XPENG receives MSCI ESG Rating of AA making it a top carmaker for ESG performance
- Dedication to EV technology innovation brings remarkable growth potential
XPeng Inc., a leading Chinese smart electric vehicle company, has announced it received an MSCI ESG rating of AA for the year 2022. Obtained on September 27, 2022, it is the Company’s third consecutive annual AA rating by MSCI ESG Research, ranking it top among carmakers worldwide for ESG performance.
In addition, on September 23, XPENG received an industry-leading ESG score of 49 from the Dow Jones Sustainability Index (DJSI), representing a 48% increase from 2021 and a leading score among Chinese automakers.
“These latest ESG ratings from the world’s leading indexes represent a powerful commendation of the Company’s commitment to sustainability and best ESG practices,” said He Xiaopeng, Chairman and CEO of XPENG.
“As a leading Smart EV brand dedicated to full-stack, in-house technology advancement, we strive to fulfill our responsibilities as a global corporate citizen with a comprehensive ESG framework and practices that address the evolving needs of our industry, customers, environment and our society. We aspire to be a leading force in the worldwide effort to promote carbon neutrality and shape the future of sustainable mobility,” He said.
See related article: XPeng Releases 2021 ESG Report
The MSCI AA ESG rating recognizes the Company’s achievement in reducing carbon footprint and its growth potential driven by its clean technology innovation. MSCI ESG Research provides ratings for companies on a scale of AAA (leader) to CCC (laggard), according to their exposure to industry-specific ESG risks and the ability to manage those risks relative to peers.
XPENG outperformed the industry in the latest DJSI ESG rating in multiple categories including business ethics, data security, product quality, environmental factors and carbon emissions. The DJSI, a globally renowned ESG ratings index, holistically assessed companies according to the most relevant criteria in each sustainability dimension based on their weight in the assessment and their current or expected significance for the industry.
In May 2022, the Company disclosed in its 2021 ESG report that its Smart EVs delivered in 2021 will reduce CO2 emissions by approximately one million metric tons over their entire lifecycle, compared to internal combustion engine vehicles. XPENG integrates environmentally-friendly engineering in its vehicles from the design stage, reducing energy consumption by improving wind resistance control, boosting efficiency of the electric drive system and controlling low-voltage power consumption. In addition, XPENG actively adopts various measures to reduce energy consumption in production. Since the photovoltaic power generation projects at XPENG’s Zhaoqing plant came into operation in late 2021, the plant has reduced CO2 emissions by 1,531 metric tons. In 2021, XPENG formed a carbon neutrality working group, launching a series of projects to reduce the Company’s carbon emissions and pursue company-wide carbon neutrality goals.