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Chinese e-commerce giant Alibaba [BABA:US] announced a carbon neutrality target for its operations by 2030 and pledged to reduce carbon dioxide (CO2) emissions by 1.5bn tons across all its businesses by 2035 from 2020 levels, as reported by Reuters on December 18. Specifically, the group committed to carbon neutrality for scope one and two emissions, with scope one representing direct greenhouse gas emissions from owned or controlled sources, and scope two representing indirect emissions from purchased electricity, steam, heating, and cooling. Furthermore, Alibaba promised to reduce carbon intensity by 50% as of 2030 for its scope three emissions, which are generated from the wider value chain covering transportation, purchased goods, services, and waste.
Alibaba’s green commitment surpasses Chinese President Xi Jinping’s commitment to peak carbon emissions in 2030 and realize carbon neutrality in 2060. According to Alibaba’s Carbon Neutrality Action Report, the company emitted 9.514m tons of greenhouse gas (GHG) in 2020, comprising 510,000 tons from scope one, 3.71m from scope two, and 5.294m from scope three. The company plans to use energy-conservation and efficiency-promoting technologies to curb emissions and raise the share of renewables in its energy use. Notably, it stated that it would prioritize “carbon reduction over removal” and “removal over offset”.
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