SERES: ESG Strategy Drives Global Competitiveness, Carbon Neutrality by 2045

SERES Group Vice President Clifford Kang discussed the company's ESG strategy, dual-carbon goals, supply chain innovation, and global compliance with Fortune's Andrew Staples at the SERES Super Factory. This year marks SERES' 40th anniversary, from a spring manufacturer founded in 1986 to a luxury new energy vehicle company serving more than one million users. Throughout that journey, ESG has become a strategic pillar supporting global competitiveness and luxury brand development.

SERES has been awarded MSCI's AAA ESG rating, the highest level, making it the only mainland-listed automaker in China to receive this recognition. Kang attributed the achievement to 'clear goals, strong governance, a comprehensive system, and effective implementation.' The company has developed a three-level ESG governance structure comprising the Board of Directors, ESG Committee, and ESG Working Group, and built a digital carbon management platform to translate its vision into measurable actions.

In product strategy, SERES advances both range-extender and pure electric technologies in parallel. Through AITO, its luxury intelligent new energy vehicle brand, the company recorded 9.9 billion kilometers of pure electric driving mileage in 2025, representing 70% of total driving mileage and contributing to a reduction of approximately 2.33 million tons of carbon emissions. On the manufacturing side, the SERES Super Factory has generated more than 280 million kWh of electricity through its solar power systems, avoiding approximately 150,000 tons of carbon emissions.

Kang highlighted the industry-first 'factory-within-a-factory' model, which integrates key suppliers' production directly into the automaker's manufacturing site, enabling localized, synchronized manufacturing and just-in-time delivery. The model achieves 'zero inventory, zero logistics,' improving supply chain efficiency and enhancing carbon footprint transparency and traceability. SERES collaborates with 91 core suppliers and has collected real-world carbon footprint data covering more than 9,000 components, laying a data foundation for carbon reduction across the value chain.

Addressing compliance for Chinese automakers expanding overseas, Kang emphasized building on global standards while integrating into local ecosystems. SERES adheres to international data protection requirements such as GDPR and has joined the China Council of the Sustainable Markets Initiative. The company has released ESG reports for four consecutive years and remains committed to measurable actions aligned with global climate frameworks. 'ESG ratings are not the ultimate goal,' Kang said. 'The true value lies in building deeper trust with global partners and strengthening the long-term competitiveness that enables us to compete on the global stage.'