In its 2023 Environmental, Social, and Governance (ESG) report, Alibaba announced a significant 13% reduction in net carbon emissions from direct operations. This achievement marks a major step towards its ambitious target of becoming carbon neutral by 2030.
Panoramic view of the Huangshan landscape, Anhui, China.
The report revealed Alibaba's progress towards its Scope 3+ goal, aiming to eliminate a massive 1.5 gigatonnes of carbon emissions across its digital ecosystem by 2035. It was the first time Alibaba reported on this sustainability effort.
Alibaba's 13% drop in carbon emissions in 2023 amounts to approximately 4.7 million tonnes of carbon dioxide equivalent emissions. This reduction was achieved through clean energy and smart energy management.
In its pursuit of carbon neutrality, Alibaba is working towards three climate pledges set in 2021: decarbonising operations, greening the value chain, and enabling a low-carbon circular digital ecosystem. It made significant strides in meeting these targets during the 2023 financial year.
Outgoing CEO and Chairman, Daniel Zhang Yong, highlighted the remarkable progress in the face of challenges like geopolitical uncertainties and sustainable development trade-offs.
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Alibaba also addressed Scope 3 emissions by reducing 400,000 tonnes of carbon dioxide equivalent through digital optimisation, energy transition in logistics, and more energy-efficient data centres.
What sets 2023 apart is Alibaba's introduction of its Scope 3+ initiative, which encourages consumers to adopt low-carbon behaviours on its platforms through the Carbon88 carbon ledger. Over 187 million users participated in carbon emission reduction efforts.
Read more: Unveiling hidden carbon footprints: overlooked emissions sources in business operations
Alibaba's cloud computing subsidiary, Alibaba Cloud, played a crucial role in achieving climate goals. Its self-built data centres' clean electricity usage increased to an impressive 54%, aided by energy-saving technologies.
Alibaba's ESG report showcases its commitment to environmental responsibility and innovative initiatives, making it a shining example for others in its pursuit of a greener future.
Reducing Scope 3 emissions is a crucial step for businesses on their path to achieving net zero and addressing climate change and biodiversity loss. At DGB Group, we offer transparent solutions that enable everyone to play a role in nature conservation. Businesses can align their sustainability goals with a tangible and measurable impact by supporting our nature-based initiatives that reduce carbon emissions and restore nature and purchasing our carbon credits. Your journey starts with measuring your carbon footprint.
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