Xiaomi has released its 2025 Environmental, Social, and Governance (ESG) Report, outlining how the company is scaling both its technology ecosystem and sustainability efforts in tandem.
Now in its eighth edition, the report reinforces Xiaomi’s strategy of embedding ESG principles across its “Human × Car × Home” ecosystem—linking devices, mobility, and smart living into a more connected and environmentally conscious experience.
AI investment drives ecosystem growth
At the center of Xiaomi’s progress is its continued investment in research and development. The company allocated RMB33.1 billion to R&D in 2025, with nearly half of its workforce dedicated to innovation.
This investment supports the company’s growing AI capabilities, including its “foundation models + scenario-based models” approach. The company recently introduced its MiMo-V2 series—designed for the emerging agentic AI era—marking a step toward more adaptive and context-aware smart systems.
Strengthening trust through security and governance
Alongside innovation, Xiaomi is doubling down on governance and user trust. The report highlights its adherence to global frameworks such as the EU Ethical Guidelines for Trustworthy Artificial Intelligence, shaping its “Trustworthy AI” approach.
On the security front, they continue to expand its certifications, including ISO 27001 and ISO 27701, ensuring robust protection across its operations.
A key development is its self-built MiTEE secure operating system, which isolates sensitive data—like payment credentials and biometric information—directly on-device, reducing exposure risks in multi-device environments.
Circular design and greener products
Sustainability efforts are anchored on the 3R principle: Reduce, Reuse, and Recycle.
Xiaomi is integrating recycled materials into its products, including smartphones with 100% recycled aluminum components and chargers using post-consumer recycled plastics. Its electric vehicle lineup also reflects this shift, incorporating recycled materials into production.
The company’s trade-in and recycling programs processed over 2 million smartphones in 2025, with initiatives now active across 24 markets globally.
Climate action and energy efficiency
Xiaomi aligns its climate strategy with the Paris Agreement, targeting emissions reduction across its operations and supply chain.
Key efforts include:
- Transitioning logistics from air to sea and rail, cutting thousands of tonnes in emissions
- Expanding renewable energy use, with over 40 million kWh of green electricity procured in 2025
- Implementing energy-efficient manufacturing systems, including heat recovery and optimized production lines
The company is also scaling solar adoption, with plans for photovoltaic systems to supply up to 15% of energy needs in select facilities by 2026.
Building a sustainable tech ecosystem
Beyond individual initiatives, Xiaomi’s ESG report reflects a broader direction: integrating sustainability into every layer of its business—from product design and manufacturing to AI development and data governance.
As the company continues to expand its global footprint, the focus remains on balancing rapid technological growth with long-term environmental and social responsibility.
