THE ROAD
TO NOTHING
2022 Sustainability Report

Take nothing from theearth to make our product,
and leave nothing behindwhen it’s replaced.

2022 Sustainability Report2Contents

2022 Sustainability Report

04
04
05
06
07
08

Introduction
Message from the CEO
About Nothing
About this report
Our 2025 goals
Product highlights

10
12
13

Circularity
Goals and progress
Our solutions

21
22
23

Climate action and carbon transparency
Goals and progress
Our solutions

31
32
33

Low-environmental-impact packaging
Goals and progress
Our solutions

35
36
37

Greener chemistry
Goals and progress
Our solutions

40
41
42

Sustainable supply chain
Goals and progress
Sustainability policy

43
44
45
46

Appendix
Appendix A: Goal methodology
Appendix B: Greenhouse gas emissions
Appendix C: Certification

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Introduction Circularity Climate action Packaging Greener chemistry Supply chain Appendix

Message from the CEO
It’s my pleasure to share Nothing’s first sustainability report.
Our vision is a world where tech is fun again. An alternative
to the stagnant consumer tech industry we face today.
But as we build our company, we need to work responsibly.
If we can make meaningful products with global appeal whilst
minimising our impact on the planet, we’ll know that this is arisk worth taking. We’re still a young company so we have a
lot to learn. But this gives us the opportunity to continuously
improve our environmental efforts and be the real leadersof change.
Sustainability has always been at the centre of conversation.
Our first product Ear (1) was focused on carbon offsetting
and became the world’s first carbon-neutral earbud product.
This was a good start. But the real step forward was our
second product where we turned our attention to materials.
For Phone (1), we built a 100% recycled aluminium frame
manufactured with 100% renewable energy. Going forward,
we’re committed to partnering with our supply chain to beeven more innovative and responsible.

Carl Pei
CEO & Co-founder

Recently we were asked by another brand if they could
use the aluminium grade featured in Phone (1) for their own
products. Naturally, we said yes. We know that we can use
our influence for good — we hope to inspire other brands andnewcomers to follow suit as we work to build a moresustainable industry together.
I’m excited to see where this journey takes us.
Thank you for your continued support.
Carl Pei and Team2022 Sustainability Report

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About Nothing
Our lives rely on technology. But in a world where so muchof it looks and feels the same, it’s easy to feel uninspired.
Locked into empty product iterations. Under the thumbof giants.
Nothing is here to change that. By creating iconic productsthat make interactions with technology more joyful.
Whether it's the Glyph interface on the back of Phone (1)or a transparent earbud stem revealing the precision of ourengineering — we’re building a world where tech is fun again.
Because, what’s the point otherwise?
We’re obsessed with design — but never at the expense ofquality. We have a state-of-the-art research and development
lab, where we’re also developing our sustainability strategy to
do better for people and the planet.
What we’re doing feels really exciting. We might not be thebiggest just yet but that’s not to say we can’t be the mostimpactful. And the most human. Our culture is an open andhonest one. As we share our journey with a close-knit
community of like-minded thinkers and believers.

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About this report
Nothing Technology Limited is voluntarily publishing
this Sustainability Report based on the values ofhonesty and transparency.
This report discloses in detail our vision, goals, andpractices in the pursuit of environmental sustainability
as we continue to grow and improve as a brand.

Report boundary
This is the first Sustainability Report published by Nothing.
It covers Nothing’s activities during the 2021 and 2022
calendar years (1 January 2021 to 31 December 2022).
External assurance
We have obtained third-party certification from SGS, TÜVRheinland, and DEKRA for some of this report’s content,
including our greenhouse gas emission inventory and theMaterial Recycling Statement. For details, see Appendix C.
Contact us
If you have any questions about this report or wish toobtain further information, please contact us throughthe email address: sustainability@nothing.tech2022 Sustainability Report

6Introduction Circularity Climate action Packaging Greener chemistry Supply chain Appendix

Our 2025 goals
As an environmentally conscious brand, we continuously
review the global impact of our products to locate the mosturgent environmental issues, so that we can set credible goals
to help reverse them. All of our goals are supported by clear
explanations to facilitate quantification and tracing.
See Appendix A for more information.

Circularity

Climate action and carbon transparency• Metals: introduce recycled sources for 7 out of
the 11 key metals we use in our products.

• Apply carbon footprint labels to all products.

• Plastics: use recycled or renewable sources for 80%
of plastics contained in our products.
• Nothing products: extend the lifespan of our products,
launch trade-in programs, and expand productrecycling programs to more areas.

• Ensure that every product series decreases its carbon
footprint with each generation starting in 2025.
• Ensure that key suppliers use 100% renewable energy
in conducting Nothing-related business.
• Participate in carbon removal or carbon offset projects.

Low-environmental-impact packaging

Greener chemistry• Adopt more compact and lightweight packaging designs.

• Create a complete product chemical databasethat collects material composition informationfrom our suppliers, with at least 10,000 entries.

• Achieve plastic-free packaging in phone products,
then gradually extend to all product lines.
• Use recycled or FSC-certified sources for all fibres
in product and shipping packaging.
• Reduce the printed area on packaging and use 100%plant-based or carbon-negative ink.

• Promote the Nothing Restricted SubstanceManagement Standards throughout the supply
chain, and require all suppliers to sign the SupplierCommitment Not to Use Restricted Substances.

Sustainable supply chain• Implement a set of Sustainability Policies for suppliers, with regular assessments and progress updates. Including:— Water: reduce water consumption per unit of product manufactured by key suppliers.
— Waste: ensure key suppliers achieve zero waste to landfill.
— Conduct responsible mineral supply chain audits. Regularly release Nothing conflict minerals reports,
		 and publish smelter and refiner lists.

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Product highlights
Upon its 2021 release, Nothing’s first product, Ear (1),became the world’s first carbon-neutral earbud product.
Made possible through renewable electricity manufacturing,and offsetting with VCS-compliant carbon credits.
Then came Phone (1). Another leap in our eco-friendly efforts:

We significantly reduced
the use of chlorine &bromine flame retardants,
21 phthalates, Hg, Be,
and PVC.

The phone’s middle frame,
volume buttons, power
button, and SIM tray tip use
100% recycled aluminium
manufactured with 100%
renewable energy.

100% recycled tin is usedin the soldering process
on the main board andsub board.

Over 50% of the plastic
components use either
recycled or bio-based
plastics.

Packaging has no plastic
film and uses more than
40% recycled fibre. The
protective film of Phone (1)is made of a biodegradable
PLA material.

These efforts led to Phone (1) receiving an Eco Rating of 77. As of the end of 2022, the highest score in
the smartphone category was 85.
The Eco Rating is an industry-wide evaluation criteria and scoring system for the environmental impactof the entire process of production, transportation, use, and disposal of mobile phones.

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Receiver mesh frame
80% post-consumer
recycled plastic
Camera lightstrip frame
Bio-based plastic

Volume buttons
100% recycled aluminium
Power button
100% recycled aluminium
Middle frame
100% recycled aluminium
Wireless charger frame
Bio-based plastic
The soldering paste
used for the main board
and sub board contains
100% recycled tin

SIM tray tip
100% recycled aluminium

Proximity & lightsensor gasket frame:
Bio-based plastic

2022 Sustainability Report

Power button
FPC frame:
Bio-based plastic

TransFlashhole plug:
Bio-based plastic

Light sensor holder:
80% post-consumer
recycled plastic

Side key frame:
A/B/C:
Bio-based plastic

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CIRCULARITY

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Circularity
At Nothing, we’re striving to replace the traditional “Take – Make – Dispose” linear
economic model by transitioning to renewable and recycled materials as much as possible.
Our ultimate goal is to extract no resources from the planet and generate zero waste.

Recycled/Renewablematerial (Avoidance oftargeted substances)

Renewable energy
manufacturing

Material recycling

Extended service lifeof electronic products

End-of-life recyclingof products

Refurbished products

Linear model

Circular model

Requires large inputs of virgin materials. The mining
and smelting of these materials harm the environment,
deplete resources, and can threaten the health andsafety of workers and communities.

Switching to more recycled and renewable materials
reduces the need for virgin materials. Responsible
sourcing of mineral and fibre materials reduces harm
inflicted on environments and communities.

Devices containing hazardous substances start a harmful
cycle, making subsequent recycling more difficult.

Restricting the use of certain hazardous substances
makes recycling easier and safer.
See Greener chemistry for details.

Replacement of products speeds up resource andenergy depletion.

Making products easier to maintain and more
durable prolongs their service life.

The manufacture of smart products is energy-intensive
and mostly takes place in countries that rely on fossil fuels.

We require key suppliers to use 100% renewable electricity.
See Climate action and carbon transparency for details.

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Goals and progress
2025 goal

Progress and outlook as of 2022

Introduce recycled sources for 7 out of the 11 key metals
used in our products.

We have switched to 100% recycled tin and 100%
recycled aluminium. In 2023 we will introduce recycledsteel, recycled copper, and more.

Use recycled or renewable sources for 80% of plastics in
our products.

More than 50% of the plastic used in Phone (1) is either
recycled or bio-based plastic. In 2023, this ratio will
be increased to 80% for our next generation of phones.
We will also gradually increase the application ofrecycled/bio-based plastics in other product lines.

Extend the lifespan of our products, launch trade-in
programs, and expand product recycling programs tomore areas.

We plan to pilot a phone trade-in program in certain
regions in 2023.

Year

Material

By 2022

Aluminium

Tin

By 2023

CopperSteel

By 2025

Gold

Magnesium

Lithium

Keep exploring

CobaltRare earth
elements

Silver2022 Sustainability Report

Zinc

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We are transitioning tousing more low-impact
recycled or renewablematerials in our products.

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Recycled metals
Phones are predominantly made up of a combination of metals
such as aluminium, magnesium, cobalt, tungsten, gold, and more.
These metals are obtained from mining and smelting operations.
These processes consume a lot of resources, generate pollution,and can lead to human rights violations. Using recycled materials
is the only way forward. By switching to recycled aluminium,
for example, carbon emissions associated with aluminium canbe reduced by 90%.

Proportion ofcarbon footprint

0%

25%

50%

75%

100%

Carbon footprint of virgin aluminium

Carbon footprint of recycled aluminium

From bauxite to alumina through mining
From alumina to primary aluminium by electrolysis
From primary aluminium to aluminium sheets by machining

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8

SilverRock–to–metal ratio, 10x

Rare earth
metalsGold

64

Lithium

CopperCobaltTin
Zinc

2Magnesium
Steel

Aluminium
0

1

2

3

4

5

6

7

Recycling difficulty: 0 = easy, 7 = hard.
Bubble size = Amount in products

Note:
The rock-to-metal ratio originatesfrom research literature.
The recycling difficulty level refers to thedifficulty of introducing recycled materials
into consumer electronics, including material
reliability, supply chain availability,
and other factors.

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As we were planning to introduce recycled metals,
we needed to consider the order in which the metalelements would be incorporated. We decided
which metals we wanted to replace with recycled
sources and focused on three factors: a material’senvironmental impact, its recycling maturity,and the quantities required to make a product.
Considering this alongside supply chain opportunities
and material reliability, we ultimately decided to use
recycled aluminium and recycled tin for Phone (1).
Aluminium performs at the same level after
undergoing the appropriate recycling process,and is a resource that can be indefinitely recycled.
We visited aluminium recycling factories in China
to inspect their processes and completed iterative
testing to ensure that recycled aluminium could
work just as well in our products.

Collected end-of-life aluminium

Recycled aluminium re-enters the melting furnace

Newly forged billets are cut

Further trimmed for phone-usable aluminium

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For recycled tin, we followed a similar process.
As mobile phones generally use recycled tin
less often than recycled aluminium, building
a supply chain is more difficult and has more
technical challenges.

1

Build a traceablesupply chain ofrecycled materials

2

Use more recycledmaterials in products

3

Achieve 100%
recycled material
certification

All of our main board and sub board soldering isdone using recycled tin. Our teams in ProductR&D and Hardware Testing have been heavily
involved in testing with suppliers to find thebest parameters for our product performanceneeds. During the production process, we use
a variety of verification measures such as visual
identification and SOPs to ensure that all of our
products across all factories use recycled tin ofsatisfactory quality. And we won’t stop there.
In the future, we will continue pushing our
supply chain for adoption until tin in all partsand components are from recycled sources.
The tin and aluminium currently being used
for Phone (1) have received certification fromSCS for containing 100% recycled content.

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Recycled plastics
or bio-based plastics
Plastic is an essential material in mobile phones.
We use post-consumer recycled plastics orbio-based plastics as much as possible tosignificantly reduce environmental impact.
In Phone (1), over 50% of plastic components
used are post-consumer recycled plastics orbio-based plastics such as lightstrip frames, or
wireless charger frames. The recycled plastics
we use come from daily household waste, suchas bottles, plastic sheets, and CDs. While theraw material used in bio-based plastics is castor
oil — a non-food crop, and therefore unrelated
to issues with food supply.

2022 Sustainability Report

Where most of the industry still relies on
fossil-based plastics, we are leading thecharge for change. However, new attempts
lead to new challenges. Plastic components
used in phones need to meet unique structuraland performance requirements. This was put
to the test when designing the transparent
back of the Phone (1).
Our structural engineers worked with experts
from companies such as DuPont and SABIC
for months to obtain: the optimal technicalparameters for injection moulding, how to
use a higher proportion of recycled content inplastics, and how to replace more components
with recycled or bio-based plastics.

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Product durability
We are committed to ensuring that our
newest generations of products are not
only more powerful but also more durable.
By improving our products’ resistance todust and water, as well as extending battery
life, we reduce the need for product repairs
and replacements. Based on this, we areplanning to offer a variety of after-sales
repair options, including authorised repairers
and mail-in repairs.

2022 Sustainability Report

We also plan to release online tutorials andofficial Nothing parts to enable self-service
repair. To better promote the flow of ourdiscarded items, we plan to roll out a trade-ininitiative for used products and an authorised
refurbished product venture.

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Waste products
recycling and disposal
E-waste recycling is a vital part of the circular
economy. We strictly follow WEEE regulations
in different countries and regions, as well as
the Basel Convention on the Control ofTransboundary Movements of Hazardous
Wastes. Furthermore, we partner withprofessional and reliable recycling agencies
and not-for-profit organisations such as theEuropean Recycling Platform, Ecologic, andStichting Open.

2022 Sustainability Report

In two-thirds of the countries or regions inwhich Nothing sells products, we run producttake-back programs to ensure products areproperly disposed of. We are planning to further
expand our recycling programs in the future.
At the same time, we create a cleaner cyclefrom the start by limiting the use of hazardous
substances and implementing safer recycling.
See Greener chemistry for details.

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CLIMATE ACTION
AND CARBON
TRANSPARENCY

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Climate action andcarbon transparency
The 2022 IPCC assessment report sent a clear message:
there is no time to lose in addressing the climate crisis.
We realise that reducing greenhouse gas emissions is a major
challenge. In fact, the entire industry is under pressure to decouple
business growth from carbon emissions. As a new, fast-growing
company, we’re determined to be a force for industry change,
pursuing innovation to carry out one of our brand values — “Be thechange”. It takes time to build up resources and experience to makebreakthroughs, but our results so far show that we’re on the right track.

2025 goal

Progress and outlook as of 2022

Apply carbon footprint labels to all products.

All Nothing products have carbon footprint labels.
We will continue to do this and keep optimising the
calculation model.

Ensure that key suppliers use 100% renewableenergy in conducting Nothing-related business.

Ear (1) and Ear (stick) are manufactured with 100%
renewable electricity. We are working towards making
100% renewable electricity a mandatory requirement for
all products.

Ensure that every product series decreases its carbon
footprint with each generation starting in 2025.

Participate in carbon removal or carbon offset projects.

2022 Sustainability Report

Ear (1) is a carbon-neutral product. We are working
closely with our suppliers to explore innovativeemission reduction solutions.
Nothing’s scope 1, 2, and 3 carbon emissions are fully
documented, laying the foundation for future carbon
removal or offsets.

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Through innovativetechnology, renewableenergy applications,transparent disclosureof data, and high-quality
carbon removal projects,
we will reduce our impact
on the climate.

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1. We disclose the carbon footprint of ourentire value chain.
Based on the GHG Protocol, we fully identify
and calculate GHG emissions related to ouroperations and value chain. Our calculations
indicate that 90% of our emissions impact comesfrom either upstream (material acquisition etc.)
or downstream (product use phase) in thevalue chain.
Our offices (Scope 1 and 2)
In 2021, we had five offices in operation, while in2022, we expanded our reach to eight offices andone store across the globe. Moving forward, any
additional workspaces will be accounted for in
our upcoming GHG inventories.
Our value chain (Scope 3)
As shown in the chart, product manufacturingis the main contributor to our carbon footprint.
This includes material acquisition and supplier
manufacturing. We have incorporated the carbon
footprint of our products into our value chain
emissions calculation. For specific categorised
scope-3 emission data, see Scope 3 inventory.

Nothing 2021 GHG emission structure

Scope 1
3.9%
Scope 2
3.4%
Scope 3
92.7%

Nothing 2022 GHG emission structure

Scope 2
1.2%
Scope 398.8%
Note:
Scope 1 is less than
0.1% and not shownin the chart.

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Nothing organisational carbon footprint 2021

Direct emission (Scope 1)
Emissions from electricity
consumption (Scope 2)
Capital goods
Product manufacture
Product transportation
Business travel & employee
commuteProduct use
Product end-of-life treatment
0

100

200

300

10000

150000400

500

Emissions offset by the VCS program
Emissions reduction from renewable energy manufacturing
Residual emissions

Nothing organisational carbon footprint 2022

Direct emissions (Scope 1)
Emissions from electricity
consumption (Scope 2)
Business travel & employee
commuteProduct manufacture
Product transportation
Product use
Product end-of-life treatment
02022 Sustainability Report

5000

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India

EU

GlobalWe believe that carbon footprint data should
be as clearly marked on the packaging as otherspecifications, so consumers can make informed
decisions. As of the end of 2022, carbon footprintlabels have been added to all six products,
including our product accessories. We willcontinue this practice into the future.

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The carbon footprint of a product quantifies
the total amount of greenhouse gases a
product generates throughout its lifecycle.
From raw material acquisition to assembly andmanufacturing, product transportation, use, anddisposal. We follow ISO 14040, 14044, and 14067
standards to quantify product carbon footprints,
and our data has been certified by SGS, DEKRA,
and TÜV Rheinland.
More accurate product carbon footprint
reporting delivers more accurate data acrossthe cycle for decision-making, which is why weplan to keep optimising our calculation modeland to include more primary data. Looking ahead
long-term, we hope to participate in establishingconsumer electronics standards for carbon
footprint calculation, and promote this practicein the industry.

Raw materials
extraction

Finaldisposal

Materials
manufactureLife cycle assessment
RecycleProduct
manufacture

Product use

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2. We require our key suppliers to
use 100% renewable energy in their
manufacturing processes.
The key to solving the climate crisis is to
end our dependence on fossil fuel energy.
The use of renewable energy is a major
driver to reducing emissions across thevalue chain. As we understand the barriers inplace for our supplies to procure renewableelectricity, namely their small scale and thehigh costs involved, we have purchased
I-RECs (International Renewable Electricity
Certificates) for our Ear (1) and Ear (stick)
final assembly suppliers. This includes 101
MWh of solar power and 449 MWh of lowimpact hydropower to offset manufacturing
electricity consumption. This has led to 447
tCO2e of avoided emissions.
Nothing is committed to ensuring all our key
suppliers switch to 100% renewable energy
for our products. As renewable electricity
market transactions mature and the scaleof production expands, we will support our
suppliers in developing renewable energy
sources, such as on-site generation, green
utility providers, and the “Integration of
Certificate and Power” model.

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3. We are always exploring new ways
to radically reduce carbon emissions.
When we analyse the carbon emissions
distribution of our earbuds and phones,
across the cycle, we can see that 60–70%
of emissions are generated during raw
material procurement, followed by producttransportation and product use. For thisreason, we put recycled and renewablematerials at the core of our products. We havealready made notable progress, incorporating
many recycled materials in Phone (1).
See Circularity for details.
In addition, the manufacture of electronic
components has the greatest influence
on consumer electronics emissions. It is amassive technical challenge to reduce thecarbon footprint of upstream component
suppliers for components such as chips.
There is still a long road in front of us, but
through broader collaboration, there isan opportunity to make transformational
breakthroughs together.
Regarding product transportation, we arelooking to change from air to sea transport.
If possible, we also want to work withcarbon-neutral logistics providers. Throughmore innovative practices, we can accelerate
the transition to low-carbon solutions.

End-of-life treatment 2%
Use 6.7%

Transportation 22.9%

Ear (1)
carbon footprint
Manufacturing 0.4%

Raw materials 68%

Use 2.7%
Transportation 19%

Manufacturing 0.2%

Ear (stick)carbon footprint
Raw materials 78.1%

End-of-life treatment 0.2%
Use 27.4%

Transportation 2.6%

Phone (1)carbon footprint

Manufacturing 3.8%
Packaging materials 0.3%
Structural materials 2.6%

Electronic materials 63.2%

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4. We plan to invest in high-quality,
nature-based carbon removal.
The 2022 IPCC assessment report stated thatin order to limit global warming to well below
2, preferably to 1.5 degrees Celsius, compared
to pre-industrial levels, carbon removal is"essential". Not only is it important that we
reduce the emissions we are emitting now,
but also we need to remove cumulativeemissions in the atmosphere. To this end, wemust take measures to restore nature’s ability
to remove greenhouse gases.
In 2021, we purchased 1,338t of VCScompliant carbon credits from wind power
projects, offsetting the remaining carbon
footprint of Ear (1).

2022 Sustainability Report

The Verified Carbon Standard (VCS) Programis the world’s most widely used program forpurchasing carbon offsets. It follows rigorous
evaluation criteria to verify the authenticity
and reliability of emission reduction projects.
Going forward, we plan to use more funds toprotect and develop natural carbon sinks suchas forests, wetlands, and grasslands. We givepriority to directly investing in and operatingthese carbon removal projects, followed bycooperating with professional institutions.

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LOWENVIRONMENTALIMPACT
PACKAGING

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Low-environmentalimpact packaging
Our commitment to sustainability extends to every
detail, covering not only our products but also theirpackaging. We require our product packaging to belightweight, plastic-free, and easily recyclable, whilestill protecting the contents and ensuring a hasslefree unboxing experience.

2025 goal

Progress and outlook as of 2022

Adopt more compact and lightweight packaging designs.

When designing packaging for new products, we pay close
attention to volumetric efficiency and weight reduction.
We want to make each generation’s packaging have less
impact than the last.

Achieve plastic-free packaging in phone products, thengradually extend to all product lines.

The packaging of Phone (1) removes the plastic film
typically wrapped around cardboard boxes, and we areworking towards eliminating all plastic materials in our
packaging.

Use recycled or FSC-certified sources for all fibres in
product and shipping packaging.

Using Phone (1) as an example, the packaging box uses
40% recycled fibre. In 2023, we will gradually increase theproportion of FSC-certified fibre in our packaging.

Reduce the printed area on packaging and use 100%plant-based or carbon-negative ink.

In 2023, bioinks will be used for product packaging,and new carbon negative inks such as algae ink will be
investigated and introduced in due course.

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1. Zero plastic
Phone (1) is packaged using a single-use paper sealin place of plastic wrap. This not only simplifies
unboxing, but also helps reduce the use of plastic
by approximately 1.6 tons in total. This design will be
used for all packaging in the future. For plastic parts
that cannot be easily replaced, we are investigating
alternative-fibre materials. However, the current
solutions available on the market have defects.
We are currently covering the phones with a PLA
film that can biodegrade under industrial
composting conditions.

2. Use of responsible, recycled fibre materials
Different fibres from different sources have varying
environmental impacts. Generally speaking, recycledfibres are the best, followed by virgin bamboo fibres(including bagasse), and then virgin wood fibres.
We follow this priority order when selecting materials.
Using Phone (1) as an example, we increased the
proportion of recycled fibre to 40%. Furthermore,
we are planning to gradually increase the proportionof FSC-certified fibre materials, which are derived
from responsibly managed forests.
From 2023 onwards, we will expand into using recycled
and responsible materials for transport packaging,such as delivery boxes made of recycled fibres andbiodegradable shock-absorbing packaging foam. We
will also provide recycled fibre packaging options forour retail stores.

Phone (1) package fibre composition

Primary fibre
58.2%

2022 Sustainability Report

Recycled fibre
41.8%

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3. Usage standards for printing inks
We aim to only print the minimum required
content on packaging to reduce the amount of
ink we use. For the ink we need to use, we will
move from fossil-based inks to vegetable-based
inks, such as soybean inks.
Not only does this avoid the release of volatileorganic compounds (VOCs) into the atmosphere,
but also soybean ink is easier to remove frompaper, making it easier to recycle. We are also
investigating other promising printing inks, suchas carbon-negative algae-based inks.
These packaging requirements are explained in
the Nothing Packaging Sustainability Guideline,
and all related design teams and suppliers must
implement them.

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GREENERCHEMISTRY

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Greener chemistry
Creating safer, greener products means strictly managing
the chemicals used throughout the entire process,from product manufacturing to use, through to recycling.
We enforce a rigorous chemical management policy
and comprehensively identify the chemicals used in our
products and their manufacturing processes. We also holdourselves to stricter standards than are legally required,
ensuring the utmost safety for every supplier, employee,
and consumer.

2025 goal

Progress and outlook as of 2022

Create a complete product chemical database withat least 10,000 entries.

This project has been initiated, and we expect that the
supplier material disclosure system will be officiallylaunched and gradually improved in 2023.

Promote the Nothing Restricted Substance Management
Standards throughout the supply chain, and require all
suppliers to sign the Supplier Commitment Not to Use
Restricted Substances.

We have updated the Nothing Restricted SubstanceManagement Standards, and key Tier-1 suppliers havesigned a commitment to meeting these specifications.

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Our solutions
Consumer electronics products containthousands of chemical substances due to theircomplex material composition. So that we cancomprehensively and thoroughly understandwhich chemicals are in our products, we require
suppliers to fully disclose the composition of
the materials they use, and we are establishinga system for material disclosure.
We have always believed in staying aheadof regulations when it comes to the
management of restricted substances.

In 2022, we updated the Nothing Restricted
Substance Management Standards (QMBZ-0301) (abbreviated as “our specifications”
in this report) to meet the RoHS Directive,
REACH regulation, POPs regulation, and othernational regulations. We proactively ban the useof PVC, red phosphorus, polycyclic aromatichydrocarbons (PAHs), antimony trioxide,
beryllium and its compounds, and brominatedand chlorinated flame retardants (BFRs andCFRs).

The Nothing Restricted Substance Management Standards containdetailed quantitative requirements for the following content:
5.1 General standards
5.2 Packaging materials management standards
5.3 Battery management standards
5.4 Process management standards
5.5 Management standards for skin-contact materials

RoHS stands for Reduction of Hazardous
Substances and is an EU directive that
restricts the use of hazardous substances inelectrical and electronic equipment to protect
the environment and public health.
REACH stands for “Registration, Evaluation,
Authorisation and Restriction of Chemicals”
and is a European regulation that restricts theuse of certain chemical substances in all partsand products manufactured, sold, andimported within the EU.

during product use. These chemicals accumulate
in the environment and the food chain, ultimately
causing harm to the human body. Therefore,
we require our suppliers to use safer and moreenvironmentally friendly flame retardants suchas phosphorus compounds or inorganic minerals.
It’s important to note that in comparison to
many other companies’ restricted substancecommitments, we implement our standards
across all product lines, not just some.

We invest more resources and bear higher
costs to implement our specifications.
For example, CFRs and BFRs are effective at
stopping electrical components from catchingon fire, but they release harmful substances

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Chemical substance

Removed and limited harmful substances

Polyvinyl chloride (PVC)

We have removed PVC from all our products.
Commonly used for connecting wires, PVC endangers
human health and the environment while being
manufactured, during product use and when it is being
disposed of.

Polycyclic aromatichydrocarbons (PAHs)

We have removed PAHs from all plastic components thatcome into contact with human skin. PAHs are commonly
found in plastics and potentially cause cancer throughskin contact.

Antimony trioxide

We have banned the use of antimony trioxide in allof our products. The World Health Organization’sInternational Agency for Research on Cancer (IARC)
has classiﬁed antimony trioxide as a Group 2B agent,
which is possibly carcinogenic to humans as outlinedin the IARC monographs. It is often added to connecting
wires as a flame retardant.

Beryllium

We have discontinued the use of beryllium in electronic
components including connecting wires and switches.
Exposure to beryllium can cause beryllium poisoning.

Chlorinated and brominatedflame retardants (CFRs and BFRs)

We have removed these two flame retardants fromall components. CFRs and BFRs accumulate in theenvironment and human body over a long period andcan cause serious harm.

Red phosphorus

After we removed halogen flame retardants, we went
further and required red phosphorus to be replaced withorganophosphorus as a flame retardant. Red phosphorus
is not only toxic, but also flammable.

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As consumer electronic products have become
more integrated within our daily lives, expectations
for device cleanliness and comfort have risen,
particularly for wearable devices. We are exploring
potential alternatives to acrylate, a common allergen,and we are planning to work with laboratories todevelop new antibacterial materials.
We closely follow every phase of the product cycle,
from R&D to sales, to ensure that our specifications
are implemented. We are also building a tracking
process for further follow-up.

Step 1
Product development

Step 2
Product material selection

Step 3
Commitment signing

We follow green chemistry policies during
development, and stay up to date on eachcountry’s regulations and research on
new materials. The Nothing Restricted
Substance Management Standards arepromptly updated as needed.

We communicate our specifications toall potential suppliers and request therelevant certifications for verification.

We verify that each supplier has signed
the Supplier’s Commitment to Not Use
Restricted Substances and filled in the
Substance Declaration Form and Material
Composition Declaration.

Step 4
Incoming material inspection

Step 5
Process control

Step 6
Shipment inspection

Nothing or an entrusted
third-party performs various tests on
the materials. If the materials do notmeet the requirements, we return themto the supplier and ask them to make thenecessary corrections.

We screen and test auxiliary materials
used in the manufacturing process toensure they meet our specifications.

We spot check outbound products toverify that our specifications are met.

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SUSTAINABLE
SUPPLY
CHAIN

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Sustainablesupply chain
To reach our sustainability goals and drive widespreadchange, we need to work closely with our supply chain.
This means clearly communicating our vision and goals,
providing resources and support, and monitoring supplierperformance to encourage continued improvement.

2025 goal

Progress and outlook as of 2022

Implement a Sustainability Policy for suppliers,
with regular assessments and progress updates

The first version of our Sustainability Policy has gone
into effect and will continue to be updated to encourage
supplier improvement.

Reduce water consumption per unit ofproduct manufactured by key suppliers.

We are planning to pilot rainwater and wastewater
recycling projects in key factories.

Our key suppliers will achieve zero waste to landfill.

Some of our key suppliers have already made zero-wasteto-landfill commitments. We will continue to support
these commitments and gradually encourage suppliers
to obtain UL zero waste certifications.

Conduct responsible mineral supply chain audits, regularly
release Nothing conflict minerals reports, and publish
smelter and refiner lists.

Our key Tier-1 suppliers have committed to not use
conflict minerals.

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Sustainability Policy
Our supply chain Sustainability Policy covers fiveaspects: the environment, occupational health andsafety, sustainable resources, restricted substancemanagement, and responsible mineral procurement.

Environment aspect sections

Greenhouse
Gas Emissions
Management

Water and
Wastewater
Management

When it comes to the environment,
our suppliers are required to not only meetbasic compliance requirements, but tobuild a complete management system forenvironmental issues, proactively seeking
to reduce pollution from the source. In 2022,
our remaining Tier-1 suppliers have not had
any environmental violation incidents,
and 100% have obtained ISO 14001 EMS
certification. This is a good start, but wealso plan to assist key suppliers with resource
recycling, increasing their water reuse rate,
and waste recycling conversion rate.
The remaining Tier-1 suppliers have also
received either ISO 45001 or SA 8000
certification for occupational health andsafety management. Some have completed
the Responsible Business Alliance (RBA)
Validated Assessment Program (VAP). These
third-party assessments help us verify that
our suppliers are meeting our standards.

2022 Sustainability Report

Solid Waste
Management

Exhaust Emission
Management

For sustainable resources, we have released
use specifications for three core materials:
metal, plastic and fibre. The specifications
prioritise the use of low-environmentalimpact and responsibly sourced materials,
and clearly communicate our expectations
across the supply chain.
We strive to use responsibly sourced
raw materials in all of our products, and weparticularly avoid the use of conflict minerals.
We require our suppliers to sign the ConflictFree Minerals Commitment. As of 2022, key
Tier-1 suppliers had signed the commitment.
Suppliers are required to conduct theirown due diligence checks on their mineralsources, and regularly update the Conflict
Minerals Reporting Template (CMRT) and
Extended Minerals Reporting Template(EMRT) to confirm which smelters andrefineries they use. The final manufacturersof Ear (stick) and Phone (1) have implemented
this procedure and submitted CMRTs thatmeet requirements.

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APPENDIX

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Appendix A:
Goal methodology

Metric 2:
Plastics: Use recycled or renewable sources for 80%
of plastics contained in our products.
This goal applies to our phones where 80% of theplastic components contain recycled or bio-based
plastics.

Metric 6:
Ensure that key suppliers use 100% renewable energy
in conducting Nothing-related business.
The key suppliers in this goal refer to Tier-1 final
assembly suppliers.

Metric 8:
Adopt more compact and lightweight packaging
designs.
This goal uses Phone (1) as the basis for volumetricefficiency and weight efficiency improvements.
Packaging volumetric efficiency =Product volume
Packaging volume
Packaging weight efficiency =Product weight
Packaging weight

Metric 10:
Use recycled or FSC-certified sources for all fibres in
product and shipping packaging.
This goal refers to the product packaging box andshipping box.

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Appendix B:
Greenhouse gas emissions
Nothing GHG emission inventory

Scope

Emission source

Scope 1: Direct emissions

2021 GHG
emission(tCO2e)2022 GHG
emission(tCO2e)

43.20

10.34

Fossil fuel combustion emissions

No relevant emission source——

Fugitive emissions

Fugitive methane from officewastewater processing

23.92

10.34

HFC – 32

19.28—

No relevant emission source——

Scope 2: Emissions related to electricity consumption

37.00

275.52

Energy (China)

24.27

173.72

Energy (United Kingdom)

4.93

24.43

Energy (India)

7.59

76.82

Energy (Sweden)

0.21

0.55

Before offset

976.0322821.86

Product offset–738.33—

Total carbon emissions (before offset)

1056.2423107.91

Total carbon emissions (after offset)

317.91

Process emissions

Energy (location-based)

Scope 3: Emissions across the value chain

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Scope 3inventory
GHG
protocolcategory

2021 GHG
emission(tCO2e)2022 GHG
emission(tCO2e)Purchased
goods andservices504.3513759.06

This category of emissions mainly includes the
procurement of raw materials for production and theemissions generated by the supplier’s manufacturing
process, and also includes the emissions from paper
purchased for the office, where the emission factor
used is cradle-to-gate.

Capitalgoods

142.16

11.72

This category mainly includes emissions from theprocurement of assets and equipment (refrigerators,
computers, etc.) using cradle-to-gate emission factors.
Assets and equipment required for the following five
years were purchased in unison in 2021, making the 2021
emissions generated in this category relatively large. In
subsequent years, we expect a significant decline.

Fuel- andenergy-related
activities

9.65

57.14

Fuel- and energy-related activities (not included in Scope 1or 2) include upstream emissions of purchased electricity,while transmission and distribution (T&D) losses (by energy
use type) have been included in Scope 2.

Upstreamleased assets

Not relevant

Not relevant

We do not lease other related party assets.

Upstreamtransportationand distribution

170.16654.23This category mainly includes emissions from transporting
the assembled products from the assembly supplier tothe warehouse, and then from the warehouse to the placeof sale.

Waste
generated

4.54

0.87

This category mainly includes emissions from incinerating
office waste.

Businesstravel26.19

150.20This category mainly includes emissions from air
travel, high-speed trains, vehicles and hotels used
for business travel.

Employeecommuting

54.93

242.60This category mainly includes emissions from employees
using electric vehicles, cars, and metro transport.

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Emissions calculation methodology

46Introduction Circularity Climate action Packaging Greener chemistry Supply chain Appendix

Scope 3inventory
GHG
protocolcategory

2021 GHG
emission(tCO2e)2022 GHG
emission(tCO2e)Emissions calculation methodology

Processingof sold
products

Not relevant

Not relevantThis category is not relevant because our products are
sold directly to consumers or distributors. No intermediate
products are sold.

Downstream
transportationand distribution

Not relevant

Not relevant

Our product transport services are procured by
Nothing. These emissions are included in the upstream
transportation and distribution category. There are no otheremissions relevant to this category.

Use of soldproduct

49.51

7860.98

This category mainly includes emissions from the lifetime
electricity use of devices we sold during this reporting year.

End-of-life
treatmentof sold
products

14.56

57.46

This category mainly includes emissions from the end-oflife treatment of devices we sold during the reporting year.

Downstream
leasedassets

Not relevant

Not relevant

We do not lease assets externally.

Franchise

Not relevant

Not relevant

We do not have any franchises.

Investments

Not relevant

Not relevant

We have not engaged in equity investment, long-term
financing of projects, or debt issuance.

To generate an estimate for this category, the model
assumes that a quarter of devices are sent to landfills andthe rest are recycled at the end of their life.

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Emission factors &conversion factors
Year

SourceCY2022Per CY2021 below, except for updates made to reflect:• China Products Carbon Footprint Factors Database, available online: lca.cityghg.com• IEA 2022, International Energy Agency emission factors• UK BEIS Greenhouse gas reporting: conversion factors for 2022
• For LCA/PCF Studies: Chinese Life Cycle Database-China-ECER 0.8

CY2021• For LCA/PCF Studies: Ecoinvent v3.7 databases with impact assessment
method IPCC AR5 GWP100,including biogenic carbon and land use change• For LCA/PCF Studies: European Life Cycle Database• UK BEIS Greenhouse gas reporting: Conversion factors for 2021
• IEA 2021, International Energy Agency emission factors• PRC Ministry of Ecology and Environment, Notice on the Key Work Related to theManagement of Corporate Greenhouse Gas Emission Reporting in 2022
• NDRC, Guidelines for Accounting and Reporting of Greenhouse Gas Emissions
for Electronic Equipment Manufacturers• IPCC (default based on NCV) 2006

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Appendix C: Certification

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Appendix C: Certification

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Appendix C: Certification

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Appendix C: Certification

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Appendix C: Certification

2022 Sustainability Report53

THANK YOU

nothing.tech