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ZTE's 2024 Sustainability Report: A Commitment to Digital Intelligence

ZTE Corporation, a leading global provider of integrated information and communication technology solutions, has recently unveiled its 2024 Sustainability Report. This marks the 17th consecutive year the organization has proactively shared its efforts and advancements in the realm of sustainability with the public. The report showcases robust strategies and outcomes in Environmental, Social, and Governance (ESG) initiatives, emphasizing how ZTE utilizes digital innovation to drive sustainable transformation worldwide.

As the world accelerates towards digitalization, ZTE reaffirms its position as a driving force behind the digital economy. The company's sustainability program focuses on integrating eco-friendly operations aimed at achieving science-based carbon neutrality targets. CEO Xu Ziyang notes in the report, "The new wave of technological revolution driven by AI, particularly the surge of large-scale models and generative AI, has invigorated global digital transformation. In this critical year, filled with challenges and opportunities, ZTE remains committed to its original aspirations and aims to navigate through these difficulties as a 'motor of the digital economy.'"

ZTE continues to strengthen its core capabilities, increasing its research and development investments, which accounted for 19.81% of its total operating revenue by the end of 2024. The company has filed approximately 93,000 patent applications globally, with over 48,000 granted. Specifically, in the semiconductor domain, ZTE filed around 5,500 patents, gaining approval for more than 2,000. In the AI sector, ZTE reported over 5,000 patent applications, reflecting its significant technological and innovative capacity.

To address climate challenges, ZTE's main commitment lies in technological innovation, continuously enhancing its green development strategy. In 2024, ZTE received official validation from the Science-Based Targets Initiative (SBTi) for its 1.5°C short-term target and long-term net-zero goals. This year also saw the release of ZTE's net-zero strategy white paper. The company persists with its "Green Digital Path" initiative, focused on four dimensions: eco-friendly business operations, a green supply chain, green digital infrastructure, and environmental empowerment.

For two consecutive years, ZTE earned a position on the CDP A List for its climate initiatives, solidifying its status as a globally recognized climate leader. From a business perspective, ZTE achieved substantial results by increasing revenue while simultaneously reducing energy consumption. In 2024, the company enhanced its energy efficiency by 20% compared to 2021, achieving a 13.4% reduction in Scope 1 and 2 emissions year-over-year. Its telecommunications products showed an 8.39% reduction in emission intensity during use and maintenance, while terminal products demonstrated a 5.02% decrease in total emissions over their lifecycle. Altogether, ZTE's carbon emissions across Scopes 1, 2, and 3 were reduced by 14.317 million tons in 2024 compared to 2023 levels.

ZTE's green supply chain efforts are notable, having integrated carbon emission reduction targets into their supplier management IT systems. This includes signing agreements, conducting on-site audits, and performance assessments. In 2024, ZTE executed CSR audits for 261 manufacturing suppliers, which constitutes 86.9% of its key suppliers by procurement volume.

Moreover, ZTE boasts over 800 ecological innovation patents as part of its green digital infrastructure. By 2024, the firm evaluated the carbon footprint of 154 products across all solution categories. Through its end-to-end green solutions, ZTE continues to assist global network operators in saving over 10 billion kWh of electricity annually.

In its commitment to empowering sustainable industries, ZTE actively integrates cloud and network infrastructure, IoT, big data, and AI technologies with traditional sectors. This collaborative approach has propelled the adoption of eco-friendly practices based on 5G technology across 18 industries, leading to the implementation of over 100 innovative application scenarios.

Focusing on societal needs, ZTE aims for inclusive growth by bridging the digital divide. The company has launched initiatives such as the "Enhance Rural Area" project with Orange, aiming to enhance communication infrastructure in rural Liberia, thereby extending digital accessibility to over 580,000 individuals in remote regions. In Another example, ZTE supported the establishment of a drone-based blood delivery system in Anyang, Henan, effectively addressing urban medical logistics challenges.

ZTE’s employee welfare measures have also made strides, achieving 100% employee training coverage and obtaining ISO 45001 certification for occupational health and safety systems across its offices in 30 countries. In 2024, the company participated in 310 community assistance activities in areas ranging from rural revitalization, education support, and disaster aid. The concerted efforts of 15,000 employee volunteers reached over a million people in need, generating significant social value.

To enhance corporate resilience, ZTE has integrated ESG criteria into every aspect of its operations. As emphasized by Executive Vice President Xie Junshi, ZTE is committed to sustainable development driven by innovation. By leveraging digital technologies, the company seeks to create a business model that coexists harmoniously with nature and society while pursuing business continuity in this new era.

In 2024, ZTE established the Strategy and Sustainability Committee to embed sustainability philosophy into its business strategies and activities seamlessly. Recognizing the ethical challenges posed by rapid technological advancements, ZTE instituted an Ethical Committee for Science and Technology, illustrating the company’s proactive stance on ethical governance.

As a participant in the UN Global Compact and a key player in several international sustainability initiatives, ZTE's exemplary sustainability practices have garnered recognition from numerous prestigious organizations worldwide. The company received the EcoVadis Gold Medal for sustainability excellence, was featured in the SP Global Sustainability Yearbook 2024, and earned the title of