Li Auto, Inc. Class A · HKEX:2015
Li Auto, Inc. Class A — ESG Presentation (April 2022)
73 slides from Li Auto, Inc. Class A's sustainability presentation, Apr 19, 2022
Slide 1: Environmental, Social and Governance Report Li Auto Inc. 2021
Environmental, Social and Governance Report Li Auto Inc. 2021
Slide 2: About the report
About the report Introduction This is the first Environmental, Social and Governance (ESG) Report released by Li Auto Inc. (a company controlled through weighted voting rights and incorporated in the Cayman Islands with limited liability). It aims to showcase the ESG strategies, management and pract
Slide 3: Content
Content 01 02 04 05 03 About us 2021 ESG highlights 2021 Accolades 04 06 07 Compliant operation and responsible governance Low-carbon operation and green ambition Community contribution for a better society Innovative pioneer and outstanding product Inclusive care and shared growth Appendix Corporat
Slide 4: About us
About us Li Auto Inc. is a leader in China's new energy vehicle (NEV) market. We design, develop, manufacture, and sell premium smart electric vehicles. Our mission is to create homes on the move that bring happiness to the entire family (" 创造移动的家，创造幸福的家 "). Through innovation in product, technology
Slide 5: Celebrating our milestones
Celebrating our milestones About us The volume production of Li ONE started with the first Li ONE rolled off the assembly line at our Changzhou manufacturing base. 1 The Company later changed the name to "Leading Ideal Inc." in April 2019 and to "Li Auto Inc." in July 2020. 2Over-the-air refers to a
Slide 6: 2021 ESG highlights
2021 ESG highlights 2021 ESG highlights Compliant operation and responsible governance No corruption-related litigation Anti-corruption and compliance training sessions for all employees Our user service system and App earned level 3 Cybersecurity Protection certification Innovative pioneer and outs
Slide 7: 2021 Accolades
2021 Accolades 2021 Accolades Outstanding company in the Vehicle Leaders List Organizing Committee of the Future Vehicle Ecosystem Conference Municipal-level green factory Changzhou Bureau of Industry and Information Technology Automatic emergency braking (AEB) test champion DCar ( 懂车帝 ) No.1 in the
Slide 8: Compliant operation and responsible governance
Compliant operation and responsible governance 01 Li Auto views responsible governance as a necessary brick block to achieve continuous innovation and efficient operation of the Company. To this end, we have established a sound governance structure and have been constantly enhancing corporate govern
Slide 9: 1.1 Corporate governance
1.1 Corporate governance Li Auto establishes scientific and efficient corporate governance mechanisms with a clear division of power and responsibility, in accordance with the Company Law of the People's Republic of China, the Nasdaq listing standards, and the Rules Governing the Listing of Securiti
Slide 10: Risk management
Efficient organizational structure Sound risk control system 1.1.2 Risk management Li Auto takes risk management and internal control as the core of corporate management. To this end, we have formulated the Li Auto Inc. Risk Management Policies and established a risk management framework with "three
Slide 11: 1.2 ESG management
1.2 ESG management With a focus on environmental and social impacts of businesses, Li Auto makes ongoing efforts in improving the building of sustainability management system, establishes a top-down ESG management architecture, and creates value in collaboration with stakeholders under the premise o
Slide 12: 1.2.2 Sustainability strategy
1.2.2 Sustainability strategy Li Auto has made sustainability strategies to promote corporate strategies. We are dedicated to leading the future mobility modes while achieving our sustainable development through technological accumulation and Areas SDGs Our risks Our opportunities Our actions Compli
Slide 13: 1.2.3 Stakeholder communication
1.2.3 Stakeholder communication Li Auto puts a high value on the communication and exchanges with stakeholders. We make continuous improvements in routine communication mechanisms with multiple channels, timely and efficiently responds to their expectations and accepts their supervision. Li Auto's s
Slide 14: 1.2.4 Material issues matrix
1.2.4 Material issues matrix Li Auto highly values the feedback and suggestions of stakeholders on sustainable issues. During the reporting period, we reviewed key ESG matters and the concerns of stakeholders in detail. Through benchmarking practices of peers both at home and abroad, and monitoring
Slide 15: 1.3 Business ethics
1.3 Business ethics Business ethics is a cornerstone of robust corporate development. Li Auto has formulated the Code of Business Conduct and Ethics1, the Anti-corruption and Compliance Policies, the Li Auto Inc. Employee Manual, the Li Auto Inc. Whistle-blowing Policies and Procedures, the Li Auto
Slide 16: Firmly upholding business ethics
Li Auto has a zero-tolerance policy for corruption and defines all and potential corruption and bribery behaviors in the Anti-corruption and Compliance Policies, including bribery, kickback, excessive gifts, facilitation payments, extortion, money laundering and payments or offers to obtain improper
Slide 17: 1.4 Data security
1.4 Data security Li Auto highly values information security and the protection of users' personal information, we ensure data security protection and avoid data security risk through complete information security management systems and data control process specifications. We strictly abide by the D
Slide 18: 1.4.1 Information security
1.4.1 Information security appropriate protection policy and implementing unified management on the data control platform. For software development, we have set up a data security protection system covering full life cycle of software demand, design, launch, operation and maintenance. We have put in
Slide 19: 1.4.2 Privacy protection
Protecting personal information and privacy security is our basic commitment to users. We respect users' right to know how their personal information is collected, used and handled. During the collection, storage and use of users' information, we make continuous efforts to optimize technology and en
Slide 20: Innovative pioneer and outstanding product
Innovative pioneer and outstanding product The mission of Li Auto is "to create homes on the move that bring happiness to the entire family" (" 创造移动的家，创造幸福的家 "). We uphold product quality as a cornerstone, technological innovation as a driver and customer service as a highlight, to deliver products
Slide 21: 2.1 Product quality and safety
2.1 Product quality and safety We pursue outstanding quality, create a sound quality management system, and build a product lifecycle quality assurance mechanism and quality control system. Relying on our excellent supply chain management and technical advantage, we bring users a series of healthy,
Slide 22: 2.1.2 Life-cycle quality management
2.1.2 Life-cycle quality management In strict compliance with the Product Quality Law of the People's Republic of China, Li Auto establishes a closed-loop quality management process consisting of early-stage prevention, mid-stage verification and late-stage summary. While perceiving the real car dri
Slide 23: Product production quality control
Guided by our Infrastructure Management Procedures and Product Production Control Procedures, we use best-in-class testing equipment, production management-related IT systems and automated production equipment to achieve a high level of automated production. At our self-built manufacturing base, eng
Slide 24: Manufacturing quality management process
Li Auto's manufacturing quality management process We use linear seven-axis robots for our stamping line, which is capable of mixed production of steel and aluminum parts under various scenarios. After stamping, the world-leading blue-ray scanning system performs 100% of dimensional inspections as r
Slide 25: 2.1.3 Quality culture fostering
2.1.3 Quality culture fostering We make a point of formulating quality education and training plans for manufacturing employees. Our Quality and Safety Department takes the lead in providing employees with a comprehensive quality training system comprised of orientation training, pre-job training an
Slide 26: Healthy product
Health is paramount to vehicle design. We highlight the control over volatile organic compounds (VOC) and vehicle odor intensity (VOI) during vehicle design and production. Our in-car air quality team is comprised of members for R&D, procurement, manufacturing and quality management. At the R&D stag
Slide 27: 2.2 Innovation and development
2.2 Innovation and development Innovation drives sustainable development at Li Auto. Using industry- leading technology, we optimize autonomous driving and smart cabin solutions. We are committed to developing smart electric vehicles that are better than their internal combustion engine counterparts
Slide 28: Achievements of product R&D and innovation in 2021
Li Auto's achievements of product R&D and innovation in 2021 1. Electric vehicle technologies 3. Smart cabin The self-developed next generation range extension electric system will be fully applied to all EREV models released after 2022 to ensure superior performance of noise, vibration and harshnes
Slide 29: 2.2.2 Partnering with the industry
2.2.2 Partnering with the industry To promote the growth of our industry and partners, we actively engage in technical exchanges across the industry, has joined associations and organizations related to autonomous driving and new energy vehicles, and participated in relevant technical research and i
Slide 30: 2.2.3 Protecting intellectual property
We offer online training on intellectual property to new hires and organize them to complete online courses to enhance their awareness of intellectual property protection. In daily work, we sign non-disclosure agreements with employees, and require each department to carry out monthly patent trainin
Slide 31: Supplier ESG requirements
ESG aspect Requirement Quality Establish effective quality management systems. Obtain IATF 16949 or equivalent third-party certification. Inspect product quality inspections and issue relevant reports. Set quality goals and improvement actions. Safety Comply with national laws and regulations on bui
Slide 32: 2.3.2 Supply chain risk response
2.3.2 Supply chain risk response To address supply chain risks, we carry out a comprehensive risk analysis, and build an early warning mechanism for supply chain quality, production capacity, delivery and ESG-related risks, and establish a sound risk prevention and control system. Li Auto's supply c
Slide 33: 2.4 User service
2.4 User service Li Auto believes in responsible marketing and comprehensively builds a data-driven, closed-loop platform covering the whole cycle of sales, use and after-sales, providing users with efficient and reliable services to enhance user satisfaction and loyalty. We offer standardized, high
Slide 34: 2.4.2 After-sales support
To satisfy our users' after-sales needs better and faster, we have established a comprehensive after-sales service system consisting of vehicle quality warranty, maintenance, repair, online services and road rescue. With a data- driven mindset, we have built a standardized, systematic and intelligen
Slide 35: After-sales quality assurance
Li Auto has established a unified headquarter coordination and management mechanism for quality assurance. We provide remote or on-site technical assistance for maintenance service centers, and regularly supervise and guide their operations, thus delivering better and more consistent after- sales se
Slide 36: Customer satisfaction management
否 否 否 To improve service satisfaction, we establish a closed-loop user satisfaction management system, in which, user satisfaction is measured via voluntary review on our App. In the event of unfavorable feedback, dedicated teams analyze the issues and take prompt remedial action. We also check user
Slide 37: 2.4.3 User experience
2.4.3 User experience We believe in "building a community where everyone respects each other to stimulate creativity". We participate in the construction of user community, listen to our users and create value with them, which enhances brand satisfaction and loyalty. Building online communication pl
Slide 38: Inclusive care and shared growth
Inclusive care and shared growth Li Auto adheres to the organizational values of "focusing on collaboration, empowering employee growth, and rewarding achievements". We also strive to create a healthy, diverse and equal workplace where growth is shared with our employees. 03 Attracting talent Cultiv
Slide 39: 3.1 Attracting talent
3.1 Attracting talent Li Auto pursues equality and justice. We also devote ourselves to attracting more excellent talents with perfect talent strategy and building a diverse and inclusive working environment. We establish a highly competitive salary system and sound employee welfare system, as well
Slide 40: Employee turnover indicators
Indicators Categories Unit Data in 2021 Total number and rate of employee turnover Number person 3,223 Rate % 27 Employee turnover rate by gender Male % 28 Female % 22 Employee turnover rate by age 29 and below % 36 30 to 39 % 21 40 and above % 14 Employee turnover rate by geographic region Chinese
Slide 41: 3.1.2 Employee benefits
3.1.2 Employee benefits Li Auto develops a comprehensive salary incentive system and provides equity incentives for outstanding employees, enhancing their sense of achievement. We also prioritize employee care. We continually provide a wide range of non-salary benefits for all employees in terms of
Slide 42: 3.2 Cultivating talent
3.2 Cultivating talent Li Auto develops and trains employees, strives for the strategic goal of "supporting the growth and development of talents", and establishes a sound employee training and development system. We also assist employees in exploring their potentials. 3.2.1 Cultivation and training
Slide 43: Training case studies
In 2019, we introduced TBP to encourage employees to create more business solutions and enhance their professional abilities by means of competition. In 2021, 244 employees participated in TBP training and competition, producing 257 solutions for research and sales practices. Case study: TBP Competi
Slide 44: 3.2.2 Promotion and development
3.2.2 Promotion and development Li Auto has a fair, clear and transparent career promotion channel for employees. Performance appraisal Career band 1 OKR, or Objectives and Key Results, proposed by Intel's founder Andy Grove, is a common management tool for identifying and tracking objectives and th
Slide 45: 3.3 Ensuring safety and health
3.3 Ensuring safety and health Li Auto continually improves occupational health and safety management system and is committed to creating a safe production culture and working environment for employees to protect their physical and mental health. Li Auto creates a healthy and safe workplace for empl
Slide 46: Safety risk identification and inspection
To guarantee employees' health and safety in the operation and use of the equipment while operating equipment and during production, we have established a sound safety inspection and management mechanism, actively carried out safety risk identification and regular safety inspections, and timely rect
Slide 47: Emergency response plans
In order to respond to production safety accidents and other emergencies efficiently, timely and properly, Li Auto has formulated the Emergency Contingency Plan for Production Safety Accidents in accordance with the Guidelines for Enterprises to Develop Emergency Response Plans for Workplace Acciden
Slide 48: 3.3.2 Occupational health
3.3.2 Occupational health Li Auto attaches great importance to the occupational health of all employees and continues to care for their mental health. We have established a sound occupational health management system. We identify the occupational hazards of each position based on the production and
Slide 49: Low-carbon operation and green ambition
Low-carbon operation and green ambition Li Auto values green and sustainable development in operations, actively addresses the impact of climate change, and seizes the opportunities presented by such changes. We make low-carbon blueprints in advance and implement the environmental strategy of low-ca
Slide 50: 4.1 Climate strategy
4.1 Climate strategy Climate change is a critical global environmental issue. In response to the national goal of "reaching peak carbon emissions by 2030 and achieving carbon neutrality by 2060", Li Auto, as a responsible corporate citizen, is keenly aware of its role to fight global climate change
Slide 51: 4.1.2 Climate strategy
4.1.2 Climate strategy Li Auto has included climate risk identification and management into the existing risk management system from the perspective of the enterprise itself, and the technical departments take charge of full-scale identification and assessment of the risks and opportunities in relat
Slide 52: 4.1.4 Indicators and targets
4.1.4 Indicators and targets Li Auto is actively setting CO2 reduction targets and aims to reduce carbon emissions throughout the value chain, from supply chain and logistics to production and product portfolios. We endeavor to assess the carbon footprint of our production process by calculating, tr
Slide 53: 4.2 Green production
67 4.2 Green production Li Auto has continually improved environmental management policies and optimized risk control in the production process. We are committed to building harmless green plants and exploring green technologies that support a green travel. By adopting energy-saving and environmenta
Slide 54: 4.2.1 Environmental management system
4.2.1 Environmental management system We earned ISO 14001 environmental management system certification in 2021. We strictly comply with the Environmental Protection Law of the People's Republic of China and other relevant laws and regulations, and have formulated internal environmental management s
Slide 55: Reducing solid waste discharge
Reducing solid waste discharge In accordance with the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste, and other relevant laws and regulations, Li Auto has formulated the Waste Pollution Control Management Regulations to standardize the c
Slide 56: Reducing wastewater discharge
Reducing wastewater discharge Complying with the Water Pollution Prevention and Control Law of the People's Republic of China, we have formulated our Water Pollution Control Management Regulations to implement full process control of the wastewater generated by our production process. We set limits
Slide 57: 4.2.3 Resource management
4.2.3 Resource management Li Auto supports low-carbon development and continually improves the efficiency and recycling of resources in our operations. Energy conservation Li Auto is committed to reducing energy consumption at our manufacturing base. In our production and operations, Changzhou manuf
Slide 58: 4.3 Green product
4.3 Green product Li Auto integrates green concepts into the product design, explores the recycling potential of the materials and parts of whole vehicles, and actively makes innovative efforts to reduce the carbon emissions generated by our products. In a vehicle's life cycle, driving contributes m
Slide 59: Lightweight design and greening battery design
Lightweight design Greening battery design Lightweight automobiles consume less energy. Li Auto effectively reduces the weight of the vehicle body, interior and exterior decorations, chassis, battery, electric-drive and other systems through the comprehensive optimization of materials, processes and
Slide 60: Battery and packaging recycling
Power battery recycling Packaging recycling Recognition We actively adopt a number of measures to reduce waste and boost recycling. In 2021, we continue to promote packaging recycling plans. The recycling rate for the packaging of Li ONE parts rose from 38% in 2020 to 57% in 2021, and the proportion
Slide 61: 4.4 Green office
Li Auto not only attaches importance to low carbon and emission reduction measures in the production process, but also encourages employees to implement the green and low-carbon office concept. In 2021, we formulated and issued the Li Auto Inc. Green Office Management System (Trial Version) to conti
Slide 62: Key environmental indicators
Key environmental indicators Key environmental indicators Unit Data in 2021 Main waste gas pollutants VOCs ton 8.56 Methane ton 2.05 Soot ton 1.79 Main wastewater pollutants COD ton 19.72 Ammonia nitrogen ton 0.86 Total phosphorus ton 0.06 Nonhazardous waste ton 17,131.49 Kitchen waste ton 320.50 Do
Slide 63: Community contribution for a better society
Community contribution for a better society Our mission is "to create homes on the move that bring happiness to the entire family" (" 创造移动的家，创造幸福的家 "). We are committed to creating a better life for our users, actively undertaking social responsibilities, and devoting ourselves to social welfare and
Slide 64: 5.1 Philanthropy
5.1 Philanthropy The year of 2021 is full of twists, turns and hopes. The sudden rainstorm touched people's hearts across the country. The fight against COVID-19 is still locked in a stalemate. As a member of the community of shared future for mankind, Li Auto has always been well-positioned to face
Slide 65: 5.2 User kindness
On December 15, 2021, at Li Auto's Hefei Retail Store, our users jointly organized education support activities for Pingtian Central School in Xiaotian Town, Liu'an City, to show their care and love for the children, bring happiness to them and help them pursue their dreams. 5.2 User kindness We cre
Slide 66: Appendix
Appendix ESG Key Performance Indicators HKEX ESG Reporting Guide Content Index GRI Index Appendix 66 Li Auto Inc. 2021 Environmental, Social and Governance Report
Slide 67: ESG Key Performance Indicators
ESG Key Performance Indicators Indicators Unit Data in 2021 Percentage of employees by rank and gender Senior management person 26 Percentage of male employees in senior management % 88 Percentage of female employees in senior management % 12 Middle management person 132 Percentage of male employees
Slide 68: ESG Key Performance Indicators (continued)
Indicators Unit Data in 2021 Percentage of employees trained by rank Senior management % 100 Middle management % 99 General employees % 94 Total training hours by gender Male hour 176,808 Female hour 42,075 Average training hours by gender Male hour 18 Female hour 18 Total training hours by rank Sen
Slide 69: HKEX ESG Reporting Guide Content Index
Environmental, Social and Governance Indicators Page Social B5 Supply Chain Management B5.3 Description of practices used to identify environmental and social risks along the supply chain, and how they are implemented and monitored. P31-32 B5.4 Description of practices used to promote environmentall
Slide 70: GRI Index
Disclosure Issues/ Disclosure Disclosure title Location Page 102-22 Composition of the highest governance body and its committees Corporate governance P09 102-23 Chair of the highest governance body Corporate governance P09 102-24 Nominating and selecting the highest governance body Corporate govern
Slide 71: GRI Index
Disclosure Issues/ Disclosure Disclosure title Location Page 301-3 Reclaimed products and their packaging materials Green production & Green product P55 P58-60 GRI 302: Energy GRI 103: Management Approach 103-1 Explanation of the material topic and its Boundary Green production P57 103-2 The managem
Slide 72: GRI Index
Disclosure Issues/ Disclosure Disclosure title Location Page GRI 103: Management Approach 103-1 Explanation of the material topic and its Boundary Attracting talent P39-40 103-2 The management approach and its components Attracting talent P39-40 103-3 Evaluation of the management approach Attracting
Slide 73: To create homes on the move that bring happiness to the entire family
To create homes on the move that bring happiness to the entire family. Li Auto Inc. 2021 Environmental, Social and Governance Report