NIO Releases 2023 ESG Report

June 25, 2024, Shanghai - NIO released its2023 Environmental, Social and Governance Report, sharing its management and operation achievements of sustainable development in terms of A Blue Sky, Superior Products, Sustainable Value Chain, Employee Care, and Charitable Actions.

Promoting Low-Carbon Operations for a Blue Sky

NIO is devoted to the continuous exploration of carbon reduction measures in the smart electric vehicle industry, and work with all parties to realize the vision of Blue Sky Coming.

On March 25, 2023, NIO announced its commitment to join the Science Based Targets initiative (SBTi) and became the first Chinese new energy vehicle company to do so. NIO is also the first Chinese vehicle company to answer the Carbon Disclosure Project (CDP) questionnaire. NIO is committed to achieving the“Car to Car” level resource reuse model. During the reporting period, NIO completed a small-scale closed-loop pilot of aluminum recycling on a batch of 200 vehicles and continued to promote resource recycling programs such as Battery Passport and BLUE SKY LAB. During the reporting period, the proportion of recyclable and shareable green packaging used in our vehicle transportation reached 98%.

In 2023, NIO consumed 55,495.53 MWh of renewable electricity, showing a significant year-on-year growth of 283.7%. By the end of the reporting period, the total installed photovoltaic capacity of NIO Advanced Manufacturing Center (F1), NIO Factory Two (F2) in Hefei Xinqiao, EDS Factory 0 (E0) in Nanjing, and EDS Factory 1 (E1) in Hefei reached 67.63MW.

In terms of green certifications, F2 and E1 have successfully obtained the LEED Gold Certification and are certified as Three-Star Chinese Green Building; E0 has also obtained the Three-Star Chinese Green Building Certification; the NIO House | NeoPark, Hefei has received LEED Gold Certification. In addition, one of NIO’s projects was listed in the “Top 10 Low-Carbon Application Scenarios in Anhui Province” in 2023, and NIO was named by the Ministry of Industry and Information Technology in the list of“2023 Green Supply Chain Management Enterprises”.

Providing Superior Products

NIO adheres to its promise of providing intelligent, reassuring, high-quality products; upholding the user-oriented philosophy, and providing users with an enjoyable experience throughout the lifecycle of NIO products.

Throughout 2023, NIO invested RMB 13.43 billion in R&D cumulatively, and had a total of 8,478 issued and pending patents in the U.S., China, Europe and other jurisdictions. The high-quality investment in R&D laid a good foundation for superior products and enabled NIO to gain more recognition for its products globally. During the reporting period, NIO EC6 and ET5 models received the highest safety rating of the year at China Insurance Automotive Safety Index (C-IASI); NIO ES8 and ET7 models received five-star safety ratings in China’s New Car Assessment Program (China NCAP). In addition, first-generation ES8, ET7, EL7 (ES7 for Chinese market), ET5, ET5T, EL6 (ES6 for Chinese market) models all received five-star safety ratings in the Euro NCAP.

In terms of battery management, NIO implements full lifecycle management of batteries from product development, supply chain management, charging and swapping operations, user service, monitoring and emergency response, safety incident investigation, analysis and improvement, to battery decommissioning.

In terms of intelligent driving, NIO launched NIO Active Safety 2.0 in January 2024. With active safety features such as General Objects Warning and Assist (GOA) and All-Scenario Mis-Acceleration Intervention Function (MAI+), the safety system realizes triple dynamic sensing of the state of the environment, the vehicle, and the driver and provides enhanced protection. As of June 25, 2024, the available mileage of NOP+ (Navigation and Orientation Plus) reached nearly 1.4 million kilometers, achieving nationwide urban road coverage in China.

Creating Sustainable Value Chain

NIO kept strengthening synergies with our partners to promote environmental and social sustainability in a wider scale and to create value for NIO users.

In 2023, NIO continued to increase its quality and sustainability control of its partners, conducting a total of 433 NIO Partner Quality System (NPQS) audits of vehicle partners throughout the year, a total of 229 sustainability audits of partners, and a 100% coverage of security audits of partners involved in digital security.

Meanwhile, NIO continues to promote the localization of supply chain layout, and about 80% of the parts value coming from parts partners are located in the Yangtze River Delta region, 40% coming from those located in Anhui Province. In January 2024, NIO was named by the Ministry of Industry and Information Technology in the list of“2023 Green Supply Chain Management Enterprises”, signifying that NIO had passed the assessment and certification in green supply chain management strategy, partner sustainability management, and other aspects.

NIO continuously optimized its user satisfaction survey system; in 2023, NIO provided over 7,000 community activities for over 268,000 users, and organized nearly 4,000 welcome parties, with more than 98,000 new users joining the NIO community, with the average annual score on the Five-Star Rating reaching 4.84/5.00. In automotive after-sales services, NIO models had repeatedly received high customer satisfaction ratings in the industry: NIO ES6 won the first place in“China Automobile After-Sales Customer Satisfaction Research - New Energy SUV” by China Automobile Maintenance and Repair Trade Association; NIO ES8 won the first place in“China Automotive Customer Satisfaction Index - After-Sales Service (luxury brands)” by China Association for Quality.

Caring for Employees and Sharing the Fruit ofDevelopment

NIO practices the values of “honesty, care, vision, and action”, and create a diverse, equal and inclusive workplace environment for our employees. Meanwhile, insisting on the establishment of a diversified and global talent team, NIO has attracted a global workforce from 20 countries and regions.

In terms of employer branding, in 2023, NIO received 10 awards related to human resources management, ranking top in employer satisfaction and employer impact surveys; in 2023, NIO conducted 55 leadership training sessions for 2,532 participants and 447 professional training sessions for 48,148 participants; in 2023, NIO organized more than 1,740 employee activities, covering a diverse range of themes such as traditional festivals, sports events and parent-child activities, to enhance team cohesion and sense of well-being.

NIO also conducted the employee satisfaction survey on a regular basis, covering 8 dimensions and reaching employees worldwide, helping the Company to gain a more comprehensive understanding of the needs and concerns of employees. In the meantime, in 2023, NIO realized a 100% coverage rate of physical examinations for employees in positions exposed to occupational hazards and a 100% coverage rate of safety training for new employees at the factory; in 2023, NIO achieved an employee coverage of 100% for online training on business ethics and compliance, and an employee coverage of 100% for information and data security training.

Practicing Charitable Actions and Conveying Positive Energy

Building a sustainable and better future together with the society directs our unremitting efforts.

In December 2023, NIO, NIO Users Trust and NIO Users Foundation, together with China Charity Federation, launched the“NIO Climate Action”, planning to invest RMB 50 million over a period of five years to combat the environmental problems caused by global climate change.

In 2023, there were a total of 14,897 volunteer participants in public welfare activities such as environmental protection, care for children, and social responsibility, with a cumulative total of 172,472 volunteer hours, in 229 cities and in Europe for the first time, creating many touching moments. By the end of the reporting period, a total of 15,790 users and 1,196 children of them had joined the NIO User Volunteers.

As of now, Clean Parks has contributed to the protection of 17 nature reserves worldwide.

Blue Sky Coming. NIO will continue to join hands with stakeholders to contribute to global sustainable development and to achieve a blue sky.

Note: This Report covers the period from January 1, 2023 to December 31, 2023, with some retrospective references to previous years and 2024.

About NIO

NIO is a global smart electric vehicle company. Founded in 2014, NIO has been committed to shaping a joyful lifestyle by offering high-performance smart electric vehicles and ultimate experience. NIO is the first car company listed on the NYSE, HKSE and SGX. NIO currently has two major brands under its umbrella: NIO and ONVO. Nine years into establishment, NIO is one of the leading companies in the global premium smart electric vehicle market.

Aiming to foster its own research and development capabilities for core technologies, as of the end of May, 2024, NIO had filed and obtained more than 8,800 patents worldwide. NIO has developed NIO Full Stack, a collection of 12 technology domains, including chips and smart hardware, battery system, electric drive and high-voltage system, vehicle engineering, vehicle operating system, vehicle connectivity, assisted and intelligent driving, smart cabin, smart power, smart manufacturing, artificial intelligence and global digital operations, which has made possible the industry-leading products, such as SkyRide Chassis System, NX6031 LiDAR control chip, and NX9031 5nm AD chip. Currently, NIO has R&D centers and manufacturing facilities in Shanghai, Hefei, Beijing, Nanjing, Shenzhen, Hangzhou, San Jose, Munich, Oxford, Berlin, Budapest and Singapore.

At present, NIO has eight smart electric models in its lineup, including the flagship SUV NIO ES8 (EL8 in Europe), flagship coupe SUV NIO EC7, mid-large SUV NIO ES7 (EL7 in Europe), premium executive sedan NIO ET7, all-round SUV NIO ES6 (EL6 in Europe), coupe SUV NIO EC6, mid-size sedan NIO ET5, mid-size tourer NIO ET5T (ET5 Touring in Europe). NIO's executive flagship ET9 and smart electric mid-size family SUV ONVO L60 made their global debut. As of May 31, 2024, NIO had delivered a total of 515,811 vehicles, leading the premium battery electric vehicle segment priced above RMB 300,000.

In addition to the state-of-the-art smart electric vehicle technologies and experiences, NIO has introduced various innovative service models, including NIO Power, NIO Service, Battery as a Service (BaaS), flexible battery upgrade plan and NIO Certified, the official pre-owned vehicle program, to offer an ultimate service experience throughout the product lifecycle. NIO is the car brand with the largest number of charging piles and Power Swap Stations in China. By May 31,2024, NIO had installed 2,470 Power Swap Stations and 22,641 chargers, and connected with over 1.52 million third-party chargers worldwide. Its battery swap network runs through 13 trunk expressways and 11 city clusters in China. Most of the above innovative service models will also be shared with ONVO. Moreover, NIO has partnered with Changan Automobile, Geely Holding, JAC Group, Chery Automobile, Lotus, GAC and FAW in battery swap to jointly promote the development of the battery swap network and industry standards.

Adopting the direct sales model, NIO offers a series of comprehensive services seamlessly via the NIO app. Combining online and offline touchpoints, such as NIO House and NIO Space, as well as NIO users' exclusive radio program NIO Radio and the lifestyle brand NIO Life, NIO has created a community that starts from and goes beyond the car, where users to share joy and grow together. ONVO will also have an independent sales network.

Media Contact:

Emma Hai

emma.hai@nio.com