In 2020, Chinese technology powerhouse Xiaomi signed up for the United Nations Global Compact, thereby fully committing to ten principles of corporate responsibility that will enhance sustainability practices across its business horizon.
The company has continued to explore best practices that will lead to sustainability since it was formed in 2010.
Xiaomi’s profile as a sustainability-oriented company has received a boost with the 2020 Sustainability Report.
This report provides an overview of the company’s performance across several sustainability metrics and components. This includes Environmental Protection, Corporate Social Responsibility, and Supply Chain Management.
The report reflects Xiaomi’s strong commitment to data security, user privacy and overall accessibility in China and other countries.
Innovation has been the driving force behind Xiaomi’s highly successful and expansive business strategy. It continues to produce highly impressive devices that appeal to the desires of a demographically diverse customer base globally. A noteworthy innovation is Xiaomi’s instant Earthquake notification mechanism on some of its current smart devices in China, which will subsequently be available globally.
Xiaomi also reports that in 2020, the Xiaomi MIUI Earthquake Alert had 29 earthquakes (above magnitude 4.0 on the Richter Scale) correctly detected, and generated more than 9 million alerts.
Corporate social responsibility
This innovation is also reflected in corporate social responsibility initiatives both at home and abroad. The report reflects the magnitude of Xiaomi’s global CSR initiative at the height of the coronavirus pandemic for much of 2020 and how it aligns with the company’s sustainability goals.
The report shows that the overall measure of Xiaomi’s Corporate Social Expenditure for COVID-19 is about RMB 5.9 million ($854,000).
Supply Chain Management
The 2020 Sustainability Report outlines a 60% reduction in the use of plastic packaging in the Mi 10T and Mi 10T Pro. This reflects steady progress in improving Xiaomi’s environmental rating with a substantial reduction in the use of plastic.
The company projects a higher decline by the end of the year. Xiaomi also said that the Report reflects its business strategy to produce energy-efficient and environmentally friendly consumer products in several segments, ensuring compliance with the relevant regulatory framework.
Xiaomi sees tremendous opportunities in a sustainability-oriented approach and will continue to pursue its operations along these lines.