- Nio plans to reduce the carbon footprint per vehicle by 43% by 2035 in response to increasingly stringent global regulations.
- The company links management compensation to ESG performance and leverages its massive battery swap network to create new commercial value.
Nio Inc (NYSE: NIO) has disclosed clear carbon reduction targets for the first time in its annual Environmental, Social, and Governance (ESG) report, with the Chinese EV maker planning to reduce the full life-cycle carbon footprint per vehicle by 43% by 2035.
The milestone emission reduction target was set using 2023 as the baseline year, marking a substantial step forward for the company in addressing climate change.
To ensure the successful realization of these ambitious sustainability goals, Nio has, for the first time, directly linked the compensation of its senior executives to ESG performance metrics.
This adjustment in the corporate governance structure demonstrates that the management shares common economic interests in driving the long-term value of the company.
These strategic moves come at a time when environmental regulatory requirements globally, especially in the European market, are becoming increasingly stringent, as Nio continues to expand its business footprint in Europe and beyond.
This year, the company conducted a double materiality assessment based on the EU's Corporate Sustainability Reporting Directive, which helps it manage potential compliance risks faced during its global expansion.
In the ESG report released today, Nio also highlighted the scaling and commercialization progress of its battery swap network. The company officially completed its 100 millionth battery swap service in February 2026.
This milestone not only validates the commercial viability of its asset-heavy infrastructure model, but Nio is also actively utilizing these swap stations to interact with urban power grids to generate additional revenue, according to the report.
In terms of supply chain carbon emission management and the circular economy, the EV maker has made significant progress, recycling over 1,100 end-of-life vehicles in 2025.
Nio obtained the automotive industry's first "car-to-car" recycled aluminum certification. This innovative approach helps reduce reliance on upstream raw materials and lowers production costs, according to the report.
Technological innovation and product safety remain core focuses for maintaining the company's market competitive advantage. In the report, Nio highlighted its mass production of the world's first 5-nanometer automotive-grade smart driving chip Shenji NX9031.
The company also introduced advanced driver assistance features, such as emergency active pull-over, to enhance safety. These features have been widely deployed across its multi-brand product matrix.
