Since 2011, Huawei has been a member of the Green Choice Alliance, which was established by the NGO Institute of Public and Environmental Affairs (IPE). IPE maintains a national database of corporate environmental performance, which can be used for supplier sustainability management. In 2014, we began using IPE's Ferret software to regularly investigate 465 suppliers' environmental performance and urge them to improve management. We have required low-performing suppliers to solve their issues within a specific period, and have regularly provided information about query results and improvement progress to IPE. On IPE's 2015 Greening the Global Supply Chain – Corporate Information Transparency Index (CITI), Huawei was scored as the leading Chinese company and ranked 7th in the ICT sector.
Greener Supply Chain
The Greener Supply Chain Pilot Project is a pilot initiative between Huawei and the Human Settlements and Environment Commission of Shenzhen. In 2015, we expanded the pilot project further down our supply chain. Ten of our suppliers selected several of their own suppliers to join the pilot, and Huawei invited nine other large companies and their suppliers to participate. Together, we aim to create a learning network that helps build a greener supply chain.
Through factory tours, expert-led training, technical exchanges, and experience sharing, we have encouraged suppliers to embed green requirements into their products and production process; analyze financial results from the perspective of environmental protection; identify opportunities for risk control, efficiency improvements, and business innovation; and design and implement improvement measures. Industry peers are encouraged to align their goals. We also enable upstream and downstream players to share experience, study best practices, and explore new cost-effective ways to increase their expertise in environmental protection.
Building on the experience of the pilot project over the past two years, we have created a new model (see below) for building a sustainable green supply chain. At a project review meeting in 2015, experts from the Greener Supply Chain Pilot Project praised our market-driven approach to building a greener supply chain. At green supply chain workshops held in Dongguan and Tianjin, in China, we also shared our practices for building a greener supply chain. Our efforts were recognized by experts in attendance.
Reducing Supply Chain Carbon Footprint
In 2012, we launched a pilot program for supplier energy conservation and emissions reductions. The aim is to encourage suppliers to audit their energy usage, identify opportunities to reduce energy use and emissions, align with industry-leading practices and business case studies, and develop and implement the energy conservation and emissions reduction plan. In 2015, 35 suppliers joined the program, reducing CO2 emissions by over 72,000 tons.