Building Competitive Advantage Through ESG Performance: A Case Study of XPeng Motors

This paper explores how XPeng Motors builds competitive advantage by enhancing its ESG (Environmental, Social, and Governance) performance. In the environmental aspect, XPeng Motors is committed to developing and promoting electric vehicle technology, actively responding to global environmental trends by reducing carbon emissions and improving energy efficiency. In terms of social responsibility, the company focuses on employee welfare, customer experience, and community involvement by providing a positive work environment and career development opportunities. Regarding corporate governance, XPeng Motors has established an efficient, transparent management system and a robust internal control mechanism to ensure compliance and transparency in its operations. By using Li Auto as a comparative sample, this study analyzes the ESG rating gap between the two companies and applies the PDCA (Plan-Do-Check-Act) model to examine strategies for improving the ratings. Finally, recommendations are provided for government, corporations, and investors on enhancing ESG ratings.