Image Source: Stock photo by Vecteezy

NIO Inc. recently released its "2022 Environmental, Social, and Governance (ESG) Report," sharing the management and practical outcomes of the company's sustainable development in aspects such as production, customer service, employee growth, climate change response, supply chain, and social welfare.

The report indicates that in 2022, NIO invested a cumulative RMB 10.84 billion in R&D, a year-on-year increase of 136%, striving to provide a full-course experience beyond user expectations through technological innovation. NIO's quality inspection and monitoring of whole vehicle products involve over 5,000 control points, covering 21 categories and 132 items.

The company's EC6 and ET5 models have been granted a top safety rating by the China Automotive Technology & Research Center. NIO ES8 and ET7 have received a five-star safety rating from China NCAP, while NIO ES8, EL7 (ES7), ET7, and ET5 have received a five-star safety rating from Euro NCAP.

NIO also took stock of its actions in carbon reduction in the intelligent electric vehicle industry in the report. In 2022, the use of recyclable packaging for whole vehicle transportation reached 98%. NIO became one of the first companies in China to establish an Internal Carbon Pricing (ICP) mechanism, providing a decision-making direction for corporate carbon reduction.

It is the first company in the vehicle industry to carry out closed-loop management of aluminum materials for power battery packs. As of June 30, 2023, through the recycling of battery pack cases and remelting allocation, approximately 600 tons of die-cast aluminum alloy materials have been obtained and innovatively applied to other parts systems.

On March 25, 2023, NIO announced its commitment to join the Science-Based Targets initiative (SBTi), becoming the first new energy vehicle company in China to join the initiative.

From August 2022, NIO has added a "Sustainable Development" module in the evaluation and audit of potential partners, which includes 169 specific requirements. Over 300 whole vehicle parts partners participated in NIO's 2022 annual ESG special risk assessment to jointly enhance sustainable development performance. NIO stated that it will continue to join hands with all stakeholders to contribute to global, sustainable development.

Under the drive of dual-carbon goals, Chinese brands are beginning to pay more attention to ESG governance, making environmental protection and sustainable development an important part of corporate strategy. On the ground level, new energy vehicles have become important carriers in the automotive industry to practice the ESG concept and achieve "decarbonization" goals.

This year, Chinese car companies such as Geely Auto, BYD, Changan Auto, Li Auto, and XPeng have successively released their ESG reports for 2022.

More By This Author: