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Huawei Investment & Holding Co., Ltd.

2021 Sustainability Report

Bring digital to every person, home and organization


for a fully connected, intelligent world
Corporate Profile

Who is Huawei?

Founded in 1987, Huawei is a leading global provider of information and communications technology (ICT) infrastructure and
smart devices. We have 195,000 employees and we operate in over 170 countries and regions, serving more than three billion
people around the world. We are committed to bringing digital to every person, home and organization for a fully connected,
intelligent world.

(For more details, please check the Huawei 2021 Annual Report at https://www.huawei.com/en/annual-report)

Report Profile

Every year since 2008, Huawei Investment & Holding Co., As an independent record of sustainability, this report is
Ltd. ("Huawei", "the company", or "we") has voluntarily published online and in print in both Chinese and English in
released annual sustainability reports and disclosed our July 2022. (The report for 2020 was published in July 2021.)
sustainability performance as we believe that doing so You can view the 2021 Sustainability Report at
facilitates communication, awareness, and interaction with www.huawei.com/en/, or by scanning the following QR code.
our stakeholders and makes Huawei more transparent.

This report covers all entities that Huawei either has control
of, or a significant influence over, in terms of financial
and operational policies and measures. The scope of the
entities covered in this report is consistent with the scope of
organizations discussed in the Huawei 2021 Annual Report.
Unless otherwise specified, this report describes the economic,
environmental, and social performance of Huawei and its
subsidiaries worldwide during the reporting period from
January 1, 2021 to December 31, 2021. All data contained
herein is derived from Huawei's official documents and
statistical reports. For details about the economic data in the
report, refer to the Huawei 2021 Annual Report.

The report is prepared in accordance with the Global For any report-related questions or suggestions, please contact:
Reporting Initiative (GRI) Standards (Core option). Huawei
Tel: +86 (0)755 2878 0808
engaged SGS, an external assurance provider, to verify the
reliability, fairness, and transparency of this report and to E-mail: [email protected]
issue an independent assurance statement (see Appendix IV).

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 01


Developing Digital Talent and
Enhancing Digital Literacy for a
More Sustainable World
Throughout human history, our ability to imagine a world beyond the status
quo has been the driving force behind all development and progress. We made
agricultural tools to carve out a permanent place for ourselves in the natural
world, and developed machines to cast off the fetters of backbreaking manual
work. We are now gathering oceans of data to drive progress towards a fully
connected, intelligent world.

Our imagination drives advancement in technology, leading to an abundance


of new applications that spur the need to learn and grow, which in turn
reinvigorates our imagination.

Right now, digital technology is reshaping the world. They are playing a role in
every aspect of our work and life. Next-generation digital technologies like 5G,
AI, and cloud computing are converging rapidly, laying the groundwork for a
booming digital economy. Green development is also gaining traction, promoting
low-carbon lifestyles and production models. As digital and green technologies
converge, they will create tremendous opportunities and drive social progress.
----- Liang Hua ----- A greener intelligent world is fast approaching, but the road ahead is not
Chairman of the Board smooth. The global digital skills gap is widening, which hinders innovation and
socioeconomic growth. To bridge this gap, we need to cultivate more digital
talent and enhance digital literacy.

Developing digital talent for a stronger digital economy


Digital literacy is essential for advancing the digital economy. The United Nations
We firmly believe that open has designated education as a basic right, and as the world grows more digital
collaboration leads to than ever, the ability to access and use technology is an inextricable element of
that right. Recognizing this, countries around the world are actively exploring the
shared success. We have
best ways to cultivate digital talent and enhance digital literacy.
embedded sustainability into
The EU has developed the 2030 Digital Compass plan, aiming to train 20
all of our corporate strategies,
million ICT specialists and equip 80% of adults with basic digital skills by 2030.
transformation management, Japan has launched the Digital New Deal, which aims to provide every student
and business processes. in elementary and high schools across the country with a computer by 2024
Through nonstop innovation, to help them begin developing digital skills at an early age. And China has
announced its 14th Five-Year Plan on Digital Economy Development, which
we are working with our will bolster digital education to improve nationwide digital literacy and skills so
partners worldwide to cultivate as to drive the digital economy forward.
digital talent, bridge the digital Digital skills are key to coordinating efforts to develop the digital economy, and
divide, and push the digital countries that are not able to make full use of their data will be on the back
economy forward. foot. According to the EU's Digital Economy and Society Index, more than 37%
of workers in the EU lack basic digital skills. Germany, for example, is projected
to have a deficit of 4.9 million digital workers by 2030. In China, eight out
of every nine ICT jobs are currently unfilled. It currently has a shortage of 12
million ICT workers, including nine million in emerging fields like AI, cloud
computing, and big data.

As a tech company, Huawei is willing to do its part to help bridge the digital
gap in the ICT sector. We are working with our partners worldwide to develop
a more robust digital talent ecosystem and share ICT knowledge and skills.

02 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


A Message from the Chairman of the Board

In 2008, we launched a program called Seeds for the Future Huawei is committed to open collaboration. We are actively
to support the cultivation of local digital talent in communities sharing the know-how, technical capabilities, and best practices
around the world. This initiative later branched out into other that we have built up over the years with people around the
development programs, including technology competitions, world. Together with industry partners and educational institutions,
dedicated scholarship programs, the Huawei ICT Academy, we are creating an open talent ecosystem that thrives on shared
Huawei Developers Training, and the Huawei Cloud Developer success. This is part of our commitment to giving back to local
Institute. So far, we have invested more than US$150 million in communities and creating new economic opportunities.
these programs, helping more than 1.54 million people from
In addition to promoting digital inclusion, we're also doing our
over 150 countries boost their digital skillsets.
best to protect the planet. We are actively innovating to conserve
In 2021, we launched the Seeds for the Future 2.0 program, which energy, reduce environmental impact, and build a greener, low-
is part of our ongoing efforts to help cultivate broader swaths of carbon, and fully connected world for future generations.
digital talent. We will invest US$150 million in this program over
We embed sustainability into the entire lifecycle of our
the next five years, and we expect these efforts to benefit over
products. We will continue to invest heavily in areas like raw
three million more people. Moving forward, we hope more people
materials, production processes, algorithms, and cooling
and organizations will join our TECH4ALL initiative to support
technologies that reduce the environmental impact of digital
more inclusive development of digital talent around the world.
infrastructure. This will allow us to build more energy-efficient
5G networks, greener data centers, and eco-friendly electronics.
Improving digital skills in remote areas
In the meantime, cyber security and privacy protection remain our
COVID-19 has had a profound impact on our world. And while
top priorities. We will continue to communicate and collaborate
many people benefit from digital connectivity in all aspects of
with all stakeholders in a trustworthy, open, transparent, and
work and life, the pandemic has widened the gap between the
responsible manner. Together, we can more effectively address
haves and have nots, further exacerbating the digital divide
shared challenges in security and trustworthiness through
and digital poverty.
innovation, unified standards, and improved governance.
According to the GSMA's Mobile Economy Report 2022, only
In 2021, we continued to advance our Software Engineering
6% of the world's population live in areas without mobile
Capability Enhancement Transformation, incorporating it into
network coverage. Although the pandemic has increased the
our Integrated Product Development process to create more
frequency of Internet use for many, the usage gap – people
efficient and trustworthy R&D environments. By doing so, we
who have coverage but aren't using the Internet – remains.
hope to build trustworthy and quality products to ensure that
In 2021, the usage gap was 3.2 billion people, or 41% of
both our processes and results are trustworthy, and that all
the world's population. Needless to say, we still have a long
necessary measures are taken to mitigate vulnerabilities and
way to go before secure and quality Internet connections are
risks. Our ultimate purpose is to help customers build secure
affordable and accessible to all.
and resilient networks and create a greener, more secure, and
For more than 30 years, we have committed ourselves to more sustainable digital world.
pushing the boundaries of ICT and promoting its global
A greener intelligent world is just around the corner. The
adoption. We have worked closely with carriers worldwide
digital transformation of industries, as well as green and low-
to build over 1,500 networks, connecting more than three
carbon development, all rely on digital talent, so enhancing
billion people in more than 170 countries and regions. Huawei
digital literacy is key. We firmly believe that open collaboration
supports inclusive development and is working to drive broader
leads to shared success. We have embedded sustainability into
digital inclusion through our targeted TECH4ALL program. We
all of our corporate strategies, transformation management,
want to bring the benefits of digital technology to everyone.
and business processes. Through nonstop innovation, we are
As of the end of 2021, our TECH4ALL program has helped working with our partners worldwide to cultivate digital talent,
more than 110,000 people, including teachers and students bridge the digital divide, and push the digital economy forward.
from over 400 schools, as well as unemployed young people,
The road ahead is long and hard. But no matter how bumpy
learn new digital skills and improve their scientific and
that road may be, we will stay the course. Huawei is committed
technological literacy. In addition to digital skills, making
to bringing digital to every person, home and organization for
technology more accessible and available is an important part
a fully connected, intelligent world.
of these efforts. Each month, the accessibility functions on
Huawei devices allow more than 4.4 million visually impaired
users and over 800,000 hearing impaired users to use digital
technology more seamlessly. And our RuralStar base station
solutions have helped connect 60 million people in remote
areas in more than 70 countries.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 03


Technology with a Human
Touch: Building a Better,
Intelligent World
The digital economy is an engine of global economic growth in today's
world. New digital technologies, such as 5G, cloud computing, big data, and
artificial intelligence, are reshaping the way we work and live. We believe
that all innovations and inventions share the same mission: to make the
world a better place. It is this belief that drives us to continue advancing our
four sustainability strategies: Digital Inclusion, Security and Trustworthiness,
Environmental Protection, and a Healthy and Harmonious Ecosystem.
Together with our partners, we are building a better, intelligent world.

Technology for a more inclusive society


The beauty of technology lies in its potential to benefit all and ensure no one
is left behind in the digital world. That is why Huawei launched the TECH4ALL
initiative, through which we work with partners to drive digital inclusion in four
key areas: education, environment, health, and development.

By the end of 2021, we have used digital technology to roll out our education
----- Tao Jingwen ----- programs, including DigiTruck and DigiSchool, in more than 400 schools,
driving equality and quality in education. Over the past year, we have helped
Board Member and Chairman
32 protected areas in 25 countries protect biodiversity more efficiently. We
of the CSD Committee have also developed numerous products and services that offer accessibility
features for vulnerable groups such as the visually impaired, hearing impaired,
and the elderly. Each month, more than 4.4 million visually impaired people
and 800,000 hearing impaired people use the accessibility features on Huawei
devices to benefit from an increasingly digital world.

As part of our commitment to bridging the digital divide in remote areas,


Technology has the power to
we have deployed our RuralStar series solutions in more than 70 countries,
change the world and make connecting 60 million people worldwide. We also use ICT to enable industries
dreams that once seemed to go digital, make production safer and more efficient, and create better
out of reach possible. As a working environments for employees. For example, 5G-powered smart
factories allow steelworkers to work in air-conditioned rooms, smart coal
tech company, we believe that
mines enable miners to wear suits at work, and smart ports protect crane
technology is a force for good. operators from serious neck issues.
We will continue to provide
Technology for more secure, reliable communications
products and services with a
human touch, push boundaries Digital technology can enrich communications and life and promote economic
development. However, its growing adoption also brings challenges to cyber
and keep innovating,
security and privacy protection, both of which remain a top priority at Huawei.
and ultimately, bring digital We strive to develop secure and trustworthy products, solutions, and services
to every person, home and that will allow every individual to enjoy a better life in the digital world.

organization for Over the past three decades, we have helped connect more than three
a fully connected, billion people around the world, while maintaining a proven track record in
security. In 2021, Huawei opened its largest global Cyber Security and Privacy
intelligent world.
Protection Transparency Center in Dongguan, China. The center is designed
to demonstrate solutions and share experience, facilitate communication and
innovation, and support security testing and verification. It is open to our
global stakeholders, in a bid to jointly create a reliable digital environment.

04 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


A Message from the Chairman of the CSD Committee

Various non-market factors, such as the COVID-19 pandemic, pursue business value, as such a model is simply not
conflicts, and natural disasters, are putting unprecedented sustainable. Social value should be a key consideration
pressure on the timely delivery and stable operations of whenever companies conduct business activities. As
communications networks. However, Huawei has stayed companies contribute social value, they will likely encounter
committed to what we do best. We believe that it is our new business opportunities. This will help create a virtuous
responsibility to support stable network operations and cycle and drive progress towards the United Nations
ensure uninterrupted communications. Over the past year, we Sustainable Development Goals.
provided timely support for more than 180 major events and
At Huawei, it is a company policy to care for our employees
emergencies worldwide.
and always put their safety first. We fully support our
To address challenges throughout our supply chain, we employees working in difficult situations, including those
have established backup supply networks at multiple points in locations hit hard by the pandemic or suffering from
along multiple paths at multiple levels. We will stick to our conflict, and use digital technology to improve their working
strategy of maintaining a globalized, diversified supply chain, environments. In 2021, we invested more than CNY15 billion
and work closely with our suppliers and partners to create a into employee benefits, reaching a record high.
secure, reliable, competitive, and healthy value chain.
Huawei emphasizes a culture of integrity and invests heavily
to make it a reality. As such, every Huawei employee is
Technology for a greener, cleaner environment
required to adhere to the company's Business Conduct
As green development continues to gain momentum across Guidelines (BCGs). We also prioritize supplier management
the globe, decarbonization and digitalization are becoming and make sustainability a key part of our procurement
imperative. ICT will be key to both processes. Huawei's strategy. In 2021, we assessed the sustainability performance
environmental efforts are driven by the company's green of more than 1,600 major suppliers.
pledge of "Tech for a Better Planet", which focuses on three
In terms of social responsibilities, Huawei is an active and
areas: reducing carbon emissions, promoting renewable
productive member of every community in which it operates.
energy, and contributing to a circular economy. Our goal is to
We use digital technology to make a lasting, positive impact
use innovative technology to protect our planet.
and give back to local communities. In March 2021, Huawei
In 2021, Huawei held its Supplier Carbon Emissions Reduction launched the HUAWEI Women Developers program, aiming to
Conference to clarify its strategies and requirements on supply help women developers pursue innovation and contribute to
chain emissions reduction. With the support of Huawei, 98% an inclusive and diverse world. In July, Huawei announced the
of our top 100 suppliers and energy-intensive suppliers set Seeds for the Future 2.0 program, in which we plan to invest
carbon emissions reduction targets. In the same year, we used US$150 million over the next five years to cultivate digital
over 300 million kWh of electricity from renewable energy talent. The program is expected to benefit over three million
sources in our own operations, up 42.3% over 2020. more people around the world. In August, Huawei announced
that it would invest US$100 million into the Spark Program
Huawei's digital power company focuses on five key domains:
in the Asia-Pacific region over the next three years, with the
clean power generation, energy digitalization, transportation
purpose of building a sustainable startup ecosystem in the
electrification, green ICT power infrastructure, and integrated
region. This program is intended to help more startups seize
smart energy. In total, our digital power solutions helped
the opportunities posed by digital transformation, achieve
customers generate 482.9 billion kWh of green power and
business success, and develop more innovative products and
save 14.2 billion kWh of electricity. These efforts resulted in a
solutions for the world.
total carbon offset of 230 million tons.
Technology has the power to change the world and make
Huawei is also working to build a business model that
dreams that once seemed out of reach possible. As a tech
integrates circular economy practices and a closed-loop value
company, we believe that technology is a force for good. We
chain. This reduces our impact on the environment and our
will continue to provide products and services with a human
demand for natural resources. For example, the packaging
touch, push boundaries and keep innovating, and ultimately,
of Huawei's P50 series smartphones uses 89% less plastic
bring digital to every person, home and organization for a
than the P40 series, with plastic accounting for less than 1%
fully connected, intelligent world.
of the packaging. In addition, Huawei has joined the Digital
with Purpose Movement launched by the Global Enabling
Sustainability Initiative (GeSI), pledging to combat climate
change and report on our progress.

Technology for a better, more harmonious world


We believe that responsible companies should not solely

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 05


01 / Corporate Profile

01 / Report Profile

02 / A Message from the Chairman of the Board

04 / A Message from the Chairman of the CSD Committee

Sustainability Digital Inclusion Security and


Management Trustworthiness

09 / 2021 Sustainability Honors 24 / Driving Equity and Quality in 36 / Cyber Security and Privacy
and Awards Education Protection

10 / Huawei's Sustainability 26 / Conserving Nature with 39 / Openness and Transparency


Milestones in 2021 Technology
41 / Supporting Stable
11 / Sustainability Strategy and 29 / Enabling Inclusive Health and Communications
Progress Well-being
46 / Business Continuity
13 / Sustainability Management 31 / Driving Inclusive Digital
System Development

17 / Stakeholder Engagement

06 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


CONTENTS

Environmental Healthy and Appendices


Protection Harmonious Ecosystem

51 / Reducing Carbon Emissions 80 / Caring for Employees 105 / Sustainability Goals and
Performance
69 / Promoting Renewable Energy 87 / Business Ethics
106 / GRI Standards
71 / Contributing to a Circular 91 / Supply Chain Responsibilities
Economy 112 / Acronyms and Abbreviations
95 / Community Responsibilities
75 / Environmental Certifications 115 / External Assurance Statement

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 07


1 Sustainability Management
2021 Sustainability Honors and Awards

Huawei's Sustainability Milestones in 2021

Sustainability Strategy and Progress

Sustainability Management System

Stakeholder Engagement

08 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Sustainability Management

2021 Sustainability Honors and Awards

Honor/Award Name Issued by

Huawei DigiTruck in Kenya: World Summit on the Information Society


ITU
(WSIS) Prizes 2021 Champion Project

Nature Guardian: GSMA GLOMO for Outstanding Mobile Contribution to


GSMA
the UN SDGs

Huawei RuralStar Pro: Best Mobile Innovation for Emerging Markets of


GSMA
GSMA GLOMO

Best Practices for Achieving SDGs in 2021 (Protecting the Environment &
Global Compact Network China
Addressing Climate Change)

Leadership Award on Climate Action CDP

Climate A- List CDP

FusionSolar Smart PV solution: Carbon Neutrality Actor – Climate Solver of


WWF
the Year

27 Huawei subsidiaries recognized as a Top Employer Top Employers Institute

Vodafone Health and Safety Award Vodafone Group

Excellence in Supply Chain Development Deutsche Telekom

Huawei India: Great Place to Work Great Place to Work® Institute

Huawei Saudi Arabia: 2021 Sustainability Award in the Core Economic Area King Khalid Foundation (KKF)

Huawei Bangladesh: Partner Recognition Award bKash

Top 10 Green and Low-carbon Companies Shenzhen Emissions Exchange Co., Ltd.

Huawei Malaysia: Cyber Security Innovation of the Year CyberSecurity Malaysia (CSM)

Huawei UAE: Cybersecurity Company of the Year and Cybersecurity CEO


UAE Cyber Security Council (CSC)
of the Year

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 09


Huawei's Sustainability Milestones in 2021

• In October, Huawei led the revision


of the IPC-1401 Corporate Social
Responsibility Management System
Standard, which was then released
globally by IPC – the Association
Connecting Electronics Industries.
• In July, Huawei launched its Seeds for
the Future 2.0 program, in which it plans • In November, Huawei released its
to invest US$150 million over the next statement on gender equality, in which
five years to cultivate digital talent. The the company commits to using its
program is expected to benefit over technologies and platforms to benefit
three million more people. more women, encourage them to

• In August, Huawei announced that it would Q4 work in the tech industry, and cultivate
women's leadership.
invest US$100 million in the Spark Program
in the Asia-Pacific region over the next • In November, Huawei held its first global
three years, aiming to build a sustainable Tech4Good competition, asking
startup ecosystem in the region. participating students to identify a
social issue and propose a technical
solution based on the ICT knowledge
they have learned.

Q3

• In May, Huawei held its Supplier Carbon


Emissions Reduction Conference to
clarify its strategies and requirements on
Q2 supply chain emissions reduction.

• In May, Huawei joined the Digital with


Purpose Movement launched by the Global
Enabling Sustainability Initiative (GeSI).

• In June, Huawei opened its largest global


• In January, Huawei released the
Cyber Security and Privacy Protection
Corporate AI Business Intent and
Transparency Center in Dongguan, China.
Governance Principles, which specifies
that the intent of the company's AI
business is to enhance human, societal,
and environmental well-being.

• In March, Huawei launched the HUAWEI


Women Developers (HWD) program
to empower women developers in the
development of innovative technologies.
Q1

10 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Sustainability Management

Sustainability Strategy and Progress

Huawei is committed to bringing digital to every person, home and organization for a fully connected, intelligent world. As a tech
company, Huawei believes that technology is a force for good. As such, sustainability is a key part of our overall strategy. Under the
guidance of our Corporate Sustainable Development (CSD) Committee, we have made ongoing efforts in our four sustainability
strategies: digital inclusion, security and trustworthiness, environmental protection, and a healthy and harmonious ecosystem.
These efforts will contribute to achieving the United Nations Sustainable Development Goals (UN SDGs).

Major progress in these four areas in 2021:

Digital Inclusion
Leaving no one behind in the digital world: Huawei launched its TECH4ALL initiative to promote digital inclusion for all. The
goal of the initiative is to bring digital technology to every person, home, and organization. We run projects with our partners and
are making technology more inclusive by investing in technology, applications, and skills.

110,000+ 32 4.4 million+ 60 million


people, including teachers and protected areas in 25 countries visually impaired users and people in remote areas across
students from 400+ schools, have more efficiently protect 800,000+ hearing impaired 70+ countries have been
as well as unemployed young biodiversity with the help of users use the accessibility connected to the Internet
people, have been able to Huawei's TECH4ALL projects features on Huawei devices through Huawei's RuralStar
access the Internet and improve each month series solutions
their digital skills and scientific
and technological literacy
through TECH4ALL projects

Security and Trustworthiness


Taking responsibility to build trust: Cyber security and privacy protection are a top priority at Huawei, and we continue to invest
and remain transparent in both areas. We have worked to improve our software engineering capabilities and practices, build
resilient networks, develop trustworthy and high-quality products, and support stable network operations and business continuity.

70+ 20,000+ 35 180+


cyber security certifications requests from data subjects Authorized Economic Operator major events and emergencies
were awarded to Huawei, were promptly and effectively (AEO) certificates were awarded where Huawei supported stable
giving our customers handled by Huawei, respecting to Huawei in 28 countries and communications
internationally recognized and protecting user privacy regions across five continents,
security assurances ensuring supply chain security

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 11


Environmental Protection
Contributing to a clean, efficient, low-carbon, and circular economy: We are committed to minimizing our environmental
impact in manufacturing, operations, and over the entire lifecycles of our products and services. Huawei's innovative products and
solutions help industries reduce their energy consumption and emissions, and contribute to the circular economy. We actively work
with all our industry partners to shrink our carbon footprint.

1.9x 300 million+ kWh 98% 89%


increase in the average of electricity from renewable energy sources of Huawei's top 100 suppliers less plastic was used in the
energy efficiency of used in Huawei's own operations, up 42.3% and energy-intensive suppliers packaging of Huawei's P50
Huawei's main products over 2020 set carbon emissions reduction flagship phones compared
compared to the base targets with the support of to the P40 series, with
year (2019) Huawei plastic accounting for less
than 1% of packaging

Healthy and Harmonious Ecosystem


Collaborating for the common good: We operate with integrity and in compliance with all applicable laws and regulations, and
continue to enhance sustainability risk management. We work to ensure that our employees can develop and realize their personal
value. We conduct due diligence on our global supply chain to ensure its sustainability. We actively contribute to the communities
we operate in. Our goal is to work with all industry partners to build a healthy and harmonious industry ecosystem.

CNY15 billion+ CNY142.7 billion 1,600+ 400+


invested in employee benefits invested in R&D in 2021, equaling 22.4% of major suppliers social contribution
the company's total revenue received a sustainability programs run by
performance assessment Huawei worldwide
from Huawei

12 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Sustainability Management

Sustainability Management System

As part of our efforts to achieve our strategic sustainability goals, we have considered both internal and external environments
and followed ISO 26000 and the Responsible Business Alliance (RBA) Code of Conduct while working on the six key areas of
our sustainability management system: leadership, planning, organization and skills support, process operations, performance
appraisal, and system improvement. Our goal is to manage our sustainability strategies and goals in a closed loop, enhance
digital operations, and increase stakeholder satisfaction.

m e nt s ys t em
m an a g e
bi li t y im
pro
ta in a • Cau
se analysis • Contin
uous ve m
S us clo
sur
e imp
rov en
t
6. ssu
e em
•I 1. Leadership en
t
• Sustainability strategies,
principles, and objectives
• Sustainability policies, rules,
and standards
• Tiered sustainability
management authorization
• Sustainability culture,
incentives, and accountability

5. Performance
appraisal
2. Planning
Business Huawei's • Customer satisfaction Business
environment • Countermeasures for
Requirements risks and opportunities
Sustainability surveys environment
• Maturity assessments Satisfaction
Stakeholders • Sustainability solution Management
• Measurements, analyses, Stakeholders
planning System and evaluations
Customers
• Change planning • Sustainability reviews Customers
• Management reviews

4. Process operations
• Major business processes (IPD/LTC/ITR)
• End-to-end sustainability management
(incorporating sustainability
requirements into processes)
• Building sustainability into the entire
value chain (suppliers/partners) e
•Q ur
ct
ua
lity stru
an fra
do • In
pe g t
• K rations ldin en
now organiz y bui gem
ledg ation • Capacit an a
e man ent m
3. O agement • Docum or t
rgani pp
za t ion and skills su

Framework of Huawei's Sustainability Management System

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 13


CSD Committee

Huawei's Corporate Sustainable Development (CSD) Committee guides the company's business units in setting annual and mid-
and long-term sustainability goals, as well as overseeing the attainment of these goals in accordance with our four sustainability
strategies. The Committee consists of more than 10 senior executives from various departments, including human resources (HR),
manufacturing, logistics services, procurement, and research and development (R&D). The CSD Committee is chaired by Tao
Jingwen, a board member and President of the Quality, Business Process & IT Department.

Functions of the CSD Committee:


• Develops corporate-level sustainability strategies, guidelines, objectives, and policies; sets the course; and monitors their
implementation.

• Coordinates the creation, implementation, and continuous improvement of the sustainability management system;
decides on sustainability related matters; and ensures that Huawei's sustainability management complies with relevant
laws and regulations, international standards, and customer requirements.

• Facilitates sustainability-related communication with key stakeholders such as customers, regulators, and industry
organizations.

• Drives the resolution of sustainability issues across domains or processes and coordinates sustainability operations from
end to end.

• Provides guidance on the development, operation, and improvement of our environment, occupational health and safety
(EHS) management system, and handles major EHS issues.

The Committee meets each quarter and convenes special meetings as necessary to discuss sustainability issues. The major topics
discussed at meetings in 2021 included: human rights, digital inclusion, environmental protection, responsible procurement, and
safe production and operations. To support the efficient operations of the CSD Committee, we have appointed a working group,
which is responsible for coordinating and completing everyday sustainability work and facilitating the achievement of strategic
goals related to sustainability.

Sustainability Risks and Opportunities

We believe that sustainability risk management is part


of the company's business processes, rather than being
independent of business operations. To help business units
identify and manage sustainability risks, Huawei has created
a sustainability risk management guide based on the Risk,
Governance, and Control (RGC) methodology. The guide
covers risk identification, risk assessment, target setting, risk
control, risk monitoring, and risk governance.

We believe that improved sustainability will boost efficiency,


increase customer satisfaction, lower operational risks, and
drive greater business innovation. Proactively managing
sustainability risks and opportunities will help our company
become more competitive.

14 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Sustainability Management

Examples of sustainability risks and opportunities

Sustainability
Risks and Opportunities Measures
Strategy

According to the UN, more than 600 million young


Through programs like DigiTruck and DigiSchool, Huawei
people worldwide lack basic mathematics and literacy
is working with its partners to help provide everyone with Digital Inclusion
skills. Therefore, inclusive and equitable quality
equal access to quality education.
education is an imperative.

Huawei has long pursued the green pledge of "Tech


According to a report released by the United Nations
for a Better Planet" to actively address climate and Environmental
Environment Programme, climate change, biodiversity
environmental challenges. We use ICT to reduce carbon Protection and
loss, and pollution are the three major environmental
emissions, promote renewable energy, contribute to a Digital Inclusion
crises facing humanity.
circular economy, and protect nature.

Huawei cares about underprivileged groups. That's why we


The beauty of technology lies in its potential to benefit are using our innovative ICT solutions to help our partners
all. Technology must be easily accessible to both the provide more easily accessible healthcare resources and Digital Inclusion
masses and the underprivileged. offering accessibility features designed for the elderly and
those with disabilities in our own products.

Through its TECH4ALL initiative, Huawei is committed to


An estimated 37% of the world's population have
bridging the digital divide and working with partners to
never used the Internet, many of whom live in remote Digital Inclusion
promote individual development for people in remote rural
rural areas.
areas using our digital technologies.

Governments around the world are paying greater Cyber security and privacy protection are a top priority
attention to cyber security and privacy protection, and at Huawei. We strive to develop secure, trustworthy, and Security and
have adopted laws and regulations to strengthen the quality products, solutions, and services to help customers Trustworthiness
governance of cyberspace and protect personal data. build more resilient networks.

In June 2021, we opened our largest global Cyber Security


and Privacy Protection Transparency Center in Dongguan,
Cyber security and privacy are a common challenge, China. We are committed to strengthening communication
one that all stakeholders – including governments, and collaboration with stakeholders, promoting common
Security and
industry and standards organizations, enterprises, security standards, technological innovation, security
Trustworthiness
technology suppliers, and consumers – have a shared governance, testing, and verification, and more. We look
responsibility to address. forward to collaborating with all stakeholders to build cyber
security and privacy protection capabilities, share value, and
embrace both challenges and opportunities.

It is our mission and primary social responsibility to


maintain stable network operations. Earthquakes, We have robust mechanisms for responding to natural
typhoons, epidemics, and other natural disasters and disasters and incidents. We constantly improve our Security and
incidents can all impact Huawei's business operations capabilities in this regard to ensure that people have Trustworthiness
in numerous ways, and thus impact the operations of continued access to stable ICT services anytime, anywhere.
networks we have deployed.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 15


Sustainability
Risks and Opportunities Measures
Strategy

Through years of sustained investment, Huawei has


In today's highly globalized and highly specialized
established a BCM system for domains such as R&D,
world, Huawei's operations rely heavily on third Security and
procurement, manufacturing, logistics, and global technical
parties. This makes business continuity management Trustworthiness
services. This system covers our end-to-end processes, from
(BCM) critical.
suppliers to Huawei and on to our customers.

Rising temperatures are causing various problems


Huawei is working to reduce carbon emissions in every
such as environmental degradation, natural disasters, Environmental
aspect of its operations, including products, operations, and
extreme weather, and rising sea levels. The reduction of Protection
supply chains, and is taking every responsible step to do so.
carbon emissions is now a consensus shared by all.

Fossil fuels have caused many environmental problems Huawei's digital power company is dedicated to integrating
and sustainability challenges. Clean power enabled by digital and power electronics technologies, developing Environmental
technology is a sustainable alternative that will drive clean power, and enabling energy digitalization to drive an Protection
new economic growth the world over. energy revolution for a better, greener future.

As the world's population continues to grow and quality Huawei is committed to building a business model that
of life keeps improving, the pressure on the world's incorporates circular economy practices and a closed-
Environmental
natural resources is increasing. To adapt to future needs, loop value chain so that all resources can be efficiently
Protection
it is important for us to develop a resource-efficient used, reused, and recycled, to maximize product value with
economic model. limited resources.

At Huawei, it is a company policy to care for our employees


and always put their safety first. As the COVID-19 pandemic
evolved, Huawei switched to scientific pandemic-prevention
Huawei's global business presence poses a challenge to
methods and targeted control measures. These included Healthy and
ensuring the health and safety of our employees, due
rapid nucleic acid tests, vaccinations, and campus entry Harmonious
to the effects of epidemics, conflicts, and other potential
management. We have spared no effort to help transfer Ecosystem
emergencies.
those working in high-risk regions, along with their families,
to safer locations and provide all necessary supplies and
financial assistance.

We have worked for years to build a compliance


management system that aligns with industry best
practices. Despite these efforts, we may still experience Huawei will continue to learn from industry best practices
Healthy and
impacts due to the complex legal environments of some and take preventive measures to address risks. The
Harmonious
of the countries and regions in which we operate. For certainty of legal compliance is our best safeguard against
Ecosystem
example, there may be a lack of clarity or transparency the uncertainty of the external environment.
in regards to local laws or ambiguity surrounding legal
systems or law enforcement.

Working under conditions that may put employee safety


According to the findings of supplier audits, most of
or health at risk is a CSR red line that Huawei draws for Healthy and
the identified issues are related to health and safety,
suppliers. We provide targeted training for suppliers in Harmonious
so we must urge suppliers to further enhance EHS
key industries or regions, and other key suppliers, conduct Ecosystem
management.
audits on them, and follow up on their corrective actions.

In 2021, Huawei launched the Seeds for the Future 2.0


Healthy and
In a digital economy, digital talent is the key to program. We will invest US$150 million into this program
Harmonious
digitalization and economic growth. over the next five years, and we expect over three million
Ecosystem
more people to benefit.

16 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Sustainability Management

Stakeholder Engagement

Stakeholder identification and engagement are critical to Huawei's sustainability management. Communicating and collaborating
with stakeholders allows us to better understand their concerns and requirements. This information is a valuable input for our
organizational decisions and helps us constantly improve our sustainability performance.

Huawei's primary stakeholders include customers and consumers, employees, suppliers and partners, governments, non-governmental
organizations (NGOs), industry organizations, specialist agencies, the media, and local communities. In 2021, we identified the top
concerns of our stakeholders and developed corresponding strategies to address them:

Communication Channels
Stakeholders Major Concerns Huawei Strategy
and Frequency

• Set medium- and long-term carbon emissions


reduction targets for our own business and encourage
our top 100 suppliers (by procurement spending) and
• Climate change/
energy-intensive suppliers to do the same.
• Customer satisfaction surveys: Annual carbon neutrality • Build a business model that incorporates circular
• Customer meetings: • Circular economy economy practices and a closed-loop value chain.
On-demand and eco-design • Empower the CSD Committee to monitor
Customers and
• Huawei Fan Club for consumers: • Human rights and manage possible human rights abuses in
consumers
Periodic • Supply chain Huawei's business activities and supply chains, and
• Customer audits, surveys, and joint due diligence continuously improve the management of key areas
projects: Periodic management that may have an impact on human rights.
• Integrate sustainability requirements into our
end-to-end procurement process, from supplier
admission and qualification to selection, performance
evaluation, and portfolio management.

• Employee surveys, (e.g.,


• Make it a company policy to care for employees
organizational climate surveys):
• Health and safety and always put their safety first. Create a safe and
Annual
• Manager Feedback Program (MFP): at work comfortable workplace for all.
Annual • Compensation, • Reward dedicated employees based on how well they
• Meetings with employee benefits, and fulfill their responsibilities and offer top pay for top talent.
representatives: Periodic incentives • Offer employees systematic training programs and
Employees
• Reflection sessions: Periodic • Learning and two distinct career paths – the manager path and
• Hotlines and public email addresses development the expert path – to help them realize their personal
for filing complaints, providing • Employee relations value.
suggestions, reporting misconduct, and experience • Promote workforce diversity, create an inclusive
and making an appeal: Periodic
working at Huawei and equitable workplace, and nurture a warm and
• Open Days with managers and
harmonious organizational climate.
experts: Periodic

• Prioritize our commitment to anti-bribery and anti-


corruption above our business interests, and ensure
fairness, integrity, and transparency in our operations.
• Fairness and equity • Remain committed to openness and collaboration
• Collaboration for for shared success and work with partners across
• Supplier sustainability audits: Periodic
shared success different industries and domains to build up a
• Supplier sustainability conferences:
Suppliers and • Social healthy and harmonious ecosystem.
Annual
partners responsibilities • Benchmark Huawei's operations against industry best
• Supplier training: Periodic
• Energy conservation practices, adopt internationally recognized standards,
• Joint sustainability programs: Periodic and integrate sustainability requirements into our
and emissions
reduction procurement strategy.
• Encourage our top 100 suppliers and energy-
intensive suppliers to set carbon emissions reduction
targets for a green, competitive supply chain.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 17


Communication Channels
Stakeholders Major Concerns Huawei Strategy
and Frequency

• Follow our green pledge of "Tech for a Better Planet"


to actively address climate and environmental
challenges, with a focus on reducing carbon
• Meetings on government policy: On- • Combating climate emissions, promoting renewable energy, and
demand change/carbon contributing to a circular economy.
• Governmental public consultations: neutrality • Continue to implement our "Glocalization" strategy,
On-demand • Economic including efforts to hire locally, invest locally, procure
Governments
• Government and inter-government development and locally, and establish local research facilities. This will
conferences: On-demand employment help boost employment and support economic growth
• Governmental sustainability • Digital talent in the countries and regions where we operate.
programs: On-demand development • Invest US$150 million in digital talent development
over the next five years through the Seeds for the
Future 2.0 program, which is expected to benefit over
three million more people.

• Empower the CSD Committee to monitor


and manage possible human rights abuses in
Huawei's business activities and supply chains, and
continuously improve the management of key areas
• Industry conferences, forums, and that may have an impact on human rights.
work groups: On-demand • Human rights • Follow our green pledge of "Tech for a Better Planet"
NGOs, industry
• Standards conferences: On-demand • Combating climate to actively address climate and environmental
organizations,
• Joint sustainability programs: On- change/carbon challenges, with a focus on reducing carbon
and specialist
demand neutrality emissions, promoting renewable energy, and
agencies
• Academic research programs: On- • Circular economy contributing to a circular economy.
demand • Build a business model that incorporates circular
economy practices and a closed-loop value chain
so that all resources can be efficiently used, reused,
and recycled to maximize product value with limited
resources.

• Set medium- and long-term carbon emissions


reduction targets for our own business and
encourage our top 100 suppliers and energy-
• Combating climate intensive suppliers to do the same.
• Press conferences: On-demand
change/carbon • Roll out the digital inclusion initiative TECH4ALL
• Exclusive interviews: On-demand
Media neutrality across four domains: education, environment, health,
• Inviting the media to our conferences
• Digital inclusion and development.
and events: On-demand
• Business continuity • Stick to our strategy of maintaining a globalized,
diversified supply chain without depending on any
single supplier, country, or region, and develop sustained
and stable supply capabilities over the long term.

• Facilitate green consumption by providing consumers


• Local employment and procurement:
with eco-friendly products.
Periodic
• Integrate information accessibility features into
• Participation in community projects:
• Green consumption Huawei's products and services and provide related
Periodic
• Information hotlines and store services to ensure that no one is
Communities • Running social contribution programs:
accessibility left behind in the digital world.
Periodic
• Gender equality • Release a statement on gender equality, in which we
• Interaction through Huawei's
commit to using our technologies and platforms to
websites and social media platforms:
benefit more women, encourage them to work in the
Periodic
tech industry, and cultivate women's leadership.

18 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Sustainability Management

2021 Stakeholder Engagement

Huawei actively engages with global stakeholders by organizing and participating in a variety of sustainability programs. Through these
programs, we are able to discuss and work together on our shared concerns (e.g. using tech for good, promoting gender equality,
combating climate change, and enhancing trust in tech) as part of our effort to support the UN Sustainable Development Goals.

Connected for Shared Prosperity Forum Co-hosted with GSMA

As part of the lead-up to Mobile World Congress Shanghai


2021, which ran from February 23 to 25, Huawei, GSMA,
the Center for Environmental Economic Studies at Fudan
University, and The Paper hosted the Connected for Shared
Prosperity forum, with the support of UNESCO.

More than 1,000 guests from over 50 countries attended


the forum either online or in person, and discussions were
broadcast live in eight languages. Attendees agreed that digital
technology is the foundation of sustainable development and
will benefit more people in multiple aspects.

HUAWEI Women Developers Summit for Greater Gender Equality and a More Diverse Ecosystem

At the HUAWEI Women Developers Summit held on April


28, 2021 in Guangzhou, China, several outstanding women
in tech were invited to share their technical knowledge, work
experience, and personal stories to encourage more women
to work and play a unique role in the tech field.

The summit was hosted by HUAWEI Women Developers


(HWD), Huawei's global women empowerment program
designed to help women developers create world-changing
apps and tools. HWD aims to provide women with the
resources they need and encourage more women to join in
technological innovation by offering them opportunities to
learn, communicate, and express themselves. This is part of
our efforts to contribute to a more diverse ecosystem.

Huawei at EU Green Week

During EU Green Week 2021, Huawei and its European


partners held five online and offline forums from May
31 to June 13, 2021 to explore how digital technology
is key to creating a greener future. The events brought
together attendees from various organizations, including
the Directorate-General for Environment of European
Commission; the Irish Department of Agriculture, Food and
the Marine; German Parliament; GeSI; and the United Nations
Environment Programme (UNEP). The attendees discussed
ten trends in new energy development, the important role of
ICT in achieving the European Green Deal targets, and the
need for public and private partnerships and industry-wide
collaboration to shape a sustainable and intelligent world.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 19


Huawei's Tech & Sustainability Forum Exploring the Role of Technology in Sustainable Development

On July 8, 2021, Huawei held a "Tech & Sustainability:


Everyone's Included" forum, co-hosted with the International
Union for Conservation of Nature (IUCN). Representatives
from Huawei, IUCN, the World Economic Forum, CDP, GeSI,
and the Singapore Institute of International Affairs discussed
the role of technology in driving sustainability and building a
more inclusive, eco-friendly world.

At the forum, Huawei announced its Seeds for the Future


2.0 program, through which Huawei plans to invest US$150
million in digital talent development over the next five years.
This program is expected to benefit over three million more
people. Huawei also released its Innovation: Blood, Sweat
and Dreams documentary series produced together with
the Economist Group, which pays tribute to technological
innovators and conservationists.

Huawei at COP26

From November 1 to 12, 2021, the 26th UN Climate Change


Conference of the Parties (COP26) was held in Glasgow. The
COP26 summit brought various parties together, including
governments, institutions, and tech companies, to accelerate
action towards the goals of the Paris Agreement and the UN
Framework Convention on Climate Change (UNFCCC).

Dr. Fang Liangzhou, Vice President and Chief Marketing


Officer of Huawei Digital Power, spoke at the November
3 session "System Change and Climate Innovation in
the Technology Industry" hosted by the UNFCCC Global
Innovation Hub. Fang delivered a keynote address online
entitled "Building a Low-carbon Smart Society", where
he described how Huawei Digital Power integrates digital
and power electronics technologies to help industries save
energy and reduce emissions in both power generation and
consumption. Fang also called for joint efforts to build a
low-carbon smart society together, so as to combat climate
change and accelerate progress towards carbon neutrality.

Huawei's TrustInTech Summit

On December 2, 2021, Huawei held the online TrustInTech


Summit 2021 themed "Global Collaboration for Shared
Value". Leaders from across the globe attended the event,
including Neil Bush, Chairman of the George H.W. Bush
Foundation for US-China Relations; Pascal Lamy, Former
WTO Director General; 2018 Economics Nobel Prize winner
William Nordhaus; ASEAN Deputy Secretary General H.E.
Satvinder Singh; NASA Solar System Ambassador Derrick
Pitts; and Hou Jinlong, Senior Vice President of Huawei and
President of Huawei Digital Power.

Attendees acknowledged that humanity has entered an era


in which interests, fates, and futures are all intertwined, and
called for coordinated efforts to address common challenges.

20 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Sustainability Management

Huawei's Membership in Sustainability Organizations

Focusing on Material Issues

Managing material issues helps us identify the major issues that


affect our business operations and that concern our stakeholders.
Examples of how we identify material issues include:
It is a key input for improving our sustainability performance.
• Stakeholder surveys
• Customer inquiries, audits, communications, and
In 2021, after a comprehensive analysis and re-prioritization
joint projects
of our material issues, we adjusted the materiality matrix
• Industry insights, communications, and
to include more issues that reflect stakeholder concerns,
benchmarking
including "digital talent development", "information
• Media engagements
accessibility", and "gender equality". The new matrix also
• Internal risk assessments and strategic alignment
makes "supply chain sustainability" and "renewable energy" a
higher priority.

High Climate change/carbon


emissions reduction

Circular economy
and eco-design
Supply chain sustainability
Digital talent Renewable
development energy
Importance to stakeholders

Technology for Technology for equity Respecting human rights


nature conservation and quality in education

Sustainability
management system Business ethics Business continuity

Community Occupational health


participation Cyber security and privacy
Diversity and and safety
and contributions inclusion protection & openness and
Technology for inclusion transparency
Gender equality and equity in health and
information accessibility
Employee training
and development Technology for
balanced development

Stable communications

Low High
Importance to Huawei's business

Chapter 1 Sustainability Management Chapter 2 Digital Inclusion Chapter 3 Security and Trustworthiness

Chapter 4 Environmental Protection Chapter 5 Healthy and Harmonious Ecosystem

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 21


2 Digital Inclusion
Driving Equity and Quality in Education

Conserving Nature with Technology

Enabling Inclusive Health and Well-being

Driving Inclusive Digital Development

22 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Digital Inclusion

As the digital economy continues to develop rapidly, digital


technologies like big data, IoT, and AI have been interwoven into every
aspect of our lives. Digital inclusion has become a new requirement
in this new age. To promote digital inclusion, Huawei launched the
TECH4ALL initiative, as we believe that no one should be left behind in
the digital world. In 2021, Huawei worked with more than 40 partners,
including UNESCO, the International Union for Conservation of Nature
(IUCN), the non-profit organization Close the Gap, and Rainforest
Connection (RFCx). We made substantial progress in the areas of
education, environment, health, and development, contributing to
achieving the UN SDGs.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 23


Driving Equity and Quality in Education

UNESCO believes that education is a human right for all throughout life and that access must be matched by quality. Huawei is
working with its partners, including UNESCO and Close the Gap, and using innovative ICT solutions to enable everyone to have
equal access to high-quality education, which contributes to the SDG 4 (Quality Education). We aim to harness the power of
technology and increase network coverage and connections to help make high-quality educational resources more accessible. We
want to empower more people with digital skills to improve the quality of education and career development. We also support the
development of technology courses to improve the scientific and technological literacy of teachers and students in remote areas.
By the end of 2021, Huawei's education programs had benefited more than 110,000 people, including teachers and students from
over 400 schools, as well as unemployed young people.

DigiTruck: Improving the Digital Skills of People in Remote Areas

In Kenya, less than 50% of people use the Internet. This In France, 14 million people experience at least one form
is because over 75% of Kenyans live in remote areas of digital divide – whether it be Internet access, computer
and many people do not realize the economic value of literacy, or difficulty using devices. As a result, many lack
digital skills. In fact, some Kenyans have never used a the digital skills that employers need, limiting individual
smartphone or gone online. opportunities.

To empower people in remote rural areas with digital


skills, Huawei launched the DigiTruck project in 2019,
in partnership with UNESCO, Close the Gap, GSMA, In July 2021, Huawei partnered with a
Computers For Schools Kenya (CFSK), and the Kenyan
local training institute to provide training in
carrier Safaricom. DigiTruck is a mobile digital classroom
that has been converted from a shipping container. The digital skills for unemployed young people
entire truck is solar-powered, so classes can be held in and the elderly through the DigiTruck
remote areas lacking adequate power supplies. Inside
mobile classroom. By the end of 2021, the
the truck, a digital space with smart devices like laptops,
LED screens, VR goggles, smartphones, and routers, has project had provided more than 700 hours
been set up. Thanks to the wireless broadband available of training to over 1,500 people in nine
on the truck, students can access the Internet, learn
French cities.
digital skills, and try the VR devices and other innovative
educational tools.

By the end of 2021, DigiTruck had provided


more than 38,000 hours of training to over
2,100 young people in Kenya.

DigiTruck in Kenya empowering people


DigiTruck in France providing digital skills courses
in remote rural areas with digital skills

24 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Digital Inclusion

DigiSchool: Enabling Scientific and Digital Literacy in K12 Schools

As Progress in International Reading Literacy Study points


out, 78% of grade four children in South Africa lack
basic English reading comprehension skills during the
literacy foundation phase from grades one to three. To
address this challenge, Huawei launched the DigiSchool
project in partnership with the local carrier Rain and the
educational non-profit organization Click Foundation.
The project aims to help all children in South Africa read
fluently and comprehend what they are reading by the
end of grade three.
DigiSchool in South Africa helping primary school children
By the end of 2021, the project had connected over 90
improve their English reading comprehension skills
schools and reached more than 50,000 students.

With digital education, we're not only addressing the literacy crisis, but also equipping young
learners with the digital skills required for future success.

— Nicola Harris, Chief Executive Officer of Click Foundation

In 2021, Huawei also launched the DigiSchool project in


China to improve the scientific and technological literacy
of rural students and teachers. Building on its cutting-
edge ICT innovations and knowledge, Huawei developed
a series of STEAM courses, opening the door of the
technology world to teachers and students in remote
rural areas. By the end of 2021, we had delivered the
first phase of the project in rural schools in midwestern
China, benefiting more than 400 teachers and students.

DigiSchool offering STEAM courses to inspire the


creativity of primary school children

In 2020, Huawei joined China's Green Pepper program.


This initiative provides online vocational training for
young teachers in rural areas who have been in the
job for between one and three years. It is hoped that
this will encourage more teachers to join and remain
in rural schools, as well as improve teaching quality.
Huawei's WeLink application plays an essential role in
this program, acting as a digital connector to offer an
open, intelligent, and collaborative learning platform
for teachers. Since its launch in 2020, the program has
benefited more than 35,000 teachers.
Huawei joined China's Green Pepper program

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 25


Conserving Nature with Technology

According to a report released by the United Nations Environment Programme, climate change, biodiversity loss and pollution are
the three main environmental crises facing humanity. The 2021 UN Biodiversity Conference (COP15) and the 2021 UN Climate
Change Conference (COP26) highlighted the global consensus that we need to work together to address biodiversity loss and
climate change. To this end, Huawei is working with environmental protection organizations and partners on projects that aim to
explore the use of ICT to protect forests, wetlands, oceans, and nature as a whole.

All-optical Smart City Network: Allowing Elephants and People to Live in Harmony

A rescuer giving wild training to rescued elephants

Through wildlife protection efforts, the number of wild roam. The system has so far collected 1.43 million images
Asian elephants has increased in the tropical rainforest of and sent more than 6,000 warnings, greatly reducing
Xishuangbanna, China. As a result, their habitats overlap unplanned human-elephant encounters.
with the living spaces of local communities. Preventing
conflicts between elephants and people is a top priority
of local conservation efforts.
There have been zero incidents of human
China Mobile Yunnan and Huawei jointly built an
innovative network that helped Xishuangbanna build injury or other conflicts in the areas covered
China's first Asian elephant protection, monitoring, and since the system was deployed.
warning system. It consists of a warning broadcast system
that pushes warnings of elephant movements to locals — Tan Xuji, Director of the Asian Elephant Monitoring Center
on a mobile app if an elephant is detected. Monitoring of the Scientific Research Institute of Xishuangbanna
devices are deployed in places where elephants frequently National Nature Reserve of Yunnan Province

26 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Digital Inclusion

Protecting Against Invasive Species with AI

River managers and volunteers in Norway installing an underwater AI monitoring system

91%
Salmon is a pillar of the Norwegian economy, and wild salmon, also known as
the Atlantic salmon, is the basis for the healthy development of salmon farming
in the country. But large invasions of humpback salmon and escaped farmed
of wild salmon can be identified salmon are threatening the survival of wild salmon. These invasive species affect
using Huawei's Ascend AI the reproduction of wild salmon and also spread disease, threatening the health
technology, reducing manual of native fish species. The population of Norwegian wild salmon has decreased
workloads and protecting by half, and it has been listed as a near-threatened species by Norway.
biodiversity more efficiently
In 2021, Huawei and Berlevag JFF, an association of hunters and anglers in
Norway, collected images of river bottoms captured by underwater cameras.
They were then able to identify native and invasive fish species in the rivers
in real time with the help of Huawei's Ascend AI technology. The technology
can identify 91% of wild salmon, reducing manual workloads and protecting
biodiversity more efficiently. The project team provided the first comprehensive
and dynamic 24/7 report on fish information to local river conservation
associations, providing an accurate source of data for river governance efforts.
AI represents a ray of hope in the struggle to protect against invasive salmon
and conserve the biodiversity of rivers in Norway.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 27


Nature Guardian: Protecting Oases in Italy

The WWF has designated 100 protected oases in Italy. wireless network. AI analytics can identify sounds that
Two of these are Orbetello Lagoon and Burano Lake may constitute environmental threats such as chainsaws,
in Grosseto. Combined, they are home to almost 300 gunshots, or motorbike engines. The AudioMoth devices
species of birds. The third site is the Astroni crater in identify different animal species from their vocalizations,
Naples, which houses three lakes; a pristine Mediterranean monitor animal distribution and populations, and
forest; 130 species of birds; and large amphibian, reptile, determine factors that disturb them, including the effects
and insect populations. of climate change.

The main threats to these three hotspots of biodiversity Since its deployment in August 2021, the
are poaching, illegal logging, and unauthorized
Guardian system has collected and analyzed
recreational activities such as motocross and firework
displays, which can decimate habitats and start forest an enormous volume of acoustic data.
fires. For WWF rangers, patrolling these areas on foot, or A total of 15 alerts of potentially illegal
even on wheels, is time-consuming and labor-intensive.
activities across the three sites have enabled
Responding to incidents in real time is incredibly difficult.
WWF rangers to investigate incidents in
To help protect these ecosystems, Huawei partnered real time. At the site in Naples, one alert
with WWF Italy, the University of Pavia, and RFCx to
allowed local police and WWF rangers to
deploy 10 networked Nature Guardians and 45 offline
AudioMoth devices in the three sites. The Guardians seize equipment being used to illegally trap
can monitor environmental sounds from each site in animals.
real time, and transmit audio data to the cloud over a

The Director of Astroni Crater Nature Reserve installing an offline AudioMoth device to protect local ecosystems

28 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Digital Inclusion

Enabling Inclusive Health and Well-being

Huawei hopes that everyone at any age, including those living with a disability, can equally and easily benefit from technological
advances. That's why Huawei has created a wide range of products and services that offer information accessibility functions and
helped healthcare workers provide underprivileged groups with tailored, easily accessible services.

TrackAI: Diagnosing and Treating Visual Impairments in Young Children

4,500+
Diagnosing health issues in young children can be very difficult because they are
unable to communicate effectively. And nowhere is this more evident than in
babies born with a visual impairment. Congenital eye conditions and low vision
can go unnoticed in very young children, because they get used to it when children from five countries
they are still babies. A combination of these factors can make eye diseases have received visual examinations
incredibly difficult to diagnose early on in a person's life. However, most visual using TrackAI
impairments can be prevented or cured if caught early enough.

So how can we tell whether a baby can see properly? With current tools, only
highly experienced ophthalmologists can assess the visual functions in very
young children. To tackle the shortage of ophthalmologists and the difficulty
of diagnosing eye diseases in young children, the Spanish startup DIVE Medical
and Huawei jointly launched the TrackAI project. Through this project, children
with a visual impairment can be quickly identified with an easy-to-use detection
device. The device uses an eye tracker to monitor a child's gaze, while Huawei's
AI determines whether the child is suffering from any visual impairments.

Since the project was launched three years ago, more than 4,500 children from
five countries have received visual examinations.

A toddler receiving a visual examination using TrackAI

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 29


Information Accessibility: Creating More Possibilities

The beauty of technology lies in its potential to benefit Helping elderly people enjoy a digital lifestyle
all. Technology must not only cater to the needs of the
Huawei has developed learning materials and teaching
majority, but also be easily accessible to those in need.
practices specifically for elderly people, helping them
HarmonyOS has been built from the ground up with become familiar with smart devices.
accessibility as a key priority. This system offers a diverse
• Huawei developed the Mobile Phone Instructions
array of accessibility features like screen reader labels
for Parents, a guide that helps elderly people
and accessibility focus and gestures. HarmonyOS also
understand which functions are used in specific
offers an accessibility framework and APIs that allow
scenarios. It is now in its ninth edition. Users can get
third-party developers to create a greater number of
the print version free of charge at over 1,600 Huawei
accessibility features. We believe that accessibility is not
authorized service centers in China.
just for people with disabilities. Anyone can experience
impaired physical function, for example, when bedridden • Huawei developed the Bringing You a Digital Lifestyle
from illness or when eyesight deteriorates with age. series, which includes seven courses on basic mobile
phone use, safe mobile phone use, healthcare, smart
Visibility enhancements
travel, and entertainment. Users can sign up and
Zhongwei, who is now a piano tuner, has been visually attend these courses in more than 4,000 experience
impaired since birth. In 2015, he bought his first Huawei stores in China, or visit the stores anytime they want
phone, a P8max. Since then, Zhongwei has become very to inquire about how to use their phones. During the
familiar with the accessibility features on Huawei phones, 2021 Double Ninth Festival alone, more than 3,000
and they now provide him with important support in his sessions were delivered.
daily life. He particularly likes using the AI Life app, which
• Huawei's device stores work closely with local
can control and manage all of his household appliances and
communities, local authorities, activity centers for
smart devices. With the ScreenReader feature, Zhongwei can
senior citizens, nursing homes, welfare centers, and
turn on his air conditioner and easily adjust the temperature
apartment building managers to hold "Huawei Classes
and direction of the airflow on the AI Life app. When
in Communities" events. Seniors can learn at the store
friends visit, he can help them connect to his Wi-Fi network.
nearest to them and solve any issues they face with using
Zhongwei is effusive in his praise for the Huawei AI Life app:
their mobile phones. Zhang Yimin, a lecturer at a Huawei
"This is beyond what I could have imagined just a few years
device experience store in Jilin, gave 14 training sessions
ago. In the past, every device came with a dedicated remote
in the local community during his spare time in 2021. In
control. There was no voice command option. I sometimes
fact, there are many lecturers like Zhang at Huawei. They
needed help when using them."
are active in local communities and help elderly people
Hearing the beauty of classical Chinese poetry better enjoy the convenience and fun of smart devices.

Guoguo, who is hearing-impaired, hopes to use


technology to help remove the communication barriers
facing deaf people. For this reason, she became the
project leader for an intelligent sign language translation
program called Yiyu. Jointly developed by Huawei and
a local partner, the software translates speech into text
and sign language in real time, helping hearing-impaired
people access information more easily. While testing the
application, developers noticed that children in special
education schools struggled to understand classical
Chinese poetry because of a lack of sign language
vocabulary and grammar. To solve this problem, the
project team developed poetry courses with sign
language translations, allowing children to experience
the beauty of traditional Chinese literature through vivid
illustrations and signing by Yiyu's virtual interpreters.
These courses have been delivered in schools for the
A Huawei lecturer delivering the Bringing You a
deaf in several cities in China, and will be offered free of
Digital Lifestyle courses in a local community
charge in more such schools in the future.

30 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Digital Inclusion

Driving Inclusive Digital Development

An estimated 37% of the world's population have never used the Internet, many of whom live in remote rural areas. Through
its TECH4ALL initiative, Huawei is committed to bridging the digital divide and working with partners to promote individual
development for people in remote rural areas using our digital technologies. We also empower traditional industries to go digital
and help them offer safer working environments for their employees.

AirPON: Connecting the Unconnected

With high-speed broadband services, doctors in Thai villages can consult with specialists
in large cities through telemedicine devices

600,000
In the mountains of Chiang Mai, Thailand, a mountain road 60 kilometers long
provides the main access route connecting local villages to the nearest city.
However, flooding occurs whenever it rains due to the steep terrain and lack of
households now have access to drainage, and the road has earned the local nickname "Water Road". This rugged
high-speed broadband services mountain road and the lack of access are a great inconvenience to residents.
and 19,652 villages are connected
To improve this situation, the National Broadcasting and Telecommunications
to the Internet thanks to the USO
Commission (NBTC) of Thailand used Huawei's AirPON solution to implement the
NET project
USO NET project in the mountainous areas in Chiang Mai. During a field visit, the
project team found that the residents living in these areas were not just far from
the city, but also scattered across many small villages. A traditional FTTH solution
would be too costly, and it was difficult to find a suitable place to accommodate
all the required facilities. In contrast, Huawei's cost-effective AirPON solution can
repurpose existing poles and cables, with equipment rooms installed up on poles,
making communications services available and affordable to local residents.

By the end of 2021, the USO NET project had provided Internet access to
19,652 villages, including 3,920 border villages, and about 600,000 households
now have access to high-speed broadband services. Through this project, we
also provided targeted digital skills training to local people to further bridge the
digital divide between urban and rural areas.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 31


Gigabit Optical Network: Helping Boost China's Rural Economy

Guangxi is China's largest producer of dragon fruit. In • The automatic temperature control system sprays
Guangxi's Long'an, traditional farming methods meant and cools the trees in summer. In winter, heaters keep
hard labor for local people, as they have to perform both them within the optimum range, greatly increasing
fertilization and irrigation by hand. Moreover, young annual yields.
people from rural areas are reluctant to work in agriculture.
Mechanization and intelligence, both relying on high-speed • The visual tracking system monitors the growth of the
broadband networks, are the future of farming. fruit. With more than 40 GB of data generated every
day, the gigabit optical network quickly migrates the
Huawei helped China Telecom build a ubiquitous gigabit data to the cloud. Consumers can scan QR codes to
optical network across the urban and rural areas of see the place of production.
Guangxi that are covered by fiber. Thanks to the high
bandwidth, low latency, and highly reliable connectivity, In 2021, local communities generated additional revenue
Jinfu Farm was able to transform its farming methods of more than CNY15 million from dragon fruit, benefiting
from labor-intensive to digitally led. more than 40,000 low-income farmers.

• The integrated fertilization and irrigation management Advances in network and agricultural
system automatically irrigates up to 367 hectares of
technology are making a huge difference
land, freeing up fruit farmers from having to water
trees by barrel under the blistering sun. to local communities. They are making
agricultural production easier and the rural
• Sensors regularly monitor soil conditions, allowing
economy more dynamic, improving the
precise fertilization that in turn cuts fertilizer costs by
about CNY15,000 per hectare per year. quality of life for local people.

Advances in network and agricultural technologies are increasing the yields of dragon fruit and the incomes of farmers,
making a huge difference to villages in Guangxi

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Digital Inclusion

FTTM-powered Ultra-remote-control: Safer and More Efficient Port Operations

Ports underpin the global economy and serve as a barometer of economic Huawei's FTTM-powered
activity. However, working at container ports is incredibly labor-intensive.
ultra-remote-control
Crane operators need to work at a height of 40 meters, without access to food
or water for hours. They have to spend entire shifts with their heads tilted solution is enabling
downwards at the floor below, which has caused many serious neck issues. In workers at the Port of
addition, manual work is extremely inefficient.
Shanghai to conduct
Huawei's ultra-remote-control solution powered by Fiber to the Machine (FTTM) remote operations
allows port workers to intelligently load and offload cargo from the comfort of a from the comfort of
command center a hundred kilometers away. This solution has three key features:
a command center
• Low latency and large bandwidth: The solution ensures no video delay or 100 kilometers away
freezing and provides real-time visibility of equipment status at ports. from the port, and has
demonstrably improved
• Secure and reliable: It provides dual-link fiber connectivity and full-link
redundancy protection, enabling zero service interruptions. The solution's work safety and boosted
two-way link-level encryption improves both reliability and security. productivity.
• Easy to operate and maintain: The solution supports plug-and-play and
the service can be automatically provisioned. All equipment is centrally
managed and easy to operate and maintain, and equipment status is
visible and manageable.

Huawei's FTTM-powered ultra-remote-control solution improves work safety and productivity at the Port of Shanghai

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 33


3 Security and Trustworthiness
Cyber Security and Privacy Protection

Openness and Transparency

Supporting Stable Communications

Business Continuity

34 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Security and Trustworthiness

We live in a highly interconnected world, where the physical and digital


realms are converging and network boundaries are increasingly blurred.
Cyber security and privacy protection are ever more important. Over the
past year, a succession of critical vulnerabilities, supply chain attacks, and
advanced persistent threats (APTs) emerged. Cyber security threats have
become ubiquitous, arising in products, services, operations, internal
IT systems, supply chains, code, and personnel. Governments around
the world are paying greater attention to cyber security and privacy
protection, and have adopted laws and regulations to strengthen the
governance of cyberspace and protect personal data. With the rising
role and importance of data in all parts of our lives, data protection and
compliant data use are becoming a basic requirement.

As digital transformation accelerates across industries, the application of


new technologies – such as cloud computing, artificial intelligence (AI), 5G,
and big data – brings risks as well as opportunities. We need to consider
how to meet the increasingly strict compliance requirements of regulators,
and how to provide secure and trustworthy products and services that fulfill
our commitments to customers. We also need to embrace a defense-in-
depth approach to provide better security, ensure business continuity, and
improve efficiency and customer experience while protecting user privacy.
We also need to give people access to stable ICT services during major
incidents like natural disasters and pandemics. These are the challenges and
opportunities of the digital economy.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 35


Cyber Security and Privacy Protection

Over the past three decades, we have built more than 1,500 accordance with the General Data Protection Regulation
networks with carriers and helped millions of enterprises with (GDPR). With successive personal data protection laws
digital transformation. During this time, we have connected – such as China's Personal Information Protection Law –
over three billion people around the world and maintained being enacted and cross-border data transfer requirements
a solid track record in security. With digital transformation being imposed in different regions and countries, we have
picking up pace, we are acutely aware that cyber security will continuously improved our governance architecture and
become a cornerstone of the future digital world. Business technical capabilities, and incorporated privacy protection and
success will not be achieved without security, trustworthiness, cross-border data transfer requirements into R&D, services,
and privacy protection. We continue to place cyber security operations, and other aspects. Based on the governance
and privacy protection as a top priority. We are committed architecture and processes, we developed a series of IT tools
to confronting cyber security and privacy challenges and and platforms to improve compliance effectiveness and
opportunities through management transformation, management maturity, and provided transparent and clear
technological innovation, and open collaboration. We want to compliance processes and results. We handled over 20,000
foster a better life for all in the future digital world by offering data subject requests in a timely and effective manner,
secure and trustworthy products, solutions, and services protecting the rights of data subjects. We conducted 30
where personal data is lawfully used and always protected. internal and external audits in different countries across
business domains, and multiple subsidiaries have obtained
We continuously optimize our end-to-end cyber security and internationally recognized privacy protection certifications.
privacy protection assurance system, making sure that each
domain is constantly refined and up-to-date: Helping customers manage security risks through
technological innovation
Deepening trustworthiness transformation to
enhance software engineering capabilities and We continue to research, explore, and implement cutting-
cyber resilience, and building secure, trustworthy, edge fundamental technologies such as cryptography, AI
and quality products and solutions trustworthiness, confidential computing, and differential
privacy. Furthermore, we accelerate the application of
In 2021, we improved our internal off-the-shelf components security technology solutions to products, and continue to
of trustworthy technologies and product design platforms, introduce vulnerability mitigation, advanced threat detection,
and implemented the clean code mechanism to continuously data protection, and other technologies into ICT products,
improve code quality and reduce vulnerabilities. We also improving security and resilience.
enhanced threat analysis and trustworthy design, bringing
improvements to the security and resilience capabilities Take 5G base stations as an example. We deploy a wide
of products and solutions. We incorporated the software range of functions – including software integrity checks in
engineering capability enhancements into the Integrated the boot state, runtime software integrity measurement, and
Product Development Lifecycle (IPD 12.0). one-click security configuration checks – providing security
verification, hardening, and detection capabilities. We also
In terms of organizational changes, we strengthened the build intrinsic security for 5G to enable a more efficient
integration and continuous development of common integrated security protection system. In this way, we have
security capabilities. We set up a corporate-level vulnerability significantly enhanced cyber resilience.
management center based on the Product Security
Incident Response Team (PSIRT) to enhance common Additionally, we introduced application behavior detection
vulnerability management capabilities. We also integrated and other functions under device-cloud synergy to mobile
the Trustworthiness Enabling Department and IT Equipment phones, further enhancing privacy protection capabilities. We
Department at the product line level to help implement released AI situational awareness technology, which improves
software engineering capabilities through IT systems. the attack detection and audit capabilities of AI models and
protects AI model assets.
Consolidating privacy governance to respect and
protect user privacy Ensuring privacy and security for HarmonyOS users

We comply with privacy protection laws and regulations HarmonyOS is a next-generation operating system that can
in the countries and regions in which we operate. In 2016, run on a wide range of smart devices. It enables different
we established a unified privacy governance framework in smart devices to speak the same language, facilitating

36 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Security and Trustworthiness

better connection and collaboration, and bringing a expert lectures, knowledge quizzes, a Capture the Flag
simple, smooth, continuous, secure, and reliable interaction competition, a cyber security technology conference, and a
experience in all scenarios. verification conference.

At the outset, we emphasized the fundamental importance Continuously strengthening cyber security risk
of consumer privacy and security, implementing a system management and capability-building of the
security architecture and ecosystem management and control supply chain
framework to address these issues. With HarmonyOS, we
have built a security architecture for the Super Device. It We have established a comprehensive ISO 28000-compliant
implements hierarchical device security management, trusted supply chain security management system to identify and
device connections, distributed access control, and a security control security risks in the end-to-end process from incoming
collaboration platform to protect the security of consumers. materials to manufacturing and delivery to customers. We
have developed industry-leading materials security and
We have built a HarmonyOS application management and trustworthiness specifications, security sourcing test standards,
control framework to ensure that applications are protected and supplier security and trustworthiness maturity standards.
throughout the lifecycle, including the development, Suppliers must pass the security system certification and test
commissioning, release, installation, and running phases. In before they are admitted.
this way, we protect users from malicious applications and
ensure their privacy and security. In 2021, we conducted cyber security risk assessments
on more than 4,000 suppliers worldwide, and recorded,
Continuously enhancing secure and trustworthy tracked, and rectified the issues identified. We signed data
service operations processing or protection agreements with more than 5,000
suppliers and implemented privacy protection management
We continue to invest in the development of IT-based requirements for suppliers to ensure compliance. We also
capabilities for trustworthy operations and digitally ensure optimized the security baselines and verification processes for
transparent and traceable network operations. We set up an manufacturing and supply availability, and implemented them
operations trustworthiness lab to strengthen interconnection in the production and delivery processes of new products.
with global standards organizations and cutting-edge research
and we continued to develop capabilities to address emerging Given the great importance we attach to supply chain security
cyber security challenges. Our data security management requirements around the world, we have now obtained
system for carrier service support passed the external System 35 Authorized Economic Operator (AEO) certificates in 28
and Organization Controls 2 (SOC 2) audit, demonstrating countries and regions across five continents. We continue
the effective lifecycle management of such data. At the same to build a thriving security ecosystem together with our
time, we continued with the Network Safety Day campaign partners, and 25 of our logistics service providers around the
to increase cyber security awareness and risk control, working world have obtained Transported Asset Protection Association
with our customers to enhance cyber resilience. (TAPA) certificates. We continue to optimize our supply
chain tracking system, which is capable of tracing software
Steadily boosting awareness and professional and hardware from incoming materials to customer delivery
capabilities among all employees within hours, supporting rapid rectification and risk mitigation.

We encourage employees' continued participation in external Increasing investment in third-party independent


professional cyber security and privacy protection certification verification
programs. To date, more than 1,200 employees have
obtained industry-recognized certifications, such as Certified We continue working with industry-recognized certification
Information Systems Security Professional (CISSP), Certified bodies to test our cyber security capabilities against
Information Privacy Professional (CIPP) from the International international standards and best practices, providing
Association of Privacy Professionals (IAPP), and Certificate customers with internationally recognized security assurance.
of Cloud Security Knowledge (CCSK). We have established In 2021, we obtained more than 70 cyber security certificates.
a Cyber Security & Privacy Protection Knowledge Center For example, our 5G base station was the first to pass the
and released more than 200 Massive Open Online Courses NESAS/SCAS 2.0 evaluation in the industry, HarmonyOS
(MOOCs), facilitating rapid sharing and transfer of knowledge obtained high-level Common Criteria certification, the
within the organization. Intelligent Automotive Solution Business Unit (IAS BU)
obtained DEKRA ISO/SAE 21434 certification for cyber
To continuously improve cyber security and privacy protection security engineering of road vehicles, and our digital power
awareness among all employees, we held the Cyber Security products obtained the IEC 62443 certificate.
Awareness Month campaign, engaging about 150,000
employees online and offline through different activities. Such
activities included messages from top-level management,

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 37


HUAWEI CLOUD WeLink: A Secure Digital Workplace

With the advances in Internet technologies, the Empowered by these cutting-edge security techniques,
decentralized or distributed office model is gaining traction. WeLink features access control, leakage prevention,
More people are working remotely or from home. While encryption, anti-intrusion, and traceability.
we enjoy the benefits of more flexible work styles enabled
by technology, we must also be aware of our increased WeLink's security capabilities are renowned
exposure to security threats, such as cyber attacks and data
in the industry. By the end of 2021, WeLink
leaks, caused by distributed and mobile offices. Security is
the highest priority for digital workplaces. had received more than 50 security
certifications in and outside China, including
HUAWEI CLOUD WeLink comes with enhanced software
cloud service security system certification,
and hardware security features, allowing enterprise users
to protect their data from end to end. The solution offers Android Green Alliance purity level (highest),
the following features: ISO 27001 security system certifications,
• Security fencing that strictly controls device access level-3 information security evaluation by
• Security tunnels that protect data transmission and China's Ministry of Public Security, and
application access to ensure security Service Organization Controls audits (SOC 1,
• Protected messaging and file transmission that SOC 2, and SOC 3). Building on its security
ensures data flows in an enterprise securely capabilities, WeLink helps enterprises
• Data shields that ensure enterprise data flows within provide a digital workplace that is secure,
defined boundaries
efficient, and intelligent.
• Screenshot security that prevents data leakage

• Call encryption that ensures each call is encrypted


with a unique key and can only be accessed by parties
to the call

Security audit
Secure watermarking Traceability
technology

Secure container
Anti-
Data safes
intrusion
VPN Leakage
Data leakage prevention prevention
Deployed across
Regions
Encryption High-availability services

Device encryption Intrusion prevention


Chip-level encryption Real-time sensing and
Access
using Chinese national control Privacy protection blocking
cryptographic algorithms Encryption and
anonymization
Device authentication
Exclusive enterprise account Link encryption
Data hijacking prevention

WeLink's end-to-end security features

38 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Security and Trustworthiness

Openness and Transparency

Cyber security and privacy are a common challenge, one that all
stakeholders – including governments, industry and standards
organizations, enterprises, technology suppliers, and consumers
– have a shared responsibility to address. We reiterate our
commitment to communicating and collaborating with all
stakeholders in an open, transparent, and responsible manner, so
that we can jointly improve cyber security and privacy capabilities
and address the challenges through technological innovation,
knowledge sharing, standards development, verification, and
other measures. We strive to continually improve cyber security
Huawei UAE Chief Security Officer reporting to the
and personal privacy, enabling everyone to enjoy all of the
chairman of the CSC at UAE Cyber Security Week
benefits brought by technological advances. In 2021, we made
the following key achievements in external cooperation:

In the UAE, we deepened our cooperation with the Cyber


In Singapore, we joined the SG Cyber Safe Partnership Security Council (CSC), and played an active role in the
Programme launched by the Cyber Security Agency (CSA) as construction of the local cyber security ecosystem and the
an "Advocate" partner. We will deepen our cooperation with improvement of regional cyber security awareness and
the CSA in product and service development and community capabilities. We won the "Cybersecurity Company of the Year"
outreach activities to further boost the cyber security and "Cybersecurity CEO of the Year" awards.
awareness of local businesses and the public and promote
cyber security best practices and good cyber security hygiene.
In Thailand, we worked with the National Cyber Security
Agency (NCSA) to organize the participation of more than
In Malaysia, we worked with the national cyber security 600 professionals in the Cyber Top Talent competition, helping
specialist agency CyberSecurity Malaysia (CSM) and mobile identify and select local cyber security talent. As part of the
telecommunications provider Celcom to build a Cyber Security partnership with the NCSA, we will assist them in building a
Test Lab (My5G), helping Malaysia improve its cyber security dedicated e-lab to provide in-depth training on cyber security
capabilities and setting the stage for 5G deployment. At the technologies and standards for local organizations and talent.
Cyber Security Malaysia Awards, Conference & Exhibition
(CSM-ACE) in December, the Ministry of Communications
and Multimedia Malaysia released My5G, and Huawei was In Germany, Huawei supported the Federal Office for
awarded "Cyber Security Innovation of the Year" by CSM. Information Security (BSI) in the release of the AI Cloud
Service Compliance Criteria Catalogue (AI C4) by providing
relevant suggestions based on a use case pilot project. AI C4
In Indonesia, we renewed the Memorandum of Understanding is the industry's first security standard for AI cloud services. In
(MoU) on cyber security cooperation with the National Cyber December 2021, Huawei Cloud OCR service officially passed
and Crypto Agency (BSSN), reaffirming our commitment to the AI C4 attestation conducted by an independent agency.
sharing cyber security knowledge and supporting Indonesia's
plan to develop cyber security and digital transformation
professionals. We became a member of the Organisation of the Islamic
Cooperation-Computer Emergency Response Team (OIC-
CERT), the world's third largest computer emergency response
China Mobile and Huawei set up a joint innovation center on 5G organization, and actively participated in the OIC-CERT 5G
security in Zhejiang Province. To address the typical cyber security Security Working Group to develop a 5G cyber security
requirements of industries, such as manufacturing and power framework for risk assessment and management, aiming
grids, the center incubates different security solutions, including to help member states improve their 5G cyber security
network element security risk detection, multi-access control over management capabilities.
terminals, slice security isolation, and mobile edge computing
security services. In this way, the center aims to continuously
enhance the security capabilities of 5G networks, safeguarding In the mobile communications field, we submitted more
the digital transformation of industries. One of the center's key than 400 cyber security proposals to 3GPP and GSMA,
innovation achievements – 5G service-based security capability maintaining our longstanding industry-leading position. We
safeguards to support digital transformation in manufacturing also submitted proposals on remote attestation security
– won first prize in the application security final of China's 4th architecture, interaction models, YANG data models, and
Blossom Cup 5G Application Contest. This center was selected by campus IoT device access security to international standards
the Ministry of Industry and Information Technology as the 2021 organizations, including ETSI, IETF, ITU-T, and CCS. These are
innovation demonstration center for 5G application security. just a few examples of our many continuous contributions to
the development of industry security standards.

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Huawei's Largest Global Cyber Security and Privacy Protection Transparency Center in Dongguan, China

Huawei's largest global Cyber Security and Privacy Protection Transparency Center opened in Dongguan, China,
providing a communication and collaboration platform for global stakeholders

In June 2021, Huawei opened its largest global Cyber To address these issues, Huawei opened a new global
Security and Privacy Protection Transparency Center Cyber Security and Privacy Protection Transparency
in Dongguan, China, providing a communication and Center in Dongguan. Based on Huawei's expertise in
collaboration platform for global stakeholders. The governance and technologies, the center is designed to
opening ceremony was addressed by representatives demonstrate solutions and share experience, facilitate
from GSMA, SUSE, the British Standards Institution, communication and joint innovation, and support
and regulators from the UAE and Indonesia. Along with security testing and verification. It will be open to
the opening of the new center, Huawei released the global stakeholders, including Huawei customers and
Huawei Product Security Baseline. This marked the first independent third-party testing organizations.
time the company made its product security baseline
framework and management practices available to the
Huawei's aim with this center is
entire industry. These actions are part of the company's to strengthen communication and
broader efforts to engage with customers, suppliers, collaboration with stakeholders to promote
standards organizations, and other stakeholders to jointly
common security standards, technological
strengthen cyber security across the industry.
innovation, security governance, testing,
A common understanding shared by the speakers at and verification, and more. We look forward
the opening event is that industries worldwide are to collaborating with all stakeholders to
taking cyber security more seriously, with more laws,
build cyber security and privacy protection
regulations, and technical standards being introduced.
However, the industry still lacks a coordinated approach, capabilities, share value, and embrace both
especially when it comes to cyber security governance, challenges and opportunities to foster a
technical capabilities, and collaboration. better life for all in the future digital world.

40 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Security and Trustworthiness

Supporting Stable Communications

ICT infrastructure provides information and communications network services, so it is imperative that stable operations are
maintained at all times. As a network equipment and solution provider, Huawei must support the stable operations of customer
networks and services during all types of emergencies, including wars and epidemics, and natural disasters like earthquakes, floods,
and tsunamis. This is one of Huawei's primary responsibilities.

In 2021, the world was still affected by the COVID-19 pandemic, which posed a huge challenge to network stability. More than
5,000 Huawei engineers worked side by side with our customers, providing technical support services 24/7. Together, we supported
the stable communications of more than three billion people and provided timely responses to more than 180 major events and
emergencies worldwide.

Earthquake Relief in China's Yunnan and Qinghai Provinces

On the night of May 21, 2021, a 6.4-magnitude of the network assurance team of Huawei's China
earthquake hit Yangbi Yi Autonomous County in China's Region. The project team was immediately dispatched to
Yunnan Province, followed by intensive aftershocks the affected areas, where they worked with local carriers
affecting 12 counties across the Dali Prefecture. The and government workers on emergency repairs to
next morning, a 7.4-magnitude earthquake struck restore communications as fast as possible and support
Maduo County in the Golog Tibetan Autonomous stable network operations. In Yangbi, the Huawei team
Prefecture in Qinghai Province, followed by 1,872 worked alongside customer engineers for 28 hours and
aftershocks over two days. restored all 32 sites affected by the earthquake. In Golog,
11 China Telecom base stations and 19 China Unicom
In the immediate aftermath of these two disasters, ones were disrupted by the earthquake. Huawei and the
Huawei initiated an emergency assurance plan. The customers restored all of them within five hours after the
Yunnan and Qinghai representative offices quickly earthquake, providing strong communications support
established a network assurance team with the support for local emergency relief efforts.

Earthquake emergency support in Golog, Qinghai

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Emergency Support During a Heavy Rainstorm in Henan, China

From 8 a.m. on July 20 to 6 a.m. on July 21, 2021, a communications services in all affected areas.
heavy rainstorm struck the central and northern parts
of the Henan Province, China, setting new records for During this process, Huawei was aware of many
rainfall in a single day. The rainstorm caused severe possible EHS risks, including manhole covers on
damage to the city of Zhengzhou and surrounding some road sections bursting open or collapsing,
areas. There were large-scale disruptions to power electric shocks during emergency repairs, waterlogged
supplies, network equipment rooms were flooded, and buildings collapsing, and the transmission of infectious
optical cables and infrastructure were severely damaged. diseases. We set up an EHS team, specified key safety
As a result, a large number of mobile network base processes, and provided training to ensure the health
stations were no longer functioning. Communication and safety of our network assurance teams.
networks in affected areas were disrupted, which made
it impossible to make phone calls or access the Internet.
Communication disruption also made flood control
During the disaster relief process,
command more difficult. Restoring communications Huawei's professional emergency
services was a key priority. response plan and efficient organization-
Our network assurance teams in the China Region
wide collaboration helped minimize losses
gathered immediately, initiated our emergency assurance and allowed people in affected areas to
plan, and began to repair networks and provide onsite quickly get back on track. Our efforts to
support. Working with local carriers around the clock
for 16 days, we repaired tens of thousands of mobile
fulfill our social responsibility won praise
sites and core equipment rooms, and quickly restored from local communities.

Huawei engineers transporting emergency repair equipment in the rain

42 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Security and Trustworthiness

Network Recovery and Disaster Relief Following a Flood in Oman

Huawei donating supplies to affected local residents

On October 3, 2021, Tropical Cyclone Shaheen relief from supermarkets and worked with the local
slammed into Oman, followed by heavy rainfall, flash government overnight to deliver supplies to the rescue
floods, and widespread waterlogging. Some telecom stations in four severely affected areas, helping local
equipment was severely damaged, causing significant people through the difficult time.
difficulties for local residents.
Huawei's quick response and timely support
On the morning of the same day, Huawei Oman set
for disaster relief were appreciated by
up a joint work group with the customer. The network
assurance team also set out to repair the telecom local customers, the government, and the
infrastructure in the affected areas. About 70% of community. This is part of our commitment
local communications services were restored within
to becoming an active, productive member
12 hours and 90% within 48 hours. On October 5, the
network assurance team purchased supplies for disaster of local communities.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 43


Emergency Response to Typhoon Rai in the Philippines

On the afternoon of December 16, 2021, super typhoon an emergency response workgroup and dispatched 30
Rai slammed into the Siargao Island in southern teams to Visayas and 23 to Mindanao for emergency
Philippines. Sustained winds of up to 195 km/h hit repairs, with more than 50 engineers providing remote
the area until the early hours of December 19. The support. Huawei teams restored communications in
typhoon swept across the Visayas region, northern and all the affected islands. This involved more than 140
northeastern islands in Mindanao, and SLZ Palawan. backbone microwave hops and over 110 sites.
More than 332,000 people were evacuated from the
hardest-hit villages. Transportation and communications
on some islands were disrupted, as were water and Huawei's quick response and strong
power supplies. Basic supplies and communications on
support were commended by the customer,
these islands were severely impacted.
demonstrating its commitment to fulfilling
After the disaster struck, Huawei immediately set up its responsibilities to local communities.

Huawei providing timely support to restore a communications tower damaged by the typhoon

44 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Security and Trustworthiness

Communications Support in the Malaysian Floods

The Huawei maintenance team restoring a damaged network

On December 19, 2021, Malaysia was hit by one of the To ensure the fast recovery of services at key sites,
worst floods to hit the region in 50 years. Heavy rain maintenance and supply chain personnel of the
wrought havoc across seven states, including Selangor, representative office waded into the warehouse to
Terengganu, and Pahang. One of the worst hit cities was get boards, taking 44 of them to the sites. Our team
Klang in Selangor, where waterlogging and disruption of immediately purchased generators for customers to put
transportation, electricity and communications left many up emergency sites. The 15-member technical team of
people displaced. the representative office was divided into seven groups,
which went to the sites in shifts. They restored services at
Upon request for disaster relief, Huawei's Malaysia Rep all key sites in four days, giving people in affected areas
Office immediately activated an emergency assurance access to critical communications services and facilitating
plan and set up an assurance team. The maintenance the broader disaster relief efforts.
team of each account department assisted carrier
customers in locating and mapping affected sites within Huawei rose to the occasion at critical
30 minutes. The spare parts team immediately moved junctures to support stable communications
boards and spare parts to be used in the repair and
maintenance to high places and ensured their integrity. for the local people, winning acclaim from
This was key to the subsequent quick repairs. customers.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 45


Business Continuity

In today's highly globalized and highly specialized world, Huawei's operations rely heavily on third parties. This makes business
continuity management (BCM) critical. Through years of sustained investment, Huawei has established a BCM system for domains
such as R&D, procurement, manufacturing, logistics, and global technical services. This system covers our end-to-end processes,
from suppliers to Huawei and on to our customers. As part of this system, we have developed and established effective measures
to drive BCM and emergency response upskilling across organizations, allowing them to manage risks that arise during daily work.
We have built up management organizations, processes, and IT platforms; embedded key BCM elements into our product design;
prepared business continuity plans and emergency management plans; and organized BCM training and drills for employees.

BCM Policy

BCM Business Impact Risk Strategy Exercising & Maintenance &


IMP/BCP Training
process Analysis Assessment Selection Testing Improvement

Incident Management Plan (IMP)

Conflicts Earthquakes Storms & Epidemics Fires Strikes Traffic Economy/ Politics/
typhoons accidents Trade Policies

Supplier Regional offices, rep offices and ex-China departments Customer


BCM BCM

Business Continuity Plan (BCP)

R&D Procurement Manufacturing Supply chain


Service delivery /
Network support
Finance IT HR Admin

Departments & responsibilities, operational mechanisms, execution & assessments

Huawei Business Continuity Management System

46 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Security and Trustworthiness

Key Initiatives for BCM in R&D and manufacturing and supply capabilities are shared between
Procurement Huawei and EMS suppliers and between multiple EMS
suppliers to ensure we always have a backup. We have
• Supply chain diversity: Huawei sticks to its strategy of also established supply centers in Shenzhen, Europe, Latin
maintaining a globalized, diversified supply chain. When America, and Dubai, which serve as integrated equipment
designing a product, we strive to source raw materials, backups for each other.
boards, and products from more than one supplier,
actively expand the pool of supply resources, and prioritize • Spare part reserves to support full-lifecycle operations:
the supply diversity of raw materials. We prefer suppliers Huawei reserves spare parts according to market
that have multiple manufacturing sites and avoid relying demand and historical usage before a product reaches
on any single supplier or region to safeguard supply its end of life (EOL). After a product reaches its EOL, we
availability. reserve enough spare parts to cover the full lifecycle of
all remaining products. This prevents any impact on the
• Scenario-specific stockpiles: During mass production, operational continuity of live customer networks.
we prepare safety stock of high-risk raw materials, semi-
finished products, and finished products. This allows us to Over the past decade, we have weathered many crises, from
better address customer requirements and uncertainties natural, political, economic, and trade-related conflicts to
from various sources, including supply availability, trade armed conflicts in some regions. Despite the lasting effects of
conflicts, and force majeure events like the COVID-19 COVID-19, Huawei continued to ensure supply continuity and
pandemic. timely delivery to our customers. This shows that Huawei's
BCM system – as part of our overall management system –
• Supply and demand visibility: Huawei works closely is functioning as intended. Huawei is a global company that
with suppliers to ensure that demand forecasts, purchase works in the network infrastructure, IT infrastructure, cloud
orders, and supplier inventory are all visible through IT services, and smart device domains. We have worked with
systems. This ensures that we receive timely demand over 10,000 suppliers and partners, and fostered sound, long-
information and have adequate supply. term partnerships with them.

As a staunch advocate of globalization, we will continue to


Key Initiatives for BCM in Manufacturing pursue supply chain diversity. We aim to develop sustainable
and Spare Parts Supply and stable supply capabilities to prevent dependency on any
single supplier, country, or region. Based on the principles of
• Manufacturing and supply resource backups: Huawei collaboration for shared success and mutual development,
considers in-house manufacturing and outsourcing Huawei is confident in its ability to work with partners around
capabilities to be of equal importance. We have the world to forge a secure, reliable, competitive, and healthy
established long-term strategic partnerships with multiple value chain. We will continue to deliver quality products,
electronics manufacturing service (EMS) suppliers. Board solutions, and services to our customers worldwide.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 47


4 Environmental Protection
Reducing Carbon Emissions

Promoting Renewable Energy

Contributing to a Circular Economy

Environmental Certifications

48 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Given the pressing issue of climate change, nations are increasingly


looking towards green development. It is now more important
than ever to shift to green, low-carbon work and lifestyles that
enable sustainable development. Many organizations, companies,
families, and individuals around the world are moving towards green
development, and ICT solutions, like 5G, cloud, and AI, are playing a
critical role in this process.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 49


Huawei's Action Plan in Environmental Protection

Huawei believes that technology plays a key role in addressing environmental challenges and protecting nature, and that
digitalization and decarbonization are the two drivers of green development. Since Huawei proposed its green pledge of "Tech for
a Better Planet" in 2019, we have been actively tackling climate and environmental challenges. We focus on using ICT solutions to
reduce carbon emissions, promote renewable energy, and contribute to a circular economy, so as to protect our planet.

Reducing carbon emissions Promoting renewable energy Contributing to a circular economy


We use managerial and technical We use technologies like photovoltaics We are moving to a less resource-intensive
measures to reduce the carbon footprint and AI to improve the utilization of and more sustainable mode of development.
of our products. We also engage with our renewable energy, drive the transition Our actions include selecting more eco-friendly
upstream and downstream partners to to renewable energy, and provide green materials, reducing the use of raw materials
reduce their environmental impacts and power for the intelligent world. and single-use plastics, making products
work together to build a greener supply more durable and easier to disassemble, and
chain. Our innovative ICT solutions can improving our product recycling program.
help other industries reduce their carbon
emissions, and we take every responsible
step that we can to cut carbon emissions.

While actively pursuing green development during our own


operations, Huawei has also envisioned green development trends
for key industries by 2030. Through these efforts, we hope to work
with our industry partners to create greater business value for our
customers, continuously use our innovative digital technologies to help
other industries conserve energy and reduce emissions, and ultimately,
contribute to global sustainable development.

50 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Reducing Carbon Emissions

In 2021, Huawei updated its environmental protection related policies, aiming to reduce carbon emissions across the entire value
chain. Below are key points of the policies.

Huawei is committed to green manufacturing. We aim to minimize environmental impact and extract
the maximum value from resources while ensuring that products deliver the desired functions with high
quality and at low cost. Huawei is also building green and eco-friendly campuses. The actions we take
include using as much clean energy as possible, minimizing resource consumption, reducing the waste we
produce, and efficiently using and recycling resources as much as technology and budgets allow.

In line with customer requirements


Green and industry best practices, Huawei
operations has incorporated environmental
Huawei has integrated green
requirements into our supply
development into product planning,
chain management processes.
design, R&D, manufacturing,
Environmental factors are considered
delivery, and services. We use
during sourcing of materials,
technological innovation to get
manufacturing, transportation,
more value from less resources;
and delivery to ensure that
provide customers with leading, Green Green suppliers comply with all applicable
eco-friendly products and solutions;
products supply chain environmental laws and regulations.
and enable energy conservation
We are also offering appropriate
and emissions reduction across
incentives to encourage suppliers
other industries.
to make ongoing improvements.
Our ultimate goal is to build a
competitive, green supply chain.

Based on these policies, Huawei continues to innovate and deliver more energy-efficient products, roll out energy-saving projects
on its campuses, use as much clean and renewable energy as possible, and encourage and train suppliers to set energy saving and
emissions reduction targets to build a green value chain.

Green Products: Enabling Industrial Energy Savings and Emissions Reductions

We take action at the very source to reduce the carbon footprints of our products throughout their lifecycles and help customers
save energy and cut emissions. We also use our innovative ICT solutions to enable digitalization and decarbonization in other
industries and scenarios like energy, transport, and campuses. Through our ongoing efforts, the average energy efficiency of our
main products in 2021 was 1.9 times higher than we had in 2019.

» Green and Low-carbon Data Center Construction and Operations

Data is a key asset within our booming digital economy. Data centers are responsible for storing, computing, and switching data.
They are at the heart of the digital economy and will play a key role in reducing power usage and increasing energy efficiency.
Huawei's innovative technologies, such as cluster computing, full liquid cooling, all-flash storage, and intelligent management, can
enable green and low-carbon data center construction and operations.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 51


Prefabricated Modular Design and Full Liquid Cooling to Reduce the Carbon Emissions of
AI Computing Centers Throughout Their Lifecycles

As we enter an intelligent world, demand for computing • The solution's Atlas 900 AI cluster uses full liquid cooling,
power will rise, which in turn will increase demand for data bringing the PUE of the data center down to 1.1, much
center power density. It takes about one or two years to lower than when air-cooled clusters are used.
build a conventional data center, meaning new data centers
often struggle to keep up with modern AI infrastructure and • This computing center delivers 1.6 times as much AI
ever-growing customer demand. In addition, the current computing power per node as industry counterparts.
approach to constructing and operating data centers is Its high level of integration means less equipment is
resource intensive and extremely inefficient. required, reducing the space needed in equipment
rooms by nearly 40%. This also means that fewer
To overcome these challenges, Huawei's innovative AI support facilities are needed in the computing center,
computing center solution uses a steel prefabricated design, equaling a smaller footprint.
which marks a big step towards green and low-carbon data
center construction and operations. • The network at the computing center uses intelligent
lossless technology that features zero packet losses,
• This solution uses much less concrete than a conventional which increases computing efficiency and cuts power
concrete building, offsetting carbon emissions in the consumption per unit of computing power by 47%.
construction phase by more than 90% 1.

The Wuhan AI Computing Center uses Huawei's AI computing center solution to offset carbon emissions
by more than 90% during construction and saves nearly 700,000 kWh of electricity per 100 PFLOPS during operations,
equal to offsetting carbon emissions by 333 tons 2

1
Calculated according to National Standard for Building Carbon Emission Calculation GB/T51366-2019

2
By International Energy Agency emission factors

52 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

All-flash Storage for Green and Energy-efficient Data Centers

Storage systems are critical to data centers, but the if an HDD is replaced with a flash storage drive, 981
amount of electricity they use accounts for 16% to 30% kWh less electricity will be used every year, equivalent to
of the total amount used by data centers. Based on our offsetting carbon emissions by 466 kg*.
study of storage power-saving technologies, we have
found that 50% of the power consumed by a traditional Huawei's all-flash data center solution uses upgraded
hard disk drive (HDD) comes from the hard disk unit, architecture, media, algorithms, and networks for flash
which consumes 200 kWh of electricity per PB each storage. It delivers industry-leading performance and
day. A typical big data center has a capacity of 100 PB, advanced data reduction technologies and decouples
meaning its annual power consumption can reach 7.3 storage from computing, greatly reducing server resource
million kWh. waste. The solution increases data center storage
performance fivefold, reduces the number of storage
Therefore, we believe that advanced media are essential racks required by 84%, and cuts power usage by 78%.
to reduce power usage in storage systems. Flash storage
drives can read and write over 100 times faster than Huawei's all-flash data center solution has been
HDDs, and have a capacity 5–10 times larger than deployed in multiple industries including banking and
HDDs. With its strong data reduction capabilities, a flash healthcare, helping our customers build green and low-
storage drive can provide 17 times the capacity of an carbon data centers.
HDD using the same amount of energy. That means

* By International Energy Agency emission factors

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 53


» Higher Energy Efficiency for Green and Intelligent Connectivity

Connectivity is one of Huawei's core businesses. Huawei offers solutions for every part of network construction, including all-optical
connectivity, simplified 5G sites, and site power facilities. These innovative technologies help make networks more energy efficient
and drive the shift to green and intelligent connectivity.

FTTR for Home Solution: Bringing Green Connectivity to Every Home

Our homes are rapidly becoming multi-functional life of over 30 years, and can transmit signals even
centers for life. They are places where we live, study and without a power supply.
work, and can even serve as modern cinemas. Home
• Optical fiber has large capacity, eliminating the
broadband networks are key to achieving this. Most
need to replace cables when network bandwidth is
home users now use traditional optical modems, network
upgraded. This significantly reduces the use of mineral
cables, and Wi-Fi routers for networking. However, this
resources compared with copper cables.
method is often plagued by poor network performance
and user experience, and high power consumption. • The primary gateway used in the FTTR solution serves
as both a broadband access gateway and a Wi-Fi
To address these challenges, Huawei has released its router. This two-in-one design can cut power usage
FTTR for Home solution based on fiber networking. The by 50%. The panel-shaped secondary gateways are
solution replaces traditional network cables with optical compact and easy to install and they use 30% less
fiber for Wi-Fi networking by deploying one primary power than conventional routers, with a single gateway
FTTR gateway and several secondary FTTR gateways. In using just 1 kWh of electricity every five days.
each room, a Huawei OptiXstar home gateway connects
separately to the Internet to provide Wi-Fi 6 wireless Huawei's FTTR for Home solution has
access. This prevents signal attenuation caused by thick
helped 83 provincial-level carriers in China
walls and eliminates blind spots in homes. The solution
also slashes power consumption and contributes to green deliver better user experience and enabled
all-optical networks. more than 300,000 users to build greener
home networks. In 2021 alone, the solution
The solution delivers the following benefits:
helped reduce electricity usage by over 45.6
• It uses optical fiber for networking, which reduces the
amount of space needed for cabling by about 15%. million kWh, equivalent to offsetting carbon
Optical fiber is also corrosion-resistant, has a service emissions by 21,660 tons*.

A Huawei OptiXstar home gateway used in the FTTR for Home solution

* By International Energy Agency emission factors

54 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Green 5G for a Low-Carbon Future

In 2030, the amount of data used per person per month • High-efficiency antennas, which use Huawei's signal
will increase to 600 GB. In the long term, multi-band direct injection feeding (SDIF) technology that
and multi-mode mobile networks will have to work integrates internal components to reduce energy
together to meet users' increasing network demands. At usage. This can help carriers reduce the transmit
the same time, carriers are shifting to green and low- power of a base station by 20%, which translates into
carbon network construction. Great numbers of wireless lower power consumption.
sites are scattered across wide areas, and making these
sites greener is a top priority for carriers when they China Mobile Tianjin, for example, has been plagued
are working to reduce their carbon footprints. Huawei by the increasing complexity of its sites as they have
has developed multi-antenna, ultra-wideband, and evolved from 2G to 3G and 4G. With Huawei's simplified
high-efficiency antennas, helping carriers build green 5G sites, they have managed to replace equipment
5G networks that deliver both high performance and rooms with cabinets, increasing site energy efficiency to
high energy efficiency. Huawei's solutions deliver the 90%. In some cases, cabinets were even replaced with
following benefits: poles, increasing site energy efficiency up to 97%. These
measures have helped the carrier deploy more 5G sites
• Multi-antenna AAUs and MetaAAUs, which use a without increasing energy consumption.
new architecture that doubles the number of antenna
arrays and reduces power consumption by 30%.
After upgrading 3,000 of its 5G sites to
• Ultra-wideband RRUs with each module supporting up green ones, the carrier saw its annual
to three frequency bands while using 28% less power. carbon emissions drop by 35,000 tons.

» ICT Enables Green Development of Industries

Huawei is delving deep into industries like transport, energy, and buildings to better understand their requirements for carbon
reduction and energy-saving. In doing so, we have explored how to use ICT solutions like AI, IoT, big data, cloud, and 5G to
empower these industries to go green and low-carbon.

Bringing Digital to New Energy Vehicles for Faster Electrification

According to the International Energy Agency (IEA), the • For charging, Huawei's full-stack high-voltage platform
share of emissions in the transport sector will increase to solution for power domains delivers 200 kilometers
27% of the global emissions by 2030. Full electrification worth of power with just a 10-minute charge.
of the transport sector will be an important step in
• For range, the solution's intelligent oil cooling and
reducing carbon emissions.
AI-driven efficiency optimization technologies increase
ePowertrain efficiency by 3%. The solution uses
The electric vehicle industry is developing rapidly, but
multiple converged algorithms to improve the available
charging, range, and safety remain the three major
capacity of batteries. These features combined boost
concerns that put consumers off from going electric.
range by 8.5% without additional batteries.
Huawei's full-stack power domain solution DriveONE
improves charging and range experiences, helping • For battery safety, the solution uses AI to provide early
promote broader adoption of new energy vehicles and warnings about battery thermal runaway 24 hours
accelerating the electrification process. before it occurs, making vehicles safer.

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Huawei CloudCampus: Building an Intelligent Campus with Better Visualization and Power Saving

Huawei's CloudCampus 3.0 solution helps Xi'an Jiaotong University reduce electricity use by 4.27 million kWh every year,
equivalent to offsetting 1,959 tons of CO2 emissions

Energy consumption from campus buildings mainly The solution supports remote control for electrical
occurs from elevators as well as lighting, air conditioning, equipment. For example, with big data analytics,
and fire monitoring systems. These systems need to be elevators that are less frequently used can be shut
effectively controlled to enable intelligent energy-saving down during holidays, and lighting and air conditioning
without undermining the environment. systems can be shut down when buildings are empty.

Huawei's CloudCampus 3.0 solution connects these The solution also supports intelligent energy efficiency
energy-intensive systems to a network through an management, on-demand use, and precise power-
IoT edge gateway. The solution works with Huawei's on and power-off of equipment. Such an intelligent
AI-empowered intelligent campus management approach can drive greater power savings, helping
platform to visualize campus management. This has campuses cut energy consumption by about 5% to 6%.
helped users build smart, secure, and energy-efficient
campuses. For example, Xi'an Jiaotong University has deployed this
solution and built more than 700 new smart classrooms
The AI-empowered intelligent campus management across its four campuses. They use the solution to
platform displays the past and present power intelligently manage lighting systems, projectors,
consumption of each building and each piece of teaching devices, and air conditioners. This translates into
equipment in real time, with sensors showing the real- higher O&M efficiency and smaller carbon footprints.
time temperature of each room. A heat map of wireless The solution is expected to help the university reduce
access points (APs) shows the distribution of students electricity use by 4.27 million kWh every year, equivalent
and staff across campuses. to offsetting 1,959 tons of CO2 emissions*.

* By International Energy Agency emission factors

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Environmental Protection

Green Operations: Constantly Innovating in Energy Conservation and Emissions Reduction


and Reducing Resource Consumption

Huawei prioritizes low consumption, low pollution, and high efficiency in its own operations, striving to build resource-efficient
and eco-friendly company campuses. We use as much renewable and clean energy as possible at the source, apply technical and
managerial measures to save energy during our operations, properly dispose of hazardous waste, and comply with environmental
requirements. These efforts have enabled us to save energy, improve resource utilization, reduce waste, cut costs, and achieve more
efficient, sustainable, and low-carbon operations while ensuring business continuity.

» Lower Energy Consumption, Greener Campuses

To reduce energy consumption on our campuses, we have developed stringent requirements regarding the sourcing of bulk equipment
for Huawei's own facilities and the site selection and decoration of leased facilities, aiming to reduce energy consumption in subsequent
operations. Selecting energy-efficient equipment right at the start helps cut the overall cost of construction, O&M, and management.
During site selection for leased facilities, we analyze the overall costs of decoration and later operations. This process helps us simplify
operations at an optimal cost throughout the campus lifecycle.

A rooftop PV power plant at the Huawei Dongguan Southern Factory

Huawei's GHG emissions in 2021*

GHG Scope 1 Scope 2 Scope 3

Emissions (t-CO2e) 55,141 2,596,855 4,638,800

% of total emissions 0.76% 35.62% 63.63%

Scope 1 covers direct GHG emissions from sources owned or controlled by Huawei

Scope 2 covers indirect GHG emissions from the generation of purchased electricity or heat

Scope 3 covers all other indirect GHG emissions occurring within Huawei's value chain. In 2021, Huawei applied for a certification of its Scope 3 emissions for the first
time, covering purchased goods and services, fuel and energy related activities, upstream transportation and distribution, waste generated in operations, business travel,
employee commuting, etc. Moving forward, we plan to include more types of emissions sources under Scope 3 into the certification when reliable and complete data
are available.

* Huawei compiles an inventory of and verifies GHG emissions sources within its organizational boundaries using the Operational Control Approach according to the scope, category and
calculation methods defined in the ISO14064-1:2018, GHG Protocol, and IPCC Guidelines for National Greenhouse Gas Inventories.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 57


Unit: tons Unit: tons/million RMB of revenue

2,651,996 2.93
2,285,458
2,213,546
2.26
2.02

2019 2020 2021 2019 2020 2021

Total GHG emissions 2019–2021 (Scope 1 & Scope 2) GHG emission intensity 2019–2021 (Scope 1 & Scope 2)*

Huawei's total energy consumption (2019–2021):

Energy Type Unit 2019 2020 2021

Natural gas million m3 13.13 15.36 9.92

Gasoline tons 650 608 800

Diesel tons 106 107.7 402

Electricity million kWh 3,231.25 3,601.70 4,228.95

Steam tons 22,613 22,694 28,861

Electricity generated from renewable and clean energy used by Huawei in China:

Unit: million kWh

Renewable energy 2020 219.16


(hydro, wind, solar, etc.) 2021 311.87

Clean energy 2020 1,475.75


(gas-fired electricity) 2021 1,564.97

* GHG emission intensity = Total GHG emissions / Sales revenue. The increase in Huawei's GHG emission intensity in 2021 was mainly due to the company's decline in sales revenue.
Given the continuous growth and uniqueness of Huawei Cloud (operations-oriented), its performance regarding environmental protection is measured and disclosed separately.
Therefore, Huawei Cloud is not covered by Huawei's GHG emissions intensity targets or progress, and related statistics have been adjusted accordingly.

58 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Examples of energy-saving and emissions reduction projects on Huawei campuses in 2021

Power Savings &


No. City Project Measures
Emissions Reduction*

Optimizing the lighting control strategy so that


Power savings: 170,000 kWh/year
1 Chengdu Energy-efficient lighting lights can automatically turn on and off to
CO2 offset: 146 tons
avoid waste

Upgrading to LED lighting


Upgrading to LED lighting and VSDs that
and air-conditioning Power savings: 1.01 million kWh/year
2 Dongguan enable air-conditioning systems to operate
systems with variable CO2 offset: 812 tons
more efficiently at part load
speed drives (VSDs)

Making high-voltage and high-current


equipment more energy efficient, applying
Upgrading production and Power savings: 12.92 million kWh/year
3 Dongguan thermal cycling, standardizing aging times, and
manufacturing equipment CO2 offset: 10,390 tons
adopting centralized and intelligent scheduling
to reduce energy consumption

Optimizing the Enterprise Building Integrator


Upgrading the servers of
(EBI) system in the labs and quickly shutting Power savings: 2.83 million kWh/year
4 Hangzhou monitoring systems and
down idle equipment to avoid unnecessary CO2 offset: 2,242 tons
saving energy in labs
power consumption

Using smart lighting technology to


Upgrading to smart
automatically switch lights on and off based
lighting and optimizing air- Power savings: 1.33 million kWh/year
5 Nanjing on human presence, and optimizing air-
conditioning systems in CO2 offset: 1,053 tons
conditioning systems to avoid unnecessary
conference rooms
power consumption

Modernizing power
Staggering the startup of electricity-intensive
supply and distribution
equipment to avoid peak demand and reduce Power savings: 7.6 million kWh/year
6 Shenzhen systems and optimizing
required capacity, and optimizing the operations CO2 offset: 6,112 tons
the operations of air-
of air-conditioning systems
conditioning systems

Connecting built-in cooling towers and hybrid


Extending free cooling time dry/wet cooling systems to reduce the operating
Power savings: 550,000 kWh/year
7 Wuhan and using smart lighting in frequency of cooling towers and extend free
CO2 offset: 472 tons
conference rooms cooling time; upgrading to smart lighting in
conference rooms

Total generation of PV power:


8 Xi'an PV power generation PV plant on the Xi'an campus up and running 4.747 million kWh
CO2 offset: 4,723 tons

* Calculated according to China's regional grid baseline emission factors

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Huawei Cloud: Improving PUE to Build Green Data Centers

810,000 tons
system in the facility area and office area of the
data center. Part of the heat is naturally cooled by
waterfalls and lakes, and part of it is used to heat a
Huawei Cloud's data center in Gui'an has integrated green swimming pool and office area in winter with heat
and digital technologies into its design, which is expected recovery technology. This helps fully reuse waste heat
to save 1.01 billion kWh of electricity per year, equivalent and cut carbon emissions.
to offsetting more than 810,000 tons of carbon emissions
• Introducing liquid cooling technology to increase
power density and cooling efficiency and significantly
Data centers are at the heart of digital economies. To reduce PUE.
reduce energy consumption and GHG emissions, Huawei
Cloud's data center in Gui'an has green and intelligent • Applying AI to service scheduling, peak shaving, and
technologies incorporated into its design. Its power usage valley filling to balance loads among servers and
effectiveness (PUE) is 1.12, one of the best figures in the increase resource utilization.
industry. The measures Huawei took include:
• Replacing copper components in the power supply
• Employing direct ventilation for natural cooling. Cold with power semiconductors to reduce power loss.
air from outdoors is filtered and supplied to equipment
rooms, and then discharged from the rooftop following When operating at full capacity, the data center is
a heat exchange through the hot aisle. expected to save 1.01 billion kWh of electricity per year,
equivalent to offsetting more than 810,000 tons of
• Developing a medium-temperature chilled water carbon emissions*.

Huawei Cloud's green data center in Gui'an: Naturally cooled through direct ventilation and by waterfalls and lakes,
with an industry-leading PUE of 1.12

* By grid emission factors in Southern China

60 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

» Conserving and Reusing Natural Resources

In 2021, Huawei used 16.18 million tons of water in China, up 15.6% year-on-year. This increase was largely attributable to the
construction of new facilities in Wuhan, Suzhou, Dongguan, Shanghai, and other locations. The majority of the water we consumed
was used for watering our grounds, in our canteens, and for air-conditioning.

Unit: million tons

16.18
14.00
12.94

10.41
8.13

2017 2018 2019 2020 2021

Huawei's water usage in China (2017–2021)

To better manage waste in our company facilities and minimize our impact on the environment, we hire certified waste disposal
companies to classify and dispose of our waste as required and reduce the waste that goes to landfill. 86% of our solid waste is
incinerated to produce electricity.

Waste Classification Example Disposal

Designated suppliers regularly sort and remove the waste.


Non-recyclable waste Domestic waste Healthcare waste, such as masks, is transported to designated
incineration areas for harmless disposal.

Leftovers and waste


Canteen waste Harmless disposal by designated certified suppliers
cooking oil and fats

Packaging boxes and Designated suppliers regularly sort and remove waste. Special
Recyclable waste
Solid waste metal parts processes apply for scrapped equipment and parts.

Centrally stored in a designated area and then processed by


Hazardous waste Chemical containers
companies certified to carry out this kind of work

Construction
waste (generated Construction companies stack construction waste in a designated
Waste from refurbishments
by construction area, and later transport it to the municipal solid waste landfill.
companies)

After oil is removed through an oil separation tank, wastewater


Oily wastewater from
Canteen wastewater is discharged into the septic tank and then discharged into the
canteens
municipal sewers if it meets the required standards.

Wastewater from
Other domestic Discharged directly into the septic tank and then discharged into
Wastewater bathrooms, office pantries,
wastewater the municipal sewers if it meets the required standards.
and sanitation

Wastewater generated Disposed of by an industrial wastewater treatment facility


Industrial wastewater from the production and discharged once it meets the required standards. 60% of
process wastewater is recycled for production.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 61


Waste Classification Example Disposal

The gases are first purified by fume hood, and then by


Kitchen waste gases Cooking fumes from hobs electrostatic purifiers. Once they meet the discharge standard,
they are discharged at a steady rate.

Waste gases
The gases are centrally disposed of by the industrial waste gas
Waste gases generated
treatment facility on the roof of the building in which the waste
Industrial waste gases from the production
gases are produced and discharged once they meet the required
process
standards.

Raising Employee Awareness of Energy Conservation and Using Less Resources

As part of our efforts to improve employee awareness maximizing asset reuse, allowing us to save resources.
of energy conservation and environmental protection, For example, our Shenzhen campus has a shared
we have launched numerous green campaigns on our reuse warehouse. In 2021, we identified about 64,000
campuses over the past year, including our Environmental reusable items in this warehouse, 37,000 of which had
Protection Week themed "Tech for a Better Planet". This already been reused. This practice allows us to use fewer
event included a ceremony for signing a commitment to resources by making the most of existing items.
protecting the environment, an online quiz, and an old-
for-new electronics recycling drive. We encouraged every We have a policy stating that retired office laptops
Huawei employee to do their part to protect biodiversity that meet certain conditions can be repurposed for the
and the planet by doing things like turning off unneeded personal use of our employees, who simply need to
lights, saving water and paper, traveling green, and living submit an application. This extends the service life of
a low-carbon life. these laptops and reduces electronic waste. In 2021,
we repurposed more than 30,000 office laptops for
Huawei has a campus asset management system for personal use.

Huawei Environmental Protection Week: Tech for a Better Planet

62 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Decarbonization and Digitalization Empowering a Green Supply Chain

Huawei's supply chain activities span material sourcing, manufacturing, transportation, and delivery, and carbon emissions can
occur every step of the way. To better manage its carbon footprint, Huawei has developed a carbon-accounting framework based
on material flows. Based on our experience in the digital transformation of the supply chain, we have proposed building a green,
digital, and win-win supply chain. We believe that a green, low-carbon supply chain will bring us closer to our green pledge of
"Tech for a Better Planet".

Green ecosystem
Supplier

Gr
ee
e n
us ra
w
re m
n
ee at
Gr er
ial Green products
Carbon trading s

Reverse supply Category-based


chain for global acquisition of raw Green reputation
Customer reuse materials Raw
Renewable energy material
warehouse
trading warehouse
Green campus
Energy
Green consumption
Gree

Energy
Carbon tax consumption supply chain from

n
production
n de

Green operations

ctio
and emissions
from global activities and

odu
livery

deliveries semi-finished
goods

n pr
Carbon credit transfers
Green industry standards
and

Gree
Global logistics,
transportation,
use

and warehousing
Finished Semi-finished
goods goods
warehouse warehouse
Green logistics

Huawei's Green Supply Chain Management System

» Green Procurement delivered directly to factories increased, which helped reduce


transportation mileage and the footprint of raw material
Green procurement is a key way for Huawei to cut carbon warehouses. These changes resulted in a reduction of 34.5
emissions in collaboration with its partners. Based on our tons in carbon emissions.
procurement processes, Huawei has established a carbon
emissions estimation mechanism for different categories of Huawei has incorporated environmental requirements into
raw materials and works to achieve green procurement by our "quality-first" procurement strategy and processes.
focusing on three areas: procurement fulfillment, procurement Environmental factors are considered during supplier
process management, and energy saving and emissions qualification, selection, audits, performance management,
reduction of suppliers. and the sourcing of materials to ensure that suppliers
comply with all applicable environmental laws and
Huawei works to facilitate suppliers' carbon reduction regulations. We also offer incentives to encourage suppliers
efforts. Based on an analysis of the delivery routes of to make ongoing improvements.
Huawei's suppliers, the company has taken a number of
measures regarding the inbound and outbound nodes of its In 2021, we encouraged our top 100 suppliers (by
manufacturing partners, covering more than 140 electronics procurement spending) and energy-intensive suppliers
manufacturing services (EMS) providers and joint design to calculate their carbon emissions, set carbon emissions
manufacturers (JDMs). These include accurately planning reduction targets, develop plans, and implement programs.
delivery routes, optimizing goods-receiving processes, and By the end of 2021, all the top 100 suppliers and energy-
reducing the number of vehicles needed and the total intensive suppliers had calculated their carbon emissions,
mileage coverage. In 2021, the proportion of raw materials and 98% of them had set targets for reducing emissions and

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 63


had already started implementing related programs. We are case studies on exemplary supplier emissions reduction
following up on the remaining 2% to ensure they set targets efforts, inviting industry experts and specialist organizations to
and implement programs as soon as possible. train and audit our suppliers on energy-saving management,
and helping our suppliers identify opportunities for saving
To help suppliers reduce carbon emissions and go green more energy and reducing emissions.
quickly, Huawei takes multiple measures such as releasing

The Huawei Supplier Carbon Emissions Reduction Conference

In May 2021, Huawei held its Supplier Carbon Emissions strategies and requirements for saving energy
Reduction Conference themed Green and Low-carbon
and reducing carbon emissions throughout
Development for Shared Success. More than 1,000
representatives from over 400 major suppliers attended supply chains. We encouraged suppliers to
the conference. Representatives from the Shenzhen meet the challenges of climate change head
Municipal Ecological Environment Bureau, industry
on, seize new opportunities, pursue low-
experts, Huawei procurement managers and experts,
and supplier representatives gave keynote speeches, carbon development, and respond to our
discussing global progress towards reducing carbon call to reduce carbon emissions. Huawei
emissions, China's path to carbon peak and carbon
also shared its expectations for suppliers to
neutrality, industry standards, and companies' best
practices in conserving energy and reducing emissions. set challenging carbon emissions reduction
targets to achieve carbon peak and carbon
During the event, Huawei explained its neutrality more rapidly.

Huawei's 2021 Supplier Carbon Emissions Reduction Conference, where we shared strategies and requirements
for reducing carbon emissions throughout the supply chain

64 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Empowering Suppliers Through Expert Training and Support in Energy Management

In most electronics and electrical plants, industrial designed a four-stage investment plan, and identified the
electricity accounts for more than 95% of the carbon three energy-saving measures that were of the highest
emissions produced in their own operations. Therefore, priority, required the least investment, and would deliver
saving electricity is the primary way to reduce carbon immediate results. According to this plan, the factory was
emissions in these plants. One of Huawei's suppliers only required to spend a one-off payment of CNY7,020
uses multiple energy sources in their plant, which include on the three prioritized measures in the first stage, which
electricity, natural gas, oil, and diesel. However, electricity were expected to help it save 14,498 kWh of electricity
still accounts for 97.6% of their total carbon emissions and reduce CO2 emissions by 11.71 tons. A combination of
and 95.3% of their annual energy bill. energy-saving measures was expected to bring the plant
an additional CNY800,000 in revenue per year, giving the
In 2021, we invited industry-leading energy management supplier confidence to proceed.
experts to provide training in energy management for
the supplier to help diagnose challenges with energy
conservation, help improve its energy management
capabilities, identify opportunities for energy conservation,
and take both managerial and technological measures to
conserve energy and reduce consumption. The plant then
identified 11 areas in which energy conservation programs
could be implemented, covering management, processes
and production lines, lighting, compressed air, HVAC, and
renewable energy. These measures were expected to save
over 13 million kWh of electricity, reduce CO2 emissions
by 10,182 tons, and cut the plant's energy bill by CNY9.08
million per year. That means the investment involved in
swapping equipment could be recouped in just 33 months.

A major hurdle here was that the plant would struggle An energy management expert invited by
to invest in so many energy conservation programs at Huawei identifying opportunities for energy conservation
once. Considering this, the energy management experts in a supplier's plant

Since 2011, Huawei has participated in the Green Choice initiative, which was launched by the Institute of Public
and Environmental Affairs (IPE). To encourage suppliers to better manage themselves, promptly fix any problems,
and maintain environmental compliance, we continue to use the IPE's Blue Map environmental data search during
supplier audits and supplier self-checks. In 2021, we carried out regular checks on the environmental records of 900
key suppliers and helped more than 10 suppliers rectify problems.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 65


» Green Manufacturing R&D and manufacturing departments worked together and
saved energy use through more balanced manufacturing
Huawei's manufacturing department is tasked with producing and reduced production fluctuation. The energy saved was
high-quality products. The company is constantly striving equivalent to cutting carbon emissions by 23,900 tons.
to save more energy and further reduce carbon emissions
by adopting a simplified architecture and optimizing In manufacturing workshops, we saved 18.65 million kWh of
manufacturing work instructions (MWIs) and workshop electricity and reduced carbon emissions by 15,000 tons* in
energy consumption without compromising product quality. 2021 by taking the following measures:
• Centrally monitoring the energy consumption of
MWIs are key to driving efficient manufacturing and material manufacturing equipment
flows across a supply chain, and the accuracy of MWIs
• Optimizing air conditioner operations
directly affects power consumption and carbon emissions. We
• Upgrading lighting facilities by, for example, replacing
use AI algorithms to optimize MWIs and achieve balanced
metal-halide lamps and fluorescent lamps with LED lamps
manufacturing. Through correlation analysis, we have found
that for every 1% improvement in balanced manufacturing, • Replacing electric heating systems with heat pumps
energy consumption is reduced by about 1.2%. In 2021, our • Connecting air compressors to the grid

Reducing Single-use Plastics in the Packaging of


Incoming Materials
In 2021, as part of its efforts to protect the environment, Huawei's
manufacturing department adopted a design-for-manufacturability (DFM)
approach and designed plastic-free packaging by replacing single-use plastics
such as polyethylene bags and foam used in packaging with standardized,
recyclable materials. This plastic-free packaging is now adopted in the
components of our optical network terminals (ONTs) and Wi-Fi 6 devices.
The packaging of the incoming materials from suppliers uses partitions to
prevent collisions and scratches, making it easy to take out parts without
affecting their appearance. This design eliminates more than 130 million
packaging removals that would normally be required in production lines. It
reduces the pollution from single-use plastics while boosting productivity. In
2021 alone, the initiative reduced the use of single-use plastics by 260 tons,
equivalent to 26 million medium-sized supermarket plastic bags. This was
a reduction of about 600 tons of carbon emissions. Moving forward, we will
promote plastic-free packaging design in more of our production lines.

* By grid emission factors in Southern China

66 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

» Green Logistics

Huawei's global logistics network covers more than 170 • Saved 320,000 pieces of paper for goods receipts and
countries, 300 logistics and warehousing nodes, 40,000 payment reviews by piloting blockchain technology in four
transportation routes, and various means of transportation, of our regional distribution centers (RDCs) in China.
including sea, air, rail, road, and express delivery. This is a
highly complex global network. In line with the ISO 14064 Digital and green transformations are two sides of the same coin
standard, Huawei has designed a carbon emissions accounting when it comes to supply chains. As enterprises digitalize their
framework for its supply chain based on the methodologies supply chains, they are likely to benefit from higher efficiency
set out in the GHG Protocol and IPCC Guidelines for National and lower costs. This, in turn, helps them achieve emissions
Greenhouse Gas Inventories, and measures its carbon reduction targets. Green and low-carbon development can guide
emissions from global transport and warehousing. enterprise operations in a way that further drives digitalization,
creating a positive cycle, as shown in the figure below.
In 2021, the pandemic meant global logistics services were
in short supply. Despite this, Huawei remained committed to Over the past five years, Huawei has been moving towards a
green and low-carbon logistics management, and produced digital supply chain through its Integrated Supply Chain +
tangible results: (ISC+) transformation program, which involves digitizing
all objects, processes, and rules. This has allowed Huawei to
• Directly reduced carbon emissions by 456 tons by
significantly improve operational efficiency, cut the amount
optimizing the pick-up routes for raw materials,
of energy used during the manufacturing of physical goods,
implementing centralized transportation and distribution,
optimize routes to save mileage, and reduce resource
and improving container loading and delivery routes to
consumption. These efforts have contributed to energy
lower the proportion of air freight to countries outside
conservation, emissions reduction, and a circular economy.
China, as air freight is one of the most emissions-intensive
Meanwhile, paperless operations as part of the digital
modes of transport.
transformation process have helped Huawei and its partners
• Indirectly reduced carbon emissions by about 99 tons save a huge amount of paper and reduce the need for
by optimizing our global transport and warehousing cutting down trees.
footprints.

Digital supply chain Green and low-carbon

Customer
satisfaction
Enterprise
operations
Sustainability

Material
flow
Supplier Factory Distribution Customs Central Site/Customer
center warehouse premise

Global supply network

Digitalization for a green and low-carbon supply chain

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 67


Saving Paper by Moving Paper Labels to the Cloud

Throughout Huawei's supply chain, we previously used the eight types of approval documents. Meanwhile, we
66 types of A5-sized paper labels and eight types of categorized QR codes and barcodes as necessary labels
key paper documents for approval. According to annual when redesigning the labeling system. Label information
shipment volumes, printing these labels and documents can now be obtained by scanning the codes, and more
consumed more than 100 million sheets of paper. information is stored in the dedicated data modules on
Huawei Cloud, reducing the number of labels attached
To address this issue, we decided to significantly reduce to physical objects. According to our estimates, this
paper usage or adopt paperless operations where optimization alone can help us reduce the paper used
possible across the supply chain. By systematically in packaging by 99.95 million sheets, equivalent to
redesigning our labels and digitizing label information, offsetting 330 tons of carbon emissions per year.
we removed 50 out of the 66 types of paper labels and

App

Cloud label

68 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Promoting Renewable Energy

230 million tons


A digital economy is, first and foremost, a green economy.
Green and low-carbon development has become a globally
recognized goal and more countries and businesses are
increasing investment and transitioning to renewable energy. By the end of 2021, Huawei's digital power solutions had
Huawei wants to play an active role in the transition from helped customers generate 482.9 billion kWh of green
fossil fuels to renewable energy. We use renewable energy in power and save about 14.2 billion kWh of electricity,
our operations wherever possible. Huawei's Chengdu Research equivalent to offsetting 230 million tons of CO2 emissions*.
Center is now fully powered with renewable energy. We've built
PV plants on our campuses in Huawei Dongguan Southern
Factory, Hangzhou Research Center, Nanjing Research Center, power generation, energy digitalization, transportation
and Xi'an Research Center. In 2021, these plants generated electrification, green ICT power infrastructure, and integrated
more than 17.6 million kWh of green electricity in total. smart energy to drive an energy revolution for a better,
Our digital power company focuses on five domains: clean greener future.

Herding Sheep Under Solar Panels: Smart PV Solution Helps Build a Renewable Energy Hub in Qinghai, China

In Qinghai province, China, we helped Huanghe than 1,500 kilometers away, via the Qingyu
Hydropower Development, a subsidiary of China's State
UHVDC (±800 kV) power transmission line,
Power Investment Corporation (SPIC), build a renewable
energy hub using wind, solar, and hydropower, where the world's first high voltage transmission
farmers can herd sheep under solar panels. The hub hosts line carrying 100% clean energy.
a 2.2 GW PV plant with more than 7 million PV modules
covering an area of 56 km2. Each string of modules is Talatan was once a landscape of windswept sand. Since
precisely managed with intelligent, digital technologies. the PV power station was built, the local ecosystem
This improves the power plant's energy yields by over 2% has improved greatly. The project has cut average wind
and operation and maintenance efficiency by over 50%. speeds by 41.2% while improving average air humidity
by 2.1% and soil moisture (at 20 cm deep) by 32%.
Since the plant was connected to the grid, Grass has quickly sprouted. Today, the solar farm is also
it has generated nearly 5 billion kWh of a sheep farm. Shepherds who had to leave this area
because of a lack of quality pasture are now able to
green electricity per year, and supplied
return to their homes.
green electricity to Henan province, more

Renewable energy hub in Gonghe, Qinghai, built with the support of Huawei's smart PV solution: Herding sheep under
solar panels and supplying green electricity to Henan province, more than 1,500 kilometers away, via a UHVDC line

* By International Energy Agency emission factors

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 69


Sunseap's 5 MWp OFPV System: A Blueprint for Promoting Renewable Energy

Singapore's largest clean energy solutions provider,


Sunseap Group, has deployed a 5 MWp offshore floating
photovoltaic (OFPV) system in the Straits of Johor, one
of the world's largest floating solar farms on sea water.
With 13,312 solar panels, 40 inverters, and more than
30,000 floats, this PV system is estimated to produce
more than 6 million kWh of energy per year, which
is enough to supply electricity for 1,250 four-room
public housing apartments on the island and offset an
estimated 4,258 tons of CO2 emissions1.

By deploying Huawei inverters and utilizing Huawei’s Sunseap's 5 MWp OFPV system serves as a blueprint for
FusionSolar Smart PV Management System, Sunseap has other countries with dense populations and limited land
been able to streamline the operation and maintenance to roll out similar initiatives
process of the floating platform. The completion of this
project and the time it took to fully connect the grid
will serve as a blueprint for other countries with dense
populations and limited land to roll out similar initiatives.

Huawei Digital Power Helps Build a Nearly Zero-carbon Exhibition Hall in China

Located in Shenzhen's Longgang District, the International and an integrated smart campus management system.
Low Carbon City Convention and Exhibition Center has Once it is up and running, the center is expected to
used Huawei's distributed smart PV solution, energy achieve self-sufficiency, producing 1.27 million kWh of
storage solution, and DigiPowerCloud system to become green electricity every year and offsetting about 603 tons
China's first nearly zero-carbon facility. It is equipped with in annual carbon emissions2. In addition, the center is safe,
a 1.1 MW PV system, a 2 MWh energy storage system, reliable, and easy to maintain.

A nearly zero-carbon exhibition hall in China powered by Huawei's digital power solutions

1
By the EPA Greenhouse Gas Equivalencies Calculator
2
By International Energy Agency emission factors

70 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Contributing to a Circular Economy

As the world's population continues to grow and quality of life keeps improving, pressure on the world's natural resources is
increasing. To adapt to future needs, it is important for us to develop a resource-efficient economic model. Huawei is committed to
building a business model that incorporates circular economy practices and a closed-loop value chain so that all resources can be
efficiently used, reused, and recycled, and in turn maximize product value with limited resources.

More Eco-friendly Materials

Huawei is committed to using more eco-friendly packaging materials to minimize our impact on the environment. We use
recyclable paper and sustainability-certified paper as much as possible to protect forest resources. Our latest eco-friendly
packaging materials have been certified as compostable by DIN CERTCO, meaning that they are biodegradable as part of
industrial composting.

Huawei Devices Use Biodegradable and Eco-friendly Packaging Materials

The degradability of a product's packaging is often affected by the inks


used. Our devices are packaged with 100% eco-friendly soy inks rather
than petroleum-based inks. Compared with petroleum-based inks, soy
inks use soybean oil that contains no volatile organic compounds, while
still delivering quality prints.

Greener Packaging

Huawei adopts a green packaging strategy known as "6R1D": Right Packaging, Reduce, Returnable, Reuse, Recovery, Recycle,
and Degradable. We aim to design packaging that provides sufficient protection for our products and has minimal impact on the
environment. We use eco-friendly packaging materials and recycle and reuse them as much as possible.

Right & Reduce Returnable & Reuse


Developing better and more efficient Re Enabling packaging materials to be used
uce tur
packaging designs to reduce the use of Red na
ble for longer through recycling and reuse
packaging material and cut packaging
Degradable

and logistics costs

Right
Reuse

Re
cyc
le ry
Degradable ove Recycle & Recovery
Rec
Reducing or eliminating the impact of Reusing resources and energy by using
packaging waste on the environment by eco-friendly and renewable materials as
using biodegradable materials much as possible
Huawei's 6R1D packaging strategy

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 71


Lighter User Manuals for Less Resource Consumption and Emissions

Lightweight user manuals use less paper and cut In 2021, lightweight user manual designs
resource consumption and carbon emissions during
were widely adopted for all Huawei devices,
transportation. The approach we take to creating
lightweight user manuals is focused on balancing paper including mobile phones, tablets, and PCs.
material reductions and user experience requirements. To This yielded remarkable results – 468 tons
achieve this, we have created a pre-installed Tips app for of paper was saved, equivalent to a carbon
our devices where users can get more information about
offset of 13,288 tons.
their devices.

2019 2020 2021

Mobile phones, tablets, PCs, Mobile phones, tablets, PCs, wearables,


Products covered Mobile phones
wearables, and headphones headphones, speakers, and smart screens

User manual page reduction 27% 87% 5%

Paper saved (tons) 89 426 468

Carbon offset (tons) 2,537 12,080 13,288

Less Plastic, Greener Consumption

The United Nations Environment Programme estimates the future. This optimization alone is expected to reduce
that about eight million tons of plastic end up in the ocean the use of disposable packaging plastics by approximately
every year, and 60% to 90% of the litter that accumulates 46.3 tons for every 10 million phones.
on shorelines, the surface, and the sea floor is plastic.
We are also reducing the plastic used inside gift boxes. For
To reduce plastic waste, Huawei keeps improving its example, the amount of plastic used inside the gift boxes
product packaging and reducing the amount of plastic of P50 series phones decreased by 89% compared with
used in packaging materials. For example, the surface of a the P40 series. Plastic now makes up less than 1% of the
packing box is usually covered with a layer of plastic film packaging of a P50 phone, an industry-leading figure.
to protect the text and printed graphics. Our packaging
designers developed water-based inks to replace the We have applied these plastic reduction measures to
plastic film, which has been applied to the packaging of headphones, watches, bands, and many other products to
the HUAWEI Enjoy 20 Pro and nova 7 SE (5G) models, provide eco-friendly products to our consumers and drive
and will be used in the packaging of more products in green consumption.

Comparison of plastic packaging over two generations of various Huawei products

35 Unit: grams
32
30
30

25 23
19
20
17

15 13
12
9
10 8
7.43 7 Previous model
6
5 4 5
5 3 New model
0.85 1
0
(China Mobile custom model)
P40

P50

nova 7

FreeLace

FreeLace

FreeBuds 3

FreeBuds Pro

WATCH GT 2

WATCH 3

TalkBand B6

WATCH FIT

Band 4

Band 6
nova 8

72 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

More Durable Products

Huawei follows a quality-first strategy and aims to succeed with high quality. We implement an ISO 9000-based total quality
management system that covers every employee, every process, and every link of the value chain to achieve this. All employees
are encouraged to pursue high quality. We are working to improve the quality of both our processes and results, and provide
customers and consumers with quality durable products and convenient and affordable repair services. These practices have helped
slash product costs over their lifecycle, and reduce our consumption of natural resources.

Durable Huawei NetEngine Routers: Low Return Repair Rates

Huawei's high-end NetEngine routers have highly


sophisticated, large-capacity line cards that contain more
than 20,000 components and nearly 100,000 solder
joints. We have built high-end router manufacturing
lines and an end-to-end quality assurance system to
ensure the quality of such products. As a result, we
have achieved a 1.56 defect parts per million (PPM)
opportunities for board solder points, significantly
lower than the Six Sigma benchmark of 3.4. Huawei's
board return repair rate is only one third of the industry
average. All of these efforts have extended the service
Huawei's high-end NetEngine routers
life of our products.

Extending Device Service Life with Software and Hardware Updates

An international study found that the average Mate 9 series released in 2016, Mate 40 series,
smartphone purchase cycle for consumers in China was Mate 30 series, P40 series, HUAWEI Mate X2, nova
28 months. Huawei has been exploring how to bring 8 series, and MatePad Pro series) to HarmonyOS
new life to used phones, recoup their full value, and 2. HarmonyOS 2 is born fast and stays fast. With
reduce e-waste. We are working to extend the service life HarmonyOS 2, operation responses on old device
of used products as much as possible and make them models are as smooth as always.
more durable through software and hardware updates.
These efforts include: • Implementing a global flat-rate battery replacement
program that covers more than 110 different phone
• Upgrading over 100 phone models (including the models and is supported in over 2,000 offline stores
and online marketplaces. Every month, this program
provides over 250,000 consumers with our convenient,
cost-effective battery replacement services.

• Launching a mainboard replacement program in 2021


for phone models sold in the Chinese mainland that
allows customers to buy original Huawei mainboards
at up to 70% discount, even for out-of-warranty
mainboard damages. We have also established a
system for reusing screens that are out of warranty in
many countries, recycling as many resources as possible.

By the end of 2021, HarmonyOS had been deployed on


• Rolling out a Huawei smartphone memory upgrade
more than 220 million Huawei devices, making it the
plan in 2021 through which consumers can obtain chips
world's fastest-growing mobile device operating system
with a larger memory capacity for their old devices.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 73


Less Waste

One of the most effective ways to reduce the environmental impact of electronic products is to reuse e-waste and recoup its value.
In close collaboration with leading recycling service providers, Huawei categorizes its e-waste so that it can be efficiently recycled
and reclaimed. Through our global recycling system, we work with scrap service providers to recycle the raw materials of e-waste in
more than 170 countries worldwide. In 2021, we disposed of 11,826 tons of ICT e-waste, only 0.78% of which was landfilled, and
processed 8,643 tons of smart device e-waste, none of which was landfilled.

Adding Tamper-evident Labels to the Smallest Packing


Units of Optical Modules to Facilitate Recycling
When optical modules are returned from our regional warehouses to HQ
warehouses, many of the smallest packing units have to be sent back to
their original supplier for repair despite the units themselves remaining
intact. This is because their original packaging is unidentifiable after the
shipping box is opened. The cost of sending modules back for repair is very
high, so many modules are scrapped instead, resulting in CNY20 million in
material costs each year.

To address this problem, we set up a dedicated optimization team to add


tamper-evident labels to the smallest packing units during shipment. This
makes the original packaging of the unused products still identifiable
even after the shipping box is opened, so their quality is controllable
and reliable, requiring no further inspection before recycling. This greatly
improves reuse efficiency and reduces e-waste.

Certified Second-hand Phones on Huawei Vmall

In 2021, Huawei launched a second-hand phone service come with HarmonyOS 2 pre-installed. Huawei also gives
on Vmall for recycling, refurbishing, and resale, together a one-year official warranty for each certified second-
with industry-leading recyclers and service providers. hand device.
We have put in place related processes and standards,
and have integrated the circular economy concept into Moving forward, we will expand this program to cover
every link of the process, from sourcing the second-hand tablets and PCs, providing consumers with more quality
phones to sales channels. All Huawei-certified second- second-hand devices. By selling quality second-hand
hand mobile phones must pass stringent tests to ensure phones, we have greatly extended the service life of our
that they are equipped with 100% original Huawei products and reduced resource consumption .
components (including original brand-new batteries) and

74 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

Environmental Certifications

In 2021, Huawei obtained multiple national and international environmental certifications, including:

ISO 50001 Certified Energy Management System

The ISO 50001 certified energy management system


focuses on improving energy efficiency and reducing energy
consumption by standardizing various energy management
systems and measures, and identifying and utilizing the right
energy-saving technologies and methods, as well as best
energy management practices.

In 2021, Huawei Technologies Co., Ltd. passed the annual


ISO 50001 surveillance audit.

Certificate
Standard GB/T 24001-2016 idt ISO 14001:2015
Environmental Management System
Certificate Registr. No. 17 104 1933213

ISO 14001 Certified Environmental Management Certificate Holder: Huawei Technologies Co., Ltd.
Huawei Headquarters, Bantian, Longgang District,
Shenzhen, 518129 Guangdong, P. R. China

System Scope:
including the locations according to annex

Design, Manufacturing, Procurement, Supply Chain Management, Sales, and Services (including
Installation Management, Network Engineering Services, Network Field Maintenance, Repair, Customer
Support and Training Services) of Semiconductors and Components (including Network and Device
Chips, Consumer Chips, and Optical Components), Fixed Access Products, Radio Access Products,
Core Network Products, Transport Network Products (Wavelength Division Multiplexing (WDM)
Equipment), Data Communication Products, Synchronization Network Products, Antenna System and

ISO 14001 environmental management certification indicates


Radio Frequency Products, Copper and Optical Distribution Network Products (ODN and Distribution
Product), Business Support System Products, Network Management System and Tool Products, Data
Service Products, Enterprise Service Products, Intelligent Vision Products, Intelligent Collaboration
Products, Infrastructure Network and Security Products, Cloud Computing and Data Center Products,

that an organization has reached the international standard


Data Storage Products, Computing Products (including General-Purpose Servers & Computing
Components, and AI Servers & Computing Components), Hybrid Video Products, Telecommunication
Terminal Products (including Mobile Phone), Computer and Accessories, Automotive Components and
Smart Systems (including Smart Driving Solution, Mobile Data Center, Intelligent Sensor, Lidar, Radar,
Camera, Smart Logistics Vehicles, Maps, Navigation, Automatic Driving Data Service, Smart Logistic and

in environmental management and can effectively control Travel Service, Robotic, Smart Cockpit, Vehicle Cloud Service, Vehicle Control, Thermal Management
System, Vehicle Gateway, Communication System and Assembly, Multimedia Information System),
Digital Power Products (including Site Power Facility (including Telecom Power, Hybrid Power, Intelligent
Lithium, Intelligent Charging, Intelligent Site), Smart PV (including Inverter, Energy Storage System,

various pollutants in its processes, products, and activities.


Transformer and Power Distribution Equipment), Embedded Power (including Box-shaped Power, Board
Mounted Power, Consumer Fast Charging Module), Data Center Energy (including UPS, Intelligent
Lithium, Data Center Infrastructure (including Modular Data Center, Precision Air Conditioners in the
Equipment Room)), Network Management System and Monitoring System, Intelligent Electric Mobility
(including Under-Vehicle Charging and Energy Storage System, on-Board Charger and Auxiliary Power
Supply, Vehicle Power Conversion, Vehicle Wireless Charging, Motor Control System, Battery
Management System, Powertrain, Power Domain Controller, and Power Domain Integration System))
Note1: ODN and Distribution Product: ODF (Optical Distribution Frame), FDT (Fiber Distribution

In 2021, Huawei Technologies Co., Ltd. passed the ISO 14001


Terminal), SPL (Splitter), FAT (Fiber Access Terminal), SSC (Splitting and Splicing Closure), Indoor
Cable, iODF (Intelligent Optical Distribution Frame), iFDT (Intelligent Fiber Distribution Terminal), iFAT
(Intelligent Fiber Access Terminal), Intelligent Patch Cord, iSPL (Intelligent Electric ID).
Note2: The Design and Service of Cloud Computing Products include Provision of Planning and Design
Service, Reserch and Development Services, Operation and Maintenance Service, Service Operation

renewal audit, which covers the design, manufacturing, and Customer Support Service for Huawei Cloud Service, including Computing, Storage, Network,
Database, Security, Domain & Website, Application, Management & Deployment, DevCloud, Migration,
Cloud Communications, loT, Dedicated Cloud, Enterprise Network, Enterprise Intellgigence. The Service
® TÜV, TUEV and TUV are registered trademarks. Utilisation and application requires prior approval.

of Data Center Products include the Provision of Operation and Maintenance Services for Huawei Cloud

procurement, supply chain management, sales, and services


Data Centers.
Note3: Supply Chain Management include Storage, Logistic and Delivery Management.

Proof has been furnished by means of an audit that the requirements of GB/T 24001-2016 idt

in ICT, devices, cloud computing, and other related business


ISO 14001:2015 are met.

Validity: The certificate is valid from 2021-11-04 until 2024-05-18.


It remains valid subject to satisfactory surveillance audits.

scopes.
This certificate information can be searched on CNCA official website http://www.cnca.gov.cn

2021-11-05

TUV Rheinland (China) Ltd.


No. 01/03B-08, Floor 7 and No. 01/04B-08, Floor 11,
AVIC Building, No.10B Central Road, East 3rd Ring Road,
Chaoyang District, Beijing 100022, P. R. China

www.tuv.com

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 75


ISO 14064 Greenhouse Gas Verification Statement

The ISO 14064 Greenhouse Gas Verification Program


provides clear standards for companies to monitor, quantify,
report, and verify greenhouse gas emissions in accordance
with international standards. This program helps identify key
emitters, assess emissions reduction targets, and develop
emissions reduction plans.

In 2021, Huawei Technologies Co., Ltd. obtained ISO 14064


certification again, with the verification covering Huawei's
R&D centers, manufacturing facilities, office buildings, data
centers, canteens, and leased premises. The company began
to include greenhouse gas emissions from raw material
procurement, employee commuting, and waste disposal
under "Scope 3: Other Indirect GHG Emissions" into its
verification.

网络型防火墙生态产品认证证书
证书编号:CEC2021CVP055000001

Eco-friendly Certification by CEC for


委托人
华为技术有限公司

Network Firewalls 地址:广东省深圳市龙岗区坂田华为总部办公楼

生产者
华为技术有限公司

China Environmental United Certification Center (CEC) is a


地址:广东省深圳市龙岗区坂田华为总部办公楼

生产企业

comprehensive certification and service agency that certifies 华为机器有限公司


地址:广东省东莞松山湖科技产业园区新城大道  号

leading green, energy-saving, and low-carbon products in 认证标准

China, as accredited by China's Certification and Accreditation 中环联合认证中心技术规范


CEC 055-2021《CEC 生态产品评价技术规范 网络型防火墙》

Administration Committee. 认证单元


模块化网络型防火墙
品牌:华为

In 2021, 72 of Huawei's HiSecEngine firewall products 产品型号详见证书附件


上述产品符合网络型防火墙生态产品认证实施规则 CEC-7030CVP-A/0 的要求,特发此证。
received Eco-friendly Product Certification, making them the  认证模式:型式检验+初始工厂检查+获证后的监督

first firewall products to receive this certification from CEC. 


本证书的有效性依据发证机构的监督获得保持,可通过扫描右下方二维码确认。


 发证日期:二〇二一年十月二十九日          有效期至:二〇二六年十月二十八日


签 发 人:

 


76 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Environmental Protection

CQC Certification for Energy-efficient Products

The China Quality Certification Center (CQC) assesses energy


efficiency in products based on national standards and
technical requirements. This is a voluntary certification program
designed to encourage more responsible consumption and the
use of energy-efficient and eco-friendly products.

In 2021, 30 of Huawei's CloudEngine top of rack (TOR)


switches received CQC certification for their high energy
efficiency, which meets the CQC 3140-2019 Technical
Specifications for Energy Savings Certification of Ethernet
Switches. This means they can significantly cut energy
consumption while delivering high performance.

Smart Green Medal

The Smart Green Medal is granted by SGS's senior expert


team after assessing products in multiple areas against
the certification standards, including materials, durability,
energy saving, security, and user experience, as well as the
related organization's production and operations.

In 2021, Huawei Mate 40 series, Mate X2, P50, nova 9,


nova 9 Pro, and FreeBuds 4 earned the Smart Green Medal
(Level 1 Certification) from SGS, which is its highest level
for rating green products.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 77


5 Healthy and
Harmonious Ecosystem
Caring for Employees

Business Ethics

Supply Chain Responsibilities

Community Responsibilities

78 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Healthy and Harmonious Ecosystem

As a digital and intelligent world is approaching, Huawei strives to


create even greater value for our customers, build better platforms
for our partners, provide our employees with more opportunities,
and promote more balanced growth for local communities. We are
working hard to ensure that the fruits of our innovation are benefiting
all people, all homes, and all organizations. We are committed to
doing our part to promote sustainable and inclusive economic growth.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 79


Caring for Employees

Employees are our most valuable asset. They are the mainstay of Huawei's sustainable development. Our commitment to improving
the living and working environments for our employees does not hinge on our business performance. We always strive to offer
them better dining, more leisure opportunities, and a more comfortable space. We aim to bring in outstanding global talent while
also unleashing the potential of our existing teams. Our incentive policies focus on how well employees fulfill their responsibilities,
and we offer top pay for top talent. We encourage our employees to dive headfirst into uncertain domains and nurture an open
organizational climate. We provide employees with systematic training and empowerment, and encourage managers and experts to
engage more with new employees to help them broaden their horizons. We assign the brightest minds to develop even brighter ones.

Employee Health and Safety


It is a company policy to care for our employees and always put their safety first. We are working to create a safe and comfortable
workplace, and we encourage subcontractors to do the same. Our EHS management systems cover all business domains across the
company, and our scientific management approaches help us meet and exceed all applicable legal and regulatory requirements.
Multiple Huawei subsidiaries like Huawei Technologies have obtained ISO 45001 certification.

Strengthening Intrinsic Safety Management to Prevent EHS Incidents in R&D Labs

In recent years, R&D labs have been engaging in more inspections without prior notice to assess their on-site
diverse and complex services and scenarios, which has emergency response plans, and to identify employees'
created greater challenges to operational safety. To tackle safety awareness and capability gaps. Improvement plans
these new challenges, we have taken a number of measures are then created and their execution is carefully monitored.
to guarantee the health and safety of our over 100,000 • Consulting with outside consultants: We bring in
R&D employees and ensure there are zero EHS incidents third-party consultants to evaluate the maturity
in our R&D labs. These measures include strict risk controls, of our EHS management system and help identify
process monitoring, red lines that cannot be crossed, and our weaknesses and blind spots compared with
consulting with external experts to identify blind spots. industry best practices. This has helped improve our
• Intrinsic safety design: As early as the lab planning management efficiency.
and design phase, we work to eliminate any risks • Capability improvement and EHS qualifications:
identified through site selection, building layout, We are continuously improving employees' safety
materials replacement, and process improvement to awareness and safety protection skills through EHS
ensure safe operations. management courses targeting different positions and
• New admission mechanism: We have established risk scenarios. We require all relevant employees and
a mechanism for introducing new equipment, new business directors to obtain EHS qualifications before
materials, new components, and new models based assuming their roles in R&D labs.
on whether they have met EHS requirements. This • Digital management platform: We are constantly
mechanism allows us to identify high-risk projects and improving our unified digital management platform
scenarios and develop countermeasures in advance. to support centralized management of our global
• Early warning mechanism: We have improved the R&D labs and improve management efficiency.
hierarchical management system for potential risks • Culture of safety: We have also conducted various
by implementing an early warning mechanism that initiatives such as an EHS Safety Month, interpretation
differentiates between different risks by their severity sessions on production safety laws, and safety
and resolving risks when they are identified. awareness programs to enhance EHS leadership and
• Blind test mechanism: Key labs are subject to random develop a culture of safety.

Third-party consultants assessing the maturity of


Managers taking an EHS qualification exam
our EHS management system

80 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Healthy and Harmonious Ecosystem

Joint Innovation with Customers for Better EHS Management

Over the last year as the pandemic continued, Huawei and allow them to quickly find remote support when
worked with customers to find innovative ways to ensure needed. This helps boost operation efficiency, virtualize
construction safety in delivery projects. By extensively EHS management, and mitigate risks more quickly.
using intelligent tools such as smart helmets, VR training,
• VR training: Our VR-based EHS training courses
and AI-powered intelligent inspections and approvals, we
allow operators to better understand operation safety
have further improved digital operations, reduced EHS
regulations, give them an immersive experience in
risks, and led the way in industry innovation.
identifying operation risks and performing emergency
• Remote EHS management: Due to the pandemic, response drills, and improve their safety awareness.
Huawei remotely managed EHS globally to reduce
the risk of infection during business trips and day-
to-day work. Digital tools now allow us to centrally At its annual supplier conference held
manage onsite operation safety, and our AI-powered online in November 2021, Vodafone Group
intelligent approval system has made EHS inspections presented Huawei with their "Health and
and approvals much more efficient.
Safety Award" in recognition of our efforts
• Smart helmets: We are promoting digital tools like
and contributions to occupational health
the smart helmets used at some of our customers'
sites in Africa. These helmets free up operators' hands and safety management.

"Health and Safety Award" from Vodafone Group

Huawei has a robust employee health and 15.04


13.98
safety management system and we strive 13.51
12.64
to ensure the health and safety of our 11.89
employees. We provide comprehensive social
and commercial insurance for our employees
and operate a global emergency response
system 24/7 to protect our employees and
provide timely emergency support. We offer
health checks, health counseling, health and
safety training, and healthy lifestyle guidance
to employees. We are also stepping up efforts
to provide more health assurance resources for 2017 2018 2019 2020 2021

employees. In 2021, we invested more than


Spending on employee benefits (CNY billion, 2017–2021)
CNY15 billion into these employee benefits.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 81


Protecting Employee Safety Through Targeted Pandemic Prevention and Control Measures

In 2021 as the pandemic continued, Huawei adopted • Communication and training: Communicated
more scientific pandemic prevention and targeted pandemic prevention strategies and plans through
control measures to ensure the health and safety of its multiple means (e.g., text, video, cloud classes, and
employees worldwide. These measures include: WeLink meetings), and provided targeted training
for employees working in different scenarios to
• Rapid nucleic acid tests: Mobilized resources and set strengthen protection requirements.
up fast channels to provide rapid nucleic acid testing
for employees. • Healthcare: Organized activities to help ensure the
health of employees, such as health week events,
• Vaccination: Obtained vaccines (including boosters) psychological counseling, and cloud-based sports
from multiple channels to ensure that employees competitions. We also helped employees on overseas
could be fully vaccinated as soon as possible. assignments return home safely as this became
especially difficult during the pandemic.
• Campus entry management: Limited campus entry
using an entry pass system to ensure employee safety During the pandemic, Huawei employees
on campus.
have remained dedicated to maintaining
• Disinfection: Fully disinfected company workplaces and the company's operations and creating
living environments using new anti-pandemic tools. value for society.

Scientific prevention and targeted control measures to ensure the health and safety of employees

82 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Healthy and Harmonious Ecosystem

Healthy Work-Life Balance at Huawei

Huawei has long been an advocate of a healthy work-life balance. One of our annual corporate
events is the "3 + 1" Activity Week, where employees are encouraged to take up a new hobby,
make a new friend, start a new sport, and read a new book. We are constantly working to
create a warm and harmonious organizational climate, where employees are encouraged to
take care of themselves and others.

Fitness at Huawei
In 2021, we held the second Huawei Fitness Festival in 10 cities, including Beijing, Shenzhen, and Shanghai, to encourage
employees to exercise and inspire employee passion. On the night of the event, vibrant lighting illuminated the night skies
of our campuses and thousands of Huawei employees participated in a lively workout program.

Huawei Fitness Festival in 2021

"3 + 1" Activity Week


Our annual "3 + 1" Activity Week kicked off in March 2021. During this week, employees were encouraged to show off
their hobbies, from botany, painting, and cooking to fitness, music, and dance.

Hobbies shared by employees during the 2021 "3 + 1" Activity Week

Reading at Huawei
Huawei has set up libraries on many of our campuses to create an environment that encourages employees to learn and
grow. Each library has a unique collection of books covering a wide range of topics. Our full-time librarians and online
lending services make it easier for employees to access these resources. We also organize online and offline book clubs,
so that employees can read, share, solve problems, and grow together.

Libraries and book clubs on Huawei's campuses

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 83


Employee Training and Development

Huawei offers two distinct career paths for employees:


the manager path and the expert path. Employees can
choose either path or switch between them to find the right
47 hours
job. Huawei also provides systematic training programs Average time Huawei employees spent in training sessions
for employees at different stages of their careers. For
new employees, there are programs for New Employee
Orientation (NEO), mentorship, and position-specific training. practicing what we learn. This philosophy drives our training
These programs help new employees get to know the and practice sessions to enable individual growth.
company better, learn the skills they need, adapt to their
new roles, and quickly grow. As they work their way up, In 2021, we offered a wide arrange of new resources to
employees are offered places in programs that help them employees through our iLearning platform. Employees
hone their expertise and management skills. We believe that across the company spent an average of 47 hours in training
the brightest minds can develop even brighter ones. All of sessions in 2021 and a total of 15,964 Huawei employees
our training program lecturers are managers and experts in served as part-time trainers and lecturers, contributing to
their own fields. We believe in learning through practice and employee upskilling.

Improving NEO to Help New Employees Grow Faster

Huawei's NEO is an important program designed to shape • Sharing real-world challenges to drive interest:
and pass on the company's culture and core values. NEO Huawei strongly encourages bright minds to utilize
helps new employees integrate into the company and their expertise to solve real-world business challenges.
grow quickly. Over the past two years, we have identified pressing
challenges in various business domains, and we have
2021 saw the start of new innovations to improve existing dedicated NEO courses on sharing these challenges
courses. with new employees. This is part of Huawei's broader
strategy of engaging bright minds from around the
• A new three-phase training program that facilitates
world to tackle real-world challenges.
employee integration: Before assuming their roles,
new employees learn about our corporate culture • A dedicated learning platform for global hires: A
and the knowledge and skills required for their new learning platform has been launched to facilitate
positions on a dedicated study platform. After NEO, the onboarding of new employees outside China. This
new employees are also given access to a designated platform currently offers 57 English courses, including
learning community that helps them learn position- courses on corporate culture and common workplace
essential skills so that they can better integrate into skills. In 2021, over 4,000 newly onboarded employees
their teams. used this platform.

iLearning Morning Express: One Carefully Selected Course for Employees to Study Every Day

iLearning is Huawei's digital learning platform. In with so many available for different subjects.
2021, iLearning began its transition from a learning
management platform to a learning experience system, To solve this problem, the iLearning operations team
to provide easy-to-use services that precisely reach the launched the "iLearning Morning Express", which
right target audiences. iLearning aims to become an selects one course every day from more than 10,000
open learning platform that supports more scenarios and courses and extracts the key points from the course
helps employees worldwide learn the skills they need into a 10-minute audio clip. At 6 a.m. every work day,
anytime and anywhere. the iLearning Morning Express is pushed to Huawei
employees worldwide, covering many different domains
By the end of 2021, iLearning had provided more like business, management, technology, industry insight,
than 30,000 courses and quizzes, growing employee and self-improvement. Throughout 2021, the iLearning
knowledge and skillsets. The only problem is that Morning Express delivered 168 clips and recommended
employees may have trouble choosing the right course, 132 courses to over 45,000 Huawei employees.

84 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Healthy and Harmonious Ecosystem

A Diverse and Inclusive Workforce

Huawei employs over 195,000 employees, serving more than three billion people around the world. 107,000 of these employees
work in R&D, accounting for 54.8% of our total workforce. Outside of Huawei's presence in China, 64% of our workforce is hired
locally. In 2021, we made more than 4,000 local hires at our offices outside of China, which is part of our efforts to create new jobs
and economic opportunities for the communities we serve.

As a global company, Huawei values diversity in its workforce and we are committed to creating an inclusive workplace where
all employees enjoy equal opportunities. We respect the lifestyles of all of our employees and aim to create an environment that
makes it easy for anyone to practice their beliefs and customs. For example, we have opened prayer rooms on our campuses. And
for nursing mothers, we provide lactation rooms. We also operate facilities like gyms, libraries, and cafes to provide quality services
that meet the diverse needs of our employees.

79.9% 79.4% 79.9% 79.8% 79.5%

Below 30
28%
30-50
70% Over 50 20.1% 20.6% 20.1% 20.2% 20.5%

2%
2017 2018 2019 2020 2021

Employee age (2021) Male and female employees (2017–2021) Male Female

Our Caring for Employees Policy lays out the principles and requirements
we believe that a good employer must meet to ensure employee care. All
Huawei subsidiaries have released their own corporate regulations based
on these policies, as well as local laws and regulations. We have also put
PhD or higher in place processes, systems, and baselines to create an open, inclusive
Other 4% workplace that encourages mutual respect and diversity. We are working
9% to improve the representation of women in leadership roles and bridge the
gender gap that characterizes the tech industry.
Bachelor's
degree
41%
When it comes to employee recruitment, promotion, and compensation, we
Master's do not discriminate against anyone based on race, religion, gender, sexual
degree orientation, nationality, age, pregnancy, or disability. We prohibit the use
46% of forced, bonded, or indentured labor, and we have detailed, equitable
regulations in place to prevent the use of forced labor, covering each major
phase of an employee's relationship with the company, including recruitment,
employment, and exit. We prohibit the use of child labor, and have effective
Level of education policies and measures in place to prevent the recruitment and use of child
labor. We also require the same of our suppliers and conduct regular audits
to ensure they do not use forced or child labor.

We have established effective mechanisms to ensure that our employees'


voices are heard. For example, we gather our employees' opinions
and suggestions through the Manager Feedback Program (MFP), the
organizational climate survey, the manager open day program, and more.
Employees can also file complaints and seek assistance through channels
such as the dedicated Committee of Ethics and Compliance (CEC) hotline
and our internal service hotline.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 85


Attracting Top Minds and Unleashing the Potential of Existing Teams

163
We aim to bring in top minds from around the world
while unleashing the potential of our existing teams.
We have set up more than 80 labs around the world to
dive deep into foundational technologies, and organized nationalities represented within
global competitions to attract top talent. Our employees Huawei's workforce
come from 163 different countries and regions.

As our founder Ren Zhengfei once said, "We can absorb


the energy of the universe over a cup of coffee." We are
constantly working to nurture an open organizational Huawei also offers challenging opportunities to
climate and diverse culture that lets senior experts outstanding employees. What sets employees apart
unleash their full potential and gives young employees within our organization is not their seniority, but the
opportunities to shine. We encourage our managers results they deliver. We link employees' personal grades
and experts to sit down more often with new employees and rewards to their contributions and capabilities, and
to have a coffee, chat, and broaden their horizons. We give bold assignments and fast-track promotions to
continue creating value for customers to obtain reasonable outstanding employees. As a result, top performers who
returns. We offer top pay for top talent, innovate and make unique contributions and have a strong sense of
make breakthroughs, and contribute to the communities mission and a can-do spirit are given the chance to grow
in which we operate. quickly and take on greater responsibilities.

The Huawei Software Elite Challenge

86 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report


Healthy and Harmonious Ecosystem

Business Ethics

Huawei works hard to conduct its business with integrity and system through root cause analysis and targeted
conform to business ethics standards and all applicable laws corrective action.
and regulations. This key principle is upheld by our highest
levels of management. We have worked for years to build • We attach great importance to compliance and strive to
a compliance management system that aligns with industry continuously enhance the compliance awareness of our
best practices and embed compliance management into every employees. Through publicity, training, exams, disciplinary
aspect of our business activities and processes, and these action, and other activities, we push employees to fully
efforts continue to this day. Huawei emphasizes a culture of understand the company's and their own obligations to
integrity and invests heavily to make it a reality. As such, every ensure compliance and incorporate this understanding
Huawei employee is required to understand, sign, and strictly into their behaviors.
adhere to the company's Business Conduct Guidelines (BCGs).
• With an open mind, we proactively work with customers,
• Our Chief Compliance Officer (CCO) manages the partners, regulators, and other stakeholders on
company's operational compliance, and reports to the compliance, and communicate our compliance principles
Board of Directors (BOD). Every one of our company's and practices to them to constantly enhance mutual
business departments and subsidiaries has also established understanding and trust.
its own compliance team, taking responsibility for the
management of their own operational compliance. Huawei is dedicated to ensuring better compliance across
multiple domains, including but not limited to trade
• We identify and assess risk according to applicable compliance, financial compliance, anti-bribery compliance,
laws and regulations and business scenarios. We have intellectual property (IP) and trade secret protection, cyber
formulated control measures that have been incorporated security and privacy protection, and fair competition. These
into our business activities and processes. This guarantees compliance requirements are embedded into our policies,
effective compliance management during operations. systems, and business processes.
Huawei also continuously optimizes its management

Compliance management training in Huawei France

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 87


Anti-Corruption and Anti-Bribery Compliance

Huawei has a zero-tolerance policy towards corruption provided to specialists in the compliance team and
and bribery. In every country where we operate, we to employees playing key roles in business processes.
conduct all business under a legal framework that Training content is distributed in many ways, including
supports fair competition and opposes bribery and video, forums, and dedicated online training channels.
corruption. We place our obligation to fight bribery and All partners of Huawei – whether they are directly
corruption above our own commercial interests, and we providing services and fulfilling their contractual
are working to ensure that our business is conducted in obligations to Huawei, or providing services and
a fair and transparent manner. fulfilling their contractual obligations to Huawei
customers or other third parties on behalf of Huawei
• We are strengthening our anti-bribery and anti- – are also required to comply with all applicable
corruption compliance system in four ways: a culture laws and regulations, industry ethical standards, and
of compliance, governance and oversight, compliance Huawei's Anti-corruption Policy for Partners, Huawei
risk assessments and prevention–discovery–response Supplier Social Responsibility Code of Conduct, Code
techniques, and continuous operations. We regularly of Conduct for Partners of Huawei, and Honesty and
conduct compliance audits to identify potential Integrity Agreement.
compliance risks across all business scenarios, and
optimize and oversee the implementation of related • We have established complaint channels through
policies and processes. which employees and other parties can report
violations. When Huawei receives a complaint, we
• Huawei works hard to create a culture of integrity launch an investigation and protect the person
and enhance its compliance capabilities. All lodging the complaint from any form of threat or
employees are required to study, sign, and comply retaliation by keeping their identity secret.
with the company's BCGs and anti-corruption policies.
Our customized training addresses the different risk • We continually communicate with our stakeholders
scenarios in different countries and regions where (e.g., industry peers, consultants, partners, and NGOs)
Huawei operates, and is available for different about compliance, clarifying our position and views
employee groups. For example, besides general on anti-bribery and anti-corruption. This helps ensure
training for all employees and targeted training for that all stakeholders have a clear understanding of
those in high-risk positions, enhanced training is Huawei's compliance regulations and policies.

For details about Huawei's statements and policies on anti-corruption and anti-bribery, please visit the "Policies" section
at: https://www.huawei.com/en/sustainability/sustainability-report

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Healthy and Harmonious Ecosystem

Intellectual Property and Trade Secret Protection

Huawei is dedicated to its long-term investments into ensure that employees carry out business activities
R&D and to continuously enriching its intellectual legally and in accordance with our contracts.
property (IP) portfolio. Huawei is one of the world's
largest patent holders. By the end of 2021, Huawei held • Embedding trade secret protection requirements into
more than 110,000 active patents across more than business processes such as R&D, sales, procurement,
45,000 families. The company believes that respecting and HR, conducting regular reviews, and
and protecting IP is the bedrock of innovation. As a continuously improving management mechanisms
follower, practitioner, and contributor of IP rules, as well by taking away lessons and case studies from day-
as an innovator, Huawei invests heavily in IP protection to-day operations.
and respects the IP of others. Huawei has reached
cross-license agreements with major ICT companies • Organizing publicity, training, and exams on trade
around the world, and works tirelessly to improve the secret protection for all employees, so that they are
environment for protecting innovation and IP in the fully aware of their obligations and responsibilities
industry and across countries and regions. regarding trade secret protection compliance.

Huawei is committed to protecting its own IP and trade • Conducting supervision, including checks and
secrets, while respecting those of others. We explicitly audits, to examine efforts aimed at protecting the
prohibit our employees from improperly acquiring, trade secrets of others and thus ensure effective
disclosing, using, or disposing of the trade secrets of implementation of policies, rules, and processes.
others. The key measures Huawei has taken to protect
the trade secrets of others include: • Establishing an accountability system based on official
corporate policies, such as the Accountability Protocol
• Issuing our Regulations on Respecting and Protecting for Infringements of Other Parties' Trade Secrets and
Third Party Trade Secrets, which set out clear rules the Accountability Rating Criteria for Information
that employees must follow to respect and protect the Security Violations, to hold violators accountable for
trade secrets of others during business activities and any trade secret violations.

Every year, Huawei invests Huawei has one of the The patents held by Huawei
over 10% of its sales revenue largest patent portfolios are broadly recognized
into R&D. in the world. across the industry.

In 2021, our total R&D By the end of 2021, Huawei Patent panorama reports
expenditure amounted to held a total of 110,000+ active published by independent third
CNY142.7 billion, equaling patents, across 45,000+ patent parties show that Huawei is an
22.4% of the company’s total families. industry leader in the fields of
revenue. 5G, Wi-Fi 6, and H.266.
In terms of the number of
Over the past decade, patents granted in 2021, More vendors are signing
Huawei’s total R&D investment Huawei ranked No. 1 at both agreements with Huawei
surpassed CNY845 billion. the China National Intellectual to use our patented
Property Administration and technologies, expanding from
In 2021, 107,000 employees,
the European Patent Office, the communications industry
representing 54.8% of
and No. 5 at the United States to intelligent vehicles, smart
Huawei’s total workforce,
Patent and Trademark Office. homes, and IoT.
worked in R&D.

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Trade Compliance

Huawei complies with applicable laws and regulations trade compliance into the company's rules and processes,
of the countries and regions in which it operates. and manage and oversee trade compliance in each link
These include applicable export control and sanction of our business operations, ranging from procurement,
laws and regulations of the UN, China, the US, and the R&D, and sales to supply and services.
EU. We have invested immense efforts over the years
to establish a mature and sustainable internal system Huawei continuously pushes employees to further their
for trade compliance in line with standard industry own trade compliance awareness. Employees must sign
practices, and have worked tirelessly to constantly Huawei's BCGs each year, which include commitments to
improve this system. observing applicable export control laws and regulations.
Huawei provides training sessions on trade compliance
We have also established an integrated trade compliance to managers and employees across the company, with
management organization within the company. This training taking various forms across different sessions.
organization manages trade compliance across both These efforts, combined with targeted training for specific
group functions and field offices. In addition, we have business scenarios, ensure employees fully understand
established specialist teams in our global offices that their own responsibilities and obligations, as well as
monitor changes to local laws and regulations, integrate those of the company, regarding export control.

For details about Huawei's Statement of Compliance with Export Control Regulations, please visit the "Policies" section at:
https://www.huawei.com/en/sustainability/sustainability-report

Summer training for Huawei compliance officers

Fair Competition and Trade

Huawei has long placed fair trade as a priority achievement of these objectives. We also provide
for operational compliance, and has established dedicated training for compliance officers to ensure
organizations, processes, regulations, and rules to ensure that related rules and guidelines are fully implemented.
competition compliance. • Huawei takes numerous practical measures to
• Huawei has established dedicated compliance ensure competition compliance, including constant
organizations, appointed compliance officers in each business process optimization and long-term
region where it operates, and put in place a range of mechanisms for independent sales consultant
supporting regulations and rules, including guidelines, management, due diligence on third-party suppliers,
implementation rules, manager and employee and the optimization of baselines for sales contract
statements, partner commitment letters, as well as compliance with competition laws.
training materials on compliance with competition laws.
• Huawei has embedded competition compliance rules Huawei is actively contributing to a fair market
and regulations into its management systems and environment by raising employee awareness
business processes. We customize policies for each
country based on local competition laws. We update
and fully adhering to the fair competition
compliance objectives every year, and oversee the principle in our business operations.

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Healthy and Harmonious Ecosystem

Supply Chain Responsibilities

Huawei manages sustainability in line with industry best practices and globally recognized standards. Sustainability plays a vital
role in our procurement strategy and is a key part of our supplier management process, from supplier qualification and selection to
performance appraisals and portfolio management. We regularly appraise suppliers' sustainability performance and facilitate their
continuous improvement by working closely with customers, suppliers, industry organizations, and other stakeholders.

Procurement CSR Management System effective measures to prevent potential health and safety
accidents, or diseases that may be caused due to exposure
Huawei has established its procurement CSR management in workplaces (e.g., collective infections).
system based on the OECD's Due Diligence Guidance for
Responsible Business Conduct and the IPC-1401 Corporate 10. Corruption or dishonest acts that violate the requirements of
Social Responsibility Management System Standard, and "no bribery, no gifts, no conflicts of interest, no falsification,
incorporated CSR requirements into our procurement strategy no cutting corners, no fraud, and keeping promises".
and business processes. Our Supplier CSR Agreement is
prepared according to the Responsible Business Alliance To achieve the goal of sustainable procurement, we regularly
(RBA) Code of Conduct and the Joint Audit Cooperation (JAC) deliver CSR training to all procurement staff. This training
Supply Chain Sustainability Guidelines. Huawei requires that covers supplier CSR agreements, red lines, processes, and audit
all suppliers sign and abide by the Supplier CSR Agreement. practices related to CSR in procurement. CSR requirements are
This agreement covers five areas: labor standards, health incorporated into the performance indicators of all teams in
and safety, environmental protection, business ethics, and our procurement department.
management systems. Huawei sees the use of child labor or
forced labor as red-line issues, and we have zero tolerance for Supplier Risk Rating and Auditing
violations of CSR red lines.
Huawei adopts a risk-based approach to supplier audits.
Huawei's CSR red lines in procurement include: Every year, we assess all major suppliers, which represent
90% or more of our procurement spending. We assign each
1. Use of child labor. supplier one of three risk ratings (high, medium, or low)
after a comprehensive assessment of indicators such as
2. Use of prison labor (including using prisons as suppliers procurement amount, material category, supplier location,
or subcontractors) or forced labor (including restricting CSR performance score, and previous audit records. We
personal freedom or detaining personal identity documents.) develop an annual sustainability audit plan to deal with
suppliers that are assessed as posing medium or high risk.
3. Violence, physical punishment, sexual harassment, illegal
body searches, cross-gender body searches, and other We perform onsite assessments on all potential suppliers
similar behavior. to examine their sustainability systems, their capacity to
comply with applicable laws, regulations, and the Supplier
4. Salary payments below the local minimum wage. CSR Agreement, and their actual level of compliance. No
company that fails the assessment is eligible for consideration
5. Negligence that leads to major fires or explosions. to become a Huawei supplier.

6. Working conditions that seriously endanger personal In 2021, we updated our Supplier CSR Audit Checklist by
health and safety or lead to fatal field incidents. referencing industry best practices to better meet customer
requirements. This updated checklist set higher requirements
7. Illegal emissions of any hazardous or toxic wastes, for carbon inventories and carbon emissions reduction, as
including waste water, gas, and residue. well as the responsible management of minerals. We conduct
supplier CSR audits using internationally recognized methods
8. Negligence that leads to media crises or serious mass such as onsite inspections, employee interviews, management
disturbances, such as collective labor disputes, mass interviews, documentation reviews, and online searches. We
brawls, mass poisoning, unnatural deaths, or other use the Blue Map database developed by the Institute of
incidents causing casualties. Public and Environmental Affairs (IPE) to assess suppliers'
compliance with environmental requirements. Prior to audits,
9. Unsafe and unhealthy working environments that lack we provide suppliers with coaching on CSR self-assessments.

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During audits, we arrange for experts to work onsite with four grades (A, B, C, or D) based on their sustainability
suppliers so that they can identify problems and provide performance. In 2021, we appraised the sustainability
recommendations for improvements. performance of more than 1,600 major suppliers.

In 2021, we assigned CSR risk ratings to more than 1,600 The amount of business we do with each supplier depends
major suppliers and conducted onsite audits on 318 suppliers. partly on their sustainability performance, which is also a
factor considered in our tendering, supplier selection, portfolio
management, and other processes. Where suppliers are
319 318
287
equally matched in other factors, those that perform better
280
in sustainability are given priority for share of business or
business opportunities. The reverse is true for low-performing
193 suppliers. Depending on the situation, we may instruct
suppliers with poor sustainability performance to resolve
existing issues within a specified timeframe. Alternatively,
we may reduce their share of business or offer them fewer
business opportunities. We may even terminate our business
relationships with those that display exceptionally poor
2017 2018 2019 2020 2021 sustainability performance.

Number of suppliers on which


Huawei conducted CSR audits onsite (2017–2021)
Supplier Capability Improvement

If we find an issue during an onsite audit, we help the Huawei regularly provides sustainability training and coaching
supplier resolve the issue through the CRCPE methodology for our suppliers. We ask our suppliers to adopt industry best
(check, root cause analysis, correct, prevent, and evaluate). practices and embed sustainability requirements into their
This methodology helps suppliers identify common problems business strategies to reduce risk and boost efficiency. We
and develop targeted solutions. encourage our suppliers to learn from each other and grow
together through benchmarking. Based on our many years of
experience, we have developed a cost-effective and efficient
Learning by Benchmarking model for suppliers. This model
1% 16.4% includes the following steps:
Business Management
ethics systems
1. Setting priorities: We ask suppliers about their CSR
11.7%
Environmental
44.1% concerns, list the most common issues, and rank them in
Health and
protection
safety order of priority.

26.8% 2. Identifying benchmarks: We identify which suppliers


Labor
standards
perform best and analyze their best practices.

3. Sharing and learning: We invite the benchmark suppliers


to share their best practices and encourage all suppliers to
Supplier CSR audit findings in 2021 learn industry standards and norms.

4. Implementation: We ask experts to develop templates and


Supplier Performance Management checklists and help suppliers assess their own performance
and introduce best practices.
Every year, Huawei appraises suppliers' sustainability
performance based on their sustainability achievements, onsite In 2021, we helped address supplier concerns through online
audit results, and improvements made, as part of their overall meetings, including issues such as pandemic prevention
performance appraisals. During this process, we also consider and control, employee care, employee communication, fire
how they manage the sustainability of their own suppliers. prevention, hot work, and tier-2 supplier management. We
We encourage our suppliers to develop a CSR management shared ideas and case studies with suppliers, and drafted
system based on the IPC-1401 Corporate Social Responsibility guidelines for their self-assessments. A total of 1,000 people
Management System Standard. Suppliers are classified into from 200 suppliers participated in these meetings.

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Healthy and Harmonious Ecosystem

Supplier CSR Training

Huawei provides both online and offline CSR training standards and best practices, customer requirements,
for suppliers every year. We introduce the RBA and and strategic needs) into the existing ISO 14001/ISO
JAC industry standards, industry best practices, as well 45001-based management system, (2) integrating
as Huawei's supplier CSR agreements, red lines, audit CSR requirements into the operations of all functional
practices, and management regulations related to departments, and (3) establishing a customer-oriented
CSR in procurement. We also encourage our suppliers CSR management system for self-management.
to incorporate CSR requirements into their internal
management systems and operations. Huawei provides
dedicated training on CSR red lines and specific scenarios
for suppliers in key industries or regions and other key
suppliers. We also solicit training topics and quality case
studies from suppliers, and encourage them to learn
from each other.

Huawei encourages suppliers to develop their CSR


strategies through SWOT analysis in line with the IPC-
1401 Corporate Social Responsibility Management
System Standard. We also encourage them to take
the following measures to raise the bar for CSR
management, in addition to complying with legal
requirements: (1) embedding five levels of CSR
Huawei's CSR training for suppliers
obligations (laws and regulations, ethics, industry

Stakeholder Engagement and Cooperation

Stakeholder engagement and cooperation are essential to a sustainable value chain, and Huawei actively engages in due diligence
across the global supply chain. Specifically, we communicate with other industry players, audit suppliers together with customers,
help suppliers improve their capabilities, and promote industry standardization to jointly create a responsible supply chain.

Enhancing Information Exchange and Joint Audits with Customers for a More Transparent Supply Chain

Huawei actively listens to customer requirements and expectations regarding supply chain sustainability. Through
communication with customers, we seek to understand new global trends in CSR; responsible business conduct (RBC);
environmental, social, and governance (ESG) trends; and the progress of supply chain due diligence legislation in
European countries. We also conduct self-assessments based on the OECD's Due Diligence Guidance for Responsible
Business Conduct and share the assessment results with customers.

In 2021, Huawei communicated with more than 70 customers specifically on CSR due diligence measures such as supply
chain traceability, supplier whitelists, and complaint and appeal mechanisms.

Huawei also recommended three suppliers for joint audits organized by the Joint Audit Cooperation (JAC), an association
of telecom carriers. The JAC assigned experts from independent third-party audit organizations to assess these suppliers
onsite. The average audit score of the three suppliers was 86, and the audit results were shared with the JAC.

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Actively Participating in Industry Exchanges and Collaboration to Accelerate Industry Standardization

Huawei actively collaborates with industry organizations,


including the RBA, JAC, IPC – Association Connecting IPC-1401A
Electronics Industries, and China Electronics 2021 - October
Standardization Association (CESA). This helps us Corporate Social Responsibility
Management System Standard
align with industry trends, share best practices in CSR
Supersedes IPC-1401
management, translate industry best practices into March 2017

industry standards together with our partners, and drive An international standard developed by IPC

continuous improvement across the whole industry.

In 2021, Huawei led the revision of the IPC-1401


Corporate Social Responsibility Management System
Standard, which was then released by IPC globally. Since
2014, more than 20 industry organizations and 300
companies have sent more than 400 expert volunteers to
participate in the formulation of the standard.

The standard defines CSR as responsible business


conduct and responsible products and services. It
requires the inclusion of CSR as a business requirement
in corporate strategies and activities of functional
departments by aligning with five levels of compliance
obligations: laws and regulations, ethics, industry
standards and best practices, customer requirements,
and strategic needs. This standard will help enterprises Huawei led the revision of the IPC-1401 Corporate
establish differentiated competitiveness by pursuing Social Responsibility Management System Standard as
innovation in CSR practices, adopt consistent standards, part of its efforts to promote industry standardization
and quickly align with the CSR requirements of the entire
supply chain, both upstream and downstream.

Responsible Management of Minerals Huawei has established a risk-based system for the
responsible management of minerals based on the OECD's
Huawei is committed to the responsible management Due Diligence Guidance for Responsible Supply Chains of
of minerals and requires the same of our suppliers. We Minerals. Each year, through this system, we identify suppliers
have incorporated related requirements into supplier of five conflict minerals: tin, tantalum, tungsten, gold (3TG),
qualification, supervision, and audit processes as part and cobalt. Using the Conflict Minerals Reporting Template
of our CSR management system in procurement. As a (CMRT) and the Cobalt Reporting Template (CRT), we urge
downstream company in the mineral supply chain, Huawei suppliers to identify and investigate all smelters within their
does not directly purchase any minerals, and there are supply chain. We also require that all identified smelters do
at least 7 tiers between Huawei and mining companies. not purchase minerals from conflict-affected and high-risk
Huawei requires that our suppliers do not purchase conflict areas (CAHRAs), and urge smelters that have not obtained
minerals to ensure that their products never directly or the RMAP certification to get the certification within a
indirectly fund armed conflicts or any other inhumane specified timeframe when necessary.
act. Huawei also actively works with global industry peers
through industry initiatives like the Responsible Minerals
Initiative (RMI) and the Responsible Cobalt Initiative (RCI). In 2021, Huawei collected a list of 225 smelters
Together with partners both up and down the supply chain, in its supply chain survey. We have shared
we conduct supply chain surveys, create a complete list of the results of our due diligence regarding
all related smelters, and push these smelters to apply for
or maintain the Responsible Minerals Assurance Process responsible mineral management with more
(RMAP) certification. than 60 customers.

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Healthy and Harmonious Ecosystem

Community Responsibilities

US$150 million
Seeds for the Future 2.0 Program:
Cultivating Digital Talent for a Fully
Connected, Intelligent World
will be invested in the Seeds for the Future 2.0 program over
the next five years, which will focus on digital talent cultivation In the digital economy, digital talent plays an important role in
and benefit over three million more people driving digital transformation and economic growth. Huawei
is committed to cultivating digital talent in the countries and
Huawei is an active, productive member of the communities regions in which it operates. In July 2021, Huawei launched
in which it operates. We fulfill our social responsibilities its Seeds for the Future 2.0 program. Through this updated
and give back to local communities by making a lasting, program, Huawei plans to invest US$150 million over the next
positive difference with digital technology. We work closely five years to cultivate digital talent. This program is expected to
with governments, customers, enterprises, and non-profit benefit over three million more people. Since its launch in 2008,
organizations to launch social contribution programs. We the Seeds for the Future program has attracted participants
work hard to develop skilled local workforces and protect the from 137 countries and regions, and benefited more than
environment. We also make donations to help people in need. 12,000 students.

Seeds for the Future Program's First Global Tech4Good Competition

Huawei's flagship CSR program Seeds for the Future aims from over 50 countries and more than 30,000 people
to share ICT knowledge with young students by showing watched the championship round. The team from
them how ICT is applied and how the ICT industry works. Thailand got the first place. They developed a faster
Due to the ongoing pandemic, we have moved the Seeds emergency treatment solution that can handle difficult
for the Future program online. In 2021, we held new events road conditions. This team used 5G, AI, and cloud
and introduced new activities, attracting more than 3,600 to design an optimal delivery route and real-time
students from 118 countries. More than 1,300 stakeholders, interaction solution. By reducing delays on the road,
including international organization representatives, local emergency patients can get to hospitals faster, increasing
government officials, professors, and scholars, supported their likelihood of survival. The second and third place
the program and attended related activities last year. prizes were awarded to the Vietnamese team's sign
language translator app and the Libyan team's solution
In 2021, we also hosted our first Global Tech4Good for premature babies, respectively. The Audience Award
Competition. The competition aims to raise students' went to the Brazilian team's easy water supply solution.
awareness of challenges to local sustainable
development, encourage students to use the ICT skills Students from winning teams received two months of
they learn to explore solutions that are both technically tutoring to encourage them to chase their dreams and
and commercially viable, and help students turn their create a better future with their love and respect for life,
dreams into reality. The competition attracted students the earth, and nature.

Participants of the Seeds for the Future program The team from Thailand that won first Global
attending online training Tech4Good Competition

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Seeds for the Future Bolivia: Assigning the Brightest Minds to Develop Even Brighter Ones

4,000
On March 31, 2021, Bolivia's Ministry of Education hosted
the 2021 Seeds for the Future Program Opening Ceremony
and the Second Talent Training Program Signing Ceremony,
marking the launch of the fifth Seeds for the Future Bolivian teachers have participated in the ICT
program in Bolivia. A total of 95 stakeholders attended training program
the event, including Bolivia's Minister of Education and
four Deputy Ministers of Education, officers from the
Chinese Embassy in Bolivia, and representatives of Bolivian
universities and the media. At the event, Huawei and
the Bolivian Ministry of Education announced a strategic
partnership in talent development.

Together, the two parties selected more than 20 Bolivian


students to participate in the Seeds for the Future
program. They also expanded the program to provide ICT
training for Bolivian teachers. Through the government's
online education platform, teachers can access Huawei-
developed courses in Spanish free of charge, covering
topics from 5G and cloud computing to IP networks and
IT. These courses are intended to improve the ICT skills of
teachers across the country and help them cultivate more
digital talent to advance Bolivia's digital economy. By the
Opening ceremony of Seeds for the Future Bolivia
end of 2021, about 4,000 teachers had been trained.

Cultivating Digital Talent Through ICT Training at Japanese High Schools

1,661
In 2021, Huawei launched the Seeds for the Future
program in Japan to provide ICT training for high school
students. This program aims to help the students better
Japanese high school students (about 50% of whom were understand the ICT industry and cultivate potential
girls) have received ICT training as part of the Seeds for digital talent.
the Future program
The program invited professors and scholars from well-
known Japanese universities to share basic ICT knowledge,
applications, and success stories from around the world
with high school students. Through this program, students
have broadened their horizons and improved their
understanding of the ICT industry by learning about how
ICT has changed and accelerated social and industrial
development. At the end of the program, the students
participated in a competition on addressing social issues
with creative ICT solutions and the winners were invited to
visit Huawei's headquarters in China.

By the end of 2021, 1,661 high school students (about


50% of whom were girls) in 16 cities across five Japanese
Japanese high school students at an ICT training session
prefectures had participated in this program.

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Healthy and Harmonious Ecosystem

Cultivating Digital Talent by Partnering with Universities and Sponsoring International Competitions

Huawei is a main partner of international competition organizations such as Huawei hopes that these
the International Collegiate Programming Contest (ICPC). By sponsoring global
expert lectures, online
student competitions and training activities, Huawei aims to provide students with
a platform that they can use for advanced training and to pursue innovation. learning activities, training
programs, and competitions
In 2021, Huawei organized multiple training camps and workshops together
will enable students to
with its partners. As part of these programs, we invited more than 40 experts
to give lectures on the industrial technologies involved in basic research in better understand real-
mathematics, physics, and chemistry. We have also supported international world technical challenges,
competitions by designing problems for participants, providing training
and encourage them to
platforms, and coaching students on problem-solving techniques. To date,
Huawei has shared more than 18 cutting-edge subject areas for industrial explore challenging subject
application with students, and provided research and experimental platforms areas that advance science
oriented to the future of information terminals, computing, and connectivity.
and technology and propel
These competitions and platforms aim to help students from around the world the industry forward.
learn and improve their own expertise and skills. For example, in the first phase
of the ICPC Training Camp powered by Huawei, 576 students from around the
world participated in online algorithm training that would better prepare them
for their future study and development in the field.

Winners, including the top 30 contestants and nine coaches, receiving gifts from members of the organizing committee of the
Communication Routing Challenge, hosted by Huawei and ICPC, that attracted nearly 8,000 participants from all over the world

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Providing One-stop Services to Help Developers Seize Opportunities

Participants of the HUAWEI Student Developers program

5.4 million+
HUAWEI Developers is Huawei's open service platform
for global developers. It provides developers with one-
stop services from app development and operations
to monetization and brand communication. This is developers from around the world have
part of Huawei's efforts to create an open innovation registered with HUAWEI Developers
ecosystem with developers for shared success. More
than 5.4 million developers from around the world have
registered with HUAWEI Developers. HUAWEI Developers
also has an online Developers Training platform that
offers a series of online courses, and hosts a number
of initiatives to support developers, including the DIGIX has hosted several offline summits around the world
innovation contests, HUAWEI Developer Day and where outstanding women from various tech sectors
other onsite activities for developers, the Shining-Star shared their technology, experiences, and stories. In
Program, HUAWEI Developer Groups, HUAWEI Student the 2021 HUAWEI HMS App Innovation Contest, a
Developers, and HUAWEI Developer Experts. More and new Tech Women's Award was added to motivate
more developers from around the world are directly or women developers to innovate. To encourage more
indirectly benefiting from the program. women developers to work in the tech sector, the HWD
program also donated exam vouchers worth one million
In March 2021, HUAWEI Developers launched the Chinese yuan to 2,000 female students studying science,
HUAWEI Women Developers (HWD) program. This technology, engineering, and mathematics (STEM) from
program aims to empower women developers, provide secondary and higher vocational schools. The exams are
them with necessary resources, and inspire innovation part of Huawei's 1+X mobile app development vocational
from women in the tech industry. The HWD program skills certification program.

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Healthy and Harmonious Ecosystem

Huawei ASEAN Academy: Cultivating More ICT Talent for a Digital ASEAN

15,000+
Innovative ICT talent is urgently needed to advance the digital economy in ASEAN.
Huawei is doing its part through its ASEAN Academy, which aims to create an ICT
talent ecosystem upon which a stronger digital economy can be built.
students have participated in the
In 2021, the Huawei ASEAN Academy organized various talent development training and certification programs
programs such as the Seeds for the Future program, ASEAN Lectures, ICT skill provided by the Huawei ICT
training camps, and ICT skill certifications and competitions. These programs Academy in ASEAN in collaboration
were run in collaboration with regional governments, ministries, ICT industry with 262 leading universities
organizations, leading universities, and ICT ecosystem partners. They have so far
attracted more than 100,000 people from ASEAN countries, including Malaysia,
Indonesia, and Thailand. Through its partnership with 262 leading universities,
the Huawei ICT Academy has provided training and certifications for more than
15,000 students. In 2021, Huawei and the ASEAN Foundation jointly held the first
Digital Talent Summit, where the two parties released the 2022 Asia Pacific Digital
Talent Insights report and signed a Memorandum of Understanding (MoU) for
Seeds for the Future to develop a skilled digital workforce for the ASEAN.

Huawei will continue to invest in helping ASEAN countries develop more ICT
talent in the future.

Huawei ICT training in Indonesia

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Creating Value for Local Communities

400+
Huawei works hard to do its part as a responsible corporate citizen. By working
with partners such as international organizations, local governments, and regional
organizations, we actively run social contribution programs in the countries and
regions in which we operate. In 2021, Huawei ran more than 400 social contribution social contribution programs run by
programs around the world to benefit and support local communities. Through our Huawei around the world
technological innovations and business activities, we promote local digital economies,
cultivate digital talent in local communities, protect the environment, and help those
in need.

The Huawei Spark Accelerator Program Supports Startups Worldwide

The Huawei Spark Accelerator program aims to use its In August 2021, Huawei pledged to invest
global business and technology platforms to build an
inclusive ecosystem for start-ups, incubate and support
US$100 million into this program over the
global startups, and promote social and economic next three years. As part of this investment,
prosperity in the countries and regions where we operate.
we plan to recruit 1,000 startups and shape
Since its launch in Singapore in August 2020, the Huawei 100 of them into scaleups, and cultivate
Spark Accelerator program has attracted over 1,400 10,000 developers in Asia-Pacific countries
startups from more than 90 countries. The program has
supported more than 60 startups, over half of which
such as Indonesia, the Philippines, Sri Lanka,
have seen significant growth in their business. and Vietnam.

2021 HUAWEI CLOUD Spark Founders Summit

100 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Healthy and Harmonious Ecosystem

Launching a Campaign to Plant Poplar Trees in Gansu Province, China

Poplar trees planted to reduce soil erosion and absorb CO2

62,439
Desertification is a major climate change issue that has impacted multiple parts
of the world, and China is one of the countries that has been hit the hardest.
To curb desertification caused by wind erosion and protect the environment,
poplar trees have been donated by Huawei and the China Green Foundation launched a campaign to bring
Huawei and its consumers, which consumers together to plant poplar trees in Gansu Province, China.
are expected to absorb 13,470 tons
of CO2, equivalent to pulling about In April 2021, 62,439 poplar seedlings were donated by Huawei and its consumers,
5,000 1.6L vehicles off the road for which were subsequently planted in the desert in Jinta County, northern Gansu.
one year This was the first grove of poplar seedlings planted in Jinta County in 2021.

Poplar trees can reduce soil erosion, improve soil quality, and help create an
eco-friendly oasis. They can also absorb a large amount of CO2. Each poplar
tree absorbs on average 215.68 kg of CO2 over its lifecycle. That means one
hectare of properly planted poplar trees (calculated based on 630 trees per
hectare) can absorb 135,878.4 kg of CO2 over the trees' lifecycles. The 62,439
poplar seedlings planted over 99.2 hectares of land serve as wind breaks, which
will help prevent desertification over a 744-hectare area of sandstorm-prone
land, equivalent in size to 1,042 football pitches. These trees are expected to
absorb 13,470 tons of CO2 over their lifecycles, equivalent to pulling about 5,000
1.6L vehicles off the road for one year.

This campaign is only one of the many environmental protection


programs at Huawei. Huawei understands that every small effort
can lead to a better natural environment. We will continue to
work with governments, non-profit organizations, customers,
consumers, and partners to help build a greener world.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 101
Promoting Gender Equality: Allowing More Women to Benefit from Digital Technology

According to the Global Gender Gap Report 2021 from the were also invited to share their experiences and views.
World Economic Forum, women continue to be severely
underrepresented in three quarters of the world's "jobs of In July 2021, Huawei and the Mexican Ministry of Foreign
tomorrow" – a category which includes Cloud Computing, Affairs launched the 1,000 Talents for the Digital Development
Data and AI, Engineering, and Product Development. of Latin America and the Caribbean program. This program
is designed to help more than 30 countries across Latin
As a responsible member of the global tech community, America and the Caribbean develop female digital talent,
Huawei advocates for gender equality and works to promote increase women's competitiveness in the job market, and
women's participation in the ICT industry and digital improve women's participation in the digital economy. As part
economy. In 2020, Huawei launched the Women in Tech of this program, Huawei will provide more than US$200,000
program as part of our efforts to make "Tech for Her, Tech by worth of scholarships, ICT training courses, and certification
Her, and Tech with Her" a reality. This program has become opportunities for 1,000 female students and ICT specialists
one of the company's most important CSR programs. selected by the Mexican Ministry of Foreign Affairs.

In 2021, we released our Statement on Gender Equality


in which we outlined our efforts to empower women with
our technology and platforms, help more women enter the
technology industry, and cultivate women leadership. We
encourage women employees to take up executive positions,
and organize support groups and salons where they can
share their experience.

During the pandemic, Huawei continued to support women


around the world through dedicated activities such as
scholarship programs, summits, training, and leadership
improvement programs. We hope the skills and tools women
The Executive Director of the Mexican Agency for
obtain through these activities will encourage them to join International Development Cooperation and Huawei Mexico
the ICT industry. CEO signing an MoU for the 1,000 Talents for the Digital
Development of Latin America and the Caribbean program
In 2021, Huawei organized a series of programs all over the
world themed Women in Tech.

In March, Huawei launched the global flagship program, In August, Huawei held the first Summer School for Female
HUAWEI Women Developers, to help women acquire the skills Leadership in the Digital Age in Lisbon, Portugal. A total of
and resources they need to advance their careers as developers. 1,225 students from 27 EU member states applied for this
program, and the final 27 participants were able to take part
In April, Huawei held the 2021 HUAWEI Women Developers in a week-long series of masterclasses, team projects, and
Summit in China, where ideas and tools were shared to cultural exchanges. They also received specialized training
support women developers in career development and (e.g., coding courses), and listened to female entrepreneurs
product development. Women leaders from the ICT industry and executives from different industries share their experience.

Participants of the Summer School for Female Leadership


Women representatives delivering keynotes at the summit
in the Digital Age

102 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Healthy and Harmonious Ecosystem

In September, Huawei and the Indonesian Women's In November, Huawei launched its second annual TECH4HER
Parliamentary Caucus (KPP-RI) organized a digital literacy scholarship program in Ireland. This program offered a total
workshop to improve women lawmakers' digital skills. The of EUR90,000 in scholarships to female students studying
workshop – Women in Tech: Women Leadership in the Digital STEM at three local universities. Professor David FitzPatrick,
Era – attracted nearly 200 women lawmakers. The Speaker President of Technological University Dublin, said that this
of the Indonesian Parliament, the Chief of the Indonesian scholarship would encourage more local women to study
National Police, and the Chairwoman of the KPP-RI delivered computer science, shine in the classroom and at work, and
keynote speeches. help them become future tech leaders.

Members of the KPP-RI attending Huawei's digital literacy Sarah Jane Delany (second from left), Professor of Inclusive
workshop Computer Science at Technological University Dublin, talking
about TECH4HER and other Women in Tech initiatives as a
member of the STEM education panel at Huawei 2021 Ireland
In November, Huawei worked with the Rebecca Foundation to Innovation Day
provide coding and fintech training for hundreds of Ghanaian
women. This program kicked off in the Northern Region of
Ghana where local women were invited to participate and We know that every small effort will make a
learn ICT skills that they could use in future employment. The difference. Huawei is committed to promoting
program won praise for its positive impact, including from
Rebecca Akufo-Addo, First Lady of Ghana and founder of the
gender equality and enabling more women to
Rebecca Foundation. benefit from digital technology.

For more information, please visit Huawei's Women in Tech


website:
https://www.huawei.com/en/sustainability/women

Ghanaian women at Huawei's coding and fintech training

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 103
Respecting Human Rights

Huawei believes that connectivity is a basic right for every usage. Huawei also requires its suppliers to comply with
human being. We are committed to building better network requirements for personal data protection. In addition,
connectivity and providing convenient and affordable Huawei requires all of its employees to receive privacy
information and communications services to billions of training to enhance their understanding of the domain,
people around the world using our innovative technologies. and we encourage our employees to participate in
Ubiquitous broadband and connectivity will create jobs, professional privacy certification programs. A total of 478
promote development, decrease poverty, and improve quality Huawei employees have been certified by the International
of life. In addition, connectivity will help us respond to global Association of Privacy Professionals, placing Huawei
challenges, reduce the human impact on the environment, among the top companies globally.
and provide essential communications services to support
• Safeguarding labor rights: Huawei supports and protects
rescue and relief efforts during natural disasters.
the rights of its employees through detailed, equitable
regulations that cover all stages of an employee's
Huawei adheres to all applicable international conventions
relationship with the company, including recruitment,
and national laws and policies and respects all basic human
employment, and exit. We are committed to providing
rights as promoted by the Universal Declaration of Human
equal opportunities for all employees. When it comes to
Rights. We develop products and services in compliance with
employee recruitment, promotion, and compensation,
international standards and certifications. We strive to ensure
we do not discriminate against anyone on the basis of
that our business activities will not cause or contribute to any
race, religion, gender, sexual orientation, nationality, age,
adverse impacts on human rights. Huawei has been a member
or disability. We prohibit the use of forced labor, whether
of the United Nations Global Compact (UNGC) since 2004,
overt or covert, and all use of child labor.
and a member of the Responsible Business Alliance (RBA)
since 2018. In addition, Huawei is committed to the United • Maintaining a responsible supply chain: Huawei has
Nations Guiding Principles on Business and Human Rights and established a CSR management system in procurement
standards released by the International Labor Organization. in accordance with the OECD's Due Diligence Guidance
for Responsible Business Conduct and IPC-1401 Corporate
Key Areas Social Responsibility Management System Standard.
Our CSR agreements signed with suppliers are prepared
Huawei's Corporate Sustainable Development Committee according to internationally recognized industry standards
is responsible for overseeing any human rights risks that such as the RBA Code of Conduct and the Joint Audit
may exist within our business activities or supply chain, and Cooperation (JAC) Supply Chain Sustainability Guidelines.
strengthening our management of key areas that may have During this process, Huawei also works closely with its
an impact on human rights. supply chain, both upstream and downstream. In addition,
we comply with our customers' sustainability requirements
• Ensuring that technology is used to benefit humanity: and conduct joint audits with them. We also require our
Technology should be used to enhance human, social, direct suppliers to cascade our requirements to their
and environmental well-being. Huawei firmly opposes sub-tier suppliers, asking them to respect the rights of
the misuse of technology that has an adverse impact their employees and comply with all legal requirements
on human rights. We carefully evaluate the long-term regarding environmental protection, health and safety,
and potential impact of our new technologies on society privacy, and anti-bribery compliance. Together, our goal
based on widely recognized industry standards in the is to create a responsible supply chain. Huawei has a
design, development, and use of our products, and work comprehensive qualification process for all new suppliers,
hard to ensure that our products and services are used and carries out risk-informed annual audits on current
in accordance with their intended commercial purpose. suppliers. All suppliers are evaluated based on their
To address the unknown risks that may arise from sustainability performance, the results of audits, and
the widespread use of new technologies, Huawei has the completion of any corrective actions. Huawei has a
expanded its existing processes and governance programs, zero-tolerance policy towards the use of forced labor. If
and we are committed to working with our suppliers, a supplier is found to have violated this policy, we will
partners, and customers to manage any potential adverse take disciplinary action against them like terminating our
impact of technology development. business relationship. To date, no use of forced labor has
• Protecting privacy: Huawei attaches great importance been discovered among our suppliers.
to privacy protection, and we take our responsibilities
seriously. We comply with all applicable privacy laws Respecting human rights has been a long-standing focus for
worldwide, including the EU's General Data Protection Huawei. In compliance with all applicable laws, regulations,
Regulation (GDPR). Huawei has embedded privacy and standards, we actively communicate with international
protection requirements into our corporate governance organizations, governments, and industry institutions to develop
and every phase of our personal data processing lifecycle. human rights standards and guidelines in the use of new
We follow the principles of privacy and security by design technologies. At the same time, we will continue to optimize
and by default and conduct privacy impact assessments management mechanisms and work with our suppliers,
before the release of any product or service, paying partners, and customers to promptly identify, manage, and
careful attention to sensitive personal data or sensitive mitigate any human rights risks or adverse impacts.

104 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Appendices

Appendix I Sustainability Goals and Performance


● Achieved ◎ On track ○ Not achieved

No. Category Goals and Initiatives 2021 Progress Status

Implement seven inclusive education projects that will


1 Achieved. See pages 24–25 of this report. ●
benefit more than 110,000 people in 2021

Digital Inclusion
Implement six environmental protection projects to help
2 32 protected areas in 25 countries protect biodiversity Achieved. See pages 26–28 of this report. ●
more efficiently in 2021

3 Zero level-1 cyber security incidents Achieved ●

4 Zero level-1 personal data leaks Achieved ●


Security and
Trustworthiness
5 At least 90% of incidents are fixed within one hour Achieved ●

6 Problem report fix response time: 98% Achieved ●

Reduce the carbon emissions (Scope 1 and Scope 2 GHG


7 emissions) per unit of sales revenue by 16% by 2025 On track. See page 58 of this report. ◎
compared with 2019

Increase the average energy efficiency of our main


8 On track. See pages 51–56 of this report. ◎
products by 2.7 times by 2025 compared with 2019

Ensure all of Huawei's top 100 suppliers (by procurement


9 spending) will have set carbon emissions reduction On track. See pages 63–65 of this report. ◎
Environmental
targets by 2025
Protection

Less than 1.5% of e-waste from Huawei's ICT business is


10 Achieved. See page 74 of this report. ●
landfilled

11 No e-waste from Huawei's smart devices is landfilled Achieved. See page 74 of this report. ●

Use 40% more electricity from renewable energy sources


12 Achieved. See page 58 of this report. ●
on Huawei campuses in 2021 over 2020

13 Invest CNY15 billion in employee benefits in 2021 Achieved. See page 81 of this report. ●

14 Run 400 social contribution programs worldwide in 2021 Achieved. See page 100 of this report. ●
Healthy and
Harmonious
Ecosystem
15 Zero supplier violations of CSR red lines Achieved ●

16 Zero fatal subcontractor EHS incidents Achieved ●

17 Zero outstanding CSD Committee tasks Achieved ●


Sustainability
Management
System Release quarterly CSD newsletters to improve our
18 Achieved ●
employees' sustainability awareness and capabilities

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 105
Appendix II GRI Standards

General Disclosures

Organizational profile 2016

Disclosure Indicators Relevance to the UN SDGs Page

102-1 Name of the organization 1

102-2 Activities, brands, products, and services 1

102-3 Location of headquarters Back cover page

102-4 Location of operations 1

102-5 Ownership and legal form 1

102-6 Markets served 1

102-7 Scale of the organization 1

102-8 Information on employees and other workers 80–86

102-9 Supply chain 91–94

102-10 Significant changes to the organization and its supply chain 1

102-11 Precautionary Principle or approach /

102-12 External initiatives 19–21

102-13 Membership of associations 21

Strategy 2016

102-14 Statement from senior decision-maker 2–5

102-15 Key impacts, risks, and opportunities 14–16

Ethics and integrity 2016

102-16 Values, principles, standards, and norms of behavior 87–90

102-17 Mechanisms for advice and concerns about ethics 87–90

Governance 2016

102-18 Governance structure 14

102-19 Delegating authority 14

Executive-level responsibility for economic, environmental, and social


102-20 14
topics

102-21 Consulting stakeholders on economic, environmental, and social topics SDG 16 17–21

102-22 Composition of the highest governance body and its committees SDGs 5, 16 14

102-23 Chair of the highest governance body 14

102-24 Nominating and selecting the highest governance body SDGs 5, 16 14

102-25 Conflicts of interest /

102-26 Role of highest governance body in setting purpose, values, and strategy 13–14

102-27 Collective knowledge of highest governance body 13–14

102-28 Evaluating the highest governance body’s performance 13–14

106 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Appendices

General Disclosures

102-29 Identifying and managing economic, environmental, and social impacts SDG 16 13–14

102-30 Effectiveness of risk management processes 13–16

102-31 Review of economic, environmental, and social topics 21

102-32 Highest governance body’s role in sustainability reporting 13–14

102-33 Communicating critical concerns 21

102-34 Nature and total number of critical concerns 21

102-35 Remuneration policies 80–86

102-36 Process for determining remuneration SDG 16 80–86

102-37 Stakeholders’ involvement in remuneration 80–86

102-38 Annual total compensation ratio /

102-39 Percentage increase in annual total compensation ratio /

Stakeholder engagement 2016

102-40 List of stakeholder groups 17–18

102-41 Collective bargaining agreements 100%

102-42 Identifying and selecting stakeholders 17–18

102-43 Approach to stakeholder engagement 17–18

102-44 Key topics and concerns raised 17–18

Reporting practice 2016

102-45 Entities included in the consolidated financial statements 1

102-46 Defining report content and topic Boundaries 21

102-47 List of material topics 21

102-48 Restatements of information 1

102-49 Changes in reporting 1

102-50 Reporting period 1

102-51 Date of most recent report 1

102-52 Reporting cycle 1

102-53 Contact point for questions regarding the report 1

102-54 Claims of reporting in accordance with the GRI Standards 1

102-55 GRI content index Appendix II

102-56 External assurance Appendix IV

Management Approach 2016

103-1 Explanation of the material topic and its Boundary 21

103-2 The management approach and its components 13–14

103-3 Evaluation of the management approach 13–14

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 107
Topic-specific Disclosures

Economic Performance 2016

Disclosure Indicators Relevance to the UN SDG s Page

201-1 Direct economic value generated and distributed SDGs 2, 5, 7, 8, 9 1

Financial implications and other risks and opportunities due to climate


201-2 SDG 13 1, 14–16
change

201-3 Defined benefit plan obligations and other retirement plans 1, 80–86

201-4 Financial assistance received from government /

Market Presence 2016

Ratios of standard entry level wage by gender compared to local


202-1 SDGs 1, 5, 8 /
minimum wage

202-2 Proportion of senior management hired from the local community SDG 8 /

Indirect Economic Impacts 2016

203-1 Infrastructure investments and services supported SDGs 11, 2, 5, 7, 9 31–33

203-2 Significant indirect economic impacts SDGs 1, 10, 17, 2, 3, 8 31–33, 95–103

Procurement Practices 2016

204-1 Proportion of spending on local suppliers SDG 12 /

Anti-corruption 2016

205-1 Operations assessed for risks related to corruption SDG 16 88

205-2 Communication and training about anti-corruption policies and procedures SDG 16 88

205-3 Confirmed incidents of corruption and actions taken SDG 16 88

Anti-competitive Behavior 2016

Legal actions for anti-competitive behavior, anti-trust, and monopoly


206-1 SDG 16 90
practices

Tax 2019

207-1 Approach to tax SDG 8 1

207-2 Tax governance, control, and risk management SDG 8 1

207-3 Stakeholder engagement and management of concerns related to tax SDG 8 1

207-4 Country-by-country reporting SDG 8 1

Materials 2016

301-1 Materials used by weight or volume SDGs 12, 8 /

301-2 Recycled input materials used SDGs 12, 8 71–74

301-3 Reclaimed products and their packaging materials SDGs 12, 8 71–74

Energy 2016

302-1 Energy consumption within the organization SDGs 12, 13, 7, 8 58

302-2 Energy consumption outside of the organization SDGs 12, 13, 7, 8 57

302-3 Energy intensity SDGs 12, 13, 7, 8 58

302-4 Reduction of energy consumption SDGs 12, 13, 7, 8 51–77

302-5 Reductions in energy requirements of products and services SDGs 12, 13, 7, 8 51–77

108 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Appendices

Topic-specific Disclosures

Water and Effluents 2018

303-1 Interactions with water as a shared resource SDG 6 61–62

303-2 Management of water discharge-related impacts SDG 6 61–62

303-3 Water withdrawal SDG 6 61–62

303-4 Water discharge SDG 6 61–62

303-5 Water consumption SDG 6 61–62

Biodiversity 2016

Operational sites owned, leased, managed in, or adjacent to, protected


304-1 SDGs 14, 15, 6 /
areas and areas of high biodiversity value outside protected areas

304-2 Significant impacts of activities, products, and services on biodiversity SDGs 14, 15 26–28

304-3 Habitats protected or restored SDGs 14, 15, 6 26–28

IUCN Red List species and national conservation list species with habitats
304-4 SDGs 14, 15, 6 /
in areas affected by operations

Emissions 2016

305-1 Direct (Scope 1) GHG emissions SDGs 12, 13, 14, 15, 7 57

305-2 Energy indirect (Scope 2) GHG emissions SDGs 12, 13, 14, 15, 7 57

305-3 Other indirect (Scope 3) GHG emissions SDGs 12, 13, 14, 15, 7 57

305-4 GHG emissions intensity SDGs 13, 14, 15, 7 58

305-5 Reduction of GHG emissions SDGs 13, 14, 15, 7 58

305-6 Emissions of ozone-depleting substances (ODS) SDGs 12, 3 None

Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air
305-7 SDGs 12, 14, 15, 3 /
emissions

Waste 2020

306-1 Water discharge by quality and destination SDGs 12, 14, 3, 6 /

306-2 Waste by type and disposal method SDGs 12, 3, 6 61–62, 74

306-3 Significant spills SDGs 12, 14, 15, 3,6 None

306-4 Transport of hazardous waste SDGs 12, 3 61

306-5 Water bodies affected by water discharges and/or runoff SDGs 14, 15, 6 /

Environmental Compliance 2016

307-1 Non-compliance with environmental laws and regulations SDG 16 None

Supplier Environmental Assessment 2016

308-1 New suppliers that were screened using environmental criteria SDG 12 63, 91–94

308-2 Negative environmental impacts in the supply chain and actions taken SDG 12 63, 91–94

Employment 2016

401-1 New employee hires and employee turnover SDGs 5, 8 80–86

Benefits provided to full-time employees that are not provided to


401-2 SDGs 5, 8 80–86
temporary or part-time employees

401-3 Parental leave SDGs 5, 8 80–86

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 109
Topic-specific Disclosures

Labor/Management Relations 2016

402-1 Minimum notice periods regarding operational changes /

Occupational Health and Safety 2018

403-1 Occupational health and safety management system SDGs 3, 8 80–86

403-2 Hazard identification, risk assessment, and incident investigation SDGs 3, 8 80–86

403-3 Occupational health services SDGs 3, 8 80–86

Worker participation, consultation, and communication on occupational


403-4 SDGs 3, 8 80–86
health and safety

403-5 Worker training on occupational health and safety SDGs 3, 8 80–86

403-6 Promotion of worker health SDGs 3, 8 80–86

Prevention and mitigation of occupational health and safety impacts


403-7 SDGs 3, 8 80–86
directly linked by business relationships

Workers covered by an occupational health and safety management


403-8 SDGs 3, 8 80–86
system

403-9 Work-related injuries SDGs 3, 8 /

403-10 Work-related ill health SDGs 3, 8 80–86

Training and Education 2016

404-1 Average hours of training per year per employee SDGs 4, 5, 8 84

Programs for upgrading employee skills and transition assistance


404-2 SDGs 4, 5, 8 84
programs

Percentage of employees receiving regular performance and career


404-3 SDGs 5, 8 100%
development reviews

Diversity and Equal Opportunity 2016

405-1 Diversity of governance bodies and employees SDGs 5, 8 85–86

405-2 Ratio of basic salary and remuneration of women to men SDGs 10, 5, 8 /

Non-discrimination 2016

406-1 Incidents of discrimination and corrective actions taken 6 SDGs 16, 5, 8 /

Freedom of Association and Collective Bargaining 2016

Operations and suppliers in which the right to freedom of association


407-1 SDG 8 /
and collective bargaining may be at risk

Child Labor 2016

408-1 Operations and suppliers at significant risk for incidents of child labor SDGs 16, 8 85

Forced or Compulsory Labor 2016

Operations and suppliers at significant risk for incidents of forced or


409-1 SDG 8 85
compulsory labor

Security Practices 2016

410-1 Security personnel trained in human rights policies or procedures SDG 16 100%

Rights of Indigenous Peoples 2016

411-1 Incidents of violations involving rights of indigenous peoples SDG 10 /

110 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Appendices

Topic-specific Disclosures

Human Rights Assessment 2016

Operations that have been subject to human rights reviews or impact


412-1 SDG 16 104
assessments

412-2 Employee training on human rights policies or procedures SDG 16 104

Significant investment agreements and contracts that include human


413-3 SDG 16 104
rights clauses or that underwent human rights screening

Local Communities 2016

Operations with local community engagement, impact assessments, and


413-1 SDGs 12, 17 95–103
development programs

Operations with significant actual and potential negative impacts on local


413-2 SDGs 12, 17 /
communities

Supplier Social Assessment 2016

414-1 New suppliers that were screened using social criteria SDGs 12, 17 91–94

414-2 Negative social impacts in the supply chain and actions taken SDGs 12, 17 91–94

Public Policy 2016

415-1 Political contributions SDG 16 /

Customer Health and Safety 2016

Assessment of the health and safety impacts of product and service


416-1 SDGs 12, 16 71–77
categories

Incidents of non-compliance concerning the health and safety impacts of


416-2 SDGs 12, 16 /
products and services

Marketing and Labeling 2016

417-1 Requirements for product and service information and labeling SDGs 12, 16 89–90

Incidents of non-compliance concerning product and service information


417-2 SDGs 12, 16 /
and labeling

417-3 Incidents of non-compliance concerning marketing communications SDGs 12, 16 /

Customer Privacy 2016

Substantiated complaints concerning breaches of customer privacy and


418-1 SDGs 12, 16 /
losses of customer data

Socioeconomic Compliance 2016

Non-compliance with laws and regulations in the social and


419-1 SDGs 12, 16 /
economic area

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 111
Appendix III Acronyms and Abbreviations

Acronym/Abbreviation Full Name

3GPP 3rd Generation Partnership Project

5G The 5th Generation Mobile Communication Technology

AAU Active Antenna Unit

AEO Authorized Economic Operator

AI Artificial Intelligence

AP Access Point

App Application

APT Advanced Persistent Threat

ASEAN Association of Southeast Asian Nations

BCG Business Conduct Guidelines

BCM Business Continuity Management

BCP Business Continuity Plan

BOD Board of Directors

CAHRAs Conflict-Affected and High-Risk Areas

CCO Chief Compliance Officer

CCSK Certificate of Cloud Security Knowledge

CEC Committee of Ethics and Compliance

CEO Chief Executive Officer

CESA China Electronics Standardization Association

CIPP Certified Information Privacy Professional

CISSP Certified Information Systems Security Professional

CMRT Conflict Minerals Reporting Template

CQC China Quality Certification Center

CRCPE Check, Root Cause Analysis, Correct, Prevent, and Evaluate

CRT Cobalt Reporting Template

CSD Corporate Sustainable Development

CSR Corporate Social Responsibility

EBI Enterprise Building Integrator

EHS Environment, Health and Safety

EMS Electronics Manufacturing Services

EOL End of Life

ESG Environmental, Social, and Governance

ETSI European Telecommunications Standards Institute

EU European Union

FTTH Fiber to the Home

FTTM Fiber to the Machine

112 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Appendices

Acronym/Abbreviation Full Name

FTTR Fiber to the Room

GDPR General Data Protection Regulation

GeSI Global Enabling Sustainability Initiative

GHG Greenhouse Gas

GLOMO Global Mobile Awards

GRI Global Reporting Initiative

GSMA Global System for Mobile Communications Association

HDD Hard Disk Drive

HR Human Resources

HWD HUAWEI Women Developers

IAPP International Association of Privacy Professionals

ICPC International Collegiate Programming Contest

ICT Information and Communications Technology

IEA International Energy Agency

IETF Internet Engineering Task Force

IMP Incident Management Plan

IoT Internet of Things

IP Internet Protocol

IP Intellectual Property

IPD Integrated Product Development

IPE Institute of Public and Environmental Affairs

ISC Integrated Supply Chain

ISO International Organization for Standardization

IT Information Technology

ITR Issue to Resolution

ITU International Telecommunication Union

IUCN International Union for Conservation of Nature

JAC Joint Audit Cooperation

JDM Joint Design Manufacturer

LED Light Emitting Diode

LTC Lead to Cash

MFP Manager Feedback Program

MOOC Massive Open Online Course

MoU Memorandum of Understanding

MWI Manufacturing Work Instruction

NbS Nature-based Solution

NEO New Employee Orientation

NESAS Network Equipment Security Assurance Scheme

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 113
Acronym/Abbreviation Full Name

NGO Non-Governmental Organization

O&M Operations and Maintenance

OECD Organisation for Economic Co-operation and Development

OFPV Offshore Floating Photovoltaic

PB Petabyte

PC Personal Computer

PDCA Plan, Do, Check, Act

PSIRT Product Security Incident Response Team

PUE Power Usage Effectiveness

R&D Research and Development

RBA Responsible Business Alliance

RBC Responsible Business Conduct

RCI Responsible Cobalt Initiative

RDC Regional Distribution Center

RFCx Rainforest Connection

RGC Risk, Governance, and Control

RMAP Responsible Minerals Assurance Process

RMI Responsible Minerals Initiative

RRU Remote Radio Unit

SCAS Security Assurance Specifications

SDIF Signal Direct Injection Feeding

SME Small and Medium-sized Enterprise

STEAM Science, Technology, Engineering, the Arts, and Mathematics

STEM Science, Technology, Engineering and Mathematics

SWOT Strengths, Weaknesses, Opportunities, and Threats

TOR Top of Rack

UN SDGs United Nations Sustainable Development Goals

UNEP United Nations Environment Programme

UNESCO United Nations Educational, Scientific and Cultural Organization

UNFCCC UN Framework Convention on Climate Change

UNGC United Nations Global Compact

VPN Virtual Private Network

VR Virtual Reality

Wi-Fi Wireless Fidelity

WTO World Trade Organization

WWF World Wide Fund for Nature

114 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Appendices

Appendix IV External Assurance Statement

ASSURANCE STATEMENT

SGS-CSTC’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE HUAWEI


INVESTMENT & HOLDING CO., LTD.’s SUSTAINABILITY REPORT FOR 2021

NATURE AND SCOPE OF THE ASSURANCE/VERIFICATION


SGS-CSTC STANDARDS TECHNICAL SERVICES CO., LTD. (thereafter as “SGS”) was commissioned by the
Huawei Investment & Holding Co., Ltd. (thereafter as “HUAWEI”) to conduct an independent assurance of the
Chinese version of HUAWEI’s Sustainability Report for 2021 (thereafter as “the Report”). The scope of the
assurance, based on the SGS Sustainability Report Assurance methodology, included the text, and data in
accompanying tables, contained in the Report. Other data and information disclosed were not included in this
assurance process. On-site assurance process was executed at the Administration Building, Headquarters of
Huawei Technologies Co., Ltd., Bantian, Longgang District, Shenzhen, Guangdong, P.R. China.

The HUAWEI's management and relevant functional departments are responsible for the information contained
in the Report.

Our responsibility is to express an opinion on the text, data, graphs and statements within the scope of
verification with the intention to inform all HUAWEI’s stakeholders.

The SGS protocols are based upon internationally recognized guidance, including the Principles contained
within the GRI STANDARDS for accuracy and reliability and the guidance on levels of assurance contained
within the AA1000 series of standards and guidance for Assurance Providers.

This report has been assured at a moderate level of scrutiny using our protocols for:
• evaluation of content veracity;
• evaluation of the report against the GRI STANDARDS.

The assurance comprised a combination of pre-assurance research, onsite interviews with relevant employees
in the HUAWEI headquarters, documentation and record online review and validation with affiliates bodies
where relevant.

Financial data drawn directly from independently audited financial accounts has not been checked back to
source as part of this assurance process.

STATEMENT OF INDEPENDENCE AND COMPETENCE


SGS affirm our independence from HUAWEI, being free from bias and conflicts of interest with the organization,
its subsidiaries and stakeholders.

The assurance team was assembled based on their knowledge, experience and qualifications for this
assignment.

VERIFICATION/ ASSURANCE OPINION


On the basis of the methodology described and the verification work performed, the information and data
contained within the Report verified is accurate, reliable and provides a fair and balanced representation of
HUAWEI sustainability activities in 2021.

The assurance team is of the opinion that the Report can be used by the Reporting Organization’s Stakeholders.

We believe that the organization has chosen an appropriate option for the reporting.

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 115
GRI STANDARDS CONCLUSIONS, FINDINGS AND RECOMMENDATIONS
In our opinion the Report is presented in accordance with the core opinion for GRI STANSARDS and fulfils all
the required content and quality criteria.

Principles

Stakeholder Engagement
HUAWEI had identified its stakeholders who affected by its activities and considered the reasonable
expectations and interests from stakeholders, and took some certain ways to communicate and exchange
information with stakeholders.

Sustainability Context
HUAWEI had presented the efforts on sustainability development related to economic, environmental and social
aspects and combined the performance in the wide context as well.

Materiality
Based on the topics concerned by the stakeholders, HUAWEI had considered reasonably disclosing issues and
indicators with materiality, which substantively influencing the assessments and decisions of stakeholders, to
reflect the organization’s significant economic, environmental and social impacts.

Completeness
The Report included coverage of material aspects and boundaries, to reflect significant economic,
environmental and social impacts and enable stakeholders to assess the organization’s performance in the
reporting period.

Balance
The Report followed the balance principle and truthfully disclosed the positive and negative information.

Comparability
HUAWEI had disclosed performance indicators in 2021, previous data of key indicators were disclosed, which
could help stakeholders to understand and compare the improved performance year by year.

Accuracy
HUAWEI’s information in the report was accurate, enable to release more qualitative and quantitative
information with indicators for stakeholders.

Timeliness
Verification shown that the reported data and information was timely and effective. HUAWEI discloses its CSR
report annually, which indicates good timeliness.

Clarity
The Report was presented different ways with words, charts, graphics and pictures, also described with actual
cases to ensure the stakeholders understanding easily.

Reliability
The data and information can be traced and verified.

Management Approach
The Report had disclosed the management approach of identified material topics.

General Disclosures
The general disclosures were presented in accordance with the core option of GRI Standards.

116 / Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report
Appendices

Topic-Specific Disclosures
HUAWEI’s topic-specific disclosures related to the material topics in economic, environmental, and social areas
were in accordance with the core option of GRI Standards.

Findings and recommendations


Good practices and recommendations for sustainability report and management process were described in the
internal management report which has been submitted to the management of HUAWEI for continuous
improvement.

Limitations of assurance
Data tracing on headquarters level, not including original data of all subsidiaries.

The assurance process only involved interviews with the heads of relevant departments and certain employees
of headquarters and consultation with relevant documents. No external stakeholder involved.

Signed:

For and on behalf of SGS-CSTC Standards Technical Services Co., Ltd.


16/F Century Yuhui Mansion, No. 73, Fucheng Road, Beijing, P.R. China
May 27, 2022

WWW.SGS.COM

Huawei Investment & Holding Co., Ltd. 2021 Sustainability Report / 117
Printed on environmentally friendly paper

HUAWEI INVESTMENT & HOLDING CO., LTD.

Huawei Industrial Base


Shenzhen 518129, P. R. China
Tel: +86-755-28780808
www.huawei.com

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Copyright © 2022 HUAWEI TECHNOLOGIES CO., LTD. All Rights Reserved.

General Disclaimer
The information in this document may contain predictive statement including, without limitation, statements regarding the future financial and operating
results, future product portfolios, new technologies, etc. There are a number of factors that could cause actual results and developments to differ materially
from those expressed or implied in the predictive statements. Therefore, such information is provided for reference purpose only and constitutes neither an
offer nor an acceptance. Huawei may change the information at any time without notice.

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