In a volatile world, a consistent sustainability policy is critical

Sustainability demands progress on several fronts at once. For example, societies must reduce factory energy use, roll out EVs, and ensure that communications equipment can operate off-grid to extend educational opportunities to children in remote areas.

China-based telecoms giant ZTE pursues all of these. CDP, a non-profit that runs an environmental disclosure system, has included the company on its CDP A list for the last three years.

ZTE's progress against ambitious goals for carbon emissions reduction and digital inclusion is detailed in its 2025 Sustainability Report.

ZTE's Chief International Ecosystem Representative, CHEN Zhiping, says ZTE has always viewed sustainability as an essential part of its DNA rather than a temporary initiative, with the company reporting on its progress for the last 18 years. Even so, they add, the business has had to adjust its strategy "to keep pace with the evolving global landscape."

The report shows how ESG runs through the corporation from board level down to the individual teams responsible for executing the strategy, and outward into the supplier and customer ecosystem. It takes a double materiality assessment approach to sustainability, weighing each topic on both its financial impact to the company and its broader social and environmental consequences.

ZTE's Digital Green Path strategy underpins these efforts across four dimensions that target science-based sustainability goals: corporate operations, supply chain, digital infrastructure, and industry empowerment.

On the technology side, the telco's Connectivity + Computing strategy ties AI and ICT together. It says that AI transformation depends on infrastructure that spans both connectivity and compute, and must do so as sustainably as possible.

That premise feeds into ZTE’s All in AI, AI in All strategy, which envisages AI transforming both industrial and consumer technology.

As CHEN Zhiping claims, "ZTE deploys AI aggressively to cut emissions and improve resource efficiency, while simultaneously reducing AI's own footprint through energy-efficient design, green infrastructure, supplier engagement and governance, and beyond."

That approach is essential, as AI itself poses a serious sustainability challenge. The buildout is already absorbing huge and rising amounts of energy. The International Energy Agency reported this year that electricity consumption from datacenters is set to double by 2030, with "power use from those focused on AI ... poised to triple."

AI risk and opportunity

ZTE's own transition risk analysis acknowledges that the expansion of AI datacenters "poses serious challenges for most operators in achieving carbon neutrality by 2030."

That makes power management and longer-term sustainability central to product design. An integrated approach to power efficiency across compute and communications infrastructure lets datacenter operators and telcos alike extract more value from their investments and meet their own ESG obligations.

At the same time, says CHEN Zhiping, "AI is a powerful enabler of sustainability – helping industries forecast renewable energy supply, optimized energy consumption, monitor emissions, and improve efficiency across the value chain."

ZTE is bolstering this with a dedicated carbon-reduction program for its computing products, alongside work to refine AI algorithms and computing-networking products.

In 2025, the Sustainability Report shows, the corporation installed the first batch of immersion liquid-cooled datacenters in China, for China Telecom Intelligent Cloud Base Huailai Park. The installation will deliver in a PUE of 1.15 and save more than 1.1 million kWh of electricity per year. This site is expected to be a model for other datacenter developments in the country.

When it comes to its networking products, it said a combination of improved battery designs, dynamic energy saving technologies, and network search optimization for communication modules, means its latest flagship mobile phones achieved an approximately 30% improvement in overall battery life compared with the previous generation of flagships.

While ZTE’s sustainability strategy focuses on measurable science-based targets, it does not ignore the human dimension. The Sustainability Report shows that ZTE treats digital inclusion as inseparable from its engineering focus on green outcomes.

Wireless and communications technologies widen inclusion in their own right, particularly by extending educational opportunities into remote rural areas.

There’s plenty to play for. CHEN Zhiping points out that more than a quarter of the world remains unconnected, but raw connectivity alone isn't enough. ZTE asks whether a solution is affordable, stable, and accessible, which means weighing how quickly and easily technology can be deployed and, increasingly, whether it can run off-grid on sustainable power.

In practice, that includes developing local telco talent in Vietnam through university collaborations and supporting schools in the country. More immediately, ZTE deployed communications hubs and emergency supplies in Myanmar after the country experienced a 7.9 magnitude earthquake.

Those human-focused efforts also deliver measurable outcomes. In 2025, with its registered volunteers surpassing 20,000, ZTE implemented 89 public welfare projects across 15 countries and regions, which directly benefited more than 100,000 people.

Supply side solutions

Sustainability depends on ecosystems, and businesses sit inside them. ZTE puts considerable effort into helping its suppliers improve their sustainability.

"We set clear ESG requirements for suppliers via contractual clauses and regular audits," says CHEN Zhiping. The corporation also provides training and guidance on carbon accounting and emission reduction.

In 2025, ZTE completed ESG audits for 270 suppliers, while more than 450 supplier representatives attended ESG training sessions.

The results are measurable. The latest Sustainability Report shows that in 2025, ZTE's electricity purchases fell 16.3 percent against 2021, for cost savings of almost CNY100 million. Overall energy efficiency, measured in tons of coal per CNY100 million of revenue, improved 28.39 percent. Operating carbon emissions fell 46 percent, with a compound annual reduction rate of 14.3 percent.

Reductions on this scale require attention to every part of the business. At the Shanghai R&D center, ZTE upgraded the chiller plant, swapped legacy chillers for high-efficiency magnetic levitation models, and installed matching cooling towers and pumps. The work boosted the plant’s energy efficiency ratio and delivered an overall energy saving rate of 46 percent. More broadly, carbon assessments on more than 240 products gave it full coverage across product categories.

At the other end of the scale, ZTE's green factory approach cut energy consumption per unit of output by 22.1 percent across its five manufacturing bases. Green logistics means its Chinese warehouses rely on 100 percent electric forklifts, proof of delivery is 100 percent electronic in China, and 20 percent of domestic last-mile delivery uses “new energy” vehicles.

Other strategies are more prosaic, such as powering down R&D environments during idle periods. And “extreme energy-saving measures” during short holidays saved a cumulative 820,000 kWh in 2025.

The targets ahead are demanding. They include cutting scope one emissions (directly owned and controlled) and scope two emissions (indirect emissions from purchased energy) to under half their 2021 levels by 2030. ZTE also promises a matching reduction in scope three emissions (all other indirect emissions that it does not directly control) without raising the total. By 2050, it aims to reduce total emissions, including operations and the value chain, by 90 percent against 2021, with the remainder offset or removed.

So far, ZTE has cut scope one and two emissions by 46 percent. In 2025, absolute emissions across the full lifecycle of terminal products fell by 3.05 percent.

Every business will face sustainability challenges over the coming years. As CHEN Zhiping explains, ZTE intends to use advanced technologies, including AI, to accelerate the green transformation, build and upgrade digital infrastructure, and promote digital inclusion.

But one company can only do so much. To meet the global challenge, ZTE says collective action will be needed, spanning government, business and other stakeholders.

When it comes to AI, “Key priorities include establishing unified global standards to measure AI's resource and carbon footprints, rolling out strict AI governance and ethical guardrails,” says she.

And there will have to be a broader scaling up of renewable energy and low-carbon tech for computing systems, and maturing circular models for AI hardware. ZTE’s sustainability strategy may have turned 18. But the hard work is just beginning.

Sponsored by ZTE.