Better Health for All

Hesai Group's core LiDAR products significantly enhance vehicle safety, with documented reductions of 90% in fatal highway accidents and 20-30% in general road accidents in equipped vehicles.

The company has no revenue from products with negative health outcomes. Hesai demonstrates an outstanding safety record, being the first in the global LiDAR industry to receive ISO 21448 SOTIF certification in September 2024, alongside ISO 26262 ASIL B for its Pandar128 and QT128 sensors, and ISO/SAE 21434. Its products feature a fault diagnosis coverage rate of over 96% and a response time of less than or equal to 100 ms. The company has reduced the cost of its LiDARs by 99.5%, making ADAS technology available in EVs priced as low as $15,000. Hesai's LiDAR technology is presented as a preventative measure against accidents, with functional safety covering 100% of safety-related components. For healthcare data responsibility, Hesai's LiDARs do not store image data or transmit data wirelessly, with customers owning and controlling all data. The company obtained ISO/IEC 27001 certification in May 2022 and TISAX AL3 certification in February 2023. Hesai also leads and participates in drafting international LiDAR safety standards, including ISO/PWI 13228, UL4700, and IEC 60825.

Honest & Fair Business

The company adopted an anti-corruption policy on January 16, 2023, which applies to Hesai Group, its subsidiaries, consolidated affiliated entities, officers, directors, employees, shareholders, dealers, agents, and third parties.

This policy strictly prohibits bribery and other forms of corruption, complying with the U.S. Foreign Corrupt Practices Act and all anti-corruption laws in China. It includes guidelines for gifts (nominal value less than RMB200, maximum RMB1,000 annually per person) and meals/entertainment (less than RMB200 per person, maximum RMB2,000 annually per person, or four times per year). The policy requires accurate books and records and strictly prohibits retaliation against any employee who reports a potential compliance issue in good faith. The Code of Business Conduct and Ethics also encourages prompt internal reporting of violations and strictly prohibits retaliation. The Nomination and Corporate Governance Committee is responsible for developing, reviewing, and monitoring the code of conduct and compliance manual. This Committee consists of two or more independent non-executive directors, with at least one member of a different gender. It is responsible for annually reviewing board independence to meet Nasdaq and Hong Kong Stock Exchange requirements and for managing conflicts of interest. The anti-corruption policy includes provisions for auditing third-party agents' books and records to ensure compliance and allows for agreement termination if violations are identified. However, there is no specific percentage of ethical claims verified by third parties.

Kind to Animals

The provided articles, which summarize Hesai Group's inaugural ESG Report from August 2024, consistently state that the report focuses on lidar technology and does not contain information relevant to animal welfare, animal products, animal testing, or related operations.

For each KPI, the evidence explicitly indicates that the topic is 'Not applicable' within the scope of the report or simply not mentioned. As there is no specific, concrete data point provided for any of the 'Kind to Animals' KPIs, all KPIs must be omitted from the scoring.

No War, No Weapons

Hesai's lidar sensors are identified as dual-use technology with applications in both civilian and military contexts, including autonomous warfighting vehicles and anti-aircraft/counter-missile systems.

The U.S. government argues that Hesai makes advanced laser technology with substantial military applications. Hesai was added to the U.S. Department of Defense (DoD) Chinese Military Companies List (1260H list) on January 31, 2024, and this designation was upheld by the U.S. District Court on July 12, 2025. The DoD's rationale included Hesai's research ties to the Chinese Ministry of Industry and Information Technology (MIIT) and its residence in a 'military-civil fusion enterprise zone'. Hesai's third-largest supplier in 2019, CETC 13th Research Institute, was sanctioned by the U.S. Government in August 2018. Hesai claims all its lidar products have EAR99 status, but this does not prevent their use in military applications. Hesai claims it does not sell products to any military or have ties to any military, but its lidar systems have appeared on Chinese military vehicles. After its designation on the 1260H list, numerous lobbying firms terminated business with Hesai. Concerns have been raised about the potential use of Hesai's technology in surveillance systems in Xinjiang, China, and the lack of transparency regarding such potential use. Hesai claims to have an independent corporate governance structure.

Planet-Friendly Business

The provided articles, including financial summaries and ESG report announcements for 2023 and 2024, do not contain specific quantitative data or concrete facts for any of the Planet-Friendly Business KPIs. While some articles mention the release of an inaugural ESG report, the summaries themselves do not provide the necessary details on emissions, renewable energy, water use, waste diversion, or other environmental performance metrics.

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

Safe & Smart Tech

Hesai has obtained several significant certifications, including ISO/IEC 27001:2013 (Information Security Management System) in September 2022, ISO/IEC 27001:2022, and TISAX AL3 (highest protection level) in February 2023.

Its Pandar128 lidar received ISO/SAE 21434 cybersecurity product certification. The company states that data encryption and lidar authentication are core technologies, and it uses encryption to protect personal information. Hesai's lidars are designed not to store or wirelessly transmit point cloud images, with data transfer occurring via one-way secure cable. Users can access, correct, and delete their personal information, withdraw consent, and cancel accounts, with responses to complaints within 15 days. Hesai conducts malicious code and vulnerability detection and repair prior to software release. The company commits to keeping personal information only for necessary periods and storing data collected within China in Chinese territory. Hesai also participates in international standards drafting working groups for ISO/PWI 13228, UL4700, IEC 60825, UL4600, and UL3300. No data breaches or vulnerabilities have been reported.