NIO Capital today officially released the NIO Capital Sustainability Report 2023 (hereinafter referred to as “The Report”). This is a continuous effort after we released our inaugural ESG Report 2022 on World Earth Day last year. 

 

The Report elaborates on NIO Capital's sustainable strategy and management system, and quantifies the contributions of portfolio companies and funds to environmental protection.

 

In response to changes in the environment and policies, NIO Capital's investment methodology has also been upgraded to advance climate technology. The Report shows our progress and improvement in sustainable development. The enhancements mainly focus on the following two aspects:

 

a. A global perspective - we benchmark our reporting standards to universal international standards.

 

b. Providing more quantitative climate impact analysis for NIO Capital's portfolio.

 

Overall, we hope to create greater value for the environment and society, and make every effort visible, quantifiable, and traceable.

 

You can read the full report here. 

 

Below are some highlights from the Report:

 

1. Alignment with International Sustainability Standards 

 

 

In our sustainability system, NIO Capital has taken the initiative to commit to upholding the standards of an Article 8 Fund, in accordance with the European Union's Sustainable Finance Disclosure Regulation (SFDR).

 

SFDR sets clearer and higher requirements for sustainable practices. NIO Capital's proactive commitment and compliance with SFDR aims to systematically evaluate the company's overall performance by integrating the SFDR framework. 

 

By introducing international norms, we can help more companies that are expanding overseas or in the process of overseas operations to establish a set of internationally recognized evaluation standards for corporate social value creation and corporate governance, enhancing their recognition in value creation, improving brand preference, and reducing barriers to cross-border communications.

 

NIO Capital's strategic focus areas—New Mobility and New Energy—are in direct conformity with the United Nations’ sustainability objectives. Nevertheless, we are well aware that developing a company still entails risks and challenges. As the global understanding and regulation of sustainable development continues to deepen, we will also proactively monitor and adapt to changing rules, enabling enterprises to achieve sustained and positive development.

 

2. Better Environmental AND Financial Performances

 

As detailed in The Report: 

 

● In 2023, the collective carbon emissions of portfolio companies were estimated to be reduced by over 12.5 million tons. Compared with 2022, portfolio companies achieved a 12% reduction in carbon emissions, accompanied by a 34% increase in revenue;

 

● 56% of the portfolio companies reduced carbon intensity on 2022 level;

 

● 95% of the portfolio companies’ carbon intensity is lower than China average;

 

● 62% of the companies were awarded for product quality or sustainable practices.

 

To achieve common sustainable development goals, NIO Capital continuously offers systematic training for portfolio companies, encompassing business enhancement, strategic growth, corporate governance, talent development, and more. 

 

Since 2023, NIO Capital has incorporated climate risk analysis for portfolio companies to enable enterprises to gain a deeper understanding of the physical and transitional climate risks that could impact their future development.

 

 

3. From Concepts to Practices

 

The theme of this year's World Earth Day is "Planet vs. Plastics". NIO Capital has imbued these concepts into the daily lives of its employees. In last year's report, we stated that we advocated for decreasing the use of plastic bottles, promoting green transportation, and lowering the use of disposable chopsticks and plastic bags.

 

 

While continuously implementing a series of original initiatives, NIO Capital has made further improvements. We launched the “Mission Blue” sustainability initiative and completed two actions: beach clean-up in Sanya and tree planting in Butterfly Spring. 

 

Moreover, we are in the process of digitalizing operations management. For example, the use of digitalization in paperless operations has significantly decreased the consumption and waste of paper in the office.

 

NIO Capital always believes that everyone has the ability to bring positive changes to creating a sustainable future. 

 

 

As Ian ZHU, Managing Partner of NIO Capital, spoke at COP28, "NIO Capital's role is to continuously identify and support technological innovations that can meet the market demand for energy transition. With the mission of 'Invest in Innovations and Sustainability to Advance Humankind', NIO Capital adheres to the concept of sustainable development, making investments have public welfare value, social value, and economic value. NIO Capital will support and accompany portfolio companies to promote technological change and contribute to a zero-carbon future."

 

Find Sustainability Report Collection here:

NIO Capital 2023 Sustainability Report

NIO Capital 2022 ESG Report