74 slides from Xpeng, Inc. Class A's sustainability presentation, May 25, 2022
Slide 1: 2021 Environmental, Social and Governance Report
XPENG XPENG INC. 2021 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT CONTENTS 01 2021 ESG Performance Highlights 09 02 About Us 1 1 Company Profile 13 Development Strategy 15 Corporate Governance 18 Honors Received 29 03 Sustainability Management 33 Governance Structure for Sustainable Development 35 S
Slide 2: Contents
02 03 04 2021 ESG Performance Highlights About Us Company Profile Development Strategy Corporate Governance Honors Received Sustainability Management Governance Structure for Sustinable Development Stakeholder Engagement Materialty Assessment Technology for the Future of Mobility Experience Driven b
Slide 3: About the Report
This report is the second Environmental, Social and Governance ("ESG") report issued by XPeng Inc. (XPeng Inc., hereafter referred to as "the Company")1, which aims to showcase the Company's management, commitment, actions and achievements in sustainable development. About the Report Reporting Scope
Slide 4: 2021 ESG Performance Highlights
01 2021 ESG Performance Highlights
Slide 5: 2021 ESG Performance Highlights
1.0. 2021 ESG Performance Highlights XPENG Environment Compared to conventional gasoline vehicles, the electric vehicles delivered by XPeng in 2021 will reduce CO2 emissions by approximately 1,000,000 tonnes over their entire life cycle XPeng established the XPENG critical talent training system, em
Slide 6: About Us
02 About Us EXPLORER OF FUTURE MOBILITY 11 ENVIRONMENTAL - SOCIAL - GOVERNANCE
Slide 7: Company Profile
2.1. Company Profile XPENG + Founded in 2015 and headquartered in Guangzhou, Guangdong Province, China, XPeng Inc. is a technology company focusing on the future of mobility. The company has always maintained full-stack in-house R&D investments, actively building up our core capabilities. With cutti
Slide 8: Development Strategy
2.2. Development Strategy XPENG + In 2021, we repositioned ourselves, promoting "Explorer of Future Mobility" as our brand. We are focused on Intelligence, Quality, Exploration, Vitality and Sustainability as our five main values, and we are committed to leading the field of smart vehicles with our
Slide 9: Corporate Governance
2.3. Corporate Governance In accordance with the Company Law of the People’s Republic of China, NYSE Listed Company Manual, HKEX Listing Rules¹ and other relevant laws, regulations and guidelines, we have developed a comprehensive corporate governance structure, and standardized a scientifically sou
Slide 10: Board of Directors diversity
The Board of Directors’ diversity is one of the main elements promoting the sustainable development of the Company. We have specified in the Charter of the Nomination Committee that, the Nomination Committee should consider the contributions that the candidates can bring to the Board in terms of ind
Slide 11: Improving Compliance
2.3.2. Improving Compliance The company strictly abides by all laws and regulations, formulating a series of internal compliance management systems . We are committed to building a comprehensive compliance system that runs through the various business departments and functional depar tments, continu
Slide 12: Regulating business practices
Regulating business practices The Company strictly abides by the Supervision Law of the People’s Republic of China , the Law against Unfair Competition of the People’s Republic of China, and other applicable laws and regulations . We have formulated the Employee Code of Conduct, Code of Integrity, A
Slide 13: Improving Risk Management
2.3.3. Improving Risk Management The Company refers to the internal control framework of the COSO Committee (the Committee of Sponsoring Organizations of the Treadway Commission) and the Sarbanes-Oxley act Section 404 to establish a risk management framework and related risk management systems to co
Slide 14: Risk Management and Monitoring
Risk Management and Monitoring The Board is responsible for establishing and maintaining an adequate and effective system for risk management and internal control. On behalf of the Board, the Audit Committee reviews how management deploys, implements and super vises risk management and internal cont
Slide 15: Honors Received
2.4. Honors Received Gold Award The of the 22nd WIPO-CNIPA Award for Chinese Outstanding Industrial Design China National Intellectual Property Administration 2021 Guangdong-Hong Kong-Macao Greater Bay Area High-Value Patent Cultivation & Layout Competition Gold Award Guangdong Administration for Ma
Slide 16: Honors Received
I-VISTA FIVE-STAR Industry’s First i-VISTA¹ Five-Star Model in 2021 (P7) China Automotive Engineering Research Institute and i-VISTA (Intelligent Vehicle Integrated Systems Test Area) Committee CAR OF THE YEAR (P7) The 8th Xuanyuan Award (2021) – Car of the Year (P7) Auto Business Review and EFS Con
Slide 17: Sustainability Management
03 Sustainability Management XPeng Inc. highly values sustainable development, so we have established a comprehensive sustainability management system, actively communicating with stakeholders, and continuously improving our standards for sustainability management. EXPLORER OF FUTURE MOBILITY EN V I
Slide 18: Governance Structure for Sustainable Development
3.1. Governance Structure for Sustainable Development XPeng Inc. has established a three-tier governance structure for sustainable development. The “Board of Directors - ESG Task Force - ESG Execution Group” structure specifies the responsibilities at all levels, forming an ESG closed-loop managemen
Slide 19: Stakeholder Engagement
3.2. Stakeholder Engagement XPeng Inc. has in place a variety of stakeholder communication channels, timely disclosing information on operation and production, environmental protection, scientific and technological innovation, development strategy and other aspects to stakeholders. In this way, we w
Slide 20: Materiality Assessment
3.3. Materiality Assessment Through active communication and research, XPeng Inc. gathers feedback from various stakeholders such as shareholders, the government, our employees, our customers, and others, In order to Identify important ESG Issues and be able to make key disclosures in this report. M
Slide 21: Technology for the Future of Mobility Experience
04 Technology for the Future of Mobility Experience As a technology company focusing on the mobility experience of the future, XPeng Inc. has always believed in comprehensive R&D investment and is committed to building up its core full-stack research and development capabilities. We have established
Slide 22: Driven by Innovation
4.1. Driven by Innovation Technology is the key competitive edge and core strategic focus of XPeng Inc. XPeng regards full-stack research and development capabilities, along with the rapid iteration of software and hardware integration, as an important strategy for scientific and technological innov
Slide 23: R&D Strategy
R&D Strategy Adhering to the full-stack research and development strategy, XPeng Inc. is committed to bringing innovation to advanced driver-assistance, smart connectivity and core vehicle systems. Through leading-edge software and hardware technologies, we transform future mobility with technology
Slide 24: R&D Team
R&D Team XPeng Inc. has a multi-level, diversified, large-scale, in-house international talent team. Several of our founders and executives are senior talents from different industries. Our R&D personnel by the end of 2021 accounted for 38% of our total employees, providing a solid talent base for o
Slide 25: Product Innovation for the Future of Smart Mobility Experience
[Feature]Product Innovation for the Future of Smart Mobility Experience Thanks to our comprehensive scientific and technological innovation system, XPeng Inc. has made continuous breakthroughs, developing a number of technological advances such as flexible Smart EV platforms, a next-generation of E/
Slide 26: Advanced OTA Updates and Driver-assistance Technology
XPENG + 03 Advanced OTA Updates We use OTA (Over-The-Air) Technology as the main way to update functions, and constantly improve the timeliness, security, and usability of OTA updates, so that smart EV upgrades can be carried out throughout the entire life cycle of the product, allowing our customer
Slide 27: Super Charging Stations and Smart Cockpit
772 By the end of 2021, the number of super charging stations across the country 308 The number of total covered cities XPENG + 05 Smart Cockpit Xmart OS, XPeng Inc. in-car intelligent system, supports the smart cockpit, providing a seamless, easy-to-use and voice-controlled smart travel experience.
Slide 28: Quality Products
4.2. Quality Products XPeng Inc. is committed to building an attractive product portfolio and keeping product quality and safety at the forefront, continuously meeting the growing demand for smart EVs and the multiple needs of our large customer base. 4.2.1. Product Series1 G92 Flagship Intelligent
Slide 29: Product Quality
4.2.2. Product Quality “Quality” is one of XPeng’s core values. XPeng Inc. set up a Quality and Safety Center and formulated the Quality Management System Manual, which covers quality standards for R&D during the design and development stage of vehicle and battery assembly, supplier parts, productio
Slide 30: Improving the Quality Verification Process
Improving the Quality Verification Process For the development of new models, multiple rounds of vehicle verification are adopted, and quality inspection on the whole vehicle is carried out to ensure that user needs are met by testing vehicle endurance and strength, as well as the vehicle’s resistan
Slide 31: Increasing Awareness for our Culture of Quality
Increasing Awareness for our Culture of Quality In 2021, XPeng Inc. formulated the XPeng Manual for Quality Culture, and certified 15 quality culture ambassadors who are responsible for advertising our quality culture, enhancing employee quality culture awareness, and creating an atmosphere where hi
Slide 32: Mechanism for Handling Quality Issues
Mechanism for Handling Quality Issues In 2021, XPeng Inc. refined after-sales service quality measures such as the Management Measures for Rapid Response to Market Quality Problems and the Measures for the Management of Market Quality Information, and promoted the visualization of data indicators an
Slide 33: Product Safety
4.2.3. Product Safety XPeng Inc. has established a monitoring platform for NE V enterprises in accordance with the national standard set by the Technical Specifications of Remote Ser vice and Management System for Electric Vehicles . This platform can monitor the vehicle, power battery, driving moto
Slide 34: Quality Services
4.3. Quality Services XPeng Inc. regards owners as XPeng friends, and is committed to providing our consumers with high-quality service and continuously increasing customer satisfaction. 4.3.1. Protecting Customer's Rights and Interests XPeng Inc. attaches great importance to the protection of custo
Slide 35: Customer Privacy Protection
ISO 27001:2013 In 2021, we obtained ISO 27001:2013 Information Security Management System certification ISO 27701:2019 Obtained ISO 27701:2019 Privacy Information Management System certification 6 Our six core systems passed the Certification for Level 3 Protection Under the National Classified Prot
Slide 36: Data Security and Customer Communication Channels
Under our strict data security measures, there have been no major leaks or cybersecurity incidents in XPeng Inc. for the past three years. Total number of data security breaches or other cybersecurity incidents: 0 Total number of customers and employees affected by company leaks: 0 Number of data le
Slide 37: Providing Quality Service
4.3.2. Providing Quality Service As part of the future mobility experience, XPeng is committed to providing a service experience that is different from that of the traditional car owner, and we provide a better and smarter service system for smart electric vehicle owners. X-SERVICE: Smart and fast s
Slide 38: Promoting Safety Awareness
4.3.3. Promoting Safety Awareness XPeng Inc. attaches great importance to the user's advanced driver-assistance safety education, and has launched the industry's first smart assisted-driving safety system-"intelligent driving points", reminding car owners to follow the standards of use for driver-as
Slide 39: Shaping the XPeng Owner Culture
4.3.4. Shaping the XPeng Owner Culture We focus on establishing a strong relationship with our customers, building a bridge of communication with car owners through the "XPeng Club", creating a culture of "walking with XPeng and exploring", and carrying out a large number of high-quality car owner c
Slide 40: Responsible Supply Chain
4.4. Responsible Supply Chain XPeng Inc. is committed to establishing a sustainable supply chain system and promoting positive results for all parties involved in the value chain. We uphold procurement compliance, and have implemented supplier management policies such as the Supplier Selection and M
Slide 41: Supplier Improvement Capacity
Supplier Improvement Capacity Supplier Training: 29 quality assurance methods, historical defect verification, and the 8D (Eight Disciplines) problem solving, as well as other areas of quality training to improve the quality control of our suppliers. Supplier Sustainability Assessment: Integrating E
Slide 42: Protecting the Environment and Nature Ecology
05 Protecting the Environment and Nature Ecology XPeng Inc. takes the initiative of using scientific and technological progress to advance carbon neutrality, actively responding to climate change, carrying forward the concept of sustainable development through all stages of product design, research
Slide 43: Tackling Climate Change Through Green Transformation
(1)[Feature]Tackling Climate Change Through Green Transformation Climate change is a shared challenge for all humanity. In 2021, China vigorously promoted carbon peaks and carbon neutrality, and the Party Central Committee and the State Council issued the Working Guidance for Carbon Dioxide Peaking
Slide 44: Climate Change Risks and Opportunities
Risk/Opportunity Type Possible Climate Change Risks and Opportunities to XPeng Response Risks From Extreme Weather The business may not be able to operate normally due to extreme weather. Risks to the supply chain, causing production and delivery delays due to climate change, natural disasters, etc.
Slide 45: Environmental Management
5.1. Environmental Management The Company complies with the Environmental Protection Law of the People's Republic of China, the Law of the People's Republic of China on the Prevention and Control of Air Pollution, the Law of the People's Republic of China on the Prevention and Control of Environment
Slide 46: Green Operation
5.2. Green Operation XPeng integrates the concept of ecological conservation into the whole process of product design, material selection, manufacturing and office operation, strives to reduce carbon emissions throughout the product life-cycle, and promotes the green and low-carbon transition and cl
Slide 47: Using green materials
Using green materials Committed to promoting sustainable production, we have endeavored to reduce the adverse impact caused by the use of materials on the environment by taking measures at the source, including the R&D and application of green materials and control of hazardous substances, etc. XPEN
Slide 48: Boosting Resource Efficiency
5.2.2. Boosting Resource Efficiency In 2021, the Company vigorously promoted the use of renewable energy, actively explored the recycling of resources, raised the efficiency of resource utilization, and endeavored to create a resource-conserving and environment-friendly enterprise. Energy consumptio
Slide 49: Management of Waste Discharge and Emissions
5.2.3. Strengthening the Management of Waste Discharge and Emissions The Company complies with laws and regulations such as the Law of the People's Republic of China on Environmental Protection, the Law of the People's Republic of China on the Prevention and Control of Air Pollution, the Law of the
Slide 50: Waste management
Waste management The Company has established internal management systems such as the Environmental Protection Management Procedures and the Procedures for Control and Management of Hazardous Wastes to exercise waste control throughout the process of sorting, collection and transportation; we have es
Slide 51: Noise control
Noise control In the plant area, we try to use low-noise equipment, and keep equipment that generates enormous noise such as air compressors inside a building to reduce their noise through the sound insulation of the building; we apply full-line sound insulation closure systems made of sound-absorbi
Slide 52: Care for Employees, Gathering Power for Sustainable Growth
06 Care for Employees, Gathering Power for Sustainable Growth A high-quality workforce is the foundation of a sustainable business. The Company places the development and management of the workforce high on its agenda, fully respects the rights and interests of employees, and provides a reasonable p
Slide 53: Employee Growth
6.1. Employee Growth Talent is the core competitiveness of a growing enterprise. XPeng values the contribution of every employee. We protect the legal rights and interests of employees, improve the compensation distribution and performance assessment system, provide employees with multi-layered welf
Slide 54: Employee data
Unit 2020 2021 Total number of employees (full-time)¹ Person 5,084 13,978 Number of part-time / internship employees Person / 1,166 Increase in full-time employees Person 1,369 8,894 Unit 2020 2021 Number of workers with disabilities Person 41 50² Unit 2021 Percentage of female employees in all mana
Slide 55: Employee turnover rate
XPENG Note: 1. Employee turnover rate = the total number of departing employees in 2021/ (total number of employees at the end of 2021 + total number of departing employees) * 100%. Employee turnover rate by category = the number of departing employees in that category/ (total number of employees at
Slide 56: Employment Compliance
Employment Compliance During our business operations around the world, we support the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, the international labor standards of the International Labor Organization (ILO), the autonomous principles on safety an
Slide 57: Compensation and welfare
Compensation and welfare The Company continues to improve its compensation and welfare system. We provide employees with market competitive salaries and a multi-level welfare system to improve their quality of life and enhance their sense of belonging. XPENG 01 Annual medical checkups We provide ful
Slide 58: Support for Employee Development
6.1.2. Support for Employee Development The Company regards talents as an important source of business development. We continue to expand and strengthen its workforce by attracting, motivating and retaining valuable talents through diversified training contents, proper incentives and career promotio
Slide 59: Growth and Change, Empowering Life in Workplace
[Feature] Growth and Change, Empowering Life in Workplace A sound training system provides a solid foundation for XPeng to build its own high-quality workforce. Under the "XPENG" critical talent training system, we provide systemic training, certification, and work opportunities for mentors/instruct
Slide 60: Employee training
10,133 The number of employees received training in 2021 People 72.5% Percentage of employees trained 21.5 Training hours per employee 8.31 Total investment in training Million RMB 820 Investment in training RMB per employee Employee training Unit 2020 2021 Percentage of employees trained % 21.7% 72
Slide 61: Occupational Health and Safety
6.1.3. Occupational Health and Safety The Company attaches great importance to the safety and occupational health of employees, complies with production safety laws and regulations, improves the internal mechanism for production safety management, and sets clear goals on production safety. We pay at
Slide 62: Preventing safety risks
Preventing safety risks XPENG 01 Graded risk control We have identified 11 important hazards at the company level and 32 important hazards at the department level. For these important hazards, we have designated responsible persons, formulated control plans, and put out hazard signs. We also organiz
Slide 63: Protecting employees' mental health
Protecting employees' mental health The Company pays close attention to the mental health of employees. We have introduced third-party counseling agencies and counselors, launched the Employee Assistance Program (EAP), and taken steps such as providing psychological counseling, organizing various fu
Slide 64: Care for Community and Charity
6.2. Care for Community and Charity XPeng is constantly looking for converging areas where it can grow together with the society. The Company has actively participated in public benefit programs in areas such as low-carbon growth, employment for the disabled and care for left-behind children, and ac
Slide 65: Advocating volunteer services on environmental protection
03 Advocating volunteer services on environmental protection XPeng encourages its employees, XPeng Smart EV owners and students to support low-carbon growth and environmental protection by taking part in volunteer services. The XPeng Public Welfare Foundation initiated a pre-recruitment campaign for
Slide 66: Charity contribution by the members of XPeng Club
Charity contribution by the members of XPeng Club Through the platform of the XPeng Club, XPeng Smart EV owners from across the country have actively participated in various kinds of public welfare activities such as disaster relief, stray animal rescue and care, charity sales and fundraising, and c
Slide 67: Appendix
07 Appendix EXPLORER OF FUTURE MOBILITY ENVIRONMENTAL SOCIAL GOVERNANCE ENVIRONMENTAL SOCIAL GOVERNANCE 07 Appendix EXPLORER OF FUTURE MOBILITY ENVIRONMENTAL SOCIAL GOVERNANCE ENVIRONMENTAL SOCIAL GOVERNANCE
Slide 68: Key Performance Indicators
7.1. Key Performance Indicators Economic performance indicators Unit 2020 2021 Total revenues Million RMB 5,844.3 20,988.1 Gross margin % 4.6% 12.5% Total deliveries of vehicles unit 27,041 98,155 New authorized patents unit / 428 Environmental performance indicators Unit 2020 2021 Nitrogen oxide em
Slide 69: Key Performance Indicators (continued)
Unit 2020 2021 Photovoltaic power generation 1,000 kWh / 2,905 Indirect energy consumption 1,000 kWh 30,501 56,322 Power consumption 1,000 kWh 30,501 56,322 Total water consumption m3 253,697 424,275 Total water consumption density m3/1,000 RMB / 0.02 Municipal water consumption m3 204,239 271,150 C
Slide 70: Key Performance Indicators (continued)
Unit 2020 2021 Employee turnover rate by region Chinese mainland % / 17.7% Hong Kong, Macao, and Taiwan % / 0% Employee training Total investment in training Million RMB 1.3 8.3 Percentage of employees trained % 21.7% 72.5% Average training hours Hours 3.8 21.5 Percentage of employees trained by gen
Slide 71: Content Index
7.2. Content Index A. Environmental Aspects, General Disclosures and KPIs Chapter Aspect A1: Emissions General Disclosure Information on: (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to air and greenhouse gas emissions,
Slide 72: Content Index: Social Aspects
B. Social Aspects, General Disclosures and KPIs Chapter Employment and Labour Practices Aspect B1: Employment General Disclosure (a) the policies; and (b) compliance with relevant laws and regulations that have a significant impact on the issuer relating to compensation and dismissal, recruitment an
Slide 73: Content Index: Product Responsibility
Aspects, General Disclosures and KPIs Chapter Aspect B6: Product Responsibility KPI B6.3 Description of practices relating to observing and protecting intellectual property rights. 4.1.1 Innovation Systems KPI B6.4 Description of quality assurance process and recall procedures. 4.2.2 Product quality
Slide 74: Explorer of Future Mobility
EXPLORER OF FUTURE MOBILITY 2021 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT