- JD.com publishes its second ESG report, with a chapter aligned with the TCFD framework for the first time.
- The company is committed 1 billion RMB yuan in its green supply chain upgrade, known as the “Green Stream Initiative”.
- Positioned as “a new type of real economy business”, JD.com is committed to serving tangible businesses in all industries.
BEIJING, May 23, 2022 /PRNewswire/ — JD.com Inc. (Nasdaq: JD; HKEX: 9618), a leading provider of supply chain-based technologies and services, has released its second annual ESG report, outlining the company’s progress in 2021 in the areas of developing green supply chains, stimulating the real economy, promoting high-quality consumption and social efficiency, etc.
First report aligned with TCFD
JD’s proactive reporting and dedication of a chapter on climate change opportunities and risks that aligns with the Task Force on Climate-Related Financial Disclosures (TCFD), a standard set by the Stability Board G20 financial statement for the first time in this year’s report is evidence of the company’s deep commitment to environmental and social responsibilities and its long-term business philosophy.
“We have incorporated the TCFD framework into this year’s ESG report to develop a risk governance strategy for 2030, and by carrying out systematic transformations, we hope to strengthen the company’s climate competitiveness while securing new opportunities for growth over the next decade,” wrote Richard Liuchairman of the board of directors of JD.com, in his letter accompanying the report.
The “Green Stream” initiative
The ESG Report revealed that JD.com has set a goal to reduce carbon emissions by 50% by 2030, based on 2019 levels. To achieve this, JD Logistics has committed to invest 1 billion RMB yuan ($150 million) in the next five-year plan of its multi-pronged sustainability efforts, known as the “Green Stream Initiative”, to build a greener, more integrated supply chain that can deliver a greater quantity of low-emitting products and engage a wider range of traders and customers together to practice responsible production and consumption.
At the end of 2021, the Green Stream Initiative led China e-commerce logistics sector to reduce the use of nearly 10 billion disposable packaging, replaced by reusable delivery boxes made of 100% recyclable materials which have so far been used 200 million times, involving the participation of more than 200,000 merchants and hundreds of millions of consumers.
Meanwhile, JD’s Xi’an Asia Logistics Industrial Park No.1 is certified as China first carbon-neutral logistics park. JD Logistics has put 20,000 new energy vehicles into service in more than 50 cities across the country, reducing carbon dioxide emissions by 400,000 tons per year. JD Cloud’s green data centers achieved a PUE (Power Usage Effectiveness) of less than 1.1, reducing its infrastructure power consumption by 30% and carbon emissions by 10% year over year. other. The company’s new, eco-friendly headquarters building has been awarded the highest rating of 3 stars by the Green Building Label, the sustainable architecture rating system in China. These are just a few of JD’s various carbon reduction accomplishments over the past year.
At the service of the real economy
Stemming from its mission to “powered by technology for a more productive and sustainable world”, JD.com has developed its identity in the report as “a new type of real-economy business” that possesses both the attributes of the real economy in its DNA, and the technologies and know-how at the service of the digital transformation of concrete companies.
As the number of inventory turnover days in 2021 further decreased to reach the global level of 30.3 days, an advanced R&D platform for C2M (Consumer-to-Manufacturer) products, extensive cloud infrastructure computing distributed across 70+ cities, JD.com provides smart digital solutions to support quality business growth across all industries. As many small and medium-sized businesses have borne the brunt of the impact of COVID-19 over the past year, JD has introduced a series of fee waiver policies and made full use of its chain skills. smart sourcing to maintain their business operations, going above and beyond to ensure the company a stable and timely supply of goods at fair prices.
Meanwhile, supporting farmers and agricultural development is high on JD’s agenda. The report shows that to date, JD.com has provided secure employment opportunities to more than 300,000 frontline workers, more than 80% of whom are from rural areas. Far beyond sending parcels to villages, by the end of 2021 the company has collaborated with more than 1,000 agricultural production zones, co-created more than 70 modernized farms and set up more than 700 online pavilions. to support the marketing and circulation of premium agricultural products, which have generated 32 million RMB yuan ($4.8 million) the value of production and increased income for millions of farmers.
Read the full text of JD’s 2021 ESG report here.
JD.com is a leading provider of supply chain-based technologies and services. JD.com’s state-of-the-art retail infrastructure is designed to enable consumers to buy what they want, when and where they want. JD.com has opened its technology and infrastructure to partners, brands and other industries, as part of its retail-as-a-service offering to help drive productivity and innovation across a range of industries.