ZTE releases 2022 Sustainability Report

ZTE is dedicated to shaping a sustainable future through digital innovation.

The report showcases ZTE's outstanding achievements and future plans in implementing the "Driver of Digital Economy" strategy,fulfilling corporate social responsibilities.

SHENZHEN,China,May 25,2023 -- ZTE Corporation (0763.HK / 000063.SZ),a global leading provider of information and communication technology solutions,has released its highly anticipated 2022 Annual Sustainability Report today. This comprehensive report showcases ZTE's outstanding achievements and future plans in implementing the "Driver of Digital Economy" strategy,fulfilling corporate social responsibilities,supporting society's digital transformation,advocating sustainable development,contributing to global communities,and advancing corporate governance. Demonstrating its commitment to transparency and accountability,ZTE has voluntarily published its sustainability report to the public every year since 2009,maintaining a remarkable fifteen-year consecutive record.

ZTE releases 2022 Sustainability Report

Deepening technological innovation to facilitate high-quality global digital economy development

In 2022,the global political and economic landscape remained complex,characterized by various pressures,challenges,and uncertainties. However,amidst these circumstances,digitization has emerged as a crucial element. Recognizing the significance of this digital era,ZTE has focused on further enhancing its technological innovation capabilities. By leveraging its expertise,ZTE is committed to supporting global digital transformation through the development and delivery of innovative ICT technology products and solutions.

Xu Ziyang,Executive Director and CEO of ZTE,emphasized in the report,"ZTE will stick to its role as a driver of digital economy and strive for excellence while tackling the hardest challenges. With greater determination,we will join hands with partners across the industry to break new ground,and ultimately contribute to high-quality economic growth and make the planet a better place for all."

The report highlights ZTE's commitment to independent innovation and its focus on technological advancements. By the end of 2022,ZTE had accumulated over 85,000 global patent applications,with approximately 43,000 patents authorized over the years. A report published by JLL,a global investment management company,recognizes ZTE as a leading player in global patent deployment,and the Company is actively involved in research and standardization efforts for 5G technology on a global scale.

As a front-runner in the digital revolution,ZTE remains committed to driving progress and empowering various industries,playing a pivotal role in shaping a new digital ecosystem. In 2022,ZTE forged partnerships with more than 500 companies across 15 industries,including industrial manufacturing,metallurgy and steel,mining,power,transportation,and large enterprises. Through the implementation of innovative solutions,ZTE facilitated over a hundred digital transformation initiatives,leading to the successful development of several flagship projects. These efforts have significantly accelerated the overall digital transformation and advancement of society.

Actively practicing low-carbon strategies for a sustainable future

ZTE is deeply committed to the concept of green development and actively participates in the global transition to a decarbonized economy. It strives to empower various industries with energy-saving and emission reduction measures,helping them quickly embrace the path of green development. The Company aims to move towards a sustainable future with a green and low-carbon approach.

In the report,Xie Junshi,Executive Vice President and COO of ZTE,stated, "Sticking to the low-carbon strategy,ZTE keeps moving forward on a green path to digital economy. With our established carbon neutrality target,we have set up a corporate-level team and systematically advanced ten major carbon reduction initiatives."

ZTE paves Digital Economy Boulevards through four key dimensions: green corporate operations,green supply chain,green digital infrastructure,and green industry empowerment. The Company continuously strengthens its efforts in energy-saving and emission reduction throughout production and operations,enabling operators to establish comprehensive green and low-carbon networks.

In 2022,while maintaining revenue growth,ZTE Corporation achieved a year-on-year decrease of 7.48% in greenhouse gas emissions (Scope 1&2&3). The Company also achieved a reduction of over 14% in energy consumption per unit of products sold and a 4.9% decrease in the total emissions from products sold and used. ZTE implemented initiatives such as "5G-to-Manufacture 5G" and dark factories to manufacture its products,resulting in a 9.3% reduction in carbon dioxide emissions per unit for 5G products manufactured and a decrease of over 7.13% in electricity consumption compared to the previous year.

Furthermore,ZTE actively develops digital energy solutions such as AI energy cloud,green power generation,and intelligent energy storage to expedite the journey towards carbon neutrality. Through collaboration with more than 500 industry partners,ZTE explores technological empowerment for energy-saving,emission reduction,and operational efficiency improvements,facilitating accelerated digital transformation across various sectors.

As an infrastructure provider,ZTE has always been actively striving to contribute to the improvement of the social and environmental aspects. In 2022,ZTE received an "A-" rating from the global environmental information research organization,Carbon Disclosure Project (CDP),for its outstanding performance in climate change. ZTE was also awarded the CDP China 2022 "Environmental Leadership Award" in recognition of its achievements. In addition,in 2022,the Company received the ISO 14604-1:2018 Greenhouse Gas Verification Statement from SGS,becoming one of the first companies in the Chinese telecommunications industry to adopt and implement this standard.

On May 24th,ZTE announced its participation in the "Science-Based Targets Initiative" (SBTi) and conducted a commitment signing ceremony. Aligning with the initiative's guidelines,ZTE will establish science-based emission reduction targets in the near term and strive for long-term net-zero emissions. Over the course of 5-10 years,ZTE aims to achieve significant reductions in greenhouse gas emissions in line with the 1.5°C temperature rise limitation pathway and ultimately reach net-zero emissions by 2050 at the latest.

As an advocate for green development,ZTE actively promotes energy-saving and emission reduction initiatives. Leveraging its advanced ICT technology expertise and advantages,the Company collaborates with like-minded partners to implement green and low-carbon initiatives. Through these efforts,ZTE aims to drive the entire industry chain towards achieving carbon neutrality targets and contribute to a sustainable future.

Embracing openness and transparency,empowering the growth of ecosystem partners together

ZTE has been committed to providing secure and trustworthy products and services to the industry and customers. It continuously benchmarks industry security standards and strives to earn external recognition and trust through an open and transparent approach. It became the first company worldwide to obtain the German Federal Office for Information Security's (BSI) NESAS CCS-GI security certification. ZTE has also achieved certifications and audits for various management systems,including ISO 9001,TL 9000,QC 080000,ESD,ISO 45001,ISO 14001,and ISO 22301. The certifications cover multiple major research and development centers and manufacturing bases,with product scope spanning across the Company's main product categories.

Furthermore,ZTE is dedicated to enhancing supplier responsibility management and implementing responsible procurement practices. Through supplier CSR certification,risk assessment,on-site audits,and capacity-building training,the Company encourages suppliers to establish and effectively operate CSR management systems. In 2022,in line with the Company's overall carbon neutrality strategy,ZTE initiated dual-carbon audits for suppliers,conducting audits for 109 suppliers,and collaborated with supplier partners to foster mutual growth and development.

Pioneering technology for the betterment of society,fulfilling corporate social responsibility

As a global enterprise,ZTE has long upheld the principles of sustainable development and actively fulfilled its corporate social responsibility,spreading love and responsibility across numerous countries worldwide. It has helped people around the globe achieve sustainable development,demonstrating its commitment and dedication as a multinational corporation.

Since its establishment,the ZTE Foundation has implemented over 157 philanthropic projects in education,healthcare,poverty alleviation,and more,benefiting over 100,000 individuals. By the end of 2022,a total of 8,063 registered employee volunteers had contributed 19,746.5 hours of voluntary service. For six consecutive years,the ZTE Foundation has received a perfect score in the China Foundation Transparency Index (FTI). Additionally,it has been honored with awards such as the "Top 10 Philanthropic Organizations" and "Top 10 Innovative Projects" by the Touching Shenzhen Care Action program,recognizing its outstanding contributions to the community.

Moving forward,ZTE will remain committed to promoting the concept of sustainable development worldwide,seeking harmonious coexistence with society,the environment,and stakeholders. By fostering collaboration with industry partners,ZTE will actively explore new opportunities and pave the way towards a sustainable future. Through digital innovation,the Company aims to drive inclusive and uplifting growth,ultimately creating a brighter and more sustainable world.

For the full version of ZTE 2022 Sustainability Report,please download via the link.

For more highlights about ZTE 2022 Sustainability Report,please check via the link.

ABOUT ZTE:

ZTE helps to connect the world with continuous innovation for a better future. The company provides innovative technologies and integrated solutions,its portfolio spans all series of wireless,wireline,devices and professional telecommunications services. Serving over a quarter of the global population,ZTE is dedicated to creating a digital and intelligent ecosystem,and enabling connectivity and trust everywhere. ZTE is listed on both the Hong Kong and Shenzhen Stock Exchanges.www.zte.com.cn/global

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