On July 22nd, Alibaba Group released the "2024 Environmental, Social, and Governance Report" (hereinafter referred to as the "ESG Report"). Guided by its ESG strategy, Alibaba has further deepened its ESG governance and achieved significant results.
The report points out that the core of ESG revolves around how to become a better company. In the past year, Alibaba Group has continued to achieve a "double reduction" in net carbon emissions and value chain carbon intensity from its own operations, and the platform's ecological emissions have significantly improved; The scientific and technological innovation force and platform capability have been used in barrier free, medical, rural, aging and other fields, and good progress has been made. The medical AI pancreatic cancer early screening project has been launched, the Gaode wheelchair navigation has continued to expand the city, and rural special commissioners have gone into more counties to help rural construction; And deepened the company's ESG governance structure.
In the fiscal year 2022, ESG was officially established as one of Alibaba's cornerstone strategies, and the long-term strategic direction was reflected in the "Alibaba ESG Seven Petals Flower". They are highly relevant to the 17 Sustainable Development Goals of the United Nations and fully consider the practical social issues that need to be addressed in development.
The fiscal year 2024 is a year for Alibaba to deepen its ESG governance. In the issue of environmental protection, Alibaba continues to explore "reducing carbon in development" based on the guarantee of ESG governance mechanism, and promotes green, low-carbon and high-quality development through technology to improve energy utilization efficiency, use renewable energy, and drive the participation of ecological partners. Data shows that in the fiscal year 2024, Alibaba achieved its "dual reduction" goals of operating carbon emissions and value chain carbon emissions intensity; The emission reduction in its own operation reached 2.32 million tons, a significant increase of 63.5% compared to the previous fiscal year; The proportion of clean electricity usage has reached 39.0%. The value chain emission intensity decreased to 8.1 tons per million yuan in revenue, a year-on-year decrease of 7.0%.
Specifically for each business sector, Alibaba Cloud's self built data center continues to maintain its leading level of power usage efficiency (PUE) in Asia; The proportion of clean electricity usage has reached 56.0%. Cainiao is creating a "smart circular logistics" system and carrying out emission reduction actions in important logistics links such as orders, warehousing, packaging, and transportation. Its own operations and value chain have reduced emissions by a total of 458000 tons.
Based on the two strategies of "driving emission reduction" and "empowering emission reduction", Alibaba achieved a platform ecosystem (Scope 3+) emission reduction of 33.38 million tons in fiscal year 2024, a year-on-year increase of 45.5%. For example, Alibaba Cloud provides users with more green and low-carbon computing infrastructure services, empowering users to reduce emissions by 9.884 million tons in the 2024 fiscal year. Taobao Group reduces emissions by a total of 10.1 million tons by driving consumers to purchase low-carbon friendly products and promoting the development of the circular economy.
To strive to become a better company, we need to participate in solving some common problems as well as the problems we face in our own development. I hope that in this process, every Alibaba employee can learn to make difficult but correct choices, maintain foresight, goodwill, and pragmatism, "Alibaba Group CEO Wu Yongming said in the ESG report.