ZTE's Latest Sustainability Report Highlights Progress and Innovation
ZTE Corporation (0763.HK / 000063.SZ), a renowned global leader in integrated information and communication technology, has unveiled its 2024 Sustainability Report. This marks the 17th consecutive year of the company's commitment to share its progress and dedication to sustainability with the public.
The ZTE Corporation Sustainability Report 2024 emphasizes the company's remarkable strategies and accomplishments in Environmental, Social, and Governance (ESG) practices. By leveraging digital technology, ZTE is transforming and promoting a sustainable future.
Driving Digital Transformation and Sustainability
In a time of rapid global digitalization, ZTE stands firm as a vital player in the digital economy. The company is advancing its sustainability objectives on multiple fronts: enhancing green operations through science-driven carbon targets, and fostering digital transformation across diverse industries with state-of-the-art technologies.
According to Xu Ziyang, Executive Director and CEO of ZTE, "The new era of AI-driven technological evolution has initiated a global shift toward intelligent transformation. In this pivotal time filled with both challenges and possibilities, ZTE remains committed to its vision as a primary driver of the digital economy."
The report reveals that ZTE is intensifying its core competencies, focusing heavily on research and development (R&D) with expenses accounting for over 19% of its total operating revenue. By the end of 2024, ZTE had filed approximately 93,000 patents globally, with more than 48,000 approvals. Within the chip sector alone, the company submitted around 5,500 patent applications, attaining over 2,000 grants. In artificial intelligence, ZTE has also made significant strides with more than 5,000 patent submissions.
Commitment to Environmental Sustainability
ZTE positions technological innovation at the core of its strategy, continually refining its approach to green development in response to climate challenges. Recently, the Science-Based Targets initiative officially recognized ZTE's ambitious near-term and long-term carbon targets. Coinciding with this, ZTE also released the Net-Zero Strategy White Paper in 2024.
The company is committed to its "Green Digital Path" initiative, focusing on four key dimensions: corporate sustainability, supply chain management, digital infrastructure development, and empowering industries in their sustainability pursuits. ZTE has earned a spot on the esteemed CDP A list for effective climate action for two consecutive years, further solidifying its status as a climate leader.
When it comes to corporate sustainability, ZTE has successfully increased its revenue while reducing overall energy consumption. Improvements in energy efficiency reached an impressive 20% compared to 2021, alongside a decrease in emissions by 13.4% relative to the previous year. During this period, ZTE’s telecom products saw an 8.39% drop in physical emissions intensity, while terminals achieved a reduction in absolute emissions.
For its supply chain, ZTE has integrated carbon management strategies into daily operations, enhancing supplier oversight and sustainability compliance. In the recent year, 261 production suppliers underwent onsite audits to ensure adherence to CSR guidelines.
Empowering Societies through Digital Solutions
As part of its drive towards sustainable growth, ZTE delivers tailored digital solutions that help close the digital gap while accelerating global digital transformation. Collaborative efforts with partners like Orange have enhanced communications infrastructure in rural areas, providing connectivity to over 580,000 individuals in previously underserved locations.
ZTE embodies a people-centric approach to business. With 100% employee training coverage achieved in 2024, the company is focusing on health and safety across its operations worldwide, a commitment reflected in its ISO 45001 certification.
Throughout 2024, ZTE organized over 310 public welfare initiatives covering various sectors, including education and disaster relief, driven by a committed volunteer workforce that extended support to over one million beneficiaries.
Innovating Governance and Ethical Practices
Xie Junshi, EVP and COO of ZTE, emphasized a corporate philosophy centered on innovation and sustainability. The integration of ESG principles into their operations is vital as ZTE seeks a holistic development model that aligns with environmental and social responsibilities.
In 2024, ZTE enhanced its corporate governance by establishing a dedicated Strategy and Sustainability Committee, ensuring that sustainable practices are embedded in business strategies. Moreover, ZTE proactively works to mitigate emerging ethical risks associated with technological advancements, including issues related to AI.
As a committed participant in the UN Global Compact and various sustainability initiatives, ZTE’s efforts have been recognized globally. The company secured EcoVadis Gold Medal for sustainability excellence and was acknowledged in S&P Global's Sustainability Yearbook 2024.
Looking ahead, ZTE remains steadfast in advancing its global sustainability agenda, utilizing innovative technology and fostering collaborations to contribute toward the United Nations Sustainable Development Goals. This approach is helping to shape a future that is both greener and more equitable.
Frequently Asked Questions
What is the focus of ZTE's Sustainability Report 2024?
The report centers on ZTE's commitment to sustainability, digital transformation, and innovative technologies that enhance green growth.
What initiatives does ZTE have for environmental sustainability?
ZTE advances its green operations through its "Green Digital Path" initiative, which targets energy efficiency and emissions reduction.
How does ZTE support rural connectivity?
ZTE collaborates with partners like Orange to enhance communications infrastructure, connecting remote areas and fostering digital inclusion.
What governance practices has ZTE implemented for ethics?
ZTE has formed a Science and Technology Ethics Committee to address ethical concerns in AI and technology development.
What awards has ZTE received for its sustainability efforts?
ZTE has received multiple recognitions, including the EcoVadis Gold Medal and acknowledgment in S&P Global's Sustainability Yearbook.
