Alibaba Group, the Hangzhou-based e-commerce giant, has reported a significant reduction in its net carbon emissions for the fiscal year ending March 31, 2023. According to the company’s annual Environmental, Social and Governance (ESG) report, Alibaba cut its net carbon emissions from its direct operations by 12.9%. This achievement demonstrates the company’s commitment to carbon neutrality by 2030.
Alibaba has adopted a multi-pronged approach to reducing its carbon footprint. One of the key strategies is the increased use of clean energy and smart energy management. In its data centers, Alibaba’s cloud computing subsidiary, Alibaba Cloud, has made remarkable progress. The proportion of clean electricity generated from renewable sources such as solar, water, and wind has risen from 21.6% to 53.9% in just one year. By 2030, Alibaba Cloud aims to have all its global data centers operating entirely on clean energy.
Furthermore, Alibaba Cloud has been actively promoting energy-saving practices through the use of innovative technologies. The company has implemented energy-saving solutions such as liquid-cooling server technology and power management optimization, leading to a decline in the overall power usage effectiveness of its data centers.
Alibaba Cloud’s efforts have also extended to its corporate clients. By replacing traditional IT infrastructure with cloud computing, Alibaba Cloud has helped businesses improve their efficiency and reduce their carbon emissions. A recent report commissioned by Alibaba Cloud from Carbon Trust revealed that Chinese Alibaba Cloud users could avoid 85.5% of emissions by adopting cloud server technology.
In addition, Alibaba has been focusing on promoting sustainability across its wider ecosystem. The company has collaborated with partners to drive green logistics and low-carbon transportation initiatives. Subsidiary Cainiao Group, Alibaba’s logistics arm, has reduced packaging materials by 184,000 tons by encouraging the use of recycled packages.
Alibaba’s retail businesses, including Sun Art Retail, Intime, and Freshippo, have also taken steps to reduce their carbon footprint. They have embraced packaging recycling programs and implemented energy-saving renovations in their stores.
In terms of the company’s carbon reduction roadmap, Alibaba has introduced a group-level carbon ledger to encourage consumers to participate in low-carbon behaviors on its platforms. A large number of users, approximately 187 million, have engaged in emission reduction through the carbon ledger. Additionally, Alibaba’s navigation platform Amap has seen over 30 million users choose low-carbon travel, while users of its food delivery platform Ele.me have opted out of cutlery on over 1.4 billion orders, leading to resource-saving.
Alibaba’s sustainability efforts have yielded positive results, with a decline of 22.907 million metric tons of carbon dioxide equivalent (MtCO2e) from its broader ecosystem. This reduction is a significant step towards the company’s goal of slashing 1.5 gigatons of carbon emissions across its digital ecosystem by 2035, known as Scope 3+ goal.
Alibaba’s commitment to sustainability has set a positive example for other businesses. The company’s Chairman and CEO, Daniel Zhang, encouraged more peers to explore sustainable development and join hands in building a healthy and prosperous ecosystem.
To read Alibaba’s full 2023 ESG report and learn more about its sustainability efforts, visit https://www.alizila.com/esg/.
