppliers must achieve an annual average carbon reduction of at least 5% (with 2024 as the base year) and a renewable electricity usage rate of at least 25%. By 2050, 100% renewable electricity usage is mandated.
Xiaomi completed lifecycle carbon footprint measurements for 18 products by the end of 2024 and established a carbon footprint assessment process in collaboration with independent GHG organizations.
Climate response measures cover all business operations, including production and logistics. Xiaomi’s operations obtained ISO 50001 Energy Management System certification. Additionally, promoting sea and rail transport as alternatives to air freight reduced carbon emissions by 3,378 tonnes in 2024.
Recycling and Reuse
Xiaomi implements global electronic waste recycling programs with a tiered approach, including trade-ins, refurbishment, scrapping, and internal purchasing of prototypes. It aims to recycle 38,000 tonnes of waste by 2026, achieving 95.94 percent of this target by the end of 2024.
In China, over 1.3 million devices were recycled through trade-ins, while 23,353 orders were processed in nine overseas locations. The refurbishment business expanded to laptops and projectors, with over 130,000 devices refurbished, marking a 4.7 percent increase from 2023.
Xiaomi also uses recycled materials in products like the Xiaomi 14T, which features bio-based and recycled materials. Its Smart Factory has established a zero-waste-to-landfill system, achieving a 99.35 percent waste diversion rate in 2024 and receiving TÜV Rheinland certification.
Xiaomi continues to innovate while pursuing sustainable development.
The above serves only as highlights of the 2024 ESG report.