Xiaomi Group’s 2024 Environmental, Social, and Governance (ESG) Report systematically presents the company’s sustainable development practices under its “Human–Car–Home Full-Ecosystem” strategy. The report complies with the Hong Kong Stock Exchange’s ESG Reporting Guide, while also referencing international frameworks such as GRI, IFRS S1/S2, and SASB. It includes key performance data and indicator indexes, and has been independently assured by a third party. Overall, it demonstrates Xiaomi’s shift from “compliance disclosure” to “strategic integration.”

As a global leader in consumer electronics and smart manufacturing, Xiaomi completed the strategic loop of its full-ecosystem vision in 2024 by launching the Xiaomi SU7 series, and introduced the universal interconnection operating system HyperOS 2 along with the AI assistant Super XiaoAi. Through three key technological innovations—HyperCore, HyperConnect, and HyperAI—the company significantly elevated user experience. During the reporting period, Xiaomi identified key issues based on the “double materiality” principle, with high-priority topics including technology accessibility and innovation, product and service quality, sustainable supply chain, and responsible AI—reflecting the company’s balance between rapid growth and responsible development.

Environmental Dimension

Xiaomi continues to deepen its low-carbon transition strategy, setting targets to achieve carbon neutrality in its own operations and 100% renewable energy use by 2040, and to realize net-zero emissions across its value chain by 2050. Notably, the company has established a mechanism for regularly reviewing progress toward environmental targets, with further details disclosed in its 2024 TCFD Report.

By the end of 2024, Xiaomi had completed full life-cycle carbon footprint assessments for 18 representative products—including 13 smartphones, one wearable device, and four smart home appliances. The Xiaomi SU7, recognized for its excellent low-carbon performance, was named “2024 China Low-Carbon Vehicle Leader – C-Class Pure Electric Sedan Champion,” showcasing Xiaomi’s leadership in green manufacturing and product innovation.

It is worth noting that the report’s indicator “GHG emissions intensity per revenue (0.57 tCO₂e per RMB million)” only covers Scope 1 and Scope 2 emissions, excluding Scope 3 indirect emissions—making the definition somewhat ambiguous. Although Scope 3 data were later disclosed in supplementary materials, this omission in the main report could cause misunderstanding. According to the 2024 Xiaomi Group Greenhouse Gas Inventory Report, total GHG emissions (Scopes 1+2+3) reached 10,787,758 tonnes of CO₂e, up 7.8% year-on-year, with Scope 3 accounting for 98%, remaining the dominant source.

In supply chain decarbonization, Xiaomi is progressively building a green supply chain ecosystem. The company has verified GHG emission data for nearly 300 tier-one suppliers in its smartphone supply chain and supported them in setting climate goals. Among them, 111 suppliers have established carbon reduction targets, 83 use green electricity, and 24 have joined the Science Based Targets initiative (SBTi). In its smart electric vehicle supply chain, tier-one suppliers’ average green electricity usage has reached 43%, with plans to exceed 50% by 2025.

Meanwhile, Xiaomi adheres to the 3R principle—Reduce, Reuse, Recycle—to promote a circular economy. In 2024, the company replaced plastic trays with paper ones in packaging for eight smartphone models, raising the overall plastic-free ratio by about 15%, covering 100% of international and 70% of domestic markets. It also recycled 19,698 tonnes of electronic waste globally, completing 95.94% of its 2022–2026 five-year recycling goal. These actions reflect Xiaomi’s dual-track progress in green production across both product and supply chain fronts.

Social Dimension

Xiaomi positions “technology for all” and “responsible innovation” as its core social responsibility themes, developing a comprehensive responsibility system around employee development, supply chain governance, and social contribution. By the end of 2024, the company employed 43,688 full-time staff, with women accounting for 30%. It had 2,045 overseas employees, with a localization rate of approximately 89%. Average employee satisfaction rose from 8.8 to 9.1, with 73.3% of employees reporting high satisfaction. Xiaomi continues to improve its diversity and equal opportunity system, enhance talent development, and ensure workplace safety—reporting no major EHS incidents or penalties during the period.

In supply chain management, Xiaomi conducted 611 on-site supplier audits throughout the year. All identified issues were rectified, and contracts were terminated with two suppliers that failed to address environmental or safety issues on time. The company pledges not to use minerals sourced from conflict-affected or high-risk areas (CAHRAs). In 2024, it completed due diligence on conflict minerals for all tier-one and some tier-two suppliers, achieving a 100% feedback rate.

In public welfare, Xiaomi allocated over RMB 1.7 billion in planned donations for technology innovation and talent development, supporting 65 universities, 13,541 students, and 805 young scholars. Its rural revitalization project “Imaging Nanping” increased village collective income by 27% and trained 40 rural agents. The company also continues to enhance accessibility design and senior-friendly modes, promoting technological inclusion and social equity.

Governance Dimension

Through integrated operational management, compliance, risk control, and internal audit systems, Xiaomi has established a closed-loop ESG risk management framework. In 2024, the company appointed one female independent director and two female senior executives, enhancing diversity at the governance level. Anti-corruption training covered 27 subsidiaries, with over 50 sessions on anti-monopoly and fair competition compliance held. The company investigated 36 corruption cases, referring 8 to judicial authorities—demonstrating a firm “zero-tolerance” stance.

In brand governance, Xiaomi reinforced its protection of intellectual property and market order. In 2024, it successfully removed over 500,000 infringing links on domestic platforms, cooperated with customs to seize 270,000 counterfeit goods, and assisted enforcement agencies in cracking down on over 640,000 counterfeit items.

Additionally, Xiaomi has built a comprehensive trust management system encompassing data protection technologies, standardized procedures, and evaluation mechanisms. As of the end of the reporting period, Xiaomi’s trusted AI services, operating systems, and built-in applications had passed TrustArc’s global privacy management certification. The company also established mechanisms for user participation, internal audit, and continuous evaluation to ensure the security, privacy, fairness, and explainability of its algorithms and operational processes across scenarios—marking a shift from “risk prevention” to “trust building.”

Overall Assessment

Xiaomi Group’s 2024 ESG Report demonstrates strong performance in content completeness, disclosure compliance, and structural coherence, offering a well-organized and transparent information framework. The company’s implementation of ESG information control processes and third-party assurance further enhances report credibility. However, the report remains largely compliance-driven, with limited trend analysis and performance depth, and some data granularity could be improved.

Xiaomi has maintained a Gold rating from EcoVadis for two consecutive years, ranking in the top 2% globally in its industry, while its MSCI ESG rating has risen to BBB—though still trailing leading global technology peers. Moving forward, Xiaomi can strengthen its group-level ESG data governance, deepen AI ethics management and green smart manufacturing practices, and advance ESG from “compliance disclosure” toward “value creation.”

Author：Qinger