On May 25th, 2022, XPeng Motors released its 2021 Environmental, Social and Governance Report (ESG Report), which comprehensively showcases XPeng Motors’ management, commitment, actions, and achievements in sustainable development.

Technology

In 2021, XPeng Motors invested RMB 4.11 billion in research and development, incubating multiple vehicle platforms, a next-generation electronic and electrical architecture, leading intelligent driving assistance technologies, and other technologies. On July 26th, 2021, the China Automotive Technology and Research Center released the results of a new round of C-NCAP test, in which the XPeng P7 achieved a five-star rating with a score of 89.4\%. In terms of active safety, the score rate of the XPeng P7 was 98.5\%, making it the pure electric vehicle model with the highest score at that time.

Environmental Protection

In 2021, XPeng Motors delivered 98,155 vehicles, all of which were low-carbon products. According to the “China Automotive Low-carbon Action Plan Research Report (2021)” released by the automotive industry organization in July 2021, the carbon emissions of the G3 and P7 models over their entire life cycle were 21\% and 26\% lower than those of the same type of fuel vehicles, respectively. Compared to traditional gasoline vehicles, the total life cycle CO2 reduction of the electric vehicles delivered by XPeng in 2021 was about 1 million tons.

In addition, XPeng Motors’ overall energy density in 2021 decreased by 50\% compared to the same period in 2020. Among them, the Zhaoqing factory saved 165,000 kilowatt hours of electricity through management and technical improvements, equivalent to a reduction of 87 tons of CO2 emissions.

XPeng Motors’ total circulation of water (wastewater reuse) reached 153,000 cubic meters; the material recycling rate of all XPeng models was over 97\%, far higher than the requirements in the “Management Requirements for Automotive Harmful Substances and Recycling Rates” published by the Ministry of Industry and Information Technology.

XPeng Motors’ Zhaoqing factory invested in photovoltaic projects. The photovoltaic power generated in November and December 2021 was 2.905 million kilowatt-hours, equivalent to a carbon dioxide reduction of 1,531 tons. XPeng Motors stated that it will continue to promote the construction and operation of photovoltaic projects, and the annual power generation is expected to replace 10\% of the industrial power demand of the Zhaoqing factory.

Care

XPeng Motors Trained 10,133 Employees with a 72.5% Training Rate and an Average Training Time of 21.5 Hours in 2021

In 2021, XPeng Motors also actively participated in low-carbon development, disabled employment, care for left-behind children, and other public welfare activities. The company donated nearly CNY 17 million for public welfare.

On October 14, 2021, XPeng Foundation was registered with an initial donation of CNY 2 million (with an additional donation of CNY 5 million to be made by the company in January 2022), becoming the first public welfare foundation initiated by a new energy vehicle company in China.

Sustainable Development Management

To ensure the effectiveness of the ESG strategy, XPeng Motors established a three-level sustainable development governance framework of “Board of Directors – ESG Leadership Group – ESG Execution Group,” clarifying the responsibilities of each level and forming a closed-loop ESG management system from decision-making, communication, execution, to reporting and assessment.

XPeng also stated that the diversity of the board of directors is also an important factor in promoting the company’s sustainable development. As of now, XPeng Motors has a total of 9 board members, including 4 non-executive directors and 3 independent non-executive directors, among which there is one female director. Their industry experience covers the fields of Internet technology and services, smart car R&D and manufacturing, consumer goods, strategic investment, and risk management.

MSCI (Morgan Stanley Capital International) has published their ESG rating results, and XPeng Motors has received a rating of AA for the second consecutive year, which is the highest rating among all global automotive companies.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.