Xiaomi unveils a new climate strategy supporting the commitment to achieve a global net-zero greenhouse gas emission

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Greenhouse Gas Emission Reduction Goals

Minimizing Environmental Impact through Research and Development and Circular Economy

Research and development of clean technology and product upgrades

Circular Economy and Electronic Waste Management

Greenhouse Gas Emission Reduction Goals

Xiaomi is currently employing a phased approach to develop and implement greenhouse gas emission reduction plans.Xiaomi sets its first greenhouse gas emission reduction goal in 2021, aiming to reduce the average per capita greenhouse gas emissions from self-operated factories by 4.5% by 2026 compared to the 2020 baseline. As of December 31, 2022, the company has achieved a 21.12% reduction in average per capita greenhouse gas emissions compared to 2020.To support the global goal of achieving net-zero emissions by 2050, the company commits to reducing greenhouse gas emissions in Scope 1 and Scope 2.By 2030, aim to reduce at least 70% of greenhouse gas emissionsfrom the primary operational segments compared to the baseline year.By 2040, aim to reduce at least 98% of greenhouse gas emissions from the primary operational segments compared to the baseline year, utilizing existing prerequisites to achieve net-zero emissions.

Prioritize the use of low-carbon technologies, long-term green power purchase agreements, and on-site renewable energy production to cut down greenhouse gas emissions throughout the target period.Encourage key suppliers to establish goals for renewable energy usage and greenhouse gas reduction equivalent to or more ambitious than the targets set by Xiaomi for continuous reduction.

Minimizing Environmental Impact through Research and Development and Circular Economy

Various environmental impacts have been minimized through diverse approaches, with four exemplary areas chosen to illustrate in detail: Research and development of clean technology and product upgrades, circular economy, and electronic waste management.

Research and development of clean technology and product upgrades

In 2022, Xiaomi allocated over 50% of its total expenditure to research and development of clean technology. In the same year, the application of patents and clean technology products contributed to 59.7% of the company's revenue. Xiaomi has made significant advancements in this field, and here are some examples:5G and Energy-Efficient Signal Transmission Technology: Through energy-efficient 5G technologies such as adaptive bandwidth and energy optimization, Xiaomi has increased energy efficiency for its smartphones. Advanced WLAN chips, combined with dynamic transmission technology and WLAN energy monitoring, have reduced the power consumption of Xiaomi smartphones by approximately 30% compared to the previous generation.Energy-Efficient Display Technology:By switching to Dark Mode and changing the smartphone wallpaper to black, screen energy consumption can be reduced by up to 70% when using specific applications.Charging Technology:In 2022, over 100 million smart devices and terminals adopted Xiaomi's fast charging technology, saving nearly 57 million kWh of energy consumption and reducing 24852 tons of CO2 emissions compared to conventional fast charging technology.Environmentally Friendly Packaging:Xiaomi has revamped the packaging for its ecosystem products from lockable boxes to flat carton boxes and eliminated plastic handles. With this upgrade, the company has reduced an average of 0.3m² of paper packaging and eliminated around 80g of plastic per product.

Circular Economy and Electronic Waste Management

Recycling and Waste Management:In 2022, Xiaomi recycled approximately 4500 tons of electronic waste, including smartphones. From 2022 to 2026, the company pledges to recycle 38000 tons of electronic waste and utilize 5000 tons of recycled materials in its products.Xiaomi continues to expand the Renew and Recycle program by increasing the types of products that can be recycled and the scope of recycling services. The company collects used products in stores, through postal services, and at homes to encourage consumers to recycle. Last year, the company launched the Renew and Recycle program on its official website in some European markets. Xiaomi also collaborates with eligible third parties to handle waste generated during the repair of products and electronic components.Refurbishment and Reuse:The company is committed to promoting the development of the circular economy by refurbishing used products. In 2022, Xiaomi's reformation and upgrade factory refurbished approximately 94000 smartphones, 5600 electric scooters, and 6200 smart TVs, all sold as certified refurbished products.Enhancing Material Durability:Xiaomi meticulously considers durability factors when selecting materials for its products. The company has developed wear-resistant ceramic and synthetic silicone leather materials used in various smartphone models. Xiaomi has established testing standards for superior dust, water, and drop resistance compared to international standards. In 2022, Xiaomi introduced a high-capacity battery with full charging and discharging capabilities, extending lifespan by over 25% compared to previous versions.

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