Sustainability

ZTE’s 2024 sustainability report: Commitment to ‘Tech for Good’

In a year marked by geopolitical tensions, climate emergencies, and rapid technological advancement, ZTE Corporation’s 2024 Sustainability Report underscores the company’s resolute commitment to sustainable development. Operating in over 160 countries and regions and serving more than a quarter of the global population, ZTE has emerged not only as a global leader in integrated ICT solutions but also as a responsible corporate citizen actively shaping a more equitable and sustainable digital future.

The company’s ethos for 2024 is rooted in the belief that adversity fuels innovation. ZTE’s leadership has embraced challenges and transformed them into opportunities, particularly through technological innovation in 5G, AI, and green digital infrastructure. This strategy has enabled ZTE to bridge digital divides, reduce carbon footprints, and uplift communities worldwide.

Leadership in sustainable innovation

Executive Director and CEO Xu Ziyang’s message highlights ZTE’s long-standing dedication to technological leadership and social responsibility. In 2024, the company expanded its portfolio to include green intelligent computing centres and high-speed networks that support smart homes, digital industries, and sustainable urban infrastructures. ZTE received global accolades, at the World Internet Conference, acknowledging its transformative role in enabling the digital economy.

Beyond technological advancement, ZTE’s approach is strongly human-centric. Organisational evolution and composable R&D models have resulted in agile and efficient solutions that are rapidly deployed across sectors. The company’s development philosophy, ‘Tech for Good’, is not a slogan but a functional framework deeply integrated into all facets of ZTE’s operations.

Strengthening governance and risk resilience

ZTE has reinforced its internal governance structure with the establishment of the Strategy and Sustainability Committee. This body, alongside the Science and Technology Ethics Committee, ensures that all major strategic and sustainability-related decisions are made responsibly and transparently. The report also details ZTE’s robust risk management system, comprising a three-tier internal control structure covering operational, strategic, and ESG risks. Notably, ZTE links executive bonuses to the completion of carbon reduction and ESG goals, fostering accountability at the highest levels.

Moreover, compliance remains a cornerstone of ZTE’s business model. The company reports zero incidents related to data breaches, unfair competition, or customer privacy violations in 2024. These outcomes are the result of rigorous training, digital transformation of compliance systems, and continuous monitoring mechanisms.

Environmental stewardship and net zero vision

In 2024, ZTE solidified its climate action roadmap by receiving Science Based Targets initiative (SBTi) approval for its near-term 1.5°C and long-term net-zero targets. The company has made significant headway in reducing Scope 1 and 2 emissions by 13.4% year-over-year and has cut downstream Scope 3 emissions intensity by 8.39%.

ZTE’s five production bases, including the newly certified Changsha facility, are all ISO 14001 certified, ensuring rigorous environmental compliance. The company achieved a 78.2% rate of compliant recycling and reuse of returned products. With a focus on promoting a circular economy, ZTE’s environmental strategies include not only internal improvements but also supply chain collaboration, with over 100 suppliers now participating in carbon accounting.

Empowering employees and communities

A recurring theme in the report is ZTE’s emphasis on people. The company has cultivated a respectful and inclusive workplace recognised with several global honours, including LinkedIn’s Global Talent Magnet Employer award. With 100% training participation and a satisfaction score nearing 98, employee development is not merely encouraged, it is systematically managed and celebrated.

Occupational health and safety standards have also been elevated, as evidenced by zero major safety incidents and full coverage of ISO 45001 certification across 30 countries. Additionally, ZTE’s internal service satisfaction scores demonstrate the company’s responsiveness and support to its workforce.

ZTE has also made strides in community engagement and philanthropy. In 2024, it invested CNY 34.04 million in public welfare projects across 15 Chinese provinces and in global locations like South Africa and Indonesia. Over 1,00,000 people benefited from initiatives spanning education, disaster relief, and environmental conservation.

Digital economy and industry empowerment

Innovation is at the heart of ZTE’s digital strategy. With nearly 20% of its revenue allocated to R&D, ZTE has filed over 93,000 patent applications globally. The company continues to lead in AI and chip development, with thousands of patents granted in these critical areas. In Liberia, ZTE connected 5,80,000 residents through green communication infrastructure, exemplifying how its digital expertise drives social change.

In the realm of product security and quality, ZTE launched the iQMS platform and the Green Project Management system to reinforce its commitment to customer satisfaction. These digital tools are part of a broader mission to deliver reliable, secure, and eco-friendly solutions to customers across industries.

Supply chain responsibility and collaboration

ZTE views its partners as co-stakeholders in sustainable development. In 2024, the company conducted CSR audits of 261 suppliers, achieving a 100% corrective action or capability building rate. The firm also participated in the UN Women’s career development program, facilitating the inclusion of 121 supplier representatives.

Disaster response has also become more intelligent and predictive. During Typhoon Yagi and floods in Liaoning province, ZTE utilised digital models to forecast resource requirements and deploy relief materials efficiently. These applications of technology go beyond profit, they save lives and preserve infrastructure.

Measuring and managing ESG impact

Transparency is a key feature of ZTE’s ESG strategy. The company adheres to international frameworks, including GRI Standards, UN SDGs, and ISO 26000. In 2024, it introduced a double materiality assessment process, collecting insights from 2,530 stakeholders to prioritise ESG topics by both societal impact and financial relevance.

This rigorous materiality matrix guided ZTE’s reporting on 22 core topics ranging from climate change and cybersecurity to rural revitalisation and employee rights. For each topic, the report outlines risks, opportunities, and strategies, ensuring readers gain a nuanced understanding of how ZTE mitigates threats while seizing transformational opportunities.

Global recognition and future outlook

ZTE’s achievements in 2024 earned it a place on the CDP A List, the FTSE4Good Index for the ninth time, and the 2024 Fortune China ESG Impact List. The company was also rated “AA” in the Wind ESG ranking and scored 15.0 in Sustainalytics’ ESG Risk Rating indicators of consistent, high-performing sustainability practices.

Looking ahead, ZTE plans to deepen its “Tech for Good” philosophy by continuing investments in green innovation, ethical AI, and global partnerships. It seeks to further expand the linkage between ESG performance and executive compensation, ensuring that sustainability remains core to its strategic direction.

ZTE’s 2024 Sustainability Report is more than a corporate update, it is a manifesto for responsible digital leadership. By fusing innovation with inclusivity, governance with transparency, and ambition with accountability, ZTE exemplifies how a modern tech company can catalyse sustainable progress in a volatile world. Through its relentless pursuit of excellence, ZTE is not just building networks it is building a smarter, safer and more sustainable global community.

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