Huawei Digital Power's Net-Zero Targets Validated by SBTi

[London, UK, October 17, 2024] Huawei Digital Power's net-zero targets have been validated by the Science Based Targets initiative (SBTi). Huawei Digital Power is the world's first digital energy product and solution provider to receive this validation.

SBTi is a collaboration between Carbon Disclosure Project (CDP), the United Nations Global Compact, the We Mean Business Coalition, the World Resources Institute (WRI), and the World Wide Fund for Nature (WWF). It helps enterprises to set science-based carbon targets and has provided trusted standards for global leading companies in reducing carbon emissions. As more and more organizations around the world set carbon neutrality goals, participating in and setting science-based carbon targets demonstrate enterprises' sense of responsibility and active practice in achieving green, low-carbon, and sustainable development.

As the world's first organization to standardize the definition of net-zero, SBTi proposes four steps to achieve net-zero targets: near-term targets, long-term targets, neutralize residual emissions, and Beyond Value Chain Mitigation (BVCM). According to SBTi's Corporate Net-Zero Standard, enterprises should set both near-term (5–10 years) and long-term (by 2050 and earlier) science-based targets. As a pioneer in the digital energy sector actively responding to the global green and low-carbon initiative, Huawei Digital Power continuously explores and practices key energy transition paths including decarbonization, electrification, digitalization, and intelligence. It is the world's first digital energy product and solution provider to have its targets validated by SBTi, and is committed to promoting the sustainable development and contributing to global climate actions.

Huawei Digital Power is committed to building a low-carbon governance system for the entire value chain and promoting zero-carbon actions spanning products, supply chain, and operations:

• Its product design incorporates low-carbon and environmentally friendly concepts throughout the entire product lifecycle, exploring and offering innovative clean and energy-saving products and solutions that help customers achieve zero-carbon transformation. In 2022, Huawei was awarded the world's first Carbon Footprint Verification (CFV) for inverter products issued by the British Standards Institution (BSI), a key milestone in the establishment and development of the carbon footprint management system in the PV industry.

• Its supply chain fully integrates low-carbon and environmentally friendly concepts into the overall supply chain management strategy, focusing on suppliers' low-carbon and environmentally friendly performance in each phase and assisting suppliers in building low-carbon capabilities such as carbon accounting to jointly promote the carbon reduction action of the supply chain. As of August 2024, Huawei Digital Power had guided its top 92 suppliers, which account for 90% of the total procurement amount, to carry out organizational-level carbon footprint verification, collect statistics on carbon emissions, develop emission reduction plans, and implement emission reduction projects. The first carbon-neutral green maritime shipping order from Huawei Digital Power's supply center in Shenzhen to Europe arrived at the KLG warehouse in the Netherlands on August 8, 2024 and passed third-party certification.

• Its business operations adopt measures such as energy-saving technologies, energy management, and the use of more clean energy during manufacturing and daily operations to reduce carbon emissions. Huawei Digital Power has built a green and intelligent near-zero-carbon campus for its AntoHill Campus by integrating the PV system, energy storage system (ESS), and chargers, as well as by complying with near-zero-carbon campus construction standards. The campus contains multiple functional areas, such as offices, training facilities, and labs. It uses several innovative technologies — such as building integrated photovoltaics (BIPV), refined ESS, fully liquid-cooled ultra-fast charging infrastructure, and an AI-based collaborative scheduling algorithm — to manage energy more efficiently and optimize energy usage. It is estimated that the campus can produce 1.5 million kWh of green electricity each year by making full use of the building exterior for PV installations, equivalent to reducing carbon dioxide emissions by about 871.5 tons. Efficient energy consumption and carbon emissions are visualized, manageable, maintainable, and optimizable. The annual energy consumption can be reduced by more than 50%, and the comprehensive energy saving rate can reach more than 60%.

Huawei Digital Power works with global customers to develop an ambitious blueprint for renewable energy. By the end of September 2024, Huawei Digital Power had helped customers generate 1337.7 billion kWh of green electricity, save 70.72 billion kWh of electricity, and reduce CO₂ emissions by 669 million tons, equivalent to planting approximately 914 million trees.

According to the science-based carbon targets validated by SBTi, Huawei Digital Power will achieve net-zero emission of greenhouse gases across the entire value chain by 2040.

• By 2032, absolute greenhouse gas emissions in scope 1 and 2 will be reduced by 50.4% compared with the 2022 baseline level.

• By 2032, the emissions of greenhouse gases in scope 3 will be reduced by 58.14% for every million RMB of profit compared with 2022.

• By 2040, absolute greenhouse gas emissions in scope 1, 2, and 3 will be reduced by 90% compared with the 2022 baseline level.

In receiving the SBTi validation, Huawei Digital Power has been recognized for its commitment to climate change by the world's authoritative organization. It also demonstrates our determination and sense of responsibility to help keep the global temperature rise within 1.5°C. The science-based carbon targets provide a clear guideline for achieving emission reduction across the entire value chain by 2040. Huawei Digital Power looks forward to working with more partners and upstream and downstream enterprises to promote global energy transition, so as to build a better, greener future.