XPeng : 2023 Environmental, Social and Governance Report

Contents

About This Report

Message from the Board of Directors 2023 Highlights

About XPENG

XPENG History

XPENG's Honors

Sustainability Management

Governance Structure for Sustainable Development Stakeholder Engagement

Analysis of the Importance of Sustainable Development Issues

Excellent Products, Innovating the Future of Mobility

[Feature Story] Continuing to explore the boundaries of the future Quality Products

Quality Services

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Sustainability Management, Creating a Low-Carbon Future

[Feature Story] Green Products Leading Green Travel

Climate Governance

Green Production

Compliance Management, Creating a Solid Foundation for Development

Compliant Operations

Risk Control

Business Ethics

Creating Value and Contributing to Unified Development

Employee Health and Development

[Feature Story] Building a Sustainable Supply Chain Together Contribution to the Society

Appendix

Key Performance Indicators

Content Index

Feedback Form

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This report is the fourth Environmental, Social and Governance ("ESG") report issued by XPENG (XPeng Inc., hereafter referred to as "the Company"), which aims to showcase the management, commitment, actions and achievements of the Company and its subsidiaries in sustainable development.

About the Report

Reporting Scope

This report covers XPENG and its subsidiaries. The reporting period is from January 1, 2023 to December 31, 2023 (the "Reporting Period"), in line with the fiscal year. The time frame for some of its content has been extended. Unless otherwise stated, this report adopts CNY as the monetary unit.

Reporting Standards

This report refers to the Environmental, Social and Governance (ESG) Reporting Guide in Appendix C2 of the Main Board Listing Rules of the Hong Kong Exchanges and Clearing Limited (HKEx) and the Global Reporting Initiative (GRI) Standards. This report was prepared in accordance with the above mentioned standard requirements, following communication with the stakeholders, analysis of material issues, collection of relevant information, compiling of the corresponding report, as well as management verification, in order to ensure the materiality, quantization, balance and consistency of its contents.

In order to comply with the "Consistency Principle" in the reporting principles and ensure meaningful comparison, no material change is made to the methodology or key performance indicators adopted by the Company for the year ended December 31, 2023 as compared to those for the year ended December 31, 2022.

Source of Information

Unless otherwise specified, the information and data cited in this report all come from the Company's official documents, statistical and financial reports, as well as other related public documents. XPeng Inc. guarantees that this report is free from any false statements, misleading statements or major omissions, and the Board of Directors is responsible for the truthfulness and accuracy of its contents.

Explanation of references

For convenience of expression and reading, "XPeng Inc.", "XPENG", "the Company", "this company" and "we" in this report, all refer to XPeng Inc. and its subsidiaries.

Report confirmation and approval

T h is re p o r t w as c o nf i r m e d by th e C o m p a ny 's s e n i o r management and ESG Steering Committee and approved by the Board of Directors on March 19, 2024.

Disclaimer

Cer tain statements in this repor t are for ward - looking statements about our goals and plans for the future. These forward-looking statements are based on management's current expectations. Uncertainties and other factors may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. The Company is under no obligation to update any forward-looking statement contained in this report.

Access to this Report

This report has versions in Simplified Chinese, Traditional Chinese and English. If there are any inconsistences, the Simplified Chinese version shall prevail. This report can be viewed or downloaded on the Hong Kong Exchanges and Clearing Market website (http://www.hkexnews.hk/), as well as on the Company's official website (ir.xiaopeng.com). For any inquiries or suggestions regarding this report, please contact us using the following address:

XPeng Inc.,

8 Songgang Street, Tianhe District, Guangzhou, Guangdong

Province, PRC

Phone: 020-6680 6680

Fax: 020-6680 6689

ESG Governance

As the highest governance body of the Company, the Board assumes ultimate responsibilities for XPENG's ESG strategies, policies and other ESG performance, and authorizes the ESG Steering Committee, headed by the President of the Company, to assist the Board in managing and making decisions regarding ESG-related matters. The Company's ESG Steering Committee is responsible for overseeing the Company's ESG goals, policies and strategies, discussing and reviewing the Company's ESG goals and performance in a timely manner, and reporting to the Board on a periodic basis. At the implementation level, the Company has established an ESG Task Force dedicated to routine management and overall coordination of ESG-related matters as well as assisting the ESG Steering Committee in overseeing and reviewing work while being supervised and guided by the ESG Steering Committee.

ESG Goal Management

In accordance with H KE x 's Environmental , Social and Governance Reporting Guide as well as other internationally recognized principles and practices, XPENG sets its ESG strategy and goals, continuously keeps track of the progress in ESG work and coordinates relevant functions to achieve goals. The Board will oversee and review the progress towards ESG goals to adapt to the latest developments of the external environment and the Company's businesses.

2023 Highlights

Creating a Green Ecosystem Sustainability management, creating a low carbon future

Low carbon products：

Compared to conventional ICE vehicles, the electric vehicles delivered by XPENG in 2023 will reduce carbon emissions by approximately 1.50 million tonnes over their entire lifecycle, advancing low-carbon transport.

XPENG's G9 model obtained the C-GCAPFive-starLow-Carbon Rating in 2023.

Green transport：

Compiled the "Logistics Planning White Paper", supporting the green transformation of logistics.

Clean energy usage：

Annual consumption of clean energy reached 23,996 MWh, and annual power generation from solar PV reached 41,071 MWh, demonstrating our continuous optimization of energy consumption structure.

Green manufacturing：

XPENG was selected into the Green Manufacturing List of the Ministry of Industry and Information Technology and awarded the title of "National Green Supply Chain Management Enterprise".

Boosting the circular economy：

Established an end-to-end recycling management process of waste power batteries to promote waste resource utilization.

XPENG

Innovative Products Quality products, shaping the future of mobility

Excellent product quality：

The Company has been ISO 9001 certified, and no vehicle recalls occurred throughout the year, proving product quality.

Quality assurance：

Throughout the year, the Company carried out 7 major quality-purposed actions, covering 493 suppliers to ensure supply chain quality.

Product safety：

3 XPENG models received the C-NCAP five-starsafety ratings, and 2 models received five-starsafety ratings from EURO NCAP, showcasing our commitment to safety standards.

Technology Innovation：

With leading software and hardware technology at its core, in 2023 XPENG achieved major breakthroughs in areas such as advanced driver-assistancesystem (ADAS), electric drive system, smart cockpit and charging technology. As of January 2, 2024, XNGP was fully accessible to users across 243 cities in China, and its geographical coverage continues to expand.

Information Security：

No information security breaches, or other cybersecurity incidents occurred throughout the year, with data and information security responsibilities in place.

R&D Capabilities：

Annual spending in product and technology R&D reached CNY 5,276.6 million; R&D personnel accounts for 40% of total employees. 727 new patents were granted during the year, adding number of total patents up to 2,683, demonstrating the Company's innovation strength.

Customer Service：

100% of client complaints responded and resolved, and satisfaction rate of complaint handling reached 80.06%, proving our user-centric service attitude.

Quality Service：

Customer satisfaction rate reached 96%, and the NPS2 survey was conducted on a monthly basis. The average NPS score in 2023 increased by 8 % compared with that in 2022, showcasing our improving brand value.

Cybersecurity：

The Company has obtained the ISO 27001 Information Security Management System Certificate and ISO 27701 Privacy Information Management System Certificate, enhancing cybersecurity management.

Note: 2.NPS (Net Promoter Score): also known as word-of-mouth, is a metric used to measure the possibility of a user referring an enterprise or service to others.

2023 Highlights

Practicing Responsible Management Compliance management, setting a solid foundation for future development

ESG Achievements：

Achieved the world's highest MSCI ESG Rating of AAA.

ESG Management：

Formed a three-level sustainable development governance structure of "Board of Directors - ESG Steering Committee - ESG Working Group & E/S/G/Communication Matrix Group", effectively improving internal ESG management capabilities.

Strengthening Corporate Governance：

Independent non-executive directors account for 50% of the Board of Directors, improving corporate governance.

Integrity Management：

Conducted more than 15,880 hours of anti-corruption training sessions, with 16,760 employee participations, promoting a company culture of honesty and integrity.

XPENG

Conveying Social Value Value co-creation, promoting inclusive development

Promoting Employment：

Awarded 5 employer recognition awards, ranking among the top in relevant talent attraction and employee satisfaction surveys.

Equal Opportunities：

The total number of employees with disabilities reached 185, promoting working environment equality.

Employee Empowerment：

98.6% of total employees participated in organized training sessions, the training duration averaged 15.5 hours per person, supporting employees' self-development.

Responsible Supply Chain：

100% of suppliers signed our Suppliers' Integrity Commitment Letter, building a high-quality partnership system.

Public Welfare and Charity：

Cumulative donation of CNY 12.8 million to XPENG Public Welfare Foundation, striving to make positive contributions to society.

Ecological and Environmental Education：

XPENG Green-Home Environmental Education Program has provided funding support, public welfare products, training courses and other support to 84 public welfare organizations, and was awarded "2023 CSR Case Studies" by Southern Weekly.

Community Influence：

Established the XPENG Volunteer Service Task Force comprised of the Company's employees and XPENG owners with total registered volunteers adding up to over 630 personnel dedicating more than 15,000 hours, fostering a harmonious community.

About XPENG

Founded in 201 5 and headquar tered in Guangzhou , Guangdong Province, China, XPeng Inc. is a technology company focusing on the future of mobility and dedicated to designing, developing, manufacturing and marketing smart electric vehicles. The Company's mission is to drive Smart EV transformation with technology, shaping the mobility experience of the future. With continuous investment in its full-stackin-house R&D, XPENG actively builds up its core technology capabilities and aims to become one of the leading smart EV companies in China.

XPENG

By the end of 2023, the Company had established six R&D centers, which reside in Beijing, Shanghai, Guangzhou, Shenzhen, Silicon Valley, and San Diego. XPENG develops in- house its full-stack advanced driver-assistance system and in-car intelligent operating system, taking the lead in realizing the inflection point of advanced driver-assistance system technology adoption and customer demand. In alliance with partners, XPENG will propel the large-scale adoption of smart electric vehicles and relevant technologies, striving to become the preferred smart electric vehicle brand for Chinese consumers.

Entered into our Series B, Series B1, and Series B2 financing arrangements.

Commenced delivery of XPENG's first Smart EV model, the G3, to customers.

Entered into our Series C financing arrangements.

Commenced delivery of XPENG's second Smart EV model, the P7, to customers.

Listed on the New York Stock Exchange (NYSE) (stock code: XPEV).

Listed on the Stock Exchange of Hong Kong Limited (HKEx) (stock code: 9868).

Commenced delivery of XPENG's third Smart EV model, the P5, to customers.

Launched the first self-operated store in Europe.

Commenced delivery of XPENG's fourth Smart EV model, the G9.

Formed strategic partnership with the Volkswagen Group;

Achieved the highest MSCI ESG Rating of AAA.

Commenced delivery of XPENG's fifth Smart EV model, the G6.

2nd place in Summer Test of range achievement rate - XPENG P7

Sustainability Management

XPENG has long upheld its sustainable development commitment by continuously improving its governance in sustainability, regularly communicating with the stakeholders and identifying material sustainability issues, consistently improving the level and practices of its sustainability management. In 2023, XPENG became one of the two domestic automotive companies selected into the S&P Global's Sustainability Yearbook, and was awarded the Industry's Best Progressive Company.

XPENG

1 Governance Structure for Sustainable Development

CompositionResponsibilities

XPENG continues to optimize its internal sustainable development governance structure. In 2023 , we renamed the "ESG Task Force" to the "ESG Working Group" and established a new "E/S/G/Communications Matrix Group" in parallel with the "ESG Working Group" to assist in the management of various ESG-related matters. As such, the Company's sustainable development governance structure of "Board of Directors - ESG Steering Committee - ESG Working Group & E/S/G/Communication Matrix Group" was eventually formed.

ESG Steering Committee

Chairperson: President

Members: Senior Management of Core Divisions

ESG Steering Committee

Led by the President of the Company, along with senior management of core divisions

• Formulate the Company's ESG vision, goals, strategies, policies, etc.;
• Monitor the implementation of the Company's ESG strategy, review the progress towards the ESG goals, and provide advice regarding ESG performance;
• Assess ESG related risks and opportunities and provide reports on ESG progress and relevant advices to the Board on a yearly basis;
• Review the Company's ESG reports and other ESG related information disclosures.

ESG Working

Group & E/S/G/

Communications

Matrix Group

Led by mid-level management of core departments

• Responsible for the daily execution of ESG strategies set forth by the Board and the ESG Steering Committee;
• Ongoing follow-up on the ESG requirements from regulators, investors and stakeholders;
• Timely reporting on ESG performance, preparing ESG reports, and assisting the ESG Steering Committee in carrying out supervision and assessment.

ENVIRONMENTAL SOCIAL GOVERNANCE