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Xiaomi’s new report reaffirms its commitment to sustainability and innovation

The Xiaomi Corporation (“Xiaomi” or the “Group”) released today its seventh Annual Environmental, Social, and Governance (ESG) Report for 2024, which once again demonstrates its commitment to sustainability, driven by its key technologies. The report details Xiaomi’s leadership in technological accessibility, climate change mitigation and adaptation, and recycling and reusing.

Leadership in Core Essential Technologies

Xiaomi unveiled its new strategy for sustainable development driven by its key technologies at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in November 2024. It placed greater emphasis on inclusive products, technological equality, and the “Human x Car x Home” ecosystem strategy to provide consumers with a sustainable and intelligent lifestyle.

In 2024, Xiaomi’s annual investment in R&D reached RMB 24.1 billion, with its patents registered globally surpassing 42,000. Its R&D team, consisting of 21,190 employees, accounted for 48.5% of the total workforce. In the first five years of the 2020-2030 decade, Xiaomi’s cumulative investment in R&D is expected to exceed RMB 100 billion.

The Xiaomi Smart Factory and Xiaomi EV Factory commenced operations last year. They employ industrial internet and AI technologies to achieve efficient, environmentally friendly, and sustainable production.

The hardware and software developed by Xiaomi, along with other technologies, enable flexible production lines, automated logistics, and device automation control in the cloud and edge of the Xiaomi Smart Factory. As a result, the factory boasts an 81% automation rate on its production lines, far surpassing the industry average.

Technology Accessibility

Xiaomi is committed to creating an equal and inclusive digital experience for all users, including those with special needs. In 2024, it continued to enhance its comprehensive accessibility support. Focusing on key user groups such as visually impaired, hearing-impaired, and physically challenged individuals, it introduced text extraction, real-time captions, and gesture-based controls.

For instance, Xiaomi enhanced its TalkBack feature, a voice assistance feature designed for the blind and visually impaired, and streamlined its operation by leveraging the Optical Character Recognition (OCR) feature of Xiaomi HyperOS’ AI subsystem. This enabled accurate recognition and real-time narration of text in images, providing users with a smooth “reading” experience.

The Xiaomi HyperOS 2, the latest version of Xiaomi HyperOS, seamlessly integrated the real-time captioning feature of the AI Assistant with Xiaomi’s Sound Recognition Function. The result: a high transcription accuracy rate of 93%.

Xiaomi is also creating elderly-friendly technologies. In 2024, it partnered with various institutions to launch the program “Showing Care for the Health and Safety of the Elderly” and “Promoting Elderly-Friendly Retrofitting”, aimed at developing standards, products, applications, and designs that enhance the safety of the elderly.

Climate Mitigation and Adaptation

In addition to setting greenhouse gas (GHG) reduction targets for Xiaomi’s operations, the company requires its smartphone supply chain partners to establish GHG reduction targets and renewable energy usage plans. By 2030, smartphone sector suppliers must achieve a minimum annual carbon reduction of 5% (with 2024 as the base year) and a minimum 25% renewable electricity usage rate. By 2050, Xiaomi’s smartphone sector suppliers must achieve 100% renewable electricity usage.

Xiaomi completed carbon footprint measurements for the life cycle of 18 representative products (13 smartphones and tablets, 1 wearable device, and 4 smart home appliances) by the end of 2024. The company also collaborated with independent GHG certification and accounting organizations to establish a carbon footprint assessment process for its smartphone products.

Climate response measures have been implemented across all business operations, covering office work, production and manufacturing, logistics and transportation, store operations, and supply chain. Last year, Xiaomi’s business operations within its operational boundaries obtained ISO 50001 certification for the Energy Management System and passed the annual monitoring audit.

Xiaomi also promoted maritime and rail transport as alternatives to air freight. In 2024, this effort reduced the Group’s carbon emissions by 3,378 tons.

Recycling and Reuse

Xiaomi carries out electronic waste recycling programs worldwide and has implemented a layered recycling approach that includes exchanges, refurbishment, device and spare parts disposal, as well as internal purchase of prototypes. The company aims to recycle a total of 38,000 tons of electronic waste over five years (from 2022 to 2026) and has achieved 95.94% of this goal by the end of 2024.

Over 1.3 million used devices were recycled in the Mainland China exchange program. Exchange programs have been established in nine countries and regions overseas; in those countries, 23,353 exchange orders were processed. The Group expanded its refurbishment business to include laptops, projectors, and monitors. Last year, it restored over 130,000 devices, a 4.7% increase from 2023.

Xiaomi also integrates recycled materials into the design and production of smartphones, smart electric vehicles, and smart home appliances. For example, the back cover of the Xiaomi 14T incorporates a biologically derived base material from lemon waste, with half of its polyurethane coming from biologically sourced raw materials. Recycled aluminum is incorporated into the cast intermediate frame of the Xiaomi 14T, and recycled aluminum, gold, and copper are used to produce its acoustic components.

Xiaomi Smart Factory has established a zero landfill waste management system that integrates recycling and efficient disposal to minimize landfill use. In 2024, the factory achieved a Waste Diversion Rate (WDR) of 99.35% and received the Zero Landfill Waste Management System Certificate from TÜV Rheinland, with the highest global rating of three stars.

Xiaomi maintains its commitment to innovation and accelerated development, seeking to build a better future through sustainable practices.

The items above serve only as highlights from the 2024 ESG report. To view the full version,  click here.