Heaptalk, Jakarta — Xiaomi Corporation has released its seventh Environmental, Social, and Governance (ESG) report for 2024. The 2024 ESG report outlines the company’s achievements in expanding technology accessibility, addressing climate change through mitigation and adaptation efforts, and implementing reuse and recycling systems.
Recently, the company introduced a new sustainability strategy centered on core technology, emphasizing inclusivity and equal access to innovation. Xiaomi also announced its Human x Car x Home ecosystem strategy to deliver consumers a smart and sustainable lifestyle.
Investing heavily in R&D
In 2024, Xiaomi’s annual research and development (R&D) investment reached RMB 24.1 billion, approximately US$3.3 billion (US$1 equals RMB 7), and the number of patent applications worldwide exceeded 42,000. Nearly half (48.5%) of Xiaomi’s 21,190 employees are part of its R&D team. The company projects cumulative R&D investments of more than RMB 100 billion, about US$13.7 billion, during the first half of the 2020s.
Its smart factory and electric vehicle (EV) factory began operating last year, using industrial internet and AI technology to achieve efficient, environmentally friendly, and sustainable production. Xiaomi developed its hardware and software for the smart factory’s production line, automated logistics, and cloud-edge-device automation control. As a result, the factory’s production line achieved an automation rate of 81%, far surpassing the industry average.
Last year, the company introduced text extraction, real-time subtitles, and gesture-motion control features. The TalkBack feature, which provides voice assistance for users who are blind or visually impaired, was enhanced with Optical Character Recognition (OCR) through the AI subsystem in Xiaomi HyperOS. HyperOS 2 has integrated real-time subtitle functions from the AI Assistant with Xiaomi’s Sound Recognition Function, delivering high transcription accuracy rates—up to 93%.
Targeting GHG reduction
In addition to setting its greenhouse gas (GHG) reduction targets for operations, Xiaomi has mandated that smartphone supply chain suppliers set GHG reduction targets and renewable energy usage plans. By 2030, suppliers are expected to achieve an average annual carbon reduction of at least 5% (using 2024 as the baseline) and ensure that at least 25% of electricity use comes from renewable sources. By 2050, all of Xiaomi’s smartphone supply chain suppliers must use 100% renewable electricity.
Furthermore, by the end of 2024, Xiaomi completed lifecycle carbon footprint assessments for 18 representative products, including 13 smartphones and tablets, one wearable device, and four smart home appliances. Last year, the company’s business operations received ISO 50001 Energy Management System certification and passed its annual surveillance audit. Xiaomi also adopted sea and rail transport as alternatives to air freight, reducing carbon emissions by 3,378 tons in 2024.
Running reuse & recycle program
Xiaomi runs a global electronic waste recycling program and has implemented a tiered recycling approach, which includes trade-ins, refurbishments, device and parts disposal, and internal prototype purchases. The 2024 ESG report states that the company aims to recycle 38,000 tons of e-waste from 2022 to 2026 and has achieved 95.94% of that goal by the end of 2024.
Over 1.3 million used devices were recycled through the trade-in program in China. The program has also been launched in nine other countries, processing 23,353 orders. Additionally, the company has expanded its refurbishment business to cover products such as laptops, projectors, and monitors. Last year, Xiaomi refurbished more than 130,000 devices—a 4.7% increase compared to 2023.
Xiaomi also integrates recycled materials into the design and production of smartphones, smart EVs, and smart home appliances. For example, the Lemon Green version of the Xiaomi 14T smartphone uses bio-based materials derived from lemon residue in its back cover, comprising half of the polyurethane. Recycled aluminum is used in the Xiaomi 14T’s die-cast mid-frame, and recycled aluminum, gold, and copper are used in its acoustic components.
The smart factory has established a zero-waste-to-landfill management system, integrating efficient recycling and disposal methods to minimize landfill use. In 2024, the factory achieved a waste diversion rate (WDR) of 99.35% and received the three-star global certification for a zero waste-to-landfill management system from TÜV Rheinland.
