Partner Content ZTE recently released its Sustainability Report 2025, highlighting the company's latest achievements in deepening Environmental, Social, and Governance (ESG) practices. This marks the 18th consecutive year that ZTE has voluntarily disclosed its annual sustainability performance to the public. The report demonstrates that in the past year, ZTE fully embraced artificial intelligence, achieving milestone progress in advancing scientific carbon reduction, accelerating global digital inclusion and industry transformation through intelligent technologies, and strengthening governance resilience. These efforts profoundly embody ZTE's responsibility and mission as a "Driver of Digital Economy". Xu Ziyang, Executive Director and CEO of ZTE, states in the report: "In the face of profound changes in the global digital economy, ZTE has unveiled its new vision, 'To lead in connectivity and intelligent computing', with greater strategic foresight and a stronger sense of responsibility. Driven by our 'Connectivity + Computing' strategy, we remain committed to our original aspiration of empowering high-quality and sustainable economic development through technology, and work with our partners to build an intelligent future that is more efficient, green, and inclusive." Strengthening Innovation and Reshaping Digital Momentum with AI ZTE continues to advance its "Connectivity + Computing" strategy, fully embracing AI under the guiding principle of "All in AI, AI for All". In 2025, the company sustained disciplined R&D investment, recording annual expenses of RMB 22.76 billion, approximately 17% of total revenue. Efforts focused on key areas such as connectivity (6G, optical communications, and IP networks), computing power, energy technology, smart terminals (such as AI-powered devices), operating systems, databases, and chips, underpinned by a core commitment to frontier technology exploration and collaborative innovation. According to the report, as of December 31, 2025, ZTE has filed approximately 95,000 global patent applications, with over 50,000 patents granted globally. In the chip sector, the company holds around 5,900 patent applications and over 3,700 granted patents. In the field of AI, it has nearly 5,500 patent applications, with nearly half of them granted. Throughout the year, the company declared and secured over 100 technology projects. Within R&D, AI tools have been widely applied, with a usage penetration rate of 79.78% among developers. The AI code generation rate reached 31.45%, and the improvement in R&D efficiency has begun to manifest. ZTE's innovation was further recognized with 11 gold awards, 3 silver awards, and 39 excellence awards from the China Patent Awards, and 31 honors from the Guangdong Patent Awards. Leading Science-Based Carbon Reduction, Paving the "Digital Green Path" ZTE has deeply integrated climate action with its development strategy, advancing the "Digital Green Path" across four key dimensions: green corporate operations, green supply chain, green digital infrastructure, and green industry empowerment, ensuring the achievement of science-based targets. For Scope 1 & 2 (operational emissions), in 2025, the company exceeded the Phase I target outlined in its 2024 Zero-Carbon Strategy White Paper. Through management measures for energy saving and technologies such as AI-based dynamic scaling and remote control, the company achieved a 46% reduction in carbon emissions compared with the base year of 2021. For Scope 3 (upstream and downstream emissions), ZTE achieved an 8.55% reduction in physical emissions intensity during the use and maintenance phase of telecom products, with a year-on-year reduction of 3.05% in absolute emissions across the full lifecycle of terminal products. For three consecutive years, ZTE has been recognized on the CDP Climate A list for its excellence in environmental governance. In terms of green operations, ZTE has established a systematic decarbonization pathway spanning energy mix optimization, refined technical energy-saving solutions, management-driven electricity saving, dual-carbon digitalization, as well as capability building and awareness enhancement. In 2025, the company completed new photovoltaic projects in Xi'an and Changsha, increasing the proportion of photovoltaic power generation with an annual generation of 39.22 million kWh. Furthermore, ZTE actively participated in green electricity trading and obtained 33,700 green electricity certificates (a total of 33.69 million kWh of electricity) throughout the year.Regarding the green supply chain, ZTE has comprehensively integrated low-carbon requirements into its SPIRE 2.0 supply chain strategy, collaborating with partners to build a technology-driven, end-to-end eco-friendly value chain that drives sustainable development across the entire industry ecosystem.In 2025, with its Xi'an Base and Changsha Base newly awarded the "National Green Factory" certification, the company now operates three national-level green factories and one provincial-level green factory. Over the past year, ZTE accelerated supply chain decarbonization by conducting dual-carbon training for 97 suppliers and performing dual-carbon audits on 158 suppliers. Furthermore, it provided guidance for 152 key suppliers (covering 50.82% of procurement spend) on completing carbon accounting and drove 83 key suppliers to participate in CDP assessments and make public disclosures.For green digital infrastructure, ZTE adopts self-developed low-power chips, advanced cooling technologies such as liquid cooling, PV applications at sites, and full lifecycle carbon footprint management to provide green digital infrastructure for the industry. By the end of 2025, the company had completed carbon footprint assessments for 240 products, achieving full coverage of all product categories.For green industry empowerment, ZTE leverages ICT technologies (such as 5G, cloud, AI, and the Digital Nebula platform) to provide digital transformation solutions for various industries, helping them achieve energy saving, carbon reduction, and quality and efficiency enhancement. A prime example is ZTE's collaboration with Benxi Tool Co., Ltd. on its smart factory initiative. Leveraging the 5G-enabled industrial Internet solution, the project successfully reduced the cumulative number of frontline operators across process steps by 20% while boosting the annual output by 1.5 times. Furthermore, the project shortened the lead time for raw material procurement by 40%, slashed the downtime due to material shortages by 50%, and cut the delivery time by 20%. These improvements significantly enhanced the overall competitiveness of this metal tool manufacturer. Advancing Tech for Good, Building an Inclusive and Equitable Society ZTE remains committed to a people-centric philosophy, striving to ensure equal communication rights and digital opportunities for communities worldwide. Providing network services to one-third of the global population, ZTE extends sustainable infrastructure and technological empowerment to every corner of the globe. From the remote heights of Baqen, Xizang, where ZTE deployed an FTTR-B all-optical network solution at the People's Hospital of the county (situated at an altitude of over 4,500 meters) to bridge the telemedicine divide, to Africa, where the company's "Signal Reach" program built 152 rural network sites in Ethiopia to bring reliable connectivity to over one million people, ZTE continues to bridge the digital divide and foster an inclusive, equitable, and intelligent digital world. ZTE regards talent as its most valuable asset, committed to building a learning organization and continuously fostering an employee empowerment ecosystem in the AI era. In 2025, the company maintained 100% employee training coverage and regularly carried out Employee Assistance Program (EAP) initiatives. In addition, ZTE successfully passed the re-assessment for the ISO 45001 system for all domestic operations and production sites, as well as for operations in 30 overseas countries. In public welfare, ZTE further strengthened its volunteer service system in 2025, with the number of employee volunteers surpassing 20,000 and more than 600 global community programs carried out during the year. Guided by its vision of "Goodwill, Everywhere", ZTE implemented tailored projects in over 40 countries, including China, India, Indonesia, Spain, South Africa, and Ethiopia, focusing on educational support, medical assistance, low-carbon environmental protection, and rural revitalization. These efforts benefited more than one million people globally, underscoring ZTE's commitment to building a more inclusive and sustainable society. Strengthening Compliance Foundations, Enhancing Governance Resilience ZTE continuously builds and improves its three-tier sustainability governance system of "Strategy—Decision-Making—Execution", proactively addressing emerging risks to ensure steady implementation of its strategic goals. In 2025, the company sustained its ISO 22301:2019 Business Continuity Management System certification, covering five manufacturing bases and major R&D centers, while also guiding major suppliers to establish BCM management systems. ZTE also sustained ISO 37001 certification for anti-bribery management systems, covering its subsidiaries and branches in 38 key countries. In addition, the company officially launched its "Cross-Border Data Compliance Service Platform for Enterprises Going Global", a one-stop solution designed to help companies tackle complex global compliance challenges. ZTE regards data compliance governance as an important part of the company's overall compliance governance framework. In 2025, the company sustained ISO/IEC 27001 (Information Security Management System) and ISO/IEC 27701 (Privacy Information Management System) certification. Alongside releasing its updated ZTE Privacy Protection White Paper, ZTE secured EU's ePrivacyseal Global certification for five of its key fixed network and multimedia products, reinforcing its world-class data protection standards. As a member of the United Nations Global Compact and the Global Enabling Sustainability Initiative (GeSI), and a key participant and one of the first Champions of the Partner2Connect (P2C) Digital Coalition initiated by the International Telecommunication Union (ITU), ZTE's ESG efforts continue to receive worldwide recognition. In 2025, the company was rated by Sustainalytics as "Low ESG Risk" for the fourth consecutive year, included in the 2025 Fortune China ESG Impact List for the fourth year, honored with "Excellence in Practice Award" from the Association for Talent Development (ATD) for the sixth consecutive year, and once again included in the S&P Global Sustainability Yearbook (China Edition) 2025. ZTE was also selected for the 2025 China's Top 100 Overseas Brands Index released by People's Daily Overseas Online and Global Yearly Brand Research Institute, and was selected as a model case in the 2025 China Corporate ESG Blue Book, and was recognized by Phoenix TV as an "ESG Communication Influence Pioneer". Looking forward, ZTE will continue to leverage its strengths in the R&D innovation and commercialization of fundamental technology, actively supporting the realization of the United Nations Sustainable Development Goals (SDGs). The company remains committed to creating long-term value for stakeholders and driving society toward a future that is more efficient, greener, smarter, and more inclusive. Download ZTE Sustainability Report 2025 here. Visit ZTE's sustainability website for more updates on their commitment to sustainability. Contributed by ZTE.