Hangzhou-based e-commerce giant, Alibaba Group Holding (BABA), recently released its Environmental, Social, and Governance (ESG) report, showcasing significant strides in its mission to achieve carbon neutrality by 2030. The company successfully cut down carbon emissions by 22.9 million tonnes during the latest financial year, while also contributing to the creation of 70 million job opportunities.
Alibaba Stock Analysis & Stock Forecast
According to a stock forecast gathered from 12 analysts, Alibaba Group Holding average target price over the next 12 months is projected to be USD 138.12. The consensus among analysts is a “Strong Buy” rating for Alibaba Group Holding Ltd. Additionally, Stock Target Advisor analysis of the company’s stock indicates a “Slightly Bullish” outlook, supported by 8 positive signals and 5 negative signals.
As of the last closing, Alibaba Group Holding stock was valued at USD 92.17. However, it’s worth noting that the stock experienced a slight decline of -2.53% over the past week. On a positive note, it showed an increase of +8.54% in value over the past month. Nonetheless, there was a decrease of -8.39% in its stock price over the course of the last year. Investors should consider these trends while making decisions related to Alibaba Group Holding stock.
Moving Towards Carbon Neutrality by 2030
Alibaba Group Holding, a major player in the Chinese e-commerce industry, is making impressive headway towards its ambitious goal of achieving carbon neutrality across all its operations by 2030. The company’s latest ESG report reveals that it has managed to reduce carbon dioxide emissions by a staggering 22.9 million tonnes in the financial year ending on March 31. This significant progress aligns with Alibaba’s broader commitment to eliminate 1.5 gigatonnes of emissions by 2035 throughout its entire business ecosystem, including users and corporate clients.
Innovative Measures for Emission Reductions
Alibaba’s efforts to reduce emissions involve various creative strategies. The company has been providing low-carbon office and cloud computing services to its corporate clients, encouraging greener practices. To involve consumers in this sustainability drive, Alibaba introduced the Carbon88 ledger platform, where over 187 million users participated. The platform enables users to share photos of their eco-friendly actions, such as using reusable shopping bags and bringing their own cups, contributing to the reduction of their carbon output.
Commitment to ESG Initiatives
In an open letter within the ESG report, Daniel Zhang Yong, Alibaba’s outgoing chairman and chief executive, expressed the company’s dedication to its ESG strategy. Despite facing challenges in the macro environment, geopolitical uncertainties post-pandemic, and trade-offs between sustainable development and economic growth, Alibaba made notable progress in its ESG initiatives during the fiscal year 2023.
Reduction of Greenhouse Gas Emissions
Alibaba’s net greenhouse gas emissions for the financial year 2023 amounted to 4.68 million tonnes, representing a 12.9 percent decrease from the previous year. These emissions encompass 926,000 tonnes from direct sources, such as natural gas usage, and 3.8 million tonnes from indirect sources like data centers and warehouse operations. The company’s smart energy management and deployment of clean energy contributed to a remarkable 129 percent improvement, resulting in the reduction of 1.4 million metric tonnes of carbon dioxide equivalent (MtCO2e) compared to the previous financial year.
Promoting Clean Energy Usage
Alibaba’s cloud services unit, Alibaba Cloud, played a vital role in promoting clean energy usage. The company utilized clean energy for approximately 54 percent of its own data centers’ consumption, contributing to the reduction of emissions by 6.863 million MtCO2e. Cloud computing services provided by Alibaba Cloud helped its clients reduce emissions by transitioning away from local data centers and servers, operating more sustainably in the digital realm.
Sustainable Logistics and Job Creation
Alibaba’s smart logistics arm, Cainiao, also played its part in reducing the company’s environmental impact. Through simpler packaging designs and reusing old cartons, Cainiao managed to reduce packaging materials by over 184,000 tonnes in the past year.
In addition to emission reduction efforts, Alibaba has been a key player in job creation. In 2022, the company supported over 70 million jobs through direct employment, entrepreneurship, and gig employment on its platform. These jobs extend across the company’s supply chain and service provider partners, further contributing to the local economies.
A Pledge for the Future
With a focus on building a strong foundation for its future development, Alibaba remains committed to its long-term objectives. In 2021, the company announced its ambitious goals of achieving carbon neutrality across its operations by 2030 and eliminating 1.5 gigatonnes of carbon emissions throughout its ecosystem by 2035.
As Alibaba continues to implement its comprehensive ESG strategy, it serves as a model for businesses worldwide, demonstrating that environmental responsibility and economic growth can go hand in hand.
