Xiaomi And ESG: Sustainable Development Practices and Challenges of Tech Enterprises
DOI:
https://doi.org/10.54097/pq2mn488Keywords:
Xiaomi, ESG, high energy consumption, data privacy, supply chain decarbonization, cross-border compliance integration.Abstract
This study analyzes Xiaomi's ESG practices and challenges, reflecting broader issues for Chinese tech firms. Facing ESG investment trends and industry pressures like high energy consumption and data privacy, Xiaomi pursues sustainability. Environmentally, it targets 2040 carbon neutrality. Smart factories saved 23% energy, and bio-based materials cut product carbon footprints by 18%. However, supply chain emissions dominate (99.2% of total), and green products like premium-priced (40%) solar panels have low market penetration (5%), highlighting economic-environmental tensions. Socially, its "Elderly Mode" (120 million devices) aids digital inclusion, but Indian labor disputes and a €6.5 million EU data fine reveal cross-border governance gaps. In governance, only 30% of ecosystem partners have full-time ESG roles. The findings indicate that Chinese tech companies must deeply embed ESG into core strategy, shifting from compliance to strategic drivers via supply chain decarbonization, cross-border compliance integration, and quantitative tool development.
Downloads
References
[1] J.B. Barney, Firm resources and sustained competitive advantage. Adv. Strateg. Manag. 17 (1), 3–10 (1991). https://doi.org/10.1016/S0742-3322(00)17018-4 DOI: https://doi.org/10.1177/014920639101700108
[2] R.E. Freeman, Strategic management: A stakeholder approach. Cambridge Univ. Press, Cambridge (2010) DOI: https://doi.org/10.1017/CBO9781139192675
[3] G. Friede, T. Busch, A. Bassen, ESG and financial performance: Aggregated evidence from more than 2000 empirical studies. J. Sustain. Finance Invest. 5, 1–15 (2015). https://doi.org/10.1080/20430795.2015.1118917 DOI: https://doi.org/10.1080/20430795.2015.1118917
[4] Xiaomi, Group Standard for Supply Chain Carbon Management. (2024) https://www.mi.com/csr#/index
[5] UNGC, Global Framework for Cost-Effective ESG Certification. (2024) https://unglobalcompact.org/what-is-gc/strategy
[6] Xiaomi Corporation, 2023 Environmental, Social and Governance Report. (2023) https://www.mi.com/global/discover/article?id=3287&utm_channel=social&utm_medium=clipboard
[7] X. Wang, T. Zhang, J. Nathwani, et al., Environmental regulation, technology innovation, and low carbon development: Revisiting the EKC hypothesis, Porter hypothesis, and Jevons' paradox in China's iron & steel industry. Technol. Forecast. Soc. Change 121471 (2022). https://doi.org/10.1016/j.techfore.2022.121471 DOI: https://doi.org/10.1016/j.techfore.2022.121471
[8] European Data Protection Board, Guidelines 02/2025 on Processing of Personal Data through Blockchain Technologies. (2025) https://www.edpb.europa.eu/system/files/2025-04/edpb_guidelines_202502_blockchain_en.pdf
[9] H.L. Lee, C.A. Chen, M.Y. Li, Investment efficiency and ESG reporting transparency in Taiwanese companies: An investigative case study. Int. J. Organ. Innov. 17 (1) (2024)
[10] Y. Zhou, Research on the impact of ESG rating systems on enterprise development. Financial Theory Pract. (07), 101–107 (2024)
[11] Z. Zhang, et al., ESG implementation in emerging market tech firms. Sustainability (2023)
[12] Y. Zhou, et al., Case Study on Xiaomi's International Development. China Book Database (2024). https://www.pishu.com.cn/skwx_ps/initDatabaseDetail?contentId=15900592&siteId=14&contentType=literature
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Highlights in Business, Economics and Management
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
