XPENG has released its 2025 Environmental, Social and Governance (ESG) Report, maintaining an MSCI ESG AAA rating for the third consecutive year, placing it among the highest-rated global automakers.

The report outlines the company’s progress in carbon reduction, safety and circular resource use, and introduces its approach to AI governance as it expands beyond electric vehicles into a broader physical AI ecosystem.

XPENG Headquarter in Guangzhou

Carbon reduction across the lifecycle

XPENG continues to reduce its environmental impact, supported by its product carbon footprint accounting system. The company estimates that its electric vehicles could reduce more than 6 million tons of lifecycle carbon emissions in 2025 compared with gasoline vehicles, reflecting improvements in energy efficiency, low carbon design and manufacturing.

In its 2025 ESG Report, XPENG states that it aims to reduce lifecycle carbon emissions per vehicle in China by 9% by 2027, compared with 2023 levels, and to reduce operational carbon intensity by 38%. The company has also set a long-term goal of achieving carbon neutrality across its operations and product lifecycle by 2050.

Introducing a full lifecycle AI governance framework

As XPENG expands into intelligent driving, robotics and future mobility, the company has introduced a full lifecycle AI governance framework. The framework covers all stages of AI development, from research and training to deployment and decommissioning, and addresses data security, ethical development and regulatory compliance. All AI models and third party services undergo approval and validation processes, supported by continuous monitoring and risk management mechanisms. XPENG is also promoting responsible AI use through industry collaboration and public education initiatives.

Circular resource use and manufacturing efficiency

XPENG continues to develop a circular approach to resource use, including systems to support the management of end of life batteries and the exploration of reuse and second life applications.

Its aluminum recycling program enables full reuse of production scrap, reducing primary aluminum consumption by approximately 40% per vehicle.

The company is also improving water efficiency across its plants, with reclaimed water reuse exceeding 50% and saving over 280,000 tons of water in 2025.

Safety, security and trust in real world use

XPENG continues to strengthen safety and trust across its vehicles by combining intelligent technologies with engineering design. Its driver assistance technologies, including Automatic Emergency Braking and Automatic Emergency Steering, support proactive risk detection and intervention, helping to avoid more than 376,000 potential collision risks, according to internal system data.

The company has also developed a comprehensive passive safety system, including an ultra high strength body structure, multi layer occupant protection and a three level battery safety architecture. Data privacy and security remain integral to product design, with “privacy by design” principles supported by data protection impact assessments and compliance with global regulations such as GDPR.

Value chain responsibility and social impact

XPENG continues to strengthen sustainability across its value chain, with all suppliers required to sign its Integrity Commitment Letter and expanded ESG focused supplier management systems, including over 800 supplier training sessions and strengthened audits. More than 97% of employees received training in 2025, reflecting continued investment in employee development.

Beyond its operations, XPENG is advancing public welfare initiatives through its foundation and volunteer network. In 2025, the company established an emergency response mechanism for major disasters and provided support following incidents such as the Hong Kong Tai Po fire. As of year end, total contributions to public welfare and charity exceeded CNY 34.88 million.

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Amsterdam, April 20 2026

Anicecommunication – Media Relations and PR