According to the company’s annual Environmental, Social, and Governance (ESG) report, issued on Monday, Alibaba Group reduced net carbon emissions from direct operations by 12.9% over the fiscal year.
As it aspires to achieve carbon neutrality by 2030, the Hangzhou-based corporation is utilizing smart energy management and growing the use of sustainable energy.
In addition to reducing net emissions in its operations, Alibaba claimed a 22.907 million metric tons decrease in carbon dioxide equivalent (MtCO2e) from its larger ecosystem in its fiscal year that ran from April 1, 2022 to March 31, 2023.
“Over the past year, we have worked to deliver high-quality achievement of our established carbon neutrality goals,” Alibaba Group Chairman and CEO Daniel Zhang stated in the report.
The company has used its platform strength to support decarbonization throughout its larger ecosystem, which includes players and partners from commerce, logistics, and cloud computing.
While Alibaba reported on its sustainability initiatives in its 2022 report, this is the first time it has acknowledged progress toward its Scope 3+ goal of reducing 1.5 gigatonnes of carbon emissions across its digital ecosystem by 2035.
According to the article, Alibaba’s cloud computing business is one step closer to its aim of having all of its worldwide data centers run solely on sustainable energy by 2030.
The share of clean electricity generated from renewable sources such as solar, water, and wind used in its self-built data centers in China increased from 21.6% in 2022 to 53.9% in 2023.
Due to increased use of energy-saving technology such as liquid-cooling server technology and power management optimization, the overall power use effectiveness of its data centers, total facility power over IT equipment energy, fell to 1.215 in the period from 1.247 a year earlier.
According to an annual survey conducted by the digital infrastructure advisory firm Uptime Institute, the industry average in 2023 will be 1.58.
Alibaba Cloud is assisting its corporate users in increasing efficiency and lowering emissions by replacing traditional IT with cloud computing.
According to a recent analysis commissioned by Alibaba Cloud from global climate consultancy Carbon Trust, cloud server technology can save 85.5% of emissions in China.
Meanwhile, since its March 31 launch, the cloud platform’s AI-driven sustainability platform Energy Expert has assisted 2,580 organizations worldwide in monitoring, analyzing, and optimizing their carbon emissions.
To green the value chain, Alibaba has taken the lead in encouraging green logistics, low-carbon transportation, and the construction of sustainable retail outlets in conjunction with its partners.
According to the research, Cainiao Group’s logistics unit reduced packaging materials by 184,000 tons in its fiscal year 2023 by marketing shipments with used packages.
It has used digital technology to encourage recycling among ecosystem partners. Cainiao announced a partnership with China’s dairy major Yili in July 2022 to construct a green recycling chain for discarded packaging, including intelligent recycling boxes and a green delivery-themed online interactive community.
Alibaba launched its group-level carbon ledger earlier this year in an effort to encourage consumers to engage in low-carbon behaviors on Alibaba’s platforms, and it has taken off.
According to the research, 187 million users participated in emission reduction through the carbon ledger during the period.
During the last fiscal year, over 30 million users choose low-carbon travel, such as walking, using Alibaba’s navigation platform Amap, reducing carbon emissions by 215,000 MtCO2e. At the same time, Ele.me consumers saved resources by choosing out of using silverware on over 1.4 billion orders.
Small actions can have a large impact. Cainiao urged customers to reuse cardboard boxes by leaving them at pick-up stations, and they left over 23 million boxes at Cainiao Posts.