2020 Communication on Progress

Participant
Published
  • 22-Jul-2020
Time period
  • January 2019  –  December 2019
Format
  • Stand alone document – Basic COP Template
Differentiation Level
  • This COP qualifies for the Global Compact Active level
Self-assessment
  • Includes a CEO statement of continued support for the UN Global Compact and its ten principles
  • Description of actions or relevant policies related to Human Rights
  • Description of actions or relevant policies related to Labour
  • Description of actions or relevant policies related to Environment
  • Description of actions or relevant policies related to Anti-Corruption
  • Includes a measurement of outcomes
 
  • Statement of continued support by the Chief Executive Officer
  • Statement of the company's chief executive (CEO or equivalent) expressing continued support for the Global Compact and renewing the company's ongoing commitment to the initiative and its principles.

  • No answer provided.
Human Rights
  • Assessment, policy and goals
  • Description of the relevance of human rights for the company (i.e. human rights risk-assessment). Description of policies, public commitments and company goals on Human Rights.

  • Huawei supports and promotes an open, secure, stable, and peaceful cyberspace, and respects and protects all basic human rights advocated by the UN's Universal Declaration of Human Rights, including those relating to privacy and communications.

  • Implementation
  • Description of concrete actions to implement Human Rights policies, address Human Rights risks and respond to Human Rights violations.

  • Human Rights Assessment
    412-1 Operations that have been subject to human rights reviews or impact assessments P.89
    412-2 Employee training on human rights policies or procedures P.89
    413-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening (SDG 1,2)

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • Human Rights Assessment
    412-1 Operations that have been subject to human rights reviews or impact assessments P.89
    412-2 Employee training on human rights policies or procedures P.89
    413-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening (SDG 1,2)

Labour
  • Assessment, policy and goals
  • Description of the relevance of labour rights for the company (i.e. labour rights-related risks and opportunities). Description of written policies, public commitments and company goals on labour rights.

  • When it comes to employee recruitment, promotions, and compensation, we never discriminate against anyone on the basis of race, religion, gender, sexual
    orientation, nationality, age, pregnancy, or disability.
    We prohibit the use of forced, bonded, or indentured labor, and we have detailed, equitable regulations that cover each major phase of an employee's relationship with the company, including recruitment, employment, and exit. No incidents of forced labor have ever taken place in Huawei's history.
    We prohibit the use of child labor, and have effective policies and measures in place to prevent the recruitment and use of child labor. We also require the same of our suppliers and conduct regular audits to ensure their compliance.
    We respect the legal rights of our employees regarding freedom of association and collective bargaining. We never prevent employees from participating in the lawful activities of registered labor unions as long as participation is voluntary and does not violate local laws.

  • Implementation
  • Description of concrete actions taken by the company to implement labour policies, address labour risks and respond to labour violations.

  • Huawei's Consumer BG worked with specialist agencies on programs intended to improve capabilities in domains like labor rights and interests, environmental protection, fire safety, and occupational health, benefiting more than 150 suppliers
    In 2019, Huawei entrusted a third party to audit 107 suppliers. For suppliers that were rated as medium- or high-risk, we performed onsite reviews and urged them to improve until they reach the low-risk level. We also commissioned a third-party auditor to examine 28 suppliers on their environmental impact, fire safety, and occupational health capabilities. There were no instances of child or forced labor discovered during our 2019 supplier audits.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates performance.

  • If we discover a problem during an onsite audit, we help the supplier resolve the issue by using our Check, Root Cause, Correct, Prevent, and Evaluate (CRCPE) methodology to identify common problems, analyze root causes (Man, Machine, Material, Method, and Mother Nature [5M] and Plan-Do-Check-Act [PDCA] management system), and take targeted actions. Ongoing assessments and improvements are made against established benchmarks. All problems are recorded in Huawei's Supplier Corrective Action Request (SCAR) system for follow-up until closure.

Environment
  • Assessment, policy and goals
  • Description of the relevance of environmental protection for the company (i.e. environmental risks and opportunities). Description of policies, public commitments and company goals on environmental protection.

  • As part of our commitment to technology for a better planet, we will invest more in the following three areas:

    Reducing carbon emissions: Our green ICT solutions will enable industries to reduce power consumption and emissions. We will continue to make the operations of both Huawei and our supply chains greener and take steps to reduce carbon emissions.
    Promoting renewable energy: We will continue investing more in renewable energy and providing green power for the intelligent world. We will also drive the transition to renewable energy and make the most of it.
    Contributing to a circular economy: We will improve well-being by using less resources.

  • Implementation
  • Description of concrete actions to implement environmental policies, address environmental risks and respond to environmental incidents.

  • We use our technologies to address the increased power consumption of our high-performing equipment and to minimize our carbon footprint. We hold ourselves to high standards for greener operations and constantly look for opportunities to reduce carbon emissions. We are also carrying out green partner programs in which we work with our suppliers to reduce power consumption and emissions and build a greener ecosystem.
    We use cutting-edge technologies in hardware materials, high-performance algorithms, and heat dissipation to make our products more energy efficient. To make 5G networks more energy efficient and help carriers cut carbon emissions, our technological innovation focuses on three levels: equipment, sites, and networks. For example, Huawei's fully outdoor 5G solution doesn't need air conditioning, which reduces power consumption of a single site by at least 40%

  • Measurement of outcomes
  • Description of how the company monitors and evaluates environmental performance.

  • Huawei has incorporated environmental protection requirements into its procurement strategy and end-to-end procurement process, including supplier qualification,
    selection, review, performance management, and material selection. We aim to ensure compliance with all applicable environmental laws and regulations, encourage suppliers to make continuous improvements through our sourcing strategy, and build a competitive and green supply chain.
    We pay close attention to the environment when designing products – minimizing environmental impact is one of our most important metrics for assessing product quality. This is also a major focus of our customers and consumers. We implement rigorous controls in this area throughout product lifecycles, including during the selection of raw materials, manufacturing, packaging, transportation, customer use, repairs, disposal, and recycling. Our goal is to minimize the environmental impact of our products, and offer customers and consumers eco-friendly products.

Anti-Corruption
  • Assessment, policy and goals
  • Description of the relevance of anti-corruption for the company (i.e. anti-corruption risk-assessment). Description of policies, public commitments and company goals on anti-corruption.

  • We conduct business with integrity, adhere to common business ethics, and observe all applicable laws and regulations in the countries and regions in which we operate. This is a guiding principle for our management team. For years, we have worked hard to build a compliance management system that aligns with industry best practices and embeds compliance management into every link of our business activities and processes. These efforts continue to this day. Huawei values and works hard to create a culture of integrity, and requires all employees to comply with its Business Conduct Guidelines (BCGs). Outside of the organization, we openly engage and share experiences with our business partners, giving them insights into our development of a global compliance system.

  • Implementation
  • Description of concrete actions to implement anti-corruption policies, address anti-corruption risks and respond to incidents.

  • Huawei has appointed a compliance officer for each of its subsidiaries worldwide and established oversight-oriented subsidiary boards, which manage and oversee the operational compliance of these subsidiaries.

    The company has incorporated compliance into the key performance indicators (KPIs) of its subsidiaries, and established an award and disciplinary mechanism to steer compliance management among subsidiaries.
    Under the guidance of the group's unified compliance requirements, all subsidiaries set their own compliance management policies and systems with reference to local laws and regulations, and ensure appropriate compliance management in the countries and regions where we operate.
    Following thorough risk identification and assessment processes, subsidiaries set annual compliance objectives, develop and implement control measures, and regularly review progress, thereby ensuring compliance objectives are achieved.
    Subsidiaries also perform self-checks, ad-hoc inspections, and independent internal audits, and invite third parties to audit key compliance areas, to ensure that compliance management is effective.

    We conduct all business under the legal framework that supports fair competition and opposes bribery and corruption. We place our obligation to fight bribery and corruption above our own commercial interests, and we are working to ensure that our business is conducted in a fair and transparent manner.

    We are strengthening our anti-bribery and anti-corruption compliance management system in four ways: a culture of compliance, governance and oversight, prevention-discovery-response, and continuous operations. We regularly conduct compliance audits to identify potential risks in all business scenarios, develop targeted control measures, and embed these measures into our business activities and processes.
    Huawei values and works hard to create a culture of integrity.
    - All employees are required to study, sign, and comply with the company's BCGs and its anti-bribery and anti-corruption policies. We also provide anti-bribery and anti-corruption training programs for key employee groups.

    - All third parties who do business with Huawei must comply with and uphold Huawei's anti-bribery and anti-corruption policies, and observe the Huawei Supplier Social Responsibility Code, Code of Conduct for Partners of Huawei, and Honesty and Integrity Agreement.

    We have established complaint channels through which employees and other parties can report violations. We have also established three lines of defense through which we can identify risks, discover problems, and make improvements.
    We continually communicate with our stakeholders, including industry peers, consultants, partners, and NGOs, about compliance, clarifying our views on anti-bribery and anti-corruption. This helps ensure that all stakeholders have a clear understanding of Huawei's compliance regulations and policies.

  • Measurement of outcomes
  • Description of how the company monitors and evaluates anti-corruption performance.

  • Huawei values and works hard to create a culture of integrity, and requires all employees to comply with its BCGs. On this basis, each subsidiary has released detailed employee behavior guidelines to ensure employees incorporate compliance requirements into everything they do.

    In 2019, 99.98% of our employees studied and signed the BCGs.

    Huawei Employee Business Conduct Guidelines + Subsidiaries' tailored employee behavior guidelines: Incorporating compliance requirements into employee behavior

    In 2019, Huawei continued to strengthen its compliance across multiple domains, including trade compliance, financial compliance, anti-bribery compliance, intellectual property and trade secret protection, and cyber security and privacy protection. Compliance requirements have been embedded into our business activities and processes. We have worked openly and proactively with stakeholders like customers, partners, and government regulators, and shared our compliance initiatives and practices with them to foster mutual understanding and trust. Through ongoing efforts to strengthen compliance, Huawei continues to win the respect and recognition of governments and partners around the world.