May 24, 2022|
JD ESG: Leveraging Supply Chain Capabilities to Consistently Address Environmental Challenges
by Xiaoqian Han
In JD.com’s 2022 ESG report released on May 24, JD.com continues to deepen its environmental protection strategy and promote green development through corporate operations, supply chain management, and driving consumers’ green life.
JD.com continues to accelerate the strategy of its low-carbon operation. In 2021, all office buildings built by JD.com acquired three-star design mark certification for green buildings, and the new green data center operated by JD Cloud achieved annual operation with a Power Usage Effectiveness (PUE) lower than 1.1 (the closer the PUE ratio is to 1.0 the better energy effective it is).
JD.com continues to deploy new energy vehicles on the road, promote circular packaging, and build “zero-carbon” logistics parks to lead the entire supply chain to achieve low-carbon efficiency. In addition, JD.com announced the new five-year “Green Stream Initiative”, and promised to continue to invest RMB 1 billion yuan in constructing a low-carbon integrated supply chain.
JD.com promotes green consumption by expanding the categories of low-carbon commodities, and it drives more businesses and consumers to join the low-carbon consumption actions.
Green operation
JD.com has carried out a series of renovations to promote energy conservation and resource recycling through office practices and green data centers.
JD.com’s own office buildings are equipped with an intelligent operation and maintenance system, which can monitor the energy required for office work and propose energy-saving solutions for specific areas in real-time. In 2021, all the traditional lighting lamps in public areas of JD’s Building No.1 in Beijing have been transformed into LED lamps, with a total of more than 14,000 LED downlights replaced. After the replacement, the lighting power consumption in the office area of Building No.1 was reduced by 5000-9000kWh per day on average.
At the same time, JD.com has also created a wireless and paperless office environment. In JD.com’s office space, 5,520 wireless routers have been connected, and a total of 179 servers have been optimized, saving about 470,000 kWh of electricity per year and consequently reducing carbon emissions by about 286.7 tons. In 2021, JD.com has issued more than 2.8 billion electronic invoices, saving about 16,000 tons of paper, equivalent to saving more than 310,000 trees and reducing carbon emissions by 15,000 tons.
In addition to the green renovation of the office space, JD.com provides commuter shuttle services for employees. There are a total of 200 shuttle buses traveling to and from JD headquarters, including 80 new energy buses with an annual traveled mileage of 1.273 million kilometers, which reduces carbon emissions by about 742.2 tons.
Through green operations, JD has achieved green data center practices with a lower carbon footprint. Taking the East China Suqian data center in Jiangsu province as an example, its footprint has been reduced by 45%, while its power supply efficiency now reaches as high as 95.3%, and the direct-current (DC) efficiency is as high as 97%.
In addition, JD Cloud has established cooperation with Huawei co-launching innovative solutions for energy saving and emission reduction, including an intelligent indirect evaporative cooling system EHU (Environment Handling Unit), which can automatically switch the cooling mode according to the climate, and directly use the natural cold air of the data center to cool the computer room with AI comprehensive energy efficiency optimization technology, and medium voltage direct supply integrated power supply system SST, which strengthens the recycling of cooling energy resources.
Green supply chain
JD contributes to China’s carbon neutrality goal and global climate action by building a cleaner supply chain system with a lower carbon footprint. Last year, JD.com was officially selected as one of the “Best Practices for Enterprises to Achieve Sustainable Development Goals 2021 (carbon peak and carbon neutrality goals)” awarded by Global Compact China Network. Nowadays, JD’s green supply chain efforts span packaging, warehousing, and transportation.
In terms of packaging materials, JD.com advocates the use of green degradable materials to replace petroleum-based plastic bags. Meanwhile, JD Logistics uses reusable circular delivery boxes, foldable thermal insulation boxes, and circular packaging bags instead of disposable plastic packaging. By the end of 2021, circular packaging such as “Green Stream Boxes” have been used 200 million times. During the Singles Day Grand Promotion in 2021, each parcel delivered to consumers reduced paper packaging materials by 210 grams. Each parcel reduced disposable plastics by 11 grams and 25 centimeters of adhesive tape on average.
In addition to packaging, JD.com is also actively promoting green warehousing. At present, JD.com is promoting more intelligent industrial parks to achieve zero carbon emissions. Take JD.com’s Xi’an Asia No. 1 Logistics Industrial Park as an example, which has become the first “zero-carbon” logistics park in China. In addition, JD’s Logistics Industrial Parks were equipped with a rainwater collection system and photovoltaic power generation systems. The rainwater collection system can use all the collected rainwater for irrigation and road cleaning in the park. The photovoltaic power generation system can help parks reduce carbon dioxide emissions which have been installed in 12 smart industrial parks. Through low-carbon design, JD.com has helped partners achieve greener and pioneering brands. JD.com provided BMW Hefei with customized services for constructing the regional aftermarket parts center, which has obtained LEED (Leadership in Energy and Environmental Design) certification. BMW Hefei Aftermarket Parts Distribution Center has become BMW’s first “green warehouse” of aftermarket parts in China that meets LEED certification standards, providing an excellent model for green warehousing development.
Green transportation is also an important part of JD’s supply chain management. JD Logistics has deployed new energy vehicles in more than 50 cities across the country to replace traditional fuel cargo vans. By the end of 2021, the number of new energy logistics vehicles has reached 20,000 distributed in over 25 cities across the country, which can reduce carbon dioxide emissions by about 400,000 tons per year, equivalent to the annual carbon dioxide absorption by 20 million trees.
Green consumption
JD.com advocates sustainable consumption concepts and green lifestyles through JD’s Singles Day Grand Promotion. In 2021, JD.com offered more than 150 million types of products that meet the “green consumption” standards during the Singles Day Grand Promotion. As of November 7, 2021, consumers had purchased more than 3.5 million energy-saving products and more than 400,000 water-saving products from JD.com. On the aspect of logistics services, recycled packages were used 11.35 million times accumulatively during the festival, which is equivalent to reducing the disposable garbage by 3,400 tons. At the same time, JD Logistics’ all-chain carbon reduction measures throughout the logistics processes reduced carbon emissions by 26,000 tons during the event.
Mar 15, 2024|
JD.com Boosts Trade-In Subsidies and Enhances Service for Household Appliances and Home Goods
JD.com announced on March 14 at the China Household Appliances and Consumer Electronics Expo (AWE2024) that it will invest RMB 3 billion yuan (USD ~420 million) in 2024, in collaboration with its partners, to further improve subsidies and services for customers trading in used home appliances and goods.
The company anticipates that over 20 million users will participate in JD’s trade-in program in 2024, with more than 30 million old appliances and home goods collected through the initiative.
Since launching its trade-in service for household appliances in 2016, JD.com has expanded to include household goods, covering more than 200 subcategories and reaching over 95% of cities and towns across the country.
To simplify the trade-in process, JD.com has implemented several user-friendly measures, such as complimentary doorstep pickup, dismantling, and recycling of old appliances, without limitations on their type, brand, age, or condition. The platform has also adopted a fixed-price deduction model for trade-ins to alleviate shoppers’ concerns.
Moreover, JD.com has led the way in offering trade-in services for home goods and is one of the first to provide integrated dismantling and delivery services for a wide range of appliances and items, including mattresses and electric locks. This comprehensive service model significantly reduces the hassle for consumers by eliminating the need to deal with multiple service providers.
The continuous improvements to JD.com’s trade-in services have earned increasing appreciation from Chinese consumers. In 2023, the platform collected over 15 million old appliances. Since March 2024, participation in JD’s trade-in program has grown by more than 150% year over year.
This initiative aligns with the action plan issued by the State Council of China on March 13th to promote large-scale equipment renewals and trade-ins of consumer goods. The plan focuses on enhancing convenience and streamlining the appliance update process by fostering collaboration among retailers, manufacturers, and recyclers to promote trade-ins, including the establishment of dedicated zones and incentives for trading in old appliances for energy-efficient models.
JD.com is dedicated to serving as a bridge between consumers and manufacturers, working with partners to promote the appliance industry’s high-quality growth, expedite the development of green supply chains, and provide reliable, cost-effective products. By offering comprehensive services and supporting brands, JD.com aims to encourage consumption renewal in the home appliances and goods sector.
Mar 9, 2024|
JD.com Recognized by United Nations Global Compact for Advancing Gender Equality in the Workplace
To mark International Women’s Day, the UN Global Compact, the world’s largest corporate sustainability initiative, released a new report titled Women at Work: Chinese companies taking action on gender equality on March 8, which highlights JD.com’s commitment to fostering gender equality in its workplace.
The report features a selection of case studies and personal stories from various industries across China, spotlighting exemplary practices and insights gained in advancing gender equality within the workplace. It offers a comprehensive overview of both global and China-specific progress in this arena through an examination of Sustainable Development Goals (SDGs), particularly focusing on SDG 5: Gender Equality. Additionally, the report provides actionable gender equality roadmaps and essential resources for businesses, encouraging them to play a pivotal role in the collective journey towards achieving SDG 5.
Commenting on the report’s release, Sanda Ojiambo, CEO and Executive Director of the UN Global Compact said: “In our ongoing journey toward achieving gender equality, it’s inspiring to see the commitment and innovative approaches detailed in Women at Work. During a recent visit to China, I witnessed firsthand the dynamic discussions and unwavering dedication among business leaders to advance this cause. This report is not just a reflection of current practices but a call to action for companies worldwide to amplify their efforts in fostering inclusive and equitable workplaces. This report underscores the urgency and importance of building a more gender-inclusive business landscape.”
JD.com is honored to be the first Chinese company visited by Ms. Ojiambo during her China trip, in which she met JD’s first female CEO, Sandy Xu, and gained insights into the company’s rich history and its commitment to SDGs in green supply chain, responsible consumption, and gender equality, among others.
A Shining Example of Empowerment
The report highlights the story of Han Xue, a customer service representative and mother living with a disability. She is a member of JD.com’s “Sunshine Angels” program, which provides online customer service job opportunities to people with disabilities. In her interview, Han said, “This job has not only allowed me to help others and forge friendships, but it also helped me regain confidence and zest for life.”
Han stressed the importance of striking a balance between work and family life, adding, “I aspire to be an optimistic and content mother.” She highlighted JD.com’s supportive environment, which recognizes and rewards her contributions, enabling her to excel professionally while being a devoted parent.JD’s “Sunshine Angels” initiative, launched in 2013, currently comprises around 100 members, with women constituting 70% of the core team. With plans to expand this initiative to 500 members, JD.com aims to provide more employment opportunities and development avenues for female employees and individuals with disabilities
A Win-Win Pursuit
Han’s story is a testament to JD.com’s commitment to nurturing a supportive workplace culture that facilitates the growth and success of all its employees. With nearly 620,000 employees, JD.com believes that offering tailored support to female employees and their families is mutually beneficial for the company. The company has undertaken substantial, measurable efforts in relevant areas, such as establishing a RMB 10 billion housing fund, providing childcare resources, offering comprehensive maternity benefits, and expanding its employee relief fund. These efforts propelled JD.com to become the first Chinese company in its industry selected for Bloomberg’s 2023 Gender Equality Index, underscoring its dedication to gender equality and sustainable employee development.
Moreover, as a company with both digital and real economy capabilities, JD.com offers diverse career opportunities for female employees, particularly opportunities in STEM fields, spanning digital industry services, research and development, internet healthcare, and more. Last year, the company also appointed a Chief Diversity Officer, further enhancing the environment for employee growth and development.
According to Zhang Pang, Chief Human Resources Officer at JD.com, prioritizing employee development is paramount. By fostering an equitable, diverse, and inclusive environment with long-term development opportunities, JD.com aims to generate greater value for both the company and society.
Aligning ESG Strategies with SDGs
JD.com’s ESG Director Li Yi who is also interviewed in the report highlighted the challenges and opportunities in advancing gender equality and underscored JD.com’s participation in the UN Global Compact’s Target Gender Equality Accelerator program in 2022 and the company’s commitment to the “Forward Faster” initiative in 2023, with a special focus on gender equality.
Li Yi shared, “Our involvement with the UN Global Compact has empowered us with a more profound sense of purpose, driving us to encourage business engagement in fostering women’s economic empowerment and contributing to the 2030 Agenda for Sustainable Development within the UN framework.”
JD ESG: Drive Employment and Empower Talents
