Xiaomi Corporation ("Xiaomi" or the "Group") today released its seventh Environmental, Social, and Governance (ESG) Annual Report for 2024, once again demonstrating its commitment to sustainability, driven by its core technologies. The report details Xiaomi's leadership in technological accessibility, climate change mitigation and adaptation, and recycling and reuse.
Leadership in Fundamental Essential Technologies
Xiaomi presented its new sustainable development strategy 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. She placed greater emphasis on inclusive products and technological equality, as well as on 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, and its globally registered patents exceeded 42,000. Your R&D team, with 21,190 employees, accounted for 48.5% of the total workforce. In the first five years of the decade from 2020 to 2030, it is expected that your cumulative investment in R&D will exceed RMB 100 billion.
The Xiaomi Smart Factory and the Xiaomi EV Factory began operations last year. They use industrial internet technologies and AI to achieve efficient, environmentally friendly, and sustainable production.
The hardware and software developed by Xiaomi, along with other technologies, enabled flexible production lines, automated logistics, and control of device automation in the cloud and at the edge of the Xiaomi Smart Factory. As a result, the factory has an automation rate of 81% on its production lines, far exceeding the industry average.
Technology Accessibility
Xiaomi is committed to creating an equal and inclusive digital experience for all users, including people with special needs. In 2024, it continued to enhance its comprehensive accessibility support. Focusing on key user groups, such as people with visual, auditory, and physical disabilities, it introduced text extraction, real-time captions, and gesture-based controls.
For example, Xiaomi improved its TalkBack feature, a voice assistance feature designed for blind and visually impaired people, and simplified its operation by leveraging the optical character recognition (OCR) feature of Xiaomi HyperOS's AI subsystem. This enabled accurate recognition and real-time narration of text in images, providing users with a smooth "reading" experience.
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 developing technologies friendly to the elderly. In 2024, it partnered with various institutions to launch the programs "Showing Care for the Health and Safety of the Elderly" and "Promoting Elderly-Friendly Retrofitting," which aim to develop standards, products, applications, and designs that improve 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 use plans. By 2030, smartphone industry suppliers must achieve an average annual carbon reduction of at least 5% (with 2024 as the baseline year) and a minimum renewable electricity usage rate of 25%. By 2050, Xiaomi's smartphone sector suppliers are expected to achieve 100% renewable electricity usage.
Xiaomi completed the carbon footprint measurements of the life cycle of 18 representative products (13 smartphones and tablets, 1 wearable device, and 4 smart 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, including office work, production and manufacturing, logistics and transportation, store operations, and the supply chain. Last year, Xiaomi's business operations within its operational boundaries obtained ISO 50001 certification for the Energy Management System and were approved in 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 conducts electronic waste recycling programs worldwide and has implemented a layered recycling approach that includes exchanges, reconditioning, device disposal and spare parts, as well as internal purchasing of prototypes. The company plans 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.
More than 1.3 million used devices have been recycled through the Mainland China exchange program. Exchange programs were established in nine countries and regions abroad; in these countries, 23,353 exchange requests were processed. The Group expanded its reconditioning business to include laptops, projectors, and monitors. Last year, it restored more than 130,000 devices, a 4.7% increase compared to 2023.
Xiaomi also incorporates recycled materials into the design and production of smartphones, smart electric vehicles, and smart appliances. For example, the back cover of the Xiaomi 14T incorporates a bio-based material derived from lemon waste, with half of its polyurethane coming from bio-based raw materials. Recycled aluminum is incorporated into the cast intermediate structure of the Xiaomi 14T, and recycled aluminum, gold, and copper are used to produce its acoustic components.
The Xiaomi Smart Factory has established a zero waste management system for landfills, which integrates recycling and efficient disposal to minimize the use of landfills. In 2024, the factory achieved a waste deviation rate (WDR) of 99.35% and received the TÜV Rheinland Zero Waste Management System Certification for Landfills, with the highest overall rating of three stars.
Xiaomi maintains its commitment to innovation and rapid development, aiming to build a better future through sustainable practices.
The items above are only highlights of the 2024 ESG report. To see the full version,click here.
