Bringdigitaltoeveryperson,homeandorganizationforafullyconnected,intelligentworldHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/01WhoisHuawei?Foundedin1987,Huaweiisaleadingglobalproviderofinformationandcommunicationstechnology(ICT)infrastructureandsmartdevices.Wehave195,000employeesandweoperateinover170countriesandregions,servingmorethanthreebillionpeoplearoundtheworld.Wearecommittedtobringingdigitaltoeveryperson,homeandorganizationforafullyconnected,intelligentworld.(Formoredetails,pleasechecktheHuawei2021AnnualReportathttps://www.huawei.com/en/annual-report)CorporateProfileEveryyearsince2008,HuaweiInvestment&HoldingCo.,Ltd.("Huawei","thecompany",or"we")hasvoluntarilyreleasedannualsustainabilityreportsanddisclosedoursustainabilityperformanceaswebelievethatdoingsofacilitatescommunication,awareness,andinteractionwithourstakeholdersandmakesHuaweimoretransparent.ThisreportcoversallentitiesthatHuaweieitherhascontrolof,orasignificantinfluenceover,intermsoffinancialandoperationalpoliciesandmeasures.ThescopeoftheentitiescoveredinthisreportisconsistentwiththescopeoforganizationsdiscussedintheHuawei2021AnnualReport.Unlessotherwisespecified,thisreportdescribestheeconomic,environmental,andsocialperformanceofHuaweianditssubsidiariesworldwideduringthereportingperiodfromJanuary1,2021toDecember31,2021.AlldatacontainedhereinisderivedfromHuawei'sofficialdocumentsandstatisticalreports.Fordetailsabouttheeconomicdatainthereport,refertotheHuawei2021AnnualReport.ThereportispreparedinaccordancewiththeGlobalReportingInitiative(GRI)Standards(Coreoption).HuaweiengagedSGS,anexternalassuranceprovider,toverifythereliability,fairness,andtransparencyofthisreportandtoissueanindependentassurancestatement(seeAppendixIV).ReportProfileAsanindependentrecordofsustainability,thisreportispublishedonlineandinprintinbothChineseandEnglishinJuly2022.(Thereportfor2020waspublishedinJuly2021.)Youcanviewthe2021SustainabilityReportatwww.huawei.com/en/,orbyscanningthefollowingQRcode.Foranyreport-relatedquestionsorsuggestions,pleasecontact:Tel:+86(0)75528780808E-mail:sustainability@huawei.com02/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportThroughouthumanhistory,ourabilitytoimagineaworldbeyondthestatusquohasbeenthedrivingforcebehindalldevelopmentandprogress.Wemadeagriculturaltoolstocarveoutapermanentplaceforourselvesinthenaturalworld,anddevelopedmachinestocastoffthefettersofbackbreakingmanualwork.Wearenowgatheringoceansofdatatodriveprogresstowardsafullyconnected,intelligentworld.Ourimaginationdrivesadvancementintechnology,leadingtoanabundanceofnewapplicationsthatspurtheneedtolearnandgrow,whichinturnreinvigoratesourimagination.Rightnow,digitaltechnologyisreshapingtheworld.Theyareplayingaroleineveryaspectofourworkandlife.Next-generationdigitaltechnologieslike5G,AI,andcloudcomputingareconvergingrapidly,layingthegroundworkforaboomingdigitaleconomy.Greendevelopmentisalsogainingtraction,promotinglow-carbonlifestylesandproductionmodels.Asdigitalandgreentechnologiesconverge,theywillcreatetremendousopportunitiesanddrivesocialprogress.Agreenerintelligentworldisfastapproaching,buttheroadaheadisnotsmooth.Theglobaldigitalskillsgapiswidening,whichhindersinnovationandsocioeconomicgrowth.Tobridgethisgap,weneedtocultivatemoredigitaltalentandenhancedigitalliteracy.DevelopingdigitaltalentforastrongerdigitaleconomyDigitalliteracyisessentialforadvancingthedigitaleconomy.TheUnitedNationshasdesignatededucationasabasicright,andastheworldgrowsmoredigitalthanever,theabilitytoaccessandusetechnologyisaninextricableelementofthatright.Recognizingthis,countriesaroundtheworldareactivelyexploringthebestwaystocultivatedigitaltalentandenhancedigitalliteracy.TheEUhasdevelopedthe2030DigitalCompassplan,aimingtotrain20millionICTspecialistsandequip80%ofadultswithbasicdigitalskillsby2030.JapanhaslaunchedtheDigitalNewDeal,whichaimstoprovideeverystudentinelementaryandhighschoolsacrossthecountrywithacomputerby2024tohelpthembegindevelopingdigitalskillsatanearlyage.AndChinahasannouncedits14thFive-YearPlanonDigitalEconomyDevelopment,whichwillbolsterdigitaleducationtoimprovenationwidedigitalliteracyandskillssoastodrivethedigitaleconomyforward.Digitalskillsarekeytocoordinatingeffortstodevelopthedigitaleconomy,andcountriesthatarenotabletomakefulluseoftheirdatawillbeonthebackfoot.AccordingtotheEU'sDigitalEconomyandSocietyIndex,morethan37%ofworkersintheEUlackbasicdigitalskills.Germany,forexample,isprojectedtohaveadeficitof4.9milliondigitalworkersby2030.InChina,eightoutofeverynineICTjobsarecurrentlyunfilled.Itcurrentlyhasashortageof12millionICTworkers,includingninemillioninemergingfieldslikeAI,cloudcomputing,andbigdata.Asatechcompany,HuaweiiswillingtodoitsparttohelpbridgethedigitalgapintheICTsector.WeareworkingwithourpartnersworldwidetodevelopamorerobustdigitaltalentecosystemandshareICTknowledgeandskills.Wefirmlybelievethatopencollaborationleadstosharedsuccess.Wehaveembeddedsustainabilityintoallofourcorporatestrategies,transformationmanagement,andbusinessprocesses.Throughnonstopinnovation,weareworkingwithourpartnersworldwidetocultivatedigitaltalent,bridgethedigitaldivide,andpushthedigitaleconomyforward.DevelopingDigitalTalentandEnhancingDigitalLiteracyforaMoreSustainableWorld-----LiangHua-----ChairmanoftheBoardHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/03In2008,welaunchedaprogramcalledSeedsfortheFuturetosupportthecultivationoflocaldigitaltalentincommunitiesaroundtheworld.Thisinitiativelaterbranchedoutintootherdevelopmentprograms,includingtechnologycompetitions,dedicatedscholarshipprograms,theHuaweiICTAcademy,HuaweiDevelopersTraining,andtheHuaweiCloudDeveloperInstitute.Sofar,wehaveinvestedmorethanUS$150millionintheseprograms,helpingmorethan1.54millionpeoplefromover150countriesboosttheirdigitalskillsets.In2021,welaunchedtheSeedsfortheFuture2.0program,whichispartofourongoingeffortstohelpcultivatebroaderswathsofdigitaltalent.WewillinvestUS$150millioninthisprogramoverthenextfiveyears,andweexpecttheseeffortstobenefitoverthreemillionmorepeople.Movingforward,wehopemorepeopleandorganizationswilljoinourTECH4ALLinitiativetosupportmoreinclusivedevelopmentofdigitaltalentaroundtheworld.ImprovingdigitalskillsinremoteareasCOVID-19hashadaprofoundimpactonourworld.Andwhilemanypeoplebenefitfromdigitalconnectivityinallaspectsofworkandlife,thepandemichaswidenedthegapbetweenthehavesandhavenots,furtherexacerbatingthedigitaldivideanddigitalpoverty.AccordingtotheGSMA'sMobileEconomyReport2022,only6%oftheworld'spopulationliveinareaswithoutmobilenetworkcoverage.AlthoughthepandemichasincreasedthefrequencyofInternetuseformany,theusagegap–peoplewhohavecoveragebutaren'tusingtheInternet–remains.In2021,theusagegapwas3.2billionpeople,or41%oftheworld'spopulation.Needlesstosay,westillhavealongwaytogobeforesecureandqualityInternetconnectionsareaffordableandaccessibletoall.Formorethan30years,wehavecommittedourselvestopushingtheboundariesofICTandpromotingitsglobaladoption.Wehaveworkedcloselywithcarriersworldwidetobuildover1,500networks,connectingmorethanthreebillionpeopleinmorethan170countriesandregions.HuaweisupportsinclusivedevelopmentandisworkingtodrivebroaderdigitalinclusionthroughourtargetedTECH4ALLprogram.Wewanttobringthebenefitsofdigitaltechnologytoeveryone.Asoftheendof2021,ourTECH4ALLprogramhashelpedmorethan110,000people,includingteachersandstudentsfromover400schools,aswellasunemployedyoungpeople,learnnewdigitalskillsandimprovetheirscientificandtechnologicalliteracy.Inadditiontodigitalskills,makingtechnologymoreaccessibleandavailableisanimportantpartoftheseefforts.Eachmonth,theaccessibilityfunctionsonHuaweidevicesallowmorethan4.4millionvisuallyimpairedusersandover800,000hearingimpaireduserstousedigitaltechnologymoreseamlessly.AndourRuralStarbasestationsolutionshavehelpedconnect60millionpeopleinremoteareasinmorethan70countries.Huaweiiscommittedtoopencollaboration.Weareactivelysharingtheknow-how,technicalcapabilities,andbestpracticesthatwehavebuiltupovertheyearswithpeoplearoundtheworld.Togetherwithindustrypartnersandeducationalinstitutions,wearecreatinganopentalentecosystemthatthrivesonsharedsuccess.Thisispartofourcommitmenttogivingbacktolocalcommunitiesandcreatingneweconomicopportunities.Inadditiontopromotingdigitalinclusion,we'realsodoingourbesttoprotecttheplanet.Weareactivelyinnovatingtoconserveenergy,reduceenvironmentalimpact,andbuildagreener,low-carbon,andfullyconnectedworldforfuturegenerations.Weembedsustainabilityintotheentirelifecycleofourproducts.Wewillcontinuetoinvestheavilyinareaslikerawmaterials,productionprocesses,algorithms,andcoolingtechnologiesthatreducetheenvironmentalimpactofdigitalinfrastructure.Thiswillallowustobuildmoreenergy-efficient5Gnetworks,greenerdatacenters,andeco-friendlyelectronics.Inthemeantime,cybersecurityandprivacyprotectionremainourtoppriorities.Wewillcontinuetocommunicateandcollaboratewithallstakeholdersinatrustworthy,open,transparent,andresponsiblemanner.Together,wecanmoreeffectivelyaddresssharedchallengesinsecurityandtrustworthinessthroughinnovation,unifiedstandards,andimprovedgovernance.In2021,wecontinuedtoadvanceourSoftwareEngineeringCapabilityEnhancementTransformation,incorporatingitintoourIntegratedProductDevelopmentprocesstocreatemoreefficientandtrustworthyR&Denvironments.Bydoingso,wehopetobuildtrustworthyandqualityproductstoensurethatbothourprocessesandresultsaretrustworthy,andthatallnecessarymeasuresaretakentomitigatevulnerabilitiesandrisks.Ourultimatepurposeistohelpcustomersbuildsecureandresilientnetworksandcreateagreener,moresecure,andmoresustainabledigitalworld.Agreenerintelligentworldisjustaroundthecorner.Thedigitaltransformationofindustries,aswellasgreenandlow-carbondevelopment,allrelyondigitaltalent,soenhancingdigitalliteracyiskey.Wefirmlybelievethatopencollaborationleadstosharedsuccess.Wehaveembeddedsustainabilityintoallofourcorporatestrategies,transformationmanagement,andbusinessprocesses.Throughnonstopinnovation,weareworkingwithourpartnersworldwidetocultivatedigitaltalent,bridgethedigitaldivide,andpushthedigitaleconomyforward.Theroadaheadislongandhard.Butnomatterhowbumpythatroadmaybe,wewillstaythecourse.Huaweiiscommittedtobringingdigitaltoeveryperson,homeandorganizationforafullyconnected,intelligentworld.AMessagefromtheChairmanoftheBoard04/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportThedigitaleconomyisanengineofglobaleconomicgrowthintoday'sworld.Newdigitaltechnologies,suchas5G,cloudcomputing,bigdata,andartificialintelligence,arereshapingthewayweworkandlive.Webelievethatallinnovationsandinventionssharethesamemission:tomaketheworldabetterplace.Itisthisbeliefthatdrivesustocontinueadvancingourfoursustainabilitystrategies:DigitalInclusion,SecurityandTrustworthiness,EnvironmentalProtection,andaHealthyandHarmoniousEcosystem.Togetherwithourpartners,wearebuildingabetter,intelligentworld.TechnologyforamoreinclusivesocietyThebeautyoftechnologyliesinitspotentialtobenefitallandensurenooneisleftbehindinthedigitalworld.ThatiswhyHuaweilaunchedtheTECH4ALLinitiative,throughwhichweworkwithpartnerstodrivedigitalinclusioninfourkeyareas:education,environment,health,anddevelopment.Bytheendof2021,wehaveuseddigitaltechnologytorolloutoureducationprograms,includingDigiTruckandDigiSchool,inmorethan400schools,drivingequalityandqualityineducation.Overthepastyear,wehavehelped32protectedareasin25countriesprotectbiodiversitymoreefficiently.Wehavealsodevelopednumerousproductsandservicesthatofferaccessibilityfeaturesforvulnerablegroupssuchasthevisuallyimpaired,hearingimpaired,andtheelderly.Eachmonth,morethan4.4millionvisuallyimpairedpeopleand800,000hearingimpairedpeopleusetheaccessibilityfeaturesonHuaweidevicestobenefitfromanincreasinglydigitalworld.Aspartofourcommitmenttobridgingthedigitaldivideinremoteareas,wehavedeployedourRuralStarseriessolutionsinmorethan70countries,connecting60millionpeopleworldwide.WealsouseICTtoenableindustriestogodigital,makeproductionsaferandmoreefficient,andcreatebetterworkingenvironmentsforemployees.Forexample,5G-poweredsmartfactoriesallowsteelworkerstoworkinair-conditionedrooms,smartcoalminesenableminerstowearsuitsatwork,andsmartportsprotectcraneoperatorsfromseriousneckissues.Technologyformoresecure,reliablecommunicationsDigitaltechnologycanenrichcommunicationsandlifeandpromoteeconomicdevelopment.However,itsgrowingadoptionalsobringschallengestocybersecurityandprivacyprotection,bothofwhichremainatoppriorityatHuawei.Westrivetodevelopsecureandtrustworthyproducts,solutions,andservicesthatwillalloweveryindividualtoenjoyabetterlifeinthedigitalworld.Overthepastthreedecades,wehavehelpedconnectmorethanthreebillionpeoplearoundtheworld,whilemaintainingaproventrackrecordinsecurity.In2021,HuaweiopeneditslargestglobalCyberSecurityandPrivacyProtectionTransparencyCenterinDongguan,China.Thecenterisdesignedtodemonstratesolutionsandshareexperience,facilitatecommunicationandinnovation,andsupportsecuritytestingandverification.Itisopentoourglobalstakeholders,inabidtojointlycreateareliabledigitalenvironment.Technologyhasthepowertochangetheworldandmakedreamsthatonceseemedoutofreachpossible.Asatechcompany,webelievethattechnologyisaforceforgood.Wewillcontinuetoprovideproductsandserviceswithahumantouch,pushboundariesandkeepinnovating,andultimately,bringdigitaltoeveryperson,homeandorganizationforafullyconnected,intelligentworld.-----TaoJingwen-----BoardMemberandChairmanoftheCSDCommitteeTechnologywithaHumanTouch:BuildingaBetter,IntelligentWorldHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/05Variousnon-marketfactors,suchastheCOVID-19pandemic,conflicts,andnaturaldisasters,areputtingunprecedentedpressureonthetimelydeliveryandstableoperationsofcommunicationsnetworks.However,Huaweihasstayedcommittedtowhatwedobest.Webelievethatitisourresponsibilitytosupportstablenetworkoperationsandensureuninterruptedcommunications.Overthepastyear,weprovidedtimelysupportformorethan180majoreventsandemergenciesworldwide.Toaddresschallengesthroughoutoursupplychain,wehaveestablishedbackupsupplynetworksatmultiplepointsalongmultiplepathsatmultiplelevels.Wewillsticktoourstrategyofmaintainingaglobalized,diversifiedsupplychain,andworkcloselywithoursuppliersandpartnerstocreateasecure,reliable,competitive,andhealthyvaluechain.Technologyforagreener,cleanerenvironmentAsgreendevelopmentcontinuestogainmomentumacrosstheglobe,decarbonizationanddigitalizationarebecomingimperative.ICTwillbekeytobothprocesses.Huawei'senvironmentaleffortsaredrivenbythecompany'sgreenpledgeof"TechforaBetterPlanet",whichfocusesonthreeareas:reducingcarbonemissions,promotingrenewableenergy,andcontributingtoacirculareconomy.Ourgoalistouseinnovativetechnologytoprotectourplanet.In2021,HuaweihelditsSupplierCarbonEmissionsReductionConferencetoclarifyitsstrategiesandrequirementsonsupplychainemissionsreduction.WiththesupportofHuawei,98%ofourtop100suppliersandenergy-intensivesupplierssetcarbonemissionsreductiontargets.Inthesameyear,weusedover300millionkWhofelectricityfromrenewableenergysourcesinourownoperations,up42.3%over2020.Huawei'sdigitalpowercompanyfocusesonfivekeydomains:cleanpowergeneration,energydigitalization,transportationelectrification,greenICTpowerinfrastructure,andintegratedsmartenergy.Intotal,ourdigitalpowersolutionshelpedcustomersgenerate482.9billionkWhofgreenpowerandsave14.2billionkWhofelectricity.Theseeffortsresultedinatotalcarbonoffsetof230milliontons.Huaweiisalsoworkingtobuildabusinessmodelthatintegratescirculareconomypracticesandaclosed-loopvaluechain.Thisreducesourimpactontheenvironmentandourdemandfornaturalresources.Forexample,thepackagingofHuawei'sP50seriessmartphonesuses89%lessplasticthantheP40series,withplasticaccountingforlessthan1%ofthepackaging.Inaddition,HuaweihasjoinedtheDigitalwithPurposeMovementlaunchedbytheGlobalEnablingSustainabilityInitiative(GeSI),pledgingtocombatclimatechangeandreportonourprogress.Technologyforabetter,moreharmoniousworldWebelievethatresponsiblecompaniesshouldnotsolelypursuebusinessvalue,assuchamodelissimplynotsustainable.Socialvalueshouldbeakeyconsiderationwhenevercompaniesconductbusinessactivities.Ascompaniescontributesocialvalue,theywilllikelyencounternewbusinessopportunities.ThiswillhelpcreateavirtuouscycleanddriveprogresstowardstheUnitedNationsSustainableDevelopmentGoals.AtHuawei,itisacompanypolicytocareforouremployeesandalwaysputtheirsafetyfirst.Wefullysupportouremployeesworkingindifficultsituations,includingthoseinlocationshithardbythepandemicorsufferingfromconflict,andusedigitaltechnologytoimprovetheirworkingenvironments.In2021,weinvestedmorethanCNY15billionintoemployeebenefits,reachingarecordhigh.Huaweiemphasizesacultureofintegrityandinvestsheavilytomakeitareality.Assuch,everyHuaweiemployeeisrequiredtoadheretothecompany'sBusinessConductGuidelines(BCGs).Wealsoprioritizesuppliermanagementandmakesustainabilityakeypartofourprocurementstrategy.In2021,weassessedthesustainabilityperformanceofmorethan1,600majorsuppliers.Intermsofsocialresponsibilities,Huaweiisanactiveandproductivememberofeverycommunityinwhichitoperates.Weusedigitaltechnologytomakealasting,positiveimpactandgivebacktolocalcommunities.InMarch2021,HuaweilaunchedtheHUAWEIWomenDevelopersprogram,aimingtohelpwomendeveloperspursueinnovationandcontributetoaninclusiveanddiverseworld.InJuly,HuaweiannouncedtheSeedsfortheFuture2.0program,inwhichweplantoinvestUS$150millionoverthenextfiveyearstocultivatedigitaltalent.Theprogramisexpectedtobenefitoverthreemillionmorepeoplearoundtheworld.InAugust,HuaweiannouncedthatitwouldinvestUS$100millionintotheSparkProgramintheAsia-Pacificregionoverthenextthreeyears,withthepurposeofbuildingasustainablestartupecosystemintheregion.Thisprogramisintendedtohelpmorestartupsseizetheopportunitiesposedbydigitaltransformation,achievebusinesssuccess,anddevelopmoreinnovativeproductsandsolutionsfortheworld.Technologyhasthepowertochangetheworldandmakedreamsthatonceseemedoutofreachpossible.Asatechcompany,webelievethattechnologyisaforceforgood.Wewillcontinuetoprovideproductsandserviceswithahumantouch,pushboundariesandkeepinnovating,andultimately,bringdigitaltoeveryperson,homeandorganizationforafullyconnected,intelligentworld.AMessagefromtheChairmanoftheCSDCommittee06/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport09/2021SustainabilityHonorsandAwards10/Huawei'sSustainabilityMilestonesin202111/SustainabilityStrategyandProgress13/SustainabilityManagementSystem17/StakeholderEngagement36/CyberSecurityandPrivacyProtection39/OpennessandTransparency41/SupportingStableCommunications46/BusinessContinuitySustainabilityManagement01/CorporateProfile01/ReportProfile02/AMessagefromtheChairmanoftheBoard04/AMessagefromtheChairmanoftheCSDCommitteeSecurityandTrustworthiness24/DrivingEquityandQualityinEducation26/ConservingNaturewithTechnology29/EnablingInclusiveHealthandWell-being31/DrivingInclusiveDigitalDevelopmentDigitalInclusionHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/0780/CaringforEmployees87/BusinessEthics91/SupplyChainResponsibilities95/CommunityResponsibilities105/SustainabilityGoalsandPerformance106/GRIStandards112/AcronymsandAbbreviations115/ExternalAssuranceStatement51/ReducingCarbonEmissions69/PromotingRenewableEnergy71/ContributingtoaCircularEconomy75/EnvironmentalCertificationsCONTENTSEnvironmentalProtectionHealthyandHarmoniousEcosystemAppendices08/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportSustainabilityManagement12021SustainabilityHonorsandAwardsHuawei'sSustainabilityMilestonesin2021SustainabilityStrategyandProgressSustainabilityManagementSystemStakeholderEngagementHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/09SustainabilityManagementHonor/AwardNameIssuedbyHuaweiDigiTruckinKenya:WorldSummitontheInformationSociety(WSIS)Prizes2021ChampionProjectITUNatureGuardian:GSMAGLOMOforOutstandingMobileContributiontotheUNSDGsGSMAHuaweiRuralStarPro:BestMobileInnovationforEmergingMarketsofGSMAGLOMOGSMABestPracticesforAchievingSDGsin2021(ProtectingtheEnvironment&AddressingClimateChange)GlobalCompactNetworkChinaLeadershipAwardonClimateActionCDPClimateA-ListCDPFusionSolarSmartPVsolution:CarbonNeutralityActor–ClimateSolveroftheYearWWF27HuaweisubsidiariesrecognizedasaTopEmployerTopEmployersInstituteVodafoneHealthandSafetyAwardVodafoneGroupExcellenceinSupplyChainDevelopmentDeutscheTelekomHuaweiIndia:GreatPlacetoWorkGreatPlacetoWork®InstituteHuaweiSaudiArabia:2021SustainabilityAwardintheCoreEconomicAreaKingKhalidFoundation(KKF)HuaweiBangladesh:PartnerRecognitionAwardbKashTop10GreenandLow-carbonCompaniesShenzhenEmissionsExchangeCo.,Ltd.HuaweiMalaysia:CyberSecurityInnovationoftheYearCyberSecurityMalaysia(CSM)HuaweiUAE:CybersecurityCompanyoftheYearandCybersecurityCEOoftheYearUAECyberSecurityCouncil(CSC)2021SustainabilityHonorsandAwards10/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuawei'sSustainabilityMilestonesin2021•InJanuary,HuaweireleasedtheCorporateAIBusinessIntentandGovernancePrinciples,whichspecifiesthattheintentofthecompany'sAIbusinessistoenhancehuman,societal,andenvironmentalwell-being.•InMarch,HuaweilaunchedtheHUAWEIWomenDevelopers(HWD)programtoempowerwomendevelopersinthedevelopmentofinnovativetechnologies.•InMay,HuaweihelditsSupplierCarbonEmissionsReductionConferencetoclarifyitsstrategiesandrequirementsonsupplychainemissionsreduction.•InMay,HuaweijoinedtheDigitalwithPurposeMovementlaunchedbytheGlobalEnablingSustainabilityInitiative(GeSI).•InJune,HuaweiopeneditslargestglobalCyberSecurityandPrivacyProtectionTransparencyCenterinDongguan,China.•InJuly,HuaweilauncheditsSeedsfortheFuture2.0program,inwhichitplanstoinvestUS$150millionoverthenextfiveyearstocultivatedigitaltalent.Theprogramisexpectedtobenefitoverthreemillionmorepeople.•InAugust,HuaweiannouncedthatitwouldinvestUS$100millionintheSparkProgramintheAsia-Pacificregionoverthenextthreeyears,aimingtobuildasustainablestartupecosystemintheregion.•InOctober,HuaweiledtherevisionoftheIPC-1401CorporateSocialResponsibilityManagementSystemStandard,whichwasthenreleasedgloballybyIPC–theAssociationConnectingElectronicsIndustries.•InNovember,Huaweireleaseditsstatementongenderequality,inwhichthecompanycommitstousingitstechnologiesandplatformstobenefitmorewomen,encouragethemtoworkinthetechindustry,andcultivatewomen'sleadership.•InNovember,HuaweihelditsfirstglobalTech4Goodcompetition,askingparticipatingstudentstoidentifyasocialissueandproposeatechnicalsolutionbasedontheICTknowledgetheyhavelearned.Q1Q2Q3Q4HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/11SustainabilityManagementSustainabilityStrategyandProgressHuaweiiscommittedtobringingdigitaltoeveryperson,homeandorganizationforafullyconnected,intelligentworld.Asatechcompany,Huaweibelievesthattechnologyisaforceforgood.Assuch,sustainabilityisakeypartofouroverallstrategy.UndertheguidanceofourCorporateSustainableDevelopment(CSD)Committee,wehavemadeongoingeffortsinourfoursustainabilitystrategies:digitalinclusion,securityandtrustworthiness,environmentalprotection,andahealthyandharmoniousecosystem.TheseeffortswillcontributetoachievingtheUnitedNationsSustainableDevelopmentGoals(UNSDGs).Majorprogressinthesefourareasin2021:110,000+people,includingteachersandstudentsfrom400+schools,aswellasunemployedyoungpeople,havebeenabletoaccesstheInternetandimprovetheirdigitalskillsandscientificandtechnologicalliteracythroughTECH4ALLprojects32protectedareasin25countrieshavemoreefficientlyprotectbiodiversitywiththehelpofHuawei'sTECH4ALLprojects4.4million+visuallyimpairedusersand800,000+hearingimpairedusersusetheaccessibilityfeaturesonHuaweideviceseachmonth60millionpeopleinremoteareasacross70+countrieshavebeenconnectedtotheInternetthroughHuawei'sRuralStarseriessolutionsDigitalInclusionLeavingnoonebehindinthedigitalworld:HuaweilauncheditsTECH4ALLinitiativetopromotedigitalinclusionforall.Thegoaloftheinitiativeistobringdigitaltechnologytoeveryperson,home,andorganization.Werunprojectswithourpartnersandaremakingtechnologymoreinclusivebyinvestingintechnology,applications,andskills.70+cybersecuritycertificationswereawardedtoHuawei,givingourcustomersinternationallyrecognizedsecurityassurances20,000+requestsfromdatasubjectswerepromptlyandeffectivelyhandledbyHuawei,respectingandprotectinguserprivacy35AuthorizedEconomicOperator(AEO)certificateswereawardedtoHuaweiin28countriesandregionsacrossfivecontinents,ensuringsupplychainsecurity180+majoreventsandemergencieswhereHuaweisupportedstablecommunicationsSecurityandTrustworthinessTakingresponsibilitytobuildtrust:CybersecurityandprivacyprotectionareatoppriorityatHuawei,andwecontinuetoinvestandremaintransparentinbothareas.Wehaveworkedtoimproveoursoftwareengineeringcapabilitiesandpractices,buildresilientnetworks,developtrustworthyandhigh-qualityproducts,andsupportstablenetworkoperationsandbusinesscontinuity.12/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport1.9xincreaseintheaverageenergyefficiencyofHuawei'smainproductscomparedtothebaseyear(2019)300million+kWhofelectricityfromrenewableenergysourcesusedinHuawei'sownoperations,up42.3%over202098%ofHuawei'stop100suppliersandenergy-intensivesupplierssetcarbonemissionsreductiontargetswiththesupportofHuawei89%lessplasticwasusedinthepackagingofHuawei'sP50flagshipphonescomparedtotheP40series,withplasticaccountingforlessthan1%ofpackagingCNY15billion+investedinemployeebenefitsCNY142.7billioninvestedinR&Din2021,equaling22.4%ofthecompany'stotalrevenue1,600+majorsuppliersreceivedasustainabilityperformanceassessmentfromHuawei400+socialcontributionprogramsrunbyHuaweiworldwideEnvironmentalProtectionContributingtoaclean,efficient,low-carbon,andcirculareconomy:Wearecommittedtominimizingourenvironmentalimpactinmanufacturing,operations,andovertheentirelifecyclesofourproductsandservices.Huawei'sinnovativeproductsandsolutionshelpindustriesreducetheirenergyconsumptionandemissions,andcontributetothecirculareconomy.Weactivelyworkwithallourindustrypartnerstoshrinkourcarbonfootprint.HealthyandHarmoniousEcosystemCollaboratingforthecommongood:Weoperatewithintegrityandincompliancewithallapplicablelawsandregulations,andcontinuetoenhancesustainabilityriskmanagement.Weworktoensurethatouremployeescandevelopandrealizetheirpersonalvalue.Weconductduediligenceonourglobalsupplychaintoensureitssustainability.Weactivelycontributetothecommunitiesweoperatein.Ourgoalistoworkwithallindustrypartnerstobuildahealthyandharmoniousindustryecosystem.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/13SustainabilityManagementSustainabilityManagementSystemAspartofoureffortstoachieveourstrategicsustainabilitygoals,wehaveconsideredbothinternalandexternalenvironmentsandfollowedISO26000andtheResponsibleBusinessAlliance(RBA)CodeofConductwhileworkingonthesixkeyareasofoursustainabilitymanagementsystem:leadership,planning,organizationandskillssupport,processoperations,performanceappraisal,andsystemimprovement.Ourgoalistomanageoursustainabilitystrategiesandgoalsinaclosedloop,enhancedigitaloperations,andincreasestakeholdersatisfaction.BusinessenvironmentStakeholdersCustomersBusinessenvironmentStakeholdersCustomers6.Sustainabilitymanagementsystemimprovement•Qualityandoperationsorganization•Capacitybuilding•Infrastructure3.Organizationandskillssupport2.Planning•CountermeasuresforrisksandopportunitiesSustainabilitysolutionplanningChangeplanning••Huawei'sSustainabilityManagementSystemRequirements•Issueclosure•Causeanalysis•Continuousimprovement•Knowledgemanagement•DocumentmanagementSatisfaction1.Leadership•Sustainabilitystrategies,principles,andobjectivesSustainabilitypolicies,rules,andstandardsTieredsustainabilitymanagementauthorizationSustainabilityculture,incentives,andaccountability•••5.Performanceappraisal•CustomersatisfactionsurveysMaturityassessmentsMeasurements,analyses,andevaluationsSustainabilityreviewsManagementreviews••••4.Processoperations•Majorbusinessprocesses(IPD/LTC/ITR)End-to-endsustainabilitymanagement(incorporatingsustainabilityrequirementsintoprocesses)Buildingsustainabilityintotheentirevaluechain(suppliers/partners)••FrameworkofHuawei'sSustainabilityManagementSystem14/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportCSDCommitteeHuawei'sCorporateSustainableDevelopment(CSD)Committeeguidesthecompany'sbusinessunitsinsettingannualandmid-andlong-termsustainabilitygoals,aswellasoverseeingtheattainmentofthesegoalsinaccordancewithourfoursustainabilitystrategies.TheCommitteeconsistsofmorethan10seniorexecutivesfromvariousdepartments,includinghumanresources(HR),manufacturing,logisticsservices,procurement,andresearchanddevelopment(R&D).TheCSDCommitteeischairedbyTaoJingwen,aboardmemberandPresidentoftheQuality,BusinessProcess&ITDepartment.SustainabilityRisksandOpportunitiesWebelievethatsustainabilityriskmanagementispartofthecompany'sbusinessprocesses,ratherthanbeingindependentofbusinessoperations.Tohelpbusinessunitsidentifyandmanagesustainabilityrisks,HuaweihascreatedasustainabilityriskmanagementguidebasedontheRisk,Governance,andControl(RGC)methodology.Theguidecoversriskidentification,riskassessment,targetsetting,riskcontrol,riskmonitoring,andriskgovernance.Webelievethatimprovedsustainabilitywillboostefficiency,increasecustomersatisfaction,loweroperationalrisks,anddrivegreaterbusinessinnovation.Proactivelymanagingsustainabilityrisksandopportunitieswillhelpourcompanybecomemorecompetitive.FunctionsoftheCSDCommittee:•Developscorporate-levelsustainabilitystrategies,guidelines,objectives,andpolicies;setsthecourse;andmonitorstheirimplementation.•Coordinatesthecreation,implementation,andcontinuousimprovementofthesustainabilitymanagementsystem;decidesonsustainabilityrelatedmatters;andensuresthatHuawei'ssustainabilitymanagementcomplieswithrelevantlawsandregulations,internationalstandards,andcustomerrequirements.•Facilitatessustainability-relatedcommunicationwithkeystakeholderssuchascustomers,regulators,andindustryorganizations.•Drivestheresolutionofsustainabilityissuesacrossdomainsorprocessesandcoordinatessustainabilityoperationsfromendtoend.•Providesguidanceonthedevelopment,operation,andimprovementofourenvironment,occupationalhealthandsafety(EHS)managementsystem,andhandlesmajorEHSissues.TheCommitteemeetseachquarterandconvenesspecialmeetingsasnecessarytodiscusssustainabilityissues.Themajortopicsdiscussedatmeetingsin2021included:humanrights,digitalinclusion,environmentalprotection,responsibleprocurement,andsafeproductionandoperations.TosupporttheefficientoperationsoftheCSDCommittee,wehaveappointedaworkinggroup,whichisresponsibleforcoordinatingandcompletingeverydaysustainabilityworkandfacilitatingtheachievementofstrategicgoalsrelatedtosustainability.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/15SustainabilityManagementExamplesofsustainabilityrisksandopportunitiesRisksandOpportunitiesMeasuresSustainabilityStrategyAccordingtotheUN,morethan600millionyoungpeopleworldwidelackbasicmathematicsandliteracyskills.Therefore,inclusiveandequitablequalityeducationisanimperative.ThroughprogramslikeDigiTruckandDigiSchool,Huaweiisworkingwithitspartnerstohelpprovideeveryonewithequalaccesstoqualityeducation.DigitalInclusionAccordingtoareportreleasedbytheUnitedNationsEnvironmentProgramme,climatechange,biodiversityloss,andpollutionarethethreemajorenvironmentalcrisesfacinghumanity.Huaweihaslongpursuedthegreenpledgeof"TechforaBetterPlanet"toactivelyaddressclimateandenvironmentalchallenges.WeuseICTtoreducecarbonemissions,promoterenewableenergy,contributetoacirculareconomy,andprotectnature.EnvironmentalProtectionandDigitalInclusionThebeautyoftechnologyliesinitspotentialtobenefitall.Technologymustbeeasilyaccessibletoboththemassesandtheunderprivileged.Huaweicaresaboutunderprivilegedgroups.That'swhyweareusingourinnovativeICTsolutionstohelpourpartnersprovidemoreeasilyaccessiblehealthcareresourcesandofferingaccessibilityfeaturesdesignedfortheelderlyandthosewithdisabilitiesinourownproducts.DigitalInclusionAnestimated37%oftheworld'spopulationhaveneverusedtheInternet,manyofwhomliveinremoteruralareas.ThroughitsTECH4ALLinitiative,Huaweiiscommittedtobridgingthedigitaldivideandworkingwithpartnerstopromoteindividualdevelopmentforpeopleinremoteruralareasusingourdigitaltechnologies.DigitalInclusionGovernmentsaroundtheworldarepayinggreaterattentiontocybersecurityandprivacyprotection,andhaveadoptedlawsandregulationstostrengthenthegovernanceofcyberspaceandprotectpersonaldata.CybersecurityandprivacyprotectionareatoppriorityatHuawei.Westrivetodevelopsecure,trustworthy,andqualityproducts,solutions,andservicestohelpcustomersbuildmoreresilientnetworks.SecurityandTrustworthinessCybersecurityandprivacyareacommonchallenge,onethatallstakeholders–includinggovernments,industryandstandardsorganizations,enterprises,technologysuppliers,andconsumers–haveasharedresponsibilitytoaddress.InJune2021,weopenedourlargestglobalCyberSecurityandPrivacyProtectionTransparencyCenterinDongguan,China.Wearecommittedtostrengtheningcommunicationandcollaborationwithstakeholders,promotingcommonsecuritystandards,technologicalinnovation,securitygovernance,testing,andverification,andmore.Welookforwardtocollaboratingwithallstakeholderstobuildcybersecurityandprivacyprotectioncapabilities,sharevalue,andembracebothchallengesandopportunities.SecurityandTrustworthinessItisourmissionandprimarysocialresponsibilitytomaintainstablenetworkoperations.Earthquakes,typhoons,epidemics,andothernaturaldisastersandincidentscanallimpactHuawei'sbusinessoperationsinnumerousways,andthusimpacttheoperationsofnetworkswehavedeployed.Wehaverobustmechanismsforrespondingtonaturaldisastersandincidents.WeconstantlyimproveourcapabilitiesinthisregardtoensurethatpeoplehavecontinuedaccesstostableICTservicesanytime,anywhere.SecurityandTrustworthiness16/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportRisksandOpportunitiesMeasuresSustainabilityStrategyIntoday'shighlyglobalizedandhighlyspecializedworld,Huawei'soperationsrelyheavilyonthirdparties.Thismakesbusinesscontinuitymanagement(BCM)critical.Throughyearsofsustainedinvestment,HuaweihasestablishedaBCMsystemfordomainssuchasR&D,procurement,manufacturing,logistics,andglobaltechnicalservices.Thissystemcoversourend-to-endprocesses,fromsupplierstoHuaweiandontoourcustomers.SecurityandTrustworthinessRisingtemperaturesarecausingvariousproblemssuchasenvironmentaldegradation,naturaldisasters,extremeweather,andrisingsealevels.Thereductionofcarbonemissionsisnowaconsensussharedbyall.Huaweiisworkingtoreducecarbonemissionsineveryaspectofitsoperations,includingproducts,operations,andsupplychains,andistakingeveryresponsiblesteptodoso.EnvironmentalProtectionFossilfuelshavecausedmanyenvironmentalproblemsandsustainabilitychallenges.Cleanpowerenabledbytechnologyisasustainablealternativethatwilldriveneweconomicgrowththeworldover.Huawei'sdigitalpowercompanyisdedicatedtointegratingdigitalandpowerelectronicstechnologies,developingcleanpower,andenablingenergydigitalizationtodriveanenergyrevolutionforabetter,greenerfuture.EnvironmentalProtectionAstheworld'spopulationcontinuestogrowandqualityoflifekeepsimproving,thepressureontheworld'snaturalresourcesisincreasing.Toadapttofutureneeds,itisimportantforustodeveloparesource-efficienteconomicmodel.Huaweiiscommittedtobuildingabusinessmodelthatincorporatescirculareconomypracticesandaclosed-loopvaluechainsothatallresourcescanbeefficientlyused,reused,andrecycled,tomaximizeproductvaluewithlimitedresources.EnvironmentalProtectionHuawei'sglobalbusinesspresenceposesachallengetoensuringthehealthandsafetyofouremployees,duetotheeffectsofepidemics,conflicts,andotherpotentialemergencies.AtHuawei,itisacompanypolicytocareforouremployeesandalwaysputtheirsafetyfirst.AstheCOVID-19pandemicevolved,Huaweiswitchedtoscientificpandemic-preventionmethodsandtargetedcontrolmeasures.Theseincludedrapidnucleicacidtests,vaccinations,andcampusentrymanagement.Wehavesparednoefforttohelptransferthoseworkinginhigh-riskregions,alongwiththeirfamilies,tosaferlocationsandprovideallnecessarysuppliesandfinancialassistance.HealthyandHarmoniousEcosystemWehaveworkedforyearstobuildacompliancemanagementsystemthatalignswithindustrybestpractices.Despitetheseefforts,wemaystillexperienceimpactsduetothecomplexlegalenvironmentsofsomeofthecountriesandregionsinwhichweoperate.Forexample,theremaybealackofclarityortransparencyinregardstolocallawsorambiguitysurroundinglegalsystemsorlawenforcement.Huaweiwillcontinuetolearnfromindustrybestpracticesandtakepreventivemeasurestoaddressrisks.Thecertaintyoflegalcomplianceisourbestsafeguardagainsttheuncertaintyoftheexternalenvironment.HealthyandHarmoniousEcosystemAccordingtothefindingsofsupplieraudits,mostoftheidentifiedissuesarerelatedtohealthandsafety,sowemusturgesupplierstofurtherenhanceEHSmanagement.WorkingunderconditionsthatmayputemployeesafetyorhealthatriskisaCSRredlinethatHuaweidrawsforsuppliers.Weprovidetargetedtrainingforsuppliersinkeyindustriesorregions,andotherkeysuppliers,conductauditsonthem,andfollowupontheircorrectiveactions.HealthyandHarmoniousEcosystemInadigitaleconomy,digitaltalentisthekeytodigitalizationandeconomicgrowth.In2021,HuaweilaunchedtheSeedsfortheFuture2.0program.WewillinvestUS$150millionintothisprogramoverthenextfiveyears,andweexpectoverthreemillionmorepeopletobenefit.HealthyandHarmoniousEcosystemHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/17SustainabilityManagementStakeholderEngagementStakeholderidentificationandengagementarecriticaltoHuawei'ssustainabilitymanagement.Communicatingandcollaboratingwithstakeholdersallowsustobetterunderstandtheirconcernsandrequirements.Thisinformationisavaluableinputforourorganizationaldecisionsandhelpsusconstantlyimproveoursustainabilityperformance.Huawei'sprimarystakeholdersincludecustomersandconsumers,employees,suppliersandpartners,governments,non-governmentalorganizations(NGOs),industryorganizations,specialistagencies,themedia,andlocalcommunities.In2021,weidentifiedthetopconcernsofourstakeholdersanddevelopedcorrespondingstrategiestoaddressthem:StakeholdersCommunicationChannelsandFrequencyMajorConcernsHuaweiStrategyCustomersandconsumers•Customersatisfactionsurveys:Annual•Customermeetings:On-demand•HuaweiFanClubforconsumers:Periodic•Customeraudits,surveys,andjointprojects:Periodic•Climatechange/carbonneutrality•Circulareconomyandeco-design•Humanrights•Supplychainduediligencemanagement•Setmedium-andlong-termcarbonemissionsreductiontargetsforourownbusinessandencourageourtop100suppliers(byprocurementspending)andenergy-intensivesupplierstodothesame.•Buildabusinessmodelthatincorporatescirculareconomypracticesandaclosed-loopvaluechain.•EmpowertheCSDCommitteetomonitorandmanagepossiblehumanrightsabusesinHuawei'sbusinessactivitiesandsupplychains,andcontinuouslyimprovethemanagementofkeyareasthatmayhaveanimpactonhumanrights.•Integratesustainabilityrequirementsintoourend-to-endprocurementprocess,fromsupplieradmissionandqualificationtoselection,performanceevaluation,andportfoliomanagement.Employees•Employeesurveys,(e.g.,organizationalclimatesurveys):Annual•ManagerFeedbackProgram(MFP):Annual•Meetingswithemployeerepresentatives:Periodic•Reflectionsessions:Periodic•Hotlinesandpublicemailaddressesforfilingcomplaints,providingsuggestions,reportingmisconduct,andmakinganappeal:Periodic•OpenDayswithmanagersandexperts:Periodic•Healthandsafetyatwork•Compensation,benefits,andincentives•Learninganddevelopment•EmployeerelationsandexperienceworkingatHuawei•Makeitacompanypolicytocareforemployeesandalwaysputtheirsafetyfirst.Createasafeandcomfortableworkplaceforall.•Rewarddedicatedemployeesbasedonhowwelltheyfulfilltheirresponsibilitiesandoffertoppayfortoptalent.•Offeremployeessystematictrainingprogramsandtwodistinctcareerpaths–themanagerpathandtheexpertpath–tohelpthemrealizetheirpersonalvalue.•Promoteworkforcediversity,createaninclusiveandequitableworkplace,andnurtureawarmandharmoniousorganizationalclimate.Suppliersandpartners•Suppliersustainabilityaudits:Periodic•Suppliersustainabilityconferences:Annual•Suppliertraining:Periodic•Jointsustainabilityprograms:Periodic•Fairnessandequity•Collaborationforsharedsuccess•Socialresponsibilities•Energyconservationandemissionsreduction•Prioritizeourcommitmenttoanti-briberyandanti-corruptionaboveourbusinessinterests,andensurefairness,integrity,andtransparencyinouroperations.•Remaincommittedtoopennessandcollaborationforsharedsuccessandworkwithpartnersacrossdifferentindustriesanddomainstobuildupahealthyandharmoniousecosystem.•BenchmarkHuawei'soperationsagainstindustrybestpractices,adoptinternationallyrecognizedstandards,andintegratesustainabilityrequirementsintoourprocurementstrategy.•Encourageourtop100suppliersandenergy-intensivesupplierstosetcarbonemissionsreductiontargetsforagreen,competitivesupplychain.18/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportStakeholdersCommunicationChannelsandFrequencyMajorConcernsHuaweiStrategyGovernments•Meetingsongovernmentpolicy:On-demand•Governmentalpublicconsultations:On-demand•Governmentandinter-governmentconferences:On-demand•Governmentalsustainabilityprograms:On-demand•Combatingclimatechange/carbonneutrality•Economicdevelopmentandemployment•Digitaltalentdevelopment•Followourgreenpledgeof"TechforaBetterPlanet"toactivelyaddressclimateandenvironmentalchallenges,withafocusonreducingcarbonemissions,promotingrenewableenergy,andcontributingtoacirculareconomy.•Continuetoimplementour"Glocalization"strategy,includingeffortstohirelocally,investlocally,procurelocally,andestablishlocalresearchfacilities.Thiswillhelpboostemploymentandsupporteconomicgrowthinthecountriesandregionswhereweoperate.•InvestUS$150millionindigitaltalentdevelopmentoverthenextfiveyearsthroughtheSeedsfortheFuture2.0program,whichisexpectedtobenefitoverthreemillionmorepeople.NGOs,industryorganizations,andspecialistagencies•Industryconferences,forums,andworkgroups:On-demand•Standardsconferences:On-demand•Jointsustainabilityprograms:On-demand•Academicresearchprograms:On-demand•Humanrights•Combatingclimatechange/carbonneutrality•Circulareconomy•EmpowertheCSDCommitteetomonitorandmanagepossiblehumanrightsabusesinHuawei'sbusinessactivitiesandsupplychains,andcontinuouslyimprovethemanagementofkeyareasthatmayhaveanimpactonhumanrights.•Followourgreenpledgeof"TechforaBetterPlanet"toactivelyaddressclimateandenvironmentalchallenges,withafocusonreducingcarbonemissions,promotingrenewableenergy,andcontributingtoacirculareconomy.•Buildabusinessmodelthatincorporatescirculareconomypracticesandaclosed-loopvaluechainsothatallresourcescanbeefficientlyused,reused,andrecycledtomaximizeproductvaluewithlimitedresources.Media•Pressconferences:On-demand•Exclusiveinterviews:On-demand•Invitingthemediatoourconferencesandevents:On-demand•Combatingclimatechange/carbonneutrality•Digitalinclusion•Businesscontinuity•Setmedium-andlong-termcarbonemissionsreductiontargetsforourownbusinessandencourageourtop100suppliersandenergy-intensivesupplierstodothesame.•RolloutthedigitalinclusioninitiativeTECH4ALLacrossfourdomains:education,environment,health,anddevelopment.•Sticktoourstrategyofmaintainingaglobalized,diversifiedsupplychainwithoutdependingonanysinglesupplier,country,orregion,anddevelopsustainedandstablesupplycapabilitiesoverthelongterm.Communities•Localemploymentandprocurement:Periodic•Participationincommunityprojects:Periodic•Runningsocialcontributionprograms:Periodic•InteractionthroughHuawei'swebsitesandsocialmediaplatforms:Periodic•Greenconsumption•Informationaccessibility•Genderequality•Facilitategreenconsumptionbyprovidingconsumerswitheco-friendlyproducts.•IntegrateinformationaccessibilityfeaturesintoHuawei'sproductsandservicesandproviderelatedhotlinesandstoreservicestoensurethatnooneisleftbehindinthedigitalworld.•Releaseastatementongenderequality,inwhichwecommittousingourtechnologiesandplatformstobenefitmorewomen,encouragethemtoworkinthetechindustry,andcultivatewomen'sleadership.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/19SustainabilityManagement2021StakeholderEngagementHuaweiactivelyengageswithglobalstakeholdersbyorganizingandparticipatinginavarietyofsustainabilityprograms.Throughtheseprograms,weareabletodiscussandworktogetheronoursharedconcerns(e.g.usingtechforgood,promotinggenderequality,combatingclimatechange,andenhancingtrustintech)aspartofourefforttosupporttheUNSustainableDevelopmentGoals.Aspartofthelead-uptoMobileWorldCongressShanghai2021,whichranfromFebruary23to25,Huawei,GSMA,theCenterforEnvironmentalEconomicStudiesatFudanUniversity,andThePaperhostedtheConnectedforSharedProsperityforum,withthesupportofUNESCO.Morethan1,000guestsfromover50countriesattendedtheforumeitheronlineorinperson,anddiscussionswerebroadcastliveineightlanguages.Attendeesagreedthatdigitaltechnologyisthefoundationofsustainabledevelopmentandwillbenefitmorepeopleinmultipleaspects.ConnectedforSharedProsperityForumCo-hostedwithGSMAAttheHUAWEIWomenDevelopersSummitheldonApril28,2021inGuangzhou,China,severaloutstandingwomenintechwereinvitedtosharetheirtechnicalknowledge,workexperience,andpersonalstoriestoencouragemorewomentoworkandplayauniqueroleinthetechfield.ThesummitwashostedbyHUAWEIWomenDevelopers(HWD),Huawei'sglobalwomenempowermentprogramdesignedtohelpwomendeveloperscreateworld-changingappsandtools.HWDaimstoprovidewomenwiththeresourcestheyneedandencouragemorewomentojoinintechnologicalinnovationbyofferingthemopportunitiestolearn,communicate,andexpressthemselves.Thisispartofoureffortstocontributetoamorediverseecosystem.HUAWEIWomenDevelopersSummitforGreaterGenderEqualityandaMoreDiverseEcosystemDuringEUGreenWeek2021,HuaweianditsEuropeanpartnersheldfiveonlineandofflineforumsfromMay31toJune13,2021toexplorehowdigitaltechnologyiskeytocreatingagreenerfuture.Theeventsbroughttogetherattendeesfromvariousorganizations,includingtheDirectorate-GeneralforEnvironmentofEuropeanCommission;theIrishDepartmentofAgriculture,FoodandtheMarine;GermanParliament;GeSI;andtheUnitedNationsEnvironmentProgramme(UNEP).Theattendeesdiscussedtentrendsinnewenergydevelopment,theimportantroleofICTinachievingtheEuropeanGreenDealtargets,andtheneedforpublicandprivatepartnershipsandindustry-widecollaborationtoshapeasustainableandintelligentworld.HuaweiatEUGreenWeek20/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportOnJuly8,2021,Huaweihelda"Tech&Sustainability:Everyone'sIncluded"forum,co-hostedwiththeInternationalUnionforConservationofNature(IUCN).RepresentativesfromHuawei,IUCN,theWorldEconomicForum,CDP,GeSI,andtheSingaporeInstituteofInternationalAffairsdiscussedtheroleoftechnologyindrivingsustainabilityandbuildingamoreinclusive,eco-friendlyworld.Attheforum,HuaweiannounceditsSeedsfortheFuture2.0program,throughwhichHuaweiplanstoinvestUS$150millionindigitaltalentdevelopmentoverthenextfiveyears.Thisprogramisexpectedtobenefitoverthreemillionmorepeople.HuaweialsoreleaseditsInnovation:Blood,SweatandDreamsdocumentaryseriesproducedtogetherwiththeEconomistGroup,whichpaystributetotechnologicalinnovatorsandconservationists.Huawei'sTech&SustainabilityForumExploringtheRoleofTechnologyinSustainableDevelopmentFromNovember1to12,2021,the26thUNClimateChangeConferenceoftheParties(COP26)washeldinGlasgow.TheCOP26summitbroughtvariouspartiestogether,includinggovernments,institutions,andtechcompanies,toaccelerateactiontowardsthegoalsoftheParisAgreementandtheUNFrameworkConventiononClimateChange(UNFCCC).Dr.FangLiangzhou,VicePresidentandChiefMarketingOfficerofHuaweiDigitalPower,spokeattheNovember3session"SystemChangeandClimateInnovationintheTechnologyIndustry"hostedbytheUNFCCCGlobalInnovationHub.Fangdeliveredakeynoteaddressonlineentitled"BuildingaLow-carbonSmartSociety",wherehedescribedhowHuaweiDigitalPowerintegratesdigitalandpowerelectronicstechnologiestohelpindustriessaveenergyandreduceemissionsinbothpowergenerationandconsumption.Fangalsocalledforjointeffortstobuildalow-carbonsmartsocietytogether,soastocombatclimatechangeandaccelerateprogresstowardscarbonneutrality.HuaweiatCOP26OnDecember2,2021,HuaweiheldtheonlineTrustInTechSummit2021themed"GlobalCollaborationforSharedValue".Leadersfromacrosstheglobeattendedtheevent,includingNeilBush,ChairmanoftheGeorgeH.W.BushFoundationforUS-ChinaRelations;PascalLamy,FormerWTODirectorGeneral;2018EconomicsNobelPrizewinnerWilliamNordhaus;ASEANDeputySecretaryGeneralH.E.SatvinderSingh;NASASolarSystemAmbassadorDerrickPitts;andHouJinlong,SeniorVicePresidentofHuaweiandPresidentofHuaweiDigitalPower.Attendeesacknowledgedthathumanityhasenteredanerainwhichinterests,fates,andfuturesareallintertwined,andcalledforcoordinatedeffortstoaddresscommonchallenges.Huawei'sTrustInTechSummitHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/21SustainabilityManagementHighHighLowImportancetoHuawei'sbusinessBusinesscontinuityRenewableenergyCirculareconomyandeco-designClimatechange/carbonemissionsreductionCybersecurityandprivacyprotection&opennessandtransparencySupplychainsustainabilityTechnologyfornatureconservationTechnologyforinclusionandequityinhealthandinformationaccessibilityTechnologyforequityandqualityineducationOccupationalhealthandsafetyDigitaltalentdevelopmentCommunityparticipationandcontributionsSustainabilitymanagementsystemGenderequalityTechnologyforbalanceddevelopmentStablecommunicationsBusinessethicsRespectinghumanrightsDiversityandinclusionEmployeetraininganddevelopmentImportancetostakeholdersChapter1SustainabilityManagementChapter2DigitalInclusionChapter3SecurityandTrustworthinessChapter4EnvironmentalProtectionChapter5HealthyandHarmoniousEcosystemHuawei'sMembershipinSustainabilityOrganizationsFocusingonMaterialIssuesManagingmaterialissueshelpsusidentifythemajorissuesthataffectourbusinessoperationsandthatconcernourstakeholders.Itisakeyinputforimprovingoursustainabilityperformance.In2021,afteracomprehensiveanalysisandre-prioritizationofourmaterialissues,weadjustedthematerialitymatrixtoincludemoreissuesthatreflectstakeholderconcerns,including"digitaltalentdevelopment","informationaccessibility",and"genderequality".Thenewmatrixalsomakes"supplychainsustainability"and"renewableenergy"ahigherpriority.Examplesofhowweidentifymaterialissuesinclude:•Stakeholdersurveys•Customerinquiries,audits,communications,andjointprojects•Industryinsights,communications,andbenchmarking•Mediaengagements•Internalriskassessmentsandstrategicalignment22/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportDigitalInclusion2DrivingEquityandQualityinEducationConservingNaturewithTechnologyEnablingInclusiveHealthandWell-beingDrivingInclusiveDigitalDevelopmentHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/23DigitalInclusionAsthedigitaleconomycontinuestodeveloprapidly,digitaltechnologieslikebigdata,IoT,andAIhavebeeninterwovenintoeveryaspectofourlives.Digitalinclusionhasbecomeanewrequirementinthisnewage.Topromotedigitalinclusion,HuaweilaunchedtheTECH4ALLinitiative,aswebelievethatnooneshouldbeleftbehindinthedigitalworld.In2021,Huaweiworkedwithmorethan40partners,includingUNESCO,theInternationalUnionforConservationofNature(IUCN),thenon-profitorganizationClosetheGap,andRainforestConnection(RFCx).Wemadesubstantialprogressintheareasofeducation,environment,health,anddevelopment,contributingtoachievingtheUNSDGs.24/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportDrivingEquityandQualityinEducationUNESCObelievesthateducationisahumanrightforallthroughoutlifeandthataccessmustbematchedbyquality.Huaweiisworkingwithitspartners,includingUNESCOandClosetheGap,andusinginnovativeICTsolutionstoenableeveryonetohaveequalaccesstohigh-qualityeducation,whichcontributestotheSDG4(QualityEducation).Weaimtoharnessthepoweroftechnologyandincreasenetworkcoverageandconnectionstohelpmakehigh-qualityeducationalresourcesmoreaccessible.Wewanttoempowermorepeoplewithdigitalskillstoimprovethequalityofeducationandcareerdevelopment.Wealsosupportthedevelopmentoftechnologycoursestoimprovethescientificandtechnologicalliteracyofteachersandstudentsinremoteareas.Bytheendof2021,Huawei'seducationprogramshadbenefitedmorethan110,000people,includingteachersandstudentsfromover400schools,aswellasunemployedyoungpeople.DigiTruck:ImprovingtheDigitalSkillsofPeopleinRemoteAreasDigiTruckinKenyaempoweringpeopleinremoteruralareaswithdigitalskillsDigiTruckinFranceprovidingdigitalskillscoursesInKenya,lessthan50%ofpeopleusetheInternet.Thisisbecauseover75%ofKenyansliveinremoteareasandmanypeopledonotrealizetheeconomicvalueofdigitalskills.Infact,someKenyanshaveneverusedasmartphoneorgoneonline.Toempowerpeopleinremoteruralareaswithdigitalskills,HuaweilaunchedtheDigiTruckprojectin2019,inpartnershipwithUNESCO,ClosetheGap,GSMA,ComputersForSchoolsKenya(CFSK),andtheKenyancarrierSafaricom.DigiTruckisamobiledigitalclassroomthathasbeenconvertedfromashippingcontainer.Theentiretruckissolar-powered,soclassescanbeheldinremoteareaslackingadequatepowersupplies.Insidethetruck,adigitalspacewithsmartdeviceslikelaptops,LEDscreens,VRgoggles,smartphones,androuters,hasbeensetup.Thankstothewirelessbroadbandavailableonthetruck,studentscanaccesstheInternet,learndigitalskills,andtrytheVRdevicesandotherinnovativeeducationaltools.Bytheendof2021,DigiTruckhadprovidedmorethan38,000hoursoftrainingtoover2,100youngpeopleinKenya.InFrance,14millionpeopleexperienceatleastoneformofdigitaldivide–whetheritbeInternetaccess,computerliteracy,ordifficultyusingdevices.Asaresult,manylackthedigitalskillsthatemployersneed,limitingindividualopportunities.InJuly2021,HuaweipartneredwithalocaltraininginstitutetoprovidetrainingindigitalskillsforunemployedyoungpeopleandtheelderlythroughtheDigiTruckmobileclassroom.Bytheendof2021,theprojecthadprovidedmorethan700hoursoftrainingtoover1,500peopleinnineFrenchcities.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/25DigitalInclusionDigiSchool:EnablingScientificandDigitalLiteracyinK12SchoolsWithdigitaleducation,we'renotonlyaddressingtheliteracycrisis,butalsoequippingyounglearnerswiththedigitalskillsrequiredforfuturesuccess.—NicolaHarris,ChiefExecutiveOfficerofClickFoundationDigiSchoolinSouthAfricahelpingprimaryschoolchildrenimprovetheirEnglishreadingcomprehensionskillsAsProgressinInternationalReadingLiteracyStudypointsout,78%ofgradefourchildreninSouthAfricalackbasicEnglishreadingcomprehensionskillsduringtheliteracyfoundationphasefromgradesonetothree.Toaddressthischallenge,HuaweilaunchedtheDigiSchoolprojectinpartnershipwiththelocalcarrierRainandtheeducationalnon-profitorganizationClickFoundation.TheprojectaimstohelpallchildreninSouthAfricareadfluentlyandcomprehendwhattheyarereadingbytheendofgradethree.Bytheendof2021,theprojecthadconnectedover90schoolsandreachedmorethan50,000students.HuaweijoinedChina'sGreenPepperprogramIn2020,HuaweijoinedChina'sGreenPepperprogram.Thisinitiativeprovidesonlinevocationaltrainingforyoungteachersinruralareaswhohavebeeninthejobforbetweenoneandthreeyears.Itishopedthatthiswillencouragemoreteacherstojoinandremaininruralschools,aswellasimproveteachingquality.Huawei'sWeLinkapplicationplaysanessentialroleinthisprogram,actingasadigitalconnectortoofferanopen,intelligent,andcollaborativelearningplatformforteachers.Sinceitslaunchin2020,theprogramhasbenefitedmorethan35,000teachers.DigiSchoolofferingSTEAMcoursestoinspirethecreativityofprimaryschoolchildrenIn2021,HuaweialsolaunchedtheDigiSchoolprojectinChinatoimprovethescientificandtechnologicalliteracyofruralstudentsandteachers.Buildingonitscutting-edgeICTinnovationsandknowledge,HuaweidevelopedaseriesofSTEAMcourses,openingthedoorofthetechnologyworldtoteachersandstudentsinremoteruralareas.Bytheendof2021,wehaddeliveredthefirstphaseoftheprojectinruralschoolsinmidwesternChina,benefitingmorethan400teachersandstudents.26/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportConservingNaturewithTechnologyAccordingtoareportreleasedbytheUnitedNationsEnvironmentProgramme,climatechange,biodiversitylossandpollutionarethethreemainenvironmentalcrisesfacinghumanity.The2021UNBiodiversityConference(COP15)andthe2021UNClimateChangeConference(COP26)highlightedtheglobalconsensusthatweneedtoworktogethertoaddressbiodiversitylossandclimatechange.Tothisend,HuaweiisworkingwithenvironmentalprotectionorganizationsandpartnersonprojectsthataimtoexploretheuseofICTtoprotectforests,wetlands,oceans,andnatureasawhole.Throughwildlifeprotectionefforts,thenumberofwildAsianelephantshasincreasedinthetropicalrainforestofXishuangbanna,China.Asaresult,theirhabitatsoverlapwiththelivingspacesoflocalcommunities.Preventingconflictsbetweenelephantsandpeopleisatoppriorityoflocalconservationefforts.ChinaMobileYunnanandHuaweijointlybuiltaninnovativenetworkthathelpedXishuangbannabuildChina'sfirstAsianelephantprotection,monitoring,andwarningsystem.Itconsistsofawarningbroadcastsystemthatpusheswarningsofelephantmovementstolocalsonamobileappifanelephantisdetected.MonitoringdevicesaredeployedinplaceswhereelephantsfrequentlyAll-opticalSmartCityNetwork:AllowingElephantsandPeopletoLiveinHarmonyArescuergivingwildtrainingtorescuedelephantsroam.Thesystemhassofarcollected1.43millionimagesandsentmorethan6,000warnings,greatlyreducingunplannedhuman-elephantencounters.Therehavebeenzeroincidentsofhumaninjuryorotherconflictsintheareascoveredsincethesystemwasdeployed.—TanXuji,DirectoroftheAsianElephantMonitoringCenteroftheScientificResearchInstituteofXishuangbannaNationalNatureReserveofYunnanProvinceHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/27DigitalInclusionProtectingAgainstInvasiveSpecieswithAI91%ofwildsalmoncanbeidentifiedusingHuawei'sAscendAItechnology,reducingmanualworkloadsandprotectingbiodiversitymoreefficientlySalmonisapillaroftheNorwegianeconomy,andwildsalmon,alsoknownastheAtlanticsalmon,isthebasisforthehealthydevelopmentofsalmonfarminginthecountry.Butlargeinvasionsofhumpbacksalmonandescapedfarmedsalmonarethreateningthesurvivalofwildsalmon.Theseinvasivespeciesaffectthereproductionofwildsalmonandalsospreaddisease,threateningthehealthofnativefishspecies.ThepopulationofNorwegianwildsalmonhasdecreasedbyhalf,andithasbeenlistedasanear-threatenedspeciesbyNorway.In2021,HuaweiandBerlevagJFF,anassociationofhuntersandanglersinNorway,collectedimagesofriverbottomscapturedbyunderwatercameras.TheywerethenabletoidentifynativeandinvasivefishspeciesintheriversinrealtimewiththehelpofHuawei'sAscendAItechnology.Thetechnologycanidentify91%ofwildsalmon,reducingmanualworkloadsandprotectingbiodiversitymoreefficiently.Theprojectteamprovidedthefirstcomprehensiveanddynamic24/7reportonfishinformationtolocalriverconservationassociations,providinganaccuratesourceofdataforrivergovernanceefforts.AIrepresentsarayofhopeinthestruggletoprotectagainstinvasivesalmonandconservethebiodiversityofriversinNorway.RivermanagersandvolunteersinNorwayinstallinganunderwaterAImonitoringsystem28/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportNatureGuardian:ProtectingOasesinItalyTheWWFhasdesignated100protectedoasesinItaly.TwooftheseareOrbetelloLagoonandBuranoLakeinGrosseto.Combined,theyarehometoalmost300speciesofbirds.ThethirdsiteistheAstronicraterinNaples,whichhousesthreelakes;apristineMediterraneanforest;130speciesofbirds;andlargeamphibian,reptile,andinsectpopulations.Themainthreatstothesethreehotspotsofbiodiversityarepoaching,illegallogging,andunauthorizedrecreationalactivitiessuchasmotocrossandfireworkdisplays,whichcandecimatehabitatsandstartforestfires.ForWWFrangers,patrollingtheseareasonfoot,orevenonwheels,istime-consumingandlabor-intensive.Respondingtoincidentsinrealtimeisincrediblydifficult.Tohelpprotecttheseecosystems,HuaweipartneredwithWWFItaly,theUniversityofPavia,andRFCxtodeploy10networkedNatureGuardiansand45offlineAudioMothdevicesinthethreesites.TheGuardianscanmonitorenvironmentalsoundsfromeachsiteinrealtime,andtransmitaudiodatatothecloudoveraTheDirectorofAstroniCraterNatureReserveinstallinganofflineAudioMothdevicetoprotectlocalecosystemswirelessnetwork.AIanalyticscanidentifysoundsthatmayconstituteenvironmentalthreatssuchaschainsaws,gunshots,ormotorbikeengines.TheAudioMothdevicesidentifydifferentanimalspeciesfromtheirvocalizations,monitoranimaldistributionandpopulations,anddeterminefactorsthatdisturbthem,includingtheeffectsofclimatechange.SinceitsdeploymentinAugust2021,theGuardiansystemhascollectedandanalyzedanenormousvolumeofacousticdata.Atotalof15alertsofpotentiallyillegalactivitiesacrossthethreesiteshaveenabledWWFrangerstoinvestigateincidentsinrealtime.AtthesiteinNaples,onealertallowedlocalpoliceandWWFrangerstoseizeequipmentbeingusedtoillegallytrapanimals.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/29DigitalInclusionEnablingInclusiveHealthandWell-beingHuaweihopesthateveryoneatanyage,includingthoselivingwithadisability,canequallyandeasilybenefitfromtechnologicaladvances.That'swhyHuaweihascreatedawiderangeofproductsandservicesthatofferinformationaccessibilityfunctionsandhelpedhealthcareworkersprovideunderprivilegedgroupswithtailored,easilyaccessibleservices.TrackAI:DiagnosingandTreatingVisualImpairmentsinYoungChildren4,500+childrenfromfivecountrieshavereceivedvisualexaminationsusingTrackAIDiagnosinghealthissuesinyoungchildrencanbeverydifficultbecausetheyareunabletocommunicateeffectively.Andnowhereisthismoreevidentthaninbabiesbornwithavisualimpairment.Congenitaleyeconditionsandlowvisioncangounnoticedinveryyoungchildren,becausetheygetusedtoitwhentheyarestillbabies.Acombinationofthesefactorscanmakeeyediseasesincrediblydifficulttodiagnoseearlyoninaperson'slife.However,mostvisualimpairmentscanbepreventedorcuredifcaughtearlyenough.Sohowcanwetellwhetherababycanseeproperly?Withcurrenttools,onlyhighlyexperiencedophthalmologistscanassessthevisualfunctionsinveryyoungchildren.Totackletheshortageofophthalmologistsandthedifficultyofdiagnosingeyediseasesinyoungchildren,theSpanishstartupDIVEMedicalandHuaweijointlylaunchedtheTrackAIproject.Throughthisproject,childrenwithavisualimpairmentcanbequicklyidentifiedwithaneasy-to-usedetectiondevice.Thedeviceusesaneyetrackertomonitorachild'sgaze,whileHuawei'sAIdetermineswhetherthechildissufferingfromanyvisualimpairments.Sincetheprojectwaslaunchedthreeyearsago,morethan4,500childrenfromfivecountrieshavereceivedvisualexaminations.AtoddlerreceivingavisualexaminationusingTrackAI30/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportInformationAccessibility:CreatingMorePossibilitiesThebeautyoftechnologyliesinitspotentialtobenefitall.Technologymustnotonlycatertotheneedsofthemajority,butalsobeeasilyaccessibletothoseinneed.HarmonyOShasbeenbuiltfromthegroundupwithaccessibilityasakeypriority.Thissystemoffersadiversearrayofaccessibilityfeatureslikescreenreaderlabelsandaccessibilityfocusandgestures.HarmonyOSalsooffersanaccessibilityframeworkandAPIsthatallowthird-partydeveloperstocreateagreaternumberofaccessibilityfeatures.Webelievethataccessibilityisnotjustforpeoplewithdisabilities.Anyonecanexperienceimpairedphysicalfunction,forexample,whenbedriddenfromillnessorwheneyesightdeteriorateswithage.VisibilityenhancementsZhongwei,whoisnowapianotuner,hasbeenvisuallyimpairedsincebirth.In2015,heboughthisfirstHuaweiphone,aP8max.Sincethen,ZhongweihasbecomeveryfamiliarwiththeaccessibilityfeaturesonHuaweiphones,andtheynowprovidehimwithimportantsupportinhisdailylife.HeparticularlylikesusingtheAILifeapp,whichcancontrolandmanageallofhishouseholdappliancesandsmartdevices.WiththeScreenReaderfeature,ZhongweicanturnonhisairconditionerandeasilyadjustthetemperatureanddirectionoftheairflowontheAILifeapp.Whenfriendsvisit,hecanhelpthemconnecttohisWi-Finetwork.ZhongweiiseffusiveinhispraisefortheHuaweiAILifeapp:"ThisisbeyondwhatIcouldhaveimaginedjustafewyearsago.Inthepast,everydevicecamewithadedicatedremotecontrol.Therewasnovoicecommandoption.Isometimesneededhelpwhenusingthem."HearingthebeautyofclassicalChinesepoetryGuoguo,whoishearing-impaired,hopestousetechnologytohelpremovethecommunicationbarriersfacingdeafpeople.Forthisreason,shebecametheprojectleaderforanintelligentsignlanguagetranslationprogramcalledYiyu.JointlydevelopedbyHuaweiandalocalpartner,thesoftwaretranslatesspeechintotextandsignlanguageinrealtime,helpinghearing-impairedpeopleaccessinformationmoreeasily.Whiletestingtheapplication,developersnoticedthatchildreninspecialeducationschoolsstruggledtounderstandclassicalChinesepoetrybecauseofalackofsignlanguagevocabularyandgrammar.Tosolvethisproblem,theprojectteamdevelopedpoetrycourseswithsignlanguagetranslations,allowingchildrentoexperiencethebeautyoftraditionalChineseliteraturethroughvividillustrationsandsigningbyYiyu'svirtualinterpreters.ThesecourseshavebeendeliveredinschoolsforthedeafinseveralcitiesinChina,andwillbeofferedfreeofchargeinmoresuchschoolsinthefuture.HelpingelderlypeopleenjoyadigitallifestyleHuaweihasdevelopedlearningmaterialsandteachingpracticesspecificallyforelderlypeople,helpingthembecomefamiliarwithsmartdevices.•HuaweidevelopedtheMobilePhoneInstructionsforParents,aguidethathelpselderlypeopleunderstandwhichfunctionsareusedinspecificscenarios.Itisnowinitsninthedition.Userscangettheprintversionfreeofchargeatover1,600HuaweiauthorizedservicecentersinChina.•HuaweidevelopedtheBringingYouaDigitalLifestyleseries,whichincludessevencoursesonbasicmobilephoneuse,safemobilephoneuse,healthcare,smarttravel,andentertainment.Userscansignupandattendthesecoursesinmorethan4,000experiencestoresinChina,orvisitthestoresanytimetheywanttoinquireabouthowtousetheirphones.Duringthe2021DoubleNinthFestivalalone,morethan3,000sessionsweredelivered.•Huawei'sdevicestoresworkcloselywithlocalcommunities,localauthorities,activitycentersforseniorcitizens,nursinghomes,welfarecenters,andapartmentbuildingmanagerstohold"HuaweiClassesinCommunities"events.Seniorscanlearnatthestorenearesttothemandsolveanyissuestheyfacewithusingtheirmobilephones.ZhangYimin,alecturerataHuaweideviceexperiencestoreinJilin,gave14trainingsessionsinthelocalcommunityduringhissparetimein2021.Infact,therearemanylecturerslikeZhangatHuawei.Theyareactiveinlocalcommunitiesandhelpelderlypeoplebetterenjoytheconvenienceandfunofsmartdevices.AHuaweilecturerdeliveringtheBringingYouaDigitalLifestylecoursesinalocalcommunityHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/31DigitalInclusionDrivingInclusiveDigitalDevelopmentAnestimated37%oftheworld'spopulationhaveneverusedtheInternet,manyofwhomliveinremoteruralareas.ThroughitsTECH4ALLinitiative,Huaweiiscommittedtobridgingthedigitaldivideandworkingwithpartnerstopromoteindividualdevelopmentforpeopleinremoteruralareasusingourdigitaltechnologies.Wealsoempowertraditionalindustriestogodigitalandhelpthemoffersaferworkingenvironmentsfortheiremployees.AirPON:ConnectingtheUnconnectedInthemountainsofChiangMai,Thailand,amountainroad60kilometerslongprovidesthemainaccessrouteconnectinglocalvillagestothenearestcity.However,floodingoccurswheneveritrainsduetothesteepterrainandlackofdrainage,andtheroadhasearnedthelocalnickname"WaterRoad".Thisruggedmountainroadandthelackofaccessareagreatinconveniencetoresidents.Toimprovethissituation,theNationalBroadcastingandTelecommunicationsCommission(NBTC)ofThailandusedHuawei'sAirPONsolutiontoimplementtheUSONETprojectinthemountainousareasinChiangMai.Duringafieldvisit,theprojectteamfoundthattheresidentslivingintheseareaswerenotjustfarfromthecity,butalsoscatteredacrossmanysmallvillages.AtraditionalFTTHsolutionwouldbetoocostly,anditwasdifficulttofindasuitableplacetoaccommodatealltherequiredfacilities.Incontrast,Huawei'scost-effectiveAirPONsolutioncanrepurposeexistingpolesandcables,withequipmentroomsinstalleduponpoles,makingcommunicationsservicesavailableandaffordabletolocalresidents.Bytheendof2021,theUSONETprojecthadprovidedInternetaccessto19,652villages,including3,920bordervillages,andabout600,000householdsnowhaveaccesstohigh-speedbroadbandservices.Throughthisproject,wealsoprovidedtargeteddigitalskillstrainingtolocalpeopletofurtherbridgethedigitaldividebetweenurbanandruralareas.Withhigh-speedbroadbandservices,doctorsinThaivillagescanconsultwithspecialistsinlargecitiesthroughtelemedicinedevices600,000householdsnowhaveaccesstohigh-speedbroadbandservicesand19,652villagesareconnectedtotheInternetthankstotheUSONETproject32/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportAdvancesinnetworkandagriculturaltechnologiesareincreasingtheyieldsofdragonfruitandtheincomesoffarmers,makingahugedifferencetovillagesinGuangxiGigabitOpticalNetwork:HelpingBoostChina'sRuralEconomyGuangxiisChina'slargestproducerofdragonfruit.InGuangxi'sLong'an,traditionalfarmingmethodsmeanthardlaborforlocalpeople,astheyhavetoperformbothfertilizationandirrigationbyhand.Moreover,youngpeoplefromruralareasarereluctanttoworkinagriculture.Mechanizationandintelligence,bothrelyingonhigh-speedbroadbandnetworks,arethefutureoffarming.HuaweihelpedChinaTelecombuildaubiquitousgigabitopticalnetworkacrosstheurbanandruralareasofGuangxithatarecoveredbyfiber.Thankstothehighbandwidth,lowlatency,andhighlyreliableconnectivity,JinfuFarmwasabletotransformitsfarmingmethodsfromlabor-intensivetodigitallyled.•Theintegratedfertilizationandirrigationmanagementsystemautomaticallyirrigatesupto367hectaresofland,freeingupfruitfarmersfromhavingtowatertreesbybarrelundertheblisteringsun.•Sensorsregularlymonitorsoilconditions,allowingprecisefertilizationthatinturncutsfertilizercostsbyaboutCNY15,000perhectareperyear.•Theautomatictemperaturecontrolsystemspraysandcoolsthetreesinsummer.Inwinter,heaterskeepthemwithintheoptimumrange,greatlyincreasingannualyields.•Thevisualtrackingsystemmonitorsthegrowthofthefruit.Withmorethan40GBofdatageneratedeveryday,thegigabitopticalnetworkquicklymigratesthedatatothecloud.ConsumerscanscanQRcodestoseetheplaceofproduction.In2021,localcommunitiesgeneratedadditionalrevenueofmorethanCNY15millionfromdragonfruit,benefitingmorethan40,000low-incomefarmers.Advancesinnetworkandagriculturaltechnologyaremakingahugedifferencetolocalcommunities.Theyaremakingagriculturalproductioneasierandtheruraleconomymoredynamic,improvingthequalityoflifeforlocalpeople.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/33DigitalInclusionHuawei'sFTTM-poweredultra-remote-controlsolutionisenablingworkersatthePortofShanghaitoconductremoteoperationsfromthecomfortofacommandcenter100kilometersawayfromtheport,andhasdemonstrablyimprovedworksafetyandboostedproductivity.FTTM-poweredUltra-remote-control:SaferandMoreEfficientPortOperationsPortsunderpintheglobaleconomyandserveasabarometerofeconomicactivity.However,workingatcontainerportsisincrediblylabor-intensive.Craneoperatorsneedtoworkataheightof40meters,withoutaccesstofoodorwaterforhours.Theyhavetospendentireshiftswiththeirheadstilteddownwardsatthefloorbelow,whichhascausedmanyseriousneckissues.Inaddition,manualworkisextremelyinefficient.Huawei'sultra-remote-controlsolutionpoweredbyFibertotheMachine(FTTM)allowsportworkerstointelligentlyloadandoffloadcargofromthecomfortofacommandcenterahundredkilometersaway.Thissolutionhasthreekeyfeatures:•Lowlatencyandlargebandwidth:Thesolutionensuresnovideodelayorfreezingandprovidesreal-timevisibilityofequipmentstatusatports.•Secureandreliable:Itprovidesdual-linkfiberconnectivityandfull-linkredundancyprotection,enablingzeroserviceinterruptions.Thesolution'stwo-waylink-levelencryptionimprovesbothreliabilityandsecurity.•Easytooperateandmaintain:Thesolutionsupportsplug-and-playandtheservicecanbeautomaticallyprovisioned.Allequipmentiscentrallymanagedandeasytooperateandmaintain,andequipmentstatusisvisibleandmanageable.Huawei'sFTTM-poweredultra-remote-controlsolutionimprovesworksafetyandproductivityatthePortofShanghai34/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportSecurityandTrustworthiness3CyberSecurityandPrivacyProtectionOpennessandTransparencySupportingStableCommunicationsBusinessContinuityHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/35SecurityandTrustworthinessWeliveinahighlyinterconnectedworld,wherethephysicalanddigitalrealmsareconvergingandnetworkboundariesareincreasinglyblurred.Cybersecurityandprivacyprotectionareevermoreimportant.Overthepastyear,asuccessionofcriticalvulnerabilities,supplychainattacks,andadvancedpersistentthreats(APTs)emerged.Cybersecuritythreatshavebecomeubiquitous,arisinginproducts,services,operations,internalITsystems,supplychains,code,andpersonnel.Governmentsaroundtheworldarepayinggreaterattentiontocybersecurityandprivacyprotection,andhaveadoptedlawsandregulationstostrengthenthegovernanceofcyberspaceandprotectpersonaldata.Withtherisingroleandimportanceofdatainallpartsofourlives,dataprotectionandcompliantdatausearebecomingabasicrequirement.Asdigitaltransformationacceleratesacrossindustries,theapplicationofnewtechnologies–suchascloudcomputing,artificialintelligence(AI),5G,andbigdata–bringsrisksaswellasopportunities.Weneedtoconsiderhowtomeettheincreasinglystrictcompliancerequirementsofregulators,andhowtoprovidesecureandtrustworthyproductsandservicesthatfulfillourcommitmentstocustomers.Wealsoneedtoembraceadefense-in-depthapproachtoprovidebettersecurity,ensurebusinesscontinuity,andimproveefficiencyandcustomerexperiencewhileprotectinguserprivacy.WealsoneedtogivepeopleaccesstostableICTservicesduringmajorincidentslikenaturaldisastersandpandemics.Thesearethechallengesandopportunitiesofthedigitaleconomy.36/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportCyberSecurityandPrivacyProtectionOverthepastthreedecades,wehavebuiltmorethan1,500networkswithcarriersandhelpedmillionsofenterpriseswithdigitaltransformation.Duringthistime,wehaveconnectedoverthreebillionpeoplearoundtheworldandmaintainedasolidtrackrecordinsecurity.Withdigitaltransformationpickinguppace,weareacutelyawarethatcybersecuritywillbecomeacornerstoneofthefuturedigitalworld.Businesssuccesswillnotbeachievedwithoutsecurity,trustworthiness,andprivacyprotection.Wecontinuetoplacecybersecurityandprivacyprotectionasatoppriority.Wearecommittedtoconfrontingcybersecurityandprivacychallengesandopportunitiesthroughmanagementtransformation,technologicalinnovation,andopencollaboration.Wewanttofosterabetterlifeforallinthefuturedigitalworldbyofferingsecureandtrustworthyproducts,solutions,andserviceswherepersonaldataislawfullyusedandalwaysprotected.Wecontinuouslyoptimizeourend-to-endcybersecurityandprivacyprotectionassurancesystem,makingsurethateachdomainisconstantlyrefinedandup-to-date:Deepeningtrustworthinesstransformationtoenhancesoftwareengineeringcapabilitiesandcyberresilience,andbuildingsecure,trustworthy,andqualityproductsandsolutionsIn2021,weimprovedourinternaloff-the-shelfcomponentsoftrustworthytechnologiesandproductdesignplatforms,andimplementedthecleancodemechanismtocontinuouslyimprovecodequalityandreducevulnerabilities.Wealsoenhancedthreatanalysisandtrustworthydesign,bringingimprovementstothesecurityandresiliencecapabilitiesofproductsandsolutions.WeincorporatedthesoftwareengineeringcapabilityenhancementsintotheIntegratedProductDevelopmentLifecycle(IPD12.0).Intermsoforganizationalchanges,westrengthenedtheintegrationandcontinuousdevelopmentofcommonsecuritycapabilities.Wesetupacorporate-levelvulnerabilitymanagementcenterbasedontheProductSecurityIncidentResponseTeam(PSIRT)toenhancecommonvulnerabilitymanagementcapabilities.WealsointegratedtheTrustworthinessEnablingDepartmentandITEquipmentDepartmentattheproductlineleveltohelpimplementsoftwareengineeringcapabilitiesthroughITsystems.ConsolidatingprivacygovernancetorespectandprotectuserprivacyWecomplywithprivacyprotectionlawsandregulationsinthecountriesandregionsinwhichweoperate.In2016,weestablishedaunifiedprivacygovernanceframeworkinaccordancewiththeGeneralDataProtectionRegulation(GDPR).Withsuccessivepersonaldataprotectionlaws–suchasChina'sPersonalInformationProtectionLaw–beingenactedandcross-borderdatatransferrequirementsbeingimposedindifferentregionsandcountries,wehavecontinuouslyimprovedourgovernancearchitectureandtechnicalcapabilities,andincorporatedprivacyprotectionandcross-borderdatatransferrequirementsintoR&D,services,operations,andotheraspects.Basedonthegovernancearchitectureandprocesses,wedevelopedaseriesofITtoolsandplatformstoimprovecomplianceeffectivenessandmanagementmaturity,andprovidedtransparentandclearcomplianceprocessesandresults.Wehandledover20,000datasubjectrequestsinatimelyandeffectivemanner,protectingtherightsofdatasubjects.Weconducted30internalandexternalauditsindifferentcountriesacrossbusinessdomains,andmultiplesubsidiarieshaveobtainedinternationallyrecognizedprivacyprotectioncertifications.HelpingcustomersmanagesecurityrisksthroughtechnologicalinnovationWecontinuetoresearch,explore,andimplementcutting-edgefundamentaltechnologiessuchascryptography,AItrustworthiness,confidentialcomputing,anddifferentialprivacy.Furthermore,weacceleratetheapplicationofsecuritytechnologysolutionstoproducts,andcontinuetointroducevulnerabilitymitigation,advancedthreatdetection,dataprotection,andothertechnologiesintoICTproducts,improvingsecurityandresilience.Take5Gbasestationsasanexample.Wedeployawiderangeoffunctions–includingsoftwareintegritychecksinthebootstate,runtimesoftwareintegritymeasurement,andone-clicksecurityconfigurationchecks–providingsecurityverification,hardening,anddetectioncapabilities.Wealsobuildintrinsicsecurityfor5Gtoenableamoreefficientintegratedsecurityprotectionsystem.Inthisway,wehavesignificantlyenhancedcyberresilience.Additionally,weintroducedapplicationbehaviordetectionandotherfunctionsunderdevice-cloudsynergytomobilephones,furtherenhancingprivacyprotectioncapabilities.WereleasedAIsituationalawarenesstechnology,whichimprovestheattackdetectionandauditcapabilitiesofAImodelsandprotectsAImodelassets.EnsuringprivacyandsecurityforHarmonyOSusersHarmonyOSisanext-generationoperatingsystemthatcanrunonawiderangeofsmartdevices.Itenablesdifferentsmartdevicestospeakthesamelanguage,facilitatingHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/37SecurityandTrustworthinessbetterconnectionandcollaboration,andbringingasimple,smooth,continuous,secure,andreliableinteractionexperienceinallscenarios.Attheoutset,weemphasizedthefundamentalimportanceofconsumerprivacyandsecurity,implementingasystemsecurityarchitectureandecosystemmanagementandcontrolframeworktoaddresstheseissues.WithHarmonyOS,wehavebuiltasecurityarchitecturefortheSuperDevice.Itimplementshierarchicaldevicesecuritymanagement,trusteddeviceconnections,distributedaccesscontrol,andasecuritycollaborationplatformtoprotectthesecurityofconsumers.WehavebuiltaHarmonyOSapplicationmanagementandcontrolframeworktoensurethatapplicationsareprotectedthroughoutthelifecycle,includingthedevelopment,commissioning,release,installation,andrunningphases.Inthisway,weprotectusersfrommaliciousapplicationsandensuretheirprivacyandsecurity.ContinuouslyenhancingsecureandtrustworthyserviceoperationsWecontinuetoinvestinthedevelopmentofIT-basedcapabilitiesfortrustworthyoperationsanddigitallyensuretransparentandtraceablenetworkoperations.Wesetupanoperationstrustworthinesslabtostrengtheninterconnectionwithglobalstandardsorganizationsandcutting-edgeresearchandwecontinuedtodevelopcapabilitiestoaddressemergingcybersecuritychallenges.OurdatasecuritymanagementsystemforcarrierservicesupportpassedtheexternalSystemandOrganizationControls2(SOC2)audit,demonstratingtheeffectivelifecyclemanagementofsuchdata.Atthesametime,wecontinuedwiththeNetworkSafetyDaycampaigntoincreasecybersecurityawarenessandriskcontrol,workingwithourcustomerstoenhancecyberresilience.SteadilyboostingawarenessandprofessionalcapabilitiesamongallemployeesWeencourageemployees'continuedparticipationinexternalprofessionalcybersecurityandprivacyprotectioncertificationprograms.Todate,morethan1,200employeeshaveobtainedindustry-recognizedcertifications,suchasCertifiedInformationSystemsSecurityProfessional(CISSP),CertifiedInformationPrivacyProfessional(CIPP)fromtheInternationalAssociationofPrivacyProfessionals(IAPP),andCertificateofCloudSecurityKnowledge(CCSK).WehaveestablishedaCyberSecurity&PrivacyProtectionKnowledgeCenterandreleasedmorethan200MassiveOpenOnlineCourses(MOOCs),facilitatingrapidsharingandtransferofknowledgewithintheorganization.Tocontinuouslyimprovecybersecurityandprivacyprotectionawarenessamongallemployees,weheldtheCyberSecurityAwarenessMonthcampaign,engagingabout150,000employeesonlineandofflinethroughdifferentactivities.Suchactivitiesincludedmessagesfromtop-levelmanagement,expertlectures,knowledgequizzes,aCapturetheFlagcompetition,acybersecuritytechnologyconference,andaverificationconference.Continuouslystrengtheningcybersecurityriskmanagementandcapability-buildingofthesupplychainWehaveestablishedacomprehensiveISO28000-compliantsupplychainsecuritymanagementsystemtoidentifyandcontrolsecurityrisksintheend-to-endprocessfromincomingmaterialstomanufacturinganddeliverytocustomers.Wehavedevelopedindustry-leadingmaterialssecurityandtrustworthinessspecifications,securitysourcingteststandards,andsuppliersecurityandtrustworthinessmaturitystandards.Suppliersmustpassthesecuritysystemcertificationandtestbeforetheyareadmitted.In2021,weconductedcybersecurityriskassessmentsonmorethan4,000suppliersworldwide,andrecorded,tracked,andrectifiedtheissuesidentified.Wesigneddataprocessingorprotectionagreementswithmorethan5,000suppliersandimplementedprivacyprotectionmanagementrequirementsforsupplierstoensurecompliance.Wealsooptimizedthesecuritybaselinesandverificationprocessesformanufacturingandsupplyavailability,andimplementedthemintheproductionanddeliveryprocessesofnewproducts.Giventhegreatimportanceweattachtosupplychainsecurityrequirementsaroundtheworld,wehavenowobtained35AuthorizedEconomicOperator(AEO)certificatesin28countriesandregionsacrossfivecontinents.Wecontinuetobuildathrivingsecurityecosystemtogetherwithourpartners,and25ofourlogisticsserviceprovidersaroundtheworldhaveobtainedTransportedAssetProtectionAssociation(TAPA)certificates.Wecontinuetooptimizeoursupplychaintrackingsystem,whichiscapableoftracingsoftwareandhardwarefromincomingmaterialstocustomerdeliverywithinhours,supportingrapidrectificationandriskmitigation.Increasinginvestmentinthird-partyindependentverificationWecontinueworkingwithindustry-recognizedcertificationbodiestotestourcybersecuritycapabilitiesagainstinternationalstandardsandbestpractices,providingcustomerswithinternationallyrecognizedsecurityassurance.In2021,weobtainedmorethan70cybersecuritycertificates.Forexample,our5GbasestationwasthefirsttopasstheNESAS/SCAS2.0evaluationintheindustry,HarmonyOSobtainedhigh-levelCommonCriteriacertification,theIntelligentAutomotiveSolutionBusinessUnit(IASBU)obtainedDEKRAISO/SAE21434certificationforcybersecurityengineeringofroadvehicles,andourdigitalpowerproductsobtainedtheIEC62443certificate.38/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHUAWEICLOUDWeLink:ASecureDigitalWorkplaceWiththeadvancesinInternettechnologies,thedecentralizedordistributedofficemodelisgainingtraction.Morepeopleareworkingremotelyorfromhome.Whileweenjoythebenefitsofmoreflexibleworkstylesenabledbytechnology,wemustalsobeawareofourincreasedexposuretosecuritythreats,suchascyberattacksanddataleaks,causedbydistributedandmobileoffices.Securityisthehighestpriorityfordigitalworkplaces.HUAWEICLOUDWeLinkcomeswithenhancedsoftwareandhardwaresecurityfeatures,allowingenterpriseuserstoprotecttheirdatafromendtoend.Thesolutionoffersthefollowingfeatures:•Securityfencingthatstrictlycontrolsdeviceaccess•Securitytunnelsthatprotectdatatransmissionandapplicationaccesstoensuresecurity•Protectedmessagingandfiletransmissionthatensuresdataflowsinanenterprisesecurely•Datashieldsthatensureenterprisedataflowswithindefinedboundaries•Screenshotsecuritythatpreventsdataleakage•CallencryptionthatensureseachcallisencryptedwithauniquekeyandcanonlybeaccessedbypartiestothecallWeLink'send-to-endsecurityfeaturesEmpoweredbythesecutting-edgesecuritytechniques,WeLinkfeaturesaccesscontrol,leakageprevention,encryption,anti-intrusion,andtraceability.WeLink'ssecuritycapabilitiesarerenownedintheindustry.Bytheendof2021,WeLinkhadreceivedmorethan50securitycertificationsinandoutsideChina,includingcloudservicesecuritysystemcertification,AndroidGreenAlliancepuritylevel(highest),ISO27001securitysystemcertifications,level-3informationsecurityevaluationbyChina'sMinistryofPublicSecurity,andServiceOrganizationControlsaudits(SOC1,SOC2,andSOC3).Buildingonitssecuritycapabilities,WeLinkhelpsenterprisesprovideadigitalworkplacethatissecure,efficient,andintelligent.SecurityauditSecurewatermarkingtechnologySecurecontainerDatasafesVPNDataleakagepreventionDeviceencryptionChip-levelencryptionusingChinesenationalcryptographicalgorithmsDeviceauthenticationExclusiveenterpriseaccountPrivacyprotectionEncryptionandanonymizationLinkencryptionDatahijackingpreventionDeployedacrossRegionsHigh-availabilityservicesIntrusionpreventionReal-timesensingandblockingTraceabilityAnti-intrusionEncryptionLeakagepreventionAccesscontrolHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/39SecurityandTrustworthinessOpennessandTransparencyCybersecurityandprivacyareacommonchallenge,onethatallstakeholders–includinggovernments,industryandstandardsorganizations,enterprises,technologysuppliers,andconsumers–haveasharedresponsibilitytoaddress.Wereiterateourcommitmenttocommunicatingandcollaboratingwithallstakeholdersinanopen,transparent,andresponsiblemanner,sothatwecanjointlyimprovecybersecurityandprivacycapabilitiesandaddressthechallengesthroughtechnologicalinnovation,knowledgesharing,standardsdevelopment,verification,andothermeasures.Westrivetocontinuallyimprovecybersecurityandpersonalprivacy,enablingeveryonetoenjoyallofthebenefitsbroughtbytechnologicaladvances.In2021,wemadethefollowingkeyachievementsinexternalcooperation:Inthemobilecommunicationsfield,wesubmittedmorethan400cybersecurityproposalsto3GPPandGSMA,maintainingourlongstandingindustry-leadingposition.Wealsosubmittedproposalsonremoteattestationsecurityarchitecture,interactionmodels,YANGdatamodels,andcampusIoTdeviceaccesssecuritytointernationalstandardsorganizations,includingETSI,IETF,ITU-T,andCCS.Thesearejustafewexamplesofourmanycontinuouscontributionstothedevelopmentofindustrysecuritystandards.WebecameamemberoftheOrganisationoftheIslamicCooperation-ComputerEmergencyResponseTeam(OIC-CERT),theworld'sthirdlargestcomputeremergencyresponseorganization,andactivelyparticipatedintheOIC-CERT5GSecurityWorkingGrouptodevelopa5Gcybersecurityframeworkforriskassessmentandmanagement,aimingtohelpmemberstatesimprovetheir5Gcybersecuritymanagementcapabilities.InGermany,HuaweisupportedtheFederalOfficeforInformationSecurity(BSI)inthereleaseoftheAICloudServiceComplianceCriteriaCatalogue(AIC4)byprovidingrelevantsuggestionsbasedonausecasepilotproject.AIC4istheindustry'sfirstsecuritystandardforAIcloudservices.InDecember2021,HuaweiCloudOCRserviceofficiallypassedtheAIC4attestationconductedbyanindependentagency.InThailand,weworkedwiththeNationalCyberSecurityAgency(NCSA)toorganizetheparticipationofmorethan600professionalsintheCyberTopTalentcompetition,helpingidentifyandselectlocalcybersecuritytalent.AspartofthepartnershipwiththeNCSA,wewillassisttheminbuildingadedicatede-labtoprovidein-depthtrainingoncybersecuritytechnologiesandstandardsforlocalorganizationsandtalent.IntheUAE,wedeepenedourcooperationwiththeCyberSecurityCouncil(CSC),andplayedanactiveroleintheconstructionofthelocalcybersecurityecosystemandtheimprovementofregionalcybersecurityawarenessandcapabilities.Wewonthe"CybersecurityCompanyoftheYear"and"CybersecurityCEOoftheYear"awards.InIndonesia,werenewedtheMemorandumofUnderstanding(MoU)oncybersecuritycooperationwiththeNationalCyberandCryptoAgency(BSSN),reaffirmingourcommitmenttosharingcybersecurityknowledgeandsupportingIndonesia'splantodevelopcybersecurityanddigitaltransformationprofessionals.InMalaysia,weworkedwiththenationalcybersecurityspecialistagencyCyberSecurityMalaysia(CSM)andmobiletelecommunicationsproviderCelcomtobuildaCyberSecurityTestLab(My5G),helpingMalaysiaimproveitscybersecuritycapabilitiesandsettingthestagefor5Gdeployment.AttheCyberSecurityMalaysiaAwards,Conference&Exhibition(CSM-ACE)inDecember,theMinistryofCommunicationsandMultimediaMalaysiareleasedMy5G,andHuaweiwasawarded"CyberSecurityInnovationoftheYear"byCSM.InSingapore,wejoinedtheSGCyberSafePartnershipProgrammelaunchedbytheCyberSecurityAgency(CSA)asan"Advocate"partner.WewilldeepenourcooperationwiththeCSAinproductandservicedevelopmentandcommunityoutreachactivitiestofurtherboostthecybersecurityawarenessoflocalbusinessesandthepublicandpromotecybersecuritybestpracticesandgoodcybersecurityhygiene.ChinaMobileandHuaweisetupajointinnovationcenteron5GsecurityinZhejiangProvince.Toaddressthetypicalcybersecurityrequirementsofindustries,suchasmanufacturingandpowergrids,thecenterincubatesdifferentsecuritysolutions,includingnetworkelementsecurityriskdetection,multi-accesscontroloverterminals,slicesecurityisolation,andmobileedgecomputingsecurityservices.Inthisway,thecenteraimstocontinuouslyenhancethesecuritycapabilitiesof5Gnetworks,safeguardingthedigitaltransformationofindustries.Oneofthecenter'skeyinnovationachievements–5Gservice-basedsecuritycapabilitysafeguardstosupportdigitaltransformationinmanufacturing–wonfirstprizeintheapplicationsecurityfinalofChina's4thBlossomCup5GApplicationContest.ThiscenterwasselectedbytheMinistryofIndustryandInformationTechnologyasthe2021innovationdemonstrationcenterfor5Gapplicationsecurity.HuaweiUAEChiefSecurityOfficerreportingtothechairmanoftheCSCatUAECyberSecurityWeek40/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuawei'sLargestGlobalCyberSecurityandPrivacyProtectionTransparencyCenterinDongguan,ChinaInJune2021,HuaweiopeneditslargestglobalCyberSecurityandPrivacyProtectionTransparencyCenterinDongguan,China,providingacommunicationandcollaborationplatformforglobalstakeholders.TheopeningceremonywasaddressedbyrepresentativesfromGSMA,SUSE,theBritishStandardsInstitution,andregulatorsfromtheUAEandIndonesia.Alongwiththeopeningofthenewcenter,HuaweireleasedtheHuaweiProductSecurityBaseline.Thismarkedthefirsttimethecompanymadeitsproductsecuritybaselineframeworkandmanagementpracticesavailabletotheentireindustry.Theseactionsarepartofthecompany'sbroadereffortstoengagewithcustomers,suppliers,standardsorganizations,andotherstakeholderstojointlystrengthencybersecurityacrosstheindustry.Acommonunderstandingsharedbythespeakersattheopeningeventisthatindustriesworldwidearetakingcybersecuritymoreseriously,withmorelaws,regulations,andtechnicalstandardsbeingintroduced.However,theindustrystilllacksacoordinatedapproach,especiallywhenitcomestocybersecuritygovernance,technicalcapabilities,andcollaboration.Huawei'slargestglobalCyberSecurityandPrivacyProtectionTransparencyCenteropenedinDongguan,China,providingacommunicationandcollaborationplatformforglobalstakeholdersToaddresstheseissues,HuaweiopenedanewglobalCyberSecurityandPrivacyProtectionTransparencyCenterinDongguan.BasedonHuawei'sexpertiseingovernanceandtechnologies,thecenterisdesignedtodemonstratesolutionsandshareexperience,facilitatecommunicationandjointinnovation,andsupportsecuritytestingandverification.Itwillbeopentoglobalstakeholders,includingHuaweicustomersandindependentthird-partytestingorganizations.Huawei'saimwiththiscenteristostrengthencommunicationandcollaborationwithstakeholderstopromotecommonsecuritystandards,technologicalinnovation,securitygovernance,testing,andverification,andmore.Welookforwardtocollaboratingwithallstakeholderstobuildcybersecurityandprivacyprotectioncapabilities,sharevalue,andembracebothchallengesandopportunitiestofosterabetterlifeforallinthefuturedigitalworld.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/41SecurityandTrustworthinessSupportingStableCommunicationsICTinfrastructureprovidesinformationandcommunicationsnetworkservices,soitisimperativethatstableoperationsaremaintainedatalltimes.Asanetworkequipmentandsolutionprovider,Huaweimustsupportthestableoperationsofcustomernetworksandservicesduringalltypesofemergencies,includingwarsandepidemics,andnaturaldisasterslikeearthquakes,floods,andtsunamis.ThisisoneofHuawei'sprimaryresponsibilities.In2021,theworldwasstillaffectedbytheCOVID-19pandemic,whichposedahugechallengetonetworkstability.Morethan5,000Huaweiengineersworkedsidebysidewithourcustomers,providingtechnicalsupportservices24/7.Together,wesupportedthestablecommunicationsofmorethanthreebillionpeopleandprovidedtimelyresponsestomorethan180majoreventsandemergenciesworldwide.EarthquakeReliefinChina'sYunnanandQinghaiProvincesOnthenightofMay21,2021,a6.4-magnitudeearthquakehitYangbiYiAutonomousCountyinChina'sYunnanProvince,followedbyintensiveaftershocksaffecting12countiesacrosstheDaliPrefecture.Thenextmorning,a7.4-magnitudeearthquakestruckMaduoCountyintheGologTibetanAutonomousPrefectureinQinghaiProvince,followedby1,872aftershocksovertwodays.Intheimmediateaftermathofthesetwodisasters,Huaweiinitiatedanemergencyassuranceplan.TheYunnanandQinghairepresentativeofficesquicklyestablishedanetworkassuranceteamwiththesupportEarthquakeemergencysupportinGolog,QinghaiofthenetworkassuranceteamofHuawei'sChinaRegion.Theprojectteamwasimmediatelydispatchedtotheaffectedareas,wheretheyworkedwithlocalcarriersandgovernmentworkersonemergencyrepairstorestorecommunicationsasfastaspossibleandsupportstablenetworkoperations.InYangbi,theHuaweiteamworkedalongsidecustomerengineersfor28hoursandrestoredall32sitesaffectedbytheearthquake.InGolog,11ChinaTelecombasestationsand19ChinaUnicomonesweredisruptedbytheearthquake.Huaweiandthecustomersrestoredallofthemwithinfivehoursaftertheearthquake,providingstrongcommunicationssupportforlocalemergencyreliefefforts.42/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportEmergencySupportDuringaHeavyRainstorminHenan,ChinaFrom8a.m.onJuly20to6a.m.onJuly21,2021,aheavyrainstormstruckthecentralandnorthernpartsoftheHenanProvince,China,settingnewrecordsforrainfallinasingleday.TherainstormcausedseveredamagetothecityofZhengzhouandsurroundingareas.Therewerelarge-scaledisruptionstopowersupplies,networkequipmentroomswereflooded,andopticalcablesandinfrastructurewereseverelydamaged.Asaresult,alargenumberofmobilenetworkbasestationswerenolongerfunctioning.Communicationnetworksinaffectedareasweredisrupted,whichmadeitimpossibletomakephonecallsoraccesstheInternet.Communicationdisruptionalsomadefloodcontrolcommandmoredifficult.Restoringcommunicationsserviceswasakeypriority.OurnetworkassuranceteamsintheChinaRegiongatheredimmediately,initiatedouremergencyassuranceplan,andbegantorepairnetworksandprovideonsitesupport.Workingwithlocalcarriersaroundtheclockfor16days,werepairedtensofthousandsofmobilesitesandcoreequipmentrooms,andquicklyrestoredHuaweiengineerstransportingemergencyrepairequipmentintheraincommunicationsservicesinallaffectedareas.Duringthisprocess,HuaweiwasawareofmanypossibleEHSrisks,includingmanholecoversonsomeroadsectionsburstingopenorcollapsing,electricshocksduringemergencyrepairs,waterloggedbuildingscollapsing,andthetransmissionofinfectiousdiseases.WesetupanEHSteam,specifiedkeysafetyprocesses,andprovidedtrainingtoensurethehealthandsafetyofournetworkassuranceteams.Duringthedisasterreliefprocess,Huawei'sprofessionalemergencyresponseplanandefficientorganization-widecollaborationhelpedminimizelossesandallowedpeopleinaffectedareastoquicklygetbackontrack.Oureffortstofulfilloursocialresponsibilitywonpraisefromlocalcommunities.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/43SecurityandTrustworthinessNetworkRecoveryandDisasterReliefFollowingaFloodinOmanOnOctober3,2021,TropicalCycloneShaheenslammedintoOman,followedbyheavyrainfall,flashfloods,andwidespreadwaterlogging.Sometelecomequipmentwasseverelydamaged,causingsignificantdifficultiesforlocalresidents.Onthemorningofthesameday,HuaweiOmansetupajointworkgroupwiththecustomer.Thenetworkassuranceteamalsosetouttorepairthetelecominfrastructureintheaffectedareas.About70%oflocalcommunicationsserviceswererestoredwithin12hoursand90%within48hours.OnOctober5,thenetworkassuranceteampurchasedsuppliesfordisasterHuaweidonatingsuppliestoaffectedlocalresidentsrelieffromsupermarketsandworkedwiththelocalgovernmentovernighttodeliversuppliestotherescuestationsinfourseverelyaffectedareas,helpinglocalpeoplethroughthedifficulttime.Huawei'squickresponseandtimelysupportfordisasterreliefwereappreciatedbylocalcustomers,thegovernment,andthecommunity.Thisispartofourcommitmenttobecominganactive,productivememberoflocalcommunities.44/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportEmergencyResponsetoTyphoonRaiinthePhilippinesOntheafternoonofDecember16,2021,supertyphoonRaislammedintotheSiargaoIslandinsouthernPhilippines.Sustainedwindsofupto195km/hhittheareauntiltheearlyhoursofDecember19.ThetyphoonsweptacrosstheVisayasregion,northernandnortheasternislandsinMindanao,andSLZPalawan.Morethan332,000peoplewereevacuatedfromthehardest-hitvillages.Transportationandcommunicationsonsomeislandsweredisrupted,aswerewaterandpowersupplies.Basicsuppliesandcommunicationsontheseislandswereseverelyimpacted.Afterthedisasterstruck,HuaweiimmediatelysetupHuaweiprovidingtimelysupporttorestoreacommunicationstowerdamagedbythetyphoonanemergencyresponseworkgroupanddispatched30teamstoVisayasand23toMindanaoforemergencyrepairs,withmorethan50engineersprovidingremotesupport.Huaweiteamsrestoredcommunicationsinalltheaffectedislands.Thisinvolvedmorethan140backbonemicrowavehopsandover110sites.Huawei'squickresponseandstrongsupportwerecommendedbythecustomer,demonstratingitscommitmenttofulfillingitsresponsibilitiestolocalcommunities.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/45SecurityandTrustworthinessCommunicationsSupportintheMalaysianFloodsOnDecember19,2021,Malaysiawashitbyoneoftheworstfloodstohittheregionin50years.Heavyrainwroughthavocacrosssevenstates,includingSelangor,Terengganu,andPahang.OneoftheworsthitcitieswasKlanginSelangor,wherewaterlogginganddisruptionoftransportation,electricityandcommunicationsleftmanypeopledisplaced.Uponrequestfordisasterrelief,Huawei'sMalaysiaRepOfficeimmediatelyactivatedanemergencyassuranceplanandsetupanassuranceteam.Themaintenanceteamofeachaccountdepartmentassistedcarriercustomersinlocatingandmappingaffectedsiteswithin30minutes.Thesparepartsteamimmediatelymovedboardsandsparepartstobeusedintherepairandmaintenancetohighplacesandensuredtheirintegrity.Thiswaskeytothesubsequentquickrepairs.TheHuaweimaintenanceteamrestoringadamagednetworkToensurethefastrecoveryofservicesatkeysites,maintenanceandsupplychainpersonneloftherepresentativeofficewadedintothewarehousetogetboards,taking44ofthemtothesites.Ourteamimmediatelypurchasedgeneratorsforcustomerstoputupemergencysites.The15-membertechnicalteamoftherepresentativeofficewasdividedintosevengroups,whichwenttothesitesinshifts.Theyrestoredservicesatallkeysitesinfourdays,givingpeopleinaffectedareasaccesstocriticalcommunicationsservicesandfacilitatingthebroaderdisasterreliefefforts.Huaweirosetotheoccasionatcriticaljuncturestosupportstablecommunicationsforthelocalpeople,winningacclaimfromcustomers.46/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportBusinessContinuityIntoday'shighlyglobalizedandhighlyspecializedworld,Huawei'soperationsrelyheavilyonthirdparties.Thismakesbusinesscontinuitymanagement(BCM)critical.Throughyearsofsustainedinvestment,HuaweihasestablishedaBCMsystemfordomainssuchasR&D,procurement,manufacturing,logistics,andglobaltechnicalservices.Thissystemcoversourend-to-endprocesses,fromsupplierstoHuaweiandontoourcustomers.Aspartofthissystem,wehavedevelopedandestablishedeffectivemeasurestodriveBCMandemergencyresponseupskillingacrossorganizations,allowingthemtomanagerisksthatariseduringdailywork.Wehavebuiltupmanagementorganizations,processes,andITplatforms;embeddedkeyBCMelementsintoourproductdesign;preparedbusinesscontinuityplansandemergencymanagementplans;andorganizedBCMtraininganddrillsforemployees.IncidentManagementPlan(IMP)Departments&responsibilities,operationalmechanisms,execution&assessmentsSupplierBCMBCMPolicyBusinessImpactAnalysisTrainingRiskAssessmentStrategySelectionExercising&TestingIMP/BCPMaintenance&ImprovementBusinessContinuityPlan(BCP)R&DFinanceProcurementITManufacturingHRSupplychainAdminServicedelivery/NetworksupportCustomerBCMBCMprocessRegionaloffices,repofficesandex-ChinadepartmentsConflictsEarthquakesStorms&typhoonsEpidemicsFiresStrikesTrafficaccidentsEconomy/TradePolitics/PoliciesHuaweiBusinessContinuityManagementSystemHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/47SecurityandTrustworthinessKeyInitiativesforBCMinR&DandProcurement•Supplychaindiversity:Huaweistickstoitsstrategyofmaintainingaglobalized,diversifiedsupplychain.Whendesigningaproduct,westrivetosourcerawmaterials,boards,andproductsfrommorethanonesupplier,activelyexpandthepoolofsupplyresources,andprioritizethesupplydiversityofrawmaterials.Weprefersuppliersthathavemultiplemanufacturingsitesandavoidrelyingonanysinglesupplierorregiontosafeguardsupplyavailability.•Scenario-specificstockpiles:Duringmassproduction,wepreparesafetystockofhigh-riskrawmaterials,semi-finishedproducts,andfinishedproducts.Thisallowsustobetteraddresscustomerrequirementsanduncertaintiesfromvarioussources,includingsupplyavailability,tradeconflicts,andforcemajeureeventsliketheCOVID-19pandemic.•Supplyanddemandvisibility:Huaweiworkscloselywithsupplierstoensurethatdemandforecasts,purchaseorders,andsupplierinventoryareallvisiblethroughITsystems.Thisensuresthatwereceivetimelydemandinformationandhaveadequatesupply.KeyInitiativesforBCMinManufacturingandSparePartsSupply•Manufacturingandsupplyresourcebackups:Huaweiconsidersin-housemanufacturingandoutsourcingcapabilitiestobeofequalimportance.Wehaveestablishedlong-termstrategicpartnershipswithmultipleelectronicsmanufacturingservice(EMS)suppliers.BoardmanufacturingandsupplycapabilitiesaresharedbetweenHuaweiandEMSsuppliersandbetweenmultipleEMSsupplierstoensurewealwayshaveabackup.WehavealsoestablishedsupplycentersinShenzhen,Europe,LatinAmerica,andDubai,whichserveasintegratedequipmentbackupsforeachother.•Sparepartreservestosupportfull-lifecycleoperations:Huaweireservessparepartsaccordingtomarketdemandandhistoricalusagebeforeaproductreachesitsendoflife(EOL).AfteraproductreachesitsEOL,wereserveenoughsparepartstocoverthefulllifecycleofallremainingproducts.Thispreventsanyimpactontheoperationalcontinuityoflivecustomernetworks.Overthepastdecade,wehaveweatheredmanycrises,fromnatural,political,economic,andtrade-relatedconflictstoarmedconflictsinsomeregions.DespitethelastingeffectsofCOVID-19,Huaweicontinuedtoensuresupplycontinuityandtimelydeliverytoourcustomers.ThisshowsthatHuawei'sBCMsystem–aspartofouroverallmanagementsystem–isfunctioningasintended.Huaweiisaglobalcompanythatworksinthenetworkinfrastructure,ITinfrastructure,cloudservices,andsmartdevicedomains.Wehaveworkedwithover10,000suppliersandpartners,andfosteredsound,long-termpartnershipswiththem.Asastaunchadvocateofglobalization,wewillcontinuetopursuesupplychaindiversity.Weaimtodevelopsustainableandstablesupplycapabilitiestopreventdependencyonanysinglesupplier,country,orregion.Basedontheprinciplesofcollaborationforsharedsuccessandmutualdevelopment,Huaweiisconfidentinitsabilitytoworkwithpartnersaroundtheworldtoforgeasecure,reliable,competitive,andhealthyvaluechain.Wewillcontinuetodeliverqualityproducts,solutions,andservicestoourcustomersworldwide.48/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportEnvironmentalProtection4ReducingCarbonEmissionsPromotingRenewableEnergyContributingtoaCircularEconomyEnvironmentalCertificationsHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/49EnvironmentalProtectionGiventhepressingissueofclimatechange,nationsareincreasinglylookingtowardsgreendevelopment.Itisnowmoreimportantthanevertoshifttogreen,low-carbonworkandlifestylesthatenablesustainabledevelopment.Manyorganizations,companies,families,andindividualsaroundtheworldaremovingtowardsgreendevelopment,andICTsolutions,like5G,cloud,andAI,areplayingacriticalroleinthisprocess.50/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuawei'sActionPlaninEnvironmentalProtectionHuaweibelievesthattechnologyplaysakeyroleinaddressingenvironmentalchallengesandprotectingnature,andthatdigitalizationanddecarbonizationarethetwodriversofgreendevelopment.SinceHuaweiproposeditsgreenpledgeof"TechforaBetterPlanet"in2019,wehavebeenactivelytacklingclimateandenvironmentalchallenges.WefocusonusingICTsolutionstoreducecarbonemissions,promoterenewableenergy,andcontributetoacirculareconomy,soastoprotectourplanet.Weusemanagerialandtechnicalmeasurestoreducethecarbonfootprintofourproducts.Wealsoengagewithourupstreamanddownstreampartnerstoreducetheirenvironmentalimpactsandworktogethertobuildagreenersupplychain.OurinnovativeICTsolutionscanhelpotherindustriesreducetheircarbonemissions,andwetakeeveryresponsiblestepthatwecantocutcarbonemissions.WeusetechnologieslikephotovoltaicsandAItoimprovetheutilizationofrenewableenergy,drivethetransitiontorenewableenergy,andprovidegreenpowerfortheintelligentworld.Wearemovingtoalessresource-intensiveandmoresustainablemodeofdevelopment.Ouractionsincludeselectingmoreeco-friendlymaterials,reducingtheuseofrawmaterialsandsingle-useplastics,makingproductsmoredurableandeasiertodisassemble,andimprovingourproductrecyclingprogram.ReducingcarbonemissionsPromotingrenewableenergyContributingtoacirculareconomyWhileactivelypursuinggreendevelopmentduringourownoperations,Huaweihasalsoenvisionedgreendevelopmenttrendsforkeyindustriesby2030.Throughtheseefforts,wehopetoworkwithourindustrypartnerstocreategreaterbusinessvalueforourcustomers,continuouslyuseourinnovativedigitaltechnologiestohelpotherindustriesconserveenergyandreduceemissions,andultimately,contributetoglobalsustainabledevelopment.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/51EnvironmentalProtectionReducingCarbonEmissionsIn2021,Huaweiupdateditsenvironmentalprotectionrelatedpolicies,aimingtoreducecarbonemissionsacrosstheentirevaluechain.Belowarekeypointsofthepolicies.Basedonthesepolicies,Huaweicontinuestoinnovateanddelivermoreenergy-efficientproducts,rolloutenergy-savingprojectsonitscampuses,useasmuchcleanandrenewableenergyaspossible,andencourageandtrainsupplierstosetenergysavingandemissionsreductiontargetstobuildagreenvaluechain.Huaweihasintegratedgreendevelopmentintoproductplanning,design,R&D,manufacturing,delivery,andservices.Weusetechnologicalinnovationtogetmorevaluefromlessresources;providecustomerswithleading,eco-friendlyproductsandsolutions;andenableenergyconservationandemissionsreductionacrossotherindustries.Huaweiiscommittedtogreenmanufacturing.Weaimtominimizeenvironmentalimpactandextractthemaximumvaluefromresourceswhileensuringthatproductsdeliverthedesiredfunctionswithhighqualityandatlowcost.Huaweiisalsobuildinggreenandeco-friendlycampuses.Theactionswetakeincludeusingasmuchcleanenergyaspossible,minimizingresourceconsumption,reducingthewasteweproduce,andefficientlyusingandrecyclingresourcesasmuchastechnologyandbudgetsallow.Inlinewithcustomerrequirementsandindustrybestpractices,Huaweihasincorporatedenvironmentalrequirementsintooursupplychainmanagementprocesses.Environmentalfactorsareconsideredduringsourcingofmaterials,manufacturing,transportation,anddeliverytoensurethatsupplierscomplywithallapplicableenvironmentallawsandregulations.Wearealsoofferingappropriateincentivestoencouragesupplierstomakeongoingimprovements.Ourultimategoalistobuildacompetitive,greensupplychain.GreenproductsGreenoperationsGreensupplychainGreenProducts:EnablingIndustrialEnergySavingsandEmissionsReductionsWetakeactionattheverysourcetoreducethecarbonfootprintsofourproductsthroughouttheirlifecyclesandhelpcustomerssaveenergyandcutemissions.WealsouseourinnovativeICTsolutionstoenabledigitalizationanddecarbonizationinotherindustriesandscenarioslikeenergy,transport,andcampuses.Throughourongoingefforts,theaverageenergyefficiencyofourmainproductsin2021was1.9timeshigherthanwehadin2019.»GreenandLow-carbonDataCenterConstructionandOperationsDataisakeyassetwithinourboomingdigitaleconomy.Datacentersareresponsibleforstoring,computing,andswitchingdata.Theyareattheheartofthedigitaleconomyandwillplayakeyroleinreducingpowerusageandincreasingenergyefficiency.Huawei'sinnovativetechnologies,suchasclustercomputing,fullliquidcooling,all-flashstorage,andintelligentmanagement,canenablegreenandlow-carbondatacenterconstructionandoperations.52/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportPrefabricatedModularDesignandFullLiquidCoolingtoReducetheCarbonEmissionsofAIComputingCentersThroughoutTheirLifecyclesAsweenteranintelligentworld,demandforcomputingpowerwillrise,whichinturnwillincreasedemandfordatacenterpowerdensity.Ittakesaboutoneortwoyearstobuildaconventionaldatacenter,meaningnewdatacentersoftenstruggletokeepupwithmodernAIinfrastructureandever-growingcustomerdemand.Inaddition,thecurrentapproachtoconstructingandoperatingdatacentersisresourceintensiveandextremelyinefficient.Toovercomethesechallenges,Huawei'sinnovativeAIcomputingcentersolutionusesasteelprefabricateddesign,whichmarksabigsteptowardsgreenandlow-carbondatacenterconstructionandoperations.•Thissolutionusesmuchlessconcretethanaconventionalconcretebuilding,offsettingcarbonemissionsintheconstructionphasebymorethan90%1.1CalculatedaccordingtoNationalStandardforBuildingCarbonEmissionCalculationGB/T51366-20192ByInternationalEnergyAgencyemissionfactors•Thesolution'sAtlas900AIclusterusesfullliquidcooling,bringingthePUEofthedatacenterdownto1.1,muchlowerthanwhenair-cooledclustersareused.•Thiscomputingcenterdelivers1.6timesasmuchAIcomputingpowerpernodeasindustrycounterparts.Itshighlevelofintegrationmeanslessequipmentisrequired,reducingthespaceneededinequipmentroomsbynearly40%.Thisalsomeansthatfewersupportfacilitiesareneededinthecomputingcenter,equalingasmallerfootprint.•Thenetworkatthecomputingcenterusesintelligentlosslesstechnologythatfeatureszeropacketlosses,whichincreasescomputingefficiencyandcutspowerconsumptionperunitofcomputingpowerby47%.TheWuhanAIComputingCenterusesHuawei'sAIcomputingcentersolutiontooffsetcarbonemissionsbymorethan90%duringconstructionandsavesnearly700,000kWhofelectricityper100PFLOPSduringoperations,equaltooffsettingcarbonemissionsby333tons2HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/53EnvironmentalProtectionAll-flashStorageforGreenandEnergy-efficientDataCentersStoragesystemsarecriticaltodatacenters,buttheamountofelectricitytheyuseaccountsfor16%to30%ofthetotalamountusedbydatacenters.Basedonourstudyofstoragepower-savingtechnologies,wehavefoundthat50%ofthepowerconsumedbyatraditionalharddiskdrive(HDD)comesfromtheharddiskunit,whichconsumes200kWhofelectricityperPBeachday.Atypicalbigdatacenterhasacapacityof100PB,meaningitsannualpowerconsumptioncanreach7.3millionkWh.Therefore,webelievethatadvancedmediaareessentialtoreducepowerusageinstoragesystems.Flashstoragedrivescanreadandwriteover100timesfasterthanHDDs,andhaveacapacity5–10timeslargerthanHDDs.Withitsstrongdatareductioncapabilities,aflashstoragedrivecanprovide17timesthecapacityofanHDDusingthesameamountofenergy.ThatmeansifanHDDisreplacedwithaflashstoragedrive,981kWhlesselectricitywillbeusedeveryyear,equivalenttooffsettingcarbonemissionsby466kg.Huawei'sall-flashdatacentersolutionusesupgradedarchitecture,media,algorithms,andnetworksforflashstorage.Itdeliversindustry-leadingperformanceandadvanceddatareductiontechnologiesanddecouplesstoragefromcomputing,greatlyreducingserverresourcewaste.Thesolutionincreasesdatacenterstorageperformancefivefold,reducesthenumberofstorageracksrequiredby84%,andcutspowerusageby78%.Huawei'sall-flashdatacentersolutionhasbeendeployedinmultipleindustriesincludingbankingandhealthcare,helpingourcustomersbuildgreenandlow-carbondatacenters.ByInternationalEnergyAgencyemissionfactors54/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport»HigherEnergyEfficiencyforGreenandIntelligentConnectivityConnectivityisoneofHuawei'scorebusinesses.Huaweiofferssolutionsforeverypartofnetworkconstruction,includingall-opticalconnectivity,simplified5Gsites,andsitepowerfacilities.Theseinnovativetechnologieshelpmakenetworksmoreenergyefficientanddrivetheshifttogreenandintelligentconnectivity.Ourhomesarerapidlybecomingmulti-functionalcentersforlife.Theyareplaceswherewelive,studyandwork,andcanevenserveasmoderncinemas.Homebroadbandnetworksarekeytoachievingthis.Mosthomeusersnowusetraditionalopticalmodems,networkcables,andWi-Firoutersfornetworking.However,thismethodisoftenplaguedbypoornetworkperformanceanduserexperience,andhighpowerconsumption.Toaddressthesechallenges,HuaweihasreleaseditsFTTRforHomesolutionbasedonfibernetworking.ThesolutionreplacestraditionalnetworkcableswithopticalfiberforWi-FinetworkingbydeployingoneprimaryFTTRgatewayandseveralsecondaryFTTRgateways.Ineachroom,aHuaweiOptiXstarhomegatewayconnectsseparatelytotheInternettoprovideWi-Fi6wirelessaccess.Thispreventssignalattenuationcausedbythickwallsandeliminatesblindspotsinhomes.Thesolutionalsoslashespowerconsumptionandcontributestogreenall-opticalnetworks.Thesolutiondeliversthefollowingbenefits:•Itusesopticalfiberfornetworking,whichreducestheamountofspaceneededforcablingbyabout15%.Opticalfiberisalsocorrosion-resistant,hasaserviceAHuaweiOptiXstarhomegatewayusedintheFTTRforHomesolutionFTTRforHomeSolution:BringingGreenConnectivitytoEveryHomelifeofover30years,andcantransmitsignalsevenwithoutapowersupply.•Opticalfiberhaslargecapacity,eliminatingtheneedtoreplacecableswhennetworkbandwidthisupgraded.Thissignificantlyreducestheuseofmineralresourcescomparedwithcoppercables.•TheprimarygatewayusedintheFTTRsolutionservesasbothabroadbandaccessgatewayandaWi-Firouter.Thistwo-in-onedesigncancutpowerusageby50%.Thepanel-shapedsecondarygatewaysarecompactandeasytoinstallandtheyuse30%lesspowerthanconventionalrouters,withasinglegatewayusingjust1kWhofelectricityeveryfivedays.Huawei'sFTTRforHomesolutionhashelped83provincial-levelcarriersinChinadeliverbetteruserexperienceandenabledmorethan300,000userstobuildgreenerhomenetworks.In2021alone,thesolutionhelpedreduceelectricityusagebyover45.6millionkWh,equivalenttooffsettingcarbonemissionsby21,660tons.ByInternationalEnergyAgencyemissionfactorsHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/55EnvironmentalProtectionIn2030,theamountofdatausedperpersonpermonthwillincreaseto600GB.Inthelongterm,multi-bandandmulti-modemobilenetworkswillhavetoworktogethertomeetusers'increasingnetworkdemands.Atthesametime,carriersareshiftingtogreenandlow-carbonnetworkconstruction.Greatnumbersofwirelesssitesarescatteredacrosswideareas,andmakingthesesitesgreenerisatoppriorityforcarrierswhentheyareworkingtoreducetheircarbonfootprints.Huaweihasdevelopedmulti-antenna,ultra-wideband,andhigh-efficiencyantennas,helpingcarriersbuildgreen5Gnetworksthatdeliverbothhighperformanceandhighenergyefficiency.Huawei'ssolutionsdeliverthefollowingbenefits:•Multi-antennaAAUsandMetaAAUs,whichuseanewarchitecturethatdoublesthenumberofantennaarraysandreducespowerconsumptionby30%.•Ultra-widebandRRUswitheachmodulesupportinguptothreefrequencybandswhileusing28%lesspower.Green5GforaLow-CarbonFuture•High-efficiencyantennas,whichuseHuawei'ssignaldirectinjectionfeeding(SDIF)technologythatintegratesinternalcomponentstoreduceenergyusage.Thiscanhelpcarriersreducethetransmitpowerofabasestationby20%,whichtranslatesintolowerpowerconsumption.ChinaMobileTianjin,forexample,hasbeenplaguedbytheincreasingcomplexityofitssitesastheyhaveevolvedfrom2Gto3Gand4G.WithHuawei'ssimplified5Gsites,theyhavemanagedtoreplaceequipmentroomswithcabinets,increasingsiteenergyefficiencyto90%.Insomecases,cabinetswereevenreplacedwithpoles,increasingsiteenergyefficiencyupto97%.Thesemeasureshavehelpedthecarrierdeploymore5Gsiteswithoutincreasingenergyconsumption.Afterupgrading3,000ofits5Gsitestogreenones,thecarriersawitsannualcarbonemissionsdropby35,000tons.»ICTEnablesGreenDevelopmentofIndustriesHuaweiisdelvingdeepintoindustriesliketransport,energy,andbuildingstobetterunderstandtheirrequirementsforcarbonreductionandenergy-saving.Indoingso,wehaveexploredhowtouseICTsolutionslikeAI,IoT,bigdata,cloud,and5Gtoempowertheseindustriestogogreenandlow-carbon.AccordingtotheInternationalEnergyAgency(IEA),theshareofemissionsinthetransportsectorwillincreaseto27%oftheglobalemissionsby2030.Fullelectrificationofthetransportsectorwillbeanimportantstepinreducingcarbonemissions.Theelectricvehicleindustryisdevelopingrapidly,butcharging,range,andsafetyremainthethreemajorconcernsthatputconsumersofffromgoingelectric.Huawei'sfull-stackpowerdomainsolutionDriveONEimproveschargingandrangeexperiences,helpingpromotebroaderadoptionofnewenergyvehiclesandacceleratingtheelectrificationprocess.BringingDigitaltoNewEnergyVehiclesforFasterElectrification•Forcharging,Huawei'sfull-stackhigh-voltageplatformsolutionforpowerdomainsdelivers200kilometersworthofpowerwithjusta10-minutecharge.•Forrange,thesolution'sintelligentoilcoolingandAI-drivenefficiencyoptimizationtechnologiesincreaseePowertrainefficiencyby3%.Thesolutionusesmultipleconvergedalgorithmstoimprovetheavailablecapacityofbatteries.Thesefeaturescombinedboostrangeby8.5%withoutadditionalbatteries.•Forbatterysafety,thesolutionusesAItoprovideearlywarningsaboutbatterythermalrunaway24hoursbeforeitoccurs,makingvehiclessafer.56/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportEnergyconsumptionfromcampusbuildingsmainlyoccursfromelevatorsaswellaslighting,airconditioning,andfiremonitoringsystems.Thesesystemsneedtobeeffectivelycontrolledtoenableintelligentenergy-savingwithoutunderminingtheenvironment.Huawei'sCloudCampus3.0solutionconnectstheseenergy-intensivesystemstoanetworkthroughanIoTedgegateway.ThesolutionworkswithHuawei'sAI-empoweredintelligentcampusmanagementplatformtovisualizecampusmanagement.Thishashelpedusersbuildsmart,secure,andenergy-efficientcampuses.TheAI-empoweredintelligentcampusmanagementplatformdisplaysthepastandpresentpowerconsumptionofeachbuildingandeachpieceofequipmentinrealtime,withsensorsshowingthereal-timetemperatureofeachroom.Aheatmapofwirelessaccesspoints(APs)showsthedistributionofstudentsandstaffacrosscampuses.Huawei'sCloudCampus3.0solutionhelpsXi'anJiaotongUniversityreduceelectricityuseby4.27millionkWheveryyear,equivalenttooffsetting1,959tonsofCO2emissionsHuaweiCloudCampus:BuildinganIntelligentCampuswithBetterVisualizationandPowerSavingByInternationalEnergyAgencyemissionfactorsThesolutionsupportsremotecontrolforelectricalequipment.Forexample,withbigdataanalytics,elevatorsthatarelessfrequentlyusedcanbeshutdownduringholidays,andlightingandairconditioningsystemscanbeshutdownwhenbuildingsareempty.Thesolutionalsosupportsintelligentenergyefficiencymanagement,on-demanduse,andprecisepower-onandpower-offofequipment.Suchanintelligentapproachcandrivegreaterpowersavings,helpingcampusescutenergyconsumptionbyabout5%to6%.Forexample,Xi'anJiaotongUniversityhasdeployedthissolutionandbuiltmorethan700newsmartclassroomsacrossitsfourcampuses.Theyusethesolutiontointelligentlymanagelightingsystems,projectors,teachingdevices,andairconditioners.ThistranslatesintohigherO&Mefficiencyandsmallercarbonfootprints.Thesolutionisexpectedtohelptheuniversityreduceelectricityuseby4.27millionkWheveryyear,equivalenttooffsetting1,959tonsofCO2emissions.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/57EnvironmentalProtectionArooftopPVpowerplantattheHuaweiDongguanSouthernFactoryGreenOperations:ConstantlyInnovatinginEnergyConservationandEmissionsReductionandReducingResourceConsumptionHuaweiprioritizeslowconsumption,lowpollution,andhighefficiencyinitsownoperations,strivingtobuildresource-efficientandeco-friendlycompanycampuses.Weuseasmuchrenewableandcleanenergyaspossibleatthesource,applytechnicalandmanagerialmeasurestosaveenergyduringouroperations,properlydisposeofhazardouswaste,andcomplywithenvironmentalrequirements.Theseeffortshaveenabledustosaveenergy,improveresourceutilization,reducewaste,cutcosts,andachievemoreefficient,sustainable,andlow-carbonoperationswhileensuringbusinesscontinuity.»LowerEnergyConsumption,GreenerCampusesToreduceenergyconsumptiononourcampuses,wehavedevelopedstringentrequirementsregardingthesourcingofbulkequipmentforHuawei'sownfacilitiesandthesiteselectionanddecorationofleasedfacilities,aimingtoreduceenergyconsumptioninsubsequentoperations.Selectingenergy-efficientequipmentrightatthestarthelpscuttheoverallcostofconstruction,O&M,andmanagement.Duringsiteselectionforleasedfacilities,weanalyzetheoverallcostsofdecorationandlateroperations.Thisprocesshelpsussimplifyoperationsatanoptimalcostthroughoutthecampuslifecycle.Huawei'sGHGemissionsin2021GHGScope1Scope2Scope3Emissions(t-CO2e)55,1412,596,8554,638,800%oftotalemissions0.76%35.62%63.63%Scope1coversdirectGHGemissionsfromsourcesownedorcontrolledbyHuaweiScope2coversindirectGHGemissionsfromthegenerationofpurchasedelectricityorheatScope3coversallotherindirectGHGemissionsoccurringwithinHuawei'svaluechain.In2021,HuaweiappliedforacertificationofitsScope3emissionsforthefirsttime,coveringpurchasedgoodsandservices,fuelandenergyrelatedactivities,upstreamtransportationanddistribution,wastegeneratedinoperations,businesstravel,employeecommuting,etc.Movingforward,weplantoincludemoretypesofemissionssourcesunderScope3intothecertificationwhenreliableandcompletedataareavailable.HuaweicompilesaninventoryofandverifiesGHGemissionssourceswithinitsorganizationalboundariesusingtheOperationalControlApproachaccordingtothescope,categoryandcalculationmethodsdefinedintheISO14064-1:2018,GHGProtocol,andIPCCGuidelinesforNationalGreenhouseGasInventories.58/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuawei'stotalenergyconsumption(2019–2021):EnergyTypeUnit201920202021Naturalgasmillionm313.1315.369.92Gasolinetons650608800Dieseltons106107.7402ElectricitymillionkWh3,231.253,601.704,228.95Steamtons22,61322,69428,861ElectricitygeneratedfromrenewableandcleanenergyusedbyHuaweiinChina:Unit:millionkWhRenewableenergy(hydro,wind,solar,etc.)Cleanenergy(gas-firedelectricity)219.161,475.751,564.97311.872020202020212021TotalGHGemissions2019–2021(Scope1&Scope2)Unit:tons2,213,5462,285,4582,651,996201920202021201920202021GHGemissionintensity2019–2021(Scope1&Scope2)Unit:tons/millionRMBofrevenue2.262.022.93GHGemissionintensity=TotalGHGemissions/Salesrevenue.TheincreaseinHuawei'sGHGemissionintensityin2021wasmainlyduetothecompany'sdeclineinsalesrevenue.GiventhecontinuousgrowthanduniquenessofHuaweiCloud(operations-oriented),itsperformanceregardingenvironmentalprotectionismeasuredanddisclosedseparately.Therefore,HuaweiCloudisnotcoveredbyHuawei'sGHGemissionsintensitytargetsorprogress,andrelatedstatisticshavebeenadjustedaccordingly.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/59EnvironmentalProtectionExamplesofenergy-savingandemissionsreductionprojectsonHuaweicampusesin2021No.CityProjectMeasuresPowerSavings&EmissionsReduction1ChengduEnergy-efficientlightingOptimizingthelightingcontrolstrategysothatlightscanautomaticallyturnonandofftoavoidwastePowersavings:170,000kWh/yearCO2offset:146tons2DongguanUpgradingtoLEDlightingandair-conditioningsystemswithvariablespeeddrives(VSDs)UpgradingtoLEDlightingandVSDsthatenableair-conditioningsystemstooperatemoreefficientlyatpartloadPowersavings:1.01millionkWh/yearCO2offset:812tons3DongguanUpgradingproductionandmanufacturingequipmentMakinghigh-voltageandhigh-currentequipmentmoreenergyefficient,applyingthermalcycling,standardizingagingtimes,andadoptingcentralizedandintelligentschedulingtoreduceenergyconsumptionPowersavings:12.92millionkWh/yearCO2offset:10,390tons4HangzhouUpgradingtheserversofmonitoringsystemsandsavingenergyinlabsOptimizingtheEnterpriseBuildingIntegrator(EBI)systeminthelabsandquicklyshuttingdownidleequipmenttoavoidunnecessarypowerconsumptionPowersavings:2.83millionkWh/yearCO2offset:2,242tons5NanjingUpgradingtosmartlightingandoptimizingair-conditioningsystemsinconferenceroomsUsingsmartlightingtechnologytoautomaticallyswitchlightsonandoffbasedonhumanpresence,andoptimizingair-conditioningsystemstoavoidunnecessarypowerconsumptionPowersavings:1.33millionkWh/yearCO2offset:1,053tons6ShenzhenModernizingpowersupplyanddistributionsystemsandoptimizingtheoperationsofair-conditioningsystemsStaggeringthestartupofelectricity-intensiveequipmenttoavoidpeakdemandandreducerequiredcapacity,andoptimizingtheoperationsofair-conditioningsystemsPowersavings:7.6millionkWh/yearCO2offset:6,112tons7WuhanExtendingfreecoolingtimeandusingsmartlightinginconferenceroomsConnectingbuilt-incoolingtowersandhybriddry/wetcoolingsystemstoreducetheoperatingfrequencyofcoolingtowersandextendfreecoolingtime;upgradingtosmartlightinginconferenceroomsPowersavings:550,000kWh/yearCO2offset:472tons8Xi'anPVpowergenerationPVplantontheXi'ancampusupandrunningTotalgenerationofPVpower:4.747millionkWhCO2offset:4,723tonsCalculatedaccordingtoChina'sregionalgridbaselineemissionfactors60/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportDatacentersareattheheartofdigitaleconomies.ToreduceenergyconsumptionandGHGemissions,HuaweiCloud'sdatacenterinGui'anhasgreenandintelligenttechnologiesincorporatedintoitsdesign.Itspowerusageeffectiveness(PUE)is1.12,oneofthebestfiguresintheindustry.ThemeasuresHuaweitookinclude:•Employingdirectventilationfornaturalcooling.Coldairfromoutdoorsisfilteredandsuppliedtoequipmentrooms,andthendischargedfromtherooftopfollowingaheatexchangethroughthehotaisle.•Developingamedium-temperaturechilledwater810,000tonsHuaweiCloud'sdatacenterinGui'anhasintegratedgreenanddigitaltechnologiesintoitsdesign,whichisexpectedtosave1.01billionkWhofelectricityperyear,equivalenttooffsettingmorethan810,000tonsofcarbonemissionsHuaweiCloud'sgreendatacenterinGui'an:Naturallycooledthroughdirectventilationandbywaterfallsandlakes,withanindustry-leadingPUEof1.12HuaweiCloud:ImprovingPUEtoBuildGreenDataCenterssysteminthefacilityareaandofficeareaofthedatacenter.Partoftheheatisnaturallycooledbywaterfallsandlakes,andpartofitisusedtoheataswimmingpoolandofficeareainwinterwithheatrecoverytechnology.Thishelpsfullyreusewasteheatandcutcarbonemissions.•IntroducingliquidcoolingtechnologytoincreasepowerdensityandcoolingefficiencyandsignificantlyreducePUE.•ApplyingAItoservicescheduling,peakshaving,andvalleyfillingtobalanceloadsamongserversandincreaseresourceutilization.•Replacingcoppercomponentsinthepowersupplywithpowersemiconductorstoreducepowerloss.Whenoperatingatfullcapacity,thedatacenterisexpectedtosave1.01billionkWhofelectricityperyear,equivalenttooffsettingmorethan810,000tonsofcarbonemissions.BygridemissionfactorsinSouthernChinaHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/61EnvironmentalProtection»ConservingandReusingNaturalResourcesIn2021,Huaweiused16.18milliontonsofwaterinChina,up15.6%year-on-year.ThisincreasewaslargelyattributabletotheconstructionofnewfacilitiesinWuhan,Suzhou,Dongguan,Shanghai,andotherlocations.Themajorityofthewaterweconsumedwasusedforwateringourgrounds,inourcanteens,andforair-conditioning.Tobettermanagewasteinourcompanyfacilitiesandminimizeourimpactontheenvironment,wehirecertifiedwastedisposalcompaniestoclassifyanddisposeofourwasteasrequiredandreducethewastethatgoestolandfill.86%ofoursolidwasteisincineratedtoproduceelectricity.WasteClassificationExampleDisposalSolidwasteNon-recyclablewasteDomesticwasteDesignatedsuppliersregularlysortandremovethewaste.Healthcarewaste,suchasmasks,istransportedtodesignatedincinerationareasforharmlessdisposal.CanteenwasteLeftoversandwastecookingoilandfatsHarmlessdisposalbydesignatedcertifiedsuppliersRecyclablewastePackagingboxesandmetalpartsDesignatedsuppliersregularlysortandremovewaste.Specialprocessesapplyforscrappedequipmentandparts.HazardouswasteChemicalcontainersCentrallystoredinadesignatedareaandthenprocessedbycompaniescertifiedtocarryoutthiskindofworkConstructionwaste(generatedbyconstructioncompanies)WastefromrefurbishmentsConstructioncompaniesstackconstructionwasteinadesignatedarea,andlatertransportittothemunicipalsolidwastelandfill.WastewaterCanteenwastewaterOilywastewaterfromcanteensAfteroilisremovedthroughanoilseparationtank,wastewaterisdischargedintotheseptictankandthendischargedintothemunicipalsewersifitmeetstherequiredstandards.OtherdomesticwastewaterWastewaterfrombathrooms,officepantries,andsanitationDischargeddirectlyintotheseptictankandthendischargedintothemunicipalsewersifitmeetstherequiredstandards.IndustrialwastewaterWastewatergeneratedfromtheproductionprocessDisposedofbyanindustrialwastewatertreatmentfacilityanddischargedonceitmeetstherequiredstandards.60%ofwastewaterisrecycledforproduction.Huawei'swaterusageinChina(2017–2021)Unit:milliontons12.9410.418.1314.0016.182019201820172020202162/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportAspartofoureffortstoimproveemployeeawarenessofenergyconservationandenvironmentalprotection,wehavelaunchednumerousgreencampaignsonourcampusesoverthepastyear,includingourEnvironmentalProtectionWeekthemed"TechforaBetterPlanet".Thiseventincludedaceremonyforsigningacommitmenttoprotectingtheenvironment,anonlinequiz,andanold-for-newelectronicsrecyclingdrive.WeencouragedeveryHuaweiemployeetodotheirparttoprotectbiodiversityandtheplanetbydoingthingsliketurningoffunneededlights,savingwaterandpaper,travelinggreen,andlivingalow-carbonlife.HuaweihasacampusassetmanagementsystemforHuaweiEnvironmentalProtectionWeek:TechforaBetterPlanetRaisingEmployeeAwarenessofEnergyConservationandUsingLessResourcesmaximizingassetreuse,allowingustosaveresources.Forexample,ourShenzhencampushasasharedreusewarehouse.In2021,weidentifiedabout64,000reusableitemsinthiswarehouse,37,000ofwhichhadalreadybeenreused.Thispracticeallowsustousefewerresourcesbymakingthemostofexistingitems.Wehaveapolicystatingthatretiredofficelaptopsthatmeetcertainconditionscanberepurposedforthepersonaluseofouremployees,whosimplyneedtosubmitanapplication.Thisextendstheservicelifeoftheselaptopsandreduceselectronicwaste.In2021,werepurposedmorethan30,000officelaptopsforpersonaluse.WasteClassificationExampleDisposalWastegasesKitchenwastegasesCookingfumesfromhobsThegasesarefirstpurifiedbyfumehood,andthenbyelectrostaticpurifiers.Oncetheymeetthedischargestandard,theyaredischargedatasteadyrate.IndustrialwastegasesWastegasesgeneratedfromtheproductionprocessThegasesarecentrallydisposedofbytheindustrialwastegastreatmentfacilityontheroofofthebuildinginwhichthewastegasesareproducedanddischargedoncetheymeettherequiredstandards.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/63EnvironmentalProtection»GreenProcurementGreenprocurementisakeywayforHuaweitocutcarbonemissionsincollaborationwithitspartners.Basedonourprocurementprocesses,Huaweihasestablishedacarbonemissionsestimationmechanismfordifferentcategoriesofrawmaterialsandworkstoachievegreenprocurementbyfocusingonthreeareas:procurementfulfillment,procurementprocessmanagement,andenergysavingandemissionsreductionofsuppliers.Huaweiworkstofacilitatesuppliers'carbonreductionefforts.BasedonananalysisofthedeliveryroutesofHuawei'ssuppliers,thecompanyhastakenanumberofmeasuresregardingtheinboundandoutboundnodesofitsmanufacturingpartners,coveringmorethan140electronicsmanufacturingservices(EMS)providersandjointdesignmanufacturers(JDMs).Theseincludeaccuratelyplanningdeliveryroutes,optimizinggoods-receivingprocesses,andreducingthenumberofvehiclesneededandthetotalmileagecoverage.In2021,theproportionofrawmaterialsHuawei'sGreenSupplyChainManagementSystemDecarbonizationandDigitalizationEmpoweringaGreenSupplyChainHuawei'ssupplychainactivitiesspanmaterialsourcing,manufacturing,transportation,anddelivery,andcarbonemissionscanoccureverystepoftheway.Tobettermanageitscarbonfootprint,Huaweihasdevelopedacarbon-accountingframeworkbasedonmaterialflows.Basedonourexperienceinthedigitaltransformationofthesupplychain,wehaveproposedbuildingagreen,digital,andwin-winsupplychain.Webelievethatagreen,low-carbonsupplychainwillbringusclosertoourgreenpledgeof"TechforaBetterPlanet".delivereddirectlytofactoriesincreased,whichhelpedreducetransportationmileageandthefootprintofrawmaterialwarehouses.Thesechangesresultedinareductionof34.5tonsincarbonemissions.Huaweihasincorporatedenvironmentalrequirementsintoour"quality-first"procurementstrategyandprocesses.Environmentalfactorsareconsideredduringsupplierqualification,selection,audits,performancemanagement,andthesourcingofmaterialstoensurethatsupplierscomplywithallapplicableenvironmentallawsandregulations.Wealsoofferincentivestoencouragesupplierstomakeongoingimprovements.In2021,weencouragedourtop100suppliers(byprocurementspending)andenergy-intensivesupplierstocalculatetheircarbonemissions,setcarbonemissionsreductiontargets,developplans,andimplementprograms.Bytheendof2021,allthetop100suppliersandenergy-intensivesuppliershadcalculatedtheircarbonemissions,and98%ofthemhadsettargetsforreducingemissionsandGreenecosystemSupplierSemi-finishedgoodswarehouseFinishedgoodswarehouseCustomerwarehouseRawmaterialwarehouseReversesupplychainforglobalreuseCarbontradingGreenreputationGreenproductsGreenrawmaterialsGreenproductionGreendeliveryanduseGreenreuseGreenlogisticsRenewableenergytradingGreencampusCarbontaxGreenoperationsCarboncreditGreenindustrystandardsGloballogistics,transportation,andwarehousingCategory-basedacquisitionofrawmaterialsEnergyconsumptionfromproductionactivitiesandsemi-finishedgoodstransfersEnergyconsumptionandemissionsfromglobaldeliveriesGreensupplychain64/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportInMay2021,HuaweihelditsSupplierCarbonEmissionsReductionConferencethemedGreenandLow-carbonDevelopmentforSharedSuccess.Morethan1,000representativesfromover400majorsuppliersattendedtheconference.RepresentativesfromtheShenzhenMunicipalEcologicalEnvironmentBureau,industryexperts,Huaweiprocurementmanagersandexperts,andsupplierrepresentativesgavekeynotespeeches,discussingglobalprogresstowardsreducingcarbonemissions,China'spathtocarbonpeakandcarbonneutrality,industrystandards,andcompanies'bestpracticesinconservingenergyandreducingemissions.Duringtheevent,HuaweiexplaineditsTheHuaweiSupplierCarbonEmissionsReductionConferenceHuawei's2021SupplierCarbonEmissionsReductionConference,wherewesharedstrategiesandrequirementsforreducingcarbonemissionsthroughoutthesupplychainhadalreadystartedimplementingrelatedprograms.Wearefollowingupontheremaining2%toensuretheysettargetsandimplementprogramsassoonaspossible.Tohelpsuppliersreducecarbonemissionsandgogreenmorequickly,Huaweitakesmultiplemeasuressuchasreleasingstrategiesandrequirementsforsavingenergyandreducingcarbonemissionsthroughoutsupplychains.Weencouragedsupplierstomeetthechallengesofclimatechangeheadon,seizenewopportunities,pursuelow-carbondevelopment,andrespondtoourcalltoreducecarbonemissions.Huaweialsoshareditsexpectationsforsupplierstosetchallengingcarbonemissionsreductiontargetstoachievecarbonpeakandcarbonneutralitymorerapidly.casestudiesonexemplarysupplieremissionsreductionefforts,invitingindustryexpertsandspecialistorganizationstotrainandauditoursuppliersonenergy-savingmanagement,andhelpingoursuppliersidentifyopportunitiesforsavingenergyandreducingemissions.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/65EnvironmentalProtectionSince2011,HuaweihasparticipatedintheGreenChoiceinitiative,whichwaslaunchedbytheInstituteofPublicandEnvironmentalAffairs(IPE).Toencouragesupplierstobettermanagethemselves,promptlyfixanyproblems,andmaintainenvironmentalcompliance,wecontinuetousetheIPE'sBlueMapenvironmentaldatasearchduringsupplierauditsandsupplierself-checks.In2021,wecarriedoutregularchecksontheenvironmentalrecordsof900keysuppliersandhelpedmorethan10suppliersrectifyproblems.Inmostelectronicsandelectricalplants,industrialelectricityaccountsformorethan95%ofthecarbonemissionsproducedintheirownoperations.Therefore,savingelectricityistheprimarywaytoreducecarbonemissionsintheseplants.OneofHuawei'ssuppliersusesmultipleenergysourcesintheirplant,whichincludeelectricity,naturalgas,oil,anddiesel.However,electricitystillaccountsfor97.6%oftheirtotalcarbonemissionsand95.3%oftheirannualenergybill.In2021,weinvitedindustry-leadingenergymanagementexpertstoprovidetraininginenergymanagementforthesuppliertohelpdiagnosechallengeswithenergyconservation,helpimproveitsenergymanagementcapabilities,identifyopportunitiesforenergyconservation,andtakebothmanagerialandtechnologicalmeasurestoconserveenergyandreduceconsumption.Theplantthenidentified11areasinwhichenergyconservationprogramscouldbeimplemented,coveringmanagement,processesandproductionlines,lighting,compressedair,HVAC,andrenewableenergy.Thesemeasureswereexpectedtosaveover13millionkWhofelectricity,reduceCO2emissionsby10,182tons,andcuttheplant'senergybillbyCNY9.08millionperyear.Thatmeanstheinvestmentinvolvedinswappingequipmentcouldberecoupedinjust33months.Amajorhurdleherewasthattheplantwouldstruggletoinvestinsomanyenergyconservationprogramsatonce.Consideringthis,theenergymanagementexpertsEmpoweringSuppliersThroughExpertTrainingandSupportinEnergyManagementdesignedafour-stageinvestmentplan,andidentifiedthethreeenergy-savingmeasuresthatwereofthehighestpriority,requiredtheleastinvestment,andwoulddeliverimmediateresults.Accordingtothisplan,thefactorywasonlyrequiredtospendaone-offpaymentofCNY7,020onthethreeprioritizedmeasuresinthefirststage,whichwereexpectedtohelpitsave14,498kWhofelectricityandreduceCO2emissionsby11.71tons.Acombinationofenergy-savingmeasureswasexpectedtobringtheplantanadditionalCNY800,000inrevenueperyear,givingthesupplierconfidencetoproceed.AnenergymanagementexpertinvitedbyHuaweiidentifyingopportunitiesforenergyconservationinasupplier'splant66/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportR&Dandmanufacturingdepartmentsworkedtogetherandsavedenergyusethroughmorebalancedmanufacturingandreducedproductionfluctuation.Theenergysavedwasequivalenttocuttingcarbonemissionsby23,900tons.Inmanufacturingworkshops,wesaved18.65millionkWhofelectricityandreducedcarbonemissionsby15,000tonsin2021bytakingthefollowingmeasures:•Centrallymonitoringtheenergyconsumptionofmanufacturingequipment•Optimizingairconditioneroperations•Upgradinglightingfacilitiesby,forexample,replacingmetal-halidelampsandfluorescentlampswithLEDlamps•Replacingelectricheatingsystemswithheatpumps•Connectingaircompressorstothegrid»GreenManufacturingHuawei'smanufacturingdepartmentistaskedwithproducinghigh-qualityproducts.Thecompanyisconstantlystrivingtosavemoreenergyandfurtherreducecarbonemissionsbyadoptingasimplifiedarchitectureandoptimizingmanufacturingworkinstructions(MWIs)andworkshopenergyconsumptionwithoutcompromisingproductquality.MWIsarekeytodrivingefficientmanufacturingandmaterialflowsacrossasupplychain,andtheaccuracyofMWIsdirectlyaffectspowerconsumptionandcarbonemissions.WeuseAIalgorithmstooptimizeMWIsandachievebalancedmanufacturing.Throughcorrelationanalysis,wehavefoundthatforevery1%improvementinbalancedmanufacturing,energyconsumptionisreducedbyabout1.2%.In2021,ourReducingSingle-usePlasticsinthePackagingofIncomingMaterialsIn2021,aspartofitseffortstoprotecttheenvironment,Huawei'smanufacturingdepartmentadoptedadesign-for-manufacturability(DFM)approachanddesignedplastic-freepackagingbyreplacingsingle-useplasticssuchaspolyethylenebagsandfoamusedinpackagingwithstandardized,recyclablematerials.Thisplastic-freepackagingisnowadoptedinthecomponentsofouropticalnetworkterminals(ONTs)andWi-Fi6devices.Thepackagingoftheincomingmaterialsfromsuppliersusespartitionstopreventcollisionsandscratches,makingiteasytotakeoutpartswithoutaffectingtheirappearance.Thisdesigneliminatesmorethan130millionpackagingremovalsthatwouldnormallyberequiredinproductionlines.Itreducesthepollutionfromsingle-useplasticswhileboostingproductivity.In2021alone,theinitiativereducedtheuseofsingle-useplasticsby260tons,equivalentto26millionmedium-sizedsupermarketplasticbags.Thiswasareductionofabout600tonsofcarbonemissions.Movingforward,wewillpromoteplastic-freepackagingdesigninmoreofourproductionlines.BygridemissionfactorsinSouthernChinaHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/67EnvironmentalProtectionDigitalizationforagreenandlow-carbonsupplychainDigitalsupplychainGreenandlow-carbonGlobalsupplynetworkCustomersatisfactionEnterpriseoperationsSustainabilityMaterialflowSupplierFactoryDistributioncenterCustomsCentralwarehouseSite/Customerpremise•Saved320,000piecesofpaperforgoodsreceiptsandpaymentreviewsbypilotingblockchaintechnologyinfourofourregionaldistributioncenters(RDCs)inChina.Digitalandgreentransformationsaretwosidesofthesamecoinwhenitcomestosupplychains.Asenterprisesdigitalizetheirsupplychains,theyarelikelytobenefitfromhigherefficiencyandlowercosts.This,inturn,helpsthemachieveemissionsreductiontargets.Greenandlow-carbondevelopmentcanguideenterpriseoperationsinawaythatfurtherdrivesdigitalization,creatingapositivecycle,asshowninthefigurebelow.Overthepastfiveyears,HuaweihasbeenmovingtowardsadigitalsupplychainthroughitsIntegratedSupplyChain+(ISC+)transformationprogram,whichinvolvesdigitizingallobjects,processes,andrules.ThishasallowedHuaweitosignificantlyimproveoperationalefficiency,cuttheamountofenergyusedduringthemanufacturingofphysicalgoods,optimizeroutestosavemileage,andreduceresourceconsumption.Theseeffortshavecontributedtoenergyconservation,emissionsreduction,andacirculareconomy.Meanwhile,paperlessoperationsaspartofthedigitaltransformationprocesshavehelpedHuaweianditspartnerssaveahugeamountofpaperandreducetheneedforcuttingdowntrees.»GreenLogisticsHuawei'sgloballogisticsnetworkcoversmorethan170countries,300logisticsandwarehousingnodes,40,000transportationroutes,andvariousmeansoftransportation,includingsea,air,rail,road,andexpressdelivery.Thisisahighlycomplexglobalnetwork.InlinewiththeISO14064standard,HuaweihasdesignedacarbonemissionsaccountingframeworkforitssupplychainbasedonthemethodologiessetoutintheGHGProtocolandIPCCGuidelinesforNationalGreenhouseGasInventories,andmeasuresitscarbonemissionsfromglobaltransportandwarehousing.In2021,thepandemicmeantgloballogisticsserviceswereinshortsupply.Despitethis,Huaweiremainedcommittedtogreenandlow-carbonlogisticsmanagement,andproducedtangibleresults:•Directlyreducedcarbonemissionsby456tonsbyoptimizingthepick-uproutesforrawmaterials,implementingcentralizedtransportationanddistribution,andimprovingcontainerloadinganddeliveryroutestolowertheproportionofairfreighttocountriesoutsideChina,asairfreightisoneofthemostemissions-intensivemodesoftransport.•Indirectlyreducedcarbonemissionsbyabout99tonsbyoptimizingourglobaltransportandwarehousingfootprints.68/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportThroughoutHuawei'ssupplychain,wepreviouslyused66typesofA5-sizedpaperlabelsandeighttypesofkeypaperdocumentsforapproval.Accordingtoannualshipmentvolumes,printingtheselabelsanddocumentsconsumedmorethan100millionsheetsofpaper.Toaddressthisissue,wedecidedtosignificantlyreducepaperusageoradoptpaperlessoperationswherepossibleacrossthesupplychain.Bysystematicallyredesigningourlabelsanddigitizinglabelinformation,weremoved50outofthe66typesofpaperlabelsandSavingPaperbyMovingPaperLabelstotheCloudtheeighttypesofapprovaldocuments.Meanwhile,wecategorizedQRcodesandbarcodesasnecessarylabelswhenredesigningthelabelingsystem.Labelinformationcannowbeobtainedbyscanningthecodes,andmoreinformationisstoredinthededicateddatamodulesonHuaweiCloud,reducingthenumberoflabelsattachedtophysicalobjects.Accordingtoourestimates,thisoptimizationalonecanhelpusreducethepaperusedinpackagingby99.95millionsheets,equivalenttooffsetting330tonsofcarbonemissionsperyear.AppCloudlabelHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/69EnvironmentalProtectionPromotingRenewableEnergyAdigitaleconomyis,firstandforemost,agreeneconomy.Greenandlow-carbondevelopmenthasbecomeagloballyrecognizedgoalandmorecountriesandbusinessesareincreasinginvestmentandtransitioningtorenewableenergy.Huaweiwantstoplayanactiveroleinthetransitionfromfossilfuelstorenewableenergy.Weuserenewableenergyinouroperationswhereverpossible.Huawei'sChengduResearchCenterisnowfullypoweredwithrenewableenergy.We'vebuiltPVplantsonourcampusesinHuaweiDongguanSouthernFactory,HangzhouResearchCenter,NanjingResearchCenter,andXi'anResearchCenter.In2021,theseplantsgeneratedmorethan17.6millionkWhofgreenelectricityintotal.Ourdigitalpowercompanyfocusesonfivedomains:cleanByInternationalEnergyAgencyemissionfactorsHerdingSheepUnderSolarPanels:SmartPVSolutionHelpsBuildaRenewableEnergyHubinQinghai,ChinaInQinghaiprovince,China,wehelpedHuangheHydropowerDevelopment,asubsidiaryofChina'sStatePowerInvestmentCorporation(SPIC),buildarenewableenergyhubusingwind,solar,andhydropower,wherefarmerscanherdsheepundersolarpanels.Thehubhostsa2.2GWPVplantwithmorethan7millionPVmodulescoveringanareaof56km2.Eachstringofmodulesispreciselymanagedwithintelligent,digitaltechnologies.Thisimprovesthepowerplant'senergyyieldsbyover2%andoperationandmaintenanceefficiencybyover50%.Sincetheplantwasconnectedtothegrid,ithasgeneratednearly5billionkWhofgreenelectricityperyear,andsuppliedgreenelectricitytoHenanprovince,moreRenewableenergyhubinGonghe,Qinghai,builtwiththesupportofHuawei'ssmartPVsolution:HerdingsheepundersolarpanelsandsupplyinggreenelectricitytoHenanprovince,morethan1,500kilometersaway,viaaUHVDClinethan1,500kilometersaway,viatheQingyuUHVDC(±800kV)powertransmissionline,theworld'sfirsthighvoltagetransmissionlinecarrying100%cleanenergy.Talatanwasoncealandscapeofwindsweptsand.SincethePVpowerstationwasbuilt,thelocalecosystemhasimprovedgreatly.Theprojecthascutaveragewindspeedsby41.2%whileimprovingaverageairhumidityby2.1%andsoilmoisture(at20cmdeep)by32%.Grasshasquicklysprouted.Today,thesolarfarmisalsoasheepfarm.Shepherdswhohadtoleavethisareabecauseofalackofqualitypasturearenowabletoreturntotheirhomes.powergeneration,energydigitalization,transportationelectrification,greenICTpowerinfrastructure,andintegratedsmartenergytodriveanenergyrevolutionforabetter,greenerfuture.230milliontonsBytheendof2021,Huawei'sdigitalpowersolutionshadhelpedcustomersgenerate482.9billionkWhofgreenpowerandsaveabout14.2billionkWhofelectricity,equivalenttooffsetting230milliontonsofCO2emissions.70/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportSunseap's5MWpOFPVSystem:ABlueprintforPromotingRenewableEnergySingapore'slargestcleanenergysolutionsprovider,SunseapGroup,hasdeployeda5MWpoffshorefloatingphotovoltaic(OFPV)systemintheStraitsofJohor,oneoftheworld'slargestfloatingsolarfarmsonseawater.With13,312solarpanels,40inverters,andmorethan30,000floats,thisPVsystemisestimatedtoproducemorethan6millionkWhofenergyperyear,whichisenoughtosupplyelectricityfor1,250four-roompublichousingapartmentsontheislandandoffsetanestimated4,258tonsofCO2emissions1.BydeployingHuaweiinvertersandutilizingHuawei’sFusionSolarSmartPVManagementSystem,Sunseaphasbeenabletostreamlinetheoperationandmaintenanceprocessofthefloatingplatform.Thecompletionofthisprojectandthetimeittooktofullyconnectthegridwillserveasablueprintforothercountrieswithdensepopulationsandlimitedlandtorolloutsimilarinitiatives.Sunseap's5MWpOFPVsystemservesasablueprintforothercountrieswithdensepopulationsandlimitedlandtorolloutsimilarinitiativesHuaweiDigitalPowerHelpsBuildaNearlyZero-carbonExhibitionHallinChinaLocatedinShenzhen'sLonggangDistrict,theInternationalLowCarbonCityConventionandExhibitionCenterhasusedHuawei'sdistributedsmartPVsolution,energystoragesolution,andDigiPowerCloudsystemtobecomeChina'sfirstnearlyzero-carbonfacility.Itisequippedwitha1.1MWPVsystem,a2MWhenergystoragesystem,Anearlyzero-carbonexhibitionhallinChinapoweredbyHuawei'sdigitalpowersolutionsandanintegratedsmartcampusmanagementsystem.Onceitisupandrunning,thecenterisexpectedtoachieveself-sufficiency,producing1.27millionkWhofgreenelectricityeveryyearandoffsettingabout603tonsinannualcarbonemissions2.Inaddition,thecenterissafe,reliable,andeasytomaintain.1BytheEPAGreenhouseGasEquivalenciesCalculator2ByInternationalEnergyAgencyemissionfactorsHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/71EnvironmentalProtectionContributingtoaCircularEconomyAstheworld'spopulationcontinuestogrowandqualityoflifekeepsimproving,pressureontheworld'snaturalresourcesisincreasing.Toadapttofutureneeds,itisimportantforustodeveloparesource-efficienteconomicmodel.Huaweiiscommittedtobuildingabusinessmodelthatincorporatescirculareconomypracticesandaclosed-loopvaluechainsothatallresourcescanbeefficientlyused,reused,andrecycled,andinturnmaximizeproductvaluewithlimitedresources.GreenerPackagingHuaweiadoptsagreenpackagingstrategyknownas"6R1D":RightPackaging,Reduce,Returnable,Reuse,Recovery,Recycle,andDegradable.Weaimtodesignpackagingthatprovidessufficientprotectionforourproductsandhasminimalimpactontheenvironment.Weuseeco-friendlypackagingmaterialsandrecycleandreusethemasmuchaspossible.HuaweiDevicesUseBiodegradableandEco-friendlyPackagingMaterialsThedegradabilityofaproduct'spackagingisoftenaffectedbytheinksused.Ourdevicesarepackagedwith100%eco-friendlysoyinksratherthanpetroleum-basedinks.Comparedwithpetroleum-basedinks,soyinksusesoybeanoilthatcontainsnovolatileorganiccompounds,whilestilldeliveringqualityprints.MoreEco-friendlyMaterialsHuaweiiscommittedtousingmoreeco-friendlypackagingmaterialstominimizeourimpactontheenvironment.Weuserecyclablepaperandsustainability-certifiedpaperasmuchaspossibletoprotectforestresources.Ourlatesteco-friendlypackagingmaterialshavebeencertifiedascompostablebyDINCERTCO,meaningthattheyarebiodegradableaspartofindustrialcomposting.Recycle&RecoveryReusingresourcesandenergybyusingeco-friendlyandrenewablematerialsasmuchaspossibleRight&ReduceDevelopingbetterandmoreefficientpackagingdesignstoreducetheuseofpackagingmaterialandcutpackagingandlogisticscostsReturnable&ReuseEnablingpackagingmaterialstobeusedforlongerthroughrecyclingandreuseDegradableReducingoreliminatingtheimpactofpackagingwasteontheenvironmentbyusingbiodegradablematerialsHuawei's6R1DpackagingstrategyReduceReturnableRecoveryRecycleDegradableReuseRight72/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportLighterUserManualsforLessResourceConsumptionandEmissionsLightweightusermanualsuselesspaperandcutresourceconsumptionandcarbonemissionsduringtransportation.Theapproachwetaketocreatinglightweightusermanualsisfocusedonbalancingpapermaterialreductionsanduserexperiencerequirements.Toachievethis,wehavecreatedapre-installedTipsappforourdeviceswhereuserscangetmoreinformationabouttheirdevices.201920202021ProductscoveredMobilephonesMobilephones,tablets,PCs,wearables,andheadphonesMobilephones,tablets,PCs,wearables,headphones,speakers,andsmartscreensUsermanualpagereduction27%87%5%Papersaved(tons)89426468Carbonoffset(tons)2,53712,08013,288In2021,lightweightusermanualdesignswerewidelyadoptedforallHuaweidevices,includingmobilephones,tablets,andPCs.Thisyieldedremarkableresults–468tonsofpaperwassaved,equivalenttoacarbonoffsetof13,288tons.LessPlastic,GreenerConsumptionTheUnitedNationsEnvironmentProgrammeestimatesthatabouteightmilliontonsofplasticendupintheoceaneveryyear,and60%to90%ofthelitterthataccumulatesonshorelines,thesurface,andtheseafloorisplastic.Toreduceplasticwaste,Huaweikeepsimprovingitsproductpackagingandreducingtheamountofplasticusedinpackagingmaterials.Forexample,thesurfaceofapackingboxisusuallycoveredwithalayerofplasticfilmtoprotectthetextandprintedgraphics.Ourpackagingdesignersdevelopedwater-basedinkstoreplacetheplasticfilm,whichhasbeenappliedtothepackagingoftheHUAWEIEnjoy20Proandnova7SE(5G)models,andwillbeusedinthepackagingofmoreproductsin051015202530357.430.8523P40P50nova7nova8(ChinaMobilecustommodel)FreeLaceFreeLaceFreeBudsProFreeBuds3WATCHGT2WATCH3TalkBandB6WATCHFITBand4Band6175130432619913753128Unit:gramsPreviousmodelNewmodelthefuture.Thisoptimizationaloneisexpectedtoreducetheuseofdisposablepackagingplasticsbyapproximately46.3tonsforevery10millionphones.Wearealsoreducingtheplasticusedinsidegiftboxes.Forexample,theamountofplasticusedinsidethegiftboxesofP50seriesphonesdecreasedby89%comparedwiththeP40series.Plasticnowmakesuplessthan1%ofthepackagingofaP50phone,anindustry-leadingfigure.Wehaveappliedtheseplasticreductionmeasurestoheadphones,watches,bands,andmanyotherproductstoprovideeco-friendlyproductstoourconsumersanddrivegreenconsumption.ComparisonofplasticpackagingovertwogenerationsofvariousHuaweiproductsHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/73EnvironmentalProtectionMoreDurableProductsHuaweifollowsaquality-firststrategyandaimstosucceedwithhighquality.WeimplementanISO9000-basedtotalqualitymanagementsystemthatcoverseveryemployee,everyprocess,andeverylinkofthevaluechaintoachievethis.Allemployeesareencouragedtopursuehighquality.Weareworkingtoimprovethequalityofbothourprocessesandresults,andprovidecustomersandconsumerswithqualitydurableproductsandconvenientandaffordablerepairservices.Thesepracticeshavehelpedslashproductcostsovertheirlifecycle,andreduceourconsumptionofnaturalresources.ExtendingDeviceServiceLifewithSoftwareandHardwareUpdatesAninternationalstudyfoundthattheaveragesmartphonepurchasecycleforconsumersinChinawas28months.Huaweihasbeenexploringhowtobringnewlifetousedphones,recouptheirfullvalue,andreducee-waste.Weareworkingtoextendtheservicelifeofusedproductsasmuchaspossibleandmakethemmoredurablethroughsoftwareandhardwareupdates.Theseeffortsinclude:•Upgradingover100phonemodels(includingtheMate9seriesreleasedin2016,Mate40series,Mate30series,P40series,HUAWEIMateX2,nova8series,andMatePadProseries)toHarmonyOS2.HarmonyOS2isbornfastandstaysfast.WithHarmonyOS2,operationresponsesonolddevicemodelsareassmoothasalways.•Implementingaglobalflat-ratebatteryreplacementprogramthatcoversmorethan110differentphonemodelsandissupportedinover2,000offlinestoresandonlinemarketplaces.Everymonth,thisprogramprovidesover250,000consumerswithourconvenient,cost-effectivebatteryreplacementservices.•Launchingamainboardreplacementprogramin2021forphonemodelssoldintheChinesemainlandthatallowscustomerstobuyoriginalHuaweimainboardsatupto70%discount,evenforout-of-warrantymainboarddamages.Wehavealsoestablishedasystemforreusingscreensthatareoutofwarrantyinmanycountries,recyclingasmanyresourcesaspossible.•RollingoutaHuaweismartphonememoryupgradeplanin2021throughwhichconsumerscanobtainchipswithalargermemorycapacityfortheirolddevices.Bytheendof2021,HarmonyOShadbeendeployedonmorethan220millionHuaweidevices,makingittheworld'sfastest-growingmobiledeviceoperatingsystemDurableHuaweiNetEngineRouters:LowReturnRepairRatesHuawei'shigh-endNetEngineroutershavehighlysophisticated,large-capacitylinecardsthatcontainmorethan20,000componentsandnearly100,000solderjoints.Wehavebuilthigh-endroutermanufacturinglinesandanend-to-endqualityassurancesystemtoensurethequalityofsuchproducts.Asaresult,wehaveachieveda1.56defectpartspermillion(PPM)opportunitiesforboardsolderpoints,significantlylowerthantheSixSigmabenchmarkof3.4.Huawei'sboardreturnrepairrateisonlyonethirdoftheindustryaverage.Alloftheseeffortshaveextendedtheservicelifeofourproducts.Huawei'shigh-endNetEnginerouters74/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportLessWasteOneofthemosteffectivewaystoreducetheenvironmentalimpactofelectronicproductsistoreusee-wasteandrecoupitsvalue.Inclosecollaborationwithleadingrecyclingserviceproviders,Huaweicategorizesitse-wastesothatitcanbeefficientlyrecycledandreclaimed.Throughourglobalrecyclingsystem,weworkwithscrapserviceproviderstorecycletherawmaterialsofe-wasteinmorethan170countriesworldwide.In2021,wedisposedof11,826tonsofICTe-waste,only0.78%ofwhichwaslandfilled,andprocessed8,643tonsofsmartdevicee-waste,noneofwhichwaslandfilled.CertifiedSecond-handPhonesonHuaweiVmallIn2021,Huaweilaunchedasecond-handphoneserviceonVmallforrecycling,refurbishing,andresale,togetherwithindustry-leadingrecyclersandserviceproviders.Wehaveputinplacerelatedprocessesandstandards,andhaveintegratedthecirculareconomyconceptintoeverylinkoftheprocess,fromsourcingthesecond-handphonestosaleschannels.AllHuawei-certifiedsecond-handmobilephonesmustpassstringentteststoensurethattheyareequippedwith100%originalHuaweicomponents(includingoriginalbrand-newbatteries)andcomewithHarmonyOS2pre-installed.Huaweialsogivesaone-yearofficialwarrantyforeachcertifiedsecond-handdevice.Movingforward,wewillexpandthisprogramtocovertabletsandPCs,providingconsumerswithmorequalitysecond-handdevices.Bysellingqualitysecond-handphones,wehavegreatlyextendedtheservicelifeofourproductsandreducedresourceconsumption.AddingTamper-evidentLabelstotheSmallestPackingUnitsofOpticalModulestoFacilitateRecyclingWhenopticalmodulesarereturnedfromourregionalwarehousestoHQwarehouses,manyofthesmallestpackingunitshavetobesentbacktotheiroriginalsupplierforrepairdespitetheunitsthemselvesremainingintact.Thisisbecausetheiroriginalpackagingisunidentifiableaftertheshippingboxisopened.Thecostofsendingmodulesbackforrepairisveryhigh,somanymodulesarescrappedinstead,resultinginCNY20millioninmaterialcostseachyear.Toaddressthisproblem,wesetupadedicatedoptimizationteamtoaddtamper-evidentlabelstothesmallestpackingunitsduringshipment.Thismakestheoriginalpackagingoftheunusedproductsstillidentifiableevenaftertheshippingboxisopened,sotheirqualityiscontrollableandreliable,requiringnofurtherinspectionbeforerecycling.Thisgreatlyimprovesreuseefficiencyandreducese-waste.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/75EnvironmentalProtectionEnvironmentalCertificationsIn2021,Huaweiobtainedmultiplenationalandinternationalenvironmentalcertifications,including:ISO50001CertifiedEnergyManagementSystemTheISO50001certifiedenergymanagementsystemfocusesonimprovingenergyefficiencyandreducingenergyconsumptionbystandardizingvariousenergymanagementsystemsandmeasures,andidentifyingandutilizingtherightenergy-savingtechnologiesandmethods,aswellasbestenergymanagementpractices.In2021,HuaweiTechnologiesCo.,Ltd.passedtheannualISO50001surveillanceaudit.ISO14001CertifiedEnvironmentalManagementSystemISO14001environmentalmanagementcertificationindicatesthatanorganizationhasreachedtheinternationalstandardinenvironmentalmanagementandcaneffectivelycontrolvariouspollutantsinitsprocesses,products,andactivities.In2021,HuaweiTechnologiesCo.,Ltd.passedtheISO14001renewalaudit,whichcoversthedesign,manufacturing,procurement,supplychainmanagement,sales,andservicesinICT,devices,cloudcomputing,andotherrelatedbusinessscopes.EnvironmentalManagementSystemCertificateStandardGB/T24001-2016idtISO14001:2015CertificateRegistr.No.171041933213CertificateHolder:HuaweiTechnologiesCo.,Ltd.HuaweiHeadquarters,Bantian,LonggangDistrict,Shenzhen,518129Guangdong,P.R.ChinaincludingthelocationsaccordingtoannexScope:Design,Manufacturing,Procurement,SupplyChainManagement,Sales,andServices(includingInstallationManagement,NetworkEngineeringServices,NetworkFieldMaintenance,Repair,CustomerSupportandTrainingServices)ofSemiconductorsandComponents(includingNetworkandDeviceChips,ConsumerChips,andOpticalComponents),FixedAccessProducts,RadioAccessProducts,CoreNetworkProducts,TransportNetworkProducts(WavelengthDivisionMultiplexing(WDM)Equipment),DataCommunicationProducts,SynchronizationNetworkProducts,AntennaSystemandRadioFrequencyProducts,CopperandOpticalDistributionNetworkProducts(ODNandDistributionProduct),BusinessSupportSystemProducts,NetworkManagementSystemandToolProducts,DataServiceProducts,EnterpriseServiceProducts,IntelligentVisionProducts,IntelligentCollaborationProducts,InfrastructureNetworkandSecurityProducts,CloudComputingandDataCenterProducts,DataStorageProducts,ComputingProducts(includingGeneral-PurposeServers&ComputingComponents,andAIServers&ComputingComponents),HybridVideoProducts,TelecommunicationTerminalProducts(includingMobilePhone),ComputerandAccessories,AutomotiveComponentsandSmartSystems(includingSmartDrivingSolution,MobileDataCenter,IntelligentSensor,Lidar,Radar,Camera,SmartLogisticsVehicles,Maps,Navigation,AutomaticDrivingDataService,SmartLogisticandTravelService,Robotic,SmartCockpit,VehicleCloudService,VehicleControl,ThermalManagementSystem,VehicleGateway,CommunicationSystemandAssembly,MultimediaInformationSystem),DigitalPowerProducts(includingSitePowerFacility(includingTelecomPower,HybridPower,IntelligentLithium,IntelligentCharging,IntelligentSite),SmartPV(includingInverter,EnergyStorageSystem,TransformerandPowerDistributionEquipment),EmbeddedPower(includingBox-shapedPower,BoardMountedPower,ConsumerFastChargingModule),DataCenterEnergy(includingUPS,IntelligentLithium,DataCenterInfrastructure(includingModularDataCenter,PrecisionAirConditionersintheEquipmentRoom)),NetworkManagementSystemandMonitoringSystem,IntelligentElectricMobility(includingUnder-VehicleChargingandEnergyStorageSystem,on-BoardChargerandAuxiliaryPowerSupply,VehiclePowerConversion,VehicleWirelessCharging,MotorControlSystem,BatteryManagementSystem,Powertrain,PowerDomainController,andPowerDomainIntegrationSystem))Note1:ODNandDistributionProduct:ODF(OpticalDistributionFrame),FDT(FiberDistributionTerminal),SPL(Splitter),FAT(FiberAccessTerminal),SSC(SplittingandSplicingClosure),IndoorCable,iODF(IntelligentOpticalDistributionFrame),iFDT(IntelligentFiberDistributionTerminal),iFAT(IntelligentFiberAccessTerminal),IntelligentPatchCord,iSPL(IntelligentElectricID).Note2:TheDesignandServiceofCloudComputingProductsincludeProvisionofPlanningandDesignService,ReserchandDevelopmentServices,OperationandMaintenanceService,ServiceOperationandCustomerSupportServiceforHuaweiCloudService,includingComputing,Storage,Network,Database,Security,Domain&Website,Application,Management&Deployment,DevCloud,Migration,CloudCommunications,loT,DedicatedCloud,EnterpriseNetwork,EnterpriseIntellgigence.TheServiceofDataCenterProductsincludetheProvisionofOperationandMaintenanceServicesforHuaweiCloudDataCenters.Note3:SupplyChainManagementincludeStorage,LogisticandDeliveryManagement.ProofhasbeenfurnishedbymeansofanauditthattherequirementsofGB/T24001-2016idtISO14001:2015aremet.Validity:Thecertificateisvalidfrom2021-11-04until2024-05-18.Itremainsvalidsubjecttosatisfactorysurveillanceaudits.ThiscertificateinformationcanbesearchedonCNCAofficialwebsitehttp://www.cnca.gov.cn2021-11-05TUVRheinland(China)Ltd.No.01/03B-08,Floor7andNo.01/04B-08,Floor11,AVICBuilding,No.10BCentralRoad,East3rdRingRoad,ChaoyangDistrict,Beijing100022,P.R.Chinawww.tuv.com®TÜV,TUEVandTUVareregisteredtrademarks.Utilisationandapplicationrequirespriorapproval.76/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportISO14064GreenhouseGasVerificationStatementTheISO14064GreenhouseGasVerificationProgramprovidesclearstandardsforcompaniestomonitor,quantify,report,andverifygreenhousegasemissionsinaccordancewithinternationalstandards.Thisprogramhelpsidentifykeyemitters,assessemissionsreductiontargets,anddevelopemissionsreductionplans.In2021,HuaweiTechnologiesCo.,Ltd.obtainedISO14064certificationagain,withtheverificationcoveringHuawei'sR&Dcenters,manufacturingfacilities,officebuildings,datacenters,canteens,andleasedpremises.Thecompanybegantoincludegreenhousegasemissionsfromrawmaterialprocurement,employeecommuting,andwastedisposalunder"Scope3:OtherIndirectGHGEmissions"intoitsverification.Eco-friendlyCertificationbyCECforNetworkFirewallsChinaEnvironmentalUnitedCertificationCenter(CEC)isacomprehensivecertificationandserviceagencythatcertifiesleadinggreen,energy-saving,andlow-carbonproductsinChina,asaccreditedbyChina'sCertificationandAccreditationAdministrationCommittee.In2021,72ofHuawei'sHiSecEnginefirewallproductsreceivedEco-friendlyProductCertification,makingthemthefirstfirewallproductstoreceivethiscertificationfromCEC.网络型防火墙生态产品认证证书证书编号:CEC2021CVP055000001委托人华为技术有限公司地址: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地址:广东省深圳市龙岗区坂田华为总部办公楼生产企业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认证标准中环联合认证中心技术规范CEC055-2021《CEC生态产品评价技术规范网络型防火墙》认证单元模块化网络型防火墙品牌:华为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。认证模式:型式检验+初始工厂检查+获证后的监督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:HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/77EnvironmentalProtectionCQCCertificationforEnergy-efficientProductsTheChinaQualityCertificationCenter(CQC)assessesenergyefficiencyinproductsbasedonnationalstandardsandtechnicalrequirements.Thisisavoluntarycertificationprogramdesignedtoencouragemoreresponsibleconsumptionandtheuseofenergy-efficientandeco-friendlyproducts.In2021,30ofHuawei'sCloudEnginetopofrack(TOR)switchesreceivedCQCcertificationfortheirhighenergyefficiency,whichmeetstheCQC3140-2019TechnicalSpecificationsforEnergySavingsCertificationofEthernetSwitches.Thismeanstheycansignificantlycutenergyconsumptionwhiledeliveringhighperformance.SmartGreenMedalTheSmartGreenMedalisgrantedbySGS'sseniorexpertteamafterassessingproductsinmultipleareasagainstthecertificationstandards,includingmaterials,durability,energysaving,security,anduserexperience,aswellastherelatedorganization'sproductionandoperations.In2021,HuaweiMate40series,MateX2,P50,nova9,nova9Pro,andFreeBuds4earnedtheSmartGreenMedal(Level1Certification)fromSGS,whichisitshighestlevelforratinggreenproducts.78/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHealthyandHarmoniousEcosystem5CaringforEmployeesBusinessEthicsSupplyChainResponsibilitiesCommunityResponsibilitiesHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/79HealthyandHarmoniousEcosystemAsadigitalandintelligentworldisapproaching,Huaweistrivestocreateevengreatervalueforourcustomers,buildbetterplatformsforourpartners,provideouremployeeswithmoreopportunities,andpromotemorebalancedgrowthforlocalcommunities.Weareworkinghardtoensurethatthefruitsofourinnovationarebenefitingallpeople,allhomes,andallorganizations.Wearecommittedtodoingourparttopromotesustainableandinclusiveeconomicgrowth.80/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportCaringforEmployeesEmployeesareourmostvaluableasset.TheyarethemainstayofHuawei'ssustainabledevelopment.Ourcommitmenttoimprovingthelivingandworkingenvironmentsforouremployeesdoesnothingeonourbusinessperformance.Wealwaysstrivetoofferthembetterdining,moreleisureopportunities,andamorecomfortablespace.Weaimtobringinoutstandingglobaltalentwhilealsounleashingthepotentialofourexistingteams.Ourincentivepoliciesfocusonhowwellemployeesfulfilltheirresponsibilities,andweoffertoppayfortoptalent.Weencourageouremployeestodiveheadfirstintouncertaindomainsandnurtureanopenorganizationalclimate.Weprovideemployeeswithsystematictrainingandempowerment,andencouragemanagersandexpertstoengagemorewithnewemployeestohelpthembroadentheirhorizons.Weassignthebrightestmindstodevelopevenbrighterones.EmployeeHealthandSafetyItisacompanypolicytocareforouremployeesandalwaysputtheirsafetyfirst.Weareworkingtocreateasafeandcomfortableworkplace,andweencouragesubcontractorstodothesame.OurEHSmanagementsystemscoverallbusinessdomainsacrossthecompany,andourscientificmanagementapproacheshelpusmeetandexceedallapplicablelegalandregulatoryrequirements.MultipleHuaweisubsidiarieslikeHuaweiTechnologieshaveobtainedISO45001certification.Inrecentyears,R&Dlabshavebeenengaginginmorediverseandcomplexservicesandscenarios,whichhascreatedgreaterchallengestooperationalsafety.Totacklethesenewchallenges,wehavetakenanumberofmeasurestoguaranteethehealthandsafetyofourover100,000R&DemployeesandensuretherearezeroEHSincidentsinourR&Dlabs.Thesemeasuresincludestrictriskcontrols,processmonitoring,redlinesthatcannotbecrossed,andconsultingwithexternalexpertstoidentifyblindspots.•Intrinsicsafetydesign:Asearlyasthelabplanninganddesignphase,weworktoeliminateanyrisksidentifiedthroughsiteselection,buildinglayout,materialsreplacement,andprocessimprovementtoensuresafeoperations.•Newadmissionmechanism:Wehaveestablishedamechanismforintroducingnewequipment,newmaterials,newcomponents,andnewmodelsbasedonwhethertheyhavemetEHSrequirements.Thismechanismallowsustoidentifyhigh-riskprojectsandscenariosanddevelopcountermeasuresinadvance.•Earlywarningmechanism:Wehaveimprovedthehierarchicalmanagementsystemforpotentialrisksbyimplementinganearlywarningmechanismthatdifferentiatesbetweendifferentrisksbytheirseverityandresolvingriskswhentheyareidentified.•Blindtestmechanism:KeylabsaresubjecttorandomStrengtheningIntrinsicSafetyManagementtoPreventEHSIncidentsinR&DLabsinspectionswithoutpriornoticetoassesstheiron-siteemergencyresponseplans,andtoidentifyemployees'safetyawarenessandcapabilitygaps.Improvementplansarethencreatedandtheirexecutioniscarefullymonitored.•Consultingwithoutsideconsultants:Webringinthird-partyconsultantstoevaluatethematurityofourEHSmanagementsystemandhelpidentifyourweaknessesandblindspotscomparedwithindustrybestpractices.Thishashelpedimproveourmanagementefficiency.•CapabilityimprovementandEHSqualifications:Wearecontinuouslyimprovingemployees'safetyawarenessandsafetyprotectionskillsthroughEHSmanagementcoursestargetingdifferentpositionsandriskscenarios.WerequireallrelevantemployeesandbusinessdirectorstoobtainEHSqualificationsbeforeassumingtheirrolesinR&Dlabs.•Digitalmanagementplatform:WeareconstantlyimprovingourunifieddigitalmanagementplatformtosupportcentralizedmanagementofourglobalR&Dlabsandimprovemanagementefficiency.•Cultureofsafety:WehavealsoconductedvariousinitiativessuchasanEHSSafetyMonth,interpretationsessionsonproductionsafetylaws,andsafetyawarenessprogramstoenhanceEHSleadershipanddevelopacultureofsafety.ManagerstakinganEHSqualificationexamThird-partyconsultantsassessingthematurityofourEHSmanagementsystemHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/81HealthyandHarmoniousEcosystemOverthelastyearasthepandemiccontinued,Huaweiworkedwithcustomerstofindinnovativewaystoensureconstructionsafetyindeliveryprojects.Byextensivelyusingintelligenttoolssuchassmarthelmets,VRtraining,andAI-poweredintelligentinspectionsandapprovals,wehavefurtherimproveddigitaloperations,reducedEHSrisks,andledthewayinindustryinnovation.•RemoteEHSmanagement:Duetothepandemic,HuaweiremotelymanagedEHSgloballytoreducetheriskofinfectionduringbusinesstripsandday-to-daywork.Digitaltoolsnowallowustocentrallymanageonsiteoperationsafety,andourAI-poweredintelligentapprovalsystemhasmadeEHSinspectionsandapprovalsmuchmoreefficient.•Smarthelmets:Wearepromotingdigitaltoolslikethesmarthelmetsusedatsomeofourcustomers'sitesinAfrica.Thesehelmetsfreeupoperators'handsJointInnovationwithCustomersforBetterEHSManagementandallowthemtoquicklyfindremotesupportwhenneeded.Thishelpsboostoperationefficiency,virtualizeEHSmanagement,andmitigaterisksmorequickly.•VRtraining:OurVR-basedEHStrainingcoursesallowoperatorstobetterunderstandoperationsafetyregulations,givethemanimmersiveexperienceinidentifyingoperationrisksandperformingemergencyresponsedrills,andimprovetheirsafetyawareness.AtitsannualsupplierconferenceheldonlineinNovember2021,VodafoneGrouppresentedHuaweiwiththeir"HealthandSafetyAward"inrecognitionofoureffortsandcontributionstooccupationalhealthandsafetymanagement.Huaweihasarobustemployeehealthandsafetymanagementsystemandwestrivetoensurethehealthandsafetyofouremployees.Weprovidecomprehensivesocialandcommercialinsuranceforouremployeesandoperateaglobalemergencyresponsesystem24/7toprotectouremployeesandprovidetimelyemergencysupport.Weofferhealthchecks,healthcounseling,healthandsafetytraining,andhealthylifestyleguidancetoemployees.Wearealsosteppingupeffortstoprovidemorehealthassuranceresourcesforemployees.In2021,weinvestedmorethanCNY15billionintotheseemployeebenefits.Spendingonemployeebenefits(CNYbillion,2017–2021)15.0412.6413.9811.8913.5120212017201820192020"HealthandSafetyAward"fromVodafoneGroup82/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportIn2021asthepandemiccontinued,Huaweiadoptedmorescientificpandemicpreventionandtargetedcontrolmeasurestoensurethehealthandsafetyofitsemployeesworldwide.Thesemeasuresinclude:•Rapidnucleicacidtests:Mobilizedresourcesandsetupfastchannelstoproviderapidnucleicacidtestingforemployees.•Vaccination:Obtainedvaccines(includingboosters)frommultiplechannelstoensurethatemployeescouldbefullyvaccinatedassoonaspossible.•Campusentrymanagement:Limitedcampusentryusinganentrypasssystemtoensureemployeesafetyoncampus.•Disinfection:Fullydisinfectedcompanyworkplacesandlivingenvironmentsusingnewanti-pandemictools.ProtectingEmployeeSafetyThroughTargetedPandemicPreventionandControlMeasures•Communicationandtraining:Communicatedpandemicpreventionstrategiesandplansthroughmultiplemeans(e.g.,text,video,cloudclasses,andWeLinkmeetings),andprovidedtargetedtrainingforemployeesworkingindifferentscenariostostrengthenprotectionrequirements.•Healthcare:Organizedactivitiestohelpensurethehealthofemployees,suchashealthweekevents,psychologicalcounseling,andcloud-basedsportscompetitions.Wealsohelpedemployeesonoverseasassignmentsreturnhomesafelyasthisbecameespeciallydifficultduringthepandemic.Duringthepandemic,Huaweiemployeeshaveremaineddedicatedtomaintainingthecompany'soperationsandcreatingvalueforsociety.ScientificpreventionandtargetedcontrolmeasurestoensurethehealthandsafetyofemployeesHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/83HealthyandHarmoniousEcosystemHuaweihaslongbeenanadvocateofahealthywork-lifebalance.Oneofourannualcorporateeventsisthe"3+1"ActivityWeek,whereemployeesareencouragedtotakeupanewhobby,makeanewfriend,startanewsport,andreadanewbook.Weareconstantlyworkingtocreateawarmandharmoniousorganizationalclimate,whereemployeesareencouragedtotakecareofthemselvesandothers.HealthyWork-LifeBalanceatHuaweiFitnessatHuaweiIn2021,weheldthesecondHuaweiFitnessFestivalin10cities,includingBeijing,Shenzhen,andShanghai,toencourageemployeestoexerciseandinspireemployeepassion.Onthenightoftheevent,vibrantlightingilluminatedthenightskiesofourcampusesandthousandsofHuaweiemployeesparticipatedinalivelyworkoutprogram.HuaweiFitnessFestivalin2021ReadingatHuaweiHuaweihassetuplibrariesonmanyofourcampusestocreateanenvironmentthatencouragesemployeestolearnandgrow.Eachlibraryhasauniquecollectionofbookscoveringawiderangeoftopics.Ourfull-timelibrariansandonlinelendingservicesmakeiteasierforemployeestoaccesstheseresources.Wealsoorganizeonlineandofflinebookclubs,sothatemployeescanread,share,solveproblems,andgrowtogether.LibrariesandbookclubsonHuawei'scampuses"3+1"ActivityWeekOurannual"3+1"ActivityWeekkickedoffinMarch2021.Duringthisweek,employeeswereencouragedtoshowofftheirhobbies,frombotany,painting,andcookingtofitness,music,anddance.Hobbiessharedbyemployeesduringthe2021"3+1"ActivityWeek84/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportEmployeeTrainingandDevelopmentHuaweiofferstwodistinctcareerpathsforemployees:themanagerpathandtheexpertpath.Employeescanchooseeitherpathorswitchbetweenthemtofindtherightjob.Huaweialsoprovidessystematictrainingprogramsforemployeesatdifferentstagesoftheircareers.Fornewemployees,thereareprogramsforNewEmployeeOrientation(NEO),mentorship,andposition-specifictraining.Theseprogramshelpnewemployeesgettoknowthecompanybetter,learntheskillstheyneed,adapttotheirnewroles,andquicklygrow.Astheyworktheirwayup,employeesareofferedplacesinprogramsthathelpthemhonetheirexpertiseandmanagementskills.Webelievethatthebrightestmindscandevelopevenbrighterones.Allofourtrainingprogramlecturersaremanagersandexpertsintheirownfields.Webelieveinlearningthroughpracticeand47hoursAveragetimeHuaweiemployeesspentintrainingsessionsHuawei'sNEOisanimportantprogramdesignedtoshapeandpassonthecompany'scultureandcorevalues.NEOhelpsnewemployeesintegrateintothecompanyandgrowquickly.2021sawthestartofnewinnovationstoimproveexistingcourses.•Anewthree-phasetrainingprogramthatfacilitatesemployeeintegration:Beforeassumingtheirroles,newemployeeslearnaboutourcorporatecultureandtheknowledgeandskillsrequiredfortheirpositionsonadedicatedstudyplatform.AfterNEO,newemployeesarealsogivenaccesstoadesignatedlearningcommunitythathelpsthemlearnposition-essentialskillssothattheycanbetterintegrateintotheirteams.ImprovingNEOtoHelpNewEmployeesGrowFaster•Sharingreal-worldchallengestodriveinterest:Huaweistronglyencouragesbrightmindstoutilizetheirexpertisetosolvereal-worldbusinesschallenges.Overthepasttwoyears,wehaveidentifiedpressingchallengesinvariousbusinessdomains,andwehavededicatedNEOcoursesonsharingthesechallengeswithnewemployees.ThisispartofHuawei'sbroaderstrategyofengagingbrightmindsfromaroundtheworldtotacklereal-worldchallenges.•Adedicatedlearningplatformforglobalhires:AnewlearningplatformhasbeenlaunchedtofacilitatetheonboardingofnewemployeesoutsideChina.Thisplatformcurrentlyoffers57Englishcourses,includingcoursesoncorporatecultureandcommonworkplaceskills.In2021,over4,000newlyonboardedemployeesusedthisplatform.iLearningisHuawei'sdigitallearningplatform.In2021,iLearningbeganitstransitionfromalearningmanagementplatformtoalearningexperiencesystem,toprovideeasy-to-useservicesthatpreciselyreachtherighttargetaudiences.iLearningaimstobecomeanopenlearningplatformthatsupportsmorescenariosandhelpsemployeesworldwidelearntheskillstheyneedanytimeandanywhere.Bytheendof2021,iLearninghadprovidedmorethan30,000coursesandquizzes,growingemployeeknowledgeandskillsets.Theonlyproblemisthatemployeesmayhavetroublechoosingtherightcourse,iLearningMorningExpress:OneCarefullySelectedCourseforEmployeestoStudyEveryDaywithsomanyavailablefordifferentsubjects.Tosolvethisproblem,theiLearningoperationsteamlaunchedthe"iLearningMorningExpress",whichselectsonecourseeverydayfrommorethan10,000coursesandextractsthekeypointsfromthecourseintoa10-minuteaudioclip.At6a.m.everyworkday,theiLearningMorningExpressispushedtoHuaweiemployeesworldwide,coveringmanydifferentdomainslikebusiness,management,technology,industryinsight,andself-improvement.Throughout2021,theiLearningMorningExpressdelivered168clipsandrecommended132coursestoover45,000Huaweiemployees.practicingwhatwelearn.Thisphilosophydrivesourtrainingandpracticesessionstoenableindividualgrowth.In2021,weofferedawidearrangeofnewresourcestoemployeesthroughouriLearningplatform.Employeesacrossthecompanyspentanaverageof47hoursintrainingsessionsin2021andatotalof15,964Huaweiemployeesservedaspart-timetrainersandlecturers,contributingtoemployeeupskilling.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/85HealthyandHarmoniousEcosystemADiverseandInclusiveWorkforceHuaweiemploysover195,000employees,servingmorethanthreebillionpeoplearoundtheworld.107,000oftheseemployeesworkinR&D,accountingfor54.8%ofourtotalworkforce.OutsideofHuawei'spresenceinChina,64%ofourworkforceishiredlocally.In2021,wemademorethan4,000localhiresatourofficesoutsideofChina,whichispartofoureffortstocreatenewjobsandeconomicopportunitiesforthecommunitiesweserve.Asaglobalcompany,Huaweivaluesdiversityinitsworkforceandwearecommittedtocreatinganinclusiveworkplacewhereallemployeesenjoyequalopportunities.Werespectthelifestylesofallofouremployeesandaimtocreateanenvironmentthatmakesiteasyforanyonetopracticetheirbeliefsandcustoms.Forexample,wehaveopenedprayerroomsonourcampuses.Andfornursingmothers,weprovidelactationrooms.Wealsooperatefacilitieslikegyms,libraries,andcafestoprovidequalityservicesthatmeetthediverseneedsofouremployees.OurCaringforEmployeesPolicylaysouttheprinciplesandrequirementswebelievethatagoodemployermustmeettoensureemployeecare.AllHuaweisubsidiarieshavereleasedtheirowncorporateregulationsbasedonthesepolicies,aswellaslocallawsandregulations.Wehavealsoputinplaceprocesses,systems,andbaselinestocreateanopen,inclusiveworkplacethatencouragesmutualrespectanddiversity.Weareworkingtoimprovetherepresentationofwomeninleadershiprolesandbridgethegendergapthatcharacterizesthetechindustry.Whenitcomestoemployeerecruitment,promotion,andcompensation,wedonotdiscriminateagainstanyonebasedonrace,religion,gender,sexualorientation,nationality,age,pregnancy,ordisability.Weprohibittheuseofforced,bonded,orindenturedlabor,andwehavedetailed,equitableregulationsinplacetopreventtheuseofforcedlabor,coveringeachmajorphaseofanemployee'srelationshipwiththecompany,includingrecruitment,employment,andexit.Weprohibittheuseofchildlabor,andhaveeffectivepoliciesandmeasuresinplacetopreventtherecruitmentanduseofchildlabor.Wealsorequirethesameofoursuppliersandconductregularauditstoensuretheydonotuseforcedorchildlabor.Wehaveestablishedeffectivemechanismstoensurethatouremployees'voicesareheard.Forexample,wegatherouremployees'opinionsandsuggestionsthroughtheManagerFeedbackProgram(MFP),theorganizationalclimatesurvey,themanageropendayprogram,andmore.EmployeescanalsofilecomplaintsandseekassistancethroughchannelssuchasthededicatedCommitteeofEthicsandCompliance(CEC)hotlineandourinternalservicehotline.Employeeage(2021)Over502%30-5070%Below3028%Maleandfemaleemployees(2017–2021)202120202019201879.9%79.8%20.1%20.2%20.5%79.5%201720.1%79.9%20.6%79.4%MaleFemaleBachelor'sdegree41%Master'sdegree46%Other9%PhDorhigher4%Levelofeducation86/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportWeaimtobringintopmindsfromaroundtheworldwhileunleashingthepotentialofourexistingteams.Wehavesetupmorethan80labsaroundtheworldtodivedeepintofoundationaltechnologies,andorganizedglobalcompetitionstoattracttoptalent.Ouremployeescomefrom163differentcountriesandregions.AsourfounderRenZhengfeioncesaid,"Wecanabsorbtheenergyoftheuniverseoveracupofcoffee."Weareconstantlyworkingtonurtureanopenorganizationalclimateanddiverseculturethatletsseniorexpertsunleashtheirfullpotentialandgivesyoungemployeesopportunitiestoshine.Weencourageourmanagersandexpertstositdownmoreoftenwithnewemployeestohaveacoffee,chat,andbroadentheirhorizons.Wecontinuecreatingvalueforcustomerstoobtainreasonablereturns.Weoffertoppayfortoptalent,innovateandmakebreakthroughs,andcontributetothecommunitiesinwhichweoperate.AttractingTopMindsandUnleashingthePotentialofExistingTeams163nationalitiesrepresentedwithinHuawei'sworkforceTheHuaweiSoftwareEliteChallengeHuaweialsoofferschallengingopportunitiestooutstandingemployees.Whatsetsemployeesapartwithinourorganizationisnottheirseniority,buttheresultstheydeliver.Welinkemployees'personalgradesandrewardstotheircontributionsandcapabilities,andgiveboldassignmentsandfast-trackpromotionstooutstandingemployees.Asaresult,topperformerswhomakeuniquecontributionsandhaveastrongsenseofmissionandacan-dospiritaregiventhechancetogrowquicklyandtakeongreaterresponsibilities.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/87HealthyandHarmoniousEcosystemBusinessEthicsHuaweiworkshardtoconductitsbusinesswithintegrityandconformtobusinessethicsstandardsandallapplicablelawsandregulations.Thiskeyprincipleisupheldbyourhighestlevelsofmanagement.Wehaveworkedforyearstobuildacompliancemanagementsystemthatalignswithindustrybestpracticesandembedcompliancemanagementintoeveryaspectofourbusinessactivitiesandprocesses,andtheseeffortscontinuetothisday.Huaweiemphasizesacultureofintegrityandinvestsheavilytomakeitareality.Assuch,everyHuaweiemployeeisrequiredtounderstand,sign,andstrictlyadheretothecompany'sBusinessConductGuidelines(BCGs).•OurChiefComplianceOfficer(CCO)managesthecompany'soperationalcompliance,andreportstotheBoardofDirectors(BOD).Everyoneofourcompany'sbusinessdepartmentsandsubsidiarieshasalsoestablisheditsowncomplianceteam,takingresponsibilityforthemanagementoftheirownoperationalcompliance.•Weidentifyandassessriskaccordingtoapplicablelawsandregulationsandbusinessscenarios.Wehaveformulatedcontrolmeasuresthathavebeenincorporatedintoourbusinessactivitiesandprocesses.Thisguaranteeseffectivecompliancemanagementduringoperations.HuaweialsocontinuouslyoptimizesitsmanagementCompliancemanagementtraininginHuaweiFrancesystemthroughrootcauseanalysisandtargetedcorrectiveaction.•Weattachgreatimportancetocomplianceandstrivetocontinuouslyenhancethecomplianceawarenessofouremployees.Throughpublicity,training,exams,disciplinaryaction,andotheractivities,wepushemployeestofullyunderstandthecompany'sandtheirownobligationstoensurecomplianceandincorporatethisunderstandingintotheirbehaviors.•Withanopenmind,weproactivelyworkwithcustomers,partners,regulators,andotherstakeholdersoncompliance,andcommunicateourcomplianceprinciplesandpracticestothemtoconstantlyenhancemutualunderstandingandtrust.Huaweiisdedicatedtoensuringbettercomplianceacrossmultipledomains,includingbutnotlimitedtotradecompliance,financialcompliance,anti-briberycompliance,intellectualproperty(IP)andtradesecretprotection,cybersecurityandprivacyprotection,andfaircompetition.Thesecompliancerequirementsareembeddedintoourpolicies,systems,andbusinessprocesses.88/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuaweihasazero-tolerancepolicytowardscorruptionandbribery.Ineverycountrywhereweoperate,weconductallbusinessunderalegalframeworkthatsupportsfaircompetitionandopposesbriberyandcorruption.Weplaceourobligationtofightbriberyandcorruptionaboveourowncommercialinterests,andweareworkingtoensurethatourbusinessisconductedinafairandtransparentmanner.•Wearestrengtheningouranti-briberyandanti-corruptioncompliancesysteminfourways:acultureofcompliance,governanceandoversight,complianceriskassessmentsandprevention–discovery–responsetechniques,andcontinuousoperations.Weregularlyconductcomplianceauditstoidentifypotentialcompliancerisksacrossallbusinessscenarios,andoptimizeandoverseetheimplementationofrelatedpoliciesandprocesses.•Huaweiworkshardtocreateacultureofintegrityandenhanceitscompliancecapabilities.Allemployeesarerequiredtostudy,sign,andcomplywiththecompany'sBCGsandanti-corruptionpolicies.OurcustomizedtrainingaddressesthedifferentriskscenariosindifferentcountriesandregionswhereHuaweioperates,andisavailablefordifferentemployeegroups.Forexample,besidesgeneraltrainingforallemployeesandtargetedtrainingforthoseinhigh-riskpositions,enhancedtrainingisAnti-CorruptionandAnti-BriberyComplianceprovidedtospecialistsinthecomplianceteamandtoemployeesplayingkeyrolesinbusinessprocesses.Trainingcontentisdistributedinmanyways,includingvideo,forums,anddedicatedonlinetrainingchannels.AllpartnersofHuawei–whethertheyaredirectlyprovidingservicesandfulfillingtheircontractualobligationstoHuawei,orprovidingservicesandfulfillingtheircontractualobligationstoHuaweicustomersorotherthirdpartiesonbehalfofHuawei–arealsorequiredtocomplywithallapplicablelawsandregulations,industryethicalstandards,andHuawei'sAnti-corruptionPolicyforPartners,HuaweiSupplierSocialResponsibilityCodeofConduct,CodeofConductforPartnersofHuawei,andHonestyandIntegrityAgreement.•Wehaveestablishedcomplaintchannelsthroughwhichemployeesandotherpartiescanreportviolations.WhenHuaweireceivesacomplaint,welaunchaninvestigationandprotectthepersonlodgingthecomplaintfromanyformofthreatorretaliationbykeepingtheiridentitysecret.•Wecontinuallycommunicatewithourstakeholders(e.g.,industrypeers,consultants,partners,andNGOs)aboutcompliance,clarifyingourpositionandviewsonanti-briberyandanti-corruption.ThishelpsensurethatallstakeholdershaveaclearunderstandingofHuawei'scomplianceregulationsandpolicies.FordetailsaboutHuawei'sstatementsandpoliciesonanti-corruptionandanti-bribery,pleasevisitthe"Policies"sectionat:https://www.huawei.com/en/sustainability/sustainability-reportHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/89HealthyandHarmoniousEcosystemHuaweiisdedicatedtoitslong-terminvestmentsintoR&Dandtocontinuouslyenrichingitsintellectualproperty(IP)portfolio.Huaweiisoneoftheworld'slargestpatentholders.Bytheendof2021,Huaweiheldmorethan110,000activepatentsacrossmorethan45,000families.ThecompanybelievesthatrespectingandprotectingIPisthebedrockofinnovation.Asafollower,practitioner,andcontributorofIPrules,aswellasaninnovator,HuaweiinvestsheavilyinIPprotectionandrespectstheIPofothers.Huaweihasreachedcross-licenseagreementswithmajorICTcompaniesaroundtheworld,andworkstirelesslytoimprovetheenvironmentforprotectinginnovationandIPintheindustryandacrosscountriesandregions.HuaweiiscommittedtoprotectingitsownIPandtradesecrets,whilerespectingthoseofothers.Weexplicitlyprohibitouremployeesfromimproperlyacquiring,disclosing,using,ordisposingofthetradesecretsofothers.ThekeymeasuresHuaweihastakentoprotectthetradesecretsofothersinclude:•IssuingourRegulationsonRespectingandProtectingThirdPartyTradeSecrets,whichsetoutclearrulesthatemployeesmustfollowtorespectandprotectthetradesecretsofothersduringbusinessactivitiesandIntellectualPropertyandTradeSecretProtectionensurethatemployeescarryoutbusinessactivitieslegallyandinaccordancewithourcontracts.•EmbeddingtradesecretprotectionrequirementsintobusinessprocessessuchasR&D,sales,procurement,andHR,conductingregularreviews,andcontinuouslyimprovingmanagementmechanismsbytakingawaylessonsandcasestudiesfromday-to-dayoperations.•Organizingpublicity,training,andexamsontradesecretprotectionforallemployees,sothattheyarefullyawareoftheirobligationsandresponsibilitiesregardingtradesecretprotectioncompliance.•Conductingsupervision,includingchecksandaudits,toexamineeffortsaimedatprotectingthetradesecretsofothersandthusensureeffectiveimplementationofpolicies,rules,andprocesses.•Establishinganaccountabilitysystembasedonofficialcorporatepolicies,suchastheAccountabilityProtocolforInfringementsofOtherParties'TradeSecretsandtheAccountabilityRatingCriteriaforInformationSecurityViolations,toholdviolatorsaccountableforanytradesecretviolations.Everyyear,Huaweiinvestsover10%ofitssalesrevenueintoR&D.Huaweihasoneofthelargestpatentportfoliosintheworld.ThepatentsheldbyHuaweiarebroadlyrecognizedacrosstheindustry.In2021,ourtotalR&DexpenditureamountedtoCNY142.7billion,equaling22.4%ofthecompany’stotalrevenue.Overthepastdecade,Huawei’stotalR&DinvestmentsurpassedCNY845billion.In2021,107,000employees,representing54.8%ofHuawei’stotalworkforce,workedinR&D.Bytheendof2021,Huaweiheldatotalof110,000+activepatents,across45,000+patentfamilies.Intermsofthenumberofpatentsgrantedin2021,HuaweirankedNo.1atboththeChinaNationalIntellectualPropertyAdministrationandtheEuropeanPatentOffice,andNo.5attheUnitedStatesPatentandTrademarkOffice.PatentpanoramareportspublishedbyindependentthirdpartiesshowthatHuaweiisanindustryleaderinthefieldsof5G,Wi-Fi6,andH.266.MorevendorsaresigningagreementswithHuaweitouseourpatentedtechnologies,expandingfromthecommunicationsindustrytointelligentvehicles,smarthomes,andIoT.90/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuaweicomplieswithapplicablelawsandregulationsofthecountriesandregionsinwhichitoperates.TheseincludeapplicableexportcontrolandsanctionlawsandregulationsoftheUN,China,theUS,andtheEU.Wehaveinvestedimmenseeffortsovertheyearstoestablishamatureandsustainableinternalsystemfortradecomplianceinlinewithstandardindustrypractices,andhaveworkedtirelesslytoconstantlyimprovethissystem.Wehavealsoestablishedanintegratedtradecompliancemanagementorganizationwithinthecompany.Thisorganizationmanagestradecomplianceacrossbothgroupfunctionsandfieldoffices.Inaddition,wehaveestablishedspecialistteamsinourglobalofficesthatmonitorchangestolocallawsandregulations,integrateTradeCompliancetradecomplianceintothecompany'srulesandprocesses,andmanageandoverseetradecomplianceineachlinkofourbusinessoperations,rangingfromprocurement,R&D,andsalestosupplyandservices.Huaweicontinuouslypushesemployeestofurthertheirowntradecomplianceawareness.EmployeesmustsignHuawei'sBCGseachyear,whichincludecommitmentstoobservingapplicableexportcontrollawsandregulations.Huaweiprovidestrainingsessionsontradecompliancetomanagersandemployeesacrossthecompany,withtrainingtakingvariousformsacrossdifferentsessions.Theseefforts,combinedwithtargetedtrainingforspecificbusinessscenarios,ensureemployeesfullyunderstandtheirownresponsibilitiesandobligations,aswellasthoseofthecompany,regardingexportcontrol.Huaweihaslongplacedfairtradeasapriorityforoperationalcompliance,andhasestablishedorganizations,processes,regulations,andrulestoensurecompetitioncompliance.•Huaweihasestablisheddedicatedcomplianceorganizations,appointedcomplianceofficersineachregionwhereitoperates,andputinplacearangeofsupportingregulationsandrules,includingguidelines,implementationrules,managerandemployeestatements,partnercommitmentletters,aswellastrainingmaterialsoncompliancewithcompetitionlaws.•Huaweihasembeddedcompetitioncompliancerulesandregulationsintoitsmanagementsystemsandbusinessprocesses.Wecustomizepoliciesforeachcountrybasedonlocalcompetitionlaws.Weupdatecomplianceobjectiveseveryyear,andoverseetheFairCompetitionandTradeachievementoftheseobjectives.Wealsoprovidededicatedtrainingforcomplianceofficerstoensurethatrelatedrulesandguidelinesarefullyimplemented.•Huaweitakesnumerouspracticalmeasurestoensurecompetitioncompliance,includingconstantbusinessprocessoptimizationandlong-termmechanismsforindependentsalesconsultantmanagement,duediligenceonthird-partysuppliers,andtheoptimizationofbaselinesforsalescontractcompliancewithcompetitionlaws.Huaweiisactivelycontributingtoafairmarketenvironmentbyraisingemployeeawarenessandfullyadheringtothefaircompetitionprincipleinourbusinessoperations.FordetailsaboutHuawei'sStatementofCompliancewithExportControlRegulations,pleasevisitthe"Policies"sectionat:https://www.huawei.com/en/sustainability/sustainability-reportSummertrainingforHuaweicomplianceofficersHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/91HealthyandHarmoniousEcosystemSupplyChainResponsibilitiesProcurementCSRManagementSystemHuaweihasestablisheditsprocurementCSRmanagementsystembasedontheOECD'sDueDiligenceGuidanceforResponsibleBusinessConductandtheIPC-1401CorporateSocialResponsibilityManagementSystemStandard,andincorporatedCSRrequirementsintoourprocurementstrategyandbusinessprocesses.OurSupplierCSRAgreementispreparedaccordingtotheResponsibleBusinessAlliance(RBA)CodeofConductandtheJointAuditCooperation(JAC)SupplyChainSustainabilityGuidelines.HuaweirequiresthatallsupplierssignandabidebytheSupplierCSRAgreement.Thisagreementcoversfiveareas:laborstandards,healthandsafety,environmentalprotection,businessethics,andmanagementsystems.Huaweiseestheuseofchildlabororforcedlaborasred-lineissues,andwehavezerotoleranceforviolationsofCSRredlines.Huawei'sCSRredlinesinprocurementinclude:1.Useofchildlabor.2.Useofprisonlabor(includingusingprisonsassuppliersorsubcontractors)orforcedlabor(includingrestrictingpersonalfreedomordetainingpersonalidentitydocuments.)3.Violence,physicalpunishment,sexualharassment,illegalbodysearches,cross-genderbodysearches,andothersimilarbehavior.4.Salarypaymentsbelowthelocalminimumwage.5.Negligencethatleadstomajorfiresorexplosions.6.Workingconditionsthatseriouslyendangerpersonalhealthandsafetyorleadtofatalfieldincidents.7.Illegalemissionsofanyhazardousortoxicwastes,includingwastewater,gas,andresidue.8.Negligencethatleadstomediacrisesorseriousmassdisturbances,suchascollectivelabordisputes,massbrawls,masspoisoning,unnaturaldeaths,orotherincidentscausingcasualties.9.UnsafeandunhealthyworkingenvironmentsthatlackHuaweimanagessustainabilityinlinewithindustrybestpracticesandgloballyrecognizedstandards.Sustainabilityplaysavitalroleinourprocurementstrategyandisakeypartofoursuppliermanagementprocess,fromsupplierqualificationandselectiontoperformanceappraisalsandportfoliomanagement.Weregularlyappraisesuppliers'sustainabilityperformanceandfacilitatetheircontinuousimprovementbyworkingcloselywithcustomers,suppliers,industryorganizations,andotherstakeholders.effectivemeasurestopreventpotentialhealthandsafetyaccidents,ordiseasesthatmaybecausedduetoexposureinworkplaces(e.g.,collectiveinfections).10.Corruptionordishonestactsthatviolatetherequirementsof"nobribery,nogifts,noconflictsofinterest,nofalsification,nocuttingcorners,nofraud,andkeepingpromises".Toachievethegoalofsustainableprocurement,weregularlydeliverCSRtrainingtoallprocurementstaff.ThistrainingcoverssupplierCSRagreements,redlines,processes,andauditpracticesrelatedtoCSRinprocurement.CSRrequirementsareincorporatedintotheperformanceindicatorsofallteamsinourprocurementdepartment.SupplierRiskRatingandAuditingHuaweiadoptsarisk-basedapproachtosupplieraudits.Everyyear,weassessallmajorsuppliers,whichrepresent90%ormoreofourprocurementspending.Weassigneachsupplieroneofthreeriskratings(high,medium,orlow)afteracomprehensiveassessmentofindicatorssuchasprocurementamount,materialcategory,supplierlocation,CSRperformancescore,andpreviousauditrecords.Wedevelopanannualsustainabilityauditplantodealwithsuppliersthatareassessedasposingmediumorhighrisk.Weperformonsiteassessmentsonallpotentialsupplierstoexaminetheirsustainabilitysystems,theircapacitytocomplywithapplicablelaws,regulations,andtheSupplierCSRAgreement,andtheiractuallevelofcompliance.NocompanythatfailstheassessmentiseligibleforconsiderationtobecomeaHuaweisupplier.In2021,weupdatedourSupplierCSRAuditChecklistbyreferencingindustrybestpracticestobettermeetcustomerrequirements.Thisupdatedchecklistsethigherrequirementsforcarboninventoriesandcarbonemissionsreduction,aswellastheresponsiblemanagementofminerals.WeconductsupplierCSRauditsusinginternationallyrecognizedmethodssuchasonsiteinspections,employeeinterviews,managementinterviews,documentationreviews,andonlinesearches.WeusetheBlueMapdatabasedevelopedbytheInstituteofPublicandEnvironmentalAffairs(IPE)toassesssuppliers'compliancewithenvironmentalrequirements.Priortoaudits,weprovidesupplierswithcoachingonCSRself-assessments.92/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportDuringaudits,wearrangeforexpertstoworkonsitewithsupplierssothattheycanidentifyproblemsandproviderecommendationsforimprovements.In2021,weassignedCSRriskratingstomorethan1,600majorsuppliersandconductedonsiteauditson318suppliers.NumberofsuppliersonwhichHuaweiconductedCSRauditsonsite(2017–2021)31819328031928720172018201920202021SupplierCSRauditfindingsin202144.1%Healthandsafety26.8%Laborstandards11.7%Environmentalprotection1%Businessethics16.4%ManagementsystemsIfwefindanissueduringanonsiteaudit,wehelpthesupplierresolvetheissuethroughtheCRCPEmethodology(check,rootcauseanalysis,correct,prevent,andevaluate).Thismethodologyhelpssuppliersidentifycommonproblemsanddeveloptargetedsolutions.SupplierPerformanceManagementEveryyear,Huaweiappraisessuppliers'sustainabilityperformancebasedontheirsustainabilityachievements,onsiteauditresults,andimprovementsmade,aspartoftheiroverallperformanceappraisals.Duringthisprocess,wealsoconsiderhowtheymanagethesustainabilityoftheirownsuppliers.WeencourageoursupplierstodevelopaCSRmanagementsystembasedontheIPC-1401CorporateSocialResponsibilityManagementSystemStandard.Suppliersareclassifiedintofourgrades(A,B,C,orD)basedontheirsustainabilityperformance.In2021,weappraisedthesustainabilityperformanceofmorethan1,600majorsuppliers.Theamountofbusinesswedowitheachsupplierdependspartlyontheirsustainabilityperformance,whichisalsoafactorconsideredinourtendering,supplierselection,portfoliomanagement,andotherprocesses.Wheresuppliersareequallymatchedinotherfactors,thosethatperformbetterinsustainabilityaregivenpriorityforshareofbusinessorbusinessopportunities.Thereverseistrueforlow-performingsuppliers.Dependingonthesituation,wemayinstructsupplierswithpoorsustainabilityperformancetoresolveexistingissueswithinaspecifiedtimeframe.Alternatively,wemayreducetheirshareofbusinessorofferthemfewerbusinessopportunities.Wemayeventerminateourbusinessrelationshipswiththosethatdisplayexceptionallypoorsustainabilityperformance.SupplierCapabilityImprovementHuaweiregularlyprovidessustainabilitytrainingandcoachingforoursuppliers.Weaskoursupplierstoadoptindustrybestpracticesandembedsustainabilityrequirementsintotheirbusinessstrategiestoreduceriskandboostefficiency.Weencourageoursupplierstolearnfromeachotherandgrowtogetherthroughbenchmarking.Basedonourmanyyearsofexperience,wehavedevelopedacost-effectiveandefficientLearningbyBenchmarkingmodelforsuppliers.Thismodelincludesthefollowingsteps:1.Settingpriorities:WeasksuppliersabouttheirCSRconcerns,listthemostcommonissues,andranktheminorderofpriority.2.Identifyingbenchmarks:Weidentifywhichsuppliersperformbestandanalyzetheirbestpractices.3.Sharingandlearning:Weinvitethebenchmarksupplierstosharetheirbestpracticesandencourageallsupplierstolearnindustrystandardsandnorms.4.Implementation:Weaskexpertstodeveloptemplatesandchecklistsandhelpsuppliersassesstheirownperformanceandintroducebestpractices.In2021,wehelpedaddresssupplierconcernsthroughonlinemeetings,includingissuessuchaspandemicpreventionandcontrol,employeecare,employeecommunication,fireprevention,hotwork,andtier-2suppliermanagement.Wesharedideasandcasestudieswithsuppliers,anddraftedguidelinesfortheirself-assessments.Atotalof1,000peoplefrom200suppliersparticipatedinthesemeetings.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/93HealthyandHarmoniousEcosystemHuaweiactivelylistenstocustomerrequirementsandexpectationsregardingsupplychainsustainability.Throughcommunicationwithcustomers,weseektounderstandnewglobaltrendsinCSR;responsiblebusinessconduct(RBC);environmental,social,andgovernance(ESG)trends;andtheprogressofsupplychainduediligencelegislationinEuropeancountries.Wealsoconductself-assessmentsbasedontheOECD'sDueDiligenceGuidanceforResponsibleBusinessConductandsharetheassessmentresultswithcustomers.In2021,Huaweicommunicatedwithmorethan70customersspecificallyonCSRduediligencemeasuressuchassupplychaintraceability,supplierwhitelists,andcomplaintandappealmechanisms.HuaweialsorecommendedthreesuppliersforjointauditsorganizedbytheJointAuditCooperation(JAC),anassociationoftelecomcarriers.TheJACassignedexpertsfromindependentthird-partyauditorganizationstoassessthesesuppliersonsite.Theaverageauditscoreofthethreesupplierswas86,andtheauditresultsweresharedwiththeJAC.EnhancingInformationExchangeandJointAuditswithCustomersforaMoreTransparentSupplyChainHuaweiprovidesbothonlineandofflineCSRtrainingforsupplierseveryyear.WeintroducetheRBAandJACindustrystandards,industrybestpractices,aswellasHuawei'ssupplierCSRagreements,redlines,auditpractices,andmanagementregulationsrelatedtoCSRinprocurement.WealsoencourageoursupplierstoincorporateCSRrequirementsintotheirinternalmanagementsystemsandoperations.HuaweiprovidesdedicatedtrainingonCSRredlinesandspecificscenariosforsuppliersinkeyindustriesorregionsandotherkeysuppliers.Wealsosolicittrainingtopicsandqualitycasestudiesfromsuppliers,andencouragethemtolearnfromeachother.HuaweiencouragessupplierstodeveloptheirCSRstrategiesthroughSWOTanalysisinlinewiththeIPC-1401CorporateSocialResponsibilityManagementSystemStandard.WealsoencouragethemtotakethefollowingmeasurestoraisethebarforCSRmanagement,inadditiontocomplyingwithlegalrequirements:(1)embeddingfivelevelsofCSRobligations(lawsandregulations,ethics,industrySupplierCSRTrainingstandardsandbestpractices,customerrequirements,andstrategicneeds)intotheexistingISO14001/ISO45001-basedmanagementsystem,(2)integratingCSRrequirementsintotheoperationsofallfunctionaldepartments,and(3)establishingacustomer-orientedCSRmanagementsystemforself-management.Huawei'sCSRtrainingforsuppliersStakeholderEngagementandCooperationStakeholderengagementandcooperationareessentialtoasustainablevaluechain,andHuaweiactivelyengagesinduediligenceacrosstheglobalsupplychain.Specifically,wecommunicatewithotherindustryplayers,auditsupplierstogetherwithcustomers,helpsuppliersimprovetheircapabilities,andpromoteindustrystandardizationtojointlycreatearesponsiblesupplychain.94/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuaweiactivelycollaborateswithindustryorganizations,includingtheRBA,JAC,IPC–AssociationConnectingElectronicsIndustries,andChinaElectronicsStandardizationAssociation(CESA).Thishelpsusalignwithindustrytrends,sharebestpracticesinCSRmanagement,translateindustrybestpracticesintoindustrystandardstogetherwithourpartners,anddrivecontinuousimprovementacrossthewholeindustry.In2021,HuaweiledtherevisionoftheIPC-1401CorporateSocialResponsibilityManagementSystemStandard,whichwasthenreleasedbyIPCglobally.Since2014,morethan20industryorganizationsand300companieshavesentmorethan400expertvolunteerstoparticipateintheformulationofthestandard.ThestandarddefinesCSRasresponsiblebusinessconductandresponsibleproductsandservices.ItrequirestheinclusionofCSRasabusinessrequirementincorporatestrategiesandactivitiesoffunctionaldepartmentsbyaligningwithfivelevelsofcomplianceobligations:lawsandregulations,ethics,industrystandardsandbestpractices,customerrequirements,andstrategicneeds.ThisstandardwillhelpenterprisesestablishdifferentiatedcompetitivenessbypursuinginnovationinCSRpractices,adoptconsistentstandards,andquicklyalignwiththeCSRrequirementsoftheentiresupplychain,bothupstreamanddownstream.ActivelyParticipatinginIndustryExchangesandCollaborationtoAccelerateIndustryStandardizationIPC-1401A2021-OctoberCorporateSocialResponsibilityManagementSystemStandardSupersedesIPC-1401March2017AninternationalstandarddevelopedbyIPCHuaweiledtherevisionoftheIPC-1401CorporateSocialResponsibilityManagementSystemStandardaspartofitseffortstopromoteindustrystandardizationResponsibleManagementofMineralsHuaweiiscommittedtotheresponsiblemanagementofmineralsandrequiresthesameofoursuppliers.Wehaveincorporatedrelatedrequirementsintosupplierqualification,supervision,andauditprocessesaspartofourCSRmanagementsysteminprocurement.Asadownstreamcompanyinthemineralsupplychain,Huaweidoesnotdirectlypurchaseanyminerals,andthereareatleast7tiersbetweenHuaweiandminingcompanies.Huaweirequiresthatoursuppliersdonotpurchaseconflictmineralstoensurethattheirproductsneverdirectlyorindirectlyfundarmedconflictsoranyotherinhumaneact.HuaweialsoactivelyworkswithglobalindustrypeersthroughindustryinitiativesliketheResponsibleMineralsInitiative(RMI)andtheResponsibleCobaltInitiative(RCI).Togetherwithpartnersbothupanddownthesupplychain,weconductsupplychainsurveys,createacompletelistofallrelatedsmelters,andpushthesesmelterstoapplyforormaintaintheResponsibleMineralsAssuranceProcess(RMAP)certification.Huaweihasestablishedarisk-basedsystemfortheresponsiblemanagementofmineralsbasedontheOECD'sDueDiligenceGuidanceforResponsibleSupplyChainsofMinerals.Eachyear,throughthissystem,weidentifysuppliersoffiveconflictminerals:tin,tantalum,tungsten,gold(3TG),andcobalt.UsingtheConflictMineralsReportingTemplate(CMRT)andtheCobaltReportingTemplate(CRT),weurgesupplierstoidentifyandinvestigateallsmelterswithintheirsupplychain.Wealsorequirethatallidentifiedsmeltersdonotpurchasemineralsfromconflict-affectedandhigh-riskareas(CAHRAs),andurgesmeltersthathavenotobtainedtheRMAPcertificationtogetthecertificationwithinaspecifiedtimeframewhennecessary.In2021,Huaweicollectedalistof225smeltersinitssupplychainsurvey.Wehavesharedtheresultsofourduediligenceregardingresponsiblemineralmanagementwithmorethan60customers.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/95HealthyandHarmoniousEcosystemCommunityResponsibilitiesHuaweiisanactive,productivememberofthecommunitiesinwhichitoperates.Wefulfilloursocialresponsibilitiesandgivebacktolocalcommunitiesbymakingalasting,positivedifferencewithdigitaltechnology.Weworkcloselywithgovernments,customers,enterprises,andnon-profitorganizationstolaunchsocialcontributionprograms.Weworkhardtodevelopskilledlocalworkforcesandprotecttheenvironment.Wealsomakedonationstohelppeopleinneed.US$150millionwillbeinvestedintheSeedsfortheFuture2.0programoverthenextfiveyears,whichwillfocusondigitaltalentcultivationandbenefitoverthreemillionmorepeopleHuawei'sflagshipCSRprogramSeedsfortheFutureaimstoshareICTknowledgewithyoungstudentsbyshowingthemhowICTisappliedandhowtheICTindustryworks.Duetotheongoingpandemic,wehavemovedtheSeedsfortheFutureprogramonline.In2021,weheldneweventsandintroducednewactivities,attractingmorethan3,600studentsfrom118countries.Morethan1,300stakeholders,includinginternationalorganizationrepresentatives,localgovernmentofficials,professors,andscholars,supportedtheprogramandattendedrelatedactivitieslastyear.In2021,wealsohostedourfirstGlobalTech4GoodCompetition.Thecompetitionaimstoraisestudents'awarenessofchallengestolocalsustainabledevelopment,encouragestudentstousetheICTskillstheylearntoexploresolutionsthatarebothtechnicallyandcommerciallyviable,andhelpstudentsturntheirdreamsintoreality.ThecompetitionattractedstudentsSeedsfortheFutureProgram'sFirstGlobalTech4GoodCompetitionfromover50countriesandmorethan30,000peoplewatchedthechampionshipround.TheteamfromThailandgotthefirstplace.Theydevelopedafasteremergencytreatmentsolutionthatcanhandledifficultroadconditions.Thisteamused5G,AI,andcloudtodesignanoptimaldeliveryrouteandreal-timeinteractionsolution.Byreducingdelaysontheroad,emergencypatientscangettohospitalsfaster,increasingtheirlikelihoodofsurvival.ThesecondandthirdplaceprizeswereawardedtotheVietnameseteam'ssignlanguagetranslatorappandtheLibyanteam'ssolutionforprematurebabies,respectively.TheAudienceAwardwenttotheBrazilianteam'seasywatersupplysolution.Studentsfromwinningteamsreceivedtwomonthsoftutoringtoencouragethemtochasetheirdreamsandcreateabetterfuturewiththeirloveandrespectforlife,theearth,andnature.ParticipantsoftheSeedsfortheFutureprogramattendingonlinetrainingTheteamfromThailandthatwonfirstGlobalTech4GoodCompetitionSeedsfortheFuture2.0Program:CultivatingDigitalTalentforaFullyConnected,IntelligentWorldInthedigitaleconomy,digitaltalentplaysanimportantroleindrivingdigitaltransformationandeconomicgrowth.Huaweiiscommittedtocultivatingdigitaltalentinthecountriesandregionsinwhichitoperates.InJuly2021,HuaweilauncheditsSeedsfortheFuture2.0program.Throughthisupdatedprogram,HuaweiplanstoinvestUS$150millionoverthenextfiveyearstocultivatedigitaltalent.Thisprogramisexpectedtobenefitoverthreemillionmorepeople.Sinceitslaunchin2008,theSeedsfortheFutureprogramhasattractedparticipantsfrom137countriesandregions,andbenefitedmorethan12,000students.96/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport4,000BolivianteachershaveparticipatedintheICTtrainingprogramOnMarch31,2021,Bolivia'sMinistryofEducationhostedthe2021SeedsfortheFutureProgramOpeningCeremonyandtheSecondTalentTrainingProgramSigningCeremony,markingthelaunchofthefifthSeedsfortheFutureprograminBolivia.Atotalof95stakeholdersattendedtheevent,includingBolivia'sMinisterofEducationandfourDeputyMinistersofEducation,officersfromtheChineseEmbassyinBolivia,andrepresentativesofBolivianuniversitiesandthemedia.Attheevent,HuaweiandtheBolivianMinistryofEducationannouncedastrategicpartnershipintalentdevelopment.Together,thetwopartiesselectedmorethan20BolivianstudentstoparticipateintheSeedsfortheFutureprogram.TheyalsoexpandedtheprogramtoprovideICTtrainingforBolivianteachers.Throughthegovernment'sonlineeducationplatform,teacherscanaccessHuawei-developedcoursesinSpanishfreeofcharge,coveringtopicsfrom5GandcloudcomputingtoIPnetworksandIT.ThesecoursesareintendedtoimprovetheICTskillsofteachersacrossthecountryandhelpthemcultivatemoredigitaltalenttoadvanceBolivia'sdigitaleconomy.Bytheendof2021,about4,000teachershadbeentrained.SeedsfortheFutureBolivia:AssigningtheBrightestMindstoDevelopEvenBrighterOnesOpeningceremonyofSeedsfortheFutureBolivia1,661Japanesehighschoolstudents(about50%ofwhomweregirls)havereceivedICTtrainingaspartoftheSeedsfortheFutureprogramCultivatingDigitalTalentThroughICTTrainingatJapaneseHighSchoolsJapanesehighschoolstudentsatanICTtrainingsessionIn2021,HuaweilaunchedtheSeedsfortheFutureprograminJapantoprovideICTtrainingforhighschoolstudents.ThisprogramaimstohelpthestudentsbetterunderstandtheICTindustryandcultivatepotentialdigitaltalent.Theprograminvitedprofessorsandscholarsfromwell-knownJapaneseuniversitiestosharebasicICTknowledge,applications,andsuccessstoriesfromaroundtheworldwithhighschoolstudents.Throughthisprogram,studentshavebroadenedtheirhorizonsandimprovedtheirunderstandingoftheICTindustrybylearningabouthowICThaschangedandacceleratedsocialandindustrialdevelopment.Attheendoftheprogram,thestudentsparticipatedinacompetitiononaddressingsocialissueswithcreativeICTsolutionsandthewinnerswereinvitedtovisitHuawei'sheadquartersinChina.Bytheendof2021,1,661highschoolstudents(about50%ofwhomweregirls)in16citiesacrossfiveJapaneseprefectureshadparticipatedinthisprogram.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/97HealthyandHarmoniousEcosystemCultivatingDigitalTalentbyPartneringwithUniversitiesandSponsoringInternationalCompetitionsHuaweiisamainpartnerofinternationalcompetitionorganizationssuchastheInternationalCollegiateProgrammingContest(ICPC).Bysponsoringglobalstudentcompetitionsandtrainingactivities,Huaweiaimstoprovidestudentswithaplatformthattheycanuseforadvancedtrainingandtopursueinnovation.In2021,Huaweiorganizedmultipletrainingcampsandworkshopstogetherwithitspartners.Aspartoftheseprograms,weinvitedmorethan40expertstogivelecturesontheindustrialtechnologiesinvolvedinbasicresearchinmathematics,physics,andchemistry.Wehavealsosupportedinternationalcompetitionsbydesigningproblemsforparticipants,providingtrainingplatforms,andcoachingstudentsonproblem-solvingtechniques.Todate,Huaweihassharedmorethan18cutting-edgesubjectareasforindustrialapplicationwithstudents,andprovidedresearchandexperimentalplatformsorientedtothefutureofinformationterminals,computing,andconnectivity.Thesecompetitionsandplatformsaimtohelpstudentsfromaroundtheworldlearnandimprovetheirownexpertiseandskills.Forexample,inthefirstphaseoftheICPCTrainingCamppoweredbyHuawei,576studentsfromaroundtheworldparticipatedinonlinealgorithmtrainingthatwouldbetterpreparethemfortheirfuturestudyanddevelopmentinthefield.Huaweihopesthattheseexpertlectures,onlinelearningactivities,trainingprograms,andcompetitionswillenablestudentstobetterunderstandreal-worldtechnicalchallenges,andencouragethemtoexplorechallengingsubjectareasthatadvancescienceandtechnologyandpropeltheindustryforward.Winners,includingthetop30contestantsandninecoaches,receivinggiftsfrommembersoftheorganizingcommitteeoftheCommunicationRoutingChallenge,hostedbyHuaweiandICPC,thatattractednearly8,000participantsfromallovertheworld98/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportProvidingOne-stopServicestoHelpDevelopersSeizeOpportunitiesHUAWEIDevelopersisHuawei'sopenserviceplatformforglobaldevelopers.Itprovidesdeveloperswithone-stopservicesfromappdevelopmentandoperationstomonetizationandbrandcommunication.ThisispartofHuawei'seffortstocreateanopeninnovationecosystemwithdevelopersforsharedsuccess.Morethan5.4milliondevelopersfromaroundtheworldhaveregisteredwithHUAWEIDevelopers.HUAWEIDevelopersalsohasanonlineDevelopersTrainingplatformthatoffersaseriesofonlinecourses,andhostsanumberofinitiativestosupportdevelopers,includingtheDIGIXinnovationcontests,HUAWEIDeveloperDayandotheronsiteactivitiesfordevelopers,theShining-StarProgram,HUAWEIDeveloperGroups,HUAWEIStudentDevelopers,andHUAWEIDeveloperExperts.Moreandmoredevelopersfromaroundtheworldaredirectlyorindirectlybenefitingfromtheprogram.InMarch2021,HUAWEIDeveloperslaunchedtheHUAWEIWomenDevelopers(HWD)program.Thisprogramaimstoempowerwomendevelopers,providethemwithnecessaryresources,andinspireinnovationfromwomeninthetechindustry.TheHWDprogramParticipantsoftheHUAWEIStudentDevelopersprogram5.4million+developersfromaroundtheworldhaveregisteredwithHUAWEIDevelopershashostedseveralofflinesummitsaroundtheworldwhereoutstandingwomenfromvarioustechsectorssharedtheirtechnology,experiences,andstories.Inthe2021HUAWEIHMSAppInnovationContest,anewTechWomen'sAwardwasaddedtomotivatewomendeveloperstoinnovate.Toencouragemorewomendeveloperstoworkinthetechsector,theHWDprogramalsodonatedexamvouchersworthonemillionChineseyuanto2,000femalestudentsstudyingscience,technology,engineering,andmathematics(STEM)fromsecondaryandhighervocationalschools.TheexamsarepartofHuawei's1+Xmobileappdevelopmentvocationalskillscertificationprogram.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/99HealthyandHarmoniousEcosystemHuaweiASEANAcademy:CultivatingMoreICTTalentforaDigitalASEANInnovativeICTtalentisurgentlyneededtoadvancethedigitaleconomyinASEAN.HuaweiisdoingitspartthroughitsASEANAcademy,whichaimstocreateanICTtalentecosystemuponwhichastrongerdigitaleconomycanbebuilt.In2021,theHuaweiASEANAcademyorganizedvarioustalentdevelopmentprogramssuchastheSeedsfortheFutureprogram,ASEANLectures,ICTskilltrainingcamps,andICTskillcertificationsandcompetitions.Theseprogramswererunincollaborationwithregionalgovernments,ministries,ICTindustryorganizations,leadinguniversities,andICTecosystempartners.Theyhavesofarattractedmorethan100,000peoplefromASEANcountries,includingMalaysia,Indonesia,andThailand.Throughitspartnershipwith262leadinguniversities,theHuaweiICTAcademyhasprovidedtrainingandcertificationsformorethan15,000students.In2021,HuaweiandtheASEANFoundationjointlyheldthefirstDigitalTalentSummit,wherethetwopartiesreleasedthe2022AsiaPacificDigitalTalentInsightsreportandsignedaMemorandumofUnderstanding(MoU)forSeedsfortheFuturetodevelopaskilleddigitalworkforcefortheASEAN.HuaweiwillcontinuetoinvestinhelpingASEANcountriesdevelopmoreICTtalentinthefuture.15,000+studentshaveparticipatedinthetrainingandcertificationprogramsprovidedbytheHuaweiICTAcademyinASEANincollaborationwith262leadinguniversitiesHuaweiICTtraininginIndonesia100/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport400+socialcontributionprogramsrunbyHuaweiaroundtheworldCreatingValueforLocalCommunitiesHuaweiworkshardtodoitspartasaresponsiblecorporatecitizen.Byworkingwithpartnerssuchasinternationalorganizations,localgovernments,andregionalorganizations,weactivelyrunsocialcontributionprogramsinthecountriesandregionsinwhichweoperate.In2021,Huaweiranmorethan400socialcontributionprogramsaroundtheworldtobenefitandsupportlocalcommunities.Throughourtechnologicalinnovationsandbusinessactivities,wepromotelocaldigitaleconomies,cultivatedigitaltalentinlocalcommunities,protecttheenvironment,andhelpthoseinneed.TheHuaweiSparkAcceleratorProgramSupportsStartupsWorldwideTheHuaweiSparkAcceleratorprogramaimstouseitsglobalbusinessandtechnologyplatformstobuildaninclusiveecosystemforstart-ups,incubateandsupportglobalstartups,andpromotesocialandeconomicprosperityinthecountriesandregionswhereweoperate.SinceitslaunchinSingaporeinAugust2020,theHuaweiSparkAcceleratorprogramhasattractedover1,400startupsfrommorethan90countries.Theprogramhassupportedmorethan60startups,overhalfofwhichhaveseensignificantgrowthintheirbusiness.2021HUAWEICLOUDSparkFoundersSummitInAugust2021,HuaweipledgedtoinvestUS$100millionintothisprogramoverthenextthreeyears.Aspartofthisinvestment,weplantorecruit1,000startupsandshape100ofthemintoscaleups,andcultivate10,000developersinAsia-PacificcountriessuchasIndonesia,thePhilippines,SriLanka,andVietnam.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/101HealthyandHarmoniousEcosystemLaunchingaCampaigntoPlantPoplarTreesinGansuProvince,ChinaDesertificationisamajorclimatechangeissuethathasimpactedmultiplepartsoftheworld,andChinaisoneofthecountriesthathasbeenhitthehardest.Tocurbdesertificationcausedbywinderosionandprotecttheenvironment,HuaweiandtheChinaGreenFoundationlaunchedacampaigntobringconsumerstogethertoplantpoplartreesinGansuProvince,China.InApril2021,62,439poplarseedlingsweredonatedbyHuaweianditsconsumers,whichweresubsequentlyplantedinthedesertinJintaCounty,northernGansu.ThiswasthefirstgroveofpoplarseedlingsplantedinJintaCountyin2021.Poplartreescanreducesoilerosion,improvesoilquality,andhelpcreateaneco-friendlyoasis.TheycanalsoabsorbalargeamountofCO2.Eachpoplartreeabsorbsonaverage215.68kgofCO2overitslifecycle.Thatmeansonehectareofproperlyplantedpoplartrees(calculatedbasedon630treesperhectare)canabsorb135,878.4kgofCO2overthetrees'lifecycles.The62,439poplarseedlingsplantedover99.2hectaresoflandserveaswindbreaks,whichwillhelppreventdesertificationovera744-hectareareaofsandstorm-proneland,equivalentinsizeto1,042footballpitches.Thesetreesareexpectedtoabsorb13,470tonsofCO2overtheirlifecycles,equivalenttopullingabout5,0001.6Lvehiclesofftheroadforoneyear.ThiscampaignisonlyoneofthemanyenvironmentalprotectionprogramsatHuawei.Huaweiunderstandsthateverysmalleffortcanleadtoabetternaturalenvironment.Wewillcontinuetoworkwithgovernments,non-profitorganizations,customers,consumers,andpartnerstohelpbuildagreenerworld.62,439poplartreeshavebeendonatedbyHuaweianditsconsumers,whichareexpectedtoabsorb13,470tonsofCO2,equivalenttopullingabout5,0001.6LvehiclesofftheroadforoneyearPoplartreesplantedtoreducesoilerosionandabsorbCO2102/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportAccordingtotheGlobalGenderGapReport2021fromtheWorldEconomicForum,womencontinuetobeseverelyunderrepresentedinthreequartersoftheworld's"jobsoftomorrow"–acategorywhichincludesCloudComputing,DataandAI,Engineering,andProductDevelopment.Asaresponsiblememberoftheglobaltechcommunity,Huaweiadvocatesforgenderequalityandworkstopromotewomen'sparticipationintheICTindustryanddigitaleconomy.In2020,HuaweilaunchedtheWomeninTechprogramaspartofoureffortstomake"TechforHer,TechbyHer,andTechwithHer"areality.Thisprogramhasbecomeoneofthecompany'smostimportantCSRprograms.In2021,wereleasedourStatementonGenderEqualityinwhichweoutlinedoureffortstoempowerwomenwithourtechnologyandplatforms,helpmorewomenenterthetechnologyindustry,andcultivatewomenleadership.Weencouragewomenemployeestotakeupexecutivepositions,andorganizesupportgroupsandsalonswheretheycansharetheirexperience.Duringthepandemic,Huaweicontinuedtosupportwomenaroundtheworldthroughdedicatedactivitiessuchasscholarshipprograms,summits,training,andleadershipimprovementprograms.WehopetheskillsandtoolswomenobtainthroughtheseactivitieswillencouragethemtojointheICTindustry.In2021,HuaweiorganizedaseriesofprogramsallovertheworldthemedWomeninTech.InMarch,Huaweilaunchedtheglobalflagshipprogram,HUAWEIWomenDevelopers,tohelpwomenacquiretheskillsandresourcestheyneedtoadvancetheircareersasdevelopers.InApril,Huaweiheldthe2021HUAWEIWomenDevelopersSummitinChina,whereideasandtoolsweresharedtosupportwomendevelopersincareerdevelopmentandproductdevelopment.WomenleadersfromtheICTindustrywerealsoinvitedtosharetheirexperiencesandviews.InJuly2021,HuaweiandtheMexicanMinistryofForeignAffairslaunchedthe1,000TalentsfortheDigitalDevelopmentofLatinAmericaandtheCaribbeanprogram.Thisprogramisdesignedtohelpmorethan30countriesacrossLatinAmericaandtheCaribbeandevelopfemaledigitaltalent,increasewomen'scompetitivenessinthejobmarket,andimprovewomen'sparticipationinthedigitaleconomy.Aspartofthisprogram,HuaweiwillprovidemorethanUS$200,000worthofscholarships,ICTtrainingcourses,andcertificationopportunitiesfor1,000femalestudentsandICTspecialistsselectedbytheMexicanMinistryofForeignAffairs.PromotingGenderEquality:AllowingMoreWomentoBenefitfromDigitalTechnologyWomenrepresentativesdeliveringkeynotesatthesummitInAugust,HuaweiheldthefirstSummerSchoolforFemaleLeadershipintheDigitalAgeinLisbon,Portugal.Atotalof1,225studentsfrom27EUmemberstatesappliedforthisprogram,andthefinal27participantswereabletotakepartinaweek-longseriesofmasterclasses,teamprojects,andculturalexchanges.Theyalsoreceivedspecializedtraining(e.g.,codingcourses),andlistenedtofemaleentrepreneursandexecutivesfromdifferentindustriessharetheirexperience.ParticipantsoftheSummerSchoolforFemaleLeadershipintheDigitalAgeTheExecutiveDirectoroftheMexicanAgencyforInternationalDevelopmentCooperationandHuaweiMexicoCEOsigninganMoUforthe1,000TalentsfortheDigitalDevelopmentofLatinAmericaandtheCaribbeanprogramHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/103HealthyandHarmoniousEcosystemInNovember,HuaweilauncheditssecondannualTECH4HERscholarshipprograminIreland.ThisprogramofferedatotalofEUR90,000inscholarshipstofemalestudentsstudyingSTEMatthreelocaluniversities.ProfessorDavidFitzPatrick,PresidentofTechnologicalUniversityDublin,saidthatthisscholarshipwouldencouragemorelocalwomentostudycomputerscience,shineintheclassroomandatwork,andhelpthembecomefuturetechleaders.MembersoftheKPP-RIattendingHuawei'sdigitalliteracyworkshopGhanaianwomenatHuawei'scodingandfintechtrainingSarahJaneDelany(secondfromleft),ProfessorofInclusiveComputerScienceatTechnologicalUniversityDublin,talkingaboutTECH4HERandotherWomeninTechinitiativesasamemberoftheSTEMeducationpanelatHuawei2021IrelandInnovationDayInSeptember,HuaweiandtheIndonesianWomen'sParliamentaryCaucus(KPP-RI)organizedadigitalliteracyworkshoptoimprovewomenlawmakers'digitalskills.Theworkshop–WomeninTech:WomenLeadershipintheDigitalEra–attractednearly200womenlawmakers.TheSpeakeroftheIndonesianParliament,theChiefoftheIndonesianNationalPolice,andtheChairwomanoftheKPP-RIdeliveredkeynotespeeches.InNovember,HuaweiworkedwiththeRebeccaFoundationtoprovidecodingandfintechtrainingforhundredsofGhanaianwomen.ThisprogramkickedoffintheNorthernRegionofGhanawherelocalwomenwereinvitedtoparticipateandlearnICTskillsthattheycoulduseinfutureemployment.Theprogramwonpraiseforitspositiveimpact,includingfromRebeccaAkufo-Addo,FirstLadyofGhanaandfounderoftheRebeccaFoundation.Formoreinformation,pleasevisitHuawei'sWomeninTechwebsite:https://www.huawei.com/en/sustainability/womenWeknowthateverysmalleffortwillmakeadifference.Huaweiiscommittedtopromotinggenderequalityandenablingmorewomentobenefitfromdigitaltechnology.104/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportHuaweibelievesthatconnectivityisabasicrightforeveryhumanbeing.Wearecommittedtobuildingbetternetworkconnectivityandprovidingconvenientandaffordableinformationandcommunicationsservicestobillionsofpeoplearoundtheworldusingourinnovativetechnologies.Ubiquitousbroadbandandconnectivitywillcreatejobs,promotedevelopment,decreasepoverty,andimprovequalityoflife.Inaddition,connectivitywillhelpusrespondtoglobalchallenges,reducethehumanimpactontheenvironment,andprovideessentialcommunicationsservicestosupportrescueandreliefeffortsduringnaturaldisasters.HuaweiadherestoallapplicableinternationalconventionsandnationallawsandpoliciesandrespectsallbasichumanrightsaspromotedbytheUniversalDeclarationofHumanRights.Wedevelopproductsandservicesincompliancewithinternationalstandardsandcertifications.Westrivetoensurethatourbusinessactivitieswillnotcauseorcontributetoanyadverseimpactsonhumanrights.HuaweihasbeenamemberoftheUnitedNationsGlobalCompact(UNGC)since2004,andamemberoftheResponsibleBusinessAlliance(RBA)since2018.Inaddition,HuaweiiscommittedtotheUnitedNationsGuidingPrinciplesonBusinessandHumanRightsandstandardsreleasedbytheInternationalLaborOrganization.KeyAreasHuawei'sCorporateSustainableDevelopmentCommitteeisresponsibleforoverseeinganyhumanrightsrisksthatmayexistwithinourbusinessactivitiesorsupplychain,andstrengtheningourmanagementofkeyareasthatmayhaveanimpactonhumanrights.•Ensuringthattechnologyisusedtobenefithumanity:Technologyshouldbeusedtoenhancehuman,social,andenvironmentalwell-being.Huaweifirmlyopposesthemisuseoftechnologythathasanadverseimpactonhumanrights.Wecarefullyevaluatethelong-termandpotentialimpactofournewtechnologiesonsocietybasedonwidelyrecognizedindustrystandardsinthedesign,development,anduseofourproducts,andworkhardtoensurethatourproductsandservicesareusedinaccordancewiththeirintendedcommercialpurpose.Toaddresstheunknownrisksthatmayarisefromthewidespreaduseofnewtechnologies,Huaweihasexpandeditsexistingprocessesandgovernanceprograms,andwearecommittedtoworkingwithoursuppliers,partners,andcustomerstomanageanypotentialadverseimpactoftechnologydevelopment.•Protectingprivacy:Huaweiattachesgreatimportancetoprivacyprotection,andwetakeourresponsibilitiesseriously.Wecomplywithallapplicableprivacylawsworldwide,includingtheEU'sGeneralDataProtectionRegulation(GDPR).Huaweihasembeddedprivacyprotectionrequirementsintoourcorporategovernanceandeveryphaseofourpersonaldataprocessinglifecycle.Wefollowtheprinciplesofprivacyandsecuritybydesignandbydefaultandconductprivacyimpactassessmentsbeforethereleaseofanyproductorservice,payingcarefulattentiontosensitivepersonaldataorsensitiveRespectingHumanRightsusage.Huaweialsorequiresitssupplierstocomplywithrequirementsforpersonaldataprotection.Inaddition,Huaweirequiresallofitsemployeestoreceiveprivacytrainingtoenhancetheirunderstandingofthedomain,andweencourageouremployeestoparticipateinprofessionalprivacycertificationprograms.Atotalof478HuaweiemployeeshavebeencertifiedbytheInternationalAssociationofPrivacyProfessionals,placingHuaweiamongthetopcompaniesglobally.•Safeguardinglaborrights:Huaweisupportsandprotectstherightsofitsemployeesthroughdetailed,equitableregulationsthatcoverallstagesofanemployee'srelationshipwiththecompany,includingrecruitment,employment,andexit.Wearecommittedtoprovidingequalopportunitiesforallemployees.Whenitcomestoemployeerecruitment,promotion,andcompensation,wedonotdiscriminateagainstanyoneonthebasisofrace,religion,gender,sexualorientation,nationality,age,ordisability.Weprohibittheuseofforcedlabor,whetherovertorcovert,andalluseofchildlabor.•Maintainingaresponsiblesupplychain:HuaweihasestablishedaCSRmanagementsysteminprocurementinaccordancewiththeOECD'sDueDiligenceGuidanceforResponsibleBusinessConductandIPC-1401CorporateSocialResponsibilityManagementSystemStandard.OurCSRagreementssignedwithsuppliersarepreparedaccordingtointernationallyrecognizedindustrystandardssuchastheRBACodeofConductandtheJointAuditCooperation(JAC)SupplyChainSustainabilityGuidelines.Duringthisprocess,Huaweialsoworkscloselywithitssupplychain,bothupstreamanddownstream.Inaddition,wecomplywithourcustomers'sustainabilityrequirementsandconductjointauditswiththem.Wealsorequireourdirectsupplierstocascadeourrequirementstotheirsub-tiersuppliers,askingthemtorespecttherightsoftheiremployeesandcomplywithalllegalrequirementsregardingenvironmentalprotection,healthandsafety,privacy,andanti-briberycompliance.Together,ourgoalistocreatearesponsiblesupplychain.Huaweihasacomprehensivequalificationprocessforallnewsuppliers,andcarriesoutrisk-informedannualauditsoncurrentsuppliers.Allsuppliersareevaluatedbasedontheirsustainabilityperformance,theresultsofaudits,andthecompletionofanycorrectiveactions.Huaweihasazero-tolerancepolicytowardstheuseofforcedlabor.Ifasupplierisfoundtohaveviolatedthispolicy,wewilltakedisciplinaryactionagainstthemliketerminatingourbusinessrelationship.Todate,nouseofforcedlaborhasbeendiscoveredamongoursuppliers.Respectinghumanrightshasbeenalong-standingfocusforHuawei.Incompliancewithallapplicablelaws,regulations,andstandards,weactivelycommunicatewithinternationalorganizations,governments,andindustryinstitutionstodevelophumanrightsstandardsandguidelinesintheuseofnewtechnologies.Atthesametime,wewillcontinuetooptimizemanagementmechanismsandworkwithoursuppliers,partners,andcustomerstopromptlyidentify,manage,andmitigateanyhumanrightsrisksoradverseimpacts.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/105No.CategoryGoalsandInitiatives2021ProgressStatus1DigitalInclusionImplementseveninclusiveeducationprojectsthatwillbenefitmorethan110,000peoplein2021Achieved.Seepages24–25ofthisreport.●2Implementsixenvironmentalprotectionprojectstohelp32protectedareasin25countriesprotectbiodiversitymoreefficientlyin2021Achieved.Seepages26–28ofthisreport.●3SecurityandTrustworthinessZerolevel-1cybersecurityincidentsAchieved●4Zerolevel-1personaldataleaksAchieved●5Atleast90%ofincidentsarefixedwithinonehourAchieved●6Problemreportfixresponsetime:98%Achieved●7EnvironmentalProtectionReducethecarbonemissions(Scope1andScope2GHGemissions)perunitofsalesrevenueby16%by2025comparedwith2019Ontrack.Seepage58ofthisreport.◎8Increasetheaverageenergyefficiencyofourmainproductsby2.7timesby2025comparedwith2019Ontrack.Seepages51–56ofthisreport.◎9EnsureallofHuawei'stop100suppliers(byprocurementspending)willhavesetcarbonemissionsreductiontargetsby2025Ontrack.Seepages63–65ofthisreport.◎10Lessthan1.5%ofe-wastefromHuawei'sICTbusinessislandfilledAchieved.Seepage74ofthisreport.●11Noe-wastefromHuawei'ssmartdevicesislandfilledAchieved.Seepage74ofthisreport.●12Use40%moreelectricityfromrenewableenergysourcesonHuaweicampusesin2021over2020Achieved.Seepage58ofthisreport.●13HealthyandHarmoniousEcosystemInvestCNY15billioninemployeebenefitsin2021Achieved.Seepage81ofthisreport.●14Run400socialcontributionprogramsworldwidein2021Achieved.Seepage100ofthisreport.●15ZerosupplierviolationsofCSRredlinesAchieved●16ZerofatalsubcontractorEHSincidentsAchieved●17SustainabilityManagementSystemZerooutstandingCSDCommitteetasksAchieved●18ReleasequarterlyCSDnewsletterstoimproveouremployees'sustainabilityawarenessandcapabilitiesAchieved●AppendixISustainabilityGoalsandPerformance●Achieved◎Ontrack○NotachievedAppendices106/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportAppendixIIGRIStandardsGeneralDisclosuresOrganizationalprofile2016DisclosureIndicatorsRelevancetotheUNSDGsPage102-1Nameoftheorganization1102-2Activities,brands,products,andservices1102-3LocationofheadquartersBackcoverpage102-4Locationofoperations1102-5Ownershipandlegalform1102-6Marketsserved1102-7Scaleoftheorganization1102-8Informationonemployeesandotherworkers80–86102-9Supplychain91–94102-10Significantchangestotheorganizationanditssupplychain1102-11PrecautionaryPrincipleorapproach/102-12Externalinitiatives19–21102-13Membershipofassociations21Strategy2016102-14Statementfromseniordecision-maker2–5102-15Keyimpacts,risks,andopportunities14–16Ethicsandintegrity2016102-16Values,principles,standards,andnormsofbehavior87–90102-17Mechanismsforadviceandconcernsaboutethics87–90Governance2016102-18Governancestructure14102-19Delegatingauthority14102-20Executive-levelresponsibilityforeconomic,environmental,andsocialtopics14102-21Consultingstakeholdersoneconomic,environmental,andsocialtopicsSDG1617–21102-22CompositionofthehighestgovernancebodyanditscommitteesSDGs5,1614102-23Chairofthehighestgovernancebody14102-24NominatingandselectingthehighestgovernancebodySDGs5,1614102-25Conflictsofinterest/102-26Roleofhighestgovernancebodyinsettingpurpose,values,andstrategy13–14102-27Collectiveknowledgeofhighestgovernancebody13–14102-28Evaluatingthehighestgovernancebody’sperformance13–14HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/107AppendicesGeneralDisclosures102-29Identifyingandmanagingeconomic,environmental,andsocialimpactsSDG1613–14102-30Effectivenessofriskmanagementprocesses13–16102-31Reviewofeconomic,environmental,andsocialtopics21102-32Highestgovernancebody’sroleinsustainabilityreporting13–14102-33Communicatingcriticalconcerns21102-34Natureandtotalnumberofcriticalconcerns21102-35Remunerationpolicies80–86102-36ProcessfordeterminingremunerationSDG1680–86102-37Stakeholders’involvementinremuneration80–86102-38Annualtotalcompensationratio/102-39Percentageincreaseinannualtotalcompensationratio/Stakeholderengagement2016102-40Listofstakeholdergroups17–18102-41Collectivebargainingagreements100%102-42Identifyingandselectingstakeholders17–18102-43Approachtostakeholderengagement17–18102-44Keytopicsandconcernsraised17–18Reportingpractice2016102-45Entitiesincludedintheconsolidatedfinancialstatements1102-46DefiningreportcontentandtopicBoundaries21102-47Listofmaterialtopics21102-48Restatementsofinformation1102-49Changesinreporting1102-50Reportingperiod1102-51Dateofmostrecentreport1102-52Reportingcycle1102-53Contactpointforquestionsregardingthereport1102-54ClaimsofreportinginaccordancewiththeGRIStandards1102-55GRIcontentindexAppendixII102-56ExternalassuranceAppendixIVManagementApproach2016103-1ExplanationofthematerialtopicanditsBoundary21103-2Themanagementapproachanditscomponents13–14103-3Evaluationofthemanagementapproach13–14108/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportTopic-specificDisclosuresEconomicPerformance2016DisclosureIndicatorsRelevancetotheUNSDGsPage201-1DirecteconomicvaluegeneratedanddistributedSDGs2,5,7,8,91201-2FinancialimplicationsandotherrisksandopportunitiesduetoclimatechangeSDG131,14–16201-3Definedbenefitplanobligationsandotherretirementplans1,80–86201-4Financialassistancereceivedfromgovernment/MarketPresence2016202-1RatiosofstandardentrylevelwagebygendercomparedtolocalminimumwageSDGs1,5,8/202-2ProportionofseniormanagementhiredfromthelocalcommunitySDG8/IndirectEconomicImpacts2016203-1InfrastructureinvestmentsandservicessupportedSDGs11,2,5,7,931–33203-2SignificantindirecteconomicimpactsSDGs1,10,17,2,3,831–33,95–103ProcurementPractices2016204-1ProportionofspendingonlocalsuppliersSDG12/Anti-corruption2016205-1OperationsassessedforrisksrelatedtocorruptionSDG1688205-2Communicationandtrainingaboutanti-corruptionpoliciesandproceduresSDG1688205-3ConfirmedincidentsofcorruptionandactionstakenSDG1688Anti-competitiveBehavior2016206-1Legalactionsforanti-competitivebehavior,anti-trust,andmonopolypracticesSDG1690Tax2019207-1ApproachtotaxSDG81207-2Taxgovernance,control,andriskmanagementSDG81207-3StakeholderengagementandmanagementofconcernsrelatedtotaxSDG81207-4Country-by-countryreportingSDG81Materials2016301-1MaterialsusedbyweightorvolumeSDGs12,8/301-2RecycledinputmaterialsusedSDGs12,871–74301-3ReclaimedproductsandtheirpackagingmaterialsSDGs12,871–74Energy2016302-1EnergyconsumptionwithintheorganizationSDGs12,13,7,858302-2EnergyconsumptionoutsideoftheorganizationSDGs12,13,7,857302-3EnergyintensitySDGs12,13,7,858302-4ReductionofenergyconsumptionSDGs12,13,7,851–77302-5ReductionsinenergyrequirementsofproductsandservicesSDGs12,13,7,851–77HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/109Topic-specificDisclosuresWaterandEffluents2018303-1InteractionswithwaterasasharedresourceSDG661–62303-2Managementofwaterdischarge-relatedimpactsSDG661–62303-3WaterwithdrawalSDG661–62303-4WaterdischargeSDG661–62303-5WaterconsumptionSDG661–62Biodiversity2016304-1Operationalsitesowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareasSDGs14,15,6/304-2Significantimpactsofactivities,products,andservicesonbiodiversitySDGs14,1526–28304-3HabitatsprotectedorrestoredSDGs14,15,626–28304-4IUCNRedListspeciesandnationalconservationlistspecieswithhabitatsinareasaffectedbyoperationsSDGs14,15,6/Emissions2016305-1Direct(Scope1)GHGemissionsSDGs12,13,14,15,757305-2Energyindirect(Scope2)GHGemissionsSDGs12,13,14,15,757305-3Otherindirect(Scope3)GHGemissionsSDGs12,13,14,15,757305-4GHGemissionsintensitySDGs13,14,15,758305-5ReductionofGHGemissionsSDGs13,14,15,758305-6Emissionsofozone-depletingsubstances(ODS)SDGs12,3None305-7Nitrogenoxides(NOX),sulfuroxides(SOX),andothersignificantairemissionsSDGs12,14,15,3/Waste2020306-1WaterdischargebyqualityanddestinationSDGs12,14,3,6/306-2WastebytypeanddisposalmethodSDGs12,3,661–62,74306-3SignificantspillsSDGs12,14,15,3,6None306-4TransportofhazardouswasteSDGs12,361306-5Waterbodiesaffectedbywaterdischargesand/orrunoffSDGs14,15,6/EnvironmentalCompliance2016307-1Non-compliancewithenvironmentallawsandregulationsSDG16NoneSupplierEnvironmentalAssessment2016308-1NewsuppliersthatwerescreenedusingenvironmentalcriteriaSDG1263,91–94308-2NegativeenvironmentalimpactsinthesupplychainandactionstakenSDG1263,91–94Employment2016401-1NewemployeehiresandemployeeturnoverSDGs5,880–86401-2Benefitsprovidedtofull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployeesSDGs5,880–86401-3ParentalleaveSDGs5,880–86Appendices110/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportTopic-specificDisclosuresLabor/ManagementRelations2016402-1Minimumnoticeperiodsregardingoperationalchanges/OccupationalHealthandSafety2018403-1OccupationalhealthandsafetymanagementsystemSDGs3,880–86403-2Hazardidentification,riskassessment,andincidentinvestigationSDGs3,880–86403-3OccupationalhealthservicesSDGs3,880–86403-4Workerparticipation,consultation,andcommunicationonoccupationalhealthandsafetySDGs3,880–86403-5WorkertrainingonoccupationalhealthandsafetySDGs3,880–86403-6PromotionofworkerhealthSDGs3,880–86403-7PreventionandmitigationofoccupationalhealthandsafetyimpactsdirectlylinkedbybusinessrelationshipsSDGs3,880–86403-8WorkerscoveredbyanoccupationalhealthandsafetymanagementsystemSDGs3,880–86403-9Work-relatedinjuriesSDGs3,8/403-10Work-relatedillhealthSDGs3,880–86TrainingandEducation2016404-1AveragehoursoftrainingperyearperemployeeSDGs4,5,884404-2ProgramsforupgradingemployeeskillsandtransitionassistanceprogramsSDGs4,5,884404-3PercentageofemployeesreceivingregularperformanceandcareerdevelopmentreviewsSDGs5,8100%DiversityandEqualOpportunity2016405-1DiversityofgovernancebodiesandemployeesSDGs5,885–86405-2RatioofbasicsalaryandremunerationofwomentomenSDGs10,5,8/Non-discrimination2016406-1Incidentsofdiscriminationandcorrectiveactionstaken6SDGs16,5,8/FreedomofAssociationandCollectiveBargaining2016407-1OperationsandsuppliersinwhichtherighttofreedomofassociationandcollectivebargainingmaybeatriskSDG8/ChildLabor2016408-1OperationsandsuppliersatsignificantriskforincidentsofchildlaborSDGs16,885ForcedorCompulsoryLabor2016409-1OperationsandsuppliersatsignificantriskforincidentsofforcedorcompulsorylaborSDG885SecurityPractices2016410-1SecuritypersonneltrainedinhumanrightspoliciesorproceduresSDG16100%RightsofIndigenousPeoples2016411-1IncidentsofviolationsinvolvingrightsofindigenouspeoplesSDG10/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/111AppendicesTopic-specificDisclosuresHumanRightsAssessment2016412-1OperationsthathavebeensubjecttohumanrightsreviewsorimpactassessmentsSDG16104412-2EmployeetrainingonhumanrightspoliciesorproceduresSDG16104413-3SignificantinvestmentagreementsandcontractsthatincludehumanrightsclausesorthatunderwenthumanrightsscreeningSDG16104LocalCommunities2016413-1Operationswithlocalcommunityengagement,impactassessments,anddevelopmentprogramsSDGs12,1795–103413-2OperationswithsignificantactualandpotentialnegativeimpactsonlocalcommunitiesSDGs12,17/SupplierSocialAssessment2016414-1NewsuppliersthatwerescreenedusingsocialcriteriaSDGs12,1791–94414-2NegativesocialimpactsinthesupplychainandactionstakenSDGs12,1791–94PublicPolicy2016415-1PoliticalcontributionsSDG16/CustomerHealthandSafety2016416-1AssessmentofthehealthandsafetyimpactsofproductandservicecategoriesSDGs12,1671–77416-2Incidentsofnon-complianceconcerningthehealthandsafetyimpactsofproductsandservicesSDGs12,16/MarketingandLabeling2016417-1RequirementsforproductandserviceinformationandlabelingSDGs12,1689–90417-2Incidentsofnon-complianceconcerningproductandserviceinformationandlabelingSDGs12,16/417-3Incidentsofnon-complianceconcerningmarketingcommunicationsSDGs12,16/CustomerPrivacy2016418-1SubstantiatedcomplaintsconcerningbreachesofcustomerprivacyandlossesofcustomerdataSDGs12,16/SocioeconomicCompliance2016419-1Non-compliancewithlawsandregulationsinthesocialandeconomicareaSDGs12,16/112/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportAppendixIIIAcronymsandAbbreviationsAcronym/AbbreviationFullName3GPP3rdGenerationPartnershipProject5GThe5thGenerationMobileCommunicationTechnologyAAUActiveAntennaUnitAEOAuthorizedEconomicOperatorAIArtificialIntelligenceAPAccessPointAppApplicationAPTAdvancedPersistentThreatASEANAssociationofSoutheastAsianNationsBCGBusinessConductGuidelinesBCMBusinessContinuityManagementBCPBusinessContinuityPlanBODBoardofDirectorsCAHRAsConflict-AffectedandHigh-RiskAreasCCOChiefComplianceOfficerCCSKCertificateofCloudSecurityKnowledgeCECCommitteeofEthicsandComplianceCEOChiefExecutiveOfficerCESAChinaElectronicsStandardizationAssociationCIPPCertifiedInformationPrivacyProfessionalCISSPCertifiedInformationSystemsSecurityProfessionalCMRTConflictMineralsReportingTemplateCQCChinaQualityCertificationCenterCRCPECheck,RootCauseAnalysis,Correct,Prevent,andEvaluateCRTCobaltReportingTemplateCSDCorporateSustainableDevelopmentCSRCorporateSocialResponsibilityEBIEnterpriseBuildingIntegratorEHSEnvironment,HealthandSafetyEMSElectronicsManufacturingServicesEOLEndofLifeESGEnvironmental,Social,andGovernanceETSIEuropeanTelecommunicationsStandardsInstituteEUEuropeanUnionFTTHFibertotheHomeFTTMFibertotheMachineHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/113AppendicesAcronym/AbbreviationFullNameFTTRFibertotheRoomGDPRGeneralDataProtectionRegulationGeSIGlobalEnablingSustainabilityInitiativeGHGGreenhouseGasGLOMOGlobalMobileAwardsGRIGlobalReportingInitiativeGSMAGlobalSystemforMobileCommunicationsAssociationHDDHardDiskDriveHRHumanResourcesHWDHUAWEIWomenDevelopersIAPPInternationalAssociationofPrivacyProfessionalsICPCInternationalCollegiateProgrammingContestICTInformationandCommunicationsTechnologyIEAInternationalEnergyAgencyIETFInternetEngineeringTaskForceIMPIncidentManagementPlanIoTInternetofThingsIPInternetProtocolIPIntellectualPropertyIPDIntegratedProductDevelopmentIPEInstituteofPublicandEnvironmentalAffairsISCIntegratedSupplyChainISOInternationalOrganizationforStandardizationITInformationTechnologyITRIssuetoResolutionITUInternationalTelecommunicationUnionIUCNInternationalUnionforConservationofNatureJACJointAuditCooperationJDMJointDesignManufacturerLEDLightEmittingDiodeLTCLeadtoCashMFPManagerFeedbackProgramMOOCMassiveOpenOnlineCourseMoUMemorandumofUnderstandingMWIManufacturingWorkInstructionNbSNature-basedSolutionNEONewEmployeeOrientationNESASNetworkEquipmentSecurityAssuranceScheme114/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportAcronym/AbbreviationFullNameNGONon-GovernmentalOrganizationO&MOperationsandMaintenanceOECDOrganisationforEconomicCo-operationandDevelopmentOFPVOffshoreFloatingPhotovoltaicPBPetabytePCPersonalComputerPDCAPlan,Do,Check,ActPSIRTProductSecurityIncidentResponseTeamPUEPowerUsageEffectivenessR&DResearchandDevelopmentRBAResponsibleBusinessAllianceRBCResponsibleBusinessConductRCIResponsibleCobaltInitiativeRDCRegionalDistributionCenterRFCxRainforestConnectionRGCRisk,Governance,andControlRMAPResponsibleMineralsAssuranceProcessRMIResponsibleMineralsInitiativeRRURemoteRadioUnitSCASSecurityAssuranceSpecificationsSDIFSignalDirectInjectionFeedingSMESmallandMedium-sizedEnterpriseSTEAMScience,Technology,Engineering,theArts,andMathematicsSTEMScience,Technology,EngineeringandMathematicsSWOTStrengths,Weaknesses,Opportunities,andThreatsTORTopofRackUNSDGsUnitedNationsSustainableDevelopmentGoalsUNEPUnitedNationsEnvironmentProgrammeUNESCOUnitedNationsEducational,ScientificandCulturalOrganizationUNFCCCUNFrameworkConventiononClimateChangeUNGCUnitedNationsGlobalCompactVPNVirtualPrivateNetworkVRVirtualRealityWi-FiWirelessFidelityWTOWorldTradeOrganizationWWFWorldWideFundforNatureHuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/115SGS-CSTC’SREPORTONSUSTAINABILITYACTIVITIESINTHEHUAWEIINVESTMENT&HOLDINGCO.,LTD.’sSUSTAINABILITYREPORTFOR2021NATUREANDSCOPEOFTHEASSURANCE/VERIFICATIONSGS-CSTCSTANDARDSTECHNICALSERVICESCO.,LTD.(thereafteras“SGS”)wascommissionedbytheHuaweiInvestment&HoldingCo.,Ltd.(thereafteras“HUAWEI”)toconductanindependentassuranceoftheChineseversionofHUAWEI’sSustainabilityReportfor2021(thereafteras“theReport”).Thescopeoftheassurance,basedontheSGSSustainabilityReportAssurancemethodology,includedthetext,anddatainaccompanyingtables,containedintheReport.Otherdataandinformationdisclosedwerenotincludedinthisassuranceprocess.On-siteassuranceprocesswasexecutedattheAdministrationBuilding,HeadquartersofHuaweiTechnologiesCo.,Ltd.,Bantian,LonggangDistrict,Shenzhen,Guangdong,P.R.China.TheHUAWEI'smanagementandrelevantfunctionaldepartmentsareresponsiblefortheinformationcontainedintheReport.Ourresponsibilityistoexpressanopiniononthetext,data,graphsandstatementswithinthescopeofverificationwiththeintentiontoinformallHUAWEI’sstakeholders.TheSGSprotocolsarebaseduponinternationallyrecognizedguidance,includingthePrinciplescontainedwithintheGRISTANDARDSforaccuracyandreliabilityandtheguidanceonlevelsofassurancecontainedwithintheAA1000seriesofstandardsandguidanceforAssuranceProviders.Thisreporthasbeenassuredatamoderatelevelofscrutinyusingourprotocolsfor:•evaluationofcontentveracity;•evaluationofthereportagainsttheGRISTANDARDS.Theassurancecomprisedacombinationofpre-assuranceresearch,onsiteinterviewswithrelevantemployeesintheHUAWEIheadquarters,documentationandrecordonlinereviewandvalidationwithaffiliatesbodieswhererelevant.Financialdatadrawndirectlyfromindependentlyauditedfinancialaccountshasnotbeencheckedbacktosourceaspartofthisassuranceprocess.STATEMENTOFINDEPENDENCEANDCOMPETENCESGSaffirmourindependencefromHUAWEI,beingfreefrombiasandconflictsofinterestwiththeorganization,itssubsidiariesandstakeholders.Theassuranceteamwasassembledbasedontheirknowledge,experienceandqualificationsforthisassignment.VERIFICATION/ASSURANCEOPINIONOnthebasisofthemethodologydescribedandtheverificationworkperformed,theinformationanddatacontainedwithintheReportverifiedisaccurate,reliableandprovidesafairandbalancedrepresentationofHUAWEIsustainabilityactivitiesin2021.TheassuranceteamisoftheopinionthattheReportcanbeusedbytheReportingOrganization’sStakeholders.Webelievethattheorganizationhaschosenanappropriateoptionforthereporting.ASSURANCESTATEMENTAppendixIVExternalAssuranceStatementAppendices116/HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReportGRISTANDARDSCONCLUSIONS,FINDINGSANDRECOMMENDATIONSInouropiniontheReportispresentedinaccordancewiththecoreopinionforGRISTANSARDSandfulfilsalltherequiredcontentandqualitycriteria.PrinciplesStakeholderEngagementHUAWEIhadidentifieditsstakeholderswhoaffectedbyitsactivitiesandconsideredthereasonableexpectationsandinterestsfromstakeholders,andtooksomecertainwaystocommunicateandexchangeinformationwithstakeholders.SustainabilityContextHUAWEIhadpresentedtheeffortsonsustainabilitydevelopmentrelatedtoeconomic,environmentalandsocialaspectsandcombinedtheperformanceinthewidecontextaswell.MaterialityBasedonthetopicsconcernedbythestakeholders,HUAWEIhadconsideredreasonablydisclosingissuesandindicatorswithmateriality,whichsubstantivelyinfluencingtheassessmentsanddecisionsofstakeholders,toreflecttheorganization’ssignificanteconomic,environmentalandsocialimpacts.CompletenessTheReportincludedcoverageofmaterialaspectsandboundaries,toreflectsignificanteconomic,environmentalandsocialimpactsandenablestakeholderstoassesstheorganization’sperformanceinthereportingperiod.BalanceTheReportfollowedthebalanceprincipleandtruthfullydisclosedthepositiveandnegativeinformation.ComparabilityHUAWEIhaddisclosedperformanceindicatorsin2021,previousdataofkeyindicatorsweredisclosed,whichcouldhelpstakeholderstounderstandandcomparetheimprovedperformanceyearbyyear.AccuracyHUAWEI’sinformationinthereportwasaccurate,enabletoreleasemorequalitativeandquantitativeinformationwithindicatorsforstakeholders.TimelinessVerificationshownthatthereporteddataandinformationwastimelyandeffective.HUAWEIdisclosesitsCSRreportannually,whichindicatesgoodtimeliness.ClarityTheReportwaspresenteddifferentwayswithwords,charts,graphicsandpictures,alsodescribedwithactualcasestoensurethestakeholdersunderstandingeasily.ReliabilityThedataandinformationcanbetracedandverified.ManagementApproachTheReporthaddisclosedthemanagementapproachofidentifiedmaterialtopics.GeneralDisclosuresThegeneraldisclosureswerepresentedinaccordancewiththecoreoptionofGRIStandards.HuaweiInvestment&HoldingCo.,Ltd.2021SustainabilityReport/117Topic-SpecificDisclosuresHUAWEI’stopic-specificdisclosuresrelatedtothematerialtopicsineconomic,environmental,andsocialareaswereinaccordancewiththecoreoptionofGRIStandards.FindingsandrecommendationsGoodpracticesandrecommendationsforsustainabilityreportandmanagementprocessweredescribedintheinternalmanagementreportwhichhasbeensubmittedtothemanagementofHUAWEIforcontinuousimprovement.LimitationsofassuranceDatatracingonheadquarterslevel,notincludingoriginaldataofallsubsidiaries.Theassuranceprocessonlyinvolvedinterviewswiththeheadsofrelevantdepartmentsandcertainemployeesofheadquartersandconsultationwithrelevantdocuments.Noexternalstakeholderinvolved.Signed:ForandonbehalfofSGS-CSTCStandardsTechnicalServicesCo.,Ltd.16/FCenturyYuhuiMansion,No.73,FuchengRoad,Beijing,P.R.ChinaMay27,2022WWW.SGS.COMAppendicesGeneralDisclaimerTheinformationinthisdocumentmaycontainpredictivestatementincluding,withoutlimitation,statementsregardingthefuturefinancialandoperatingresults,futureproductportfolios,newtechnologies,etc.Thereareanumberoffactorsthatcouldcauseactualresultsanddevelopmentstodiffermateriallyfromthoseexpressedorimpliedinthepredictivestatements.Therefore,suchinformationisprovidedforreferencepurposeonlyandconstitutesneitheranoffernoranacceptance.Huaweimaychangetheinformationatanytimewithoutnotice.Copyright©2022HUAWEITECHNOLOGIESCO.,LTD.AllRightsReserved.PrintedonenvironmentallyfriendlypaperHUAWEIINVESTMENT&HOLDINGCO.,LTD.HuaweiIndustrialBaseShenzhen518129,P.R.ChinaTel:+86-755-28780808www.huawei.comDownload: