Focus on Arts and Ecology

Two environmental NGOs are questioning the supply chain practices of Xiaomi, one of the world’s top smartphone makers, thepaper reports. The Institute of Public and Environmental Affairs and Lvse Jiangnan wrote an open letter to the Hong Kong Stock Exchange where Xiaomi is due to list in July following an initial public offering. The letter identifies a list of “suspected suppliers” to the company, such as Yijia electronics, which has had environmental violations every year since 2014.

The “Environmental, Social and Governance Reporting Guidelines” of the Hong Kong Stock exchange specify that environmental policies in the supply chain are “general disclosures”. Xiaomi is accused of dodging environmental risks by drawing a line between the company and its suppliers. Activists are arguing that Xiaomi’s suppliers constitute a supply chain system and so should not be considered separately.

Companies such as Apple, Samsung and Huawei have adopted regulatory measures within their supply chain systems. Founded in 2010, Xiaomi sold 92 million smartphones in 2017, making it the fifth largest smartphone brand in the world.