Huawei Technologies (\u201cHuawei\u201d), headquartered in Shenzhen, China, is a leading information and communications technology (ICT) company with a comprehensive product portfolio in telecom networks, devices, and cloud services. As of November 2017, Huawei\u2019s products and services are sold in 170 countries, serving 1\/3 of the world\u2019s population. [1]<\/p>\n
Over the past decades, increased emission of greenhouse gases (GHG) accelerates global warming, which further results in environmental changes such as sea level rise. Although the ICT industry plays a vital role in improving resource utilization efficiency and decreasing waste and emissions, it also significantly contributes to the increased GHG emissions worldwide, as scientific studies suggest that the industry accounts for ~2% of global CO2 emissions, roughly the same as the aviation industry. [2] The production cycle of an iPhone X, for instance, would release 79kg of CO2 to the atmosphere. [3]<\/p>\n
Having manufactured and sold 131 million smartphones in 2016 alone [4], Huawei undeniably contributes to GHG emission and climate change. Indeed, Greenpeace International has blamed tech giants including Huawei for failing to reduce GHG emissions by claiming that their supply chains are still \u201cstuck in the Industrial Age. \u201d [5]<\/p>\n
In light of such public complaints that could undermine its reputation, there\u2019s an imperative need for Huawei to implement changes to its supply chain management to show that it is socially responsible. Furthermore, the Chinese government has been making unwavering efforts to make its economy more eco-friendly and sustainable. Leader of China\u2019s ICT industry and benchmark for other ICT players, Huawei is both expected and required to make its supply chain greener and contribute less to climate change.<\/p>\n
Well aware of public expectations for it to reduce GHG emission, Huawei has been taking bold strokes to innovate its supply chain to become a \u201cviable partner in the deceleration of climate change.\u201d [6] \u00a0All of Huawei\u2019s efforts towards building a supply chain with less GHG emission are part of its \u201cGreen Pipe, Green Operations, Green Partner and Green World\u201d initiative effective since 2014. [7] \u00a0The Green Partner pillar particularly requires Huawei\u2019s supply chain partners to follow green initiatives throughout a product\u2019s lifecycle from design to manufacturing. Major actions taken under \u201cGreen Partner\u201d are discussed below.<\/p>\n
First, Huawei applies a stringent selection process with sustainability-focused criteria for its upstream suppliers. In 2016, the company assessed 57 supplier candidates in terms of GHG emission control and turned down 12 of them that failed the evaluation. [8] Huawei also audited 938 of its existing suppliers with regard to GHG emission and sustainability risks, and halted cooperation with two of them because of their poor performance in meeting the minimal sustainability requirements. [9]<\/p>\n
Second, Huawei organizes training seminars and workshops for its suppliers to study state-of-the-art practices on emission reduction and assisted them in designing their own green production plans. In 2016, 20 of Huawei\u2019s suppliers both in China and globally participated in the program, having jointly reduced a total of 55,000 tons of CO2. [10]<\/p>\n
One practice Huawei recommended to its supply chain partners is the adoption of renewable packaging materials and increased recycling of the non-renewable ones with the goal of saving 12,000 cubic meters of timber consumption and reducing 6,172,000 tons of carbon dioxide emissions per annum. [11]<\/p>\n
Third and from a policymaking perspective, Huawei has been actively involved in establishing GHG emission standards for the ICT industry together with China\u2019s regulatory agencies. For example, the company played an important role in developing the IPC-1401 Supply Chain Sustainability Management System Guidance in 2016. [12]<\/p>\n
Fourth and for the longer term, Huawei has plans to increase its R&D to further develop greener production techniques that would reduce GHG emission from the manufacturing of telecom devices. [13]<\/p>\n
In addition to above, I recommend that Huawei take the following actions to reduce its supply chain\u2019s contribution to climate change.<\/p>\n
First, besides the annual sustainability audits, Huawei should conduct more regular follow-up checks, both planned and impromptu, on its suppliers to make sure they are following the green production practices both required by Huawei and learned from Huawei\u2019s training seminars. Failure to abide by the emission reduction principles could result in termination of cooperation.<\/p>\n
Second, Huawei should expand its Green Partner program from upstream manufacturers to mid- and downstream partners on the supply chain such as distributors and retailers. The company could, for example, work together with them to reduce GHG emission in product shipping and transportation.<\/p>\n
While opportunities abound, challenges and uncertainties still exist as to how effectively Huawei will be able to roll out more innovations on its supply chain to tackle climate change going forward. Although being socially responsible is critically important for an industry leader, shifting towards a greener supply chain often implies higher costs and lower profitability in the short term. Given the highly competitive ICT industry, how incentivized would Huawei be to further cut GHG emission in its supply chain remains a question mark.<\/p>\n
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Sources<\/strong><\/p>\n [1] \u201cHuawei on the Forbes World\u2019s Most Valuable Brands List\u201d https:\/\/www.forbes.com\/companies\/huawei\/<\/a><\/p>\n [2] \u201cICT and CO2 Emissions\u201d Parliamentary Office of Science and Technology, Dec 2008 http:\/\/www.parliament.uk\/documents\/post\/postpn319.pdf<\/a><\/p>\n [3] \u201c\u5386\u53f2\u6700\u9ad8 \u751f\u4ea7\u4e00\u90e8iPhone X\u6392\u653e79\u516c\u65a4\u6e29\u5ba4\u6c14\u4f53\u201dWangyi Tech<\/em>, Oct 2017 http:\/\/tech.163.com\/17\/1007\/10\/D04U4FJ200097U7S.html<\/a><\/p>\n [4] \u201cHuawei Tops China\u2019s Smartphone Market\u201d Economic Time<\/em>, Feb 2017<\/p>\n [5] \u201cGreenpeace Faults Samsung, Amazon, Huawei, and Other Tech Giants for Environment Impact\u201dGadgets<\/em>, Oct 2017 https:\/\/gadgets.ndtv.com\/others\/news\/greenpeace-faults-samsung-amazon-huawei-and-other-tech-giants-for-environment-impact-1764330<\/a><\/p>\n [6] \u201cHuawei: Deceleration of and Adaptation to Climate Change\u201d http:\/\/m.huawei.com\/enmobile\/about-us\/corporate-citizenship\/environment-protect\/climate-change\/index.htm<\/a><\/p>\n [7] \u201cHuawei to Support Its Global Supply Chain to Go Green\u201d Company News Egypt, <\/em>http:\/\/www.cnegypt.com\/2014\/08\/huawei-to-support-its-global-supply.html<\/a><\/p>\n [8] \u201cHuawei: Supply Chain Management\u201d http:\/\/www.huawei.com\/en\/sustainability\/win-win-development\/develop_supplychain<\/a><\/p>\n [9] \u201cThe Huawei 2016 Sustainability Report\u201d http:\/\/www.huawei.com\/en\/sustainability\/sustainability-report<\/a><\/p>\n [10] \u201cHuawei Energy Efficiency White Paper\u201d http:\/\/www.mobilontelecom.com\/Huawei-Energy-Efficiency-White-Paper.pdf<\/a><\/p>\n [11] \u201cHuawei Energy Efficiency White Paper\u201d http:\/\/www.mobilontelecom.com\/Huawei-Energy-Efficiency-White-Paper.pdf<\/a><\/p>\n [12] \u201cSupply Chain Social Responsibility Management System Guide\u201d http:\/\/www.ipc.org\/TOC\/IPC-1401.pdf<\/a><\/p>\n