Alibaba’s roadmap to carbon neutrality, one pioneering step at a time

This content was produced in partnership with Alibaba

As a leading global technology and platform company, Alibaba is no stranger to pioneering innovation in its mission to change the world for the better – be it by empowering the digitalisation of businesses and driving global economic growth or improving inclusiveness within the communities it serves.

To bolster its ongoing efforts in tackling climate change, including its group-wide commitment on “Responsible technology, Sustainable future”, Alibaba Chairman and CEO Daniel Zhang recently announced its carbon neutrality pledge in conjunction with the release of its inaugural Alibaba Carbon Neutrality Action Report, which outlines the group’s carbon reduction strategy and goals in detail.

“We aspire to be a force for positive, innovative change in society. Our ESG strategy is predicated on our mission to be a good company that will live on for 102 years – and it is the vital foundation for Alibaba's future development,” explained Zhang.

At the core of the pledge lies Alibaba’s commitment to reach carbon neutrality in Scope 1 and 2 emissions as well as 50% in carbon intensity reduction for Scope 3 by 2030. With higher targets to hit, Alibaba Cloud will aim to reach carbon neutrality in all three scopes by the same year. Underlining these feats is its ‘1.5 Gigatons for 1.5°C’ initiative, which will involve cutting down emissions by 1.5 gigatons across its business ecosystem by 2035.

A science-based approach to decarbonisation

In doing so, Alibaba is expanding its remit of accountability with Scope 3+, a new category it created to cover emissions generated by a broader range of participants beyond Scopes 1, 2 and 3. This move will support its systematic and science-based approach to decarbonisation, which include leveraging energy-saving and efficiency-improving technologies to reduce emissions; and actively transforming its current energy structure with the progressive use of renewables.

According to Dr Andrew Charlton, Managing Director at Accenture, Adjunct Professor at Macquarie University and Director of the e61 Institute for Economic Research, Alibaba’s Scope 3+ goal is a particularly welcomed addition to the global debate on emissions reduction. “It represents a distinct development in the conversation about how large companies can contribute more to the wider sustainability transition. It also goes beyond the traditional Scope 3 definition in the way it extends to all emissions of Alibaba’s customers, merchants and suppliers – not just those emissions associated with its own products and services,” he elaborated.

To oversee, enable and support the achievement of all its carbon neutrality targets and broader ESG goals along the roadmap, Alibaba also announced a new three-tier ESG governance framework including a sustainability committee, an ESG executive steering committee and an ESG cross-business action group. The sustainability committee at the board level will be chaired by an independent director, Jerry Yang, along with Walter Teh Ming Kwauk, Joe Tsai and Maggie Wu as board members.

Moving forward, Alibaba will be partnering with expert organisations from around the world as it continues to improve on its carbon reduction measures and Scope 3+ metrics. It will also be providing annual updates to stakeholders with specific and concrete progress verified by accredited auditors. Ultimately, all these endeavours will serve to strengthen the Group’s green initiatives and amplify their impact in the long term as one of the largest thriving global companies today.

Find out more about Alibaba’s Carbon Neutrality Report – read it today