Home » Is XPeng more environment-friendly than Tesla?

Is XPeng more environment-friendly than Tesla?

by SEP Editor
3 mins read
  (Photo Credit: XPeng)

XPeng Inc. (“XPeng” or the “Company”, NYSE: XPEV, HKEX: 9868.HK) released “ESG Report” that detailed the Company’s strategy and outstanding achievements in ESG performance on October 15, 2021. 

As part of its commitment to ESG, XPeng has curated an innovative core concept of X-SEG (Smart, Efficient and Green) that guides the establishment and operations of its factories and underpins all major aspects of the Company’s business operations, from supply chain management and green manufacturing, to product safety management, eco-friendly operations and governance. 

 The Company’s leadership in ESG is recognized globally. For the second consecutive year, in 2021 Xpeng received an “AA” rating from MSCI ESG Research, the highest MSCI ESG rating among automobile companies worldwide.

Photo Credit:www.sohu.com

However, in September, Tesla received an A rating from MSCI, putting it, roughly, in the upper third of companies ranked.

Additionally, MSCI ESG Research scored XPeng 10 and 9.1 in the categories of Product Carbon Footprint and the Opportunities in Clean Tech, two of the key areas that contributed to the ESG ratings. This compares with industry averages in the same categories of 7 and 5.5.

Carbon Neutrality Plan

According to the “ESG Report”,compared with the internal combustion engine vehicles, XPeng’s smart EVs delivered in 2020 reduced the carbon emission by approximately tons of CO2 equivalent. By delivering zero-emission smart cars, XPeng is able to promote energy saving and emission reduction in social mobility.

The Zhaoqing XPeng Motors Intelligent Industrial Park’s thin film pretreatment and cathode electrophoretic technology effectively reduces wastewater discharge, while slag yield is also cut down by 94%, reducing energy consumption by approximately 25%, and achieving zero emission of heavy metal pollutants.

Doubts about XPeng’s ESG report

Based on the “ESG Report”, the Board of  XPeng has established five professional committees, namely the Audit Committee, the Compensation Committee, the Nomination Committee, the Corporate Governance Committee, and the ESG Committee to enhance the Board’s efficiency.

However, XPeng has not yet publicly disclosed the composition of the ESG Committee’s members and related procedures.

This appears to be an ineffective or even non-compliant disclosure and ESG governance practice. A true ESG governance structure is critical to both incorporating ESG factors into corporate management and developing a top-down ESG culture.

You may also like

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More