Chairperson
Letter from Our Chairman and CEO

In our first "Alibaba Group Carbon Neutrality Action Report," we have laid out Alibaba’s carbon reduction strategy and phased goals.

We are making a solemn commitment in announcing these goals. The road ahead will be long and arduous, but we can reach our destination if we persist. Together with allies and through responsible technology, we hope to contribute positive changes to the world and make the future more sustainable, greener and better!

Daniel Zhang
Chairman and Chief Executive Officer
Alibaba Group

Letter from Our Chairman and CEO

In our first "Alibaba Group Carbon Neutrality Action Report," we have laid out Alibaba’s carbon reduction strategy and phased goals.

We are making a solemn commitment in announcing these goals. The road ahead will be long and arduous, but we can reach our destination if we persist. Together with allies and through responsible technology, we hope to contribute positive changes to the world and make the future more sustainable, greener and better!

Chairperson
Daniel Zhang
Chairman and Chief Executive Officer
Alibaba Group
Alibaba’s mission that has remained unchanged for more than 20 years is to make it easy to do business anywhere.
Today, this mission has been given a new significance. We seek to shoulder the social responsibilities of a platform company, to make society’s biggest challenges Alibaba’s biggest challenges. Alibaba aims not only to help consumers raise their quality of life, but also to aid enterprises—especially small and medium enterprises—in achieving sustained development while helping to reduce global carbon emissions.
The realization of this goal is based on the three pillars of "technological innovation, energy transition, and multi-stakeholderism."
Alibaba’s mission that has remained unchanged for more than 20 years is to make it easy to do business anywhere.
Today, this mission has been given a new significance. We seek to shoulder the social responsibilities of a platform company, to make society’s biggest challenges Alibaba’s biggest challenges. Alibaba aims not only to help consumers raise their quality of life, but also to aid enterprises—especially small and medium enterprises—in achieving sustained development while helping to reduce global carbon emissions.
The realization of this goal is based on the three pillars of "technological innovation, energy transition, and multi-stakeholderism."
Scope 1 0.510 MMT CO 2 e Scope 2 3.710 MMT CO 2 e Scope 3 5.294 MMT CO 2 e
Components of Carbon Emissions
In 2020, Alibaba’s total GHG emissions are 9.514 MMT CO2e
Scope 1: Direct greenhouse gas emissions from sources owned or controlled by Alibaba entities were 0.510 million MtCO2e. This includes stationary combustion, mobile combustion, chemical or production processes, fugitive emissions, logistics services for self-owned fuel vehicles, and fuel emissions from offices and stores.
Scope 2: Greenhouse gas emissions from purchased power for operations were 3.710 million MtCO2e. The majority of power demand was from cloud-computing data centers, retail stores, and office buildings.
Scope 3: Indirect greenhouse gas emissions generated from our upstream and downstream value chain were approximately 5.294 million MtCO2e.
Components of Carbon Emissions
In 2020, Alibaba’s total GHG emissions are 9.514 MMT CO2e
Scope 1: Direct greenhouse gas emissions from sources owned or controlled by Alibaba entities were 0.510 million MtCO2e. This includes stationary combustion, mobile combustion, chemical or production processes, fugitive emissions, logistics services for self-owned fuel vehicles, and fuel emissions from offices and stores.
Scope 2: Greenhouse gas emissions from purchased power for operations were 3.710 million MtCO2e. The majority of power demand was from cloud-computing data centers, retail stores, and office buildings.
Scope 3: Indirect greenhouse gas emissions generated from our upstream and downstream value chain were approximately 5.294 million MtCO2e.
Scope 1 0.510 MMT CO 2 e Scope 2 3.710 MMT CO 2 e Scope 3 5.294 MMT CO 2 e
Seven Principles
Seven Principles
Delivering the promise of carbon neutrality is a long-term journey full of hope and uncertainty. We will uphold the following seven fundamental principles.
Delivering the promise of carbon neutrality is a long-term journey full of hope and uncertainty. We will uphold the following seven fundamental principles.
Responsibility
Try our best to identify and assume the environmental and social responsibilities that the company should take from the whole society’s perspective. We will continue to be responsible in the process of technological and business innovation.
Science
Use scientific basis and analytical methods to formulate carbon neutrality goals and specific implementation plans while constantly incorporating new scientific evidence to revise them. At the same time, we are committed to helping the development of carbon neutrality related science and technology.
Transparency
Strictly follow international standards, accurately and transparently disclose relevant plans, actions, outcomes, and accept the supervision of qualified local and global institutions.
Trust
Building mutual trust among a broader range of stakeholders is the core goal of technological and business innovation.
Open Community
Build open communities with various partners to promote and support innovations and actions related to green development.
Employee Engagement
Encourage and support the engagement of all employees, and promote the formation of green and low-carbon corporate culture.
Long-termism
Adhere to long-termism, and act diligently without hindering the establishment and realization of short-term goals.
By 2030 Goals and Commitments By 2035
Decarbonizing Alibaba: By 2030, achieve carbon neutrality in our own operations. Greening Our Value Chains: By 2030, collaborate with value chain partners to cut emission intensity by 50% compared to 2020. Alibaba Cloud will achieve Scope 3 carbon neutrality during the same period. Enabling Low-carbon Circular Digital Ecosystems: By 2035, facilitate a reduction of 1.5 gigatons of GHG emission with the Alibaba digital ecosystem.
By 2030 By 2035 Decarbonizing Alibaba: By 2030, achieve carbon neutrality in our own operations. Greening Our Value Chains: By 2030, collaborate with value chain partners to cut emission intensity by 50% compared to 2020. Alibaba Cloud will achieve Scope 3 carbon neutrality during the same period. Enabling Low- Carbon Circular Digital Ecosystems : By 2035, facilitate a reduction of 1.5 gigatons of GHG emission with the Alibaba digital ecosystem.
Green Alibaba and Supply Chain
We will become Green Alibaba mainly through 4 carbon reduction initiatives: electrification and digitalization, efficiency improvement, energy transition, carbon removal and offset.
We will strengthen the green supply chain and facilitate upstream and downstream partners to achieve Scope 3 emission reduction.
Electrification and Digitalization
Replace combustion vehicles with electric vehicles
Efficiency Improvement
100% LEED Gold certification in future campuses
Energy Transition
Deploy solar panels in logistics parks and offline stores
Carbon Removal and Offset
Explore carbon removal technologies such as NCS and CCUS
Cloud Computing
Lead to achieve carbon neutrality throughout the value chain (Scope 1, 2, 3) by 2030
Integrated Logistics Carbon Reduction
Facilitate carbon reduction through the full circle
Sustainable Procurement
Develop green procurement standards and green supplier management system
Employees and Consumers
Motivate employees to choose low-carbon travel options and encourage green consumption
Green Alibaba and Supply Chain
We will become Green Alibaba mainly through 4 carbon reduction initiatives: electrification and digitalization, efficiency improvement, energy transition, carbon removal and offset.
Electrification and Digitalization
Replace combustion vehicles with electric vehicles
Efficiency Improvement
100% LEED Gold certification in future campuses
Energy Transition
Deploy solar panels in logistics parks and offline stores
Carbon Removal and Offset
Explore carbon removal technologies such as NCS and CCUS
We will strengthen the green supply chain and facilitate upstream and downstream partners to achieve Scope 3 emission reduction.
Cloud Computing
Lead to achieve carbon neutrality throughout the value chain (Scope 1, 2, 3) by 2030
Integrated Logistics Carbon Reduction
Facilitate carbon reduction through the full circle
Sustainable Procurement
Develop green procurement standards and green supplier management system
Employees and Consumers
Motivate employees to choose low-carbon travel options and encourage green consumption
Scope 3+
As a result of Alibaba’s platform model and ecosystem, we are pioneering the concept of "Scope 3+." Scope 3+ refers to the emissions generated by a wider range of participants in a platform’s ecosystem, currently outside of the Scope 1, 2 and 3. Scope 3+ is a natural extension of previous scopes. We are hoping to expand the focus from a firm’s own emissions and that of its supply chains, to a platform’s entire business ecosystem.
We have initiated the "1.5 Gigatons for 1.5°C" project, leveraging our diverse platforms to achieve a cut of 1.5 billion tons in carbon emissions over the 15 years ending in 2035. We will lead the drive from within our Scope 3+ ecosystem, starting in areas with clearly identified reduction means and potential.
Promote the green lifestyle of consumers by increasing sales of sustainable products and thus drive carbon reduction
Through the second-hand transaction business model, extend the product life cycle and reduce emissions
Using big data and artificial intelligence algorithms to help improve urban traffic congestion and optimize logistics routes
Reduce carbon emissions in logistics by driving businesses and consumers to use green packaging materials and actively recycle them
Help enterprise clients reduce carbon reduction costs by providing low-carbon cloud computing services