Haier Smart Home: Refining Green into Gold

Haier Zhijia, who wants to be an "enterprise of the times," has once again reached the forefront of the commercial era.In thisIn the era where ESG has become a social consensus, Haier Smart Home is a rare example of pioneering practice: making ESG a new driving force for enterprise transformation, opening up a new golden track, and developing into a new growth curve, rather than seeing it as a compliance cost or operational burden

Haier Zhijia, who wants to be an "enterprise of the times," has once again reached the forefront of the commercial era.

In thisIn the era where ESG has become a social consensus, Haier Smart Home is a rare example of pioneering practice: making ESG a new driving force for enterprise transformation, opening up a new golden track, and developing into a new growth curve, rather than seeing it as a compliance cost or operational burden.

Believe many peopleThe concept of ESG is not unfamiliar.

sinceIn 2004, the United Nations Global Compact officially proposed the concept of "ESG". In less than 20 years, ESG awareness has been continuously popularized in the business world, ultimately forming a global trend that is closely related to every enterprise and every consumer in daily life.

Nevertheless, many people are concerned aboutThere is still a stereotype in ESG - ESG is just a matter of losing money and gaining momentum. The achievement of any great social goal requires finding sustainable methods in business in order to drive stakeholders to do things better and more efficiently. ESG is also the same. Only by turning ESG into a business opportunity for enterprises and becoming the "real gold and silver" that can promote enterprises to practice more actively.

Returning to the above question,Is ESG a loss making business?

The answer is very definite: No.

MatureThe ESG system should not be a burden for enterprises, but rather enable them to see broad business prospects and gain advanced competitive advantages.

For example, inDigital Brand ListHaier Group, ranked fourth in the ESG100 Brand List for the first half of 2023 and first in the consumer electronics industry. In 2023, it is the 30th year for one of its subsidiaries, Haier Zhijia (600690. SH), to successfully list on the Shanghai Stock Exchange. Thirty years of continuous innovation, giving back to users and investors to create value, and promoting public welfare, green environmental protection, and standardized corporate governance have been the 30 years of Haier Zhijia.

We need to turn ESG into our business opportunity, a strategic advantage, rather than a problem to be addressed or a responsibility to be passively fulfilled, "said Huang Xiaowu, Vice President of Haier Zhijia and Director of ESG Global Executive Office.

The secret is none other than these four words: refining green into gold.

Recycling factory:Recycling waste materials and commercial value together

Let's conduct a small investigation first:

How do you dispose of your old washing machines, refrigerators, televisions, and other household appliances at home?

Perhaps many people's memories still linger in the downstairs of the community, where vendors ride tricycles and cycle through the playbackThe magic sound of "recycling waste household appliances" rings in my ears. However, most of the time, vendors only have one purpose for recycling waste appliances - to make money, and something that should be most related to environmental protection eventually becomes a new "source of pollution".

Therefore, in the recycling of waste household appliances,The word 'standard' is particularly important. Especially in China, as the world's largest producer and consumer of household appliances, it is currently at the peak of household appliance scrap. According to data, in 2022 alone, the number of discarded household appliances in China exceeded 200 million. How to dispose of these waste household appliances harmlessly has become an urgent social issue to be solved, and has also become an ESG issue that home appliance manufacturers have to face directly.

The solution provided by Haier Zhijia is:Recycling Disassembly Regeneration Reuse.

Step 1Recycling.

Thanks to decades of accumulated marketing, service, logistics, and channel networks, Haier Zhijia has achieved twice the result with half the effort in building a recycling channel for waste household appliances. Currently, it has offline stores32000, over 100000 service personnel, over 100 logistics distribution centers, 1300 strategic partners, and 2624 district/county recycling networks. As long as consumers place an order on the official website, official account, applet or APP, they can make a one click valuation and make an appointment for on-site collection time. In 2022, Haier Zhijia recycled as many as 6.13 million waste household appliances.

Step 2: Disassemble.

Haier ZhijiasinceRefrigerators with a capacity of over 500L; Here is the industry's first open high-precision sorting system. The broken refrigerator is checked layer by layer through air separation system, eddy current sorting system, magnetic separation system, etc., and is disassembled into more than 20 materials such as plastic, aluminum, copper, iron, etc.

The third step is regeneration.

The plastic dismantled from waste household appliances undergoes dozens of processes such as cleaning, sorting, and granulation, ultimately producing recycled plastic materials.

Haier ZhijiaStep 1The combination of various efficient cleaning processes such as "high-density brine flotation+low-density brine flotation+friction hot washing" maximizes the solution to problems such as black spots, impurities, and odors in recycled plastics; In addition to various plastic sorting processes such as three-level electrostatic sorting and photoelectric color sorting, the final produced recycled plastic has a purity of 99.5%, which can be comparable to new materials.

Step 4 Reuse.

Part of the recycled plastic produced in Haier Zhijia's recycling and interconnection factory is used for the manufacturing of Haier Zhijia products, which has a lower cost compared to using new materials. Currently, Haier Zhijia has used non visual components such as washing machine bases and air conditioning frames33600 tons of PCR recycled plastic to replace new materials.

Recycling is just a link in the ecological linkage of Haier Smart Home platform. In the past, everyone's expectation for the manufacturing industry was to adopt more recyclable energy and reduce carbon emissions. However, in the ecosystem built by Haier Smart Home from procurement, design, production, operation, recycling, and disposal, some links not only need to achieve carbon reduction, but also emphasize contribution, which is the concept of negative carbon Ren Xianquan, General Manager of Recycling Industry, said. In the future, Ren Xianquan also hopes to launch the first carbon inclusive trading platform in the Chinese home appliance industry, making this recycling factory a strong "seller" in the carbon trading market.

In fact, by the end of the story of Haier Zhijia Recycling Factory, a complete loop of waste resource recycling can already be formed.

But if the story only ends here, it can only be considered a sceneThe ESG practice of "being in line with the rules and regulations".

The difference between pioneers and others lies in their willingness to take another step forward. So, this game at Haier Zhijia

Due to the excellent quality of recycled plastics produced by Haier Zhijia Recycling Factory, they can not only be used in household appliances, but also in automobiles, daily chemicals, and even food grade plastics. Among them, the demand for recycled plastics in the automotive sector alone is far greater than that in the home appliance sector.

Not long ago, the European Commission proposed a proposal to require the production of new cars in plastic,25%sinceESG6SUV EX3017%ID.BuzzBuzz

This has truly formed a profitable market for recycled materials. Not only the European Union, but also an increasing number of countries, including the United States and Australia, are considering legislating that a certain proportion of recycled materials must be used in various related new products. The introduction of these regulations has heated up the recycled materials industry. Market research institutions in the United StatesGlobalPrediction of Recycled Plastics in 2026The report mentions that it is expected thatIn 2026, the global market size of recycled plastics will reach 43.5 billion US dollars.

Haier Zhijia's recycling factory not only speaks well of the new narrative of green and low-carbon, but also plunges into a billion dollar marketThe "Blue Ocean Market" integrates ESG into commercial design, realizes value realization, and finds a long-term development path of "refining green into gold".

Smart buildings:A New "Golden Track" for Exploiting the Smart Electricity Market

Haier ZhijiaThe second exploration case of "refining green into gold" is smart buildings.

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sinceIn 2025, the market size of smart buildings in China is expected to exceed 1.6 trillion yuan.

Faced with a trillion dollar scaleHaier Zhijia

Haier Zhijia70%In thisBuilding intelligent control and heat pump heatingCombine with efficient HVAC to expand business into low-carbon and green buildings.Haier ZhijiaIntroduction.

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At the launch of smart building achievements and new products at the beginning of this year, Haier launched

Firstly, through the intelligent energy-saving solution of magnetic levitation20062023Zero friction and oil free operationOverall energy-saving50%.

Secondly, through the optical drive energy storage solutionSupply inside the buildingAir conditioning, lightingElevators, etcSystematicDaily operation andHot water supply, surplus electrical energy can be stored for night use or sold in parallel to the grid, achieving a solar energy utilization rate of over70%.

Finally, power generation is achieved through thermal energy recovery and gas expansionORC

With the advantages of high efficiency and energy conservation, Haier Smart Building has implemented numerous prototypes in new and existing building scenarios. For example, at Qingdao Jiaodong Airport, Haier offers maglev central air conditioning, IoT multi line, and50%from36.52045%For example, inHaier Zhijia30Haier Zhijia32%50%.

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