Digital platforms

Tencent Holdings Limited

Rank: 11th
Score: 30%

Headquartered in China, Tencent offers social media, messaging, gaming, music, and cloud services. Tencent’s multipurpose messaging platform, WeChat, dominates the Chinese market, with 1.38 billion[1] monthly active accounts held by government entities, businesses, media outlets, and individuals. Tencent’s revenues are driven by a combination of online gaming sales, advertising, and financial services.

Meta3
47%
Apple4
44%
Kakao4
44%
X7
40%
Yandex8
37%
Baidu9
33%
Tencent11
30%
Samsung12
28%
Amazon13
27%
VK13
27%

After coming last in the 2022 RDR Big Tech Scorecard, Tencent climbed to eleventh place this year, behind its Chinese peers Alibaba and Baidu, owing in part to significant progress in its disclosures on governance.

Sustainalytics, the ESG rating unit of U.S. financial services group Morningstar, downgraded Tencent in November 2022, triggering a sell-off of USD 1.2 billion in Hong Kong-listed Tencent shares by over 40 European investors. Tencent responded by bolstering its governance disclosures. In its latest ESG report, the company confirmed its commitment to human rights and outlined a three-tier oversight mechanism for monitoring ESG issues.

Domestically, Beijing softened its stance on tech companies to support economic recovery in 2023, leading to a partial rebound for Tencent, including strong revenue growth driven by the recovery of its gaming business. However, the Cyberspace Administration of China (CAC), the country’s top internet regulator, continued to exert strict control over Chinese internet and digital platforms. As the operator of QQ and WeChat, two widely used messaging and social media platforms in China, Tencent remained a key target of these regulatory measures.

In September 2023, the company was fined by CAC for allowing illegal and pornographic information to appear on QQ. It was also warned by the regulator about the circulation of illegal information on WeChat. While details remain scarce, Tencent outlined basic information on how it enforces its content moderation rules. The company also published monthly “crackdown” reports on illegal information, but these only included data on restricted accounts, and didn’t mention the volume of content or advertisements affected.

In relation to privacy and security, Tencent disclosed that it provides encryption protocols such as Secure Sockets Layer (SSL), but it did not clarify if it implements any advanced encryption tools, such as unique keys and end-to-end or full-disk encryption, in its products. Research by the Citizen Lab, a research laboratory at the University of Toronto specializing in digital security and internet governance, found security vulnerabilities in encryption used by WeChat and Sogou, an input method developed by Tencent. Tencent fixed all reported vulnerabilities for Sogou, but did not adopt Citizen Lab’s encryption suggestions for WeChat.

Key takeaways

  • Tencent joined the United Nations Global Compact and pledged to uphold international human rights principles, including the Universal Declaration of Human Rights.
  • Tencent was one of the most transparent companies with regard to oversight of policies and processes related to advertising content, alongside Alibaba and X. It shared a three-step advertisement content moderation mechanism that incorporates artificial intelligent review. Though the company allowed users to opt out of targeted advertisements, it did not detail how its targeted advertising system functions. In addition, the company did not release any data about the volume of advertisements restricted on its platforms.
  • Except for a statement that the company carefully reviews government demands for user information, Tencent offered no additional insights into how it responded to such demands or to private requests for user information. Tencent also did not share any data about the requests it received for user information.

Key recommendations

  • Improve human rights due diligence. Tencent should add risk assessments examining its policy enforcement, targeted advertising practices, as well as algorithmic system use and development beyond AI.[2]
  • Publish data on enforcement of content rules. Tencent should publish data about the volume of content it restricts for violating company rules, to complement the data it publishes about account restrictions.
  • Be transparent about algorithmic system deployment and development. Tencent should publish policies explaining how it develops and uses algorithmic systems and provide users with more options to control these systems.

Services evaluated:

  • QZone
  • QQ
  • WeChat
  • Tencent Cloud

The 2025 RDR Index: Big Tech Edition covers policies that were active on August 1, 2024. Policies that came into effect after August 1, 2024, were not evaluated for this benchmark.

Scores reflect the average score across the services we evaluated, with each service weighted equally.

  • Lead researchers: Jie Zhang; Afef Abrougui

Changes since 2022

  • Tencent rolled out a series of measures to improve its governance processes, including board and executive-level oversight on privacy issues and a commitment to respect human rights.
  • Tencent undertook regular privacy impact assessments on its products and reviewed risks associated with AI, including discrimination risks.
  • Tencent improved transparency around how it enforces advertising policies. For example, it stated that advertisements must be identifiable. The company also disclosed that some types of advertisements targeting minors are prohibited. However, Tencent no longer provided details about how its targeted advertising system operates.
  • In its latest ESG report, the company shared, for the first time, that it will “carefully review” government demands for user information and, when laws permit, notify users regarding these demands.

Scores since 2017

100%0%20172018201920202022202522%23%26%22%25%30%
Most companies’ scores dropped between 2019 and 2020 with the inclusion of our new indicators on targeted advertising and algorithmic systems. To learn more, please visit our Methodology development archive.
Governance28%
Freedom of expression15%
Privacy41%

We rank companies on their governance, and on their policies and practices affecting freedom of expression and privacy.

Governance 28%

Tencent achieved the second-largest improvement in its disclosures on governance procedure disclosure among the assessed companies, behind its Chinese peer Alibaba. The company committed to respecting human rights, but it did not specifically mention users’ freedom of expression (G1). Tencent established a top-down oversight mechanism for privacy issues and offered employees privacy protection training (G2, G3). It also carried out privacy risk assessments across its products and services, including during product development. While the company reviewed AI products for discriminatory biases and security risks (G4a, G4d), it provided no evidence that it assessed risks in other situations, such as for policy enforcement and targeted advertising (G4b, G4c). Tencent offered channels for users to appeal content restrictions (G6b). However, across all other areas of governance, Tencent failed to disclose whether it had any processes in place to strengthen users' freedom of expression.

Freedom of expression 15%

Tencent ranked second to last, just above Samsung, in its transparency around policies and practices affecting users’ freedom of expression. While the company thoroughly explained its approach to regulating advertising content (F3b), it did not release any data about which advertisements it restricted (F4c). Tencent was particularly opaque about how it handles government demands for content restrictions (F5a), a sensitive topic in China. It failed to release any data about the volume of content it restricted because of government requests or for violating its own policies (F4a, F6). The company allowed users to opt out of its algorithmic content curation systems on QQ and WeChat—its multifunctional messaging and social media services—but lacked details about how its recommendation systems operate (F12).

Privacy 41%

Tencent shared more information about its privacy protections than about freedom of expression. The company detailed what user information its services collect (P3a) but remained vague about how it analyzes and infers user data (P3b), or how long it stores user information (P6). While users could download a copy of their data from Tencent (P8) and disable targeted advertisements, the company did not clarify if user data is used to develop its algorithmic systems (P7). Additionally, Tencent continued to withhold data on government and private requests for user information (P11a, P11b).

Indicators

Footnotes

[1] This figure combines users of the domestic and international versions of the tool. Tencent does not publish the volume of monthly active users for each version separately.

[2] While AI is a subset of algorithmic systems that involves machine learning and neural networks, algorithmic systems more broadly include both AI-driven and rule-based decision-making processes. These systems govern tasks like ranking, recommendations, and content moderation, some of which operate without AI or machine learning.