Xiaomi details AI, sustainability, and manufacturing progress in 2025 ESG report

Xiaomi has released its 2025 Environmental, Social, and Governance report, outlining developments across AI, data security, sustainable manufacturing, and circular economy initiatives. The report details how these areas are being integrated into its “Human × Car × Home” ecosystem, alongside continued investment in research and development.

The company reported RMB33.1 billion in R&D spending for 2025, with 25,457 personnel accounting for 45% of its workforce. This investment supports its work across AI models, smart manufacturing, and product design.

AI development and governance approach

Xiaomi outlined an AI capability matrix that combines foundation models with scenario-based derivatives. The structure is designed to support general-purpose capabilities while adapting models to specific use cases across its ecosystem.

The company introduced three internally developed large models for the agentic AI space, Xiaomi MiMo-V2-Pro, Xiaomi MiMo-V2-Omni, and Xiaomi MiMo-V2-TTS. Within a week of launch, MiMo-V2-Pro ranked first in weekly call volume on OpenRouter and placed eighth globally and second in China on the Artificial Analysis Intelligence Index.

Xiaomi also referenced the EU’s Ethical Guidelines for Trustworthy Artificial Intelligence in shaping its “Trustworthy AI” concept, which covers fairness, inclusivity, privacy, ethics, and security.

Data protection and on-device security

The report sets out Xiaomi’s data security approach across security, privacy, compliance, and transparency. Its privacy and security systems have obtained ISO 27001 certification across all technical operation facilities and ISO 27701 certification for privacy information management.

Xiaomi’s MiTEE secure operating system runs in an isolated environment separate from the main system. The design keeps sensitive assets, including facial templates, payment credentials, account tokens, and vehicle digital keys, on the device.

For cross-device data protection, Xiaomi applies four principles, Authorization First, End-to-End and No Trace, Consistent Protection, and Secure Link. The company has also standardised its response time for Data Subject Requests to 15 days globally, with a reported 100% response rate.

Circular design and product lifecycle changes

Xiaomi’s circular economy efforts are being applied across product materials, packaging, and recycling programmes. Several smartphone models, including the Xiaomi 15T Series and REDMI K90, use mid-plates made from 100% recycled die-cast aluminium. Smartphone charger housings use 30% post-consumer recycled plastic.

The same materials approach extends to its electric vehicle portfolio. Recycled aluminium accounts for 14.2% of material usage in the Xiaomi YU7 Series and 19% in the Xiaomi SU7 Series.

Xiaomi also introduced Ultra-Low Standby Power Consumption Technology for 100W chargers in 2025, with expected annual savings of hundreds of millions of kilowatt-hours in standby electricity consumption. In its refrigerator business, packaging changes reduced expanded polystyrene use by 620g per unit, cutting annual consumption by nearly 310 tonnes.

Trade-in programmes remain part of its recycling strategy. More than 2 million used smartphones were recycled in 2025, while trade-in capabilities covered 24 countries and regions by the end of the reporting period. Eligible products include smartphones, electric scooters, televisions, smartwatches, and other electronics.

Manufacturing efficiency and emissions reduction

Xiaomi’s climate work includes energy management, factory efficiency, logistics changes, and renewable electricity procurement. The Xiaomi Smart Factory and Xiaomi EV Factory have obtained ISO 50001 Energy Management System certification.

At the Xiaomi EV Factory, a regenerative thermal oxidiser system treats exhaust gas while recovering high-temperature heat for drying rooms, achieving 38,333 GJ of annual heat recovery. Xiaomi HyperCasting also helped create a more compact production line and reduce operational load, saving approximately 1.82 million kWh of electricity each year.

The company also shifted more logistics activity from air freight to sea and rail transport, reducing emissions by about 2,471 tonnes of carbon dioxide equivalent in 2025.

Xiaomi procured more than 40 million kWh of green electricity in 2025, a more than tenfold year-on-year increase. By 2026, it plans for directly connected photovoltaic electricity to cover around 15% of annual electricity demand at its Smart Home Appliances Factory.