ZTE Corporation is a world-leading provider of integrated ICT solutions, operating in more than 160 countries and regions, serving over one quarter of the global population, and generating revenues of CNY 124.3 billion (approximately USD 17.2 billion) in 2024. Founded in 1985 and dual-listed on the Hong Kong and Shenzhen Stock Exchanges, ZTE provides end-to-end products covering wireless, wired, computing power, digital energy, and terminal solutions, making it one of only a handful of ICT vendors with a fully integrated portfolio across 5G infrastructure, fiber networks, data centers, and consumer devices. In 2024, ZTE published its 17th consecutive Sustainability Report, received SBTi approval for both its near-term 1.5°C and long-term net-zero targets, making it the first large-scale ICT company in China to secure dual SBTi approvals, secured a CDP A List rating for the second consecutive year, and was awarded the EcoVadis Gold Medal ranking among the top 4% of assessed companies globally.
ZTE’s sustainability strategy operates across four integrated pillars: green operations, green supply chain, green digital foundation, and empowerment for green development of industries, anchored by its “Tech for Good” corporate principle and the vision of achieving net-zero emissions by 2050.
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://www.zte.com.cn/global/about/sustainability.html
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/green_lowcarbon/pdf/ZTE%20Net-Zero%20Strategy.pdf
Sustainability Strategy and Goals
ZTE’s sustainability strategy integrates its “Driver of Digital Economy” corporate mission with a four-phase net-zero decarbonization roadmap running from 2021 to 2050, structured across operational emissions (Scope 1 and 2) and value chain emissions (Scope 3). The strategy aligns with 17 UN SDGs and is governed under a three-tier structure comprising the Board of Directors (strategic oversight), the Strategy and Sustainability Committee (decision-making, established August 2024 by integrating the former Strategy Committee), and the Sustainability Work Team covering eight ESG modules managed by dedicated departments. In 2024, ZTE incorporated ISSB IFRS S1 and S2 standards analysis into its sustainability strategy, studied HKEX Appendix C2 ESG Reporting Code, and conducted a double materiality assessment identifying climate change, product environmental performance, supply chain responsibility, digital inclusion, data security, and employee rights as material topics.
ZTE links ESG performance to executive compensation. Since 2023, completion of dual-carbon project goals has been connected to the annual performance appraisal scores and bonuses of senior management including the CTO, Chief Strategy Officer, and Senior Vice Presidents overseeing Supply Chain and Administration, with the impact on performance bonuses ranging from 3% to 10%. ZTE reports against GRI Standards 2021, HKEX Appendix C2, Shenzhen Stock Exchange Self-Regulatory Guidelines No. 17, ISO 26000, UN SDGs, and the Ten Principles of the UN Global Compact, with third-party independent assurance on all primary sustainability performance data.
Net Zero and Carbon Emissions
ZTE targets net-zero GHG emissions across Scope 1, 2, and 3 by 2050, operational carbon neutrality (Scope 1 and 2) by 2040, and an SBTi-validated near-term target of a 52% absolute reduction in Scope 1 and 2 emissions by 2030 from a 2021 base year. For Scope 3, ZTE targets a 52% reduction in carbon emissions per unit of product performance (physical intensity, measured by terabyte throughput) by 2030 from the 2021 base, while ensuring no increase in total Scope 3 absolute emissions. ZTE achieved a 13.4% year-on-year reduction in Scope 1 and 2 emissions in 2024, reduced total Scope 1, 2, and 3 emissions by 14.317 million tonnes compared to 2023 levels, and improved energy efficiency by 20% compared to 2021, all while growing revenues.
Key milestones from 2021 to 2024:
- Total Scope 1 and 2 GHG emissions in 2024: approximately 436,738 tCO2e (Scope 1: 43,102 tCO2e; Scope 2: 393,636 tCO2e), a 13.4% year-on-year absolute reduction
- Total Scope 3 GHG emissions in 2024: approximately 50.67 billion kgCO2e (50.67 million tCO2e), confirming that Scope 3 represents approximately 99% of ZTE’s total GHG footprint, consistent with the industry pattern for ICT hardware vendors
- Total Scope 1, 2, and 3 combined reduction in 2024 versus 2023: 14.317 million tonnes, the largest single-year absolute reduction in ZTE’s sustainability reporting history
- Telecom products: 8.39% reduction in physical emissions intensity during the use and maintenance phase in 2024, tracking toward the 52% per-unit Scope 3 intensity target by 2030
- Terminal products: 5.02% year-on-year reduction in absolute emissions over the entire product lifecycle in 2024
- Energy efficiency improvement: 20% improvement versus 2021, achieved while growing total revenues, confirming decoupling of energy consumption from business growth
- Photovoltaic systems: generated 30 million kWh of electricity annually as of 2024; cumulative PV installed capacity reached 37.6 MW by end of 2024, a 12-fold increase over the previous two years
- Electricity savings from energy-saving initiatives: 45 million kWh in 2024
- Green power certificates purchased: 5.33 million kWh in the first ZTE green electricity procurement transaction in 2024, establishing the foundation for scaled renewable electricity purchasing in 2025 and beyond
Water Stewardship
ZTE’s primary operational water use occurs at its manufacturing facilities and green smart campuses in Shenzhen and other Chinese industrial parks, where cooling systems, industrial processes, and campus operations represent the dominant water consumption points. The company’s Environmental Impact Management program, disclosed in the 2024 Sustainability Report, tracks water consumption across major operational facilities and applies water-saving technologies as part of its green campus construction program, including recirculated cooling water systems and rainwater harvesting at campuses redesigned under the green development strategy. ZTE’s TCFD-aligned climate risk disclosure, integrated into the 2024 Sustainability Report following the ISSB IFRS S1 and S2 framework analysis, includes physical climate risk assessments covering water stress at facilities in risk-exposed geographies across its global operational footprint.
Deforestation and Biodiversity
ZTE deploys technology directly in biodiversity protection settings, with a notable example being the wide-coverage, all-weather, multi-dimensional sensor network established for the Xiamen State-Level Marine Nature Reserve for Rare Marine Species (Chinese white dolphins) in Xiamen Bay, which uses ZTE connectivity infrastructure to monitor rare species and safeguard natural ecosystems. The company’s conflict minerals due diligence program covers six minerals: gold, tantalum, tin, tungsten, cobalt, and mica, extending beyond the standard four OECD conflict minerals to include cobalt (linked to mining-related deforestation and habitat destruction in the DRC) and mica (linked to child labor and unregulated mining in South Asia). ZTE’s circular economy program for network equipment and terminal devices reduces demand for virgin material extraction by extending product lifecycles, reusing components, and recycling decommissioned hardware, reducing the downstream pressure of ZTE product volumes on primary resource extraction.
Packaging and Circular Economy
ZTE’s circular economy strategy covers three dimensions: green product design integrating circular economy principles from the R&D stage, green manufacturing reducing waste and emissions at production facilities, and green logistics minimizing packaging material consumption and transport carbon intensity across the global supply chain. The company deployed more than 400 MW of solar power generation capacity globally through its products by the end of 2024, saving over 447 million kWh of electricity, and introduced the Green Project Management (GPM) system to embed environmental performance criteria into every major infrastructure deployment project managed by ZTE project teams. ZTE’s self-developed Carbon Visibility App covers 83% of major carbon emission categories and data across its operations, providing a real-time internal monitoring tool that supports decarbonization decision-making without requiring third-party data aggregation delays.
Key outcomes in 2024:
- Cumulative PV installed capacity: 37.6 MW by end of 2024, a 12-fold increase over the previous two years
- Over 400 MW of solar power generation capacity deployed globally through ZTE products, saving over 447 million kWh of electricity for network operator customers
- 45 million kWh of electricity saved in 2024 through energy-saving and emission-reduction initiatives across ZTE facilities
- First green electricity procurement transaction completed in 2024: 5.33 million kWh in green power certificates purchased, establishing ZTE’s renewable energy procurement process for future scaling
- Carbon Visibility App: covers 83% of major carbon emission categories across ZTE operations, enabling real-time carbon tracking
- Green Project Management (GPM) system launched in 2024, embedding environmental performance criteria into all major ZTE infrastructure project management cycles
- Terminal products: 5.02% year-on-year reduction in absolute lifecycle GHG emissions in 2024
Human Rights and Responsible Sourcing
ZTE conducted onsite CSR audits of 261 production suppliers in 2024, representing 86.9% of the top 90% of suppliers by procurement amount, with audit scope covering child labor, forced labor, health and safety, environmental protection, and business ethics. In 2024, ZTE guided 100 suppliers in completing organizational-level carbon audits and assisted 10 suppliers in setting individual carbon reduction targets, integrating dual-carbon strategy requirements into supplier management IT systems including agreement signing, on-site audits, and performance assessments. ZTE’s conflict minerals due diligence covers six minerals (gold, tantalum, tin, tungsten, cobalt, and mica), aligned with OECD Due Diligence Guidance, with on-site audits and integrated audits conducted on high-risk smelter and refiner suppliers in 2024.
Key outcomes in 2024:
- 261 production supplier onsite CSR audits completed in 2024, covering 86.9% of the top 90% of suppliers by procurement amount
- 100 suppliers guided through organizational-level carbon audits; 10 suppliers assisted in setting SBTi-aligned carbon reduction targets
- Dual-carbon strategy requirements integrated into supplier management IT systems covering agreement signing, on-site audit triggers, and performance assessments
- Conflict minerals due diligence covers gold, tantalum, tin, tungsten, cobalt, and mica across the supply chain, with smelter and refiner risk audits in 2024
- 121 supplier representatives arranged to participate in the UN Women’s career development program for female employees in supply chain operations
- EcoVadis Gold Medal awarded in January 2025 for 2024 performance, ranking ZTE among the top 4% of all assessed companies; top 3% in Labor and Human Rights; top 3% in Sustainable Procurement
- Streamlined green electricity procurement process established and first 5.33 million kWh green power certificate purchase completed in 2024
Digital Inclusion and Social Impact
ZTE’s digital inclusion strategy operates under its “Tech for Good” principle, spanning three channels: rural network deployment for underserved communities, the Signal Reach Program in Africa, and the Xinghua and Xingtianshi student aid programs across rural China. In Liberia, ZTE partnered with Orange Liberia to deliver the “Enhance Rural Area” network project in 2024, deploying 128 base stations covering more than 100 schools and providing 2G and 4G network services to over 580,000 previously unconnected rural residents. Through the Signal Reach Program in Africa and collaboration with Ethio Telecom, ZTE supported Ethiopia’s 4G population coverage growth from 37.5% in 2024 to 70.8% in 2025, a 33.3-percentage-point expansion in national digital connectivity driven by prioritizing underserved rural regions.
Key outcomes in 2024 and since program launches:
- 580,000+ rural residents in Liberia gained access to 2G and 4G network services through 128 base stations covering 100+ schools via the Orange Liberia and ZTE “Enhance Rural Area” project launched in 2024
- Ethiopia 4G coverage expanded from 37.5% (2024) to 70.8% (2025) through ZTE-supported Signal Reach Program and Ethio Telecom deployment, a 33.3-percentage-point increase
- 87 global philanthropic programs launched in Colombia, Indonesia, South Africa, and other markets covering education, poverty alleviation, environmental protection, and disaster relief
- Xinghua and Xingtianshi student aid programs spanning 15 provinces, 23 cities, and 29 counties across rural China
- 310 volunteer activities conducted globally by ZTE employees in 2024
- ZTE established an emergency communications system using Space-Air-Ground Integrated Networks (SAGINs) for disaster relief, deployed during Typhoon Yagi in Hainan province and floods in Huludao, Liaoning in 2024
Community and Social Impact
ZTE’s community impact programs span six continents through 87 global philanthropic programs, with employee volunteers conducting 310 activities globally in 2024 covering education support, poverty alleviation, environmental protection, and disaster relief. The company’s emergency communications SAGIN platform, activated during multiple 2024 natural disasters in China, demonstrates a direct technology deployment pathway for disaster resilience that converts ZTE’s commercial network products into community safety infrastructure. ZTE’s IoT-enabled agricultural sustainability platform, deployed in Liberia alongside the rural network project, provides farmers with smart precision irrigation and pest and disease monitoring access, linking digital connectivity deployment directly to food security and rural livelihood improvement.
Governance and Transparency
ZTE established a Strategy and Sustainability Committee in August 2024, upgrading the governance structure by integrating the former Strategy Committee with sustainability oversight into a single body chaired by the company’s Chairman, with the CEO as deputy director and all EVPs and the Head of Strategy and Investment as standing members. The company also established a Science and Technology Ethics Committee in 2024, responsible for promoting responsible innovation under the “Tech for Good” principle, providing governance oversight of AI deployment ethics, product safety standards, and technology-for-good criteria across ZTE’s full product and service portfolio. In 2024, 100% of ZTE’s compliance control points were managed online, linked to its digital transformation program, with all relevant executive ESG performance tied to dual-carbon project completion metrics in the annual appraisal and bonus system.
Key governance outcomes in 2024:
- Strategy and Sustainability Committee established August 2024, integrating strategy and ESG decision-making under a single Board-level governance body
- Science and Technology Ethics Committee established in 2024 to govern responsible AI and technology innovation
- 100% of compliance control points managed online in 2024, reinforcing digital integrity management
- Third-party independent assurance obtained on all primary sustainability performance data for 2024, published in the 2024 Sustainability Report Appendix
- “A” rating in Shenzhen Stock Exchange information disclosure assessment for four consecutive years through 2024
- CDP A List rating achieved for 2024 disclosures, confirmed in 2025, the second consecutive CDP A List placement
- EcoVadis Gold Medal awarded January 2025 for 2024 performance, top 4% globally
- SBTi dual approval received in 2024: first large-scale ICT company in China to receive SBTi approval for both near-term 1.5°C and long-term net-zero targets simultaneously
Technology and Innovation
ZTE’s sustainability technology program is organized across four green pillars: green operations (campus energy management, PV deployment, carbon monitoring), green supply chain (supplier carbon audits, dual-carbon IT integration), green digital foundation (5G energy efficiency, data center PUE reduction), and empowerment for green industry development (sPV all-scenario overlay solar solution, green PON fiber solution). ZTE’s sPV all-scenario overlay solution, recognized with the “Outstanding Green Fibre Use Case” award by Informa in October 2024, increases solar power generation by over 20% compared to conventional deployment methods, and has been deployed to support network operators in converting existing infrastructure into renewable-powered connectivity assets. ZTE’s Carbon Visibility App, covering 83% of major internal carbon emission categories, represents a self-developed real-time carbon monitoring tool that underpins ZTE’s ability to deliver its 13.4% year-on-year Scope 1 and 2 reduction in 2024 without dependence on delayed third-party carbon management platforms.
Global Partnerships and Advocacy
ZTE holds membership in the UN Global Compact, the Global Enabling Sustainability Initiative (GeSI), and is a key participant and pioneer in the ITU’s Partner2Connect (P2C) Digital Coalition, committing to bridging the global digital divide through rural connectivity deployment across underserved markets in Africa, Asia, and Latin America. ZTE’s participation in the IFRS Sustainability Reference Group (SRG), through a designated expert from its Sustainability Work Team, positions ZTE as an active contributor to ISSB standard-setting processes for sustainability disclosure, giving the company direct input into the frameworks that will govern global ESG reporting requirements for ICT companies. Through the Joint Audit Cooperation (JAC) for telecommunications supplier auditing and its own CSR audit program covering 261 production suppliers in 2024, ZTE contributes to establishing human rights and environmental standards across the shared ICT hardware supplier base in Asia.
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://developingtelecoms.com/telecom-technology/energy-sustainability/18621-zte-outlines-sustainable-development-strategy-and-achievements.html
https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/gsma_study/zte-increasing-clean-energy-in-manufacturing-and-products
https://www.prnewswire.com/news-releases/zte-releases-sustainability-report-2024-empowering-a-sustainable-future-through-digital-intelligence.html
https://www.zte.com.cn/global/about/news/zte-recognized-with-ecovadis-gold-medal-for-sustainability-excellence-ranked-among-the-top.html
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/green_lowcarbon/pdf/ZTE%20Net-Zero%20Strategy.pdf
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/mediares/zte/files/pdf/white_book/zte_corporation_conflict_minerals_report_2024_march_2025.pdf
https://www.zte.com.cn/global/about/news/ZTE-honored-as-ESG-Annual-Communication-Influence-Pioneer-by-Phoenix-Satellite-TV.html
Progress vs. Target Tracker
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://ditchcarbon.com/organizations/zte
https://www.smartenergydecisions.com/news/zte-reduces-emissions-13-4/
https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/gsma_study/zte-increasing-clean-energy-in-manufacturing-and-products
Key Sustainability Innovations and Technologies
ZTE’s sustainability innovation program spans self-built carbon monitoring software, a four-pillar green technology deployment framework, dual SBTi approval, and a direct humanitarian connectivity platform reaching underserved populations across Africa and Asia. Five innovations define the company’s 2024 position.
- ZTE’s Carbon Visibility App, a self-developed internal carbon monitoring platform covering 83% of major emission categories, provides real-time carbon data tracking across ZTE’s operational sites without dependence on delayed third-party aggregation, enabling ZTE’s supply chain and facility teams to make real-time decarbonization decisions, directly underpinning the 13.4% year-on-year Scope 1 and 2 reduction achieved in 2024
- The sPV all-scenario overlay solar solution, which increases solar power generation by over 20% compared to conventional deployment, has been deployed at scale globally through ZTE’s green products business, contributing to ZTE’s delivery of over 400 MW of solar capacity to operator customers, saving over 447 million kWh annually, and earning the “Outstanding Green Fibre Use Case” award from Informa in October 2024
- ZTE’s photovoltaic campus program scaled cumulative self-operated PV installed capacity to 37.6 MW by end of 2024, a 12-fold increase over two years, generating 30 million kWh of electricity annually from ZTE’s own manufacturing campuses and administrative buildings, a structural shift from energy consumption to partial on-site energy generation
- The dual SBTi-validated target structure (52% absolute Scope 1 and 2 reduction by 2030; 52% Scope 3 physical intensity reduction by 2030; operational net-zero by 2040; full value chain net-zero by 2050) represents the most complete SBTi-aligned climate target architecture among Chinese ICT hardware vendors, backed by the Net-Zero Strategy White Paper and executive compensation linkage from 3% to 10% of bonuses for relevant senior management
- The Signal Reach Program and rural network deployment model, exemplified by the 128-site Liberia project with Orange covering 100+ schools and 580,000+ residents, and the Ethiopia partnership accelerating 4G coverage from 37.5% to 70.8%, converts ZTE’s commercial infrastructure deployment into a scalable digital inclusion platform applicable across underserved markets in Africa and Asia where conventional commercial connectivity investment alone cannot generate a sufficient return
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/green_lowcarbon/pdf/ZTE%20Net-Zero%20Strategy.pdf
https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/gsma_study/zte-increasing-clean-energy-in-manufacturing-and-products
https://www.zte.com.cn/content/zte-site/www-zte-com-cn/global/about/magazine/zte-technologies/2026/special-topic–ai-reshaped-ran–air-ran-/success-stories/zte-signal-reach-program
Measurable Impacts
ZTE’s 2024 Sustainability Report covers calendar year 2024 across all ZTE Corporation subsidiaries, with third-party independent assurance on all primary sustainability performance data.
Carbon and energy:
- Scope 1 GHG emissions in 2024: 43,102 tCO2e
- Scope 2 GHG emissions in 2024: 393,636 tCO2e
- Total Scope 1 and 2 in 2024: approximately 436,738 tCO2e, a 13.4% year-on-year reduction
- Total Scope 3 in 2024: approximately 50.67 million tCO2e, representing approximately 99% of ZTE’s total GHG footprint
- Total Scope 1, 2, and 3 combined reduction in 2024 versus 2023: 14.317 million tonnes
- Energy efficiency improvement versus 2021: 20% achieved in 2024
- Electricity savings from internal energy initiatives: 45 million kWh in 2024
- Annual PV electricity generation from ZTE campuses: 30 million kWh
- Cumulative PV installed capacity (self-operated): 37.6 MW by end of 2024, 12-fold increase in two years
- First green power certificate purchase: 5.33 million kWh in 2024
- Customer energy savings through ZTE green products: 447 million kWh annually from 400+ MW deployed solar capacity
- Telecom product physical emissions intensity (use and maintenance phase): 8.39% year-on-year reduction in 2024
- Terminal product absolute lifecycle GHG emissions: 5.02% year-on-year reduction in 2024
Supply chain and social impact:
- 261 production supplier onsite CSR audits in 2024, covering 86.9% of top 90% suppliers by procurement amount
- 100 suppliers guided through organizational carbon audits; 10 suppliers set SBTi-aligned carbon reduction targets
- 580,000+ rural residents in Liberia connected for the first time through 128-site ZTE network deployment covering 100+ schools
- Ethiopia 4G population coverage expanded from 37.5% to 70.8% through ZTE-supported deployment
- 310 employee volunteer activities globally in 2024
- 87 global philanthropic programs active in Colombia, Indonesia, South Africa, and beyond
- 121 supplier representatives participated in UN Women career development program
- EcoVadis Gold Medal: top 4% globally; top 3% in Labor and Human Rights; top 3% in Sustainable Procurement
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://ditchcarbon.com/organizations/zte
https://www.smartenergydecisions.com/news/zte-reduces-emissions-13-4/
https://www.zte.com.cn/global/about/news/zte-recognized-with-ecovadis-gold-medal-for-sustainability-excellence-ranked-among-the-top.html
Challenges and Areas for Improvement
ZTE faces five material sustainability challenges requiring structured responses in the next reporting cycle.
Scope 3 absolute scale: 99% of total GHG footprint with limited near-term absolute target: ZTE’s total Scope 3 GHG emissions reached approximately 50.67 million tCO2e in 2024, representing approximately 99% of the company’s total GHG footprint, consistent with the ICT hardware vendor profile where the use phase of sold products dominates the value chain carbon impact. ZTE’s SBTi-validated Scope 3 target is structured as a 52% physical intensity reduction per terabyte throughput by 2030, not an absolute Scope 3 reduction target, and is explicitly accompanied by a commitment to “ensure no increase in total Scope 3 absolute emissions” rather than an absolute halving. While the physical intensity metric is appropriate for a company selling network equipment that processes exponentially growing data volumes, ZTE has not published annual absolute Scope 3 trajectories from 2021 through 2030 that would allow investors to verify that the “no increase” commitment is structurally on track as product sales and deployment volumes grow.
Renewable electricity coverage at early stage: ZTE completed its first green power certificate purchase of 5.33 million kWh in 2024, and has 37.6 MW of cumulative self-operated PV installed capacity generating 30 million kWh annually. However, ZTE has not published a total annual electricity consumption figure, a renewable electricity percentage of total consumption, or a time-bound renewable electricity coverage target comparable to Vodafone’s 99.8% or Verizon’s 56% and 100% by 2030 commitment. This gap makes it impossible for external stakeholders to assess what proportion of ZTE’s grid electricity draw is currently covered by renewables and whether the 2030 and 2040 net-zero commitments are supported by a credible renewable energy procurement trajectory.
Geopolitical risk and export control compliance: material ESG governance exposure: ZTE has previously been subject to U.S. export restrictions and compliance investigations that required sustained remediation, including the appointment of a compliance monitor, restructuring of compliance governance, and significant financial penalties. The company’s 2024 Sustainability Report addresses export control compliance as a distinct governance module within its compliance framework, confirming that 100% of compliance control points are managed online. While the digital compliance architecture reflects meaningful structural improvement, ZTE’s geopolitical exposure remains the highest of any peer covered in this series, and compliance incidents in markets where ZTE operates represent a persistent ESG governance risk that no digital compliance tool fully eliminates.
Limited water and biodiversity quantitative disclosure: ZTE’s 2024 Sustainability Report discloses water stewardship under Environmental Impact Management but does not publish a standalone water withdrawal volume figure, a water reduction target, or a water intensity metric for its manufacturing operations, in contrast to the disclosure standards now expected under HKEX Appendix C2 and ISSB IFRS S2. As ZTE’s manufacturing footprint in China operates in water-stressed industrial regions, and as AI-driven data center construction accelerates water-intensive cooling demands globally, the absence of water baseline data and a forward commitment represents an emerging disclosure gap relative to CSRD and ISSB-aligned peer reporting requirements.
Carbon audit reach into supply chain: 10 suppliers with targets against a 261-supplier audit base: ZTE audited 261 production suppliers on CSR performance in 2024 and guided 100 suppliers through organizational carbon audits, but only 10 suppliers set individual carbon reduction targets. Given that Scope 3 value chain emissions represent approximately 99% of ZTE’s total GHG footprint, the gap between 261 audited suppliers, 100 with carbon audit completion, and only 10 with actual carbon reduction targets illustrates a significant funnel loss in supply chain decarbonization. Scaling from 10 to a substantially higher number of suppliers with science-based or quantified carbon reduction commitments is the single most impactful action ZTE can take toward closing the gap on its 2030 Scope 3 intensity target.
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/green_lowcarbon/pdf/ZTE%20Net-Zero%20Strategy.pdf
https://ditchcarbon.com/organizations/zte
https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/gsma_study/zte-increasing-clean-energy-in-manufacturing-and-products
Future Plans and Long-Term Goals
ZTE’s sustainability roadmap extends through four structured phases covering 2021 to 2050, with the 2025 to 2030 window representing the most operationally intensive period for renewable energy deployment, supplier carbon target scaling, and Scope 3 intensity reduction across the product portfolio. The four-phase net-zero structure covers: Phase 1 (2021 to 2025, establishing green operations baseline, carbon monitoring, and initial renewable energy procurement); Phase 2 (2026 to 2030, achieving SBTi-validated interim targets for Scope 1, 2, and 3 intensity); Phase 3 (2031 to 2040, achieving operational carbon neutrality); and Phase 4 (2041 to 2050, achieving full value chain net-zero).
By 2025, ZTE targets:
- Completion of Phase 1 green operations baseline, including established green electricity procurement processes, scaled PV installed capacity, and carbon data coverage across all major emission categories
By 2030, ZTE targets:
- 52% absolute reduction in Scope 1 and 2 GHG emissions from 2021 base year (SBTi validated)
- 52% reduction in Scope 3 physical emissions intensity per unit of product performance from 2021 base (measured by terabyte throughput for telecom products)
- No increase in total Scope 3 absolute emissions from 2021 base
By 2040, ZTE targets:
- Operational carbon neutrality (Scope 1 and 2): 90% absolute reduction from 2021, with remaining emissions offset through verified removals
- Net-zero GHG emissions across full value chain (Scope 1, 2, and 3): minimum 90% absolute reduction with remaining residual emissions offset or removed
ZTE leads Chinese ICT peers on SBTi dual approval and CDP A List rating, having become the first large-scale ICT company in China to hold both simultaneously. ZTE trails global peers including Ericsson and Nokia on renewable electricity coverage percentage disclosure and absolute Scope 1 and 2 reduction depth from a base year, and trails peers on supplier science-based target adoption rates, with only 10 suppliers having set individual reduction targets from a 261-supplier audit base in 2024.
Source
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/green_lowcarbon/pdf/ZTE%20Net-Zero%20Strategy.pdf
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://ditchcarbon.com/organizations/zte
https://developingtelecoms.com/telecom-technology/energy-sustainability/18621-zte-outlines-sustainable-development-strategy-and-achievements.html
Comparisons to Industry Competitors
ZTE’s two primary global ICT equipment vendor peers with published and verifiable ESG data for direct comparison are Ericsson and Nokia. All three are major 5G infrastructure vendors with global supply chains, manufacturing operations, and extensive Scope 3 footprints driven by the use phase of sold telecommunications equipment.
ZTE vs. Ericsson vs. Nokia
Nokia leads ZTE on absolute renewable electricity coverage, having achieved 100% renewable electricity in its own operations as early as 2021, four years ahead of ZTE’s first structured green electricity procurement transaction in 2024. Ericsson leads both Nokia and ZTE on Scope 1 and 2 absolute reduction percentage from baseline, with a 65%+ reduction from 2016 to 2023, compared to ZTE’s 13.4% year-on-year reduction in 2024 from the 2021 base year. ZTE leads both Ericsson and Nokia on EcoVadis rating (Gold, top 4% globally, top 3% in Labor and Human Rights), on CDP A List consecutive placement as a Chinese company, and on the scale and geographic specificity of its rural connectivity deployment programs in underserved African and Asian markets.
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://www.ericsson.com/en/sustainability
https://www.nokia.com/about-us/sustainability/
What to Watch: 12 to 18 Month Indicators
Three forward-looking signals will most directly determine whether ZTE’s sustainability standing improves, holds, or deteriorates through mid-2027.
1. Renewable electricity coverage disclosure and first full-year green power procurement result (2025 reporting): ZTE completed its first green electricity purchase of 5.33 million kWh in 2024 and has 37.6 MW of self-operated PV generating 30 million kWh annually. The 2025 annual sustainability data, due in mid-2026, will reveal whether ZTE has published its total annual electricity consumption, its renewable electricity percentage, and a time-bound 100% renewable electricity commitment comparable to the RE100 standard already adopted by Nokia and approached by Ericsson. Without these disclosures, ZTE cannot demonstrate to ESG rating agencies and institutional investors that the 2030 and 2040 operational net-zero commitments are backed by a credible renewable energy procurement pipeline rather than a phased PV installation program alone.
2. Supplier SBTi target adoption scaling from 10 to a meaningful percentage of the supplier base (2025 annual cycle): ZTE guided 100 suppliers through organizational carbon audits and assisted 10 in setting individual carbon reduction targets in 2024. Given that Scope 3 value chain emissions represent 99% of ZTE’s total GHG footprint, the pace of supplier target adoption from 10 to a substantially higher number of suppliers with quantified reduction commitments is the single most material indicator for whether ZTE’s 2030 Scope 3 physical intensity target is achievable. The 2025 reporting cycle will confirm whether the dual-carbon IT system integration and the 100-supplier carbon audit program are converting into actual supplier-level science-based target commitments or remaining at the awareness-building stage.
3. Cumulative Scope 1 and 2 reduction percentage from 2021 baseline published (2025 and 2026 reporting): ZTE’s SBTi-validated target requires a 52% absolute reduction in Scope 1 and 2 from the 2021 base year by 2030. The 2024 Sustainability Report confirms a 13.4% year-on-year reduction in 2024, but does not publish the cumulative reduction from the 2021 base year as a single disclosed percentage, making it impossible for external stakeholders to assess how far along the 52% by 2030 pathway ZTE actually stands at the end of 2024. Publishing the 2021-to-2024 cumulative Scope 1 and 2 reduction percentage in the 2025 Sustainability Report would be the single most important transparency improvement ZTE can make to confirm that its SBTi-validated target trajectory is on track.
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/gsma_study/zte-increasing-clean-energy-in-manufacturing-and-products
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/green_lowcarbon/pdf/ZTE%20Net-Zero%20Strategy.pdf
ZTE’s 2024 sustainability performance reflects a company that has built meaningful governance architecture for climate commitments, achieved recognition from external validators (SBTi dual approval, CDP A List, EcoVadis Gold), and demonstrated operational emission reductions through a disciplined energy efficiency program, all while sustaining revenue growth. The 13.4% year-on-year Scope 1 and 2 reduction in 2024 and the 14.317 million tonne combined Scope 1, 2, and 3 reduction versus 2023 are the largest single-year absolute improvements in ZTE’s reporting history, and the 12-fold increase in self-operated PV capacity over two years demonstrates that renewable energy deployment on owned infrastructure is accelerating. ZTE’s rural connectivity deployment in Liberia, Ethiopia, and other African markets, reaching 580,000+ previously unconnected residents and expanding national 4G coverage by 33 percentage points in Ethiopia in one year, gives ZTE one of the most tangible and geography-specific digital inclusion impact records of any ICT hardware vendor reviewed in this series.
The two structural gaps that practitioners and ESG analysts should monitor are renewable electricity coverage transparency and supply chain Scope 3 target adoption depth. ZTE’s 2024 Sustainability Report does not disclose its total annual electricity consumption, its renewable electricity percentage, or a time-bound 100% renewable electricity commitment, creating a disclosure gap that makes direct peer benchmarking on this metric impossible and places ZTE behind Nokia (100% renewable since 2021) and Ericsson (60%+ renewable in 2023) on transparency and procurement progress. The gap between 261 CSR-audited suppliers and only 10 suppliers with individual carbon reduction targets confirms that ZTE’s supply chain decarbonization program, while structurally sound in its audit and carbon monitoring design, has not yet translated into supply chain-wide carbon commitment adoption at the depth that its 99% Scope 3 share of total GHG footprint requires.
Three strategic takeaways for practitioners benchmarking or replicating ZTE’s approach:
- ZTE’s self-developed Carbon Visibility App, covering 83% of major internal carbon emission categories in real time without third-party platform dependence, represents a replicable internal carbon monitoring infrastructure model for any large-scale hardware manufacturer seeking to manage Scope 1 and 2 reduction decisions at operational speed, avoid data latency in reporting cycles, and reduce dependence on external carbon management software licensing costs
- The dual SBTi approval structure, combining a near-term 1.5°C intensity target for Scope 3 (per terabyte throughput) with an absolute Scope 1 and 2 reduction target, demonstrates that hardware-intensive companies can design SBTi-compliant target architectures that are appropriate for high-data-growth business models without committing to Scope 3 absolute targets that would penalize the company’s commercially driven network expansion, providing a replicable target-setting model for ICT hardware vendors, cloud infrastructure providers, and semiconductor manufacturers
- The rural network deployment model in Liberia and Ethiopia, structured as a commercial infrastructure project with digital inclusion, agricultural IoT, educational connectivity, and women’s empowerment co-benefits built into the project design rather than treated as separate CSR programs, provides a replicable template for ICT vendors seeking to convert infrastructure deployment contracts in underserved markets into verifiable ESG social impact outcomes that can be reported against UN SDG indicators and disclosed in sustainability reports with specific beneficiary count data
Source
https://www.zte.com.cn/content/dam/zte-site/investorrelations/en_announcement/2025030607.pdf
https://www.zte.com.cn/content/dam/zte-site/res-www-zte-com-cn/green_lowcarbon/pdf/ZTE%20Net-Zero%20Strategy.pdf
https://www.zte.com.cn/global/about/news/zte-recognized-with-ecovadis-gold-medal-for-sustainability-excellence-ranked-among-the-top.html
https://www.gsma.com/solutions-and-impact/connectivity-for-good/external-affairs/gsma_study/zte-increasing-clean-energy-in-manufacturing-and-products
