Sep 1, 2020|
Chinese National TV: JD “Greened” Before National Guidelines
by Yuchuan Wang
On August 28th, the Chinese national television station CCTV interviewed Jerry Duan, head of the Green Stream Initiative at JD Logistics. CCTV highlighted that before the national guidelines were announced, JD had already begun using green packaging.
In late July, eight departments including the State Administration for Market Regulation and National Development and Reform Commission released guidelines titled “Strengthen the standardization of green packages for express delivery”. The instructions state that by 2022, China’s express delivery system will be subject to a strict and binding system for green packaging. CCTV also interviewed other representatives from logistics and e-commerce companies.
Years earlier, in 2017, JD Logistics launched the Green Stream Initiative (GSI), which aims to work closely with JD’s upstream and downstream partners to build a green supply chain for environmental protection. To date, the company’s recyclable boxes have been used 160 million times in over 30 cities around China through its supply chain, equivalent to every one of Chengdu’s 16 million residents purchasing ten packages from JD.
“We are also communicating with brands and manufacturing enterprises to carry out green design of commodity packaging and logistics packaging at the sourcing end, which will enable those packages to directly meet the requirements of the logistics environment. There will be no need for additional packaging in the transportation and delivery phases. At present, about a dozen brands have begun to do this with us,” Duan said in the interview with CCTV.
However, the price of degradable materials for express packaging is about 3-5 times that of traditional materials, which makes it difficult to popularize green packaging. Duan pointed out that “The benefit of the degradable packaging also needs to be carried out by the entire industry chain, not only for the packaging itself, but also afterward within facilities for industrial composting, waste sorting and more. All need to be considered and implemented.”
At present, there are over 30 manufacturers of green packaging materials in China with an annual production value close to RMB 50 billion yuan. As the industry continues to scale up, the manufacturing cost for green packages will likely go down. Within 5 years, the whole market is expected to expand to RMB 100 billion yuan.