On June 14th 2018, Xiaomi Corporation Draft prospectus for Depository Receipt Public Offerings was published via China Securities Regulatory Commission website. In the prospectus, Xiaomi admitted for the first time that its current suppliers have experienced historical environmental non-compliance incidents.

In May 2018, environmental groups IPE and Lüse Jiangnan completed another round of investigations into pollution in Xiaomi’s supply chain, finding that pollution has become even more severe. Groups once again raised these issues to Xiaomi, but still only received silence and avoidance in response. Meanwhile, the Hong Kong Stock Exchange (HKEX) – where Xiaomi is seeking its IPO – has made clear requirements for ESG-related disclosure. We believe that Xiaomi is in violation of HKEX's relevant requirements for information disclosure.

In April 2015, China's State Council published the Water Pollution Prevention and Control Action Plan (the "Water Ten"), which served to integrate China's environmental water management actions. 2017 could be considered the first stage in the battle to control pollution in China's "foul and filthy" waters. Did this decisive year achieve a decisive victory? This report combines official reports with those made by environmental organizations and the public on the clean-up of hundreds of black and smelly rivers, and tries to sort out and analyze them.

The Institute of Public & Environmental Affairs (IPE) and the International POPs Elimination Network (IPEN) jointly released in May 2018 the report, “PRTR: Establishing a Pollutant Release and Transfer Register in China”, which discusses using a PRTR disclosure system to strengthen the management of hazardous chemicals. The report recommends to learn from the best practices of international experience and mechanisms developed in China, and to leverage strong legislation as support for establishing China’s PRTR system.

In 2017, Lvse Jiangnan received complaints from a number of residents in Danyang, Jiangsu. The residents complained that enterprises in Daya Wood Industrial Park in Danyang Economic Development Zone gave off pollution during the production of Power Dekor floorboards, affecting the livelihoods of the neighboring residents. In 2018, environmental group Lvse Jiangnan and IPE conducted an investigation into the environmental pollution issues caused by the production of Power Dekor floorboards.

IPE began conducting an environmental impact analysis on beer supply chains at the end of 2017. The investigation revealed that wastewater from breweries and air emissions from glass factories often exceeds emissions standards, including at subsidiaries and suspected suppliers to Snow, Tsingtao, Yanjing, AbInBev and Calsberg. The beer market is currently undergoing a massive transformation. To become winners in the high-end market, big brands should implement green supply chain management and provide green products to consumers.