MASHINIi

Li Auto Inc..

LI.US | Manufacture of motor vehicles

Li Auto Inc. is a Chinese electric vehicle manufacturer that designs, develops, manufactures, and sells premium smart electric vehicles. The company focuses on extended-range electric vehicles (EREVs). Li Auto's primary product is its line of Li ONE and Li series SUVs, targeting family users in Chin...Show More

Ethical Profile

Mixed.

Li Auto Inc. faces a lawsuit alleging securities law violations, with critics pointing to allegedly overstated vehicle demand and misleading statements about its Li MEGA strategy. The company also recalled 10,469 Li ONE vehicles due to safety hazards. Environmentally, Li Auto holds ISO 14001 certification and reports over 93% recyclability for its L8/L9 models, achieving 100% solid waste recycling at its Changzhou base. However, it lacks quantitative emission reduction targets and comprehensive Scope 3 disclosure. The company reported no data breaches in 2021-2022, is ISO 27001/27701 certified, and donated RMB 1 million for COVID-19 relief and RMB 10 million for flood relief.

Value Scores

Better Health for All-40
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect0
-100100
Fair Trade & Ethical Sourcing-20
-100100
Honest & Fair Business0
-100100
Kind to Animals0
-100100
No War, No Weapons0
-100100
Planet-Friendly Business-30
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech10
-100100
Zero Waste & Sustainable Products0
-100100

Better Health for All

-40

Li Auto's core products, electric vehicles, do not have a direct positive or negative health impact, as environmental pollution control is explicitly excluded from this value's scope. The company has no revenue from products with negative health outcomes.

1
For safety, Li Auto's 2024 ESG report indicates that its Li MEGA and Li L6 models achieved the highest G+ rating in the China-Automobile Health Index (C-AHI) and China Insurance Automotive Safety Index (C-IASI).
2
The Li L6, Li L9, and Li L7 models received five-star ratings in the China-New Car Assessment Program (C-NCAP) and China Intelligent-connected Car Assessment Program (C-ICAP).
3
However, in 2020, 10,469 Li ONE vehicles were recalled due to front suspension design safety hazards, and the company initially misclassified this as a "hardware upgrade" before issuing an apology and filing a recall with SAMR.
4
This constitutes a notable safety incident with delayed safety responses. For risk transparency, the company's initial misclassification of the 2020 recall as an "upgrade" instead of a recall, despite safety hazards, indicates misleading marketing about health benefits and significant undisclosed risks. Regarding healthcare data responsibility, the 2021 ESG report noted a Level 3 cybersecurity protection certification for its user service system and App, which is a basic level of protection.
5
During public health emergencies, Li Auto donated RMB 1 million to Shijiazhuang for COVID-19 response and RMB 10 million to Henan for flood relief in 2021, which represents a reactive crisis response with limited flexibility.
6
The company established an Employee Assistance Program (EAP) for mental health support in 2021, indicating basic recognition of mental health but limited practical support.
7

Fair Money & Economic Opportunity

0

The provided articles, including Li Auto Inc.'s 2024 ESG report, explicitly state that no data is presented regarding underserved client share, pricing fairness, exploitative fee exposure, inclusion initiatives, data accessibility, fair lending compliance, wealth building outcomes, or profit reinvestment in relation to Fair Money & Economic Opportunity.

1
No information was found in any of the articles for financial literacy initiatives, debt burden ratio, geographic inclusion, or product simplicity.

Fair Pay & Worker Respect

0

No evidence available to assess Li Auto Inc. on Fair Pay & Worker Respect.

Fair Trade & Ethical Sourcing

-20

Li Auto reported zero incidents of child or forced labor in 2024.

1
The company conducts annual supplier audits to monitor and promote improvements in environmental protection and safety.
2
All suppliers are required to sign integrity agreements, and 100% of new suppliers signed General Procurement Rules containing integrity compliance clauses in 2024.
3
The company classifies materials based on risk and importance, and conducts risk identifications and assessments on supplier candidates in aspects including business ethics and labor.
4

Honest & Fair Business

0

The provided articles indicate that a lawsuit has been filed against Li Auto Inc. for alleged securities law violations.

1
These allegations, spanning from February 26, 2024, to May 20, 2024, include claims of overstated vehicle demand, an ineffective operating strategy for the Li MEGA, and misleading public statements.
2
However, the articles do not provide any information on regulatory fines, transparency index scores, whistleblower policies, financial restatements, audit coverage, ESG controversy scores, complaint resolution times, board conflict-free percentages, anti-corruption policies, or third-party verification of ethical claims.
3
The lawsuit represents allegations, not confirmed fines or regulatory penalties. As such, there is no concrete evidence to score any of the KPIs against the rubric's quantitative thresholds.

Kind to Animals

0

Li Auto Inc. uses animal-derived materials, specifically Napa leather, for the interior design and upholstery of its automobiles.

1

No War, No Weapons

0

The provided articles, including Li Auto Inc.'s 2022 and 2024 ESG reports and 2024 annual report, do not contain any specific, concrete data points or explicit mentions regarding the company's involvement in arms or defense contracts, dual-use technology, sales to embargoed regimes, peacebuilding investments, conflict divestment policies, board oversight of defense activities, export end-user certificates, lobbying related to arms control, humanitarian procurement compliance, human rights due diligence in conflict areas, Arms Trade Treaty compliance, AI military safeguards, UN Guiding Principles alignment, dual-use item screening, surveillance transparency, ethical red lines for weapons, exposure to controversial weapons, war-risk audits, annual conflict partner reviews, defense divestment, conflict minerals, peace technology investment, or procurement from conflict zones.

1
Therefore, no KPIs can be scored based on the provided evidence.

Planet-Friendly Business

-30

In 2024, the company's total Scope 1, 2, and 3 GHG emissions were 113,754 tCO2e.

1
This represents an 18% reduction from the 2019 baseline but an increase from 97,240 tCO2e in 2023.
2
The company has a Net Zero emissions by 2030 target validated by the Science Based Targets initiative (SBTi), committing to reduce absolute Scope 1 and 2 GHG emissions by 90% and Scope 3 GHG emissions intensity by 97% by 2030 from a 2019 baseline.
3
All facilities and shared fleet are powered by 100% renewable energy.
4
In 2024, the total water consumption intensity was 13.6 tonne per RMB million of revenue.
5
The Beijing R&D headquarters Phase II is designed to the two-star standard of green buildings.
6
The comprehensive recycling and utilization rate of non-hazardous waste was 95.2% in 2024.
7
Lifecycle carbon footprint accounting was conducted for Li L6, Li MEGA, and Li L9.
8
PP-modified materials with a 30% Post-Consumer Recycled (PCR) content ratio and low-carbon aluminum wheels incorporating 75% recycled aluminum are used.
9
The company recorded zero administrative punishment related to environmental or ecological issues in 2024.
10
The company recorded zero administrative punishment related to environmental or ecological issues in 2022.
11
The company's disclosure aligns with the structure of the Task Force on Climate-related Financial Disclosures (TCFD).
12
It plans to perform a climate risk assessment and scenario analysis in 2026.
13
Packaging reuse increased from 92.6% for Li L9 to 95.8% for Li L6 in 2024, and single car packaging volume for Li L8 dropped from 42 m3 to 40.8 m3, and for Li L9 from 43 m3 to 41 m3.
14

Respect for Cultures & Communities

0

The provided articles do not contain specific, quantifiable evidence for any of the KPIs related to 'Respect for Cultures & Communities'. Information regarding formal partnerships with indigenous or local community groups, percentage of revenue reinvested in local community development, cultural appropriation incidents, cultural impact assessment protocols, local employment ratios, community-specific grievance mechanisms, cultural preservation investments, local procurement share, indigenous supplier engagement, cultural site protection, social license to operate, charitable giving to cultural heritage organizations, community fund allocation, language inclusivity assessment scores, cultural incident response effectiveness, or cultural sensitivity training completion is not explicitly stated or quantified in the provided reports.

1
While some articles mention general charitable donations or employee diversity by ethnicity, these do not meet the specific requirements of the KPIs.

Safe & Smart Tech

10

Li Auto reported zero user privacy data breach incidents in both 2021 and 2022.

1
The company achieved ISO 27001 Information Security Management System certification and ISO 27701 Privacy Security Management System certification in 2022, in addition to a Level 3 cybersecurity protection certification for its user service system and App by the end of 2021.
2
The company uses encryption technologies like AES256 and RSA2048, along with strict data access controls and monitoring.
3
Li Auto states it collects data only for declared purposes and deletes or anonymizes personal information upon user request or log out.
4
The company also conducts privacy evaluations for various products before launch and integrates privacy protection awareness into product design.
5
Li Auto complies with relevant Chinese data security and personal information protection laws.
6

Zero Waste & Sustainable Products

0

Li Auto achieved 100% recycling and safe disposal of solid waste.

1
The Li L8 and Li L9 vehicles have recyclability rates of 93.2% and 93.0% respectively.
2
The company conducts annual internal and external audits of its environmental management systems at all operating manufacturing bases.
3
Li Auto has established classification and storage warehouses for hazardous waste and implemented measures to reduce its discharge.
4
No waste disposal violations or citations were reported.
5

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.