ESG in Harmony with Humanity: Honor to Practice What We Preach
On August 8, 2025, Honor held a press conference at its flagship store in Chengdu, officially releasing the "Honor Terminal Company Limited: Environmental, Social, and Governance Report (2024)" report. The event was attended by Hu Peng, President of Consumer Insights and Experience Department; Wang Tao, Head of Consumer Insights Department; Liu Xiaojun, Chief ESG Officer; and consumer representatives.
As a long-term strategy, Honor has always considered ESG as an integral part of our business. We focus on seven major directions: green environmental protection, privacy and security, technological innovation, youth empowerment, employee development, industry collaboration, and responsible governance. This report highlights the progress we've made in these areas.
According to our "Alpha Strategy," we aim to create long-term value and sustainable innovation. ESG is an essential component of this strategy, as it embodies the concept of sustainable development. We have set targets for ourselves: by 2040, we will achieve carbon neutrality in our operations; by 2050, we will achieve carbon neutrality throughout our value chain.
In the green product area, we have consistently integrated environmental protection principles into our product design and production process. In 2024, we reduced greenhouse gas emissions by approximately 1,497 tons through our green products.
In the manufacturing process, our AI-powered energy management platform has helped factories transform to low-carbon operations. Our Shenzhen subsidiary was recognized for its waste-free management system, and our terminal company was selected as a green supplier.
In terms of operation, we have achieved 13% clean energy usage in 2024; reduced per capita electricity consumption by 8% compared to the previous year; and saved approximately 1.1 billion sheets of A4 paper through electronic documentation, equivalent to avoiding the felling of 3,817 mature trees and reducing carbon emissions by 454.89 tons.
In partnership with international organizations like UNGC and UNIDO, we are working together to share green opportunities and create a sustainable development ecosystem.
Our technological innovations prioritize human-centered design, focusing on AI-powered assistive functions that enable equal access to digital technologies for people of all ages and abilities.
According to our report, as of 2024, over 3.8 million users have benefited from our screen reader function; nearly 1.2 million users per month use AI-subtitled videos; and more than 190,000 users benefit from speech-to-text functions. Our simple mode feature has reached over 2.76 million users, while our zoom-in gesture feature has served over 770,000 users.
In the future, we will continue to deepen our ESG strategy and integrate it into every aspect of our business. We aim to lead the industry towards a more sustainable and environmentally friendly future.