Zhihu Inc. 2025 ESG Report: Key Takeaways and Potential Investor Impacts

Comprehensive Overview of Zhihu’s 2025 Environmental, Social, and Governance Performance

Zhihu Inc. has released its 2025 Environmental, Social, and Governance (ESG) Report, detailing its initiatives, achievements, and future strategies across sustainability and responsible corporate conduct. This report is notable for investors as it provides insight into Zhihu’s risk management, operational focus, and commitment to regulatory compliance, all of which may have significant impacts on the company’s long-term value and reputation.

Key Highlights of the 2025 ESG Report

• ESG Governance Structure:
  • Zhihu has implemented a three-tier governance structure. The Board of Directors directly oversees ESG matters, with the Corporate Governance Committee handling risk evaluation and ensuring appropriate internal controls.
  • The ESG Working Group is responsible for the development and execution of ESG strategy, material risk identification, and shareholder communications.
• Material Issues and Strategic Priorities:
  • Top three material ESG issues: Information Security and Privacy Protection, Creator Incentives, and High-Quality Community Building.
  • Clear management objectives and risk control mechanisms are in place for these areas, including 100% policy coverage for privacy protection, strengthened data compliance, and robust creator support mechanisms.
• Strong Performance Metrics:
  • 1,236 articles published to debunk rumors, over 120,000 views in total.
  • 3.053 million fraudulent interactions cleared, with a 30% automatic fraud identification and interception rate.
  • Advertising content detection accuracy reached approximately 90%.
  • The revenue penetration rate among active creators stabilized at over 70%.
  • ISO/IEC 27701:2019 and ISO/IEC 27001:2022 certifications were obtained for privacy and information security management.
• Workforce and Governance Diversity:
  • 57% of employees are female; 14% of board directors are female, demonstrating diversity progress.
  • Comprehensive employee training, with over 27,955 training hours completed in 2025.
• Supply Chain and Compliance:
  • 8,148 suppliers managed with a focus on responsible sourcing and supply chain sustainability.
  • Zero concluded legal cases regarding corruption in 2025, reflecting strong compliance culture.
• Environmental Initiatives:
  • Achieved 100% waste sorting and recovery for hazardous waste.
  • Incorporated energy efficiency into data center supplier evaluations, supporting China’s “dual carbon” goals.
  • Launched green office practices, prioritized second-hand furniture, and promoted paperless operations.
• Climate Change Response and Risk Management:
  • Adopted the Hong Kong Stock Exchange’s ESG Reporting Guide and referenced ISSB’s IFRS S2 for climate disclosures.
  • Comprehensive climate risk identification, including transition and physical risks (e.g., regulatory changes, extreme weather).
  • No material climate-related risks identified in 2025; ongoing monitoring and scenario analysis planned.

Potentially Price-Sensitive Issues for Shareholders

• Regulatory Compliance & Risk Control:
  • Zhihu’s achievement of MLPS 2.0 Level 3 and international ISO certifications enhances its cybersecurity credentials. This could mitigate regulatory risks and potentially reduce costs and liabilities from data breaches or compliance failures.
• Creator Ecosystem Stability:
  • A stable and high revenue penetration among top creators (over 70%) and a 20%+ YoY increase in Creator Net Promoter Score highlight the platform’s ability to retain and attract high-quality content creators, which is critical to user engagement and future revenue streams.
• Advertising Integrity and Monetization:
  • Rigorous triple-audit processes and AI-driven compliance in advertising may enhance brand reputation and reduce operational risks, supporting higher quality engagement with advertisers.
• Social Responsibility and Brand Value:
  • Zhihu’s expansion into rural revitalization and public welfare, as well as its campaigns for positive online energy, could enhance the company’s social license to operate, attract new user demographics, and increase goodwill with regulators and the public.
• Climate Action and Operational Efficiency:
  • While no material capital expenditure was made on climate risk in 2025, Zhihu’s integration of energy-efficient practices and ongoing scenario analysis position it favorably for future regulatory changes or stakeholder demands on emissions reduction.
• Board and Workforce Diversity Initiatives:
  • Ongoing efforts to promote diversity at all levels may contribute to more resilient decision-making and enhance the company’s ESG ratings, potentially attracting ESG-focused investors.

Other Noteworthy Achievements

• Zhihu received several awards, including Beijing’s key internet-based Party building “Excellent Award” and the “Employer of the Year” Award, underscoring its reputation and recognition in the industry.
• 258 targeted public welfare activities were completed in 2025, illustrating active corporate citizenship.
• Significant progress in digital inclusion, with focused programs to bridge the digital divide for the elderly and rural users.

Risks and Challenges

• Potential regulatory tightening around climate, privacy, and content governance may increase compliance costs in the medium to long term.
• Exposure to extreme weather events and supply chain sustainability are recognized as emerging physical and transition risks, though currently not material.

Conclusion

Zhihu’s 2025 ESG Report demonstrates significant progress in governance, risk management, content and advertising integrity, creator ecosystem support, and environmental stewardship. The company’s proactive stance on compliance, climate action, and social responsibility could enhance its investment case and appeal to a broader range of stakeholders, including ESG-focused investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are encouraged to review the full ESG report and consult their own advisors before making investment decisions. The author does not guarantee the accuracy or completeness of the information provided and accepts no liability for any losses arising from reliance on this content.

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