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Alibaba Group Announces Carbon Neutrality Goal by 2030

 Alibaba Group today concluded its virtual 2021 Investor Day. Daniel Zhang, Chairman and CEO of Alibaba Group, reiterated the company's focus on its three key strategic engines – China consumption, globalization, and technology – to drive future growth.


"Our vision for the future remains unchanged. We believe we are in the best of times, in the digital era today, to capture opportunities of the future with the digital and technology capabilities that we have built over the years," said Zhang at the investor event.


Investing for Long-Term Growth, Greater Transparency


Alibaba Group CFO Maggie Wu shared that the company's multi-engine strategy has contributed to more diversified revenue streams.


"We have always focused on innovating and investing for the long term. Over time, we have created many strong and profitable businesses, such as Taobao, Tmall and Alibaba Cloud. Similarly, we have also invested in promising new and fast-growing businesses in recent years," said Wu.


As the company continues to build a multi-engine approach to drive future growth, Wu revealed that it would provide more granular financial reporting for its core commerce segment, reflecting how it manages these businesses.


"We have always believed in providing more transparency in our reporting and disclosure to allow our shareholders to better understand our business and financial performance," added Wu. The Commerce Segment will be further subdivided into four segments: China Commerce, International Commerce, Local Consumer Services and Cainiao.


Deputy CFO Toby Xu spoke about Alibaba's investment strategy, which determines priorities through a growth framework – from seed to traction to profitability stage. Wu and Xu took the stage together, showing a smooth transition of the company's CFO role that will come into effect in April.


"We remain firmly committed to investing for the future, and will do so with a high degree of discipline. Our investments will focus on capability building and value creation," Xu said. "In the past, we have met and overcome huge challenges on numerous occasions. Today, we are equally confident that we will succeed in delivering sustained, durable growth by taking the long-term view while tackling current issues pragmatically."


Carbon Neutrality Pledge


Alibaba also announced its pledge to achieve carbon neutrality by 2030 and published its inaugural Alibaba Carbon Neutrality Action Report, please see the attached release.


The company said it will work with merchants and consumers to reduce carbon emission by 1.5 gigatons across its ecosystem by 2035. To achieve this ambitious target, Alibaba is going beyond the standard industry practice of only reducing its own operations' carbon footprint and introducing a new dimension to its responsibilities called "Scope 3+". Alibaba pledged to leverage its technology and role as a platform to mobilize actions among its consumers, merchants and partners to build a more sustainable future.