Alibaba’s Progress on Decarbonization and Social Initiatives

In the latest Environmental, Social, and Governance Report, Alibaba Group showcased its substantial progress in mitigating its environmental impact and achieving carbon neutrality goals in the 12 months leading up to March 31, 2023.

The company adopted an innovative approach, focusing on technological advancements and clean energy integration to achieve a “double reduction” strategy. This involved reducing carbon emissions from their own operations (Scope 1 & 2) and also slashing carbon intensity along their value chain (Scope 3+).

1. Own Operations Emissions

In FY2023, Alibaba’s net emissions from its own operations decreased by an impressive 12.9% year over year, amounting to 4.681 million metric tons of carbon dioxide equivalent (MtCO2e). The company further reduced emissions by 1.419 million MtCO2e, marking a remarkable 128.9% increase in reduction compared to the previous year.

2. Value Chain Carbon Intensity

Alibaba achieved a YoY decrease of 5.7% in carbon intensity along its value chain, amounting to 8.7 MtCO2e per million RMB revenue.

3. Scope 3+ Decarbonization

In FY2023, Alibaba made significant strides in decarbonizing its entire ecosystem (Scope 3+), successfully reducing a total of 22.907 million MtCO2e of emissions.

Promotion of Clean Energy

Alibaba’s commitment to renewable energy was evident in the remarkable increase in the proportion of clean energy used in its self-built data centers, which rose from 21.6% in FY2022 to an impressive 53.9% in FY2023. Furthermore, Alibaba Cloud’s data centers achieved a decrease in power usage effectiveness (PUE) from 1.247 in FY2022 to 1.215 in FY2023, further contributing to their energy efficiency efforts.

Enabling Carbon Reduction Worldwide

Alibaba Cloud played a vital role in enabling its clients to reduce their carbon emissions, facilitating a total reduction of 6.863 million MtCO2e in FY2023. Additionally, the Energy Expert platform, driven by AI and launched by Alibaba Cloud, extended its reach to 2,580 enterprises worldwide, empowering businesses to monitor, analyze, and optimize their carbon footprint in alignment with their sustainability goals.