XPENG Maintains MSCI ESG AAA Rating, Advances Carbon Reduction and Responsible AI in 2025 ESG Report

GUANGZHOU, China, April 16, 2026 /PRNewswire/ -- XPeng Inc. ("XPENG" or the "Company,"), a leading global AI mobility technology company, today 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 highlights XPENG's progress in carbon reduction, safety and circular resource use, and outlines its AI governance approach for the first time as it expands into its physical AI ecosystem.

"As intelligent technology evolves, we must take greater responsibility in addressing challenges such as climate change, technological ethics and social inclusion, and play an active role in creating a better future," said He Xiaopeng, Chairman and CEO of XPENG. "That is the true warmth of a technology company."

Lowering carbon across the full lifecycle

XPENG continues to reduce its environmental impact, with broader global targets to follow as part of its long-term sustainability roadmap.

Based on its product carbon footprint accounting system, XPENG 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 said it aims to reduce lifecycle carbon emissions per vehicle in China by 9% by 2027, compared with 2023 levels, and cut 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.

Embedding responsible AI into products and operations

As XPENG expands beyond smart electric vehicles into a broader physical AI ecosystem — spanning intelligent driving, robotics and future mobility — the company has introduced a full-lifecycle AI governance framework in its ESG report.

The framework embeds governance across every stage of AI development, from research and training to deployment and decommissioning, covering areas such as data security, ethical development and regulatory compliance. All AI models and third-party services undergo strict approval and validation processes, while deployed systems are supported by continuous monitoring and risk management mechanisms.

XPENG is also promoting responsible AI use through industry collaboration and public education initiatives.

Advancing a circular green ecosystem

XPENG is strengthening its full-lifecycle circular approach to resource use, including efforts across batteries and materials.

The company is developing systems to support the responsible management for end-of-life batteries, and is exploring opportunities for battery reuse and second-life applications.

Beyond batteries, XPENG is advancing closed-loop manufacturing. Its aluminum recycling program enables 100% 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 real-world trust

Beyond environmental impact, XPENG is strengthening safety and trust across its vehicles, combining intelligent technologies with engineering design to improve real-world outcomes.

Its advanced driver assistance technologies, including Automatic Emergency Braking (AEB) and Automatic Emergency Steering (AES), enable proactive risk detection and intervention, helping to avoid more than 376,000 potential collision risks, according to internal system data.

The company has also built a comprehensive passive safety system, featuring an ultra-high-strength body structure and multi-layer occupant protection mechanisms, alongside a three-level battery safety architecture covering intrinsic, passive and active protection.

At the same time, XPENG is strengthening data privacy and security as a core part of product design. The company has embedded "privacy by design" principles into its systems, supported by data protection impact assessments and compliance with global regulations such as GDPR.

People and value chain responsibility

XPENG is strengthening sustainability across its value chain, maintaining a 100% signing rate for its supplier Integrity Commitment Letter. It is also expanding ESG-focused supplier management systems, including over 800 supplier training sessions and strengthened audits covering business ethics, environmental performance and responsible sourcing.

Internally, the company continues to invest in employee development, with over 97% of employees receiving training in 2025.

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 the end of 2025, XPENG had invested a total of over CNY 34.88 million in public welfare and charity.

Please view the full 2025 ESG report here: https://www.xpeng.com/esg

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